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Lean 101 Lego Widget Factory
Expectations
Welcome to the Lego Widget Flow Factory!
Our goal today:
•run a manufacturing simulation 4 times
•make a simple Lean Manufacturing change on each run
•Measure the results of each change in a ScoreBox
To illustrate some important concepts about Lean Manufacturing.
The waste of batch processing / mass production
Batch Size Reduction
Continuous Flow
Learning to See
Andy Rogish, Performance Management, rogisha@yoder.com, 239-728-2535 x211
1
Lean 101 Lego Widget Factory
Factory Setup
The Operators
Operator 1
The Product
Operator 6
Operator 7
Operator 2
8 Material Handler
Operator 3
The Parameters
9 Quality Inspector
Making Lego Widget
4 Rounds of Production
Operator 4
10 Customer
10 Employees
Production Demand = 12
Operator 5
Andy Rogish, Performance Management, rogisha@yoder.com, 239-728-2535 x211
2
Lean 101 Lego Widget Factory
ScoreBox
KPI Board
Round 1
Round 2
Round 3
Round 4
12
6
1
1 (Kaizen)
Key Performance Indicators Board
m
A
B
C
D
s
Avg Lead Time
Total WIP Inventory
G
m
s
-
m
s
-
-
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
-
% change
Total Finished Units
12
12
12
12
Total Operators
% change
s
#DIV/0!
#DIV/0!
#DIV/0!
m
m
m
s
s
s
Total Elapsed Time
% change
m
F
s
-
% change
m
E
m
s
#DIV/0!
#DIV/0!
#DIV/0!
m
m
m
s
s
s
Total Operator Time (DxE)
#DIV/0!
% change
Productivity (Total people-seconds per piece)
% change
-
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
Lead Time- time it takes to
produce one complete item,
from start to finish. Or, sum of
each operator’s cycle time.
WIP- Work in Process. How
many pieces remain on the
production floor after
customer demand is met?
Total Finished Units- In this
case, Customer Demand.
Total Operators- Number of
people working in the
process.
Total Elapsed Time- Amount
of time from when the first
unit is begun to the time the
last unit is finished and
delivered to the customer.
Total duration.
Total Operator Time- Total Operators(D) x Total Elapsed Time(E). Total amount of manpower
spent on this operation.
Productivity- Total Operator Time(F) / Total Finished Units(C). Total amount of manpower spent per piece (in this case,
converted to people-seconds per piece). Hours per Thousand is a productivity measure, a more Lean measure is Seconds
per Unit.
Andy Rogish, Performance Management, rogisha@yoder.com, 239-728-2535 x211
3
Lean 101 Lego Widget Factory
Round #1
• Rules
– The customer wants 12.
– Produce in batches of 12. Each operator must
finish 12 before passing to the next operator.
– If you finish 12, keep working!
Andy Rogish, Performance Management, rogisha@yoder.com, 239-728-2535 x211
4
Lean 101 Lego Widget Factory
Round #2
• Rules
– The customer wants 12.
– Produce in batches of 6. Each operator must
finish 6 before passing to the next operator.
– If you finish with 12, keep working!
Do you think batch size reduction will make a difference?
Andy Rogish, Performance Management, rogisha@yoder.com, 239-728-2535 x211
5
Lean 101 Lego Widget Factory
“Batch Processing”
Why it made a difference.
Batch
Processing
Operator 1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
mmmmm
mmmmm
Operator 2
mmmmm
Operator 3
mmmmm
Operator 4
Drop a new widget into this process, how long before it finishes?
Continuous
Flow
1
Operator 1
m
Effects of “Batch” Manufacturing
•Long Lead Times
•Excess WIP / Inventory
Operator 2
•Creates Waste (Wait, travel, over-production, etc….)
Operator 3
•Resource Consumption (Handling, floor space, workers)
Operator 4
2
3
4
m
m
m
•Increases Chances for Poor Quality
Does it take longer to go into the downtown heart of large city at rush hour or at 02:00 am?
It is the same distance, and same amount of traffic lights. The difference is the amount of inventory – in terms of cars - on the road!
Andy Rogish, Performance Management, rogisha@yoder.com, 239-728-2535 x211
6
Lean 101 Lego Widget Factory
Batch & Queue Nightmare
The Old Process
meets the
New Process.
One cart of
product moving to
growing (in a
kaizen that
eventually
improved the
process by 40%),
has to wait to get
through because
of batched raw
material narrow
the hall, and a
batch of 12 carts
moving through on
one side, and a
batch of 9 carts
sitting on the other
side.
Andy Rogish, Performance Management, rogisha@yoder.com, 239-728-2535 x211
7
Lean 101 Lego Widget Factory
Round #3
• Rules
– The customer wants 12.
– Produce in batches of 1. Each operator must
finish 1 before passing to the next operator.
– If you finish 12, keep working!
Do you think continuous flow will make a difference?
Andy Rogish, Performance Management, rogisha@yoder.com, 239-728-2535 x211
8
Lean 101 Lego Widget Factory
“Continuous Flow”
Why it made a difference.
Suppose you had to perform the process pictured above:
Which method would be faster?
Batch Processing / Mass Production
Continuous Flow
do as many as you can, build inventory whenever possible
make one - move one

Fold each letter until all the letters are folded

Fold one letter

Stuff each envelope until all the envelopes are stuffed.

Stuff one envelope with the folded letter

Seal each envelope until all the envelopes are sealed

Seal the envelope

Apply stamps until all the stamps are applied

Apply a stamp.

Go to the mail box.

Repeat steps 1-4 for each unit.

Go to the mail box.
OR
Which method would be faster if it was done by 1 person?
Apply the lesson from the Lego Widget Factory – ‘make one – move one’ would be faster.
Which method would be faster if it was done by 3 people?
Making an assembly line of 3 people would merely hide the waste.
Andy Rogish, Performance Management, rogisha@yoder.com, 239-728-2535 x211
9
Lean 101 Lego Widget Factory
Learning to See
• Value
–
–
Does it change the form, fit, or function of the product?
Is the Customer willing to pay for this activity?
• Waste
– Two Forms of Waste
1. Necessary Waste-
activity that adds no value to the
product, but can not be eliminated because of current technology,
culture, or politics.
2. Unnecessary Waste– 8 Characteristics of Waste
can be eliminated
Learning to See means learning to see the flow of activities that create a product,
and the associated value and waste associated with my daily activities.
The goal is to implement continuous, incremental improvement,
always working to eliminate waste and increase value to the customer.
Andy Rogish, Performance Management, rogisha@yoder.com, 239-728-2535 x211
10
Lean 101 Lego Widget Factory
8 Characteristics of Waste
Andy Rogish, Performance Management, rogisha@yoder.com, 239-728-2535 x211
11
Lean 101 Lego Widget Factory
8 Characteristics of Waste
Andy Rogish, Performance Management, rogisha@yoder.com, 239-728-2535 x211
12
Lean 101 Lego Widget Factory
Round #4
• Rules
– The customer wants 12.
– Form a kaizen team to improve the process,
applying the Lean tools that you have learned to
eliminate the 8 forms of waste.
– If you finish 12, keep working!
Andy Rogish, Performance Management, rogisha@yoder.com, 239-728-2535 x211
13
Lean 101 Lego Widget Factory
The House of Lean
Continuous Improvement
Pull/Kanban
Cellular/Flow
Quality at Source
POUS
Standardized Work
5S System
Quick Changeover
Batch Reduction
Visual
TPM
Teams
Plant Layout
Value
Stream
Mapping
Employee Involvement
Andy Rogish, Performance Management, rogisha@yoder.com, 239-728-2535 x211
14
Lean 101 Lego Widget Factory
Pull Systems
Operator 5 – Yellow or Orange
Operator 6 – Yellow or Orange
Operator 7 – Red, Green, or Blue
Customer Order
Customer Order
Customer Order
Name: Fred’s House of Widgets
Name: Widgets ‘R-US
Name: Widget-Mart
Date Wanted: Immediately
Date Wanted: Immediately
Date Wanted: Immediately
Item: Widget
Item: Widget
Item: Widget
Qty: 4
Qty: 4
Qty: 4
Customization: Red 4 dots,
Yellow 2 dots
Customization: Orange 2
dots, Green 4 dots
Customization: Blue 4 dots,
Yellow 2 dots
Andy Rogish, Performance Management, rogisha@yoder.com, 239-728-2535 x211
15
Lean 101 Lego Widget Factory
Pull Systems
Andy Rogish, Performance Management, rogisha@yoder.com, 239-728-2535 x211
16