Lean Manufacturing

Lean Manufacturing Mission Statement

  • Teamwork
    • Union workers say the problem is with engineer's design of parts, they are just assembling what they are given
    • Automation doesn't solve the problem
    • Lean way of thinking - we are all in this together for the long haul, so if we all make minor improvements and how we can help the next person then we all win
    • “…Behold, the people is one, and they have all one language; and this they begin to do (e.g. build tower of Babel): and now nothing will be restrained from them, which they have imagined to do.” (Genesis 11:6)
  • Create more customer value with less work by reducing waste
    • customer value is defined as what the customer is willing to pay for

The Elegant Solution

  • “Where a maximum effect is achieved with the smallest and simplest effort”

Visual Control with Shadow Toolboards

Lean Six Sigma

  • “Lean Six Sigma is a combination of two powerful methodologies: Lean and Six Sigma. The Lean toolkit provides ways to streamline processes by reducing Waste and the Six Sigma toolkit provides tools to reduce defects by conducting root cause analysis. Together, they provide the fastest, most effective way to improve processes.” (Yellow Belt Training)
  • Lean Six Sigma Defined
  • Benefits and Objectives of Lean Six Sigma
    • 1. Increase Revenue - remove waste from a process
    • 2. Decrease Costs - remove rework and scrap
    • 3. Increase Efficiency - spend less time on steps that don't add value
    • 4. Effective People - build problem solvers, team work and collaboration
  • Drive profitability by increasing revenue and reducing expenses
  • Better understand and deliver on customer requirements
  • Gain a competitive advantage over competition

Six Sigma

  • Philosophy
    • strives for perfection in meeting customer requirements
    • proactive and prevention-based instead of reactive and detection-based
  • Performance metric
    • refers to a level of quality that is near perfect
  • Methodology
    • strives for a defect level that is no more than 3.4 parts per million
    • Sigma is the Greek alphabet used to represent standard deviation (a measure of variation)
    • Very small standard deviation from the mean/average to the nearest specification limit is equivalent to six standard deviations or six sigmas.

Operational Excellence

  • Operational excellence is better (quality), faster (time) and cheaper (money)
  • Four Essential Elements for Operational Excellence
    • Tools and Techniques for design (Design for Six Sigma - DFSS), improvement (Six Sigma & Lean) and control (value stream or process management)
    • Effective and efficient processes in delivering value
    • mindset and behaviors where everyone wants to and is able to be operationally excellent
    • Enterprise-wide alignment of strategies, priorities, policies and decisions

Design for Six Sigma (DFSS)

  • Quality is 'designed in'
  • Requirements flow down - link between customer requirements and product
  • Quality if predictable - repeatable, parts made the same each time

DFSS - 5 Phase Methodology

  • Define - purpose/reason of product, keeps everyone focused
  • Measure - voice of the customer (VOC) needs identified and measured
  • Analyze - what does the product need to do
  • Design - product features and specifications
  • Verify - tested to meet customer needs

DMAIC - 5 Phases of Six Sigma

  • Goal of DMAIC is to better plan, predict and deliver products/services to customer. It is a methodology for root cause analysis.
    • DMAIC Approach in Lean
    • DMAIC should NOT be uses where the root cause and solution are already known
    • DMAIC should be used when
      • when there is a problem and the root cause is unknown
      • when the right solution to solve a problem is unknown because the root cause is unknown
      • When the stakes are high, and we need to be absolutely sure that the solution implemented solves the problem
      • When a persistent problem exists, multiple solutions have been tried, but none have solved the problem. Why? Most likely, it is because the root cause is unknown!
  • 1. Define - what is important to the customer? What are the customer requirements? What is the project scope/boundaries/limits?
    • Problem and goal statements
    • “A problem well stated is a problem half-solved.” Charles Kettering
  • 2. Measure - size and scope of work, define the types of defects and metrics in the process.
  • 3. Analyze - perform root cause analysis, data is analyzed to determine causes/factors impacting performance
  • 4. Improve - develop solutions and pilot/implement
  • 5. Control - controls are established to ensure gains are sustainable
  • References

Step 1: Define Phase - Problem and Goal Statement

  • Problem Statement
    • Problem should be recurring and chronic
    • Problem should be relevant and significant to the company, else why bother
    • Problem should be measurable to indicate a size and impact of the problem in operational and financial terms
  • Examples
    • Problem Statement
      • “Over the past 12 months, First Call Resolution at our IT Help Desk is only 60%. This is below the 75% required in our service level agreement. Failure to meet this requirement will result in a loss of $200,000 in penalties, not to mention customer dissatisfaction, non-renewals, and the potential loss of clients.”
    • Goal Statement
      • “Improve First Call Resolution rate to 75% or higher, while ensuring customer satisfication, within the next four months.”


  • SIPOC = Supplier > Input > Process > Output > Customer
    • SIPOC

Step 2a: Measure Phase - Data Collection Plan

  • 1-Make a list of specific questions you want answered
  • 2-For each questions, decide how you want the answers presented and displayed
  • 3-Then decide what tools are needed
  • 4-What type of data and how much data is required by that tool
  • 5-Determine where and from whom the data should be collected

Step 2b: Measure Phase - Process Map

  • A diagram that provides a visual representation of steps that take place in a process from start to finish.
  • Map of relevant processes
  • Process map is used during the Measure phase of Six Sigma to map the current process.
  • Helps to identify any bottlenecks/delays
  • Rectangle - activities or tasks
  • Diamond - decisions
  • Arrow - sequence of flow
  • Ovals - start and end points

Step 2c: Measure Phase - Validate the Measurement System

  • Cannot improve what you don't measure
  • Measurement System Analysis (MSA) - must be done before any data is collected
  • Validate
  • Repeatable
  • Reproducible - between different machine shops

Step 2d: Measure Phase -

Step 3: Analyze Phase

  • Why is there a problem?
  • Cause & Effect Diagram objective is to Examine an undesirable situation (effect) and its potential causes
  • 1. generate a list of potential (using brainstorming) causes that impact the effects
  • 2. organize potential causes
    • create a cause-effect diagram (Fishbone)
      • An organized list of all the potential causes on a particular effect/result/outcome/consequence
      • Used to help brainstorm and organize potential causes that impact the outcome/effects
      • Example Cause and Effect Diagram from Richard Chu
      • Tips on Using Fishbone Diagrams
        • Label the fish head. It should be the effect/outcome/problem you are trying to solve by changing the causes
        • Remember, the fish head stinks! The 'problem' should be an undesirable effect
        • Two popular brainstorming approaches
          • use stickies to brainstorm possible causes. Then, affinitize the stickies into groups. These groups then become your fishbone labels.
          • pre-label the fishbone branches
            • Administrative labels: people, procedures, policy, place
            • Manufacturing labels: Machine, manpower, mother nature, materials, methods
  • 3. shortlist and select the likely key causes
  • 4. develop a data collection plan for the analysis
  • 5. prove the key causes

Step 4: Improve Phase

  • Purpose - address the proven causes and come up with solutions to improve the effects
  • Step 1 - generate potential solutions to address proven key causes
    • Brainstorming
    • Anti-brainstorming - how to make things worse
    • Creative-thinking techniques
    • Six Thinking Hats from Edward de Bono - team members play the role
      • Yellow Hat - Optimism, Hope
      • Black Hat - Devil's advocate
      • Purple Hat - Creativity
      • Green Hat - Process (new beginnings)
      • White/Gray/Tan - Facts, neutral colors
      • Red Hat - Feelings
      • References
  • Step 2 - evaluate solution alternatives
    • Multi-voting - each member votes
    • 2×2 matrices
      • Quadrant 1 - High Benefit High Cost
      • Quadrant 2 - Low Benefit High Cost
      • Quadrant 3 - Low Benefit Low Cost
      • Quadrant 4 - High Benefit Low Cost
  • Step 3 - select the right set of solutions and implement
    • Criteria selection matrix
      • Criteria Selection Matrix
    • Pugh matrix
      • Pugh Matrix
    • Cost-benefit analysis
      • Quadrant 1 - High Benefit High Cost
      • Quadrant 2 - Low Benefit High Cost
      • Quadrant 3 - Low Benefit Low Cost
      • Quadrant 4 - High Benefit Low Cost
  • These steps require
    • A new process map showing the improved process
    • Failure modes and effects analysis (FMEA)
    • Mistake proofing
    • Pilot testing
    • Involve key stakeholders in the improvement phase
      • Process Owners
      • Operators
      • Managers

Step 5: Control Phase

  • Establish controls/policies & procedures to ensure the causes are done and the improved effects are sustainable
  • Step 1 - Develop a control plan
  • Step 2 - Work with process owners to update procedures
  • Step 3 - Implement and monitor performance
  • Step 4 - validate actual financial impact
  • Step 5 - secure project completion sign-off

Value Stream Mapping

  • Map to identify where there is waste in manufacturing process
  • Value is what is important to customers - which is what the customer is willing to pay for and appreciates
  • Supplier at the start and Customer at end on value stream map
  • #1 How much is the customer willing to pay? What is the value of the task?
  • #2 existing/base line
  • #3
  • COST exists only to be reduced
    • value stream - reduce distance between the purchase of the product and manufacture/shipping of it
  • WASTE must be reduced, every day looking for improvements, process improvement, Kaizen Events
  • Lean Mission Statement: To maximize the customer's value of our products and minimize waste by adopting the mindset of working smarter, not harder! We grow (maximize profits & value) by making small process improvements everyday!
  • The 5 Whys

Step 1 - Determine scope of value stream map

  • Create your start (supplier/raw materials) and end (customer) points
  • Add takt time (max amount of time you can spend while still satisfying customer demand. To calculate this number, take the available minutes for production and divide it by the required units of production)
  • Visio

Lean Manufacturing Examples

  • FastCap - woodshop in Bellingham WA

Lean Manufacture - 7 Deadly Wastes

  • Applying new tools to the same old process can help people see with new eyes. Applying the 8 Wastes provides this essential new perspective.
    • “The read voyage of discovery consists not in seeking new lands but seeing with new eyes.” (Marcel Proust)
  • DOWNTIME acronym
    • D = Defects
      • customer dissatisfaction in a process, errors that occur over and over, re-work and re-do's
    • O = Overproduction
      • making more, earlier or faster than the next process needs it
    • W = Waiting
      • the most prevalent of the 8 Wastes. Waiting refers to any time there is a delay and customers are waiting for goods or services.
    • N = Non-utilized talent
      • don't think, just do
      • people feel underutilized and under-appreciated in this type of environment
    • T = Transportation (aka Touches)
      • excessive movement of material or information
      • inefficient flow
      • potential waste of money
    • I = Inventory
      • any materials or supplies in excess of the appropriate quantity at the appropriate time
      • having a year supply of paper
    • M = Motion
      • excessive movement of people
    • E = Extra-Processing
      • multiple levels of approval signatures
      • reduntant process steps
      • unnecessary completion of templates, forms and/or documents
  • The 7 Wastes
    • 1-overproduction - to produce sooner, faster or in greater quantities than the customer demands
    • 2-inventory - raw material, work in progress or finished goods which is not having value added to it
      • excess inventory increases lead times, consumes productive floor space, and delays the identification of problems.
    • 3-waiting - people or parts that wait for a work cycle to be completed
    • 4-motion - unnecessary movement of people, parts, or machines within a process. Jobs with excessive motion should be analyzed and redesigned for improvement.
    • 5-transportation - unnecessary movement of people or parts between processes. Mapping product flows can make the transportation of the product easier to visualize.
    • 6-defects/rework - wrong the first time, repetition or correction of a process
      • Through employee involvement and Continuous Process Improvement (CPI), there is a huge opportunity to reduce defects at many facilities. Every dollar saved in expenses is a direct dollar pass thru to the bottom line profit of an organization.
    • 7-over/inappropriate processing - processing beyond the standard required by the customer
      • Often termed as “using a sledgehammer to crack a nut,” many organizations use expensive high precision equipment where simpler tools would be sufficient. This often results in poor plant layout because preceding or subsequent operations are located far apart. Investing in smaller, more flexible equipment where possible; creating manufacturing cells; and combining steps will greatly reduce the waste of inappropriate processing.
    • 8th Waste is the wasted potential of people, this waste is said to significantly outweight all 7 other wastes combined (see Fallacies of Lean Practices)
  • The 7 Wastes in Lean Manufacturing

How to remove Waste once identified

  • Eliminate - the cause of waste where possible
  • Simplify - the process or step that is creating the Waste
  • Streamline - the process when they are complex
  • Minimize - the amount of waste in the process
  • Examples
    • Making a sandwich
      • Problem - unnecessary movement to stockrooms to gather food items
      • Solution - for highest volume items, organize ingredients in assembly line fashion to process the order

5 Cs or 5S of Workplace Organization

  • An organized workplace is one that complies with the “30-second rule” - anyone should be able to find anything within 30 seconds by using the 5S system of workplace organization (sort, set in order, shine, standardize, sustain, and safety)
  • 1-sort - to determine the value of each item in a workspace
    • What is the purpose of this item?
    • When was this item last used?
    • How frequently is it used?
    • Who uses it?
    • Does it really need to be here?
    • Green Tag - items currently used
    • Yellow Tag - items periodically used
    • Red Tag - items rarely used
  • 2-straighten/set in order - Visual Control
    • Benjamin Franklin - A place for everything and everything in its place
    • Green Tag - keep close at hand
    • Yellow Tag - keep in file cabinet
    • Red Tag - store in attic or basement, used 1-2 a year
  • 3-shine
    • Clean up the workplace and check for opportunities to improve
    • Messy and lazy are key ingredients for accidents and waste
  • 4-standardize: tasks are organized in the best sequence to ensure products are being made the best way every time. Standardized work procedures bring consistency and better quality to the workplace. Procedures should be documented and given to anyone in charge of completing the task.
    • reinforce daily step 1, 2, 3
    • cleaning checklist to be done at end of day
  • 5-sustain/audits
    • instill self-discipline
    • hold teams accountable
  • 6-safety
    • safe work practices
  • Emphasis on removal of what is not used and employment of shadow boards, signs, area boundaries, labels, and more
  • 5 Cs of Workplace Organization
  • 5S Explanation

5S Class Project

For this project you are going to work through the 5 steps of 5S and document what you have done. This is worth 3 assignment grades or 300 points.

  • 2 outcomes options:
    • an essay or writeup WITH Pictures explaining what and how you did for each step
    • You can do a presentation with pictures and/or video to explain the process.
  • Here are the guidelines for this project:
    • 1. Figure out something you would like to apply 5s to. This could be organizing an area, tools,room or something. It needs to be more than simply the kitchen drawer that stores your silverware. This could be in the lab, classroom, home, or even your workplace.
    • 2. Create a basic project proposal including team members, if any, and post to the proposal discussion (online or in class must post their proposals) to get approved.
    • 3. Begin working on your project and make sure to take pictures and document what you do so you can create your presentation or writeup.
    • 4. Ask questions along the way if you have any. Make it to all 5s steps.
    • 5. Create your presentation or writeup and turn in. Include lots of pictures and explanations.

Your presentation should include and specifically explain What each step is and what you did for this step in your process.

How is technology changing process improvement

  • Technology such as g-codes are helping improve the time is takes to machine a part.

The Toyota Way

  • 14 Philosphies of the Toyota Production System
  • 01-Have a long term goal
    • Base your management decisions on a long-term philosophy, even at the expense of short-term goals
    • “The most important factors for success are patience, a focus on long-term results, and an unforgiving commitment to quality” (Robert B. McCurry, former Executive VP at Toyota Motor Sales)
  • 02-Create Transparent process flow
    • Strive to cut back on the amount of time the work is sitting idle or waiting for someone to work on it
  • 03-Use 'customer' demand-pull
    • make only what the customer wants just when the customer wants it
    • The more inventory a company has, the less likely they will have what they need
  • 04-Create balanced flow
    • Creating flow and leveling out the workload (heijunka) will reduce the overburden of people and equipment by eliminating the unevenness in the work schedule
  • 05-Define value
    • build a culture of getting quality right the first time
  • 06-Encourage standardized work
    • Stable, repeatable processes maintain predictability, regular timing, and regular output. It is the foundation for flow and pull
  • 07-use visual control
    • Design simple visual systems at the place where work is done, to support flow and pull.
    • “Mr. Ohno was passionate about TPS. He said you must clean up everything so you can see problems. He would complain if he could not look and see and tell if there was a problem. (Fujio Cho, President, Toyota Motor Corporation)
  • 08-Create the right process
    • Use only reliable, thoroughly tested technology that serves your people and processes.
    • Use technology to support people. Often it is best to work out a process manually before adding technology to support the process.
  • 09-Develop your people and partners
    • Grow leaders from within
    • Good leader must understand the daily work in great detail so can be the best teacher
  • 10-Teach company values
    • Develop exceptional people and teams who follow your company's philosophy
  • 11-Respect your partners
    • Respect your extended network of partners and suppliers by challenging them and helping them improve
  • 12-Learn to see the waste
    • Go and see for yourself to thoroughly understand the situation
  • 13-Thoroughly consider options
    • Make decisions slowly by consensus, thoroughly considering all options; implementing decisions rapidly
  • 14-Become a learning organization
    • become a learning organization through relentless reflection and continuous improvement

Push vs Pull (KanBan)

  • Pull System - Path to Prosperity
    • Good Leadership is Pull System
      • Finding opportunities in struggle
      • Investing in Market creating innovations - which creates the jobs to grow the local economy
      • Execute a pull strategy of development, new markets demand infrastructure improvements
  • Push System
    • If you built it, he will come (Field of Dreams)
  • Push vs Pull Manufacturing

Kanban Card

  • Kanban card is a visual representation of a work item
  • contains valuable information about the task
    • summary of the assignment
    • responsible person
    • deadline
  • Benefits
    • serve as information hubs
    • reduce need for meetings
    • Improve transparency of the work process itself

Agile vs Lean

  • Agile vs Lean

5 Whys

  • Used to determine the cause-and-effect relationship of a problem
  • “The primary goal of the technique is to determine the root cause of a defect or problem by repeating the question 'Why?'” (wikipedia - 5 Whys)

Employee Roles

  • An employee does all these roles
    • Supplier - provide products downstream, say to the shipping department
    • Processor - add value to the raw material
    • Customer - receive from the supplier, ensure I communicate my expectations

SMED Single Minute Exchange of Dies

  • Idea invented by Shigeo Shingo - A Revolution in Manufacturing: The SMED System
  • SMED system breakdown
    • 80% workplace organization and planning
    • 10% equipment
    • 5% tooling
    • 5% product design
  • Definition of Quick Changeover
    • The amount of time taken to change a piece of equipment from producing the last good piece of a production lot to the first good piece of the next production lot.
  • Why quick changeorder?
    • reduces lead-time
    • improves on time delivery
    • reduces inventory carrying costs
  • One Piece Flow - make one move one. The workpiece experiences no waiting which happens when trying to do work in batches.
  • Economic Order Quantity (EOQ)
    • At some point the
    • Point where the holding/batch/lot size cost equals the ordering/producing cost
  • References

Lean Manufacturing Books

  • The Toyota Way by Jeffrey Liker
    • ordered on audible
  • The Machine That Changed the World: The Story of Lean Production by James P. Womack
  • Six Sigma Training
  • Self-Help by Samuel Smiles, 1859

Civil Engineering Engineering - Computer Engineering - Electrical Mechanical Engineering

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