Lean manufacturing is a systematic approach to identifying and eliminating waste through continuous improvement by producing only what the customer needs. It aims to provide customers what they want, how they want it, where they want it, at a competitive price and always with expected quality. The core of lean manufacturing is reducing waste leading to improved quality, higher throughput, better efficiency and higher profitability. It utilizes tools like just-in-time, total productive maintenance, 5S, and visual controls to maximize flow and minimize waste.

1. Lean
Manufacturing

2. What is Lean Manufacturing
Lean Manufacturing System is systematic approach
to identifying and eliminating waste (non-value
added activities) through continuous improvement
by flowing the product only when the customer
needs it (called “pull”) in pursuit of perfection.

3. Lean Manufacturing System
LMS is a production management system which
aims to provide the customers:
• What they want
• How they want
• Where they want
• At a competitive price
• In the quantities and varieties they want and
• Always of expected quality

4. Why do we need LMS?
• To meet the challenge of competing in globalised markets.
• Continued Market place focus on quality, cost and delivery
(QCD)
• Pressure of out sourcing by OEM?
• Ever increasing customer expectations.
• The need to compete effectively in the global economy
• Pressure from customers for price reductions
• Continued marketplace focus on quality cost and on-time
delivery.

5. Analysis of Traditional System of
Manufacturing
Starts in factory
• Production plan based on demand forecast
• Material procurement to meet production plan
• Material receipt and inspection
• Storage of materials and components till
required for processing
• Actual production in various process stations
with stress on maximizing production
• Storage of components required for assembly
• Assembly , final inspection and packaging
• Storage of finished goods in company godowns
and zonal depots
• On the shelf in retail outlets.
Ends with the customer
Since the product is pushed from factory to the customer, this system is also
known as ‘PUSH’ system.

6. Weakness of Traditional System
• Risk related to forecasts.
• Long overall business process cycle.
• Good comfort level at various stages leading to slack in the
system.
• It hides the problems, waste and obstacles in the business
flow.
• Encourages departmental focus as their efficiency is judged
on the basis of output. (departmental enterprise)
Pushes up costs and affects competitiveness..

7. Flow in Lean Manufacturing System
Starts with customer
• Order acquisition by marketing
• Production planning
• Just in time receipt of material
• Pull system of production down the entire process chain by
kanban, a control tool starting from sales dispatch section.
Ends with primary producers
Since the customer pulls the product, it is also called pull
system of manufacture.

8. Core of LMS is waste
reduction leading to:
• Improved quality
• Higher through put
• Better efficiency
• Higher profitability.

9. 7 Types of waste
1. Waste due to non standardization and variation in production processes.
2. Waste due to inadequate capacity utilization
3. Waste due to waiting time of men, machines and material.
4. Waste due to unnecessary movement of material
5. Waste due to pre-process and in-process inventory.
6. Waste in the process itself (due to excessive cycle time and consumption of
direct material, indirect material & energy).
7. Waste due to producing defective goods and unnecessary

10. Key Principles

11. Key Principles
1. Minimize material handling. Preference should be given to low or
no-cost solutions such as gravity-feed slides. Handle product once only.
2. Minimize distances . Avoid walking, carrying, etc. by creating cells,
combining operations within a work centre, better planning, and so on.

12. Key Principles...
3. Minimize strain. Work centres should be ergonomically designed to avoid
back and other muscle strains.
4. Minimize clutter . Everything should have a home, from parts and tools at
a workstation, to equipment and product within designated floor spaces.
5. Minimize storage . If you have the space, it will surely get filled. Thus,
continuously minimize your storage space for raw material, WIP, finished
goods and spare parts throughout the supply chain.

13. Key Principles...
6. Maximize utilization . Make optimal use of people, space, and
equipment to improve the return on investment.
7. Maximize flexibility . The key to lean is creating a layout that can adapt
quickly to changes in product, equipment, personnel, or material.
8. Maximize smooth flow . Continuously determine and eliminate the
bottlenecks, then re-balance the line.

14. Key Principles...
9. Maximize visibility . To quickly spot problems, maintain a clear line of
vision to anywhere, from anywhere.
10. Maximize communication . Lean requires constant training on tools
available to meet goals and objectives, and feedback on how well things are
going.

15. Tools of LMS
• JIT
• Total productive maintenance
• 5S
• Process optimization
• Visual Controls
• Streamlined layout
• Standardized work.
• Batch size reduction
• Quality at the source
• Point of use storage
• Quick changeover
• Pull and Kanban