Transcript Lean Manufacturing Overview - Process Coaching Incorporated

The Value of Lean
Thinking
Process
Coaching
Incorporated
Presented by:
Brian D Krichbaum
What is Lean Thinking?
A systematic approach to identifying and
eliminating waste through continuous improvement
by flowing the service or product at the pull
of customers in pursuit of perfection.
Process
Coaching
Incorporated
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© 2008 Process Coaching Incorporated
History of Lean Manufacturing
1798
Eli Whitney develops
interchangeable parts
1908 through 1913
Henry Ford develops
the moving assembly
line.
Process
Coaching
Incorporated
1920’s
Sakichi Toyoda
develops mistake
proofing and 5 Whys
August 4, 1937
First supermarket
in the United
States opened
1933 - Toyota
Motor Company
established
1950’s - Taiichi Ohno
develops the Toyota
Production System
(TPS)
June – August 1950
Deming introduces lean
quality principles to
Japanese engineers and
managers
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© 2008 Process Coaching Incorporated
House of Lean
Visual Factory Management
Total Equipment Management
(Preventative Maintainance)
Pull Production Signaling (Takt Time,
Single Part Flow, JIT, Kanban)
Standardized Work and Work
Instructions
Built In Quality
Pursuit of Perfection
(Continuous Improvement)
5S, Value Stream Mapping, Kaizen, Work Cell Arrangement
Team Based Problem Solving utilizing PDCA cycle
Mistake Proofing Techniques
Empowered Work Teams
Process
Coaching
Incorporated
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© 2008 Process Coaching Incorporated
Benefits of Lean Production
 Reduction in overhead / operating costs
 Productivity Increase (30% - 40%)
 Throughput Time Decrease (70% +)
 Increase Profit
 Customer Lead Time Reductions (50% +)
 Work in Process Inventory reductions (70%+)
 On Time Delivery to customers (95% +)
 Quality Performance Improvements
Process
Coaching
Incorporated
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© 2008 Process Coaching Incorporated
The Eight Deadly Wastes
 Overproduction
 Excess Inventory
 Waiting
 Defects
 Transportation (Moving)
 Excess Motion
 Non-Value Added
 Underutilized Resources
Processing
Process
Coaching
Incorporated
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Value Added Activity
5% Value
Added
95% NonValue Added
What is value added activity?
 Tasks that customers recognize as valuable
 Tasks that are done right the first time
 Tasks that transform the product or service
Process
Coaching
Incorporated
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© 2008 Process Coaching Incorporated
Lean Manufacturing Principles1
 Specify Value
 Identify the Value Stream
 Make value creating steps flow
 Let the customer pull product
 Strive towards Perfection
1James
Womack, Lean Thinking, (Simon & Schuster, 1996), p. 16 - 26
Process
Coaching
Incorporated
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© 2008 Process Coaching Incorporated
Lean Manufacturing Principles
Specify Value
 Correctly specifying value is critical in lean
thinking
 Providing the wrong good or service the
correct way is still waste
 Value must be defined in terms of specific
products at specific prices at specific times
 Only the ultimate customer can define value
– but they often don’t know how to do it!
Process
Coaching
Incorporated
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© 2008 Process Coaching Incorporated
Lean Manufacturing Principles
Specify Value
 Customers and producers must challenge old
value definitions and work together to define
what is needed – not just a better widget
 Look at the “whole” product – not just the
features, but how it is used – to determine it’s
requirements
 Define the Target Cost (the cost of producing
the product waste free)
Process
Coaching
Incorporated
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© 2008 Process Coaching Incorporated
Lean Manufacturing Principles
Identify the Value Stream
 When the steps for producing a product aren’t
identified, they can’t be challenged
 The purpose of value stream mapping is to
identify waste
 We map the current state and the future
(lean) state
 All value streams have internal (our plant) and
external (our plant + suppliers + customers)
components
Process
Coaching
Incorporated
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© 2008 Process Coaching Incorporated