The Illustrated Lean Agile and World Class Manufacturing.pdf

AGILE AND WORLD CLASS MANUFACTURING

COOKBOOK

COMPILED BY FRANCOIS DE VILLIERS 2008-02-22

INTRODUCTION

A brave new world of least cost quality products and services awaits the adopters of Lean, Agile and World Class

Manufacturing.

However, these methodologies are often seen as daunting: a bewildering array of concepts and a healthy measure of

Japanese philosophy and language is enough to scare off most casually interested people. Even the naming the basic

concept seems troublesome, as Lean is often rightly or wrongly and interchangeably referred to as Toyota Production

System, Pull Manufacturing, Just-In-Time, Lean Manufacturing, JIT/TQC/EI/TPM, Short Cycle Manufacturing, One-Piece-

Flow, Cellular Manufacturing, Demand Flow Manufacturing, Stockless Production, Focused Flow Manufacturing, Agility,

Value Adding Manufacturing, Group Technology, Time Based Management, Synchronous Flow Manufacturing, End-Lining

Operations, and Continuous Flow Manufacturing. Every consulting group or writer chooses a new name or catch phrase

to describe the same collection of tools, techniques methodologies embodied in the basic lean philosophy.

Confusing as all these different titles may seem, the underlying principles of lean is neither new nor complicated. The fact

that lean is not new is clear from its history. Lean essentially stems from the work of a number of Japanese industrial

engineers (most of them employed by Toyota at some stage, based on the concepts, techniques and writings of Henry

Ford and the Ford Motor Company, which in turn was based on the foundations of lean penned by Benjamin Franklin more

than a century before. Also, lean is not complicated: it is good old fashioned common sense. In Ford’s own words “The

old American virtues of thrift and industry have no successors or substitutes. Business success is still a matter of making

friends by service, and not a case of cornering necessitous people in such a way that they will have to come to you" (Ford,

1922a, 282-283).

Lean is basically all about getting the right things, to the right place, at the right time, in the right quantity while minimizing

waste and being flexible and open to change. It is a team based approach to identifying and eliminating waste (non-value-

adding activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of

perfection.

This book aims to demystify the basic (and some advanced) concepts of lean in an easy to read cross referenced

dictionary style. It is hoped that the inclusion of Japanese terminology will show that, while the language is foreign, the

principles are essentially simple and based on sound logic. Enough illustrations are included to make it an invaluable

training resource too.

While every effort has been made to make this guide as comprehensive as practical, it is not possible to distill all the work

of the leading industrial engineers of the previous century to a few pages. The subject is worthy of much deeper and wider

study. Therefore a comprehensive list of web references and suggested further reading is included at the back of the

book.

Francois de Villiers, 31 May 2006

THE LEAN, AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 2 OF 107

ACKNOWLEDGEMENTS AND COPYRIGHT

This book was never intended for publication – it evolved from my needing to learn Lean Manufacturing concepts very

quickly when I was appointed as Logistics Director at an international manufacturing company in 2006. What started as a

glossary quickly grew to a fairly comprehensive resource on the key and supporting concepts of Lean Manufacturing.

Realising the inherent value in these concepts, I presented the first copy of the book to my former employer as a farewell

gift and kept on amending it for more than two years by liberally cutting and pasting from all over the www.

As it stands now I believe this is a unique and valuable tool for all lean practitioners, too good not to share with others.

Not contemplating publication at that time of compilation I did not keep meticulous records of my sources at the time of

compilation. Much material came from the web-sites listed at the back of the book, but countless others were used. While

I may be guilty of copyright infringement, this is entirely unintentional. In any event, the disjointed structure of this book

makes it worthless without one of the recognized texts on the subject, also listed at the back of the book. So please

support the authors and publishers who make a living out of their writing and books.

As I publish this collection on Scribd it now enters the public domain. Please feel free to copy and share this work with

others that may find it of value. However I retain copyright on this collection . Therefore please reproduce this document in

its entirety only, including this notice.

Francois de Villiers (devilliers.fs@gmail.com)

PS. The document has never been proof-read in its entirety. Please contact me should there be any glaring errors or

omissions.

THE LEAN, AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 3 OF 107

INTRODUCTION TO LEAN MANUFACTURING

From Wikipedia, the free encyclopedia

Lean manufacturing is a management philosophy focusing on reduction of the 7 wastes (Over-production, Waiting time,

Transportation, Processing, Inventory, Motion and Scrap) in manufactured products. By eliminating waste (muda), quality

is improved, production time is reduced and cost is reduced. Lean "tools" include constant process analysis (kaizen), "pull"

production (by means of kanban) and mistake-proofing (poka yoke).

One crucial insight is that most costs are assigned when a product is designed. Often an engineer will specify familiar, safe

materials and processes rather than inexpensive, efficient ones. This reduces project risk, that is, the cost to the engineer,

while increasing financial risks, and decreasing profits. Good organizations develop and review checklists to review

product designs.

The key lean manufacturing principles:

• Perfect first-time quality - quest for zero defects, revealing & solving problems at the source

• Waste minimization – eliminating all activities that do not add value & safety nets, maximize use of scarce

resources (capital, people and land)

• Continuous improvement – reducing costs, improving quality, increasing productivity and information sharing

• Pull processing: products are pulled from the consumer end, not pushed from the production end

• Flexibility – producing different mixes or greater diversity of products quickly, without sacrificing efficiency at lower

volumes of production

• Building and maintaining a long term relationship with suppliers through collaborative risk sharing, cost sharing

and information sharing arrangements.

Lean is basically all about getting the right things, to the right place, at the right time, in the right quantity while minimizing

waste and being flexible and open to change.

History of Lean Manufacturing

The basic principles of lean manufacturing date back to at least Benjamin Franklin. Poor Richard's Almanack says of

wasted time (a basic principle of the Theory of Constraints), "He that idly loses 5s. [shillings] worth of time, loses 5s., and

might as prudently throw 5s. into the river. He that loses 5s. not only loses that sum, but all the other advantages that

might be made by turning it in dealing, which, by the time a young man becomes old, amounts to a comfortable bag of

money." He added that avoiding unnecessary costs could be more profitable than increasing sales: "A penny saved is two

pence clear. A pin a-day is a groat a-year. Save and have."

Franklin's The Way to Wealth says the following about carrying unnecessary inventory, a concept that appeared two

centuries later in Eliyahu Goldratt's The Goal. "You call them goods; but, if you do not take care, they will prove evils to

some of you. You expect they will be sold cheap, and, perhaps, they may [be bought] for less than they cost; but, if you

have no occasion for them, they must be dear to you. Remember what Poor Richard says, 'Buy what thou hast no need of,

and ere long thou shalt sell thy necessaries.' And again, 'At a great penny worth pause a while:' He means, that perhaps

the cheapest is apparent only, and not real; or the bargain, by straightening thee in the business [reducing your available

cash, i.e. straightening your circumstances], may do thee more harm than good. For in another place he says, 'Many have

been ruined by buying good penny worths'." Henry Ford cited Franklin as a major influence on his own business practices,

which included Just-in-time manufacturing.

The concept of waste being built into jobs and then taken for granted was noticed by motion efficiency expert Frank

Gilbreth, who saw that masons bent over to pick up bricks from the ground. The bricklayer was therefore lowering and

raising his entire upper body to get a 5 pound (2.3 kg) brick but this inefficiency had been built into the job through long

practice. Introduction of a non-stooping scaffold, which delivered the bricks at waist level, allowed masons to work about

three times as quickly, and with less effort.

Frederick Winslow Taylor, the father of scientific management, introduced what are now called standardization and best

practice deployment: "And whenever a workman proposes an improvement, it should be the policy of the management to

make a careful analysis of the new method, and if necessary conduct a series of experiments to determine accurately the

relative merit of the new suggestion and of the old standard. And whenever the new method is found to be markedly

THE LEAN, AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 4 OF 107

superior to the old, it should be adopted as the standard for the whole establishment" (Principles of Scientific Management,

1911).

Taylor also warned explicitly against cutting piece rates (or, by implication, cutting wages or discharging workers) when

efficiency improvements reduce the need for raw labor: "…after a workman has had the price per piece of the work he is

doing lowered two or three times as a result of his having worked harder and increased his output, he is likely entirely to

lose sight of his employer's side of the case and become imbued with a grim determination to have no more cuts if

soldiering [marking time, just doing what he is told] can prevent it." This is now a foundation of lean manufacturing,

because it is obvious that workers will not drive improvements they think will put them out of work. Shigeo Shingo, the

best-known exponent of single-minute exchange of die (SMED) and error-proofing or poka-yoke, cites Principles of

Scientific Management as his inspiration (Andrew Dillon, translator, 1987. The Sayings of Shigeo Shingo: Key Strategies

for Plant Improvement).

American industrialists recognized the threat of cheap offshore labor to American workers during the 1910s, and what is

now called lean manufacturing was explicitly regarded as a countermeasure. Henry Towne, past President of the

American Society of Mechanical Engineers, wrote in the Foreword to Frederick Winslow Taylor's Shop Management

(1911), "We are justly proud of the high wage rates which prevail throughout our country, and jealous of any interference

with them by the products of the cheaper labor of other countries. To maintain this condition, to strengthen our control of

home markets, and, above all, to broaden our opportunities in foreign markets where we must compete with the products

of other industrial nations, we should welcome and encourage every influence tending to increase the efficiency of our

productive processes."

It was Henry Ford, however, who developed a comprehensive lean manufacturing system. "Ford's success has startled

the country, almost the world, financially, industrially, mechanically. It exhibits in higher degree than most persons would

have thought possible the seemingly contradictory requirements of true efficiency, which are: constant increase of quality,

great increase of pay to the workers, repeated reduction in cost to the consumer. And with these appears, as at once

cause and effect, an absolutely incredible enlargement of output reaching something like one hundred fold in less than ten

years, and an enormous profit to the manufacturer" (Charles Buxton Going, preface to Arnold and Faurote, Ford Methods

and the Ford Shops (1915)).

Levinson (2002, Henry Ford's Lean Vision: Enduring Principles from the First Ford Motor Plant) contends that Ford's lean

enterprise system "was directly responsible for making the United States the wealthiest and most powerful country on

earth." There is no doubt that Ford gave the country the forty-hour work week and, even during the First World War, a

cartoonist for The Times recognized that "Henry Ford is the most powerful individual enemy the Kaiser has." As for the

Second World War, Ford's production chief Charles Sorensen wrote, ""The seeds of [Allied] victory in 1945 were sown in

1908 in the Piquette Avenue plant of Ford Motor Company when we experimented with a moving assembly line" (1956, My

Forty Years with Ford).

Ford (1922, My Life and Work) provided a single-paragraph description that encompasses the entire concept of waste. "I

believe that the average farmer puts to a really useful purpose only about 5 %. of the energy he expends. … Not only is

everything done by hand, but seldom is a thought given to a logical arrangement. A farmer doing his chores will walk up

and down a rickety ladder a dozen times. He will carry water for years instead of putting in a few lengths of pipe. His whole

idea, when there is extra work to do, is to hire extra men. He thinks of putting money into improvements as an expense. …

It is waste motion— waste effort— that makes farm prices high and profits low." Poor arrangement of the workplace-- a

major focus of the modern kaizen-- and doing a job inefficiently out of habit-- are major forms of waste even in modern

workplaces.

Ford also pointed out how easy it was to overlook material waste. As described by Harry Bennett (1951, Ford: We Never

Called Him Henry), "One day when Mr. Ford and I were together he spotted some rust in the slag that ballasted the right of

way of the D. T. & I [railroad]. This slag had been dumped there from our own furnaces. 'You know,' Mr. Ford said to me,

'there's iron in that slag. You make the crane crews who put it out there sort it over, and take it back to the plant.'" In other

words, Ford saw the rust and realized that the steel plant was not recovering all of the iron.

Design for Manufacture (DFM) also is a Ford concept. Per My Life and Work, "Start with an article that suits and then study

to find some way of eliminating the entirely useless parts. This applies to everything— a shoe, a dress, a house, a piece of

machinery, a railroad, a steamship, an airplane. As we cut out useless parts and simplify necessary ones, we also cut

down the cost of making. ...But also it is to be remembered that all the parts are designed so that they can be most easily

made." The same reference describes Just in time manufacturing very explicitly.

However, it was with Taiichi Ohno at Toyota, where the ideas and principles mentioned by Ford finally got in practice.

Norman Bodek wrote the following in his foreword to a reprint of Ford's (1926) Today and Tomorrow: "I was first introduced

THE LEAN, AGILE AND WORLDCLASS MANUFACTURING COOKBOOK PAGE 5 OF 107

Plik z chomika:

Inne pliki z tego folderu:

Inne foldery tego chomika: