lean manufacturing

1. Introduction to LeanIntroduction to Lean
ManufacturingManufacturing

2. Intro-To-LeanIntro-To-Lean
Lean Manufacturing DefinitionLean Manufacturing Definition
Lean has been defined in many different ways.Lean has been defined in many different ways.
““A systematic approach toA systematic approach to identifying and eliminatingidentifying and eliminating
wastewaste(non-value-added activities) through(non-value-added activities) through continuouscontinuous
improvementimprovement by flowing the product at theby flowing the product at the pullpull of theof the
customer in pursuit of perfection.”customer in pursuit of perfection.”
By The MEP Lean NetworkBy The MEP Lean Network

3. Intro-To-LeanIntro-To-Lean
History Timeline for Lean ManufacturingHistory Timeline for Lean Manufacturing

4. Intro-To-LeanIntro-To-Lean
Lean manufacturing is aLean manufacturing is a
philosophyphilosophy
In 1990 James Womack, Daniel T. Jones, and
Daniel Roos wrote a book called “The Machine
That Changed the World: The Story of Lean
Production-- Toyota's Secret Weapon in the Global
Car Wars That Is Now Revolutionizing World Industry”
In this book, Womack introduced the Toyota
Production System to American.
What was new was a phrase–
"Lean Manufacturing."

5. How to Increase Profit?How to Increase Profit?
Intro-To-LeanIntro-To-Lean

6. Intro-To-LeanIntro-To-Lean
Muda (Waste)Muda (Waste)
Taiichi Ohno (1912-1990), the Toyota executive who was the mostTaiichi Ohno (1912-1990), the Toyota executive who was the most
ferocious foe of waste human history has produced, identified theferocious foe of waste human history has produced, identified the
first seven types offirst seven types of mudamuda in manufacturing system:in manufacturing system:
• StorageStorage
• TransportationTransportation
• WaitingWaiting
• MotionMotion
• ProcessProcess
• DefectsDefects
• Over-productionOver-production
MudaMuda is everywhere.is everywhere.

7. Intro-To-LeanIntro-To-Lean
Lean OverviewLean Overview

8. Intro-To-LeanIntro-To-Lean
Lean Manufacturing ToolsLean Manufacturing Tools
 5S5S
 Value Stream MappingValue Stream Mapping
 Standardized WorkStandardized Work
 Load LevelingLoad Leveling
 KaizenKaizen
 KanbanKanban
 Visual WorkplaceVisual Workplace
 Quick ChangeoverQuick Changeover
 AndonAndon
 Poka-yokePoka-yoke
One-piece flowOne-piece flow
Cellular ManufacturingCellular Manufacturing

9. Intro-To-LeanIntro-To-Lean
Production Planning System (Push System)Production Planning System (Push System)

10. Intro-To-LeanIntro-To-Lean
Push or Pull?Push or Pull?
A push system

11. Intro-To-LeanIntro-To-Lean
Push or Pull?Push or Pull?
A pull system

12. Intro-To-LeanIntro-To-Lean
Kanban Operation
WK(2)PK(1) PK(i+1)PK(2) PK(N)WK(1) WK(N)WK(i+1)WK(i) PK(i)
RM FG
Kanban Stage
1
Kanban Stage
i
Station
1
Station
2
Station
i
Station
i+1
Station
N+1
Figure 3.3. A kanban stage formed by two adjacent stations.
From stage i-1 To stage i+1
1
2
i
3
Kanban Stage
i
i +1
WKPK
4
K
K-1
5

13. Intro-To-LeanIntro-To-Lean
Finished
goods
Raw materials inventory
Semi-finished
parts
PKPK PK WKWKWK
Station 1 Station 2
Station 3
Semi-finished parts
Material
handler Order
receiving
RMRMRM
14
3
2
1
3
4
4
5
6
7
7
7
7
8
8
9
12
13
13
11
10
11
11
11

14. Intro-To-LeanIntro-To-Lean
Current State Map of A Case Study Example

15. Intro-To-LeanIntro-To-Lean
Future State Map
At which stations, are parts withdrawn?
At which stations, are parts scheduled?

16. Intro-To-LeanIntro-To-Lean
Which to Choose — MRPWhich to Choose — MRP
(ERP), or Kanban?(ERP), or Kanban?
Where MRP (ERP) works best:
 MRP is by its very nature a forward-looking
system.
 MRP can be very effective in an environment with
a great deal of variability.
 MRP is recognized an engine to drive an
integrated enterprise-wide information system.
Purchasing and logistics activities were similarly
being integrated with fundamental internal
materials management principles into an
enterprise-wide approach.

17. Intro-To-LeanIntro-To-Lean
MRP or Lean Manufacturing?MRP or Lean Manufacturing?
 MRP is a predictive system. It does not reflect to
customer’s demand (easy to get overproduction).
A company takes MRP suggestions and acts on them without
too much review is very risky.
 MRP won’t fully support the cost-cutting.
 MRP needs lots of data for production management.
 MRP generates high overhead.
 MRP builds high work-in-process.
 MRP’s lead times are fixed.
 MRP creates potential quality hazard.
Where MRP is not as effective.

18. Intro-To-LeanIntro-To-Lean
Which to Choose — MRPWhich to Choose — MRP
(ERP), or Kanban?(ERP), or Kanban?
Where Kanban works best.Where Kanban works best.
Kanban is a very reactive system. Very little is plannedKanban is a very reactive system. Very little is planned
ahead. Instead, Kanban causes replacement of material used inahead. Instead, Kanban causes replacement of material used in
a totally reactive mode. Kanban works best in a highly stable anda totally reactive mode. Kanban works best in a highly stable and
predictable environment.predictable environment.
Where it is not as effective.
Kanban can quickly fail in a highly volatile environment
because of the reactive nature of the system. Volatility in
customer demand, processing problems, and extensive changes
in product designs make it very difficult for a Kanban system to
work effectively.

19. Intro-To-LeanIntro-To-Lean
Which to Choose — MRPWhich to Choose — MRP
(ERP), or Kanban?(ERP), or Kanban?
Kanban and MRP CombinationKanban and MRP Combination
The combination of these two systems is becoming quiteThe combination of these two systems is becoming quite
common. An MRP system is used for advanced planning,common. An MRP system is used for advanced planning,
including long lead-time purchased materials, adding resources,including long lead-time purchased materials, adding resources,
and implementing product design changes. Once the MRP hasand implementing product design changes. Once the MRP has
the materials and resources “lined up,” however, Kanban is usedthe materials and resources “lined up,” however, Kanban is used
as an execution system, bringing with the characteristics of rapidas an execution system, bringing with the characteristics of rapid
response to customer order and reduced inventory levelsresponse to customer order and reduced inventory levels
throughout the process.throughout the process.
Hybrid SystemsHybrid Systems

20. Intro-To-LeanIntro-To-Lean
The Objections to LeanThe Objections to Lean
How should you deal with these objections to lean?
•“It is very hard to deal with raw material suppliers
if we fully depend on customer order.”
•“It takes too much discipline.”
•“It takes too long to implement.”
•“My process is too complex; I have to deal with
too many uncontrollable variables, like late supplier
shipments, sick people, etc.”
•“My process requires a large batch size.”
•“It doesn’t make sense in my industry.”
•“It’s unclear to me how lean will work with my
MRP system.”

21. Intro-To-LeanIntro-To-Lean
Lean and GreenLean and Green
The environmental impacts due to
production and waste generation
have made its way into every day
society.
Consumers are becoming more
environmentally conscious.
With the Earth’s limited resources,
companies are more conscious of
their carbon footprint, and there has
been a movement to create more
environmentally friendly decisions.
Green engineering is the systems-level approach to product and
process design where environmental attributes are treated as
primary objectives or opportunities rather than simple constraints.

22. Intro-To-LeanIntro-To-Lean
lean manufacturing is a linklean manufacturing is a link
to green engineeringto green engineering
Lean manufacturing is the business model and collection of tactical
methods that emphasize eliminating non-value- added activities
(waste) while delivering quality products at lowest cost with greater
efficiency. In conjunction, six goals of green engineering are:
1. Select low environmental impact materials.
2. Avoid toxic or hazardous materials.
3. Choose cleaner production processes.
4. Maximize energy and water efficiencies.
5. Design for waste minimization.
6. Design for recyclability and reuse of material.

23. Intro-To-LeanIntro-To-Lean
lean manufacturing is a linklean manufacturing is a link
to green engineeringto green engineering
Population grows
Wastes increase
Fossil fuels are diminishing and there is nothing replenishing them.
Consumers are becoming more aware of the environment and
prefer environmentally friendly companies.
Being lean and green is so important now to reduce the
consumption of natural resources and the CO2 concentration
in the Earth’s atmosphere.
The only real difference between lean and green manufacturing is
that green actually designs the product or process with the
environment as a constraint while lean creates a process with the
view of the environment as a valuable resource and not a
constraint.

24. Intro-To-LeanIntro-To-Lean
Key Steps in TransformingKey Steps in Transforming
a Company to the Leana Company to the Lean
ApproachApproach
1.1. Establish a steering team—conduct strategic planning sessionEstablish a steering team—conduct strategic planning session
2.2. Train the steering team and the model line team in the disciplinesTrain the steering team and the model line team in the disciplines
of leanof lean
3.3. Perform PQR (product-quantity-routing) analysisPerform PQR (product-quantity-routing) analysis
4.4. Identify value streams—select a value streamIdentify value streams—select a value stream
5.5. Calculate model line takt timeCalculate model line takt time
6.6. Value stream map the model line—assemble current state mapValue stream map the model line—assemble current state map
7.7. Balance the line—assign standard workBalance the line—assign standard work
8.8. Establish standard WIP (inventory levels)Establish standard WIP (inventory levels)
9.9. Test the system (virtual cell)—document resultsTest the system (virtual cell)—document results
10.10. Setup reduction eventSetup reduction event

25. Intro-To-LeanIntro-To-Lean
Key Steps in TransformingKey Steps in Transforming
a Company to the Leana Company to the Lean
ApproachApproach
11.11. Conduct 5S event—apply TPM techniquesConduct 5S event—apply TPM techniques
12.12. Establish visual signals—reduce paperworkEstablish visual signals—reduce paperwork
13.13. Explore alternative flow patternsExplore alternative flow patterns
14.14. Develop block layoutDevelop block layout
15.15. Develop detailed layoutDevelop detailed layout
16.16. Execute moveExecute move
17.17. Select next value stream and repeatSelect next value stream and repeat
Gary Conner, President of Lean Enterprise Training, Newport, OR, Road Map to
Lean for the Smaller Shop, Society of Manufacturing Engineers, Lean
Manufacturing 2007, Supplement to Manufacturing Engineering, 2007. pp. 27-29.

26. ReferencesReferences
• Society of Manufacturing Engineers,Society of Manufacturing Engineers, Lean Manufacturing 2007,Lean Manufacturing 2007,
Supplement to Manufacturing EngineeringSupplement to Manufacturing Engineering, 2007., 2007.
• Society of Manufacturing Engineers,Society of Manufacturing Engineers, Lean Manufacturing 2008,Lean Manufacturing 2008,
Supplement to Manufacturing EngineeringSupplement to Manufacturing Engineering, 2008., 2008.
• Garrett Brown and Dara O’Rourke, “Garrett Brown and Dara O’Rourke, “LeanLean ManufacturingManufacturing ComesComes toto
ChinaChina: A Case Study of its Impact on Workplace Health and Safety,”: A Case Study of its Impact on Workplace Health and Safety,”
International Journal of Occupational and Environmental Health (IJOEH)International Journal of Occupational and Environmental Health (IJOEH),,
13(3), JUL/SEP 2007.13(3), JUL/SEP 2007.
• Challenges in Applying Lean Manufacturing in China,Challenges in Applying Lean Manufacturing in China, McKinseyMcKinsey
Quarterly, 2006 Special EditionQuarterly, 2006 Special Edition available at Jackson Library. Friday,available at Jackson Library. Friday,
October 12, 2007 | Posted byOctober 12, 2007 | Posted by Simone YuSimone Yu inin InternationalInternational
Intro-To-LeanIntro-To-Lean