Lean Manufacturing

Introduction to Lean Manufacturing

• Lean manufacturing
is a methodology that focuses on minimizing
waste within manufacturing systems while
simultaneously maximizing productivity
Or
Is a process that focuses on eliminating waste
to reduce the costs of production in order to
generate more profit.
Introduction to Lean Manufacturing

Under lean manufacturing avoiding

unnecessary costs is more profitable than
increasing sales.

Other names for Lean Manufacturing

Lean
Lean Production
 Introduction to Lean Manufacturing

The system was first introduced by The Toyota

Production System and still used up to date with
companies like Nike and Caterpillar Inc.

Background of lean manufacturing

In 1990 James Womack wrote a book called “The
Machine That Changed The World” that came up
with the idea of Lean Manufacturing in Western world
Introduction to Lean Manufacturing
This book was based on Massachusetts Institute
of Technology (MIT) study of the future of the
automobile that detailed Toyota's lean production
system exploring the difference between mass
production and lean production in automobile industry
By that time, the lean principles have profoundly
influenced manufacturing concepts throughout the world
as well as industries outside of manufacturing including
healthcare, software development and service industries.
 Introduction to Lean Manufacturing

Waste is defined as an activity that does not add

value to the product.
Through the elimination of waste along the
entire manufacturing process, companies are able to
 create processes that need less human effort,
 less space,
 less capital
 less time to produce high-quality,
Introduction to Lean Manufacturing

• In order to gain a competitive edge, many

companies have adopted lean manufacturing
as a keystone for success in today’s global
market
• The idea of lean manufacturing can be
implemented through the application of lean
manufacturing principles
Principles of lean
manufacturing
 Principles of lean manufacturing

The lean manufacturing principles were formed in

Japan by Eiji Toyoda who collaborated with Taiichi Ōno
to develop a series of lean manufacturing tools in an
effort to improve sales and increase profit of Toyota’s
manufacturing processes.
These tools gained prominence in James Womack’s
and Daniel Jones’ book, “Lean Thinking” (Free Press,
2003), where the authors identified the five principles.
 
 Principles of lean manufacturing

1. Identify value
This step requires businesses to define what
customers value and how their products or services
meet those values. In this case, value requires:
• Designing products to meet the needs of
customers
• Removing features that do not specifically meet
those needs
Principles of lean manufacturing
• By designing products to meet specific needs,
businesses will eliminate wasteful steps that
may have been required for unwanted
features.
Principles of lean manufacturing
2. Map the value stream
A value stream is the complete life-cycle of a product,
which includes the product’s design, the customers’ use
of the product and the disposal of the product.
This step requires companies to identify and map the
product’s value stream. This principle can be used to
visually map out the entire product flow.
Once the value stream is mapped, it will be easier to
find and minimize steps that do not add value.
Principles of lean manufacturing
3. Create Flow
Efficient product flow requires items to move from
production to shipping without interruption and can be
achieved by strategically organizing the work floor.
Every factor, from people and equipment to materials
and shipping, must be taken into account to ensure
products seamlessly move through the production
process.
A well-organized work floor will result in reduced
production time, inventory size and material handling.
Principles of lean manufacturing
4. Establish pull system
This means you only start new work when there is
demand for it. Lean manufacturing uses a pull system
instead of a push system.

Push system, starts with purchasing raw materials

and proceeds by pushing material through the
manufacturing process, even when there isn't an order.
Principles of lean manufacturing
Lean manufacturing is based on a pull system,
meaning, pulls a customer's order from the shipping
department. That is; nothing is bought or made until
there is demand. Pull relies on flexibility and
communication. Using a pull system, businesses will:
• Increase output
• Reduce inventories
• Eliminate overproduction and underproduction
• Eliminate errors caused by having too much work in
progress
Principles of lean manufacturing
5. Seek perfection
Seeking perfection, requires companies to
continuously improve their practices and often
requires a shift in the workplace culture.
Focuses on making small, incremental changes and
requires every worker, from the corner office to the
production floor, to help improve business practices.
Over time will result in increased efficiency, lower
costs, greater productivity, and better quality products
 Types of Wastes in
Lean Manufacturing
 Types of Wastes in Lean Manufacturing

Lean manufacturing is a Japanese method

focused on 3M’s. These Ms are:
• muda, the Japanese word for waste,
• mura, the Japanese word for inconsistency,
• muri, the Japanese word for unreasonableness.
Muda specifically focuses on activities to be
eliminated. Waste is broadly defined as anything
that adds cost to the product without adding value
to it.
 Types of Wastes in Lean Manufacturing

Below are the wastes and lean tools that can be

implemented to counteract waste.

a) Waiting Waste
Time wastage due to waiting may be viewed in three
distinct categories, divided as follows
• Men waiting for materials
• Material waiting for work
• Machine waiting for materials
 Types of Wastes in Lean Manufacturing

Countermeasures
• Design processes so that flow is continuous
and there are minimal (or no) buffers between
steps in production.
• Developing flexible multi-skilled workers who
can quickly adjust in the work demand.
 Types of Wastes in Lean Manufacturing

b) Motion Waste
Any unnecessary movement of people that does not add
value to the product or service. This may include walking,
lifting, bending, stretching and moving in searching for
tools.
Countermeasures
 Making sure the working place is well organized.
 Placing equipment near the production location.
 Putting materials at an ergonomic position to reduce
stretching and straining.
 Types of Wastes in Lean Manufacturing

c) Over processing waste

Using more energy or activity than is needed to produce a product.
Taking example of multi inspection, multi counting and redundant
documentation
Countermeasure;
• Ensure that the rate of manufacturing between stations are even
• Reducing setup time enables manufacturing small batches ore
single piece flow
• Using a pull system can control amount of work in progress
For example instead of completing 100-percent inspections on parts
that never fail, reduce the number of parts inspected to greatly
reduce processing time
 Types of Wastes in Lean Manufacturing

d) Inventory
Inventories can be; raw materials, work in
progress and finished goods

Countermeasures:
• Purchasing raw materials only when needed and in the
quantity needed
• Reducing buffers between production steps
• Creating queue system to prevent overproduction
 Types of Wastes in Lean Manufacturing

e) Transportation waste
Movement of material from one place to
another does not add value to a product thus it’s
a waste.
Countermeasures: creating a layout that
product flows from onepoint to another and
effective planning such that departments or
machines that work together are placed in one
place
 Types of Wastes in Lean Manufacturing

f) Overproduction waste
This occurs when manufacturing a product or an
element of a product before its being asked for or
required. Rather than producing products just when they
are needed under the “just in time” philosophy.
Countermeasure.
• Pacing material flow through production to match
customer demand and is more cost efficient in the long
run
• Using a pull system in production
 Types of Wastes in Lean Manufacturing

g) Fixing defects and mistakes waste

Time spent on repairing or reworking material or information.
Defect occurs when the product is not fit for use. This result in
either reworking or scraping the product.
Countermeasure:
• Look for the most frequent defect and focus on it
• Design a process to detect abnormalities and do not pass any
defective items along the production process
• Redesign the process so that does not lead to defect
• Use a standardized work to ensure a consistency manufacturing
process that is defect free.
Advantages of lean
manufacturing
 Advantages of lean manufacturing

i) Increases product quality

According to the first principle of lean manufacturing that
is, identify the value from the consumer perception. Hence
the products will be manufactured according to the quality
required by the consumer
ii) Improved lead time
As manufacturing processes are streamlined, production
can better respond to fluctuations in demand and other
market variables, resulting in fewer delays and better
lead(production) time. Because all the waste that lead to
delay are removed
 Advantages of lean manufacturing
iii) Sustainability of the business
Less waste and better adaptability makes for a
business that’s better equipped to thrive well into the
future.
iv) Employee satisfaction
If there is unnecessary works, it lowers workers
morale. Thus through lean manufacturing workers
know when their daily routine is packed with
unnecessary works and hence it will not only boost up
productivity, but also employee satisfaction.
 Advantages of lean manufacturing

v) Increases profits
And, of course, more productivity with less
waste and better quality ultimately makes for
a more profitable company.
Disadvantages of lean
manufacturing
 Disadvantages of lean manufacturing

i) Equipment Failure
Lean has very little room for error. Equipment or labor
failure can lead to major inconsistencies within lean and
can make the entire operation fall behind.
In other mass production facilities, employees could
just move over to another machine if one went out. In
lean there is no many other places for employees to move
to because everything within the operation is being
utilized.
 Disadvantages of lean manufacturing

ii) The problem of inventory

Traditionally in lean management implementation,
low amount of stock are kept on hand to decrease
carrying cost. This causes a company to depend on
suppliers and hope they are able to make the adjustment
to deriver goods quickly and efficiently. I f there is any
disruption of inventory processes then it can delay the
process.
 Disadvantages of lean manufacturing

iii) Difficult to change over

Employees may not always be welcoming to lean
management practices. The implementation of this style
will take a lot of patience and a complete overhaul to
work processes. This may not be something longer
tenured workers will be confortable with.
Therefor leaders have to be transparent about all
changes that will happen in the company.
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