WORLD- CLASS

COMPANIES

AND LEAN
MANUFACTURING
WHAT I S A WORLD- CLASS
COMPANY?
Features:
World-class companies must maintain strategic agility and
be able to turn on a dime.
World-class companies motivate and treat employees like
appreciating assets.
A world-class company profitably meets the needs of its
customers.
WHAT IS A WORLD-CLASS
COMPANY?
Features:
The philosophy of customer satisfaction permeates
the world-class firm.
Manufacturing firms that achieve world-class status
do so by following a philosophy of lean-manufacturing.
LEAN MANUFACTURING
- This manufacturing approach is in direct
opposition to Traditional Manufacturing.
- Evolved from the Toyota Production
System (TPS), which is based in Just-in-
Time (JIT) Production Model.
LEAN MANUFACTURING
- Goal: Improved efficiency and effectiveness in every area,
including:
Product Design
Supplier Interaction
Factory Operations
Employee Management
Customer Relations

PRI NCI PLES CHARACTERI ZI NG
LEAN MANUFACTURI NG
PULL PROCESSING.
- involves pulling products from the consumer end
(demand), rather than pushing them from the
production end (supply)
PERFECT QUALITY.
- success of the pull processing model requires zero
defects in RM, WIP and FG inventory; quality is a
basis on which world-class manufacturers compete
PRI NCI PLES CHARACTERI ZI NG
LEAN MANUFACTURI NG
WASTE MINIMIZATION
- all activities that do not add value and maximize
the use of scarce resources must be eliminated
Lean Manufacturing seeks to minimize:
Overproduction of products
Transportation of products
Bottlenecks of products
Idle workers



Inefficient motion of workers
Islands of technology
Production defects
Safety hazards
PRI NCI PLES CHARACTERI ZI NG
LEAN MANUFACTURI NG
INVENTORY REDUCTION.
- hallmark of lean manufacturing
- lean firms have only a few days or sometimes even a
few hours of inventory on hand
3 Common Problems (Why Inventory Reduction is Important)
1. Inventories cost money.
2. Inventories camouflage production problems.
3. Willingness to maintain inventories can precipitate overproduction.
PRI NCI PLES CHARACTERI ZI NG
LEAN MANUFACTURI NG
PRODUCTION FLEXIBILITY.
- lean companies strive to reduce setup time to a minimum,
which allows them to produce a greater diversity of products
quickly, without sacrificing efficiency at lower volumes of
production
ESTABLISHED SUPPLIER RELATIONS.
- a lean manufacturing firm must have established and cooperative
relationships with vendors
TEAM ATTITUDE.
- lean requires a constant state of quality control along with the
authority to take immediate actions

TECHNIQUES AND
TECHNOLOGIES

THAT PROMOTE LEAN
MANUFACTURING
MANUFACTURI NG FLEXI BI LI TY
- achieved by Lean Companies to meet the
challenges of modern consumerism
PHYSICAL REORGANIZATION OF
THE PRODUCTION FACILITIES
The flexible production system is organized into a smooth-
flowing stream of activities.
FLEXI BLE PRODUCTI ON SYSTEM
AUTOMATI ON OF THE
MANUFACTURI NG PROCESS
Automation
- is at the heart of lean manufacturing philosophy

THE AUTOMATI ON CONTI NUUM
Traditional Manufacturing
- an environment which consists of a range of different types of
machine, each controlled by a single operator
Islands of Technology
- describes an environment in which modern automation exists
in the form of islands that stand alone within the traditional
setting
- the islands employ computer numerical controlled (CNC)
machines that can perform multiple operations with little
human involvement
Computer-Integrated Manufacturing (CIM)
- is a completely automated environment with the
objective of eliminating non-value-added activities.
VARIOUS TECHNOLOGIES
EMPLOYED IN CIM
Automated Storage and Retrieval Systems (AS/RS)
- are computer-controlled conveyor systems that carry raw
materials from stores to the shop floor and finished products
to the warehouse
ROBOTICS
- manufacturing robots are programmed to perform specific
actions over and over with a high degree of precisions
COMPUTER-AIDED DESIGN (CAD)
- used to design better products faster
COMPUTER-AIDED MANUFACTURING (CAM)
- is the use of computers to assist the manufacturing process

VALUE STREAM MAPPI NG
Companys value stream
- includes all the steps in the process that are
essential to producing a product
Value Stream Map (VSM)
- used by companies pursuing lean manufacturing
to graphically represent their business processes to
identify aspects of it that are wasteful or should be
removed
VALUE STREAM MAPPI NG