Customer Focused

Lean Principles in
Lean MFG
CHAPTER 4
Identifying the Customer

• Value added is always determined from the customer’s

perspective.
• Who is the customer?
• Every process should be focused on adding value to the
customer.
• Anything that does not add value is waste.
• Some non-valued added activity is necessary waste (“NVA-R”)
• Regulatory
• Legal
Implementation

• Think global / systems optimization

• Maximum impact to process
• Speed of implementation – create small victories
• Cost-benefit analysis
Typical Results from Lean Conversions
Percentage of Benefits Achieved
0 25 50 75 100

Lead Time Reduction

Productivity Increase

WIP Reduction

Quality Improvement

Space Utilization

Flexibility Skill Enhancement Visual Management

 LEAN MANUFACTURING
Where has Lean been successfully
implemented?
•Manufacturing
➢Automotive
➢Industrial Products
➢Furniture
➢Textiles and Apparel
➢Printing and Packaging
➢Consumer Products
•Service Industries
•Military
•Healthcare
Developing a Lean Factory
The Goal and Getting There from Here

•The Goal - Lean Throughout the Entire

Enterprise
•Set Aggressive Improvement Goals
•Measurements of Existing Operations
•Recognize Current Problem Areas
•Apply the Lean Production System
Concepts
•Commit to the Continuous Improvement
Process
Value Added/Non-value Added

 Value-added:
 ANY ACTIVITY THAT PHYSICALLY CHANGES THE MATERIAL BEING WORKED ON (not rework/repair!)
 Machining Knitting
 Drilling Spreading/Cutting
 Assembly Dying
 Painting Sewing
 Non-value added:
 ANY ACTIVITY THAT TAKES TIME, MATERIAL, OR SPACE BUT DOES NOT PHYSICALLY CHANGE THE
MATERIAL
 Sorting Stacking
 Counting Checking
Lean = Eliminating the waste
Value
added
8 Wastes
5%
◆ Overproduction
◆ Excess inventory
◆ Defects
◆ Non-value added
processing
◆ Waiting
◆ Underutilized people
◆ Excess motion
◆ Transportation
Non-value
added

Typically, 95% of Total Lead Time is Non-Value Added!!!

 Develop Develop a concise, achievable milestone plan

Communicate the plan to everyone

Communic •Suppliers
ate •Team members
•Customers

Execution
Track Track activities in public

Celebrate Celebrate small victories and publicly analyze failures

Check and Sustain

1 2 3
Meet regularly Re-evaluate Future Track results on a
(weekly?) to review State regularly public Kaizen Board
status of open (quarterly?) for
implementation items additional
improvement
Developing a
Lean Factory
Summary – Stability in Manufacturing
Processes
•4Ms
•5S
•Visual Controls
•Plant Layout
•Total Productive Maintenance
Standardization

Standardized Work

Establishing precise procedures for each operator’s work in a production process,

based on three elements:

1. Takt time, which is the rate at which products must be made in a process in
order to meet customer demand.
2. The precise work sequence, in which an operator performs tasks within takt
time.
3. The standard inventory, including units in machines, required to keep the
process operating smoothly.
Standardization

Takt Time = 10 seconds

Standardization
Supermarket

The location where a predetermined standard

inventory is kept to supply downstream
processes.

Supermarkets are ordinarily located near the

supplying process to help that process see
customer usage and requirements.
Standardization

Supermarket Pull System