The document discusses Lean Manufacturing and its benefits. Lean Manufacturing aims to produce goods using less of everything through eliminating waste. It reduces costs by improving labor use, decreasing inventories, reducing production timelines, and increasing capacity without large capital inputs. Lean techniques help firms produce more with the same resources by identifying and removing non-value added activities while focusing on streamlining the entire production process and emphasizing worker empowerment.

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LEAN MANUFACTURING COMPETITIVENESS
PROGRAMME

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KAIZEN and GEMBAKAIZEN
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WHAT IS LEAN MANUFACTURING ?
• It is the production of goods, using less of everything, i.e;
- less human effort
- less manufacturing space
- less investment in tools
- less engineering time etc.
• It is a business initiative to reduce “waste” in manufactured
products.
• Lean is one of the latest management tools in cost
reduction .

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KAIZEN and GEMBAKAIZEN
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HOW DOES LEAN MANUFACTURING WORK ?
It reduces cost by:
• Improving labour use.
• Decreasing inventories.
• Reducing manufacturing order to shipment cycle time.
• Increasing capacities, without substantial capital inputs

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KAIZEN and GEMBAKAIZEN
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WHAT DOES LEAN MANUFACTURING DO ?
• Helps firms produce more with the same resources
by eliminating the non-value added
activities.
• Applies simple techniques to identify / eliminate the
wastage and streamline systems.
• Focuses on improving the entire process flow.
• Emphasizes worker empowerment throughout
[“Decent Work”]

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TECHNIQUES OF LEAN MANUFACTURING
• 5S System
• Visual Control
• Standard Operation Procedures (SOPs)
• Just in Time (JIT)
• KANBAN System
• Cellular Layout
• Value Stream Mapping
• POKA YOKE or Mistake Proofing
• SMED (Single Minutes Exchange of Dies or Quick Changeover)
• TPM (Total Productive Maintenance)
• KAIZEN BLITZ-Rapid Improvement Process

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DELIVERABLES
• Unit level Deliverables:
- Reduction of Costs.
- Reduction of Cycle Time.
- Lowering of Defects / Rework Cost.
- Reduction of System related Wastes.

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DELIVERABLES (Contd…)
• Expected “externals”:
- Skill up-gradation of Labour.
- Improvement of Techniques.
- Increase in Labour Productivity.
- Lowering in-put cost of other industries.
- Introducing of new production equipments / methods.
- Betterment of work culture in society.
- Development of a large pool of Lean Consultants.
- Trigger competitiveness as a chain reaction.
- Build a strong structure in private sector to sustain
continuity of market driven requirements.

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RETURN ON INVESTMENT [ROI]
• Industries’ norm for wastage =
- Developed countries 10 - 20 % of turnover.
- Developing countries 20 – 30 % of turnover.

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KAIZEN Management System
®

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KAIZEN and GEMBAKAIZEN
are the trademarks of KAIZEN Institute
®
KAIZEN®
and
GEMBAKAIZEN®
are
registered trade marks
of
KAIZEN INSTITUTE Ltd.
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