Sanjib Biswas March 19, 2013.

Lean is about tools that create goods and services that offer precise customer value, but with less Dr James P Womack

Objective
With the opening of world market, the Indian manufacturers can not afford the luxury of producing products not compatible with that of the foreign products. The presence of globally competitive firms and the continuous innovations in the market has given a new impetus to the competition and the quality standards. The Indian manufacturing industries operating in the states not having good infrastructure, are suffering on account of high cost of production which is largely attributed to high inventory level, high cycle time and enormous wastage. It is high time that the manufacturers should try some innovative and new manufacturing strategies/techniques. Lean manufacturing can be the answer for those problems. This presentation covers the basics of Lean concepts, its applications in Indian industries, opportunities & challenges.

Lean is about
Less time, inventory, space, people and money Value addition Doing more with less Eliminating waste

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

Lean Management
is a management philosophy which shortens the time line between the customer order and the product shipment by eliminating waste.
Business as Usual

Customer Order

Waste Time

Product Shipment

Lean Management

Customer Order

Waste

Product Shipment

Time (Shorter)
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Lean History
In 1945, Toyoda challenged Taiichi Ohno to learn how to compete with US Automakers not on building large volumes of similar models, but many models in low volume. Ohno was given 3 years to develop a system to achieve this goal. Ohno went to the US and studied Ford mass assembly processes at the Rouge River Plant. Ohno learned a lot from this experience, but felt Ford stopped short of a better system. Ohno also studied the supermarket concept of ordering and replenishing stock by a signal system. This resulted in Ohno applying the KANBAN concept to the system he would develop
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Cont. Lean History

It took Ohno over 20 years to develop the system that became known as The Toyota Production System (TPS)
It took until the 1974 Oil Crisis before outsiders and others in Japan really took notice of the TPS system that Ohno built and the way it was allowing Toyota to compete when others were faltering. Lean Manufacturing came to the US with James Womacks Book, The Machine That Changed The World in 1990. Focused on Toyota Production System Concepts and Why Toyota was able to so successful over US Auto Manufacturers.

What makes a system lean? the 3 Ms of lean

muda waste mura - inconsistency muri - unreasonableness

Lean Principles
Value - specify what creates value from the customers perspective. The value stream identify all the steps along the process chain. Flow - make the value process flow. Pull - make only what is needed by the customer (short term response to the customers rate of demand). Perfection - strive for perfection by continually attempting to produce exactly what the customer wants.

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Value
Any process that the customer would be prepared to pay for that adds value to the product. The customer defines the value of product in a lean supply chain. Value-adding activities transform the product closer to what the customer actually wants. An activity that does not add value is considered to be waste.

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The value stream

The value stream is the sequence of processes from raw material to the customer that create value. The value stream can include the complete supply chain. Value stream mapping is an integral aspect of Lean.

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Flow
Using one piece flow by linking of all the activities and processes into the most efficient combinations to maximize valueadded content while minimizing waste. The waiting time of work in progress between processes is eliminated, hence adding value more quickly.

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Pull
Pull = response to the customers rate of demand i.e. the actual customer demand that drives the supply chain. Based on a supply chain view from downstream to upstream activities where nothing is produced by the upstream supplier until the downstream customer signals a need.

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Perfection
The journey of continuous improvement. Producing exactly what the customer wants, exactly when, economically. Perfection is an aspiration, anything and everything is able to be improved.

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The origin of Lean The Toyota Production System

Based on two philosophies: 1. Elimination of waste 2. Respect for people

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Definition Of Work Components

WORK

value creation

waste

Customers only want to pay for this

Increases costs and reduces quality

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Lean = Eliminating the Wastes

Value Added
The Seven Wastes

Defects Over-production Waiting Transportation Inventory Motion Over Processing

Under utilized human potential(the eighth waste identified)
Anything that adds Cost to the product without adding Value Waste
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7 Forms of Waste
CORRECTION WAITING
Any non-work time waiting for tools, supplies, parts, etc.. Repair or Rework

MOTION
Any wasted motion to pick up parts or stack parts. Also wasted walking

PROCESSING
Doing more work than is necessary

Types of Waste

OVERPRODUCTION
Producing more than is needed before it is needed

INVENTORY
Maintaining excess inventory of raw matls, parts in process, or finished goods.

CONVEYANCE
Wasted effort to transport materials, parts, or finished goods into or out of storage, or between processes. 19

Waste Elimination

Traditional Focus Work Longer-Harder-Faster Add People or Equipment

Lean Management
Improve the Value Stream to Eliminate Waste

Value Add

Waste

LEAD TIME
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Tools of Lean Management

Waste reduction
Full involvement, training, learning Cellular mfg Kaikaku (radical change) Kaizen (continuous improvement) & standard work 5S Jidoka (autonomation) Poka-yoke Shojinka (dynamic optimization of workers) Teien systems (worker suggestions)

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Tools (cont.)
Continuous Flow
SMED Andon Takt time Line balancing Nagara (smooth production flow)

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Tools (cont.)
Customer pull
Just-in-time Kanban

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Other Tools
Visual Factory Total Productive Maintenance

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Lean Management in India

The lean management revolution in India is still in its nascent stage. Although the Companies like TVS Motor, Tata Motors , Hero Honda, HAL, WIPRO, Mahindra & Mahindra, Fiserv India Pvt Ltd. Exide Industries Ltd etc. stand out as shining examples of the benefits of the adoption of the Lean Management route, but still this concept is yet to be flourished in different Manufacturing as well as Service sectors. In the year of 2009 the concept was limited to 10 per cent of the Indian manufacturing sector. The first Lean healthcare training course took place in Bangalore on 12th December 2011 and was attended by around 40 participants only. Beyond healthcare, the demand for Lean management in the manufacturing and commercial sectors in India is growing as more and more U.S. and European-based companies look to India to outsource design and manufacturing work.

Opportunities
50 - 80% Waste reduction
WIP Inventory Space Personnel Product lead times Travel Quality, costs, delivery

Challenges
Lean is completely about CULTURE, or the Thinking Way. Thus it is about change in Mind-set. Lean is not a part of what we do, it is in everything that we do, it is our way of thinking. It is an embedded culture of understanding the customers needs, continually striving to reduce waste and optimising the performance of process, people and infrastructure. At all levels there is a strong desire to be better. A culture of Lean is visibly prioritised and practised from the top to the bottom of the workforce. The key is understanding the customer and delivering his requirements.

Challenges in India
The barriers in the Indian context of implementing the lean manufacturing are the following: - Lack of resources. - Lack of expertise. - Initial high cost which includes the cost of resources as well as expertise. - Poor supply chain structure. - Ineffective training and development of work force in the company. - Absence of continuous assessment of every individual in the organization. - Psychological factors such as fear of loosing the job on account of its implementation. - Natural calamities.

Vision without action is merely a dream. Action without vision just passes the time. Vision with action can change the world. - Joel Barker

When the winds of change come, some people build walls, others build windmills. - Brian Mayne

Thank you

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