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Agenda

History
Definition Process How does lean applicable Components of lean manufacturing. Why lean fails Live examples of lean

History
1.

2.
3. 4. 5.

1450- Arsenal in Venice was the first person to truly integrate an entire production process using lean 1905- Henry Ford used this production method for the first time ball bearing 1930- Kiichiro Toyoda, Taiichi Ohno use this technology for manufacturing of their cars 1945- Embargo also uses this technology to make the work more effective 1970-2005- almost all the big companies started using the concept of lean in there production system

Definition
Doing more by using less time, less inventory, fewer workers, less space Lean manufacturing is a systematic approach to remove MUDA through continuous improvement that is being adopted. Basically lean identify and eliminated the non value added activities from the process.

Scenario changed due to lean


Lean have changed the market scenario and thinking of people to do business
Earlier cost+profit = selling price Now selling price- cost = profit

Characteristics of lean manufacturing

Reduction in cycle time On time delivery Reduction in WIP Improvement in quality Reduction of muda Reduction in rework

Q.C.D.S.M
Where Q- Improving Quality C- Cost reduction D- Delivery on time S- Providing Safety to employees M- Increasing Morale of the employees

How does lean works.


Considers an end to end value stream that delivers

competitive advantage. Seeks fast flexible flow. Eliminates/prevents waste (Muda). Extends the Toyota Production System (TPS).

Process
Basic steps of lean management

Specify value
Value is defined by the customers and is only applicable when it is expressed in terms of specific product i.e. A product that a customer need at specific time and at specific selling price.

Identify value stream


Value stream -The value stream is all the steps that are required to bring specific product from raw material to final good.
Basic action in identify value stream i. Steps that create value ii. Steps that create no value but they are unavoidable iii. Steps that create no value and they are avoidable

Make value flow


The value flow is a flow of raw material through a dedicated arrangement of value stream so that continuous production of a product may result in less cost, decrease delivery time and other benefits.

Let the customer pull value


Here customer pull the desired product from the producer on time Value stream and pull are complementary to each other. The implementation of value stream automatically reduces the product lead time, and this enables the producer to provide the product on time.

Pursue perfection
Perfection is defined as achieving all the required system performance measures at the highest levels.
Here perfection means achieving all the goals of lean i.e. Q.C.D.S.M

Components of lean manufacturing.


Standardized production
Kaizen Just in time

Design for manufacturing


Poka yoke Cellular manufacturing Single minute exchange die Flexible work force

Standardized production
This production involves setting , documentation and maintaining standard for three major areas of production Cycle time- the time within which an individual have to finish a task given Work process- layout of work area, required tools and steps WIP- work in process is the term used for inventory

Kaizen
Kaizen is a Japanese word which means change for improvement. Kaizen refers to activities that continually improve all functions, and involves all employees from the CEO to the assembly line workers
The Toyota Production System is known for kaizen, where all line personnel are expected to stop their moving production line in case of any abnormality.

Just in time
Just in time is an operating strategy that seeks in maximizing operational effectiveness by creating value in the eyes of the end customer.
The focus is not only in the departmental area or on the process but its focus is totally on the entire value stream.

Design for manufacturing(DFM)


Design for manufacturability is the general engineering art of designing products in such a way that they are easy to manufacture. In simple words it means relative ease to manufacture a product, part or assembly.

Poka yoke.
Poke yoke is a Japanese term. Earlier it was know by the name of bake yoke which means foolproofing and this technique was not liked by the employees because of its connotation Then in 1961 it was know as poke yoke which means mistake proofing or error proofing. Poka yoke is a bunch of small devices like fixtures, jigs, warning signals, and many more device that helps in preventing defects.

Single minute exchange die(SMED)


This enables the operators to reduce the processing time and the setting time with the help of jigs and fixtures Jigs and fixtures are the tools that are used to control the location and motion of another tool.
The primary purposes of SMED is to Maximize efficiency Reduce operator errors

Flexible work force


This is necessary because lean do not maintain a pool of backup or relief workers. In the event of absence of worker, retooling or changing production needs, worker must be able to perform varying task.

Why lean fails?


No sense of urgency Looking for quick fix

Not much awareness and understanding of lean

among the employees.

The Toyota Production System


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

Four Basic Rules Of Toyota


1.

All work shall be highly specified as to content, sequence, timing, and outcome. and there must be an unambiguous yes-or-no way to send requests and receive responses. simple and direct.

2. Every customer-supplier connection must be direct,

3. The pathway for every product and service must be

4. Any improvement must be made in accordance with

the scientific method, under the guidance of a teacher, at the lowest possible level in the organization

7 Production Wastes (muda)


overproduction waiting time transport process inventory motion defective goods

Service Wastes
Delay customers waiting for service. Duplication having to re-enter data, repeat

details etc. Unnecessary movement - poor ergonomics in the service encounter. Incorrect inventory out of stock. Opportunity lost to retain or win customers. Errors in the transaction, lost/damaged goods.

Benefits of Lean
Five primary types of benefits:
Cost savings Revenue increases Workforce improvements Uncovering problems

Examples of applied lean in our daily life.

Xerox
1980s established Leadership Through Quality Initiative

which focused on improving business processes in order to improve customer satisfaction, quality, and productivity. Late 1990s and we see Six Sigma and Lean being adopted by Xeroxs manufacturing and supply chain functions.
Mid 2002 Xeroxs leadership decided to integrate its Lean and Six

Sigma programs across the entire enterprise, naming the initiative Xerox Lean Six Sigma. Xerox estimates that it achieved an initial $6 million return in 2003 based on a $14 million investment in Lean Six Sigma and expects even bigger gains in the years ahead.

Honeywell International
A diversified technology company with 2004 sales in

excess of $25 billion. Successfully integrated lean process in 1987. Honeywell competes in four major industry segments: Aerospace, Automation and Control Solutions, Specialty Materials, and Transportation Systems.

Summary
Lean manufacturing was developed by the Japanese. Lean is a philosophy that seeks to eliminate waste in all aspects of a firms production activities. Lean is principally associated with manufacturing industries but can be also equally applicable to both service and administration processes. Cornerstone of Lean is the Toyota Production System. Considers 7 Wastes (muda).

Any questions???