Lean Production

by

Duke Okes

2005 APLOMET

What is it?
The relentless identification and
elimination of waste (non-value
added activities and resources)
that get in the way of providing
customers exactly what they
need when they need it.

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Types of Waste
Overproduction
Waiting
Transportation
Over-processing
Inventory
Movement
Defects
Unused brainpower
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Overproduction
Making more than is needed to meet current
shipment requirements
Uses labor, materials, and process time that could
be used for orders needed now
Creates inventory, which creates lots of other
problems (see slide on inventory)
Orders may not be received for it
The worst waste of all, since it creates all others!
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Waiting
People standing around waiting for:

materials
tooling
information
maintenance support

Incur cost of labor that could be invested in

something productive!

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Transportation
Transporting something doesnt add value
Transportation requires people & equipment
Material frequently gets damaged during
transportation
Transportation is often to get it out of the way, or
to the next process
Arrange work so that minimum transportation
will be required
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Over-processing
Doing more than is necessary for the
effective functioning of the product
e.g., surface finish grinding/polishing/buffing,
painting, plating

Often done because of unbalanced work

design, or lack of understanding of
product requirements

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Inventory
Takes up space that could be used for other
processing
Requires people, equipment, etc. to count,
transport, store, and maintain it
Often becomes damaged or obsolete before it is
needed
Hides problems that should be corrected, or
improvements that could be made

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Impact of One Piece Flow

Op #1

Op #2

Op #3

10 min

10 min

10 min

Cycle Time
WIP

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200 Piece Batch

One-Piece Flow

100 hours

30 min

600

Movement
Unnecessary physical actions by workers
Takes time, energy, and cost that could be used
productively
Movements are often awkward and cause
discomfort or detract from other activities
Design processes to integrate worker and machine

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Defects
Product does not meet requirements
Wastes time of people and machinery, plus raw
materials, that could have been used to make
good product
Causes the organization to schedule more than
was ordered by the customer, and thereby build
inventory

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Unused Brainpower
People are told to do, and not asked to think
Problems are overlooked and opportunities missed
People loose their motivation at work
Management has to spend time dealing with dayto-day problems rather than longer-term issues

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Tools for Identifying Waste

Spaghetti diagram
Work flow diagram
Work combination chart
Work balance sheet

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What Lean Isnt

Is not a workforce reduction program
Is not a work harder program
Is not a description of staffing levels
Is not a Flavor of the Month

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Comparison to Quality
Improvement
Criteria

LM

Performance
Measures

Floor space, inventory/turns, labor

efficiency, cycle time; waste

Tools

Spaghetti diagrams, work combination

charts, work balance charts, kanban,
SMED, 5S, visual management, standard
operations; physical items
Henry Ford, Taiichi Ohno, Richard
Schonberger, Shigeo Shingo

Gurus

Ultimate Target

1-piece flow, zero inventory

How Organized

Externally initiated (sensei), learning

as doing, internal expert facilitator
from engineering or operations
Improvement teams
Spend $0, do it fast, operations owns
the change process

How Deployed
Core Philosophy
of Implementation

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QM
Variation, customer satisfaction, cost of
quality, on-time delivery; variation
around target
Seven basic QC tools, seven
management tools, SPC, DoE, surveys;
data, concepts
W. Edwards Deming, Joseph Juran,
Armand Feigenbaum, Kaoru Ishikawa,
Masaaki Imai
Zero variation around target, 100%
customer satisfaction and retention
Vision/mission/KPIs by senior
management, massive training, team
leaders or quality facilitators
Improvement teams
Spend whatever is necessary, do it
slow, quality personnel as advisors

Example Results
Performance Measure

Before

Manufacturing cycle time 85 days

After
2 days

Floor space required

2062 sq. ft 431 sq. ft

Output per hour

35 pieces 156 pieces

Work in Process

875 pieces 84 pieces

Changeover Time

5 hours

< 1 hour

Source: Industry Week, October 20, 1997

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Shigeo Shingo
Similarly, at Toyota, we search for the waste that
usually escapes notice because it has become
accepted as a natural part of everyday work.
Shingo in
A Study of the Toyota Production System

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Examples from
2001 Shingo Prize Winners
100% on-time delivery
89% reduction in order cycle time
150% gain in productivity
1 PPM to the customer
29% increase in sales/employee
RONA increased from 19% to 33%

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Lean Tools/Techniques
Housekeeping (5S)
Total Productive Maintenance
Quick Changeover (SMED)
Cellular Production
Multi-Skill/Process Workers
Standard Operations
Zero QC
Takt Time/Production
Smoothing

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Visual Management
Lot Size Reduction (OnePiece Flow)
Poka-Yoke
Autonomation
Value Stream Mapping
Kaizen Blitz
Kanban
JIT

Sample Value Stream Map

Customer

1000/day

800/day

2x/week

2x/day

Supplier

Machine

8 days

M-2
C/T - 10s
C/O - 90m
D/T - 18%
Q - 7%

4 days

Subassy

10 days
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M -4
C/T - 30s
C/O - 30m
D/T - 14%
Q - 11%

Painting

Welding

6 days

M-1
C/T - 30s
C/O - 5m
D/T - 3%
Q - 16%

M-2
C/T - 10s
C/O - 30m
D/T - 10%
Q - 6%

3 days

Shipping

4 days

Note: Value adding time = 70 seconds,

versus 23 days of inventory!

The Process Line

60 ft

10 ft

Bend

24 ft

WIP

30 ft

WIP

WIP WIP
WIP

5 ft

5 ft

7 ft

FG 450 ft

RM
360 ft

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3 ft

Assemble
& Pack

Cut

Press

Wrap

First Analysis of Man/Machine

OPER#
1

ACTIVITY
Pull material into M/C
Lock onto fixture
Lubricate slide
Start M/C
Assist slide
Cut off excess
Cut into parts
Help remove from M/C
TOTAL
Assist cut into parts
Remove from M/C
Place on table
New material on M/C
Pull material onto M/C
TOTAL

TIME

195 sec
8
9
15
15
47 sec

(Utilization: #1- 100%, #2 - 24%)

Cycle Time ~ 3 min
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10 20 30

TIME RELATIONSHIP

40 50

60 70 80 90 100 110 120 130 140 150 160 170 180

Final Analysis of Man/Machine

OPER#

ACTIVITY

Pull material into M/C

Lock onto fixture
Start M/C
Cut into parts
Place on table
New material on M/C
Cut off excess
Push fixture down
Remove from M/C
Pull fixture up
TOTAL
Auto cycle

M/C

(Utilization: #1- 73%)

Cycle Time
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TIME

26
40
20
30

20
136
120

~ 3 min

10 20 30

TIME RELATIONSHIP

40 50

60 70 80 90 100 110 120 130 140 150 160 170 180

Findings & Results

There are no standards to guide this process!
Organization has no knowledge of real costs.

Before: Crew of 2 operating at 62% efficiency

After: Crew of 1 operating at 73% efficiency
Change: Crew size down 50%, efficiency increased 135%

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The Process & Situation

6 min

4 min

4 min

3 min

Were getting 2.5 parts/man-hour; we need

3.0 parts/man-hour.
Total time to produce one (1) part = 6+3+4+3 = 16 min
Total man time to produce one part = 6 x 4 = 24 min
Efficiency = 67%
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First Improvement
6 min

3 min

4 min

3 min

Total time to produce one (1) part = 6+3+4+3 = 16 min

Total man-time to produce one part = 6 x 3 = 18 min
Productivity = 80 parts / 3 people = 3.33/man-hour (33% gain)
Efficiency = 89%
but were still working overtime!

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Realization of Takt Time

6 min

3 min

4 min

3 min

Productivity = # Parts
Man Hours

e.g., 2.5/man hr

Capacity = Time available

6 min

e.g., 80/shift

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Second Improvement

6 min

3 min

4 min

3 min

Supports 2 lines & can

operate 24 hours/day

Parts fall off the line

Capacity = 240/day,
allocated per line/product

Efficiency = 10/12 = 83%

Capacity = 120/shift

Requires no additional
support personnel
Material transport
simplified

Plant 1
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Plant 2

Linkage of LM Techniques

Standard
Operations

Zero QC
Setup
Reduction

Cells

5S

TPM

Visual
Workplace

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Multiskill

One Piece
Flow

Kanban

Production
Leveling

Leveraging Lean for CI:

A Chain Reaction
Use the tools (5-S, SMED, TPM, Poka Yoke)

l
a
c
ti
c
Ta

Improved equipment availability and product quality

Reduced lot sizes

ic
g
e
t
a
Str

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Shorter lead time, lower inventory

Higher profits, higher customer satisfaction

Why Dont More Companies

Do Lean?
US mindset of:

sales promotions
end of month count
squeezing suppliers
short term gains for top management bonus

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Integration of Lean and Six Sigma

Both are project-by-project approaches to
improvement, but focused on different
measures:
lean = time and space
six sigma =defects and variation

Both require a change in mindset of they

are to become imbedded

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How does lean apply to

everyday life?
Finding tools in your garage
Running out of food, toothpaste, etc.

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To Learn More
Local companies:
Merillat, Atkins VA - 2003 Shingo Prize winner
Pals Sudden Service - 2002 Baldrige and TQA winner

Books by:
Taichi Ohno
Shigeo Shingo
Jeffrey Liker

Websites:
www.lean.org
www.superfactory.com
www.gemba.com
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Speaker Info
Duke Okes
423-323-7576
dokes@earthlink.net
www.aplomet.com

2005 APLOMET