kaizen

1. Presentation on Lean Manufacturing
Mfg. Eras & Definition
Waste & Lean mind set
in Organization
Fundamentals of Lean mfg..
System Implementation
Comparison with 6sigma
& Lean mfg. Results

2. Eras in Manufacturing
• Craft production
– has existed for centuries
• Mass production
– developed after World War I by Henry Ford and
General Motors’ Alfred Sloan
– Based on principles of Scientific Management
• Lean production
– developed in Japan after World War II
– pioneered by Eiji Toyoda and Taiichi Ohno of
Toyota

3. Comparison
large product varietyhigh productivity and
low cost
low productivity, and
high cost
high productivity and
low cost
standardized productsunique,
individualized, custom
made products
highly flexible
machines
expensive, single
purpose machines
simple, flexible tools
teams of multiskilled
workers
unskilled or
semiskilled workers
highly skilled workers
or artisans
LeanMassCraft

4. Why Lean or 6 Sigma?
Business generally hold competitive advantages
over their competitors for one of two reasons:
1.Unique Products:Having Superior product to
their competition,often in the form of
technological capabilities or niche marketing.
2.Low Cost Products:Having a superior
process to their competition,often in the form
of internal efficiencies or low cost production.

5. Lean Manufacturing a “brief history
at Toyota”
•Manufacturer of trucks and small automobiles in Post-WWII Japan
•A”need” was declared by Toyota’s President to discover a new
production method that would eliminate waste and help Toyota catch
up with foreign competitors.
•Chief engineers studied writings of Henry ford,then visited Ford
plants extensively in the 1950’s -begins the”war on waste”
•IMVP study in 1980’s early identified”Lean Manufacturing”
•1984,Toyota becomes a North American manufacturer with joint
venture at NUMMI plant in California.Stellar Results
•1990’s and Beyond,Lean Production Strategies adopted in numerous
Industries
•All other Car manufacturers have adopted Lean principles!

6. Organizations works on Lean
•Boeing
•BMW
•Carrier
•Caterpillar
•Chrysler
•Coca cola
•Dell
•Delhi
•Ford*
•General
Motors*
•US Navy*
•Pepsi,co
* =both lean and 6sigma

7. Lean Production
• There are many popular manufacturing buzz
words these days, including
– Just in time
– Continuous improvement
– Concurrent engineering
– Flexible manufacturing
– Total quality management
– Statistical process control
• These are all integral parts of lean production

8. What is Lean
Manufacturing?
It is a Strategy to achieve significant,
Continuous Improvement in Performance
through the elimination of all waste of time and
resources in the total Business Process

9. Seven types of wastes
• Processing itself
• Delay & Waiting
• Over Production
• Motion
• Transportation
• Inventory
• Scrap & Rework
Waste&Lean mind set
in Organization

10. Developing the Lean Mind sets
Cost added
70%
Value added
30%
30%
70%
30%
10%
0%
20%
40%
60%
80%
100%
Before After
Value added Cost added

11. 3-Step Rules to eliminate Waste
Total
90%
reduction
Step-I
50%
reduction
Step-II
2nd 50%
reduction
10% of Original Waste
Throughout the
Improvement
process,a company
must avoid settling
for superficial
solutions to cut
waste

12. Fundamentals in Lean
Manufacturing
• Technology Management
• People Management
• Systems Management
Fundamentals of Lean mfg..

13. Technology Management
• Structured flow manufacturing
• Small lot size production
• Setup Reduction
• Fitness for use

14. • Ideally a lot size of one or at the very least,equal to customer’s
order.
• Measured as time(and cost)from the last good piece of the
previous job or run to the first good piece of the new job to run.
• Short set up enables greater production feasibility,less inventory
& more capacity.
Category Scope
• Each next step in the total business throughput process is the
previous step’s customer
• One work center must meet the needs or requirements of the
next work centers precisely
Structured flow
manufacturing
• In functional manufacturing the ration of Work to Motion is low
because the products usually required a lot of transportation and
other movements during the manufacturing cycle.
Small lot
Production
Setup reduction
Fitness For use
Technology Management

15. People Management
• Total employee Involvement
• Control through Visibility
• Housekeeping
• Total quality focus

16. • When a problem occurs, so fast & how effective the decisive
action can be taken
• Visibility is used as a effective Communication media
• A place for everything and everything in it’s place
• Eliminate potential confusion,promote a safer environment and
reduction of waste of time,motion and resources
Category Scope
• Focus requires conformance to standards
• Quality of the product indicates the quality of the Process.If there are
problems in the product quality,there are unacceptable variations in
the manufacturing or Business process
• Focus encompasses the entire product chain from supplier to
customer
Employee
Involvement
• Improvement through small group improvement activities
• Trigger the Empowerment
Control through
visibility
House keeping
focus
Total quality
Focus
People Management

17. System Management
• Level load & Balanced flow
• M/c maintenance(JH)
• Supplier Partnerships
• Pull system

18. • High level operating performance with in the requiredtolerances
• Eliminate equipment as a source of process defect
• “Partner” implied long-term & stable relation ship with vendor
• Focus on reducing costs for everyone through shared quality
goals,design responsibility,delivery in total cost perspective
Category Scope
• Materials to be pulled when they are needed.
• Keeping the time of producing parts as close as possible to to the
time when parts are used
• Need more attention in “week link”
Level load and
Balanced flow
• Creates effective utilization of manufacturing resources
• Level load is scheduling products to be manufactured in equal
quantities during a given period of time
• Balanced flow -Continuous flow by effective application of mfg.
resources
Preventive
Maintenance(now
tbm/cbm & TPM way)
Supplier
partnership
Pull system
System Management

19. Major Targets….
• Absenteeism <1%
• More Multiskill
• Quick Adaptation
for new methods
• More Reliability
• Flexibility
• Zero breakdown
Man Machine
• No rejection
Material Method
• Visibility/Transparent
• Standard Operating
Procedures(3s..)

20. Steps Scope
Steps in Lean Manufacturing
• Layout change & Kanban for information & material flow
• Line Balancing,(Machine) & Operator Balancing
• Improve MTBF,Reduce MTTR & Reduce spare part consumption-
(TPM Implementation-Autonomous maintenance)
Value Stream
Mapping
• Study and plot a map of Material,information flow ,Manpower
inventory,cycle time,setup time etc.
Create flow
Balance to takt
time
Stabilize the
Production line
Levelled
Production
• Match the Customer demand by uniform production rate
Zero Defect • Defect free to customer Process
Improve the flow • Paced withdrawal and Spider man Concept Implementation

21. What is Value Stream map?
Value stream mapping is a tool
that helps you
‘to see and understand’
the flow of material and information
as a product makes its way through
the value stream

22. Value Stream Map-Over view
• Site Layout
• Internal/External
logistics
• Partners Value
stream
• Plant level”door to
door”
• Process layout-Area
layout/Cell design
• Internal/External
logistics
• Kaizen (Flow-value stream
improvement Vs Process-Elimination of
Waste)
• Production scheduling
according to demand
Macro Vs Micro
Macro Micro

23. Value Stream Map-Objective
• Lead time Reduction
• Inventory turn
Increases
• Speed to Marketing
• Waste Elimination
• Continuous
Improvement
Macro Vs Micro
Macro(Business Strategy) Micro(Site/Operations)

24. CURRENT STATE MAP
Supplier
Marketing
Month/ weekly /daily plan
Customer
I I
Takt time
54 Sec
1 X daily
Daily Req.
600 Nos.
1 X
Daily / weekly
Material
gate
pass
DeliveryAdvice
Process Ratio
MRP/EPO
C/T - Cycle Time C/O - Change Over Time
1 Day
= 0.6 %
Production Lead Time
Value added Time
=
780
129600
1
Inwarding
inspection
Uptime = 100%
C/T = 300s
C/O = 0
6(Shared)
Packing &
Shipping
2 (shared)
Raw Material
Stores
Kitting
Uptime = 100%
C/T = 60s
C/O = 0
Uptime = 100%
C/T = 60 s
C/O = 0
Order Plan
Uptime = 100%
C/T = 360 s
C/O = 0
1
1 Day
Prod. Lead time
Processing time
300 s 60 s 60 s 360s
Step 1 Value stream mapping
Production
DailyPlan
3 Days
3 Days
Process ratio - 0.6%
I
6 Days
6 Days

25. Spiderman
Supplier
Month/ weekly /daily plan
Customer
I
Takt time
54 Sec
1 X daily
Daily Req.
600 Nos.
1 X
Daily
Material
gate
pass
Process Ratio
C/T - Cycle Time C/O - Change Over Time
1 Day
= 2.36 %
Production Lead Time
Value added Time
=
765
32400
1
Inwarding
inspection
Uptime = 100%
C/T = 300s
C/O = 0
6
Finished goods
Shipping
2
Stores
Kitting
Uptime = 100%
C/T = 45s
C/O = 0
Uptime = 100%
C/T = 60 s
C/O = 0
Order Plan
Uptime = 100%
C/T = 360 s
C/O = 0
Prod. Lead time
Processing time
300 s 60 s 45 s 360s
1
Container size
reduction
Online
Packing
Kanban
Operation
FUTURE STATE MAPStep 1 Value stream mapping
•(shared) •(shared)
DeliveryAdvice
Re Design
Work Table
Marketing
MRP/EPO
Production
DailyPlan
1 Day
Process ratio - 2.36%
I
6 Days
6 Days

26. What is Super Market?
Super market is a place where
material is available for the customer,
based on their requirement.
From the point of view of a customer,
the Super Market -style purchase ensures
that there is not going to be an excess purchase,
customer goes out to buy
what is needed and when it is needed

27. Super Market Pull System
"ordering" KANBAN "withdrawal" KANBAN
CUSTOMER PROCESS
Customer process goes to supermarket and withdraws
what it needs when it needs it.
SUPPLYING PROCESS
Supplying process to replenish what was withdrawn.
PURPOSE
Controls Ordering at suplying process without trying to schedule.
"ordering" KANBAN
It Triggers Ordering of Materials.
"withdrawal" KANBAN
It is a shoping list that instructs the Material handler to get and
transfer materials.
RM-supermarket
Material Material
A B
Supplying
process
Customer
process

28. Introduce kanban for Supplier parts
Supplier
plant
store
Monthly
schedule
from F
Before After
Supplier
plant
Super market
SPARES KANBAN

29. Example of FIFO System
Part no
Kanban cards
FIFO Lane#
Withdrawal kanban
RM
Description
Supermarket
Down stream
process
Up stream
process
# FIFO Lane

30. Operator Balance Chart - Example Step 3 & 4

31. An Example of Paced Withdrawal
& Ordering
Drop kanban
at process center-1
Drop kanban
at process center-2
kanban
withdrawal Material
Requirement
Drop kanban
at process center-3 ordering kanban
PACEMAKER
PROCESS
"RM" supermarket
(repeat the cycle every pitch)
Vendor
ordering RM
2
3
1
4
Pull
System

32. What is Pace setting?
Pace setting is based on the Cycle time
of the process center which is directly having
impact on Customer Requirement.
Pitch has to be set according to the takt time
(available work time/customer requirement)
and quantity need to transfer,by multiplying both.

33. Why Pace setting?
To distribute the materials
evenly over time at the pacemaker process,
pace setting to be followed by Spider man..

34. Who is Spider Man?
The person from subsequent Process
who is Pulling material from supermarket
when he needs, is Known as Spider man.
He should come in a Paced manner
in order to have load-smoothing system of production.
It will eliminate the peaks and Valleys in the work load
to avoid excess production and excessive progression
in a particular process. This system is increasingly
easier in change the production plan.

35. Lean & 6Sigma - a comparison
Goal:
6 sigma = Reduce Variation
•Understand customer requirement(QFD)
•Focus on critical to quality variables
Lean=Remove waste
•Understand what customer sees as “value”(QFD)
•Eliminate everything that does not add value

36. Lean & 6Sigma - a comparison
Focus
6 sigma = Problem focused
•Variation is a problem that can be addressed
•Find the sources with the Largest economic impact
Lean=Flow focused
•The constant “start and stop” of product results in costs
that cannot be passed on to the customer
•Find the barriers to flow(Work flow Vs Work forced to flow)

37. Lean & 6Sigma - a comparison
Primary Benefit
6 sigma = Uniform Process output
•Predictable,dependable processes are always less expensive to
operate(less scrap,rework)
•Most companies grossly underestimate their COPQ
Lean=Reduced flow time
•Improving flow will always reduce manufacturing
cost(Ford,1926)

38. Lean & 6’Sigma - a comparison
Secondary Benefit
6 sigma
•Less Waste
•Faster throughput
•Improved quality
•Less Inventory
Lean
•Less Variation
•Uniform output
•Improved quality
•Less Inventory

39. How 6’Sigma helps Lean?!
Lean
•Waste elimination
•Flow
•At the pull of the Customer
•Continuous improvement
Six sigma
•Variation reduction
•Scrap / rework elimination
•Process control
•Continuous improvement
Speed + Accuracy
=Performance
•Lean exposes NVA/VA and makes value added flow
•6’Sigma reduces Variation of value added

40. Differences-Lean & 6 Sigma
•Lean is long term - there is no done
•Lean is enterprise wide - it will ultimately
involve all employees,as well as supplier and
customers
•6’Sigma Project focused,projects usually last
3-6 months
•6’Sigma Promoted Product reliability,Lean
promotes Organizational reliability.