Lean Principles and Applications

Transcription

1 Lean Principles and Applications Pawley Institute School of Business Administration School of Education & Human Services School of Engineering & Computer Science Fall

2 What Happens During the Course Introduce the lean philosophy. Become familiar with lean terms and tools. Build awareness of current reality. Begin to change your way of thinking. 2

3 What Happens After the Course Internalization of lean concepts. Deep understanding of current reality. Create a change-receptive culture. Recognize and attack causes of waste. Never ending quest for perfection. 3

4 Pawley Institute Created at the behest and financial contribution of Mr. Dennis Pawley to develop a lean curriculum and advance lean learning for OU students. Mission Give Oakland University, its students and graduates, and the community a competitive advantage through education, research, and the application of lean principles and practices. 4

5 Pawley Institute Similar to major corporations, universities must remain competitive to produce a better product future employees. There s a great need to expand educational opportunities to students nationwide. As we look forward to the next century, America can only remain a leader in manufacturing through joint efforts between universities and corporations. That s why developing specific curricula to meet those challenges are so important Dennis Pawley,

6 Brief History of Lean Early 1900 s, Henry Ford produced the first 1,700 cars in 3 different models on Piquette Avenue in Detroit, where the Model T prototype was also designed and the first ones were initially produced in a lean fashion. Due to the growing demand for the Model T, manufacturing and assembly was moved to the Highland Park factory. Through experimentation Ford continued to lower the cost and price where eventually the moving assembly line was developed, and the system for mass production was born. 6

7 Brief History of Lean Originally known as the Toyota Precepts, the development of modern day lean production system is often associated with five people: Sakichi Toyoda (family name) Kiichiro Toyoda Eiji Toyoda Taiichi Ohno Shigeo Shingo 7

8 Brief History of Lean In 1933, Kiichiro Toyoda (son of founder, Sakichi Toyoda) formed Toyota Motor Co. as a spin off from Toyoda Spinning and Weaving, a successful manufacturer of fabrics that introduced the concepts autonomation and JIT. In April 1936, production of the Toyota Model AA began. However, prior to the official production launch of vehicles from Toyota Motor Company, the historic pilgrimage by Kiichiro was made to the Ford Rouge complex in Dearborn, Michigan. 8

9 Brief History of Lean After starting at the Toyoda Spinning and Weaving, Ohno joined Toyota Motor Co. where he led the refinement of Toyota Production System (TPS) for almost 40 years. He also visited US auto plants and noted then that American autoworkers were nine times more productive than their Japanese automotive counter parts. Based on the high productivity of Japanese textile workers, Toyota concluded that the disparity was not in the people but in the system of production. 9

10 Brief History of Lean Contrasts between Ford and Toyota in 1950 s. Ford Toyota Each assembly plant specialized in its own product family. Rouge alone produced 7000 similar vehicles/day. Mass production based on process villages, each with their own large stockpiles or batches of materials. Based on limited post-war resources, plant produced a variety of vehicles in small volumes (40/day). By 1950, after 13 years, only a total of 2700 vehicles were produced. It was not feasible to carry large stockpiles and it was absolutely essential to convert invested capital to revenue as quickly as possible. 10

11 Brief History of Lean Due primarily to these external forces, Toyota executives came up with a completely different way of thinking about manufacturing. From 1947 to 1980, Toyota developed an alternative to the Ford (mass) production system. Know as the Toyota Production System (TPS). 11

12 Brief History of Lean The term lean was introduced in a Sloan Management Review article (1988) about the future of the automobile by John Krafcik and John MacDuffie. Based upon a 5 year, $5 million MIT study of 37 automotive plants in 17 countries. The (inevitable) book published in 1991 summarizing this study, The Machine that Changed the World by Womack, Jones, Roos. Coined the term lean production to describe the Toyota Production System. 12

13 The Philosophy of Lean Never ending quest for perfection and a continuous, systematic elimination of waste and its root causes. Constantly shorten the lead and cycle time by streamlining the flow of production throughout the value stream. Lead: From design concept to customer satisfaction. Cycle: From customer order to delivery of product or service. Seek to maximize operational efficiency, throughput, flexibility, quality, costs and responsiveness by increasing the effectiveness of people, equipment and systems. Overriding respect for people and appreciation of human creativity. 13

14 Some Definitions of Lean The systematic approach in identifying and eliminating waste, or non-value added-activities through continuous improvement by moving the product at the pull of the customer in pursuit of perfection (NIST/MEP). An operating philosophy in which the best quality, cost and delivery of a product or service is achieved through shortening the production flow by eliminating waste (Toyota). Give the customer what they want when they want it, and don't waste anything (Anonymous). A strategy for remaining competitive through the endless pursuit of waste elimination (Gemba Research). 14

15 Myths and Misconceptions Lean is a Japanese philosophy.... concepts and principles that apply only to the automotive industry or manufacturing.... means busting unions and getting rid of people.... is the magic pill cure for all business and industry problems.... is just a flavor of the month, a passing fad.... is a grass roots program. 15

16 Definition of Value A product, service or information provided to a customer at the right time, in the right amount, for an appropriate price, as defined in each case by the customer. 16

17 Definitions Value Added Operations Anything that transforms or further increases the market form or function of a product, sub-assembly, information or service That is, those things the customer is willing to pay for. Nonvalue Added Operations Any activity that absorbs or consumes resources (material, time, equipment, people, paper, space, etc.) without creating value. Typically, two types: 1. Type 1 - can be eliminated immediately. 2. Type 2 - cannot yet be eliminated due to current state. 17

18 Nonvalue Add = Waste Waste exists in hundreds of forms in virtually every workplace causing slower production, decreasing efficiency and consuming resources. It is traditionally divided into 7 forms. Waste is often difficult to see because: People appear to be busy. Sub-optimization of process villages vs. optimizing entire value streams. Comfort in legacy systems and old habits. 18

19 The 7 Wastes 1. Waste from over-production. Only make what you can sell. 2. Wasted time (queuing). Small lot sizes with planned order release. 3. Transportation waste. Minimize transportation of raw materials, tools and parts. 4. Processing waste. Change part design, reduce functionally unnecessary tolerances and exam process plans. 19

20 The 7 Wastes 5. Excess inventory or Work-In-Progress (WIP). Additional costs due to space, obsolescence, damage, delayed defect detection and handling. 6. Waste of motion. Motion consumes time and energy. 7. Defective products. Incur rework costs, deplete resources and negatively impacts customer perception. 20

21 Lean vs. Nonlean Culture Lean Nonlean Produce only what is needed when it is needed. Production is based on anticipated need. Overproduction is bad. Never be satisfied with current reality. Eliminate bottlenecks by increasing inventory. More and faster is better. If it ain t broke, improve it. If it ain t broke, don t fix it. Never pass on a defect. Don t stop production. Work on root causes of problems. supervisors are responsible for enabling workers to do their jobs more effectively Fire fight problems. Front line workers are responsible for output. 21

22 Running Toyota is like trying to pull a handcart up a steep hill -- there's always tremendous danger. If we relax, even for a moment, we could lose momentum and be thrown to the bottom Fujio Cho Former CEO - Toyota 22