Lean Pocket Guide

The purpose of the
lean pocket guide is

to get everybody
familiarize with the
concept of Lean
Manufacturing

Lean Pocket Guide
1= '1-< 1 1= '1-< 1 1= '1-< 1 1= '1-< 1
2010
Larsen & Toubro
Heavy Engineering Division
Powai
Lean manufacturing Larsen & Toubro
2

you are 32 Pages away
from the Leaner Production

3

Contents
What lean exactly is and how it relates to
WMS...............................................................5
Leadership commitment .6
What lean is, what lean is not...9
Value added vs. Non Value added.....10
Facts about Lean concept.....11
Lean manufacturing tools.12
Why lean is important to L&T? .....................13
7 Types of wastes....14
Concept of Pull system ...19
Standardization ...20
Tag System 22
FMEA...23
4

What is poka yoke? ....24
JIT ....26
SMED ..28
Best Practices ...30
Work place organization....31
Result of lean implementation....32
Glossary .......33
Notes .....34

5

6

What lean exactly is and how it
relates to WMS
Lean has a system that only works on things
that add value to the final product. The
objective of lean is to concentrate all the
resources, money, and time to the operations
that add value to the final product. This is
achieved through the elimination of all the
wastes that exists in the system in the form of
motion wastage, overwork, inventory,
unnecessary movement of material, waste of
correction, overproduction, waiting time and so
on.
Lean uses several tools that identify and
continually eliminate all above mentioned
wastes. It achieves the final goal of having
system that only focuses its resources on the
Value.
Lean methodology applied to the activities on
the critical chain will significantly improve the
throughput.

7

Leadership commitment
Lean manufacturing is a top down approach.
The one thing that is of utmost importance to
the successful implementation of lean is the
commitment from the top management and
highly motivated and dedicated workforce.
After implementation of basic lean tools such
as 5S, visual control, standardization;
employees starts to see noticeable improvement
on the shop floor. This certainly acts as huge
motivating factor. Till this stage if management
succeeds in keeping employees momentum up
to the mark, company will certainly see evident
results. After people starts seeing the
advantages they are getting from the
philosophy, they will own the concept and will
get self motivated to try out lean activities with
perfection.
Management and Lean manufacturing team
have a vital role to play. Working closely with
workmen, educating them about the relevant
activities as well as conducting team meetings
to discuss the happenings will prove valuable
8

in keeping everybodys curiosity towards the
lean work methods.
Any problem whether it is big or small must be
reported. If an employee doesnt report a defect
for any reason, this will act against the concept
of lean manufacturing since it amounts to
hiding the defect rather than making it visible.
Undertaking a lean manufacturing project for
just for the sake of doing it will result into
waste of efforts and money & therefore against
lean manufacturing principles.

9

The most dangerous kind of waste is the
waste we do not recognize.
~ Shigeo Shingo

There are three kinds of leaders:
Those that tell you what to do.
Those that allow you to do what you
want.
Lean leaders that come down to the
work and help you figure it out.
~ John Shook

Waste is a tax on the whole people.
~Albert W. Atwood

Lean is not a program, it is a total
strategy.
~ Alex Miller
10

Lean is
A manufacturing philosophy
A strategy that eliminates non value
added activities
A process of continuous improvement
A focus on value added expenditure
from a customers viewpoint
Complimentary to TQM and Six Sigma

Lean is NOT
A program of the month
A destination
A corporate fashion statement
A tool to eliminate people

11

Value added vs. Non Value added

Lean manufacturing is determined to reduce
the area which is marked in red in the above
figure (ie- Non value added Time) thereby
eliminating the waste.

12

Facts about Lean manufacturing
concept
It doesnt require Huge financial backup

Needs appreciable support from the top
management (This is of prime importance!)

Lean management concept can be applied
to anything. Lean management can be
applied to service industry, manufacturing
industry, hospital administration, military
applications, educational and financial
institutions and the list is unending.

The above point can be further elaborated
by Lean X notation. We can practically put
anything instead of X in above notation.
(For e.g. Lean office, lean bank, lean school,
lean hospital, lean factory, lean supply
chain, lean manufacturing, lean processes
and so on.)
13

Lean Manufacturing Tools
On e p i e ce
f l o w
Value stream mapping
Cellular layout
Quality circles
ABC Visual control
TPM TPM TPM TPM TOC TOC TOC TOC

CAUSE AND EFFECT DIAGRAMS
Multi-process handling
5WHY Kanban

14

Why Lean is important?
To prevent production delays
To solve the difficulty in meeting
deadlines
To do more with less resources
To reduce overburden of work
To reduce inventory
To maintain its competitive position in
global market
To improve cost-quality-delivery
performance
To make the system easy and flexible

15

7Types of Wastes
Lean Manufacturing is a work management concept
that emphasizes on eliminating wastes in the system.
There are 7 types of wastes which are identified in the
production system. These are as follows popularly
known as COMMWIP:
1. Waste of Correction: Its a waste associated with
correcting any defects which are produced at the
first place.
2. Waste of Overproduction: Its the waste associated
with producing more than what the customer has
asked for at that time.
3. Waste of Motion: Its the waste associated with the
motion/actions of workman that does not add any
value to the product.
4. Waste of Movement: Its the waste associated with
unnecessary movement of machine, raw material
etc.
5. Waste of Waiting: Its the waste associated with
waiting
6. Waste of Inventory: it is the waste associated with
holding of unnecessary raw materials, work in
process (WIP), finished goods.
7. Waste of Processing: this is the waste associated
with the processes that add no value to the
product.
16

Waste of transportation waste of waiting

Waste of inventory waste of processing
(over processing)

Waste of overproduction Waste of motion

Waste of correction
17

A bad system will beat a good person every
time.
~ W. Edwards Deming

Continuous improvement is not about the things
you do well - that's work. Continuous
improvement is about removing the things that
get in the way of your work. The headaches,
the things that slow you down, thats what
continuous improvement is all about.
~ Bruce Hamilton

All we are doing is looking at the time line,
from the moment the customer gives us an
order to the point when we collect the cash.
And we are reducing the time line by reducing
the non-value adding wastes.
~ Taiichi Ohno

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Tool Objective
5-S Workplace Management Tool
Visual control Communication & sharing
Value stream
mapping
Waste identification
Standardization Identify and eliminate
sources of waste in the
process,
Continuous improvement
(Standardized work)
FMEA Continuous improvement
Poka yoke Error proofing / Fool
proofing
Theory of
constraints
(TOC)
Finite capacity scheduler
Cellular
manufacturing
Reduction in Waste of
unnecessary movement, one
piece flow
Load leveling
(Heijunka)
Eliminate sources of waste in
the process,
Improvement in the Flow
JIT Reduction in inventory,
improvement in the flow of
the system
SMED Reduction in setup time
Kanban Reduction in inventory,
improvement in the flow of
the system
Kaizen Continuous improvement
19

All the tools mentioned on the previous page
collectively reduce wastes out of the system.
These tools have lot of dependency on each
other.

Following pages cover brief introduction of
various lean tools:
20

Pull system

A product undergoes series of operations for its completion.
Every process in the company acts as a supplier to its
subsequent process whereas it acts as a customer to its
previous process.
Every supplier process supplies the required components
(raw materials, partially completed job) to its customer
process as and when they are needed. Operator will start
working towards providing resources to the customer
process only if its customer process signals him/her to do
so. This way, product flows through a series of processes
towards its completion. No inventory is maintained while
operating a PULL system. Customer process pulls
resources from supplier process and initiates value
addition tasks. Whether the system has transformed to pull
system or not is one of the success measures of lean
manufacturing.
21

Standardization
Standardization is nothing but doing work in a
best possible way and exactly the same way every
time. Lean efforts start with implementation of 5-S
and visual control techniques. After which the plant
looks clean, neat. Good housekeeping activities are
performed and clutter is minimized. This phase of
lean costs almost no money. But in order to make
other tools workable on the shop floor, sustainment
of this disciplined system is much needed. And it is
just a matter of keeping it up to the speed. This is
where the standardization of lean manufacturing will
come into effect.
Here the processes are defined and standard of each
process is established. Even though workman is
working on different jobs, the processes which are
common between the jobs such as welding, plate
cutting, stamping and so on should have same
standard and should be performed in an exact way
as defined by the standard.
After designing standard processes with the help of
workmen, supervisors and the employees which are
associated with it, constantly raising companys
standards is also an important task to perform.
Continuously benchmarking the processes with
industry leaders or with world class organizations
will maintain the edge over others.

22

Tell me and I will forget, show me and I may
remember, involve me and Ill understand.
~Chinese Proverb

Implementing Lean concepts and principles is not
a technological issue, it is primarily a
management and human resource issue.
~Kenneth E. Kirby

Many people think that Lean is about cutting
heads, reducing the work force or cutting
inventory. Lean is really a growth strategy. It is
about gaining market share and being prepared to
enter in or create new markets.
~ Ernie Smith

23

Tag System
A tag system is the way to identify any unknown jobs,
materials or components which are lying on the shop floor.
If a material, partially completed job or any miscellaneous
component is identified on the shop floor, a workman can
put up an attention tag on it. This will capture supervisors
attention and an appropriate action will be taken.
The intension of putting the attention tag is to grab
supervisors attention to the fact that there is an object
lying around which has no place. This may mean that it
has been put there because of some mistake and somebody
will be looking for it somewhere else. (This system is in
accordance with 5S saying everything should have a place
and everything should be in its place)
For the shop floor to be Lean everything must have a place
or a designated area so, that nobody has to waste time to
find out where the things are. Red Attention tag sends
information of urgency. This eventually helps in making
system flawless.
If a supervisor is able to identify what the miscellaneous
component is and where should it go, he can mention the
information on the red tag and contact the concerned
person immediately.
Less amount of red tags on the shop floor means that the
system is improving. Zero red tag on the shop floor signifies
improved system!!!

Attention Tag!!!
Information about the item:
24

FMEA (Failure Mode Effect Analysis)
FMEA is a tool for analysis of potential
failure modes that may arise in the system
or a product
It helps us anticipating the failure modes
and their impact before they go to the
customer.
It helps company to keep goodwill of the
customer as the flaws get exposed at the
early stage of product development and
never reaches the customer.

Above table represents Filure mode analysis of
casting operation. In how many ways a casting
operation can be failed or performed incorrectly is
found out, its effect and causes are analysed and the
coorective action (solution) is proposed.
25

What is poka yoke?
Poka yoke is a fool proofing system. It is any device
or a mechanism that either prevents a mistake from
being made or ensures that the mistakes dont get
translated into errors that the customer see or
experience. The goal of the poka yoke is both
prevention and detection of defects.
Examples of application of poka yoke device:
1) A fuse is an everyday example of a poka yoke
device. A fuse is an over current responsive safety
device used to protect an electrical circuit from the
effects of excessive current. It is placed in series with
the electrical circuit it is intended to protect. Its
essential component is a strip of metal that will melt
when the electric current in the circuit exceeds the
fuse's rated value. The element (link) in the fuse
melts and opens the circuit.

New fuse (Left) destroyed strip (right)
26

Poka Yoke Contd
2) Another example of poka yoke is a manhole cover.

Manhole cover is always kept round in shape. If
manhole would have been of any other shape than
round (square, rectangular etc), it was possible to
drop it accidentally while opening it. Square or other
shaped manhole can be easily fall through the
diagonal dimension.

27

JIT
Just in time is a strategy that focuses on reducing
both in process inventory as well as inventory of raw
material. This methodology is also called as Toyota
Production System. This was developed and
pioneered by Toyota Motor Company.
The system relies on another tool of lean which is
Kanban card system. These two tools collectively try
to minimize inventory on the shop floor. Kanban
cards tell the workman about which part in what
quantity and when is needed for certain work
station. As a result of this, every workman on the
shop floor gets raw materials and/or partially
manufactured component just before the time when
the requirement of materials arises. On the other
hand workman does not have to wait until the
materials reach the workstation. This also promotes
one piece product flow.
The system starts its transformation from push
process to pull process.
The tool has an exceptional ability to reduce WIP
(work in process inventory). Eventually success of
JIT results in monetary savings and better flow of
product throughout the shop floor. Inventory
reduction indirectly causes other costs such as
insurance costs, maintenance costs, and inspection
costs to go down.

28

Are you too busy for improvement? Frequently,
I am rebuffed by people who say they are too
busy and have no time for such activities. I
make it a point to respond by telling people,
look, youll stop being busy either when you die
or when the company goes bankrupt.
~ Shigeo Shingo

When solving problems, dig at the roots instead
of just hacking at the leaves.
~Anthony J. D'Angelo

Kanban is like the milkman. Mom didnt give
the milkman a schedule. Mom didnt use MRP.
She simply put the empties on the front steps
and the milkman replenished them. That is the
essence of a pull system
~ Ernie Smith
29

SMED (Single Minute Exchange of Die)
Single Minute Exchange of Die focuses on Set-
up and changeover reductions for equipment,
tooling and machines.
Setup is considered as a non value added
activity. More importantly, it takes appreciable
amount of manufacturing time and efforts.
Setup change is required when manufacturing
unit changes from one job to another. Due to
the variety involved in the products, it becomes
mandatory to have a mechanism or a device
that performs a quick changeover operation.
Single minute exchange of die does not literally
mean setup operation of 1 minute. It indicates
requirement of appreciably less amount of time
to carry out changeover activities.

30

SMED Contd

Above device facilitates quick die changing
activity. With the help of a connecting linkage,
it becomes possible to perform die changing
activity with a single rotation of the connecting
link.
Operator first puts Part A in preheating station.
After preheating is done, it is moved to casting
station. At this stage, Part A undergoes casting
operation whereas part B undergoes
preheating. This arrangement makes efficient
use of time producing more number of
products per hour.
31

Designated Walkways Information Board
(visual Control)

Everything has a place and everything is in its place
Best Practices
32

Work place organization
33

Expected Result of lean implementation
Inventory reduction by 90%
Production lead time reduction by 90%
Floor space reduction by 50%
Quality improvement by 50%
Safety improvement 50%
Productivity enhancement by 30%
Improved delivery performance
Apart from above quantitative advantages
there is much more we can expect from
Lean Manufacturing
Good team spirit which will drive L&T to the
excellence
Innovative culture to the organization
Self driven people
Pleasant working conditions
Workman involvement and improved
workman satisfaction
Longer machine life
Systematic approach to work
Improved flexibility
Environmentally friendly
Built in quality
34

Glossary
5S Workplace management system (sort, set in
order, shine, standardize, sustain)

Kaizen Continuous improvement methodology

Takt Time its a ratio of customer demand and
available time. Takt time is the pace at which
operations have to run in order to meet deadlines.

Visual Factory Factory that facilitates an easy
understanding of the status of operations carried out
in work area through visual control means.

Standardized work Doing the operation in the
best possible way and same way each time.
(Standard is set for a particular process and is
obeyed.)

Poka-Yoke Its an error proofing technique. It deals
with designing of simple devices that prevents a
workman to execute any mistakes while operating.

FMEA failure mode analysis it is the analysis
done in order to find out in how many ways a
process can fail. This is performed before going to
the poka yoke step.

Pull System Make one, move one when the
customer wants one

Push system Make one, move one before customer
wants it
35

Notes

36

L&T Heavy Engineering Division
Powai, Mumbai 400 072
Author: Akshay Deshpande (akshaydeshpande17@gmail.com)
For further information, contact:
Vivek Acharya
Email ID: Vivek.Acharya@hed.ltindia.com (Extn: 5678)

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