CONTINUOUS

Parts Inspection Department

IMPROVEMENT IN
PERFORMANCES
THROUGH ELIMINATION
OF WASTE IN AN
ORGANIZATION
 SCHEDULE
RECITATION OF HOLY QURAN 9:15 9:20
WELCOME NOTE (Sr. Mgr PID) 9:20 9:35
INTRODUCTON OF VENDORS 9:35 9:50
TEA BREAK 9:50 10:00
TRAINING (SESSION 1) 10:00 1:00
Purpose
Reason for Practices Continuous Improvement
Special Causes & common Causes
Value Added & Non-Value Added
100% Inspection exercises
Lean
Lean Manufacturing
5S Exercises
LUNCH 1:00 2:00
TRAINING (SESSION 2) 2:00 4:00
Fundamentals of Lean Manufacturing
Exercise
Waste
7 Types Of Waste
Benefits of Lean Manufacturing
How People benefit from Lean
How customer benefit from Lean
Question & Answer
Ending Note
What is Industry?

Input Output

Man-power
Machines
Services
Methods
Products
Materials
Measurement
Mother Nature
(6M)
 Reason for Practice Continuous Improvement

Organization Performance We have to diagnose the problem in

the organization
Why and where the gap is occurring

Continuous Target
Improvement Level
Gap

Current Level

Present Future

Time scale
Special Causes & Common Causes
Special Causes

Variations are those that are assignable and can be acted

upon by the Management.

Examples:
Operator Errors
Broken tools
Machine problem
Poor adjustment of equipments
Special Causes & Common Causes

Common Causes
Variations which are inherent in the system itself and are traditionally
not a focus for improvement in system.

Example:
Inappropriate procedures
Poor design
Poor maintenance of machines
Lack of clearly defined
standard operating procedures
Poor working conditions, e.g.
lighting, noise, dirt, temperature,
ventilation
Substandard raw materials
Special Causes & Common Causes

Experience shows that 94% of manufacturing

errors or problems belong to the systems and
only 6% are special.
 IDENTIFYING THE PARAMETERS TO BE
BENCHMARKED

oProductivity

Manufacturing
Energy use
Packaging cost
Process waste o Others
Maintenance hour
WIP Inventory Number of reportable accidents
Employee turnover
oQuality Absenteeism
% Overtime
% Scrap of raw material
% Rework
% First pass yield
Customer return rate
Incomplete delivery
WIP due to quality failure
VALUE-ADDED/NON VALUE ADDED

o Value-Added
ANY ACTIVITY THAT PHYSICALLY CHANGES THE MATERIAL BEING WORKED ON (no
rework/no repair).
Machining
Drilling
Assembly
Painting
o Non Value Added
ANY ACTIVITY THAT TAKES TIME, MATERIAL, OR SPACE BUT DOES NOT
PHYSICALLY CHANGE THE MATERIAL.

Sorting
Counting
Checking
VALUE-ADDED VS NON VALUE ADDED STEPS

Value Added: 5% Value Added

Customers are willing to pay for it.
It physically changes the products.
Its done right the first time.

Non Value Added

Is not essential to product output

Includes
Defects, Errors
Preparation/Setup
Non - Value Over Production, Process inventory
Added: 95% Transportation, Motion, Delays
VALUE-ADDED VS NON VALUE ADDED STEPS

Temporary
Move Move
Storage

Receive
Material Move Wait Wait Wait Move

Add Add Add Add

Value Value Value Value Inspect

Non value added operation typically account

for
95% + of Manufacturing Lead time
VALUE-ADDED VS NON VALUE
ADDED STEPS

On broader scale
Operations can be categorized in three types:

1. Operation that increases value added.

2. Operation that does not increases value
added
3. Useless operation
VALUE-ADDED VS NON VALUE ADDED STEPS

1. Operation that increases value

added

This type of operation is really required

for Raw material into Finished Product.

e.g. Forming/ Punching/ Molding

VALUE-ADDED VS NON VALUE
ADDED STEPS

2. Operation that does not increase

value added
This type of operation is inevitable under the
present situation but as an operation it does
not create any value. (should be eliminated/
reduced)

e.g. De-burring / rectification

VALUE-ADDED VS NON VALUE
ADDED STEPS

3. Useless Operation
This type of operation is completely
unnecessary. This only increases cost.
(Should be eliminated)

e.g. Re-packing / rework

100% INSPECTION
EXERCISE
PLEASE FIND AND COUNT ALL THE Ns IN THIS
LETTER

John Foster
Quality Engineer 10/11/99

Finished Files Are The Result Of Years Of Scientific

Study Combined Within The Experience Of Years
Which Is An Important Files For foster
Hence it is necessary
to
LOOK AND SEE
in a manner as in
The attitude of the
Questioning
 How we can improve?
Wait Time
(Non-value
added)

Work Time
Same work
(Value added)
completed
Cost in less time

Cost Productivity
Customer
Defects
Satisfaction
Lead time Profit
Inventory Customer Response
Space Capacity
Waste Quality
Cash flow
On time Delivery

Cycle Time
 Focus on Waste

Typical
company
VA NVA

Minor
Traditional Improvement
Process VA NVA
Improvements

LEAN Major
Enterprise VA NVA Improvement
Improvements

The value added of the process are obvious, so companies mistakenly focus
on trying to make them go faster. The waste is not identified, so it is not
accountable.
LEAN focus on eliminating waste.
 COMPARISON LEAD TIME

Business as Usual

Customer Order Waste Product

shipment

Lean Manufacturing
Concept

Customer Order Product

shipment
Waste

Shorter cycle time

What is LEAN ?

LEAN relates to those best processes and practices

which optimize resources and yield the best
products, in the fastest manner and at lower cost.

An umbrella for total quality management.

Continuous improvement
Zero Defects
Doing things right the first time, and doing it right
every time.
2. Zero-Defect Approach

Current state Who are producing defects the

Many defects result in the increased
number of inspectors.
1. Change of the
way of thinking
2. 5S and 3Tei
activities
3. Systematization
Zero-defect shop floor
most?
Three zero-defect principles (Just-
in-time, early-stage inspection, and
one-by-one production)
Red-tag indication
Paint color indication
3Tei rule
Placement in operational sequence
Daily cleaning
Cleaning check
In-line type equipment
Multifunctional workers
Pull system of production
Self-inspection
Early-stage inspection
Visual management
Kanban system
ANDON (alarm lamp) system
LEAN MANUFACTURING

Lean Manufacturing is a strategy for achieving

significant continuous improvement in
performance through the elimination of all
waste of time and resources in the
total business process.
Key Process Elements
Lean Manufacturing Goals:
(1) provide the best quality product,
(2) in the shortest time period,
(3) with the best total cost to the customer.

Key Elements:
1. Stability: Stable manufacturing processes and 100% quality.
2. Jidoka: Building quality into the production processes.
3. Continuous Flow: Produce one-by-one as efficiently as
possible.
4. Takt Time/Standardized Work/Kaizen: Responding to ever-
changing demand while eliminating waste.
5. Pull System: System designed to produce only sold products.
6. Heijunka: Level production according to volume and variety.
 The Lean Production System

Just-In-Time

Six Sigma Production Material Equipment Workplace

Quality Control Flow Mgt. Mgt.

Jidoka Pull System Kanban Quick Standard Work

Poka-Yoke Load Leveling Changeover Visual Controls
FMEA One-Piece Flow TPM
SPC Pacemaker Loop
Continuous Flow

5S
 5S Workplace Scan
5S Scan Goal Eliminate or Correct
SeiriSort Keep only what you Unneeded equipment, tools, furniture; unneeded
5S Workplace Scan
(House keeping) need items on walls, bulletins; items blocking aisles
or stacked in corners; unneeded inventory,
supplies, parts; safety hazards

SeitonSet in order A place for Items not in their correct places; correct places
(Workplace everything and not obvious; aisles, workstations, & equipment
organization) everything in its locations not indicated; items not put away
place immediately after use

Floors, walls, stairs, equipment, & surfaces not

Seisou-Shine
Cleaning, and clean; cleaning materials not easily accessible;
(Cleaning)
looking for ways to lines, labels, signs broken or unclean; other
keep clean and cleaning problems
organized
 5S Workplace Scan
5S Scan Goal Eliminate or Correct
Seiketsu-standardize Necessary information not visible; standards not
(Maintain cleanliness Maintaining and known; checklists missing; quantities and limits
& order) monitoring the first not easily recognizable; items cant be located
three categories within 30 seconds

Shitsuke-Sustain Number of workers without 5S training; number

(Discipline) of daily 5S inspections not performed; number
Sticking to the rules of personal items not stored; number of times
job aids not available or up-to-date

6th S Eliminate slip, fall, Eliminate hazardous conditions and ensure

Safety & Ergonomics unguarded machinery safety,
and unsafe items Effective use of PPE. Strategy for work place
ergonomics (lifting limits, stress areas)
EXERCISE 5s
Why Should We Use
Lean Manufacturing?
Manufacturing Evolution

1900 - 1970
Mass manufacturing
Focus on cost reduction, efficiency and scale

1970 - 1980
TQM
Quality and continuous improvement through product design and process control

1980 - 1990
Streamlined production
Focus on lean manufacturing

1990 Today
Supply chain management
Six Sigma
Lean Mfg. Comparison

Traditional Lean

Production Based on forecast Based on orders

Based on function /
Layout Based on product flow
department

Batch size Large Small

Processing Batch & queue Continuous flow

Quality Lot sampling Assured during processing

25 ESSENTIAL LEAN TOOLS
Following is the 25 essential lean tools . Each tool is confined into a simple description
of what it is and how it helps
 Fundamental of Lean Manufacturing

o Organization must envision that the business composed of three areas :

Technology Management
People Management
System Management

o These work together in the manufacturing and business management

process to achieve three ultimate goals,

Short Manufacturing Cycles

Total Quality
Continuous Improvement
 People
Total Employee
Involvement
Control through visibility
House Keeping
Total Quality focus
System Technology
Level Load & Structured Flow
Balanced Flow Manufacturing
Preventive Small Lot Production
Maintenance Setup Reduction
Pull system Fitness for Use

Lean
Manufacturin
g
 Technology Management

Technology Management objective is to establish a responsive

production environment to shortening the timeline for customer.

oStructured Flow Manufacturing

Arranging and defining manufacturing resources.
Product flow most efficiently through manufacturing process.
Machines are aligned to conform to the manufacturing process so that
transportation and movement is reduced to a minimum level.

oSmall Lot Production

Decreasing lot sizes to the smallest quantity practically possible.
Ideally a lot size of one, or at very least, equal to the customers order.
Possible by using structured low and by reducing setup time.
 Technology Management

oSetup Reduction
Reduce the amount of time utilized to prepare machines or production lines
for new work.

SMED (Single Minute Exchange of Die)

SSED (Single Second Exchange of Die)

Short setup provides greater production flexibility, less inventory and

more capacity.

oFitness For Use

Passing the Baton Correctly
Ensure that the products received by the customer meets the specifications.
Customer can be the buyer or the person at the next manufacturing operation.
 People Management

People Management objective is a capability for rapid improvement. This

requires creating an environment where all levels are responsible and
authorized to suggest improvement and implement them.

o Total Employee Involvement

All the people all valuable resources who can provide solutions
for improving performances.
SGIA (Small Group Improvement Activities) for improvement and their
implementation.

o Control Through Visibility

Structuring the operations to control the process through simple visualization.
Examples include Progress chart and flashing Lights
Problem can be identified easily to control the non-conformities.
Used for communicating goals, attacking waste and to highlight problems or
process out of control.
 People Management

oHouse Keeping focus

Physical organization of the work space.
Simplification, cleanliness, discipline
Eliminate potential confusion, promote a safer environment.
Reduce waste of time, motion and resources.
A place for everything and everything in its place.

oTotal Quality Focus

Conformance to the standards.
The quality of a product indicates the quality of the process.
Variations are not accepted in the manufacturing.
 System Management

System Management objective is to carefully apply the limited resources of the

business: equipment, material, people, money and time. Organizations have to
be more cooperative in order to maximize the efficient use of resources.

o Level Load And balanced Flow

Effective utilization of manufacturing resources.
Level Load is scheduling products to be manufactured in equal quantities
During a given product of time.
Balanced flow for continuous flow of products through the manufacturing
processes.

o Supplier Partnership
Focus on reducing costs for everyone through shared quality goals.
Frequent deliveries, long-term relationship and a total cost perspective.
 System Management

o Pull System
Scheduling method whereby materials are pulled only when they are needed.
Keeping time of producing parts as close as possible to the time when
parts are used.
Rather than making parts when capacity is available and pushing them
through the process.

o Preventive Maintenance
Reduce machine downtime due to equipment failure.
Maintain manufacturing equipment's at high level of operating performance.
Plays a major role in structured flow manufacturing.
Essential for total quality.
Goal to eliminate the equipment as a source of process defects.
HOW TO DEVELOP LEAN MANUFACTURING MIND-SET

Problems are Good News

HOW TO DEVELOP LEAN MANUFACTURING MIND-SET

Everyone must posses and should practice.

Watchfulness, Assertiveness, Commitment must be applied in every

Area of the Company.

Search out and eliminate all waste of time and resources from the
processes.

Eliminating of waste means Eliminating all activities that do not add

value to the processes.
 WASTE

Definition
A tool set which promotes a structured approach to the elimination of
wasteful elements within the Manufacturing and Office environment.

Men Machines Material

Motion Waiting Overproduction Processing Time Defects Inventory Transportation

Time

Incorrect Waiting Large batches Air cutting Delays for Raw material Unnecessary
Layout Men/Machines Ignoring Over machining rectification storage movements
Off Line Long setup & customer Feed and speed Rework Blockage Extra Handling
resources Load times demands Customer High WIP Part movement
Walking, Lifting Waiting for Wrong Quantities complains bottleneck
Putting down parts

Waste does not add value

 Value Addition( 5%)

Over Production

Waste of correction Variations

Waste of
Motion Complexity

Lack of
Waste of Motion employee
Involvement
Over processing waste

Transportation waste Waste Waiting

 Types of Waste
1. Overproduction
2. Waste of correction
3. Waste of Inventory
4. Waste of Motion
5. Over processing waste
6. Waste of Transport
7. Waste of Waiting
1. Overproduction
Overproduction means Producing excess quantity
which is not required by the customer or from the
next process.
1. Overproduction

Operation 1 Operation 2

Supplied input = Required input =

12/ hour 10/ hour
1. Overproduction

Operation 1 Operation 2

Supplied input = Required input =

12/ hour 10/ hour

After 1 hour
1. Overproduction

Operation 1 Operation 2

Supplied input = Required input =

12/ hour 10/ hour

After 2 hour
1. Overproduction

Operation 1 Operation 2

After 3 hour
1. Overproduction

Operation 1 Operation 2

After 10 hours
 1. Overproduction

Operation 1 Operation 2

This is hidden Money

 1. Overproduction

And for this hidden money we

spend additional money in the
following forms

This is hidden Money

 1. Overproduction
Energy
Recordkeeping
Documentation
Tooling cost
Manpower cost
Overheads
Storage

This is hidden Money

 1. Why ? Overproduction

1. No confidence in process
2. No control on quality
3. No confidence on tooling
4. Rectification

This is hidden Money

 1. Overproduction Results in

1. Rejection %age increases

2. Reducing cash flow
3. Searching & Sorting
4. 5S not implemented

This is hidden Money

 1. Overproduction HIDES

1. Waste of WAITING
2. Waste of MOVEMENT
3. Waste of PROCESSING

This is hidden Money

1. Waste of Overproduction
Definition : Producing more then needed. Producing faster
then needed

Symptoms
Unbalanced material Root Causes
flow Incapable process
Extra part storage rack Lack of communication
Extra manpower Automation in wrong
Batch processing place
Complex inventory Long process set-up
management Unbalanced work load
Additional floor space
Hidden problems
Large lot size
1. How to Avoid Overproduction

1) Do not produce more than next process demand

2) Build confidence in process
3) Improve m/c condition
4) Improve attendance

Indirect ways of reducing over-production

a) Reducing finish goods area
b) Reduce space between two operations
2. Waste of Correction
Definition : Extra work or process to fulfill
customer requirement.

o Examples: REVISE

o Extra manpower to
check work ADJUST

o Miss communication
CHANGE
o Excessive variations

Waste of correction includes the waste of handling and

And fixing mistakes. This is common in manufacturing
2. Waste of Correction

Root Causes
Symptoms Incapable process
Rework, repair & Excess variation
scraps Lack of error proofing
Added inventory costs Increase inventory
Customer returns Poor layouts
Loss of customer High Inventory level
confidence
Low profit due to scrap
Questionable quality
3. Waste of Inventory
Machine failures and defectives in process are reasons for
increase in safety stock

Improving machine condition and processes will help to reduce

necessity of stock.
3. Waste of Inventory
3. Waste of Inventory
Symptoms
Complex tracking system
Extra storage and handling
Extra rework
High disposal cost
Obsolete material/land fill
Root causes
Product complexity
Incapable process
Unleveled scheduling
Poor market forecast
Unbalanced work flow
Unreliable supplier shipment

Potential Problems with Excessive Inventory

a. Carrying Cost
b. Warehouse space
c. Hidden Quality Problems
 3 TEI Rules
Instruct staff to follow the 3 Tei rule, which stipulates that;

Teiryo (predetermined quantity) of

Teihinn (predetermined materials or parts) shall be placed in the

Teichi (predetermined position), with proper indications.

 Sort the stored parts into the regular parts (work pieces and
complete parts) and non-regular parts (reserved parts or extra
parts), determine necessary volumes of both types of parts after
inventory count, designate the respective storage places, and
indicate them for visual control.

Use the regular parts on a first-in first-out basis, and reduce the
stock volume through improvement. Also, reduce the non-regular
parts to zero through further investigations and corrective measures.
4. Waste of Motion
Long travelling distance consume time increase lead time.
Reduced response to customer demands, damages during
transportation, lost components and much harder to manage .
4 1 1

1 4 2 5
2 2
3 5
5 5
Future
3 3

Before After
4. Waste of Motion
Definition : Any excessive movement of people
or products.

Examples:
Looking for
information of
supplies
Excess travelling to
access daily
information
Material too far apart
Lack of visual control
4. Waste of Motion
Definition : Any excessive movement of people
or products.

Symptoms Root Causes

Reduce Productivity Poor ergonomics
Long walking distance Machine/process design
Excess handling Inconsistent work
Reduced quality method
High energy cost Poor workplace
Inappropriate use of organization
resources Poor house keeping
Extra searching
5. Waste of Over-Processing

In operation, so many activities are carried out which does

not add value.

OR

Operators are not clear what exactly needs to be done in a

particular operation.
5. Waste of Over-Processing
Over processing is tasks, activities and materials that does not add
value
Can be caused by poor product or tool design as well as from
not understanding what the customer wants.

Relates to every operation that

does not add value to the
product or customer is not willing
to pay for it
5. Waste of Over-Processing
Definition : Effort which Adds no value to a Product or
Service.

Symptoms Root Causes

Process bottlenecks Engineering changes
Lack of clear without processing
customer changes
specifications Decision making at
Endless refinement inappropriate level
Inefficient policies or
procedures
6. Waste of Transport
Conveyance is the unnecessary movement of material and goods

Examples:
Extra steps in process
Distance travelled
Moving paper from place to place
6. Waste of Transport

Definition : Any material and information movement.

Root Causes
Symptoms Misallocated materials
Extra handling Unleveled scheduling
Extra inventory Unfavorable facility or
Large storage areas layout
Extra paperwork Poor workplace and
organization
Poorly managed waste
streams
Unbalanced process
7. Waste of Waiting
Idle time that is produced when two department variables
are not fully synchronized.

Waiting is nonproductive time due to lack of material, people or equipment

o Man wait time
o Machine wait time

Examples:
Extra steps in process
Unplanned equipment downtime
Upstream quality problem
Inspection/Rework/Repair
7.Waste of Waiting

Definition: Idle time created when people wait for machine, people
wait for people, machine wait for people and machine
waiting for machine.

Examples:
People waiting for other people
People waiting on equipment
Equipment waiting for people
Unbalanced work flow
Unplanned equipment downtime
Benefits of Lean Production

Reduced inventory
Improved quality
Lower costs
Reduced space requirements
Shorter lead time
Increased productivity
Benefits of Lean Production

Greater flexibility
Better relations with suppliers
Simplified scheduling and control activities
Increased capacity
Better use of human resources
More product variety
How People Benefit from Lean
Element Traditional Lean Improvement

Communication Slow & Uncertain Fast & Positive Quality &

Coordination

Teamwork Inhibited Enhanced Effective Teams

Motivation Negative, Extrinsic Positive, Intrinsic Strong Motivation

Skill Range Narrow Broad Job Enrichment

Supervision Difficult and Easy & Localized Fewer Supervisors

Fragmented
How Customers Benefit from Lean

Element Traditional Lean Improvement

Response Weeks Hours 70-90%

Customization Difficult Easy Competitive

Advantage
Delivery Speed Weeks-Months Days 70-90%

Delivery Erratic Consistent & High Up to 90%

Reliability
Delivery Large Shipments JIT as Required Locks in JIT
Quantities Customers
Quality Erratic Consistent & High Delighted
Customers
QUESTIONS
THANKYOU