Lean manufacturing

Best Practices for SMEs

“Improving the Productivity using Lean
Manufacturing Techniques”

HASH MANAGEMENT SERVICES LLP
CHENNAI

www.businessense.in

Introduction to Hash Management Services LLP

 Hash Management Services LLP works with manufacturing companies in the areas of Productivity
improvements, Inventory and Purchase Optimization, and Supply Chain Re-Engineering

 Our areas of expertise are Lean Manufacturing Implementation covering 5S and other tools, Supply
Chain Management, Market Assessment and Detailed Project reports

 Working on innovative ways to serve clients in the SME sector – through online training programs and
niche applications to monitor the businesses

 More than 50 companies in the last 6 years across the following sectors:
 Auto Ancillaries
 Leather and Footwear Manufacturing
 Pumps
 Castings and Forgings
 Fabrication
 Electronic Components Manufacturing
 Medical Equipment Manufacturing
 Heavy Engineering www.hashllp.com
 Light Engineering www.businessense.in

Introduction to Lean Manufacturing

Lean Manufacturing

A set of Management practices originated in Japan, useful in eliminating

non-value added activities and improving the productivity in a faster and

efficient manner !

© Hash Management Services LLP. 2013 www.hashllp.com

Lean Manufacturing

 A systematic approach to identifying and eliminating waste (non-

value-added activities) through continuous improvement by flowing

the product or service at the pull of the customer.

Doing more and more with less and less…


Lean Manufacturing - Terms

Value Adding Non-Value Adding
Process: Process (Waste):
A process step that Process steps that take
transforms or shapes a time, resources, or
product or service which space, but do not add
is eventually sold to a value to the product or
customer. service.

In most cases VA is only 5%


7 wastes in Lean Manufacturing

Waiting

Over-
Transportation
Production

7
Wastes Over-
Defects
Processing

Motion Inventory


Waste no: 1 - Waiting

Examples Characteristics

•Idle time in which no value •Person waiting for a machine
added activities take place •People watching machines run
• Person wait time •Machine or materials waiting
• Machine wait time for a person
• Material wait time •Lack of concern for equipment
breakdowns or downtime
•Long setup times
•Unbalanced operations
•Inconsistent work methods


Waste no: 2 - Transportation


•Any unnecessary material •Multiple storage locations
movement that does not support •Multiple movement of material
the lean manufacturing system •Poor facility layout
•Return of materials not used in
•Conveyors production
•Forklifts
•Transfer Carts
•Movement between shops


Waste no: 3 – Over-Processing


•Effort which adds no value to a •Process bottlenecks
product or service •Lack of clear customer
• Work that can be combined expectations
with other processes •Lack of customer input
• Enhancements that are concerning requirements
transparent to the customer •Redundant approvals
•Multiple Tests •Extra copies and excessive
•Parts Handling information
•Inspections •Inefficient policies and
procedures


Waste no: 4 – Inventory


•Any unnecessary supplies or •Extra space on receiving docks
materials that do not support the •Build up of material between
„Just In Time Production processes
System‟ •Long lead times for engineering
•Material on site (WIP) change
•Strategic Buys •Long Supply Channels


Waste no: 5 – Motion


•Any movement of people which •Looking for tools and parts
does not add value to the •Excessive reaching or bending
product •Material too far apart (walk
time)
•Poor plant layout


Waste no: 6 – Defects


•Repair of a product or service to •Extra floor space, tools and
fulfill customer requirements equipment
•Extra manpower to inspect,
•Warranty rework and repair
•Rework •Additional inventory
•Scrap •Questionable quality
•Lower profits due to scrap
•Incapable processes with
excessive variation
•Inadequate tools or equipment


Waste no: 7 – Over-Production


•Producing more than needed •Inventory stockpiles
• „Work ahead‟ •Extra or oversized equipment
•Producing at a faster pace then •Unbalanced material flow and
needed confusion about priority
•Extra parts storage racks and
•Stock manpower
•Over build of capacity •Build ahead of demand
•Unbalanced production •Large lot sizes or batch
processing


Where to apply the Lean Manufacturing Principles ?

Bottleneck Process - Example

A B C

1 min 2 min 1 min

Output of the line after 1 hour = ?



A B C

1 min
X 2 min
X
1 min

30 Sec 45 Sec

Output of the line after 1 hour = ?



Bottleneck
Process
A B C

1 min 2 min 1 min
No No
use use

Unless we improve the
30 Sec bottleneck activity, the 45 Sec
throughput will not
increase


Focused Improvement - Kaizen

Regular Improvement Kaizen

Improvement is like sunlight: Focused improvement concentrates the energy:
• Lot of energy, but dispersed (wasted) • Little energy, but concentrated and aligned
• Small improvements • Enables significant (large) improvements
• Slow progress. • Small time required
• Rapid progress

Popular Misconceptions

 Kaizen is only for employees.

 Kaizen is only a sort of a suggestion scheme.

 Any implemented improvement is Kaizen

 Kaizen is: SMALL improvements (only).

 Kaizen is continuous improvement


Kaizen – Small change leading to large
improvement

 Isn‟t KAIZEN supposed to be small improvements?

Kaizen is small change
that leads to
Large Improvement


What is Kaizen

 Kaizen/ Focused Improvement is:

 Process Improvement

 in Strategically Important Areas

 Significant (Large) Improvements

 (and small ones that go with it)

 Sustainable Improvements

 Speedily Executed Improvements


Kaizen Principles

Go to Gemba - When an abnormality occurs

Check Gembutsu - Machine, Material, Failures, Rejects etc.

Search for - Muda (waste), Mura (inconsistency), Muri (physical strain)

Speak with data - Take temporary countermeasures on the spot

Make Kaizens - Remove root causes

Standardize - Standardize to prevent recurrance


Kaizen Rules

Ready to give up traditional thinking, question everything

Ask 5x „WHY“ and find problem‘s root cause

Ask what can be done, not explain why something cannot be

Imperfect progress is better than postponed perfection

Produce only perfect quality and correct mistakes immediately

Invest time and creativity in Kaizen, not money.

Solve problems in the team

Kaizen does not have any end


Kaizen requires a non-blaming culture

Blaming Non-blaming
• Fault-finding • Fact-finding
• Focus on individual • Focus on process
• Ask “Who?” • Ask “Why?”
• Zero in on function • Look for systems issues
• Make assumptions • Determine needs
• Blame • Hold accountable
• Control • Assist
• Inspect/sort • Improve capability


Benefits of Kaizen

 Evaluates system with data

 Allows “real” issues to emerge

 Decreases negative blaming activity

 Increases trust

 Increases quality of communication

 Increases capability


Kaizen promotes Process Oriented Thinking

 Self-Discipline: Apply a common process

 Time Focus: How long does the process take?

 Skill Focus: What skills are required?

 Participation: How can I make improvements?

 Morale: How will changes affect others?

 Communication: Why are changes made?


Work Place Improvements

Ways Searches Multiple handling

Bore Deburr

Werkzeug

Meßmittel

Reinigung

Arrange the machines Arrange Tools and aids Boring combined with
closely to the operator Deburring



Long travel by the Materials placed between Badly seizable
employees the employees material
More space available

Aid and servome
chanisms



Soldering
Pack

U-line against clockwise
direction (with small articles),
there right hand for feeding, left
hand for starting

Soldering
Pack

Tables on same height,
And removal at so that parts do not have to
the same side be lifted



Small parts are The order
difficult to take is not optimal

as is the case for



The part is very
difficult to lift

Type B

Type B Type A

Visual management
facilitates



3 different lengths

Magnet
more approximately
30-50° Head

a b c



for component A for component B for component A for component B

Abfall-
loch


Lean manufacturing

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