Best Practices for SMEs“Improving the Productivity using Lean     Manufacturing Techniques”     HASH MANAGEMENT SERVICES L...
Introduction to Hash Management Services LLP   Hash Management Services LLP works with manufacturing companies in the are...
Introduction to Lean Manufacturing                           Lean Manufacturing         A set of Management practices orig...
Lean Manufacturing    A systematic approach to identifying and eliminating waste (non-     value-added activities) throug...
Lean Manufacturing - Terms    Value Adding                                        Non-Value Adding    Process:            ...
7 wastes in Lean Manufacturing                                                Waiting                              Over-  ...
Waste no: 1 - Waiting                  Examples                     Characteristics    •Idle time in which no value       ...
Waste no: 2 - Transportation                  Examples                     Characteristics    •Any unnecessary material   ...
Waste no: 3 – Over-Processing                  Examples                     Characteristics    •Effort which adds no value...
Waste no: 4 – Inventory                  Examples                      Characteristics    •Any unnecessary supplies or    ...
Waste no: 5 – Motion                  Examples                      Characteristics    •Any movement of people which      ...
Waste no: 6 – Defects                  Examples                      Characteristics    •Repair of a product or service to...
Waste no: 7 – Over-Production                  Examples                     Characteristics    •Producing more than needed...
Where to apply the Lean Manufacturing Principles ?
Bottleneck Process - Example               A                       B           C             1 min                     2 m...
Bottleneck Process - Example               A                       B           C             1 min                  X     ...
Bottleneck Process - Example                                        Bottleneck                                         Pro...
Focused Improvement - KaizenRegular Improvement                                              Kaizen   Improvement is like ...
Popular Misconceptions Kaizen is only for employees. Kaizen is only a sort of a suggestion scheme. Any implemented impr...
Kaizen – Small change leading to large                       improvement Isn‟t KAIZEN supposed to be small improvements? ...
What is Kaizen Kaizen/ Focused Improvement is:      Process Improvement      in Strategically Important Areas      Sig...
Kaizen Principles         Go to Gemba                   - When an abnormality occurs         Check Gembutsu               ...
Kaizen Rules              Ready to give up traditional thinking, question everything              Ask 5x „WHY“ and find pr...
Kaizen requires a non-blaming culture                   Blaming                   Non-blaming           •   Fault-finding ...
Benefits of Kaizen Evaluates system with data Allows “real” issues to emerge Decreases negative blaming activity Incre...
Kaizen promotes Process Oriented Thinking Self-Discipline: Apply a common process Time Focus: How long does the process ...
Work Place Improvements          Ways                             Searches              Multiple handling                 ...
Work Place Improvements Long travel by the                    Materials placed between   Badly seizable employees         ...
Work Place Improvements           Soldering                          Pack                                       U-line aga...
Work Place Improvements Small parts are                                     The order difficult to take                   ...
Work Place Improvements    The part is very    difficult to lift                                          Type B          ...
Work Place Improvements                                                    3 different lengths                            ...
Work Place Improvements       for component A    for component B   for component A   for component B                      ...
Best Practices for SMEs“Improving the Productivity using Lean     Manufacturing Techniques”     HASH MANAGEMENT SERVICES L...
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Lean manufacturing

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A snapshot of the session we did with CII on 15th March at Hilton, Chennai

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  1. 1. Best Practices for SMEs“Improving the Productivity using Lean Manufacturing Techniques” HASH MANAGEMENT SERVICES LLP CHENNAI www.businessense.in
  2. 2. Introduction to Hash Management Services LLP Hash Management Services LLP works with manufacturing companies in the areas of Productivity improvements, Inventory and Purchase Optimization, and Supply Chain Re-Engineering Our areas of expertise are Lean Manufacturing Implementation covering 5S and other tools, Supply Chain Management, Market Assessment and Detailed Project reports Working on innovative ways to serve clients in the SME sector – through online training programs and niche applications to monitor the businesses More than 50 companies in the last 6 years across the following sectors:  Auto Ancillaries  Leather and Footwear Manufacturing  Pumps  Castings and Forgings  Fabrication  Electronic Components Manufacturing  Medical Equipment Manufacturing  Heavy Engineering www.hashllp.com  Light Engineering www.businessense.in
  3. 3. Introduction to Lean Manufacturing Lean Manufacturing A set of Management practices originated in Japan, useful in eliminating non-value added activities and improving the productivity in a faster and efficient manner !© Hash Management Services LLP. 2013 www.hashllp.com
  4. 4. Lean Manufacturing A systematic approach to identifying and eliminating waste (non- value-added activities) through continuous improvement by flowing the product or service at the pull of the customer. Doing more and more with less and less…© Hash Management Services LLP. 2013 www.hashllp.com
  5. 5. Lean Manufacturing - Terms Value Adding Non-Value Adding Process: Process (Waste): A process step that Process steps that take transforms or shapes a time, resources, or product or service which space, but do not add is eventually sold to a value to the product or customer. service. In most cases VA is only 5%© Hash Management Services LLP. 2013 www.hashllp.com
  6. 6. 7 wastes in Lean Manufacturing Waiting Over- Transportation Production 7 Wastes Over- Defects Processing Motion Inventory© Hash Management Services LLP. 2013 www.hashllp.com
  7. 7. Waste no: 1 - Waiting Examples Characteristics •Idle time in which no value •Person waiting for a machine added activities take place •People watching machines run • Person wait time •Machine or materials waiting • Machine wait time for a person • Material wait time •Lack of concern for equipment breakdowns or downtime •Long setup times •Unbalanced operations •Inconsistent work methods© Hash Management Services LLP. 2013 www.hashllp.com
  8. 8. Waste no: 2 - Transportation Examples Characteristics •Any unnecessary material •Multiple storage locations movement that does not support •Multiple movement of material the lean manufacturing system •Poor facility layout •Return of materials not used in •Conveyors production •Forklifts •Transfer Carts •Movement between shops© Hash Management Services LLP. 2013 www.hashllp.com
  9. 9. Waste no: 3 – Over-Processing Examples Characteristics •Effort which adds no value to a •Process bottlenecks product or service •Lack of clear customer • Work that can be combined expectations with other processes •Lack of customer input • Enhancements that are concerning requirements transparent to the customer •Redundant approvals •Multiple Tests •Extra copies and excessive •Parts Handling information •Inspections •Inefficient policies and procedures© Hash Management Services LLP. 2013 www.hashllp.com
  10. 10. Waste no: 4 – Inventory Examples Characteristics •Any unnecessary supplies or •Extra space on receiving docks materials that do not support the •Build up of material between „Just In Time Production processes System‟ •Long lead times for engineering •Material on site (WIP) change •Strategic Buys •Long Supply Channels© Hash Management Services LLP. 2013 www.hashllp.com
  11. 11. Waste no: 5 – Motion Examples Characteristics •Any movement of people which •Looking for tools and parts does not add value to the •Excessive reaching or bending product •Material too far apart (walk time) •Poor plant layout© Hash Management Services LLP. 2013 www.hashllp.com
  12. 12. Waste no: 6 – Defects Examples Characteristics •Repair of a product or service to •Extra floor space, tools and fulfill customer requirements equipment •Extra manpower to inspect, •Warranty rework and repair •Rework •Additional inventory •Scrap •Questionable quality •Lower profits due to scrap •Incapable processes with excessive variation •Inadequate tools or equipment© Hash Management Services LLP. 2013 www.hashllp.com
  13. 13. Waste no: 7 – Over-Production Examples Characteristics •Producing more than needed •Inventory stockpiles • „Work ahead‟ •Extra or oversized equipment •Producing at a faster pace then •Unbalanced material flow and needed confusion about priority •Extra parts storage racks and •Stock manpower •Over build of capacity •Build ahead of demand •Unbalanced production •Large lot sizes or batch processing© Hash Management Services LLP. 2013 www.hashllp.com
  14. 14. Where to apply the Lean Manufacturing Principles ?
  15. 15. Bottleneck Process - Example A B C 1 min 2 min 1 min Output of the line after 1 hour = ?© Hash Management Services LLP. 2013 www.hashllp.com
  16. 16. Bottleneck Process - Example A B C 1 min X 2 min X 1 min 30 Sec 45 Sec Output of the line after 1 hour = ?© Hash Management Services LLP. 2013 www.hashllp.com
  17. 17. Bottleneck Process - Example Bottleneck Process A B C 1 min 2 min 1 min No No use use Unless we improve the 30 Sec bottleneck activity, the 45 Sec throughput will not increase© Hash Management Services LLP. 2013 www.hashllp.com
  18. 18. Focused Improvement - KaizenRegular Improvement Kaizen Improvement is like sunlight: Focused improvement concentrates the energy: • Lot of energy, but dispersed (wasted) • Little energy, but concentrated and aligned • Small improvements • Enables significant (large) improvements • Slow progress. • Small time required • Rapid progress© Hash Management Services LLP. 2013 www.hashllp.com
  19. 19. Popular Misconceptions Kaizen is only for employees. Kaizen is only a sort of a suggestion scheme. Any implemented improvement is Kaizen Kaizen is: SMALL improvements (only). Kaizen is continuous improvement© Hash Management Services LLP. 2013 www.hashllp.com
  20. 20. Kaizen – Small change leading to large improvement Isn‟t KAIZEN supposed to be small improvements? Kaizen is small change that leads to Large Improvement© Hash Management Services LLP. 2013 www.hashllp.com
  21. 21. What is Kaizen Kaizen/ Focused Improvement is:  Process Improvement  in Strategically Important Areas  Significant (Large) Improvements  (and small ones that go with it)  Sustainable Improvements  Speedily Executed Improvements© Hash Management Services LLP. 2013 www.hashllp.com
  22. 22. Kaizen Principles Go to Gemba - When an abnormality occurs Check Gembutsu - Machine, Material, Failures, Rejects etc. Search for - Muda (waste), Mura (inconsistency), Muri (physical strain) Speak with data - Take temporary countermeasures on the spot Make Kaizens - Remove root causes Standardize - Standardize to prevent recurrance© Hash Management Services LLP. 2013 www.hashllp.com
  23. 23. Kaizen Rules Ready to give up traditional thinking, question everything Ask 5x „WHY“ and find problem‘s root cause Ask what can be done, not explain why something cannot be Imperfect progress is better than postponed perfection Produce only perfect quality and correct mistakes immediately Invest time and creativity in Kaizen, not money. Solve problems in the team Kaizen does not have any end© Hash Management Services LLP. 2013 www.hashllp.com
  24. 24. Kaizen requires a non-blaming culture Blaming Non-blaming • Fault-finding • Fact-finding • Focus on individual • Focus on process • Ask “Who?” • Ask “Why?” • Zero in on function • Look for systems issues • Make assumptions • Determine needs • Blame • Hold accountable • Control • Assist • Inspect/sort • Improve capability© Hash Management Services LLP. 2013 www.hashllp.com
  25. 25. Benefits of Kaizen Evaluates system with data Allows “real” issues to emerge Decreases negative blaming activity Increases trust Increases quality of communication Increases capability© Hash Management Services LLP. 2013 www.hashllp.com
  26. 26. Kaizen promotes Process Oriented Thinking Self-Discipline: Apply a common process Time Focus: How long does the process take? Skill Focus: What skills are required? Participation: How can I make improvements? Morale: How will changes affect others? Communication: Why are changes made?© Hash Management Services LLP. 2013 www.hashllp.com
  27. 27. Work Place Improvements Ways Searches Multiple handling Bore Deburr Werkzeug Meßmittel Reinigung Arrange the machines Arrange Tools and aids Boring combined with closely to the operator Deburring© Hash Management Services LLP. 2013 www.hashllp.com
  28. 28. Work Place Improvements Long travel by the Materials placed between Badly seizable employees the employees material More space available Aid and servome chanisms© Hash Management Services LLP. 2013 www.hashllp.com
  29. 29. Work Place Improvements Soldering Pack U-line against clockwise direction (with small articles), there right hand for feeding, left hand for starting Soldering Pack Tables on same height, And removal at so that parts do not have to the same side be lifted© Hash Management Services LLP. 2013 www.hashllp.com
  30. 30. Work Place Improvements Small parts are The order difficult to take is not optimal as is the case for© Hash Management Services LLP. 2013 www.hashllp.com
  31. 31. Work Place Improvements The part is very difficult to lift Type B Type B Type A Visual management facilitates© Hash Management Services LLP. 2013 www.hashllp.com
  32. 32. Work Place Improvements 3 different lengths Magnet more approximately 30-50° Head a b c© Hash Management Services LLP. 2013 www.hashllp.com
  33. 33. Work Place Improvements for component A for component B for component A for component B Abfall- loch© Hash Management Services LLP. 2013 www.hashllp.com
  34. 34. Best Practices for SMEs“Improving the Productivity using Lean Manufacturing Techniques” HASH MANAGEMENT SERVICES LLP CHENNAI www.businessense.in

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