History Of Lean Manufacturing

Lean was born in the U.S.A Ford production system established (1913)

Lean was first practiced in Japan Toyota Production System (revealed in 1973)
Lean has spread world wide World class Lean performers develop in the U.S.A. (1990s) Lean increasingly integrated into corporate strategies Manufacturing Education Banking /Finance Retail Software.

Defining Lean
Lean is the systematic approach to identify and eliminate waste through continuous improvement by flowing the product at the pull of the customer in pursuit of the perfection.
Lean manufacturing is used as a tool to focus resources and energies on producing the value-added features while identifying and eliminating non value added activities.

WHY LEAN
Improve Customer Satisfaction Increase Sales and Profits Insure Long-term Health of Company Survival Create Sustainable Competitive Advantage

The Lean Principle

Lean Principle

1. Identify Value
Identify value from the standpoint of the end customer Ask how your current products/services and processes disappoint your customers value expectation like : price? quality? reliable delivery? rapid response to changing needs? fundamental definition of the product?

2. Map the Value Stream

A Value Stream Map is a simple picture that helps you focus on flow and eliminate the waste.

3.Flow
Using one piece flow by linking of all the activities and processes into the most efficient combinations to maximize valueadded content while minimizing waste. The waiting time of work in progress between processes is eliminated, hence adding value more quickly.

4. Pull
Pull System is a flexible and simple method of controlling/balancing the flow of resources. Eliminating waste of handling, storage, expediting, obsolescence, repair, rework, facilities, equipment, excess inventory (work-inprocess and finished). Pull System consists of: Production based on actual consumption Small Lots Low inventories Management by Sight Better Communication

5. Perfection
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.

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Traditional VS Lean Manufacturing

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Traditional Manufacturing
High volume production of identical products.(Low variety/high volume) High direct labor costs. Production organized around large batches between operations.

Business as Usual Customer Order Waste Product Shipment

Time
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Lean Manufacturing
Lean Manufacturing Customer Order Product Shipment

Waste Time (Shorter)

No Waste

No Inventory
Pull System
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Value Added Activities

Any Activity that physically changes the material being worked on (Not Repair / Rework). It is Simply any activity that adds value to the process.

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Non-value adding activities

Any activity that takes Time, Material or Space but does not physically change the material. For eg:- 1. Sorting Stacking 2. Counting Checking

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7 Forms of Waste
CORRECTION WAITING
Any non-work time waiting for tools, supplies, parts, etc.. Repair or Rework

MOTION
Any wasted motion to pick up parts or stack parts. Also wasted walking

PROCESSING
Doing more work than is necessary

Types of Waste

OVERPRODUCTION
Producing more than is needed before it is needed

INVENTORY
Maintaining excess inventory of raw Materials,parts in process, or finished goods.

CONVEYANCE
Wasted effort to transport materials, parts, or finished goods into or out of storage, or between processes. 16

LEAN GOALS
Zero Defects 100% Value Add Eliminate Waste Lot size of one Pull of the Customer

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Why is Lean Manufacturing Important?

Many companies have turned to lean techniques as a way to achieve lower costs and more factory throughput. The most progressive companies, seeing the astonishing success that lean provides on the shop floor, have begun to apply lean methods to the entire supply chain.

Companies that understand the evolving enterprise know that every step in the supply chain, even those that occur at the customer or supplier, has to be examined using lean techniques in order to achieve the maximum benefits. These companies find that they not only survive in difficult times, but they actually thrive and gain market share as their competition falls behind.

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Lean Approach

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The 5Ss
1.Sort

5.Sustain

2.Stabilize

4.Standardize

3.Shine

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Benefits of 5S
Increases organization and efficiency Avoids wasted motion Increases safety Eliminates unnecessary inventory Offers improvements at an inexpensive cost

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5S Drawbacks
If not fully implemented, may result in Jive S Store things Stick to the rules Superficially clean Switch to new fixtures Serve reluctantly Can not be considered an end goal must be part of a continuous improvement movement

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Just In Time (JIT)

Lean is also recognized as Just In Time (JIT) production. Goods are produced to order so stock levels are minimal Keeping low stock levels decreases the costs of storing them helping to increase profits This increases the flexibility of a firm

It helps reduce waste as you only use what you need

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Lean Production System

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Lean Production
Doing more with less inventory, fewer workers, less space. Just-in-time (JIT) smoothing the flow of material to arrive just as it is needed. JIT and Lean Production are used interchangeably. Muda waste, anything other than that which adds value to the product or service.

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Benefits of Lean Production

Waste reduction by 80%.

Production cost reduction by 50%

Manufacturing cycle times decreased by 50%

Labor reduction by 50% while maintaining or increasing throughput

Inventory reduction by 80% while increasing customer service levels Capacity in current facilities increase by 50% Higher quality and higher profits
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Key Features of Lean Production

Reduced Setup Cost and Times Small-Lot Production Employee Involvement and Empowerment Quality at the Source Pull Production, or Just-In-Time (JIT) Continuous Equipment Maintenance Multi- Skilled Workforce and supplier involvement
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Where has Lean been successfully implemented?

Manufacturing Automotive Industrial Products Furniture Textiles and Apparel Printing and Packaging Consumer Products Service Industries Military Healthcare
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Conclusion
Lean. Focuses on optimizing process speed. Provides flexibility to the system. Reduces waste in the system Focuses on inventory and resource reduction Cost reduction Maximizing process velocity Separates value added work from non value added work with different lean tools Thus Lean is to understand value from the customer perspective by eliminating waste thereby increasing customer satisfaction with reduction in cost.
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