LEAN MANUFCTURING

Presented To

Sir Muhammad Shahbaz

Presented by Jigs & Juveniles Groups MBA (IM) 6th Evening

Department of Industrial Management

WHAT IS LEAN MANUFACTURING

1.

Lean Manufacturing A way to eliminate waste and improve efficiency in a manufacturing environment Lean focuses on flow, the value stream and eliminating Muda, the Japanese word for waste Lean manufacturing is the production of goods using less of everything compared to traditional mass production:

2.

3.

1.

Less waste, human effort, manufacturing space, investment in tools, inventory, and engineering time to develop a new product

LEAN IS A
Way of thinking Focus on adding value Focus on removing waste from processes Culture in which everyone in the organization continuously improves

HISTORY
Have you heard of Mass Production? This method of production was brought to the forefront with Henry Fords invention of the automobile.

Skilled Craftsmanship

Mass Production

Lean Manufacturing

1900s

1930s

1960s

TODAY

CRAFT MANUFACTURING
Late 1800s

Car built on blocks in the barn as workers walked around the car. Built by craftsmen with pride
Components hand-crafted, hand-fitted

Excellent quality
Very expensive

Few produced

MASS MANUFACTURING

Assembly line - Henry Ford 1920s Low skilled labor, simplistic jobs, No pride in work Lower quality Affordably priced for the average family

LEAN MANUFACTURING

Cells or flexible assembly lines Broader jobs, highly skilled workers, proud of product Interchangeable parts, even more variety Excellent quality mandatory Costs being decreased through process improvements. Global markets and competition

MAIN FEATURES OF LEAN MANUFACTURING

Greater Product Variety Fast Response (Flexibility) Stable Production Schedules Supply Chain Integration Demand Management Broader jobs, highly skilled workers, proud of product Excellent quality Reduced costs Ability to meet global market & competition

ELIMINATE WASTE
1.

2.

3.

4.

Defects: A failing or flaw that may allow the affected thing to function, however imperfectly Overproduction: Production of something in excess of what is required Transportation: Movement of people, information or paperwork that does not add value to the product or service. Waiting: A period of time delay spent while expecting something to happen or getting ready for something to happen

ELIMINATE WASTE
5.

6.

7.

Inventory: Stock that an organization has on hand beyond what is considered necessary. Non-Value-Added processing: Effort that adds no value to the product or service from the customers viewpoint. Under Utilizing People: The waste of not using people to the best of their unique abilities

ELIMINATING WASTE
7 steps

1. Reduce lead time

2. Cut operations costs 3. Improve business performance visibility 4. Speed time to market 5. Exceed customer expectations

6. Streamline outsourcing processes

7. Manage global operations

BENEFITS OF WASTE ELIMINATION INITIATIVE

LEAN MANUFACTURING ADVANTAGES

Increased overall productivity Reduced amount of floor space required Reduced manufacturing lead time Improved flexibility to react to changes Improved quality Total manufacturing time saved Less scrape Low inventory Better labor utilization Safety of operation

DISADVANTAGES:

Rapid model replacement Difficulty involved with changing processes to implement lean principals Long term commitment required Very risky process Overlapping and compressed development phases High levels of supplier engineering Design team and manager continuity Strict engineering schedules and work discipline Good communication mechanisms and skills Skillful use of computer-aided design tools Continuous incremental product improvement

THE ROLE OF MANAGEMENT

Responsible for culture of mutual trust Serve as coaches & facilitators Support culture with appropriate incentive system including non-monetary Responsible for developing workers Provide multi-functional training Facilitate teamwork

LEAN MANUFACTURING TOOLS

Team building Problem solving Standardized process Value stream mapping Pull system Kanban Takt time rate of customer demand Manufacturing cell Heijunka 5w & I H Kaizen Total Productive Maintenance SMED Poka-yoke or mistake proofing Cycle Time reduction

TEAM BUILDING
An active process by which a group of individuals with a common purpose are focused and aligned to achieve a specific task or set of outcomes Benefits 1. Improves morale and leadership skills. 2. Finds the barriers that thwart creativity 3. Clearly defines objectives and goals 4. Improves processes and procedures 5. Improves organizational productivity 6. Identifies a teams strengths and weaknesses 7. Improves the ability to problem solve

PROBLEM SOLVING
The Problem Solving is a systematic approach with a sequence of sections that fit together depending on the type of problem to be solved. These are: 1. Problem Definition 2. Problem Analysis 3. Generating possible Solutions 4. Analyzing the Solutions 5. Selecting the best Solution(s) 6. Sustaining the gains

Leads to identify root cause(s) of chronicle problems

STANDARDIZED PROCESS
Standardization is the process of developing and agreeing upon technical standards. 1.Better decision making 2.Cost reduction and increase in efficiency 3.Effective information sharing 4.Easier international transfer of marketing skills 5.Simplifying the coordination and control between subsidiaries and business functions

VALUE STREAM MAPPING

A tool for guiding improvements by identifying waste & isolated processes 1.Enable Visualizing the production process 2.Identifies waste in each step of the production process. 3.Provides a plan for implementing improvements to the production process to reduce costs.

PULL SYSTEM
A method of controlling the flow of resources by replacing only what has been consumed 1.Reduce lead times

2.Minimize work in process

3.optimize floor space usage 4.Simplify production signals and improve on-time delivery to customers.

KANBAN
A system of continuous supply of components, parts and supplies, such that workers have what they need, where they need it, when they need it Benefits 1. Reduces waste and scrap 2. Provides flexibility in production 3. Increases Output 4. Reduce Preventing Over Production 5. Minimizing Wait Times and Logistics Costs 6. Reduce Stock Levels and Overhead Costs

7. Save Resources by Streamlining Production

8. Reduce Inventory Costs

TAKT TIME RATE OF CUSTOMER DEMAND

The rate that a completed product needs to be finished in order to meet customer demand Benefits 1. Gives the rhythm at which system should operate 2. Smooth production planning & reduced interruptions in operations 3. System synchronization with customer requirement 4. Enable pull scheduling 5. No over production 6. No rush hours in work 7. WIP reduced

MANUFACTURING CELLS
Comprises a group of equipment, that is dedicated to the complete production of a family of similar parts Benefits 1.Flexible Operation 2.Setup Time Reduction

3.Process Simplification
4.Schedule Variety

HEIJUNKA
the leveling of production by both volume and product mix Benefits 1.Stability of manpower 2.Reduction of unnecessary overtime 3.Reduction in inventory levels

4.Reduction of stress levels in the production area

5WS & 1 H
the leveling of production by both volume and product mix Benefits 1.Identify root cause

2.Identify current and future needs for organizational improvement. 3.Develop a logical approach to problem solving; using data that already exists in most operations.

VISUAL CONTROL
Any communication device used in the work environment that tells us at a glance how work should be done and whether it is deviating from the standard Benefits 1. Increase productivity 2. Improve quality 3. On-time delivery 4. Reduce inventory 5. Increase equipment reliability 6. Boosts bottom-line profits

KAIZEN
Continuous Improvement 1.Increased Space utilization 2.Increased product quality 3.Better Use of capital 4.Communications 5.Production capacity 6.Employee retention

KAIZEN (CONTINUOUS IMPROVEMENT)

TOTAL PRODUCTIVE MAINTENANCE

A maintenance philosophy designed to integrate equipment maintenance into the manufacturing process. The goal is to keep equipment producing only good product, as fast as possible with no unplanned downtime. Benefits 1.Improve Productivity 2.Reduce breakdown leading to Zero breakdown concept 3.Leads to multi-skilling of workers 4.Better safety 5.Improve quality of produ

SMED (SET UP REDUCTION)

The practice of reducing the time it takes to change a line or machine from running one product to the next Benefits 1.WIP and lot size reduction 2.Finished goods inventory reduction 3.Improved equipment utilization/yield

4.Increased profitability without new capital equipment purchase

POKA-YOKE OR MISTAKE PROOFING A techniques that help operators avoid mistakes in their work caused by choosing the wrong part, leaving out a part, installing a part backwards, etc. 1.Better safety
2.Reduce breakdown 3.Improve Productivity

CYCLE TIME REDUCTION

Reduction of total time taken from start of the production or service to its completion. It includes processing time, move time, wait time, and inspection time 1. Reduced costs 2. Increased throughput 3. Streamlined processes 4. Improved communications 5. Reduced process variability 6. Schedule integrity 7. Improved on-time delivery

JIT
Often termed Lean Systems All waste must be eliminated- non value items Broad view that entire organization must focus on the same goal - serving customers JIT is built on simplicity- the simpler the better Focuses on improving every operationContinuous improvement - Kaizen Visibility all problems must be visible to be identified and solved Flexibility to produce different models/features

SUPPLIER RELATIONSHIPS AND JIT

Use single-source suppliers when possible

Build long-term relationships

Work together to certify processes

Co-locate facilities to reduce transport if possible

Stabilize delivery schedules Share cost & other information Early involvement during new product designs

THREE ELEMENTS OF JIT

BENEFITS OF JIT
Reduction in inventories Improved quality Shorter lead times Lower production costs Increased productivity Increased machine utilization Greater flexibility

WHAT IS POKA-YOKE?

This is known as MISTAKE-PROOFING

From Japanese: Yokeru (avoid) Poka (inadvertent errors)

5S
Seiri (sort, necessary items) Seiton (set-in-order, efficient placement) Seison (sweep, cleanliness) Seiketsu (standardize, cont. improvement) Shitsuke (sustain, discipline)

Before 5 S

After 5 S

5S
A method for organizing a workplace, and keeping it organized. Benefits
1.

Improve safety

2.
3. 4. 5. 6.

Decrease down time

Raise employee morale

Identify problems more quickly

Develop control through visibility Establish convenient work practices

BENEFITS OF LEAN PRODUCTION

Reduced inventory Improved quality Lower costs Reduced space requirements Shorter lead time Increased productivity Greater flexibility

Better relations with suppliers Simplified scheduling and control activities Increased capacity Better use of human resources More product variety