5 Principles of Lean Thinking

The 5 Principles of Lean Thinking

Define value from the customer perspective Identify the value stream Make the process flow Pull from the customer Head toward perfection
Welding ex.

The 5 Principles of Lean Thinking

Define value from the customer perspective
How do we define value?
Must pass all three criteria; 1) Customer has to care (willing to pay for) 2) Must change the thing, 3) Done right the first time.

95% Waste

Seven Forms of Waste

Add Costs but Not Value!

Transportation Inventory (Unnecessary) Motion (Unnecessary) Waiting Overproduction Overprocessing (Inappropriate) Defects

Transportation
Excessive movement of people, information or materials.

I had to go across the street!"

Courtesy of Vansco Electronics Ltd. Spaghetti

Unnecessary Excessive storage and delay of information or products.

Inventory

Were running out of room. We need to expand!"

Courtesy of Vansco Electronics Ltd. Dell Costs

Unnecessary

Motion

Any motion that does not add value to the product or process.

Theres got to be an easier way!"

5S- 90% Fail

Waiting
Long periods of inactivity for people, information, machinery or materials.

The parts were supposed to be here yesterday!"

Courtesy of Vansco Electronics Ltd.

Overproduction
Producing more/sooner than the Internal or External customer needs.

"What do you mean the design's been changed!"

Courtesy of Vansco Electronics Ltd. Dell-today

Inappropriate Processing
Using the wrong set of tools, procedures or systems.

Bigger is not necessarily better!"

Courtesy of Vansco Electronics Ltd.

Defects
Frequent errors in paperwork, product quality problems etc.

Of course its taking a long time!"

Courtesy of Vansco Electronics Ltd. CAR

The 5 Principles of Lean Thinking

Define value from the customer perspective Identify the value stream

Steel Supplier

Weekly Purchase Orders

Materials

Planning

Production Control

Order Entry

Daily Ordering

Customer

Weekly Schedule (Adjusted Daily)

Weekly Deliveries

Daily Expediting
1,000 per Day

Stamp

Press

Weld

Assembly

Shipping

I
2 Coils (3,000 Pcs.)
C/T 1 Sec. 1 Shift 85% Yield 3 Days 1 Secs.

I
1,500 Pcs.
C/T 10 Sec. C/O 30 Mins. 1 Shift 100% Yield 1.5 Days 10 Secs. C/O 90 Mins.

I
1,750 Pcs.
C/T 20 Sec. C/O 30 Mins. 1 Shift 90% Yield

I
2,000 Pcs.
C/T 45 Sec. C/O 30 Mins. 1 Shift 100% Yield 2 Days 20 Secs. 45 Secs.

I
2,000 Pcs.

1.75 Days

2 Days

10.25 Days 76 Secs.

The 5 Principles of Lean Thinking

Define value from the customer perspective Identify the value stream Make the process flow

Steel Supplier

Weekly Purchase Orders

Materials

Planning

Production Control

Order Entry

Daily Ordering

Customer

Daily Ship Schedule Coil Twice Weekly Deliveries 1,000 per Day

250

Press, Weld and Assembly Cell

250 Pcs. 250

Stamp

Shipping

2 Coils (2,000 Pcs.)

C/T

1 Sec. 1 Shift

1,000 Pcs.

C/T 45 Sec. C/O 10 Mins. 1 Shift 99% Yield

1,000 Pcs.

C/O 15 Mins. 95% Yield

2 Days 1 Secs.

1 Day 45 Secs.

.25 Days

1 Day

4.25 Days 46 Secs.

How long-PLT

The 5 Principles of Lean Thinking

Define value from the customer perspective Identify the value stream Make the process flow Pull from the customer

The 5 Principles of Lean Thinking

Define value from the customer perspective Identify the value stream Make the process flow Pull from the customer Head toward perfection

Then
1924: Iron ore turned into cash in 41 hrs - Henry Ford time included 13 hr. non-value added time floating down the Rouge River in Michigan 1943: 17 B-17 Bombers built every day 1/hour built by area farmers using Lean thinking

Lean
Just Do It