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1. LEAN MANUFACTURING
TECHNIQUES
Let’s Talk About Principles, Not About
Tools…

2. Introduction to Lean
Manufacturing
Kai = Change
Zen = Good
Change of betterment

3. Kaizen
Continuous Improvement Continual Improvement

4. Paradigm :
The way you look at things
Shift = Change

5. Paradigm Shift

6. Gemba
Gemba – Real Place 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 is converted
to finished products.

8. Process of Conversion
Raw Material 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 are pealed 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

10. Traditional Cost
Vs
Lean approach for Cost

11. Selling Price for Traditional
Business
Cost of raw material
+
cost of manufacturing
+
Profit
=
Selling Price

12. Selling Price for LEAN Way of
Business
Profit
=
Selling Price
-
Cost of raw material
-
cost of manufacturing

13. Did they add Value or Cost
Value: Wherever Physical or
Chemical Property of Product is
Changed for which customer is
willing to pay

14. Process of Conversion
Raw Material 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 are pealed 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 different type 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. Any Questions??

20. Purpose of Kaizen
To identify, reduce and totally eliminate
the
3M

21. Tools
 5S (Workplace Management)
 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. Any Questions??

23. Thank You