POIM Presentations

Guide : Prof. T.P.S Bawa

X-MBA 24
ITM Vashi

Lean Manufacturing An Overview

Roll # 2 Roll # 8 Roll # 20 Roll # 14 Arun Kumar Kamiya Gulati Shreerajavel Rengaraj Mayank Mathur
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The Flow
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Introduction Value discussion

What is Lean Manufacturing

History of Lean Principles of Lean

Terms used in Lean Manufacturing

Tools of Lean Manufacturing Benefits of Lean Manufacturing Conclusion Acknowledgement & References
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Who wants what...

Cash !!

Value !!
Customer
Low Cost High Quality Availability

Company
Profit Repeat Business Growth
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Value ...
The Manufacturing or business process is a Value Stream i.e. mailman delivering mail is a part a value stream.

Any process that delivers value to the customer is a value stream

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The thought process of lean was thoroughly described in the book The Machine That Changed the World (1990) by James P. Womack, Daniel Roos, and Daniel T. Jones. In a subsequent volume, Lean Thinking (1996), James P. Womack and Daniel T. Jones distilled these lean principles even further to five: 1. Specify the value desired by the customer 2. Identify the value stream for each product providing that value and challenge all of the wasted steps (generally nine out of ten) currently necessary to provide it 3. Make the product flow continuously through the remaining value-added steps 4. Introduce pull between all steps where continuous flow is possible 5. Manage toward perfection so that the number of steps and the amount of time and information needed to serve the customer continually falls
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Lean Manufacturing
A manufacturing philosophy which shortens the time line between the customer order and the product shipment by eliminating waste.
Business as Usual

Customer Order

Waste

Product Shipment

Time
Lean Manufacturing
Waste

Customer Order

Product Shipment

Time (Shorter)
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Lean Manufacturing
o o o o o Deliberately simple way of thinking about customer value and how operations can build that value in the most efficient way possible Asks to think of manufacturing operations as a value stream that flows products to customers Some of activities add value , others just add waste. Value is anything customer will pay for Waste is anything that adds costs customer would not pay for This could be over production of finished goods / working process excess transport and handle of scrap & rework or wasted time while people and goods wait for things to happen

As one works to drive out all waste and flow product more quickly through the value stream the operation becomes less costly and more responsive to customer demand
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Lean Manufacturing
Business philosophies invoked by lean manufacturing include

o Kaizen
o Just-in-Time (JIT) Manufacturing o Total Quality Management (TQM) o Total Productive Maintenance (TPM) o Cellular Manufacturing The roots of lean manufacturing can be traced to Japan, or more specifically , Toyota.
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History of Manufacturing Management

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Principles of Lean Manufacturing

Lean manufacturing operates on following principles:

o Muda' or waste, is bad

o Manufacturing processes must be closely tied to the market's requirements & o Company should be seen as a continuous and uniform whole that includes its customers & suppliers, a concept known as Value Stream' Lean manufacturing is not merely a tool - it is a way of life that all members of an organization must appreciate, and practice.

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What makes a manufacturing system lean ?

The 3 Ms of lean Muda Mura Muri Waste Inconsistency Unreasonableness

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What makes a manufacturing system Lean?

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Waste

Anything that adds Cost to the product without adding Value

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7 Types of Muda

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Basic Elements of Lean Manufacturing

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Basic Elements of Lean Manufacturing

o Just-in-time, higher efficiency manufacturing through the principle of 'continuous product flow' (Single Piece Workflow ) o Continuous improvement of processes along the entire value chain, primarily in terms of quality and cost o Setting up of multi-functional and multi-skilled teams at all levels to achieve its goals
Lean manufacturing is, the 21st centurys upgraded version of the 20th century's Mass-Production philosophy.

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An Element Continuous Product Flow

o Continuous Product Flow redesign of the production floor , product manufactured progressively from one workstation to another with minimal waiting time & handling operations between stations. o Dedication of an entire process line to a group of similar products, or a group of products that undergo similar processing. o Equipment and worktables are arranged in a 'streamlined' lay-out that keeps production continuous and efficient. o Also known as Cellular Manufacturing'.
Animation Movie time

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Lean Manufacturing tools

o Kaizen o Value Stream Mapping - Material & information flow mapping o Standardized Work o Pull System o Andon - Status display board o Kanban - Signal card , pull card

Leveled Production Schedule

o Visual Management o Workplace Organization - 5 S o Jidoka - Stop the line, fix the problem o Fixed Position Stop System o Pokayoke - Failsafe, Error proofing devices
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Kaizen or the Japanese concept of 'continuous improvement Lean manufacturing promotes teamwork among multi-skilled, multifunctional individuals at all levels to effect the continuous achievement of process improvements toward zero non-moving inventories, zero downtimes, zero paper, zero defects and zero delays all throughout the organization.
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Henry Ford - Standards

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To standardize a method is to choose out of the many methods the best one, and use it. Standardization means nothing unless it means standardizing upward. Todays standardization, instead of being a barricade against improvement, is the necessary foundation on which tomorrows improvement will be based. If you think of standardization as the best that you know today, but which is to be improved tomorrow you get somewhere. But if you think of standards as confining, then progress stops. Henry Ford, 1926 Today & Tomorrow
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The Importance of Standardized Work

Without it, all improvement efforts using Kaizen to eliminate waste (muda) are not sustainable.

One will go back to the original position before Kaizen.

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5S Programs -

Visual Factory

Seiri (sort, necessary items) Seiton (set-in-order, efficient placement)

Seison (sweep, cleanliness)

Seiketsu (standardize, cont. improvement) Shitsuke (sustain, discipline)
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Visual Factory
Ability to understand the status of a production area in 5 minutes or less by simple observation without use of computers or speaking to anyone.
5-S
1S Sift and Sort
(Organize)

2S Stabilize
(Orderliness)

3S Shine
(Cleanliness)

4S Standardize
(Adherence)

5S Sustain
(Self-discipline)

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Benefits of Lean Manufacturing

o Waste reduction - therefore production cost reduction o Shorter manufacturing cycle times

o Lower manpower requirements

o Minimal inventories o Higher equipment utilization and manufacturing capacity o Improved cash flow o Higher product quality and reliability

o Better customer service

Profits of the company - Increase because of these benefits.

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Conclusion

The entire process - the value stream - from the most basic supplier to the final end customer must be optimized.

Optimized means synchronizing, tightening and integrating the sequence of steps to maximize the efforts creating value for that end customer & eliminating anything and everything that is not contributing to customer value.
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What Next...
o World Class Manufacturing-21st Century State of the Art for Manufacturing Companies o Agile manufacturing o Whats Next After Lean Manufacturing? o http://sloanreview.mit.edu/article/innovation-whats-nextafter-lean-manufacturing/

o 6 Sigma

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Acknowledgement & References

o All resources taken from the www are gratefully acknowledged . o http://www.toyotaglobal.com/company/vision_philosophy/toyota_production_system/origin_of_the _toyota_production_system.html o http://www.lean.org/WelcomeLetter.cfm o http://www.shmula.com/lean-history-and-timeline-toyota-productionsystem/5993/ o http://en.wikipedia.org/wiki/Taiichi_Ohno o http://en.wikipedia.org/wiki/The_Machine_That_Changed_the_World_(book) o http://en.wikipedia.org/wiki/James_P._Womack o http://en.wikipedia.org/wiki/Sakichi_Toyoda o http://en.wikipedia.org/wiki/Henry_ford o Quiz on Toyota site : http://www.toyotaglobal.com/company/vision_philosophy/toyota_production_system/quiz_on_the_ toyota_production_system.html
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Questions ?

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Thank You

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