203109245 lean-manufacturing (1)

1© PTU's Gian Jyoti School of TQM & Entrepreneurship
Lean Manufacturing
Vijay Kapoor – Principal Consultant
Naresh K Chawla - Sr. Consultant

Eli Whitney (Interchangeable parts)
Drawing conventions, Tolerances
Modern machine tool development
1850
1900
Fredrick Taylor (Standardized work, time study & work standards)
Frank Gilbreth (Process charts, motion study)
Henry Ford (Assembly lines, flow lines,
manufacturing strategy)
Deming & Juran (SPC, TQM)
1990
1950
Eiji Toyoda, Taiichi Ohno, Shigeo Shingo
Toyota production system, JIT
Stockless production, World class manufacture
Lean Manufacture
American
Civil War
World War I
World War II
History & EvolutionHistory & Evolution
Before 1850 Craft manufacturing

Govt. Policies
Global
Competition
Rising Cost of Input
(Raw material, Energy)
Accountability to
shareholders &
financers
Industry’s Concerns
Competency of
employees
Above all SUSTAINABLE
Improvement

• Create precise customer value
- goods and services with higher quality
and fewer defects
– with less human effort, less space, less
capital, and less time than the traditional
system of mass production.
• Remove ‘waste’
– Consume ‘just enough’ recourses
– Do more with less
Survival Kit

Defining Value and Waste
• Defining value - an item or feature for
which a customer willing to pay.
• Every thing else – waste
• Waste - activities that consume time,
resource and/or space but do not add
value.
• Lean - Production of product to meet
demand on daily basis with minimum lead
time & non value added activities
eliminated or minimized

Focus on Waste

Value Added Activity
• Test for value added activities
- Transforms product in some way
- Customer sees & willing to pay
- Will the customer know if eliminated

Overproduction
Waiting
Inventory
Transportation
Motion
Over Processing
Rework
11
66
77
55 44
33
22
To produce sooner,faster
or in greater quantities
than customer demand.
Raw material,
work in progress
or finished goods
which is not having
value added to it.
People or parts
that wait for
a work cycle to
be completed.
Unnecessary movement
of people, parts or
machines within
a process.
Unnecessary movement of people
or parts between processes.
Non right
first time.
Repetition
or correction
of a process.
Processing beyond
the standard
required by the
customer.
is the Japanese word for WASTE.MUDA
Seek it out and get rid!
1
2
34
5
6
7
An 8th waste
is the wasted
potential
of people
Seven Wastes

Eliminating Waste
7 steps
1. Reduce lead time
2. Cut operations costs
3. Improve business performance visibility
4. Speed time to market
5. Exceed customer expectations
6. Streamline outsourcing processes
7. Manage global operations

“Lean manufacturing is not a collection of best
practices from which manufacturers can pick
and choose. It is a production philosophy, a
way of conceptualizing the manufacturing
process from raw material to finished goods
and from design concept to customer
satisfaction. Lean is truly a different way of
thinking about manufacturing.”
- Running Today’s Factory: A Proven Strategy
for Lean Manufacturing, Charles Standard.
Lean manufacturing is a systems
approach

Comparison of lead timeComparison of lead time
Customer
Order
Waste Product
Shipment
Time
Customer
Order
Product
Shipment
Time (Shorter)
Business as Usual
Waste
Lean Manufacturing

Main Features of Lean ManufacturingMain Features of Lean Manufacturing
• Greater Product Variety
• Fast Response (Flexibility)
• Stable Production Schedules
• Supply Chain Integration
• Demand Management
• Broader jobs, highly skilled workers, proud of
product
• Excellent quality
• Reduced costs
• Ability to meet global market & competition

Typical benefits of waste elimination
initiative

Lean Thinking, Lean Tools &
Supporting Strategies

Lean Thinking Principle #1
……‘Define Value’
Quality
Flexibility
Service
Variety
Variability
Response-
Time
Cost
- - - - V A L U E - - - -- - - - V A L U E - - - -
The critical starting point for Lean Thinking isThe critical starting point for Lean Thinking is
valuevalue as defined by the ultimate customer.as defined by the ultimate customer.
???

Lean Thinking Principle #2
……‘Identify the Value Stream’
All the actions required to bring a specific
product or service through the three critical
transformation processes:
• Idea transformation: concept to market launch
• Information transformation: order-take through
scheduling to delivery
• Physical transformation: raw materials to final
customer
Value-add
time (Hours)
Inventory Waiting
Typical value-add to lead-time ratio ~ 1%
Waste
Value-add activity
Setup Transportation Waiting Inspect

Lean Thinking Principles #3,4,5
#3: Make the work flow
• Every time the flow of work stops we
consume resources that adds costs but
generates no value
#4: Respond only when the customer pulls work
• Overproduction is the worst form of waste
as it generate all other waste types e.g.
transportation, inventory, waiting,…..
#5: Strive to seek perfection
• The real benchmark is zero waste, not what
your competitors are doing!

Lean Tools & Supporting Strategies
• 5S
• Visual control
• Team building
• Problem solving
• Standardised processes
• Value stream mapping

• Pull system
• Kanban
• Takt time – rate of customer
demand
• Manufacturing Cells
• Heijunka
• 5Ws & 1H

• Kaizen
• Total Productive Maintenance
• SMED (setup reduction)
• Poka-Yoke or mistake-proofing
• Cycle time reduction
• Andon – signalling system to stop line

5S
A method for organizing a workplace, and
keeping it organized.
Benefits
1.Improve safety
2.Decrease down time
3.Raise employee morale
4.Identify problems more quickly
5.Develop control through visibility
6.Establish convenient work practices

Visual Control
Any communication device used in the work
environment that tells us at a glance how work
should be done and whether it is deviating from
the standard
Benefits
1. Increase productivity
2. Improve quality
3. On-time delivery
4. Reduce inventory
5. Increase equipment reliability
6. Boosts bottom-line profits

Visual controls show
• Where items belong?
• How many items belong there?
• What is the standard procedure for doing
something?
• Status of work in process.
• Many other types of information critical to
the flow of work activities.

Visual management
• Visual management maintains an orderly
work environment.
• Employees have quicker and safer access to
items that are needed.
• Colour-coding is often used to remind
employees of where items belong.
• If order is not continually stressed, disorder
will result and create an unfriendly work
atmosphere.

Lean Tool Introduction Benefits
Team
Building
An active process by
which a group of
individuals with a
common purpose are
focused and aligned to
achieve a specific task
or set of outcomes
1. Improves morale and
leadership skills.
2. Finds the barriers that
thwart creativity
3. Clearly defines objectives
and goals
4. Improves processes and
procedures
5. Improves organizational
productivity
6. Identifies a team’s
strengths and weaknesses·
7. Improves the ability to
problem solve
Team Building

Problem
Solving
The Problem Solving is a
systematic approach with a
sequence of sections that fit
together depending on the
type of problem to be solved.
These are:
1. Problem Definition
2. Problem Analysis
3. Generating possible
Solutions
4. Analyzing the Solutions
5. Selecting the best
Solution(s)
6. Sustaining the gains
1. Leads to identify root
cause(s) of chronicle
problems
Problem Solving

Standardized
Process
Standardization is
the process of
developing and
agreeing upon
technical
standards.
1. Better decision making
2. Cost reduction and increase in
efficiency
3. Effective information sharing
4. Easier international transfer of
marketing skills
5. Simplifying the coordination
and control between
subsidiaries and business
functions
Value stream
Mapping
A tool for guiding
improvements by
identifying waste &
isolated processes
1. Enable Visualizing the
production process
2. Identifies waste in each step of
the production process.
3. Provides a plan for
implementing improvements to
the production process to
reduce costs.
Standardized Process &
Value stream Mapping

Pull system
A method of controlling
the flow of resources
by replacing only what
has been consumed
1. Reduce lead times
2. Minimize work in process
3. optimize floor space usage
4. Simplify production signals
and improve on-time
delivery to customers.
Pull system

Kanban
A system of continuous
supply of components,
parts and supplies, such
that workers have what
they need, where they
need it, when they need it
1. Reduces waste and scrap
2. Provides flexibility in
production
3. Increases Output
4. Reduce Preventing Over
Production
5. Minimizing Wait Times and
Logistics Costs
6. Reduce Stock Levels and
Overhead Costs
7. Save Resources by
Streamlining Production
8. Reduce Inventory Costs
Kanban

Takt time –
rate of
customer
demand
The rate that a
completed product
needs to be finished in
order to meet customer
demand
1. Gives the rhythm at which
system should operate
2. Smooth production planning
& reduced interruptions in
operations
3. System synchronization with
customer requirement
4. Enable pull scheduling
5. No over production
6. No rush hours in work
7. WIP reduced
Manufacturing
Cells
Comprises a group of
equipment, that is
dedicated to the
complete production of
a family of similar parts
1. Flexible Operation
2. Setup Time Reduction
3. Process Simplification
4. Schedule Variety
Takt time – Rate of customer
demand & Manufacturing Cells

Heijunka
the leveling of
production by both
volume and product
mix
1. Stability of manpower
2. Reduction of unnecessary
overtime
3. Reduction in inventory levels
4. Reduction of stress levels in
the production area
5Ws & 1 H
It is a method of
questioning that leads
to the identification of
the root cause(s) of a
problem
1. Identify root cause
2. Identify current and future
needs for organizational
improvement.
3. Develop a logical approach to
problem solving; using data
that already exists in most
operations.
Heijunka & 5Ws & 1 H

Kaizen Continuous Improvement
1. Increased Space utilization
2. Increased product quality
3. Better Use of capital
4. Communications
5. Production capacity
6. Employee retention
Total
Productive
Maintenance
A maintenance philosophy
designed to integrate
equipment maintenance
into the manufacturing
process. The goal is to
keep equipment
producing only good
product, as fast as
possible with no
unplanned downtime.
1. Improve Productivity
2. Reduce breakdown leading
to Zero breakdown concept
3. Leads to multi-skilling of
workers
4. Better safety
5. Improve quality of products
Kaizen &
Total Productive Maintenance

SMED (Set up
reduction)
The practice of reducing
the time it takes to
change a line or machine
from running one product
to the next
1. WIP and lot size reduction
2. Finished goods inventory
reduction
3. Improved equipment
utilization/yield
4. Increased profitability
without new capital
equipment purchase
Poka-yoke or
mistake
proofing
A techniques that help
operators avoid mistakes
in their work caused by
choosing the wrong part,
leaving out a part,
installing a part
backwards, etc.
1. Better safety
2. Reduce breakdown
3. Improve Productivity
SMED (Set up reduction) & Poka-
yoke or mistake proofing

Cycle Time
reduction
Reduction of total time
taken from start of the
production or service to
its completion. It
includes processing
time, move time, wait
time, and inspection
time
1. Reduced costs
2. Increased throughput
3. Streamlined processes
4. Improved communications
5. Reduced process variability
6. Schedule integrity
7. Improved on-time delivery
Cycle Time reduction

Andon –
Signaling
system to
stop line
A Japanese term refers to
the warning lights on an
assembly line that light up
when a defect occurs.
When the lights go on, the
assembly line is usually
stopped until the problem
is diagnosed and corrected.
1. Bring immediate attention to
problems as they occur in the
manufacturing process.
2. Provide a simple and consistent
mechanism for communicating
information on the plant floor.
3. Encourage immediate reaction
to quality, down time, and
safety problems.
4. Improve accountability of
operators by increasing their
responsibility for “good”
production and empowering
them to take action when
problems occur.
5. Improve the ability of
supervisors to quickly identify
and resolve manufacturing
issues.
Andon–Signaling system to stop
line

203109245 lean-manufacturing (1)

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