Lean Manufacturing: Now & Then
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1 Lean Manufacturing: Now & Then John Newlyn, CSCP, CFPIM, CIRM Marco Fabila, CPIM, CPM Advancing Productivity, Innovation, and Competitive Success
2 What we will cover Who We Are What is APICS The History of Lean Manufacturing Applying Lean Principles to Your Business The San Joaquin Valley Chapter of APICS
3 Who We Are John Newlyn, CSCP, CFPIM, CIRM APICS Instructor and Past District Manager for the Pacific Western District of APICS Senior Production Planner at Pelco by Schneider Electric Marco Fabila, CPIM, CPM APICS Instructor and Past President of the San Joaquin Valley Chapter of APICS Senior Project Manager at Pelco by Schneider Electric
4 What is APICS APICS is a professional society focused on sharing best practice concepts in the areas of materials and operations management, supply chain management. Involvement in APICS can transform organizations and careers.
5 APICS Definition Lean Production: A philosophy of production that emphasizes the minimization of the amount of all the resources (including time) used in the various activities of the enterprise APICS Dictionary, 12 th Edition
6 The History of Lean Manufacturing Let s start with then and Henry Ford and his Model T Interchangeable parts Standard work flow Moving conveyance Inventory turns across the entire company every few days Publishes Today and Tomorrow in 1926
7 Problems of the Ford Model Lack of variety No options until late in the product life cycle 20 year new-model development cycle
8 1930s-1950s Toyota Taiichi Ohno Led to the Toyoda Production System Shifted focus of the manufacturing engineer from individual machines and utilization to the flow of product through the total process Fast changeover Self-monitoring machines Basic pull manufacturing
9 1990 The Machine that Changed the World by James P. Womack, Daniel Roos, and Daniel T. Jones, published in Lean Thinking followed in 1996
10 1990 Specify the value desired by the customer Identify the value stream Continuous flow the value adding steps Introduction of pull through all the steps Manage toward perfection reduce waste
11 Lean: Now & Then Lean manufacturing publications, consultants and concepts have exploded throughout the manufacturing world and into service and non-manufacturing business US companies doing some form of Lean? US companies satisfied with what they do? 80 % 2 %
12 Lean is A passionate belief that there s always a simpler, better way
13 Lean is A continuous drive to identify and eliminate waste
14 Lean is A strategy of shortening the timeline from order to completion
15 Lean is A way of thinking that causes everyone to use their talent to improve the business everyday - Kaizen
16 The Seven Wastes 1. Transportation 2. Inventory 3. Motion 4. Waiting 5. Over-Production 6. Over-Processing 7. Defect 8. Talent (Hidden Waste)
17 5S The FOUNDATION For Lean An organized workplace is a safer workplace that lends itself to higher standards of quality, productivity, and personal well being! SORT (SEIRI) Eliminate or get rid of unnecessary items, not needed STRAIGHTEN (SEITON) A place for everything and everything in its place SHINE (SEISO) Cleaning and looking for ways to keep it organized STANDARDIZE (SEIKETSU) Do all work in accordance with documented visual standards SUSTAIN (SHITSUKE) Each individual to assume ownership in their work area
18 Lean Tools 5S Andon Bottleneck Analysis Continuous Flow Heijunka (shared resource scheduling) JIT Kanban Muda Overall Equipment Effectiveness Plan, Do, Check, Act (PDCA) Error Proofing (Poka Yoke) SMED
19 Lean is A culture that extends the ideas of Lean thinking across all of the business processes using a common toolset
20 Lean Business Key Objectives Minimize Cost Conventional: Cost + Profit = Price Lean: Price Cost = Profit
21 What the customer is willing to pay for
22 Non Value Added Activity An activity that takes time, resources or space, but does not add value to the product itself = ADDS COST
23 Value Stream Mapping Spectra Lower Dome Building 1 Production Control Building 5 Spectra Lower Dome Master Schedule 6 weeks MRP 1xday 1xday Daily Report Lower Dome Assembly Inspect and clean Building box and label Pack off 4 Stations 1 Station 3 Stations 2 Stations 2000 P/T = 0:00:55 20 P/T = 0:00: P/T = 0:00:39 P/T = 0:00: Boxes 5 Pallets Uptime = 100% Uptime = 100% Uptime = 100% Uptime = 100% C/0 = C/0 = C/0 = C/0 = 1 Shift 4 1 Shift 1 1 Shift 3 1 Shift 2 0:00:55 0:00:05 0:00:39 0:00:20 PLT = 2 days,0:04:09 1 day 0:00:20 0:00:05 0:01:45 1 day PT=0:04:09 Value Added 0:00:55 0:00:20 Non value Added 0:02:54 Metrics Finished goods inventory = 1050
24 FLOW
25
26
27 Production Schedules Replace Items Consumed
28 Kanban Production linked to customer demand (external and internal)
29 In PULL - products flow via visual signals What gets measured What gets measured VISUALLY
30 Applying Lean Thinking Will Bring Rocks to The Surfaces
31 Lean Thinking Lean Tools Value Flow Pull Kaizen Lean Strategy ROI Gemba Financial Accountability
32 APICS San Joaquin Valley Chapter Education Kickoff Meeting Pelco 3500 Pelco Way, Building 5 Clovis, CA November 20 th, 2012 Registration at 6:00, Meeting Starts at 6:30PM
33 References APICS Dictionary, 12 th edition. retrieve October 6 th, retrieved October 1st, 2012.
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