Leanmanufacturing English 120308114821 Phpapp02

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Mekong Capital

Introduction toLean Manufacturing for Vietnam

4 June 2004

Note: This report by Mekong Capital is a general introduction to Lean Manufacturing (lean!" LeanManufacturing is a group of methods# $hich are being increasingly implemented around the $orld#that aim to eliminate $aste and inefficiency from the manufacturing process# leading to lo$er costsand greater competiti%eness for manufacturers" In a recent sur%ey# appro&imately ') of *"+"based manufacturing companies ha%e implemented lean or are in the process of implementing

lean," +ome of the changes re-uired by Lean Manufacturing can be disrupti%e if not implemented

correctly and some aspects of Lean Manufacturing are not appropriate for all companies"

," .hat is Lean Manufacturing/ 0

1.1 Objectives of Lean Manufacturing 2

1.2 Key Principles of Lean Manufacturing 3

1.3 istory of Lean Manufacturing 3

1.4 Key i!plications of Lean Manufacturing 3

1." #$at %in&s of co!panies benefit !ost fro! lean' 4

0" Lean Manufacturing Concepts 1

2.1 (alue )reation an& #aste "

2.2 Main Kin&s of #aste "

2.3 Pull Pro&uction *

2.4 +ifferent !o&els of Pull Pro&uction ,

2." #$y $ig$ levels of inventory increase &efects an& -astage ,

2.* !pact of Pull/Pro&uction on Pro&uction Planning

2., )ontinuous lo-

2. Miing )ontinuous an& +iscontinuous lo-

2.)ontinuous !prove!ent Kai5en

2.10 #or%er nvolve!ent

2.11 )ellular Layout 10

2.12 6&!inistrative Lean 11

'" Lean Manufacturing Tools 2 Methodologies ,0

3.1 7tan&ar& #or% 12

3.2 )o!!unication of 7tan&ar& #or% to e!ployees 12

3.3 7tan&ar& -or% an& fleibility 12

3.4 (isual Manage!ent 13

3." 8uality an& t$e 7ource 9or :+o t ;ig$t t$e irst 13

3.* (alue 7trea! Mapping 14

3.,


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1" 5econciling Lean $ith other systems ,6

".1


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1. #$at is Lean Manufacturing'

1.1 Objectives of Lean ManufacturingLean ManufacturingF also calle& Lean Pro&uctionF is a set of tools an& !et$o&ologies t$at ai!s for t$e

continuous eli!ination of all -aste in t$e pro&uction process. G

5. *tili8ation of e-uipment and space / Cse eBuip!ent an& !anufacturing space !ore efficiently

by eli!inating bottlenec%s an& !ai!i5ing t$e rate of pro&uction t$oug$ eisting eBuip!entF -$ile!ini!i5ing !ac$ine &o-nti!eG

6. 9le&ibility / ave t$e ability to pro&uce a !ore fleible range of pro&ucts -it$ !ini!u!

c$angeover costs an& c$angeover ti!e.

7. utput H nsofar as re&uce& cycle ti!esF increase& labor pro&uctivity an& eli!ination ofbottlenec%s

an& !ac$ine &o-nti!e can be ac$ieve&F co!panies can generally significantly increase& outputfro! t$eir eisting facilities.

Most of t$ese benefits lea& to lo-er unit pro&uction costs H for ea!pleF !ore effective use ofeBuip!ent an& space lea&s to lo-er &epreciation costs per unit pro&uce&F !ore effective use of laborresults in lo-er labor costs per unit pro&uce& an& lo-er &efects lea& to lo-er cost of goo&s sol&.

n a 2004 survey by n&ustry #ee% Maga5ineF C.7. co!panies i!ple!enting lean !anufacturing

reporte& a !e&ian savings of ,I of )ost of oo&s 7ol& 9)O7> as a result of i!ple!enting lean2. #e

believe t$at t$e savings !any actually be $ig$er for co!panies in (ietna! consi&ering t$e $ig$er levelsof -aste -$ic$ t$ey typically $ave co!pare& to C.7. base& !anufacturers.

6not$er -ay of loo%ing at Lean Manufacturing is t$at it ai!s to ac$ieve t$e sa!e output -it$ less inputsH less ti!eF less spaceF less $u!an effortF less !ac$ineryF less !aterialsF less costs.

#$en a C.7. eBuip!ent !anufacturing co!panyF Lantec$F co!plete& t$e i!ple!entation of lean in1"F t$ey reporte& t$e follo-ing i!prove!ents co!pare& to t$eir batc$/base& syste! in 11

3D

1 Manufacturing space per !ac$ine -as re&uce& by 4"IG

2 +efects -ere re&uce& by 0I

3 Pro&uction cycle ti!e -as re&uce& fro! 1* -ee%s to 14 $ours / " &aysG an&

4 Pro&uct &elivery lea& ti!e -as re&uce& fro! 4/20 -ee%s to 1/4 -ee%s.

2$ttpD---.in&ustry-ee%.co!)urrent6rticlesasparticles.asp'6rticle+E1"

3 Ja!es P. #o!ac% +aniel


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1.2 Key Principles of Lean ManufacturingKey principles be$in& Lean Manufacturing can be su!!ari5e& as follo-sD

1. 5ecognition of $aste H


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20


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in/progress into -or%s/in/progress storage areas pro&uction stage to t$e netbefore being retrieve& by netpro&uction stage

Pro&uction cycle


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2. Lean Manufacturing )oncepts

2.1 (alue )reation an& #asten Lean ManufacturingF t$e %alueof a pro&uct is &efine& solely base& on -$at t$e custo!er actually

reBuires an& is -illing to pay for. Pro&uction operations can be groupe& into follo-ing t$ree types ofactivitiesD

Value


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orreproces

singFis-$enso!et

$ing$astobere/&

onebecauseit-as

n?t&onecorrectlyt$

efirstti!e.

no$ledg

e7isconnection H


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infor!ationor

%no-le&geisn?tavai

lable-$ereor-$en

itisnee&e&..


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infor

!atio

n on

t$is.

2. ;

rod

uctispulledthrou

ghproductionbas

edondemandfrom

do$nstreamproc

ess/Aac

$pro&uctionstage or-or%stationis seen as acusto!er oft$epro&uctionstage or-or%station

i!!e&iately upstrea!of it.ot$ing ispro&uce&by t$eupstrea!supplieruntil&e!an&e&by t$e&o-nstrea!custo!er.

3. 5ate of

productionis dri%enbydo$nstreamconsumption rates H


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stage>eactly

-$ent$ecusto!

er 9&o-nstrea!stage> nee&st$e!.


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ea!pleF if it ta%es t$e supplier 2 $ours to &eliver !aterials -$en or&ere& by t$e custo!erF t$ecusto!er -ill $ave to or&er a$ea& by 2 $ours so t$at t$e !aterials -ill be rea&y -$en t$e custo!ernee&s it.

2.4 +ifferent !o&els of Pull Pro&uction

Many lean !anufacturers intentionally !aintain certain inventories of ra- !aterialsF se!i/finis$e&pro&ucts an& finis$e& pro&ucts in or&er toD

1 protect against variations in custo!er &e!an&G

2 protect against unepecte& late s$ip!ents fro! suppliers or pro&uction slo- &o-nsG

3 s!oot$ pro&uction flo- by pro&ucing so!e ite!s on a continuous basis even if not reBuire& by t$e

custo!erG

4 acco!!o&ate t$e fact t$at ra- !aterials !ust be &elivere& in batc$es an& t$at finis$e& pro&ucts

!ust be s$ippe& in batc$esG

5 acco!!o&ate t$e fact t$at so!e processing !ust be &one in batc$es &ue to t$e nature of t$e

eBuip!ent or t$e process.

enerally spea%ingF t$e less pre&icable custo!er or&ersF t$e !ore unstable pro&uction 9suc$ asunintentional slo-&o-ns an& bottlenec%s>F or t$e less reliable t$e ra- !aterials suppliersF t$e greatert$e inventory t$at -ill be reBuire& to buffer against su&&en c$anges in custo!er &e!an&F pro&uctioninstability or ra- !aterials s$ortages. n suc$ casesF lean !anufacturers intentionally !aintaininventories of ra- !aterialsF se!i/finis$e& pro&ucts or finis$e& pro&ucts to buffer against suc$ events.

n or&er to acco!!o&ate t$ese situationsF t$ere are &ifferent !o&els for i!ple!enting pull base&pro&uctionF inclu&ing t$e follo-ingD

1. 5eplenishment ;ull +ystem H n a replenis$!ent pull syste!F t$e co!pany intentionally

!aintains inventories of eac$ type of finis$e& pro&uct an& only -$en t$e inventory of a certainfinis$e& pro&uct falls belo- a certain level a replenis$!ent or&er is issue& to pro&uce !ore of t$epro&uct. ;eplenis$!ent pull is !ore co!!on -$en a co!pany $as a large nu!ber of s!all volu!ecusto!ers -$o or&er stan&ar&i5e& pro&ucts. n a replenis$!ent pull syste!F pro&uction sc$e&ulesare !ore pre&icable so lo- inventories of ra- !aterials are reBuire&.

2. +e-uential ;ull +ystem H n a seBuential pull syste!F or&ers are place& on t$e factory floor only

-$en &e!an&e& by an outsi&e custo!er. 6ll pro&ucts are !a&e on a !a&e/to/or&er basis.7eBuential pull is !ore co!!on -$en a co!pany $as a s!all nu!ber of large volu!e custo!ers-$o or&er custo!i5e& pro&ucts. 6lt$oug$ co!panies using t$is syste! s$oul& $ave lo-erinventories of finis$e& pro&uctsF t$ey -ill typically reBuire larger inventories of ra- !aterials orse!i/finis$e& !aterials &ue to less pre&ictability in t$e pro&uction sc$e&ule 9&ue to &ifficultypre&icting eactly -$at custo!er or&ers -ill be place& an& -$en>.

3. Mi&ed ;ull +ystem H n a !ie& pull syste!F certain ele!ents of replenis$!ent an& seBuential

pull syste!s are use& in conjunction -it$ eac$ ot$er.

or ea!pleF a co!pany !ay pro&uce so!e pro&ucts on a replenis$!ent pull basis -$ile pro&ucing

ot$er pro&ucts on a seBuential pull basis.

6lternativelyF a co!pany !ay use replenis$!ent pull for part of t$e pro&uction process an&seBuential pull for a &ifferent part of t$e pro&uction process. 6n ea!ple of t$is -oul& be aco!pany t$at !aintains a !anage& level of inventory of certain se!i/finis$e& ite!s but onlypro&uces a finis$e& pro&uct -$en or&ere& by t$e custo!er. n suc$ a caseF t$e co!pany applies areplenis$!ent pull syste! for pro&ucing t$e se!i/finis$e& ite!s an& applies a seBuential pullprocess for t$e re!ain&er of t$e pro&uction process. n t$e


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bagprintingprocess ist$reet$ousan&pieces at ati!ebeforegoingtot$enet-or%station an&t$eBualitycontroller&oesn?ti&entify t$e&efectF it isli%elyt$at!any

&efectivebags-ill$avebeenpro&uce&before t$eerrors are&iscovere&

byt$enet-or%station.

2. 7

efects

and$ast

age fromstorageandtransportation / so!e&efectsoccur&uring

transportation an&storage. orea!pleF int$efurniturein&ustryeposure to$u!i&ity&uringstorage cancontributeto $ig$!oisture

content-$ic$ !aybeconsi&ere&a &efect.Mean-$ileFt$e act ofstoringinventoryreBuiresetra laborFenergy an&space.

3. 7irect

accountability / -$ent$ere is aninventoryBueuebet-eent-opro&uctionstagesFt$ere is no&irectconnectionbet-eent$e t-opro&uctionstages.


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to!a%ea&efe

ctivepro&uctornot

pro&uceeactlyto

custo!erspecifica

tions.)onverselyFa&i

rect$an&

off an&i!!e&iateusage byt$e&o-nstrea!-or%ertea! -ill $elpensure t$att$e

upstrea!-or%ertea! ta%es fullresponsibility to onlypro&uceite!s -$ic$-ill beaccepte& byt$e&o-nstrea!-or%ertea!.

o-everF as!entione& int$e previoussectionF t$ereare so!e casesinventory isessential forensurings!oot$pro&uction an&t$ereforecertain %in&s ofinventory

s$oul& be!aintaine& at a!anage& levelto ensure t$atno &isruptionoccurs.

2.6 !pact ofPull/Pro&uctionon

Pro&uctionPlanningMost private!anufacturingco!panies in(ietna! areusing acentrallyplanne& syste!-$ereby t$ePro&uctionPlanningManager

&evelops apro&uctionsc$e&ule an&allocates or&ersto -or%stationsin batc$es.


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!eaningt$at

inventorygetspus

$e&t$oug$t$epr

o&uctionprocessb

ase&ont$epro&u

ctionsc$e

&ule. !o&ule of !ostAnterprise;esourcePlanning 9A;P>syste!soperates on

t$is basis.

n a pus$/base& syste!Fif t$epro&uctionforecastingsyste!s is notaccurate 9-$ic$is often t$ecase for(ietna!ese!anufacturingco!panies> or

t$e Pro&uctionPlanningManager&oesn?t $aveperfectinfor!ationaboutpro&uctionstatus an&&e!an& at eac$stage of t$epro&uctionprocess or&oesn?t $ave

effective toolsfor analy5ingt$is 9-$ic$ isalso often t$ecase at(ietna!ese!anufacturingco!panies>F$es$e !ayallocate too!uc$ or toolittle -or% to&ifferent tea!san&

-or%stationsFt$erebyresulting inbottlenec%sFecessinventoryF lo-li%eli$oo& ofbeing able topro&uce on acontinuous flo-basisF an&inefficient useof resources ingeneral.

n contrastF a%ey ele!ent oft$e pull/base&syste! is t$atF-it$ t$eeception of


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pro&uctionlev

elingFt$eallocation

an&flo-of-or%on

t$efactoryflooris

&eter!ine&base&

on&e!an

& on t$e factoryfloor an& notbase& on apro&uctionsc$e&ule orcentrallyplanne&pro&uctionallocationsyste!.

6lt$oug$ lean!anufacturingco!panies still$ave apro&uctionplanF t$e plan ispri!arily use&for t$efollo-ingD

1 planning

capacityreBuire!entsF inclu&ingc$anges tot$econfiguration ofpro&uctionlines orcellsG

2 planning

laborreBuire!entsG

3 s!oot$ing

t$e flo- of

or&ers tot$e factoryfloor 9seesection3.14 onPro&uctionleveling>Gan&

4 9in so!e

cases>planningra-!aterials

reBuire!ents.

2.7 )ontinuouslo-)ontinuous flo-is t$e lin%ing of!anual an&!ac$ineoperations intoa perfectlys!oot$ flo- in-$ic$ -or%s/in/progress arecontinuouslyun&ergoingso!e for! ofprocessing an&never beco!estagnant
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-aitingtobep

rocesse&.)ontin

uousflo-eli!inate

s-aitingti!efo

r -or%s/in/progressFeBuip!ent or-or%ers.

n )ontinuouslo-F t$e i&ealis one/pieceflo- or s!allbatc$es -$ic$

can beprocesse& -it$virtually no-aiting ti!ebet-eenpro&uctionstages.

)ontinuouslo- !ayreBuire are&esign of t$epro&uctionlayout a-ay

fro! groups ofsi!ilar-or%stationslocate& neareac$ ot$er an&to-ar&s $ig$lyintegrate&pro&uction linesin -$ic$ se!i/finis$e&pro&ucts can!ove asBuic%ly an&easily as

possible fro!one pro&uctionstage to t$enet.

)ontinuous flo-can result invery substantialre&uctions intotal cycle ti!e.or ea!pleD

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Manufacturing

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1 #$en7i!!sis$ingPro&uctsFaC.7.

base&!anufacturerofg

ar!entsuse&byfis$er!enFi!ple!ente&Lean

Manufacturin

gF t$eirpro&uctiont$roug$out9i.e. t$etotal ti!efro! t$estart to t$efinis$ of t$epro&uctionprocess> fell

fro! 1,&ays to 2/3

&ays10 .

2 #$en

#oo&lan&

urniture

)o!panyF a

C.7. base&

!anufacture

r of $ig$/

en& -oo&

furnitureF

i!ple!ente

& lean!anufacturi

ngF lea&

ti!es -ere

re&uce&

fro! 12

-ee%s to 1

-ee%11.

2.8 Miing)ontinuousan&+iscontinuous lo-7o!eti!escontinuous flo-isn?t possiblefor so!e stagesof t$epro&uctionprocess. nt$ese casesFcontinuous flo-can bei!ple!ente& inso!e but notall of t$epro&uctionstages. 7o!eea!ples ofcases in -$ic$continuous flo-is notappropriate forso!e stages oft$e processinclu&eD

1 )ycle ti!e

!is!atc$esin -$ic$so!eprocessesoccur atvery fastcycle ti!esan& !ust
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c$angeover

toserve!ultiplepr

o&ucttypes.

2 +

istancebet-eenprocesses!aybeunavoi&ableinso

!e casesan& !ay!ean t$attransportation of !aterials!ust be&one inrelativelylarge

batc$es.3 7o!e

processesare toounreliablean&t$erefore$aveunpre&ictable yiel&s-$ic$ canbe&isruptive toa continuousflo-operation.

4 7o!e

processes!ust be&one inlargebatc$es. orea!pleFKiln &ryingof -oo& is&one inbatc$es

-$ic$!eans t$at-$en -oo&co!es outof t$atprocessF it-ill li%elynee& to bestore& asinventoryfor a leastso!e ti!ebecause itcan not all

beprocesse& atonce.

5 7o!eti!est$e use ofscrap s$oul&be!aintaine&as inventoryfor futureuse in or&erto !ai!i5eyiel&s. orea!pleFso!e scrap

-$ic$ isgenerate& in-oo&/cuttingstages canbe re/use&at a laterti!e -$en


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t$ereisareBui

re!entforapieceof-oo&-it$t$e&i!ension

soft$escrap.

but any suc$c$anges arereBuire& to!eet certainreBuire!ents.or ea!pleF at


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outco!e1

4

..


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sinceitis&ifficul

ttoconnectt$ose

toacontinuousflo

--$ic$$appensina

cell.ur

nitureco!paniestypicallyi!ple!entcellular layoutfor so!ecuttingFasse!bly an&finis$ing stagesbut not for any

%iln &rying orpaint &ryingstages.

6 case stu&y oni!ple!enting acellularpro&uctionlayout for aseries of inter!e&iatepro&uctionprocesses atran%lin )orp.F

a C.7.!anufacturer ofup$olstere&furnitureF isavailable $ereD$ttpD---.if!!.!sstate.e&u&ouble&.p&f.


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)ellularlayoutsarenotappropriateforallco!

paniesan&!anyco

!paniessuccessful

lyi!ple!en

t LeanManufacturing-it$outi!ple!entingcellular layouts.or ea!pleFso!e in&ustriesreBuire large

batc$processing &ueto t$e nature oft$e eBuip!entor significant-aiting ti!esbet-eenpro&uctionstages

an& t$erefore

t$ese -oul& not

be suitable for

cellular layouts.

Please also seesection 3.11 on

@atc$ si5e

re&uction.

2.126&!inistrativeLean

6&!inistrativelean is t$eapplication oflean!anufacturingconcepts an&tools toi!provea&!inistrativeprocesses ot$ert$an factoryfloorpro&uction.


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p rocesses.

Me%ong

)apital?sntro&uction to

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Manufacturing

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3. Lean Manufacturing !eans t$at pro&uction processes

an& gui&elines are very clearly &efine& an& co!!unicate&F in a $ig$ level of &etailF so as to eli!inatevariation an& incorrect assu!ptions in t$e -ay t$at -or% is perfor!e&.


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incorporateongoingprocessi!prove!ents

.nfactFco!panie

sareencourage&

to!ai!i5e

t$e rate of processi!prove!ent-$ic$ !eanst$at t$estan&ar& -or%gui&elines areli%ely to c$ange

freBuently.6lsoF stan&ar&-or% typicallyinclu&es cleargui&elines for-or%ers to$an&le unusualsituationsFt$erebye!po-eringt$e! torespon& infleible -ays tounusual

situations.

n or&er toi!ple!ent t$issuccessfullyFresponsibilitys$oul& beclearly&elegate& forpreparing an&&istributing t$enecessary&ocu!entationan& visual ai&sF

as -ell asensuring t$atany c$angesare clearlyco!!unicate&to e!ployeesby t$eirsupervisors. 6slong as t$isresponsibility isclearly&elegate&F t$estan&ar& -or%proce&ures can

be !o&ifie&freBuently. nfactF lean!anufacturingco!panies suc$as


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&e!an&s.

4 (isualManage!ent

(isualManage!entsyste!senablefactory-or%erstobe-ellinfor!e&about

pro&uctionproce&uresFstatus an&ot$er i!portantinfor!ation fort$e! to &ot$eir jobs aseffectively aspossible. Largevisual &isplays

are generally!uc$ !oreeffective !eansofco!!unicationto -or%ers ont$e factory floort$an -rittenreports an&gui&elines an&t$erefores$oul& be use&as !uc$ aspossible. #$en

it co!es toi!provingco!pliance -it$a processFvisualpresentation$elps t$e tea!betterun&erstan& aco!plicate&processinclu&ing t$ecorrectseBuence of

eventsF t$ecorrect -ay toperfor! eac$actionF internalan& eternalrelations$ipsbet-eenactionsF an&ot$er factors.


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&efectrateF!o

nt$/to/&ates$ip

pingvolu!estatusFe

tc.

2. V

isualControlsHn&icatorsinten&e&tocon

trol orsignalactions togroup!e!bers.


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;ig$t t$eirst

8ual

ityatt$e7ourceFal

socalle&:+ot;ig$t

t$eirst


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sourceinspect

ionsFt$eBualityinsp

ectors&on?tinspectfo

r&efectst$e!selve

sFbutinspectfort$e

causesof

&efects. orea!pleFt$ey !ayinspect ifstan&ar&processesare being&onecorrectly by-or%ersF or

in a case-$ere&efects$aveoccurre&Ft$ey !ayberesponsiblefori&entifying-$at -ast$e sourceof t$ose&efects.

ro! t$isperspectiveF t$epri!ary jobof a Bualitycontroltea! is totroubles$oot t$e rootcause of &efectsFi!ple!entpreventive!easures

an& provi&etraining to-or%ers toensure t$e&efects &onot reoccur.

3. Clear

accountabilityamong$orkers Hn LeanManufacturingF unlesst$ere is anintentionalinventory ofse!i/finis$e&pro&uctsFt$ere is a&irect$an&offbet-eeneac$upstrea!

stage an&&o-nstrea! stageF!eaningt$at t$e-or%ers ateac$upstrea!


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stagearefully

responsiblefor

t$e Bualityof t$e!aterialst$ey &eliverto t$e&o-nstrea! stagean& -ill be$el&personally

accountablefor any&efects. Ont$e ot$er$an&F if t$ere is alarge bufferof inventorybet-eent-o

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pro&uction stagesF t$e -or%ers at t$e upstrea! process are less li%ely to feel personally accountablefor any &efects.

4. ;oka ?oke H 7i!ple !et$o&s for in/line Buality testing 9not just visual inspection>F so!eti!es

referre& to as :Po%a o%e=F are i!ple!ente& so t$at &efective !aterials &o not get passe& t$roug$t$e pro&uction process. n Po%a/o%eF 100I of t$e units are teste& as part of t$e pro&uction

process. .

5. Intentional shutdo$ns H #$en &efects are generate&F pro&uction is s$ut &o-n until t$e source of

t$e &efect can be solve&.


44/61



45/61

Mekong Capital

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3.9


46/61

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