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  1. LEAN ENTERPRISE Training • Lean Enterprise Overview • The Rules of Lean • The Tools of Lean • Example from John Deere • Example from Aerospace • Preparation for Kaizen

  2. LEAN ENTERPRISE • Every morning in Africa, a gazelle wakes up; it knows it must run faster than the fastest lion or it will be killed. • Every morning in Africa, a lion wakes up; it knows it must outrun the slowest gazelle or it will starve to death. • It doesn’t matter whether you • are a lion or a gazelle: • When the sun comes up, • you had better be running.

  3. Definition of Lean Enterprise • A process to provide ever greater value to customers by continually eliminating waste from the value delivery system. • Also known as the Toyota Production System. Continuous Improvement

  4. Why Lean Enterprise? • - Sustainable competitive advantage SURVIVAL!

  5. Lean Enterprise OpEx at Crane • Emphasizes Lean Enterprise and Six Sigma • Today we are dealing with Lean

  6. The Lean Ideal The output of people or machines: • Is defect free (conforms to the customers expectations) • Can be delivered one request at a time (economic batch size of one) • Can be supplied on demand in the version requested • Can be delivered immediately • Can be produced without wasting any materials, labor, energy or other resources (such as costs associated with inventory) Can be produced in a work environment that is safe physically, emotionally, and professionally for every employee.

  7. LEAN ENTERPRISE • Characteristics of a Lean Enterprise • Fifty inventory turns for repetitive products • One-day lead time for repetitive products • Zero dppm customer perceived defects • Three years without down equipment affecting production • People and equipment organized by product production process • Short cycle time paperwork processes. Orders processed in <1 hour • All internal suppliers on kanban pull • All external suppliers of linearly consumed part numbers on kanban pull • No incoming inspection • Design engineering uses lean tools (DFM/DFA, product and process FMEA’S, etc.)

  8. LEAN ENTERPRISE • Dramatic (>50%) improvement in: • Throughput time • Inventory turns • Quality • Total cost • New Product Development • Market share • Profits

  9. Lean Manufacturing Strategy Key Initiatives Ship to Want Date Bar Code Transactions EDI Reduce Lead-Time Reduce Inventory Vendor Forecasting KanBan Sizing Liase with Com Teams Supplier Quality One Piece Flow Reduce Floor Area Reduce Material Travel Yield Improvement Scrap Reduction SMED Reduce Changeover Turns Reduce Cycle Times Reduce Non-Value Work SUPPLY CHAIN MANAGEMENT KAIZEN LEAN ENTERPRISE Automation Cost Improvement New Product Planning Design Quality Reduced Implementation Time Standard Process Six Sigma SPC FMEA Error Proofing Problem/CA Visibility Supplier Partnership Total Preventive Maintenance ADVANCED MANUFACTURING TECHNOLOGY TOTAL QUALITY

  10. LEAN ENTERPRISE • Fundamental Types of Kaizen • Improve the productivity of the Operator through: • Operational kaizen: efficiency of motion • Layout kaizen: the conservation and elimination of motion. • Equipment kaizen: the elimination of the manual element. • Process kaizen: the elimination of process waste.

  11. LEAN ENTERPRISE • 10 Kaizen Principles • Get rid of old assumptions. • Don’t look for excuses, look for ways to make things happen. • Say “NO” to the status quo. • Don’t worry about being perfect. Even if you get it half right, start now. • It doesn’t cost money to do kaizen, it costs money not to do it. • If something’s wrong, fix it on the spot. • Good ideas come when the going gets toughest. • Ask “Why” 5 times to get to the root cause. • Look for wisdom from 10 people rather than 1. • Never stop doing kaizen.

  12. LEAN ENTERPRISE • The Key to Continuous • Improvement is to Continuously • Look For and Eliminate Waste. • Taiichi Ohno

  13. Waste Non Value Added Value Added Non Value Added Value Added Value Added ELIMINATE WASTE OUT OF TOTAL ACTIVITIES Non Value Added

  14. Lean – it’s all about Value • Value Adding & Waste Elimination • The customer is only willing to pay for value. • Value adding means performing work that the customer is willing to pay for. • Waste means adding cost but not adding value. • Customers do not pay for waste, we do…by being less competitive. “There is nothing so useless as doing efficiently that which should not be done at all.” -Peter Drucker

  15. LEAN ENTERPRISE • What is Waste? • Waste of • Overproduction • Time on Hand • Transportation • Processing • Stock on Hand • Movement • Making Defective Products

  16. LEAN ENTERPRISE • Waste Definitions • Overproduction - Producing larger quantities than needed, at a faster rate than is required or before it is required. • Time on Hand - When people or machines stand idle waiting for a previous operation, materials, inspection, maintenance etc. • Transportation - Moving the product from where it was produced to where it is needed. The distance is waste.

  17. LEAN ENTERPRISE • Waste Definitions • Processing – Operations that aren’t needed. • Stock on Hand - Excess product that cannot be immediately consumed. • Movement - Any movement of people or machines that does not add value to the product. • Making Defective Products – Inspecting or reworking a product that is defective. The materials, labor and machine time used to correct the defect or deal with customer complaints or returns.

  18. The Rules of Lean • Standardized Work • All work shall be highly specified as to content, sequence, timing and outcome • Standardized Relationships • Every customer-supplier relationship must be direct and there must be a clear way to send requests and receive responses. • Standardized Pathways • The pathway for every product and service must be simple, direct, and specific. • Scientific Method • Any improvement must be made in accordance with the scientific method, under guidance of a teacher (supervisor), with direct input from the person/s closest to the problem.

  19. LEAN ENTERPRISE • The Rules • Rule 1: Standardized Work • All work shall be highly specified as to content, sequence, timing and outcome

  20. LEAN ENTERPRISE The Rules Rule 1: Standardized Work - Rule 1 is implemented by answering these four questions about the work: • How do you do this work? (content, sequence, timing) • How do you know you are doing this work correctly? • How do you know that the outcome is free from defects? • What do you do if you have a problem?

  21. LEAN ENTERPRISE • The Rules Rule 1: Standardized Work Example: Car seat installation - Bolts are always tightened in the same order • - Time to tighten each bolt is specified • - Torque for each bolt is specified • - Overall installation time is specific • - Problems are immediately corrected Variation is the enemy

  22. LEAN ENTERPRISE • The Rules Rule 1: Standardized Work • Performing standardized work tests two hypotheses: • 1) The person doing the work is capable of performing it correctly. • 2) Performing the work correctly creates the expected outcome. • If the specified work can’t be done in the specified time, one of the hypotheses is wrong. The worker needs to be retrained (or re-selected) or the work needs to be redesigned.

  23. Standardized Work Rule 1 • Variation is the enemy! • Product • Processes

  24. LEAN ENTERPRISE The Rules Rule 2: Standardized Relationships (How Activities Connect) - Every connection must be • standardized and direct (no go-betweens) • specifying the people involved • specifying the form and quantity of goods and services to be provided • specifying the way requests are made by each customer • specifying the expected time in which requests are met - No “gray zones” in deciding who provides what to whom and when

  25. LEAN ENTERPRISE The Rules Rule 2: Standardized Relationships - Two hypotheses 1) Customers’ requests for goods and services will be for goods and services in a specific mix and volume. 2) The supplier can respond to the customers’ requests. - If there’s a problem, one of the hypotheses is false. Then retrain, modify activities or reassign customer-supplier pairs as necessary.

  26. LEAN ENTERPRISE The Rules Rule 2: Standardized Relationships Example: Worker encounters problem installing seat - Worker knows to inform group leader immediately. - Group leader knows problem must be resolved within the cycle time for installing seat or production line must be stopped.

  27. Standardized Relationships A “Lean” Rule • Rationale: If problems are hidden, they are neither shared nor resolved company wide. If workers “improvise” to solve a problem on their own, there is no longer standardized work (Rule 1).

  28. LEAN ENTERPRISE The Rules Rule 3: Standardized Pathways - There is only one “routing” for a given product or service. Each operation in the routing is highly specified. - There is only one pathway for problem resolution. Methods for resolving problems are highly specified. - No “gray zones” in deciding how, when, where or by whom things get done.

  29. LEAN ENTERPRISE The Rules Rule 3: Standardized Pathways - Two hypotheses: 1) Every supplier that is connected to the flow path is required. 2) Any supplier not connected to the flow path is not needed. - If there’s a problem, one of the hypotheses is false. Then, redesign the flow path.

  30. LEAN ENTERPRISE The Rules Rule 3: Standardized Pathways - Goods and services do not flow to the next available person or machine but to a specific person or machine. If there’s a problem, a specific person is notified. - Because each pathway is specified, the two hypotheses are always tested and can be improved, if necessary.

  31. LEAN ENTERPRISE The Rules Rule 4: Scientific Method - Any improvement must be made in accordance with the scientific method, under the guidance of a teacher (supervisor), at the lowest possible level in the organization.

  32. LEAN ENTERPRISE The Rules Rule 4: Scientific Method • A problem is identified • Relevant data are gathered • A hypothesis is formulated “If we make the following specific changes, we expect to achieve this specific outcome.” • The hypothesis is empirically tested.

  33. LEAN ENTERPRISE The Rules Rule 4: Scientific Method - The Scientific Method is applied to the hypotheses underlying • Standardized Work • Standardized Relationships • Standardized Pathways in order to make controlled improvements

  34. LEAN ENTERPRISE The Rules Rule 4: Scientific Method - The hypothesis is formulated: • A specific change in (work, relationship or pathway) will improve (cost, cycle time, quality, etc.) by a specific amount. - The hypothesis is tested by putting the change into effect and observing the result. - If the change doesn’t produce the needed result, redesign the change.

  35. Lean – The Rules • All the rules require that work, relationships and pathways have built-in tests to signal problems. If there is a problem, it must be obvious to everyone. • It is the continual response to problems that make the seemingly rigid system so flexible and adaptable to changing circumstances.

  36. LEAN ENTERPRISE The Tools Value Stream Mapping Time Observation Standardized Work Root Cause Analysis - 5 Why’s Standardized WIP Quality Function Deployment 5 S’s Visual Control Poke-Yoke Kanban Eliminate Adjustments Process Measures/Capability Jidoka (Built-in Quality) Cross-Training Line Stop Design for Manufacture/Assembly Problem Alarm (Andon) Takt Time Documentation

  37. LEAN ENTERPRISE The Tools Value Stream Mapping • The Value Stream is simply a process that adds value for the customer that you want to improve, e.g. • Order processing • Releasing the order to the floor • Machinery set-up • Order fulfillment • New product development • Rolled Throughput Yield

  38. LEAN ENTERPRISE The Tools Value Stream Mapping • Observe and list every step in process • Use 3 x 5 Post-It Notes on a wall of drafting paper • Color code notes: value add, non-value add necessary, non-value add unnecessary • Note Task Time and Elapsed Time for each step • Add them all up and compare • Goal: Make Elapsed Time approach Task Time

  39. Standardized Work A Rule & a Tool • Details the motion of the operator and the process sequence in producing parts or service. • Provides a routine for consistency of an operation and a basis for improvement. • It is the documentation of the most waste-free production, through the best combination of people and equipment, the least amount of work-in-process possible, showing where to check for quality and where there are safety issues. • Team members identify process problems and promptly solve them.

  40. LEAN ENTERPRISE The Tools Standardized Work • Provides a consistent framework for performing work at the desired “takt” time and for revealing opportunities for making improvements in work procedures.

  41. LEAN ENTERPRISE The Tools Standardized Work • 4 Elements- • Work Content • Work Sequence • Work Timing • Outcome

  42. LEAN ENTERPRISE The Tools Standardized Work • Productivity at every worksite is improved by kaizen improvements in equipment, measures and process. • Team members identify process problems and promptly solve them. • As takt time changes from month to month, the standardized work must also change; the team must therefore devise new standardized work procedures.

  43. LEAN ENTERPRISE The Tools Documentation • The most important documentation is documentation of Standard Work • It should be written so the person using it could not possibly misunderstand it – use photos, etc. • If you don’t document standard work during a kaizen, the kaizen probably won’t “stick.” • It should be displayed where used, not filed.

  44. LEAN ENTERPRISE The Tools Standard Work in Process • That material which must exist in the process to make the process operate: • Units actually being worked on, plus • Units in test • Units cooling, curing, aging, drying, etc. • Units attached to multi-station machines • Excludes units waiting, stored, staged or otherwise not serving any purpose in the process.

  45. LEAN ENTERPRISE The Tools The “5S’s” • Seiri • Seiton • Seiketsu • Seiso • Shitsuke

  46. LEAN ENTERPRISE The Tools “5S’s” • Organization of the Work Area • Get rid of clutter. “Red Tag” things that are not needed now. • Orderliness • A place for everything; everything in its place • Cleanliness • No oil or chips on floors or machines. No adhesives, stray parts on work surfaces • Standardized Cleanup • A 5-minute cleanup routine that is always followed. • Discipline • Make it a routine way of life.

  47. Workplace Organization and Visual Communication Where are we now…where do we want to be?

  48. LEAN ENTERPRISE The Tools POKA-YOKE • Japanese for “OOPS PROOFING” • Devices to prevent the processing of defective parts or materials by the use of gauges, gates, deflectors, sensors, limit switches in such a way that only good product will be allowed to proceed to the next downstream operation.

  49. LEAN ENTERPRISE The Tools Eliminate Adjustments • All adjustable settings can be maladjusted. • Positive positioning and alignment is the only certain way to assure quality. • The best adjustment is… no adjustment!