Basic elements of Lean Manufacturing . 5S , KAIZEN, SMED etc

1. Basics of ‘Lean Manufacturing’

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What is Lean?
 Operating philosophy:
Eliminate waste through continuous improvement:
 Define value from the client’s perspective
 Identify the value stream
 Only make what the client pulls
 Keep the flow moving continuously
 Always improve the process
 Goal:
Increase value-added time within the value stream .
The core idea is to maximize customer value while
minimizing waste. Simply, lean means creating more value
for customers with fewer resources

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Lean Cost Model
 Traditional view of adding profit on top of cost to set price
is flawed
– What client is willing to pay does not depend on your
costs
– Clients’ perception of the value of your product/service
determines max. price
 Lean switches focus to reducing costs and increasing
value to the client
– Higher value to client will result into higher sales
– Higher sales will result into higher shareholder value
PRICE - COST = PROFIT

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Lean Method Model
In order to increase output:
Traditional Model: Lean Model:
 Increases the workforce • Eliminates waste
 Increases working hours • Focuses on efficient use
of equipment and people.
Minimizes issues by standardizing work.
Lean focuses on simplifying complexity and providing the right
product in the right amount at the right time

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The term “lean” is used because lean
manufacturing uses “less”…
• Labor in the factory
• Manufacturing space
• Capital investment
• Materials
• Time between the customer order and the
product shipment
Definition of “Lean”
•Half the hours of human effort in the
factory
•Half the defects in the finished product
•One-third the hours of engineering effort
•Half the factory space for the same output
•A tenth or less of in-process inventories
Source: The Machine that Changed the World
Womack, Jones, Roos 1990

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Lean Manufacturing
The purpose of Lean Manufacturing is to
make your company strong and fast.
• Strong = High performance, repeatable
Performance
• Fast = Easily adapts to fluctuations in market
Conditions
Reduced operating costs and improved
customer satisfaction are natural by-products
of being Lean

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•All organizations have processes that produce and deliver products or
services to satisfy customer needs, desires and
expectations.
• The success of every organization depends
on its ability to attract and retain customers.
Manufacturing Challenge Deep Dive into Lean Thinking
Who Wants What
Customer wants:
•Low Cost
•High Quality
•Availability
Your company
•Profit
•Repeat Business
•Growth

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CRAFT MANUFACTURING - Late 1800’s
•Car built by workers who walked around the car
•Built by craftsmen with pride
•Components hand-crafted, hand-fitted
•Excellent quality
•Very expensive
•Few produced
Manufacturing Challenge
Assembly line - Henry Ford 1920s
•Low skilled labor, simplistic jobs, no pride in
work
•Interchangeable parts
•Lower quality
•Affordably priced for the average family
•Millions produces - identical

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Customer Expectation
• Much better quality
• More customized variants
• Just-in-time delivery
• Shorter lead times
• And freedom to order in
small quantities
…..At Lower & Lower Prices
Quality

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QUALITY TRENDS

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Toyota Production System
• During the 1970s, Japanese were redefining
the manufacturing paradigms.
• They began to incorporate quality into their
cost focused strategy.
• Use of TIME as a new competitive
dimension emerged.
• Toyota Production System was born.
Manufacturing Challenge:
Lean Manufacturing - Toyota 1950s
•Cells or flexible assembly lines
• Broader jobs, highly skilled workers, proud of
product
•Low lead time
•Excellent quality mandatory
•Global markets & competition

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Lean Manufacturing
• During 1980s Americans realized that the
things are not the same anymore.
• Japanese were not only making better
cars,
they were also doing it cheaply.
• Toyota was making cars in America at
25% less cost.
• Severely denting American market share.

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Jim Womack’s comments
“We also know that lean thinking is
spreading across the world. This summer,
when Dan Jones, Jose Ferro, and I visited
India for the first Lean Summits, we were
amazed to find some of the leanest
operating practices we have ever
encountered outside of Toyota City.”

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In order to survive…
We have to make our Organizations Lean
by understanding the Lean philosophy and
promoting Lean Thinking throughout the
organization .
BUT….
The Truth about Lean is…
It’s not obvious,
It’s not common sense
And it’s not intuitive
Don Runkle,Delphi

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The Science of Lean
Manufacturing

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Introduction
• All organizations have processes that produce &deliver
products & services to satisfy customer needs.
• These processes transform inputs into outputs by means
capital & labor resources.
• The transformation involves flow of work through a network
of activities performed by available resources.
•These resulting outputs are products in the form of physical
goods, services or both.
•Products differ in attributes that customer values such as
product cost, quality, variety & delivery response time
• The ability to provide desired product attribute depends on
the corresponding process attributes such as processing
costs, quality, flexibility and flow time.

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A Process
A process is any activity or set of activities
that uses resources to transform inputs into
outputs.
Process
Transformation of inputs into outputs
incorporates five elements:
1. Inputs and Outputs
2. Flow Units
3. A network of activities & buffers
4.Resources
5. Information structure (controls & feedback)

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Lean Manufacturing
A manufacturing philosophy that demands
shorter lead times to deliver high quality, low
cost products through improved flow, by
eliminating waste and reducing variation in
the value stream.
Design (concept to customer)
Supply (order to delivery)
Build (raw material to finished Product)

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LEAN MANUFACTURING
We know that there is a direct
Link between flow and cost
Elimination
of Waste = Improved
Flow
Improved
Flow = Decreased
Cost
Decreased
Cost
= New Business
Sustainable Profits

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Understanding
MUDA, MURA and MURI

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Muda means WASTE.
Waste refers to any activity that does not
add value.
Waste only adds to time and cost.

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Things to Remember about Waste:
• Waste is really a symptom rather than a
root cause
of the problem
• Waste points to problems within the
system
(At both process & value stream levels)
Elements of production that add time, effort, cost,
but no value
All activities fall into one of these three
categories:
• Value Added
• Type I Muda -- adds no value but necessary
(Toyota calls this “Non-value added work”)
• Type II Muda -- adds no value and avoidable.
Most of our activities fall into which category?

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MUDA
• Waste of Overproduction
• Waste of Inventory
• Waste of Repair / Rejects
• Waste of Motion
• Waste of Processing
• Waste of Waiting
• Waste of Transport
Waste Of Overproduction
Producing More or Sooner or
Faster than needed

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Waste Of Inventory
Any Supply in excess of one
piece flow
Waste Of Repair/Reject
Inspection or repair of a product
or service to fulfill customer
requirements
Waste Of Motion
Any movement that does
not add value

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Waste Of Processing
Effort which adds no additional customer value to a part
Waste Of Waiting
Being idle between operations
Waste Of Transportation
Any movement of material that is not required for
“Just-In-Time” production
Waste Of Transportation
Any movement of material
that is not required for
“Just-In-Time” production

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Mura means IRREGULARITY
It can occur in:
• Production
• Parts flow
• Equipment usage
• Work done by team members
• Information flow
• Material deliveries, causing shortage or overstock
Benefits of eliminating Mura:
• Shorter Lead times
• Lower WIP
• Faster response time
• Lower cost
• Greater production flexibility
• Higher quality
• Better customer service
• Higher revenue
• Higher throughput
• Increased Profit

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Muri
Muri means strenuous conditions for both
workers and machines as well as for the work
process.
1. When machines are overburdened
• We run the risk of causing safety hazards, equipment
breakdowns and manufacturing defects.
2. When Team Members are overburdened
• The safety of the team members can be endangered
• Workers are more likely to become exhausted or fatigued
• It becomes difficult for team members to do each job with
attention to detail. This increases the frequency of defects, which
in turn adversely affects the quality.
Mura Means STRENUOUS Work

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5 Components
of Lean Thinking?

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PERFECTION
PULL FLOW
VALUE
STREAM
VALUE
Lean Guiding Principles

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• Define Customer : clearly understand
who the customer is.
• Define Value : Quality, schedule, target
cost etc.
Specify value from the end customer’s Perspective;
Value
Ask how your current products and processes
dissatisfy your customers value expectations,
• Price?
• Quality?
• Reliable Delivery?
• Rapid response to changes?
• ??

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Lean Manufacturing is an end-to-end
collection of processes that create value for
the customer
The value stream includes
• People
• Tools and technologies
• Physical facilities
• Communication channels
• Policies and procedures

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Value Stream
Identify all of the steps currently
required to move products from order
to delivery :
• Challenge every step: why is this
necessary?. What does the customer think?
• Critically assess value addition at each step.
• Eliminate / minimize non-value-added
activities.
Tip : Use Value Stream Mapping Tool

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Flow
Line-up all the steps that truly
create value so they occur in
rapid sequence;
1. Produce each product, everyday, in direct
proportion to demand.
2. Require that each step in the process be,
• Capable , right every time (SIX SIGMA)
• Available, always able to run (TPM)
• Adequate, with capacity to avoid bottleneck.
(right size tooling).

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 “Flow” refers to the movement of
material
through the plant.
• The material should not be stagnant
at any point in time from the receiving of
raw material to the shipping of finished
products
FLOW

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Pull
Customer should Pull value
through the Value Stream;
Through lead time reduction & correct value
specification, let customers get exactly what
they want & exactly when they want.

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A method of controlling the flow of resources by
replacing what has been consumed.
Pull System
Push vs Pull System
PUSH SYSTEM PULL SYSTEM
• Large Lots
• Hidden Problems
• Waste
• Poor Communication
• Approximation/Forecast
•Small Lots
•Visual Shop Floor
Management
•Minimal Waste
•Good Communication
•Actual / Real time Information

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Perfection
Continuously Pursue
Perfection;
• Create a clear vision.
• Production ideal state.
• Customer Value
• Make waste visible & evident.
• Problem Solving

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LEAN JOURNEY
It is truly a never ending journey. And the further we go
with the lean principles, the further they take you.
It’s like climbing a series of stairways through layers
of clouds… at each new level you reach, you become
aware of a whole new level above you – one that you
never knew existed.
Joseph Day, CFO, Fedunburg.

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Lean Thinking In Summary
• Value is defined by the customer
Value Stream identified
• All waste is eliminated
Value stream has been refined so that only value added
steps remain
• Product flows through the manufacturing system
Single piece flow is the ultimate state
• Production matches the customer “pull” rate
Material is pulled through the entire system
• Continuous “Pursuit of Perfection”
“Lean” is not an absolute …
… there are no rules only guidelines

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Best Quality - Lowest Cost - Shortest Lead Time- Best Safety- High
Morale
Through shortening the Production Flow by Eliminating Waste
Just in Time
“The right part
at the right time
in the right amount”
• Takt time planning
•Continuous flow
•Pull system
•Quick Changeover
•Integrated logistics
Jidoka
“Built in Quality”
•Automatic stops
•Person-machine
separation
•Error proofing
•In station quality
control
•Solve root cause of
problems (5 Why’s)
Leveled Production (heijunka)
Stable & standardized processes
Visual management
Make Problems
visible
People & Team work
Selection
Common goals
Fast decision making
Cross trained
Waste Reduction
Genchi Genbutsu
5 Why’s
Eyes for waste
Problem solving
Continuous Improvement
Toyota Production System

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Hiejunka
JIT Jidouka
TPS
GOOD QUALITY
PRODUCTS, BY EASIEST
WAY & LOWEST COST.
Toyota
Way
TPS
TPS is a tool to achieve
TOYOTA WAY
TOYOTA WAY
1. CONTRIBUTE TO INDUSTRY & ECONOMY.
2. CONTRIBUTE WELL-BEING AND STABILITY OF TEAM MEMBERS.
3. CONTRIBUTE TO THE OVERALL GROWTH OF OUR BUSINESS
ASSOCIATES AND THE AUTOMOBILE INDUSTRY.
Toyota Way

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Some Tools of Lean
•Quick Change Over (SMED)
•Poka Yoke (Jidoka)
•Identification of Waste
•OEE
•JIT
•Levelled Production (Heijunka)
•Work Element Analysis

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Lean Benefits
A comprehensive & patient implementation of lean leads to :
•Substantial reduction in
Inventories
Capital employed
Cost of quality
•Significant improvement in
Quality
Productivity
On-time delivery

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