Lean, Lean Manufacturing, Lean Production, toyota production system, TPS

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Lean Basics
• Lean History
• Waste
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Lean Basics - History
Pin Factory
20 pin per worker
18 Steps
10 worker – 48K pins
Adam Smith (1723 – 1790)
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Division of Labor Theory
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Cotton Gin
A cotton gin is a machine that quickly and easily separates
cotton fibers from their seeds, allowing for much greater
productivity than manual cotton separation.
Eli Whitney : (December 8, 1765 – January 8, 1825) was an
American inventor best known for inventing the cotton gin.
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Eli Whitney : (December 8, 1765 – January 8, 1825) was an
American inventor best known for inventing the cotton gin.
Standard Parts
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Henry Ford (July 30, 1863 – April 7, 1947)
He was an American industrialist, the founder of the Ford
Motor Company, and sponsor of the development of the
assembly line technique of mass production.
His introduction of the Model T automobile revolutionized
transportation and American industry.
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(June 11, 1894 – March 27, 1952)
He was a Japanese entrepreneur and the son of Toyoda Loom Works founder
Sakichi Toyoda. His decision to take Toyoda Loom Works into automobile
manufacturing would create what would eventually become Toyota Motor
Corporation, the world's largest automobile manufacturer.
He invented the system called “ Just In time”
Kiichiro Toyoda
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(October 14, 1900 – December 20, 1993)
Statistical Methods
Plan - Do - Check – Act
14 Principles of Management
William Edwards Deming
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Taiichi Ohno (February 29, 1912 – May 28, 1990)
He was a Japanese businessman.
He is considered to be the father of the Toyota Production System,
He wrote several books about the system, including Toyota
Production System
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Jams P. Womack
He is a author of “The Machine That Changed the World”. The
book has been translated into eleven languages.
He was the research director of the International Motor Vehicle
Program (IMVP) at the MIT in Cambridge, and is the founder and
chairman of the Lean Enterprise Institute.
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Lean Trucking…
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Lean is simple
My Goal ?
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To see waste…….
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Lean is simple
Ground Rules…
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Lean is simple
What is Lean ?
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Why Lean ?
Customer
More Price
More Profit
More Salary
organization
Organizational Pressure
Supplier
Employees
Price reduction
 On time Delivery
 Good Quality
 Low Price
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Thus the key to profitability is :Cost reduction
key to profitability
Old equation: Cost + Profit = Price
New equation: Price - Cost = Profit
Cost
Profit
Fixed Price
Profit
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Why Lean ?
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Waste
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8 Forms of Waste
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1. WASTED HUMAN TALENT
2. DEFECTS
3. INVENTORY
4. OVERPRODUCTION
5. WAITING TIME
6. MOTION
7. TRANSPORTATION
8. PROCESSING WASTE
8 Forms of Waste
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I’ve made a few
changes to the
process.
Staff
Staff
Staff
Manager
I wish someone
would ask OUR
opinion…!
Staff
Staff
1. Wasted Human Talent
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@*&#!
!
A negative outcome from process failure
Another
defect!!
2. Defects
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Items in greater quantities than can be immediately processed or used.
Did I really
order this
much??
3. Inventory
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Generating more work than is really required
Staff
Hey…are these
multiple orders for the
same thing? @#$&*!!
I didn’t get my
order yet… I’ll
send another
fax.
Pharmacist
4. Over Production
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People waiting for items (patients, supplies, specimens, etc.) to process
5. Waiting
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Unnecessary human movement
Why can’t I get
anything done?
6. Motion
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Unnecessary movement or relocation of items
I have orders to
run some tests.I’ll bring the patient
right over.
Waiting Area
Sigh…..!!
7. Transportation
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Please
approve.
Please
approve.
Please
approve.
Please
approve.
Please
approve.
Please
approve.
8. Over Processing
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I’m the final
approval.
The final
approval?!!
Applying effort to activities that are not required in the process
Please
approve.
+
??
?
8. Over Processing
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Lean House
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Part Needed
At Time Needed
In Amounts Needed
What is Just In Time ?
Produce and convey what customers want, when they
want in exactly the amount they want.
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Lean is simple : Just in Time
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Lean is simple : Tact time
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Calculate Tact time ?
Monthly Req. = 7500 Nos.
No. of Working Days = 25 Nos.
Time : 2-Shifts
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Calculate Tact time ?
Let us assume a factory 200 manned machine across press-shop , paint-
shop, assy., that works for 480 min. a day, 25 days a months. The factory has
machine downtime of 7% and has defect level 15%. Average repair time per
defect is 5 min.
If the total order for this factory is 50000 Nos. The tact time will be……………
Answer :
Time available = 480 * 200 * 25 = 2400000 Min.
The discounted for Machine down Time = 168000 Min.
(Avl. 2400000-168000 = 2232000 min.)
Total discount for repairing = 15% of 50000 Nos. = 7500 * 5Min. = 37500 Min.
Net Time Available : 2232000 – 37500 = 2194500 Min.
Tack Time = 1294500 / 50000 = 43.49 min. per unit.
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Cycle Time ?
The time a workstation (or process) can produce a unit of input is
its cycle time.
Lean is simple : Cycle Time
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A B c D E
2 Min. /Unit 3 Min. /Unit 5 Min. /Unit 1 Min. /Unit 4 Min. /Unit
Workstation Cycle Time
Lean is simple : Cycle Time
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A B c D E
30 unit / hour 20 unit / hour 12 unit /hour 60 unit / hour 15 unit / hour
Workstation Capacities
Lean is simple : Capacity
Workstation Capacities ?
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A B c D E
Workstation Capacities
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Longest Cycle Time , Lowest Capacity
Lean is simple : Capacity
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A B c D E
Process cycle time =
Process capacity =
jit : Process Cycle Time & Capacity
2+3+5+1+4 = 15 min.
60/15 = 4 unit per hour
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A B c D E
Process cycle time = 2+3+5+1+4 = 15 min.
Process capacity = 60/15 = 4 unit per hour
Lead Time =
Lean is simple : Lead Time
Processing time (15) + Waiting time (0) = 15 Min.
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A B c D E
Bottleneck
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EduQsteps
A B c D E
Throughput Rate =
Lean is simple : Throughput Rate
12 unit per hour
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10 08
WIP
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Process cycle time =
Process capacity =
5 min.
60/5 = 12 unit per hour
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Lean is simple : Review
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Lean is simple : DL utilization
DL utilization Process DL utilization
A = 12 / 30 = 40%
B = 12 / 20 = 60%
C = 12 / 12 = 100%
D = 12 / 60 = 20%
E = 12 / 15 = 80%
Lead time / Process cycle time* No. of Operators = PDL
15 / 25 = 60%
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A B C D E
Lean is simple
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Lean is simple : Manpower planning
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A B c D E
3 Min. /Unit 5 Min. /Unit 1 Min. /Unit 4 Min. /Unit2 Min. /Unit
Increasing the no. of operators of a
non-bottleneck workstation will not
increase overall process capacity.
1 Min. /Unit
60 unit / hour
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A B c D E
2 Min. /Unit 3 Min. /Unit 2.5 Min. /Unit 1 Min. /Unit 4 Min. /Unit
Bottleneck
Process capacity = 60/4 = 15 unit per hour
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A B c D E
Balanced Cycle Time ?
12 unit / hour 12 unit /hour 12 unit / hour
Lead Time = 15 Min.
Process cycle time = 5 min.
DLU = 100 %
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Rightsizing the right way
A B C D E A B C D E
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Lean is simple : JIT (Just in time)
Required Manpower
The required or min. no. of manpower in process =
Lead time / Takt Time
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Supplier
Customer
Inventory
JIT :What – When – How Much
Lean is simple : inventory
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Supplier
Customer
Inventory
Having excess inventory / Over Inventory
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Supplier
Customer
Inventory
Delay in supply of material / Goods
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5S Inventory Management
1. Short the supplier.
2. Set in order the suppliers.
3. Clean The Purchase System.
4. Standardize the process.
5. Sustain the Standards.
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Lean is simple : 80/20 Analysis
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Pereto Principle :
Pareto Principle The 80/20 principle originated from Vilfredo Pareto, an
Italian economist, who in the late 1800's studied the distribution of
wealth in various countries. He consistently found that 80% of the wealth
was owned by 20% of the population in these countries. His observation
is popularly known as the "Pareto's Principle" or the "80/20 Rule."
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 Poor Time Management.
1 2 3 4 5 6 7 8 9 10
2
3/4/5/6/7/8
/9/10
Traditional
Approach Customers
Time Spend
80% of the
Revenues
20% of the
Revenues
80/20 Approach
Customers
20% of the
Revenues
80% of the
Revenues
1
Traditionally sales people spend an equal amount of time an
each customer. An 80/20 analysis reveals the customer 1 and
2 provide 80% of the revenues.
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The first step in the process of organizing data is to identify the sources of data. You can
use sources such as customer invoices, purchase orders, accounts payable checks, credit
memos, and processed orders. However, to include an adequate amount of historical data
for analysis purposes, you need enough data to establish a trend. In some cases, data is
available. For example, you may conduct a small study of customer calls or study sales
data from several years. Using inadequate data may distort the analysis.
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After identifying the sources of data, it is important to verify the integrity and
accuracy of that data. This ensures that conclusions are based on reliable and
correct data. When using the reports that are generated from the business unit's
computer, you must review system data with the management team. Discrepancies
must be investigated.
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After ensuring data accuracy, tabulate the data by using the identified sources. For
example, you can tabulate data based on the products and their sales values.
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Data is usually available in the numerical sequence of product or part number, or in
alphabetical order. However, this format cannot be used to identify items that comprise
80% of total value and draw any meaningful conclusions. For example, the data shown
above should be sorted by descending dollar value. Calculating the cumulative dollar
and percentage values of the data also helps identify the 80/20 items.
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Lean is simple
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WHAT IS KANBAN?
 KAN - SIGN
 BAN - BOARD
 KANBAN IS USED AS COMMUNICATION TOOL. .
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Basic Types
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PULL SYSTEM
STORE ASSEMBLY
Card
Card
Lean is simple
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KANBAN
Production Ordering
Kanban
(In-Process Kanban)
Withdrawal Kanban
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Production Ordering Kanban
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Withdrawal Kanban
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Calculation of No. of Kanban Cards in Float
KANBAN = (Demand * Lead Time + Safety Inventory )
--------------------------------------------------------------
Part Per Container
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Lean is simple : Jidoka
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Lean is simple : Standardized work
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Why Standardized work is required ?
Eli Whitney
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Standard Parts
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Standard Parts
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Standard Parts
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Enclosed : Muda Find Out Sheet
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Enclosed : PCS 10
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Enclosed : SWCT 11
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Lean is simple : VSM
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Lean is simple : Value Stream Mapping
Order To Cash
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Order To Cash
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Order To Cash
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The Understand Phase: In this phase, you thoroughly document all the
steps in your current business processes. This phase is necessary to
get a clear picture of your current process flow.
The Simplify Phase: Here, you take a look at the process from the
customers’ point of view, and identify all activities that do not add any direct
value for the customer or to the business. This phase is completed when you
streamline your process so that it’s simpler and more customer-focused.
The act Phase: In this phase, you apply the process changes that you
identified in the Understand and Simplify phases of the USa project.
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Floor Plan
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www.eduqsteps.com
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www.eduqsteps.com
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Lean is simple
“KAIZEN”
(Japanese)
Kai Zen
(Change) (Better)
Make it better
(Improvement)
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Lean is simple
 The water flow will not stop when the tank is
full.
by Banjongsak (Thailand)
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Lean is simple
 Water will stop by itself when the tank is
full.
by Banjongsak (Thailand)
Floating valve
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Lean is simple
 Difficult to take a left turn.
by El-Kashef Osman (Egypt)
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Lean is simple
by El-Kashef Osman (Egypt)
 U-turn zone makes left turns easy.
U-turn zone
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Lean is simple
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Lean is simple
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Lean, Lean Manufacturing, Lean Production, toyota production system, TPS

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Lean, Lean Manufacturing, Lean Production, toyota production system, TPS