From Lean

to Smart Production

Dr.-Ing. Paryanto
Mobile 082134521727

Online, 22.07.2021
Lean Concept
Lean development uses principles of lean management to speed up time-to-
market and reduce costs by optimizing the product development process.

Lean Thinking

Lean Management

Lean Operation Lean Development Lean Administration

Definition

Optimize value-adding Optimize product Optimize information

processes to eliminate waste development by applying processes and office
and improve quality lean principles operations

Simultaneous
Concepts

Production Systems
engineering Business process
management
Six Sigma
Innovation management

5 S →Seiri, Seiton, Seiso, Seiketsu, Shitsuke

Elementary
methods

3 M →Muda, Mura, Muri

6 M → man, material, machine, methods, milieu, measurement
Visual Management

Lean Concept 22/07/2021 3

 The lean production is one approach to improve Taylorism

This Lean Manufacturing philosophy has 3 pillars

which are the types of wastes to eliminate as a
lean factory. These principles are the Japanese
words:

▪ Muda (uselessness),
▪ Muri (overburden),
▪ Mura (unevenness).

The Lean approach has expanded from the

manufacturing industry to many other business
categories. It has now become the most
advanced way to run efficient companies.

Lean Concept 22/07/2021 4

Lean manufacturing goals

Ref: Hicks

Lean Concept 22/07/2021 5

 LEAN MANUFACTURING

LEAN MANUFACTURING https://www.youtube.com/watch?v=Sm0SZlVhz8w 22/07/2021 6

 7
Purpose of Lean Manufacturing

Continuing Elimination of 3M is
Fostering Cost Reduction
to make products
activities through
1. Safer
Elimination of : Eliminate
(Eliminate MURI 3M
1. Muri (overburden) or overburden)
2. Mura (unevenness)
3. Muda (uselessness) 2. Higher quality
(Eliminate MURA
or unevenness)

3. Cheaper
(Eliminate MUDA
SUSTAINABLE and
or uselessness)
EFFICIENT FACTORY

Lean Concept 7
22/07/2021
 8
MUDA Elimination and Goals

By complete elimination of various kinds of MUDA (waste), it is not only

increasing Profit by cost reduction but also making our operation
becomes Easier and Safer.

Zero Accident HIGH QUALITY

LESS OF PRODUCT
Zero Defect COMPLEXITY
Zero Break Down
OPERATION ON TIME DELIVERY

It is also a premise for manufacturing High Quality Products

and On Time Delivery
Lean Concept 8
22/07/2021
 Lean Manufacturing House

Customer Satisfaction
Goal : Best Quality – Lowest Cost – Shortest Lead time

Just-in-Time

Jidouka
Cost Reduction
Through
Elimination
of
【MURA, MURI, MUDA】

Heijunka Standardized Work

5R SAFETY 5S

Lean Concept 22/07/2021 9

 Just In Time

3 Basic Rule of JIT

❷ ❶
Continuous Pulling
Process System
Next process

① ② ③

❸ Working Follow Store : Placed at

Takt Time the production
side

Lean Concept 22/07/2021 10

 HEIJUNKA

Leveling of Volume & Type of produced product (related to sales)

① Volume Heijunka
Qty Qty
Over Time

Time Over
Time Time
② Product Type Heijunka

C C C B B B A A A C B A C B A C B A

Objectives Savings [Rp]

① Eliminate ‘muda’ of Man & Machine

② Reduce Stock（Material, F/G)

Lean Concept By Leveling end process, previous process sequence also leveled 22/07/2021 11
 JIDOUKA
STOP & CALL

(1) after the job is Completed (2) when Abnormal occurs

No supervision for machine Standardized Work No defect outflow

Andon
Separate man & machine Build in quality
working at each process
Visualization

Less man power needed Problem solving Produce OK parts

by 5 Why’s analysis

“Good Products”, “with reasonable price”

Lean Concept 22/07/2021 12
 Standardize Work

Definition : Standardized method and requirement of each working element

to keep Safety, Quality, & Productivity without waste (muda) and
Focus on : ① Operator’s Motion
② Repeat motion

Produce products based on sales speed

Takt Time
Set up speed & volume of production

Can be set up Standardized Work

Instruction Withdrawal
Kanban Kanban

① ② ③

Produce products based on Takt Time ⇒ Can make the products more cheaper
Lean Concept 22/07/2021 13
 Lean Manufacturing

LEAN MINDSET 22/07/2021 14

 These principles can be fulfilled by implementing the core elements
of a lean, process oriented production system.

Targets
Kanban / Kanban / Pull-System
Pull- ▪ Eliminating waste through overproduction
System ▪ Reduction of complex control systems
Just-in-
time Just-in-time / Just-in-sequence
▪ Reducing inventories
▪ Mastering a high product variety
Production Production layout
layout ▪ A flowing production process
Core elements
Takt ▪ Minimum transport times, high space utilization
of a process- time
oriented Takt time
production ▪ Synchronizing all production steps
▪ Eliminating waste through overproduction
system One-
piece One-piece flow
flow ▪ A single work-piece flowing through the
Heijunka production does not generate waiting time
(Smoothing/
Heijunka (Production smoothing / leveling)
Leveling)
▪ Avoiding peaks in the production process
Single
Minute ▪ Enhancing reactions on customer demand
Exchange Single Minute Exchange of Dies (SMED)
of Dies
▪ Minimizing set-up time → increase in capacity
▪ Reducing lot sizes

Lean Concept 22/07/2021 15

 A Kanban card is usually a piece of paper with only a few,
but very important information on it.

Sink
… is the shop floor where
Source the material is needed.
Storage area
When arriving at … is the place
the source, the which the product is
Kanban card is a delivered to.
production order.

Kanban units Material name

The Kanban units … describes the
provide information product needed.
about the number of
Kanbans for this
supplier-customer
relationship in use.

source: http://www.manufactus.com/wp-content/myfotos/products/Kanban%20Karte%201.png

Lean Concept 22/07/2021 16

 Since not every type of material is suitable for a Just-in-time or Just-in-sequence delivery, it is important
to select JIT and JIS material carefully.

Identification of material suitable for JIS and JIT delivery

Just in Sequence

Just in Time
Constant demand

Seasonal demand

High number of variants

Unsteady demand
Standardized parts
C-parts

B-parts

A-parts
Lean Concept 22/07/2021 17
 Another important element of a lean and process oriented organization is the arrangement of work
stations in an efficient U-layout.

Stretched Advantages of a U-Layout

U-shape
arrangement
▪ Using the flexibility of
employees
(multi-process-handling)
▪ Increased efficiency of
employees → short distances
▪ Promotion of group work and
communication
▪ Mutual support
in case of errors
▪ Material can be provided from
outside the U-shape
▪ Material input and output are
Non-value added route
close to each other
Value added route ▪ Employees concentrated on
value-added assembly
processes

Lean Concept 22/07/2021 18

 U-shaped layouts minimize distances, increase flexibility
and efficiency in material supply.

P11 P10 P9 P8 Assembly

P7

Waste
Value added Finished products
P6
P1 P2 P3 P4 P5 Milkrun material supply

Principle of the U-Layout

▪ Work stations are arranged counterclockwise in the sequence of processing
(a counterclockwise arrangement of machines supports an operation with the right hand)
▪ Input and output area are handled by one person
▪ Several work stations are operated by one person
▪ Distances are minimized, the next step takes place at the next machine
▪ Production in an one-piece flow
▪ Number of workers can be adapted to the order volume
▪ Value added processes (~ assembly) and waste (~ logistics) are separated
Lean Concept 22/07/2021 19
 The production layout in a lean factory - a U-shaped layout
is recommended in many cases - has to fulfill several requirements.

Chaku Chaku

▪ The U-shaped layout is based on the Japanese

principle „Chaku Chaku“ (jap. = loading, loading)
▪ All workstations required for the production of a
product are arranged close to each other in the
sequence of processing
▪ A worker can operate several machines and
transports goods from one station to the next

1. The raw material must be processed in shortest time into a product

(decreased throughput time).

2. The production system must be able

Requirements to respond flexible to changes in production volume.
to a production → Operation of several successive working stations by one worker
layout 3. The production layout must support one-piece flow and must be able to
produce the requested number of products in the required time.

4. The flow must be immediately recognizable for everyone

(visual management).
Lean Concept 22/07/2021 20
 An established concept of providing a (U-shaped) production line efficiently with material/components is
Milkrun.

Milkrun
is a concept in internal and procurement logistics which is marked by a sequential collection
of transport freight at multiple sources and a direct delivery to the receiving plant/workstation
without intermediate consolidation spots.

Characteristics EXTERNAL MILKRUN

▪ Predetermined cycle and supply route
▪ Fixed lot sizes (Kanban control applicable)

Supplier 3
Advantages
Supplier 4
▪ Less traffic Supplier 2

▪ Optimized capacity usage

▪ Applicable to intralogistics (cf. tugger train) as
well as the interaction with external suppliers Supplier 1
Supplier 5
▪ Improved reverse logistics (empty containers)
▪ Reduced transport times/costs and stocks Receiver
Material/parts
▪ Capability of realizing JiT concepts
Empties (e.g. containers)
Lean Concept 22/07/2021 21
 Heijunka is a method in production planning and controlling for levelling and smoothing fluctuations in
manufacturing caused by customer demand.

quantity

destocking

stock accumulation

time
customer demand heijunka production

Goals
▪ Decoupling customer demand from production orders to reduce fluctuations
▪ Exploiting the available production capacity completely

Characteristics
▪ Production volume partitioned into a mix of small, even lots in a determined sequence
▪ Improved predictability for support processes (e.g. material supply, maintenance)
▪ Typically applied to large scale production (high volume, minor mix)
▪ Basic prerequisite for the deployment of an efficient pull-oriented production control
(which is quickly stretched to its limits when fluctuations are intense)
Lean Concept 22/07/2021 23
 The meaning of the Japanese philosophy „Kaizen“ is comparable
to „Continuous Improvement Process (CIP)“.

改 善
Kai Zen
= =
change, good,
transformation for the better

There is no day to pass without improvement in the company:

▪ Philosophy of ongoing ”change for the better”
▪ Precise objectives, transparency and flexibility as
prerequisites to respond to external changes

Goals of Kaizen
▪ Simple, fast and cost-effective resolving of problems
▪ Permanent consideration of customer’s benefit and value
▪ Avoidance of waste (muda), overload (muri) and unevenness (mura)
Lean Concept 22/07/2021 24
 According to basic ideas of Kaizen, improvements
have to be implemented holistically and across all levels.

Willingness to constantly change at all levels

Clearly defined visions and objectives
Participation of all employees (managers and staff)
Respectful and binding communication
Patience, persistence and consequence
Basic ideas
Bottom-up generation of improvement ideas
of Kaizen
Solving of problems everyday
Total quality orientation
Standardization of work processes
Customer focus
Customer-supplier relationships within the company

► CIP requires a mindset that focuses on long-term,

permanent and sustainable success.
Lean Concept 22/07/2021 25
 According to Kaizen, improvement ideas should be created by every single employee – an efficient
company suggestion system is key to success.

Improvement ideas from employees according to industries

source: FAZ.net / dib.de, 2007

Success factors of an efficient company suggestion system

▪ Recognition is more important for the worker than bonus
▪ Easy submission of suggestions
▪ Support of the managers
▪ Dedicated persons responsible for the improvement system
▪ Standardized process to review and implement suggestions

Lean Concept 22/07/2021 26

 Deming is the father of modern quality control and developed
the PDCA model, a systematic approach to put the Kaizen ideas into practice.

"The worker is not the problem.

The problem is at the
top management!"

A P
Inventor of the PDCA cycle
C D

Basic principles of Deming‘s Philosophy Edwards W. Deming

▪ Responsibility for quality at the management (1900-1993)
▪ Focus on employees
▪ Cooperation and communication
▪ Continuous improvement

Deming‘s chain of reaction

Improved quality → improves productivity → decreasing costs → competitive prices →
→ safe markets shares → stabilization of the company → safe jobs → safe company

Lean Concept 22/07/2021 27

7/22/2021 27
 The PDCA cycle is a systematic approach to
implement continuous improvement measures over several steps.

Improvement process

Develop,
Describe Determine Compare
Recognize assess Implement Introduce
the improve- target and
the causes and plan measures standards
problem ments actual
measures

Plan Do Check Act

A P A P A P A P
C D C D C D C D

The PDCA cycle is a systematic approach to a

▪ consistent and
▪ continuous
improvement of work processes and procedures.
source: Kostka, 2011

Lean Concept 22/07/2021 28

 Important techniques and methods support an effective and efficient implementation of CIP and will be
specified in this lecture.

Improvement process

Describe Determine Develop, as- Compare

Recognize Implement Introduce
the improve- sess and plan target and
the causes measures standards
problem ments measures actual

▪ Visual Management
▪ Value Stream Mapping / process mapping
▪ A3 report
▪ 5 Why ▪ Pareto ▪ Heijunka ▪ OEE ▪ 5S
Methods and techniques

▪ Ishikawa analysis ▪ SMED

▪ 6M ▪ Double ABC- ▪ KANBAN
analysis ▪ Tact time
▪ One piece flow
▪ 3 Mus /
▪ Production-Layout
7 wastes
▪ Milkrun
▪ XYZ-
▪ Chaku Chaku
analysis
▪ Poka Yoke
▪ Andon
▪ Autonomation
▪ Quality circle
▪ 8D report
Methods and techniques for CIP
Methods for the improvement of processes (process orientation) and quality (TQM)
Lean Concept 22/07/2021 29
 At each stage of PDCA cycle there are different helpful options
to implement improvement efforts.

PLAN for changes

ACT to get the greatest to realize improvement
benefit from changes
◼ Customer/supplier mapping
◼ Customer/supplier mapping
◼ Flow charting
◼ Process mapping
◼ Pareto analysis
◼ Process standardization
◼ Brainstorming
◼ Controlled reference information
◼ Nominal group technique
◼ Training for 4 1
◼ Solution/fault tree
standard processes
Act Plan ◼ Cause and effects diagrams

Check Do
CHECK to see if changes are
DO changes on a small
working and to investigate 3 2 scale first to trial them
selected processes
◼ Customer/supplier mapping
◼ Customer/supplier mapping
◼ Small-group leadership skills
◼ Data sheet check
◼ Experimental design
◼ Graphical analysis
◼ Conflict resolution
◼ Control charts
◼ On-job training
◼ Key performance indicators

Lean Concept 22/07/2021 30

 The creation of an activities list supports
monitoring the progress of an improvement project.

Activities list
Respon-
# Activity Support Due Date Control Progress
sibility
Find new supplier Dept.
1 for metal
T. Smith
procurement
23 Dez 2015 P. Miller

Implementation
2 WMS
C. Yao ext. 15 Feb 2016 T. Goldfinger

Optimization
3 order processing
F. Myers --- 31 Jan 2016 P. McKenzie

Solve problem in M. Rogers,

4 packing
L. Green
S. Knight
29 Nov 2015 K. Nowak

5
Key

A P Measure A P Implementation A P Effectiveness A P Measure

C D planned C D started C D tested C D implemented

source: Kostka, 2011

Lean Concept 22/07/2021 31

 In addition to Kaizen there is a need for a philosophy
which aims to enforce more extensive changes: Kaikaku.

Radical change/redesign, innovation Continuous improvement

▪ ▪ Strategic
Strategicmethod
method (result-oriented) ▪▪ Tactical
Tacticalmethod
method (process-oriented)
▪ ▪ One
Oneinitiative/event
initiative/eventofoflarge
largescope
scope ▪▪ More
Moreinitiatives/events
initiatives/eventsofofsmall
smallscopes
scopes
▪ ▪ Planning
Planningtimeline
timelineofofweeks
weeksorormonths
months ▪▪ Planning
Planningtimeline
timelineofofhours
hoursorordays
days
▪ ▪ Results
Resultsrealized more slowly,
implemented but with
more slowly, but ▪▪ Quick
Quickresults
resultswith
withsmall,
small,individual
individual
pervasive contributions
with pervasive to the to
contributions organization
the contributions
contributionstotothe
theorganization
organizationororvalue
ororganization
value streamor value stream stream
the value stream
▪ ▪ Higher
Higherrequirement
requirementofoflabor
laborand
andresources ▪▪ Lower
Lowerrequirement
requirementofoflabor
laborand
and
inresources
projects in projects resources
resourcesfor
forplanning
planningand
andexecution
execution

 Revolutionary/transformational approach  Smooth changes

 Necessary for breaking paradigms  Not capable of accomplishing extensive
 Means of enforcing unpopular decisions changes
Source: Yamamoto, Yuji: Kaikaku in production (2010)
Lean Concept 22/07/2021 32
 As Kaikaku is too labor-intensive and time-consuming for necessary changes
of small scope, a combination of Kaizen and Kaikaku is recommended.

Kaizen uses continuous, small steps to improve operations in An appropriate

order to overcome all the small barriers on the way of combination of both
ongoing change for the better can induce the
Kaikaku removes large obstacles while striving to achieve achievement of higher
strategic goals goals within short time

Productivity Productivity

Kaizen
𝛗CIP 𝛗CIP
𝛗CIP+Kaikaku >
𝛗Kaikaku

Time

Productivity

𝛗Kaikaku
combination
Kaikaku

Time Time
Lean Concept 22/07/2021 33
 Visual management is an important method to provide information quickly
and detect errors and problems in the production process.

Marking of products Status- and Andon-

and storage locations Boards

Information
Information and provided by Marking of
warning signs Visual zones and areas
Management

Illustration of the
production process

Presentation of targets Standardized

and results worksheets

Lean Concept 22/07/2021 34

 Ishikawa diagrams (also called fishbone diagrams)
show the causes of a certain event.

Looking at the six main variables “6M“

Man Machine Material
▪ Man
▪ Machine
▪ Material
Problem
▪ Methods
▪ Milieu
▪ Measurement
Methods Milieu Measurement

→ Break down (in successive layers of detail) root causes

that potentially contribute to a particular effect

Cause and effect

Problem
Determining cause

Determining factor
Root cause

Lean Concept 22/07/2021 35

 An example of an Ishikawa diagram shows possible reasons for delayed departures of airplanes.

source: qfinance.com

Lean Concept 22/07/2021 36

 The Pareto analysis states that
80% of the effects result from 20% of the causes.

Vilfredo Pareto (Italian social economist, 1848 – 1923)

„80% of the wealth of a nation is owned by 20% of its population“

80
Effect

Main rule:

12
80% of the effects result
from 20% of the causes
5
2 1 Example:
▪ 80% of your profits come
from 20% of your customers
▪ 80% of your sales come
from 20% of your products
R1 R2 R3 R4 R5 Cause
Lean Concept 22/07/2021 37
 LEAN SIX SIGMA

22/07/2021 38

https://youtu.be/s2HCrhNVfak
 Standard Normal Distribution Curve

Some notable qualities of the

Sigma (σ) = normal distribution:
one standard ▪ The mean is also its mode
deviation and median.
1 ▪ 68.27% of the area (green) is
34.1% within one standard deviation
of the mean.
▪ 95.45% of the area (green
& yellow) is within two
standard deviations.
2 ▪ 99.73% of the area (green
13.6% & yellow & red) is within
0.1% three standard deviations
3
2.1% © MIT

Lean Concept 22/07/2021 39

 Six Sigma – Practical Meaning
99% GOOD (3.8 Sigma)
▪ 20,000 lost articles of mail per hour
▪ Unsafe drinking water for almost 15
minutes per day
▪ 5,000 incorrect surgical operations
per week
▪ Two short or long landings at most
major airports each day
▪ 200,000 wrong drug prescriptions
each year
▪ No electricity for almost seven hours
each month
Lean Concept
99.99966% GOOD (6 Sigma)
▪ Seven articles of mail lost per hour
▪ One unsafe minute every seven
months
▪ 1.7 incorrect operations per week
▪ One short or long landing every five
years
▪ 68 wrong prescriptions each year
▪ One hour without electricity every 34
years
© MIT
22/07/2021 40
 Simple DMAIC Example

Control
Define
Input Output
Improved Process
Process

Measurement System
Measure

Improve Analyze

• DMAIC is easy to see in process control applications

• The same steps can be used to analyze more complex
systems, often in tandem with lean tools

Lean Concept 22/07/2021 42

 Example applications

Source: BCG

Introduction to Industry 4.0 22/07/2021 43

 Industry 4.0 in action example: delivery example

Introduction to Industry 4.0 22/07/2021 44

 Key characteristics of a smart factory

▪ Connected
▪ Optimized
▪ Proactive
▪ Transparent
▪ Agile

Introduction to Industry 4.0 22/07/2021 45

 The success of planned maintenance is measured by the figures
Mean Time Between Failure (MTBF) and Mean Time To Repair (MTTR).

Mean Time Between Failure (MTBF)

Operating time
MTBF= [hours]
Number of failures

Average duration between two failures is influenced by:

Success of ▪ Failure analysis

▪ Lubricant management
▪ Preventive maintenance
▪ Training of maintenance
planned maintenance personnel
measured using
key figures

Mean Time To Repair (MTTR)

Sum of time for repairs
MTTR= [hours]
Number of failures

Average time to repair after standstill is influenced by:

▪ Time for diagnosis

▪ Availability of maintenance
personnel
▪ Procurement of special tools
▪ Start-up time of repaired
and spare parts
machine
Lean Concept 22/07/2021 46
 Enhanced plant complexity has a
negative influence on MTBF and MTTR.

TBF

TTR

→ Reduced TBF (Time between failure) → Increased TTR (Time to repair)

Lean Concept 22/07/2021 47

Correlation Lean Production Systems to Industry 4.0

which one is right?

no matter if you do lean or industry 4.0 or both, organize your industry!

Ref.: www.allaboutlean.com
Thank you

Dr.-Ing. Paryanto
Mobile 082134521727

Online, 21.07.2021