Lean Manufacturing through waste

elimination and Lean Manufacturing at FORD

What is Waste?

Waste is any activity that consumes time,

resources, or space but does not add any
value to the product or service.

What is value?
Value - A capability provided to a customer
at the right time at an appropriate price, as
defined by the customer.
Cost
Quality
Delivery

The Seven Forms of Waste

overproduction (occurs when production should
have stopped)
Waiting (periods of inactivity)
Transport (unnecessary movement of materials)
Extra Processing (rework and reprocessing)
Inventory (excess inventory not directly required
for current orders)
Motion (extra steps taken by employees due to
inefficient layout)
Defects (do not conform to specifications or
expectations)

The Seven Forms of Waste

Overproduction : Producing more/sooner

than the Internal or External customer
needs.

Waiting :Long periods of inactivity for

people, information, machinery or
materials.

Transportation :Excessive movement of

people, information or materials.

The Seven Forms of Waste

In appropriate processing:
Using the wrong set of tools, procedures
or
systems.

Unnecessary Inventory:
Excessive storage and delay of
information or products.

The Seven Forms of Waste

Motion :
people or equipment moving or walking
more than is required to perform the
processing.

Defects :
Frequent errors in paper work, product
quality problems etc..

"Pull" Production Control

Systems

Just-In-Time (JIT)

Kanban

Drum-Buffer-Rope

All reduce inventory and its carrying costs,

along with cycle time.

Tie-in with small lot and single unit

processing

SMED

1.

Practically now dice can be changed in a

single digit minutes time.
Internal setup requires the tool to stop.

2.

3.

Reduce internal setup time, or convert internal

to external setup.

External setup can be performed while the

tool is working on another job.
SMED reduces cycle time by facilitating
smaller lot sizes, mixed model production,
and/or single-unit flow

Error-Proofing (Poka-Yoke)

Error-proofing makes it difficult or

impossible to do the job the wrong way.

Slots and keys, for example, prevent parts

from being assembled the wrong way.

Process recipes and data entry also can be

error-proofed.

Lean manufacturing historyThe Ford System

We know lean manufacturing, which also

refers as Toyota Production System (TPS), is
created at Toyota.

In the Ford system they manufactured

automobiles in large quantities of standard
designs, which made the system highly
efficient, delivering a product with low cost.

Lean manufacturing historyThe Ford System

Main idea of the Ford system is the standardized

product, which lead to the standard processes.
Training of workers became easily, and anyone can
work in the Ford plant within no time.

After learning from Ford system, Toyota identified

the problem that standard products could not meet
the all customer demands, and then generated the
unique Toyota Production System (TPS).

Lean manufacturing historyThe Ford System

Instead of the Ford push system, Toyota created

a unique pull system.

Leans fundamental principles developed by

Toyota are universally accepted but commonly
adapted to each organization or industry. One
example of these transformations is Ford Motor
Company, indicating the Ford Production
System.

The Ford System

"The vision of FPS is a lean, flexible and

disciplined common production system, defined
by a set of principles and processes, that
employs groups of capable and empowered
people, learning and working safely together, in
the production and delivery of products that
consistently exceed customers' expectations in
quality, cost and time."

The Ford System

By implementing FPS, Ford attempted to

transform itself from mass production
system to lean manufacturing system.

By utilizing policy deployment, visual

management, process confirmation, and
time and data management, FPS will deliver
a more aligned and capable organization,
which will be continually improving and
ultimately building a better manufacturing

The Ford System

The ten FPS Continuous Improvement Model

Processes:

Continuous Improvement Board

Start+up Confirmation
Results Process
Support Process
Time and Data Management
Basic Administration
Kaizen
Standardized Work
Star Points

The Ford System

Lean Manufacturing in
Practice

Lean manufacturing aimed at bringing together

people, material and mechanical resources at the
right time to accomplish the job, while reducing
cost and bring continuous improvement.

It strived to eliminate seven kinds of waste

including waste from over production, waste of
waiting time, transportation waste, processing
waste, inventory waste, waste of motion and
waste from product defects.

Lean Manufacturing in
Practice

Production Systems of The

Future

By 2003, all the plants of Ford had adopted FPS in

their operations. It was estimated that after the
implementation of FPS, Ford had achieved
savings to the tune of $500 million per year.

By mid-2003, Ford was in the process of

standardizing manufacturing operations across all
its plants globally. The company planned to
implement standard operating procedures and
uniform plant layouts.