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
Craft

Mass

Lean

highly skilled workers unskilled or

or artisans
semiskilled workers

teams of multiskilled
workers

simple, flexible tools

highly flexible
machines

expensive, single
purpose machines

unique,
standardized products high productivity and
individualized, custom
low cost
made products
low productivity, and
high cost

high productivity and

low cost

large product variety

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

Dell

BMW

Delhi

Carrier

Ford*

Caterpillar
Chrysler

General
Motors*

Coca cola

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

Waste&Lean mind set

in Organization

Seven types of wastes

Processing itself
Delay & Waiting
Over Production
Motion
Transportation
Inventory
Scrap & Rework

Developing the Lean Mind sets

Value added
30%
Cost added
70%

100%
80%

70%

60%
10%

40%
20%
0%

30%

Before
Value added

30%

After
Cost added

3-Step Rules to eliminate Waste

Step-I
50%
reduction
Step-II
2nd 50%
reduction

10% of Original Waste

Total
90%
reduction
Throughout the
Improvement
process,a company
must avoid settling
for superficial
solutions to cut
waste

Fundamentals of Lean mfg..

Fundamentals in Lean
Manufacturing
Technology Management
People Management
Systems Management

Technology Management

Structured flow manufacturing

Small lot size production
Setup Reduction
Fitness for use

Technology Management
Category

Scope

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

Ideally a lot size of one or at the very least,equal to customers

order.

Setup reduction

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.

Fitness For use

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

People Management

Total employee Involvement

Control through Visibility
Housekeeping
Total quality focus

People Management
Category

Scope

Employee
Involvement

Improvement through small group improvement activities

Trigger the Empowerment

Control through
visibility

When a problem occurs, so fast & how effective the decisive

action can be taken
Visibility is used as a effective Communication media

House keeping
focus

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

Total quality
Focus

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

System Management

Level load & Balanced flow

M/c maintenance(JH)
Supplier Partnerships
Pull system

System Management
Category

Scope

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

High level operating performance with in the requiredtolerances

Eliminate equipment as a source of process defect

tbm/cbm & TPM way)

Supplier
partnership

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

Pull system

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

Major Targets.
Man

Absenteeism <1%
More Multiskill
Quick Adaptation
for new methods
Material

No rejection

Machine

More Reliability
Flexibility
Zero breakdown
Method

Visibility/Transparent
Standard Operating
Procedures(3s..)

Steps in Lean Manufacturing

Steps

Scope

Value Stream
Mapping

Study and plot a map of Material,information flow ,Manpower

inventory,cycle time,setup time etc.

Create flow

Layout change & Kanban for information & material flow

Balance to takt
time

Line Balancing,(Machine) & Operator Balancing

Stabilize the
Production line

Improve MTBF,Reduce MTTR & Reduce spare part consumption(TPM Implementation-Autonomous maintenance)

Improve the flow

Paced withdrawal and Spider man Concept Implementation

Zero Defect

Defect free to customer Process

Levelled
Production

Match the Customer demand by uniform production rate

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

Macro Vs Micro
Macro
Micro
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

Value Stream Map-Objective

Macro Vs Micro
Macro(Business Strategy)
Lead time Reduction
Inventory turn
Increases
Speed to Marketing

Micro(Site/Operations)

Waste Elimination
Continuous
Improvement

Step 1 CURRENT STATE MAP

Value stream mapping

Marketing
MRP/ EPO

Month/ weekly /daily plan

Supplier

Production

2 (shared)

I
3 Days

C/O = 0
Uptime = 100%

ice
dv
yA

C/T = 300s

Kitting

Stores

6(Shared)

I
1 Day
C/T = 60 s

C/T = 60s

C/O = 0

C/O = 0

Uptime = 100%

I
6 Days

C/T = 360 s
C/O = 0

Uptime = 100%

Uptime = 100%
Value added Time
=
Production Lead Time

3 Days
300 s

1 Day
60 s

60 s

6 Days

Processing time
C/T - Cycle Time

C/O - Change Over Time

Material
gate
pass

Shipping

Process Ratio

Prod. Lead time

1 X daily

Packing &

Raw Material

inspection

er
liv
De

1X
Daily / weekly

Inwarding

Daily Req.
600 Nos.

Daily Plan

Takt time
54 Sec

Customer

Order Plan

Process ratio - 0.6%

360s

780
129600

= 0.6 %

Step 1 FUTURE STATE MAP

Value stream mapping

Marketing

Supplier

Order Plan

MRP/ EPO

Takt time
54 Sec
Month/ weekly /daily plan

Customer
Daily Req.
600 Nos.

Production

Stores

inspection

C/T = 300s

Online
Packing

I
1 Day

C/O = 0
Uptime = 100%

C/T = 45s

C/O = 0

C/O = 0

Uptime = 100%

Spiderman

Shipping
6 (shared)

C/T = 60 s

I
6 Days

300 s

1 Day

60 s

Uptime = 100%

Uptime = 100%

Container size
reduction

Value added Time

=

45 s

C/O - Change Over Time

Production Lead Time

6 Days

Processing time
C/T - Cycle Time

C/T = 360 s
C/O = 0

Process Ratio
Prod. Lead time

Material
gate
pass

Finished goods

Kitting

2 (shared)

1 X daily

ice
dv
yA

Inwarding

er
liv
De

Re Design
Work Table

1X
Daily

Daily Plan

Kanban
Operation

Process ratio - 2.36%

360s

765
32400

= 2.36 %

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

Supplying
process

Customer
process

Material

Mat erial

RM- supermarket

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.

Introduce kanban for Supplier parts

Before

After
Monthly
schedule
from F

SPARES KANBAN

Supplier
plant

Supplier
plant

store

Super market

Example of FIFO System

RM
Description

Kanban cards

Part no

Withdrawal kanban

Up stream
process

# FIFO Lane

FIFO Lane#

Down stream
process

Supermarket

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

2
PACEMAKER
PROCESS

kanban
withdrawal

Material
Requirement

(repeat the cycle every pitch)

ordering RM
Pull
System

Drop kanban

at process center-3

4
ordering kanban

"RM" supermarket

Vendor

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

Lean

Less Waste

Less Variation

Faster throughput

Uniform output

Improved quality

Improved quality

Less Inventory

Less Inventory

How 6Sigma helps Lean?!

Lean

Six sigma

Waste elimination

Variation reduction

Flow

Scrap / rework elimination

At the pull of the Customer

Process control

Continuous improvement

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.