The document provides an overview of lean operations management presented by Ayub Salik. The agenda includes defining lean manufacturing, types of waste, lean tools, a case study, challenges of lean adaptation, drivers for adopting lean, best practices for lean projects, launching a lean effort, and the role of change and performance management in lean systems. Salik then discusses his background and experience with lean projects. The presentation defines key lean concepts like value, waste, the 8 types of waste. It also reviews several lean tools and strategies like value stream mapping, line balancing, overall equipment effectiveness, cycle time.

1. Lean Operations ManagementLean Operations Management
Ayub Salik BE,MBA
10.26.10
University at Albany y y
Evening MBA
Business School

2. AGENDAAGENDA
–Objective
–Speaker ‐ Ayub Salik
–What is Lean Manufacturing?
–Types of Muda (Waste)
–Tools used in Lean Manufacturing
–Case Study XYZ
–Lean adaptation challenges
T d i t d t l–Top driver to adapt lean
–Do’s and Don’ts in Lean Projects
–Plan of action to launch lean effort
–Role of Change Management in lean systems
–Role of Performance Management in Lean system sustainability
Useful links–Useful links
–Questions

3. OBJECTIVESOBJECTIVES
•Define lean explain its goal key principles and•Define lean, explain its goal, key principles and
techniques
G i d t di f l t h i t•Gain understanding of some lean techniques to
improving the performance effectiveness of people
and machines
•Industrial application of Lean manufacturing

4. AGENDAAGENDA
–Objective
–Speaker ‐ Ayub Salik
–What is Lean Manufacturing?
–Types of Muda (Waste)
–Tools used in Lean Manufacturing
–Case Study XYZ
–Lean adaptation challenges
T d i t d t l–Top driver to adapt lean
–Do’s and Don’ts in Lean Projects
–Plan of action to launch lean effort
–Role of Change Management in lean systems
–Role of Performance Management in Lean system sustainability
Useful links–Useful links
–Questions

5. WHO AM I AND WHAT I DO ?WHO AM I AND WHAT I DO ?
Education:
 University at Albany, New York.
◦ MBA Elective Track in Management. Expected completion 2011
 University at Albany, New York.
◦ MBA (ITM) 2008
◦ 2008 Graduate Academic Award Recipient. (Evening MBA)
 University of Engineering and Technology, Lahore, Pakistan.
◦ B. Sc. Petroleum Engineering 1993 (First Class First)
Current Positions
 Strategic Planning– Callanan Industries Inc. ( A Oldcastle Materials Company / Owned by CRH plc, Ireland)
 Consultant – Glass Industry – Client: Strategic Materials Inc.
Past Positions:
 Lead Change Agent – Oldcastle Materials Group (OMG) Performance System (OPS) ‐ Operations at Oldcastle Materialsg g p ( ) y ( ) p
 Project Manager at Callanan Industries Inc. ( A Oldcastle Materials Company / Owned by CRH plc, Ireland)
 Corporate Quality Control Manager ‐ Strategic Materials Inc. – US Region.
 Plant Manger – Strategic Materials Inc , Albany NY.
 Assistant Distribution Engineer ‐ Sui Northern Gas Pipelines Limited ‐ Pakistan
 Reservoir Engineer ‐ Petcon Fekete Pvt. Limited (Branch of Fekete Associates Inc.‐ Canada)
 Management Intern ‐ Bank of America , Union bank
 Engineering Intern ‐ Schlumberger Flopetrol, Mari Gas Company

6. MY LEAN EXPERIENCEMY LEAN EXPERIENCEMY LEAN EXPERIENCEMY LEAN EXPERIENCE
Lean Management Projects :g j
New York New Jersey Massachusetts Ohio
Arkansas Oklahoma
Lean Management Trainings / Workshops :
Missouri Kansas Michigan AlabamaMissouri Kansas Michigan Alabama
Tennessee Connecticut Colorado Oklahoma
New York New Jersey Massachusetts Ohio
Arkansas Florida Georgia Texas
West Virginia

7. COMPANY I WORK FORCOMPANY I WORK FOR.

8. COMPANY I WORK FOR. COMPANY I WORK FOR.

9. AGENDAAGENDA
–Objective
–Speaker ‐ Ayub Salik
–What is Lean Manufacturing?
–Types of Muda (Waste)
–Tools used in Lean Manufacturing
–Case Study XYZ
–Lean adaptation challenges
T d i t d t l–Top driver to adapt lean
–Do’s and Don’ts in Lean Projects
–Plan of action to launch lean effort
–Role of Change Management in lean systems
–Role of Performance Management in Lean system sustainability
Useful links–Useful links
–Questions

10. 10
LEAN MANUFACTURING – WHAT IS IT, WHAT DOES IT MEAN
What is your
d f fdefinition of Lean
System?

11. WHAT DOES “LEAN SYSTEM” MEAN?WHAT DOES “LEAN SYSTEM” MEAN?
• “Lean” system focus is to minimize various sources of loss: variability, waste,
inefficiencies and process inflexibility
• Lean provides a way to do more and more with less and less while coming
closer and closer to providing customers with exactly what they want.
• Lean also provides a way to make work more satisfying by providing
immediate feedback on efforts to convert waste into value, whether the value is
th h d t i t t i th kf th lthrough product improvements, customer service or the workforce themselves.
If it doesn’t
add value to
the customer,
11
don’t do it!

12. HISTORY OF LEANHISTORY OF LEAN
Lean was born in the U.S.A.
•Time & Motion Studies (1900s)
• Ford production system established (1913)
Lean was first practiced in Japan
•Dr. Deming’s management system is studied (1950s)
•Toyota Production System (revealed in 1973)
Lean has spread world wideLean has spread world‐wide
•World‐class Lean performers develop in the U.S.A. (1990s)
•Lean increasingly integrated into corporate strategies
•ManufacturingManufacturing
•Education
•Banking /Finance
•Health
R t t•Restaurant
•Telemarketing
•Retail
•Software – and more

13. WHAT DOES “LEAN SYSTEM” MEAN?WHAT DOES “LEAN SYSTEM” MEAN?
This is the manufacturing system developed by Toyota :
•Streamlining process
l f d ( )•Elimination of Muda (waste)
•Produce quality product
•Cost reduction
•Use technologyUse technology

14. “LEAN” IMPROVEMENT MINIMIZES THE SOURCES “LEAN” IMPROVEMENT MINIMIZES THE SOURCES
OF LOSSOF LOSSOF LOSSOF LOSS
Performance
Business systems
People
Quality
Performance
indicators
Business
Process
Material
y
Cost
Business
flows
Waste
Variability
Material
Information
Delivery
Inflexibility
Sources of loss

15. WHAT IS VALUE?WHAT IS VALUE?
• A measurement of the worth of a product, or service, by
a customer based on it’s usefulness in satisfying a
customer need
• An activity, process or operation that changes the
product from one form to another in order to get it
closer to the customer’s specificationscloser to the customer s specifications
• It is something that the customer is willing to pay for

16. WHAT IS WASTE?WHAT IS WASTE?
• Any activity that adds costs or time but does not add
valuevalue
• Consuming more resources (time, money, space, etc)
than are necessary to produce the goods, or services,
that the customer wants
• Pure Waste: Actions that could be stopped without
ff ti th teffecting the customer
• Incidental Waste: Actions that need to be done based
on how the current system operates but do not addon how the current system operates but do not add
value

17. WHAT IS A BREAKDOWN OF ANY ACTIVITY ?WHAT IS A BREAKDOWN OF ANY ACTIVITY ?
Value added
Waste
Activity
IncidentalIncidental
work
17

18. AGENDAAGENDA
–Objective
–Speaker ‐ Ayub Salik
–What is Lean Manufacturing?
–Types of Muda (Waste)
–Tools used in Lean Manufacturing
–Case Study XYZ
–Lean adaptation challenges
T d i t d t l–Top driver to adapt lean
–Do’s and Don’ts in Lean Projects
–Plan of action to launch lean effort
–Role of Change Management in lean systems
–Role of Performance Management in Lean system sustainability
Useful links–Useful links
–Questions

19. TYPES OF WASTETYPES OF WASTE
Over production People’s skills
19

20. WHAT DO THE 8 TYPES OF WASTE MEAN ?WHAT DO THE 8 TYPES OF WASTE MEAN ?
1. Overproduction: To produce sooner faster or in greater quantities the required
d ddemand
2. Inventory: Raw material , WIP or finished product that has tied capital to it.
3. Wait: Equipment , part or people that wait for a work cycle to be completed.
4. Motion: Unnecessary movement of any resources in a process (people, part or
machine)

21. WHAT DO THE 8 TYPES OF WASTE MEAN ?WHAT DO THE 8 TYPES OF WASTE MEAN ?WHAT DO THE 8 TYPES OF WASTE MEAN ?WHAT DO THE 8 TYPES OF WASTE MEAN ?
5. Transportation: Any unnecessary movement of product, part or people between or
hwithin a process.
6. Rework: Performing work or service again due to defects.
7. Over processing: Processing beyond customer requirement.
8. People’s skill: Underutilizing people skills ‐ not taking advantage of the available
intellect.

22. WHAT ARE THE SOURCES OF VARIABILITY FOR WHAT ARE THE SOURCES OF VARIABILITY FOR
ANY PROCESS ?ANY PROCESS ?ANY PROCESS ?ANY PROCESS ?
•PeoplePeople
•Process/Method
•Materials
•Information
•Environment

23. AGENDAAGENDA
–Objective
–Speaker ‐ Ayub Salik
–What is Lean Manufacturing?
–Types of Muda (Waste)
–Tools used in Lean Manufacturing
–Case Study XYZ
–Lean adaptation challenges
T d i t d t l–Top driver to adapt lean
–Do’s and Don’ts in Lean Projects
–Plan of action to launch lean effort
–Role of Change Management in lean systems
–Role of Performance Management in Lean system sustainability
Useful links–Useful links
–Questions

24. SOME OF THE TOOLS AND STRATEGIES USED IN SOME OF THE TOOLS AND STRATEGIES USED IN
LEAN SYSTEMLEAN SYSTEMLEAN SYSTEMLEAN SYSTEM
 Line balancing
 Overall Equipment Efficiency
 Visual factory
 Kanbanq p y
 Wrench times
 Value stream mapping
 5S
 Standardized processes
 Takt time
 Heijunka 5S
 5SKaizen
 5 Whys
P bl l i
 Heijunka
 Cycle time reduction
 SMED (setup reduction)
 Problem solving
 Total productive maintenance
 Error Proofing (Poka Yoke)
 Jidoka

25. VALUE STREAM MAPPINGVALUE STREAM MAPPING
 A Value Stream Map (VSM) is an end‐to‐end view of all
activities in a product or service flow
 Enables visualization of any process
 Identifies waste in each step of the process Identifies waste in each step of the process
This is simply drawing that makes the flow of material and information visible.

26. LINE BALANCINGLINE BALANCING‐‐ WHAT IS IT?WHAT IS IT?
•Line Balancing: Process of balancing production capability with demand
•Demonstrates areas of excess capacity, and bottlenecks throughout a
process.

27. OVERALL EQUIPMENT EFFECTIVENESSOVERALL EQUIPMENT EFFECTIVENESSQQ
• A measure of equipment efficiency that can use time or
throughput as variables It can be on a plant single piece ofthroughput as variables. It can be on a plant, single piece of
mobile equipment, or an entire fleet.
• OEE tells how effectively a piece of equipment is utilized. It is
helpful to see where there are opportunities to reduce waste.
PerformanceAvailability Quality
Scheduled
time
Breakdown Setup Available
time
Running
time
Scrap Rework Effective
time

28. CYCLETIMECYCLETIMECYCLETIMECYCLETIME
• Actual time to complete one cycle of anActual time to complete one cycle of an
operation; or to complete a function, job, or
task from start to finishtask from start to finish
C b d bli h h i f• Can be used to establish the capacity of a
selected piece of equipment in a specific set
f iof circumstances

29. WRENCH TIMEWRENCH TIME
Definition •A quantitative measure of how one worker conducts a job
over a period of time
Mechanism •Each wrench time is for one person over a period of time
•Actions are placed into three categories by analyst:
V l dd d–Value‐added
–Incidental
–Waste
Procedure •Shadow one worker for an extended period of time
•Categorize his actions into one of the three categories
•Analyze each category as a percentage of total timey g y p g
29

30. 5 S5 S
 Focuses on effective workplace organization and standardization that allows
people to easily spot variation from standard operating conditions
 Sort
 Keep only what you need in your area
 Stabilize (Set in order)( )
 A place for everything and everything on its place
 Shine
 Regular cleaning and maintenance Regular cleaning and maintenance
 Standardize
 Develop system (rules to maintain what has been
done)done)
 Sustain
 Maintaining what has been accomplished.

31. AGENDAAGENDA
–Objective
–Speaker ‐ Ayub Salik
–What is Lean Manufacturing?
–Types of Muda (Waste)
–Tools used in Lean Manufacturing
–Case Study XYZ
–Lean adaptation challenges
T d i t d t l–Top driver to adapt lean
–Do’s and Don’ts in Lean Projects
–Plan of action to launch lean effort
–Role of Change Management in lean systems
–Role of Performance Management in Lean system sustainability
Useful links–Useful links
–Questions

32. CASE STUDY XYZCASE STUDY XYZCASE STUDY XYZCASE STUDY XYZ
• Discussed in Lecture

33. AGENDAAGENDA
–Objective
–Speaker ‐ Ayub Salik
–What is Lean Manufacturing?
–Types of Muda (Waste)
–Tools used in Lean Manufacturing
–Case Study XYZ
–Lean adaptation challenges
T d i t d t l–Top driver to adapt lean
–Do’s and Don’ts in Lean Projects
–Plan of action to launch lean effort
–Role of Change Management in lean systems
–Role of Performance Management in Lean system sustainability
Useful links–Useful links
–Questions

34. LEAN ADAPTION CHALLENGESLEAN ADAPTION CHALLENGES
• Significant culture change required
• Top management commitment
• Risk of business disruption
i h f d if h b i l f• No straight ‐forward way to quantify the business value of Lean
• Maintaining customer delivery performance without costly buffers

35. TOP DRIVERS TO ADAPT LEANTOP DRIVERS TO ADAPT LEAN
• Pressure to improve operational performance
• Competitive advantage in price and service• Competitive advantage in price and service
• Customers demanding shorter order cycle time
• Customers demanding reduced prices
C bj i d i• Corporate objective to reduce inventory
• Pressure to improve return‐on‐invested‐capital
• Improve product quality

36. LEAN IMPLEMENTATIONLEAN IMPLEMENTATION
DON’T S DO
 Not keeping process simple
 No senior management buy in
 No Long term strategies
 Align focus from top to down (Buy in from
the top)
 Focus on the goal – eliminate waste No Long term strategies
 Not showing the reason to change
to lean operations
 Not involving everyone
 Focus on the goal – eliminate waste
 Gather baseline information using lean
tools like VSM etc. have a future state in
mind and work towards it.  Not involving everyone
 Ignore the change management
aspect of a lean project.
 Not addressing peoples mind set
 Dedicated resources
 Long term strategies
 Open minded and supportive teamg p p
 Lack of consistency in execution  Involve everyone (each level of
management)
 Effectively use lean methodology (Keep it
simple)

37. PLAN OF ACTION TO LAUNCH LEAN EFFORTPLAN OF ACTION TO LAUNCH LEAN EFFORT
• Create a lean culture
• Map the value stream.
• Improve organization of the work environment.
• Implement appropriate Lean techniques and pilot Lean approaches.
• Prove results and look for new opportunities.
• Balance long‐term strategy and short‐term results.
• Go to the next level ……..

38. ROLE OF CHANGE MANAGEMENT IN LEAN SYSTEMROLE OF CHANGE MANAGEMENT IN LEAN SYSTEM
 Lean system is a change from normal way of doing businessy g y g
 Have to change the way people think
 Thinking in terms of value defined by customer.
 Identify value streams y
 Companies exhort employees to behave and think differently and don’t teach
them how to change / adopt to the new way of lean thinking.
 Don’t treat lean effort as only implementing lean
tools , it has to be coupled with structured change
effort.

39. PERFORMANCE MANAGEMENT TO SUSTAIN LEAN PERFORMANCE MANAGEMENT TO SUSTAIN LEAN
EFFORTEFFORTEFFORTEFFORT
 It keeps the sustainability of lean effort in place.
 Manage performance and create clear expectations at each level of management. g p p g
 Drive operational performance with metrics
(On‐time delivery, Inventory turns, Mfg cycle time, Cost per unit,
Throughput)
 Minimize the process variations from the desired target by managing performance
at a short interval basis.
 Have performance based dialogue with the front line employees
 Drivers to Performance: Metrics, reports, visual management tools and timely
performance dialogues
Just concentrating on lean tools will not bring
sustainability to the Lean effort.

40. USEFUL LINKS FOR LEAN SYSTEMSUSEFUL LINKS FOR LEAN SYSTEMSUSEFUL LINKS FOR LEAN SYSTEMSUSEFUL LINKS FOR LEAN SYSTEMS
• http://www.leanmanufacturingconcepts.com/LeanManufacturingBasics.zip
• http://www.strategosinc.com/just_in_time.htm
• http://www.tpslean.com/leantools.htm
• http://online.wsj.com/article/SB124933474023402611.html
• http://www2 toyota co jp/en/vision/production system/video html• http://www2.toyota.co.jp/en/vision/production_system/video.html
• http://www.toyotageorgetown.com/tps.asp
• http://www.oee.com/pdf/fast‐guide‐to‐oee.pdf
• http://operations‐extranet.mckinsey.com/html/sitetools/register.asp Register on this and p p y g p
search for
“lean”