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Developing a Lean Strategy Akın Aydemir 05.July.2012 Question WHAT IS LEAN MANUFACTURING? WHAT IS TOYOTA PRODUCTION SYSTEM? LEAN MANUFACTURING OEE=70% SAFETY OEE=70% OEE=55 - 65% OEE=70% QUALITY FLOOR SPACE INVENTORY MANPOWER OEE=70% ENERGY MAINTENANCE OEE=85% OEE=85% PROBLEM SOLVING OEE=35 - 45% OEE=55 - 65% OEE=85% DOCK TO DOCK COST OEE=85% FLEXIBILITY 5S TPM Kaizen PPS COMMUNICATION CONVERTING THE TRIANGLE Old Paradigm Lean Organization Workforce Direction Setting Organization to Support Workforce LEAN CULTURE • Respect and support for the value adder • Total systems: – Integration of the total system • Non-blaming/Non-judgmental – Process, not people – Encourage communication of problems WELCOME PROBLEMS • No problem is a problem • If there are no problems, there are no improvements • Problems are opportunities • People are not the problem • Teach people to be good problem solvers MENTALITY CHANGE Old New • • • • • • • • • • Things viewed in a vacuum Value highs, lows, crisis Manage events, things Separate people Individual performance valued at expense of system • Bursts of energy to get things done n-o-w • Competition Things viewed in context Value harmony, stability Manage people, relationships Bring people together System performance is paramount • Steady and smooth workflow • Cooperation PARADIGM CHANGE Old Paradigm: You Can Have 2 of 3 New Paradigm: Provide all 3 C Q Q D C D CULTURE CHANGE Old Paradigm New Paradigm Measurements End result only Trends of improvement Support Staff Critical of shop floor Serves shop floor Problems Rejected/hidden Treasures/communicated Solution Focus People Systems/processes Information Restricted/closed Shared/open Methods Static/routine Changing/improving Management Approach Crisis Preventive Career Movement Fast/skimming Slow/broad Supervision Inspector Coach Employee Development Do as told Learn by doing View of People Costs Assets SUCCESS FACTORS FOR LEADING CHANGE Success Factors for Leading Change Vision Skills Incentives Resources Action Plan Change Skills Incentives Resources Action Plan Confusion Incentives Resources Action Plan Anxiety Resources Action Plan No Change Action Plan Frustration Vision Vision Skills Vision Skills Incentives Vision Skills Incentives Resources False Starts VALUE ADDED • Any operation or step of an operation that physically adds value to the product or component based on customers expectations: – Examples: * Bending a hose *Tightening a bolt to torque *Attaching a fitting *Welding parts together NON VALUE ADDED • Anything excess……Activities that consume time, resources, and/or space but do not add value or contribute to satisfying the customer. WASTE SEVEN TYPES OF WASTE • • • • • • • Transportation Inventory Motion Waiting Over Production Over Processing Defects OVERPRODUCTION • The mother of all waste!!!! • Produce too much, too soon. • Over production creates other wastes: motion, conveyance, inventory. • Leads to requirements for storage space, extra handling of parts, extra pallets, and lift trucks. WAITING Waiting for a machine to finish or parts to arrive. TRANSPORTATION • Moving stock around • Delivering batched parts from one process to another OVERPROCCESSING • Doing more work than required by the customer. MOTION • Wasted motion can be caused by disorganization, poor work sequence, and poor process layout • Wasted motion is comprised of people & machines DEFECTS Repair or rework has no value to the customer INVENTORY • Excess Inventory Anything more than is required to do the job!