Lean Production for the Small Company / Edition 1

by Mike Elbert

Overview

A hands-on guide to adapting Lean principles and the Toyota Production System to high-mix/low-volume environments, Lean Production for the Small Company uses charts, pictures, and easy-to-understand language to describe the methods needed to improve processes and eliminate waste. It walks readers through the correct order of implementation and describes problems and pitfalls along with time-tested solutions.

Explaining how to incorporate existing systems into a Lean strategy, the book starts with the fundamentals and builds on them to describe the full range of tools and processes needed to implement Lean. It outlines how to design factories for Lean manufacturing and demonstrates how to remove variations within business and manufacturing processes to achieve a smooth continuous flow of product that delivers your product on time to customers.

The tools, methods, and ideals discussed are applicable in any industry and all parts of your business—from manufacturing and sales to human resources. The text unveils new methods and tools that can help you reduce inventory, improve inventory turns, and facilitate raw material flow through the factory. It details how to use customer order demands to schedule the production floor, rather than using estimated production schedules. It also considers the accounting process and explains how to improve your cash-to-cash cycle time.

Drawing on the author’s decades of experience transforming high-mix plants to Lean, the text brings together coverage of the tools and processes that have made Toyota so successful. All the chapters in this book, when implemented, will result in a culture change that will transform your company into a learning organization that continuously eliminates waste and improves its processes.

Product Details

ISBN-13:	9781439877791
Publisher:	Taylor & Francis
Publication date:	08/07/2012
Edition description:	New Edition
Pages:	295
Product dimensions:	7.00(w) x 10.00(h) x (d)

About the Author

Mike Elbert is president of Elbert Lean Business Systems, LLC, a consulting service that helps businesses eliminate waste. A qualified Lean Practitioner, Mike is a leader in business and manufacturing processes and systems with an MBA in manufacturing systems from the University of St. Thomas. Industries that Mike has worked in include electronic components, consumer electronics, heavy metal fabrication, precision machining, plastic and rubber molding, and medical device manufacturing. He spent more than twenty-five years as a manager of engineering, quality, product, and process design, and he understands the importance of planning, teamwork, and accountability. During his thirty-plus years in manufacturing, Mike has worked in a diverse range of organizations, including small-, mid-, and large-sized corporations. For the past twenty-five years, he has worked with Lean manufacturing systems and its predecessors, focusing on improving manufacturing processes and equipment. Mike believes that any business, including start-ups, can improve efficiency and income by identifying and eliminating waste from processes, including the extended supply chain. He offers a range of programs and services that include teaching Lean business systems, facilitating improvement meetings, and directing the overall transformation of your company to a Lean organization. Drawing on decades of experience in low- and high-volume production, he now focuses mainly on the implementation of Lean business and manufacturing systems while also providing many classical industrial engineering products. After a career spent reducing costs and improving manufacturing efficiency, Mike now teaches and coaches others on how to achieve the same success. He is passionate about Lean business and manufacturing systems and their ability to improve your company, products, and customer satisfaction. Mike has published articles and has been quoted in Industrial Engineering magazine, and was a columnist for the Minnesota Manufacturers Alliance's monthly newsletter. He has taught seminars for the Minnesota Manufacturers Alliance, Minnesota Employers Association, and nationally for the Institute of Industrial Engineers. He is a life member of the Institute of Industrial Engineers and a member of its Twin Cities Chapter 38. Mike Elbert is available for private consultations on Lean Enterprise Systems, operations management, industrial engineering, and facility design. For more information, please visit his website at www.elbertleansystems.com.

Table of Contents

Introduction Brief History of Lean Manufacturing Philosophy of Lean Manufacturing and Business Systems Why Do We Need Lean Manufacturing and Business Systems Fundamentals of Lean Production and Business Systems Nine Critical Wastes in Business Concerning Elimination of Waste Fundamentals of Lean Manufacturing The Five Whys' Critical Importance of Management Commitment Establish your Lean Team and Lean Leader The Lean Coach Lean Coach and Consultants Lean Team Lean Production and Your Employees Some Will Leave Us (making the really tough decision, removing human roadblocks) Lean Systems versus Six Sigma Tools for Continuous Improvements Step 1: Hands on Example: Order out of Chaos Housekeeping 5S Beginning your Journey Waste Walk Plant Manager: Waiting (Idle Time) Materials Manager: Excess Inventory Finished Goods: Overproduction Production Manager: Overproduction Quality Manager: Defects Purchasing Manager: Environmental Planning Manager: Transportation Manufacturing Engineering Manager: Excessive Motion Lean Leader: Overprocessing Current Lean Status Value Stream Maps: The Amazing Tool (Critical to your Success) What is a Value Stream Map and Why you Need It Why a Value Stream Map Is Critical to Your Success How to Create a Value Stream Map Current State Map Creating the Map Gather Your Data How to Read a Value Stream Map Next, Compare the Current State Map to the Future State Map Identify your Products Continuous Improvement Projects Identifying your Projects from your Maps Which Project to do First Machine Tools and Takt Time Smoothing the Flow of Production Balancing Product Mix in the Work Cell Implementation Audits Who Should be Audited? Stabilizing your Process Your First Kaizen Project Team What is a Kaizen Event (continuous improvement event) Team Make-up Kaizen Event Process SMART Goals Plan-Do-Check-Act Using Plan-Do-Check-Act Kaizen Tool Box Tool Box Inventory List Continuous Flow Step 1 - Determine Family Mix Step 2 - First Production Cell Step 3 - Create Goals and Result Chart Stabilizing Your Process Standing in the Circle Standardize Work Using Standardize Work Reducing Variability Leaders Standard Work versus Work Instructions Team Leader Standard Work Managers Standard Work Accountability Daily Production Meetings Work Cell and Factory Layout Work Cell Layout Ergonomic Design Work Cell Material Handling Design Creating your Lean Road Map (Strategy Deployment) Introduction Strategic Lean Manufacturing Plan Visual Controls and Visual Management Visual Management Displays and Controls Andon Display Production Scheduling Introduction MRP and Lean Complement Each Other What Finished Goods Should I Stock? Types of Pull Systems Organizing and Controlling Finished Goods Warehouse How to Schedule the Production Line (Value Stream) Introduction Pacemaker Process Efficiency versus Changeover Supermarket (Warehouse) Location in the Factory Signaling Material Withdrawal from the Market Batch Production Signal Kanban Production Capacity versus Changeover Time Determining Production Lot Size Reorder Trigger Point Working With Out Work Orders Labor and Material Accuracy Work Order Back Flushing Cycle Count Inventory Material Management Raw Material Inventory Management Loading the PFEP What Data to Input First Equations Used with PFEP Planning Minimum Inventory Levels Value of Frequent Deliveries Quantity of Containers Required Material Reorder Points Updating and Editing the PFEP Creating the Raw Material Market Organizing the Warehouse Layout of the Supermarket Creating the Supermarket How do I Expedite Parts? Timed Delivery Routes Basic Material Handling Information Creating Your Timed Delivery Routes Point-of-Use Rack Design Pull Signal Material Coupled versus Decoupled Routes (What's the Difference)? Determining the Number of Pull Signals Kanban-in-the-Loop Sustaining the Material Handling System Supplier Replenishment to Your Warehouse Getting Started Finished Goods Replacement Tying in Finished Goods Warehouse to the Production Floor Packaging Schedule Board How to Use the Packaging Schedule Board Sequence of Operation Standardized Problem-Solving Method Problem Solving Recognize You Have a Problem Elevate to the Next Higher Level Evaluate the Severity of the Problem Control the Expansion of the Problem Containing the Problem Preventing a Recurrence Inspect Every Job Mistake-Proofing Where Do You Start Error-Proofing? General Inspection 100% Inspection Error-Proofing Devices Immediate Feedback Statistical Process Control and Mistake-Proofing Working with Suppliers and Partners Introduction Looking for Suppliers Seven Characteristics of Supplier-Customer Partnering Outsourcing Products Group Suppliers by Capability Lean Accounting Show me the Money Performance Goals Box Scores What You Get For Your Effort Profit and Loss (Income) Statements Cash-to-Cash Cycle Calculate Cash-to-Cash Cycle Achieving a Higher Level of Lean Culture Change: Learning to Stop and Fix the Problem Changing the Culture Change Key Ingredients to Cultural Change Team Leader and Stopping the Production Line Creating a Culture that will Stop and Fix Problems (Get Out of Fire Fighting) Using Metrics to Track Change To Change a Culture, Change a Behavior Final Thoughts What have we Learned Sustaining Lean Conversion The Human Factor Goals and Measurements Rewards Help Where do you Find People with Lean Business Knowledge? Conclusion Glossary References Index