LEAN ppt (1)

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History Of Lean Manufacturing

 Lean was born in the U.S.A• Ford production system established (1913)  Lean was first practiced in Japan • Toyota Production System (revealed in 1973) 

Lean has spread world wide• World class Lean performers develop in the U.S.A. (1990s) • Lean increasingly integrated into corporate strategies • Manufacturing • Education • Banking /Finance   • Retail  • Software.

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Defining Lean

• Lean is the systematic approach to identify and eliminate waste through continuous improvement by flowing the product at the pull of the customer in pursuit of the perfection.

• Lean manufacturing is used as a tool to focus resources and energies on producing the value-added features while identifying

and eliminating non value added activities.

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WHY LEAN

• Improve Customer Satisfaction

• Increase Sales and Profits

• Insure Long-term Health of Company

• Survival

• Create Sustainable Competitive Advantage

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The Lean Principle

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Lean Principle

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1. Identify Value• Identify value from the standpoint of the end customer

• Ask how your current products/services and processes disappoint your customer’s value expectation like :– price?– quality?– reliable delivery?– rapid response to changing needs?– fundamental definition of the product?

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2. Map the Value Stream

• A Value Stream Map is a simple picture that helps you focus on flow and eliminate the waste.

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3.Flow

• Using one piece flow by linking of all the activities and processes into the most efficient combinations to maximize value-added content while minimizing waste.

• The waiting time of work in progress between processes is eliminated, hence adding value more quickly.

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4. Pull• Pull System is a flexible and simple method of controlling/balancing the

flow of resources.– Eliminating waste of handling, storage, expediting, obsolescence,

repair, rework, facilities, equipment, excess inventory (work-in-process and finished).

• Pull System consists of:– Production based on actual consumption– Small Lots– Low inventories– Management by Sight– Better Communication

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5. Perfection

• The journey of continuous improvement.

• Producing exactly what the customer wants, exactly when, economically.

• Perfection is an aspiration, anything and everything is able to be improved.

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Traditional VS Lean Manufacturing

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Traditional Manufacturing

• High volume production of identical products.(Low variety/high volume)

• High direct labor costs.

• Production organized around large “batches” between operations.

CustomerOrder Waste

ProductShipment

Time

Business as Usual

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Lean Manufacturing

• No Waste

• No Inventory

• Pull System

CustomerOrder

ProductShipment

Time (Shorter)

Waste

Lean Manufacturing

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Value Added Activities

• Any Activity that physically changes the material being worked on (Not Repair / Rework).

• It is Simply any activity that adds value to the process.

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Non-value adding activities

• Any activity that takes Time, Material or Space but does not physically change the material.

For eg:- 1. Sorting Stacking

2. Counting Checking

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7 Forms of Waste

Typesof

Waste

CORRECTION

WAITING

PROCESSING

MOTION

INVENTORYCONVEYANCE

OVERPRODUCTION

Repair orRework Any wasted motion

to pick up parts or stack parts. Also wasted walking

Wasted effort to transportmaterials, parts, or finished goods into or out of storage, or between processes.

Producing morethan is needed before it is needed

Maintaining excessinventory of raw Material’s,parts in process, orfinished goods.

Doing more work thanis necessary

Any non-work timewaiting for tools, supplies, parts, etc..

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LEAN GOALS

• Zero Defects

• 100% Value Add

• Eliminate Waste

• Lot size of one

• Pull of the Customer

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Why is Lean Manufacturing Important?

• Many companies have turned to lean techniques as a way to achieve lower costs and more factory throughput. The most progressive companies, seeing the astonishing success that lean provides on the shop floor, have begun to apply lean methods to the entire supply chain.

• Companies that understand the evolving enterprise know that every step in the supply chain, even those that occur at the customer or supplier, has to be examined using lean techniques in order to achieve the maximum benefits. These companies find that they not only survive in difficult times, but they actually thrive and gain market share as their competition falls behind.

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Lean Approach

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The 5S’s

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Benefits of 5S

• Increases organization and efficiency

• Avoids wasted motion

• Increases safety

• Eliminates unnecessary inventory

• Offers improvements at an inexpensive cost

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5S Drawbacks

• If not fully implemented, may result in “Jive S”– Store things– Stick to the rules– Superficially clean– Switch to new fixtures– Serve reluctantly

• Can not be considered an end goal – must be part of a continuous improvement movement

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Just In Time (JIT)

• Lean is also recognized as Just In Time (JIT) production.

• Goods are produced to order so stock levels are minimal

• Keeping low stock levels decreases the costs of storing them helping to increase profits

• This increases the flexibility of a firm

• It helps reduce waste as you only use what you need

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Lean Production System

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Lean Production• Doing more with less inventory, fewer workers, less

space.

• Just-in-time (JIT)– smoothing the flow of material to arrive just as it is

needed.– “JIT” and “Lean Production” are used interchangeably.

• Muda– waste, anything other than that which adds value to

the product or service.

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Benefits of Lean Production

• Waste reduction by 80%.

• Production cost reduction by 50%

• Manufacturing cycle times decreased by 50%

• Labor reduction by 50% while maintaining or increasing throughput

• Inventory reduction by 80% while increasing customer service levels

• Capacity in current facilities increase by 50%

• Higher quality and higher profits

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Key Features of Lean Production

• Reduced Setup Cost and Times 

• Small-Lot Production 

• Employee Involvement and Empowerment 

• Quality at the Source 

• Pull Production, or Just-In-Time (JIT) 

• Continuous Equipment Maintenance 

• Multi- Skilled Workforce  and supplier involvement 

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Where has Lean been successfully implemented?

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

• Service Industries• Military• Healthcare

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Conclusion

Lean….• Focuses on optimizing process speed.• Provides flexibility to the system.• Reduces waste in the system• Focuses on inventory and resource reduction• Cost reduction• Maximizing process velocity• Separates value added work from non value added work with

different lean tools

• Thus Lean is to understand value from the customer perspective by eliminating waste thereby increasing customer satisfaction with reduction in cost.