Lean-TAREQ.pptx

Lean/Lean Manufacturing/Lean Operations,
Toyota Production System(TPS),
Work in Progress(WIP),
Just-in-Time(JIT),
Six Sigma,
TQM,
&
5’s 1

Lean=Lean Manufacturing=Lean Operations
Lean manufacturing is the implementation of the
concept that anything that does not create value
in the product is to be eliminated. It is the
concept of more value for less work.
2
Based on the Toyota Production System (TPS).

• It is focused on eliminating “waste” (anything that
is not adding value). As waste is reduced, quality
improves, production times are reduced and cost is
minimized.
• Lean manufacturing is focused on doing the right
tasks, at the right place, at the right time, in the right
quantity to achieve perfect work flow while
eliminating waste (scrap) and with the ability and
flexibility to change.
• The Heart: reduction of waste and the
improvement of workflow.
3

Lean is in two parts:
• Eliminate WASTE and Non-value-added activity
(NVA) through continuous improvement.
• Practice respect for people
4

Lean Focuses on Waste
• Overproduction Waste
• Inventory Waste
• Motion Waste
• Transportation Waste
• Over-processing Waste
• Defects Waste
• Waiting Waste
• Underutilization Waste
5

What is Just-In-Time(JIT) ?
• JIT philosophy means getting the right quantity of goods at
the right place and the right time
• JIT exceeds the concept of inventory reduction
• JIT is an all-encompassing philosophy found on eliminating
waste
• Producing only what is needed, when it is needed (not early,
not late; not less, not more)
• Achieving high volume production using minimal
inventories
6

Attacks waste (anything not adding value to
the product)
Achieves streamlined production by
reducing inventory
Exposes problems and bottlenecks caused
by variability
What Does Just-in-Time Do?
7

Two important preconditions for
implementing JIT
• On time delivery of Supplier
• Long term supplier relationship.
8

Goals of JIT Production
The ultimate goal of JIT is a balanced system. (Achieves
a smooth, rapid flow of materials through the system)
JIT manufacturing therefore seeks to achieve the
following goals:
• Zero defects
• Zero set-up Time
• Zero Inventories
• Zero Handling
• Lot size of one
9
Central themes surrounding Just-in-time
– Simplicity
– Quality
– Elimination of waste

Waste
• Waste is anything that does not add value from the customer
point of view
• Storage, inspection, delay, waiting in queues, and defective
products do not add value and are 100% waste
• Other resources such as energy, water, and air are often
wasted
• Efficient, ethical, and socially responsible production
minimizes inputs, reduces waste
10

Waste is ‘anything other
than the minimum amount
of equipment, materials,
parts, space, and worker’s
time, which are absolutely
essential to add value to the
product.’
— Shoichiro Toyoda
President, Toyota
© 1995 Corel Corp.
Quotation by Shoichiro Toyoda
11

Sources of Waste
Overproduction: most serious waste because it discourages the smooth flow of
material and inhibits productivity and quality
Waiting: wastes time and money
Unnecessary transportation
Unnecessary Inventory: increases lead-times and costs
Inefficient work methods
Inefficient processing
Unnecessary motions: relates to poor ergonomics where operators have to
stretch, strain etc. This makes them tired
Product defects: Defects are caused by poor processes
12

Waste in Operations (1 of 3)
13

14

15

Small-Lot Production
16
Requires less space & capital investment
Moves processes closer together
Makes quality problems easier to detect
Makes processes more dependent on each
other

Benefits of Small Lot Sizes
Reduces inventory
Less storage space
Less rework
Problems are more apparent
Increases flexibility
Easier to balance operations
17

 Traditional: inventory exists in case problems arise.
Inventory was viewed as assets.
 JIT objective: eliminate inventory
 JIT requires
Small lot sizes
Low setup time
Containers for fixed number of parts
 JIT inventory: Minimum inventory (raw material, WIP
and finished goods) to keep the system running.
Inventories
18

The Pull System
19
 Material is pulled through the system when
needed
 Reversal of traditional push system where
material is pushed according to a schedule
 Forces cooperation
 Prevent over and underproduction

Reducing Waste: Push versus Pull System
Pull = Made to order
Push = Made for inventory
20

Push System
• Every worker maximizes own output, making as
many products as possible
• Focuses on keeping individual operators and workstations
busy rather than efficient use of materials
• Volumes of defective work may be produced
• Throughput time will increase as work-in-process
increases
• Line bottlenecks and inventories of unfinished products
will occur
21

Pull System
• Production line is controlled by the last operation,
• Controls maximum WIP and eliminates WIP
accumulating at bottlenecks
• Keeps materials busy, not operators. Operators work only
when there is a signal to produce.
• Throughput time and WIP are decreased, faster reaction to
defects and less opportunity to create defects
22

Summary: Just-In-Time Production
• Management philosophy
• “Pull” system though the plant
WHAT IT IS
• Employee participation
• Industrial engineering/basics
• Continuing improvement
• Total quality control
• Small lot sizes
WHAT IT REQUIRES
• Attacks waste
• Exposes problems and bottlenecks
• Achieves streamlined production
WHAT IT DOES
• Stable environment
WHAT IT ASSUMES
23

Total Quality Control
• Internal customer concept : In traditional concept,
customer is a person outside the company who
buys and uses the products and services. JIT
companies adds the concept of immediate
customer (or internal customer) who is the next
person or department or process who uses or
further processes them. If each worker or
department sends defect free items to his
immediate customer, no defective final product will
be produced.
24

Total Quality Control
• Quality at source: Each employee is given the
responsibility for quality at his own work station.
They inspect their own work to ensure that the
defectives are not passed onto the next process. A
process called "JIDOKA" is brought into effect. Any
employee who senses that a process producing
defects or is about to go out of proper specification
has the authority and responsibility to stop the
process.
25

Benefits of JIT
26
1. Reduced inventory
2. Improved quality
3. Lower costs
4. Reduced space
requirements
5. Reduced lead times
6. Increased productivity
7. Greater flexibility
8. Reduced scrap and
rework
8. Better relations with
suppliers
9. Simplified scheduling and
control activities
10. Increased capacity
11. Increased equipment
utilization
12. Better use of human
resources
13. More product variety
14. Reduced need for
indirect labor

JIT and material requirements planning (MRP)
• Material requirements planning (MRP) - A methodology for
defining the raw material requirements for a specific item,
component, or sub-assembly ordered by a customer, or
required by a business process.
• MRP systems will usually define what is needed, when it is
needed, and by having access to current inventories and pre-
existing commitment of that inventory to other orders to
other customers, will indicate what additional items need to
be ordered to fulfill this order.
27

Requirements for MRP
Effective use of MRP requires that the operations
manager should know the:
• Master production schedule (What is to be made and
When)
• Specification or Bill of Material (Materials and parts
required to make the product)
• Inventory availability (What is in stock)
• Purchase order outstanding (What is in order), and
• Lead time ( How long it takes to get various
components)
28

Three Elements of JIT
• JIT manufacturing focuses on production system to
achieve value-added manufacturing
• TQM is an integrated effort designed to improve
quality performance at every level
• Respect for people rests on the philosophy that human
resources are an essential part of JIT philosophy
29

Toyota production system (TPS)
Other names of this systems are as follows-
• Modular production system
• Compact work team
• Self directed work team
• Flexible work groups
• Cellular production system
30

Features of Toyota Production System
 TPS is a Japanese developed system.
 This is a team concept & need highly trained operators.
 Multi-skilled operator to perform multi-function is compulsory in
this system.
 Workers work at standing position.
 All the machines must be of high performance.
 Height of the machines is more those are used in this system.
 This system is run by 4 to 15 operators.
 Each operator performs more than one operation.
 Each operator works with more than one machine.
 Skilled supervision is essential to handle any technical problem.
 Regular team meeting is must to promote & exchange information.
31

Advantages of Toyota Production System
Higher productivity
Improved Product Quality
High flexibility
Fast throughput times
Low wastages
Reduced Absenteeism
Reduced Repetitive Motion
Increased employee ownership of the production
process
Empowered employees
32

Disadvantages of Toyota production system
• A high capital investment is required
• High investment in initial worker training
• High cost incurred in continued training
• Higher maintenance cost
• Skilled supervision is essential
33

Just-In-Time, TPS, and Lean Operations
• JIT is a philosophy of continuous and forced problem
solving via a focus on throughput and reduced inventory
• TPS emphasizes continuous improvement, respect for
people, and standard work practices
• Lean production supplies the customer with their exact wants
when the customer wants it without waste
• JIT emphasizes forced problem solving
• TPS emphasizes employee learning and empowerment in an
assembly-line environment
• Lean operations emphasize understanding the customer
34

'WORK-IN-PROGRESS (WIP)'
• Also referred to as Work in process, Goods in process, or in-
process inventory
Material that has entered the production process but is not yet a
finished product.
Work in progress (WIP) therefore refers to all materials and
partly finished products that are at various stages of
the production process. WIP excludes inventory of raw
materials at the start of the production cycle and finished
products inventory at the end of the production cycle.
Just-in-time (acronym: JIT) production is a concept to reduce
work in process with respect to a continuous configuration of
product.
35

Limited Work in Process
• Benefits
• Lower carrying costs
• Less space
• Increased flexibility
• Aids scheduling
• Saves cost of rework and scrap
• Two general approaches
• Kanban – focuses on individual work stations
• Constant work in process (CONWIP) – focuses on the system as
a whole
36

5S: Workplace organization/Housekeeping
5s: Important part of Kaizen/Lean Manufacturing
37
• The 5S concept has its origin in Japan (first within Toyota) in the later part
of 20th century.
• 5S, the brainchild of Hiroyuki Hirano from Japan, is widely considered as
being the basis for Lean Manufacturing as it is concerned with stability and
standardization to bring about improved safety, quality, delivery
performance and cost control.
– The 5S Principles
1. SEIRI : Sorting
2. SEITON: Systematic arrangement/ Set in order
3. SEISO: Super clean/ Shine
4. SEIKETSU: Standardize
5. SHITSUKE: Sustain

What are the 5S's?
5S is a systematic approach to workplace organization. The 5S's are:
S-1: Sort (Seiri) - sort out what is needed and get rid of what isn't
S-2: Set in order (Seiton) - a place for everything and everything in its place
S-3: Shine (Seiso) - clean and maintain so always looks like the photo
S-4: Standardize (Seiketsu) - make it the standard and instill discipline
S-5: Sustain (Shitsuke) - audit the system and improve it (start again)
Schematic diagram of 5S
38

The 5's stand for
• Seiri - keep only what is absolutely necessary, get rid of
things that you don't need, i.e. simplify or sort. when in
doubt, throw it out
• Seiton - create a location for everything, i.e. organize
or straighten.
• Seiso - clean everything and keep it clean, i.e. cleanliness
or sweep. clean daily
• Seiketsu - implement Seiri, Seiton and Seiso plant wide,
i.e. standardize. remove variations from processes
• Shitsuke - assure that everyone continues to follow the
rules of 5S, i.e. stick to it or self discipline.
39

“SHITTKARI”
which means Security
40
5S + 1S (Safety) = 6’S
5S + 2S (Safety and Spirit) = 7’S

• Reduce non-value adding activity
• Reduce mistakes from employees and suppliers
• Reduce time for employee orientation and training
• Reduce search time in navigating the facility and locating tools,
parts and supplies
• Reduce parts stored in inventory, and associated inventory
carrying costs
• Reduce unnecessary human motion and transportation of goods
• Improve floor space utilization
• Improve employee safety and morale
• Improve product quality
• Extend equipment life through more frequent cleaning and
inspection
42
Why 5-S you can apply in your organization?

Six Sigma Concept
• Introduced by Motorola in the mid-1980’s
• Purpose: to improve the performance process to
where defects rate was 3.4 per million or less.
• Designed for high volume production settings.
43

Basic Information on Six Sigma
• The target for perfection is the achievement of no
more than 3.4 defects per million opportunities.
• The principles can apply to a wide variety of
processes.
• Six Sigma projects normally follow a five-phase
improvement process called DMAIC.
44

Six Sigma Quality: DMAIC Cycle
45
1. Define (D)
2. Measure (M)
3. Analyze (A)
4. Improve (I)
5. Control (C)
Customers and their priorities
Process and its performance
Causes of defects
Remove causes of defects
Maintain quality
Control
Improve
Analyze
Measure
Define

DMAIC
• DMAIC stands for:
• Define: Define the problem/opportunity, process, and
customer requirements.
• Measure: Gather information on the current system
• Analyze: Scrutinize process details to find improvement
opportunities.
• Improve: Generate solutions and ideas for improving the
problem.
• Control: Track and verify the stability of the improvements
and the predictability of the solution.
46

How Do Lean & Six Sigma Blend
• Both aim to reduce operational costs
• Lean reduces waste in the process then Six Sigma
creates consistency to reduce your defect rate
• Together they add both efficiency and effectiveness
to a process
• Generally “lean” a process first then apply six
sigma tools
47

Six-Sigma Methodology
• Uses many of the same statistical tools as other
quality movements
• Used in a systematic project-oriented fashion through
define, measure, analyze, improve, and control (DMAIC)
cycle
• More detailed version of Deming PDCA cycle
• Continuous improvement: seeks continual
improvement in all aspects of operations
• Also uses scientific method
48

Deming Wheel: PDCA Cycle
49
1. Plan
Identify
problem and
develop plan
for
improvement.
2. Do
Implement
plan on a test
basis.
3. Study/Check
Assess plan; is it
working?
4. Act
Institutionalize
improvement;
continue
cycle.

PDCA Cycle repeated to create continuous improvement
50
Time
Performance
“Continuous”
improvement
Plan
Do
Check
Act

Six Sigma
Methods Production
Design
Service
Purchase
HRM
Administration
Quality
Depart.
Management
M & S
IT
Where can Six Sigma be applied?
51

Six sigma example
Manufacturing unit : Paint manufacturing unit, Pune.
Process : One of the machines, where the liquid
paint used to get uniformed by rolling a heavy roller
on the base of a metal sheet and then the liquid used to
get collected in a big bucket kept at one end. It was very
simple to see.
Problem :While rolling the roller over the paint, few
drops of that expensive paint used to drop down
on the floor, which were later cleaned up by the
machine operator without knowing he was
actually wasting the expensive paint.
52

Six sigma example
After applying Six Sigma Methodology DMAIC
properly, we decided to make some
modifications in the machine to save those
drops being wasted. We wrapped a plastic paper
around the machine. We also slower the speed of
the roller and trained the operator to change
his practice of the activity. We also collected data of
how many drops were being wasted until
that under different circumstances
53

Six Sigma example
The drop count went up to 72 lacs for a year.
In other words, Six Sigma helped the
company to save 72 Lacs of drops of the
expensive paint. Each drop was
containing around 3-4 ml of paint. Further,
when we calculated the projected savings,
the amount went to INR 11 Lacs for a year
54

TQM (cont.)
• Total - made up of the whole
• Quality - degree of excellence a product or service
provides
• Management - act, art or manner of planning,
controlling, directing,….
Therefore, TQM is the art of managing the whole to
achieve excellence.
56

What’s the goal of TQM?
Two main goals:
58
(1) total client satisfaction through quality
products and services; and
(2) continuous improvements to processes,
systems, people, suppliers, partners, products, and
services.
“Do the right things right the first
time, every time.”

Measurement
Measurement
Measurement
Measurement
Empowerment/
Shared Leadership
Process
Improvement/
Problem
Solving
Team
Management
Customer
Satisfaction
Business
Results
The Continuous Improvement Process
59

Commitment to quality throughout organization
 Principles of TQM
1. Customer-oriented
2. Leadership
3. Strategic planning
4. Employee responsibility
5. Continuous improvement
6. Cooperation
7. Statistical methods
8. Training and education
Principles of TQM
60

Objectives of TQM
1. Customer needs, not production, are focus
2. The system becomes more horizontal with everyone working towards
a single goal, to serve the customer.
3. Every one is considered in decision-making.
4. Employee empowerment and responsibility replace rigid policies and
procedures.
5. Cooperation across function is frequent.
6. Team takes on some of the roles of departments.
7. Workers are cross-trained and their jobs are more flexible.
61

The philosophy of Total Quality Management is evolved, with the
change in market conditions and customer requirements time to
time.
Quality & Inspection --- Quality Control ---
Quality Approval by audits --- Total Quality Control ---
Quality Improvement--- Quality Assurance ---Total Quality
Management.
62

TQM IN APPAREL PRODUCTION
(FROM RAW METERIALS TO FINISHED GOODS)
• Quality related problems: sewing, color, sizing, or garment defects should
never be over looked.
• Sewing defects: Open seams, wrong stitching techniques, non- matching threads,
missing stitches, improper creasing of the garment, improper thread tension etc. are
some of the sewing defects.
• Color defects: Variation of color between the sample and the final garment,
wrong color combinations and mismatching dyes.
• Sizing defects: Wrong gradation of sizes, difference in measurement of various
parts of a garment like sleeves of XL size for body of L size garment can deteriorate
the garments beyond repair.
• Finished garment defects: Broken or defective buttons, snaps, stitches, different
shades within the same garment, dropped stitches, exposed notches, fabric defects,
holes, faulty zippers, loose or hanging sewing threads, misaligned buttons and holes,
missing buttons, needle cuts, pulled or loose yarn, stains, unfinished button hole,
short zippers, inappropriate trimmings etc. all can lead to the end of a brand name
even before its establishment.
63

Methods of quality control in Apparel Production
• Basically two methods are used for garments quality
control –
a) Testing
b) Inspection.
• Quality Control System is followed by all concerned
in the company from piece goods inspection to the
final statistical audit.
64

Methods of quality control in Apparel Production (cont.)
• (1) Piece goods quality control: On receipt of fabrics in the
warehouse, at least 10% are inspection as per “4 Points”
system/10 Points system/2.5 Point system/6.0 Point system.
The most commonly used 4 Points system as per below -
SIZE OF DEFECT PENALTY
 3 Inches or less 1 Point
 Over 3, under 6 Inches 2 Point
 Over 6, under 9 Inches 3 Point
 Over 9 Inches 4 Point
 Normally fabric roll containing 40 points per 100 square yard are
acceptable
65

B) After cutting quality control: After
each cutting blocks and bundles are
checks on the following points.
I. Miss cut
II. Ragged cutting
III. Pattern checks
IV. Matching Plies
V. Notches
• (2) Cutting quality control: In cutting section quality is insure
in two stages.
A) Spreading quality control: Following the point are
checked during spreading
I. Table marking.
II. Ends
III. Tension
IV. Leaning
V. Narrow Goods
VI. Counts
VI. Ply height
VII. Remnants (loose ends)
VIII. Fabric flaws
IX. Marker placing
66

• (3) In process quality control (Sewing): During the sewing “In process quality control” is
done by the line QC’s through 7 pcs inspection system. For critical operations 100% process
inspection are carried out. The following parameters are also checked in sewing process –
a) Machine check.
b) Tension.
c) SPI checks
d) Needle check.
e) Cleanness.
d) Table inspection.
f) Inspection before wash.
• (4)Washing section
a) Garments handling
b) Wash standard.
c) After wash thoroughly inspection.
67

• (5)Quality control of finishing sections: Following inspection/audit is
done to attain AQL (1.5/2.5/4.0 etc).
a) Process inspection: Garments are checked process wise in the finishing
section to identify defects and pass only the past garments.
b) Two hourly audit: Every after two-hours audit is done on finishing lot to
attain AQL the required AQL.
c) Days final audit: At the end of the day accumulated lot of finished
garments are statistically audited to attain required AQL.
d) Lot final audit: On completion of packing of one complete lot of
garment, QA manager conduct statistical audit based on required AQL
garments. Garments are offered for final inspection by buyer /clients for
shipment only when these are through in this audit.
68

• The following parameters are also checked in sewing process –
a) After wash garments must be keep in the box / table covering.
b) Thread sucking.
c) Iron inspection.
d) Measurements inspection.
e) Poly inspection of top of garments.
f) Inspection before cartooning.
• (6) Testing (Lab test):
a) Shrinkage test
b) Color fastness test
c) Azo-free test.
69

Quality is an endless journey not destination.
TQM aim’s at zero defects, Zero breakdowns and Zero
losses in each functional areas.
Implementation phases of TQM in Apparel:
70

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