Manufacturing Management Techniques Part 1 of 2 PDF

Transcript
Module 1: Manufacturing Management Techniques

Introduction
Slide 01: Course Overview & Agenda
Welcome to the first of two courses on Manufacturing Management Techniques. These courses will
provide a survey of current business approaches that enable a manufacturing operation to be more
effective and efficient in its role.
The two courses together will address Lean Manufacturing, Theory of Constraints, Six Sigma, Total
Productive Maintenance, Reliability Centered Maintenance, and Quick Response Manufacturing. This
course will focus on the Lean Manufacturing approach.
This course was developed by Professor Robert Handfield, who is the Bank of America Distinguished
University Professor at North Carolina State University. Professor Handfield is also the Founder and Lead
for the Supply Chain Resource Cooperative at North Carolina State University.
Slide 02: Course Objectives

After completing this course, you should be able to do three things.
First, be able to discuss how and why this manufacturing operations improvement approach came into
being.
Second, describe the key concepts of Lean Manufacturing and understand the philosophy behind it.
Third, take the concepts of Lean Manufacturing and understand how to apply them in your own company.
Copyright (c) 2009 Accenture. All rights reserved. You may only use and print one copy of this document for private study in connection with your
personal, non-commercial use of a Supply Chain Academy course validly licensed from Accenture. This document, may not be photocopied, distributed,
or otherwise duplicated, repackaged or modified in any way.
Note: interactive elements such as activities, quizzes and assessment tests are not available in printed form.
Slide 03: Objectives of Lean Manufacturing

There are three primary objectives of Lean Manufacturing that we will cover:
x
x
x
Elimination of waste
Value-added activities
Rapid execution
The elimination of waste focuses on avoiding the use of any resource that is not necessary or preventing
excessive use of that resource.
The second objective of Lean Manufacturing is elimination of non-value-adding activities. Value-added is
when any process and or activity generate a fundamental change to the product or service that meets
customer demand.
Finally, rapid execution is focused on getting results quickly. This is often achieved through activities such
as kaizen events, which are rapid improvement projects that bring people from various functions together
to identify and eliminate waste that is occurring.
In our final topic, we will build the Lean Manufacturing hierarchy.
So lets start with our first topic, the elimination of waste. Within the Lean world, waste elimination
includes a number of broad categories including equipment, materials, parts, and workers. Waste
elimination is all about finding and removing those resources that are not absolutely necessary for
production of a good or service.
Elimination of Waste
Slide 04: Types of Waste
WASTE is effectively the equivalent of NON-VALUE-ADDED activity. Any activity which is not creating
value from the perspective of the customer is considered waste. There are eight basic forms of waste:
x
x
x
x
x
x
Waiting: Being dependent on a preceding task which causes you to wait before you can be
productive, for example
getting a customer check approved.
Unnecessary Motion: Poor ergonomics or excessive distance. Having someone perform an
activity that is not useful or productive, for example, hard to reach areas on store shelving or
having to walk the full length of an aisle to get work-in-process inventory.
Processing: An activity which is performed but is not required or wanted by the customer, for
example, decorative product packaging.
Inventory: Excessive or not enough stock, for example, too much of a type of caulk which does
not sell, taking up too much floor or shelf space as compared to having limited shelf space for a
high demand caulk which is always running out of stock.
Transportation: The distance required to move a good between steps of a larger process, for
example, shipping SKUs from central distribution warehouse to a retail store warehouse and then
to the retail stores.
Over Production: the production over and above what is required by the demand, for example,
cooking more hamburgers than can be consumed at a fast food restaurant.
Correction: Any activity to fix a product or action after a value added step, for example, not filling
out a form completely or having to correct an entry to a document.
By understanding the types of wastes, you can begin to look within your own operation to see where, and
how, waste is taking place.
Slide 05: Zero Waste

The ultimate goal of a Lean operation is to achieve the state known as Zero Muda. The term muda is a
generic term in Japanese for any activity that is wasteful. The objective of Lean Manufacturing is to
eliminate waste throughout the system.
The second major element of Lean Manufacturing supports the elimination of waste by determining where
value is, or is not, added in the manufacturing processes.
Vale-added activities
Slide 06: Value Added
An easy way to visualize what value added means, is to put yourself in the shoes of the customer, and
ask a simple question: Am I willing to pay for this activity as an element of the cost for the product or
service that I am buying? Think of the additional cost to cover a product being moved from one area of
the plant to a machine in another area of the plant and the two hours of overhead incurred while this
move is made. Would you as a customer be willing to pay for that inefficiency? Or, think of the additional
labor and overhead incurred when a product has to be repaired before it reaches the end of the
production line? Would you, as a customer, be willing to pay for that ineffective process? In both cases,
the answer would be no. As such, it is important to eliminate all non-value-added activities so that the
production operation is left with those activities that are legitimately adding value from the customers
perspective.
Lets further explore the concept of how we determine the value added of a process or activity.
Slide 07: Vale-Added / Non-value added

This diagram depicts a pictorial view of the process to achieve a Lean Enterprise and eliminate non-value
added activities.
Identify value Ask: Is this something for which the customer would be willing to pay? Or does the activity
change the form, fit, or function of the product or service?
Value stream Determine the set of all actions required to bring a product or service into the hands of the
customerorder to delivery, cradle to grave, design concept to launch. Actions fall into three categories.
x
x
x
Value-added activity provides value to the customer

Nonvalue-added activity that cannot be avoided due to uncontrollable constraints
Nonvalue-added activity that can be eliminated
Flow is the progressive achievement of tasks along the value stream with minimal queues, no
stoppages, scrap, or backflows
Pull No one upstream should produce a product or service until the downstream customer asks for it.
Material or information is only presented when needed and requested.
Perfection Strive for perfection.
Note that the process is a closed loop; moving to Lean is a never ending task.
Slide 08: Value Stream Mapping

A key tool in determining the value-added aspect of a process is value stream mapping.
Value Stream Mapping (VSM) is a method of creating a vision and plans using value stream maps.
Value Stream Maps help us:
SEE WASTE
PLAN ACTION
COMMUNICATE CHANGE
To fit VSM into the overall structure of lean, you look to map the flow of value.
That value is specified by the end customer. That is the hard decision point for whether or not something
is value added. The result is that most of what you do will be declared waste, although it may be of value
to interim customers within your particular flow.
The VSM shows how customer value moves through your enterprise.
That path is called a stream. The products, services, information, or whatever it is you do for the
customer, flow through that stream. Within the stream are impediments to that flow which are the waste
components. The future state describes changes you will make to the stream so that the customer can
pull their value through the stream with fewer impediments.
Impediments are described in the language of quality, cost, and time.
You repeat the process of cleaning up the stream over and over as you identify further impediments,
striving for a stream with perfect flow.
Broken into chunks, the value stream mapping process is a series of activities.
Those activities are designed to establish an accurate, and visual, accounting of things as they are now
(the current state). Then, using lean manufacturing tools, you map out the future state. The future state is
the to be state. A common goal is to make your current state match the future state in 6 to 12 months
from now. And finally, you develop a kaizen list of activities needed to make your current state into the
future state.
As you document the current state, develop the future state, and define the actions needed to
make it happen, remember that the value stream map is a visual tool.
You want to depict flow, both of product and information, and you also want to show the removal of
waste. This path is the outline for managing by value stream. To be able to effectively manage this way,
our maps have to be accurate, usable, and measurable.
Slide 09: Value Stream Scope

Before you begin mapping out processes, it is important to understand the scope of the value stream, and
identify which processes and activities will be included or not included. For example, a value stream map
may be performed for a new product launch, beginning from when the product concept is introduced,
through all of the various steps involved to new product launch. As a second example, the value stream
might be from the time the product is ordered, to the time that it is delivered to the end customer. In each
case, the activities that begin the value stream and conclude it define the boundaries of the value stream
map.
It is also important to note that value stream maps (VSM) can be done at different levels of detail, based
on the scope of the project. You can do one at a very high level that describes the flow of product and
information across the entire enterprise. Or you can do a detailed VSM that shows the flow for a particular
assembly line in a plant. You can even get detailed enough to follow the flow for production of a specific
product. It is a major attribute of using value stream maps that you can tailor them to the level of detail
you need to communicate your flows, waste, and desired future states.
Slide 10: Deep Dive VSM

Most high level value streams depict flow in too general a method to specifically target waste. To be able
to identify the sources of waste, it is often necessary to conduct a deep dive VSM.
A deep dive VSM is when you focus on a particular section of the larger VSM and map it in detail. The
process is the same: current state, ending in future state, with an action plan to get from one to the other.
But by focusing on a smaller section of the map you can easily identify specific actions to remove waste.
Care must be taken to make sure you are not optimizing one section of the larger map at the expense of
overall product and information flow. A coordination effort across all deep dive VSM's is required.
Rapid Execution
Slide 11: Change for Improvement
The third, and last, objective of Lean Manufacturing is change for improvement. A key element in change
in a Lean environment is the concept of kaizen. Under the rubric of continuous improvement, kaizen
comes from the Japanese words "kai" which is change and "zen" which is good or for the better.
Kaizen is an integral part of continuous improvement activity by encouraging many small positive actions
with little to no cost. It requires that everyone take responsibility for improvement, and continually
question the ways things are done. It is OK to experiment and try different things. It is OK to fail, but
failing fast is important, i.e., it is important to quickly recognize when something isn't working and move
on.
Slide 12: Rapid Improvement Events Helps Overcome Change Resistance

If you look at the basics of driving change, there will be people who are resistant to changing processes.
The question that the change avoidance person asks is, This is the way weve always done it, why
change it now? In order to change peoples views on the state of affairs, it is often necessary to begin
slowly. An improvement event is an ideal way to start.
Such an event can be done in as little as one day or may take up to a week. The rapid improvement
event serves to break the ice and get people to think differently. The focus of the event is usually a
specific problem, with the focus of the event on tearing the process down into its elements and coming up
with a solution. The solution, often associated with doing things differently, is built out of the putting the
elements back together in a more effective arrangement. Ideally, the rapid improvement event serves to
convince people that the old way isnt necessarily the only way of doing things.
Slide 13: Three Stages of Change

There are three stages to change and all three must occur for a change to happen successfully.
Equilibrium is where everyone begins. The process, good or bad, is comfortable, it is the way that you
have always done business, and the rules seem to apply.
As change is enacted, the first move is into the chaos stage. Because the environment has changed, the
old rules dont apply. This step can be very uncomfortable and frustrating because it may appear as if the
system is falling apart. This is OK. In fact, to make the magnitude of change that is often expected in a
kaizen event, you must feel uncomfortable. (remember kaizen in Japanese means "improvement")
If the team is tenacious and keeps going with the change process, the next step is reintegration. A new
system begins to form, new rules become the norm, the process becomes more comfortable, and you
start to experience success.
The last step is the move back to equilibrium. Once again, the system is stable. This is the time to begin
searching for another positive change; it is again time to improve.
Notice that the arrows do not let you go backwards. You must continue in the clockwise fashion in order
for change to be successful.
Slide 14: Lean Manufacturing Structure

Now that we have noted the objectives of Lean Manufacturing, let us look at the components of a Lean
Manufacturing structure.
Slide 15: Lean Manufacturing Structure

While Lean Manufacturing is really about a major change in corporate culture and the way that people
learn and do their jobs, it is important to understand the components of Lean.
The foundation of Lean production, as we noted earlier, is employee involvement. Employees are an
integral driver of change to improve production and are part of the process from the ground up. One of
the most obvious ways that they can drive Lean production is by becoming process owners. Workers are
given responsibility for the efficiency and operational condition of their workplace. As such, they are
trained and engaged in improving workplace organization through the 5S visual management techniques.
The 5S techniques include housekeeping and keeping the work area free of clutter. Equally important as
implementing the 5S approach, employees are expected to engage directly in problem solving at their
work location and to find new ways of working that will improve flow.
The second major component is continuous manufacturing, which is comprised of several different parts.
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The first part is kanban (or pull systems), which ensures that materials are moved or shipped only
when a signal is received that they are required.
Work cells are created so that related work occurs in a single place the work cell. The output of
the cell may be a completed product or a complete component. A key characteristic of a work cell
is that it is adaptable to changes in schedules and production streams.
Finally, process flexibility is a way of ensuring that the system can accommodate changes in
product requirements, and enables quick changeover for new product schedules.
The intent of continuous flow is to be able to ensure a smooth flow of product through the system. To
achieve a smooth flow, there needs to be a minimal amount of delay, no quality problems, and minimized
external processes, such as setup times, in place in the production area. The goal of continuous flow
manufacturing is to become so efficient that production can be planned in a batch size of 1 unit of output.
Quality at the Source involves designing products that can be manufactured and can be error proofed. By
engaging engineering in Lean production systems, they can design products that are easier to produce,
that are optimized for cellular manufacturing, have mistake proofing built into the design so that
production is likely to have fewer defects and process issues. The goal, of course, is no waste due to
defects or process execution problems.
Supplier partnerships involve engaging suppliers as part of the extended enterprise and driving Lean
principles throughout the supply chain.
At the top of the Lean structure is zero Muda. The idea that the product is built right the first time (RFT)
and that there is zero waste throughout the process.
Lets go through each of these elements in more detail, and explore the implications of Lean
Manufacturing systems on the way these activities are performed.
Slide 16: Employee Involvement - 5S

A clean workplace makes defects easier to identify. The 5S Philosophy focuses on effective workplace
organization. The philosophy draws its name from five Japanese words that begin with the letter S.
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x
Sort (Seiri) eliminating unnecessary items from the workplace. This can be accomplished by red
tagging placing a red tag on all items not required to complete the job and moving these to a
central holding area. Other unneeded items, that have no opportunity for reuse, are discarded.
Set in Order (Seiton) the second S focuses on efficient and effective storage methods. Once a
worker understands what tools and equipment are needed to do their job, this task is to get the
correct number of pieces and to locate them in the workplace. Often, each tool's place is marked
with a clear indicator. A place for everything, and everything in its place.
Shine (Seiso) Once clutter is moved out of the way, daily follow-up cleaning is necessary to
sustain this improvement. Workers will take pride in a clean work area. It will be easier to notice
changes in tools and equipment breakage, misalignment - and facility issues - leaks or
contamination - when beginning with a clean space.
Standardize (Seiketsu) After the first three Ss are completed, workers should standardize best
practices in the work area.
Sustain (Shitsuke) - This is the most difficult of the Ss to achieve. As we noted earlier, humans
are reluctant to change and it is easy to fall back into old familiar habits. It is important not to go
back to the status quo, but instead define and standardize the new way of working and make it
the new status quo.
In addition to having a clean workspace, each worker can quickly identify when something is amiss, for
example, a part is still on the bench and was not installed, or a leak has developed.
Slide 17: Employee Involvement - Quick Problem Solving

As noted, by implementing the 5S approach, workers will soon be able to easily detect when something is
not correct and can quickly notify the line supervisor that there is an issue. The next step is to undertake a
change wherein workers are encouraged to solve the problem themselves instead of waiting on someone
else to come and fix it. After all, in Lean Manufacturing workers are the owners of the process and must
take responsibility for it.
To be successful in the problem solving process, plant personnel need to be trained in problem solving
techniques with a formal methodology. Using a standardized methodology, everyone involved will bring a
common approach and perspective to how they will analyze problems and develop recommendations.
The recommended problem solving approach is, interestingly enough, the same approach that is also
used in Six Sigma. Known as the DMAIC approach, once a problem has been identified, DMAIC will help
the worker, or work cell team, analyze the problem, identify the issues, and recommend a solution. Here
are the components of DMAIC.
1. Define: Scope of issue (Who, What, Where) This involves a more precise definition of what the
problem is, where is it located, why is it happening.
2. Measure: How significant is the issue? For example, how many parts defective per million parts is
the problem causing? How long are resulting delays for each hour/shift/day due to the problem?
3. Analyze: Extent of the issue (influences other areas). This step involves conducting a more
thorough analysis.
4. Improve: Resolve the issue. Find the best solution.
5. Control: Maintain the gain, prevent it from happening again. This step involves periodically
checking to see that the solution has worked and that the improvement is occurring as predicted.
DMAIC provides the foundation for all workers to take control of the processes in their areas and to have
a basis with which to solve problems and work on continuous improvement efforts.
Slide 18: Traditional Functional Flow

The next element of Lean that we will discuss is continuous flow.
Traditional functional flows are similar to a meandering stream. Just as a stream will find the path of least
resistance as it flows, many traditional functional processes have developed over time, often without an
evolutionary plan. Because things worked, no one ever stood back to look at the entire process and
identify whether the right process was in use. As a result, the flow of material is often functionally
acceptable but woefully inefficient.
Factors that affect flow:
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Functional Layouts grouping all of the drill presses in one department rather than in work cells
where the capability can be used.
Poor Communication difficulty in getting information up and down the assembly line quickly.
Unbalanced workloads station 1 has five minutes of work on the product before it can move to
the next work station, station 3 has five minutes of work on the product, but station 2 has 10
minutes of work before the product can move along.
Equipment Breakdowns poor maintenance results in equipment malfunctioning.
Complicated Changeover for example, it takes 25 minutes to change the dies on a press.
Quality Problems / Rework failure to get it right the first time results in additionalwasteful
work.
Absenteeism / Turnover absenteeism impacts consistency and daily performance, turnover
impacts quality of the workforce.
Resource constraints if you have a job that requires 10 workers, and you only have 7 available,
you're already behind the curve.
Expediting is a sign that the plan wasn't well thought out or executed correctly.
Approvals or inspections if they are needed after the fact mean that worker responsibility to
build it right the first time is absent.
If anyone one of these flow impacting situations exist, it is an opportunity for a continuous improvement
event.
Slide 19: Continuous Flow

The appropriate metaphor for a continuous flow in the Lean world, on the other hand, is a pipeline that
conveys water directly from one location to another. The water moves quickly, the volume per time unit
(flow) can be monitored and measured reliably, and planning outputs and inputs is much easier to
manage than that of a stream!
The intent of continuous flow is to increase the velocity of production and to ensure that the cycle time is
predictable. To implement continuous flow:
x
All operations within a process should be rearranged in a sequential fashion with minimal
distance between operations:
o Functional activities should be co-located as much as possible with the rest of the
process activities.
o Layouts should be process/activity oriented versus functional.
o Isolated machines should be moved and incorporated into the line as much as possible.
Flow assumes that material or products will not be stagnant at any point in time, from receiving to
the shipping of finished products, during the entire process.
As shown in the graphic, a continuous flow is a function of kanban and pull systems, work cells, and
process flexibility. Lets look at these in more detail.
Slide 20: Pull Systems

The first element of continuous flow is pull systems. Pull systems are the opposite of schedule driven
push systems.
Pull initiates production as a reaction to present demand
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Workers only produce when there is a definite need.

To signal that there is a need; pull systems will use a kanban.
Slide 21: Kanban

Kanban is a key element in a pull production environment. A kanban signal can be almost anything that
indicates when production of a part is neededa card, an electronic signal, empty containers, colored
lights, or tokens on a board as examples.
Kanban systems use a simple, visible means to limit inventory backup. The idea is to make only what is
necessary. Because workstation processes don't take place until the output from the work station is
needed, a pull environment greatly reduces WIP (Work-in-Process or Work-in-Progress). Kanban enables
the production line to maintain a limit on inventory for each item and locate the item only at the
workstations where it is needed. These benefits ensure that inventory is held at a level that stimulates
improved performance.
The Rules of Kanban
1.
2.
3.
4.
5.
6.
7.
8.
The production line only uses what it needs.

A kanban signal attached to the goods should be used for tracking and monitoring flow.
The number of kanban must agree with the physical representation of the inventory locations.
Withdrawal from stores or WIP without a Kanban is unacceptable.
Only withdraw the number from stores or WIP as indicated by the kanban.
Upstream replaces only what has been withdrawn downstream.
Sending a defect (failure) downstream is prohibited.
No production can take place without a kanban.
Kanban provides an effective communication tool that is unmistakable in its message.
Slide 22: Work Cell Key Points

The second component of continuous flow is work cells. When someone starts a new job, they typically
have a number of questions:
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x
How do we do it?
How many?
What are the standards?
When is the job needed?
Work cells represent an effective, organized approach to consistent job performance. By assigning
individuals to work cells, their know-how and expertise is both effectively used and, at the same time,
enhanced through cross-training on the stations within the cell. Work cells also provide a way to measure
performance as completed parts; sub-assemblies and assemblies come out of the cells. Through the use
of team monitoring, work cells serve as a means of preventing recurrence of errors and minimizing
variability. Finally, within the context of Lean Manufacturing, documented processes for work cell activities
are constantly upgraded as employees make continuous improvements.
Slide 23: Work Cell Key Points

As shown in this example, work cells allows work to be divided into specific tasks with boundaries that
define what is, and what is not, included in each task. The work cell product (output) defines the
relationship of the work to other cells in the facility.
A well organized work cell represents the effective combination of workers, materials/information, and
machines. Individuals are located close to one another, so that they can communicate, exchange
information, and problem solve together. The close working relationships in the cell promote teamwork
and cooperation. Individuals may work on multiple tasks as well as visually monitor the level of both
component part inventory and finished work cell products. Should staffing levels change with demand,
work cell production requires that people have a high level of adaptability, rapid problem-solving
capabilities and be cross-trained on the other tasks in the cell to ensure no issues arise.
Work cells also require that management have a system for managing people working in the cells. Each
cell should have written instructions that answer the following questions:
x
x
x
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Work assignments What am I supposed to do?

Methods for accomplishing assignments.
Capacity how much work am I expected to produce in a given time?
Layout rationale behind work cell layout.
Material flow and WIP levels how is material received and distributed from the cell, and how
much inventory should be kept in the cell?
Productivity and Quality what are required levels of output and acceptable levels of defects?
Work cells provide an effective way to organize people, processes, and equipment to achieve continuous
flow.
Slide 24: Process Flexibility

The third and final component of continuous flow is process flexibility. The high level view of process
flexibility is the capability of the facility to produce different products using the same manufacturing cells.
The cells, or production line, have to have the ability to quickly reset to manufacture the new part,
component assemble or finished product.
Using the Single Minute Exchange of Dies techniques pioneered by Shigeo Shingo as a model, work cell
or production line or plant flexibility can be enhanced by following the steps below:
1. Observe the current process
2. Identify internal and external activities. Internal time is the time when reset activities are
performed while the process is shut down. External time is the time when reset activities are
performed while the process is running.
3. Convert as many internal activities to external activities as possible.
4. Simplify the internal activities in order to minimize their impact.
5. Ensure that external activities are of similar scale in terms of effort, time, and resource as the
internal activities.
6. Document the new process.
7. Repeat the reset assessment process to ensure you have taken advantage of every opportunity.
The balancing elements in creating flexibility are demand and cost. Is there sufficient demand to require
flexibility? Is the cost of flexibility, in terms of additional equipment, special equipment or custom facility
changes, driven by the degree of flexibility needed? Each facility will have to answer these questions in
making their determination of how to address flexibility.
Slide 25: Quality at the Source

The fundamental principle behind quality at the source is that you cant inspect quality into a product.
Although some companies inspect a product at the end of the process, a key element of Lean is to create
a quality product at each stage of manufacturing, and not pass a defective part or assembly on to
someone else downstream.
This is achieved through several approaches.
Source inspection means you review your work before you pass it on to the next station. This is part of
the standardized work of the operation. The process owner identifies, corrects, and contains a problem
before the component reenters the value stream.
Progressive inspection means the worker reviews the key characteristics of the product from the
previous step before beginning work at their station. The inspection is integrated into the standard work at
the station.
Poka-yoke Because inspection is a form of muda, mistake-proofing (poka-yoke) can be built into the
process. A poka-yoke is a product design, process, or procedure, e.g., an assembly jig, which physically
or procedurally prevents the operator from making an error. For example, the nozzle for diesel fuel in U.S.
filling stations is larger in circumference than the nozzle for gasoline. The diesel nozzle won't fit into the
opening for a regular gasoline fuel tank. The poka-yoke of different nozzle sizes prevents someone from
accidently putting diesel fuel into their gasoline-fueled automobile.
Slide 26: Supplier Partnerships

In creating the Lean Manufacturing environment, effective and detailed supply planning is a must. To
execute the supply planning, the Lean organization enters into a close working arrangement with its
suppliers. The ultimate extension of that relationship is that the Lean company and the supplier work
together, sharing information, sharing technology, even sharing personnel to create a value-added winwin arrangement for both parties.
Clearly, there is a vetting process that must take place prior to entering into a close working relationship.
For example, it is appropriate that the supplier's financial health is established. Additionally, close
evaluation of the supplier is needed to ensure that they have the ability to keep pace with the Lean
company as the business and products evolve. The goal is for both companies to be able to grow
together.
Sharing resources is a component of the supplier partnership. Supplier management must be aware of
the need to co-locate supplier engineers and supplier materials managers on-site in their partner Lean
company.
A set of guidelines which detail how the Lean company and the supplier company will engage and
interact are needed. Those same set of guidelines must be in place for the relationship between the first
tier and second tier suppliers. This point is often overlooked in most relationships.
An effective supply planning function begins and ends with a thorough and well-developed commodity
strategy. Every major spend area should have a documented strategy that provides goals, strategic
actions, and is monitored on an on-going basis.
Finally, a plan for continuous cost improvement throughout the supply chain should be in place. The cost
improvement plan establishes critical goal drivers and forms the basis for identifying the contribution of
supply management to organizational profit goals. Organizations who partner in a customer/supplier
relationship to eliminate non-value added activities benefit on both sides of the relationship.
Slide 27: Course Summary

Lean Manufacturing is often associated with JIT or kanban systems exclusively, but actually consists of
an entire set of principles based on the idea of eliminating waste from any business system. It is truly a
multi-faceted set of principles that span every element of a business, from the way it treats its employees,
the way that purchasing interacts with suppliers, how managers interact with workers, design of
processes, and the way that communication occurs, to the smallest details such as workplace
organization, housekeeping, and how people are expected to own their own processes and develop
solutions to the problems they observe in their daily work. As such, Lean Manufacturing represents a
monumental shift in how work is performed, and how people work together to improve their business.
To summarize, the core elements of Lean Manufacturing involve:
x
x
x
x
Understanding the current process (via tools called value stream mapping)
Identifying the key sources of waste in the system
Establishing the future desired state that is achievable
Build an improvement program that is deployed with the active engagement of managers,
employees, and staff
The core elements of Lean Manufacturing include the following:

Foundational Elements
x
x
Employee involvement from the outset

Focusing on workplace organization and problem solving
Essential elements
x
Continuous flow manufacturing, focusing on

o Establishing systems that will pull material through the system
o Employee work cells with standardized work and clear documentation
o Process flexibility to allow quick changeover
Advanced elements
x
x
x
Quality at the source

Supplier partnerships
Muda continuous improvement and non-stop pursuit of excellence
To achieve Lean, the notion of continuous improvement is fundamental. Lean is a transformational

journey to excellence that never ends.

Manufacturing Management Techniques Part 1 of 2 PDF

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Manufacturing Management Techniques Part 1 of 2 PDF

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Module 1: Manufacturing Management Techniques

Slide 02: Course Objectives

Slide 03: Objectives of Lean Manufacturing

Slide 05: Zero Waste

Slide 07: Vale-Added / Non-value added

Value-added activity provides value to the customer

Slide 08: Value Stream Mapping

Slide 09: Value Stream Scope

Slide 10: Deep Dive VSM

Slide 12: Rapid Improvement Events Helps Overcome Change Resistance

Slide 13: Three Stages of Change

Slide 14: Lean Manufacturing Structure

Slide 15: Lean Manufacturing Structure

Slide 16: Employee Involvement - 5S

Slide 17: Employee Involvement - Quick Problem Solving

Slide 18: Traditional Functional Flow

Slide 19: Continuous Flow

Slide 20: Pull Systems

Workers only produce when there is a definite need.

Slide 21: Kanban

The production line only uses what it needs.

Kanban provides an effective communication tool that is unmistakable in its message.

Slide 22: Work Cell Key Points

Slide 23: Work Cell Key Points

Work assignments What am I supposed to do?

Slide 24: Process Flexibility

Slide 25: Quality at the Source

Slide 26: Supplier Partnerships

Slide 27: Course Summary

The core elements of Lean Manufacturing include the following:

Employee involvement from the outset

Continuous flow manufacturing, focusing on

Quality at the source

To achieve Lean, the notion of continuous improvement is fundamental. Lean is a transformational

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