This document provides an overview of Lean fundamentals and tools. It discusses the history and evolution of manufacturing, the key principles of Lean thinking around value, value streams, flow, pull and perfection. It then describes the basic Lean tools for identifying and eliminating waste, including takt time, time observation, bar charts, spaghetti diagrams, standard work, visual management and pull systems. The goal of these tools is to optimize workflow, reduce waste and enable continuous improvement through establishing standard processes and engaging employees.

1. Basic Lean Training
FUNDAMENTALS OF LEAN

2. HISTORY OF MANUFACTURING
• Made to customer specifications
• Single piece mfg… each product unique
• Variable quality
• Little inventory
• High cost … made for the rich
Craft
 Interchangeable parts
 Division of labor
 Assembly lines
 Labor strife
Mass Production
 High variety
 Small batch sizes
 PPM quality
 Engaged workforce
“Lean” Enterprise

3. WHY ARE WE HERE??
LONG-TERM
“HEALTH”
CUSTOMER
SATISFACTION
SALESAND
PROFITS
It’s About Performance!

4. KEY RESULTS TO BE EXPECTED
Immediate
 20%+ Productivity Improvement
 30%+ Floor Space Reduction
 25%+ Quality Improvements
 75%+ WIP Inventory Reduction
 35%+ Set-Up Time Reduction

5. KEY RESULTS TO BE EXPECTED
Longer Term
 Lead times cut from weeks to hours
 Quality approaches zero defects
 Significant improvement in employee and
customer satisfaction
 Continually reduced unit costs

6. 5 PRINCIPLES OF LEAN THINKING
• Key principles of “Lean Thinking”:
VALUE - what customers are willing to pay
for
VALUE STREAM - the steps that deliver
value
FLOW - organizing the Value Stream to be
continuous
PULL – triggering flow from customer
needs
PERFECTION - continuous improvement
forever (culture)
(from Lean Thinking, Womack and
Jones, 1996)

7. VALUE STREAMS ARE FINANCIAL
items in
items out
value
added
KEY
ASSETS
COSTS
PROFIT
items in
items out
value
added
KEY
ASSETS
COSTS
PROFIT
RETURN ON
KEY ASSETS
• Key Assets
̵ Inventory
̵ Receivables
̵ Fixed assets
• equipment
• facilities
• Goals
̵ More profits
̵ With less assets

8. RAPID CONTINUOUS IMPROVEMENT (RCI)
• A Rapid Continuous Improvement Event is
̵ An intense, focused activity (4.5 days)
̵ A team focused on a specific area
• Specific Lean Tools used to identify waste
̵ Roots: Toyota Production System
̵ Applied wherever work is done
• Lean is a Learn by Doing process
̵ Learn the tools by using them
̵ Measurable improvement expected

9. THE 7-WEEK CYCLE OF AN RCI EVENT
• 3 weeks before – Value Stream review, Event Selection, Select
Team Leader/Co-Leader … Financial Impact?
• 1-2 weeks before – RCI Checklist, preparation .. Cell
Communication
 day 1 - current conditions
 day 2 - big changes
 day 3 - run the cell
 day 4 - standard work
 day 5 - presentation
 1st week after - Capture the savings
 2nd week after – Update Standard
Work
 3rd week after – CFO validation
•Step 1 “Identify” waste
•Step 2 “Eliminate” waste

10. • “Value-Adding” changes the value of an item
•Drilling
•Assembling
•Painting
•Cutting
•Welding
VALUE ADDING

11. NON-VALUE ADDING
• Consumes time and money
• Does not change the value of an item
•Sorting
•Counting
•Stacking
•Expediting
•Checking

12. VALUE-ADDING / NON-VALUE-ADDING
• Value-adding:
̵ Any activity that contributes directly to satisfying
the need of a customer, e.g.,
• Airline transportation service (actually flying)
• Admin. process for hiring (interviewing a candidate)
• Remodeling service (attaching drywall panels)
• Admin. process for payables (reconciling Invoices
with purchases)

13. VALUE-ADDING / NON-VALUE-ADDING
• Non-value adding:
̵ Any activity that takes time or resources but does
not contribute directly to satisfying the need of a
customer, e.g.,
• Airline transportation service (lining up to check in)
• Admin. hiring process (scheduling the interview)
• Remodeling service (waiting for materials)
• Admin. process for payables (finding and sorting
purchase orders)

14. All value streams are a combination of value
adding and non value adding
Value
added
Lead Time

15. PROBLEM WITH TRADITIONAL IMPROVEMENTS
Total Lead Time to Customer
Un-changed
97.5 % NVA
95 % NVA
V.A. Time 2.5%
5%
Value Adding
“Lets make improvements” (e.g. faster machines)
Existing Batch Operations
Order
Order
Ship
Ship

16. Improvement will be easier and more likely to
succeed by focusing on & removing the non-value
added activities (waste)
THE ‘BIG IDEA’ OF LEAN THINKING ?
Total Lead Time to Customer
95 % NVA 5%
Value
Adding
Order Ship

17. Profit = Price - Costs
WHY LEAN THINKING ?
The world has changed!
We can no longer sell everything we make.
Competition is everywhere!

18. Capacity = Work + Waste
WHAT ARE THE BENEFITS?

19. TRADITIONAL FLOW VS. CELLULAR FLOW
Traditional flow Cellular flowDept 1
Dept 2
Dept 4
OUT
DONE
OUT
OUT
OUT
IN
IN
IN
IN
DONE
IN
•Natural
Groups in
each cell
•Work
sequence
may be
different
from part
flow
sequence
4 3
1 2
Out
In
Dept 3

20. RCI IS ABOUT SEEING WASTE (8 WASTES)
• Wasted Human Talent – Damage to people
• Defects – Material that isn’t right & needs to be fixed
• Inventory – Material waiting to be worked
• Overproduction – Too much / too early
• Waiting Time – People waiting for material to arrive
• Motion – Unnecessary human movement
• Transportation – Moving people & material
• Processing Waste – Tasks we have to do that don’t add
value to the material we are producing!

21. TPS – THE ROOTS OF “LEAN”
TOYOTA
PRODUCTION SYSTEM (“TPS”)
JUST-IN-TIME
- what’s needed
- when needed
- in the quantity
needed
LEVELING (of overall volume and of mix variation)
AUTONOMATION
(JIDOKA)
- autonomous
- defect-free
- detects abnormal
conditions
INVOLVEMENT:
Flexible, Motivated,
team members
always looking for a
better way

22. T.P.S
TAKT TIME TIME OBS. BARCHART 6S
PROD. CONTROL SPAGHETTI STANDARD STD WIP
BOARD DIAGRAM WORK SHEET
KEY POINTS CAPACITY COMBINATION LOAD-LOAD
SHEET SHEET
PULL SYSTEM TPM POKA-YOKE ONE PIECE FLOW
(KANBAN)
SETUP LEVELING
REDUCTION
WASTE ELIMINATION
TOOLS
IMPROVEMENT TOOLS COME FROM TPS

23. 9 KEY TOOLS FOR SEEING WASTE
• The key to eliminating waste is to first be able to see it
• These 9 tools help us identify waste:
Takt Time
Time observation
Bar chart
Spaghetti diagram
Flow diagram
Standard work sheet
Standard work combination sheet
Production control board
Standard WIP

24. TAKT TIME
• Takt Time = (available time) / (customer demand)
What is the Takt Time?
Are we producing at Takt Time?
Why not?
Takt Time is the first tool which distinguishes between
“faster is better” from “how many do I need”?

25. TAKT TIME CALCULATION
8 hour shift
- 20 min breaks
- 10 min c/u
450 min
27,000
257
105 Sec.
total time
available
real demand per shift
with backup data
TAKT TIME
convert to seconds for
Takt Time calculation
8 hr. shift x 60 min/hr = 480 min
(breaks) - 20 min
(clean up) - 10 min
450 min
450 min x 60 sec/min = 27,000 sec.
426
63

26. TAKT TIME
• Takt time tells you how much time you “get”
Takt Time will be different in all areas of your plant
Available time can vary by department or cell
Takt Time can vary by day …. Or shift …
Customer demand is based on actual demand
Do you know your customer demand? Does your
supervisor?
Takt Time drives product cost!
• Staffing (Productivity)
• Size of cell (Floor Space)
• Capital equipment (Burden)
• Inventory (Turns/Cash Flow)

27. TIME OBSERVATION
• The time observation determines how long it takes to do
the task
̵ Time observations are not time studies
̵ The time observation is a tool to help you see waste
̵ Time observations help you see the non-value-adding steps in
detail

28. TIME OBSERVATION
• Time observations help you identify the waste
• Look for opportunities to eliminate “work” when
observing someone
• Selecting the “lowest repeated” time, when observing
someone, provides Step 1 in improvement
̵ Make every unit repeat in the “lowest repeated” time
̵ Break down the steps into Value-Added and Non-Value-Added
steps
̵ Eliminate the Non-Value-Added tasks

29. BAR CHART
• Bar Charts show time observation data:
̵ Place line showing Takt Time
̵ 1 bar for each person (1 time observation for each person)
̵ Look for waste Identified by the Bar Char
̵ How many people do we need?

30. SPAGHETTI DIAGRAM
• Purpose: To help see movement
of people
• Makes motion and transportation
waste obvious
• Stand back and observe the
operator
̵ Where do they go?
̵ Why?
• 1 Spaghetti Diagram per person
in the cell

31. FLOW DIAGRAM
• Flow diagrams often help us see how “material” flows
̵ VA and NVA steps
̵ Total process … before and after your cell
̵ Use Value Stream Maps for detailed diagram
• See the flow, see the waste, and develop a vision
Weld Paint
Cut Punch BendStore
QC
Store
Cut Punch BendStore Store
Store Store

32. FLOW DIAGRAM

33. STANDARD WORK SHEET
• Standard Work Sheets show the “current best way”
̵ Layout of the cell
̵ How many people in the cell
̵ Work sequence of each person
̵ Standard WIP
• quantity and locations

34. STANDARD WORK SHEET
# peopleSafety Hazards
Quality
Checks
Standard WIP

35. • Production Control boards help us achieve Takt Time
̵ Visually monitor Output vs. Takt Time
̵ Operators communicate problems/issues
̵ Supervisors responsible for resolution
̵ Problems/solutions are visible and documented
PRODUCTION CONTROL BOARD

36. • Standard WIP is a calculated number
• Standard WIP highlights where the problems are
Where should the Standard WIP be located?
Is it there now? If not, what has happened?
Use the Standard WIP to make problems visible
STANDARD WIP

37. • Standard WIP is a calculated number
• Standard WIP is used to manage obstacles to “flow”
̵ Examples:
• Glue drying
• Yield
• Heat treating (monuments)
• Parts used as pairs or sets
• Timing of complex flows
STANDARD WIP

38. STANDARD WORK BOARD
- TIME OBSERVATION SHEET
(on file in the cell)
- BAR CHART (1 per cell)
- STANDARD WORK SHEET
(1 per cell)
- STANDARD WORK
COMBINATION SHEET
(1 per person in the cell)
- KEY POINTS SHEET
(1 per work station in the cell)
- CAPACITY SHEET
(1 per cell)
AT T/T
W
HINE
R.I. EVENT GOALS: INCREASE PRODUCTIVITY 30%

39. WHERE TO USE THESE TOOLS
 TAKT TIME
 TIME OBSERVATION
 BAR CHART
 SPAGHETTI DIAGRAM
 FLOW DIAGRAM
 COMBINATION SHEET
 STANDARD WORK
SHEET
 PRODUCTION
CONTROL BOARD
 STANDARD WIP
documenting
Standard Work
RI Event
current
conditions
Visual
Management
of a cell

40. MANAGEMENT DECISIONS
• Managers/Supervisors make decisions that create
results
• Good decisions create good results (measurements)
̵ Key decisions
• How many people do I need?
• Who does what?
̵ Critical skills
• Seeing problems (visual management)
• Resolving problems

41. ADJUST FOR CHANGES
• Cell managers maintain and update Standard Work
• When Takt Time changes...
̵ Determine staffing
̵ Add or redeploy people … what happens if you overstaff?
̵ Standard Work documents should exist for different staffing
• When the cell is improved
̵ Update all Standard Work documents
Encourage Improvements!!!

42. WALK, STOP AND LOOK
• Management succeeds or fails at the cell level first
• Spend at least 30 minutes, 2 times per day
• Take the time to stop and observe:
̵ Production Control Boards
̵ Standard WIP
̵ Standard Work sequence
• 10 second rule!!
• Is anyone capturing the “Golden Nuggets”?
• What’s being done to resolve them?
• Is anyone Identifying waste?
• Is anyone eliminating waste?

43. CELLS
• Cells are the building block of Lean
• To establish a cell you need:
̵ One Piece Flow
̵ Standard work
̵ 6S
̵ Pull Systems

44. ONE-PIECE FLOW (CELLS)
• Natural groups of parts or steps
• One piece flow inside the cell
• One operator may run the cell
• No birdcages or barriers
• U-shaped design
• Multi-skilled people
• Layout based on flow steps
Work sequence based on
output required!
DONE
IN
4
3
1 2
5

 





45. Batch size of 300 vs. Batch size of 1
A
B
C
1
minute
2
minutes
3
minutes
• First Piece Done - 3 Minutes
(can move on to next step)
• 300th Piece Done - 302 Minutes
• WIP = 3 Pieces
A
B
C
300
minutes
600
minutes
900
minutes
• First Piece Done - 601 Minutes
(but waits for other 299 pieces)
• 300 Pieces Done - 900 Minutes
• WIP = 900 Pieces
Reduced Batch Sizes

46. • Standard Work is a management system
̵ TAKT TIME (available time / customer demand)
̵ WORK SEQUENCE (assign one Takt Time to each person)
̵ STANDARD WIP (minimum amount needed to run the cell)
• Standard Work has a standardized documentation
• Standard Work enables Visual Management
̵ Production Control Boards
̵ Standard WIP Levels
̵ Standard Work Board
STANDARD WORK
see and resolve
problems

47. 6S
1. SAFETY (see and fix unsafe conditions)
2. SORT OUT (get rid of what’s not needed)
3. STRAIGHTEN (organize what belongs)
4. SCRUB (clean up, see and solve problems)
5. STANDARDIZE (who does what to keep it up)
6. SUSTAIN (be disciplined… keep it orderly)
6S is the foundation for all future improvements

48. VISUAL MANAGEMENT (SUPPORTS ALL TOOLS)
APPLY VISUAL TOOLS
VISUAL WIP
INDICATORS
STATUS
UNITS VS PLAN
ALARMS
LOCATIONS
CORRECTIVE ACTION /
6-SIGMA
OWNED BY THE PEOPLE WHO WORK IN THE AREA
SEE
AT-A-GLANCE
(5 seconds)
NORMAL
ABNORMAL

49. VISUAL MANAGEMENT (SUPPORTS ALL TOOLS)

50. PULL SYSTEMS
• Pull Systems link cells together
̵ Only when a single cell is not possible
• All Pull Systems have three elements:
̵ Upstream “ready” - pulled when needed
̵ Downstream “in use” - being consumed "now"
̵ Trigger - a signal (what, where, when, how many)

51. PULL SYSTEMS

52. BASICS OF LEAN FOR MANUFACTURING
On-Demand, Defect-Free,
One-By-One at the Lowest
Cost

53. Philosophy
(Long Term Thinking)
Process
(Eliminate Waste)
People & Partners
(Respect, Challenge and Grow Them)
Problem
Solving
(Continuous
Improvement and
Learning)
•Continual Organizational Learning
•Go see For Yourself To Fully Understand The Situation
•Make Decisions Slowly By Consensus, Thoroughly Considering All
Options; Implement Rapidly
•Grow Leaders Who Live The Philosophy
•Respect, Challenge, And Grow Your People And Teams
•Respect, Challenge, and Help Your Suppliers
•Base Management Decisions On Long-Term
Philosophy,
4P Model Of
The Toyota Way
•Create Process Flow to Surface Problems
•Use Pull Systems To Avoid Overproduction
•Level Out The Workload
•Stop When There Is A Quality Problem
•Standardize Tasks For Continual Improvement
•Use Visual Controls So No Problems Are Hidden
•Use Only Reliable, Thoroughly Tested Technology

54. HEXAGON LINCOLN
K. Hazen