Five Steps to Lean 1. 2. 3. Define

Five Steps to Lean 1. 2. 3. Define

Five Steps to Lean 1. 2. 3. Define end-customer value for a specific product specific capabilities specific price specific time Identify entire value stream for each product and eliminate waste product realization

order fulfillment production Make the remaining value steps flow no waiting, downtime, scrap within or between steps continuous flow instead of batch-and-queue Five Steps to Lean (continued) 4. Design and provide what the customer wants only when the customer wants it let the customer pull the product from the value stream

5. Pursue perfection by refining definition of value getting value to flow faster Old System for Making Stretch Wrappers Storage of raw materials Storage of finished goods

Crating Sawing Machining Welding Storage of parts in process Storage of Painted Frames Frame Painting Subassembly Storage of incoming components

Touch-up Final Assembly Evils of Batch-and-Queue Increases work-in-process inventory Hides inefficiencies, lost opportunities Lengthens replenishment cycle Creates finished good inventory Slows customer response time Risks obsolete products New Continuous Flow System Incoming materials Frame painting Ship finished

goods One Cells Continuous Flow Machining Welding Final assembly work Testing and shipping Subassembly of roll carriage Subassembly of control module

Frame Painting Sawing Old System for Processing Orders Sales staff Purchasing Regional Sales Coordinator Quoting Engineering. Applications Order entry/scheduling Production

MRP master work schedule orders Design and BOM Credit checking Production expediters New Continuous Flow System for Processing Orders Sales Quick

response team for price quotations Order entry/ Credit checking Scheduling by product Eng. app. by product Purchasing by product Mfg. Old and New Systems for

Developing New Products Product definition Marketing Ind. Eng. Purchasing Engineering Specs Team Leader Mech. Eng. Elec. Eng Mech. Eng. Mfg. Eng. Ind. Eng.

Design in concurrent Development Elec. Eng. Launch Mfg. Eng. Outcomes Number of shipped machines doubled Produce a machine in half the space Number of defects fell from 8 per machine to .8 Better understanding of costs Assigned freed-up workers to Kaikaku team MRP used only to provide suppliers with long-term production forecasts Kanban system used to order parts S-Series was developed in time of predecessor, of engineering hours

Lean Production Principles Henderson and Larco Lean Production Workplace safety, order, cleanliness JIT Six Sigma Empowered Production Quality Teams Visual

Management Pursuit of Perfection The Toyota 5S System Sort - Separate out all items that are unnecessary and eliminate them complete from the workplace. Straighten - Arrange all essential items so that that the are clearly marked and easily accessed, e.g., kanban squares. Scrub Scrub all machines and the work environment to maintain immaculate cleanliness Systematize Make cleaning and organizing a routine practice as part of the work day Sustain Sustain commitment to the previous four steps and provide a constantly improving process JIT Production JIT production means build to customer demand Single piece flow means there is a maximum of one piece between each operation

Value-added activities should move along without interruption, and non-value-added activities eliminated (aided by process-mapping) Takt time is the drum beat of consumption All tasks should take about the same time. Rebalance them if demand fluctuates or workers are absent. Multi-skilled workers facilitate this. Kanban links customer demand to final assembly, and then to internal and external suppliers (synchronization) Changeover time should equal one takt time for final assembly operations Takt Time If customers order 100 products per day, what is the takt time? If customers order 80 products per day, what is takt time? If customers order 120 products per 8 hour shift, what is takt time? What if some workers are idle part of the time? What if some workers build inventory in front of their work stations? Visual Management Scoreboards, e.g., output compared to goals, sales and

profits to date, quality, inventory turns, training schedules Kanban cards, kanban squares, shadow boards Flow through racks Limited number of rework bays Color-coded lines, parts Andon lights

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