Assignment on Lean Methodology

Submitted To
Mam Fazeela Tariq

Submitted By
Ramish Shakeel (SEU-F16-111)

Iqra Malik (SEU-F16-131)

Date
January 3, 2020
Lean methodology : Lean is a systematic approach to reduce or eliminate activities that
don't add value to the process. It emphasizes removing wasteful steps in a process and taking the
only value added steps. The Lean methodology reduce waste and defects within systems and
processes, by engaging your staff to improve productivity, quality, staff morale, and customer
service.

It helps in :
 Reducing or eliminating the chance of defect generation.
 Reducing the inventory levels .
 Optimizing resources for key improvements among others.

How lean methodology work :

 It has a high focus on market validation and making a successful product, and not the ‘right’
product. So in this case the ‘right’ product is your vision. Lean is about building something
that the market actually wants. That’s better than having built the thing that you wanted to
build and having no market for it whatsoever.
 People within the lean process are actively advised to raise their hand and say, I think we
could do this better, I think we could make this change or that change.
 Engages the people who work in the process to improve the process
 Designed to bring measurable and sustainable improvements
 Characterizes activities as value-added or non value-added from the customer’s perspective
 .Focus on eliminating the non value-added.

Focus on lead time:

 Organizations with the shortest lead time are positioned to be credible and trustworthy
 When you reduce lead time, you can…
 Improve productivity
 Increase responsiveness
 Improve quality
 Improve performance

The Five Principles of Lean:

 Identify Value
 Map the Value Stream
 Create Flow
 Establish Pull
 Seek Perfection
Identify Value:
Lean teams constantly review their product and service from the eyes of the customer. How
does the product help the customer do his job, accomplish his mission, improve his position?
This helps them determine the unique value their product or service provides.Guiding
questions: What does our customer need? Why and when do they need it? What are we
producing that fulfills that need? How and when are we getting it to them?

Map the Value Stream:

Once you determine the unique value they provide (what you’re making, why, and for whom),
your can team evaluate each process that leads toward that end goal, moving into the next of
the 5 principles of Lean: Map the Value Stream. Value stream mapping enables Lean teams to
understand how value flows through the organization - and more importantly, where it gets
stuck. The product of a value stream mapping exercise is a physical ‘map’ of the organization,
which outlines every step of the process for each part of the business: production, R&D,
marketing, HR, etc.

Create Flow:
creating flow by analyzing each step in the process, finding ways to maximize efficiencies,
and reducing waste. Returning to our table manufacturing example, a Lean manager might ask
her team: What tools do we need for each step and are each of these tools needed every day
for production to run smoothly? Can we abandon the traditional assembly line model and
approach the production process in a new way that reduces the lag time between steps?
Lean teams optimize flow in all aspects of the business -- not just the production arm.
Following every value stream to the customer, the Lean team evaluates the steps with her team
to determine if each is necessary and, if so, if there are areas to reduce friction, inefficiencies,
or stalls in the flow of the value to the customer.

Establish Pull:
In the fourth of the 5 principles of Lean thinking, Lean teams consider the customer’s
perspective on the final product, effectively looking at the operations of the business in reverse
on the value stream maps. When does the customer actually need the product in hand? The
idea of the customer being able to ‘pull’ the value as needed is what truly revolutionized the
manufacturing industry when Toyota brought it to market. Instead of investing in materials,
production, and then storage to be ready for a customer’s order, Lean teams can use the
customer’s true needs to direct a more sensible model saving cost, space, time, and
resources.Guiding question: How can we transform our approach so that we have exactly the
quantity the customer needs, exactly when she needs it?

Seek Perfection:
Finally, the Lean team identifies areas of improvement and implements meaningful change,
seeking the most efficient processes to bring the greatest value to the customer. In practice,
these key 5 Lean principles are cyclical. As the Lean teams seeks perfection, they constantly
analyze each process for the increase in value (reduced cost, time, resources used, space, etc.).
They focus on the elements that add value and eliminate those that do not. They tighten the
flow and deliver the value as the customer needs. Ultimately, the goal is not perfection (which
is unattainable), but rather, the pursuit of it -- a concept otherwise known as continuous
improvement.

Advantages of Lean methodology :

Greater productivity:
Applying a lean methodology involves eliminating tasks that add no value to the customer,
referred to as ‘waste’. Collecting unused data, producing unnecessary materials or products
surplus to requirements, idle time caused by slow systems and time spent locating equipment
or tools are just some examples of non-value adding activities or ‘waste’. Removing these from
processes drives productivity as it means the workforce only engages in activities that benefit
the customer.

Smoother operations:
Once non-value adding activities (waste) have been removed from processes, the focus is on
making the remaining value-adding steps flow smoothly with no interruptions, delays,bottle
necks. So you can be sure processes run smoothly throughout the production lifecycle, so you
deliver products to customers on time.

Greater flexibility and responsiveness:

With more streamlined processes, you will be better able to meet demands at the pull of the
customer. You’ll be in a position where customers can come to you and get the product they
need, when they need it - as with “just in time” manufacturing.And with a wide range of lean
tools at your disposal, you'll be well equipped to solve problems when they arise and minimise
downtime.

Eliminates defects:
Defects mean rework. And rework means time, money, and risk of not delivering your product
to the end customer on time. Much of the activity involved in a lean methodology is geared
towards eliminating defects so that products are made right first time, every time.

Improved product quality:

When a quality issue occurs, Lean equips you with problem-solving tools and techniques to
apply to identify the root cause. Error proofing is then put in place to strengthen the process
and prevent recurrence of the problem. As a result, the quality of your product is improved.

Reduced lead time:

Mass customisation is growing, as is the demand for faster delivery. Customers want highly
customised products, and they want them now. If you don't deliver, you can be sure at least
one of your competitors will. By applying a lean methodology and removing non-value adding
steps, you'll reduce lead times and be better able to meet demands.

Increased customer satisfaction:

This is what lean is all about - maintaining happy customers. By removing waste and
streamlining processes, you can deliver exactly what the customer wants, when they want it.
You can then focus on ways to create more value for customers.

Improved staff morale:

While a customer-centric approach, benefits of lean aren’t refined to the customer only.
Benefits can be found within the workforce too, as leaders involve staff in lean projects,
building a company-wide culture of process improvement.

Think about all the things that are bound to irritate your staff about current ways of working...
Lean creates an environment where they can raise ideas for improvements and contribute
towards better ways of working. Engaging them in this process results in increased staff
satisfaction and retention. Staff feel more motivated, more confident of their role in the bigger
picture, and more fulfilled.

Disadvantages of Lean methodology:

Equipment Failure:
Lean has very little room for error. Equipment or labor failure can lead to major
inconsistencies within lean and can make the entire operation fall behind. In other mass
production facilities, employees could just move over to another machine if one went out. In
lean, there are not many other places for employees to move to, because everything within the
operation is being utilized.

Delivery Inconsistencies:
In correlation with equipment failure, this drawback in production enables delivery
inconsistencies. This disadvantage of lean can hinder customer relationships, push consumers
toward competitors, and cost you revenue.

Examples of lean methodology :

TOYOTA:
The automobile giant was perhaps the first major company to adopt this lean ideology in their
manufacturing processes, initially calling the method the Toyota Production System. Not only
have they eliminated waste but they have also mastered the techniques required to minimize
faulty products that do not meet customer needs. Toyota works with two primary processes
that allow these goals to be reached. The first is a process called Jidoka, which translates
roughly to “mechanization with the help of humans.” This means that although some aspects
of the job are automated, humans are continually checking the quality of the product. There
are also programs built into the system that allows the machines to shut themselves down if
someone spots a problem. The second part is known as the Just In Time or JIT model. This
ensures that the next step of a process is only started once the previous phase is completed.
This way, if there is a flaw in the assembly line, no extra and unnecessary work will be
completed. This lean manufacturing technique has paved the way for dozens of other
companies to follow in their footsteps.

Other companies are :

 Intel
 John deere
 Nike