Expertise and Managerial Competence Centre

What is Lean Manufacturing?

Lean Manufacturing is "A systematic approach to identifying and eliminating waste through continuous improvement by flowing the product at the demand of the customer."

The goal of lean manufacturing

The goal of lean manufacturing is "to eliminate the eight wastes of lean- over production, motion, inventory, waiting, transportation, defects, underutilized people, and extra processing. Lean targets non-value-added activities; these are the same activities that contribute to poor product quality" (Peterman, 2001, p. 24). In other words, lean manufacturing looks for those activities that do not add value and then eliminates those activities or processes. Anything referred to as non-valued added means it is an "activity that does not add market form or function or is not necessary" (Peterman, 2001, p. 24). Lean manufacturing is intended to eliminate, reduce, simplify or integrate non-value added activities.

Peterman reported that about 95 percent of a company's total lead time is filled with non-value added activities. These include waste in numerous areas including: machine setup, inspection, waiting, storage, transport, order processing, machine breakdown and so forth.

These activities often contribute to lower qualities. Examples include: damage during transportation, rework double handling; misidentification in storage; loss in storage; setup adjustments that results in a marginal product; breakdowns of machines instead of preventive maintenance; and inspection versus process capability. The worst waste of time, however, is usually a lack of communication or miscommunication between operators of different components during the process between beginning and the finished product (Peterman, 2001, p. 24).

Lean business & Lean manufacturing

Surprisingly, some of the biggest opportunities and most powerful results in a Lean Management implementation come from service or transactional processes - even in a manufacturing company!  Typically at least 70% of the cost of a business is outside of the manufacturing floor, yet these processes are often ignored in process improvement efforts.

Many people still hold firmly to the belief that Lean Manufacturing techniques only apply to the manufacturing sector. Why is this?

Lean Manufacturing principles were first developed for the manufacturing sector. The key focus was to eliminate waste and increase production velocity to reduce lead time. This has worked well for many organizations throughout the world. However it soon started to became obvious that manufacturing processes are initiated by non-manufacturing activities.

Information about which items to produce next requires a piece of paper that is usually generated by a non-manufacturing support department. Many companies who have implemented lean, soon begin to realize that it's possible to manufacture their products in hours, while it can takes days or even weeks to receive the paperwork to activate their manufacturing process.

Lean Manufacturing techniques are used in many different business sectors today. These include non-manufacturing organizations, i.e. hospitals, service organizations, military, government and education.

The power of lean has been utilized and proven by many world class organizations all over the globe. Every day another company is implementing lean. Why is this? 

It is for one simple reason - to put their business ahead of the competition and to improve customer satisfaction. Satisfied customers return again and again to continue doing business with your company. All you need to do is to track three easy metrics to determine if you are moving forward - Quality, Cost and Delivery. If you can manufacture a quality product at a low cost and deliver it on-time, every time your company will be ahead of the competition by miles.

Customer satisfaction and profits go together. Profit is the reward for customer satisfaction. Increase customer satisfaction and you're reward is higher profits. This is the best method to maintain or increase market share.

OUR PROGRAMS

Learning for the bottom line:

Lean Manufacturing and Lean Business techniques have revolutionized many organizations in the last 20 years. Companies of varying backgrounds can be found implementing Lean as a vehicle to improve product quality, delivery performance and to reduce cost. In parallel many organizations also find themselves reaping the benefits of increased employee satisfaction through the true empowerment Lean provides.

Lean workshop

Participants of this five-day workshop will be exposed to production system fundamentals and the most powerful lean tools. During this course, participants will learn how to eliminate waste in their processes. We demonstrate the superiority of pull systems and show different implementation options. Most concepts and tools will be applied during hands-on exercises. As part of the workshop participants will lean a traditional manufacturing process by applying the methods and tools they have learned.

Upon completion of the workshop participants will:

• Understand the philosophy and techniques of Lean.
• Be able to apply the Lean tools in their work environment.
• Immediately generate savings through the application of these techniques.
• Have experienced the application of the tools during the training week.
• Understand the organizational infrastructure requirements for Lean.

During the workshop these topics will be covered:

• Philosophy, methodology and tools of Lean business.
• Process analysis .
• Process mapping - This tool develops a system-based understanding of the existing process including settings, inputs, outputs, process steps and sequence of events.
• Spaghetti charts - Evaluation of the physical flow and travel distance of product moving through the facility. This establishes a baseline for eliminating transport waste from the process.
• Video process analysis - Using a video camera to capture process and waste information and analyze it in a structured manner. The tool helps participants to see and eliminate waste that is often not intuitively considered waste.
• Lean Basics I & II.
• Waste identification - Discussion of the 7 types of waste (overproduction, rework & rejects, inventory, motion, processing, waiting and transport) and the associated symptoms of each.
• 5C - Discussion of the 5Cs (Clear out, configure, clean and check, conform, customize and practice). Explanation of how the 5Cs are key components in establishing workplace discipline.
• Cell layout - Demonstration of several different types of cell configurations that are used today. The positives and negatives associated with each are demonstrated. Both inter-cell and intra-cell layout to maximize flow are discussed.
• Visual workplace - Importance of a visual workplace and information requirements. Discussion of how to organize a work area visually with metrics, material information, issues, team information, etc.
• Capacity analysis - Assessing the capacity of the process and identifying the constraints or bottlenecks. Includes learning how to use “capacity analysis worksheets”.
• Standard work - Organizing the operator tasks so that the process minimizes motion and maximizes productivity within take time. Includes learning how to use “standard operations worksheets.”
• Line balancing - Understanding how to divide the work among the team so that it is balanced and meets the take time.
• Mixed model - Discussion on how to efficiently run a line with multiple configurations using a lean production system.
• Take time - The take time establishes the beat of the factory and the lines. In this section participants learn its significance and how to calculate it. The take time is used to establish resources and standard work.
• Cross training - Discussion of the importance of cross training in assuring worker safety, minimizing worker fatigue and maximizing worker productivity both within and between subassembly cells and/or production line positions.
• Product Delivery Systems I, II & III.
• Push vs. Pull - Factual discussion and demonstration on how push and pull systems differ technically and how a pull system improves process performance. (Hands on exercises & simulation included).
• Line design (CONWIP to Kanban) - The options for a pull system lie on a spectrum and the proper selection depends on issues like shared resources, batch or flow processes and product mix. This module explores implementing a pull line in practice. (Hands on exercise included).

Whether you need Lean Manufacturing, Lean Service, or some of both, Lean Six Sigma Flow system provides a comprehensive solution.

Lean implementations start with simple tools like 5S and Value Stream Mapping, but those only scratch the surface of what can be accomplished using Lean and Flow methodologies.

Lean Six Sigma Flow targets breakthrough results by fundamental changing how a process flows.  You consider the actual data from the process in conjunction with marketplace-driven requirements and strategic goals to determine the best process design.

With this system it is not uncommon to see a 15-25% increase in productivity or capacity, 70-90% reduction in FGI and WIP, and 25-35% space savings.  This results in significant working capital reduction with better response or cycle time, often with fewer mistakes.

The most basic concept in Lean Flow process improvement is that all work can be understood as a process or a series of processes.

Data is gathered to describe the process, so it can be re-engineered to eliminate wasted activity and focus on delivering the desired results in the most efficient manner.  This is as true of a service or administrative process as it is of a manufacturing operation.

The key to maximum productivity is a well-designed process run by trained and flexible employees who can follow simple signals that tell them where their skills are most needed at any given time.

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