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Lean Managemnet Final
Lean Managemnet Final
Norhan
Content :
Lean Tools
2
Lean Methodology
1. Value
2. Waste Elimination
5
3. Continuous
Types of Wastes
improvement 3 Lean Thinking vs.
Traditional
. Thinking
INTRODUCTION: WHAT IS LEAN?
Lean:
A systematic approach aiming to eliminate waste, so that every step adds value to the customer.
Value:
A capability provided to a customer at the right time with an appropriate price, according to the customer’s criteria .
Velocity
Lean
Value
• Reduce Bottlenecks • Process Efficiency
• Increase Process Speed • Identify NVA Steps
• Reduce Waste
Value
Quality Cost Delivery
INTRODUCTION: QUALITY VS. PRICE
Cost:
• The costs for the products being sold must be kept competitive.
• No matter how high the quality of a product is, many people won't buy it if it costs too much.
• Managing costs can be done by reducing waste, improving efficiency, and many other things.
Price
Lean
Manufacturing
Toyota
Agile System Production
System
Lean
Flexible Just-in-Time
Manufacturing (JIT)
system (FMS) Manufacturing
Flow
Manufacturing
INTRODUCTION: VELOCITY & VALUE
Velocity (Flow)
• (Culture + Quality)
• (Speed + Low Cost)
• Six Sigma Enables Lean Speed,
Lean • Lean Speed Enables Six Sigma Six Sigma fewer defects means less time spent
Quality
on rework.
Production Production
1 Production driven from customer demand only
produced when order is placed “ Pull System”
Production driven from sales forecast “ Push System” 1
Problem Problem
2 Problem viewed as oppurtunity for
improvemnet through root cause analysis
Problem viewed as just that problem and run away
from solving it.
2
Work in process ( WIP) Work in process ( WIP)
3 Viewed as sign that process needs to improve
and cosidered it as type of waste should be Viewed as a normal part of operations 3
reduced or elimintaed
THE 8 WASTES OF LEAN MANUFACTURING: Norhan
1: 5:
• The transport waste is defined as any • waste from time spent waiting for the next process
material movement that doesn’t directly .
support it.
2: 6:
• The inventory waste refers to any supply • Overproduction is defined as producing more than
in excess of process requirements is needed, faster than needed, or before it’s
necessary to produce goods immediate needed.
production.
3: 7:
• The motion waste is defined as any • Over-processing refers to any redundant effort in
movement of people that doesn’t production or communication that does not add
contribute added value to the product. value to a product or service.
4: 8:
• The defect waste is defined as the loss of • The waste of unutilized talent refers to
value do to the scrap, repair, or rework of underutilizing
a product that deviates from
specifications.
Norhan
8 Wastes :
Benefits of eliminating 8 Lean
Wastes:
: It increases productivity
: Reduce downtime
Perfection
The 5 Principals Basic Lean Management
Norhan
3. Create Flow
After removing the wastes from the value stream,
the following action is to ensure that the flow of
the remaining steps run smoothly without
interruptions or delays. 5. Pursue Perfection:
Lean thinking and continuous process
improvement a part of the organizational
4. Establish Pull culture. Every employee should strive
towards perfection while delivering
The goal of a pull-based system is to limit
products based on the customer needs.
inventory and work in process (WIP) items while
The company should be a learning
ensuring that the requisite materials and
organization and always find ways to get a
information are available for a smooth flow of
little better each and every day.
work. In other words, a pull-based system allows
for Just-in-time delivery and manufacturing where
products are created at the time that they are
needed
Advantages and Disadvantages of Lean Management Ahmed
Advantages
Customer Interaction
Enhancement
• Maximize Profits • Improves Quality And Value
• Reduce Costs • Reducing Defects
• Increase Revenue
• Selling price is impacted with
• Customer’s viewpoint in mind • Avoiding Potential Mistakes .
• Communicate With Staff
the same product qualities.
• Respond To Customers’
Concerns And Experiences
DIS-Advantages
Implementation
Costs • Switching over is difficult
• Inventory = Waste • Requires Patience, overhead,
• Low Amounts Of Stock. overhaul to work processes.
• Causes Companies To • Transparency is Essential
Depend On Suppliers • High Resistance to Change
• Suppliers Could Potentially • Advanced Planning And
• High Costs For Bringing In Scheduling (APS) Software Can
Derail A Company.
New Equipment. Be Used
S W
• Implementation Costs
Strengths •
•
Inventory Problems
Negative Perception By Staffs
• Quality Improvement • Unbalanced Economies
• Improved Visual Management
• Efficiency Increase Threats
• Labor Reduction
• Problem Elimination • High Resistance to Change
• Safer Facility • Lack of resources (financial, expertise and
• Boost to Employee Morale manpower).
• Lack of adequate training to the stakeholders.
O T
• Space Reduction
Opportunities • Lack of implementation experience.
• Tendency of organization to revert to previous
• Commitment to the lean program practice.
• • Poor management commitment to the
Proper Training for the workforce
• Efficient planning and following up implementation program.
• • Misalignment between lean implementation
Adequate resources allocation and share of
the gains program to the operation strategy.
• Using appropriate lean tools and methods • Inability to Effectively Calculate Projected ROI
• Lean Methodologies Do Not Account for the
Whole System
• Lean Methodologies Do Not Account for
Dynamic Behavior
• Company Resources Are Wasted on Minimal
Impacts
Eman
1 Search
for the Goal to identify
where is the value
2 Analyze
your process to find out
what is of direct value
what is necessary but of no value
what is considered waste
Eman
Plan
Problem is identified and all employees work together to
develop a plan for making improvements or solving the identified problem.
DO
The plan is implemented as per the defined solution by across functional team.
Check
Check the implemented solution and also discuss further
improvements that can be possible or not?
Act
The implemented solution is documented if it has successfully solved the initial problem.
And If the solution is not satisfactory then again the cycle starts
over at the Plan phase for finding out other factors.
Benefits of the PDCA Cycle (Plan-Do-Check-Act Cycle)
Counted –Identify
MEASURABLE measuring
tool/instrument
Results oriented to
REALISTIC target
• Put numbers
• Define procedures
Benefits:
1: Improved Quality
2: Improve in Safety
Dental cabinet:
Dental chair :
Norhan
Poka Yoke :
Analyze :
Control :
Improve
Define Measure
• Find the • Develop
• Describes • Research the • Measure
cause by and
and define frequency of the effect of
carrying out implement
the problem the problem the
problem a solution
adjustment
analysis
Norhan
DEFINITIONS
Bottleneck Takt-Time
• Any resource whose capacity limits the amount of • “The Heartbeat of Customer Demand, It Sets the Pace”
information or material that flows through the process. • Is the rate of time needed to produce one quality part to
• Any resource whose capacity is equal to or less than the meet customer demand
demand placed up on it. • It is used to synchronize the pace of production with the
• Bottlenecks increase cycle time. 03 pace of sales (aligns manufacturing rate to customer 04
demand rate)
• Takt is a German word for beat
Omar
RELATIONSHIPS
Takt-Time
Process Cycle Efficiency
• Takt Time = (𝑇𝑖𝑚𝑒 (𝑡𝑖𝑚𝑒 𝑦𝑜𝑢 ℎ𝑎𝑣𝑒))/(𝑉𝑜𝑙𝑢𝑚𝑒 (𝑐𝑢𝑠𝑡𝑜𝑚𝑒𝑟
• Velocity = (Flow / Responsiveness) 𝑑𝑒𝑚𝑎𝑛𝑑))
• Process Cycle Efficiency = Value-Added Time / Total Process
Lead Time
• If the process consists only of value-added activities, then 03 04
• The process cycle efficiency =100%
Omar
Ideally should be
equal
Omar
REDUCING CYCLE TIME EFFECT
Cycle time & Lead Time 5. Decreasing Production
Only what is needed should be produced, and it should
Only be produced when it is actually needed. Lead Time
2. Reduce WIP
Quality loss Big Loss #6: Startup scrap • Reduce startup production
Tracking and Training.
Mohammed
Lean Tools
Root Cause Analysis Methods
- Cause and Effect Analysis ( Fish Bone 6M)
Omar
Value Stream
• All of the activities required to fulfill a customer request from order to delivery.
• Originated in Toyota.
• Means charting the sequence of movements of:
• Information.
• Materials.
• Production Activities.
Omar
• Waste elimination.
4 IMPROVE •
•
Reduce movement.
Improve lead time.
• Setting the improvement targets.
Disadvantages Limitations
of VSM
• Provides only the production processes at certain moment of
time
• Only one type of product can be analyzed.
• might fail in scenarios with multiple products with no identical
material flow maps.
• Difficult to work with new technologies.
• Becomes Confusing when dealing with complex, multi-tier
product BoMs with multi-level Operation process charts.
• Biased for high volume, low variety manufacturing systems.
• Unable to show the impact on WIP, order throughput and
operating expenses of inefficient material flows.
Omar
Value Stream Mapping Phases
01 02 03 04 05
Execute
Prepare Design Future State Transformation Plan
4 weeks prior to mapping 3 to 6 Months after mapping
Omar
Value Stream Mapping Steps
10. Create Future State Map
1. Create A SIPOC Chart Improve
What is the benefits of the single piece What are the common reason for single
flow ? piece flow failure ?
Just in Time :
1-It is focused on the production of customer's requirement like when they want it, how many quantities
2- In this methodology, we produce the only customer's ordered quantity instead of creating a large
stock of a product.
Ahmed
It reduces unnecessary inventory
1
JIT production systems focus on producing exactly the amount required at exactly the time the customer requires the product. JIT is
also referred to as lean production.
Example of JIT
Kaizen Ahmed
What is Kaizen?
1- Kaizen stands for “continuous 2- Kaizen word comes from the 3- The Lean tool Kaizen includes
improvement” or “small Japanese words “kai” which the involvement of all
incremental means “change or improvement” employees, from top
improvements” of all areas of a & “zen” which means “for management to bottom
company. betterment.” personnel.
Ahmed
Benefits of Kaizen
workplace
The Kaizen method is generally implemented in 5 different steps
2 Analyze the data and method for the current process method.
Implement improvements.
4
3. Show Respect
• Trust the employee’s ability and desire to get the work done.
• The goal of the Gemba Walk is employee development.
• Do not offer solutions during the Gemba Walk.
• You will both collaborate on a solution later. 1. Go and See
03 01 This is an observation, not an interaction or
intervention.
• What did you see?
• Is the process different than expected?
• Does the process achieve the purpose?
• Does the process help the employee successfully
complete the work?
• Does the employee show a clear understanding of
the tasks involved?
• What tools, forms, patterns, or routines are used?
2. Ask Why 02
• What is the purpose of the process or practice you are observing?
• Is there waste (e.g., rework or bottlenecks) in the process or practice?
• What and where are the opportunities for process improvement?
• If the practice is not achieving the purpose, why not?
Omar
Follow the flow of value and observe areas with a high 9. Mix Up the Schedule
potential for waste optimization.
03 07 Gemba walks should not be scheduled at the same
time; mix it up to see how processes may change
4. Focus on Process, 04
05
06 throughout the day or week.
Who? When?
•
•
Who are the people involved in the process?
Who provides input for the processes?
During a Gemba Walk • Are process inputs available when needed?
• Is work from this process being pulled through by
• Who are the “customers” of the process? the next, or do outputs sit idle?
• Who do you talk to when something goes • Is the waste of waiting observed?
wrong? 1. Evaluate the Process.
2. Ask Questions.
3. Document.
What? Where?
• What are the inputs and outputs of the process? • Does the space where the work is preformed conform
• What obstacles inhibit flow or produce waste? to 5S?
• What are you working on right now? • Are necessary materials and equipment conveniently
• What challenges are you facing? located?
• What can you fix? • Do you notice the waste of motion?
• What can’t you fix?
Eman
WHAT IS SMED?
SMED (Single-Minute Exchange of Die) is a system for
dramatically reducing the time it takes to complete equipment
changeovers.
Step 1:
Identify Pilot Area Investigate : Location-Variation in the
changeover time- Opportunities-
Familiarity- Constraint
Step 2:
Identify Elements Monitor : the changeover process
(Procedures-time)
Steps of SMED
Step 4: Finish Cleaning tasks
Convert Internal Prepare parts in advance
Elements to alignment and other
External adjustments
1. Autonomous Maintenance
2. Focused Improvement
3. Planned Maintenance
4. Quality Maintenance
5. Early equipment management
6. Training and education;
7. safety, health and environment
8. TPM in administration
Mohammed
• Benefits of Total Productive Maintenance
(Direct& In-Direct Benefits)
Less unplanned downtime Increase in employee
resulting in an increase in OEE confidence levels
CONTINUOUS FOCUS ON
IMPROVEMENT
CUSTOMER
EMPLOYEE
COMMUNICATION
TQM
INVOLVEMENT
SYSTEMATIC
APPROACH INTEGRATED
SYSTEM
Communication
8. Well-
5. Little Work in 6. Streamlined 7. Clearly
Maintained
Process (WIP) Material Marked Reorder
Equipment
Inventory Handling Levels (Kanban)
(TPM)
10. Noticeable
9. Stress Free
Signs of
Employees
Improvement