Lean production systems

Kaunas, 2018

1
Lean production
„Key to success: to have a system, which shows the problems in
processes. Also human system, which prepares the workers to
be able to identify and solve the problems.“
“Toyota culture“ Jeffry Liker &Michael Hoseus.

Taiichi Ohno of Toyota, the automaker that ranks as one of the

biggest in the world, have studied Ford’s techniques and
methods to create the Japanese automaker’s universally
praised manufacturing methods.
Henry Ford hated waste. He drove himself – and his employees
– to correct operational inefficiencies while also creating better
products.
Is it any wonder, then, that Ford is considered the “Father of
Lean
[6]
Manufacturing”
2
Lean production
Henry Ford and roots of lean manufacturing
Although Ford did not invented the automobile or the
assembly line, he was the innovator of production and
business.
• Minimal losses, maximal value
• Ford astonished the world in 1914 by offering a $5 per day wage
($120 today), which more than doubled the rate of most of his
workers.
• „T“model cars were inexpensive. By 1918, half of all the cars in
the U.S. were Model Ts. Until 1927, the record number
15,007,034 of Ford „T“ cars were built and this record stood for
the next 45 years.
http://ais.utm.my/cps-rg/research-interest/ [6]

3
Lean production
Over 100 years ago Henry Ford and his team contributed to
production development by implementing one of the most
significant innovations in production – first moving production
line.
This simplified the production of Ford T model. The process was
divided into 84 separate steps, carried out by workers’ group
during the car chassis motion through the assembly line.
New process – revolution in production, assembly time of the car
was reduced from 12 hours to 90 minutes.
The production costs, time and staff expenses were reduced and
this made possible to reduce price of Ford T from 850 $ to less
than 300 $. For the first time in a history, this made the Model
T the first quality car to be affordable for a majority of citizens.
http://ais.utm.my/cps-rg/research-interest/ [6]

4
Lean production

http Ford T manufacturing

5
Lean production history

http Ford T manufacturing

6
Lean production
LEAN – history of Toyota production system
• After World war II Toyota was close to bankrupcy.
• The afterwar needs were small, it was unprofitable to reduce
the product price by reducing the production volume. This
predefined the appearance of based on the demand „pull-type“
systems.
• Japan had no posibilities to use the expensive machinery like in
US, therefore the decision was made to reduce the
expenditures and use the automation which is not requiring
relatively high costs.
• Also, Toyota was not able to afford the accumulation of large
stocks.
http://ais.utm.my/cps-rg/research-interest/ [6]

7
Lean production
LEAN – history of Toyota Production System
• Has appeared in Toyota company, Japan as Toyota
production system (TPS)
• Complicated Simple
• Philosophy, perception, standard
• Process of constant improvement
• Emphasis on stock minimization
• Elimination of waste, i.e. elimination of everything, that
increases the cost, but is not creating a value
• Application of pragmatic methods (Useful? Justified?
Reasonable? )
[6]

8
Lean production
LEAN – history of Toyota Production System
In 1950 Toyota Motor was producing 40 cars per day,
whereas Ford was producing 8000 cars per day. The
difference was huge.
Japan stated the task – within 2-3 years to reach and
overcome the US.

1950 Toyota
https://www.toyota.com.bh/about/company/history-of-toyota/images/50_p1_L[1].jpg

9
 Selling price

Expenditure
Lean production

10
Expenditure
Selling price
 Lean production
Waste in production – anything that is not creating the value.
Lean goals:

http://ais.utm.my/cps-rg/research-interest/ [6]

11
Lean production
7 types of waste

https://dckqo7qiohjty.cloudfront.net/wp-content/uploads/2017/09/7_wastes.png

12
Lean production
7 types of waste

• Excess services, information related waste.

• Inventory waste.
• Conveyance, transportation waste.
• Defects related waste.
• Excess work related waste.
• Operational waste.
• Idle time (waiting) waste).
• Knowledge, talent, competencies of the workers are not
used.

http://qualityassociation.lt/wp-content/uploads/2014/11/LEAN-ISO-VIE%C5%A0AJAME-
SEKTORIUJE.pdf
13
Lean production
7 types of waste
1. Overproduction:Are you producing the right amount to
meet your consumers demand or are you going overboard
and generating unnecessary storage costs?
2. Waiting: How much lag time is there between your
production steps? Does someone have to wait for someone
else to finish a task before they can begin theirs? Idle time
means you’re paying for an employee to stay there doing
nothing while he/she waits.
3. Inventory (work in progress): Are your supply levels and
work in progress inventories too high? Do you buy too much
raw material that needs to be stored for a while before it’s
used?
https://www.pipefy.com/blog/basic-concepts/what-is-lean-manufacturing/
14
Lean production
7 types of waste
4. Transportation: Do you move materials efficiently? Are you
working with the transportation alternatives that offer the best
rates?
5. Over-processing: Do you work on the product too many times,
or otherwise work inefficiently?
6. Motion: Do people and equipment move between tasks
efficiently?
7. Defects: How much time do you spend finding and fixing
production mistakes?
8. Workforce: Do you use workers efficiently?

https://www.pipefy.com/blog/basic-concepts/what-is-lean-manufacturing/

15
Lean production
5S principles of Lean
• Sort (necessary /not necessary,
used often/rare, use red tags, etc.)
• Set in order (putting all necessary items in the optimal
place for fulfilling their function in the workplace)
• Shine (cleaning and inspecting the workplace, tools and
machinery on a regular basis)
• Standardize (standardize the processes used to sort,
order and clean the workplace, develop a work structure
that will support the new practice)
• Sustain (sustain the developed processes by self-
discipline of the worker)
http://www.imperatum.lt/5s-sistema/
16
Lean production

http://qualityassociation.lt/wp-content/uploads/2014/11/LEAN-ISO-VIE%C5%A0AJAME-
SEKTORIUJE.pdf
17
Lean production
5 Lean Principles Every Engineer Should Know
1. Value is always defined by the
customer’s needs for a specific
product.
2. Value stream mapping - all the steps
and processes involved in taking a
specific product from raw materials
and delivering the final product to
the customer.
3. Create flow – ensure that remaining
steps flow smoothly with no
interruptions, delays, or
bottlenecks.
4. Pull - deliver products as needed,
“just in time” manufacturing or
delivery.
5. Perfection - process improvement
as a part of your corporate culture
https://www.asme.org/engineering-topics/articles/manufacturing-design/5-lean-principles-every-should-
know/ 18
Lean production
Just in Time (JIT) - first mentioned at Toyota around 1936.

Just in Time (or JIT) is a powerful method to reduce costs and

increase efficiency.
Just in Time is a method where material arrives just on (in)
time when it is needed.

In a perfect JIT world, all material would be either in transport

or currently worked on. There would be no idle inventory
anywhere.

JIT reduces inventory and

production time.

https://www.allaboutlean.com/what-is-just-in-time/
19
Lean production

JIT – just in time – this is valid both for purchased or

delivered material and material processed on site.

Ideally, the moment a worker needs a part, it should

arrive right where he needs it.

The important part is that inventories between

processes should be reduced, and JIT does not only
require an arrival on time but also little waiting times
for material between processes.

https://www.allaboutlean.com/what-is-just-in-time/

20
Lean production
Kaizen
Work  Work
Work = Work+ Improvement
This is continuous improvement, the proctice of the constant
development of production.
Kaizen (Muda - non-value added) exist everywhere related to
people, material and facilities, or the production set-up itself.
Kaizen refers to the series of activities whereby instances of Muda
are eliminated one by one at minimal cost, by workers pooling
their wisdom and increasing efficiency in a timely manner. Kaizen
activities typically emphasize manual work operations rather than
equipment, should be performed by all employees at each job
site.
[x]

21
Lean production
Mistake-Proofing; Poka-Yoke
Methods that help operators avoid mistakes in their work caused
by choosing the wrong part, leaving out a part, installing a part
backwards, etc. Also called mistake-proofing, poka-yoke (error-
proofing) and baka-yoke (fool-proofing).
Common examples of error-proofing include:
•Product designs with physical shapes that make it impossible to
install parts in any but the correct orientation.
•Photocells above parts containers to prevent a product from
moving to the next stage if the operator's hands have not broken
the light to obtain necessary parts.
•A more complex parts monitoring system, again using photocells,
but with additional logic to make sure the right combination of
parts was selected for the specific product being assembled.
https://www.lean.org/lexicon_images/203.gif

22
Lean production
Contact-type error proofing

https://www.lean.org/lexicon_images/203.gif

23
 Lean production
Error-proofing/prevetion (poka yoke)

https://gqsystems.eu/files2/gallery/2016/08/Picture1.png

24
Lean production
Error-proofing/prevetion (poka yoke)

http://phpreaction.com/wp-content/uploads/2016/04/poka_yoke_tuyaux.gif
https://dab1nmslvvntp.cloudfront.net/wp-content/uploads/2017/06/1498225808sim.jpg
25
Lean production

Waller, D.L., 2003,”Operations Management: a Supply Chain Perspective 2nd Edition”, Thompson,
London
26
Lean production
Pull-type system

A pull production system is one that explicitly limits

the amount of work in process that can be in the
system.

A push production system is one that has no explicit

limit on the amount of work in process that can be in
the system.

(Hopp and Spearman "To Pull or Not to Pull")

[x]

27
 Lean production
Pull-type system

A real pull system has an upper limit on the work in progress in it system
(either the entire system or limits on its different loops).
A true pull system starts production only if the WIP limit has not yet been
reached.
Image copyright Christoph Roser on AllAboutLean.com.

28
Lean production

http://www.imperatum.lt/5s-sistema/
29
Lean production
Visual control

• Terminals

• Process
monitoring

• Special
aplications

http://www.redlion.net/sites/default/files/PTVproductshot.jpg

30
Lean production

http://www.imperatum.lt/5s-sistema/
31
Lean production
Andon
A type of visual control that displays the current state of work
(i.e., abnormal conditions, work instructions, and job progress
information).
It is one of the main tools of Jidoka. Often in the form of an
electrical board which lights up to show at a glance the
current state of work operations. Andon boards allow speedy
corrective action to be taken by supervisors when a problem
arises.
Besides indicating abnormal situations, some Andons provide
work instructions (such as quality checks, change of cutting
tools and conveyance of parts) and job progress information.
https://w2.engr.uky.edu/lean/reference/terminology/

32
Lean production

Green – o.k.
Yellow – problem
Red – stopped

[6]

33
Lean production
Andon functions

• Visual help request

• SMS text message
• E-mail message
• Audio – sound signal
• Report

http://oee.lt/lt/sprendimai/andon-sistemu-funkcijos/

34
Lean production
Visual control

http

35
Lean production

Kanban - a small signboard that is the key control tool

for Just-in-Time production.

Kanban serves:
Instruction for production and conveyance
A tool for visual control
To check against over production
To detect irregular processing speeds
A tool to perform kaizen

[https://w2.engr.uky.edu/lean/reference/terminology/

36
Lean production

The functional categories of Kanban are:

• 1-card kanban (referred to as Production Kanban)

• 2-card kanban (referred to as Withdrawal Kanban)
• Part Specific kanban (used for single part family or
grouping)
• Route Specific kanban (used for mix production)
• CONWIP (CONstant Work In Progress)

https://w2.engr.uky.edu/lean/reference/terminology/

37
Lean production
KANBAN = Card + Signal
• Card system that controls production and inventory
• Communicates demand for work or materials from
the preceeding station.

[x]

38
Lean production

KANBAN is the tool to reduce waiting/idle time in

production systems.

Main idea – to inform what the process needs (from inside or

outside supplier exactly when it is necessary.

[x]

39
Lean production

KANBAN

https://encrypted-
tbn0.gstatic.com/images?q=tbn:ANd9GcTkhA2gDNY6icnmLr_gsYfuoHlxOBiUHqto2D4p5RDQ6jI2uwynq
w 40
Lean production
Visual control

http

41
Lean production
Work Instructions

[x]

42
Lean production
Jidoka
Jidoka along with Just-In-Time, is one of the two main pillars
of the Toyota Production System. It refers to the ability of
production lines to be stopped in the event of such problems
as equipment malfunctions, quality problems or work being
late either using machines which have the ability to sense
abnormalities or using workers who push a line-stop button.
This prevents passing on defects. Reoccurrence prevention
becomes simpler as abnormalities become more obvious
making it possible to “build in quality at the production
process”. At the same time, since defects are prevented
automatically, inspectors become unnecessary, which in turn
results in significant labor savings.
https://w2.engr.uky.edu/lean/reference/terminology/

43
Lean production

[x]

44
Lean production
JIDOKA

https://www.lean.org/lexicon_images/233.gif

45
Lean production
What you have learned about lean production?

1. ...
2. ...
3. ...
???

46
References
1. Taiichi Ohno. Toyota production system
2. Hubertas Petružis. Lean projektų įgyvendinimo patirtis, esminiai
principai ir kliūtys: Libros grupės ir kitų įmonių pamokos.
3. Bill Trudel. Relentless Improvement
True Stories of Lean Transformations
4. Jean-Baptiste Waldner. CIM: Principles of Computer Integrated
Manufacturing", Jean-Baptiste Waldner, John Wiley & Sons, 1992.

47
Thank you for attention

48