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Lean Enterprise Building Blocks Lean Enterprise Building Blocks Lean Enterprise Building Blocks Lean Enterprise Building Blocks
Lean Enterprise Building Blocks Lean Enterprise Building Blocks Lean Enterprise Building Blocks Lean Enterprise Building Blocks
Lean Enterprise Building Blocks Lean Enterprise Building Blocks Lean Enterprise Building Blocks Lean Enterprise Building Blocks
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
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
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
Observe, Document,
and Analyze Processes
PROCESS
Y N
PROCESS
Productivity - Input/output Model
General Approach to Improving Productivity
Develope Recommendations
for Improved Processes
PROCESS
Y N
PROCESS
Productivity - Input/output Model
General Approach to Improving Productivity
Develope Recommendations
for Improved Processes
How?
Lean Approach
Lean Definition
Key Term:
None-value added activities (as opposed to value-added activities)
Lean Definition
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
Adding
Value
Waste
Total Time
Improving Productivity
Adding
Value
Waste
Total Time
Improving Productivity
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
Price
Profit Profit
Cost Cost
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
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.
Original
Process
Process
after
removing
Wastes
Waste
Waste (Muda in Japanese)
Defects D
Over-production O
8 Basic Wastes
Continuous Improvement
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
In-class Exercise
The 5S Numbers Game
Lean Building Blocks - Visual Systems
Standard (revised)
Standard (revised)
Standard (baseline)
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
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)
Before – Parts are processed and moved between different departments in large lots
The Relative Cost of Quality (and Manufacturing) during Product Development Cycle
Lean Building Blocks - Value Stream Mapping
Value Stream
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
Ishikawa’s B7 Tools
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
PART II
Lean Building Blocks
Managing Flow and Theory of Constraints
LEAN Building Blocks
Continuous Improvement
1 2 3 4
1 2 3 4 5 6
Raw 1 2 3 4 5 Finished
Materials Goods
$ $ $
$ Invested
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 ?
Batch Batch
and and
Queue Queue
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
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
o Kanban signals
o Empty space
o Kanban cards
o Internal suppliers
o External suppliers
Setups
Lot sizes
Machine breakdowns
Other disruptions
1 2 3 4 5 6
Raw Finished
Materials Constraint Operation Goods
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
In-class Exercise
Theory of Constraints
LEAN Building Blocks
SUMMARY
Continuous Improvement
Presenter
Reza Maleki, Ph.D., P.E., C.Mfg.E.
Senior Business Advisor