presentation on LEAN by SSQCE

1. LEAN
A presentation by
THE SOCIETY
OF
STATISTICAL QUALITY CONTROL ENGINEERS
BHOPAL

2. Improving Operational Efficiency
through
LEAN

3. LEAN: Definition
LEAN is a set of practices that consider the expenditure of
resources for any goal other than the creation of value for the
end customer to be wasteful and therefore to be eliminated.
LEAN is a systematic approach to identifying and eliminating
non-valve-adding activities (waste) and achieving work flow by
the “pull” of the customer.
Originally developed as a production/ manufacturing practice by Toyota,
now, LEAN principles have proved equally beneficial to service sector too.
In short, LEAN thinking is LEAN because it provides a way to do more and more with less
and less human effort, less human equipment, less time, and less space; while coming
closer and closer to providing customers with exactly what they want.

4. About the LEAN
 LEAN is a continuous improvement initiative
 LEAN improves both productivity and quality
 LEAN requires change in way of thinking of all
employees
 LEAN is applicable to manufacturing
organizations as well as service organisations.
 LEAN results in cost reduction and improves
bottom line

5. LEAN OBJECTIVES
 Eliminate non-value-adding activities
 Identify and eliminate waste at every
stage of product/service

6. ABOUT VALUE
1) Value is a set of attributes of a product ( or service) specified or expected by
the ultimate customer for a given price.
2) Value-adding activities are those activities that change the form or functions of
the product .
3) Non-value-adding activities are those activities that do not change the form or
functions of the product.
4) LEAN requires value based design and production
5) What prevents defining value:
i) Most producers want to make what they have been making
ii) Most customers only know how to ask for some variant
of what they are already getting.
iii) Lack of interaction between producer and customer
on value aspects
6) Experience over the years shows that we focus more towards accelerating
value-adding activities than eliminating non-value adding activities.

7. EXAMPLES
Value adding activities
- Casting
- Machining
- Assembly
- Painting
Non- value adding activities
- Handling
- Transportation
- Storage
- Waiting
- Rework

8. THE QUALITY PERSPECTIVE OF LEAN
As LEAN is characterized by smooth work flow and minimum or
no inventories, any quality deficiency in the product /process
“surfaces” readily and timely corrective action becomes
mandatory.
Therefore LEAN results in:
i) Making things right first time
ii) All machines in good working condition
LEAN therefore improves quality too!

9. LEAN FOCUS
LEAN is focused on getting the right things
to the right place, at the right time in the right
quantity to achieve perfect work flow while
minimizing waste.

10. LEAN IMPLEMENTATION
A Three pronged strategy
1) Eliminate waste (Muda) at every stage
2) Make workflow smooth by removing obstacles/
un-evenness (Mura) in the system.
3) Avoid imposing unreasonable work (Muri) on
workers and machines.

11. Removing Muda:
Seven wastes
1) Over production
2) Excess inventory
3) Un-necessary processing
4) Un-necessary motion of people/equipment
5) Un-necessary transportation
6) Defects
7) Waiting

12. WHAT IS OVER PRODUCTION
(1) Making more than is needed by the next process/customer
(2) Making earlier than is needed by the next process/customer
(3) Making faster than is needed by the next process/customer

13. WHY REDUCE INVENTORY
1) Money invested in inventory could be used more productively
elsewhere.
2) Storage of inventory costs, particularly, if the storage is to be
done in a controlled environment.
3) Quality of product may deteriorate during storage.
4) Product deficiency, if any, is detected without delay

14. Removing Mura (unevenness)
 Unevenness in work flow causes pile-up of inventories of
material/WIP/product
 Reduce unevenness (Mura) by such measures as manpower
re-distribution/ multi skilling/ reduction in batch size/
SMED /line balancing/ production leveling.
 There should be no blockage in the material flow as well
as information flow

15. Removing Muri (overburden)
 Muri is all the unreasonable work that is imposed on workers and
machines such as carrying weights heavier than permitted or forcing
to work significantly faster than usual. It is pushing persons or
machines beyond their natural limits. It is asking a greater
level of performance from a process than it can handle without taking
shortcuts.
 Experience has shown that Muri causes frequent breakdowns and
deficiencies in products/processes which ultimately hinder smooth
workflow. Hence Muri is to be removed at every stage.

16. LEAN IMPLEMENTATION:
STEPS INVOLVED
1) Value stream mapping for the present state
2) Identification of bottleneck processes and inventory
build-up locations
3) Deciding on remedial measures:
a) Kanban approach
b) Workcell approach
c) Batchsizing approach
4) Value stream mapping for the future state
5) Implementation to realize future state value stream

17. COMMON LEAN TOOLS
LEAN TOOL APPLICATION
Value stream mapping Gives a good understanding of material flow,
information flow, bottlenecks and inventory build-
ups
Kanban Production and withdrawal kanbans (visual
displays) help operate “pull” system.
Workcell layout Reduces cycle time for small and repetitive
items. Reduces multiple waiting time.
Batch sizing/SMED * Helps balance production line. Reduces
inventory build-ups
Standardized work Optimizes cycle time and results in consistent
quality and delivery.
* SMED: Single Minute Exchange of Dies

18. CONVENTIONAL THINKING Vs LEAN THINKING
CONVENTIONAL THINKING LEAN THINKING
Man and Machine utilization is
important
Value addition is important
Performance is judged by
“numbers”
Performance is judged by “smoothness” of
workflow
Production is based on market
forecasts
Production is based on customer demands
Work flows due to “push” from the
preceding stage/supplier
Work flows by customer “pull”
Heap of materials/products/WIP
in the factory indicates lot of work
being done
Heavy inventories are a clear sign of poor work
flow and low productivity.
Good working is characterized by
visible motion of men and
machines.
Cut down unproductive motion of men and
machines so that efforts, thus saved, can be
utilized for enhancing productivity