Lean Manufacturing is a system of continuous improvement to improve productivity, quality, and lead-time.

1. Lean Overview
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2. Lean Overview
• What is Lean?
• What is the Toyota Production
System?
• What are the Benefits of Lean?
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3. What Is Lean?
“A systematic approach to identifying
and eliminating waste (non-value-
added activities) through continuous
improvement by flowing the product
at the pull of the customer in pursuit
of perfection”
James Womack (Lean Thinking)
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4. The Rise of Toyota
• Taiichi Ohno’s situation after WWII:
– no money
– a small diverse market
– productivity - one-tenth that of Detroit
– production - less than one-hundredth that of Ford
• Ohno’s marching orders in the 1950’s:
– “Catch up with Detroit in three years”
• Ohno’s solution
– after studying Ford for years, created a manufacturing
system to reduce cost through eliminating waste
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5. Goal:
Highest Quality, Lowest Cost, Shortest Lead Time
Best Safety, High Morale
Just In Time Jidoka
Right part- Quality at the
Source
Right amount-
Right Time •Line Stop
•Visual
•Flow Controls
•Takt Time •Error Proofing
•Pull •Andon
•Quick •5 Whys
Changeover
Operational Stability
Standardized Work
PM/ TPM
5S
Leveled Production
Toyota Production System
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6. Thinking Lean
5 Principles of Lean
(Womack and Jones, Lean Thinking)
• Specify value
– can only be defined by the ultimate customer
• Identify/Map the value stream
– exposes waste and sources of waste
• Create one piece flow
– reduce WIP and delays
• Let the customer pull product through the value stream
– make only what the customer has ordered
• Seek perfection
– Continuously improve quality and eliminate waste
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7. What does Lean do?
Total Lead Time
Lean
Transformation
“All we are doing is
looking at the time
line from the moment
the customer gives us
an order to the point
Total Lead Time when we collect the
cash. And we are
reducing that time line
Value-Creating Time by removing non-
Non-Value-Creating value-added wastes.”
Time (waste) – Taiichi Ohno
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8. Lean Benefits
• Applying lean
principles will create
the following:
– Shorter Lead-Times to
Customers and Shorter
Production Lead-Times
– Net Decrease In Inventory Lead-Time
Inventory- Frees Up
Cash
– Productivity Growth-
increases capacity
– Quality Improvement-
lowers costs and Quality
attracts additional Productivity
business
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9. Lean Benefits
Measure Initial Lean Conversion Continuous
Improvement
Labor Productivity Double Double Again
Production Throughput 90% reduction 50% reduction
Times
Inventories Throughout 90% reduction 50% reduction
Errors Reaching 50% reduction 50% reduction
Customers
Scrap 50% reduction 50% reduction
Time to Market / New 50% reduction 50% reduction
Product Development
Lean Thinking, Womack and Jones, 1996
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