..--- Lean concept in industry Lean Safety. Exc~Motion ~ lnnovation through Human Factors in risk analysis and management Zero leve/ training course

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1 TOYOTA Waiting ~..--- Exc~Motion ~ Unused creativity Il l\1\(... IH'ff l l l..aadux\111 R:f processing lnnovation through Human Factors in risk analysis and management Zero leve/ training course Ass. Prof. lvan Macuzic Faculty of Engineering, University of Kragujevac, Serbia Lean concept in industry Lean Safety

2 Origin of term "Lean"! "Lean" is quite universal term (lean people- thin people, like long-distance runners, lean food - the foods that are lower in fat, lean also implies lightweight, in the sense of speed and agility with a sort of underlying aggressiveness that recalls the rhyme "lean and mean.").! That's because the word lean suggests not only a physical condition, but also a certa in discipline. People who are lean seem to be that way not just temporarily, but continuously. Lean is nota diet- it's a way of l ife. And what do you think about lean?

3 Origin of term "Lean"! What about "Lean" in business or organizations?! First introduction of term "Lean" is dated back in and connected with results of huge, five years long, investigation & research about present and future of global automotive industry.! This research were conducted by Massachusetts lnstitute of Technology- MIT, SAD. l - Massachusetts Il l nstitute of Technology! The concept of "Lean thinking" and "Lean production" was introduced to the Western world in by the book "The Machine That Changed the World" written by James P. Womack. James P. Womack

4 Origin of term "Lean"! They looked and compared ali the performance attributes of a Toyota company compared to traditional mass oroduction like GM. OYO 'A! What they saw was a company that: ~ Needed /ess effort to design, make, and service their products ~ Required /ess investment to achieve a given leve/ of production ~ Produced products with fewer defects ~ Performed its key processes in less time and with less effort ~ Needed less inventory a t every step ~ H ad significantly lower leve/ of workplace injuries ~ Had less failures, scarps,! They concluded that a company like this, a company that uses less of everything, is a "lean" company.

5 TOYOTA- success of Lean company ET fi TOYOTA L. CHRYSLER '80 '90 '00 '06

6 Toyota Production System {TPS) - road to excellence! Lean manufacturing was developed after WWII by the Japanese automotive industry, with a lead from Toyota Company.! Japanese auto manufacturers have been developing Lean far aver 50 years.! lt is also called Toyota Production System (TPS) Taiichi Ohno

7 Japan after WW Il - ::._- \thr rtl!_~ing llullrtlll vr.. :. The w~ r is Over! Japan Surrenders JAPAN

8 lmportant people in history of Toyota Co. Sakichi Toyoda, founder of Toyota Co. (originally looms factory) Kiichiro Toyoda, son of Sakichi Toyoda, founder of Toyota Motor Co., author of Just-in-Time concept back in 1930s. Eiji Toyoda, Toyota manager after WWII Taiichi Ohno, Production Manager in Toyota from He is recognized as father of Toyota Production System. Dr. Shigeo Shingo: Consultant in Toyota, wrote numerous books in area of TPS. Shingo reward is today globally most important in area of production excellence and outstanding results in improvement of production.

9 Toyota history TOYOTA history- PART l TOYOTA history- PART Il

10 lnfluence of USA automotive industry- Henry Ford! Henry Ford made revolutionary changes in automotive industry and production in generai! He introduced assembly line in 1913.! He also introduced concept of mass production which were base far industriai production far more than 1 00 years in whole world.! With starting of mass production of Ford T model he initiate industriai revolution in USA and whole world. Henry Ford Automobile Manufacturing, Henry Ford / 19azl Fascinating 1936 Footage of Car Assembly Li ne

11 Toyota Production System - TPS! TPS is the production system developed by Toyota Motor Corporation to provide best quality, lowest cost, and shortest lead time through the elimination of waste.! TPS is comprised of two pillars, 1) just-in-time and 2) jidoka and often is illustrated with the "house".! TPS is maintained and improved through iterations of standardized work and kaizen, following POCA, or the scientific method. Goal: Highest Ouality, Lowest Cost, Shortest Lead Ti me Just-in-Time Cont.nuou Fio :v Ta t m Pull Sy t Jidoka Stop nd not 1fy of norm l t s Sep r t hum n vor nd m~hin w ork Heijunka Standardized Kaizen n Work Stability

12 Toyota Production System - TPS TPS Best Q ality- Lo est Cost- Shortest te ad lime - Best Safety - High orale Jidoka (Built-ln-Ouality} Righ part, right amount, right fme akttime Continuous flo Pull system Ouick changeo er Integra ed logistics Highly Moti vated People Jidoka (Built-ln-Oual ity} Automa c stops An don Person -machine separa on Erm r proofi g ln-station quality contro l 5 hys Operational Sta Hity Leveled Producfon Standardized or Visual anagement Total Productive Maintenance {TPM) Kaizen

13 Five basic principles of Lean 1. Value- specify what creates value from the customer's perspective. 2. The value stream - identify ali the steps along the process chain. 3. Flow - make the value process flow. 4. Pull - make only what is needed by the customer 5. Perfection - journey of continuous improvement Identify and create value streams D D THE VALUE STREAM In House s rs Processes q "Value is only meaningful when expressed in terms of a specific product or service which meets the customer needs at a specific price at a specific time" "A value stream is actions cun-ently required to bring a product from raw materials into the anns of the customer" Pull producti... "Products should flow through a lean organisation at the rate that the customer needs them, without being cci.ight up in inventory or delayed" Striving for perfection "Only make as required. Pull the value according to the customer's demand" Perfection does not just mean quality. I t /:. means producing exactly what the customer wants, exactly when the customer requires it, at a fair price and with minimum waste.

14 Five basic principles of Lean "Al/ we are doing is fooking at the time fine, from the moment the customer gives us an arder to the point when we col/ect the cash. And we are reducing the time fine by reducing the non-vafue adding wastes." - Taiichi Ohno BAU\NtE.D SYNtHR.ON\ZED SIMPUFIEO WAST R E RRTIONRUZE.D SALES

15 Value & Waste in Lean production! Value is the worth placed upon something. Customers determine value as something that they are willing to pay far. value added! There are Value Added Activities (VAA) in production and Non-Value Added Activities (NVAA)! One VAA need to satisfy 3 criteria: >- Customer must be willing to pay far the activity. >- Activity must transform the product or service. >- Activity must be dane correctly the first time! Ali NVAA in Lean are treated as loose (3M): Muda (waste): Muda is an activity that consumes resources without creating value Mura (unevenness): Mura is waste caused by variation in quality, cast, or delivery. Muri (overdoing): Muri is the unnecessary or unreasonable overburdening of people or equipment by demands that exceed capacity.

16 7 + 1 Deadly Waste in Lean production There are two types of muda - waste: ~ Type-1 muda includes actions that are non-value-added, but that are far some other reason necessary far the company. ~ Type-2 muda are those activities that are non-value-added and unnecessary far the company.! There are deadly waste (muda) of Lean: 1. Transportation - Transporting supplies and materials around the department or lab. 2. lnventory - Excess inventory or supplies o n shelves, racks, and floors. 3. Moti o n - Any movement of people or equipment that does not ad d value to the service. 4. Waiting - Waiting far equipment to become free or far supplies to arrive. 5. Overproduction - Making more than required by the next process or faster than required. 6. Over-processing - Effort that does not add value to the product or service from the customer's viewpoint. 7. Defects- Materials or services requiring correction, rework or repair. 8. People - Not making the best use of staff member ideas, thoughts, and suggestions that lead to improvement.

17 7 + 1 Deadly Waste in Lean production Production ~ ~ Excess Motion ~ Unused creativity lnventory Waste and Losses processing Overproduction Waiting Transportation Defects Motion lnventory manufactus GmbH

18 Basic lean methods & tools o Kaizen - Continuous lmprovement: No process can ever be thought perfect, so operations must be improved continuously, striving for innovation and evolution. o Genchi Genbutsu - Go & See: Going to the source to see the facts for oneself and make the right decisions: o Total Employee lnvolvement & Teamwork: This is about developing individuals through team problem-solving. The idea is to develop and engage people through their contribution to team performance. otal Emp1oyee Tools: volve en o 5S o Value Stream Mapping (VSM) o Kanban o Key performance indicators (KPI) o Overall equipment effectiveness o Poka Yoke o Spaghetti diagram, etc

19 Kaizen Kaizen {r&if, continuous improvement) KAI Change Kaizen is a philosophy of improvement that encourages continuous, incrementai changes in life across ali aspects- personal, social, work. Kaizen means not letting a day pass without some form of improvement. ZEN good (to be better) KAIZEN contlnuous lmprovement As a work philosophy, Kaizen is continuai, incrementai change in ali areas - large and small, internai and external that improves the whole organization. Business philosophy of Kaizen calls far an unending effort far improvement that involves everyone in the organization - managers and workers alike.

20 Lean & Safety How can we use Lean Concept & Lean Management principles to transform and improve safety culture and safety performance at workplace?

21 Lean & Safety! Most accidents can be prevented! Most accidents occur due to unsafe conditions and unsafe behavior! Safety isn't separate from production! Workers are closest to the facts! A reactionary, blame approach doesn't prevent accidents! Lean is 75 /o social and 25 /o technical

22 Lean & Safety! Lean focus- SAFETY FIRST!!!! Lean goal- Zero injuries (possible or no)! Lean Tools far Safety: Y 5S y Visual Factory y Training y Poka Yoke (Failsafe) y Benchmarking y Continuous flow y Standard work y Workplace organization Y Autonomous activities Y Problem solving (5Why, 5W+1 H) Y Teamwork (small group activities) l or Our Goal: World Class Safety

23 What is 55? 1) Seiri - Sort Elimination of unnecessary items from workplace 2) Seiton - Straighten(Set in Order) Correct piace for every item Set things in order and set limits 3) Seison - Shine Clean & shine working piace and environment and use cleaning as inspection 4) Seiketsu - Standardize Standardize best practice in work area and share informations 5) Shitsuke - Sustain Sustaining of results through self-discipline

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25 55+ 1 = 65 Sort Set in Order Shine Standardise Sustain Six "S" is for Safety

26 55 for Safety Vision! Most shop floor accidents can be avoided by controlling shop floor conditions (up to 80 /o)! Then, behavior issues have the right context (about 20 /o)

27 The Heinrich Rule Serious accidents 29 Less serious accidents 300 Nearmisses

28 What You Don't See Safety Problems You See Safety Problems You Don't Se e

29 Start with Basic 55 Total # of safety problems Never Used 5S Have Used 5S

30 First: A Workplace Scan

31 r , Workplace Scan Display Assembly Area A "Before" Photos o /:::::9.:~.... / ::...::::;:o <::::;:-... _.;:;..- / / Palle! \,...---t ---, o::: /~~~;~<: ::... ::......,.~,.,..., Worker.. ::::... /~::... ~~~::~ o _/:::>/....-o <::~:>:.. O ).!' /,,., Mobile Equipment o

32 (Organization) Setin Order (Orderliness) Shlne (Cleanliness) Standardize (Adherence) Sustain (Self-discipline)

33 1) Sort! Sort focuses on eliminating unnecessary items from the workplace that are not needed for current production operations.! An effective visual method to identify these unneeded items is called "red tagging". A red tag is placed on ali items that are not important for operations or that are not in the proper location or quantity.! Once the red tag items are identified, these items are then moved to a centrai holding area (Red Tag Area) for subsequent disposal, recycling, or reassignment.! Ask yourself: Does it have a function in this area? ls it needed? How often? Bywhom? ls it in the way? Does it take too much space?

34 1) Sort- Red Tagging

35 1) Sort- Red Tag Area

36 2) Set in Order! Set In Order focuses on creating efficient and effective storage methods to arrange items so that they are easy to use and to label them so that they are easy to find and put away.! Set in Order can only be implemented once Sort, has cleared the work area of unneeded items. Strategies far effective Set In Order include painting floors, attaching of labels and placards to designate proper storage locations and methods, outlining work areas and locations, and installing modular shelving and cabinets.! Set in arder- a piace far everything, and everything in its piace ldentify best locations Relocate out-of-place items Set height and size limits Focus on safety lnstall temporary location indicators

37 2) Set in Order

38 3) Shine! Shine is next step which imply thoroughly cleaning of the work area. Daily follow-up cleaning is necessary to sustain this improvement.! Working in a clean environment enables workers to notice malfunctions in equipment such as leaks, vibrations, breakages, and misalignments. These changes, if left unattended, could lead to equipment failure and loss of production.! Organizations often establish Shine targets, assignments, methods, and tools before beginning the shine pillar. ~ Clean everything inside and out ~ lnspect through cleaning ~ Prevent dirt, grime, and contamination from occurring ~ lnspect equipment by cleaning

39 3) Shine

40 4) Standardize! Once the first three 5S's have been implemented, the next step is to standardize the best practices in the work area. Standardize is the method to maintain the first three steps, creates a consistent approach with which tasks and procedures are dane.! The second part of Standardize is prevention - preventing accumulation of unneeded items, preventing procedures from breaking down, and preventing equipment and materials from getting dirty.! Ali ideai 5S conditions are identified: Who is responsible? What actions must be taken to maintain the desired conditions? When should those actions be taken? Where do they apply? What are the procedures for the application of standards?

41 4) Standardize Il 2, Il Il Il 6 Il

42 5) Sustain! Sustain, making a habit of properly maintaining correct procedures, is often the most difficult S to implement and achieve. Changing entrenched behaviors can be difficult, and the tendency is often to return to the status qua and the comfort zone of the "old way" of doing things.! Sustain focuses on defining a new standard of work piace organization. Without the Sustain pillar the achievements of the other pillars will not last long.! Tools far sustaining 5S include signs and posters, newsletters, pocket manuals, team and management check-ins, performance reviews, and department tours.! Organizations typically seek to reinforce 5S messages in multiple formats until it becomes "the way things are dane".

43 Successful implementation of

44 55 in 50 Days Sort Weeks O Set-i n -Order Shine Standardize Sustain