Prof. Dr. Udo Venitz

Hochschule für Technik und Wirtschaft des Saarlandes -University of Applied Sciences

LEAN MANAGEMENTLEAN MANAGEMENT

Lean ManagementLean ManagementLean Management

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Contents

Fundamentals• Origin and History of Lean Management

• The Toyota Production System

• Targets of a Lean System

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Origin an History of Lean Management

Production System

(TPS)

Lean Management is derived mostly from the Toyota Production System.

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The Toyota Production System (TPS)

The TPS is build on the two pillars Just-In-Time and Jidoka.

Source: www.swmas.co.uk

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The Toyota Production System (TPS)

Toyoda Sakichi (1876 ~ 1930)

Type-G Toyoda Automatic Loom(developed in 1924)

Jidoka = Autonomation = Automation with a human touch

1929 Kiichiro Toyoda sold the Patent in England1930 Toyota Motor Corporation founded

„Quality must be built in during the manufacturing process!“ (Toyoda Sakichi)

Source: www.toyota.co.jp/en/

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Targets of a Lean System

Satisfy customer demand

Best Prices

Lowest CostsCosts Shortest Lead Time Best Quality

The main target of every company is to generate Profit.

Supply on time

Profit

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Contents

Fundamentals• Origin and History of Lean Management

• The Toyota Production System

• Targets of a Lean System

Basic Elements• Muda – 7 types of waste

• KAIZEN – CIP

• Standards

• Visual Management

Wheel of Improvement

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Basic Elements - MUDA

Waiting

Correction/ Scrap

Inventory

Overproduction

(Over-)Processing

Transport

Motion

Muda – the 7 types of waste

Wastes in all our processes lead to higher costs and longer lead times.

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Basic Elements - KAIZEN

CIP

Standard

time

Wheel of Improvement

improvem

ent

We are continuously eliminating wastes by KAIZEN.

KAI = „change“

ZEN = „for the better“

KAIZEN = Continuous Improvement (CIP)

Source: KAIZEN-Institute

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Basic Element - Standards

“Without standards there can be no improvement” (Taiichi Ohno)

CIP

Standard

time

Wheel of Improvement

improvem

ent

Source: KAIZEN-Institute

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Basic Elements – Standards

Standards should be used everywhere in our work environment!

Source: ixetic GmbH

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Basic Elements – Visual Management

Visual Visual managementmanagement isis an an importantimportant methodmethodforfor a a shopshop floorfloor managermanager

to manage to manage thethe dailydaily business business easilyeasily

Visual management shows any differenceVisual management shows any differencebetween normal and abnormalbetween normal and abnormal

production processesproduction processes

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Basic Elements – Visual Management

Traffic Light Systems

Easy means can show us important informations!

Source: KAIZEN-Institute

Machine Conditions

Source: ixetic GmbH

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Contents

Just-In-Time (JIT)• Flow

• One-Piece-Flow

• Pull-System

• Kanban

• Supermarkets

• Heijunka - Production Leveling

Fundamentals

Basic Elements

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Waste

Just-In-Time (JIT)

„Making only what is needed, when it is needed, and in the amount needed!"

Ohno Taiichi (1912 ~ 1990)

o rd e r ca shT im e lin eo rd e r ca shT im e lin e

InventoryOverproduction Value Added

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Just-In-Time – Flow

Job-Shop ProductionOverproduction

Inventory

Transport Waiting

Motion

(Over-)ProcessingCorrection/ Scrap

Source: Liker Jeffrey K.: The Toyota Way, McGraw-Hill, New York 2004

Job-Shop Production is often full of waste, since there is no flow.

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Just-In-Time – One Piece Flow

Flow in a U-Shaped Production LineOverproduction

Transport

Motion

Correction/ Scrap

Inventory

Waiting

(Over-)Processing

Source: Liker Jeffrey K.: The Toyota Way, McGraw-Hill, New York 2004

Wherever possible establish a One Piece Flow.

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Just-In-Time – Pull Principle

Synchronized Production

Pull - PrincipleOne Piece Flow / Continuous Flow

When it is not possible to let the material flow pull the material!

Source: Syncro Consult GmbH & Co. KG

Inventory in the production

Closed LoopSource: Eidenmüller

Source: Syncro Consult GmbH & Co. KG

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Just-In-Time – Kanban

Kanban System

Source: www.ebz-beratungszentrum.deSource: www.orgatex.deSource: www.shelftagsupply.com

The Kanban System is a easy mean to control the material flow.

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Just-In-Time – Kanban

The parts retrieval kanban controls quantity and transport of the finished parts.

Mounting

parts retrieval kanban

Varnishing

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Just-In-Time – Supermarket

The previous process can be seen as a Supermarket.

Source: ixetic GmbH

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Just-In-Time – Supermarket

CustomerSupplier

Supermarket

• defined place with minimum, maximum and reorder level

• high visualization of inventory

Supermarkets assure a supply of the next process!

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Just-In-Time – Production Leveling

Source: Syncro Consult GmbH & Co. KG

Variable customer demand makes a utilisation of Supermarkets difficult.

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Just-In-Time – Production Leveling

By batch production we try to reduce the frequency of change over.

Batch Production

Total Number of Change Over Procedures: 4

A

8:00 10:00 12:00 14:00 16:00 17:00

D

C

BChangeOver

ChangeOver

ChangeOver

ChangeOver

Monday

Tuesday

Wednesday

Thursday

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Just-In-Time – Production Leveling

The target of production leveling: Every Part every Day!

Total Number of Change Over Procedures: 21

Heijunka = Production Leveling

B C D

8:00 10:00 12:00 14:00 16:00 17:00

E

B C F G

A

A

B C D HA

B C I JA K

Monday

Tuesday

Wednesday

Thursday

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Just-In-Time (JIT) • Flow

• One-Piece-Flow

• Push-System

• Pull-System

• Kanban

• Supermarkets

• Production Leveling

B C D

8:00 10:00 12:00 14:00 16:00 17:00

E

B C F G

A

A

B C D HA

B C I JA K

Montag

Dienstag

Mittwoch

Donnerstag

JIT Jidoka

Highest Quality, Lowest Cost, Shortest Lead Time

Basic Elements

We need all the methods to build up a lean system!

Summary

OverproductionCIP

Standard

time

Wheel of Improvement

improvem

ent

Basics Elements• Muda – 7 types of waste

• KAIZEN – CIP

• Standards

• Visual Management