Transcript Lean Manufacturing for The New Haven

Lean Manufacturing
For
Lean Times
2009 Lean Ideas, All Rights Reserved
1
Lean Manufacturing
Principal Thrust:
The Total Elimination of Waste
Result: Continuous Improvement
2009 Lean Ideas, All Rights Reserved
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A Simple Definition
Deliver the most value from your customers
perspective while consuming the fewest
resources.
Or
Do more and more with less and less
-Womack, James P. & Daniel T. Jones. Lean Thinking.
Simon & Schuster, 1996
2009 Lean Ideas, All Rights Reserved
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TPS
Toyota Production System
Just-In-Time
(Materials needed, when needed, and
in the quantity needed)
-Shortened lead time
-Reduced operations other
than processing
-Reduced inventory
-Obtaining a balance
between processes
-Problems become clear
Autonomation
(Automation with Human Touch)
-Problems become clear, solutions
are found and implemented
-Quality assurance
-Heightened sense of need for
improvement
-Accepting challenge for a higher
level
-Management centered on
controlling abnormalities
2009 Lean Ideas, All Rights Reserved
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TPS
The Minus-Cost Principle
Traditional formula:
Cost + Profit = Selling Price
Minus-Cost formula:
Market Price - Cost = Profit
Manufacturers Can No Longer Control Margins
by Increasing Selling Price
2009 Lean Ideas, All Rights Reserved
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TPS
The Ultimate Response to Demand
Is Production To Order
The requirements of production to order:
-High diversity
-Low-quantity production
-Quick delivery
-Load fluctuation handling
Make What You Sold, Not What You Plan To Sell
2009 Lean Ideas, All Rights Reserved
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What no one tells you about Lean
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HO-HUM!
Why Doesn’t Everyone Do This?
• Easy to Agree With
• Hard To Do
Why Is It So Hard?
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All Our Current Processes Are
Built for Batch
• Forecasting systems
• Factory layouts and equipment base
• Computer programs/systems
• Accounting systems
Accounting and Computer Systems are
Biggest Hurdles
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Lean is not
Some Manufacturing Thing
• Not just an element of strategy
• Cannot be delegated down in the
organization - without first removing the
barriers
–
–
–
–
Make the month
Absorption accounting
MRP and other computer systems
Direct to indirect employee measurements
• Try it bottoms up - never works
2009 Lean Ideas, All Rights Reserved
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Lean Priorities
Quotes/Order Entry
2
Application Engineering
Planning/Scheduling
4
Purchasing
Receiving
IT
Material Stores
Legal
Production
Finance
1
Warehousing
Internal Controls
Shipping
Human Resources
Logistics
Environmental
Invoicing
Regulatory Compliance
Collection
Internal Support
External & Future
Customer Relations
Vendors
Marketing
Sales
Advertising
R&D
5
3
Returns-Credits-Deductions
2009 Lean Ideas, All Rights Reserved
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LEAN PRIORITIES
1.
2.
3.
4.
5.
6.
7.
8.
One Piece Flow
Set-Up Reduction
Quality at the Source
Equipment Performance(TPM)
Standard Work
Shorten Demand Horizon
Make Every Product Every Day
Pull System
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THE RETURN
•Shorter Lead Times
•Reduction of Defects
•Better Service To Customers
•Increased Inventories Turnover
•Greater Control of Expenses
•Reduction of Expenses
•Additional Capacity
•Alternative to2009Investment
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