What is Lean Manufacturing?



Similar documents
Chapter 11. Lean synchronization

LEAN 101 CRASH COURSE. Presented by Jacob McKenna and Seaver Woolfok

ENGR 1181 Lab 2: Quality and Productivity Lab

Getting Started with Lean Process Management

Hessel Visser NCOI Les 6 A P 373. Operations Management, 7E: Chapter 14 en15

Jakarta, 16 October Dr. Sonny Irawan

AN INDUSTRIAL APPLICATION OF THE SMED METHODOLOGY AND OTHER LEAN PRODUCTION TOOLS

Seven Ways To Improve Your Profit!

A Sheet Plant s Lean Journey

Accounting Building Business Skills. Learning Objectives: Learning Objectives: Paul D. Kimmel. Chapter Thirteen: Cost Accounting Systems

SC21 Manufacturing Excellence. Process Overview

Introduction to Lean Healthcare

This can be done by simply counting pieces in the line or subtracting total number of pieces loaded to total number of pieces unloaded from the line.

Waterloo Agile Lean P2P Group

Lean Healthcare Metrics Guide

Lean Principles by Jerry Kilpatrick

The Thinking Approach LEAN CONCEPTS , IL Holdings, LLC All rights reserved 1

Lean and Agile Development With Scrum (Part 2) Lucio Davide Spano

Top reasons why ekanban should be a key element of your lean manufacturing plan

Implementing Automation after Making Lean Improvements

Lean Manufacturing and Six Sigma

What Is Six Sigma? Introduction to 6σ. By : Melanie Brochu

Frequently Asked Questions about New Leaf s National Accounts Program

Lean Manufacturing Essential Principles

Developing a Formidable Business / Continuous Improvement Methodology in Africa. By: Frederick O Popoola

Manufacturing Flow Management

Improving Management Review Meetings Frequently Asked Questions (FAQs)

Experiences with The Trimrian factory game - a production game within the education of Bachelor Production Engineers

Lean Training Ideas for TECOM. The Marine Corps needs more training time. Industry best practices can improve our training pipeline.

============================================================

Lean Software Development and Kanban

Chapter 11. MRP and JIT

Guide to cash flow management

Sales Training Programme. Module 8. Closing the sale workbook

Implementation of Best Practices in Environmental Cleaning using LEAN Methodology. Tom Clancey and Amanda Bjorn

How large and small manufacturers are benefiting from Lean Manufacturing and Robotic Automation

Primary Logistics Activities

Greening Our Future By Educating Tomorrow s Workforce. Module 2: Lean Manufacturing and the Environment

Closing The Sale. What actually happens during the sales process is that the salesperson:

Lean Manufacturing: Part 1. Charles Theisen, CPIM, CIRM. Lean Manufacturing Part 1

VALUE STREAM MAPPING FOR SOFTWARE DEVELOPMENT PROCESS. Ganesh S Thummala. A Research Paper. Submitted in Partial Fulfillment of the

+ What you ll learn from this? Improve your cash flow & learn about Asset- Based Loans

Rules to Consider. All work shall be highly specified as to content, timing, sequence, and outcome.

7 Principles of Lean Supplies

Using lean methodologies to improve performance

CASH BUDGETS AND RELATED TOPICS

A guide to basic bank accounts

Ratio Analysis. A) Liquidity Ratio : - 1) Current ratio = Current asset Current Liability

STANDARDIZED WORK 2ND SESSION. Art of Lean, Inc. 1

Factoring Buyer's Guide By the purchasing experts at BuyerZone

Example Summary of how to calculate Six Sigma Savings:

451 Consulting. White Paper. Series: Performance Improvement Series PROCESS IMPROVEMENT THROUGH WASTE ELIMINATION

Preparing cash budgets

Lean and Agile Treasury: Embrace Continuous Improvement. Kelly Austin Katie Labedz

Process design. Process design. Process design. Operations strategy. Supply network design. Layout and flow Design. Operations management.

VISUAL management techniques for optimum INVENTORY form, fit and function

Inventories: Cost Measurement and Flow Assumptions

SHOP MANAGEMENT SOFTWARE REQUEST FOR PROPOSAL A GUIDE TO SELECTING THE RIGHT SHOP MANAGEMENT SYSTEM

Small Lot Production. Chapter 5

Handling Purchases and Trade-in of Motor Vehicles in QuickBooks

Basic concepts of Lean Manufacturing

No one has to change. Survival is optional. - W. Edwards Deming - Continue your Beyond Budgeting Journey with help from Agile, Lean and Scrum

Quality and Quality Control

Leasing vs. Purchasing

NON-INTEGRAL OR COST LEDGER ACCOUNTING SYSTEM

How to Sell Your Home FAST And For FULL PRICE!!

Business Name. Business Plan

Workplace Color Coding Standards

BEGINNING THE LEAN IMPROVEMENT JOURNEY IN THE CLINICAL LABORATORY

Paper F8 (INT) Audit and Assurance (International) Thursday 6 June Fundamentals Level Skills Module

The Application of Setup Reduction in Lean Production

The Basic Framework of Budgeting

IT-375 using the 6 th Edition PRODUCTION AND INVENTORY CONTROL CHAPTER 1: INTRODUCTION TO MATERIALS MANAGEMENT

WHITE PAPER. The Lean Workforce. Applying Lean principles to improve workforce management

27Forecasting cash flows 27Activity 27.1 open-ended question.

Lean Kitting: A Case Study

Accelerated Route to Lean Manufacturing

Using the Lean Model for Performance Improvement

Creating Competitive Advantage with your Supply Chain to Thrive the Economic Earthquake

Learning to see True Cost

Lean concepts and principles have the potential to improve operational efficiency, reduce costs and increase profits.

Business Process Optimization w/ Innovative Results

Chapter 5. Process design

Marginal and absorption costing

Glossary of Accounting Terms

The potential benefits Calculate your potential savings based on raw materials losses:

THE BEGINNER S GUIDE TO LEAN

Management Accounting and Control Spring 2007

Tovota Production System: Beyond Large-Scale Production. by Taiichi Ohno

ECONOMIC JUSTIFICATION

White Paper. Process Improvement

Operational Business Intelligence in Manufacturing

Make Your Working Capital Work

Working Capital Management Nature & Scope

Alessandro Anzalone, Ph.D. Hillsborough Community College, Brandon Campus

1. Applying Our application form is quick and easy to complete and as soon as we have it, we get in touch to discuss your options.

Leading Continuous Improvement in Established Agile Organizations

Lean and Green Manufacturing: Concept and its Implementation in Operations Management

The Theory of Constraints & Lean Manufacturing

Using Cash Flow Tracker

Transcription:

What is Lean Manufacturing? Levantar March 2012 www.levantar.co.uk info@levantar.co.uk Lean Guides for other sectors are available on our website www.levantar.co.uk e.g. Lean Office, Lean Legal, Lean Engineering

This Guide includes the following pages? Why read this guide? What will Lean Deliver? Lean isn t Lean is Waste & Value Add Respect for Others Leadership Why is Lean Manufacturing important? How do you reduce WIP (Work In Progress) Looking for the 7 Hidden Wastes The 7 Wastes Finding the 7 Wastes

Why Read this Lean Manufacturing Guide? Lean helps you to produce your business outputs as fast as possible. The faster a business can convert a business enquiry to a finished output; then it can hold less raw material and finished stock inventory. Holding lower inventory levels means you need less cash to run the business Being able to produce work faster means You can do more with the same resources (machinery, people) You can complete work faster than competitors Is reducing the cash required for your business attractive?

Lean Delivers Lean is proven to deliver Increased Efficiency & Productivity - 15% more output with the SAME resources (staff, machines, work space) Better Quality outputs (reducing re-work) Better on time delivery performance (stop chasing work!) Improved morale and employee engagement

What Lean Isn t Lean, is in our opinion, an unfortunate name for what is delivered, Lean ISN T About being SKINNY Isn t about being MEAN Isn t about cutting roles

Lean Isn t

Lean is. Lean is the set of management practices based on the Toyota Production System (TPS). It has been applied in many sectors; engineering, manufacturing, call centres, service, legal.- This guide is for those involved in manufacturing.* One way of defining lean is in two parts: Eliminate WASTE and non-value-added activity (NVA) through continuous improvement. Practice respect for people. *There are guides for other business types on our website

Waste and Value Added The opposite of waste is value-added, which has a special lean definition. An activity, in a process, is value added if, and only if, these three conditions are met: 1. The customer must be willing to pay for the activity. 2. The activity must change the product, making it closer to the end product that the customer wants and will pay for 3. The activity must be done right the first time.

Respect for People - Leadership Respect for people is often harder to define. Lean leadership is about enabling and empowering people. Lean leadership is about helping people grow, allowing them to take pride in their work. Helping them and the business to continuously improve. Lean leaders recognise how a business operates. Lean leaders set targets for people, then spend time coaching staff to meet these. They spend very little time in their office. Lean Leaders see what is actually happening rather than managing KPIs and reading reports.

Why is Lean Manufacturing important? WIP SIMPLE 3 little letters WIP or Work In Progress; WIP requires cash. A customer orders from you. You start using to cash to pay staff to process the order, to design the parts, raw materials and sub-parts are ordered. Employees then convert the materials and sub-parts into the required products for the customer and these people need paying. This takes more cash -All this happens before payment is received from the customer. If WIP is high or rising, we ve used up more resources e.g. we ve converted more cash to products that we ve yet to finish or sell. To keep the business running well need to get hold of more cash. In the forms of loans, overdrafts, invoice discounting. Bring WIP down and the amount of cash required to keep the business running comes down. E.g. we can reduce overdrafts, loans, finance arrangements.

How do you Reduce WIP? Find the fastest way of getting from A to B. If A is customer order date and B is customer delivery date then we want A to B to be a short as possible. The shorter we can make this then the less time we have to find cash for. Normally the shortest time to produce often comes out as the least cost, so we have to find less cash as well.

Looking for the 7 Hidden Wastes In any business there are a host of hidden wastes; these are the wastes that can t be seen without searching them out. Everyone can see the wasted paper, wasted materials and scrap but what about wasted time, effort, thinking, physical activity? Lean people will try classify the waste in one of 7 ways.

Lean Manufacturing 7 Wastes Read the next few pages. If you find the examples of Waste familiar you will benefit from Lean Manufacturing techniques.

The 7 Wastes Waiting Waiting for design sign off and approval. Waiting for machines to come free waiting for maintenance & repairs to finish. Waiting for tooling changes, changeovers, or tools to be free. Waiting for material and parts to be delivered. Waiting for quality checks. Either the Machine or Operator is inactive during the process. Waiting for previous jobs to finish.

The 7 Wastes Defects and Rejects Reworking errors Re-inspection and sorting, recalls Cost of Scrap and rejects Extra labour costs (overtime) to make up production shortfalls due to poor quality Extra transportation to remove and store rejects Delays in process due to rejects produced Information incorrectly recorded on job sheets Incorrect specifications and information sheets

Inventory The 7 Wastes The often obvious sign of inventory waste is products made but not sold. Sub assemblies made up but no finish dates or waiting for final build. Batch Processing rather than single flow. High Levels of consumables and raw materials. Large amounts of racking and warehousing space. The final sign is holding production progress or expediting meetings

Overproduction The 7 Wastes Making in large batches that don t match daily, weekly, monthly demand is symptomatic of Overproduction. Making more products or units than you can sell immediately. Making products or units before they are required by the internal or external customer.

The 7 Wastes Over (Extra) Processing Too many inspections or quality checks Product features not requested by the customer Excessive movement in the manufacturing process. Large machine set-up or maintenance down time. Bottlenecks in the manufacturing process.

Motion The 7 Wastes Searching for tools and materials to complete work. Handling the units more than once Turning, Stretching, bending, reaching to do the work. Visiting other workstations or central locations to get stock, tools, consumables etc. Visiting other areas for paperwork, quality checks, photo copying etc.

Transportation The 7 Wastes Unnecessary moving or handling of parts. Handling equipment moving with no parts. Raw material batch sizes not matching production batch size. Materials, parts, stored a long way from point of use.

How Do We Find the 7 Wastes? Lean people call this GEMBA which translated means go to the place. We go to the place where work happens and watch, observe, listen only then do we ask questions, mainly WHY? We ll be producing another handout on GEMBA in the near future.

Lean Manufacturing Review Lean Manufacturing Review Service Levantar have developed a Lean Manufacturing Review Service. We come to your site and assess what we believe you could attain from adopting Lean Manufacturing Practices; i.e. What could it be worth? In terms of shorter delivery times, smaller amounts of labour input, quality measures etc. You get a written report to help you decide whether you want to start a Lean Manufacturing journey. If you need any information in the interim, contact us; info@levantar.co.uk www.levantar.co.uk Or call Mark on 01904 277007 or Neil on 0115 711 7007

Thank you for your time in reading this. As with all our work, it is subject to Continuous Improvement. If you have any feedback, thoughts or observations then send them directly to Mark Greenhouse, mark@levantar.co.uk, Or call on 01904 277007