LEAN THINKING

This concept was developed by Toyota Motor Company(1990s) so it is also called TPS (Toyota production system) Lean was generated from the Just-in-time (JIT) Just-in-time is supplying customers with exactly what they want when they want it.

Lean Thinking is about focus, removing waste, and increasing customer value. Lean manufacturing is the production of goods using less of everything compared to traditional mass production: less waste, human effort, manufacturing space, investment in tools, inventory, and engineering time to develop a new product

Overproduction producing more than the customer orders or producing early. Inventory of any kind is usually waste. Queues idle time, storage, and waiting are wastes Transportation moving material between plants, between work centers, and handling more than once is waste

Inventory unnecessary raw material, work-inprocess (WIP), finished goods, and excess

operating supplies

Motion movement of equipment or people Over processing work performed on product that adds no value Defective product returns, warranty claims,

rework and scrap

Lean is done by smoothening process flows, doing only those activities that add customer value and eliminating activities that dont Adding value . is another way of saying generating revenue. If it doesnt generate revenue then it must add cost, not value.

There are five basic steps in assessing lean operations: Identify the activities that create value Determine the sequence of activities (also called the value stream) Eliminate activities that do not add value Allow the customer to pull products/services Improve the process (start over)

Elimination of waste Increased speed and response Improved quality Reduced cost

Over production Waiting time Transportation Processing Inventory Motion Production defects

Quick and efficient response Getting goods to market Producing to customer demand and delivery requirements Responding to competitors actions Collecting payments Addressing to customer inquiries and problems

Raw material should not be bad Inconsistent processing operations Machine break down Eliminating the sources of defects and errors

Reduced waste and improved quality

Efficient equipment Better preventive maintenance

Smaller inventories

Lean is: A systematic approach to identifying and eliminating waste (non-value added activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection. The MEP Lean Network

Lean = Eliminating the waste

Value added

8 Wastes
5%

Non-value added

Overproduction Excess inventory Defects Non-value added processing Waiting Underutilized people Excess motion Transportation

Typically 95% of Total Lead Time is Non-Value Added!!!

Zero defects 100% value-add Lot size of one Pull of the customer

TSSC

Typical Results from Lean Conversions

Percentage of Benefits Achieved

0
Lead Time Reduction

25

50

75

100

Productivity Increase
WIP Reduction Quality Improvement Space Utilization

Where has Lean been successfully implemented?

Manufacturing
Automotive Industrial Products Furniture Textiles and Apparel Printing and Packaging Consumer Products

Service Industries Military Healthcare

1.Value Stream Mapping

A simple diagram of every step involved in the material and information flows needed to bring a product from order to delivery. Value stream maps can be drawn for different points in time as a way to raise consciousness of opportunities for improvement. - Lean Lexicon

Value-added:

ANY ACTIVITY THAT PHYSICALLY CHANGES THE

MATERIAL BEING WORKED ON (not rework/repair!) Machining Drilling Assembly Painting Knitting Spreading/Cutting Dying Sewing

Non-value added:

ANY ACTIVITY THAT TAKES TIME, MATERIAL, OR SPACE

BUT DOES NOT PHYSICALLY CHANGE THE MATERIAL
Sorting Counting Stacking Checking

Operations safely carried out with all task organized in the best known sequence and by using the most effective combination of resources
huMans Materials

Methods
Machines

3.The 5Ss
Sort
Keep only what is needed in your area

Set
A place for everything and everything in its place

Shine
Clean up the workplace

Standardize
Develop system (rules) to maintain what has been done

Sustain
Self discipline to maintain established procedures

Visual Controls

are simple signals that provide an immediate understanding of a situation or condition. They are efficient, self regulating, and worker managed. Example: if machine fails or a part is defective or manufactured incorrectly, a light might turn on or a buzzer might sound, indicating that immediate action should be taken.

MASS PRODUCTION A specific process for each item takes place at the same time on a batch of items, and that batch does not move onto the next stage of production or inspection until the whole batch is done. eg. baking cookies, or making shoes of two different colours(producing similar things, but with variants.) SINGLE PIECE FLOW Single piece flow is characterized by working on one product at a time. Some of these benefits include (1) improved quality and fewer defects (2) reduced inventory (3) less space required, (4) enhancement of overall manufacturing flexibility, (5) improves employee morale

Technology becoming increasingly important. Expert systems which use intelligent rules to make logical decisions. Used for Machine scheduling, Web auction bidding.

Layout of offices, equipment and processes is designed according to the best operational sequence. Standardizing the individual tasks by clearly specifying the methods and procedures. To reduce wasted human movement and energy.

Not possible with suppliers who miss delivery dates or provide poor quality goods. Possible only when the communication is on real-time basis. Shipments in containers standardized in size and shape.

Refers to quick setup or changeover of tooling and fixtures in processes so that multiple products in small batches can be run on the same equipment.

Requires uniform and stable production plan schedules. Using small lot sizes Reducing the workloads at workstation.

Quality at the source

Doing it right the first time Eliminates the opportunities for waste

Flexible and well educated work force

Inspecting your own work eliminates jobs along the process and inspection stations

Results in an effective leaner operating system

Make lean principles work one must go to the root case of problems and permanently remove it. Continuous improvement initiatives team work among all managers and employers. Six sigma and Lean Six Sigma Lean tools are used to stream line an order entry process discover significant reworks occurring because of incorrect addresses. Six Sigma used to drill down to the root cause of the problems Both aim to eliminate waste from the value chain and improve the design and operations of goods services and process. Driven by customer requirements and market strategies focus on dollar savings and ability to make financial impacts.

Ensuring the operating system to perform their intended function reliably. Prevent equipment failures and downtime to have zero accidents, zero failures and zero defects. Create worker ownership of the equipment by involving them in maintenance activities. Foster continuous efforts to improve equipment operations through employee involvement activities. TPM predicts equipment failure rates and performance maintenance before a problem arises. Lean maintenance.

Reduce cost and essentially do more with less

Green manufacturing Repairing

Refurbishing
Remanufacturing Cannibalizing Recycling

Just in Time is defined as philosophy of manufacturing based on planned elimination of all waste and continuous improvement of productivity. JIT is a philosophy developed by the Toyota motor company in the mid 1970s. It has become the standard of operation for many industries. Objective of producing the right part in the right place at the right time. Focuses on simplicity, eliminating waste, taking a broad view on operations, visibility and flexibility. Traditional manufacturing system use push production whereas JIT uses pull production.

It is a coordinated production system that enables the right quantities or parts to arrive when they are needed and where they are needed. JIT considers people to be the organizations most important resource. JIT is equally applicable in service organization

Takt time = Available time per time period /Market demand rate per time period
Takt time is the production rate for one good or service based on the rate of sales. Takt time is used in Lean operating systems and is equivalent to cycle time for assembly line balancing.

JIT manufacturing focuses on production system to achieve value-added manufacturing. TQM is an integrated effort designed to improve quality performance at every level. Respect for people rests on the philosophy that human resources are an essential part of JIT philosophy

Reduction in Inventories Improved quality Shorter lead times Lower production costs Increased productivity Increased machine utilization Greater flexibility

Aims to enhance supply chain integration by supporting and assisting joint practices By voluntary interindustry commerce standards in 1998 cooperative management of inventory through joint visibility and replenishment of products throughout the supply chain

Information shared between suppliers and retailers aids in planning and satisfying customer demands through a supportive system of shared information Links sales and marketing best practices to supply chain planning and execution processes

allows for continuous updating of inventory and upcoming requirements, making the end-to-end supply chain process more efficient. . Efficiency is created through the decrease expenditures for merchandising, inventory, logistics, and transportation across all trading partners.

1. Develop Front End Agreement 2. Create the Joint Business Plan 3. Create the Sales Forecast 4. Identify Exceptions for Sales Forecast 5. Resolve/Collaborate on Exception Items 6. Create Order Forecast 7. Identify Exceptions for Order Forecast 8. Resolve/Collaborate on Exception Items 9. Order Generation

1) Strategy and Planning 2) Demand and Supply Management 3) Execution and 4) Analysis.