Download Lean Manufacturing for The New Haven

Lean Manufacturing
For
Lean Times
2009 Lean Ideas, All Rights Reserved
1
Lean Manufacturing
Principal Thrust:
The Total Elimination of Waste
Result: Continuous Improvement
2009 Lean Ideas, All Rights Reserved
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A Simple Definition
Deliver the most value from your customers
perspective while consuming the fewest
resources.
Or
Do more and more with less and less
-Womack, James P. & Daniel T. Jones. Lean Thinking.
Simon & Schuster, 1996
2009 Lean Ideas, All Rights Reserved
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TPS
Toyota Production System
Just-In-Time
(Materials needed, when needed, and
in the quantity needed)
-Shortened lead time
-Reduced operations other
than processing
-Reduced inventory
-Obtaining a balance
between processes
-Problems become clear
Autonomation
(Automation with Human Touch)
-Problems become clear, solutions
are found and implemented
-Quality assurance
-Heightened sense of need for
improvement
-Accepting challenge for a higher
level
-Management centered on
controlling abnormalities
2009 Lean Ideas, All Rights Reserved
4
TPS
The Minus-Cost Principle
Traditional formula:
Cost + Profit = Selling Price
Minus-Cost formula:
Market Price - Cost = Profit
Manufacturers Can No Longer Control Margins
by Increasing Selling Price
2009 Lean Ideas, All Rights Reserved
5
TPS
The Ultimate Response to Demand
Is Production To Order
The requirements of production to order:
-High diversity
-Low-quantity production
-Quick delivery
-Load fluctuation handling
Make What You Sold, Not What You Plan To Sell
2009 Lean Ideas, All Rights Reserved
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What no one tells you about Lean
2009 Lean Ideas, All Rights Reserved
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HO-HUM!
Why Doesn’t Everyone Do This?
• Easy to Agree With
• Hard To Do
Why Is It So Hard?
2009 Lean Ideas, All Rights Reserved
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All Our Current Processes Are
Built for Batch
• Forecasting systems
• Factory layouts and equipment base
• Computer programs/systems
• Accounting systems
Accounting and Computer Systems are
Biggest Hurdles
2009 Lean Ideas, All Rights Reserved
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Lean is not
Some Manufacturing Thing
• Not just an element of strategy
• Cannot be delegated down in the
organization - without first removing the
barriers
–
–
–
–
Make the month
Absorption accounting
MRP and other computer systems
Direct to indirect employee measurements
• Try it bottoms up - never works
2009 Lean Ideas, All Rights Reserved
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Lean Priorities
Quotes/Order Entry
2
Application Engineering
Planning/Scheduling
4
Purchasing
Receiving
IT
Material Stores
Legal
Production
Finance
1
Warehousing
Internal Controls
Shipping
Human Resources
Logistics
Environmental
Invoicing
Regulatory Compliance
Collection
Internal Support
External & Future
Customer Relations
Vendors
Marketing
Sales
Advertising
R&D
5
3
Returns-Credits-Deductions
2009 Lean Ideas, All Rights Reserved
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LEAN PRIORITIES
1.
2.
3.
4.
5.
6.
7.
8.
One Piece Flow
Set-Up Reduction
Quality at the Source
Equipment Performance(TPM)
Standard Work
Shorten Demand Horizon
Make Every Product Every Day
Pull System
2009 Lean Ideas, All Rights Reserved
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THE RETURN
•Shorter Lead Times
•Reduction of Defects
•Better Service To Customers
•Increased Inventories Turnover
•Greater Control of Expenses
•Reduction of Expenses
•Additional Capacity
•Alternative to2009Investment
Lean Ideas, All Rights Reserved
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