presentation - productivity improvement via lean management

4/26/2015

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PRODUCTIVITY IMPROVEMENT VIA LEAN MANAGEMENT

Being Fast, Flexible, Economic

Presentation By Syed Zeeshan Arshad

BE – Industrial & Manufacturing EngineeringNED UET

Mobile +923322178212E-mail [email protected]

Session Plan

What is Lean Management?

How does Lean Management work?

5 principles of Lean Management

Types of Activities

Taiichi Ohno’s 7 Wastes

7 Service Wastes

5 S’s

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Syed Zeeshan Arshad - BE Industrial & Manufacturing

4/26/2015

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What is Lean Management?

Lean Management is a philosophy that seeks to eliminatewaste in all aspects of a firm’s production activities:human relations, vendor relations, technology, and themanagement of materials and inventory.

Lean Management was developed by the Japaneseautomotive industry, with a lead from Toyota and utilisingthe Toyota Production System (TPS), following thechallenge to re-build the Japanese economy after WorldWar II.

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How does Lean Management work?

Considers an ‘end to end’ value stream that delivers competitive advantage.

Seeks fast flexible flow.

Eliminates/prevents wastes (Muda).

Improve Quality.

Helps in reducing costs.

Increased Productivity.

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5 Principles of Lean Management

Value - specify what creates value from the customer’s perspective.

The value stream – identify all the steps along the process chain.

Flow - make the value process flow.

Pull - make only what is needed by the customer (short term response to the customer’s rate of demand).

Perfection - strive for perfection by continually attempting to produce exactly what the customer wants.

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Types of Activities

Production operations - can be grouped into following three types of activities

Value-added activities - Activities that changes the size, shape, fit, form or function of material or information as to satisfy customers’ demands and requirements.

Non value-added activities - That consume resources but do not meet the customers’ demands or requirements

Necessary non value-added activities - Don’t add value from the perspective of the customer but are necessary to produce the product unless the existing supply or production process is radically changed.

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Taiichi Ohno’s 7 Wastes

Waste

“Anything that adds costs to the product without

adding value”

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Ohno Defined Seven types of Waste (MUDA)

Over-Production

Defects

Inventory

Motion (Man/Machine)

Over-Processing

Transportation (Material)

Idle Time

Taiichi Ohno’s 7 Wastes7


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Over-production

Producing

What is unnecessary

When it is unnecessary

And in an unnecessary amount

Worst of All Types of Wastes as it hides other

wastes (Waiting, Movement, Transportation)



DefectsPhysical defects which directly add to the costs of goods sold:

Inspection Customer complaints Scrap/Rework

Also Includes: Errors in paperwork provision of incorrect information about the product late delivery production to incorrect specifications

Results in Disruptions to the smooth flow and generates bottlenecks



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InventoryUnnecessarily high levels of:

Raw materials

Works-in-Progress(WIP)

Finished Goods

Symptoms of a Sick Factory

Extra inventory leads to:

higher inventory financing costs

higher storage costs

higher defect rates



Motion

Major part of a typical worker’s work Includesunnecessary physical motions

Too fast or slow movements

Difficult physical movements, due to poorly designedergonomics, which slow down/strain the workers



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Over-processing

Unintentionally doing more processing work than

required

Typically performed in the name of Quality May alsoinclude setup and Changeover



Transportation

Any movement of materials such as

Moving materials between workstations

Picking up/ setting down items

Ideally, output of one process should be immediately used as the input for the next process

Transportation between processing stages results in:

Prolonging production cycle times

Inefficient use of labor and space (source of minor production stoppages)



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Idle Time

Time spent waiting for something by:

Operator (Material, Tooling)

Machine (Previous Operation, Inspection, Monitoring)

Bottlenecks or inefficient production flow on the

factory floor

Results in a significant cost as it increases labor costs and depreciation costs per unit of output



Sources of Waste

Layout (distance) Long setup time Incapable processes Poor maintenance Poor working methods Lack of training Lack of adherence Ineffective scheduling Poor supervisory skills Inconsistent performance

measures

Functional organization Excessive controls No back-up / cross

training Unbalanced workload No decision rules No visual control Supplier quality Lack of workplace

organization

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7 Service Wastes

Delay – customers waiting for service.

Duplication – having to re-enter data, repeat details etc.

Unnecessary movement - poor ergonomics in the service encounter.

Unclear communication – having to seek clarification, confusion over use of product/service.

Incorrect inventory – out of stock.

Opportunity lost – to retain or win customers.

Errors – in the transaction, lost/damaged goodsSource – John Bicheno, Lean Toolbox 2003

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5 S’s

The most widely adopted lean manufacturing technique

A management philosophy focused on:

Reducing Waste

Optimizing Productivity

Improving Quality

Establishing the operational stability

Sustaining continuous improvement

Ensuring adherence to standards

Embeds the values of organization, neatness, cleaning, standardization and discipline

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5 S’s : Pillars

Se-iri: Sort, Structurize, Cleanup

Se-iton: Straighten, Simplify, Set in order

Se-iso: Sanitize, Scrub, Shine

Se-iketsu: Standardized, Systemized, Conform

Shi-tsuke: Sustain, Self Discipline, Custom

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Sort (Seiri)

“To sort and systematically discard items that are not needed at the workplace”

5 S’s : Pillars19


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Sort (Seiri)

Elimination of unnecessary items (or waste)

Reduction of wastes of resources, materials, shelves, storage

Reduced WIP

5 S’s : Guidelines for Practicing20


Straighten (Seiton)

“To arrange necessary items in a neat and systematic manner so that they can be easily retrieved for use and

return after use”

A place for every thing and everything in its place

5 S’s : Pillars21


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Straighten (Seiton)

No more searching

Place for everything

Reduced setting up time and searching time

Prevent misplacing, wasting energy, materials and resources

Improved space utilization



Sanitise (Seiso)

“To clean and inspect the workplace thoroughly so that there is no dirt on the floor, machines and

equipments”

5 S’s : Pillars23


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Sanitise (Seiso)

Clean the work area

Clean, shiny (new-like) work environment

Higher quality work and products

Safer and comfortable work environment

Positive impression on customers



Standardize (Seiketsu)

“To maintain a high standard of workplace organization by keeping everything clean and orderly

at all times”

5 S’s : Pillars25


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Standardize (Seiketsu)

Best practices

Job responsibilities

Better workplace standards

Better visual control systems

Information sharing/Improvement in workflow



Sustain (Shitsuke)

“To train people to practice the 5S system continuously so that it becomes habitual and ingrained in the culture of

the organization.”

5 S’s : Pillars27


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Sustain (Shitsuke)

Habit of 5S

Reduction of wastes of resources, materials, shelves, storage

Team spirit and discipline are developed

Enhanced operation and workplace rules



1st S (Sort) Stock decreasing

Better usage of working area

Prevention of loosing tools

Cost reduction

2nd S (Straighten) Increased efficiency and effectiveness

Process Improvement

Improved workplace safety

Right item, Right Place, Right Quantity and Right Method (4Rs) are in place

5 S’s : Advantages29


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3rd S (Shine) Increased machine’s efficiency

Clean and easy to maintain workplace

Quick information about possible sources of damages

Improvement of the work environment/product quality

4th S (Standardize) Standard procedures (SOPs)

Visual control system

Improvement in operations, workflow and information flow



5th S (Sustain)

Increased awareness and morale of employees

Team spirit and discipline are developed

“Continuous Improvement” mentality is developed

Adaptation of best practices

Strong foundation of waste elimination and lean implementation

Improved company image



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Remember…!

The Lean Tools & Techniques will not give you money.

It will stop wasting money!

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THANK YOU..

Syed ZeeshanArshad

Mobile +923322178212E-mail [email protected]

presentation - productivity improvement via lean management

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