How to Implement Lean Manufacturing

335 Pages·2009·1.56 MB·English

by  Wilson, Lonnie.

How to Implement
Lean Manufacturing
About the Author
LONNIE WILSON has been teaching and implementing
Lean techniques for more than 39 years. His experience
spans 20 years with an international oil company
where he held a number of management positions. In
1990 he founded Quality Consultants which teaches
and applies Lean techniques to small entrepreneurs
and Fortune 500 firms, principally in the United States,
Mexico, and Canada.
How to Implement
Lean Manufacturing
Lonnie Wilson
New York Chicago San Francisco
Lisbon London Madrid Mexico City
Milan New Delhi San Juan
Seoul Singapore Sydney Toronto
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Contents
Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix
Acknowledgments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xv
1 What Is the Perspective of This Book? . . . . . . . . . . . . . . . . . . . . . . . . . 1
From a Practical Perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
From an Engineering Viewpoint without Much Cultural Advice . . . 1
This Book Has a “How to” Perspective . . . . . . . . . . . . . . . . . . . . . . . . . . 7
And to Those in Manufacturing Who Seek Huge Gains . . . . . . . . . . . 8
Chapter Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
2 Lean Manufacturing and the Toyota Production System . . . . . . . . . 9
The Popular Defi nition of Lean . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
What Is Lean? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
What Did Ohno Say about the Toyota Production System? . . . . . . . . 10
The TPS and Lean Manufacturing Defi ned . . . . . . . . . . . . . . . . . . . . . . 10
Who Developed the TPS? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
The Two Pillars of the TPS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
What Is Really Different about the TPS? . . . . . . . . . . . . . . . . . . . . . . . . . 12
The Behavioral Defi nition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
The Business Defi nition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Several Revolutionary Concepts in the TPS . . . . . . . . . . . . . . . . . . . . . . 22
The TPS Is Not a Complete Manufacturing System . . . . . . . . . . . . . . . 26
A Critical and Comparative Analysis of Various Philosophies . . . . . . 28
Where Lean Will Not Work… or Not Work Quite so Well . . . . . . . . . . 32
Chapter Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
3 Inventory and Variation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Just Why Do I Have and Why Do I Need the Inventory? . . . . . . . . . . 42
What Is So Bad about Inventory? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
About Variation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Buffers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Kanban . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Kanban Calculations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Finished Goods Inventory Calculations . . . . . . . . . . . . . . . . . . . . . . . . . 52
Kanban Calculations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Make-to-Stock versus Make-to-Order Production Systems . . . . . . . . . 56
Chapter Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
4 Lean Manufacturing Simplifi ed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
The Philosophy and Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
v
vi Contents
The Foundation of Quality Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
Quantity Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
Chapter Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
5 The Signifi cance of Lead Time . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
Some History of Lead Time . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
Benefi ts of Lead-Time Reductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
Excalibur Machine Shop, Lead-Time Reductions . . . . . . . . . . . . . . . . . 75
Techniques to Reduce Lead Times . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
Chapter Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
6 How to Do Lean—Cultural Change Fundamentals . . . . . . . . . . . . . . 87
Three Fundamental Issues of Cultural Change . . . . . . . . . . . . . . . . . . . 87
Some Cultural Aspects of a Lean Implementation Worthy of
Further Thought . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
Chapter Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
Appendix A—Problem Solving and Standardization: How Are
They Similar? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
7 How to Do Lean—The Four Strategies to Becoming Lean . . . . . . . . 111
Overview of the Lean Implementation Strategies . . . . . . . . . . . . . . . . . 111
Implementing Lean Strategies on the Production Line . . . . . . . . . . . . 112
Chapter Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118
Appendix A—The Takt Calculation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118
Appendix B—The Basic Time Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121
Appendix C—The Balancing Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
Appendix D—The Spaghetti Diagram . . . . . . . . . . . . . . . . . . . . . . . . . . 127
Appendix E—Value Stream Mapping . . . . . . . . . . . . . . . . . . . . . . . . . . . 128
8 How to Implement Lean—The Prescription for the Lean Project . . . 135
An Overview on How to Implement Lean . . . . . . . . . . . . . . . . . . . . . . . 135
A Key Question to the Implementation . . . . . . . . . . . . . . . . . . . . . . . . . 136
Step 1: Assess the Three Fundamental Issues to Cultural Change . . . 138
Step 2: Complete a Systemwide Evaluation of the Present State . . . . 139
Step 3: Perform an Educational Evaluation . . . . . . . . . . . . . . . . . . . . . . 144
Step 4: Document the Current Condition . . . . . . . . . . . . . . . . . . . . . . . . 146
Step 5: Redesign to Reduce Wastes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146
Step 6: Evaluate and Determine the Goals for This Line . . . . . . . . . . . 146
Step 7: Implement the Kaizen Activities . . . . . . . . . . . . . . . . . . . . . . . . . 146
Step 8: Evaluate the Newly Formed Present State, Stress the System,
Then Return to Step 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147
Lean Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147
What to Do with the Plan? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148
Chapter Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148
Appendix A—The Second Commitment Evaluation of
Management Commitment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
9 Planning and Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153
Some Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153
Contents vii
Hoshin–Kanri Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155
Why Are Goals and Goal Deployment So Important? . . . . . . . . . . . . . 155
Policy Deployment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156
Leadership in Goal Development, Deployment, and Determining
What “Should Be” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160
Chapter Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162
10 Sustaining the Gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
Why Is It So Important? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
How Do We Know There Is a Loss? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165
What Is Process Gain? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173
Chapter Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178
11 Cultures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179
Background Information on Cultures . . . . . . . . . . . . . . . . . . . . . . . . . . . 179
The Toyota Production System and Its Culture . . . . . . . . . . . . . . . . . . . 185
What Should We Do with Our Lean Culture? . . . . . . . . . . . . . . . . . . . . 187
Chapter Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188
12 Constraint Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189
Bottleneck Theory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189
Chapter Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194
13 Cellular Manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195
Cellular Manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195
The Gamma Line Redesign to Cellular Manufacturing . . . . . . . . . . . . 197
Chapter Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209
14 The Story of the Alpha Line . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211
How I Got Involved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211
Initial Efforts to Implement Cultural Change . . . . . . . . . . . . . . . . . . . . 211
Some of the Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214
Continuous Improvement, as It Should Be . . . . . . . . . . . . . . . . . . . . . . . 215
The Cool Story of SPC: SPC Done Right! . . . . . . . . . . . . . . . . . . . . . . . . 215
How Did the Alpha Line Management Team Handle the
Fundamentals of Cultural Change? . . . . . . . . . . . . . . . . . . . . . . . . . . 218
Chapter Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219
15 The Story of the Bravo Line: A Tale of Reduced Lead Times
and Lots of Early Gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221
Background Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221
Implementing the Prescription . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 222
The Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227
Chapter Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233
16 Using the Prescription—Three Case Studies . . . . . . . . . . . . . . . . . . . . 235
Why These Case Studies? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235
Lean Preparation Done Well: The Story of Larana Manufacturing . . . 236
viii Contents
The Zeta Cell: A Great Example of Applying the Four Strategies
to Reduce Waste and Achieve Huge Early Gains . . . . . . . . . . . . . . . 244
The Case of the QED Motors Company: Another Great Example
of Huge Early Gains on an Entire Value Stream . . . . . . . . . . . . . . . . 254
Applying the Second Prescription at QED Motors—How to
Implement Lean . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259
17 The Precursors to Lean Not Handled Well . . . . . . . . . . . . . . . . . . . . . . 273
Background to the ABC Widgets Story . . . . . . . . . . . . . . . . . . . . . . . . . . 273
We Analyze the Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 274
Summary of Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280
How Did the Management Team from ABC Widgets Handle
the Fundamentals of Cultural Change? . . . . . . . . . . . . . . . . . . . . . . . 281
The Real Message . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 282
Chapter Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 282
18 An Experiment in Variation, Dependent Events, and Inventory . . . 285
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 285
The Experiment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 286
19 Assessment Tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 291
The Five Tests of Management Commitment to
Lean Manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 291
The Ten Most Common Reasons Lean Initiatives Fail
(in Part or Totally) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 292
The Five Precursors to Implementing a Lean Initiative . . . . . . . . . . . . 292
Process Maturity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 295
20 A House of Lean . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 299
Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 301
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 309
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 311
Preface
Why I Am Writing This Book
I am writing this book for several reasons.
First, I have been asked to. On numerous occasions, clients have asked me to write
a book. The first time was on the subject of measurement system analysis (MSA); the
second on statistical process control (SPC); the third time on statistical problem
solving—and in the past five years I have been asked on no less than three occasions to
condense my thoughts on Lean Manufacturing into book form. Writing a book is also
somethingI have wanted to do, but just never had the time to do so. However, in the
end, it was other reasons (which I later list in this chapter) that drove me to the effort.
Second, I am very tired of seeing managers
everywhere looking for this “silver bullet” called Lean “I
Manufacturing. They see it as a catch-all for attacking n the choice between
all their business woes—including poor profitability changing one’s mind and prov-
and low levels of competitiveness—and transforming
ing there’s no reason to do so,
their business into the pinnacle of profitability. I want
most people get busy on the
to stand up and yell at the top of my lungs and make ”
proof.
it very clear that there is no silver bullet. In this regard,
John Kenneth Galbraith
I now offer up three quotes here.
Third, as a consultant I frequently find myself
quite frustrated in being unable to sell Lean “M
Manufacturing to a facility that desperately needs it. en stumble over the
Maybe this book can put my thoughts into a clear truth from time to time, but
and convincing format that I am unable to otherwise most pick themselves up and
convey. hurry off as if nothing hap-
Perhaps I get particularly frustrated because I pened.”
embody a tough combination of characteristics. For
Sir Winston Churchill
instance, I am reasonably talented in what I do, which
sadly helps me less than you would think when it
“O
comes to selling the concept of Lean Manufacturing.
pportunity is missed
In addition, I am burdened with a high degree of
by most people because it is
frankness. And finally, I am one of the world’s worst
dressed in overalls and looks
salesmen. I laughingly tell people I could not sell free
”
water to millionaires dying of thirst in the desert. like work.
Maybe I’m not that bad—but when it comes to selling Thomas Edison
things, both physical and ideological, I have a lot of
ix