Lean Manufacturing : Concept & Overview nkchawla@gmail.com

Lean Manufacturing

nareshchawla@tqmbizschool.org

© PTU's Gian Jyoti School of TQM & Entrepreneurship 1

History & Evolution
Before 1850 Craft manufacturing
1850
Eli Whitney (Interchangeable parts)
American
Civil War Drawing conventions, Tolerances
Modern machine tool development

Fredrick Taylor (Standardized work, time study & work standards)
1900
Frank Gilbreth (Process charts, motion study)
World War I
Henry Ford (Assembly lines, flow lines,
manufacturing strategy)

World War II Deming & Juran (SPC, TQM)
1950
Eiji Toyoda, Taiichi Ohno, Shigeo Shingo
Toyota production system, JIT
Stockless production, World class manufacture

1990
Lean Manufacture


Industry’s Concerns

Rising Cost of Input
Govt. Policies (Raw material, Energy)
Competency of
Global
employees
Competition
Accountability to
shareholders &
financers

Above all SUSTAINABLE
Improvement

Survival Kit

• 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


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


Seven Wastes
MUDA is the Japanese word for WASTE. An 8th waste
is the wasted
potential
5 7 2 of people
1 4 3 6
Overproduction To produce sooner,faster
or in greater quantities
Seek it out and get rid!
than customer demand.
Over Processing 1 Inventory
Processing beyond
the standard
required by the
7 2 Raw material,
work in progress
customer. or finished goods
which is not having
value added to it.
Rework
Non right Waiting
first time.
Repetition 6 3 People or parts
or correction that wait for
of a process. a work cycle to
be completed.

Transportation 5 4 Motion
Unnecessary movement
of people, parts or
Unnecessary movement of people machines within
or parts between processes. a process.


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 a systems
approach

“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.


Comparison of lead time

Business as Usual
Customer Waste Product
Order Shipment

Time
Lean Manufacturing

Customer Product
Order Shipment
Waste

Time (Shorter)


Main 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 Tools to Lean Management

• Lean thinking
“The basics of Lean Thinking is ‘the customer
first”
• How do we do that?
“By creating thinking people”
• And how do we do that?
“By creating workplaces that are more human
and encourage people to think”


Lean Thinking Principle #1
……‘Define Value’
???

Quality
Flexibility
Service
Variety
----VALUE----
Variability
Response-
Time
Cost

The critical starting point for Lean Thinking is
value 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
Inventory Waiting Setup Transportation Waiting Inspect
time (Hours)

Typical value-add to lead-time ratio ~ 1%
Waste
Value-add activity


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.


Team Building

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


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 1. Leads to identify root
Problem
2. Problem Analysis cause(s) of chronicle
Solving
problems
3. Generating possible
Solutions
4. Analyzing the Solutions
5. Selecting the best
Solution(s)
6. Sustaining the gains


Standardized Process &
Value stream Mapping

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

Pull system


1. Reduce lead times

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


Kanban

1. Reduces waste and scrap
2. Provides flexibility in
production
3. Increases Output

A system of continuous 4. Reduce Preventing Over
supply of components, Production
parts and supplies, such 5. Minimizing Wait Times and
Kanban
that workers have what Logistics Costs
they need, where they
need it, when they need it 6. Reduce Stock Levels and
Overhead Costs
7. Save Resources by
Streamlining Production
8. Reduce Inventory Costs


Takt time – Rate of customer
demand & Manufacturing Cells

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

Heijunka & 5Ws & 1 H


1. Stability of manpower
the leveling of 2. Reduction of unnecessary
production by both overtime
Heijunka
volume and product 3. Reduction in inventory levels
mix
4. Reduction of stress levels in
the production area

1. Identify root cause

It is a method of 2. Identify current and future
needs for organizational
questioning that leads
improvement.
5Ws & 1 H to the identification of
the root cause(s) of a 3. Develop a logical approach to
problem problem solving; using data
that already exists in most
operations.


Kaizen &
Total Productive Maintenance

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


SMED (Set up reduction) & Poka-
yoke or mistake proofing

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


Cycle Time reduction


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


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

Thank You


Lean Manufacturing : Concept & Overview nkchawla@gmail.com

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Lean Manufacturing : Concept & Overview nkchawla@gmail.com