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Session 1 2

  1. 1. 08-01-2014 1 Introduction to Lean Manufacturing Trainers: Priyank Tewari and Shashank Sharma 2 What is Lean Manufacturing? • A systematic approach to the identification and elimination of all forms of waste from the production process • Lean concepts were initially developed and implemented by the Toyota Motor Corporation 1
  2. 2. 08-01-2014 3 What is Lean Manufacturing? • In simple words, it is a methodology that reduces your costs by eliminating wastes in your production processes and increases the profit margin and the morale of your enterprise • Techniques like: 5S, JIT, KANBAN, KAIZEN, POKA YOKE, SOP, 6-Sigma 4 Overview of Lean Management • The purpose of lean is to remove all forms of waste from the value stream. ▫ Waste includes cycle time, labor, materials, and energy. • The chief obstacle is the fact that waste often hides in plain sight, or is built into activities. 2
  3. 3. 08-01-2014 5 “If LEAN MANAGEMENT principles are applied to Manufacturing, it is called LEAN MANUFACTURING” 6 4 basic principles of Lean Management 1. Elimination of Waste: eliminate any activities that do not add value in an organization. Includes overproduction, waiting time, processing, inventory, and motion. 2. Increased Speed and Response: better process designs allow efficient responses to customers needs and the competitive environment. 3. Improved Quality: Poor quality creates waste, so improving quality is essential to the lean environment. 4. Reduced Cost: simplifying processes and improving efficiency translates to reduced costs. 3
  4. 4. 08-01-2014 7 Concept of Friction, Waste, or Muda “Understanding of friction, waste, or muda is the foundation of the lean Manufacturing” 8 7 type of wastes in Manufacturing 1. 2. 3. 4. 5. 6. 7. Transportation (between workstations, or between supplier and customer) Inventory Motion Waiting, including time in queue Over-production Over-processing: Non-value-adding activities Defects: Cost of poor quality, scrap, rework, and inspection 4
  5. 5. 08-01-2014 9 TIM WOOD! 10 An 8th waste has also been identified • Un-utilized or under-utilized talent • Arises when companies do not involve all of their employees in continuous improvement 5
  6. 6. 08-01-2014 11 Waste Often Hides in Plain View • We cannot eliminate the waste of material, labor, or other resources until we recognize it as waste. ▫ A job can consist of 75 percent waste (or even more). • People become used to "living with it" or "working around it." 12 Demonstration of waste • The solution is obvious in retrospect, but first, we have to understand that there is waste (or a problem). • Building a wall • Cleaning dirty parts 6
  7. 7. 08-01-2014 13 “Waiting” waste – A golf analogy • In a four hour golf game, the golf club is in contact with the ball for less than 2 seconds ▫ The same proportion of value-adding to nonvalue-adding time prevails in many factories. • Additional analogies: ▫ Waiting for other players = waiting for tools ▫ Walking = transportation ▫ Selecting a club and addressing the ball = setup 14 7
  8. 8. 08-01-2014 15 7 type of wastes in Services 1. Delay: Customers waiting for service 2. Duplication: Re-entering data or repeating details 3. Unnecessary Movement: poor ergonomics while delivering the service 4. Unclear communication: Excessive clarification or communication over use of the service 5. Incorrect Inventory: Out of stock 6. Opportunity lost: Lost customers which now have to be retained 7. Errors: Transaction errors, lost/damaged goods 16 What do Manufacturing greats say about waste? "I believe that the average farmer puts to a really useful purpose only about 5 per cent. of the energy he expends. … Not only is everything done by hand, but seldom is a thought given to a logical arrangement. A farmer doing his chores will walk up and down a rickety ladder a dozen times. He will carry water for years instead of putting in a few lengths of pipe. His whole idea, when there is extra work to do, is to hire extra men. He thinks of putting money into improvements as an expense. … It is waste motion— waste effort— that makes farm prices high and profits low" --- (Henry Ford, 1922, My Life and Work). 8
  9. 9. 08-01-2014 17 Eliminating waste can lead to reduced costs and better bottom line or profit margins • Exercise <insert case study> 18 Industrial Sector faces problems related to production and processes 1. Production with defects 2. Wastage in the use of resources 3. Bad product quality 4. De-motivated employees 5. High yields on expense of customer satisfaction 9
  10. 10. 08-01-2014 19 Manufacturers are always worrying! 1. Transport 2. Inventory 3. Motion 4. Waiting Manufacturers have to constantly worry about eliminating these wastes! 5. Overproduction 6. Over Processing 7. Defects 20 Why should Manufacturers worry? 1. This leads to high cost of production which greatly impacts the profit margins 2. Big manufacturing enterprises like Railways, Maruti, Tata Motors, JCB etc. want only high quality, zero defect products to be sourced from the MSMEs 3. Foreign players coming due to FDI will only purchase products from companies which have the most sound production processes 4. Competition is becoming increasingly fierce and there is no room for errors or wastes in your production processes 10
  11. 11. 08-01-2014 21 What are the benefits of Lean Manufacturing? 1. Improved profit margins and reduced costs 2. Improved quality and fewer defects 3. Reduced Inventory 4. Space requirement decreases 5. Enhanced overall manufacturing flexibility 6. Makes continuous improvement possible 7. Creates safer working environment 8. Improves employee morale 22 Green Lean Manufacturing • "…we will not so lightly waste material simply because we can reclaim it—for salvage involves labour. The ideal is to have nothing to salvage." —Henry Ford, Today and Tomorrow • Pioneered by Henry Ford in the 1900’s 11
  12. 12. 08-01-2014 23 Ford's Green Manufacturing • Recovery and reuse of solvents • Distillation of waste wood for chemicals yielded enough money to pay 2000 workers. ▫ Kingsford charcoal • Design of parts and processes to minimize machining waste • Reuse of packaging materials • Slag paving materials and cement 24 Identification of Material and Energy Wastes • Material and energy waste can easily be built into a job. • Elimination of these wastes is central to "green" manufacturing and the ISO 14001 standard and, more importantly, very profitable. • We cannot, however, remove this waste before we identify it. 12
  13. 13. 08-01-2014 25 Discussion • Do you know of processes in which materials are thrown away (or recycled)? ▫ If so, can the process or product be redesigned to reduce the waste? ▫ Could the discarded materials be reused or recycled in some manner? • Can energy-intensive processes be made more efficient? 26 power source regeneration 13
  14. 14. 08-01-2014 27 Lean Manufacturing Tools & Techniques 28 5S - CANDO • 5S-CANDO, a systematic approach to cleaning and organizing the workplace, suppresses friction. • Seiri (Sort)= Clearing up ▫ "When in doubt, throw it out." • Seiton (Set in order)= Organizing (Arranging) ▫ "A place for everything and everything in its place." • Seiso (Shine)= Cleaning (Neatness) • Seiketsu (Standardize)= Standardization (Ongoing improvement, holding the gains) • Shitsuke (Sustain)= Discipline 14
  15. 15. 08-01-2014 29 Visual Control • "Basically, the intent is to make the status of the operation clearly visible to anyone observing that operation" (Wayne Smith, 1998). • "Visual controls identify waste, abnormalities, or departures from standards" (Caravaggio, in Levinson, 1998) 30 Examples of Visual Control • 5S-CANDO (arranging) • Jidoka or automation ▫ Andon lights and buzzers announce tool status. • JIT: kanban squares, cards, containers. ▫ Lines on the floor to mark reorder points • Safety: colored labels for materials • Statistical process control charts: should be clearly visible. 15
  16. 16. 08-01-2014 31 Visible Management • A visible production management system should indicate: (1) What the operation is trying to make Measure the takt rate, or desired production per unit time. (2)What the operation is achieving (3)What problems hinder the production goal? 32 Just in Time (JIT) system • In a pull system, employees at a given operation (work station) go to the source of the required parts, such as machining or subassembly, and withdraw the units as they need them. • By pulling parts from each preceding workstation, the entire manufacturing process is synchronized to the final-assembly schedule. • Finished goods are made to coincide with the actual rate of customer demand, resulting in minimal inventories and maximum responsiveness. 16
  17. 17. 08-01-2014 33 Just in Time (JIT) system • JIT systems are sometimes called a Kanban system. • A kanban is a flag or a piece of paper that contains all relevant information for an order. • Slips, called kanban cards, are circulated within the system to initiate withdrawal and production items through the production process. • The Kanban cards are simple visual controls. 34 Small Batch and Single-Piece Flow • Batching is the process of producing large quantities of items as a group before being transferred to the next operation. • Lean operating systems seek to reduce batch sizes using single-piece flow. • A transfer batch is part of the original batch (lot) size that is completed at one workstation and moved to the next downstream workstation. 17
  18. 18. 08-01-2014 35 Drawbacks of Batch Processing • Running equipment (e.g. a heat treatment furnace) at less than full load, wastes capacity. Waiting for a full load wastes time. ▫ Waste of capacity is not a problem except at a constraint operation (Goldratt's Theory of Constraints). • Batches introduce waiting time when they arrive at single-unit tools en masse. ▫ Batch-and-queue forces extra cycle time (waiting) into the operation. 36 Batch versus Single-Piece Flow Processing 18
  19. 19. 08-01-2014 37 Single-Unit Processing Reduces Cycle Time • Wayne Smith (1998) defines manufacturing cycle efficiency as (Value-adding time)/(Total cycle time) ▫ This is often less than 1 percent. ▫ Remember the Golf analogy: the club head is in contact with the ball for less than two seconds in a typical game. 38 Single-Minute Exchange of Die (SMED) 1. Internal setup requires the tool to stop. ▫ Reduce internal setup time, or convert internal to external setup. 2. External setup can be performed while the tool is working on another job. 3. SMED reduces cycle time by facilitating smaller lot sizes, mixed model production, and/or single-unit flow 19
  20. 20. 08-01-2014 39 Single-Minute Exchange of Die (SMED) • SMED refers to quick setup or changeover of tooling and fixtures in processes so that multiple products in smaller batches can be run on the same equipment. • Reducing setup time frees up capacity that can be producing output, and therefore, generating revenue. • Example: An Oil company reduced machine setup from 9.3 hours to 9 minutes! 40 Error-Proofing (Poka-Yoke) • Error-proofing makes it difficult or impossible to do the job the wrong way. • Slots and keys, for example, prevent parts from being assembled the wrong way. • Process recipes and data entry also can be errorproofed. 20
  21. 21. 08-01-2014 41 Lean Six - Sigma • Six Sigma and Lean concepts and methods are often combined into Lean Six Sigma • Both are driven by customer requirements • Both try to eliminate waste, reduce costs, speed things up, and improve quality • Both focus on real money savings • Both rely on a systematic methodology 42 Quality at source • Quality at the Source • Quality at the source focuses on doing it right the first time. • Continuous Improvement • Six Sigma compliments lean systems to assure high-quality output. 21
  22. 22. 08-01-2014 43 Total Productive Maintenance • TPM is focused on ensuring that operating systems will perform their intended function reliably. • TPM works to prevent equipment failures and downtime, maximizing equipment effectiveness and uptime. • TPM tries to predict equipment failure rates and perform maintenance before a problem arises. • The principles of TPM also include employee “ownership” of the equipment. 44 KAIZEN • Japanese word meaning ▫ Kai - gradual and orderly change, Zen for the better • involves everyone in the organization in small improvements using conventional knowledge and tools • without large capital investments. 22
  23. 23. 08-01-2014 45 KAIZEN • SDCA to PDCA – standardized work [Deming’s cycle] • Quality first ▫ If something can be improved, a measure must exist by which improvement can be quantified – quality characteristics • Upstream management • Speak with data • Variability control and recurrence prevention 46 Key Steps in Transforming a Company to the Lean Approach 1. Establish a steering team—conduct strategic planning session 2. Train the steering team and the model line team in the disciplines of lean 3. Perform PQR (product-quantity-routing) analysis 4. Identify value streams—select a value stream 5. Calculate model line takt time 6. Value stream map the model line—assemble current state map 7. Balance the line—assign standard work 8. Establish standard WIP (inventory levels) 9. Test the system (virtual cell)—document results 23
  24. 24. 08-01-2014 47 Key Steps in Transforming a Company to the Lean Approach 10. 11. 12. 13. 14. 15. 16. 17. Setup reduction event Conduct 5S event—apply TPM techniques Establish visual signals—reduce paperwork Explore alternative flow patterns Develop block layout Develop detailed layout Execute move Select next value stream and repeat 48 Lean Leadership • Three Models: 1. “Old” Dictator style: “Do it MY way” 2. The 1980’s “Empowerment” style: “Do it YOUR way” 3. “Lean” style: “Follow me and let’s figure this out together” 24
  25. 25. 08-01-2014 49 Summary • Business activities can contain enormous quantities of built-in waste (muda, friction). • The greatest obstacle to the waste's removal is usually failure to recognize it. • Lean manufacturing includes techniques for recognition and removal of the waste. • This delivers an overwhelming competitive advantage. 50 A journey of continuous improvement 25