lean manufacturing techniques (1)

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LEAN MANUFACTURING TECHNIQUESLets Talk About Principles, Not About Tools

Introduction to Lean Manufacturing

Kai = Change

Zen = Good

Change of betterment

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. 2

KaizenContinuous ImprovementContinual Improvement

Paradigm :The way you look at thingsShift = Change

Paradigm Shift

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.

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Gemba

Gemba Real Place of work

Restaurant Kitchen is real place of workManufacturing Company Shop floor is real place of workShopkeeper Shop where exchange of goods with customer.

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ManufacturingWhereverRaw material is converted to finished products.

Process of ConversionRaw Material Finished Goods

Request for raw materialPotatoes are transported to gateGate supervisionTransport to quality divisionPotatoes are separated in batches for supervisionSupervision for qualityTransport to storage areaPotatoes are stored in batchesTransport from Storage to Washing areaPotatoes are washed in batches thoroughly Remove from washing areaTransport to Pealing machine

Potatoes are pealed offTransport to slicing areaSettings are done for slicingPotatoes are slicedTransport to frying areaPotato slices are friedTransport to flavoring areaFlavors are added in proper amountTransport to packaging areaWafers are packed under maintained conditionsTransport to distribution areasWafers packets are taken out of factory for distributionFinal distribution

Traditional Cost Vs Lean approach for Cost

Traditional Cost: previously seen

Lean approach : Consider price as Goal and profit as CompulsionImprove 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 10

Selling Price for Traditional BusinessCost of raw material + cost of manufacturing + Profit = Selling Price

Selling Price for LEAN Way of BusinessProfit = Selling Price-Cost of raw material - cost of manufacturing

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

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 wastes13

Process of ConversionRaw Material Finished Goods

Request for raw materialPotatoes are transported to gateGate supervisionTransport to quality divisionPotatoes are separated in batches for supervisionSupervision for qualityTransport to storage areaPotatoes are stored in batchesTransport from Storage to Washing areaPotatoes are washed in batches thoroughly Remove from washing areaTransport to Pealing machineCCCCCCCCCCCC

Potatoes are pealed offTransport to slicing areaSettings are done for slicingPotatoes are slicedTransport to frying areaPotato slices are friedTransport to flavoring areaFlavors are added in proper amountTransport to packaging areaWafers are packed under maintained conditionsTransport to distribution areasWafers packets are taken out of factory for distributionFinal distribution

VCCVCVCVCVCCC

Value Adding Ratio [VAR]Value Adding TimeTotal Throughput Time

Where, throughput time is time taken for whole processto get completed for single set/unit of product

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VAR for different type of OrganizationsType of OrganizationVAR (In %)Traditional Organizations0.1-1Companies who have started Lean (from 1-2 yrs)5World class companies10Very high level (e.g. Toyota Motors)30

99% activities which happen in our organization dont 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.17

Japanese TermsMudaMuraMuri

Muda Wasteful activityMura InconsistenceMuri Physical Strain18

Any Questions??

Purpose of Kaizen To identify, reduce and totally eliminate the3M

Give focus on Muda.

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Tools 5S (Workplace Management)VSM (Value Stream Mapping)JIT (Just-In-Time)SMED (Single Minute Exchange of Dies)KanbanCellular ManufacturingTPM (total Productive Maintenance.Six SigmaPoka yokeVisual Management (tool for creating standards)

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.

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Any Questions??

Thank You

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