Mars India

Lean Enterprise Roll Out

Lean Basics 1
Lean Basics 1

Expectations
Open Discussion Learn from each other In Lean, the learning never stops It is a Continuous Process Discussion topics If we had to advise Paul Michaels how to roll out lean to all of Mars, Inc what would we say? 1 Expectation (Session)

The idea is to discuss everything here, if not we can park it & come back later

What Executives (Really) need to Know

98% of Organisations that engage with Lean, Fail!! WHY??? Lean is HARD!!!

Lean Thinking
Its a people issue. Thats why its so hard. Getting people to change to do things differently than they have done them is really, really hard.
Art

Byrne, CEO Wiremold

If a company is really maniacal about Lean it takes two to three years to go from kindergarten to first grade. Thats how tough it is.
Mark

DeLuzio, architect of the Danaher Business System, Danaher

Excerpts from the book Lean Machines

What Executives (Really) need to Know

Lean Thinking Thinking process, that Delivers Customer Value

Lean requires experienced managers and Execs to change what they Know and have done for many years! Lean Thinking requires Courage! Lean Thinking is about removing safety nets and exposing problems Lean Thinking is about making problems Ugly so they can be resolved Sometimes it is not good enough to improve a process - you have to change it Completely Lean Thinking is an understanding that lean is about Cultural change NOT a quick Fix Lean Thinking is about asking WHY? and Challenging what we have defined as the NORM Lean Thinking requires us to view our own Discipline to process in the same way as we view Quality of Product or Service- LEAD BY EXAMPLE Lean Thinking is an Understanding that $ savings are Consequential, not a Driver. Lean Thinking Is about Teaching everyone we interact with, what Lean Thinking is. LEAN THINKING STARTS WITH THE MANAGEMENT, US!!!!!

Where did Lean begin ?

Production (and Supply Chain) system made famous by Toyota Developed over 40 years Toyota was in Crisis in the 50s Today is the most profitable car manufacturer in the world Currently #2 behind GM on sales Founder Taiichi Ohno Year 2003: Growth 24%, $8.13 billion profit, larger than combined GM, Ford, Chrysler. Net Profit Margin 8.3 times industry average, ROA 8 times industry average

Development of Lean Production Systems

The development of Lean Production Systems is highly related to the development of the automotive industry and its market structure
Price, Quantity Fordism + Quality Taylorism

Mass Production Quality driven production

Flexibility (TPS) + Time

Quantity per Product

Flexible Production Quick response production

+ Innovation

Craftman`s Production Number of different products (Variety)

Innovative Production

LEAN

Source: Womack and Jones: The Machine that Changed the World

Overview & Scope

Lean manufacturing is a generic process management philosophy derived mostly from the Toyota Production system (TPS) but also from other sources. It is renowned for its focus on reduction of 'seven wastes' in order to improve overall customer value. Toyota's achievement made "Lean" a hot topic in management science in the first decade of the 21st century. Lean Manufacturing can be defined as: "A systematic approach to identifying and eliminating waste (non-valueadded activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection."

What Makes Toyota So Successful

The Concept of Kaizen A team culture established at the root of peoples behaviors
D S T

Improvement Level

kaizen

Standardization

Before improvements have an opportunity to degrade, the team is on to the next improvement.

Time

Quote from Toyota

Our competitors achieve average results, with brilliant people working on broken processes. At Toyota, we achieve brilliant results, with average people working on brilliant processes
Taiichi Ohno, Toyota

People Involvement - Leadership - Team work

Process Improvement - Reduce Waste

KAIZEN A CHANGE FOR THE BETTER

Problem Investigation - Reduced Concerns

Perpetual Improvement - Innovation

Kaizen

Consider how computer storage media has continuously improved over 30 years

16GB USB Flash Memory

64,000 times more storage

The Universal Lean Principles Value Stream

Identify the Value Stream and remove all the Wastes

Value
Correctly Specify Value of Product/Service with Customer in mind

Flow
Make the Product and Value Flow Smoothly

Pull Perfection
Wastes Elimination as an Ongoing Process towards Perfection Produce only to the Pull of Customer Demand

What is the Value Stream?

Mars : Suppliers

Mars India : Plant/Service Repair Shop

Mars : Customer

TOTAL Value Stream

See the Whole Process from Start to Finish See the Whole Process from Start to Finish

Lean
Is a business system involving all employees which constantly pursues the elimination of waste and variation in all business processes.

Value needs to flow through to the Customer

Supplier

MFG

Customer

Information Flow (DEMAND) Material Flow (SUPPLY)

Approach: Speed versus Stock

Lean Production approaches Customer Service differently to traditional thinking
Traditional Thinking High Stocks = High Customer Service Lean Thinking Short Throughput times = High Responsiveness

Slow Forecast based Heavy High Stocks

Speed, Flexibility, Responsiveness

Aims of Lean Production

The prime objective of a lean production, is the improvement of Quality, Costs and Delivery service

Quality

Motivation Costs Delivery service

Customer satisfaction

Relationships: Quality, Cost, and Service

The interrelationships between the three factors is not the same

Q may influence C: Positive, because if sales rise then fixed overheads are reduced. C must not influence Q: Costs can for instance be influenced by purchasing in cheap raw materials

Quality

Q may influence S: Good process and component quality makes it easier to deliver punctually. S may influence Q: Good process quality cuts throughput times. These are the result of lower WIP which pressures the process to solve quality problems.

Costs
S may influence C: Punctual delivery is achieved (penalties for late delivery can be avoided). C must not influence S: Larger packaging containers can be a means of reducing costs, but this is not in accordance with the JITVision, since their throughput time is

Service

Traditional Thinking Vs Lean Thinking

Price Price
ofi Pr os t C t

Price
Pr of it Co st

Price

Traditional thinking Cost + Profit = Price

Lean thinking Price-Cost = Profit

Lean is based on reducing cost than raising prices

Fundamental Principle of LEAN

Anything that does not add value to the product is waste and must be reduced or eliminated

Defining Value
Value Added Activity

Something customers are willing to pay for - AND changes the form, fit, or function of materials or information - AND Is being done right the first time.
Non -Value Added Activity

All other actions and unwanted features are by definitionWASTE adding no value to the customer.simply raise costs in our business!
Before After

Time
Value Added Work Non Value Added Work

Eliminate Non-Value Added Activity Eliminate Non-Value Added Activity

Understanding & Eliminating Waste Observe that 2 Things are ALWAYS Happening. . . Things that should be done Things that should not be done
Before After

WORK WASTE

Time
Value Added Work Non Value Added Work

ItEither Adds Value or Does Not ItEither Adds Value or Does Not

Value Adding: Example

Anti Lean Garage Auto Repair Estimate:
Filling out Customer Information Moving the auto into the garage Preparing auto for inspection Coffee Break Looking for parts Working on auto Lunch Working on auto Coffee Break Moving auto out of garage Explanation of estimate with cust. Total Hours 0.50 0.10 0.50 0.25 1.00 2.00 1.00 1.50 0.25 0.10 0.50 hrs hrs hrs hrs hrs hrs hrs hrs hrs hrs hrs
If this was your vehicle, what would you be willing to pay for?

What steps are Value Added?

What steps are Non-Value Added?

7.70 hrs

Enemies of Lean Manufacturing

Waste
Work which does not increase the value of the product (e.g. rework due to wrongly assembled parts or operator waiting-time while machine is running.)

Value added Elements of work

Value added
Work that directly increases the value of the product (e.g. assembly of parts)

Waste

Objective

Incidental work ( Value Enable ) Incidental Work (Value Enable)

The objective is to maximize the value added part by eliminating waste and incidental work

Non value added, but necessary work (e.g. small movements to reach for material for assembly, quality-checks)

WASTE IS WORK THAT ADDS COST BUT DOES NOT ADD VALUE

Understanding & Eliminating Waste

Begin by learning the FUNDAMENTALS. If you learn the wrong ideas about fundamental matters, you are likely to continue to make mistakes later, no matter how enthusiastic you are about implementing improvements.

The Seven Types of Waste

Defects Overproduction Inventory Motion Processing Transactions Transportation Waiting

Waste Exists In Every ProcessEliminate It! Waste Exists In Every ProcessEliminate It!

Waste #1 Defects
1 4

Defects

Over Production

Upsets Customers Consumes Resources Chokes Flow

Inventory

Motion

Processing Transactions

Transportation

Waiting

Reworking Defects Is WastefulSending Them to Customers is Outrageous Reworking Defects Is WastefulSending Them to Customers is Outrageous

Waste #2 Over-Production
Defects 2 4

Over Production

Ties Up Working Capital Takes Up Floor Space Hides Process Problems

Inventory

Motion

Processing Transactions

Transportation

Waiting

Do Not Produce What the Customer Does Not Need Do Not Produce What the Customer Does Not Need

Waste #3 Inventory
Defects

Over Production 3 4

Inventory

Ties Up Working Capital Takes Valuable Space Risk of Obsolescence

Poor product quality Frequent breakdowns

Motion Long changeovers

Processing Transactions

Inventory levels
High spoilage Unplanned stoppages Slow running

Transportation

Waiting

Waste Asks For More Waste Waste Asks For More Waste

Waste #4 Motion
???
Defects

Over Production

sitting

searching

turning around

w alking

Inventory

Motion Motion

Processing Transactions

Ergonomic Concerns Labor Efficiency Wasted Cycle Time Before

clim g bin

choosin g

bend ing over

lying dow n

After

Transportation

Waiting

Treat Operators as SurgeonsEverything Within Reach Treat Operators as SurgeonsEverything Within Reach

Waste # 5 Processing Transactions

Defects

Over Production

Manual Entry of Information

Inventory

Motion

5 4

Processing Motion Transactions

Creates Delay Increased Opportunity for More Defects Doesnt Add Value By Definition

Transportation

Waiting

Match Physical Movement With Systemic Match Physical Movement With Systemic TransactionStrive for 1:1 Ratio TransactionStrive for 1:1 Ratio

Waste #6 Transportation
Defects

This is what your striving for

Orbital Weld
Flex

Over Production

Weld

End Finish

Weld

End Finish

Inventory

Torch Braze Mech. Clean Mech. Clean Mark Hydro Test

Motion

Processing Transactions

6 4 Motion Transportation

Requires Equipment Increases Handling Damage NecessaryMust Minimize

Waiting

Machines Next to Each OtherTransport Time Minimized Machines Next to Each OtherTransport Time Minimized

Waste #7 Waiting
Defects

Over Production

Inventory

Motion

Processing Transactions

Transportation

7 4

Waiting Motion

Increases Lead Time Increases Work in Process Slows Response to Customer

When Inventory Waits Your Customer Waits When Inventory Waits Your Customer Waits

Summary The Seven Types of Waste

1. 2. 3. 4. 5. 6. 7. Defects Overproduction Inventory Motion Processing Transactions Transportation Waiting

Lean: Identify the Waste & Eliminate It! Lean: Identify the Waste & Eliminate It!

Wastes Transactional Examples

Transportation
Retrieving or storing files Going to get signatures Going to copy machine or fax

Inventory

Motion

Open projects E-mails unread Office supplies Unused records in database

Searching for files / handling paperwork Gathering information Extra key strokes Handoffs

Waiting

Over-Processing
Repeated manual entry of data Use of inappropriate software Use of outdated forms

Defects / Rejects/ Re-work

Data entry errors Pricing error Missing information

Waiting for Faxes System to come up Customer response A handed-off file to come back

Over-Production

Unused Creativity

More information than customer needs Wasted ideas from the Creating reports no one reads team Making extra copies

The Lean Model

Zero Defect

Pillar 1: One Piece Flow

Vision in Assembly Industry

The process orientation principle in the assembly area means working hand in hand
Batch production Flow- production

Lengthy lead times due to buffer stocks

Reducing lead time by eliminating buffer stocks

Isolated Processes

Coupled Processes, Quick Changeovers

What is impact of Throughput time, Quality, Reliability, Stocks, Responsiveness, Flexiblity, Freshness, ROTA, Utilisation, FIFO, Changeover time, Age ?

Process Industry Vision

Coupling of Processes
Batch production Flow production

Lengthy lead times caused by buffer stocks

Reducing lead times by eliminating buffer stocks

What is impact of Quality, Reliability, Stocks, Responsiveness, Flexiblity, Freshness, ROTA, Utilisation, FIFO, Changeover time ?

Value Stream Mapping

Value Chain

Current State Map

Future State Map

Tactical Implementation Plan

Levels of Mapping

Process Level Process Level

Single Plant Single Plant ((door to door )) door to door

Multiple Plants Multiple Plants

Across Companies Across Companies

Can Be Used at Any Level in the Business Can Be Used at Any Level in the Business

Why do Value Stream Mapping?

Understand current situation - Big picture point of view Shows the ratio of Non-Value Added to Value Added Time Exposes sources of waste - not just waste Shows linkage between the seven types of flow

Forms the Blueprint for a Lean Implementation Plan Forms the Blueprint for a Lean Implementation Plan

How do we Start?
Identify the Value Stream for every major product family / program Concept to launch - Order to delivery

Product Family Product Family

Map the current state - Identify all the actions that dont create value (VA/NVA/VE) Develop and map concepts for the future state as a management team & communicate your vision to your team. Develop metrics & determine goals How will Success be measured? Develop actions and drive toward future state

Current State Current State Drawing Drawing Future State Future State Drawing Drawing Implementation Implementation Plan Plan

3G
Genchi Genbutsu Gemba

Guidelines for Mapping Start at the customer and work backwards Walk the actual flows Dont Map the Organization but the flow through it Dont be too detailed this is an overview Use pencil not power pointquick and crude

Pretend you are the Part And follow the path part flows Pretend you are the Part And follow the path part flows

Current/Initial State Map

Vendor Managed Inventory (VMI)

Forecast Firm Order

Mars India

Forecast 3-mo Firm Biweekly

AVG TAKT TIME* Mod 1: 194 sec/pc L5: 415 sec/pc

Customer

BAX

On Demand

Loading Plan weekly daily Pick List 36 hrs

SMT/ICT LINE

Daily Schedule

Weekly Schedule Daily Traveler s

1-2 Day Ship

Pack Plan Daily Schedul e

LEVEL 3

LEVEL 5

KITTING

CONVERSION

BOTTOM Yield=99.%

TOP Yield=98.6%

MIDDLE** Yield=73.2%

BACK-END Yield=78.6%
Traffic Intersection

Finished Goods Store

Kitting Racks

Kits

1 h** 6h

1 h*** 6h 4h

0.24 h 2h 0.2 h

0.25 h 2.7 h 0.5 h

0.54 h 26.3 h 15.6 h

7.8 h 13.7 h 28.4 h 34.6 h

8.9 h 8.2 h 1 h 19.4 h

3% Value Added Time97% Waste 3% Value Added Time97% Waste

Current/Initial State Map

Vendor Managed Inventory (VMI)

Forecast Firm Order

Mars India

Forecast 3-mo Firm Biweekly

CISCO

Too Much Variation

BAX

Too Much Variation

Daily Schedule

AVG TAKT TIME* Mod 1: 194 sec/pc L5: 415 sec/pc

On Demand

Loading Plan weekly daily Pick List 36 hrs

Weekly Schedule Daily Traveler s

1-2 Day Ship

Pack Plan Daily Schedul Long e

LEVEL 3

Too Much Inventory

KITTING CONVERSION

Long Set Ups

Batch

Set Ups
LEVEL 5

SMT/ICT LINE BOTTOM TOP Yield=98.6% MIDDLE** Yield=73.2%

Batch

Batch
BACK-END Yield=78.6%

Too Much Inventory

Finished Goods Store

Yield=99.%
Kitting Racks

Batch

Kits

Batch
0.24 h 0.25 h 2h 0.2 h 2.7 h 0.5 h

Traffic Too Much Intersection Too Much Variation Variation

1 h** 6h

1 h*** 6h 4h

0.54 h 26.3 h 15.6 h

7.8 h 13.7 h 28.4 h 34.6 h

8.9 h 8.2 h 1 h 19.4 h

Clearly Identifies Opportunities to Drive Sustainable Change Clearly Identifies Opportunities to Drive Sustainable Change

Pillar 2: Pull System

Push and Pull System

Note the role of the PPS

Information (PPS system)

Information (PPS system)

Detailed info.

Push system
Key: Material flow Information

Pull system

Push System: High Stocks, Low Flexibility

With a PPS, production or shipment takes place independently of product consumption in the following process. A high level of stock in a PPS is the result of disturbance factors in the process, such as machine or assembly line stoppages, incorrect parts, change in consumption etc.

Push

Long throughput times requires long term planning leads to uncertain forecasts Long term planning little trust in the planning figures build-up of buffer stocks Buffer stocks are incorporated into store planning Changes to the production plan lead to overproduction and incorrect products in market Machine stoppages etc. call for fire fighting measures

Characteristic problems of a push system:

High stock levels Poor flexibility Poor Availability

Pull Element: Fill-up principle

The pull system functions according to the fill-up principle in which the following process replenishes used parts by pulling them from the preceding process

Pain threshold reached for storing parts in the following process

Pain threshold reached for storing parts in the preceding process

Vision of synchronous production

The vision of a synchronous production is where the preceding process supplies the following process without any buffer stock

Reduction of batch sizes Reduction of throughput times

Consumption controlled production with a supermarket

Synchronous production

Vision in Assembly Industry

The process orientation principle in the assembly area means working hand in hand
Batch production Flow- production

Lengthy lead times due to buffer stocks

Reducing lead time by eliminating buffer stocks

Isolated Processes

Coupled Processes, Quick Changeovers

What is impact of Throughput time, Quality, Reliability, Stocks, Responsiveness, Flexiblity, Freshness, ROTA, Utilisation, FIFO, Changeover time, Age ?

Process Industry Vision

Coupling of Processes
Batch production Flow production

Lengthy lead times caused by buffer stocks

Reducing lead times by eliminating buffer stocks

What is impact of Quality, Reliability, Stocks, Responsiveness, Flexiblity, Freshness, ROTA, Utilisation, FIFO, Changeover time ?

Pull System
How to maintain a Pull System on decoupled processes?

Raw materials

Customer or Finished Goods

The first aim is Couple all processes, then Pull becomes integrated and Throughput times and Stocks remain low. However, when there is spacial separation of processes, how can we can create Pull?

Pull Element: Supermarket

A simple overview of Work In Process can be obtained through the introduction of supermarkets

Setting up of supermarkets

No overview of stocks

Overview of stocks

Supermarket Features
Fixed locations, Quantity, Visualization and the Fill-up principle are characteristics of a supermarket
The supermarket controls the previous process according to the principle Whats gone must be replenished.

Every part has a pre-determined location and quantity in a supermarket.

Raw material

Process

Supermarket

KANBAN Separation of information and container

A KANBAN card is a further development of the multi container system in which the container and information are separated

Container Benefits:

KANBAN card = Information

Standardization of the containers Quicker information flow

KANBAN Multi-Bin system

The most simple form of KANBAN is the multi-bin system

The arrival of an empty container immediately sets off the production of a new part required for that specific container.

Every part is assigned to a clearly marked container.

Parts are transported to the following process in the appropriate container.

KANBAN Cycle
The four stages in a KANBAN cycle represent the information and material flows at production level
2. The KANBAN card is brought to the preceding process. 1. The following process places the KANBAN card in a KANBAN box when removing the first part from the container.

3. The full container is taken from the preceding processs supermarket along with the KANBAN card.

4. The container is transported to the following process together with the KANBAN card.

Supplier KANBAN Practical example

The supplier KANBAN controls the logistics between the supplier and the customer
Transport KANBAN
2. The truck driver removes the KANBANS from the mail box and brings them to the supplier.

Information

1. When taking out the first part from the parts container, the KANBAN is removed and placed in a KANBAN mail box. The KANBANs are collected and sorted according to supplier.

Material flow Supplier Customer

3. At the suppliers, the KANBANs are attached to the containers with finished goods.

4. The products together with KANBAN are delivered to the customer according to the delivery cycle.

Planning Systems and Forecast

Not able to control material and information flows, due to the complex and overriding production system

Annual planning

Monthly / weekly planning

What is the role of the forecast in each system?

The pull system differs in that the Planning* is done directly at shop floor level to ensure a direct information and material flow between the processes
Annual planning

*
replenishmen t

Monthly / weekly planning

Supply Chain Control

Supply Chain Control

Workshop / Gemba

Workshop / Gemba

Push System

Pull System

Pillar 3: Takt Time

Calculate Takt Time

12. Calculate Takt Time
TAKT Time
The Heartbeat of the Business

TAKT TIME
Determine Build Strategy

= Customer Forecast

Available time

TAKT TIME is just Mathematics, but is Fundamental to Lean AVAILABLE TIME: Total amount of TIME allocated for production DEMAND: qty of scheduled parts for a given time frame each shift has ~ 6.5 hrs available - this is a constant! 6.5 hrs is used to account for lunches, breaks, etc... EXAMPLE Available Time = 60 min/hr x 6.5 hrs/shift x 2 shifts/day x 5 days/wk = 3900 min/wk Your customer demand is 90 pcs per week

Calculate Takt Time

TAKT Time =

3900 min/wk 90 pcs/wk

= 43 min/pc

Fluctuations in Demand

Starting situation: Sales volume fluctuates due to: Seasonality Advertising Promotions Competitors Activities exchange rate fluctuations ... Demand behaviour

Volume

Upper Limit

Effects on the business: - Need to lower or increase the normal factory capacity

planned amount

Lower Limit

Sales

N D Months

2 3 Week

Time

TIME-DISPLACED SALES AND PRODUCTION PLAN

Any attempt to produce in accordance with the market mostly ends in the displacement of production phases
Production mostly fulfils sales requirements, but with a time delay. In this way, the following effects on the company are strengthened: A: Overloading Examples: -supply bottlenecks at suppliers -impaired quality due to deadline pressure -discouragement of the employees -overtime, special shifts -new recruitments, outsourcing B: Underloading Examples: -machinery idle -filling up the stores -discouragement of the employees -redundancies, short-time work -model offensive, insourcing
(A)

Phase displacement / anti-cyclical production

Load

Actual load

Overloading

Underloading

(B)

Demanded load

M A

M J

O N D

Months

MARKET-SYNCHRONISED PRODUCTION
The vision of the complete synchronization of demand and production volume cannot be implemented in practice
Ideal case/vision synchronization
Volume (units)

Synchronization: Production volume is identical with the sales volume and adjusts quickly to market demand. In practice, this adjustment is often not possible. Reasons for this are for example: - inflexible work time models - sluggish information flow - time-consuming material procurement - insufficient employee qualifications - lack of planning instruments - capacities must be geared to max. values danger of over-capacity - ...

Production

Upper AFL* planned amount

Demand

Lower AFL*

N D Months

* Amount Fluctuation Limit

Synchronised Supply Chain

The aim is to approach the vision of production synchronized with the market with the aid of the cycle-time method
Phase postponement / anti-cyclical production
Full capacity

Continuous production volume over a long period

Volume (units)

(A) + Overload

Actual full capacity

Cycle-time method

upper AFL* Production Plan volume

Underload

(B)

Demand-led full capacity

Demand

lower AFL*

N D Months

N D Months

* Amount Fluctuation Limit

Features: Capacity problems Capacity utilization problems Quality problems High costs

Features: Constant personnel numbers Purchase volumes can be planned and machines run at full capacity Standardized processes

Levelling Out of Production

The aim of just-in-time production is to approach the ideal situation by leveling out production
Preliminary steps: 1. Daily production volume is held constant over a longer period 2. Slight fluctuations in demand are compensated for by a finished goods store or flexible working times 3. Major fluctuations in demand are recognized by the sales department in good time and passed on to production planning Direct effects on the company: - purchase volumes are plannable - personnel numbers are constant - deadlines are clearly seen - rapid recognition of problems
J F M A M J J A S O N D Months

Continuous production volume over a longer period

Volume (units)

Upper AFL* Production planned amount

Demand

Lower AFL*

DEFINITION OF CYCLE TIME

The time needed for a processing cycle is termed cycle time

Cycle time

4 4 3 3 2 1 Processing cycle 1 2 1 Processing cycle 2

Work content
4 3 2 1 Processing cycle 3

1 Processing cycle 4

EFFECTS OF DIFFERING CYCLE TIMES

In an optimum cycle distribution, the associates cycle time corresponds to the customers cycle time

Customer cycle/ cycle time (available time)

Cycle time (required time)

Waiting time or over-production Overtime or additional personnel

Uniform utilization of capacity

PLANNING CRITERIA
In any change to the customer cycle, important points need to be observed

Parameters Employees

Criteria Qualification, learning phase, personnel availability, work safety

Logistics

Transport routes, loading equipment, multi-handling, supply cycles

Plant and machinery

Monuments, space requirement, fire safety zones, machine running times, tools, workplaces

Production process

Production control, assembly order, process times, obvious waste

Pillar 4: Zero Defects

Zero Defects
The direct coupling of processes in Flow production principle is not sufficient to represent a just-in-time-production correctly

80 %

80 %

80 %

80 %

80 %

80 %

80 %

80 %

Total availability = ? 80 %

Total availability = ? 41 %

Process stability = 100% Availability

Perfect Quality
There are several tools available to increase process quality

Perfect Quality
TPM

Poka Yoke, 5S

Zero-defect program

Process stability

Fault prevention
Jidoka

Removal of process problems Autonomous maintenance Planned maintenance Employee qualification

Fault recognition Fault feedback

Andon Boards

Fault correction

5 Whys?

Summary: The Lean Model

Lean, JIT, 5Rs Production System Philosophy Customer satisfaction Q,S,V

Quality

Service
The Four Pillars

Value

Continuous Improvement

One Piece Flow

Pull System

Takt Time

Zero Defect

Use of Tools and Methods

eg. Poke Yoke, 5S, TPM, Heijunka

Associate Engagement Mutual Trust between Associates and Management

Impact on the Workers

Respect for Humanity

Tools: The 5 Steps of Applying Lean

Specify Value by Offering Understand and specify what adds value from the perspective of the customer

Value Stream Mapping

Identify steps in the whole value stream to highlight waste Create a continuous flow of activities along the value stream

Make the Offering Flow

Only carry out activities in response to pull from the customer

At the Pull of the Customer In Pursuit of Perfection

Strive for perfection by continually creating value and removing successive layers of waste

LEAN MANUFACTURING
-Continuous Improvement is a journey & not a destination. It is not the big that eats the small. It is the fast that beats the slow

LETS MARK OUR BEGINNING TODAY