Lean Manufacturing Introduction Lean Thinking versus Muda

Learning Objectives Present an overview of lean manufacturing concepts Introduce methods and tools designed to put these concepts to work in a manufacturing environment This course will discuss the basic principles of: Lean Value The technical value stream Flow Pull, and Perfection Compare and contrast lean with the Theory of Constraints and Quick Response Manufacturing

Background and Purpose Value is a key attribute of the technical professional is his/her emphasis on and interest in professional values and goals rather than those of an organization. Lean thinking principles are emerging as a method to improve the flexibility, reliability, and profitability of enterprises worldwide. Lean thinking is being used to reduce setup times, lot sizes, and inventories. Lean is all about removing waste in the enterprise. In time as well as cost. As enterprises have reduced costs and improved quality, the primary competitive measure is the ability to respond to the customer

Required Textbooks Lean Thinking : Banish Waste and Create Wealth in Your Corporation Womack, James P. and Jones, Daniel T. (2003) New York: Simon & Schuster ISBN: Learning to See Version 1.3 Rother, Mike Shook, John Womack, James and Jones, Dan. (1999) Lean Enterprises Inst Inc. ISBN: Cellular Manufacturing: One-Piece Flow for Workteams (Shopfloor Series). Productivity Press; 1st edition (1999) Productivity Development Team ISBN: X

Textbook 1 Lean Thinking : Banish Waste and Create Wealth in Your Corporation Hardcover List Price: $30.00 ISBN:

Textbook 2 Learning to See Version 1.3 Spiral-bound paperback List Price: $50.00 ISBN:

Textbook 3 Cellular Manufacturing: One-Piece Flow for Workteams (Shopfloor Series) Paperback List Price: $25.00 ISBN: X

Muda Muda means waste Any human activity which absorbs resources but creates no value Mistakes which require rectification Production of items no one wants so inventories and remaindered goods pile up Processing steps which arent actually needed Movement of employees and transport of goods from one place to another without any purpose Groups of people in a downstream activity standing around waiting because an upstream activity has not delivered on time Goods and services which dont meet the needs of the customer

Lean Thinking Powerful antidote to muda Provides a way to specify value Line up value-creating actions in the best sequence Conduct these activities without interruption whenever someone requests them Perform them more and more effectively Lean thinking is lean because it provides a way to do more and more with less and less Less human effort Less equipment Less time Less space Coming closer and closer to providing customers with exactly what they want

Lean Thinking Make work more satisfying by providing immediate feedback on efforts to convert muda into value Create new work rather than simply destroying jobs in the name of efficiency Lean thinking steps: 1.Precisely specify value 2.Fully map the value stream for a specific product, and eliminate wasteful steps 3.Make the remaining, value-creating steps flow continuously Require complete rearrangement of your mental furniture… 4.Let the customer Pull the product from you as needed 5.Continuously improve to reach perfection

Step 1 - Specify Value The critical starting point for lean thinking Value can only be defined by the ultimate customer Only meaningful when expressed in terms of a specific product (a good or a service, and often both) which meets the customers needs at a specific price at a specific time. Value is created by the producer From the customers standpoint, this is why the producers exist Lean thinking must start with an attempt to precisely define value in terms of specific products with specific capabilities offered at specific prices through a dialog with specific customers Providing the wrong good or service the right way is muda

Step 2 - Identify the Value Stream The value stream is the set of all specific actions required to bring a specific product (goods, services, or both) Through the three critical management tasks of any business: Problem solving task – from concept through detailed design and engineering to production launch Information management task – from order taking through detailed scheduling to delivery Physical transformation task – from raw materials to a finished product in the hands of the customer Identifying the entire value stream for each product (or product family) is the next step in lean thinking

Step 2 - Identify the Value Stream (cont.) Value stream analysis will almost always show the three types of actions are occurring along the value stream: 1.Unambiguously create value 2.Create no value but necessary with current technologies and assets (type One muda) 3.Create no value and could be removed (type Two muda) Lean enterprise – a continuing conference of all concerned parties to create a channel for the entire value stream, removing all the muda

Flow Make the remaining, value-creating steps of the process flow Redefine the work of functions, departments, and firms Create single piece flow instead of batch processing Ensure positive contribution to value creation Speak to the real needs of employees at every point along the stream so it is actually in their interest to make value flow

Pull Let the customer pull the product from you as needed rather than pushing products, often unwanted, onto the customer The demands of the customer become more stable when they know then can get what they want right away Pull system is more responsive to changes then push systems

Perfection There is no end to the process of reducing effort, time, space, cost, and mistakes while offering a product which is ever more nearly what the customer wants

SPECIFY VALUE IDENTIFY THE VALUE STREAM FLOW CONVERT PUSH TO PULL Lean Manufacturing Cycle Step 5 – CONTINUOUSLY IMPROVE Getting value to flow faster always exposes hidden muda in the value stream. The harder you pull, the more the impediments to flow are revealed so they can be removed.

Homework Assignment Lean Thinking Chapter 1 Value Pages Question: 1. What do customers consider as value? Give examples 2. Explain why we need to define what value is before we start any performance improvement.

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