2. Lean manufacturing evolved out of lean
thinking which means removal of waste.
Waste specifically means any activity
which absorbs resources but creates no
value.
Lean manufacturing is a systematic
approach for identifying and eliminating
waste in operations through continuous
improvement.
3. Pre 20th century
20th century
Ford starts the ball rolling
Toyota develops lean thinking
4. “ A management philosophy which seeks to integrate
all organizational functions ( marketing, finance,
design, engineering, production, customer
service….) to focus on meeting customer needs and
organizational objectives.”
5. Just-in-time(JIT) is an inventory strategy
implemented to improve the return on investment
of a business by reducing in-process inventory and
its associated Carrying costs.
6. KAIZEN is Japanese word for improvement. Kaizen
was first implemented in several Japanese
businesses during the country's recovery after
World War II, including Toyota, and has since
spread to businesses throughout the world.
8. The term six sigma comes from the field of
statistics. Six Sigma approach has broadened to
include such things as programme and project
management tools and rules all of which are
complementary to lean manufacturing.
9. Kanban means "sign" in Japanese, and is a visual
reactive re-order point control system.
Another lean manufacturing tool, which is focused
on the objective of zero breakdowns.
There are two types of manufacturing system
simulation: computer and manual. This approach
enables operators to "buy-in" to the design of
the manufacturing system.
12. CASE STUDY
In 1986 Motorola invented Six Sigma, a quality and business
improvement methodology that is revolutionizing
industry.Two decades and two Malcolm Baldridge Awards
later, Motorola is still finding new ways to reinvent itself using
this techniques.
Dan Tegel, Global Director, Digital Six Sigma Business
Improvement Motorola
13. In 1980s US economy was facing
downtrend as companies like Motorola
were experiencing many problems.
Like increasing complaints about
warranty claims for defective products.
Motorola sold its TV division Quasar
to Matsushita, which is a Japanese
electronic company.
14. They found that Japanese management focused on
preventing errors at the source therefore
dramatically reduces the defects and the cost for
rectifying them.
In 1987 Galvin launched a long term quality
program called “The Six Sigma Quality Program”.
•By 1992, Motorola aimed to achieve the overall
quality level of 5.4 defects per million, a little less
than Six Sigma which is 3.4 defects per million
15. Upper management at the time generally thought
increasing quality meant increasing cost. The use of
Six Sigma proved the opposite was true. One of
Motorola’s most significant contributions was to
change the discussion of quality from the one where
quality levels were measured in percentages (parts
per hundred) to a discussion of parts per million.
During inspiration from Motorola, many other
corporates across the world began to adopt the Six
Sigma methodology and the concept began to be
loosely described as “ The Second Industrial
Revolution.”
