Lean Manufacturing

Lean Manufacturing
Vijay Kapoor Principal Consultant Naresh K Chawla - Sr. Consultant
PTU's Gian Jyoti School of TQM & Entrepreneurship
History & Evolution

1850 American Civil War
Before 1850
Craft manufacturing
Eli Whitney (Interchangeable parts) Drawing conventions, Tolerances Modern machine tool development
Fredrick Taylor (Standardized work, time study & work standards) 1900 Frank Gilbreth (Process charts, motion study) World War I Henry Ford (Assembly lines, flow lines, manufacturing strategy)
World War II 1950
Deming & Juran (SPC, TQM) Eiji Toyoda, Taiichi Ohno, Shigeo Shingo Toyota production system, JIT Stockless production, World class manufacture
1990
Lean Manufacture
Industrys Concerns
Govt. Policies Rising Cost of Input (Raw material, Energy) Competency of employees
Global Competition
Accountability to shareholders & financers
Above all SUSTAINABLE Improvement

PTU's Gian Jyoti School of TQM & Entrepreneurship 3
Survival Kit
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
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
Seven Wastes
MUDA
is the Japanese word for WASTE. 5 1 4 7 3 2 6 An 8th waste is the wasted potential of people To produce sooner,faster or in greater quantities than customer demand.
Seek it out and get rid!
Overproduction
Over Processing
Processing beyond the standard required by the customer.
1
7
Inventory
Non right first time. Repetition or correction of a process.
Rework
Raw material, work in progress or finished goods which is not having value added to it.
Waiting
People or parts that wait for a work cycle to be completed.
Transportation
Motion
Unnecessary movement of people or parts between processes.
Unnecessary movement of people, parts or machines within a process.
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 a systems approach

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 Todays Factory: A Proven Strategy for Lean Manufacturing, Charles Standard.
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Comparison of lead time

Business as Usual
Customer Order
Waste Time
Product Shipment
Lean Manufacturing
Customer Order
Waste
Product Shipment
Time (Shorter)
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Main 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
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Lean Thinking, Lean Tools & Supporting Strategies
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Lean Thinking Principle #1 Define Value

??? Quality Flexibility Service Variety
----VALUE---Variability ResponseTime Cost
The critical starting point for Lean Thinking is value 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
Inventory Waiting Setup Transportation Waiting Inspect
Value-add time (Hours)
Typical value-add to lead-time ratio ~ 1%

Waste Value-add activity PTU's Gian Jyoti School of TQM & Entrepreneurship
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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
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Pull system Kanban
Takt time rate of customer demand

Manufacturing Cells Heijunka 5Ws & 1H
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Kaizen Total Productive Maintenance
SMED (setup reduction)

Poka-Yoke or mistake-proofing
Cycle time reduction

Andon signalling system to stop line
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5S
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
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Visual Control
Any communication device used in the work environment that tells us at a glance how work should be done and whether it is deviating from the standard Benefits
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.
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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.
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Team Building
Lean Tool Introduction
1. 2. 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 3. 4. 5.
Benefits
Improves morale and leadership skills. Finds the barriers that thwart creativity Clearly defines objectives and goals Improves processes and procedures Improves organizational productivity
Team Building
6.
7.
Identifies a teams strengths and weaknesses

Improves the ability to problem solve
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Problem Solving
Lean Tool
Introduction
Benefits
Problem Solving
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 1. Leads to identify root cause(s) of chronicle 2. Problem Analysis problems 3. Generating possible Solutions 4. Analyzing the Solutions 5. Selecting the best Solution(s) 6. Sustaining the gains
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Standardized Process & Value stream Mapping

Lean Tool Introduction Benefits
1. Better decision making Standardization is the process of developing and agreeing upon technical standards. 2. Cost reduction and increase in efficiency 3. Effective information sharing 4. Easier international transfer of marketing skills 5. Simplifying the coordination and control between subsidiaries and business functions 1. Enable Visualizing the production process
Standardized Process
Value stream Mapping
A tool for guiding 2. Identifies waste in each step of improvements by the production process. identifying waste & 3. Provides a plan for implementing improvements to isolated processes the production process to reduce costs.
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Pull system
1. Reduce lead times A method of controlling 2. Minimize work in process the flow of resources 3. optimize floor space usage by replacing only what 4. Simplify production signals has been consumed and improve on-time delivery to customers.
Pull system
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Kanban
1. Reduces waste and scrap 2. Provides flexibility in production 3. Increases Output 4. Reduce Preventing Over A system of continuous Production supply of components, parts and supplies, such 5. Minimizing Wait Times and that workers have what Logistics Costs they need, where they need it, when they need it 6. Reduce Stock Levels and Overhead Costs 7. Save Resources by Streamlining Production 8. Reduce Inventory Costs
Kanban
Takt time Rate of customer demand & Manufacturing Cells

1. Gives the rhythm at which system should operate The rate that a completed product needs to be finished in order to meet customer demand 2. Smooth production planning & reduced interruptions in operations 3. System synchronization with customer requirement 4. Enable pull scheduling 5. No over production
Takt time rate of customer demand
6. No rush hours in work

7. WIP reduced Comprises a group of equipment, that is Manufacturing dedicated to the Cells complete production of a family of similar parts
1. Flexible Operation 2. Setup Time Reduction
3. Process Simplification
4. Schedule Variety
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Heijunka & 5Ws & 1 H

1. Stability of manpower Heijunka the leveling of production by both volume and product mix 2. Reduction of unnecessary overtime 3. Reduction in inventory levels 4. Reduction of stress levels in the production area 1. Identify root cause
5Ws & 1 H
It is a method of questioning that leads to the identification of the root cause(s) of a problem
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.
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Kaizen & Total Productive Maintenance

1. Increased Space utilization 2. Increased product quality Kaizen Continuous Improvement 3. Better Use of capital 4. Communications 5. Production capacity 6. Employee retention 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. 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
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Total Productive Maintenance
SMED (Set up reduction) & Pokayoke or mistake proofing

1. WIP and lot size reduction The practice of reducing the time it takes to change a line or machine 3. Improved equipment utilization/yield from running one product to the next 4. Increased profitability without new capital equipment purchase A techniques that help operators avoid mistakes 1. Better safety in their work caused by choosing the wrong part, 2. Reduce breakdown leaving out a part, 3. Improve Productivity installing a part backwards, etc.
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2. Finished goods inventory reduction
SMED (Set up reduction)
Poka-yoke or mistake proofing
Cycle Time reduction
Lean Tool
Introduction
Benefits
1. Reduced costs 2. Increased throughput 3. Streamlined processes 4. Improved communications 5. Reduced process variability 6. Schedule integrity
Cycle Time reduction
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
7. Improved on-time delivery
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AndonSignaling system to stop line

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.
Andon Signaling system to stop line
A Japanese term refers to 3. Encourage immediate reaction the warning lights on an to quality, down time, and assembly line that light up safety problems. when a defect occurs. When the lights go on, the 4. Improve accountability of operators by increasing their assembly line is usually responsibility for good stopped until the problem production and empowering is diagnosed and corrected. them to take action when problems occur. 5. Improve the ability of supervisors to quickly identify and resolve manufacturing issues.
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Lean Manufacturing

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Lean Manufacturing

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Lean Manufacturing

Vijay Kapoor Principal Consultant Naresh K Chawla - Sr. Consultant

PTU's Gian Jyoti School of TQM & Entrepreneurship

History & Evolution

World War II 1950

PTU's Gian Jyoti School of TQM & Entrepreneurship

Above all SUSTAINABLE Improvement

Defining Value and Waste

PTU's Gian Jyoti School of TQM & Entrepreneurship

Value Added Activity

PTU's Gian Jyoti School of TQM & Entrepreneurship

Seek it out and get rid!

Non right first time. Repetition or correction of a process.

Unnecessary movement of people or parts between processes.

Unnecessary movement of people, parts or machines within a process.

PTU's Gian Jyoti School of TQM & Entrepreneurship

4. Speed time to market

PTU's Gian Jyoti School of TQM & Entrepreneurship