Presentation on Lean Manufacturing

Mfg. Eras & Definition

Waste & Lean mind set
in Organization
Fundamentals of Lean mfg..
System Implementation
Comparison with 6sigma
& Lean mfg. Results
Eras in Manufacturing
Craft production
has existed for centuries
Mass production
developed after World War I by Henry Ford and
General Motors Alfred Sloan
Based on principles of Scientific Management
Lean production
developed in Japan after World War II
pioneered by Eiji Toyoda and Taiichi Ohno of
Toyota
Comparison
large product variety high productivity and
low cost
low productivity, and
high cost
high productivity and
low cost
standardized products unique,
individualized, custom
made products
highly flexible
machines
expensive, single
purpose machines
simple, flexible tools
teams of multiskilled
workers
unskilled or
semiskilled workers
highly skilled workers
or artisans
Lean Mass Craft
Why Lean or 6 Sigma?
Business generally hold competitive advantages
over their competitors for one of two reasons:
1.Unique Products:Having Superior product to
their competition,often in the form of
technological capabilities or niche marketing.
2.Low Cost Products:Having a superior process
to their competition,often in the form of
internal efficiencies or low cost production.
Lean Manufacturing a brief history
at Toyota
Manufacturer of trucks and small automobiles in Post-WWII Japan
Aneed was declared by Toyotas President to discover a new
production method that would eliminate waste and help Toyota catch
up with foreign competitors.
Chief engineers studied writings of Henry ford,then visited Ford
plants extensively in the 1950s -begins thewar on waste
IMVP study in 1980s early identifiedLean Manufacturing
1984,Toyota becomes a North American manufacturer with joint
venture at NUMMI plant in California.Stellar Results
1990s and Beyond,Lean Production Strategies adopted in numerous
Industries
All other Car manufacturers have adopted Lean principles!

Organizations works on Lean
Boeing
BMW
Carrier
Caterpillar
Chrysler
Coca cola
Dell
Delhi
Ford*
General
Motors*
US Navy*
Pepsi,co
* =both lean and 6sigma
Lean Production
There are many popular manufacturing buzz
words these days, including
Just in time
Continuous improvement
Concurrent engineering
Flexible manufacturing
Total quality management
Statistical process control
These are all integral parts of lean production
What is Lean
Manufacturing?
It is a Strategy to achieve significant,
Continuous Improvement in Performance
through the elimination of all waste of time and
resources in the total Business Process
Seven types of wastes
Processing itself
Delay & Waiting
Over Production
Motion
Transportation
Inventory
Scrap & Rework
Waste&Lean mind set
in Organization
Developing the Lean Mind sets
Cost added
70%
Value added
30%
30%
70%
30%
10%
0%
20%
40%
60%
80%
100%
Before After
Value added Cost added
3-Step Rules to eliminate Waste
Total
90%
reduction
Step-I
50%
reduction
Step-II
2nd 50%
reduction
10% of Original Waste
Throughout the
Improvement
process,a company
must avoid settling
for superficial
solutions to cut
waste
Fundamentals in Lean
Manufacturing
Technology Management
People Management
Systems Management
Fundamentals of Lean mfg..
Technology Management
Structured flow manufacturing
Small lot size production
Setup Reduction
Fitness for use

Ideally a lot size of one or at the very least,equal to customers
order.
Measured as time(and cost)from the last good piece of the
previous job or run to the first good piece of the new job to run.
Short set up enables greater production feasibility,less inventory
& more capacity.
Category
Scope
Each next step in the total business throughput process is the
previous steps customer
One work center must meet the needs or requirements of the
next work centers precisely

Structured flow
manufacturing
In functional manufacturing the ration of Work to Motion is low
because the products usually required a lot of transportation and
other movements during the manufacturing cycle.
Small lot
Production
Setup reduction
Fitness For use
Technology Management
People Management
Total employee Involvement
Control through Visibility
Housekeeping
Total quality focus
When a problem occurs, so fast & how effective the decisive
action can be taken
Visibility is used as a effective Communication media
A place for everything and everything in its place
Eliminate potential confusion,promote a safer environment and
reduction of waste of time,motion and resources
Category
Scope
Focus requires conformance to standards
Quality of the product indicates the quality of the Process.If there
are problems in the product quality,there are unacceptable
variations in the manufacturing or Business process
Focus encompasses the entire product chain from supplier to
customer
Employee
Involvement
Improvement through small group improvement activities
Trigger the Empowerment
Control through
visibility
House keeping
focus
Total quality
Focus
People Management
System Management
Level load & Balanced flow
M/c maintenance(JH)
Supplier Partnerships
Pull system
High level operating performance with in the requiredtolerances
Eliminate equipment as a source of process defect
Partner implied long-term & stable relation ship with vendor
Focus on reducing costs for everyone through shared quality
goals,design responsibility,delivery in total cost perspective

Category
Scope
Materials to be pulled when they are needed.
Keeping the time of producing parts as close as possible to to the
time when parts are used
Need more attention in week link

Level load and
Balanced flow
Creates effective utilization of manufacturing resources
Level load is scheduling products to be manufactured in equal
quantities during a given period of time
Balanced flow -Continuous flow by effective application of mfg.
resources
Preventive
Maintenance(now
tbm/cbm & TPM way)
Supplier
partnership
Pull system
System Management
Major Targets.
Absenteeism <1%
More Multiskill
Quick Adaptation
for new methods
More Reliability
Flexibility
Zero breakdown

Man
Machine
No rejection
Material Method
Visibility/Transparent
Standard Operating
Procedures(3s..)
Steps Scope
Steps in Lean Manufacturing
Layout change & Kanban for information & material flow
Line Balancing,(Machine) & Operator Balancing
Improve MTBF,Reduce MTTR & Reduce spare part consumption-
(TPM Implementation-Autonomous maintenance)
Value Stream
Mapping
Study and plot a map of Material,information flow ,Manpower
inventory,cycle time,setup time etc.
Create flow
Balance to takt
time
Stabilize the
Production line
Levelled
Production
Match the Customer demand by uniform production rate
Zero Defect Defect free to customer Process
Improve the
flow
Paced withdrawal and Spider man Concept Implementation
What is Value Stream map?
Value stream mapping is a tool
that helps you
to see and understand
the flow of material and information
as a product makes its way through
the value stream
Value Stream Map-Over view
Site Layout
Internal/External
logistics
Partners Value
stream
Plant leveldoor to
door
Process layout-Area
layout/Cell design
Internal/External
logistics
Kaizen (Flow-value stream
improvement Vs Process-Elimination of
Waste)
Production scheduling
according to demand
Macro Vs Micro
Macro Micro
Value Stream Map-Objective
Lead time Reduction
Inventory turn
Increases
Speed to Marketing
Waste Elimination
Continuous
Improvement
Macro Vs Micro
Macro(Business Strategy) Micro(Site/Operations)
CURRENT STATE MAP
Supplier
Marketing
Month/ weekly /daily plan
Customer
I I
Takt time
54 Sec
1 X daily
Daily Req.
600 Nos.
1 X
Daily / weekly
Material
gate
pass

Process Ratio
C/T - Cycle Time C/O - Change Over Time
1 Day
= 0.6 %
Production Lead Time
Value added Time
=
780
129600
1
Inwarding
inspection
Uptime = 100%
C/T = 300s
C/O = 0
6(Shared)
Packing &
Shipping

2 (shared)
Raw Material
Stores




Kitting

Uptime = 100%
C/T = 60s
C/O = 0
Uptime = 100%
C/T = 60 s
C/O = 0
Order Plan
Uptime = 100%
C/T = 360 s
C/O = 0
1
1 Day
Prod. Lead time
Processing time
300 s 60 s
60 s 360s
Step 1 Value stream mapping
Production
3 Days
3 Days
Process ratio - 0.6%
I
6 Days
6 Days

Spiderman
Supplier
Month/ weekly /daily plan
Customer
I
Takt time
54 Sec
1 X daily
Daily Req.
600 Nos.
1 X
Daily
Material
gate
pass

Process Ratio
C/T - Cycle Time C/O - Change Over Time
1 Day
= 2.36 %
Production Lead Time
Value added Time
=
765
32400
1
Inwarding
inspection
Uptime = 100%
C/T = 300s
C/O = 0
6


Finished goods
Shipping
2
Stores




Kitting

Uptime = 100%
C/T = 45s
C/O = 0
Uptime = 100%
C/T = 60 s
C/O = 0
Order Plan
Uptime = 100%
C/T = 360 s
C/O = 0
Prod. Lead time
Processing time
300 s 60 s
45 s 360s
1
Container size
reduction
Online
Packing
Kanban
Operation
FUTURE STATE MAP
Step 1 Value stream mapping
(shared) (shared)
Re Design
Work Table
Marketing
Production
1 Day
Process ratio - 2.36%
I
6 Days
6 Days
What is Super Market?
Super market is a place where
material is available for the customer,
based on their requirement.
From the point of view of a customer,
the Super Market -style purchase ensures
that there is not going to be an excess purchase,
customer goes out to buy
what is needed and when it is needed
Super Market Pull System
"ordering" KANBAN "withdrawal" KANBAN
CUSTOMER PROCESS
Customer process goes to supermarket and withdraws
what it needs when it needs it.
SUPPLYING PROCESS
Supplying process to replenish what was withdrawn.
PURPOSE
Controls Ordering at suplying process without trying to schedule.
"ordering" KANBAN
It Triggers Ordering of Materials.
"withdrawal" KANBAN
It is a shoping list that instructs the Material handler to get and
transfer materials.
RM-supermarket
Material Material
A B
Supplying
process
Customer
process
Introduce kanban for Supplier parts
Supplier
plant
Before After
Supplier
plant
SPARES KANBAN
Example of FIFO System
Part no
Kanban cards
FIFO Lane#
Withdrawal kanban
RM
Description
Supermarket
Down stream
process
Up stream
process
# FIFO Lane
Operator Balance Chart - Example
Step 3 & 4
An Example of Paced Withdrawal
& Ordering
Drop kanban
at process center-1
Drop kanban
at process center-2
kanban
withdrawal Material
Requirement
Drop kanban
at process center-3 ordering kanban
PACEMAKER
PROCESS
"RM" supermarket
(repeat the cycle every pitch)
Vendor
ordering RM
2
3
1
4
Pull
System
What is Pace setting?
Pace setting is based on the Cycle time
of the process center which is directly having
impact on Customer Requirement.
Pitch has to be set according to the takt time
(available work time/customer requirement)
and quantity need to transfer,by multiplying both.

Why Pace setting?
To distribute the materials
evenly over time at the pacemaker process,
pace setting to be followed by Spider man..

Who is Spider Man?
The person from subsequent Process
who is Pulling material from supermarket
when he needs, is Known as Spider man.
He should come in a Paced manner
in order to have load-smoothing system of production.
It will eliminate the peaks and Valleys in the work load
to avoid excess production and excessive progression
in a particular process. This system is increasingly
easier in change the production plan.

Lean & 6Sigma - a comparison
Goal:
6 sigma = Reduce Variation
Understand customer requirement(QFD)
Focus on critical to quality variables
Lean=Remove waste
Understand what customer sees as value(QFD)
Eliminate everything that does not add value

Lean & 6Sigma - a comparison
Focus
6 sigma = Problem focused
Variation is a problem that can be addressed
Find the sources with the Largest economic impact
Lean=Flow focused
The constant start and stop of product results in costs
that cannot be passed on to the customer
Find the barriers to flow(Work flow Vs Work forced to flow)

Lean & 6Sigma - a comparison
Primary Benefit
6 sigma = Uniform Process output
Predictable,dependable processes are always less expensive to
operate(less scrap,rework)
Most companies grossly underestimate their COPQ
Lean=Reduced flow time
Improving flow will always reduce manufacturing
cost(Ford,1926)
Lean & 6Sigma - a comparison
Secondary Benefit
6 sigma
Less Waste
Faster throughput
Improved quality
Less Inventory

Lean
Less Variation
Uniform output
Improved quality
Less Inventory

How 6Sigma helps Lean?!
Lean
Waste elimination
Flow
At the pull of the Customer
Continuous improvement

Six sigma
Variation reduction
Scrap / rework elimination
Process control
Continuous improvement

Speed + Accuracy
=Performance
Lean exposes NVA/VA and makes value added flow
6Sigma reduces Variation of value added
Differences-Lean & 6 Sigma
Lean is long term - there is no done
Lean is enterprise wide - it will ultimately
involve all employees,as well as supplier and
customers
6Sigma Project focused,projects usually last
3-6 months
6Sigma Promoted Product reliability,Lean
promotes Organizational reliability.