What is Lean Manufacturing System? Lean Manufacturing System is systematic approach to identifying and eliminating waste (non-value added activities) through continuous improvement by flowing the product only when the customer needs it (called “pull”) in pursuit of perfection.
Lean Manufacturing System LMS is a production management system which aims to provide the customers: • What they want. • How they want it. • Where they want it • At a competitive price. • In the quantities and varieties they want • Always of expected quality
Why do we need LMS? • To meet the challenge of competing in globalised markets. • Continued Market place focus on quality, cost and delivery (QCD) • Pressure of out sourcing by OEM? • Ever increasing customer expectations. • The need to compete effectively in the global economy • Pressure from customers for price reductions • Continued marketplace focus on quality cost and on-time delivery.
Analysis of Traditional System of Manufacturing Starts in factory • Production plan based on demand forecast • Material procurement to meet production plan • Material receipt and inspection • Storage of materials and components till required for processing • Actual production in various process stations with stress on maximizing production • Storage of components required for assembly • Assembly , final inspection and packaging • Storage of finished goods in company godowns and zonal depots • On the shelf in retail outlets. Ends with the customer Since the product is pushed from factory to the customer, this system is also known as ‘PUSH’ system.
Weakness of Traditional System • Risk related to forecasts. • Long overall business process cycle. • Good comfort level at various stages leading to slack in the system. • It hides the problems, waste and obstacles in the business flow. • Encourages departmental focus as their efficiency is judged on the basis of output. (departmental enterprise) Pushes up costs and affects competitiveness..
Core of LMS is waste reduction leading to: • Improved quality • Higher through put • Better efficiency • Higher profitability.
7 Types of waste 1. Waste due to non standardization and variation in production processes. 2. Waste due to inadequate capacity utilization 3. Waste due to waiting time of men, machines and material. 4. Waste due to unnecessary movement of material 5. Waste due to pre-process and in-process inventory. 6. Waste in the process itself (due to excessive cycle time and consumption of direct material, indirect material & energy). 7. Waste due to producing defective goods and unnecessary
What is Lean Manufacturing System (LMS) Basic Objective of LMS is to do more and more with less and less human effort, less equipment, less time and less space. At the same time coming closer and closer to providing customers what exactly they want. LMS concentrates on business process time line. Order cash LMS aims to reduce the time line by reversing the sequence of activities and eliminating non value added operations. Time line
Flow in Lean Manufacturing System Starts with customer • Order acquisition by marketing • Production planning • Just in time receipt of material • Pull system of production down the entire process chain by kanban, a control tool starting from sales dispatch section. Since the customer pulls the product, it is also called pull system of manufacture. Ends with primary producers
Key Principles • 1. Minimize material handling. Preference should be given to low or no-cost solutions such as gravity-feed slides. Handle product once only. • 2. Minimize distances. Avoid walking, carrying, etc. by creating cells, combining operations within a work centre, better planning, and so on.
Key Principles... • 3. Minimize strain. Work centres should be ergonomically designed to avoid back and other muscle strains. • 4. Minimize clutter. Everything should have a home, from parts and tools at a workstation, to equipment and product within designated floor spaces. • 5. Minimize storage. If you have the space, it will surely get filled. Thus, continuously minimize your storage space for raw material, WIP, finished goods and spare parts throughout the supply chain.
Key Principles... • 6. Maximize utilization. Make optimal use of people, space, and equipment to improve the return on investment. • 7. Maximize flexibility. The key to lean is creating a layout that can adapt quickly to changes in product, equipment, personnel, or material. • 8. Maximize smooth flow. Continuously determine and eliminate the bottlenecks, then re-balance the line.
Key Principles... • 9. Maximize visibility. To quickly spot problems, maintain a clear line of vision to anywhere, from anywhere. • 10. Maximize communication. Lean requires constant training on tools available to meet goals and objectives, and feedback on how well things are going.
Tools of LMS • JIT • Total productive maintenance • 5 S • Process optimization • Visual Controls • Streamlined layout • Standardized work. • Batch size reduction • Quality at the source • Point of use storage • Quick changeover • Pull and Kanban