A Cautionary tale about implementing lean… So you just completed your “Lean Manufacturing” class and you have management’s commitment to implement lean practices within your organization. What next!

1. Know the Value of your
Non-Value Added!
Lean Manufacturing
By: Brian Harrington

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About the Presenter
Brian Harrington is a Six Sigma Black Belt with 20
years operations research and simulation experience
at Ford Motor Company. He designs and implements
manufacturing process improvements which
incorporate many conflicting objectives such as
robust, flexible, and Lean systems.
Now running his own discrete event simulation specialists firm MTN-SIM LLC, he
continues to deliver high quality complex models for a wide range of
manufacturing, healthcare, and business process improvements. He also acts as a
technical ambassador for SIMUL8 Corporation assisting in teaching, mentoring,
marketing, and consulting projects.

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Non-Value Added
http://www.simul8.com/blog/know-the-value-of-non-value-added/
20 years ago… As a member of the Ford College Graduate Program
“The Goal” was a one of three books given out to all new engineers.
Protective Capacity is a term developed by Dr. Eli Goldratt, author of
The Goal.

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Lean Manufacturing
• What does it mean to you?
• What does it mean to your management?
• How does it affect your company?

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Lean Manufacturing Def’n
• Something that the customer is willing to pay for
• Added value to the customer
• Piece to piece part flow
• Reduction of waste
• Reduction of defects
• Uses pull systems (Kanban)
• Value Stream Mapping
• Toyota Production System

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Non-Added Value
Activities that don’t contribute to the
product or process; considered waste
and can be eliminated from the process.
• What is in the process that
is deemed as Non-Value
Added?

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Buffers & Conveyors
• Become labeled as “Non Value Added”
• They become labeled as waste
• They become a “bad” word

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Protective Capacity
• Extra capacity strategically placed around
bottlenecks and constraints
• Protective Capacity resides in:
– Buffers
– Over-speed
– Backup strategies
– Parallel Lines

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Synchronous Work Flow
• Piece to piece part flow
• Synchronous stations within an assembly
line
All stations have unique downtime
Summed-up they can create a LOW overall Availability!
Remember that a line of 8 stations that all are rated at 95%
availability might seem like a productive line. But… that
equates to (.95^8) for an overall availably of 66% for the line!

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So you are a Lean Company?
• Why are there so many parts on the shop floor?
• You might have a lean configuration… but it’s
not working!
Successfully implementing Lean Manufacturing
requires an extensive layered discipline change
throughout the organization.

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Buffers & Over-Speed
• Might not be as “Bad” as you think!
• Non Value Added; But essential
– Inspection Stations
• Strategically located, right sized, protective
capacity is effective!
– Can be low cost solution
– Can be optimized to be as “Lean” as your company
can manage

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Achieved via Simulation
• Where to place buffers
• Where to place over-speeds
• Optimal size of buffers
• Optimal cycle time
• Best combination of both!

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Benefits of buffers & Over-Speed
• Break-up or decouple synchronous
behavior
• Create a “Push” to downstream operations
• Creating a balance system
• Optimizing impacts of planned downtime
• Can be the low cost solution

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SIMUL8 Example

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SIMUL8’s Scenario Manager

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Successful Approach to Becoming Lean
Lean Manufacturing is much more than just addressing so
called “non-value added buffers”!
There are several other important factors within a true lean
system from: standardization, reliability, trained work-force,
reduction of defects, the list goes on.
Simulation can provide great data-backed insight into
implementing suggested lean changes!

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Q & A
We will accept additional question on LinkedIn “SIMUL8 User Group”