Lean Manufacturing Topic Philosophy of waste reduction

Lean Manufacturing Topic Philosophy of waste reduction!

Lean manufacturing • Lean is the practice of a theory of production that considers the expenditure of resources for any means other than the creation of value for the presumed customer to be wasteful, and thus a target for elimination. • It is a generic process management philosophy derived mostly from the Toyota Production System (TPS). • It is renowned for its focus on reduction of the original Toyota seven wastes in order to improve overall customer value, but there are varying perspectives on how this is best achieved. • The steady growth of Toyota, from a small company to the world's largest automaker, [2] has focused attention on how it has achieved this.

Types of wastes • While the elimination of waste seem like a simple and clear subject, waste is often very conservatively identified, making its elimination rather difficult. • Toyota defined three types of waste: muda, muri and mura.

Wastes • Firstly, muri focuses on the preparation and planning of the process, or what work can be avoided proactively by design. • Next, mura focuses on implementation and the elimination of fluctuation at the scheduling or operations level, such as quality and volume. • Muda is discovered after the process is in place and is dealt with reactively. It is seen through variation in output. • It is the role of management to examine the muda, in the processes and eliminate the deeper causes by considering the connections to the muri and mura of the system. The muda and mura inconsistencies must be fed back to the muri, or planning, stage for the next project.

The original seven muda • Transportation (moving products that is not actually required to perform the processing) • Inventory (all components, work-in-progress and finished product not being processed) • Motion (people or equipment moving or walking more than is required to perform the processing) • Waiting (waiting for the next production step) • Overproduction (production ahead of demand) • Over Processing (due to poor tool or product design creating activity) • Defects (the effort involved in inspecting for and fixing defects)

Other wastes from (TPS). • Latent skill (not utilized skills of workers) • Danger (unsafe work area) • Poor information • Material • Breakdown

Key manufacturing strategies • Quality • Cost • Delivery • Waste Reduction

Philosophy of lean manufacturing: “Eliminate Waste”

Historical notes fundamental milestone Shewhart 1924; Process quality Toyota Lean (eliminate waste) 1980 s; Motorola 1980 s; Six Sigma (reduce the variance)

Lean manufacturing milestones In 1980 s, Zero Defects, Quality Circles, and Quality Management techniques targeted the improvement of product, process quality and factory ‘waste’. Later organizations emphasis to reduce waste through a ‘better design’ product approach. In 1990 s, some organizations started programs to ‘reduce numbers of suppliers’ with the vision of closer working relationship and improved quality and responsiveness.

Lean manufacturing milestones Other production streamlining innovations such as cellular manufacturing, one - piece production flow, and just – in – time manufacturing were attempted to reduce waste. Currently, the industry has attempted the combined use of different tools such as manufacturing resource planning (MRP II), JIT, SPC and 5 s to reduce defect and waste. The Toyota production system is the best example. ‘More Progressive Organizations’

Why lean manufacturing? Poor quality drives up the cost of manufacturing, causing rework, production delays, increased inventories. Automation of a process lead to improved control of variation, ultimately reducing manufacturing cycle time, increasing quality, and leading to on time deliveries. A number of lean approaches that promise to cut costs through increased factory responsiveness and ‘reduced waste’ seem to be equally reasonable and important.

Purpose of lean manufacturing “To improve process that produces components without waste” Manufacturing Process= VA + NVA VA= Value added NVA= Non value added

Identified focus on VA and NVA VA NVA Customer willing to pay Defective part Material improvement Late deliveries Physical appearance of the product Waiting time Product cost Portable Multifunctional Light weight Durable Break down Part shortage Underutilized equipment Unpredictable production schedules Workforce empowerment

Typical vs. preferred approach

Lean mfg. the continuous improvement of elimination of waste in all forms Waste of time Waste of materials Waste of equipment Waste of Space and buildings Waste of foreign exchange Waste of human energy and efforts Waste of mental power Elimination of health hazards Elimination of safety risks

Elimination of waste in all forms (cont. ) Elimination of discomfort Elimination of frustration and dissatisfaction Elimination of discontent

Waste opportunities (a factory case) • • • Producing defective parts Passing on defective parts Not communicating improvements Overproduction Inventories Motion High nonvalue ratio Transportation Waiting Counting Inspection after the fact • • • Facility layout Excessive setup times Incapable process Maintenance Work method Training (or lack of) Supervisory ability (coaching) Production planning/scheduling Lack of workplace organization Supplier quality/reliability Lack of concern

A factory case of 11 Waste? Complexity Labor Over Production Space (reduce space on working place Energy Defects Material Idol material (part is not moving – stand still material) Time Transportation Safety hazard

Tools to remove / control waste Kaizen is a continuous improvement to remove waste KAI = change ZEN = for betterment • Use of cross-functional teams • Develop selfperpetuation through education • Mirror (Toyota) approach

Taiichi Ohno “Where there is no standard. . . there can be no kaizen”

Tools to remove / control waste Value stream mapping (VSM) A visual tool to help see and understand the flow of material and information. It maps all actions currently required to deliver a product A big picture perspective on improving the whole, not optimizing pieces of the process A pencil and paper tool that requires physically observing the factory floor

Tools to remove / control waste Total productive maintenance A technique that utilizes the entire work force to obtain the optimum use of equipment Daily equipment checking, machine inspection, fine -tuning machinery, lubrication, troubleshooting, repair Just – in – time (JIT) means to convert or materialize each order of the customer into finished goods (ready for delivery) as quickly and effectively as possible (to minimize lead time)

Tools to remove / control waste Jidoka improvement for preventing employees, machines and equipment from doing wrong action. It consists of some devices that set off warning lights or buzzers to indicate a defective item. So for design features are concerned it prevent employees from assembling tools or work pieces incorrectly

Tools to remove / control waste Kanban is a tool (printed cards in clear plastic cases) that enables employees to operate the production system by taking responsibility for managing their own jobs. It works in such a manner that employee who remove kanban from components before mounting them on the main assembly. The employee sends the kanban back to the preceding process as orders for additional components to replace the ones he has used. In this way the employee is helping and playing the “management function” of ordering the parts and managing inventory.

Tools to remove / control waste Manufacturing resource planning (MRP II) it is an automated computer based production and inventory control system which is used to gauge the company’s inventory control efforts. Very useful to pace the production flow by setting optimal plans and schedules to be followed by the production line.

Tools to remove / control waste Cellular manufacturing Flexible manufacturing system (FMSs) Automated storage and retrieval system (ASRS) Automated guided vehicles (AGVs) Group Technologies (common materials, tooling, set-up procedures and labor skills, etc.

Tools to remove / control waste Statistical process control (SPC) is a statistical method of tracking, evaluating, and eliminating the causes of manufacturing process variation that can lead to product deficiencies. The use of SPC within the facilities of major suppliers is required as a means to measure and cause improvement to the quality of supplied components.

Tools to remove / control waste Economic order quantity (EOQ) It is a method that identifies the most costeffective ordering quantity based on trade-off between volume discounts and the cost of stocking and holding these quantities as inventory. Reorder point is an approach used to maintain sufficient inventory stockage to prevent shortages between replenishments.

Tools to remove / control waste 5 S levels a criteria to improve work processes • Sorting • Simplifying • Sweeping • Standardizing • Self-Discipline

Tools to remove / control waste Sorting necessary and unnecessary items are mixed together in the work area and these should be separated. Unnecessary items should be properly tagged. A list of items should be developed to identify items needed in the area. Tagged items have been placed in a holding area for review by interested people

Tools to remove / control waste Simplifying tools, supplies, and materials are randomly located. It is necessary to create a place for everything according to frequency of use. Properly labeling of the things are very important

Tools to remove / control waste Sweeping factory or office and machinery or office equipment are dirty and disorganized. So regular physical and visual sweeping is necessary Work and break areas should be cleaned on a regularly basis.

Tools to remove / control waste Standardizing an attempt should be made to develop document and improve current processes. Visual controls should be standardized for the area (i. e. , signboards, shadow boards, color coding, outlining, etc. Methods should be improved and new changes should be incorporated and documented.

Tools to remove / control waste Self-Discipline there is a need to spend sufficient attention on housekeeping and safety. A recognizable effort has been made to improve the condition of the work area. Involvement in 5 s activities is necessary. The work area should kept neat and clean

Takt Time • The word “Takt” is of German origin having its meaning most closely associated with musical rhythm • Like a heartbeat it should not be arrhythmic • Must have a couple of known paces, but these paces should not change every day

Takt Time Calculation Available time/Demand = Takt Time example: 8 hour day - 2 10 -minute breaks - 15 minute clean up period = 445 minutes available If the customer demand in a peak season averages 800 units per day, then 445/800 =. 55 We need one unit every. 55 minutes or one unit every 33 seconds

Typical benefits of applying lean thinking Percentage of Benefits Achieved Source: NIST Space Utilization Quality Improvements WIP Reduction Productivity Increase Lead Time Reduction 0 20 40 60 80 100

Summary • Being Lean is not optional (Dr. Deming) • Lean thinking is not a hula-hoop (it is not going to go away) • Lean thinking takes effort, if it were easy everybody would do it • Single strategy does not minimize waste in the company • Being Lean is financially rewarding • Start small, learn as you go, develop a model line • Develop a current state map first • Develop closer knit supplier base • Clearly document the future state map so everyone can visualize it • Perform the improvements in manageable steps • Be good at finishing—use policy deployment • Don’t wait for the entire process to complete, celebrate the journey