How to Implement Lean Manufacturing

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1 How to Implement Lean Manufacturing Lonnie Wilson Me Graw Hill New York Chicago San Francisco Lisbon London Madrid Mexico City Milan New Delhi San Juan Seoul Singapore Sydney Toronto

2 Contents Preface Acknowledgments 1 What Is the Perspective of This Book? 1 From a Practical Perspective 1 From an Engineering Viewpoint without Much Cultural Advice... 1 This Book Has a "How to" Perspective 7 And to Those in Manufacturing Who Seek Huge Gains 8 Chapter Summary 8 2 Lean Manufacturing and the Toyota Production System 9 The Popular Definition of Lean 9 What Is Lean? 9 What Did Ohno Say about the Toyota Production System? 10 The TPS and Lean Manufacturing Defined 10 Who Developed the TPS? 11 The Two Pillars of the TPS 11 What Is Really Different about the TPS? 12 The Behavioral Definition 21 The Business Definition 22 Several Revolutionary Concepts in the TPS 22 The TPS Is Not a Complete Manufacturing System 26 A Critical and Comparative Analysis of Various Philosophies 28 Where Lean Will Not Work... or Not Work Quite so Well 32 Chapter Summary 39 3 Inventory and Variation, 41 Background 41 Just Why Do I Have and Why Do I Need the Inventory? 42 What Is So Bad about Inventory? 42 About Variation 47 Buffers 48 Kanban 48 Kanban Calculations 49 Finished Goods Inventory Calculations 52 Kanban Calculations 56 Make-to-Stock versus Make-to-Order Production Systems 56 Chapter Summary 57 4 Lean Manufacturing Simplified 59 The Philosophy and Objectives 59 ix xv

3 VJ Contents The Foundation of Quality Control 59 Quantity Control 64 Chapter Summary 71 5 The Significance of Lead Time 73 Some History of Lead Time 73 Benefits of Lead-Time Reductions 74 Excalibur Machine Shop, Lead-Time Reductions 75 Techniques to Reduce Lead Times 83 Chapter Summary 85 6 How to Do Lean Cultural Change Fundamentals 87 Three Fundamental Issues of Cultural Change 87 Some Cultural Aspects of a Lean Implementation Worthy of Further Thought 100 Chapter Summary 106 Appendix A Problem Solving and Standardization: How Are They Similar? How to Do Lean The Four Strategies to Becoming Lean Ill Overview of the Lean Implementation Strategies Ill Implementing Lean Strategies on the Production Line 112 Chapter Summary 118 Appendix A The Takt Calculation 118 Appendix B The Basic Time Study 121 Appendix C The Balancing Study 124 Appendix D The Spaghetti Diagram 127 Appendix E Value Stream Mapping How to Implement Lean The Prescription for the Lean Project An Overview On How to Implement Lean 135 A Key Question to the Implementation 136 Step 1: Assess the Three Fundamental Issues to Cultural Change Step 2: Complete a Systemwide Evaluation of the Present State Step 3: Perform an Educational Evaluation 144 Step 4: Document the Current Condition 146 Step 5: Redesign to Reduce Wastes 146 Step 6: Evaluate and Determine the Goals for This Line 146 Step 7: Implement the Kaizen Activities 146 Step 8: Evaluate the Newly Formed Present State, Stress the System, Then Return to Step Lean Goals 147 What to Do with the Plan? 148 Chapter Summary 148 Appendix A The Second Commitment, Evaluation of Management Commitment Planning and Goals 153 Some Background 153

4 Contents yjj Hoshin-Kanri Planning 155 Why Are Goals and Goal Deployment So Important? 155 Policy Deployment 156 Leadership in Goal Development, Deployment, and Determining What "Should Be" 160 Chapter Summary Sustaining the Gains 163 Why Is It So Important? 163 How Do We Know There Is a Loss? 165 What Is Process Gain? 173 Chapter Summary Cultures 179 Background Information on Cultures 179 The Toyota Production System and Its Culture 185 What Should We Do with Our Lean Culture? 187 Chapter Summary Constraint Management 189 Bottleneck Theory 189 Chapter Summary : Cellular Manufacturing 195 Cellular Manufacturing 195 The Gamma Line Redesign to Cellular Manufacturing 197 Chapter Summary The Story of the Alpha Line 211 How I Got Involved 211 Initial Efforts to Implement Cultural Change 211 Some of the Results 214 Continuous Improvement, as It Should Be 215 The Cool Story of SPC: SPC Done Right! 215 How Did the Alpha Line Management Team Handle the Fundamentals of Cultural Change? 218 Chapter Summary The Story of the Bravo Line: A Tale of Reduced Lead Times and Lots of Early Gains 221 Background Information 221 Implementing the Prescription 222 The Results 227 Chapter Summary Using the Prescription Three Case Studies 235 Why These Case Studies? 235 Lean Preparation Done Well: The Story of Larana Manufacturing

5 yjjj Contents The Zeta Cell: A Great Example of Applying the Four Strategies to Reduce Waste and Achieve Huge Early Gains 244 The Case of the QED Motors Company: Another Great Example of Huge Early Gains on an Entire Value Stream 254 Applying the Second Prescription at QED Motors How to Implement Lean The Precursors to Lean Not Handled Well 273 Background to the ABC Widgets Story 273 We Analyze the Data 274 Summary of Results 280 How Did the Management Team from ABC Widgets Handle the Fundamentals of Cultural Change? 281 The Real Message 282 Chapter Summary An Experiment in Variation, Dependent Events, and Inventory Background 285 The Experiment Assessment Tools 291 The Five Tests of Management Commitment to Lean Manufacturing 291 The Ten Most Common Reasons Lean Initiatives Fail (in Part or Totally) 292 The Five Precursors to Implementing a Lean Initiative 292 Process Maturity A House of Lean 299 Glossary 301 Bibliography 309 Index 311

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