Lean Manufacturing

GAYATHRI S (20086306) JAMUNA T (20086310)

Lean????????
Elimination of waste and non-value added activities at every production or service process in order to bring the most satisfaction in the production. Increase worker output and reduction of cost.

Value Added Activities

Any activity that increases the market
form or function of the product or service. These are things the customer is willing to pay for.

Non-Value Added (Waste or muda)

Any activity or use of resources that does
not add market form or function or is not necessary. These activities should be reduced,

integrated, simplified, or eliminated.

Using the Value Stream Map to Eliminate Waste

Value-Added
Non-Value-Added: Hold all waste in a CLOSED MITT

Complexity Labor Overproduction Space Energy Defects Materials Idle Materials Transportation Time

Typically 95% of all lead time is non-value-added

Area Of Focus
Inventory management

Material flow management

Labour and cost control

Functions of inventory
Provide a hedge against price increases and fluctuations in demand. Demand Continuous processing Less lead time Competitor Seasonal demand Discount

Need for inventory

Inventory control is necessary to ensure. (a) Uninterrupted supply of materials. (b) Optimal stock. (Not too much, not too little) (c) Adequate controls over materials unused, used.

Objectives To Inventory Control

To keep the investment on inventories to the minimum. To minimize idle time by avoiding stock outs and shortages. To avoid carrying cost. To improve quality of care with lesser inventory. To avoid obsolescence of inventory.

Principle Of Inventory Control

To place orders frequently keeping the stock low for high valued and more used items. To place orders less frequently keeping sufficient stock for low valued and low consumed item.

Inventory Management
Stock of goods
Idle source that has economic value.
Materials store
Raw material chemical Finished leather

Inventory Management
RAW PICKLE RAW MATERIAL WET BLUE/EI BEAM HOUSE CHEMICALS (solid, semi solid and liquid) WET END CHEMICALS (solid, semi solid and liquid) CHEMICALS FINISHED CHEMICALS (solid, semi solid and liquid) READY FOR DISPATCH LEATHER FOR CORRECTION WORK FINISHED LEATHER REJECTION ELECTRICAL MECHANICAL MATERIAL GENERAL MAINTENANCE STORE

Raw material
Based on

Buyer order Seasonal availability Price factor

Chemicals
Based on

Buyer order Shelf life Availability Availability of space Speciality chemicals Shipping time.

Finished Leather
Based on

Availability of space Order time selection Rejection

Material Store
Electrical

Conductors Relays Connectors Fused links

Material Store(cont)
Mechanical Bearings fasteners PVC fittings V-belts Filters General maintenance light Choke fuse

Proposed Work
To keep the inventory in control Decide the process through which leather can be made. Based on the process categorize the chemicals and also the quantity. The chemicals are categorized based on Shelf life Availability Price factor State of chemicals

Proposed Work
In order to regularize the inventory we need to have inventory prepared 5 days before the start of the process. ------------ time for toyoto is less than 4 sec So the change over of process has to be taken into account

Proposed Work
Time taken for processing

Raw to finishing : 20-30 days Raw to wet blue : 5-10 days Wet blue to finishing : 10-15 days Crust to finishing : 5-10 days

Cont
time for order completion depends on

Availability of raw material Article From which origin Availability of chemicals

Raw material
Assortment/Selection has to be done. Proper arrangement The work order has to be issued to get the raw material The raw material can be converted into tanned leather. Only 3 month stock of the processing capacity has to be stored as inventory.

chemicals
The chemicals has to be tested for non toxic and non hazardous items The chemicals has to be eco friendly. The contents has to be proper. Once the chemicals are ordered it has to be brought in sealed cans. The chemicals can be obtained from the godown using proper work order.

Chemicals
The chemicals needed for processing has to be obtained from the retail godown using proper work sheets. MSME form has to be obtained while getting the chemical stocks.

Selective Inventory Control Methods

ABC analysis
Always Better Control

VED analysis
Vital essential desirable

FSN analysis
Fast moving slow moving non moving

SDE analysis
Scarce difficult easy

HML analysis
high medium low

ABC Analysis
Category A (High Cost) B (Medium Cost) C (Low Cost) % of items 10 20 70 % of value 70 20 10

Inventory systems
Reorder point policy
The order size is constant, minimum stock level is predetermined

Fixed order internal scheduling policy

maximum stock level is predetermined

Optional replenishment policy

The inventory level is periodically reviewed and maximum (S) minimum (s) stock levels are prescribed

Special types
Combination of lot size order policy and fixed interval order policy are feasible.

Thank you