SOTOLOMBO, DONITA S.

AC 101 Operational Management

Transitioning to Lean System

Lean Manufacturing is a way to eliminate waste and improve efficiency in a manufacturing

environment.

 Lean implementation involves selecting appropriate tools from the lean arsenal to achieve
process excellence. Lean focuses on flow, the value stream and eliminating muda, the
Japanese word for waste

Lean manufacturing is the production of goods using less of everything compared to traditional
mass production: less waste, human effort, manufacturing space, investment in tools, inventory,
and engineering time to develop a new product

What is Waste? Waste is anything that happens to a product that does not add value from the
customer’s perspective

Products being stored, inspected or delayed, products waiting in queues, and defective products
do not add value

What are the examples of waste?

 Overproduction – producing more

than the customer orders or
producing early. Inventory of any
kind is usually waste.
 Queues – idle time, storage, and
waiting are wastes
 Transportation – moving material
between plants, between work
centers, and handling more than
once is waste
 Inventory – unnecessary raw
material, work-in-process (WIP), finished goods, and excess operating supplies
  Motion – movement of equipment or people
 Overprocessing – work performed on product that adds no value
 Defective product – returns, warranty claims, rework and scrap

Lean and Just-in-Time

Lean was generated from the Just-in-time (JIT) philosophy of continuous and forced problem
solving Just-in-time is supplying customers with exactly what they want when they want it

With JIT, supplies and components are “pulled” through a system to arrive where they are
needed when they are needed

Transitioning to Lean System

1. Make sure top management is committed and that they know what will be required.

 In a management system , we need someone who is commited on what he/she is

doing and understand what is the need task to do . Committed employees do
whatever it takes to excel, even if it means taking on extra tasks, or staying
beyond their allotted schedule. Committed workers take their job duties seriously
and continually strive for excellence and maximum productivity. Innovation and
ingenuity can help you stand out in the workforce and get noticed for promotional
opportunities.

2. Decide which parts/processes will need the most effort to convert

 Focus on what process/parts accumulates more effort and consume a lot of time .
Review the processes and evaluate to start converting. For example, if you were a
employee in a company and you have much time to do task, you will need to set
a schedule that will help you to manage the task. Working on easy tasks requires a
smaller mental or physical commitment than if you tackled difficult tasks firsts. If
one of the foremost deterrents to your productivity is simply getting going, it
makes a lot of sense to save the difficult tasks for when you’re in more of a
 groove.Meaning, let's us do the easy one, for us to move to another part so that we
will enough capacity and time to do the work.

3. Obtain support and cooperation of workers. Reassure workers that their jobs are secure.

 Having a work mate that helps you can have a huge impact on how you do your
job.You need a cooperation from your teammate , so that you will have a lot of
ideas.Also,learn to communicate effectively, so that those workmates will
understand you on the discussion of the process.

4. Begin by trying to reduce setup times while maintaining the current system

 Meaning we need to lessen first the setup time , which talks about the time when
the new production produces first good, while maintaing the system that we have
been using. On the contrary, if we will have long setup and changeover there will
be a tendency that the production will also perform a long run, that requires a
large capital in order to do so.
 Setup time can be defined as the time when the previous production runs stops
until the time the new production run produces the first good product at normal
rate without ongoing adjustments.
The origins of Setup time is the SMED (Single Minute Exchange of Dies) is a
theory or set of techniques aimed at performing equipment setups and
changecovers in less than 10 minutes. It was developed by Shigeo Shingo in the
1970's.

The key benefits of setup time reduction is firstly, flexibility, to be able to change
manufacturer from one product to another as often as we like. In order to meet the
changing customer needs and without adding it to expenses.
Another benefit is that due to eliminating errors for trial runs we will also prevent
storage related problems which is connected to inventory system. From
preventing cost in the trials, we can have a budget in buying a greater equipment
that will lead us to have a greater quality that will help us maximize profit.It is
simplify and quicker there will be higher production of output and higher machine
 utilization. Due to simple setups, less skills will be needed , employees will be
motivated because they know what they are doing. It is much safer and require
less tools.
The process of setup time reduction, firstly separate internal and external task,
internal can only be performed once equipment is stopped, for example removing
a part from a oven while external task can be performed while equipment is still
running , example obtaining tools for the next job. Second, convert internal to
external task, do an analysis first of what is external and internal task and then
observe a setup and record it, and do a brainstorming and minimize movement
waste. Next, streamline all the aspect of setup,with the purpose of reducing the
overall setup we need to use more than one person to eliminate unnecessary
movements and consider safety, traing and communicatione, for example in
changing tire you have 5 people to change 4 tires the time was reduce because
there was five people who are working together towards a common goal.Lastly
eliminate adjustments. as much as possible. for example, we can fix setting by
calibration of equipments supported by effective procedures to mimize the time
and errors.

5. Gradually convert operations, begin at the end and work backwards. At each stage, make
sure the conversion has been successful before moving on.

 Start the process of conversion, focus on the end and work backward. Remember
that a stage should be done before going on to the next stage.

6. Convert suppliers to JIT. Narrow the list of vendors.

 Converting to JIT means a big change—in the culture of a company as well as in

its manufacturing operations. Established routines and rules become obsolete.
Where backup inventories were once considered to be insurance against
 unexpected shortages or delays, they are now viewed as evidence of lack-luster
planning or controls, even of laziness. Large production batches can no longer be
viewed as beneficial because they help amortize setup costs. JIT forces the
elimination of the waste inherent in long setups.

7. Prepare for obstacles

 There are some obstacle s that might occur in converting to JIT system , so
prepare yourself in facing those:

-Management may not be totally committed or may be unwilling to devote the necessary
resources to conversion.Meaning ,they maylose focus on conversion with many distraction
-Workers and/or management may not display a coorperative spirit. Because we know there
will be someone who will not cooperate with the conversion, have an effective
communication to him/her, motivate and give rewards that will help to improve his/her
efficacy.
-Suppliers may resist for several reasons:
a. Buyers may not be willing to commit the resources necessary to help them adapt to the JIT
systems.
b. They may be uneasy about long-term commitments to a buyer
c. Frequent, small deliveries may be difficult, especially if the supplier has other buyers who
use traditional systems.
d. The burden of quality control will shift to the supplier
e. Frequent engineering changes may result from continuing JIT improvements by the buyer.

Benefits of Lean System

 Lean is proven to work, examples companies like Toyota, Harley Davidson, ABB
and many more.
Toyota's success has been attributed to an innovative production system anchored
by a set of company values collectively known as "The Toyota Way." This helps
them create the high quality vehicles at the lowest cost and fastest pace. There are
many reasons as to why Toyota is so successful in producing reliable cars and
 even selling their cars all around the world, including are long-term planning,
studious speediness, an open mind, obsession with waste, and humility.
 Focusing on 20% of problems, you will achieve 80% of the result

Ford Electronic Manufacturing Corp.

The 80/20 Principle is used in many corporate → quality

management programs. In Ford Electronic Manufacturing Corporation's quality
program that won the Shingo prize, just-in-time programs have been applied
using the 80/20 rule (80% of the value is spread over 20% of the volume) and
top-dollar usages are analyzed constantly. "Labor and overhead performance
were replaced by Manufacturing Cycle Time analysis by product line, reducing
product cycle time by 95%."

 You can see result with everybody happy

Everyone is able to see and contribute on the value creation and the employee
satisfaction. Furthermore, ensuring the organisation motivation to continue to
improve.
They are often happy and satisfied with their work, and are seen as the
backbone of the organisation and are appreciated by the managers
 With lean, you remove waste from the processes
Through a lean systme you can reduce the unnecessary movements of workers
 Lean is a way if thinking and you can apply in every field

What can small farms learn from a car company?Some farmers are using lean
manufacturing, or “the Toyota Way,” to streamline operations and focus on
customers' needs.
 Several years back, Ben Hartman and his wife were getting by, but just barely. Their
small vegetable farm in Northern Indiana was starting to gain some notice from chefs
and local newspapers, but they were feeling overworked, especially for an income
that did little more than pay the bills.

Upon hearing this from his farmers, a customer named Steve Brenneman, owner
of The Aluminum Trailer Company, thought he could help. At his nearby factory,
Brenneman employed a system of production called lean manufacturing and he had
some ideas about how the same principles might help save the Hartmans’ time,
money, and energy.

 You can embrace this way if thinking and lead the future or do as you are used to
doing and seeingthe other progressing
 Lean is a business strategy and, above all, a way of working where everything and
everyone in the company focus on creating value for the customer in all processes
 By focusing on the customer , you can create your maximum added value for the
customer with minimal effort
 Lean improves the quality, shorten lead times and reduce cost
 Lean has a positive effect on both satisfaction on customer, staff involvement and
profit.

• Lean systems produce high-

quality goods or services
using fewer resources than
traditional operations systems.
Lean thinking helps business
organizations to become more
productive, reduce costs, and
be more market-
 responsive.Lean operations are designed to eliminate waste (value stream mapping),
minimize inventory (JIT deliveries), maximize work flow (small batches with quick
changeovers), make only what is needed (demand pull), empower work teams, do it right
the first time (quality at the source), and continually improve.Despite the benefits, lean
systems have some potential risks. Lean has proven to be an effective model for
managing teams in some of the most demanding industries like software development,
manufacturing, construction and many others.A huge role in this has the fact that the
methodology is simple to understand and quick to make an impact when implemented
properly.

References:

Deken, J (2018). Lean presentation ppt. [online] Slideshare.net. Available at:

https://www.slideshare.net/johndeken/lean-presentation-ppt [Accessed 4 Dec. 2018].

Frost, J. (2018). What Can Small Farms Learn From a Car Company? | Civil Eats. [online] Civil
Eats. Available at: https://civileats.com/2016/12/01/what-can-small-farms-learn-from-a-car-
company/ [Accessed 4 Dec. 2018].

Heibutzki, R. (2018). What It Means to Be Committed to a Job. [online] Work.chron.com.

Available at: https://work.chron.com/means-committed-job-12508.html [Accessed 4 Dec. 2018].

Koch, R. (2018). 80/20 Principle and Kaizen, Continuous Improvement, Quality Management
(Continuous Improvement Firm, CIF: Decision Making Tools, Waste Elimination). [online]
1000ventures.com. Available at: http://www.1000ventures.com/business_guide/crosscuttings/80-
20principle_cif.html [Accessed 4 Dec. 2018].

Young, B. (2018). Why is Toyota so Successful?. [online] The Raider Wire. Available at:
https://nfhsraiderwire.com/showcase/2015/10/20/why-is-toyota-so-successful/ [Accessed 4 Dec.
2018].