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LEAN Manufacturing
Lean Manufacturing focuses on LEAD TIME REDUCTION. Converting raw material to a cash sale and optimizing the cash conversion cycle is the objective.
It is accomplished by the elimination and reduction of wastes. The tools reveal areas of opportunity. The team uses the tools to prioritize actions to improve.
Lean Manufacturing begins by studying the FLOW in three areas:
MATERIAL
PEOPLE
INFORMATION
In this era of globalization the ability to quickly adapt and continuously improve is much more than a technical challenge. The rate of change in the world is increasing. Strategic and tactical issues will become more complex and those that change at the fastest, with accuracy, will have the competitive advantage.
The Japanese instructors demonstrated this in their NUMMI plant, a joint venture between Toyota and General Motors in Freemont, California, when adequate attention and training was devoted to the cultural transformation along with the other Lean tools. American workers were able to produce Japanese cars just as efficiently with the same level of quality at their Japanese counterparts.
Lean Manufacturing is more than “just-in-time”, shortening up the cash conversion cycle, and SPC, but just as much as cultural and management mindset. Just like a Six Sigma program, the technical abilities of the program and those trained to guide it are only part of the system. The difference is finding leaders and project managers that can drive transformation and cultivate change on an ongoing basis. The total Lean system must have both components to succeed.
Japanese workers are groomed from a basic level of having no knowledge of the specifics for their job. The amount of training hours per workers greatly exceeds the hours dedicated to most of the workers in other parts of the world. But the reward is more significant later when the culture quickly spreads, errors are limited, variation is limited, and synergies are working.
It is similar to a DFSS Six Sigma project where the vast majority of time, energy, and money are dedicated up front to enable a product to be at a "perfect quality level" at introduction. From then on it will require fewer resources delivering consistent stability and profitability for the long run. Haste makes waste, but when a solution is found it is implemented quickly and across the entire system.
Focus on the ultimate state....that every person, every square inch of floor space, every cubic inch of volume space in your plant, hospital, or office, at every second of the year is producing VALUE for your customer.
Anything that is not, is waste or a support function or operation (such as staging, maintenance, tooling, quality control, offices, storage). Look around and see how the vertical space can be used better, layouts to use the floor space to create money.
Automation is not always the best choice to improve a value stream. Many companies must change quickly to keep up with the globalization and dynamics of the competition. Automation is expensive and fixed. Often, you can't train it (program) as easily and quickly as humans. There is complications and unplanned downtime when it fails. All these pros and cons need to be considered before resorting to automation to reduce lead time or poka-yoke. Each application is unique, in some cases automation is the clear choice and other times it is better to utilize the power of people and empower them to be responsible for the value they add to the product or process.
Employee Ownership
The importance of employee participation and retention is paramount to a successful foundation and sustaining a LEAN culture. Although restructuring during a slow time may not be avoidable, it is the last resort when trying to transform into a Lean Manufacturing culture.
LEAN MANUFACTURING focuses on elements that seem elementary but specific tools and training can lead to valuable gains. Furthermore, the tools guide the team to reveal DFSS and waste removal opportunities AND improve existing value added processes (i.e. speeding up an existing running machine with better maintenance program).
Lean tools can also be applied to transactional process as well as the DFSS and DMAIC tools.
Value stream mapping is a key component of Lean Manufacturing. Most often a product value stream will consist of 95% or more non-value added time.
That means that most value streams begin with only up to 5% of the total time devoted to adding value, or creating a feature that the customer is willing to pay for.
In many cases, there is business (or regulatory) time that complicates the map. Many companies must perform recordkeeping, audits, data enty, and maintain environmental, health, and safety compliance that take time in the value stream. While it is mandatory, it is still non-value added and should be challenged and streamlined to lean out within reason.
Many of the tools are taught to an entire workforce to develop a foundation of LEAN thinking in day to day operations. Some of the tools used are: