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![Value Adding Ratio [VAR]
Value Adding Time
Total Throughput Time
Where, throughput time is time taken for whole
process
to get completed for single set/unit of product](https://image.slidesharecdn.com/leanmanufacturingtechniques1-151128084721-lva1-app6892/85/Lean-manufacturing-techniques-1-16-320.jpg)
Lean manufacturing techniques (1)
The document discusses lean manufacturing principles, emphasizing continuous improvement (kaizen) and the importance of value addition in the production process. It outlines the production flow of converting raw potatoes into wafers while contrasting traditional and lean cost approaches. Additionally, it introduces key lean tools and concepts such as 5S, just-in-time, and value stream mapping.
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Lean manufacturing techniques (1)
- 1. LEAN MANUFACTURING TECHNIQUES Let’s TalkAbout Principles, Not About Tools…
- 2. Introduction to Lean Manufacturing Kai= Change Zen = Good Change of betterment
- 3. Kaizen Continuous Improvement ContinualImprovement
- 4. Paradigm : The wayyou look at things Shift = Change
- 5.
- 6. Gemba Gemba – RealPlace of work Restaurant – Kitchen is real place of work Manufacturing Company – Shop floor is real place of work Shopkeeper – Shop where exchange of goods with customer.
- 7. Manufacturing Wherever Raw material isconverted to finished products.
- 8. Process of Conversion RawMaterial Finished Goods Request for raw material Potatoes are transported to gate Gate supervision Transport to quality division Potatoes are separated in batches for supervision Supervision for quality Transport to storage area Potatoes are stored in batches Transport from Storage to Washing area Potatoes are washed in batches thoroughly Remove from washing area Transport to Pealing machine
- 9. Potatoes arepealed off Transport to slicing area Settings are done for slicing Potatoes are sliced Transport to frying area Potato slices are fried Transport to flavoring area Flavors are added in proper amount Transport to packaging area Wafers are packed under maintained conditions Transport to distribution areas Wafers packets are taken out of factory for distribution Final distribution
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- 11. Selling Price forTraditional Business Cost of raw material + cost of manufacturing + Profit = Selling Price
- 12. Selling Price forLEAN Way of Business Profit = Selling Price - Cost of raw material - cost of manufacturing
- 13. Did they addValue or Cost Value: Wherever Physical or Chemical Property of Product is Changed for which customer is willing to pay
- 14. Process of Conversion RawMaterial Finished Goods Request for raw material Potatoes are transported to gate Gate supervision Transport to quality division Potatoes are separated in batches for supervision Supervision for quality Transport to storage area Potatoes are stored in batches Transport from Storage to Washing area Potatoes are washed in batches thoroughly Remove from washing area Transport to Pealing machine
- 15. Potatoes arepealed off Transport to slicing area Settings are done for slicing Potatoes are sliced Transport to frying area Potato slices are fried Transport to flavoring area Flavors are added in proper amount Transport to packaging area Wafers are packed under maintained conditions Transport to distribution areas Wafers packets are taken out of factory for distribution Final distribution
- 16. Value Adding Ratio[VAR] Value Adding Time Total Throughput Time Where, throughput time is time taken for whole process to get completed for single set/unit of product
- 17. VAR for differenttype of Organizations Type of Organization VAR (In %) Traditional Organizations 0.1-1 Companies who have started Lean (from 1-2 yrs) 5 World class companies 10 Very high level (e.g. Toyota Motors) 30
- 18. Japanese Terms Muda Mura Muri
- 19.
- 20. Purpose of Kaizen Toidentify, reduce and totally eliminate the 3M
- 21. Tools 5S (WorkplaceManagement) VSM (Value Stream Mapping) JIT (Just-In-Time) SMED (Single Minute Exchange of Dies) Kanban Cellular Manufacturing TPM (total Productive Maintenance. Six Sigma Poka yoke Visual Management (tool for creating standards)
- 22.
- 23.
Editor's Notes
- #3 Lean Manufacturing is an operational strategy oriented toward achieving the shortest possible cycle time by eliminating waste. The term "lean manufacturing" is coined to represent half the human effort in the company, half the manufacturing space, half the investment in tools, and half the engineering hours to develop a new product in half the time. In simple words, it is low cost and practical approach to conduct smooth Business.
- #6 Paradigm- Basically how we look at things? Paradigm Shift- When we start looking at things with different angle. So to understand Kaizen, Industries need to have Paradigm Shift.
- #11 Traditional Cost: previously seen Lean approach : Consider price as Goal and profit as Compulsion Improve delivery time i.e. velocity or speed of product which is time from the date of getting order to the date of actually delivering the product. 8th biggest evil is not using recourses correctly
- #14 VALUE (Value Addition): -Activities changing physical / chemical properties of raw material adds value to the product -It is determined by customers. -Customer needs = QCT (Quality, Cost, In Time) -Customer is willing to pay if his needs are accomplished. COST(Non Value Adding): -exactly opposite of value -e.g. 7 wastes
- #18 99% activities which happen in our organization don’t add value, only adds cost. Only 1-2 % is of manufacturing cost but if you extend throughput cycle from the date of order to the date of payment it comes as negative value addition thus the cash slow problems haapens.
- #19 Muda – Wasteful activity Mura – Inconsistence Muri – Physical Strain
- #21 Give focus on Muda.
- #22 5S – take care of many evil within organization. Making systematic workplace in your company. VSM - To map the whole stream from order to delivery( includes all the processes related to product) thus identifies muda of each process. JIT- high end tool. Toyota came 1st with it. SMED – Reduces changeover time. Focuses more on eliminating “waiting” muda. Kanban – signaling system for replenishment. Yellow card works in opposite direction of material for shifting, ordering material etc. No talking business. Poka yoke – error free manufacturing process.