Lean Manufacturing Vijay Kapoor – Principal ConsultantNaresh K Chawla - Sr. Consultant
1850 Eli Whitney (Interchangeable parts) American Civil War Drawing conventions, Tolerances Modern machine tool development Fredrick Taylor (Standardized work, time study & work standards) 1900 Frank Gilbreth (Process charts, motion study) World War I Henry Ford (Assembly lines, flow lines, manufacturing strategy) World War II Deming & Juran (SPC, TQM) 1950 Eiji Toyoda, Taiichi Ohno, Shigeo Shingo Toyota production system, JIT Stockless production, World class manufacture 1990 Lean Manufacture History & Evolution Before 1850 Craft manufacturing
Industry’s Concerns Rising Cost of Input (Raw material, Energy) Govt. Policies Competency of employees Global Competition Accountability to shareholders & financers Above all SUSTAINABLE Improvement
Survival Kit • Create precise customer value - goods and services with higher quality and fewer defects – with less human effort, less space, less capital, and less time than the traditional system of mass production. • Remove ‘waste’ • Consume ‘just enough’ recourses • Do more with less
Defining Value and Waste • Defining value-an item or feature for which a customer willing to pay. • Every thing else – waste • Waste - activities that consume time, resource and/or space but do not add value. • Lean - Production of product to meet demand on daily basis with minimum lead time & non value added activities eliminated or minimized
Value Added Activity • Test for value added activities • - Transforms product in some way • - Customer sees & willing to pay • - Will the customer know if eliminated
Seven Wastes An 8th waste is the wasted potential of people MUDA is the Japanese word for WASTE. 5 7 2 1 4 3 6 Overproduction To produce sooner,faster or in greater quantities than customer demand. Seek it out and get rid! 1 Over Processing Inventory 7 2 Processing beyond the standard required by the customer. Raw material, work in progress or finished goods which is not having value added to it. Rework 6 Waiting 3 Non right first time. Repetition or correction of a process. People or parts that wait for a work cycle to be completed. 5 4 Transportation Motion Unnecessary movement of people, parts or machines within a process. Unnecessary movement of people or parts between processes.
Eliminating Waste 7 steps 1. Reduce lead time 2. Cut operations costs 3. Improve business performance visibility 4. Speed time to market 5. Exceed customer expectations 6. Streamline outsourcing processes 7. Manage global operations
“Lean manufacturing is not a collection of best practices from which manufacturers can pick and choose. It is a production philosophy, a way of conceptualizing the manufacturing process from raw material to finished goods and from design concept to customer satisfaction. Lean is truly a different way of thinking about manufacturing.” - Running Today’s Factory: A Proven Strategy for Lean Manufacturing, Charles Standard. Lean manufacturing is a systems approach
Comparison of lead time Business as Usual Customer Order Waste Product Shipment Time Lean Manufacturing Customer Order Product Shipment Waste Time (Shorter)
Main Features of Lean Manufacturing • Greater Product Variety • Fast Response (Flexibility) • Stable Production Schedules • Supply Chain Integration • Demand Management • Broader jobs, highly skilled workers, proud of product • Excellent quality • Reduced costs • Ability to meet global market & competition
Lean Thinking Principle #1 ……‘Define Value’ ??? Quality Flexibility Service Variety - - - - V A L U E - - - - Variability Response-Time Cost The critical starting point for Lean Thinking is valueas defined by the ultimate customer.
Value-add time (Hours) Setup Transportation Waiting Inspect Inventory Waiting Typical value-add to lead-time ratio ~ 1% Waste Value-add activity Lean Thinking Principle #2 ……‘Identify the Value Stream’ All the actions required to bring a specific product or service through the three critical transformation processes: • Idea transformation: concept to market launch • Information transformation: order-take through scheduling to delivery • Physical transformation: raw materials to final customer
Lean Thinking Principles #3,4,5 #3: Make the work flow • Every time the flow of work stops we consume resources that adds costs but generates no value #4: Respond only when the customer pulls work • Overproduction is the worst form of waste as it generate all other waste types e.g. transportation, inventory, waiting,….. #5: Strive to seek perfection • The real benchmark is zero waste, not what your competitors are doing!
Lean Tools & Supporting Strategies 5S Visual control Team building Problem solving Standardised processes Value stream mapping
Lean Tools & Supporting Strategies Pull system Kanban Takt time – rate of customer demand Manufacturing Cells Heijunka 5Ws & 1H
Lean Tools & Supporting Strategies • Kaizen • Total Productive Maintenance • SMED (setup reduction) • Poka-Yoke or mistake-proofing • Cycle time reduction • Andon – signalling system to stop line
5S • A method for organizing a workplace, and keeping it organized. • Benefits • Improve safety • Decrease down time • Raise employee morale • Identify problems more quickly • Develop control through visibility • Establish convenient work practices
Visual Control Any communication device used in the work environment that tells us at a glance how work should be done and whether it is deviating from the standard Benefits 1. Increase productivity 2. Improve quality 3. On-time delivery 4. Reduce inventory 5. Increase equipment reliability 6. Boosts bottom-line profits
Visual controls show Where items belong? How many items belong there? What is the standard procedure for doing something? Status of work in process. Many other types of information critical to the flow of work activities.
Visual management Visual management maintains an orderly work environment. Employees have quicker and safer access to items that are needed. Colour-coding is often used to remind employees of where items belong. If order is not continually stressed, disorder will result and create an unfriendly work atmosphere.
Kaizen & Total Productive Maintenance