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Outline
Lean Management: Concepts, practices & principles pre-mid term
10-11 sessions Articles, Case Studies
A multi-faceted perspective
Historical A scientific Management View A value chain view: An organizations functions The Practitioners: Toyota, Motorola
Therein lies the need for development of scientific management to disprove this belief
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task sequence for workman 1 Lift green block from crate and place on work 1 bench 2 sec 2 Pick up blue part and place on green block 3 Screw blue part onto green block 4 Lift and place it near workman 2 2 sec 4 sec 2 sec
Proof
Observations of Frederick Winslow Taylor (1900) Pig of iron weighs 92 pounds (42 kg) A worker bends down, lifts it, walks a few yards and then drops it on a pile How can the 4 principles be applied here? F W Taylor explains his 4 principles through his work at Bethlehem Steel works, Pennsylvania
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Science of Shoveling
Taylor observed the work of shoveling Workers handled 1.7 kg with a shovel With the same shovel, they handled 17 kg of iron ore Productivity varied drastically Exhaustion set in very soon though the workman worked the whole day. Needed to research and find out optimal capacity of the shovel.
Coal
Iron Ore
End result: Taylor reduced the number of workmen from 500 to 140, profit increase of $75,000 in 1901.
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Batch manufacturing
Longer lead times Higher Work in Process (WIP) Difficult to trace quality problems Problems of re-work
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Assembly line
A long conveyor belt is in operation One component, stage-wise, one operator / robot at a time.
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Assembly line
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Lean Principles
The focus is on the process: efficiency improvements,
Tangible Measurable
Lean
Cost effective Meets targeted costs, time In line with allotted manpower / people
5 principles
Ref: Womack J.P. & Jones, D.T.
Value
Pull
The Value Stream Perfection Flow
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Principle 1: Value
Example: Plan & execute a family holiday 1. Discuss with family members about choice of 120 location: Domestic / International 2. Check holiday options online 60 3. Call up travel agent and speak 30 4. Travel agent prefers visit, sends brochures over 10 e-mail 60 5. Visit travel agent 6. See more brochures, discuss and finalize 60
(Time in minutes) Value add Waste
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Principle 1: Value
10 7. Travel agent sends tickets 120 8. Take a taxi to airport 9. Check-in, security screening 60 480 10.In-flight time 11.De-plane, wait for immigration checks 20 12.Book a taxi 60 13.Travel to sea side resort 14. Spend 3N/4D and return home
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Principle 1: Value
Lesson?
Value-add Time Waste TOTAL (in Minutes) 700 450 1150 61% 39%
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CORN FIELD
Corn Storage Caramel Plant Caramel Storage
BEET FIELD
Beet Storage
Sugar Plant
Sugar Storage
FIR FOREST
Paper Mill Carton Plant Carton Warehouse
BOTTLER
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Bottler warehouse
Reliance warehouse
Reliance store
Home
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Principle 3: Flow
Terminology
Batch Flow (or) one-piece flow
Focuses on specialization
Learning curve Productivity enhancement
Principle 3: Flow
Everyday example
Preparing letters before dispatch
Industry example
Automobile Assembly line manufacturing Insurance registration & processing
Key Metrics
Throughput i.e. output per hour (or) per day Takt time
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Principle 3: Flow
One operator can manage multiple machines A problem at one machine will be immediately highlighted. An operation is performed on one product at a time, the product moves in sequence
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Principle 3: Flow
Batch mode of production. Several products are produced and stocked. We cannot identify the defectives
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Principle 3: Flow
One piece flow: defects are easily identified and the process is stopped.
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Principle 4: Pull
Customer driven Customer can be a process B which follows process A Applicable to services as well as manufacturing
Example
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Principle 4: Pull
Assume 2 units of the size M in the blue striper t-shirt are sold out A new customer arrives: probability that he is a size M: 40-50% Stock out ? Lost sale?
Solution?
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Principle 4: Pull
Auto replenishment Set Minimum Base Qty: Example Size S: 2 pc, M: 4 pcs, L: 2 pc, XL: 2 pc Whenever stock in size M falls below 4, an auto replenishment order is generated by system. Warehouse receives order, dispatches to store. Whole process could take 24 hrs in case of a local Distribution Center Actively followed for brands: Arrow, Louis Philippe, etc
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Principle 5: Perfection
Improvement: incremental or radical (Kaikaku) Incremental improvements (Kaizen) are the key focus area in understanding lean management Example: for workers in an assembly line,
Provide automatic tools (remove manual fatigue) Provide rack at operator height (remove fatigue) Reduce walking to workstation time (remove nonvalue added activity Can enhance productivity or throughput by 5-10% at most
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Principle 5: Perfection
GLASS FLOAT (day 1) 800 km GLASS FABRICATION (day 47) 700 km
900 km
The brief: Kaikaku (radical improvement) or Kaizen (incremental improvement) Auto glass manufacturing & installation: an example of kaikaku
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Principle 5: Perfection
Car Assembly Plant
Float
Press
Encapsulate
With active collaboration, a single location based manufacturing was initiated Lead time of 2 days only, no non-value adding activity Distance traversed = 80 km
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Principle 5: Perfection
A pantaloons store Problem statement: increase SSPD (Sales Per Square foot per day) Options: buy brands or lease out space
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Principle 5: Perfection
An example of Kaikaku
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THANK YOU
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