AGILE & LEAN MANUFACTURING

(IM-515)

Course Instructor:
Dr. Syed Amir Iqbal.
 Course Outline
• IM-515 Agile and Lean Manufacturing
Introduction to Lean Manufacturing, value concept,
lean objectives & tools, origins of lean systems,
group technology, 5S, single minute exchange of
dies, total productive maintenance,
Kaizen, Just-In-Time Manufacturing Systems, Push
& Pull Manufacturing Systems, Poka-Yoke,
Toyota production system, introduction to agile
manufacturing, research projects in agile
manufacturing, design of market responsive
supply and distributions manufacturing systems.
 Books & Reading Materials
• The Toyota Way: 14 Management Principles
from the World's Greatest Manufacturer
by Jeffrey K. Liker
• LEAN Manufacturing Implementation: A
Complete Execution Manual for Any Size
Manufacturer by Dennis P. Hobbs 
• Lectures notes
A little about me:
• B.E in Mechanical, NED UET
• Masters in Mechanical Engineering (Specialization in
Manufacturing), NED UET
• Doctor of Philosophy, Mechanical Engineering, The
University of Manchester, UK
Working / Tecahing Experience:
• Over 16 years of (combined field and teaching)
experience.
Marks Distribution & Grading Scheme
• Semester Exam 60%
• Sessional Work 40%
• Grading Scheme
LET’S KNOW WHO’S SITTING NEXT
o YOUR NAME
o FINAL DEGREE
o ORGANIZATION
o JOB TITLE
o JOB DESCRIPTION
o EXPERTIES
 What is Lean Manufacturing?
• Lean manufacturing or thinking is exactly what the name sounds like - it is
about 'cut to the bone', fat-trimmed, streamlining operation and
organizations.
• Womack and Jones define lean manufacturing as a five-step process:
defining customer value, defining the value stream, making it “flow”,
“pulling” from the customer back, and striving for excellence.
• Taiichi Ohno, founder of TPS, said it even more succinctly:
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 that time line by removing the non-value-added wastes.
• Some have referred to lean manufacturing as the TOYOTA PRODUCTION
SYSTEM, or JIT (just-in-time) manufacturing, paying attention to things like
flow productions, line operations, value streams, Kaizen.
• Problems most companies face are: the need for fast, flexible processes
that give customers what they want, when they want it, at the highest
quality and affordable cost.
 What is Lean Manufacturing?
• Lean Manufacturing, also called Lean Production, is a set of
tools and methodologies that aims for the continuous
elimination of all waste in the production process. The
main benefits of this are lower production costs, increased
output and shorter production lead times.
• More specifically, some of the goals include:
– Defects and wastage
– Cycle Times
– Inventory levels
– Labor productivity
– Utilization of equipment and space
– Flexibility
– Output
What is Lean Manufacturing?
Lean = Eliminating Waste
Defect
Over production
Waiting time
Non-utilized people
Transportation
Inventory
Motion
Excess processing
 What is Lean Manufacturing?
It is a Manufacturing Philosophy which shortens the time line
between the customer order and the shipment by eliminating
waste.
 What is Lean Manufacturing?
Key Principles of Lean Manufacturing:
Key principles behind Lean Manufacturing can be summarized as follows:

• Recognition of waste
• Standard processes
• Continuous flow
• Pull-production
• Quality at the Source
• Continuous improvement
 What is Lean: The Value
Concept
• Differentiate Value from Waste (Muda)
• Define Value from Customer’s point of View
• How the Employees see Quality
• Transform the culture of the Organization: Gap Analysis
Employee understanding of:
• What does Value mean to the customer.
• How value added activities generate the biggest revenue
• What contribution he/she can make in value added
activities.
 What is Lean: The Value Concept
• Origin of Lean Systems and JIT
• How the Lean and JIT Supplement each
other
• How removal of NVA Activities help in
JIT.
 What is Lean Manufacturing?
History of Lean Manufacturing:
• Taiichi Ohno (February 29, 1912 – May28, 1990) is
considered to be the father of the Toyota Production System , also
known as Lean Manufacturing. He wrote several books about the
system, the most popular of which is Toyota Production System.
Born in Dalian, China, and a graduate of the Nagoya Technical High
School, he was an employee first of the Toyoda family's Toyoda
Spinning, then moved to the motor company in 1943, and gradually
rose through the ranks to become an executive
 What is Lean Manufacturing?
• In 1945, Toyoda challenged Taiichi Ohno to learn how to
compete with US Automakers not on building large
volumes of similar models, but many models in low
volume.
• Ohno was given 3 years to develop a system to achieve
this goal.
• Ohno went to the US and studied Ford mass assembly
processes at the Rouge River Plant.
 What is Lean Manufacturing?
• Ohno also studied the supermarket concept of
ordering and replenishing stock by a signal system.
This resulted in Ohno applying the KANBAN concept
to the system he would develop
• It took Ohno over 20 years to develop the system
that became known as The Toyota Production
System (TPS)
 What is Lean Manufacturing?
Craft Manufacturing
• Late 1800’s
• Car built on blocks in the barn as workers walked
around the car.
• Built by craftsmen with pride
• Components hand-crafted, hand-fitted
• Excellent quality
• Very expensive
• Few produced
 What is Lean Manufacturing?
Mass Manufacturing
• Assembly line - Henry Ford 1920s
• Low skilled labor, simplistic jobs
• Interchangeable parts
• Lower quality
• Affordably priced for the average family
• Billions produced - identical
 What is Lean Manufacturing?
Lean Manufacturing
• Cells or flexible assembly lines
• Broader jobs, highly skilled
workers, proud of product
• Interchangeable parts,
even more variety
• Excellent quality mandatory
• Costs being decreased through process
improvements.
• Global markets and competition.
 Way to Toyota
Employee
JIT & Mass TQM
Production (Deming & Juran)
Empowerment
& Kaizen

Toyota Production System (TPS)

Japan becomes the Manufacturing Quality Leader

 Mass Production vs. Lean Production
Mass Production
Customer Makes what engineers want
Satisfaction in large quantities at
statistically accepted quality
levels.
Lean Production
Makes what customers
want with zero defects,
when they want it and only
the quantities they order

Leadership By Executive command and By vision and broad

coercion participation
Organization Individualism and military- Team based operations and
style bureaucracy flat hierarchies
External Based on price Based on long-term
Relations relations
Information Poor management based on Rich management based on
Management abstract reports generated by visual control systems
and for managers maintained by all
employees
 Mass Production vs. Lean Production
Mass Production Lean Production
Orientation Supply driven Customer driven

Planning Orders are pushed through Orders are pulled through

factory based on production factory based on
plan/ forecast customer/downstream
demand
Batch size Large Small

Inventory Buffer of work-in-progress Little or no work-in-

between each production progress between each
stage production stage.
 Mass Production vs. Lean Production
Mass Production
Culture Of Loyalty & obedience;
sub-culture of alienation and involvement based on
labor strife
Production Large-scale machines,
functional layout, minimal
skills, long production runs,
massive inventories
Maintenance By Specialists
& Quality
Design & Isolated genius model with
Engineering little input from customers
and little respect for
production realities
Lean Production
Harmonious culture of
human resources & long
term relations
Human scale machines,
cell-type layout, multi-
skill, one-piece flow, zero
inventories
Equipment management
by production &
engineering
Team-based model, with
input from customers &
concurrent development
of product and process
design
 LEAN System - Benefits
• 15% growth in 1 year
• 12% Productivity increment in 1 year
• 20% Space saving in 1 year
• 90% On Time Delivery in Full
• 28% Throughputs Lead time reductions
• Improved Supplier performance
• Improved Customer Quality
• Progressive MUDA Elimination
 LEAN System - Benefits
• Flexible structures assigned to business goals
• Roles & Responsibilities assigned to business goals
• Process driven culture
• Visual demonstration of achievements
• Increased employee ability and morale
• Visual abnormal situations
• Focused application of resources for best return
• Believable prediction of results
 Lean implementation Results
BEFORE AFTER IMPACT

Productivity 25 pr/person 40 pr/person 60% Improvement

Quality 4.6% defects at final 2.1% defects at final 58% less defects
audit audit
Space 102 sq. ft. per person 36 sq. ft. per person 64% less sq. ft. per
person
WIP 4 units of WIP per 0.3 units of WIP per 13 times less units in
unit produced. unit produced inventory
Lead Time 3.7 days 0.27 days 93% reduction

Absenteeism 3.2% daily 2.1% daily 33% reduction

Variation in +/- 45% variation +/- 10% variation 88% more reliable
Process (Daily Schedule attainment) (Daily Schedule attainment)
process
(Daily Schedule attainment) (Daily Schedule attainment)
 Description of the Five Primary
Elements
• The Five Primary Elements for lean manufacturing are:
– Manufacturing Flow
– Organization
– Process Control
– Metrics, and
– Logistics
• These elements represent the various facets required
to support a solid lean manufacturing program, and it
is the full deployment of these elements that will
propel a company on a path toward becoming a world
class manufacturer.
 Description of the Five Primary
Elements
Following is a basic definition of each of the Five Primary Elements:
– Manufacturing Flow:
The aspect that addresses physical changes and design standards that are
deployed as part of the cell.
– Organization:
The aspect focusing on identification of people’s roles/functions, training in new
ways of working, and communication.
– Process Control:
The aspect directed at monitoring, controlling, stabilizing, and pursuing ways to
improve the process.
– Metrics:
The aspect addressing visible, results-based performance measures; targeted
improvement; and team rewards/recognition.
– Logistics:
The aspect that provides definition for operating rules and mechanisms for
planning and controlling the flow of material.
 Description of the Five Primary
Elements
• Each of these elements contains a set of lean principles
which, when working together, all contribute to the
development of a world-class manufacturing
environment.
• These primary elements provide full coverage of the
range of issues that surface during a lean
manufacturing implementation. Each element focuses
on a particular area of emphasis an compartmentalizes
the activities. Even though each element is important
on its own for the deployment of a successful lean
manufacturing program, the power comes from
integration of the elements.
What is Lean Manufacturing?
What is Lean Manufacturing?
What is Lean Manufacturing?
What is Lean Manufacturing
 What is Lean Manufacturing?
• 4. Pull
• Definition
• Letting the customer pull from enterprise
-Don't Make Anything Until It Is Needed
-Then Make It As Quickly As Possible
 What is Lean Manufacturing
• 5. Strive for Perfection

• Continuous radical and incremental

improvement
• Continuous Banishment of muda
-Pursue Perfection, Not the Competition There
Is No End to the Process of Reducing Efforts,
Space, Costs and Mistakes
• the term non-value-added refers to activity that consumes time (people
expense), material, and/or space
• (facilities expense), yet does not physically advance the product or
• increase its value.
• A value stream is the total cycle of activity, from initial customer contact
through receiving payment for a product that has been delivered.
•  
• Flow, in the ideal state, simply implies a seamless sequence of activity
throughout the process, with no stalls, no disruptions, and no disconnects or
backtrack loops.
•  
• The concept of pull means that things are done when they are required to be
done, not before. It implies a consumption-driven or customer demand–driven
system, as opposed to a forecast-driven system.
•  
• Gap analysis would recognize the gap between where they were and where
they wanted to be. An analysis was performed to understand the gap and
identify actions to close it.