Transformation of manufacturing

What is Lean production system? system from

Craft production to mass production and Lean
production.
The modern customer expects a product to be
available at an optimum cost and when it is
required.

JIT (Just In Time) - 1970s

increase efficiency and decrease waste by receiving goods
only as they are needed in the production process,

1990s - The Book “The Machine That Changed

thereby reducing inventory costs.

the World” written by James Womack et al.

(1990) referred to in the publication as ‘Lean
manufacturing’
Liker
Whatand Wu production
is Lean (2000) defned ‘Lean’ as ‘a
system?
philosophy of manufacturing that is based on
developing the highest-quality products with
lowest cost and delivered on time’. A Lean
production system generates wider product
variants, at low cost, with higher productivity
levels and delivery speed at optimum quality.
Key principles of Lean production system

Five principles of Lean manufacturing (Gopalakrishnan 2010;

Dahlgaard and Dahlgaard-Park 2006):

1. Value from customer viewpoint

2. Value imbibed process sequence

3. Smooth flow of value stream

4. Pull production

5. Continuous improvement and sustenance

Key principles of Lean production system

1. Value from customer viewpoint

Customer value denotes the customer’s perceived preference for

product characteristics evaluation to facilitate the achievement of
customer goals.

To determine the product value, the process sequence from beginning

to end needs to be analysed.
Key principles of Lean production system

2. Value imbibed process sequence

Value stream denotes the sequenceof all processes where cost is

incurred.

Value stream implies all essential steps to develop a product or service

to the customer from start to end:

a. The process in value stream needs to be classifed into activities

adding value to the customer (value added), activities not adding
value to the customer (non-value added) and activities needed
for product completion (necessary but non-value added).

b. The flow of value stream must be smooth, and obstacles in the

value stream need to be eliminated.
Key principles of Lean production system

3. Smooth flow of value stream

The product production using value stream based on customer

requirements is called value flow. Flow must be smooth without any
obstacles (''Rintangan”).

The obstacles for smooth flow may be due to improper layout,

improper tooling, downtime, equipment breakdown or large
quantity of stock
Key principles of Lean production system

4. Pull production / Customer pull

In a push system, the product is manufactured without understanding

the customer need and gets pushed to market so as to sell to the
customer. A pull system focuses on producing products purely based
on customer requirement. A pull system minimises and further
eliminates inventory. Pull systems denote a response to customer
demand rate, i.e. actual customer demand that enables the supply
chain.
Key principles of Lean production system

5. Continuous improvement and sustenance

The term ‘continuous improvement’ implies improvement of products,

processes or services over time, with the objective of waste reduction to
improve workplace functionality, customer service or product
performance.

It is necessary to sustain the process, procedures, standards and

effciency and ensure that the organisation doesn’t deviate from set
goals.