Lean Production Strategy
Lean Manufacturing Strategy
Lean Production/Lean Manufacturing
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JIT Production
Lean Production
Lean Manufacturing
Toyota Production System (TPS)
Pull system - Kanban System
The first implementation - Toyota Motor Company, Mr Taiichi Ohno,
50-ties of last century
Lean Manufacturing
Lean Manufacturing – a philosophy of manufacturing
based on planned elimination of all waste and on
continuous improvement of productivity
(p = outputs/inputs)
Lean Manufacturing allows to produce more using less
resources – more products with less materials, labour, time
and energy
GM
FRAMINGHAM
TOYOTA
TAKAOKA
Assembly hours
per vehicle
40,7 hours
16 hours
Defects per 100
vehicles
130 defects
45 defects
Average inventory 2 weeks
leveles
2 hours
In 80ties and 90 ties, the statistics in Polish plants where much more worse
Lean Manufacturing dates
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In early 1950s Toyota Motor Company starts to implement new approach to
manufacturing, called today TPS – Toyota Production System
In 1970s – some western companies start to recognize the specifics of TPS.
The new production strategy was called Just In Time (JIT)
In 1980s – several successful implementation of JIT system in western
companies. JIT strategy had started to be obligatory part of production
management topics in university textbooks
In 1991 „The Machine that Changed the World” was published by
Womack, Jones and Roos. They introduced there the term „lean
manufacturing”
In 1980s and 1990s JIT/Lean Manufacturing was started to be implemented
in all automotive companies in the world and is developed there until now.
Also in other industries (as electronic, home appliances industries) Lean
Manufacturing is successfully developed.
In 1995 - foundation of The Lean Enterprise Institute in USA
In 1998 „Learning to see. Value Stream Mapping to Create Value and
Eliminate Muda” was published by Rother and Shook
In 2004 Liker published the book The Toyota Way: 14 Management
Principles
Lean Production Goals
To satisfy customer make and delivering right product, in right
quantity, with right quality, in right time and to right place
Goals of Lean Production
– Zero inventory
– Zero defects
– Zero breakdowns (zero overdue supplies)
– Zero set up times
– Zero transportation
– Zero lead times (value added time = lead time)
– Lot size = 1
Principles of Lean/JIT Production
(Robert W. Hall – Zero Inventory)
1.
2.
3.
4.
5.
6.
Make what customer wants
Make how many customer wants
Make immediately when requirements appears
Make with perfect quality
Make without waste
Make with people involvment and development
Lean Manufacturing perspective on waste
• A key principle of the LM philosophy is never ending effort to
eliminate waste
• What is waste? Waste is performing any activity that does not add
value to the product.
• Value is everything for what a customer is ready to pay.
• Major sources of waste (Muda in Japanese):
1.
2.
3.
4.
5.
6.
7.
8.
Overproduction
Waiting
Transportation
Inappropriate processes
Inventory
Unnecessary motion
Defects (creating products that require rework or must be scrapped)
Underutilization a knowledge of employees
Waiting
Defects
Overproduction
WASTE
MUDA
Inventory
Transportation
Inappropriate processing
Unnecessary motion
Overproduction
What is overproduction?
=Produce more then the next process needs
=Produce erlier then the next process needs
=Produce quicker then the next process
Waiting
Extra
work
Inventory
Handling
The objectives of lean manufacturing
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Zero inventory
Zero machine break down
Zero defects
Zero transportation
Zero set up time
Lot size equal to one
Value adding time equal to total lead time
What percentage of lead time (cycle time) has value adding time in a
typical enterprise ?!
(<1%, 5%, 10%, 20%, 40%, 60%, 80%)
Zero waste in a process means: Value adding time = Total lead time
The Material Flow Cycle
Raw materials - Wood
Final product - Boards
Process Efficiency Indicator
- Adding value activity
- Transportation
- Inventory
- No action,
waiting
- Products control

PEI 
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(
+
+
+
+
)
Added value time
PEI = ------------------------Total cycle time
100%
Operations management objective: increase PEI
How to increase PEI ?
Reduce and eliminate no adding value activities
Traditional and Lean approach in
improving productivity
Traditional approach:
Lean/Kaizen:
- work harder, longer and quicker
- improve value stream to
eliminate waste
- add devices and people
Adding
value
Waste
Lead time
Elements of Lean Manufacturing System/TPS
(Toyota House)
THE HIGEST QUALITY, THE LOWEST COST, THE SHORTEST LEAD
TIME, THE HIGEST WORK SAFETY, THE HIGEST MORALE
JUST IN TIME
Takt time & One piece flow
CONTINOUS IMPROVEMENT
-Waste elimination
Andon
Kanban
-5 S
SMED
-Problem solving, 5”WHY”
Pull system
Integrated logistics
JIDOKA
-Genchi genbutsu
PEAPLE & TEAM WORK
HEIJUNKA
VISUAL MANAGEMENT
WORK STANDARISATION
GENERAL CONCEPT OF TOYOTA WAY
Poka – yoke
TPM
5 WHY
Kanban System (one kanban card system))
KP
Work center 1
Work center 2
KP
KP
KP
KP
KP
Container with kanban
KP
Production Kanban
Kanban System (two Kanban card system)
Floor space for work
center 1 containers
Work center 1
Floor space for work
center 2 containers
KP
KT
KP
KT
Work center 2
KT
KP
KT
KP
2
KP
1
KT
KP
Production Kanban
card board
KT
Transfer kanban card
board
KP
KP
KT
Kanban container
Production Kanban
Transfer Kanban
Kanban card
Defects
Unsynchronized
production
Machines' breakdown
Long
times
up times
set up
Long set
Inappropriate
Lay out
Inflexible
employees
Wrong work
methods
Lean Manufacturing and inventory
Inventory level
Value stream with constraints
Tooling
Final
products
Supplier
Machine’s
Set up
Machine‘s
breakdown
Manufacturing
Cycle
time
Customer
Assembly
Lean value stream after waste and
constraints reduction
Supplier
Constrain
Constrain
Constrain
Customer
A material flow is smooth and simplified
Principles of Lean Implementation
1. Specify value from the standpoint of the end customer by product
family.
2. Identify the value stream for each product family, eliminating
whenever possible those steps that do not create value.
3. Create continuous flow - make the value creating steps occur in
tight sequence so the product will flow smoothly toward the
customer
4. Pull the value. Let customers pull value from the next upstream
activity.
5. Cotinuous improvement. As value is specified, value streams are
identified, wasted steps are removed, and flow and pull are
introduced, begin the process again and continue it until a state of
perfection is reached in which perfect value is created with no
waste.
Steps of Lean Manufacturing
implementation
1. Identify value
5.
Customer value
identification
Seek perfection
Lean loop
2. Value stream
identification
4. Establish pull
(waste
recognition)
3. Create flow
(one piece flow)
Value stream mapping
“Whenever there is a product for a customer, there
is a value stream. The challenge lies in seeing it.” Learning to See, Lean Enterprise Institute
Value stream mapping
• Value stream mapping is an inherent
method of Lean implementation in an
enterprise
• Designing the future value stream:
– Identify families of products
– Identify customer value.
– Create a current state value stream map.
Recognition of waste
– Create a future state value stream map
Current state value stream map
Future state value stream map