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Introduction to Lean
Manufacturing
Trainers: Priyank Tewari and Shashank Sharma
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What is Lean Manufacturing?
• A systematic approach to the identification
and elimination of all forms of waste
from the production process
• Lean concepts were initially developed
and implemented by the Toyota Motor
Corporation
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What is Lean Manufacturing?
• In simple words, it is a methodology that
reduces your costs by eliminating wastes in
your production processes and increases
the profit margin and the morale of your
enterprise
• Techniques like: 5S, JIT, KANBAN,
KAIZEN, POKA YOKE, SOP, 6-Sigma
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Overview of Lean Management
• The purpose of lean is to remove all
forms of waste from the value
stream.
▫ Waste includes cycle time, labor,
materials, and energy.
• The chief obstacle is the fact that
waste often hides in plain sight, or is
built into activities.
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“If LEAN MANAGEMENT principles
are applied to Manufacturing, it is
called LEAN MANUFACTURING”
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4 basic principles of Lean Management
1. Elimination of Waste: eliminate any activities that do
not add value in an organization. Includes
overproduction, waiting time, processing, inventory, and
motion.
2. Increased Speed and Response: better process
designs allow efficient responses to customers needs
and the competitive environment.
3. Improved Quality: Poor quality creates waste, so
improving quality is essential to the lean environment.
4. Reduced Cost: simplifying processes and improving
efficiency translates to reduced costs.
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Concept of Friction, Waste, or Muda
“Understanding of friction, waste, or
muda is the foundation of the lean
Manufacturing”
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7 type of wastes in Manufacturing
1.
2.
3.
4.
5.
6.
7.
Transportation (between workstations, or
between supplier and customer)
Inventory
Motion
Waiting, including time in queue
Over-production
Over-processing: Non-value-adding activities
Defects: Cost of poor quality, scrap, rework,
and inspection
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TIM WOOD!
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An 8th waste has also been identified
• Un-utilized or under-utilized talent
• Arises when companies do not involve all of their
employees in continuous improvement
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Waste Often Hides in Plain View
• We cannot eliminate the waste of
material, labor, or other resources
until we recognize it as waste.
▫ A job can consist of 75 percent waste (or even
more).
• People become used to "living with it"
or "working around it."
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Demonstration of waste
• The solution is obvious in retrospect, but first,
we have to understand that there is waste (or a
problem).
• Building a wall
• Cleaning dirty parts
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“Waiting” waste – A golf analogy
• In a four hour golf game, the golf club is in
contact with the ball for less than 2 seconds
▫ The same proportion of value-adding to nonvalue-adding time prevails in many factories.
• Additional analogies:
▫ Waiting for other players = waiting for tools
▫ Walking = transportation
▫ Selecting a club and addressing the ball = setup
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7 type of wastes in Services
1. Delay: Customers waiting for service
2. Duplication: Re-entering data or repeating details
3. Unnecessary Movement: poor ergonomics while delivering
the service
4. Unclear communication: Excessive clarification or
communication over use of the service
5. Incorrect Inventory: Out of stock
6. Opportunity lost: Lost customers which now have to be
retained
7. Errors: Transaction errors, lost/damaged goods
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What do Manufacturing greats say about waste?
"I believe that the average farmer puts to a really useful
purpose only about 5 per cent. of the energy he expends.
… Not only is everything done by hand, but seldom is a
thought given to a logical arrangement. A farmer doing
his chores will walk up and down a rickety ladder a dozen
times. He will carry water for years instead of putting in a
few lengths of pipe. His whole idea, when there is extra
work to do, is to hire extra men. He thinks of putting
money into improvements as an expense. … It is waste
motion— waste effort— that makes farm prices high and
profits low"
--- (Henry Ford, 1922, My Life and Work).
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Eliminating waste can lead to reduced
costs and better bottom line or profit
margins
• Exercise <insert case study>
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Industrial Sector faces problems related to
production and processes
1. Production with defects
2. Wastage in the use of resources
3. Bad product quality
4. De-motivated employees
5. High yields on expense of customer satisfaction
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Manufacturers are always worrying!
1. Transport
2. Inventory
3. Motion
4. Waiting
Manufacturers
have to
constantly worry
about eliminating
these wastes!
5. Overproduction
6. Over Processing
7. Defects
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Why should Manufacturers worry?
1. This leads to high cost of production which greatly
impacts the profit margins
2. Big manufacturing enterprises like Railways, Maruti,
Tata Motors, JCB etc. want only high quality, zero defect
products to be sourced from the MSMEs
3. Foreign players coming due to FDI will only purchase
products from companies which have the most sound
production processes
4. Competition is becoming increasingly fierce and there is
no room for errors or wastes in your production
processes
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What are the benefits of Lean
Manufacturing?
1. Improved profit margins and reduced costs
2. Improved quality and fewer defects
3. Reduced Inventory
4. Space requirement decreases
5. Enhanced overall manufacturing flexibility
6. Makes continuous improvement possible
7. Creates safer working environment
8. Improves employee morale
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Green Lean Manufacturing
• "…we will not so lightly waste material simply
because we can reclaim it—for salvage involves
labour. The ideal is to have nothing to salvage."
—Henry Ford, Today and Tomorrow
• Pioneered by Henry Ford in the 1900’s
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Ford's Green Manufacturing
• Recovery and reuse of solvents
• Distillation of waste wood for chemicals yielded
enough money to pay 2000 workers.
▫ Kingsford charcoal
• Design of parts and processes to minimize
machining waste
• Reuse of packaging materials
• Slag
paving materials and cement
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Identification of Material and Energy
Wastes
• Material and energy waste can easily be built
into a job.
• Elimination of these wastes is central to "green"
manufacturing and the ISO 14001 standard and,
more importantly, very profitable.
• We cannot, however, remove this waste before
we identify it.
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Discussion
• Do you know of processes in which materials are
thrown away (or recycled)?
▫ If so, can the process or product be redesigned to
reduce the waste?
▫ Could the discarded materials be reused or
recycled in some manner?
• Can energy-intensive processes be made more
efficient?
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power source
regeneration
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Lean Manufacturing
Tools & Techniques
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5S - CANDO
• 5S-CANDO, a systematic approach to cleaning and
organizing the workplace, suppresses friction.
• Seiri (Sort)= Clearing up
▫ "When in doubt, throw it out."
• Seiton (Set in order)= Organizing (Arranging)
▫ "A place for everything and everything in its place."
• Seiso (Shine)= Cleaning (Neatness)
• Seiketsu (Standardize)= Standardization (Ongoing
improvement, holding the gains)
• Shitsuke (Sustain)= Discipline
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Visual Control
• "Basically, the intent is to make the status of the
operation clearly visible to anyone observing
that operation" (Wayne Smith, 1998).
• "Visual controls identify waste, abnormalities, or
departures from standards" (Caravaggio, in
Levinson, 1998)
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Examples of Visual Control
• 5S-CANDO (arranging)
• Jidoka or automation
▫ Andon lights and buzzers announce tool status.
• JIT: kanban squares, cards, containers.
▫ Lines on the floor to mark reorder points
• Safety: colored labels for materials
• Statistical process control charts: should be
clearly visible.
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Visible Management
• A visible production management system
should indicate:
(1) What the operation is trying to make
Measure the takt rate, or desired
production per unit time.
(2)What the operation is achieving
(3)What problems hinder the production goal?
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Just in Time (JIT) system
• In a pull system, employees at a given operation
(work station) go to the source of the required
parts, such as machining or subassembly, and
withdraw the units as they need them.
• By pulling parts from each preceding workstation,
the entire manufacturing process is synchronized to
the final-assembly schedule.
• Finished goods are made to coincide with the actual
rate of customer demand, resulting in minimal
inventories and maximum responsiveness.
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Just in Time (JIT) system
• JIT systems are sometimes called a Kanban
system.
• A kanban is a flag or a piece of paper that
contains all relevant information for an order.
• Slips, called kanban cards, are circulated within
the system to initiate withdrawal and production
items through the production process.
• The Kanban cards are simple visual controls.
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Small Batch and Single-Piece Flow
• Batching is the process of producing large
quantities of items as a group before being
transferred to the next operation.
• Lean operating systems seek to reduce batch
sizes using single-piece flow.
• A transfer batch is part of the original batch
(lot) size that is completed at one workstation
and moved to the next downstream
workstation.
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Drawbacks of Batch Processing
• Running equipment (e.g. a heat treatment
furnace) at less than full load, wastes capacity.
Waiting for a full load wastes time.
▫ Waste of capacity is not a problem except at a
constraint operation (Goldratt's Theory of
Constraints).
• Batches introduce waiting time when they arrive
at single-unit tools en masse.
▫ Batch-and-queue forces extra cycle time (waiting) into
the operation.
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Batch versus Single-Piece Flow
Processing
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Single-Unit Processing Reduces Cycle
Time
• Wayne Smith (1998) defines manufacturing
cycle efficiency as (Value-adding time)/(Total
cycle time)
▫ This is often less than 1 percent.
▫ Remember the Golf analogy: the club head is in
contact with the ball for less than two seconds in a
typical game.
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Single-Minute Exchange of Die (SMED)
1. Internal setup requires the tool to stop.
▫
Reduce internal setup time, or convert internal
to external setup.
2. External setup can be performed while the tool
is working on another job.
3. SMED reduces cycle time by facilitating smaller
lot sizes, mixed model production, and/or
single-unit flow
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Single-Minute Exchange of Die (SMED)
• SMED refers to quick setup or changeover of
tooling and fixtures in processes so that
multiple products in smaller batches can be run
on the same equipment.
• Reducing setup time frees up capacity that can
be producing output, and therefore, generating
revenue.
• Example: An Oil company reduced machine
setup from 9.3 hours to 9 minutes!
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Error-Proofing (Poka-Yoke)
• Error-proofing makes it difficult or impossible to
do the job the wrong way.
• Slots and keys, for example, prevent parts from
being assembled the wrong way.
• Process recipes and data entry also can be errorproofed.
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Lean Six - Sigma
• Six Sigma and Lean concepts and methods are
often combined into Lean Six Sigma
• Both are driven by customer requirements
• Both try to eliminate waste, reduce costs, speed
things up, and improve quality
• Both focus on real money savings
• Both rely on a systematic methodology
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Quality at source
• Quality at the Source
• Quality at the source focuses on doing it right the
first time.
• Continuous Improvement
• Six Sigma compliments lean systems to assure
high-quality output.
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Total Productive Maintenance
• TPM is focused on ensuring that operating systems
will perform their intended function reliably.
• TPM works to prevent equipment failures and
downtime, maximizing equipment effectiveness and
uptime.
• TPM tries to predict equipment failure rates and
perform maintenance before a problem arises.
• The principles of TPM also include employee
“ownership” of the equipment.
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KAIZEN
• Japanese word meaning
▫ Kai - gradual and orderly change, Zen for the better
• involves everyone in the organization
in small improvements using
conventional knowledge and tools
• without large capital investments.
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KAIZEN
• SDCA to PDCA – standardized work [Deming’s
cycle]
• Quality first
▫ If something can be improved, a measure must exist
by which improvement can be quantified – quality
characteristics
• Upstream management
• Speak with data
• Variability control and recurrence prevention
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Key Steps in Transforming
a Company to the Lean Approach
1. Establish a steering team—conduct strategic
planning session
2. Train the steering team and the model line team in
the disciplines of lean
3. Perform PQR (product-quantity-routing) analysis
4. Identify value streams—select a value stream
5. Calculate model line takt time
6. Value stream map the model line—assemble current
state map
7. Balance the line—assign standard work
8. Establish standard WIP (inventory levels)
9. Test the system (virtual cell)—document results
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Key Steps in Transforming
a Company to the Lean Approach
10.
11.
12.
13.
14.
15.
16.
17.
Setup reduction event
Conduct 5S event—apply TPM techniques
Establish visual signals—reduce paperwork
Explore alternative flow patterns
Develop block layout
Develop detailed layout
Execute move
Select next value stream and repeat
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Lean Leadership
• Three Models:
1. “Old” Dictator style: “Do it MY way”
2. The 1980’s “Empowerment” style: “Do it
YOUR way”
3. “Lean” style: “Follow me and let’s figure this
out together”
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Summary
• Business activities can contain enormous
quantities of built-in waste (muda, friction).
• The greatest obstacle to the waste's removal is
usually failure to recognize it.
• Lean manufacturing includes techniques for
recognition and removal of the waste.
• This delivers an overwhelming competitive
advantage.
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A journey of continuous improvement
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