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1Productivity Improvement Cell(PIC)
iART
Group members are-
2
Productivity Improvement Cell(PIC)
iART
20th Batch
of
IE & Lean Manufacturing
• Md Eanamul Haque Nizam
• Sumon Kumar Kundu
• Md Alamin
• Sayed Md Nasim
• Md Abdullah Al Mamun
What is Lean?
• Lean refers creating more value for customers
through identifying , eliminating or reducing
waste.
Reduce
waste
3
Productivity Improvement Cell(PIC)
iART
Productivity Improvement Cell(PIC) iART 4
Lean Manufacturing
 is a manufacturing philosophy & culture which shortens the time line
between the customer order and the product shipment by eliminating
waste.
Productivity Improvement Cell(PIC) iART 5
What makes a manufacturing system
lean? – the 3 M’s of lean
• muda – waste
• mura - inconsistency
• muri - unreasonableness
Lean Management
Lean management offers an opportunity to
drive up value and promote continuous
improvement.
6
Productivity Improvement Cell(PIC)
iART
Productivity Improvement Cell(PIC) iART 7
What makes a manufacturing system
Lean?
Lean manufacturing
A systematic approach of identifying,
eliminating or reducing waste to satisfy
the customer .
Lean
manufacturing
Identify the
waste
Eliminating or
reducing
waste
8
Productivity Improvement Cell(PIC)
iART
History of Lean Management
at a glance
1850 to 1890 Eli Whitney Interchangeable parts
1878 Frederick W. Taylor Scientific Management
1904 Frank Gilbreth Motion Study and Process
charts
1908 Henry Ford
Just In Time and Lean
Manufacturing.
1945 to 1970
Ishikawa, Edwards
Deming Toyota Production System
(TPS)
1949 to 1975 Shingo, Ohno
Quality movement
1980
Omark Industries, GE
& Kawasaki Manufacturing system
1990 to today Industrial Engineers
Lean Manufacturing
9Productivity Improvement Cell(PIC)
iART
History of Lean Management
Eli Whitney is most famous for perfection of
interchangeable parts. Whitney developed this
about 1799.
1850 to 1890
10
Productivity Improvement Cell(PIC)
iART
As production process or system changed, few
people concerned themselves with:
What happened between processes?
How multiple processes were arranged within
the factory?
How the chain of processes functioned as a
system?
How each worker went about a task?
This changed in the late 1890's with the work of
early Industrial Engineers
1850 to 1890
11
Productivity Improvement Cell(PIC)
iART
Frederick W. Taylor, one of the fathers of industrial,
introduced the concept of Scientific Management.
Standardized work
Time study & work standard
Management Dichotomy
He had peculiar attitude towards factory workers.
1878
12
Productivity Improvement Cell(PIC)
iART
Frank Gilbreth & Lillian Gilbreth added Motion
Study and invented Process Charting.
These were the people who originated the idea
of "eliminating waste", a key tenet of JIT and
Lean Manufacturing.
1904
13
Productivity Improvement Cell(PIC)
iART
Henry Ford, and his right-hand-man, Charles
E.Sorensen, first practitioner of Just In Time and
Lean Manufacturing.
Fashioned the first
comprehensive Manufacturing Strategy.
Took all the elements of a manufacturing
system-people, machines, tooling, and products.
Arranged them in a continuous system.
1908
14
Productivity Improvement Cell(PIC)
iART
• Ishikawa, Edwards Deming, and Joseph Juran
studied American production methods with
particular attention to Ford practices and the
Statistical Quality Control practices.
The Toyota Production System (TPS) was
developed between 1945 and 1970 and it is
still evolving today.
1945 to 1970
15Productivity Improvement Cell(PIC)
iART
Shingo, at Ohno's suggestion, went to work on
the setup and changeover problem and
contributed to -
Toyota production system
JIT
Stockless Production
World class Manufacturing
1949 to 1975
16
Productivity Improvement Cell(PIC)
iART
World Class Manufacturing
By the 1980's some American manufacturers,
such as Omark Industries, General Electric and
Kawasaki (Lincoln, Nebraska) were achieving
success through TPS as the first lean
manufacturing system. It started on the
shopfloor as a solution to a very real and
pressing problem.
1980
17
Productivity Improvement Cell(PIC)
iART
In 1990 James Womack wrote a book called
"The Machine That Changed The World".
What was new was a phrase-- "Lean
Manufacturing. "(coutesy. Strategosinc) Lean
has proven to be superior to mass production
and contemporary companies face the choice
of getting on board or facing extinction.
1990 to Today
18
Productivity Improvement Cell(PIC)
iART
The 14 Principles of
the Toyota Way:
Since Toyota’s founding we have adhered to the core principle
of contributing to society through the practice of
manufacturing high-quality products and services. Our
business practices and activities based on this core principle
created values, beliefs and business methods that over the
years have become a source of competitive advantage. These
are the managerial values and business methods that are
known collectively as the Toyota Way.
Executive Summary of the
14 Toyota Way Principles
Section I: Long-Term Philosophy
Principle 1. Base your management decisions on a long-term
philosophy, even at the expense of short-term financial goals.
■ Have a philosophical sense of purpose that supersedes any short-term
decision making. Work, grow, and align the whole organization toward a
common purpose that is bigger than making money. Understand your
place in the history of the company and work to bring the company to
the next level. Your philosophical mission is the foundation for all the
other principles.
■ Generate value for the customer, society, and the economy—it is your
starting point. Evaluate every function in the company in terms of its ability to achieve this.
■ Be responsible. Strive to decide your own fate. Act with self-reliance and trust in your own
abilities. Accept responsibility for your conduct and
maintain and improve the skills that enable you to produce added value.
Section II: The Right Process Will Produce the
Right Results
Principle 2. Create a continuous process flow to bring problems to the surface.
■ Redesign work processes to achieve high value-added, continuous flow.
Strive to cut back to zero the amount of time that any work project is sitting
idle or waiting for someone to work on it.
■ Create flow to move material and information fast as well as to link
processes and people together so that problems surface right away.
■ Make flow evident throughout your organizational culture. It is the key
to a true continuous improvement process and to developing people.
Principle 3. Use “pull” systems to avoid overproduction.
■ Provide your downline customers in the production process with what
they want, when they want it, and in the amount they want. Material
replenishment initiated by consumption is the basic principle of just-intime.
■ Minimize your work in process and warehousing of inventory by stocking
small amounts of each product and frequently restocking based on
what the customer actually takes away.
■ Be responsive to the day-by-day shifts in customer demand rather than
relying on computer schedules and systems to track wasteful inventory.
Principle 4. Level out the workload (heijunka). (Work like the tortoise, not
the hare.)
Eliminating waste is just one-third of the equation for making lean successful.
Eliminating overburden to people and equipment and eliminating unevenness in the
production schedule are just as important—yet generally not understood at companies
attempting to implement lean principles.
■ Work to level out the workload of all manufacturing and service processes as an
alternative to the stop/start approach of working on projects in batches that is typical at
most companies.
Principle 5. Build a culture of stopping to fix problems, to get quality right
the first time.
■ Quality for the customer drives your value proposition.
■ Use all the modern quality assurance methods available.
■ Build into your equipment the capability of detecting problems and stopping itself.
Develop a visual system to alert team or project leaders that a machine or process
needs assistance. Jidoka (machines with human intelligence) is the foundation for
“building in” quality.
■ Build into your organization support systems to quickly solve problems
and put in place countermeasures.
■ Build into your culture the philosophy of stopping or slowing down to
get quality right the first time to enhance productivity in the long run.
Principle 6. Standardized tasks and processes are the foundation for continuous
improvement and employee empowerment.
■ Use stable, repeatable methods everywhere to maintain the predictability, regular
timing, and regular output of your processes. It is the foundation for flow and pull.
■ Capture the accumulated learning about a process up to a point in time by
standardizing today’s best practices. Allow creative and individual expression to improve
upon the standard; then incorporate it into the new standard so that when a person
moves on you can hand off the learning to the next person.
Principle 7. Use visual control so no problems are hidden.
■ Use simple visual indicators to help people determine immediately whether they are
in a standard condition or deviating from it.
■ Avoid using a computer screen when it moves the worker’s focus away from the
workplace.
■ Design simple visual systems at the place where the work is done, to support
flow and pull.
■ Reduce your reports to one piece of paper whenever possible, even for your most
important financial decisions.
Principle 8. Use only reliable, thoroughly tested technology that serves your people
and processes.
■ Use technology to support people, not to replace people. Often it is best to work out
a process manually before adding technology to support the
process.
■ New technology is often unreliable and difficult to standardize and therefore
endangers “flow.” A proven process that works generally takes precedence over new
and untested technology.
■ Conduct actual tests before adopting new technology in business processes,
manufacturing systems, or products.
■ Reject or modify technologies that conflict with your culture or that might disrupt
stability, reliability, and predictability.
■ Nevertheless, encourage your people to consider new technologies when looking into
new approaches to work. Quickly implement a thoroughly considered technology if it
has been proven in trials and it can improve flow in your processes.
Section III: Add Value to the Organization by
Developing Your People
Principle 9. Grow leaders who thoroughly understand the work, live the philosophy, and
teach it to others.
■ Grow leaders from within, rather than buying them from outside the organization.
■ Do not view the leader’s job as simply accomplishing tasks and having good people skills.
Leaders must be role models of the company’s philosophy and way of doing business.
■ A good leader must understand the daily work in great detail so he or she can be the best
teacher of your company’s philosophy.
Principle 10. Develop exceptional people and teams who follow your company’s
philosophy.
■ Create a strong, stable culture in which company values and beliefs are widely shared
and lived out over a period of many years.
■ Train exceptional individuals and teams to work within the corporate philosophy to
achieve exceptional results. Work very hard to reinforce the culture continually.
■ Use cross-functional teams to improve quality and productivity and enhance flow by
solving difficult technical problems. Empowerment occurs when people use the company’s
tools to improve the company.
■ Make an ongoing effort to teach individuals how to work together as teams toward
common goals. Teamwork is something that has to be learned.
Principle 11. Respect your extended network of partners and suppliers by
challenging them and helping them improve.
■ Have respect for your partners and suppliers and treat them as an extension
of your business.
■ Challenge your outside business partners to grow and develop. It shows that you value
them. Set challenging targets and assist your partners in achieving them.
Section IV: Continuously Solving Root Problems
Drives Organizational Learning
Principle 12. Go and see for yourself to thoroughly understand the situation (genchi
genbutsu).
■ Solve problems and improve processes by going to the source and personally
observing and verifying data rather than theorizing on the basis of what other people
or the computer screen tell you.
■ Think and speak based on personally verified data.
■ Even high-level managers and executives should go and see things for themselves,
so they will have more than a superficial understanding of the situation.
Principle 13. Make decisions slowly by consensus, thoroughly considering
all options; implement decisions rapidly (nemawashi).
■ Do not pick a single direction and go down that one path until you have thoroughly
considered alternatives. When you have picked, move quickly and continuosly down the
path.
■ Nemawashi is the process of discussing problems and potential solutions with all of
those affected, to collect their ideas and get agreement on a path forward. This
consensus process, though time-consuming, helps broaden the search for solutions, and
once a decision is made, the stage is set for rapid implementation.
Principle 14. Become a learning organization through relentless reflection
(hansei) and continuous improvement (kaizen).
■ Once you have established a stable process, use continuous improvement
tools to determine the root cause of inefficiencies and apply effective
countermeasures.
■ Design processes that require almost no inventory. This will make wasted time and
resources visible for all to see. Once waste is exposed, have employees use a
continuous improvement process (kaizen) to eliminate it.
■ Protect the organizational knowledge base by developing stable personnel,
slow promotion, and very careful succession systems.
Productivity Improvement Cell(PIC)
iART
28
Thanks
Have a nice Day
Productivity Improvement Cell(PIC)
iART
29

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History of Lean manufacturing & TPS 14 Principal

  • 2. Group members are- 2 Productivity Improvement Cell(PIC) iART 20th Batch of IE & Lean Manufacturing • Md Eanamul Haque Nizam • Sumon Kumar Kundu • Md Alamin • Sayed Md Nasim • Md Abdullah Al Mamun
  • 3. What is Lean? • Lean refers creating more value for customers through identifying , eliminating or reducing waste. Reduce waste 3 Productivity Improvement Cell(PIC) iART
  • 4. Productivity Improvement Cell(PIC) iART 4 Lean Manufacturing  is a manufacturing philosophy & culture which shortens the time line between the customer order and the product shipment by eliminating waste.
  • 5. Productivity Improvement Cell(PIC) iART 5 What makes a manufacturing system lean? – the 3 M’s of lean • muda – waste • mura - inconsistency • muri - unreasonableness
  • 6. Lean Management Lean management offers an opportunity to drive up value and promote continuous improvement. 6 Productivity Improvement Cell(PIC) iART
  • 7. Productivity Improvement Cell(PIC) iART 7 What makes a manufacturing system Lean?
  • 8. Lean manufacturing A systematic approach of identifying, eliminating or reducing waste to satisfy the customer . Lean manufacturing Identify the waste Eliminating or reducing waste 8 Productivity Improvement Cell(PIC) iART
  • 9. History of Lean Management at a glance 1850 to 1890 Eli Whitney Interchangeable parts 1878 Frederick W. Taylor Scientific Management 1904 Frank Gilbreth Motion Study and Process charts 1908 Henry Ford Just In Time and Lean Manufacturing. 1945 to 1970 Ishikawa, Edwards Deming Toyota Production System (TPS) 1949 to 1975 Shingo, Ohno Quality movement 1980 Omark Industries, GE & Kawasaki Manufacturing system 1990 to today Industrial Engineers Lean Manufacturing 9Productivity Improvement Cell(PIC) iART
  • 10. History of Lean Management Eli Whitney is most famous for perfection of interchangeable parts. Whitney developed this about 1799. 1850 to 1890 10 Productivity Improvement Cell(PIC) iART
  • 11. As production process or system changed, few people concerned themselves with: What happened between processes? How multiple processes were arranged within the factory? How the chain of processes functioned as a system? How each worker went about a task? This changed in the late 1890's with the work of early Industrial Engineers 1850 to 1890 11 Productivity Improvement Cell(PIC) iART
  • 12. Frederick W. Taylor, one of the fathers of industrial, introduced the concept of Scientific Management. Standardized work Time study & work standard Management Dichotomy He had peculiar attitude towards factory workers. 1878 12 Productivity Improvement Cell(PIC) iART
  • 13. Frank Gilbreth & Lillian Gilbreth added Motion Study and invented Process Charting. These were the people who originated the idea of "eliminating waste", a key tenet of JIT and Lean Manufacturing. 1904 13 Productivity Improvement Cell(PIC) iART
  • 14. Henry Ford, and his right-hand-man, Charles E.Sorensen, first practitioner of Just In Time and Lean Manufacturing. Fashioned the first comprehensive Manufacturing Strategy. Took all the elements of a manufacturing system-people, machines, tooling, and products. Arranged them in a continuous system. 1908 14 Productivity Improvement Cell(PIC) iART
  • 15. • Ishikawa, Edwards Deming, and Joseph Juran studied American production methods with particular attention to Ford practices and the Statistical Quality Control practices. The Toyota Production System (TPS) was developed between 1945 and 1970 and it is still evolving today. 1945 to 1970 15Productivity Improvement Cell(PIC) iART
  • 16. Shingo, at Ohno's suggestion, went to work on the setup and changeover problem and contributed to - Toyota production system JIT Stockless Production World class Manufacturing 1949 to 1975 16 Productivity Improvement Cell(PIC) iART
  • 17. World Class Manufacturing By the 1980's some American manufacturers, such as Omark Industries, General Electric and Kawasaki (Lincoln, Nebraska) were achieving success through TPS as the first lean manufacturing system. It started on the shopfloor as a solution to a very real and pressing problem. 1980 17 Productivity Improvement Cell(PIC) iART
  • 18. In 1990 James Womack wrote a book called "The Machine That Changed The World". What was new was a phrase-- "Lean Manufacturing. "(coutesy. Strategosinc) Lean has proven to be superior to mass production and contemporary companies face the choice of getting on board or facing extinction. 1990 to Today 18 Productivity Improvement Cell(PIC) iART
  • 19. The 14 Principles of the Toyota Way: Since Toyota’s founding we have adhered to the core principle of contributing to society through the practice of manufacturing high-quality products and services. Our business practices and activities based on this core principle created values, beliefs and business methods that over the years have become a source of competitive advantage. These are the managerial values and business methods that are known collectively as the Toyota Way.
  • 20. Executive Summary of the 14 Toyota Way Principles Section I: Long-Term Philosophy Principle 1. Base your management decisions on a long-term philosophy, even at the expense of short-term financial goals. ■ Have a philosophical sense of purpose that supersedes any short-term decision making. Work, grow, and align the whole organization toward a common purpose that is bigger than making money. Understand your place in the history of the company and work to bring the company to the next level. Your philosophical mission is the foundation for all the other principles. ■ Generate value for the customer, society, and the economy—it is your starting point. Evaluate every function in the company in terms of its ability to achieve this. ■ Be responsible. Strive to decide your own fate. Act with self-reliance and trust in your own abilities. Accept responsibility for your conduct and maintain and improve the skills that enable you to produce added value.
  • 21. Section II: The Right Process Will Produce the Right Results Principle 2. Create a continuous process flow to bring problems to the surface. ■ Redesign work processes to achieve high value-added, continuous flow. Strive to cut back to zero the amount of time that any work project is sitting idle or waiting for someone to work on it. ■ Create flow to move material and information fast as well as to link processes and people together so that problems surface right away. ■ Make flow evident throughout your organizational culture. It is the key to a true continuous improvement process and to developing people. Principle 3. Use “pull” systems to avoid overproduction. ■ Provide your downline customers in the production process with what they want, when they want it, and in the amount they want. Material replenishment initiated by consumption is the basic principle of just-intime. ■ Minimize your work in process and warehousing of inventory by stocking small amounts of each product and frequently restocking based on what the customer actually takes away. ■ Be responsive to the day-by-day shifts in customer demand rather than relying on computer schedules and systems to track wasteful inventory.
  • 22. Principle 4. Level out the workload (heijunka). (Work like the tortoise, not the hare.) Eliminating waste is just one-third of the equation for making lean successful. Eliminating overburden to people and equipment and eliminating unevenness in the production schedule are just as important—yet generally not understood at companies attempting to implement lean principles. ■ Work to level out the workload of all manufacturing and service processes as an alternative to the stop/start approach of working on projects in batches that is typical at most companies. Principle 5. Build a culture of stopping to fix problems, to get quality right the first time. ■ Quality for the customer drives your value proposition. ■ Use all the modern quality assurance methods available. ■ Build into your equipment the capability of detecting problems and stopping itself. Develop a visual system to alert team or project leaders that a machine or process needs assistance. Jidoka (machines with human intelligence) is the foundation for “building in” quality. ■ Build into your organization support systems to quickly solve problems and put in place countermeasures. ■ Build into your culture the philosophy of stopping or slowing down to get quality right the first time to enhance productivity in the long run.
  • 23. Principle 6. Standardized tasks and processes are the foundation for continuous improvement and employee empowerment. ■ Use stable, repeatable methods everywhere to maintain the predictability, regular timing, and regular output of your processes. It is the foundation for flow and pull. ■ Capture the accumulated learning about a process up to a point in time by standardizing today’s best practices. Allow creative and individual expression to improve upon the standard; then incorporate it into the new standard so that when a person moves on you can hand off the learning to the next person. Principle 7. Use visual control so no problems are hidden. ■ Use simple visual indicators to help people determine immediately whether they are in a standard condition or deviating from it. ■ Avoid using a computer screen when it moves the worker’s focus away from the workplace. ■ Design simple visual systems at the place where the work is done, to support flow and pull. ■ Reduce your reports to one piece of paper whenever possible, even for your most important financial decisions.
  • 24. Principle 8. Use only reliable, thoroughly tested technology that serves your people and processes. ■ Use technology to support people, not to replace people. Often it is best to work out a process manually before adding technology to support the process. ■ New technology is often unreliable and difficult to standardize and therefore endangers “flow.” A proven process that works generally takes precedence over new and untested technology. ■ Conduct actual tests before adopting new technology in business processes, manufacturing systems, or products. ■ Reject or modify technologies that conflict with your culture or that might disrupt stability, reliability, and predictability. ■ Nevertheless, encourage your people to consider new technologies when looking into new approaches to work. Quickly implement a thoroughly considered technology if it has been proven in trials and it can improve flow in your processes.
  • 25. Section III: Add Value to the Organization by Developing Your People Principle 9. Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others. ■ Grow leaders from within, rather than buying them from outside the organization. ■ Do not view the leader’s job as simply accomplishing tasks and having good people skills. Leaders must be role models of the company’s philosophy and way of doing business. ■ A good leader must understand the daily work in great detail so he or she can be the best teacher of your company’s philosophy. Principle 10. Develop exceptional people and teams who follow your company’s philosophy. ■ Create a strong, stable culture in which company values and beliefs are widely shared and lived out over a period of many years. ■ Train exceptional individuals and teams to work within the corporate philosophy to achieve exceptional results. Work very hard to reinforce the culture continually. ■ Use cross-functional teams to improve quality and productivity and enhance flow by solving difficult technical problems. Empowerment occurs when people use the company’s tools to improve the company. ■ Make an ongoing effort to teach individuals how to work together as teams toward common goals. Teamwork is something that has to be learned.
  • 26. Principle 11. Respect your extended network of partners and suppliers by challenging them and helping them improve. ■ Have respect for your partners and suppliers and treat them as an extension of your business. ■ Challenge your outside business partners to grow and develop. It shows that you value them. Set challenging targets and assist your partners in achieving them. Section IV: Continuously Solving Root Problems Drives Organizational Learning Principle 12. Go and see for yourself to thoroughly understand the situation (genchi genbutsu). ■ Solve problems and improve processes by going to the source and personally observing and verifying data rather than theorizing on the basis of what other people or the computer screen tell you. ■ Think and speak based on personally verified data. ■ Even high-level managers and executives should go and see things for themselves, so they will have more than a superficial understanding of the situation.
  • 27. Principle 13. Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly (nemawashi). ■ Do not pick a single direction and go down that one path until you have thoroughly considered alternatives. When you have picked, move quickly and continuosly down the path. ■ Nemawashi is the process of discussing problems and potential solutions with all of those affected, to collect their ideas and get agreement on a path forward. This consensus process, though time-consuming, helps broaden the search for solutions, and once a decision is made, the stage is set for rapid implementation. Principle 14. Become a learning organization through relentless reflection (hansei) and continuous improvement (kaizen). ■ Once you have established a stable process, use continuous improvement tools to determine the root cause of inefficiencies and apply effective countermeasures. ■ Design processes that require almost no inventory. This will make wasted time and resources visible for all to see. Once waste is exposed, have employees use a continuous improvement process (kaizen) to eliminate it. ■ Protect the organizational knowledge base by developing stable personnel, slow promotion, and very careful succession systems.
  • 29. Thanks Have a nice Day Productivity Improvement Cell(PIC) iART 29