lean manufacturing : concept & overview

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

Lean Manufacturing

nareshchawla@tqmbizschool.org

Eli Whitney (Interchangeable parts)

Drawing conventions, TolerancesModern machine tool development

1900Fredrick Taylor (Standardized work, time study & work standards)

Frank Gilbreth (Process charts, motion study)

Henry Ford (Assembly lines, flow lines, manufacturing strategy)

Deming & Juran (SPC, TQM)

Eiji Toyoda, Taiichi Ohno, Shigeo ShingoToyota production system, JITStockless production, World class manufacture

Lean Manufacture

American Civil War

World War I

World War II

History & EvolutionHistory & Evolution

Before 1850 Craft manufacturing

Govt. Policies

Global Competition

Rising Cost of Input(Raw material, Energy)

Accountability to shareholders & financers

Industry’s Concerns

Competency of employees

Above all SUSTAINABLE Improvement

• 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

Survival Kit

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

Overproduction

Waiting

Inventory

Transportation Motion

Over Processing

Rework

To produce sooner,fasteror in greater quantitiesthan customer demand.

Raw material,work in progress

or finished goods which is not havingvalue added to it.

People or partsthat wait for

a work cycle tobe completed.

Unnecessary movementof people, parts or

machines withina process.

Unnecessary movement of peopleor parts between processes.

Non rightfirst time.Repetitionor correctionof a process.

Processing beyondthe standardrequired by thecustomer.

is the Japanese word for WASTE.MUDA

Seek it out and get rid!

An 8th wasteis the wasted

potentialof people

Seven Wastes

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 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.

Lean manufacturing is a systems approach

Comparison of lead timeComparison of lead time

CustomerOrder

Waste ProductShipment

CustomerOrder

ProductShipment

Time (Shorter)

Business as Usual

Lean Manufacturing

Main Features of Lean ManufacturingMain 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

Variability Response-

Time Cost

-- -- -- -- V A L U E V A L U E -- -- -- --

The critical starting point for Lean Thinking is The critical starting point for Lean Thinking is valuevalue as defined by the ultimate customer.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 time (Hours) Inventory Waiting

Typical value-add to lead-time ratio ~ 1%

Waste Value-add activity

Setup Transportation Waiting Inspect

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

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 workshould be done and whether it is deviating from the standardBenefits

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.

BenefitsIntroductionLean Tool

1. Improves morale and leadership skills.

2. Finds the barriers that thwart creativity

3. Clearly defines objectives and goals

4. Improves processes and procedures

5. Improves organizational productivity

6. Identifies a team’s strengths and weaknesses·

7. Improves the ability to problem solve

An active process by which a group of individuals with a common purpose are focused and aligned to achieve a specific task or set of outcomes

Team Building

1. Leads to identify root cause(s) of chronicle problems

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

2. Problem Analysis

3. Generating possible Solutions

4. Analyzing the Solutions

5. Selecting the best Solution(s)

6. Sustaining the gains

Problem Solving

1. Enable Visualizing the production process

2. Identifies waste in each step of the production process.

3. Provides a plan for implementing improvements to the production process to reduce costs.

A tool for guiding improvements by identifying waste & isolated processes

Value stream Mapping

1. Better decision making 2. Cost reduction and increase in

efficiency3. Effective information sharing4. Easier international transfer of

marketing skills5. Simplifying the coordination

and control between subsidiaries and business functions

Standardization is the process of developing and agreeing upon technical standards.

Standardized Process

Standardized Process & Value stream Mapping

1. Reduce lead times

2. Minimize work in process

3. optimize floor space usage

4. Simplify production signals and improve on-time delivery to customers.

A method of controlling the flow of resources by replacing only what has been consumed

Pull system

1. Reduces waste and scrap

2. Provides flexibility in production

3. Increases Output

4. Reduce Preventing Over Production

5. Minimizing Wait Times and Logistics Costs

6. Reduce Stock Levels and Overhead Costs

7. Save Resources by Streamlining Production

8. Reduce Inventory Costs

A system of continuous supply of components, parts and supplies, such that workers have what they need, where they need it, when they need it

Kanban

1. Flexible Operation

2. Setup Time Reduction

3. Process Simplification

4. Schedule Variety

Comprises a group of equipment, that is dedicated to the complete production of a family of similar parts

Manufacturing Cells

1. Gives the rhythm at which system should operate

2. Smooth production planning & reduced interruptions in operations

3. System synchronization with customer requirement

4. Enable pull scheduling

5. No over production

6. No rush hours in work

7. WIP reduced

The rate that a completed product needs to be finished in order to meet customer demand

Takt time –rate of customer demand

Takt time – Rate of customer demand & Manufacturing Cells

1. Identify root cause

2. Identify current and future needs for organizational improvement.

3. Develop a logical approach to problem solving; using data that already exists in most operations.

It is a method of questioning that leads to the identification of the root cause(s) of a problem

5Ws & 1 H

1. Stability of manpower

2. Reduction of unnecessary overtime

3. Reduction in inventory levels

4. Reduction of stress levels in the production area

the leveling of production by both volume and product mix

Heijunka

Heijunka & 5Ws & 1 H

1. Improve Productivity

2. Reduce breakdown leading to Zero breakdown concept

3. Leads to multi-skilling of workers

4. Better safety

5. Improve quality of products

A maintenance philosophy designed to integrate equipment maintenance into the manufacturing process. The goal is to keep equipment producing only good product, as fast as possible with no unplanned downtime.

Total Productive Maintenance

1. Increased Space utilization

2. Increased product quality

3. Better Use of capital

4. Communications

5. Production capacity

6. Employee retention

Continuous Improvement Kaizen

Kaizen & Total Productive Maintenance

1. Better safety

2. Reduce breakdown

3. Improve Productivity

A techniques that help operators avoid mistakes in their work caused by choosing the wrong part, leaving out a part, installing a part backwards, etc.

Poka-yoke or mistake proofing

1. WIP and lot size reduction

2. Finished goods inventory reduction

3. Improved equipment utilization/yield

4. Increased profitability without new capital equipment purchase

The practice of reducing the time it takes to change a line or machine from running one product to the next

SMED (Set up reduction)

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

1. Reduced costs

2. Increased throughput

3. Streamlined processes

4. Improved communications

5. Reduced process variability

6. Schedule integrity

7. Improved on-time delivery

Reduction of total time taken from start of the production or service to its completion. It includes processing time, move time, wait time, and inspection time

Cycle Time reduction

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.

3. Encourage immediate reaction to quality, down time, and safety problems.

4. Improve accountability of operators by increasing their responsibility for “good”production and empowering them to take action when problems occur.

5. Improve the ability of supervisors to quickly identify and resolve manufacturing issues.

A Japanese term refers to the warning lights on an assembly line that light up when a defect occurs. When the lights go on, the assembly line is usually stopped until the problem is diagnosed and corrected.

Andon –Signaling system to stop line

Andon–Signaling system to stop line

Thank YouThank You

lean manufacturing : concept & overview

lean production

lean tools

lean thinking principle

waste waste activities

finalcustomer value

value stream

precise customer value

thinking people

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