Lean Manufacturing

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Lean Manufacturing

• Erika Martinez
• Roger Garcia

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What is Lean Manufacturing?

• Work in every facet of the value stream by
• Eliminating waste ? to reduce cost
• Maximizing or fully utilizing activities that add
  value from the customers perspective
• Generate capital
• Bring in more sales
• Remain competitive in a growing global market
• The value stream, defined as the specific
  activities within a supply chain required to
  design, order and provide a specific product or
  value

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What is Lean Manufacturing?

• Lean focuses on abolishing or reducing wastes
  (muda) and on maximizing or fully utilizing
  activities that add value from the customers
  perspective.
• Value is equivalent to anything that the customer
  is willing to pay for in a product or the service
  that follows

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The Seven Wastes in Manufacturing

• Over Production ? Producing more material than is
  needed before it is needed
• Inventories ? Take space, costs and can be
  damaged
• Producing Defective Products ? Impede flow and
  lead to wasteful handling, time and effort
• Motion ? excessive bending or stretching and
  frequently lost items

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The Seven Wastes in Manufacturing

• Processing ? Extra processing not essential to
  value - added
• Transportation ? Moving material does not enhance
  the value of the product to the customer
• Waiting ? Material waiting is not material
  flowing through value-added operations

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Lean Manufacturing Tools and Techniques

• Cellular Manufacturing
• Arrangement of people, machines, materials, and
  methods with the processing steps placed right
  next to each other in sequential order, through
  which parts are processed in a continuous flow

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Continuous Improvement

• Kaizen is a systematic approach to gradual,
  orderly, continuous improvement.
• One of the most effective tools of continuous
  improvement is 5S ? modular step toward serious
  waste reduction
• Seiri (Sort) ? Eliminating unnecessary items from
  the workplace
• Seiton (Straighten) ? Focused on efficient and
  effective storage methods
• Seiso (Sweep and Clean)? clean the work area
• Seiketsu (Systemize) ? standardizing best
  practice in your work area
• Shitsuke (Standardize) ? defining a new status
  quo and standard of work place organization

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Just in Time

• Management idea that attempts to eliminate
  sources of manufacturing waste by producing the
  right part in the right place at the right time

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Getting Started with Lean

• The first step in value stream mapping is to
  choose a product family as the target for
  improvement ? products group by similar sequence
  of final processing steps and machines
• Draw a current state map to take a quick view of
  how things are being done now ? shipping
  department, and then working ones way up to the
  upstream processes
• Create the future state map ? highlight the
  sources of waste and help make target areas for
  improvement visible

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Getting Started

• Creating a future state map is done through
  answering a set of questions with regards to
  issues related to building of the future state
  map, and technical implementation related to the
  use of lean tools.

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Do you have the Right end Items?
Assign right products to the pacemaker process

• If demand gyrates between products and you can
  keep changeover times short ? share products
  between mix- model cell
• Products AB

• Flexibility
• Product A Product B

Demand high enough to allow you to dedicate
individual products so their own cells or lines
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What is the Takt Time?

• Reference number that is used to help match the
  rate of production in a pacemaker process to the
  rate of sales
• Demand per production shift

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Cycle Time

• How frequently a finished unit actually comes off
  the end of the pacemaker
• Cycling much faster than takt may require more
  people

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Setting the pace

• Takt time is customer demand (which can not be
  changed) divided into available production time
  (which can be changed)
• The available production time ? or length of
  shifts
• The number of end items produced in a cell
• The number of cells making a particular end item

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What are the Work Elements for Making one Piece?

• Work Element ? The smallest increment of work
  that could be moved to another person
• Always break work into elements. It would help
  identify and eliminate waste that is otherwise
  buried within the total operator cycle
• Paper Kaizen ? Elimination of waste!
• What not to include as work element
• Walking
• Out-of-cycle work for operators
• Operators waiting for machines to cycle
• Time for removing finished parts from machines
  wherever an automatic eject could be introduced

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What is the Actual Time Required for Each Work
Element?

• It is needed to go to the workplace and use stop
  watches
• Collect real times at the process
• Position yourself so you can see the operators
  hand motions
• Time each work element separately
• Time several cycles of each work element
• Observe an operator who is qualified to perform
  the job
• Always separate operator time and machine time
• Select the lowest repeatable time for each
  element
• Remember shop floor courtesy!

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5. Can your Equipment Meet Takt Time?

• Each machine must be able to complete its cycle
  on each part within takt time
• The effective cycle time of each machine should
  be considerably less than takt time if continuous
  flow is to be achieved
• Effective machine cycle time

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How much Automation?
Levels of Automation
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How can the physical process be laid out so one
person can make one piece as efficiently as
possible?

• Arrange the machines, workstations, and material
  presentation devices as if only one operator
  makes the product from beginning to end
• Avoids isolated islands of activity
• Minimizes inventory accumulation between
  processes
• Eliminates excessive walking
• Removes obstacles in walking paths
• Brings the people-driven, value-creating steps as
  close to one another as possible

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How many operators are needed to meet Takt Time?
Guidelines for determine the number of operator
in a cell
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How will you distribute the work among the
operators?

• Some approaches to consider
• Split the work
• The circuit
• Reverse flow
• Combinations
• One-Operator-per-Station
• The Ratchet

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Split the Work

• Split the Work among operators so each performs
  one takt time worth of the total work content,
  often moving between several machines

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Circuit work distribution

• The Circuit ? One operator performs all the work
  elements to make a complete circuit of the cell
  in the direction of material flow. A second
  operator follows a few stations behind

1
2
Return walking distance
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Reverse Flow

• Reverse Flow ? The operators make a circuit in
  the reverse direction of the material flow

Part holding positions
Finished product
Machine 3
Machine 2
Material flow
Machine 1
Operator flow
Raw material
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Combination work distribution

• Combinations of splitting the work and a circuit
  or reverse flow

Raw material
3
2
1
(circuit portion)
Finished product
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One-Operator-per-Station Distribution

• One-operator-per-Station ? Each operator stays at
  one workstation

Empty station for volume increase
Material flow
1
2
3
4
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The Ratchet

• The Ratchet ? Each operator works two machines
  and ratchets the work piece ahead each time the
  operator moves to a downstream machine
• Work station responsibility in the Ratchet
• Operator 1 Workstation AB Operation 3
  Workstation CD
• Operator 2 Workstation BC Operation 4
  Workstation DE

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How will you schedule the pacemaker?

• Both must be part of the cell design process

• In order to maintain continuous flow and a lean
  value stream ?Schedule and operate a cell
• Leveling the volume of work
• Decide the most appropriate batch sizes to run
  before changing over to another product type
• Leveling the product mix

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How will the pacemaker react to changes in
Customer Demand?

• Absorb day-to-day customer fluctuations with a
  finished goods supermarket
• Run a little overtime each shift ? It is better
  than to stop production a little early because
  operator productivity stays high
• Toggle the number of operators

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Comparison between "traditional" and "Lean"
manufacturing
Area Traditional Manufacturing Lean Manufacturing
Scheduling Forecast - push Customer Order - pull
Production Stock Customer Order
Lead Time Long Short
Batch Size Large - Batch Queue Small - Continuous Flow
Inspection Sampling 100 - Source
Layout Functional Product Flow
Empowerment Low High
Inventory Turns Low - lt7 turns High - 10
Flexibility Low High
COGS (Cost of good sold) High and Rising Lower and Decreasing
Lean manufacturing is not only a project or
program. It is way of thinking.
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Lean manufacturing is not only a project or
program. It is way of thinking.
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Integrating Lean and Six Sigma

• Six Sigma is focused on reducing variation and
  improving process yield by following a
  problem-solving approach using statistical tools.
• Lean is primarily concerned with eliminating
  waste and improving flow by following the Lean
  principles and a defined approach to implement
  each of these principles.
• In fact these two processes are incredibly
  similar in their goals, methods, and
  applications.
• Both the Lean and the Six Sigma methodologies
  have proven over the last twenty years that it is
  possible to achieve dramatic improvements in
  cost, quality, and time by focusing on process
  performance.

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Integrating Lean and Six Sigma

• The impressive results companies such as Toyota,
  General Electric, Motorola, and many others have
  accomplished using either one of them have
  inspired many other firms to follow their
  example. As a result, most companies have either
  a Lean or Six Sigma program in place.
• However, using either one of them alone has
  limitations
• Six Sigma will eliminate defects but it will not
  address the question of how to optimize process
  flow
• and the Lean principles exclude the advanced
  statistical tools often required to achieve the
  process capabilities needed to be truly 'lean'.
• While each approach can result in dramatic
  improvement, utilizing both methods
  simultaneously holds the promise of being able to
  address all types of process problems with the
  most appropriate toolkit. For example, inventory
  reduction not only requires reducing batch sizes
  and linking operations by using Lean, but also
  minimizing process variation by utilizing Six
  Sigma tools.

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Comparing Lean And Six Sigma
Comparing Lean Six Sigma
 
  Lean Six Sigma
Goal Create flow and eliminate waste Improve process capability and eliminate variation
Application Primarily manufacturing processes All business processes
Approach Teaching principles and "cookbook style" implementation based on best practice Teaching a generic problem-solving approach relying on statistics
Project Selection Driven by Value Stream Map Various approaches
Length Of Projects 1 week to 4 months 2 to 6 months
Infrastructure Mostly ad-hoc, no or little formal training Dedicated resources, broad-based training
Training Learning by doing Learning by doing
 Table 1 Comparing Lean And Six Sigma
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Differences to be considered between Lean and Six
Sigma.

• Lean projects are very tangible, visible, and can
  oftentimes be completed within a few days
  (whereas Six Sigma projects typically require a
  few months). An integrated approach should
  emphasize Lean projects during the initial phase
  of the deployment to increase momentum.

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Differences to be considered between Lean and Six
Sigma.

• Lean emphasizes broad principles coupled with
  practical recommendations to achieve
  improvements. For example, Lean suggests a
  technique to analyze and reduce changeover time
  that does not require sophisticated analysis and
  tools. However, Lean principles are oftentimes
  inadequate to solve some of the more complicated
  problems that require advanced analysis.
  Therefore, Six Sigma needs to be introduced
  during the first year of the deployment to ensure
  that the improvement roadmap includes a generic
  problem-solving approach.

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Differences to be considered between Lean and Six
Sigma.

• An integrated improvement program needs to be
  fueled by a vision of the future state and by a
  pipeline of specific projects that will help
  close the gap between current and future state.
  Lean introduced Value Stream Mapping as the
  central tool to identify the gaps and to develop
  a list of projects that can be tackled using Lean
  or Six Sigma methodology.

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Differences to be considered between Lean and Six
Sigma.

• Whereas the Six Sigma process and tools can be
  applied to virtually every process and industry,
  the Lean approach is much more specific and the
  content needs to be adjusted to industry needs
  For example, reducing set-up time in a plant that
  has lines dedicated to a single product is
  pointless. Therefore, the Lean curriculum needs
  to be adjusted to meet the needs of the specific
  business.
• The following roadmap provides an example for how
  one could approach the integration of Lean and
  Six Sigma into a comprehensive roadmap.

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Integrating Lean and Six Sigma Roadmap
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Lean Sigma-DMAIC integration model

• LeanTime VariabilityIncrease SpeedEliminate
  WasteQuick Fix Solutions
• Six SigmaProcess VariabilityImprove
  QualityIncrease YieldRoot Cause Solutions

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Benefits of Lean Six Sigma

• It can be applied across various sectors of
  industry - While it is true that lean thinking
  first began as an approach in the manufacturing
  sector, these days Lean Six Sigma is being
  successfully implemented in industries across the
  board. It is no longer accurate to say that Lean
  Six Sigma is only for manufacturing companies.
• Immediate functional improvements from the
  implementation of Lean Six Sigma - You will see
  reduced production times and costs much faster
  than you anticipate. The main reason for this
  quick improvement is the implementation of
  several different tools including kaizen (a
  method to continuously analyze and improve
  processes), kanban (which assists with
  production), and poke yoke (which works to
  eliminate mistakes).

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Benefits of Lean Six Sigma

• Ease of execution - Lean Six Sigma is a powerful
  tool for transforming corporations, in part
  because of its ability to create links between
  strategic priorities and operational
  improvements. The goals set by a corporations
  top management personnel are the strategic
  priorities. They usually focus on improved
  customer experiences and higher returns on
  investment.
• Sustainable management capability - Lean Six
  Sigma is intricately woven into every aspect of
  the businesses, making it very sustainable for
  everyone, from corporate managers down the
  workers on the floor. The quick results that are
  obtained from implementing the process are the
  key to its sustainability.

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Benefits of Lean Six Sigma

• Increased value for consumers - Real tangible
  value is created for consumers with the
  implementation of Lean Manufacturing and Six
  Sigma. Reduced costs and the improved quality of
  products are just two of the benefits that
  consumers of your products or services will
  enjoy. Most corporation implement Lean Six Sigma
  for one simple reason, it improves the bottom
  line of the corporation.

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THANKS,

• END