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Lean Manufacturing : Concept & Overview
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Lean Manufacturing : Concept & Overview

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An overview of Concept of waste, Concept of value, concept of lean, lean thinking and lean methodologies

An overview of Concept of waste, Concept of value, concept of lean, lean thinking and lean methodologies

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  • 1. Lean Manufacturing nareshchawla@tqmbizschool.org © PTU's Gian Jyoti School of TQM & Entrepreneurship 1
  • 2. History & Evolution Before 1850 Craft manufacturing 1850 Eli Whitney (Interchangeable parts) American Civil War Drawing conventions, Tolerances Modern machine tool development Fredrick Taylor (Standardized work, time study & work standards) 1900 Frank Gilbreth (Process charts, motion study) World War I Henry Ford (Assembly lines, flow lines, manufacturing strategy) World War II Deming & Juran (SPC, TQM) 1950 Eiji Toyoda, Taiichi Ohno, Shigeo Shingo Toyota production system, JIT Stockless production, World class manufacture 1990 Lean Manufacture © PTU's Gian Jyoti School of TQM & Entrepreneurship 2
  • 3. Industry’s Concerns Rising Cost of Input Govt. Policies (Raw material, Energy) Competency of Global employees Competition Accountability to shareholders & financers Above all SUSTAINABLE Improvement © PTU's Gian Jyoti School of TQM & Entrepreneurship 3
  • 4. Survival Kit • Create precise customer value - goods and services with higher quality and fewer defects – with less human effort, less space, less capital, and less time than the traditional system of mass production. • Remove ‘waste’ – Consume ‘just enough’ recourses – Do more with less © PTU's Gian Jyoti School of TQM & Entrepreneurship 4
  • 5. Defining Value and Waste • Defining value - an item or feature for which a customer willing to pay. • Every thing else – waste • Waste - activities that consume time, resource and/or space but do not add value. • Lean - Production of product to meet demand on daily basis with minimum lead time & non value added activities eliminated or minimized © PTU's Gian Jyoti School of TQM & Entrepreneurship 5
  • 6. Focus on Waste © PTU's Gian Jyoti School of TQM & Entrepreneurship 6
  • 7. Value Added Activity • Test for value added activities - Transforms product in some way - Customer sees & willing to pay - Will the customer know if eliminated © PTU's Gian Jyoti School of TQM & Entrepreneurship 7
  • 8. Seven Wastes MUDA is the Japanese word for WASTE. An 8th waste is the wasted potential 5 7 2 of people 1 4 3 6 Overproduction To produce sooner,faster or in greater quantities Seek it out and get rid! than customer demand. Over Processing 1 Inventory Processing beyond the standard required by the 7 2 Raw material, work in progress customer. or finished goods which is not having value added to it. Rework Non right Waiting first time. Repetition 6 3 People or parts or correction that wait for of a process. a work cycle to be completed. Transportation 5 4 Motion Unnecessary movement of people, parts or Unnecessary movement of people machines within or parts between processes. a process. © PTU's Gian Jyoti School of TQM & Entrepreneurship 8
  • 9. Eliminating Waste 7 steps 1. Reduce lead time 2. Cut operations costs 3. Improve business performance visibility 4. Speed time to market 5. Exceed customer expectations 6. Streamline outsourcing processes 7. Manage global operations © PTU's Gian Jyoti School of TQM & Entrepreneurship 9
  • 10. Lean manufacturing is a systems approach “Lean manufacturing is not a collection of best practices from which manufacturers can pick and choose. It is a production philosophy, a way of conceptualizing the manufacturing process from raw material to finished goods and from design concept to customer satisfaction. Lean is truly a different way of thinking about manufacturing.” - Running Today’s Factory: A Proven Strategy for Lean Manufacturing, Charles Standard. © PTU's Gian Jyoti School of TQM & Entrepreneurship 10
  • 11. Comparison of lead time Business as Usual Customer Waste Product Order Shipment Time Lean Manufacturing Customer Product Order Shipment Waste Time (Shorter) © PTU's Gian Jyoti School of TQM & Entrepreneurship 11
  • 12. Main Features of Lean Manufacturing • Greater Product Variety • Fast Response (Flexibility) • Stable Production Schedules • Supply Chain Integration • Demand Management • Broader jobs, highly skilled workers, proud of product • Excellent quality • Reduced costs • Ability to meet global market & competition © PTU's Gian Jyoti School of TQM & Entrepreneurship 12
  • 13. Typical benefits of waste elimination initiative © PTU's Gian Jyoti School of TQM & Entrepreneurship 13
  • 14. Lean Thinking, Lean Tools & Supporting Strategies © PTU's Gian Jyoti School of TQM & Entrepreneurship 14
  • 15. Lean Tools to Lean Management • Lean thinking “The basics of Lean Thinking is ‘the customer first” • How do we do that? “By creating thinking people” • And how do we do that? “By creating workplaces that are more human and encourage people to think” © PTU's Gian Jyoti School of TQM & Entrepreneurship 15
  • 16. Lean Thinking Principle #1 ……‘Define Value’ ??? Quality Flexibility Service Variety ----VALUE---- Variability Response- Time Cost The critical starting point for Lean Thinking is value as defined by the ultimate customer. © PTU's Gian Jyoti School of TQM & Entrepreneurship 16
  • 17. Lean Thinking Principle #2 ……‘Identify the Value Stream’ All the actions required to bring a specific product or service through the three critical transformation processes: • Idea transformation: concept to market launch • Information transformation: order-take through scheduling to delivery • Physical transformation: raw materials to final customer Value-add Inventory Waiting Setup Transportation Waiting Inspect time (Hours) Typical value-add to lead-time ratio ~ 1% Waste Value-add activity © PTU's Gian Jyoti School of TQM & Entrepreneurship 17
  • 18. Lean Thinking Principles #3,4,5 #3: Make the work flow • Every time the flow of work stops we consume resources that adds costs but generates no value #4: Respond only when the customer pulls work • Overproduction is the worst form of waste as it generate all other waste types e.g. transportation, inventory, waiting,….. #5: Strive to seek perfection • The real benchmark is zero waste, not what your competitors are doing! © PTU's Gian Jyoti School of TQM & Entrepreneurship 18
  • 19. Lean Tools & Supporting Strategies • 5S • Visual control • Team building • Problem solving • Standardised processes • Value stream mapping © PTU's Gian Jyoti School of TQM & Entrepreneurship 19
  • 20. Lean Tools & Supporting Strategies • Pull system • Kanban • Takt time – rate of customer demand • Manufacturing Cells • Heijunka • 5Ws & 1H © PTU's Gian Jyoti School of TQM & Entrepreneurship 20
  • 21. Lean Tools & Supporting Strategies • Kaizen • Total Productive Maintenance • SMED (setup reduction) • Poka-Yoke or mistake-proofing • Cycle time reduction • Andon – signalling system to stop line © PTU's Gian Jyoti School of TQM & Entrepreneurship 21
  • 22. 5S A method for organizing a workplace, and keeping it organized. Benefits 1.Improve safety 2.Decrease down time 3.Raise employee morale 4.Identify problems more quickly 5.Develop control through visibility 6.Establish convenient work practices © PTU's Gian Jyoti School of TQM & Entrepreneurship 22
  • 23. © PTU's Gian Jyoti School of TQM & Entrepreneurship 23
  • 24. Visual Control Any communication device used in the work environment that tells us at a glance how work should be done and whether it is deviating from the standard Benefits 1. Increase productivity 2. Improve quality 3. On-time delivery 4. Reduce inventory 5. Increase equipment reliability 6. Boosts bottom-line profits © PTU's Gian Jyoti School of TQM & Entrepreneurship 24
  • 25. Visual controls show • Where items belong? • How many items belong there? • What is the standard procedure for doing something? • Status of work in process. • Many other types of information critical to the flow of work activities. © PTU's Gian Jyoti School of TQM & Entrepreneurship 25
  • 26. Visual management • Visual management maintains an orderly work environment. • Employees have quicker and safer access to items that are needed. • Colour-coding is often used to remind employees of where items belong. • If order is not continually stressed, disorder will result and create an unfriendly work atmosphere. © PTU's Gian Jyoti School of TQM & Entrepreneurship 26
  • 27. Team Building Lean Tool Introduction Benefits 1. Improves morale and leadership skills. 2. Finds the barriers that thwart creativity An active process by 3. Clearly defines objectives which a group of and goals individuals with a 4. Improves processes and Team common purpose are procedures Building focused and aligned to 5. Improves organizational achieve a specific task productivity or set of outcomes 6. Identifies a team’s strengths and weaknesses· 7. Improves the ability to problem solve © PTU's Gian Jyoti School of TQM & Entrepreneurship 27
  • 28. Problem Solving Lean Tool Introduction Benefits The Problem Solving is a systematic approach with a sequence of sections that fit together depending on the type of problem to be solved. These are: 1. Problem Definition 1. Leads to identify root Problem 2. Problem Analysis cause(s) of chronicle Solving problems 3. Generating possible Solutions 4. Analyzing the Solutions 5. Selecting the best Solution(s) 6. Sustaining the gains © PTU's Gian Jyoti School of TQM & Entrepreneurship 28
  • 29. Standardized Process & Value stream Mapping Lean Tool Introduction Benefits 1. Better decision making 2. Cost reduction and increase in Standardization is efficiency the process of 3. Effective information sharing Standardized developing and 4. Easier international transfer of Process agreeing upon marketing skills technical 5. Simplifying the coordination standards. and control between subsidiaries and business functions 1. Enable Visualizing the production process A tool for guiding 2. Identifies waste in each step of Value stream improvements by the production process. Mapping identifying waste & 3. Provides a plan for isolated processes implementing improvements to the production process to reduce costs. © PTU's Gian Jyoti School of TQM & Entrepreneurship 29
  • 30. Pull system Lean Tool Introduction Benefits 1. Reduce lead times A method of controlling 2. Minimize work in process the flow of resources 3. optimize floor space usage Pull system by replacing only what has been consumed 4. Simplify production signals and improve on-time delivery to customers. © PTU's Gian Jyoti School of TQM & Entrepreneurship 30
  • 31. Kanban Lean Tool Introduction Benefits 1. Reduces waste and scrap 2. Provides flexibility in production 3. Increases Output A system of continuous 4. Reduce Preventing Over supply of components, Production parts and supplies, such 5. Minimizing Wait Times and Kanban that workers have what Logistics Costs they need, where they need it, when they need it 6. Reduce Stock Levels and Overhead Costs 7. Save Resources by Streamlining Production 8. Reduce Inventory Costs © PTU's Gian Jyoti School of TQM & Entrepreneurship 31
  • 32. Takt time – Rate of customer demand & Manufacturing Cells Lean Tool Introduction Benefits 1. Gives the rhythm at which system should operate 2. Smooth production planning & reduced interruptions in The rate that a operations Takt time – completed product rate of 3. System synchronization with needs to be finished in customer customer requirement order to meet customer demand 4. Enable pull scheduling demand 5. No over production 6. No rush hours in work 7. WIP reduced Comprises a group of 1. Flexible Operation equipment, that is 2. Setup Time Reduction Manufacturing dedicated to the Cells 3. Process Simplification complete production of a family of similar parts 4. Schedule Variety © PTU's Gian Jyoti School of TQM & Entrepreneurship 32
  • 33. Heijunka & 5Ws & 1 H Lean Tool Introduction Benefits 1. Stability of manpower the leveling of 2. Reduction of unnecessary production by both overtime Heijunka volume and product 3. Reduction in inventory levels mix 4. Reduction of stress levels in the production area 1. Identify root cause It is a method of 2. Identify current and future needs for organizational questioning that leads improvement. 5Ws & 1 H to the identification of the root cause(s) of a 3. Develop a logical approach to problem problem solving; using data that already exists in most operations. © PTU's Gian Jyoti School of TQM & Entrepreneurship 33
  • 34. Kaizen & Total Productive Maintenance Lean Tool Introduction Benefits 1. Increased Space utilization 2. Increased product quality 3. Better Use of capital Kaizen Continuous Improvement 4. Communications 5. Production capacity 6. Employee retention A maintenance philosophy designed to 1. Improve Productivity integrate equipment 2. Reduce breakdown leading maintenance into the to Zero breakdown concept Total manufacturing process. Productive 3. Leads to multi-skilling of The goal is to keep Maintenance workers equipment producing only good product, as fast as 4. Better safety possible with no 5. Improve quality of products unplanned downtime. © PTU's Gian Jyoti School of TQM & Entrepreneurship 34
  • 35. SMED (Set up reduction) & Poka- yoke or mistake proofing Lean Tool Introduction Benefits 1. WIP and lot size reduction 2. Finished goods inventory The practice of reducing reduction the time it takes to SMED (Set up change a line or machine 3. Improved equipment reduction) utilization/yield from running one product to the next 4. Increased profitability without new capital equipment purchase A techniques that help operators avoid mistakes 1. Better safety Poka-yoke or in their work caused by mistake choosing the wrong part, 2. Reduce breakdown proofing leaving out a part, installing a part 3. Improve Productivity backwards, etc. © PTU's Gian Jyoti School of TQM & Entrepreneurship 35
  • 36. Cycle Time reduction Lean Tool Introduction Benefits 1. Reduced costs Reduction of total time taken from start of the 2. Increased throughput production or service to 3. Streamlined processes Cycle Time its completion. It 4. Improved communications reduction includes processing time, move time, wait 5. Reduced process variability time, and inspection 6. Schedule integrity time 7. Improved on-time delivery © PTU's Gian Jyoti School of TQM & Entrepreneurship 36
  • 37. Andon–Signaling system to stop line Lean Tool Introduction Benefits 1. Bring immediate attention to problems as they occur in the manufacturing process. 2. Provide a simple and consistent mechanism for communicating information on the plant floor. A Japanese term refers to the warning lights on an 3. Encourage immediate reaction to quality, down time, and Andon – assembly line that light up safety problems. Signaling when a defect occurs. system to When the lights go on, the 4. Improve accountability of stop line assembly line is usually operators by increasing their stopped until the problem responsibility for “good” is diagnosed and corrected. production and empowering them to take action when problems occur. 5. Improve the ability of supervisors to quickly identify and resolve manufacturing issues. © PTU's Gian Jyoti School of TQM & Entrepreneurship 37
  • 38. Thank You © PTU's Gian Jyoti School of TQM & Entrepreneurship 38