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Lean Manufacturing

Presented By Vineeta Kanwal ID No. 44316

Contents
History of lean manufacturing Craft manufacturing Mass manufacturing Lean manufacturing Definition of lean manufacturing Lean thinking How does lean work? Who is lean applicable for?

Contd
What makes a manufacturing system lean? Waste Principles of lean manufacturing Tools of lean manufacturing Economics Advantages Disadvantages Future scope Summary References

History of Lean Manufacturing

Craft Manufacturing
Late 1800s Car built on blocks in the barn as workers walked around the car Built by craftsmen with pride Components hand-crafted, hand-fitted Excellent quality Very expensive Few produced

Mass manufacturing

Assembly line - Henry Ford 1920s

Low skilled labor, simplistic jobs, no pride in work


Interchangeable parts Lower quality Affordably priced for the average family Billions produced - identical

Lean manufacturing
Combines the advantages of craft & mass manufacturing It uses less of everything compared to mass production Interchangeable parts, even more variety Excellent quality mandatory Costs being decreased through process improvements.

Contd
The material moves faster through the system
Business as Usual

Customer Order

Waste Time

Product Shipment

Lean Manufacturing

Customer Order

Waste

Product Shipment

Time (Shorter)

Definition of lean manufacturing


The production of goods using less of everything by reducing waste and increasing value added activity

If it doesnt add value, it adds cost!


Lean manufacturing evolved out of lean thinking which means removal of waste

Lean thinking
Powerful antidote to muda Lean thinking is lean because it provides a way to do more and more with less and less

Human effort Equipment Time Space

Coming closer and closer to providing customers with exactly what they want Create new work rather than simply destroying jobs in the name of efficiency

How does Lean work?


Considers an end to end value stream that delivers competitive advantage. Seeks fast flexible flow. Eliminates/prevents waste (Muda). Extends the Toyota Production System (TPS).

Who is Lean applicable to?


Lean is principally associated with manufacturing industries but can be equally applicable to both service and administration processes. Currently it is also being adopted by the food manufacturing and meat processing sectors. Its not a new phenomenon, Japanese auto manufacturers have been developing Lean for over 50 years.

What makes a manufacturing system lean? the 3 Ms of lean


Muda waste Mura - inconsistency Muri - unreasonableness

Waste
Anything that adds cost to the product without adding value Seven wastes Overproduction- making in excess of demand Waiting- delay between processing steps Transportation- unnecessary transport of materials

Contd
Over processing- doing more than is necessary Inventory- more WIP than the absolute minimum Movement- unnecessary motion of people during the course of their work Defectives- products not meeting customer requirements

Principles of lean manufacturing

Specify value Identify the value stream Make product flow/Make value creating steps flow Let the customer pull product Strive towards perfection

Specify value
Critical starting point for lean thinking Specify what creates value from the customers perspective Value must be defined in terms of specific products at specific prices at specific times Define the Target Cost

Identify the value stream

The value stream is the set of all specific actions required to bring a specific product Purpose of value stream mapping is to identify waste Map the current state and the future state All value streams have internal and external components

Make product flow


Make the remaining, value-creating steps of the process flow Redefine the work of functions, departments, and firms Create single piece flow instead of batch processing Ensure positive contribution to value creation

Let the customer pull product


Response to the customers rate of demand Let the customer pull the product from you as needed rather than pushing products, often unwanted, onto the customer The demands of the customer become more stable when they know then can get what they want right away Pull system is more responsive to changes then push systems

Strive towards perfection


By continually attempting to produce exactly what the customer wants. The journey of continuous improvement. Producing exactly what the customer wants, exactly when, economically. Perfection is an aspiration, anything and everything is able to be improved.

Tools of lean manufacturing

TQM - A management philosophy which seeks to integrate all organizational functions ( marketing, finance, design, engineering, production, customer service.) to focus on meeting customer needs and organizational objectives.

JIT - Just-in-time (JIT) is an inventory strategy implemented to improve the return on investment of a business by reducing in-process inventory and its

Contd

KAIZEN- focus upon continuous

improvement of process It aims to eliminate waste


Single Minute Exchange of Dies (SMED)-

Eliminates setup errors Increases safety Reduces the cost of setups Reduces waiting times and inventory buildups

Contd

5S SEIRI:- Sorting SEITON:- Simplifying SEISO:- Sweeping, systematic cleaning or shining SEIKESTSU:- Standardizing SHITSUKE:- Sustaining Increases organization and efficiency Avoids wasted motion Increases safety Eliminates unnecessary inventory Offers improvements at an inexpensive cost

Contd

Six sigmaThe term six sigma comes from the field of statistics. Six Sigma approach has broadened to include such things as programme and project management tools and rules all of which are complementary to lean manufacturing

Contd
Kanban A system that uses replenishment signals to simplify inventory management Signals (usually cards) hold product details Cards stay attached to a bin that holds the product When bin is empty, it is returned to the start of the assembly line for replenishment Full bins are returned to the customer,

Contd

Cellular manufacturing
Dividing the manufacture of products into semi-autonomous and multi-skilled teams known as work cells Simplifies material flow and management Reduces interdepartmental travel Reduces lot sizes Simplifies scheduling

Contd

Process mapping
Biggest tool in lean all others are deployed from mapping output
Establishes real priorities by those who do the work action plans with names & dates

Dramatic short & medium-term results


Idea generation & team involvement in decision making

Economics

Reduction of Inventory Reduced Waste Increased market share Increased competitive advantage

Advantages

Low production cost Supports green manufacturing Shorter cycle times Reduction in overhead / operating costs Productivity increases (30% - 40%) Increase Profit Customer Lead Time Reductions (50% +) Work in Process Inventory reductions (70%+) On Time Delivery to customers (95% +) Quality Performance Improvements

Disadvantages

Difficulty involved with changing processes to implement lean principles Long term commitment required Very risky process - expect supply chain issues while changing over to lean

Future scope

Lean manufacturing in the 22nd century needs a more structured blending with analytics and the identification of improvement projects so that the enterprise as a whole benefits Lean needs a formal integration structure with predictive scorecards and analytically/innovatively determined strategies

Summary

Greatest impact on companys inventory flow and order distribution Cornerstone of Lean is the Toyota Production System. The greatest obstacle to the waste's removal is usually failure to recognize it. Lean manufacturing includes techniques for recognition and removal of the waste.

References

Approaches and practices of lean manufacturing: The case of electrical and electronics companies, Yu Cheng Wong and Kuan Yew Wong (2010) A case study of lean, sustainable manufacturing, Geoff Miller, Janice Pawloski, Charles Standridge (2010) Integrated production machines and systems beyond lean manufacturing, D.T. Pham and P.T.N. Pham, A. Thomas (2008) An evaluation of the value stream mapping tool, Lasa IS, Laburu CO, Vila R (2008) The effectiveness of lean manufacturing audits in driving improvements in operational performance, Patrick Taggart (2009) Fundamentals of CAD/CAM/CIM, Vikram Sharma

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