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Going Lean
How to Go Green?
How to Go Lean?
Why?
90,000 Watts
100 HP
76,000 Watts
Repair v. Buy
Break even analyses must be based on
the increased cost of purchasing a new,
more energy efficient equipment versus
the energy consumption reduction.
The cost energy today ranges from 10-13
cents per kilowatt-hour.
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Lean Definition
A philosophy of production that
emphasizes the minimization of the
amount of all the resources
(including time) used in the various
activities of the enterprise.
- APICS Dictionary, 10th ed.
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Lean Enterprise
An enterprise with a focus on waste
elimination and the customers needs
in all parts of its operations,
manufacturing and administration.
Emphasis is given to lean structures
and processes, flexibility of response
and methods and techniques to
continually seize new opportunities as
they arise.
- APICS Lean SIG
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Early 1900s
Ford Motor Company was a pioneer
Assembly line production
High volume production
Limited number of products
Significant cost reductions
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Today
More than 96% of all U.S. companies have less than 250
employees
Global competition / low cost labor
Demands by customers:
Higher quality
Innovation
Mass customization
Flexibility
Lower Costs
Limited resources
Source: U.S. Bureau of Census, 2004
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What is Lean?
It is NOT:
Collection of techniques or a methodology
Reduced staffing or low inventories
It IS:
A philosophy of manufacturing
Totally different way of thinking
A different value system
Seeks to eliminate waste (non-value added activities to the
customer)
Emphasis on flow manufacturing
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What is Lean?
Lean Production
Total Quality Management (TQM)
Six Sigma
Cellular Manufacturing
Business Process Improvement (BPI)
Just in Time
Theory of Constraints
Zero Defects
SPC
TQC
Kanban
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Lean Characteristics
Focus is on the improvement of resource
utilization:
Equipment setup time reduced
Scheduled machine maintenance
Orderly, clean workplace
Pull production being used
JIT inventory control
Factory layout in work cell arrangement by
products
Active error elimination
Improved quality, etc.
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Overproduction
Waiting
Excessive transportation
Inappropriate processing (the hidden
factory)
Unnecessary inventories
Unnecessary motion
Defects
- Taiichi Ohno
Toyota Production System
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2. Waiting
Operators waiting
Operators slower than production line
3. Excessive Transportation
Widely spaced equipment waiting
Forklifts not available when needed
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5. Inventory
Large safety stocks
Variable procurement lead times
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7. Defects
Low material yields
Excessive process variability
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Correcting Wastes
1. Overproduction
Eliminate by reducing setup times.
Synchronizing quantities and timing
between processes.
Make only what is needed now.
2. Waiting
Eliminate through synchronizing work flow.
Balancing uneven loads with flexible
workers and equipment.
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4. Inappropriate Processing
Why should this item be made?
Why is each process necessary?
Are any processes being performed that
are not part of the work flow?
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6. Motion
Study motion for economy and consistency.
Economy improves productivity, and consistency
improves quality.
Improve the motions, then mechanize or automate.
Otherwise, there is a danger of automating waste.
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Leadership Function
Initiate needed change by
identifying a vision
Aligning employees to that vision
Motivating to achieve that vision
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Leadership
Lean Change Infrastructure
Champion
CEO
Plant Management/President
Vice President
Vision &
Lean
Strategy
Value
No Waste
Flow
Pull
Standard Work
JIT
Project &
Training Plans
____________________
____________________
____________________
____________________
____________________
____________________
____________________
____________________
___________
Sponsors:
Manufacturing
Engineering
Quality
Lean Office
Facilitator
Team
Team
Facilitator
Team
Team
Facilitator
Team
Team
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Transparent
Workplace
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Transparent Workplace
Define Processes
Value-Added Activities
A Value-Added Step
Value versus Non-Value-Added
Value-Stream Mapping
Typical Process Flow Analysis
Visual Order The Five Ss
Visual Control
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Transparent Workplace
Processes Definition
Grind
Turn
Mill
Drill
Type
Contract
Obtain
Signature
Type
Envelope
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Process
Map
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Weekly
Orders
Supplier
Weekly
Orders
Customer
Weekly Schedule
Daily
Daily
Stamping
Weld
I
1 Day
1 Day
50 sec
Assembly
I
2 Days
40 sec
Paint
I
2 Days
90 sec
Shipping
I
3 Days
120 sec
Staging
1 Day
60 sec
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Transparent Workplace
Value-Stream
Mapping
Process
Map customer requirements (orders)
Map order information flows
Map physical product/material flows
Map plant/office information flows
Add a process time line
Summarize current state
Ask questions at each step to
determine waste or non-value-added
areas
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Transparent Workplace
Summarize
Current
State
The % of value-creating time
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Transparent Workplace
A Value-Added Step
A process that physically changes the
work passing through it that makes it
more valuable to the customer
A step requested by the customer - they
are willing to pay for it
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Transparent Workplace
Value versus Non-Value-Added
Value-Added Activities
Non-Value-Added Activities
Entering order
Ordering materials, supplies
Preparing drawings
Assembling
Shipping to customers
Processing customer deposits
Examining patients
Filing insurance claims
Dispensing event tickets
Fueling airplane
Waiting/sorting
Moving
Kitting/staging
Counting
Inspecting
Checking
Recording
Obtaining approvals
Testing
Reviewing
Copying
Filing
Revising/reworking
Tracking work
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Traditional
Accounting
Lean
Production Inventory
Control
Work Order
Production tracking
Inventory Cycle Count
Kanban
Visual signals
Five S
Procurement
Key Suppliers
Master POs
Supplier Certification
Quality of Products
Detailed inspection
Rework or scrap
Standardized work
Single-piece flow
Standard cost
Variance Reports
Analysis of Variance
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Transparent Workplace
Value-Stream
Mapping
(VSM)
Observe & record the flows of orders,
materials, goods and information for a
product family
Product family: A group of product variants
passing through similar processing steps that
use common equipment
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Transparent Workplace
Visual Order The Five Ss
To eliminate waste, you must first find it
Visual order makes waste evident and is a
good starting point for managing
resources
Toyota Production - Five Ss as the
method for exposing waste & poor
utilization of resources
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Transparent Workplace
Visual Order The Five Ss
Sort
Set in order
Shine
Standardize
Sustain
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Transparent Workplace
Lockheed & Boeings Six Ss
SORT
SUSTAIN
6S
STRAIGHTEN
SHINE
SAFETY
STANDARDIZE
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Transparent Workplace
The Six Ss
Sort: Classify tools, parts, instructions into
necessary & unnecessary
Set in Order: Make it visible & easy to use; 3
Es = easy to see, easy to get & easy to return
Shine: Conduct cleanup to identify
abnormalities
Standardize: Put a system in place to readily
identify abnormal conditions
Safety: Identify & eliminate dangerous &
hazardous conditions
Sustain: Make a habit of properly maintaining
& following standard practices
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Transparent Workplace
Visual Control
Awareness of whats happening
Manpower: Skill levels, performance, continuous
training
Machines: Develop Maintenance schedules and use
them
Materials: Demand Signals indicating shortages;
shadow boards for location of tools
Methods: Standard Worksheets and Operating
Procedures
Measurements: Performance trends
Display schedule
Quality targets
Reductions in setup & lead times
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Lean Principles
Value
Value
Stream
Flow
Pull
Perfection
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Pull
No one upstream should produce any
good or service until the customer
downstream asks for it
Kanban
Lean Principles
Value
Value
Stream
Flow
Pull
Perfection
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Push
Value
Stream
Flow
Pull
Perfection
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Pull
Design
Schedule based on actual demand signals
Produce exactly what the customer wants
Flow takes place throughout the supply
chain, not just inside your production facility
Lean Principles
Value
Value
Stream
Flow
Pull
Perfection
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Pull
Benefits
High throughput
Excellent protection against stock-outs
Higher flexibility
Less congestion
Shorter lead times
Higher customer service
Lean Principles
Value
Value
Stream
Flow
Pull
Perfection
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Perfection
Begins with visualizing the perfect
process
Continuous process to remove waste by
eliminating effort, time, space and defects
Lean Principles
Value
Value
Stream
Flow
Pull
Perfection
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