2. SUCCESS/FAILURE
BY MRS.B.RAMYA HARIGANESAN

3. INNOVATIVE PRATICES IN
GLOBAL BUSINESS ON 5TH
FEBRUARY 2013

4. INTRODUCTION
 WHAT IS LEAN MANUFACTURING?
LEAN PRODUCTION IS AN INTEGRATED SET OF
ACTIVITIES DESIGNED TO ACHIEVE PRODUCTION USING
MINIMAL INVENTORIES OF RAW MATERIALS, WORK IN
PROGRESS, AND FINISHED GOODS. LEAN IS ALSO BASED ON
THE LOGIC THAT NOTHING WILL BE PRODUCED UNTIL IT IS
NEEDED.

5. BREAK THROUGH MOMENTS OF LEAN
1500-flow
production
1780-concept of
interchangeable
parts
1799-automatic
production of
simple parts
1822-automatic
production of
complex parts
1860-high
volume
interchangeable
parts
1880-moving
dissembly line
1890-
Scientific
management
1902-invention
of jidoka
1908-truly
interchangeable
parts
1913-1914-
moving
asssembly line
with parts
fabrication
1924-quick
changeovers
1926-mass
production
1930-take time
1937-Just In
Time
1941-1945-
training within
industry
1950-kanban
and
supermarkets
1960-Lean
Management
1965-quality as
a key element
1973-mass
production
management
1979-first
academic
investigation
1983-direct
diffusion
1987-Lean
Introduced
1990-book
published to
show evidence
of the complete
system
1996-description
about lean
principles
1997-lean
enterprise
institute
promotes lean
principles
1998-value
stream maps
2005- lean
thinking to
2007- lean
as no.1

6. HISTORY AND EVOLUTION

7. LEAN GOALS AND STRATEGIES
 IMPROVE
QUALITY
 ELIMINATE
WASTE
 REDUCE TIME
 REDUCE TOTAL
COSTS
 LEAN AS A FIXED STATE/GOAL
 LEAN AS A CONTINOUS
CHANGE PROCESS
 LEAN AS A SET OF TOOLS OR
METHODS
 LEAN AS A PHILOSOPHY

8. MODEL OF LEAN
IMPLEMENTATION PROCESS

9. GLOBAL BUSINESS
Global business consists of
transactions that are devised and
carried out across national borders to
satisfy the objectives of individuals,
companies, and organizations.
Primary types of international business
are import export trade and foreign
direct investment (FDI).

10. DIFFERENT SECTORS

11. IMPACTS IN VARIOUS FIELDS

12. AUTOMOTIVE
INDUSTRY

13. GROWTH PROJECTION FOR INDIA’S
AUTO INDUSTRY

14. SUNDARAM CLAYTON’S EXPERIENCE
INTRODUCED TQM IN 1980’S WHICH IS PART
OF LEAN AND ENJOYED THE FOLLOWING
BENEFITS,
QUALITY CONTROL AND QUALITY
ASSURANCE
INCREASE ITS MARKET SHARE
INCREASE ITS PROFIT
PRODUCTIVITY OF WORKERS INCREASED
GAINED BUSINESS FROM OVERSEAS
AWARDED DEMING PRIZE FOR QUALITY IN
1998

15. IMPROVEMENT IN BAJAJ AUTO
SIGNIFICANT GAINS ENJOYED ARE,
WORKFORCE PRODUCTIVITY RAISED 10 TIMES
ABLE TO REDUCE INVENTORYFOR,
RAW MATERIALS FROM ONE WEEK TO
HALF A SHIFT STOCK
FINISHED GOODS FROM ONE MONTH TO
3 DAYS
NO OF REJECTED ITEMS WAS REDUCED FROM
20,000 PPM TO LESS THAN 2,000 PPM(Part Per
Million)

16. IT SECTOR

17. WIPRO LIMITED

18. AEROSPACE INDUSTRY

19. GOODRICH MARITIME(P)LIMITED
 IMPLEMENTED ON 1995
 IDENTIFIED AND IMPLEMENTED POLLUTION
PREVENTION AND PROCESS IMPROVEMENT
TECHNIQUES
 ELIMINATE WASTED WORKER MOVEMENT
 REDUCED CHEMICAL USE

20. PHARMACEUTICAL
INDUSTRY

21. PHARMACEUTICAL INDUSTRY
 PROCESS ANALYTICAL TECHNOLOGY
 QUALITY BY DESIGN ARE IMPLEMENTED
 IMPROVE PRODUCTIVITY
 SOME REGULATORY HURDLES ARE THERE TO
IMPLEMENT LEAN WHICH SHOULD BE AVOIDED
 CONSERVATIVE THINKING SHOULD BE THERE TO
INTRODUCED LEAN ALONG WITH RULES AND
REGULATIONS

22. MANUFACTURING SECTOR

23. SPICER AXLE DIVISION OF DANA
CORPORATION
INITIAL TUBE LINE
LAYOUT
NEW TUBE LINE CELL
LAYOUT

24. EFFECTS AFTER IMPLEMENTATION
 WIP DECREASED BY 97%
 PRODUCTION INCREASED 72%
 SCRAP WAS REDUCED BY 43%
 MACHINE UTILIZATION INCREASED BY 50%
 LABOUR COSTS WERE REDUCED BY 33%
 SIGMA LEVEL INCREASED FROM 2.6 TO 2.8

25. SERVICES SECTOR

26. Services Corporate Used Benefits enjoyed
Organize problem
solving groups
First Bank/Dallas
Standard Meat
Company
Miller Brewing
company
British Airways
 To improve services
 To implement new service practices
Upgrade House
Keeping
Mc Donald’s
Disney Land
Speedi-Lube
 Service processes work better
 Continuous improvement easier to develop
 Customer satisfaction
Upgrade Quality Mc Donald’s  Provides better services and produces quality
products and services consistently
Clarify process flows Federal Express
Corporation
 By changing the process it achieved first place in
air Freight.
Revise equipment and
process technologies
Speedi-Lube  To perform a wider range of operations without
reducing the operation room availability

27. Levelthefacilityload McDonald’s
Retailstores
 Synchroniesproductionwithdemandandgainedcustomer
satisfaction
Eliminateunnecessary
activities
Speedi-Lube  Reengineeringtoimprovetheprocessconsistency
 Toreducethetimetoperformthetasks
Throughwhichtheyincreasedtheirgoodwill.
Reorganizephysical
configuration
Speedi-Lube  Theyorganizemicroclinicsinsidethehospitalssothatthey
neednotroutepatientsalloverthehospitalsforvarioustests.
Introducedemandpull
scheduling
Wendy’srestaurants.  Cookswillputhamburgerontothegrill,whenthecaris
enteredintotherestaurantsothatitwillbereadyintheir
tableevenbeforeordering.Thisgainedmanycustomersto
therestaurants.

28. RISKS IN LEAN PRODUCTION
 HIGH COST OF IMPLEMENTATION
 LACK OF ACCEPTANCE BY EMPLOYEES
 HEAVY INVESTMENT NEEDED AT INITIAL STAGE

29. CONCLUSION
 TO BE SUCCESSFUL IN LEAN IMPLEMENTATION
MANAGERS SHOULD HAVE COMPLETE
UNDERSTANDING ABOUT LEAN.
LEARNING,
EFFICIENCY TO IMPLEMENT
AMBITIOUS FOR IMPROVEMENT
NEEDED FOR IMPLEMENTING LEAN.