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Lean Manufacturing - An Overview
The document provides an overview of Lean manufacturing and the Toyota Production System. It discusses how Toyota implemented Lean principles beginning in the 1950s to become highly efficient and profitable. The core concepts of Lean include eliminating waste, reducing lead times, and continuous improvement. Lean aims to optimize flow and pull production using tools like just-in-time, standard work, and visual management. Kaizen events are used to rapidly improve processes by multidisciplinary teams identifying and eliminating sources of waste.
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Lean Manufacturing - An Overview
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- 2. KANZEN INSTITUTE History of LeanProduction After World War II, Shigeo Shingo & Taiichi Ohno started modifying Toyota’s manufacturing processes to form the Toyota Production System (TPS) Hiroyuki Hirano called this as Just-In-Time (JIT) Production The term “Lean Production” was coined in 1990 by Prof. James P. Womack in his book “The Machine that changed the world” Lean Production - Brief History
- 3. KANZEN INSTITUTE • Fortune 500ranked No.5, the highest ranked manufacturing company • Overtaken GM as top auto maker in the world – 2 years ahead of schedule (was No.4 at start of 2003) • No.12 in profitability , again the highest ranked manufacturing company • Net profit margin 8 times of industry average, profits more than combined profits of next 3 competitors Source: Fortune 500 list 2008 TOYOTA TODAY - 2008
- 4. KANZEN INSTITUTE • TPS foundationlaid in 1950’s – learning from supermarket • Development and introduction of Lexus – taking on Benz • Development and introduction of Prius – world’s first hybrid car in 1997 ….the fruits are realized this year Toyota Production System – the core philosophy Believes in the Kaizen way of doing HOW TOYOTA DID IT?
- 5. KANZEN INSTITUTE KAIZEN - OriginalDefinition KAI ZEN Change Good (for the better - next elevated state) KAIZEN = Change for good ‘Continual Improvement’
- 6. KANZEN INSTITUTE The worldwide Pressureon the Enterprise Government Regulation Environ- ment Society Share- holder Value Suppliers EmployeesMarket Competitors Supplier QCDTE Customer QCDTE Q= QUALITY; C= COST; D= DELIVERY; T= TECHNOLOGY; E= ENVIRONMENT TIME
- 7. KANZEN INSTITUTE Lean Journey inall aspects of Business Lean Manufacturing Lean Supply and Delivery Chain Lean Accounting COMMENCE THE LEAN JOURNEY Solution??
- 8. KANZEN INSTITUTE • Lean Managementfocuses on eliminating waste in processes • Lean Management is not about eliminating people • Lean Management is about expanding capacity by reducing costs and shortening cycle times between order and ship date • Lean Management is about understanding and doing only what is important to the customer What is Lean?
- 9. KANZEN INSTITUTE Lean - BringSupplier and Customer Closer
- 10. KANZEN INSTITUTE Lean Manufacturing isan all encompassing culture, a behavior or mindset that focuses on the Customer. Anything that the Customer does not perceive as adding Value is considered Waste. Lean Manufacturing seeks a Continuous Flow for all value-add process steps through the system by Elimination of Waste, thereby reducing the Time to Customer. What is Lean Manufacturing?
- 11. KANZEN INSTITUTE Lean Companies TraditionalCompanies Keep suppliers in the dark regarding growth, technology, product introductions, etc. Choose strategic suppliers that help them grow in capacity, quality, technology, flexibility, etc. Ship to distributorsShip direct to customers Have fixed, dedicated linesAdjust capacity by assigning resources based on daily demand Make products to forecast (push system) Let the customer pull – this triggers production Allow few changes to standard products and follow-ups (fixed lines – content & equipment) Change quickly to the next model and grow easily in prod. life cycle (simple non-permanent equipment) See inventory as a necessary buffer for uncertain demand Strive for zero inventories Have long lead timesCan fill a customer order very quickly Lean vs. Traditional Companies
- 12. KANZEN INSTITUTE * Data from:‘The Machine That Changed The World’ (Womack, Jones, 1990, p. 83) 1 Toyota Takaoka (Japan) 2 General Motors Framingham Assembly plant – closed in 1989. Assembly Hours Per Car 16.0 31.0 51.6% Defects Per 100 Cars 45.0 135.0 33.3% Floor Space Per Car 4.8 8.1 59.3% Average Parts Inventory 2 hrs 2 wks 2.5% Key Performance Metrics* Toyota1 GM2 % The difference Benefits of Lean Production
- 13. KANZEN INSTITUTE Lean Concepts SDCA PDCA Next Process iscustomer Quality first Market in Upstream management Variability control Lean Concepts Speak with data S u p p l i e r s C u s t o m e r s ZERO WASTE Total Employee involvement Process flow Process Effectiveness Lean Support Systems QCDTE QCDTE
- 14. KANZEN INSTITUTE LEAN PRODUCTION Step 5 StandardizedOperations Step 4 Leveling Step 3 Flow Manufacturing Step 2 The 5S’s for factory improvement Step 1 Awareness revolution: Jikoda Autonomation SMED Multi process operations Kanban TQC TPM ManpowerEffectiveness VisualControl SOURCE: HIROYUKI HIRAO – JIT MANUAL
- 15. KANZEN INSTITUTE 1. Define orspecify value from the point of view of Customer 2. Identify the Value stream – sequence of processes – e.g from raw materials to final customer - 3. Make Value Flow and Reduce Lead time 4. Produce only to satisfy the PULL 5. Synchronize all processes (Perfection) Lean Steps
- 16. KANZEN INSTITUTE Defects Wastes Losses Path Ahead -Develop LEAN Journey LEAN Leadership Time I m p r o v e m e n t 3 - KAIZEN Strategy Today 1 - Current State Diagnosis 2 - Vision for the Future Past LEAN FoundationsEliminate: Losses Eliminate: Waste
- 17. KANZEN INSTITUTE LEAN Road Map Changemind Change method Change process Change result Change culture Phase 1 Introduction Foundation Phase 2 Demonstration Workshops Phase 3 Structured Deployment Phase 4 Upstream Integration Phase 5 Established System Phase 6 DBMS Prize Month/ year Summer 2006 2006 2007 2007 2008 Word class performance Best in class Month/ year
- 18. KANZEN INSTITUTE What are wechanging? Measurement & Control Lean Strategy Efective Kaizen Processes Change Capability Sr. Management Lean ImplementersChange AgentsLean Leaders Improvement Pillars Roadmaps & Plans Kaizen Events Knowledge Sharing Audit and Evaluation Targets Deployed KPI´s Budget & HR Integration
- 19. KANZEN INSTITUTE Process of PersonalChange Paradigms, Perceptions Thoughts, Under- standing Way of Being/ Culture BehaviorHabits
- 20. KANZEN INSTITUTE Process of BusinessChange Paradigms, Perceptions Thoughts, Under- standing Culture WorkSystems
- 21. KANZEN INSTITUTE Paradigms What creates Paradigms? Best practise Best methods Best way to follow Performing KAIZEN What are your Paradigms ? – A TOYOTA? Best examples
- 22. KANZEN INSTITUTE LEAN MANAGEMENT: Rolesand Responsibilities Top Management design value inImprove and set waste-free Processes and environment for KAIZEN Support through KAIZEN Methods in all areas Middle Management / Supervisor take waste out of the processes identify wastes and losses/ improve current operations Workforce: Employees, Operators, Staff keep waste out of the processes standard work and avoid waste and losses
- 23. KANZEN INSTITUTE Top Management Middle Management Supervisors Employees: Operators, Staff Establish Standards ImproveStandards Maintain Standards Support through Lean Methods in all areas Standardisation - Roles and Responsibilities
- 24. KANZEN INSTITUTE Effective Process toimplement Lean - Kaizen Event A Kaizen event is a focused effort used to “make a leap” A multi-functional team is formed and for a 3-5 day period they focus on resolving a problem. It is characterized by the following: • A short burst of intense activity & effort (3 to 5 days only) • Biased toward action over analysis • Focused on improving the value stream and achieving flow • Driven to resolving a specific problem or achieving a specific goal • Focused on a specific area or process (either plant or office) • Managed with daily reviews of progress • Aimed at achieving specific improvements in a short time • Managed to resolution A kaizen is driven to two imperatives: - Solving Problems- Solving Problems - Eliminating waste (Muda)- Eliminating waste (Muda) During a kaizen event the team will: Identify problems & areas of waste Ask Why?, Why?, Why?, Why?, Why?, Why? Figure out ways to fix the problem or eliminate the waste Implement solutions 1. Take Apart 2. Think about 3. Make new
- 25. KANZEN INSTITUTE What is aKaizen Event? Document Reality Plan Countermeasures Identify Waste Reality Check Make Changes Verify Change Measure Results Make this the Standard Celebrate Do It Again In a week or less. A new way of lifeA new way of life The elements of a Kaizen event are:The elements of a Kaizen event are:
- 26. KANZEN INSTITUTE Core statement but alsodo the correct things!! We need to do things not only correctly,
Editor's Notes
- #6 SAY: This slide tells us what Kaizen actually means. We all know Kaizen is a Japanese word. The word consists of two parts KAI and ZEN as you may have noted in the previous slide. KAI means ‘CHANGE’ and ZEN means ‘FOR GOOD’. So when we say KAIZEN, it means Changing for the better or Change for good or we can call it Change to the next elevated state. But Japanese masters say that ‘The way we today is the worst way of doing things and hence we need to change’. Hence when we Change for better everyday, it leads to continual improvement in our work, operations, products, information systems, personal life, professional life and social life. In brief the Kaizen philosophy believes that our way of life be it social life, personal life or professional life deserves to be constantly improved. FI: Ask the participants to repeat ‘CHANGE FOR GOOD’