Lean Manufacturing

What is Lean Manufacturing System?

Lean Manufacturing System is systematic approach

to identifying and eliminating waste (non-value
added activities) through continuous improvement
by flowing the product only when the customer
needs it (called pull) in pursuit of perfection.

Lean Manufacturing System

LMS is a production management system

which aims to provide the customers:
What they want
How they want
Where they want
At a competitive price
In the quantities and varieties they want and
Always of expected quality

Why do we need LMS?

To meet the challenge of competing in globalised markets.

Continued Market place focus on quality, cost and
delivery (QCD)
Pressure of out sourcing by OEM?
Ever increasing customer expectations.
The need to compete effectively in the global economy
Pressure from customers for price reductions
Continued marketplace focus on quality cost and on-time
delivery.

Analysis of Traditional System of

Manufacturing
Starts in factory

Production plan based on demand forecast

Material procurement to meet production plan
Material receipt and inspection
Storage of materials and components till
required for processing
Actual production in various process stations
with stress on maximizing production
Storage of components required for assembly
Assembly , final inspection and packaging
Storage of finished goods in company godowns
and zonal depots
On the shelf in retail outlets.

Ends with the customer

Since the product is pushed from factory to the customer, this
system is also known as PUSH system.

Weakness of Traditional System

Risk related to forecasts.

Long overall business process cycle.

Good comfort level at various stages leading to slack in the

system.

It hides the problems, waste and obstacles in the business flow.

Encourages departmental focus as their efficiency is judged on the

basis of output. (departmental enterprise)

Pushes up costs and affects competitiveness..

Core of LMS is waste reduction leading

to:

Improved quality
Higher through put
Better efficiency
Higher profitability.

7 Types of waste

1. Waste due to non standardization and variation in production processes.

2. Waste due to inadequate capacity utilization
3. Waste due to waiting time of men, machines and material.
4. Waste due to unnecessary movement of material
5. Waste due to pre-process and in-process inventory.
6. Waste in the process itself (due to excessive cycle time and consumption
of direct material, indirect material & energy).
7. Waste due to producing defective goods and unnecessary

What is Lean Manufacturing System (LMS)

Basic Objective of LMS is to do more and more with less and
less human effort, less equipment, less time and less space.
At the same time coming closer and closer to providing
customers what exactly they want.
LMS concentrates on business process time line.

Order

cash
Time line

LMS aims to reduce the time line by reversing the sequence

of activities and eliminating non value added operations.

Flow in Lean Manufacturing System

Starts with customer

Order acquisition by marketing

Production planning
Just in time receipt of material
Pull system of production down the entire process chain by
kanban, a control tool starting from sales dispatch section.

Ends with primary producers

Since the customer pulls the product, it is also called pull
system of manufacture.

Key Principles

Key Principles

1. Minimize material handling. Preference should be given to low

or no-cost solutions such as gravity-feed slides. Handle product
once only.
2. Minimize distances. Avoid walking, carrying, etc. by creating
cells, combining operations within a work centre, better planning,
and so on.

Key Principles...
3. Minimize strain. Work centres should be
ergonomically designed to avoid back and other muscle
strains.
4. Minimize clutter. Everything should have a home,
from parts and tools at a workstation, to equipment and
product within designated floor spaces.
5. Minimize storage. If you have the space, it will surely
get filled. Thus, continuously minimize your storage space
for raw material, WIP, finished goods and spare parts
throughout the supply chain.

Key Principles...

6. Maximize utilization. Make optimal use of people,

space, and equipment to improve the return on investment.
7. Maximize flexibility. The key to lean is creating a
layout that can adapt quickly to changes in product,
equipment, personnel, or material.
8. Maximize smooth flow. Continuously determine and
eliminate the bottlenecks, then re-balance the line.

Key Principles...

9. Maximize visibility. To quickly spot problems,

maintain a clear line of vision to anywhere, from
anywhere.
10. Maximize communication. Lean requires
constant training on tools available to meet goals and
objectives, and feedback on how well things are going.

Tools of LMS

JIT
Total productive maintenance
5S
Process optimization
Visual Controls
Streamlined layout
Standardized work.
Batch size reduction
Quality at the source
Point of use storage
Quick changeover
Pull and Kanban