Lean Manufacturing

Introduction

Disadvantages of Mass Production

Waste of Raw material.
Worker Alienation.
Inventory.
Machinery.
Waiting Time.
Gap between management and worker
Accounting practice came to encourage wasteful
manufacturing processes.

Challenges for Toyota

Small domestic market.
Wide diversity of vehicle designs.
Short of capital.
Competition.
Faced bankruptcy.
Company was in a major revolt.

Origin of Lean Production

Mass production would not work in Japan.
Taiichi Ohno of Toyota realized reducing set-up times
could substantially reduce the waste that occurred in
the mature implementations of the Ford production
system
Toyota company invented new principles to mass
production which leads to birth of lean production.
Lean manufacturing also known as Toyotism or Toyota
Production System.

Lean Manufacturing
Lean is about getting the needed parts, to the right
places, at right time in right quantity while flexible and
open to change.
Lean Thinking got its name from 1990s The machine
that changed world
Two Main Pillars of Foundation

Just in Time
Autonomation (Automation with human touch)

Lean Principles

VALUE : What the customer is willing to pay for (ie

processes which transform the product, eg : bending,
welding, etc).
VALUE STREAM : The sequence of processes to
deliver value to the customer. (The complete value stream
flows through the complete supply chain, from raw
materials to finished goods).
FLOW : Movement between value adding processes
without delay or interruption (Kanban)
PULL : Activating a process when the customer wants to
receive, not when the supplier wants to provide.

Lean Manufacturing Principles

It is a management philosophy focusing on reduction of

seven wastes.

By eliminating waste quality is improved, production time

and cost are reduced.
Pull processing
Perfect first time quality
Waste minimization
Continuous improvements
Flexibility
Maintaining relationship with suppliers.
Involvement of workers in innovation , rewards and benefits
on performance and development.

Seven Wastes
MUDA

An 8th waste
is the wasted
potential
of people

is the Japanese word for WASTE.

5
1

7
4

2
3

Overproduction

Seek it out and get rid!

Over Processing
Processing beyond
the standard
required by the
customer.

Non right
first time.
Repetition
or correction
of a process.

To produce sooner,faster
or in greater quantities
than customer demand.

Inventory

Raw material,
work in progress
or finished goods
which is not having
value added to it.

Rework

Transportation

3
5

Unnecessary movement of people

or parts between processes.

Motion

Waiting
People or parts
that wait for
a work cycle to
be completed.

Unnecessary movement
of people, parts or
machines within
a process.

Ten Kaizen Principles

Kaizen

Continuous Improvement
Get rid of all old assumptions.
Say "NO" to the business as usual.
Don't worry about being perfect - even if you only get it half
right " start NOW!
It does not cost money to do KAIZEN/Improve.
If something is wrong "Fix it NOW.
Good ideas flow when the going gets tough.
Get to the root cause.
Look for wisdom from Ten people rather than one.
Never stop doing KAIZEN.

The 5Ss: Steps for better Lean Mfg

Sort

- All unneeded tools, parts and supplies are removed

for the area

Set

in Order - A place for everything and everything is in

its place
Shine

- The area is cleaned as the work is performed

Standardize

- Cleaning and identification methods are

consistently applied
Sustain

- 5S is a habit and is continually improved

The 5 Ss

Typical Benefits of Lean

Results

Conclusions

In many ways, better than mass production

Higher Quality
Waste Reduction/Saving Money
Happier Customers

Lean has been immensely successful in certain

industries in Japan. It is much more capable of lower
volume and higher product diversity than mass
production.
It seems most prevalent in industries such as consumer
electronics and automobiles.

References

Womack, J. P., Jones, D. T., and Roos, D., (1990) The

machine that changed the world. Simon & Schuster Inc., 323.
Ohno, T., (1978) The Toyota production system: beyond
large-scale production. English Translation 1988,
Productivity Press, 4-6, 19-20, & 93-109.
Holweg, Matthias (2007). "The genealogy of lean
production". Journal of Operations Management 25 (2):
420437
Hanna, Julia. Bringing Lean Principles to Service
Industries. HBS Working Knowledge. October 22, 2007.
Krafcik, John F. (1988). "Triumph of the lean production
system". Sloan Management Review 30 (1): 4152.

1.

2.

3.

4.
5.
6.

List the disadvantages of Mass

production.
Identify the Lean Manufacturing
principles.
Identify the seven waste recognized
in Lean.
List the ten Kaizen principles.
List the 5Ss of Lean Manufacturing.
Explain five benefits of Lean
Manufacturing.