Industrial Modernisation Centre

Introduction to lean thinking

April 2010

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 1- Who Wants What?

Cash !!

Value !!
Customer Your Company
Low Cost Profit
High Quality Repeat Business
Availability Growth
Flexibility

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 Price Increase -2

Price to
Sell 3
Bigger Profit 2
Some Profit 2
Cost to
Produce 1 1

Cost + Profit = Price

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 Cost Reduction -3

Price to
Sell 1 1

Some Profit 3
Cost to
Produce
2 Bigger Profit 3

Price - Profit = Cost

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? ”So, What is “Lean -4

Lean is the part of meat that

consists principally of lean
muscle.
( fat-free)

Lean Thinking is an approach that

aims to get rid of all the wastes
(fats) that burden the system.

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 Lean Manufacturing .4.1

Business as Usual

Customer Waste Product

Order Shipment

Time

Lean Manufacturing

Customer Product
Waste
Order Shipment

Time (Shorter)
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 Eliminating the “8” Kinds of Waste in Production Environment .4.2

Overproduction
Work
Work==Value-added
Value-added++Waste
Waste • Producing too much or
producing too soon

Processing
Rework
• Over-processing (too
• Any repair at any many steps/touches or
time in the process false deadlines)

Inventory
Motion
• Any more than the
• Any motion that does minimum needed to
not add value get the job done

Intellect
Waiting
• Any failure to fully utilize • Waiting on parts,
the time and talents of
waiting for a machine
people
to finish cycle
Transportation
• Any nonessential
transport is waste
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Waste Example - Spaghetti Diagram

 Materials move 760 meters to reach a final product

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Waste Example - Inventory level

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 Value Stream Map .4.3

Customer Demand:
Plant manager 6000 pieces per Month
(Takt Time 120 seconds )
phone/fax
Purchasing
Phone

Phone
Spoken Spoken
Supplier Customer

Documented
Order
Process Assembly
Supervisor Phone supervisor

Spoken Spoken
Spoken Spoken Spoken

outer shape
cutting 1 punching 1 Pressing 1 Punching 12 notch making Painting
cut

wheel base 2
Spoken
1 hours 1 hours 1 hours 1 hours 1 hours 200 minutes
Total C/T = 45 seconds Total C/T = 1 minutes Total C/T = 20 seconds Total C/T = 12 seconds Total C/T = 12 seconds Total C/T = 15 days
Total C/T = 1 minutes
19200 minutes
cutting 2 Punching 2 punching 22 Bending 2 Painting 2

courners 2
245 minutes 1 hours 30 minutes 500 minutes 19200 minutes
Total C/T = 45 seconds Total C/T = 12 seconds Total C/T = 15 seconds Total C/T = 15 seconds Total C/T = 15 days

1 Assembly
3 days cutting 4 punching 4 Bending 4 Bending 42 Punching 42 Painting 4

Cross bars 2 19200 minutes 1 days

Total C/T = 20 minutes
146 minutes 16.8 days 4.53 minutes 160 seconds 1 days
Total C/T = 45 seconds Total C/T = 35 seconds Total C/T = 16 seconds Total C/T = 16 seconds Total C/T = 16 seconds Total C/T = 15 days

3 4 19200 minutes
cutting 3 Punching 3 Pressing 3 Punching 32 Pressing 32 Welding Threading Painting 3

Legs (box) 2
2500 minutes 2 hours 30 minutes 30 minutes 16 hours 3600 minutes 1800 minutes
Total C/T = 45 seconds Total C/T = 1 minutes Total C/T = 1 minutes Total C/T = 1 minutes Total C/T = 1 minutes Total C/T = 1.6 minutes Total C/T = 1.8 minutes Total C/T = 15 days

24 hours 41.7 hours 2 hours 0.5 hours 0.5 hours 16 hours 60 hours 320 hours 8 hours Lead Time = 473 hours
45 seconds 60 seconds 60 seconds 60 seconds 60 seconds 96 seconds 108 seconds 1200 seconds VA / T = 1689 seconds
RM = 24 hours
WIP = 441 hours
FG = 8 hours
PCE = 0.0992%

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VSM Comments

Process Cycle Efficiency = VA time ÷ Lead Time

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Value Stream Map - Video

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4.4. Create Flow

• Line up all of the steps that truly create value so

they occur in a rapid sequence

• Require that every step in the process be:

• Capable – right every time (SIX Sigma)

• Available – always able to run (TPM)

• Adequate – with capacity to avoid bottlenecks (right-sized tools)

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Flow Vs. Batch and Queue

Station B
Batch & Queue

Station A Station C

Continuous flow
Workcell

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Flow Vs. Batch and Queue - Video

Film 1 (Film 1.flv)

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4.5. Let Customer Pull – (External Customer)

• Through lead time compression & correct value

specification, let customers get exactly what’s
wanted exactly when it’s wanted:
• For the short term: Smooth pull loops to reduce inventory

• For the near term: Make-to-order with rapid response time

• For the long term: Diagnostics and prognostics in a stable

relationship to take out the surprises for consumers and
producers?

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4.5. Let Customer Pull – (Internal Customer)

• Value should be Pulled through the system.

• Value should be produced:
– When the next worker needs it
– In the amount the next worker needs it
– Where the next worker needs it.
• Promotes:
– Higher quality
– Lower costs (material and facilities)
– Increased responsiveness to problem

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4.6. 5S - Definition

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4.6. 5S - Implementation

1 5 2
SAFTEY
Make a habit of maintaining
established procedures

4 3

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 4.7. Adapted Lean Tools in The Industrial Community

• 5s.
• Cellular Manufacturing.
• Kaizen.
• Kanban and Pull system
• Mistake Proofing.
• Policy Deployment.
• Continuous Improvement.
• SMED, Quick Changeover.
• Standardized Work.
• Supermarket.
• TPM.
• Value Stream Mapping.
• Visual Management.

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4.8. Lean Tools Deployment

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4.9. Traditional Vs. Lean

Lean Traditional Item

Work to tact time No tact time 1- Tact Time
Small Standard inventory Large No-standard
2- Inventory
(eventually one-piece) Inventory
Flow production Isolated islands 3- Work Flow
Pull scheduling Push scheduling 4- Push or Pull
Even paced equipment Larger, faster and special
5- Equipment
synchronized with tact time equipment
More frequent Less frequent 6- Set-up Changes
One person for many machines - One person per machine
7- Operators
Multiple skill operator - Single skill operator
NOT allowed Allowed 8- Advance Production
No/minimum inspection, Process Quality control-grouping,
9- Quality Control
control sampling inspection
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Lean Life Example

DELL Corporation

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Why change?!!

Eagle life example

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Thank you Indeed

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