Integration of Lean & Industry 4.0

1. Lean 4.0 – A Conceptual Conjunction of Lean
Management & Industry 4.0- A Holistic
Approach for the Integration of Lean
Manufacturing Tools and Digital Technologies

2. HOLISTIC INTEGRATION
Industry 4.0 has begun to move forward, with
autonomous and flexible systems, based on a
technology-driven approach, while LM keeps traditional
processes focused on efficiency.
2
Just-In-
Time 4.0
Kanban
4.0
Heijunka
4.0
Poka-
Yoke 4.0
VSM 4.0
Kaizen
4.0
SMED
4.0 VM 4.0
TPM 4.0
5S 4.0

3. Lean & I4.0 Impact on Entire Value Chain
of the business
3

4. Lean Tools can be optimized by i4.0
4
WHY, WHAT, HOW

5. Journey of Industrialization – where does
Lean Fit in historically
5
LEAN JOURNEY

6. Impact on complete
Product Life-Cycle Management
6

7. Lean Industry 4.0 Expands the Opportunities for
Operational Excellence and Revenue Growth
7

8. Maturity Matrix of Lean & Industry 4.0
8
Low Medium High
Low
Medium
High
High on Lean
Low on Digital
<20% of companies
Low on lean
High on Digital
<5% of companies
High on Lean & Digital
<5% of companies
Low on Lean & Digital
>70% of companies
Lean
Maturity
Industry 4.0 Maturity

9. Points to Ponder- Poll
9
Will Industry 4.0 technologies replace Lean or will
they co-exist?
Are lean and Industry 4.0 technologies compatible
and share synergies or are they divergent to each
other?
Above all, the overreaching question is, can Lean
keep up with the digital era and evolve into Lean
4.0?

10. DISCUSSION TOPICS- Context of the lesson
Lean Manufacturing cocepts & Tools
Industry 4.0 concepts & Tools
10
Limitations of LM and how to
overcome through 4.0 and
automation?
Integration -Relationship Matrix
& Attributes, Synergy Points,
Industrial & Technology
Mapping
(1) How can LM and I4.0 supplement each other on a conceptual level?
(2) Which I4.0 tools can support specific lean methods?
(3) how I4.0 tools can contribute to optimising specific lean methods?

11. TRIPLE OBJECTIVES of LEAN
11
Lean is a set of different synchronized
methods and principles
1. shorter lead time(D) with
2. minimized cost( C) and
3. highest attainable quality (Q)
(3-in 1-TQM,TPM, JIT)
Q
D
F
C
The 4th new weapon is Flexibility (F) due to
customized & fluctuating production demands

12. Drivers of Lean 4.0
Increase in Variant Diversity
• Complexity of the production environment
• Future Challenges in manufacturing
Toyota Production System (TPS), Lean
Manufacturing
• Reduce waste in the value chain
• Enhance Customer Value & Continual improvement
Industry 4.0- Cyber Physical Systems
• Organise the Value Creation process
• Data Communication in real time
How the two strategies will support,
complement and integrate with each other
12

13. Concepts, Pillars & Principles of LEAN
13
Toyota Production System ( TPS)
•JIT & JIDOKA pillars
•5S & TPM foundation
Elimination of any type of waste
•aiming to supply the exact quantity of products
required by customers, in the right time and with
the high quality.
Dynamic process
Continuous Improvement Kaizen
Multidisciplinary management practices
Involvment of all employees

14. 7 Wastes & Lean Tools
14

15. What are the Limitations of Lean?
15
Due to fixed manufacturing sequences
and slow responsiveness, associated
with increasing pressures from
customer expectations regarding
product variability, LM may not meet
the new needs, and its suitability for
future value chains can be limited.

16. WHAT ARE THE INDUSTRY 4.0 TECHNOLOGIES & BENEFITS
ARTIFICIAL
INTELLIGENC
E
AUGMENTED
REALITY
BIG DATA
ANALYTICS
BLOCK
CHAIN
ADDITIVE
MANUFACTU
RING
CLOUD
COMPUTING
DIGITALISATI
ON &
SYSTEM
INTEGRATIO
N
INDUSTRIAL
INTERNET OF
THINGS
ROBOTICS &
AUTOMATIO
N
SIMULATION
SOLUTIONS
16
ERA OF CUSTOMISED MFG : DIGITALISATION & AUTOMATION
SAFETY
QUALITY
PRODUCTIVITY
COST
UPTIME
DELIVERY
CYCLE TIME
FLEXIBILITY
TRACEABILITY
CONNECTIVITY
VISIBILITY
MOBILITY
REALTIME
DESCRIPTIVE
DIAGNOSTIC
PREDICTIVE
PRESCRIPTIVE
DATA
analytics
BENEFITS
FEATURES

17. Examples of changes with adoption of Industry 4.0
17

18. CORE TECHNOLOGY of i4.0
•Internet of Things (IoT)
• the backbone of I4.0 which
allows a Worldwide Data
Communication in real time
and helps connect several
devices to the cloud
•Cyber-Physical-
Systems (CPS)
• hold the potential to reshape
our world with more
responsive, precise, reliable and
efficient systems, enabling a
revolution of "smart" devices
and systems from smart cars to
smart grids.
18
IT- OT INTEGRATION through IoT

19. Cyber Physical Systems (CPS)

20. The 3 levels of integration
1) Lean as a Prerequisite &
Lean as an enabler to 4.0
2) 4.0 as an enabler or
catalyst to augment Lean
and overcome its
limitations
3) LM & 4.0 together create
higher levels of
performance- in Quality,
Throughput time, Efficiency
and Flexible manufacturing
20
3
2
1

21. (1) How Lean Management as enabler towards I4.0
• Standardized, transparent, and
reproducible processes are of
fundamental significance for
introducing I4.0
• Decision-makers require LM
competence for considering
customer value and avoiding waste
• By reducing product and process
complexity, LM enables the
efficient and economic use of I4.0
tools
21

22. (2) Industry 4.0 Advances Lean Management
The increased flexibility through I4.0 helps to cope with
the rising complexity.
Moreover, I4.0 is promising to cope with a fluctuating
market demand superior to a leveled production in LM.
The economic production of goods in a lot size of one is a
way to enhance production economies beyond traditional
economies of scale.
22

23. 23
Commonalities of LM and I4.0
(3) I4.0 and Lean can coexist and support
each other

24. 24
LEAN OPTIMISATION ALONE
~15% cost reduction
• Single Lean Flow
Oriented Layout
• Workers follow SOP
to improve efficiency
• Ergonomic workstations
promote safety
INDUSTRY 4.0 ALONE
~10% cost reduction
• Workers follow digital SOPs
• Robots support workers
• Cameras support data-driven quality
control
• Robots perform efficient changeovers
• Robots automate material handling
• Predictive algorithms improve
autonomous maintenance Sensors
• But process inefficiencies and quality
issues persist
INITIAL STATE
 Multiple process
flows
 Different layouts and
processes
 High level of manual
Labor
 Poor quality that
forces frequent
rework
LEAN INDUSTRY 4.0 GENERATES BENEFITS BEYOND
THOSE THAT EITHER APPROACH ACHIEVES
SEPARATELY-Up to 40%cost reduction
• Real-time data enables a flow-oriented layout
• Workers are supported by Robots
• Robots perform efficient changeovers
• Vision based quality control
• Sensors enhance safety
• Workers follow digital SOPs
• Robots automate material handling
• Predictive Autonomous maintenence
Production Flow -Smart Machinery- Worker -Sensor -Data connectivity
BCG ANALYSIS
Synergy of Improvement Potential

25. CONCEPTUAL CONJUNCTION OF
I4.0 TOOLS & LEAN METHODS
25
Lean methods JIT/
JIS
Hei-
junka
TPM VM Poka-
yoke
I4.0 tools Kanban VSM 1* 2** 3*** SMED 5 S Zoning Andon
Additive manufacturing (AM) x x x
Plug and play x x
Automated guided vehicles (AGV) x x
Human-computer interaction (HCI) x x x x x x x
Virtual representation (e.g. VR, AR) x x x x x x
Intelligent bins x x
Auto-ID x x x x x x x x
Digital object memory x x x x
Digital twin/simulation x x x x x x x x
Cloud computing x x x x x
Real-time computing x x x x x x x x x x x x
Big data & data analytics x x x x x x
Machine learning x x x x
* Autonomous Maintenance, ** Planned Maintenance, *** Early Product and Equipment Management

26. 7 Wastes & Industry 4.0 Technologies
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27. Business Coach & Trainer - Manufacturing Start-ups
Project Management - Operational excellence - Smart Manufacturing
B2B Marketing - Quality Management Systems - Academia & Skill Institutes
A.N.Chandramouli CEO
ANCM Management Consultants
#39, Chaitanya Greenford One, Kadugodi, Bangalore -560067
anchandramouli.58@gmail.com, +91 9611763479
Contact me for further
mentoring to implement
Lean 4.0