Lean

Manufacturing

T.S.S.Jatunarachchi

Dept of Mechanical Engineering

2014/15

An initiative that focuses on cost reduction

and increases in turnover by constantly and
methodically eliminating activities that do not
add value(waste) to the manufacturing
process
Founder of this concept -Taiichi Ohno of
Toyota developed the Toyota Production
System (TPS) (1930s)

Lean is a set of PRINCIPLES for maximizing

the efficiency of a business or operation.
Lean manufacturing requires a complete
change of traditional management and
thinking patterns.

Just In Time (JIT)

Total Quality Management(TQM)
Total Production management(TPM)
Flow Charts
Workflow Redesign

Categories of waste that should

monitor

Waste from Overproduction

Waste from Transportation
Waste from Motion
Waiting
Inventory
Over Processing
Defects

The lean manufacturing process has three key

stages:
Step 1 Collect the data and analyse the whole
process to identify waste

Waste - Any Activity that DOES NOT increase the function

of the Product or Service (non value added activities)

One of the key tools used to identify waste

is a Process Mapping.

Step 2

Select the weak link /area/ critical process that

to be improved.
Do the detail analysis using
Brainstorming
Cause and Effect Diagram(Fishbone diagram)
Root cause Analysis

Identify the most important root causes

(minimum of five) and then define the Key
Performance Indices (KPI) relevant to the area
selected

Step 3

Address the the root causes and

explore the possibilities to achieve
the defined KPI values
Prepare a Management Plan,
Identifying tasks to achieve
above
defined KPIs

A process is...
A series of related activities that flow
through an organisation

Process mapping shows..

how materials and processes flow through
your organization to bring your product or
service to the consumer

Process

Input

Manufacturing
Customer service
Policy
development
Assessment
Order fulfillment

Output

displays the sequential steps involved

in converting a specific input into the
required output

Process mapping can be extremely valuable

because it can identify improvements in a
number of aspects in the work place, including:

Increases understanding of the work process

Provides understanding of resource allocation

Get the knowledge on important documents need

to be kept, training procedures etc.
Increases staff awareness

The color will help to identify specific steps when

looking at very detailed maps

Production process (with data box)

Milling
2 people

C/T = 2 min
C/O = 2 hr
Uptime = 74%

I
WK

C/T

Cycle time

C/O

Changeover time

Inventory
Truck shipment
External sources (suppliers, customers, etc.)
Electronic Information flow

Movement of production material

Production
Control

Supplier
1

Market Forecast
Customer
A

Supplier
2

Customer
B

D
WK

WK

I
30 days
Shipping

Receiving
I

Welding

Milling

5 days
2 people

C/T = 2 min
C/O = 2 hr
Uptime = 74%
5 days

2 people

2 min

C/T = 4 min
C/O = 3 hr
Uptime = 61%
10 days

Assembly &
Inspection

Painting

3 people

C/T = 2 min
C/O = 30 min
Uptime = 93%

C/T = 7 min
C/O = 4 hr
Uptime = 48%
15 days

4 min
Total Lead Time = 68 days
Value Added Time = 15 min

3 people

8 days
7 min

30 days
2 min

Step2 BRAINSTORMING

FISHBONE DIAGRAM

ROOT CAUSE ANALYSIS

is an industry jargon term for a type of

Measure Performance
KPIs are commonly used by an organization
to evaluate its success or the success of a
particular activity in which it is engaged.

You can use KPI examples for fields as

follows:
1. Manufacturing
2.Human resources
3. Sales
4. Marketing
5. Financial
6. Accounting

Examples Production KPI

Manufacturing cycle time
2.
Defects per million opportunities (DPMO)
Calculation: Total Number of Defects / Total
Number of Opportunities for a Defect. Then
multiply the answer by 1 Million.
3. Average production costs of items
Average production costs of items produced
within measurement period.
4. Mean-time between failure (MTBF)
5. Scrap value %
Scrap value as a percentage of production
value.
1.

Recruitment KPI
They includes KPIs about
Training KPI
They includes KPIs about
Health and safety KPI
They includes KPIs about
Working time KPI
They includes KPIs about
HR efficiency KPI
They includes KPIs about

recruitment process.
training process.
health and safety.

working time.
efficiency of workforce

Manufacturing Process
To Reduce casting process scrap rate by
10% at the end of 2012.
Service Process
To Reduce customer complaints by 20% at
the end of 3rd Quarter 2012.
HR Process
To train 60% of employees about TQM
concept at the end of 2012.

KPI selected : To reduce the Lime

consumption for neutralization at Effluent
Treatment Plant from 20 bags/day to 10
bags/day
Start Date : 01.01.2015
Target Date of completion : 01.06.2015

ACTIVITY

Formation of main team

Resourc Respon

Time Frame(Date)

es

sibility

Start

End

Man

Core

5.4.11

5.4.11

5.5.11

5.5.11

Team
Preparing Fish bone diagram

In
charge

Washing of floor stopped in each shift

Incharg

and decided to do once a day

15.5.11 15.5.11

JF/formi
ng
Leakage of water from forming & JF

Man/

tanks to be stopped

material

Recycling of wastewater after washing Man

1.6.11

15.6.11

10.7.11 10.07.11

batteries started
Stirrer in lime dosing tanks modified

Man

11.8.11 20.8.11

Exploring the possibility of applying lean

manufacturing concepts
Select a processes in your/other
organization and
briefly
describe
it indicating process inputs and outputs.
Map the above process and identify week
links/areas.
Define at least 5 KPIs to improve week
links\areas in this process.
Prepare a management plan, Identifying
tasks to achieve
above defined KPIs