Lean manufacturing system

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Lean manufacturing evolved out of lean thinking which means removal of waste.

Waste specifically means any activity which absorbs resources but creates no value.

Lean manufacturing is a systematic approach for identifying and eliminating waste in operations through continuous improvement.

Pre 20th century

20th century

Ford starts the ball rolling

Toyota develops lean thinking

“ A management philosophy which seeks to integrate all organizational functions ( marketing, finance, design, engineering, production, customer service….) to focus on meeting customer needs and organizational objectives.”

Just-in-time (JIT) is an inventory strategy implemented to improve the return on investment of a business by reducing in-process inventory and its associated Carrying costs.

KAIZEN is Japanese word for improvement. Kaizen was first implemented in several Japanese businesses during the country's recovery after World War II, including Toyota, and has since spread to businesses throughout the world.

SEIRI:- SortingSEITON:- SimplifyingSEISO:- Sweeping, systematic cleaning or shiningSEIKESTSU:- StandardizingSHITSUKE:- Sustaining

The term six sigma comes from the field of statistics. Six Sigma approach has broadened to include such things as programme and project management tools and rules all of which are complementary to lean manufacturing.

Kanban means "sign" in Japanese, and is a visual reactive re-order point control system.

Another lean manufacturing tool, which is focused on the objective of zero breakdowns.

There are two types of manufacturing system simulation: computer and manual. This approach enables operators to "buy-in" to the design of the manufacturing system.

Over productionTransportationWaitingInventoryMotionOrder processingDefects

CASE STUDY

In 1986 Motorola invented Six Sigma, a quality and business improvement methodology that is revolutionizing industry.Two decades and two Malcolm Baldridge Awards later, Motorola is still finding new ways to reinvent itself using this techniques.

Dan Tegel, Global Director, Digital Six Sigma Business Improvement Motorola

In 1980s US economy was facing downtrend as companies like Motorola were experiencing many problems.

Like increasing complaints about warranty claims for defective products.

Motorola sold its TV division Quasar to Matsushita, which is a Japanese electronic company.

They found that Japanese management focused on preventing errors at the source therefore dramatically reduces the defects and the cost for rectifying them.

In 1987 Galvin launched a long term quality program called “The Six Sigma Quality Program”.

By 1992, Motorola aimed to achieve the overall quality level of 5.4 defects per million, a little less than Six Sigma which is 3.4 defects per million

Upper management at the time generally thought increasing quality meant increasing cost. The use of Six Sigma proved the opposite was true. One of Motorola’s most significant contributions was to change the discussion of quality from the one where quality levels were measured in percentages (parts per hundred) to a discussion of parts per million. During inspiration from Motorola, many other corporates across the world began to adopt the Six Sigma methodology and the concept began to be loosely described as “ The Second Industrial Revolution.”