What is Lean Thinking ?
Lean Thinking is a methodology to : - specify value - arrange value generating actions in the best sequence - perform these actions without interruption as soon as someone asks for - perform these actions in an always more efficient way. Lean Thinking gives immediate feedback in order to covert waste in value.
Lean Thinking Principles
Jim Womack
&
Dan Jones
The customer stands central
Value is only determined by the customer and is always related to a specific
The 5 principles of Lean Thinking
1.
Specify value per specific product Identify the value stream for each product Let the value flow without interruptions in a continuous way. Let the customer pull the value Persu perfection
2.
3.
4.
5.
Specifying value
Lean Thinking starts with an attempt to precisely define the value of a specific product with well defined functionalities at a fixed price in a dialog with the customer. The existing production resources and technologies are at that moment of secondary importance. The company has to be re-engineered in view of production lines with dedicated resources.
Specifying value
In a Lean Thinking exercise, you must try to take the place of: - the design on its way from concept to launching - the order on its way of the information path from demand up to delivery. - the physical product during its transformation from base material up to finished product. and describe what is happening to you at each step of the value stream.
Let the customer pull
We design, schedule, manufacture what and when according to the customer needs Sales forecasts are not necessary.
Lean Thinking
Lean Thinking stands for radical improvement (kaikaku) in contrast with continuous incremental improvement (kaizen).
In practice now.....
Lean Thinking
Value must been seen through the eyes of the customer. The great virtue of Lean Thinking is not directly to provide state-of-the art solutions for a complex problem, but to change the logic of working so that the problems more or less disappear. Lean Manufacturing eliminates and/or visualizes waste
Is there a better way ??
The Lean Thinking gives a clear answer: In order to efficiently control the throughput, delivery times, WIP and inventory in a complex environment, it is essential that manufacturing and assembly are performed at a pre-defined pace or takt and that the operations are carried out in a continuous flow. This is the “push” characteristic of Lean Thinking. This takt is determined by the business plan, and the resources of the bottle-neck activity -whatever they are- must be able to follow this takt.
Continuous flow instead of batch-and-queue
In the continuous-flow layout, the production steps are arranged in sequence, usually within a cell, and the product moves from one step to the next with no buffer of work-in-process in between. ( ≠ Kanban )
Continuous flow instead of batch-and-queue
LEAN CELL FOR HYDRAULIC CYLINDERS AND CONTROL SYSTEMS Lead time reduction from 4 months to 3 weeks Zero inventory
Continuous flow
As soon as continuous flow is implemented, a drastic reduction is noticed in: throughput time inventory
Why ???
Variability….
If the utilization rate of a production unit becomes close to the limits of capacity, the average cycle times will increase in a highly non-linear fashion. If variability reduction is feasible and affordable, it offers the best of all results. It should be the first thing to start with in order to optimize a production system. Lean Thinking is a technique that by nature reduces the controllable variability. On the “random” variability, the Lean Thinking has no grip.
Lean Thinking is counterintuitive
Keeping every employee busy and every machine fully utilized to justify capital investment are not the highest priority anymore. Continuous-flow layout replaces batch-and-queue production methods
Push and pull…..
A push system schedules the release of work based on demand A pull system authorizes the release of work, based on the status of the production environment.
We let the customer pull …..but a well defined takt is essential !!
Lean transformations where waste is eliminated mostly imply other process technologies and new product concepts that can be kept surprisingly simple.
Is there something wrong with MRP?
…certainly not ! Also in a Lean transformed environment , PRP (Project Requirements Planning) and MRPII (Manufacturing Resource Planning) are needed as robust control systems and should be treated with due respect. …
Application of the Finite Capacity Schedulers within the Lean Environment
Control of the manufacturing at the highest level with monitoring of takt and offsets and triggering of events. Support of the cell logic Optimization of the assembly activity in the most detailed way. Planning of the job shop activity of the internal supplier.
LEAN CELL FOR HYDRAULIC CYLINDERS AND CONTROL SYSTEMS Lead time reduction from 4 months to 3 weeks Zero inventory
Visibility…
Looking for perfection
By letting the value flow faster and faster, new causes of waste come to surface. The more we pull harder, the more points for improvement become visible.
Visibility…
The stimulation for improvement is strenghtened by the transparency typical for Lean Thinking. In a lean system, to everyone (....workmen, suppliers, customers, distributers, ...) everything is visible so that is becomes easier to detect points for improvement. Lean Thinking is not only an antidote against waste, it is also an antidote against stagnating.
“Perfection is like Infinity”
Lean Thinking and the organization
Lean Thinking breaks the conviction that functions must be grouped in departments.
BU CNC press brakes
F. Valcke
BU Conv. Pr. Brakes & shears
DIVISION CNCPRESS BRAKES & SHEARS
Responsibility Center
J Hemberg
BU LaserMachines
DIVISIONAL STRUCTURE
BU Turret Punch presses
DIVISION LASERMACHINES & PUNCH PRESSES
Responsibility Center
F. De Bie
DIVISION CUSTOMER SERVICES
Planning After Sales resources Interventions and After Sales-admin. Statistical analysis Spare parts IT-support for After Sales
Development After Sales in subsidiaries Technical documentation Training (internal / external) Installation management
Warranties Revisions Upgrading and retrofit Consultancy Quality
BU After Sales
Quality measurements Contract management
Responsibility Center
G. Porte D. Naessens B. Florizone W. Serruys Gert Thienpont
Finances
Logistics
Expense Center
Engineering / R& D
Product design Software development Research & Development Safety / Environment Safety requir. products (extern. comm.)
Human Resources & Payroll
Expense Center Expense Center
HRM Human resources management Payroll Training
Financial control & reporting Order processing Accounts payable Accounts receivable Accounting Budgets & budget control Liquidity & cash management Invoicing Cost accounting & project calculation Product shipping / Packaging Assurances FIN
Logistic systems DNSN Inventory control / Inventory Material storage /Orderpicking Logistics subsidiaries Global capacity control
Expense Center
Procurement Subcontracting (negotiations) Global sourcing/subsidiaries Material receiving
LOG
ENG
P. Deferme
D. Naessens
D. Naessens
Information Systems
Electronic Data Processing Datacollection Computer Aided Manufacturing Repro
Production support & mainten.
Expense C
Repair machines & production FCLS Systems Maintenance installations & DWFF infrastructure Tool management Operations on conv. machines OND
Sales & Marketing
Order servicing & Contracts Order processing Marketing & Publicity Price setting Project budgetting Democenter
ICT
VKP
Expense C.
Expense C
C.
.
KLT
PON
Engineering (ST) Safety products Desktop Publishing Routings. Process development Project Planning Assembly planning
Order processing Material Requirem. Planning. Capacity Requirem. Planning. Shopfloor planning Production release Purchasing (call off) Subcontracting (call off)
Production Final assembly Final inspection After Sales support Installation Training Performance measurement
Quality analysis Second hand. /retrofit Preventive maintenance
LAS
CON
Engineering (ST) Safety products Desktop Publishing Routings. Process development Project Planning Assembly planning
Order processing Material Requirem. Planning. Capacity Requirem. Planning. Shopfloor planning Production release Purchasing (call off) Subcontracting (call off)
Production Final assembly Final inspection After Sales support Installation Training Performance measurement
Quality analysis Second hand. /retrofit Preventive maintenance
AFK
e
The Lean Thinking alternative
The Lean Thinking alternative redefines the functions, departments, roles and the whole organization in view of a positive contribution to the generation of value in such a way that it is in the interest of the employee that value flows.
Value stream
The value stream must be looked at as a whole: in a departmental oriented organization, the different departments tend to only look after their own interests and do not care about the problems the other departments around them encounter.
Lean Thinking breaks with the conviction that employees deliver an excellent performance. Finally it is the customer who decides whether or not he buys the product at the set price.
The problem is mostly not the competence of the people who control the system according to a certain logic,…. The problem is the logic itself…..
Localization
The product team (team leader, buyer, planner, production manager,…) must be placed as close as possible to the physical happening. Transparency and visual control are very important advantages of the Lean Thinking. In a classic batchand-queue environment, the employee only sees a small part of the task and there is no feedback.
Expectations
Improvement and better control of throughput (synchronized manufacturing) More efficient and simpler organization Better control of the flow of financial resources Higher customer satisfaction Reduced inventory Higher delivery performance Lower quality cost