2. It is said that progress is achieved by the
unreasonable man …
2
3. A LEAN process
is one which is
‘FREE OF WASTE’,
‘CONSISTENT and ERROR FREE’,
CONTINUALLY IMPROVING
and delivers
‘COMPLETE CUSTOMER SATISFACTION’
each and every time.
We get you there…
3
4. Management Programs
1. Theory of Constraints - TOC
2. Material Requirements Planning-MRP
3. World Class Manufacturing – WCM
4. Total Quality Management – TQM
5. Demand Driven Manufacturing – DDM
6. Best-in-Class Manufacturing – BICM
7. Enterprise Resource Manufacturing – ERP
8. ISO-9000Supply Chain Management – SCM
9. Six Sigma
10. Customer Relationship Management - CRM
Caused
CONFUSION
4
5. LEAN –
Simple , Workable, Radical
• Simple
– Shop floor oriented –not Lap Top
– Everyone can relate – not like ERP
– Makes the shop floor transparent – management by walking around ,
not computer
• Workable
– For the individual-how to do your OWN work better ,
– right across the hierarchy from Helper to Head.
– Promotes team work
• Radical
– Many small achievements across the Manufacturing chain add up to
RADICAL Results on…
– Quantum jumps in Morale, Quality, Delivery , Productivity, Reliability,
Cleanliness
5
6. • What is LEAN ?
– LEAN is the removal of FAT.
• What is FAT ?
– FAT is NON VALUE ADDING substance
• What is NON VALUE ADDING substance ?
– Non Value Adding activity is WASTE
6
7. So, what’s new ?
• Fact of the matter is , in traditional manufacturing
processes, we are
– CREATING WASTE ,
– ACCEPTING WASTE ,
– PERPETUATING WASTE
without realizing it.
7
8. Two objectives
1. To see and identify WASTE like you have
never done before.
2. Continually improve to remove this waste
8
10. Doing MORE for the CUSTOMER
1. Delivery
1. Shorter lead times
2. Increased flexibility
3. Consistency in delivery on promise
4. Spread out deliveries
5. Improved system for Promised delivery at time of booking
2. Quality
1. Improvement in intrinsic quality
2. Beyond standards - Quality which works for the customer
3. Consistency over time and across supplies
Delighted CUSTOMER
10
11. With LESS
1. Inventory
1. Reduction up to 50% in inventory
2. Shorter manufacturing lead time
3. Shorter ordering lead time – more realistic, less forecast
2. Cost
1. Higher yields due to more transparency on the shop floor
2. Lower rejects
3. Space
1. Less space requirement due to lower inventory
2. Lower Capital for expansion
3. Drastic improvement in Cleanliness and Housekeeping
4. Morale
1. Less frustration , more energy and enthusiasm in the work force
Gives more negotiating power to Marketing , better prices, TOP
more profits
Delighted BOSS
11
13. Delight all around
Delighted CUSTOMER
and a
Delighted BOSS
is a
Delighted YOU
and a
Delighted TEAM
M
O
R
A
L
E
13
14. The 2 pillars
1. Empathy for the
Customer
2. Removal of waste,
CONTINUALLY
LEAN
14
15. Methodology
1. Process is a sum total of value adding (VA)and
non-value adding (NVA) activities.
2. In traditional Business Practices , NVA activities
constitute a large proportion of time and costs.
3. Lean Manufacturing, through its Methodology,
helps to identify these NVA’s and then
reduce/eliminate them.
4. Improvement in motivation and morale through
participation and team work are an integral part
of the process.
What is this Methodology ?
15
16. The Driving force of LEAN
Every employee must have Customer driven actions and targets as
part of his objectives.
CUSTOMER
Quality , Delivery, Consistency , Service
16
17. The Backbone of LEAN
Inventory reduction with simultaneously
elimination of wasteful activities ( NVA)
WIP
WIP
WIP
WIP
WIP
WIP
WIP
WIP
WIP
WIP
WIP
WIP
WIP
WIP
WIP
WIP
WIP
WIP
WIP
WIP
WIP
WIP
WIP
WIP
WIP
WIP
WIP
WIP
WIP
WIP
WIP
WIP
W
A
S
T
E
(NVA)
17
18. Value stream
• MCE – Manufacturing Cycle Effectiveness
• VA/(VA+NVA) – Typical 5% to 30%
P1 P5 P6P4P2 P3
P
1
P
5
P6P4
P
2
P3
18
19. Start - RI in yard
Scalping 0.25
Preheating 12
Hot Rolling 0.17
Cold Mill 0.75
Annealing 8
Finishing line 2
Packing 1
Total hrs 24
Total days 1.01
Normal cycle time days 10
MCE ( Manufacturing cycle effectiveness) 10%
Gap days 8.99
Gap hrs 216
36 36
24 24
0
16 16
24 24
30 8 38
24 24
46 46
8 8
0
160 48 8 216
Waiting Cooling Insp. Total
19
21. I see…..
– Quality issues
– Inconsistency in process
– Breakdowns
– Poor planning
– Logistics
– Poor skills
– Absenteeism
– Batching – producing out of turn
– Waiting
– Capacity mismatches /misutilization of equipment
Poor Quality
Breakdowns
Capacity
21
22. Inventory
• Inventory is the sum total of all inefficiencies
in the system .
Inventory hides problems
Hidden
problems
Inventory
22
23. Inventory
• Lowering of inventory exposes problems ,
which when sorted out improve the system.
Operating with lower inventory means
operating with lower problems
Hidden
problems
23
27. Traditional vs LEAN
• Inventory – asset , liability
• Waiting time – cannot be helped, waste
• Problems – irritants , opportunities in disguise
• Batching – as large as possible, as small as
possible tending towards single
• Over production – efficient , crime
• Motion – cannot be helped, minimize / avoid
27
28. Applicability
• LEAN concepts are applicable to all
PROCESSES , not necessarily manufacturing.
Eg
– Marketing
– Financial
– Customer service
– Design
– Monitoring and Control systems
28
29. Innovation
• Innovation is the key to finding new and
simple solutions to problems.
• Innovation becomes a mass movement with
LEAN.
• Use CREATIVITY , not CAPITAL
29
30. LEAN and ERP
• ERP justified on inventory reduction.
• Has it really delivered ?
• It cannot , unless the physical process ( which
is the limiting process) changes.
• LEAN is that change
• LEAN + ERP can do wonders to your Customer
service, quality, costs , volumes.
30
31. LEAN and ISO
• LEAN will strengthen your ISO journey.
• Tools like Pokayoke ( Fool proofing) sit atop
your SOP’s and make them consistent and
error free.
• Every time an error occurs, Tools like CI and
Why-why help to identify root cause , find a
solution and then use Pokayoke to implement
it.
31
32. Vision this….
• A clean shop floor .
• Low inventory .
• A very well organized shop floor
• Straight , clean passages. No spill-overs .
• No coils with dust on them .
• A delighted customer.
• A happy Marketing guy.
• A lot of back slapping for additional orders from preferred
customers.
32
33. Motivation
• Today there is a misconception that employees
are well paid and hence they should be self
motivated.
• Motivation is a part and parcel of every mangers
primary daily duties.
• Motivation can deliver amazing results .
• Routine work , though inevitable, can get dull.
• Hence good , interesting interventions bring in
new challenges and provides avenues for
recognition, motivation and growth .
33
34. Become a LEAN Do’er
1. Passion to serve the customer
2. Mining problems is mining opportunities to
improve –
3. Listen to your customer
4. Reduce waste – waiting, searching, movement,
rework, production out of turn,
5. Adopt unitary flow process as opposed to batch
processing
6. Error proof processes.
7. Educate ,Train and Motivate your people
34
35. UNIQUE OFFERING
of
Knowledge +Experience
Tested in your environment
Proven in your environment
Domain knowledge
Cast House – Taloja, Hirakud
Rolling shop – Taloja
Foil Rolling – Hyderabad
BMRTH administration
Look forward to working with you …..
35
37. Taloja Cast House – 1980
Situation before
• Emphasis on fuel efficiency
• Large quantity of scrap on floor
• Frequent problem of mix up
• Difficulty to access wanted scrap
• Scrap dumping on floor to feed HM with boxes
• Order for 50 additional boxes
37
43. Net effect ...
• Supplying slabs in time
• Order for 100 scrap boxes cancelled
• 50 boxes from existing stock removed
• Scrap mix up eliminated
• Remelt was pulling scrap from sheet Mill
• Housekeeping improved
• Dead stock of Off comp RI came down
43
44. 30 T
Roughing
30 T
Finishing
Roll
change
Roll
change
10 T
Roughing
Roll
change
Roll
change
10 T
Finishing
Roll
change
10 T
Roughing
Roll
change
10 T
Finishing
Roll
change
10 T
Roughing
Roll
change
Roll
change
10 T
Finishing
Annealing Annealing
Annealing
4 days
1 day
Before
After
Foil Mill - Hyderabad
44
45. Hirakud Cast House 2 - 2010
• Before
– Production – 3000 tpm
– 2 customers Taloja and Belur for Foilstock slabs –
always a fight for supplies
• After
– Both customers serviced every week
– Daily feedforward and feedback system
– Production – 4000 tpm
45
46. Pokayoke
• Pokayoke is one of the most powerful tools in
the LEAN arsenal to reduce errors to such a
low level that they become virtually non-
existent .
• It is one of the most cost effective ways of
achieving consistency in quality.
• The principles can be applied to all
manufacturing processes.
46
47. Pokayoke ( Fool-proofing)
• We are only human
• Errors are expected to happen while carrying out a job, due to
factors such as
– Varying levels of skills
– Emotional condition of the operator
– Condition of the equipment
– Lack of process discipline
– Etc
• In the interest of consistency and repeatability it is therefore
necessary to build in safeguards so that
– these errors do not occur under normal circumstances
– Process throws up alerts in case errors do occur
47
48. Classic examples
• Debit – Credit practice in double entry
accounting system.
• Child lock in cars.
• In OH cranes , brakes are normally in locked
condition.
48
49. Pokayoke – Off casts eliminated
Situation before
1. Scrap mix up due to high inventory, Paint used for colour identification, Mix up in Storage ,No control while
charging
Quality objective
1. Achieve chemical composition of rolling slabs within specified limits.
SOP / Pokayoke
1. Scrap inventory will be maintained at low levels .
2. Scrap will be identified at point of generation by Coloured stickers as per Chart.
1. Supervisor will ensure that appropriate stickers are available at machine centre
2. In case of alloy change , he will ensure that earlier alloy scrap is segregated / removed from machine centre.
3. All scrap boxes will be identified by appropriate alloy sticker.
1. Alloy Identification board will be put on box before scrap is loaded.
4. Scrap with different identification stickers / Unidentified scrap will not be charged. – charge preparator,
furnace operator . After charge is arranged for charging in front of the furnace , it will be physically
inspected by the shift supervisor for suspected mix up.
5. Scrap will be stored in designated areas for each alloy. Designated places will ensure that magnesium
bearing alloys are not stored in vicinity of Silicon bearing alloys.
6. On-comp scrap consumed in initial charges , and last charge used only primary scrap for reducing
contamination.
1. SOP Rev 1 .
1. On ………. Date , one cast of A….. was off cast due to contamination of Mg .
2. Root cause analysis : 1. CM scrap was charged. 2. Helper who had cleaned the basement was new and
untrained.
3. SOP Rev :
1. CM scrap will always be identified as mixed .
49
51. Set up times - SMED
• Manufacturing has long migrated from numerous, small capacity ,
manually operated, low cost machines to single, high
capacity, capital intensive automated ones.
• In such a situation, quick set ups play a vital role in
meeting customers’ multi product demands.
• Unfortunately , this is an aspect rarely taken care of.
• Great opportunity for Kaizen.
• Set ups may require extra manpower over and above
operating manpower.
240
540
360
75
3 9 10 3
0
100
200
300
400
500
600
Bf Af
Toyota 1000Tpress Yanmar machining line
Mazda gear cutter Hitachi Die casting mc
M1A M1CM1B
Mn
P1A,B,C
P1A,
B,
C
51
52. Reduction in waiting time - cooling
Cooling of Hot Rolled coils
Cooling time reduced from 24/36 hrs to 8/12 hrs
52
53. Rhythm
• Rhythm is important for control.
• Annual > Quarterly > Monthly > Fortnightly >
Weekly/Periodically > Daily > per Shift > per hour
• Rhythm frequency depends on Cycle time .
– Min = per hour
– Hrs = Daily
– Days = Weekly
– Week = Monthly
• Reduction in cycle time helps to bring RHYTHM
into the manufacturing cycle – better control ,
better everything.
53
