Exam 1: Lean Operations Management & 5S

Lean Management
Deals with the elimination and reduction of many types of non-value-added activities, often referred to as waste.
Types of Waste
Overproduction, Waiting, Material Handling, Processing, Inventory, Motion, Defects, Human Potential
Principles of Lean Manufacturing (5)
(1) Accurately specify value from the customer’s persective for both products and services. (value- $, what are they willing to pay).
(2) Identify the value stream (steps in the process) for products and services and remove non-value-added waste along the value stream.
(3) Make the products and services flow without interruption across the value stream.
(4) Authorize production of products and services based on the pull by the customer.
(5) Strive for perfection by constantly removing layers of waste. (This is a logical direction.)
Lean Principles are Evolving to entire value stream (supply chain):
Lean Manufacturing -> Lean Enterprise -> Lean Extended Enterprise
Bottom Line Benefits of Lean Thinking and Implementation (in 1st year):
Capacity (10-20% improvement by optimizing bottlenecks)
Inventory (30-40% reductions in FG and WIP)
Cycle Time (throughput time reductions of 50-75%)
Lead Time (50% or more reduction for order fulfillment)
Product Development Time (35-50% reduction)
Space (35-50% reduction)
First-pass-yield (5-15% increase)
Service (delivery performance of greater than 99%)
External Benefits of Lean Thinking
Creates an environment that anticipates customer needs and improves response times, establishes organizational strengths that are sustainable competitive advantages, establishes benchmark performance and best practices against which competitors will be judged, yields higher profitability, product margins, and stock prices, reduces waste in inventory, reduces costs, improves quality, increases flexibility, and reduces response time, and facilitates customer and supplier involvement from design to production to design.
Internal Benefits of Lean Thinking
views customers, suppliers, and the internal organization as a single enterprise model, aligns people and systems to build vision and strategy into daily operations, provides an integrated framework for improving the total business, simplifies organizational structures by linking people together across key business processes, provides a means of correlating day-to-day improvement activities with the overall business strategy, drives information across and within functions via simple visual practices, leverages the productive capacity of all employees, and expands organizational knowledge.
Common Lean Tools/Concepts
Value Stream Mapping
Point of Use Storage
5S Visual Management (Implement 1st)
One-piece Flow Production
Total Preventative Maintenance
Level Mix Model Production
Kanban Demand Pull
Failure Mode and Effects Analysis (FMEA)
Quick Changeover Kaizen
Standard Work/Standard Operating Procedures (SOP’s)
Six Sigma
Step 1 of 5S Visual Management
Sort (Seiri):
Differentiate between the necessary and the unnecessary.
Remove all items that aren’t currenlty needed.
The fine art of throwing junk away.
Step 2 of 5S Visual Management
Set in Order/Straighten (Seiton):
A place for everything and everything in it’s place.
Put needed items in an easily accessible place.
Label everything so it’s easy to find and put away.
Step 3 of 5S Visual Management
Shine/Clean (Seiso):
Keep everything clean and orderly while working.
Leave things clean.
Pinpoint the cause of dirt and eliminate.
Step 4 of 5S Visual Management
Standardize (Seiketsu):
Create a consistent way that tasks and procedures are done (SOP’s)
Establish standards to measure by and practice simple visual management.
Helps to maintain the results of Sort, Set in Order, and Shine.
Step 5 of 5S Visual Management
Sustain/Discipline (Shitsuke):
Make it a habit and responsibility to follow workplace rules (the first 4 S’s).
5S is everybody’s responsibility.
Motivate through procedures to standardize and measure performance.