Lean Manufacturing

Often called Flow Manufacturing because the goal is

to keep materials moving from start to the shipping
box.

Compiled By : RVS & KS

Introduction to the Champions

Program

Create a critical mass of leaders, practitioners and

educators for our diverse operations
Get grounded in some of the basics of the Toyota
Production System
Learn-Apply Approach -- go to class, do
homework, share, learn more
NOT every tool will be applicable or useful in
every environment; facilitator and participants can
discuss
Create partners at other locations to share with,
learn from and help

SPEED is the Primary Goal

Decreasing the Cycle Time for all business processes
is a key competitive differentiator in modern
manufacturing.
Manufacturing Cycle Time is the target of Flow
Manufacturing techniques.
The techniques learned today can be applied for
other critical processes from engineering design to
purchasing

Why Lean @ Emerson

Market DEMANDS Speed!
Record ON-TIME delivery to improve
EMR in LOWER Quartile in ITO among major industrials!
O.P. Excellent;
Has the Moving Jobs
scenario PLAYED OUT?

ROTC mediocre!

Flow Manufacturing - Key

Characteristics

Focus on SPEED
Process SIMPLIFICATION
Pull through the process as against Push
Balanced operations based on customer demand
Minimal build unless tied to customer order
Investments in Education and Training
Focused & dedicated resources
External resource in a complex situation
Extend to Supply chain also

Whats Different?
PROGRAMMATIC change rather than drive
by cost reductions
New performance standard - SPEED
NEW SKILLS applied to a reasonably good
operation
Provides a CONTEXT for change and
improvement
A HISTORY of success; both external and
internal

Targeted Benefits
Overall Value

Operating Profit
Price

Costs

Assets Employed
Growth

Working

Fixed

Market

Inflation

Product

A/P-A/R

Capacity

Value

Containment

Promotion

Inventory

Flexibility

Quality

Quality

Productivity

Speed
Delivery

Leveraging Customer Delivery

Performance Improvement
Primary
Secondary

F - Designed, Built to Order (SEC Scenario)

Examples: Capital equipment applications, Job Shops
Likely Environment:
Shared resources
Floating bottlenecks
Engineering significant
part of cycle time

Key Challenges and

Constraints
Scheduling through
bottlenecks which change
Faster Engr releases
Processing ECOs

Likely Lean Priorities

Constraint identification
(bottlenecks)
WIP control where applicable
Cycle Time reduction in
Engineering and Order Release
Workplace Organization

Sources of Benefits
Realistic commitments
Flexible scheduling
Reduced expediting

How To - The Path

ValueStream
Mapping

Future State
Target
Design

Important Foundations:

Balancing; Line Design; Training

Pull Scheduling, Kanban

Continual
Improvement

Fi
re

Organizational
Education

Data Collection
- Baseline Metrics
- Product / Process
- Volume / Mix
- Flow Charts
- Work Content

Action Plan

Executive
Education

Project Management and Execution

Current State

A
im

R
ea
dy

Operations
Strategic
Planning

Planning and
Preparation

Lean Business Process Design

Other Tools and Training (as required)

Quality Improvement
Set-Up Reduction
Error Proofing

Employee Involvement Culture

5S - Workplace Organization
Structured Problem Solving

Preventive Maintenance
Kaizen
Six Sigma Tools

How To - The Path

Stage 0 - Not Started
Stage 1 - Planning and Education
Stage 2 - Analysis
Stage 3 - Lean Implementation
Stage 4 - Lean Operation
Stage 5 - Continual Improvement

Operations
Strategic
Planning

Organizational
Education

Stage 1

Current State
Data Collection
- Baseline Metrics
- Product / Process
- Volume / Mix
- Flow Charts
- Work Content

Future State
Target
Design

Foundations:

Stage 2

Balancing; Line Design; Training

Action Plan

Executive
Education

Pull Scheduling, Kanban

Continual
Improvement

Lean Business Process Design

Other Tools and Training (as required)

Quality Improvement
Set-Up Reduction
Error Proofing

Preventive Maintenance
Kaizen
Six Sigma Tools

Employee Involvement Culture

5S - Workplace Organization
Structured Problem Solving

Stage 3

Stage 4

Stage 5

What is Value Stream Mapping?

Value Stream Mapping is a high
level big picture look at the flow
of material and information from
raw material through
manufacturing to the customer.

Value Stream Mapping

What are the steps?
Select Product Family

Select VSM Manager

Current State Map

Future State Map

Prioritized
Implementation
Plan

VSM
Value Stream Manager

Value Stream Mapping

Mapping the Current State
Begin with the Customer:
What are the customer requirements - Daily Line Rate?
- What is the Takt time or pace of production required to support your
customers
- Who are your main customers?
- What are the requirements of the top 5 customers?
- What is the required frequency of shipments and quantities?
-

Analyzing Customer Demand

Understand customer demand -- determine Line
Rate
Pace work to meet demand -- calculate Takt Time
Balance operations to match the pace
Adapt to pull systems

Implementation Support

Employee Involvement
5S
Visual Control
Maintenance Management
Set-Up
Problem Solving

Wall-to-Wall Implementation
Line Design
Pull and Kanban

Kanban
Definition: Japanese for signboard or signal
Benefits:
Keeps inventory information with the inventory
Provides visual and simple replenishment
information
Provides simple production instruction
Provides simple move instructions
Can provide simple procurement process

Pull Environment Challenges

Long Changeover Time and Frequency
Low Overall Equipment Effectiveness (OEE)
Poor Quality at the Source of Adding Value
Few Multi-skill and Multi-craft Employees
Poor Process Stability
Poor Work Place Organization
Poor Problem Solving

Organizational Education Why? Who?

Lean Manufacturing is a systemic process of
Change; not merely rearrangement of the shop
Converting from push to pull requires all key
resources on the same page
Cannot apply a formula or copy someone else
Who?

Division Leadership needs fundamental education

Management and Staff needs sound educational base
Flow leaders and implementers need advanced education
Everyone needs awareness

The C Word and Lean

Culture
Change
Change Agent
Managing Projects of Change

Resources
Lean Executive
Helps insure appropriate resources for task; defends as needed
Sponsor
Establishes and defends appropriate budgets and human resource
commitments
Keeps to commitments for budgets and timing
Champion
Proactively develops metrics and communicates improvements to
rationalize investments
Prepares realistic action plans based on budget limitations
Manages projects carefully to protect resource commitments
Front Line Supervision
Works through issues to allow training and participation
Teams / Targets
Understands level of resources allowed

5 X 5 Definitions
Key Lean Executive - Point of Leadership in

Organization that clearly communicates the Lean

message; sets priorities; monitors organization
progress; assigns primary roles

Lean Sponsor - Point of accountability for the

results (owns the process); sets priorities; allocates

resources; resolves resistance

5 X 5 Definitions
Front Line Supervision - Point of management of
activities contributing to the performance of a
process flow - calls near term actions

Teams / Targets - Those who may contribute to

the new process or those who must adapt to the new

process

Champion - Educates, develops actions, facilitates

teams, manages the program; coordinates resources

Success Factors

Involved Leadership
Planning
Project management skills
Simplification before systems
A local Champion
Employee Participation
Capital for capacity and flexibility rather than
cost reduction
Recognition and Pride

Lean and Six Sigma

Lean and Six Sigma Working

Together
LEAN

SIX
SIGMA

IDENTIFYING
WASTE
AND RESOLVING
ELIMINATION/
VARIATION
THAT CAUSES
REDUCTION
WASTE

VARIATION
ELIMINATION/
REDUCTION

Lean Focus on WASTE

Types of muda to be identified, eliminated, significantly
reduced:
LEAN

WASTE
ELIMINATION/
REDUCTION

Over - production: The demand is for 200 today:

But, I can produce 250 and really kick ____!
Waiting: Machine waiting for a person, person waiting
for a machine

Unnecessary/Excessive Processing
Inventory: You pay for it, you store it, you move it,
you damage it, you lose it.

Defects
Unnecessary Movement: people or materials
Independent Inspection

Six Sigma Focus on VARIATION

Types of variation to be identified, eliminated, significantly
reduced:
Process Capability - Does the process
machine, tooling, and controls) meet desired
specification?
Human Capability - Does the operator operate
repeatably?
Measurement System Analysis - Is the
measurement system capable?
Data Accuracy - Are instructions accurate?
Materials Integrity - To specification?
Consistent?

Specification Integrity - Rational across

range of products?

SIX
SIGMA

VARIATION
ELIMINATION/
REDUCTION

Working Together
Ensuring repeatable processes within Takt
IDENTIFYING
AND RESOLVING
VARIATION
THAT CAUSES
WASTE

Time
Eliminating unnecessary processes
Stabilizing process uptime
Reducing the chances for uncommon errors
and defects; reduce tails
Determining appropriate buffers to keep
flowing
Eliminating unnecessary inspection and
testing

Creating the System for Success

Strategy

Lam
Supplier

Customer
Single Piece
Flow Standard
Work

TPM
Quick Change

DOE

I
Lam Kanban

Stack &
Cleat

7.4 Days

CT 74 secs
ST 120 mins

5 days

LEAN

1 Day

CT 850 secs
ST 50 mins
ADT 60 mins

7.4 days
74 secs

$38,000

I
Wind

5.1 Days

CT 60 secs
ST 45 mins

1 day
850 secs

$46,500

I
Dip & Bake

2.1 Days

CT 156 secs
ST 60 mins

$118,000

Final
Assembly

2.1 days
156 secs

.3 Days

CT 474 secs

5.1 days
60 secs

$21,100

I
WSA

.3 days
474 secs

$58,000

RIP Inventory: $316,600

WASTE
ELIMINATION/
REDUCTION

$35,000
Production Leadtime: 20.9 days
Processing Time: 1614 secs

SIX
SIGMA
VARIATION
ELIMINATION/
REDUCTION

Program Plan
Action Plans