GBE KPO 2 001 00 Lean Basics 1

Lean Training
Lean Basics 1
Design. Build. Ship. Service. Business Excellence
GBE-KPO-2-001-00 Lean Basics 1 Rev.04
Document Title: Lean Basics 1 Revision: 04
Document# GBE-KPO-2-001-00 Document Owner: Chuah Khar Yee
Organization: Global Business Excellence Effective Date: December 11, 2008
APPROVALS NAME Ganesh S Maniam TITLE Director DEPT NAME Global Business Excellence DATE December 11, 2008
REVISION 04
REVISION HISTORY DESCRIPTION OF CHANGE Document formatted as per DMS policy
ORIGINATOR Chuah Khar Yee
RELEASE DATE December 11, 2008
This document is proprietary and confidential property of Flextronics.

Table of Contents
Contents Slide(s)
Overview & Scope Objectives A Brief History of Lean The Flextronics Lean Enterprise (FLE) Waste Elimination Value Stream Mapping (VSM) 5S & Visual Management Super Market
3 4 6 13 16 29 37 55
Overview & Scope

Lean Manufacturing is a generic process management philosophy derived mostly from the Toyota Production System (TPS) but also from other sources. It is renowned for its focus on reduction of Seven Wastes' in order to improve overall customer value. * Toyota's achievement made "Lean" a hot topic in management science in the first decade of the 21st century. Lean Manufacturing can be defined as: "A systematic approach to identifying and eliminating waste (non-value-added activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection."
* Info Source: http://en.wikipedia.org/wiki/Lean_manufacturing

Objectives
Introduce Flextronics Lean Enterprise (FLE) and its elements Waste Elimination Value Stream Mapping (VSM) 5S & Visual Management Supermarket
What Executives (Really) Need to Know

98% of Organisations that engage with Lean, Fail!! WHY??? Lean is HARD!!!
Lean Thinking
Its a people issue. Thats why its so hard. Getting people to change to do things differently than they have done them is really, really hard.
Art Byrne, CEO Wiremold
If a company is really maniacal about Lean it takes two to three years to go from kindergarten to first grade. Thats how tough it is.
Mark DeLuzio, architect of the Danaher Business System, Danaher
Excerpts from the book Lean Machines

A Brief History of Lean
Lean History Timeline The Origins of Lean Manufacturing
Lean History Timeline
Father of Management Father of Motion-Time Study Father of Assembly Line Concept Industry Quality Transformation Birth of TPS/Lean Concepts
Ohno Shingo
The Machine That Changed The World Lean Thinking

Info Source: http://www.strategosinc.com
The Origins of Lean Manufacturing

Lean Manufacturing has its root in the Toyota Production System (TPS). Several individuals at Toyota were instrumental in developing and systematizing TPS. Among the most important were: Sakichi Toyoda (1867~1930) Japans King of Inventors. His concept of Jidoka (autonomation) is one of the foundational principles of TPS. First applied toToyoda Power Loom equipped with a new weft-breakage automatic stopping device (developed in 1896). World's first automatic loom with a non-stop shuttle-change motion, the Type-G Toyoda Automatic Loom (developed in 1924). Founded Toyota Motor Co. in 1937.
For more info: http://en.wikipedia.org/wiki/Sakichi_Toyoda
Type G Automatic Loom
Toyota Sedan Model AA Info Source: http://www.toyota.co.jp/en/vision/production_system/origin.html


Kiichiro Toyoda (1894~1952) Sakichis son. The TPS has evolved through may years of trial and error to improve efficiency based on the JustinTime (JIT) concepts developed by Kiichiro Toyoda, the founder (and second president) of Toyota Motor Corporation. Inherited Sakichi Toyoda philosophy, set out to realize his belief that the ideal conditions for making things are created when machine, facilities and people work together to add value without generating any waste. Conceived methodologies and techniques for eliminating waste between operations, between lines, between processes. The result was the so called JIT method. Drawing on his experience of introducing a flow production method using a chain conveyor into the assembly line of a textile plant (completed in 1927) with a monthly production capacity of 300 units. Introduced this method into the body production line at Toyota Motor Co., Ltd.'s Koromo Plant (present day Honsha Plant), completed in 1938. He studied Fords production system and adapted it to the smaller, more diverse Japanese market.
For more info: http://en.wikipedia.org/wiki/Kiichiro_Toyoda
Info Source: http://www.toyota.co.jp/en/vision/production_system/origin.html

10

Eiji Toyoda (1913 ~) By ensuring thorough implementation of Jidoka and the Just-in-Time method, Eiji Toyoda increased workers' productivity in adding value and realized the Toyota Production System, which enabled Toyota to compete head-on with companies in Europe and the U.S.
For more info: http://en.wikipedia.org/wiki/Eiji_Toyoda
Taiichi Ohno (1912~1990) With strong backing from Eiji Toyoda, Taiichi Ohno helped establish the Toyota Production System, and built the foundation for the Toyota spirit of "making things" by, for example, creating the basic framework for the Just-inTime method. Known as the Architect of TPS. Systematized Jidoka, JIT, standardized work and kaizen into what we now know as TPS. Father of the supermarket system of inventory control.
For more info: http://www.strategosinc.com/taiichi_ohno.htm http://en.wikipedia.org/wiki/Taiichi_Ohno

11

Dr. Shigeo Shingo (1909~1990) In 1930, after graduation from Yamanashi Technical College, he went to work for the Taipei Railway Company. In 1943, he was transferred to the Amano Manufacturing Plant in Yokohama. In 1945 and 1946 and also began a long association with the Japanese Management Association (JMA). In 1955, he began another long association, this time with Toyota. In addition to his many consulting assignments in other industries. It is during this period that he first started work on setups by doubling the output of an engine bed planer at Mitsubishi's shipyard. In 1959, he left JMA to start his own consulting company. During the early 1960's, as an outgrowth of work with Matsushita, he developed his concepts of "Mistake-Proofing (PokaYoke). In 1969, SMED was originated when he cut the setup time on a 1000 ton press at Toyota from 4.0 hours to 3.0 minutes. During the 1970's, he traveled in Europe and North America on many lectures, visits and assignments. He began to see Toyota's efforts as an integrated system and began to assist several U.S. and European firms in implementation.
Info Source: http://www.strategosinc.com/shigeo_shingo.htm
12

By practicing the philosophies of daily improvements" and good thinking, good products" the TPS has evolved into a world-renowned production system. Furthermore, all Toyota production divisions are making improvements to the TPS day and night to ensure its continued evolution. At least as important as the tools that these founders discovered, was the realization by top Toyota management that for the system to work, workers must be continuously trained, motivated, and properly supported at all times.

13
The Flextronics Lean Enterprise (FLE)
The Flextronics Lean Enterprise (FLE) Sequential Applications of Tools
14
The Flextronics Lean Enterprise (FLE)

Adding Value and Eliminating Waste
FLE
Pull Production Single Piece Flow Takt Time Production Level Loading Stop @ Abnormality
JIT
Jidoka
Autonomation
Heijunka VSM, 5S, Supermarkets

Sequencing
15
Sequential Application of Tools

7. Jidoka Stop at Abnormalities Human Intelligence into machines 5. JIT 6. Prod Prep Process (3P) Takt Time Standard work Single Piece Flow Takt Time Pull Production Standard WIP Flow Op Sequence Kanban 4. Heijunka Level Loading Sequencing
Degree of Change + Impact
1. 5S Seiri - Sort Seiton - Set In Order Seiso Shine / Sweep Seikets - Standardize Shitsuke - Sustain
2. Material Presentation Receiving Break Bulk Supermarket Kitting
3. VSM Current State Future State
Time Value Stream is the Foundation Value Stream is the Foundation

16
Waste Elimination
Seven Wastes (TIMWOOD)
17
Understanding & Eliminating Waste

Begin by learning the FUNDAMENTALS. If you learn the wrong ideas about fundamental matters, you are likely to continue to make mistakes later, no matter how enthusiastic you are about implementing improvements. The Seven Types of Waste Transportation Inventory Motion Waiting Overproduction Over Processing Defects
TIMWOOD
Waste Exists In Every ProcessEliminate It! Waste Exists In Every ProcessEliminate It!
18
The Universal Lean Principle
Info Source: http://www.lean.org/WhatsLean/Principles.cfm
Value Stream
Identify the wastes in the Value Stream and remove all the wastes
Value
Correctly Specify Value of Product/Service with Customer in mind
Flow
Make the Product and Value Flow Smoothly
Pursue Perfection
Wastes Elimination as an Ongoing Process towards Perfection
Pull
Produce only to the Pull of Customer Demand
19
Defining Value
Value Added Activity Something customers are willing to pay for - AND changes the form, fit, or function of materials or information - AND Is being done right the first time. Non -Value Added Activity All other actions and unwanted features are by definitionWASTE adding no value to the customer.simply raise costs in our business!
Before
After
Time
Value Added Work Non Value Added Work
Eliminate Non-Value Added Activity Eliminate Non-Value Added Activity

20
Understanding & Eliminating Waste

Observe that 2 Things are ALWAYS happening concurrently. . . . . .
Things that should be done Things that should not be done

Before
WORK WASTE
After
Time
Value Added Work Non Value Added Work
ItEither Adds Value or Does Not ItEither Adds Value or Does Not
21
Waste #1 - Transportation
Requires Equipment Increases Handling Damage Necessary Must Minimize
This is what you are striving for

Orbital Weld
Flex
Weld
End Finish
Weld
End Finish
Torch Braze Mech. Clean Mech. Clean Mark Hydro Test
Machines Next to Each Other Transport Time Minimized Machines Next to Each Other Transport Time Minimized
22
Waste #2 - Inventory
Ties Up Working Capital Takes Valuable Space Risk of Obsolescence
Poor product quality Long changeovers
Frequent breakdowns
Inventory levels
High spoilage
Unplanned stoppages
Slow running
Waste Asks For More Waste Waste Asks For More Waste
23
Waste #3 - Motion
Ergonomic Concerns Labor Efficiency Wasted Cycle Time
???
sitting
searching
turning around
walking
climbing
choosing
bending
lying down
Before
After
Treat Operators as SurgeonsEverything Within Reach Treat Operators as SurgeonsEverything Within Reach
24
Waste #4 - Waiting
Increases Lead Time Increases Work in Process Slows Response to Customer
When Inventory Waits Your Customer Waits When Inventory Waits Your Customer Waits
25
Waste #5 Overproduction
Ties Up Working Capital Takes Up Floor Space Hides Process Problems
Do Not Produce What the Customer Does Not Need Do Not Produce What the Customer Does Not Need
26
Waste #6 Overprocessing
Create Delay Increase Opportunity for More Defects Do not Add Value By Definition
Manual Entry of Information

Match Physical Movement With Systemic TransactionStrive for 1:1 Ratio Match Physical Movement With Systemic TransactionStrive for 1:1 Ratio
27
Waste #7 - Defects
Upset Customers Consume Resources Choke Flow
Reworking Defects Is WastefulSending Them to Customers is Outrageous Reworking Defects Is WastefulSending Them to Customers is Outrageous
28
(7 Wastes) + 1 Waste Skills (Unutilized Skills)

Unutilized resources of skill/knowledge from the shop floor worker
Skills not Utilized Skills not Utilized

29
Value Stream Mapping (VSM)
Current State Map Future State Map
30
What is the Value Stream?
Supplier
Flextronics : Suppliers Flextronics Ops : Plant/Service Repair Shop Flextronics : Customer
Customer
TOTAL Value Stream
See the Whole Process from Start to Finish See the Whole Process from Start to Finish
31
Levels of Mapping
Process Level Process Level
Single Plant Single Plant (door to door) (door to door)
Multiple Plants Multiple Plants
Across Companies Across Companies

Can Be Used at Any Level in the Business Can Be Used at Any Level in the Business
32
Why do Value Stream Mapping?

Understand current state - Big picture point of view Shows the ratio of Non-Value Added to Value Added Time Exposes sources of waste - not just waste Shows linkage between the seven types of flow
Forms the Blueprint for aaLean Implementation Plan Forms the Blueprint for Lean Implementation Plan
33
How do we start?
Product Family Product Family
Identify the Value Stream for every major product family / program Concept to launch - Order to delivery
Current State Current State Drawing Drawing Future State Future State Drawing Drawing
Map the current state - Identify all the actions that dont create value (VA/NVA/VE*) Develop and map concepts for the future state as a management team & communicate your vision to your team Develop metrics & determine goals How success will be measured? Develop actions and drive toward future state
Implementation Implementation Plan Plan
Note: VE is Value Enabler, e.g. ISO, OSHA, ANSI/ESD S20.20, MSC, RoHS, etc
34
What will be seen?

The 7 Types of Flow 1. 2. 3. 4. Material Raw Material WIP Material Finished Goods Information Act on material Load into machine Move it from 1 bucket to another 5. People Standard Work Takt Time 6. Equipment Carts Conveyors Andons Racks TPM 7. Engineering / Tools Quality Tooling Cutting tools Programs
The Problems as well as the Answers Lie Within the Flow The Problems as well as the Answers Lie Within the Flow
35
Guidelines for Mapping

Start at the customer and work backwards Walk the actual flows Dont Map the Organization but the flow through it Dont be too detailed this is an overview Use pencil not power point quick and crude
Pretend you are the product And follow the product path flows Pretend you are the product And follow the product path flows
36
Example of Current State VSM

Forecast 3mths Firm Monthly Material Specialist Program Administrator Forecast
Supplier
Production Control Firm Weekly
Customer
MENLO
Loading Plan (Weekly, Daily) Daily Shipment Plan
Hub
Suppliers
SMT-WAVE Yield: 90%
MLT Processing 7200 sec Time 1 day 7200 sec
Suppliers
ICT Yield: 96%
1 day 7200 sec
Coating Yield: 90%

1 day
FVMI Yield: 90%

1 day 7200 sec
FQA Yield: 90%

1 day 7200 sec
Packing Yield: 90%

Total: MLT: 5 Days PT: 43200
7200 sec
: Supplier : Manual Transport
: Fork lift : Store
: Picking cart : Truck
: Material Flow(Blue) : Process Flow(Black)
: Information Flow(Black) : Receipts
: Process : PC
E V
: Elevator : Inventory
Customer
MLT : Manufacturing Lead Time PT: Processing Time
37
5Ss & Visual Management
Sort
Set in Order
Shine
Standardize
Sustain
38
Introduction to the 5S
Sort (Seiri) Set in Order (Seiton)
Proper Arrangement Simplify/Clean up Cleanliness Orderliness Self Discipline
Shine/Sweep (Seiso) Standardize (Seiketsu) Sustain (Shitsuke)
39
Definition
What is the 5S? Establish standards to detect an abnormality Create and maintain an organized, clean and safe work area Conditioning discipline for Action Workout
40
Step 1 : Sort (Seiri)

PURPOSE Eliminate all unnecessary items Items not needed now for production What do we need? What can we remove?
ASK YOURSELF
When In Doubt . .. .. .Throw It Out When In Doubt Throw It Out

41
Step 2 : Set in Order (Seiton)

PURPOSE Organize and arrange what you need
ASK YOURSELF
What do we need to use 1st, 2nd Where should it be?
Everything you REALLY Need at your Fingertips Everything you REALLY Need at your Fingertips
42
Step 3 : Shine (Seiso)

PURPOSE Identify abnormalities by visually sweeping the area
ASK YOURSELF
Does this belong here? Is it needed right now?
Be able to quickly detect an abnormality Be able to quickly detect an abnormality

43
Step 4 : Standardize (Seiketsu)

PURPOSE Arrange items so that they can be found quickly by anybody
ASK YOURSELF
Does everything has a place? Is everything in its place?
Anyone should be able to easily understand proper arrangement and abnormalities Anyone should be able to easily understand proper arrangement and abnormalities
44
Step 5 : Sustain (Shitsuke)

PURPOSE ASK YOURSELF
5Ss Level 5 Level
Level Of Improvement
Leadership responsibility to sustain the first 4Ss Are the actions clearly defined? Clear ownership?
Simplify
All items can be easily retrieved by anyone; they are clearly marked. Standardized item quantities are established; Shadow boards are utilized. Needed items have dedicated locations which are clearly labeled. Needed items have been safely stored and organized. Items are placed randomly throughout the work place.
Sort
Anything not required for immediate production is removed from the line. Non-utilized cabinets, benches, tables, etc. identified and removed from area. Unneeded materials removed from plant; not stored away. Needed and unneeded materials have been identified and separated. Needed and unneeded materials are mixed throughout the work area.
Sweep
Immediate actions taken against abnormalities; Shop kept orderly on a continuous basis. Daily cleanliness inspection of equipment, tools and supplies. Visual controls established and well marked for work area. Area team leaders identified and responsibilities documented. Work areas unkept; No visual controls in place. Information is hidden in the computer system.
Standardize
Self Discipline
Material layout, assembly, Immediate actions taken & communications are against assembly documented, standardized abnormalities. & followed rigorously. Areas individuals take Establish & follow standard procedures.They ownership; standards are clear, up-to-date, and are followed. displayed in work areas. Labeling of items with required quantities are standardized. Procedures are documented, but not consistently followed. No procedures in place. Daily checks performed by area leaders; standards are regularly reviewed and updated. Periodic checks are performed by area leaders. No area checks are performed; standards are not established.
4 Level 3 Level 2 Level 1
Steps of Implementation
Easy To Measure Stay Focused Easy To Measure Stay Focused

45
(5S) +1 : Safety
Safety must be in everyone mind all time. Safety is the 1st item when you are doing any kind of Improvement Safety cannot be compromised with all the other 5Ss activities. Zero tolerance to any industry
46
Keys to 5Ss Success

Get everyone involved. Integrate 5S Principles into daily work requirements. Communicate need for 5S, roles of all participants, how it is implemented. Be consistent in following 5S Principles in all areas Business Team Leader involvement is a must! Follow through -finish what is started - 5S takes effort and persistence. Link 5S activity with all other Action Workout initiatives.
47
The Foundation
The 5S is the foundation for Flextronics Lean Enterprise. In order to visually detect any abnormal condition, we need to establish Visual Management & Standards.
48
5Ss Leadership Responsibility

Management at all levels must be committed to establishing and maintaining the 5S process. Before people leave work for the day, everyone must ensure that the cell meets 5S principles. The use of checklist for monitoring adherence, quantifying results of cell inspections and prominent display of each areas results are tools which management can use to help sustain the process. Management must lead by example. Walk the Talk!
49
Create Standards.. Detect Abnormalities

Look here
5 cowboys to drive 1000 cattle Should take one look and understand the situation Clearly differentiate between what is Normal and Abnormal Detect what is Abnormal
Not here
Dont Manage aaStandard Detect the Abnormality Dont Manage Standard Detect the Abnormality
50
51
Very Easy to Detect Abnormalities ! ! Very Easy to Detect Abnormalities

52
Which Situation is Easier to Manage ? Which Situation is Easier to Manage ?

53

All small parts have defined place
Vertical Limit
Horizontal Limit
54
55
Supermarket
Visual Management
FIFO
56
Supermarket
Supermarket is a stocking location for raw material/WIP/FG with the following characteristics: Enables Visual Management. Right size to support level loaded plan. FIFO Material Flow. Controlled Entry/ Exit of Parts locked (as requiredinitially) 5 No's - No thinking, No searching, No counting, No checking, No waiting
What do I Ilook for in aaSupermarket? What do look for in Supermarket?

57
Example of Supermarket
58
59
60
61
In
Out
62
Steps to Set-up Supermarket

1. Set break bulk area for Supermarket 2. Right Size of Supermarket Supermarket physical set-up should meet Supermarket Evaluation Checklist(Refer to page 64) and the score should be 100% Start with Right size of bin which is based on consumption rate and condition required by customer (production line) Min-Max and Re Order Point (ROP) shall be clearly defined and visually trigger Replenishment should be based on consumption pull 3. Right Size of Inventory Utilize the Inventory Tracking Sheet (refer page 68) Calculate right size of Inventory Ideal Inventory (Min-Max / RoP) Isolate and Visualize excess inventory 4. Right Purchase Method Use Kanban as delivery control Trigger PO and delivery signal to supplier only if kanban issued
63
How to Track Supermarket Implementation?

1. Height Requirements: Rack height is limited to human height or reachable with eliminated motion climbing, searching and sorting 2. Address: Location, Part Number, ROP (Min/Max) 3. FIFO: Demonstrate an auto gravity pull gradient design FIFO mechanism 4. Pull Material: Shop floor providing Sequential pull systems. Supermarket issuing only what is requested to replenish Production Material usage 5. Visual Management: Enable material order personal react to inventory level 6. No Waiting Transaction: All activities between raw material receiving and build on board have been evaluated; eliminate non-value-creating waste such as waiting 7. Return Flow: Material return to supermarket flow as pre-define processes, Excess material return to warehouse is under standard work control. An Integrated flow to abolish overprocess of re-verification/inspection, waiting along the returning process 8. Water Strider: Identify a group of operators work as Water Strider. Separated the job function from normal assembly line operator 9. Work Standard and Combination Sheet: Define the work instructions and work route for all Water-Strider 10. 5 No's - No thinking, No searching, No counting, No checking, No waiting
64
Supermarket Evaluation Check-list
65
Self Assessment for Supermarket
66
Inventory Tracking Sheet
Inventory Tracking Sheet
67
Where to Learn More
Discussed in Lean Thinking by James Womack
Further developed and documented by the Lean Enterprise Institute of Brookline, Ma. as Learning to See
Find additional information at: www.Lean.Org
68
Thank you
Design. Build. Ship. Service.
69

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Lean Training

Design. Build. Ship. Service. Business Excellence

GBE-KPO-2-001-00 Lean Basics 1 Rev.04

Document Title: Lean Basics 1 Revision: 04

Document# GBE-KPO-2-001-00 Document Owner: Chuah Khar Yee

Organization: Global Business Excellence Effective Date: December 11, 2008

REVISION HISTORY DESCRIPTION OF CHANGE Document formatted as per DMS policy

ORIGINATOR Chuah Khar Yee

RELEASE DATE December 11, 2008

This document is proprietary and confidential property of Flextronics.

GBE-KPO-2-001-00 Lean Basics 1 Rev.04

Overview & Scope

* Info Source: http://en.wikipedia.org/wiki/Lean_manufacturing

GBE-KPO-2-001-00 Lean Basics 1 Rev.04

What Executives (Really) Need to Know

Excerpts from the book Lean Machines

A Brief History of Lean

Lean History Timeline The Origins of Lean Manufacturing

GBE-KPO-2-001-00 Lean Basics 1 Rev.04

Lean History Timeline

The Machine That Changed The World Lean Thinking

The Origins of Lean Manufacturing

Type G Automatic Loom

Toyota Sedan Model AA Info Source: http://www.toyota.co.jp/en/vision/production_system/origin.html

The Origins of Lean Manufacturing

Info Source: http://www.toyota.co.jp/en/vision/production_system/origin.html

The Origins of Lean Manufacturing

Info Source: http://www.toyota.co.jp/en/vision/production_system/origin.html

The Origins of Lean Manufacturing

The Origins of Lean Manufacturing

Info Source: http://www.toyota.co.jp/en/vision/production_system/origin.html

The Flextronics Lean Enterprise (FLE)

The Flextronics Lean Enterprise (FLE) Sequential Applications of Tools

GBE-KPO-2-001-00 Lean Basics 1 Rev.04

The Flextronics Lean Enterprise (FLE)

Heijunka VSM, 5S, Supermarkets

Sequential Application of Tools

Degree of Change + Impact

2. Material Presentation Receiving Break Bulk Supermarket Kitting

3. VSM Current State Future State

Time Value Stream is the Foundation Value Stream is the Foundation

Seven Wastes (TIMWOOD)

GBE-KPO-2-001-00 Lean Basics 1 Rev.04

Understanding & Eliminating Waste

The Universal Lean Principle

Info Source: http://www.lean.org/WhatsLean/Principles.cfm

GBE-KPO-2-001-00 Lean Basics 1 Rev.04

Eliminate Non-Value Added Activity Eliminate Non-Value Added Activity

Understanding & Eliminating Waste

Things that should be done Things that should not be done

This is what you are striving for

Torch Braze Mech. Clean Mech. Clean Mark Hydro Test

Poor product quality Long changeovers

Manual Entry of Information

(7 Wastes) + 1 Waste Skills (Unutilized Skills)

Skills not Utilized Skills not Utilized

Value Stream Mapping (VSM)

Current State Map Future State Map

GBE-KPO-2-001-00 Lean Basics 1 Rev.04

What is the Value Stream?

TOTAL Value Stream

Process Level Process Level

Single Plant Single Plant (door to door) (door to door)