Complete description of Lean manufacturing and its tool.

1. Lean Manufacturing

2. Agenda
◼ Lean
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◼ Components of lean thinking
Why lean?
Key to profitability
Lean cost model
Traditional VS Lean model.
Lean management.
Evolution of lean thinking
Pillars of TPS (JIT and JIDOKA).
◼ Lean tools.

3. Lean
◼ Lean – Here , Lean means that
the person is not having fats but
have required muscles.
◼
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Fats– Non Value added activities
(NVAs)= Waste (MUDA).
Muscles– Value added activities
(VAs).

4. 5 Components of Lean thinking
(V)Perfec
tion
(I)Value
(II)Value
stream
(III)Flow
(IV)Pull

5. Why Lean?
◼

6. Key to Profitability
◼

7. Lean Cost Model
◼ New Equation: Price-Cost=Profit
◼ In Order to be in Profit we have to provide
some values to Customer.
◼ Value: Value is something for Which the
customer is willing to pay.
◼ Value=Performance(P)/Cost(C)
Value = Performance(P)
Cost(C)

8. C P
 →
→ 
 
 
Lean Cost Model
Value = Performance(P)
Cost(C)
◼ There are four ways to increase the Value:

9. Lean Method Model
Traditional Model
◼ In Order to Increase the Output:
Lean Model
◼ Increase the
workforce.
◼ Increase
working hours.
◼ Add Machine.
◼ Eliminate
waste.
◼ Focuses on
Efficient use of
Equipment and
People.

10. Other Names
Lean
Agile
system
JIT
Flexible
manufactu
ring
Rapid
System

11. Lean Management
Lean Management
Elimination of
Wastes
Creatingwork Flow

12. Types of Activities
Activities
Value Added (VAs) Non Value Added(NVAs)
Type1:NNVAA TYPE2:MUDA

13. MUDA
◼ MUDA means WASTE.
◼ Waste refers to any activity that does not
add value and is not necessary.
◼ Waste only adds to time and cost.
◼ These wastes were of 7 types (TIMWOOD)
and now one new waste-Non-utilized talent
or skill is added.
◼ Total Wastes:7+1=8 (DOWNTIME).

14. MUDA
TYPES
OF
WASTE
Extra
Processing
Motion
Waiting
Rework
Over-
ProductionTransportation
Inventory
7 Deadly Waste
- Over-production
- Inventory
- Extra Processing
- Motion
- Rework (Defects)
- Waiting
- Transportation
Add NO value - Only
serve to raise costs
PEOPLE

15. Transportation
Movement of
things
Adds to cycle
time
Consumes valuable
resources
Effects
Causes
Excessive Emails Taking files to
another
person
Adds cost

16. Inventory
Difficulty in
finding material
Useless Emails
in the Inbox
Takes valuable
space
Need extra
resources to
manage
Effects
Causes
Populating hard
disk with data
Lots of inventory on
shelves, racks and floors
Obsolescence
Losses due to
damage
Efficient use of inventory… Not Just-in-Case inventory
Inventory Hides
Problems
Increase Lead
Time

17. Motion
Wasted cycle time
Extra Clicks
or key
strokes
Adds cost
Effects
Causes
Unnecessasry
Movement of People
Before After
Handling
Paperwork

18. Waiting
Increases
work in
progress
Idle time due to
lack of “Standard”
operations
Adds to
cycle timeCauses bottlenecks
Effects
Causes
Waiting for people,
information, etc
Slows response
to customer
When Inventory Waits, Customer Waits
Lack of
Coordination

19. Over Production
Builds
inventory not
needed
Produce or order only what, when and in the quantity needed
Creating reports
no one reads
Hides other process
problems (bad
quality, poor
delivery)
Takes up floor
/ disk space
Effects
Causes
Working on the
wrong priority
work
Producing more than the
customer or next process
needs

20. Over Processing
Opportunity
for more
defects
Creates Delay
in Delivering
Effects
Causes
Incomplete
Information
supplied
Multiple ways
of doing the
same task
Eliminate Excess work
Checking /
Rechecking (Non-
Standardization)

21. Defects
Adds cost
Create Delay in
Delivery
Consumes resources
in rework
Effects
Causes
Lack of Clarity
on Requirement
Unnecessary
Changes in
Decision
Incomplete or
incorrect inputs
Reduce Defects
Discourage customer
satisfaction
Escalated impact of initial defect if passed on to next process

22. Creating workflow
◼ Increasing the speed or efficiency of
production system.
◼ Reducing the time gap b/w different
operations on the product on
different platforms in assy. line.
It implies that reducing the
manufacturing time within production
system.
◼
Reducing the moment time of the
product within production system
◼

23. Evolution of Lean thinking
◼ The idea of lean is originally
introduced by Henry Ford.
Henry Ford like to keep the
manufacturing system incredibly high
so that each step of operation
followed naturally into next step of
operation and there is no time delay
b/w any two steps of operations
within the manufacturing system.
◼

24. Evolution of Lean thinking
◼ The roots of lean management
established in 1940s in Toyota
Manufacturing.
Toyota accommodated the lean
thinking and developed the Toyota
Production System(TPS).
◼
After Adoption, Annual profit of
Toyota in 2003 was more than the
Combined Profit of GM, Chrysler and
Ford.
◼

25. Evolution of Lean thinking
Kiichiro Toyoda Taiichi OhnoEiji Toyoda
◼ Increases the
Production Efficiency
by Conveyors and
other automated
systems in Textile
industry..
◼ He introduced the
same concepts on
certain lines in Toyota
manufacturing process
Introduced the concept
JIT JIDOKA
Pillarsof ToyotaProductionsystem

26. Pillar of TPS

27. Concept of TPS
◼ The Toyota Production System (TPS) was
established based on two concepts:
◼ The first is called "jidoka"(which can be
loosely translated as "automation with a
human touch") which means that when a
problem occurs, the equipment stops
immediately, preventing defective products
from being produced;
◼ The second is the concept of "Just-in-Time”,
in which each process produces only what
is needed by the next process in a
continuous flow.

28. Aim of TPS
Q1.)Aim of TPS?
A1.)Cost Reduction
Q2.)How?
A2.)By Thoroughly Eliminating: ‘MUDA’
Q3.)What is Muda?
A3.)Waste
Q4.)What is waste?
A4.)Waste of Overproduction
Q5.)How?
A5.) Working Capital gets tied up in Inventory, Warehouse storage space,
Forklift trucks to move goods, Material handlers to operate trucks,
Computers to keep track of inventory locations, staff to maintain these
systems, etc.
A Quick Q&A

29. Lean tools
◼ 5S
◼ Kaizen
◼ 3M
◼ Work standardization
◼ Value Stream mapping
◼ JIT
◼ Kanban
◼ KPI
◼ OEE

30. Lean tools
◼ RCA
◼ SMED
◼ Andon
◼ Takt time
◼ Smart goal
◼ Poka yoke
◼ PDCA
◼ Jidoka

31. 5S
◼ Scientific way of workplace management
S. No. Japanese English
1 Seiri Sorting
2 Seiton Set in order
3 Seiso Shine
4 Sieketsu Standardise
5 Shitsuke Sustain
◼ Benefits:
◼ Quality
◼ Cost 
◼ Safety
◼ Motivation

32. Kaizen
◼ Kaizen=Kai (Change)+Zen(for better)
◼ Kaizen means change for better(Continual
improvement)
◼ Kaizen is small incremental changes made
for improving productivity and minimizing
waste.
◼ Masaaki Imai is known as the father of
kaizen.

33. 3M (MUDA, MURA, MURI)
◼ Muda:Waste
◼ Mura:Unevenness
◼ Muri:Overburden
◼ Why to remove?
◼ Reduction in waste generation
◼ Reduction in Inconsistent process
◼ Reduction in Stress/Strain on Equipment/People.

34. Work Standardization
◼ Documented procedures for manufacturing
that captures best practices.
(Including the time to complete each task)
◼ Note:Must be “Living documentation” that is
easy to follow.
◼ Benefits:
◼ Forms a baseline for further improvement activities.
◼ Eliminates waste by consistently applying practices.

35. Value Stream Mapping
◼ “A Tool used to visually map the flow of
production which shows the Current and
Future state of processes in a way that
highlights opportunity for improvement”.
◼ Benefit:
◼ Exposes waste in the current processes and
provides a road map for improvement through the
future state.

36. Value Stream Mapping

37. Value Stream Mapping

38. JIT
◼ Just-in-Time (JIT) manufacturing, also
known as Just-in-time production system or
the Toyota production system, is a
methodology aimed primarily at reducing
flow times within production system as well
as response time from suppliers and to
customers.
◼ “The right part at the right time in the right
amount”.

39. JIT
◼ Claims for JIT:
◼ Reduced inventory
◼ Reduced WIP
◼ Shorter Lead Time(not to early not to late)
◼ JIT is the result businesses wants, not a starting
point.
◼ JIT relies on many lean tools, such as
continuous flow,Heijunka (Line
balancing),Kanban, Standardized work and
Takt time.

40. JIT
◼ JIT Implementation:
◼ Top management commitment.
◼ Steering committee
◼ Education program.
◼ Pilot project planning.
◼ Employee training.
◼ Pilot implementation.
◼ Pilot post mortem
◼ Feedback to steering committee.
◼ Expansion to next project.

41. Kanban
◼ A method of regulating the flow of goods within
the factory and outside suppliers and customers.
◼ Kanban (Literally a Signboard) is a scheduling
system for Just-In-Time (JIT) production.
◼ Kanban is a system to control the logistical chain
from a production point of view, and is an
inventory control system.
◼ Kanban was developed by Taiichi Ohno, an
industrial engineer at Toyota, as a system to
improve and maintain a high level of production.

42. Kanban
◼ A Kanban card includes a part code number, its batch
size, its delivery ‘address’, and other related
information.
◼ Kanban (Literally a Signboard) is a scheduling system
for Just-In-Time (JIT) production.
◼ Although all production plans were shared with
suppliers to ease their planning, only Kanbans
triggered part production. When and only when the
supplier received Kanban, they began making that
part in the stated quantity, and shipped a container
full of that part to the proper ‘address’ on the
assembly line.

43. Kanban
◼ Assembly group leaders adjusted the number of
circulating Kanbans for each part within a set range,
determined by the PPC department, to avoid having
teams run out of parts OR containers overflowing
onto the plant floor.
◼ Benefits:
◼ Eliminate waste from inventory and overproduction.

44. KPI
◼ Metrics designed to track and encourage
progress towards critical goals of the
organisation.
◼ The Best manufacturing KPIs:
◼ Are aligned with top level strategic goal.
◼ Are effective at exposing and quantifying
waste.
◼ Are readily influenced by plant floor
employees.

45. OEE
◼ Frame work for measuring productivity loss
for a given manufacturing losses.
◼ If OEE  85%,Good performance indicator
◼ Three categories of losses are traced:
◼ Availability(ex: downtime)
◼ Performance(ex: Slow cycles
◼ Quality: (ex: rejection)

46. OEE
Operator Efficiency(OE) = (Cycle time*Good production)*100
Total line run time
M/C Availability(MA) = (Total line run time)*100
Total available time
Quality ratio(QR) = (Total Ok production)*100
Total Production
◼ Formula for reference:
Overall Equipment efficiency(OEE) = (OE)*(MA)*(QR)
10000

47. RCA
◼ A Problem solving methodology which
focuses on root cause fixing.
Example:
The vehicle will not start. (The problem)
1. Why? - The battery is dead.
2. Why? - The alternator is not functioning.
3. Why? - The alternator belt has broken.
4. Why? - The alternator belt was well beyond its useful
service life and not replaced.
5. Why? - The vehicle was not maintained according to the
recommended service schedule. (The Root Cause)

48. SMED
◼ SMED stands for Single minutes exchange of
dies.
◼ It changing process tooling in 9 minutes or
less.
◼ This process was first introduced by Shigeo
Shingo at Mazda, Mitsubishi and Toyota in
the 1950s and 1960s.

49. SMED
◼ Changeover: Starts at the end of the last
good product of the previous batch and ends
with the first good product of the new batch.
◼ Set-up activities : Two types
◼ Internal set-up activities : Elements in the
changeover which can only be done when the
machine is stopped.
◼ External set-up activities: Elements that can be
performed when the M/C is running.

50. SMED
◼ The SMED improvement steps:
◼ Preliminary stage: Observe and record.
◼ Stage1: Separate internal and external
activities.
◼ Stage2: Convert internal activities into
external activities.
◼ Stage3: Stream lines all activities.
◼ Stage4: Document internal and external
procedures.

51. SMED

52. ANDON
Andon is a manufacturing term referring to a signboard
incorporating signal lights, audio alarms, and text or other
displays installed at a workstation to notify management
and other workers of a quality or process problem.
▪ Andon Cord: A rope running along the assembly line over
the work area
▪ Andon Board: A signboard that showed work station’s
‘address number’

53. PDCA
◼ PDCA stands for Plan-Do-Check-Act.
◼ Also, called Plan-Do-Study-Act (PDSA),
Shewhart cycle or Deming Cycle.
◼ The PDCA cycle is a four step model for
carrying out change.
◼ Just as a circle has no end, the PDCA cycle
should be repeated again and again for
continuous improvement.

54. PDCA

55. Poka Yoke
◼ Poka (Inadvertent errors)+Yokure (To avoid)
◼ Also called Mistake Proofing or Error Proofing
◼ Mistake proofing is the activity of awareness,
detection and prevention of mistakes which
adversely affect:
◼ Our customers and consumers(defect).
◼ Our Employees (Injury).

56. Poka Yoke
◼ Awareness : Having the forethought that a
mistake can be made, communicating the
potential and planning the design of the product
or the process to detect or prevent it.
◼ Detection : Allowing the mistake to happen but
providing some means of detecting it and
altering someone so that we fix it before
sending it to our customer.
◼ Prevention : Not allowing the possibility for the
mistakes occur in the first place.

57. Poka Yoke
◼ Category of poka yoke:

58. Poka Yoke
◼ Category of poka yoke:
◼ Preventive devices: A prevention devices
engineers the process so that it is impossible to
make a mistake at all.
◼ Examples:
◼ Design of a Sim card
◼ Design of USB cable pin.
◼ Plug and sockets.

59. Poka Yoke
◼ Detection devices: A detection devices signals
the user when a mistake has been made , So
that the user can quickly correct the problem.
◼ Example: A car beeps if the key is left in the
ignition.
◼ Quenchant temperature indicator.

60. Jidoka
◼ Jidoka: Automation with human touch (Autonomation).
◼ Jidoka demands that the a process stops itself as soon
as the Errors/Faults are detected so improvements and
troubleshooting can happen immediately.
◼ M/C are often Equipped to recognise
bad O/P from good O/P.
◼ Built-in-quality to the process.
◼ First used by Sakichi toyoda at the
beginning of 20th century
◼ A pillar of the TPS.

61. Jidoka
Toyota this means that if an abnormal situation arises the
machine stops and the worker will stop the production
line. It is a quality control process that applies the
following four principles:
1.Detect the abnormality
2.Stop
3.Fix or correct the
immediate condition
4.Investigate the root cause
and install a countermeasure.

62. Thank you..