Introduction to Lean

Manufacturing

Lean Manufacturing Definition

Lean has been defined in many different ways.
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.

By The MEP Lean Network

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History Timeline for Lean Manufacturing

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Lean manufacturing is a philosophy

In 1990 James Womack, Daniel T. Jones, and

Daniel Roos wrote a book called The

That Changed the World:

Machine

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."
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How to Increase Profit?

Profit Cost

Profit Cost

Profit Cost

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Muda (Waste)
Taiichi Ohno (1912-1990), the Toyota executive who was the most ferocious foe of waste human history has produced, identified the first seven types of muda in manufacturing system:

Storage Transportation Waiting Motion Process Defects Over-production

Muda is everywhere.
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Lean Overview

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Lean Manufacturing Tools

5S Value Stream Mapping Standardized Work Load Leveling Kaizen Kanban Visual Workplace Quick Changeover Andon Poka-yoke One-piece flow Cellular Manufacturing
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Production Planning System (Push System)

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Push or Pull?

A push system
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Push or Pull?

A pull system
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Kanban Operation
Kanban Stage 1 Kanban Stage i

RM Station 1 Station 2 Station i Station i+1 Station N+1

FG

WK(1)

PK(1)

WK(2)

PK(2)

WK(i)

PK(i)

WK(i+1) PK(i+1) WK(N)

PK(N)

K i From stage i-1 1 PK

K-1 5 Kanban Stage i 2 WK 4 3 i +1 To stage i+1

Figure 3.3. A kanban stage formed by two adjacent stations.

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Raw materials inventory

14
Semi-finished parts

11

Semi-finished parts

7
Finished goods

12

11

7
Station 3

RM

Station 1

RM

11
PK

Station 2

RM

7
8 4
PK WK PK

WK

13 11 10

WK

4 7

5 2

13

6
Material handler

Order receiving

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Current State Map of A Case Study Example

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Future State Map

At which stations, are parts withdrawn? At which stations, are parts scheduled?

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Which to Choose MRP (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.
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MRP or Lean Manufacturing?

Where MRP is not as effective.
MRP is a predictive system. It does not reflect to customers demand (easy to get overproduction). A company takes MRP suggestions and acts on them without too much review is very risky. MRP wont fully support the cost-cutting. MRP needs lots of data for production management. MRP generates high overhead. MRP builds high work-in-process. MRPs lead times are fixed. MRP creates potential quality hazard.

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Which to Choose MRP (ERP), or Kanban?

Where Kanban works best.
Kanban is a very reactive system. Very little is planned ahead. Instead, Kanban causes replacement of material used in a totally reactive mode. Kanban works best in a highly stable and 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.
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Which to Choose MRP (ERP), or Kanban?

Kanban and MRP Combination
The combination of these two systems is becoming quite common. An MRP system is used for advanced planning, including long lead-time purchased materials, adding resources, and implementing product design changes. Once the MRP has the materials and resources lined up, however, Kanban is used as an execution system, bringing with the characteristics of rapid response to customer order and reduced inventory levels throughout the process.

Hybrid Systems
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The 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 doesnt make sense in my industry. Its unclear to me how lean will work with my MRP system.
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Lean 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 Earths 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.
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lean manufacturing is a link to 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.
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lean manufacturing is a link to 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 Earths 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.
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Key Steps in Transforming a Company to the Lean Approach

1. Establish a steering teamconduct strategic planning session 2. Train the steering team and the model line team in the
3. 4. 5. 6. 7. 8. 9. 10.
disciplines of lean Perform PQR (product-quantity-routing) analysis Identify value streamsselect a value stream Calculate model line takt time Value stream map the model lineassemble current state map Balance the lineassign standard work Establish standard WIP (inventory levels) Test the system (virtual cell)document results Setup reduction event

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Key Steps in Transforming a Company to the Lean Approach

11. Conduct 5S eventapply TPM techniques 12. Establish visual signalsreduce paperwork 13. Explore alternative flow patterns 14. Develop block layout 15. Develop detailed layout 16. Execute move 17. Select 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.

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References

Society of Manufacturing Engineers, Lean Manufacturing 2007, Supplement to Manufacturing Engineering, 2007. Society of Manufacturing Engineers, Lean Manufacturing 2008, Supplement to Manufacturing Engineering, 2008. Garrett Brown and Dara ORourke, Lean Manufacturing Comes to China: A Case Study of its Impact on Workplace Health and Safety, International Journal of Occupational and Environmental Health (IJOEH), 13(3), JUL/SEP 2007. Challenges in Applying Lean Manufacturing in China, McKinsey Quarterly, 2006 Special Edition available at Jackson Library. Friday, October 12, 2007 | Posted by Simone Yu in International

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