CONTINUOUS IMPROVEMENT PROGRAM Lean Manufacturing Our company continues to grow at 15% to 20% each year. OUR CUSTOMERS WILL SAY “Hasta La vista baby !!” Our inventory in the stock room grows. $$$$$$$$$$$$$$$$$ How do we grow ? How do we make the right product on time ? How do we lower our stock room inventory ? How do we maintain a good quality product ? We could hire more people and buy more machines. This would cost us $$$$ We could raise the price of our products. Currently our customers are asking us to REDUCE the price of our products! BEFORE WE DO ANYTHING ELSE We need to become more efficient in our manufacturing. AND We need to find waste in our process and cut it out. > Produce more product using our current resources. > Lower our stock room inventory. > Accurately forecast exactly how long it takes to make our products and ship them on time. > Get all of the needed parts to Assembly at the right time. What is LEAN A systematic approach to identifying and eliminating waste through continuous improvement in pursuit of perfection. Striving to do more with less, and do it consistently. Work Smarter Not Harder TEAMWORK FORM A TEAM OF PEOPLE, THE PEOPLE THAT ACTUALLY DO THE WORK OBSERVE IDEAS ANALYZE THE CURRENT SITUATION THE TEAM DEVELOPS IDEAS ON HOW TO ELIMINATE WASTE COMMUNICATION CULTURE MAKE SURE EVERYONE KNOWS THE GOALS, THE CHANGES BEING MADE, THE SUCCESSES, AND THE FAILURES CREATE A CONTINOUS IMPROVEMENT CULTURE. ALWAYS CONSIDER NEW IDEAS 8 Forms of Waste DEFECTS WAITING Any non-work time waiting for tools, supplies, parts, etc.. Repair or Rework. Any wasted motion to pick up parts or stack parts. Also wasted walking. PROCESSING Doing more work than is necessary. UNDERUTILIZED PEOPLE Types of Waste Waiting for more Work to do. INVENTORY Maintaining excess inventory of parts in process, or finished goods. EXCESS MOTION OVERPRODUCTION Producing more than is needed before it is needed. TRANSPORTATION Transporting parts, or finished goods into or out of storage, or between processes. We the operations. We We the operations. the operations. VALUE STREAM MAP FINDING WASTE LEAN TOOL BOX 5S TOOLS SORT, SET IN ORDER, SHINE, SET RULES, SUSTAIN. TEAMS STANDARDIZED WORK PRACTICES VISUAL CONTROLS PLANT LAYOUT QUICK CHANGEOVER BATCH REDUCTION QUALITY AT THE SOURCE POINT OF USER STORAGE PRODUCTION CELL SUPERMARKET FLOW PULL SYSTEM TOTAL PRODUCTIVE MAINTENANCE Kaizen Kaizen Event The definition of “Kaizen” has been Americanized to mean "Continual Improvement." A closer definition of the Japanese meaning of Kaizen is "to take apart and put back together in a better way." ISOLATION “Do you have any ideas ?” “What problems Can we solve ?” “How can we make this better ?” SECRECY “Here’s what we are doing” “Here’s where We are going” COMMUNICATION