Lean Manufacturing
Lean Manufacturing is manufacturing without waste. Waste has many forms. Material, time, idle equipment and inventory are examples of waste. Lean Manufacturers analyze all aspects of their business to reduce waste and add value by:

• Reducing Material and Labor Costs
• Reducing Working Capital
• Reducing Stagnant Inventories
• Reducing Customer Lead Times
• Achieving maximum ROI

Inventory

Inventory is one of the biggest assets on your company’s balance sheet. Inventory determines Return On Investment (ROI) and other financial performance. But carrying stock is expensive. Inventory uses capital, requires large warehouses and valuable floor space, increases material handling costs and large stocks require massive computer systems for tracking and control.

Most companies measure inventory in “turns.” Reducing the stock of idle inventory and improving “turns” releases cash and encourages higher production accuracy. The best way to reduce inventory is to improve processes, facilities, quality, scheduling and setups.

Disciplines of Lean Manufacturing

Techniques to identify and eliminate waste have evolved into Lean Manufacturing but most waste is invisible to those closest to it. Remember the last time you proof-read something and were certain that it was without errors, only to give it to someone else who immediately found an obvious mistake. Lean Manufacturers involve staff to rethink all stages of the manufacturing process to find those obvious mistakes.

There are many forms of lean manufacturing and many avenues to further your knowledge base, from one-day seminars to certification programs, but some of the basics are:

Value Stream Mapping

Manufacturers analyze each step of the manufacturing process to determine which steps are cost-effective and add value, then eliminate non-value added activities. This works well when the employees are given a voice in what steps of the process work well and which are extraneous, this includes analysis of:

Quality Control
Assuring that products are manufactured right the first time reduces labor and materials costs for replacements and returns.

Production Control
Assuring products are manufactured with the most effective use of machinery, material and labor.

Material Yield System
Assure that inventory is kept to minimum, necessary stock is at hand and utilization of scrap is maximized.

Machine Management And Maintenance
Assuring that equipment is regularly maintained to reduce accidents, breakdowns and wear.

Safety Controls
Assuring that equipment and staff maintain and are trained in accident avoidance to reduce accidents and downtime.

Rapid Setup
Easy setups encourage small lots, higher turnover: inventory comes down and scheduling is easier.

Cellular Manufacturing
Workcells or Cellular Manufacturing increase productivity and quality. Cellular manufacturing can be as basic as moving equipment around the shop floor so it is more convenient for employees to utilize without downtime, or to developing Workcells.
A workcell is a group that manufactures a narrow range of products in a grouped area that contains all its necessary equipment and resources. Workstations are often set up together to make one complete product at a time, unlike parts that are set aside for assembly. An obvious reward is that errors are detected quickly because a welded product, for example, won’t sit waiting for the next step. If the welding isn’t right, production is stopped immediately and the error is fixed, enhancing productivity and creating less waste. More benefits include scheduling flexibility, reduced lead-time, decreased inventory and less floor space needed for unassembled parts. Additionally, employees are cross-trained to substitute for each other and work more closely to achieve a completed product rather than a component part.

Team Development
Training for Lean Manufacturing teams should cover many areas: Statistical Process Control, Root Cause Analysis, Team Building and skill enhancement. As a result of training individuals are more competent. Teams work within their groups to cross-train and assist one another, increasing productivity, morale and competency.

Workplace Organization / The 5S’s

The 5S’s are based on the theory that shop floor productivity starts with a workplace that is visually and effectively organized and standardized. 5S focuses on organizing the workplace, keeping it clean and orderly, and maintaining standardized conditions and discipline needed to work efficiently. The five S’s are:

• Sort
• Set in place
• Shine
• Standardize
• Sustain

There are many programs available to learn more about lean manufacturing techniques, including Lean Accounting. Check your local library or the internet for written materials or software, or check schools or consulting firms that can design a program specifically to your manufacturing needs.

Written by Riia O’Donnell, Associate Editor, Plastics Distributor® & Fabricator.