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Term Paper

PRACTICE OF LEAN MANAGEMENT FEATURES AND BENEFITS


Managing Quality for Performance Excellence
Academic Group 05

2012
Rajat Jain (PGP-11-057) Surender Reddy A. (PGP-11-079) Vinod Antony (PGP-11-086) Gurudutt Kashyap (PGP-11-114) Isha Singh (PGP-11-117) Siddhartha (PGP-11-162)
S P Jain Institute of Management

Practice of Lean Management Features & Benefits

Abstract: Lean management is the dedicated commitment of any organization for increasing the output while simultaneously decreasing the inputs for various processes. It is not about straining the assets in the process of reducing these inputs, but its more about careful evaluation and sustaining or rather building on best advantage utilization of resources. Thus in totality it is about imbibing the philosophy of continuous improvement with relentless efforts towards the reduction of wastage. Value Stream Mapping 5S, JIT, poka-yoke are various such tools that facilitate these organizations to pursue and thereby help them realize their dreams of lean implementation. Lean from being just a concept that was restricted to large scale automobile manufacturing units has now developed into a culture with its base currently seen in almost all the manufacturing and even the service organizations, without any relevance to their scale of operation. During this course of transformation, lean manufacturing in itself has developed into a vast subject demonstrating the tools and techniques related to each of the areas of Cellular Manufacturing, Continuous Improvement, Just-InTime, Production Smoothing, Standardization of work, Total Productive Maintenance & Other Waste Reduction methods. In order to limit the enormity of the scope, we have limited our discussion in this paper to few important areas which any organization should mainly focus on, in order to develop the culture of Lean in its processes and operations. The discussion starts with a mention about the evolution of lean thinking process over the years. Then we try to find the difference between various process development systems with an attempt to understand how lean thinking is different from other systems. Then we head onto the use of the lean thinking process in identifying the eight deadly wastes followed by the four most important tools of lean manufacturing Value Stream Mapping, 5S, TPM, and Gemba, which acts as a cultural change driver. Further we have discussed how any organization interested in deriving the maximum benefits of Lean philosophy should drive the cultural change with full commitment from the top management. The benefits and features of all these tools are provided at each stage of discussion to give a comprehensive view of the impact that the implementation of these tools will have on an organization.

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Introduction: The term Lean was coined by John Krafcik, an MIT graduate in 1988. This term later became popular after the publication of the book Lean Thinking authored by James Womack and Daniel Jones. On cursory glance though, the history of lean seems to be quite short, it actually dates back to age old days, the time when the mass production in manufacturing started. Another noteworthy point about the word Lean is that its not a new concept at all. Its just a great way of putting best ideas and successes of the manufacturing processes together from the history of mass production. Lean is also about using many of these age old tools and concepts combined with some new techniques to help the companies remove the waste from their processes. This term was primarily associated with large manufacturing units till the early 2000s. But after realizing the importance and benefits of being lean, many industries including the service organizations like hotels, BPOs and financial Institutions, without much relevance to their scale of production, have started adopting lean principles in the last one decade. Thus, lean today is, more of a generic term, with its area of influence no more confined to just the manufacturing sector. Also the lean thinking process has become more matured in the last two decades by taking a shift in its focal point from 5S everywhere, popcorn Kaizens, War on waste, Lean cheerleaders & Only lean tools type of thinking of early 1990s to Value Stream Mapping, Systems Approach, and mix of Tools & Teams based thinking by the start of 21st century. Post 2010 this thinking was further refined with increased focus on Problem solving approach, People Development, Mentoring & Development, and Culture & techniques fit. Lean History: Lean thinking in manufacturing is said to have started in the late 1700s with base in crafts & guilds, cottage industry. Other major development in the direction of lean thinking came with the standardization of products in the manufacturing of muskets which came towards the mid-19th century. However much of these lean developments started taking place from the beginning of the 20th century. This is mainly because of the increased competition between the automobile sectors of Japan and USA. Japanese players; however seemed to be the distinct winners for having produced high quality cars at lower costs because of extensive development and deployment of Lean principles. Even today for many people Lean is just a modification of the Toyota Production System. This is because of the great contribution to the foundations of Lean which has come from the ideas developed at Toyotas units. 2|Page Academic Group | 05

Practice of Lean Management Features & Benefits

Following representations give a snapshot of the major changes that have led to the present day lean thinking process.

Pre 1700s: Cottage Industry, crafts & guilds 1750s: Industrial Revolution - begins mass production 1850: Eli Whitney builds Muskets with interchangeable parts 1913: First automobile line at Highland Park 1927: Ford opens River Rouge complex 1945: Mass production thrives 1943-1978: Toyota Production System (TPS) developed in Japan by Taiichi Ohno

1978: Second Oil Shock Early 1980s: Japanese auto makers emerge as quality leaders 1985: US auto industry crisis 1990: MIT International Motor Vehicle Research program 1990s: Lean application to non-automotive 1997: Enterprise-level Lean roll-out 1999: Enterprise-level Lean multi-company value stream optimizations

Key differences: Though Lean, Six Sigma, TPM are interchangeably used by many people, each of these terms refer to a set of distinct practices that are being pursued by the organizations in their processes or operations. For instance the focus in a Lean organization, essentially referring to a value adding organization can be much different from an organization believing in the practices of Six Sigma or TPM alone. Six sigma and TPM in same order also refer to a perfect and smooth organization respectively. Also, there can be integrated use of these practices in some organizations, like in the case Lean Six Sigma organization it will refer to a value adding and perfect organization. World Class organization refers to a value adding, perfect and smooth organization.

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Following tables provide the key differences of various process improvement systems with their impact on the various process deliverables that can be realized by pursuing the principles of these systems: Energy, Distance, Work, Task, Stock, Waste, Lag Seeks to minimize, through prevention and predictions if possible Seeks to minimize, through iterative observations Parameters to measure Seeks to eliminate Inconsequential

Product

Rate

Value Requirements reflects desirability, so they will be checked for conformance Undesirable results are noted, in hopes of remediation Inconsequential Process is not tolerated if results are not desirable Inconsequential Demand reflects desirability, so it too drives design and operation of processes

Quality Management

The requirements that need to be checked for conformance

Seeks to minimize

Kaizen

A parameter to measure A parameter to measure A goal to aim for

Seeks to minimize

ISO 9000

Inconsequential Seeks to minimize Inconsequential

Reengineering Change Management

Inconsequential Demand drives design and operation of processes

Lean Manufacturing

Seeks to minimize

Seeks to minimize

Six Sigma

Parameters to measure, seeks to maintain status quo

A parameter to measure

A parameter to measure

Inconsequential

Focus Quality Management Kaizen ISO 9000 4|Page Soft Soft Hard

Intensity of change Incremental Incremental Incremental

Strictness Ad hoc Ad hoc Strict

Automation Manual Manual Auto

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Reengineering

Everything

Radical overhaul, as many times as possible Tweak at first, replace when all else fails Replace as needed, or tweak if possible Incremental

Ad hoc

Manual

Change Management Lean Manufacturing Six Sigma

Soft

Ad hoc

Manual

Soft Hard

Strict Strict

Auto Auto

Lean Manufacturing: Eight Deadly wastes The principle of 7 wastes was conceptualized at Toyota. But with changing times and adaptation of a more holistic view towards organization wherein the people as well as the process are equally important we have rectified and added an additional waste, which refers to the Employee or people waste thus we have what are called as 8 deadly wastes. As we see later in this discussion, the key to a Lean manufacturing environment is to eliminate these eight different wastes (which can be represented by the acronym, DOWNTIME), these wastes can be realized by every organization in its operations in one form or the other. The concept of eight wastes is developed as part of Toyota Production System and the eight wastes are as shown below. 1. Defect : Repair or rework of a product or service to fulfill customer requirements as well as scrap waste resulting from materials deemed to be un-repairable or un-reworkable 2. Over-Production : Producing more than is needed, faster than needed or before time of need 3. Waiting: Idle time that occurs when codependent events are not fully synchronized 4. Non value added processing: Redundant effort which adds no value to a product/service 5. Transportation: Any material movement that doesnt directly support immediate production 6. Inventory: Any supply in excess of process requirements necessary to produce goods or services in a Just-in-Time manner 7. Motion: Any movement of people which does not contribute added value to the product/service 8. Employee/people waste: Not using peoples mental, creative and physical abilities These eight forms of wastes which are identified through Lean thinking process are the things that do not add value to the product or service from the customers perspective. Mentioned below is a situation demonstrating how these wastes can be seen even in the world class manufacturing plants performing with over 96% time efficiency. Background:

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Fiberglass manufacturing involves a set of continuous round the clock operations of Hot-End Department and Cold-End (or Conversion) Departments. Scope of Hot End ranges from the stage where liquid glass is solidified, while being drawn into thin fibers, with the application of a size coat (which provides the protective coating on the brittle glass), then wound onto winders, and the fibre is then dried for the removal of the moisture applied so far, and for the uniform curing of size coat to make the fiber compatible for various composite processes at the customers end. Cold End operations involve the processing of the dried product fed from Hot End into different product categories and then the packing based on the requirements. The eight hidden wastes in one particular fiberglass plant are 1. Transportation: The entire product category can be broadly classified into 4 types with each category having specific dedicated area for parking. So each category of product coming out from oven after drying is routed via these parking places for the final processing happening in each of the dedicated conversion areas. The parking places are designed for handling normal product volumes, and to reduce the transportation to the maximum possible extent. But, due to reasons like, line breakdown or increase in demand for any one particular category of products, the material starts overflowing. This leads to unnecessary transportation of material (being shifted to parking areas that are meant for other products) because of use of sub-optimized paths, consuming more time as well resources. 2. Inventory: Because of the limitations with the process output, which cannot be tweaked so easily because the extreme sensitivity of the process, often production volumes are kept constant for months together taking into account the demand forecasts planned for a span of about 6 months to one year. This kind of production will often lead to very high inventory levels during specific time of the year. 3. Motion: Quality Assurance Department (QAD) often for conducting product development, quality assurance trials maintains separate trolleys of product which has to be moved to inspection area in all the shifts round the clock so that this product doesnt get mixed with normal production. This procedure gives the flexible option for the QAD operator to perform the required tests during his free time in the general shift. But this Inspection area (under the control of Hot End Department) is near cake-pull area, far away from conversion areas with Quality checks to be done in the respective conversion areas. This makes all those operators involved with the movement of these product trial trolleys on each occasion both while moving the trolleys away from and then towards the conversion areas take those extra steps, often leading to frustration amongst workmen. 4. Waiting: Because of both the upstream and downstream variations in the process of winding, the winding operators will often waste time in waiting for the empty hanger, onto which wound product has to be loaded to move the product from winding area to drying ovens. Here the upstream variations refer to the continuity in the process of forming to deliver the material for winder at constant rate. Downstream variations refer to the efficiency of the operators at the oven in unloading the material on hangers so that these can be quickly reused by the winding operators without having to wait for the much of the time. Also inherent design of the process line itself limits the operators at the farther end of the conveyor to often face this problem of hanger being full by the time it reaches their end. This makes them wait further more leading to what is called as wastage of time due to waiting. 6|Page Academic Group | 05

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5. Overproduction: Push kind of manufacturing in this particular industry. Thereby they produce quantities which are often more than market demand because frequent curtailment and enhancement may hamper the efficiency of the sensitive, continuous fiberglass manufacturing process in a big way. At times, because of these provisions, warehouse stock used to pile up to as much as 1.25 times that of monthly production capacity which is otherwise an extra 25% of material, which is a waste as per the definition of wastage due to overproduction 6. Over-Processing: Everyday morning, as part of regular quality checks, samples of various products are to be collected from all the winders to validate if LOI (Loss On Ignition) %, Tex (gram/KM) of fiber are in specified range. Because of the variations that are caused in the product moisture during each transfer (because of the excess startup RPM of the winder), it is required to run for about 2 minutes after a transfer to collect the sample under stable conditions. But, most of the times, operators over-process these samples for beyond 2 minutes for various reasons, say to avoid possible process disturbance during transfers, or because of laziness of having to work on various winders at a time, or because of being involved with the unloading of product from other winders, thereby effectively wasting the material which is processed beyond 2 minutes time. Other prominent example for over-processing is the extra stripping of fiber which is done to avoid the colour on the inner periphery of product, caused because of paper sleeve used while winding and drying. This stripping is to ensure that colored product does not reach the end customer. But again, as these decisions are based on the individual operators perceptions, there is always a possibility for variations with the amount of waste that is being generated at each operator because of over processing. 7. Defects: Excess ambient drying of the winding product before oven either because of oven breakdown or for not following FIFO method of product loading will result in the excess coloration of product, which is deemed as a defective product because of the stringent quality norms. Otherwise, all these defects will again lead to wastage adding no value to the customer. 8. Unused Creativity of the Employee: Lack of proper SOPs and training to regular operators will make supervisors spend more time for repetitive trivial works. E.g., a charge hand (high skilled operator) who is very creative in identifying and correcting the thermal patterns of the bushings, there by stabilizing the forming process (thereby the efficiency), often spends much of the time in correcting the behavior of other cake-pull operators under him or in assisting them with various other less value adding activities without making himself available for working on much more value adding tasks which improve the overall process. Thus, lack of SOPs and proper training here is creating a waste in the form of unused creativity of the employee. So based on above examples, Lean philosophy requires us to have a holistic view of the processes and operations to analyze and thereby understand each aspect as to how they interface with each other. Once, this kind approach is followed in the identification of wastes, i.e. non-value added activities, the next logical step as suggested by the lean philosophy is to reduce these non-value added activities to increase the percentage share of value added activities in the entire process cycle. This is done by using

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the tool called as Value Stream Mapping, which is believed to be the stair-case for a firm entering into the house of Lean Manufacturing.

Value Stream Mapping (VSM) VSM is the process of identifying and charting the flow of information, processes, and physical goods across the entire supply chain right from the raw material supplier to the possession of the consumer. It is a basic planning tool for identifying the above mentioned eight wastes, thereby designing solutions, and then communicating lean concepts. Value stream mapping process can be divided into 2 phases starting with the identification of current state map of the process and then targeting on a defined work plan for reaching the proposed future state map. Objectives of VSM: Visualization of Material and Information Flows Facilitates the Identification and Elimination of Waste and Sources of Waste Supports the prioritization of Continuous Improvement activities at the Plant and Value Stream levels Supports Constraint Analysis Provides a common language for Process Evaluation

Nomenclature of VSM:

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Phase I - Making current state Map: 1. A traditional flow chart is drawn initially, with uniform details added and with maximum focus on critical path. All the possible elements such as inspection, testing, and most importantly productivity are given equal importance for the mention on the map. 2. Inventory points, transportation elements, vendor facilities and customer end points are added to this flow chart 3. Functional groups and information flows are attached with the identification of exact information that is being transferred. 4. Data values like lead time, setup & process times, transportation distances & times etc. are developed and attached to all the elements. Following diagram shows the Value Stream Map drawn for the process of Direct Rovings right from the stage of its raw material sourcing needed at various instances of product development to the final stage of finished product reaching the end customer. The process is similar to the industry background provided above while illustrating the 8 wastes that are hidden in a fiberglass manufacturing unit. When seen from the customers perspective this Value Stream map shows that there are only about 10% of value adding time in the entire process. This map now becomes the current level map for the organisation to set the basis and define the scope of improvement in moving to phase II of the Value Stream Mapping.

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Phase II - Future state map and work plan: 1. Using the current state map as the base line and keeping in mind the definitions of 8 wastes mentioned above, each element is verified and its related waste is determined with focus on one element at a time. Some measurement scale is attached to each waste. 2. Possible applications of Quality at Source, SMED, Batch Reduction, Point-of-use and Kanban systems are looked at. Again some measurement scale has to be attached for the measurement of expected productivity gains. 3. Estimates of the resources required to accomplish the changes are made with particular attention to human resource requirement. Also care has to be taken care in not overestimating the available human resources. 4. Easily attainable changes consistent with the resources available during a selected time frame are selected ( with first cycle not more than 6 to 10 weeks) 5. A new map that is consistent with the change selections is drawn. 6. With the selected projects a detailed work plan of who, what, when and how has to be made. Regular progress reviews should be rescheduled, with the need for planned deviations agreed in advance. 7. At the conclusion of the work, the map has to be adjusted to reflect any deviations. The map then formed becomes another current state map which can be reworked for improvement with another cycle of steps mentioned in second phase. Value stream maps are of three types: 1. Production: Raw material to the customer 2. Design: Design to the concept launch 3. Administrative: Order taking to Delivery Benefits of using VSM: Highlights dependencies Identifies opportunities for the application of specific tools & strategies Improves understanding of highly complex systems Synchronizes and prioritizes continuous improvement activities

5S 5S was developed by Hiroyuki Hirano. It describes how to organize a work space for efficiency and effectiveness by identifying and storing the items used, maintaining the area and items, and sustaining the new order. It creates a better work place, better working environment and changes the outlook & behavior of the employees. It is a gateway for TPM.

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Phases of 5S There are five primary 5S phases: sorting, systematic arrangement, sweeping or shining, standardizing, and sustaining. 1. Sorting (Seiri) In this phase, the aim is to distinguish between the necessary and unnecessary items and eliminating all unnecessary items. One of the methods used in this phase is Red tagging. The Red Tagging is a simple method for identifying potentially unnecessary items in the factory, evaluating their usefulness & dealing with them appropriately. Red tags are put on items in the factory that need to be evaluated as being necessary or unnecessary. 2. Systematic arrangement (Seiton) The aim is to have an efficient layout and placement for everything i.e. Place for everything and everything in its place. This helps in increasing the productivity by eliminating the waste of looking for things. One of the key principles is 30 second storage and retrieval i.e. to be able to store an item in its designated place or to retrieve it within 30 seconds. 3. Sweeping or Shining (Seiso) This phase involves keeping workspace and all equipment clean, tidy and organized. At the end of each shift the work area is to be cleaned and everything has to be restored to its place. This makes it easy to know what goes where and ensures that everything is where it belongs. Spills, leaks, and other messes also become a visual signal for equipment or process steps that need attention. A key point is that maintaining cleanliness should be part of the daily work, not an occasional activity initiated when things get out of control. 4. Standardizing (Seiketsu) Seiketsu means making the work practices consistent and standardized. All work stations for a particular job should be identical. All employees doing the same job should be able to work in any station with the same tools that are in the same location in every station. Everyone should know exactly what his or her responsibilities are for adhering to the first 3 S's. One of the practices involved in this phase is visual management which means putting displays on things they are for in a way that it is easy to see it from distance. 5. Sustaining the Practice (Shitsuke) The last phase means maintaining and reviewing standards. Once the previous 4 S's have been established, they become the new way to operate. While sustaining the new way, we should also be thinking about yet better ways. When an issue arises such as a suggested a new way of working, a new tool or a new output requirement, review the first 4 S's and make changes as appropriate. 5S should be made as a habit and be continually improved. 11 | P a g e Academic Group | 05

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Benefits of 5S: Improve safety Decreases down time Raises employee morale Identifies problems more quickly Develops control through visibility Increases product and process quality Strengthens employees pride in their work Promotes stronger communication among staff Empowers employees to sustain their work area

TPM Total productive maintenance (TPM) originated in Japan in 1971 as a method for improved machine availability, through better utilization of maintenance and production resources. It is a proactive approach that essentially aims to identify issues as soon as possible and plan to prevent any issues before occurrence. The motto of TPM is "zero error, zero work-related accident, and zero loss". In TPM the machine operator is trained to perform many day-to-day tasks like simple maintenance and fault-finding. The operators are enabled to understand the machinery and identify potential problems, correcting them before they can impact production and by doing so, decrease downtime and reduce costs of production. 8 Pillars of TPM 1. Kobetsu Kaizen Kobetsu Kaizen, a Japanese word for focused improvement, which means prioritizing the most important losses and eliminating them. Sixteen losses have been identified and divided into three categories as per Kobetsu Kaizen. They are as follows: 1. Machine - Equipment failure, startup loss, operation failure, shutdown, speed loss, minor stopping/idling, defect/rework and setup & adjustment loss. 2. Man - Multiple handling, measurement & adjustment, operating skill, management, line organization. 3. Material & energy Energy/ power loss, yield loss, die/tool/jig/material loss a. These are Individual Improvements and focus on losses, which when eliminated, give significant improvement in terms of increase in production, reduction of quality defects, cost, inventory, accidents, etc. Cross-functional project teams including personnel from various disciplines such as Production, Planned Maintenance, Quality Maintenance and Operators perform this activity to minimize and eliminate losses with respect to P (productivity), Q (quality), C (cost), D (delivery), S (safety) & M (morale). 12 | P a g e Academic Group | 05

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2. Jishu Hozen Jishu Hozen, a Japanese word for autonomous maintenance, implies that the operators themselves maintain their machines in highest standards. These operators are trained to do so through the structured approach of 7 steps of Jishu Hozen. Each step has a focus, an activity to be carried out and certain results to be achieved. The seven steps are: 1. 2. 3. 4. 5. 6. 7. Initial clean up Countermeasure against causes of forced deterioration Preparation of tentative standards General inspection Autonomous checkups Orderliness & tidiness All out autonomous management

3. Planned Maintenance This pillar emphasizes Productive Maintenance approach. Productive maintenance means a blend of all maintenance approaches like Breakdown Maintenance, Time Based Maintenance, Condition based maintenance Corrective Maintenance & Maintenance Prevention with a special care on profitability. Pillar encompasses activities related to mean time between failures (MTBF) or mean time to repair (MTTR), which are index of reliability and maintainability respectively. 4. Initial Flow Control The aim of is to establish a system to launch the production of new product & new equipment in a minimum run up time. Concept of this Pillar is that equipment designing should be reflected with problems or experiences on the same or similar equipment installed in the plant to have an initial control. At the same time concept of Life Cycle Costing (L.C.C.) should be the base at the time of designing new equipment instead of Cheaper the better. 5. Hinshitsu Hozen Hinshitsu Hozen means quality maintenance. Quality Maintenance is establishment of machine conditions that will not allow the occurrence of defects further control of such conditions is required to sustain Zero Defect. The ultimate aim is to develop perfect machine for perfect quality. We gain understanding of what parts of the equipment affect product quality and begin to eliminate current quality concerns, and then move to potential quality concerns. Transition is from reactive to proactive (Quality Control to Quality Assurance) 6. Safety, Health &Environment The main role of SHE (Safety, Hygiene & Environment) is, to create Safe & healthy work place where no accidents occur, uncover & improve hazardous areas and do activities that preserve environment. Pillar is based on the belief that Accidents can be prevented, if and only if the same can 13 | P a g e Academic Group | 05

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be predicted. SHE pillar provides basic guidelines about how the safety audit should really be performed. Pillar has a different definition of Accident and as per concept any Near Miss Case is an accident and should be analyzed as per Genba Genbutsu approach. 7. Office TPM The objective is to improve productivity and efficiency in the administrative functions by identifying and eliminating losses. This includes analyzing processes and procedures towards increased office automation. Office TPM addresses seven major losses: Processing loss Cost loss including in areas such as procurement, accounts, marketing, sales leading to high inventories Communication loss Idle loss Set-up loss Accuracy loss Non-value-added loss

8. Education & Training The aim is the formation of Autonomous workers who have skill & technique for autonomous maintenance. It also aims at skill development for uniformity of work practices. Education is given to operators to upgrade their skill. It is not sufficient to know only "Know-How" they should also learn "Know-why". By experience they gain, "Know-How" i.e.to overcome a problem what is to be done. This they do without knowing the root cause of the problem and why they are doing so. Hence it become necessary to train them on knowing "Know-why". The employees should be trained to achieve the four phases of skill. The goal is to create a factory full of experts. The different phases of skills are: Phase 1: Do not know. Phase 2: Know the theory but cannot do. Phase 3: Can do but cannot teach Phase 4: Can do and also teach. Benefits of TPM Some of the benefits of TPM are: Increase in productivity and OPE (Overall Plant Efficiency ) Rectification of customer complaints Reduction in manufacturing cost Satisfy the customers needs by 100 % (Delivering the right quantity at the right time, with right quality) Reduce accidents. Higher confidence level among the employees. Keep the work place clean, neat and attractive. 14 | P a g e Academic Group | 05

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Favorable change in the attitude of the operators. Achieve goals by working as team. Share knowledge and experience. The workers get a feeling of owning the machine.

Gemba Gemba is a Japanese word for 'real place,' where the real action takes place. In a business context, Gemba is where the value-adding activities to satisfy the customer are carried out. In the manufacturing industry, there are three major activities directly related to earning money - developing, producing and selling products. Gemba refers to these three sites of activities. In a service sector, Gemba can be identified as the stage where the customers encounter the services offered. In the hotel business, for instance, Gemba is everywhere: the lobby, the dining room, guest rooms, the receptionist's desk, check-in counters, and the concierge station. The same goes for employee's working desks in offices and for telephone operators sitting in front of switchboards. Thus, Gemba spans a multitude of offices and administrative functions. In the following section, the five golden rules of Gemba are illustrated along with examples from a product company. 1. When a trouble (abnormality) happens, go to Gemba first Whenever an issue was reported, say during testing, the first thing to perform was to reproduce it. This can be identified as the first step of Gemba. 2. Check with Gembutsu (machines, tools, rejects, and customer complaints) Gembutsu a Japanese term means some tangible things on which you can put your hands. If a machine is down, the machine itself is Gembutsu. If a customer is complaining, the customer is Gembutsu. Similarly whenever s customer reported the issue, we were advised to check for the conditions under which the issue would occur 3. Take temporary countermeasures on the spot When the timelines were critical, the customer was provided with a work around to the issue, so that he was not stalled. The investigation would proceed in parallel. 4. Find out the root cause By repeating the question why several times, you can find out the root cause of the problem. This would involve brain storming from various teams involved and active debugging using tools. 5. Standardize for prevention of recurrence 15 | P a g e Academic Group | 05

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Once the issue was identified, a suitable prevention mechanism was added to the IP, ensuring the issue does not re occur. Following are the other major tools with their own word substitution of their key focus areas Jidoka: Autonomation Poka-Yoke: Mistake Proofing Kaizen: Continuous Improvement Root Cause Analysis: Problem Solving PDCA: Plan Do Check Act cycle Kanban: Sign Board

Lean Implementation After having being equipped with the knowledge of the lean tools, the implementation of these lean principles for an organization can be achieved in five phases as shown below:

Voice of Customer Project Charter Leadership Involvement Mix of lean and business experts Develop communicat ion channel Specify

Process Mapping
Training of Team Value Stream Mapping Process Flow analysis Gemba walkthrough/ Facility Analysis Metrics Analysis

Waste Analysis Root cause analysis 5-S TPM Visual Management Autonomous Maintenance SMED

Create work flow & Pull system of production


Standard Work Mistake Proofing Production levelling Facility layout One Piece Flow Kanban

Standard Operating Procedures Control Plan SPC & SQC Kaizen

value to customer & Team Building

Recognize & eliminate Wastes

Target achieving Perfection & sustain the changes

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Role of Management Studies and a number of surveys conducted across various companies and industries like pharmacy, automobile and even service industries have reflected that success of lean implementation has a lot to do with the human resource aspect of an organization. Thus like any other change the support of top management is very crucial for bringing about this change in organizational culture, working and structure. Not only are they required to define the goal but they are the ones responsible for motivating people, so as to align their personal goals to organizational goals and objectives. Further they are the ones who drive people and organizational systems to overcome obstacles that obstruct the way to success. So in order to make Lean sustainable in an organization the management of the organization needs to conduct the Five tests of managements commitment to Lean, they need to ask the following five questions 1. Is your management as well as your teams actively studying about lean principles? 2. Is the management willing to listen to critiques of your facility and then understand and change the areas in your facility that is not lean? 3. Does your organisation honestly and accurately assess its responsiveness and competitiveness on a global basis? 4. Is the top management totally engaged in the lean transition with their time, presence, attention and support 5. Are you willing to ask, answer to and act on, How can I make this facility more flexible, more responsive and more competitive? In case the answer to all of the above mentioned questions is a yes then that organization is on the right path for sustaining the lean advantage and inculcating a lean discipline and culture in the organization.

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Also, as Toyota formalized in 2001, the basis for lean management is based on the key managerial values and attitudes which are needed to sustain continuous improvement in the long run. These managerial values are built on top the two pillars Continuous Improvement & Respect for People as shown in the figure below. Here the base for the pillar Respect for people is based on two defining principles of Respect and Team work, which necessitates the need for taking every stakeholders problem seriously, developing individuals through team-solving.

Sustenance of Lean Advantage: Lean implementation needs a cultural change in the organization. In order to sustain the long term benefits special attention should be given to the following key drivers which can lead to the failure of any lean implementation strategy 1. 2. 3. 4. 5. 6. Lack of long term support and drive by Top Management. Buy-In and consensus of the team missing. Lack of Lean Culture and Discipline. Ineffective change management. Not combining the right Lean tools. Assumptions that associate know how to comply with best practices and standard operating procedures. 7. Non-involvement of management in first hand process observation. 8. Lapse in lean effectiveness measurement 9. Assumption that supervisors are expert in lean management. Therefore in such cases either the lean procedures will be of no advantage or limited advantage. A major underlying root cause behind these failures is the fact that in many organizations Lean implementation is not associated with continuous improvement and is treated as a onetime exercise. In reality lean manufacturing is a never ending process and it takes time and adequate and capable resources to produce desired results. Lean is for organizations that look for long term sustainable value and not crisis management.

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Practice of Lean Management Features & Benefits

References: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. http://en.wikipedia.org/wiki/Lean_manufacturing http://www.miconleansixsigma.com/lean-history.html The Lean Manufacturing Pocket Handbook by Kenneth W. Dailey http://www.epa.gov/lean/environment/toolkits/environment/app-a.htm http://www.toyota.com.au/toyota/company/operations/toyota-production-system Lean Evolution- Lessons from the Workplace by Nick Rich, Nicola Bateman, Ann Esain, Lynn Massey, Donna Samuel http://www.business-improvement.eu/worldclass/world_class_introduction_eng.php http://virtual.auburnworks.org/profiles/blogs/lean-program-failures http://www.managers-net.com/Lean.html http://leanmanufacturingtools.org/598/creating-your-ideal-and-future-state-value-stream-map/ http://www.iaeng.org/publication/WCECS2010/WCECS2010_pp1087-1091.pdf

12. http://www.thinkinglean.com/ 13. "how to implement lean manufacturing" by Lonnie Wilson 14. http://110.234.126.124/quality/QulandRelTools%5CImai.pdf

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