Process 1 Process 2 Process 3

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2 Lean is a system approach to eliminating waste (NVA) and creating value through continuous improvement in pursuit of perfection by flowing the product at the pull of the customer Customer supplier supplier supplier Customer Right information Customer Supplier pisithc99@gmail.com Customer Right quality Right time Right quantity Purchasing Planning Sales Right quality Right time Process 1 Process 2 Process 3 Right quality Right price Right quantity

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5 Lean implementation 5 steps 1 Value definition with HOQ, CTQ, SIPOC 2 Value stream analysis with process chart, preparing data to do VSM 3 Creating flow by eliminating bottlenecks from Man, Machine, Material, line balance & supplier integration, Lean-supply chain 4 PULL; Changing operation planning from Push to Pull by Takt Time Starting at any step without problem 5 Perfection Continuous improvement-kaizen by employee

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8 He is LEAN innovator Taiichi Ono former vice chairman of Toyota identified 7 wastes(8 waste now) or Muda are as following Actually, he innovated LEAN

9 Evolution of manufacturing process Lean process is the latest working method of the mankind Deming P-D-C-A 1986 Kaizen; Masaaki Imai

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11 Lean begins with JIT of Toyota in 1975 and stay there about 30 years. Lean has been developing with many tools then progress to the lean management system where it likely stays for about 20 years, lean moves beyond factory to logistics, construction, banks, government works, healthcare industry and many more Just-in-time, Takt time 5 S, Kanban, pull system visual control Kaizen, PDCA Employee competency TPM, SMED VSM Supplier integrated Six sigma, lean agile pisithc99@gmail.com

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13 1 Value definition

14 INPUT = Right quantity, Right time, Right place, Right quality, Right information Analyze supplier & customer with SIPOC Supplier Input Supplie r Supplier Supplier Input Input Input Input Input Input Factory Process Operation 1 Operation 2 Operation 3 Outpu t No defects No bottlenec k Custome r Good quality Ontime Deliver y Supplie r Input Input Operation 3 Low costs Competitiv e price

15 Machine Need Driver CTQ P = Process Q = Quality Ease of operation & maintenance Should apply every process in the company Operation Maintenance Modification Q: Disqualified operator P: Recruitment Q: Easy to set up P: Training-W/I Q: digital control Q: MTBF P: PM system Q: Maintenance costs P: TPM system Q: Downtime P: TPM system Q: mistake proofing P: W/I Q: Standard P: less special tool reqd.

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17 2 Value stream analysis And mapping (VSM)

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20 why product/service/design/information are not flowing what/where is bottleneck? Supplier Forecast purchasing Marketing Demand Customer Capacity Most 3 defects Lead time Late delivery planning schedule Demand Defects found Lead time Specifications 65 pcs/hr. WIP 55 pcs/hr. WIP 100 pcs/hr. WIP 45 pcs/hr. WIP 75 pcs/hr.. Most 3 defects Most 3 defects Most 3 defects Most 3 defects Most 3 defects % downtime % downtime % downtime % downtime % downtime Changeover time Cycle time Waiting time Changeover time Cycle time Waiting time Changeover time Cycle time Waiting time Changeover time Cycle time Waiting time Changeover time Cycle time Waiting time

21 3 Flow Eliminate functional barriers and develop a product focused organization that dramatically improves lead-time.

22 operation Customer requirement/hr. (Takt time) Bottleneck Series

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24 Pillar TPM; 1 Education Single and needle training lockstitch Machine component

25 TPM; Knowledge of machine parts and it s operation Pillar 1 Education and training

26 2 years

27 Lean supply chain Pisith Chooyong International Lean Consultant, Independent Consultant UN-ITC/UNCTAD

28 The process of managing the flow of material and information beginning at the point of origin to the point of consumption

29 Lean is a system approach to eliminating waste (NVA) and creating value through continuous improvement in pursuit of perfection by flowing the product at the pull of the customer Customer supplier supplier supplier Customer Right information Customer Supplier pisithc99@gmail.com Customer Right quality Right time Right quantity Purchasing Planning Sales Right quality Right time Process 1 Process 2 Process 3 Right quality Right price Right quantity

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31 Benefits of Lean supply chain management Reduced excessive inventory Money tied up with inventory become available Reduced space in warehouse, production area Reduced equipment to keep excessive inventory Reduced material handling equipment Reduced waiting times Reduced procurement time Stop defective products at their source Increased profit

32 Lean supply chain management differs ค ณสมบ ต แบบเด ม Lean supply chain จำนวน และโครงสร ำง มาก : เน นท vertical น อย เน นclustered การ outsource Cost-based เน นราคา เป น Strategic partner Relationship focus focused แต ละ order ผลประโยชน ร วมก น Selection criteria Lowest price ราคาต า Performance ผลประกอบการ Contract length Short-term Long-term Pricing ราคา เท ยบราคา แข งราคา ต งเป าท ลดต นท น Price change Upward ม แต จะเพ ม Downward ลดลง Quality Inspection-intensive Quality at sources Delivery Large quantity Smaller quantity (JIT) Inventory buffer Large Minimized, eliminated Information flow Directive; one way Collaborative; two-way Technology sharing Very limited Extensive Mutual commitment Very limited; nonexistent high Production flexibility low high Communication Limited; task-related Extensive; multi-level

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34 Lean supply chain management principles

35 Mutual reinforcing Lean practices Translate this principle into action Design supplier network architecture ๐ Design supplier network driven by strategic trust ๐ fewer suppliers cluster control ๐ supplier selection based on performance Create flow and pull throughout supplier network Establish cooperative relationship & effective coordination mechanism Maximize flexibility and responsiveness Optimize product development through early supplier integration Integrate knowledge and foster innovation ๐ Linked business processes IT/IS infrastructure ๐ 2-way information exchange & visibility ๐ Synchronized production and delivery (JIT) ๐ Joint problem solving; mutual assistance ๐ Partnership & strategic alliances ๐ Open and timely communication ๐ Seamless information flow ๐ Flexible contracting ๐ Rapid response capability ๐ Integrate supplier early into design & product development ๐ Collaborative design ๐ Target costing; design-to-cost ๐ Open information & information sharing ๐ Knowledge sharing & technology transfer ๐ Aligned technology roadmap

36 Supplier performance report

37 Bottleneck # 4 Not fully utilized employee s talent And Competency development process

38 Not fully utilized employee s talent

39 Lean philosophy Before making products Making people

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42 Are they smart company? Why?

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44 4 Pull system Changing from PUSH system to PULL system With Takt time of customer

45 Planning with Takt time is Just-In-Time production Producing what is needed, when it is needed, With a minimum amount of needed, With a minimum amount of materials, equipment, labor and space.

46 Working faster than the accepted quality level is destroying quality, lean is just-in-time speed

47 Unbalanced output each operation and Takt Time overproduction Takt time underproduction

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49 Just-in-time Few pieces flow

50 What is definition of Takt time Takt time, derived from the German word Taktzeit, translated best as meter, is the average unit production time needed to meet customer demand. For example the customer wants to buy 10 units per week, the average time to build a unit must be 4 hours (or less)

51 Takt Time is not Cycle time, is not process time, but it is Amount of product as required by customer per week /per day/ per hour Takt time = Work minute per day amount of goods required by customer/day Takt time maybe greater than cycle or lesser

52 Collect defects data Preparing histogram Pareto Diagram Top 3 defects Brainstorming with Why-Why analysis and 5W + 1H Questions Generate countermeasures Create steps to implement countermeasure Design improvement action plan 52

53 Preparing histogram Measurement Unit: Pieces found per 100 kilos of lint Source: Lucky spinning, Inspected from 5% sampling size of the bale

54 Pareto diagram % Pareto diagram is an accumulated figures of the top 3 contaminants which is equal to nearly 80%

55 understand Mgt. Building culture Brainstorming Who caused the problem must attend conductor Relax, not push down idea Motivate others method Participant write in paper Post on board Combine The ideas Finalize idea

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57 Why # 1 Why # 2 Why # 3 Why # 4 Problem Example Why-Why analysis & How

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