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LEAN ENTERPRISE BUILDING BLOCKS

Tools and Systems


for Increasing
Productivity

Presenter
Reza Maleki, Ph.D., P.E., C.Mfg.E.
Senior Business Advisor
Introductions
Reza Maleki
EDUCATION
 Ph.D. Engineering
 M.S. and B.S. Industrial Engineering/Management

PROFESSIONAL REGISTRATION AND CERTIFICATIONS


 Registered Professional Industrial Engineer
 Certified Manufacturing Engineer
 Lean Certified Practitioner
 Certification in Lean Leadership
 Academic Associate of Avraham Y. Goldratt Institute

Introductions
PROFESSIONAL WORK EXPERIENCE
Higher Education
 Served in Universities in Minnesota,
North Dakota, Wisconsin, and South Dakota
 Also served as a visiting professor at Kazakh British Technical
University, in Almaty Kazakhstan.
Consulting and Training
Have worked with companies in Minnesota, North Dakota,
South Dakota, Kentucky, Michigan, and Wisconsin.
Other Professional Experience
 Technology Transfer Director
 Director of Allied Manufacturing Center
 Senior Business Advisor, Impact Dakota, Fall 2013-Present
Impact Dakota, North Dakota’s MEP
An Affiliate of the National Institute for Standards and Technology
Introductions
Guests and Participants
Students
 Name
 Degree program enrolled in
 Previous degrees

Other Guests and Participants


 Your Name
 Title
 Work experience – years, companies

All Guests and Participants


 Experience with LEAN (training, education, applications)
 What do you hope to accomplish as a result of attending
this training (personal and professional)
Topics Covered

PART I
Productivity - Input/output Model
Approaches to Improving Productivity
PART II
Lean Building Blocks: 5s, Visual System, Standard Work, Quick
Changeover, Plant Layout, Cellular Manufacturing, Quality at Source,
Value Stream Mapping, Root Cause Analysis and Problem Solving
PART III
Lean Building Blocks: Managing Flow (emphasis on pull system and
Theory of Constraints)
SUMMARY
QUESTIONS AND ANSWERS
LEAN ENTERPRISE BUILDING BLOCKS

Tools and Systems


for Increasing
Productivity

PART I
Productivity – Input/Out Model
Productivity - Input/output Model
Examples of Business and Industry Projects
Productivity - Input/output Model

ENTERPRISE
Input Output
Transformation Processes
 People  Goods
 Capital  Services
 Energy 
 Materials



Startup Company
Productivity - Input/output Model

ENTERPRISE
Input Output
Transformation Processes
 People  Goods
 Capital  Services
 Energy 
 Materials



Regardless of the size, managing all processes and information


flow across and among the functions impacts productivity
Productivity = Output / Input
Productivity - Input/output Model
General Approach to Improving Productivity

Observe, Document,
and Analyze Processes

PROCESS

Y N

PROCESS DECISION PROCESS

PROCESS
Productivity - Input/output Model
General Approach to Improving Productivity

Develope Recommendations
for Improved Processes

PROCESS

Y N

PROCESS DECISION PROCESS

PROCESS
Productivity - Input/output Model
General Approach to Improving Productivity

Develope Recommendations
for Improved Processes

How?

Lean Approach
Lean Definition

What is Lean About?

Lean has been defined in many ways ……


A systematic approach to identifying and eliminating waste
(non-value added activities) through continuous improvements
in pursuit of perfection.

Key Term:
None-value added activities (as opposed to value-added activities)
Lean Definition

Value Added Non-Value Added


Any activity that increases the Any activity that does not add
market form or function of the market form or function or is not
product or service. necessary.
(These are things the customer (These activities should be
is willing to pay for) eliminated, simplified, reduced,
or integrated)

Typically 95% of all lead time is due to non-value added activities


Waste
Waste (Muda in Japanese)
Defects D
Over-production O
8 Basic Wastes

Waiting (for parts or resources) W


None or under-utilized employee talent N
Transportation T
Inventory I
Motion M
Extra Processing E

Typically 95% of all lead time is due to non-value added activities


How to Improve Productivity?

Typically 95% of all lead time is due to non-value added activities


Improving Productivity

The good news - Most process improvements are no/low cost in nature!
The key is to separate VALUE ADDED and NON-VALUE ADDED activities
(wastes) in a PROCESS. This step is very helpful in identifying areas for
improvements.

Process

Total Time
Improving Productivity

The good news - Most process improvements are no/low cost in nature!
The key is to separate VALUE ADDED and NON-VALUE ADDED activities
(wastes) in a PROCESS. This step is very helpful in identifying areas for
improvements.

Adding
Value

Waste

Total Time
Improving Productivity

Using various LEAN tools and techniques to improve productivity through


eliminating or reducing of wastes.

Adding
Value

Waste

Total Time
Improving Productivity

Using various LEAN tools and techniques to improve productivity through


eliminating or reducing of wastes.

Adding
Value

Waste

Total Time
Improving Productivity

Using various LEAN tools and techniques to improve productivity through


eliminating or reducing of wastes.
Reduction and/or elimination of wastes also offer the added advantage of
SHRINKING THE TIME required to deliver a product or service.

Adding
Value

Waste

Total Time
Improving Productivity

Total Time
$
Cash Flow
+
Other Competitive
Advantage

Total Time
$
LEAN for all Business Processes - Communication
LEAN for all Business Processes - Communication

AS MARKETING AS SALES AS ENGINEERING


REQUESTED IT ORDERED IT DESIGNED IT

AS IT WAS AS FIELD SERVICE WHAT THE


MANUFACTURED INSTALLED IT CUSTOMER WANTED
LEAN for all Business Processes - Design

Impacts on Inventory – Warehousing – Space – Material Handling – ERP?


How about if you had 200 or more of similar products?
Manufacturing Cost, Price, and Profit Models
Manufacturing (cost) Driven Market Driven

Price

Price Price Price

Profit Profit

Cost Cost

Traditional Thinking Lean Thinking


Cost + Profit = Price Price - Cost = Profit

Lean is a growth strategy for creating value to the end market thus
positioning your organization as the premier provider of choice.
Lean Manufacturing
History

Adam Smith The Wealth of Nations, Division of Labor

A little of history Eli Whitney Inventor of Cotton Gin, Interchangeable parts


Fredrick Taylor One Best way, Scientific Management
Henry Ford Moving Assembly Line, Standard Parts
Kiichiro Toyoda Automatic Loom, Just-in-Time
Edward Deming Quality, Plan-Do-Check-Act
Taiichi Ohno Father of Toyota Production System, JIT, Jidoka
Jim Womack Lean and Lean Thinking

Lean Basic History (7 minutes)


History of Manufacturing

Pre-industrial 1890 Mass 1920 Lean 1980


 Craftsmen  Employees  Cluster of
 Perform all tasks contribute employees working
People  Self-taught or minimally to total in teams
apprenticeship product  Extensive continuing
 Limited training training
 Highly responsive  Non-responsive  Extremely
 Long lead time  Build to stock – responsive
Customer Response
standard product  Build to demand
 Short lead times
 Customized, non-  Standardized,  Focus on internal /
Product standard products focused on volume external customer
 Variation in quality not quality
 Independence,  Obey management  Some discretion,
discretion  Repetitive, mind- group effectiveness,
 Variety of skills numbing work empowerment,
Work Environment
 Responsibility  Limited skills, team accountability,
knowledge, work cells
discretion
Manufacturing Systems Metrics

Craft Mass Lean


Cost High Low Low
Quality High Low High
Delivery Long Short Short
Volume Low High Demand
Variety High Low High
LEAN ENTERPRISE BUILDING BLOCKS

Tools and Systems


for Increasing
Productivity

PART II
Waste Reduction and Lean Building Blocks
Lean Building Blocks
An integral part of LEAN Enterprise Certification Program
Lean Building Blocks is an integral part of LEAN Enterprise
Certification Program (LECP).
The LECP helps businesses build internal capacity by providing
their workforce with a working knowledge of the principles and
practices that help with improving COST, QUALITY, and
DELIVERY.

Lean tools, systems, and principles are applicable not just to


manufacturing but also to other businesses as well
Lean Building Blocks
An integral part of LEAN Enterprise Certification Program
The LEAN Enterprise Certification Program (LECP) includes:
 9 learning modules; about ½ day each
 Supplemental readings
 Jeopardy style game (quiz) for each module
 Practice Exam
 2-day kaizen (project) events
 National LECP exam administered by the Society of
Manufacturing Engineers.
Lean Enterprise Certification
Concepts and Structure
The foundation of personal development and professional
growth begins with understanding three Lean concepts:

 Principles: focuses on the


strategic transformation of
an entire enterprise.
 Systems: integrates Lean
knowledge with leadership
experience.
 Tools: focuses on the
fundamentals of Lean from
a tactical perspective.
Lean Building Blocks
Tools, Systems, and Principles for Improving Productivity

Original
Process

Process
after
removing
Wastes
Waste
Waste (Muda in Japanese)
Defects D
Over-production O
8 Basic Wastes

Waiting (for parts or resources) W


None or under-utilized employee talent N
Transportation T
Inventory I
Motion M
Extra Processing E

Typically 95% of all lead time is due to non-value added activities


Waste
Waste - Defects

 Inspection and repair of material in inventory


Causes of Defects
o Weak process control
o Deficient planned maintenance
o Inadequate education/training/work instructions
o Product design
o Customer needs not understood
Waste - Over-production

 Making more than is required by the next process


 Making earlier than is required by the next process
 Making faster than is required by the next process
Causes of Overproduction
o Just-in-case Logic
o Misuse of automation
o Long Process Set-up
o Un-level scheduling
o Unbalanced work load

Lucy and Ethel Fighting a Losing Game (00:47 minutes)


Waste - Waiting

 Idle time created when waiting for parts, materials, machines,


information, help, etc.
Causes of Waiting
o Unbalanced work load
o Unplanned maintenance
o Long process set-up times
o Misuses of automation
o Upstream quality problems
o Un-level scheduling
Waste - None or Underutilized People

 The waste of not using people’s abilities (mental, creative,


physical, skill)
Causes of Underutilized People
o Old guard thinking, politics, the business culture
o Poor hiring practices
o Low or no investment in training
o Low pay, high turn over strategy
Waste - Transportation

 Transporting parts and materials around the plant


Causes of Transportation Waste
o Poor plant layout
o Poor understanding of the process flow
for production
o Large batch sizes
o Long lead times
o Large storage areas
Waste - Inventory

 “Any supply in excess of a one-piece flow through your


manufacturing process”
Causes of Excess Inventory
o Protects the company from inefficiencies and unexpected
problems.
o Unleveled scheduling
o Poor market forecast
o Unbalanced workload
o Unreliable shipments by suppliers
o Misunderstood communications
o Reward system
Waste - Inventory
What Happens
if you reduce Inventory?

Inventory “hides” problems Reduction of inventory without solving of


Inventory cost a lot of money problems causes wreckage
Waste - Motion

 Movement of people or machines that does not add value to


the product or service.
Causes of Motion Waste
o Inconsistent work methods
o Poor people/machine effectiveness
o Unfavorable facility or cell layout
o Poor workplace organization and housekeeping
o Extra “busy” movements while waiting
Waste - Extra Processing

 Effort that adds no value to the product or service from the


customers’ viewpoint
Causes of Extra Processing
o Product changes without process changes
o True customer requirements undefined
o Lack of communication
o Redundant approvals
o Extra copies/excessive information
Waste
Waste (Muda in Japanese)
Defects D
Over-production O
8 Basic Wastes

Waiting (for parts or resources) W


None or under-utilized employee talent N
Transportation T
Inventory I
Motion M
Extra Processing E
LEAN Building Blocks include Tools,
Tools, Systems,
Systems, and
Principles that help with reduction and/or elimination
of different types of wastes.
LEAN Building Blocks

Continuous Improvement

Managing Flow Cellular Manufacturing TPM

POUS Quality at Source Quick Changeover

Standardized Work Batch Reduction Teams Value


Stream
Visual 5S System Plant Layout Mapping

Root Cause Analysis and Problem Solving Tools


Lean Building Blocks - Workplace Organization (5S)
Workplace Examples
Disorganized Shipping Area

Cluttered Drawer
Lean Building Blocks - Workplace Organization (5S)
Workplace Examples
Messy Corner
Lean Building Blocks - Workplace Organization (5S)
Workplace Examples

Do Not Forget
The Garage and Kitchen
Lean Building Blocks - Workplace Organization (5S)
Lean Building Blocks - Workplace Organization (5S)
The Fundamental Strength

A workplace that is: Resulting in:


 Clean,  Fewer accidents
 Organized,  Improved efficiency
 Orderly  Improved quality
 Pleasant  Workplace control
Is The foundation for all
other improvement
activities
And therefore…
 Reduced waste, and
 Reduced cost
Lean Building Blocks - Workplace Organization (5S)
Workplace Examples
Lean Building Blocks - Workplace Organization (5S)
Workplace Examples

5S – Ideas That Work (3 minutes)


Lean Building Blocks - Workplace Organization (5S)

In-class Exercise
The 5S Numbers Game
Lean Building Blocks - Visual Systems

A visual workplace is self-ordering, self-explaining,


self-regulating, and self-improving; where what is
supposed to happen does happen, on time, every
time, day or night – because of visual devices.

A visual device is a mechanism or thing intentionally


designed to influence, guide, direct, limit or even
guarantee our behavior by making vital information
available as close to the point-of-use as possible to
anyone and everyone who needs it without speaking
a word.

The modern gas pump is so highly visual that,


with a little help from you,
it easily substitutes for the gas attendant and the cashier.
Lean Building Blocks - Visual Systems

Lean Visual Workplace is


similar to your favorite games
– you always know the score
and what’s happening

Make your process better


by making it more visual for
everyone to clearly see
Lean Building Blocks - Standardized Work

In Lean, standardized work (also called standard work) is the


cornerstone of any continuous improvement effort.
Lean Building Blocks - Standardized Work

Standard (revised)

Standard (revised)

Standard (baseline)

 Standards are the basis for comparison (before/after)


 With no standards you can’t objectively tell what has changed or what
has improved
“Where there is no standard, there can be no kaizen.”
Taiichi Ohno, Vice-president, Toyota Motor Corporation
Lean Building Blocks - Standardized Work

Toyota Production System


House of Lean

STANDARDIZED WORK is the


Foundation for Improvement.
Lean Building Blocks - Standardized Work

Why Use Standard Work (2:40 minutes)


Lean Building Blocks - Quick Changeover
Changeover - The elapsed time from when the last part of the
current run is completed until the work center starts running the
first good piece of the next run.
Current Run Setup Next Run

Setup

Improved Setup

Opportunities
Lean Building Blocks - Quick Changeover

 Paint Systems
 Presses
 Emission Control Testing Other
 Pizza Shops Examples
 Other Fast Food Places
 Making Coffee at Home
 Getting Dinner Ready for Thanksgiving
 Changing Tire on Your Car

Changing Tires: Ferrari F1 Pit Stop Perfection (00:47 minutes)


Lean Building Blocks - Quick Changeover

Changing Tires: Ferrari F1 Pit Stop Perfection (00:47 minutes)


Lean Building Blocks - Quick Changeover
Shigeo Shingo Approach also Known as SMED
Single-Minute
Exchange of Die
(SMED)

SMED History (3:30 minutes)


Lean Building Blocks - Quick Changeover
Shigeo Shingo Approach also Known as SMED
SMED Methodology (a three-step process)
Step 1 Step 2 Step 3

Internal Internal Internal


Setups
Setups Setups
Internal
Setups

External
Setups
External
External External External
External
Setups
Setups Setups Setups
Setups
Lean Building Blocks - Quick Changeover
Reduce Transportation of Tools, Parts, and Materials

An example of
No/Low Cost
Solution
Lean Building Blocks - Quick Changeover
Lean Building Blocks - Plant Layout
Principles of a Good Layout
 Straight-line Flow Pattern when possible
 Backtracking kept to a Minimum
 Predictable Production Time
 Little In-process materials storage
 Open Floor plans so everyone can see what is going on
 Bottlenecks under control
 Workstations close together
 Minimum of material handling
 Easy adjustment to changing conditions
Lean Building Blocks - Plant Layout
An example of Spaghetti Diagram (also known as flow diagram)
Lean Building Blocks - Plant Layout
An example of Spaghetti Diagram (also known as flow diagram)

Operator travelled 3,215 ft. to


get first good piece.
98 minutes from last good
piece of previous run to first
good piece of this run.
Lean Building Blocks - Plant Layout
Retail Example
Lean Building Blocks - Plant Layout
Retail Example
Lean Building Blocks - Plant Layout
Manufacturing Example
Lean Building Blocks - Cellular Manufacturing

Cellular Manufacturing is a model for workplace design, and has


become an integral part of lean manufacturing systems.
Cellular Manufacturing is based upon the principals of Group
Technology, which seeks to take full advantage of the similarity
between parts, through standardization and common
processing.
Lean Building Blocks - Cellular Manufacturing
Cell Design Process
1. Group products
2. Assess demand, establish takt time
3. Review work sequence
4. Balance work load
5. Design cell layout
Lean Building Blocks - Cellular Manufacturing
Cell Design Process
Lean Building Blocks - Cellular Manufacturing
Cell Design Example
Lean Building Blocks - Cellular Manufacturing
Cell Design Example

Before – Parts are processed and moved between different departments in large lots

After – Parts are completed within the sell in small lots


Lean Building Blocks - Cellular Manufacturing
Cell Design Example
Lean Building Blocks - Quality at Source
Source Inspection - Operators must be certain that products they pass
to the next work station are of acceptable quality.
The Relative Cost of Fixing Defects

Own Process End of Line Final Inspection Customer

 Main focus should be on PROCESS QUALITY, not inspection


 Inspection tools:
o Operators have the means to perform inspection at the source,
before they pass it along
o Visible samples or established standards
Lean Building Blocks - Quality at Source

The Relative Cost of Quality (and Manufacturing) during Product Development Cycle
Lean Building Blocks - Value Stream Mapping

A value stream involves all the steps in a process, both value


added and non value added, required to complete a product or
service from beginning to end.

Value Stream

Process 1 Process 2 Process X

Stamping Welding Assembly

Raw Material Finished Product


Lean Building Blocks - Value Stream Mapping
Conceptual View

Product Family Product


Start with a single product family family

Current State
Understanding how things currently Current state
operate. This is the foundation for the drawing

future improvements
future state

Standardize for
Future State Future state
Designing a lean flow drawing

Develop Implementation Plan


Developing a detailed plan of Work plan &
implementation
implementation to support objectives
(what, who, when)
Lean Building Blocks - Value Stream Mapping
Example: Current State

MLT (PLT) = Process Time + Inventory Retention Time


Lean Building Blocks - Value Stream Mapping
Example: Future State

MLT (PLT) = Process Time + Inventory Retention Time


Lean Building Blocks - Value Stream Mapping
Example: Future State

Break Future State into “Loops”


Root Cause Analysis and Problem Solving Tools

Ishikawa’s B7 Tools

Other Tools / Topics


 Deming’s PDCA and A3 Thinking
 Affinity Diagram
 Five Why
 5W (what, why, where, when, who) 2H
(how, how much)
 FMEA (Failure Mode and Effect Analysis)
 Value Engineering
 Mistake Proofing and Jidoka
Root Cause Analysis and Problem Solving Tools
Deming’s PDCA
Data collection and analysis is the foundation for continuous
improvement efforts.

 You Can’t manage what you don’t


measure.
 If you can’t describe what you are
doing as a process, you don’t
know what you are doing. (W. Edward Deming)

Deming is also known for his


PDCA cycle for problem solving.
Root Cause Analysis and Problem Solving Tools
Deming’s PDCA
Deming’s PDCA is a quality improvement model consisting of a logical
sequence of four repetitive steps for continuous improvement and learning

Plan (Stage 1) Do (Stage 2)


o Define the REAL problem o Implement the solutions on a
o Determine the root cause test basis
o Generate alternative solutions
o Decide which alternative to use

Act (Stage 4) Check (Stage 3)


o Institutionalize improvement o Evaluate results and see if the
o Continue the cycle with new problem was REALLY solved
problems in Stage 1 o Goals achieved?
Take action based on what you learned in the check (study) step: If
the change did not work, go through the cycle again with a Data collection and
different plan. If you were successful, incorporate what you
learned from the test into wider changes. Use what you learned to analysis is essential at
plan new improvements, beginning the cycle again. every stage
Root Cause Analysis and Problem Solving Tools
Importance of Data Collection and Information Sharing
Versions of a Process
At Least Three Versions

What you think it is... What it actually is... What you would
like it to be...
Root Cause Analysis and Problem Solving Tools
Mistake Proofing (Poke-Yoke)
Preventing Problems Before they Happen
The term poka-yoke comes from the Japanese words poka (accidental
mistake) and yoke (prevent). Also known as mistake-proofing or
error-proofing.
Shigeo Shingo developed poka-yoke while working at Toyota in the
1960’s. He made a clear distinction between an error and a defect.
 Errors are inevitable - people are human and cannot be expected
to concentrate all the time on the work in front of them or to
understand completely the instructions they are given.
 Defects are avoidable – and result from allowing a mistake to go
undetected.
The principle behind poka-yoke is to design your process so that
mistakes are impossible or at least easily detected and corrected.
Root Cause Analysis and Problem Solving Tools
Mistake Proofing (Poke-Yoke) - Example
Root Cause Analysis and Problem Solving Tools
Mistake Proofing (Poke-Yoke) - Examples
Root Cause Analysis and Problem Solving Tools
Mistake Proofing (Poke-Yoke) - Example
File Cabinet
Customer (supplier): Office equipment
user
Potential Error: File cabinet tipping
over due to multiple top drawers open
Poka-Yoke: Only one drawer can be
opened at a time
Root Cause Analysis and Problem Solving Tools
Mistake Proofing (Poke-Yoke) - Example
Highway Bridges Clearance Signs
Customer (supplier): Drivers of tall vehicles
Potential Error: Vehicles crashing into bridge, tunnel, parking
facility, etc.
Poka-Yoke: Signs or devices to inform driver of vehicle height
restrictions Over-height vehicle
is detected by OVDS

Electronic signal
warns the driver
(visual and audio)
Root Cause Analysis and Problem Solving Tools
Mistake Proofing (Poke-Yoke) - Example
Root Cause Analysis and Problem Solving Tools
Mistake Proofing (Poke-Yoke) - Example

The parts have to be between 0.210” - 0.190”


Root Cause Analysis and Problem Solving Tools
Mistake Proofing (Poke-Yoke) - Example
LEAN ENTERPRISE BUILDING BLOCKS

Tools and Systems


for Increasing
Productivity

PART II
Lean Building Blocks
Managing Flow and Theory of Constraints
LEAN Building Blocks

Continuous Improvement

Managing Flow Cellular Manufacturing TPM

POUS Quality at Source Quick Changeover

Standardized Work Batch Reduction Teams Value


Stream
Visual 5S System Plant Layout Mapping

Root Cause Analysis and Problem Solving Tools


Lean Building Blocks - Managing Flow
Inventory Overview
Work-In-Process

1 2 3 4

1 2 3 4 5 6

Raw 1 2 3 4 5 Finished
Materials Goods

$ $ $
$ Invested

HIGH MEDIUM LOW


Flexibility
Lean Building Blocks - Managing Flow
Inventory Overview
Inventory as a hedge against uncertainties and problems

Inventory Hides Waste


Excess inventory is the root of all evil (Kiyoshi Suzaki, The New Manufacturing Challenge)
Lean Building Blocks - Managing Flow
Inventory Overview

Inventory is a measure of
total manufacturing
effectiveness
Inventory Overview - The Strategic Nature of Inventory
The size of your inventory relates directly to the percent of your
lead time that is non-value-added!
Inventory Overview - The Strategic Nature of Inventory
The size of your inventory relates directly to the percent of your
lead time that is non-value-added!

How to
Transition ?

Applying lean tools and


methodologies including
pull/kanban system
Inventory Overview - The Strategic Nature of Inventory

Key Inventory Measure

      


 
   

Company Inventory Turns Turn Days


Average U.S. Manufacturer 7-8 45 - 52
Harley Davidson 21 17
Black & Decker 37 10
Average U.S. Grocery Store 50 7
Toyota 80 - 100 3.7 – 4.7
7-11 Stores 300 + ~1
Lean Building Blocks - Managing Flow
Push vs. Pull System
Information Flow

Batch Batch
and and
Queue Queue

Process Process Process Customer


Supplier
A B C
Raw WIP WIP FG

Parts Flow
Push System
 Production is based on anticipated need dates (forecast).
 High utilization and high efficiency drive performance.
 Bottlenecks are hidden and lead times expanded.
 Maintaining flow is costly.
Lean Building Blocks - Managing Flow
Push vs. Pull System
Information Flow Kanban

Process Process Process Customer


Supplier
A B C

RM FG

Parts Flow
Pull System
 Production is based on actual consumption rates.
 Collapsing lead times; simplified scheduling.
 Improving flow drives performance.
 Material flow is regulated by a visual system which is also referred to as a
“kanban” system.
Lean Building Blocks - Managing Flow
Kanban

 Signals used to operate the pull


system
 Signal to Produce or Convey
 Includes information about: What,
When, Where, How Much
 May include outside suppliers
 Can take many forms
o Empty space
o Empty containers
o Kanban cards
o Trigger boards
o Electronic signals
o Computer signals
o Etc.
Lean Building Blocks - Managing Flow
Kanban Examples

1. When the oil reaches the white


level reordering occurs
2. Kanban card containing
reordering information
Lean Building Blocks - Managing Flow
Kanban Examples

The Vending Machine


A great illustration to show how a pull system works is the vending machine.
In a typical scenario, the customer pulls product from the vending machine –
the exact item, quantity wanted, and at the time it is needed. Then, the
supplier replenishes only the items that need to be replaced.
Lean Building Blocks - Managing Flow
Kanban Examples

Pull-Kanban Simple Demo (1:03 minutes)


Lean Building Blocks - Managing Flow
Kanban Examples

o Kanban signals
o Empty space
o Kanban cards
o Internal suppliers
o External suppliers

Setups
Lot sizes
Machine breakdowns
Other disruptions

Pull-Kanban Simple Demo (1:03 minutes)


Lean Building Blocks - Managing Flow
Kanban Examples
An information system for:
 Controlling and improving the flow of materials and
information
 Allocating resources based on actual consumption not on
forecasted demand.

A Pull System is Flexible and Simple


 Eliminates waste of handling, storage, expediting,
obsolescence, repair, rework, facilities, equipment, excess
inventory (work-in-process & finished).
 Provides visual control of resources.

Pull and Kanban together define the concept of Just-in-Time


Lean Building Blocks - Managing Flow
Pull/Kanban and Just-in-Time

Pull and Kanban together define the concept of Just-in-Time


Lean Building Blocks - Managing Flow
Push vs. Pull - Do You Push or Pull?
Lean Building Blocks - Managing Flow
Push vs. Pull
Lean Building Blocks - Managing Flow
Push vs. Pull
Lean Building Blocks - Managing Flow
Use of Kanban Throughout the Supply Chain

What is Kanban: To Do, Doing, Done (00.54 minutes)


Lean Building Blocks - Managing Flow
Managing Constraint Operations
Work-In-Process

1 2 3 4 5 6

Raw Finished
Materials Constraint Operation Goods

 The constraint operation determines overall


capacity of production line. It is the weakest link!

Pipeline Analogy
 Which part of the pipe is restricting the flow?
 Would making parts A or D bigger help?
Lean Building Blocks - Managing Flow
Managing Constraint Operations
Work-In-Process

1 2 3 4 5 6

Raw Finished
Materials Constraint Operation Goods

 The constraint operation determines overall


capacity of production line. It is the weakest link!

 To protect the constraint capacity, when needed, a buffer to


protect the against fluctuations might help so it is never idle,
and maximum potential capacity can be maintained.
Lean Building Blocks - Managing Flow
Managing Constraint Operations

Three critical questions related to the constraint


operation:
 Where is the constraint?
 Why is it the constraint?
 What must be done so that it is no longer the
constraint?

In order to increase capacity of the


production line (value stream), the constraint
operation must be studied and measures put
in place to remove all waste (e.g., scrap,
setup time, downtime, wait time)
Lean Building Blocks - Managing Flow
Managing Constraint Operations

In-class Exercise
Theory of Constraints
LEAN Building Blocks
SUMMARY

Continuous Improvement

Managing Flow Cellular Manufacturing TPM

POUS Quality at Source Quick Changeover

Standardized Work Batch Reduction Teams Value


Stream
Visual 5S System Plant Layout Mapping

Root Cause Analysis and Problem Solving Tools


LEAN ENTERPRISE BUILDING BLOCKS

Tools and Systems


for Increasing
Productivity

Presenter
Reza Maleki, Ph.D., P.E., C.Mfg.E.
Senior Business Advisor

Reza Maleki * RezaM@ImpactDakota.com * (701) 367-8664

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