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Lean Manufacturing



   nareshchawla@tqmbizschool.org



© PTU's Gian Jyoti School of TQM & Entrepreneurship   1
History & Evolution
                            Before 1850                Craft manufacturing
                     1850
                                                  Eli Whitney (Interchangeable parts)
             American
             Civil War                                Drawing conventions, Tolerances
                                                      Modern machine tool development




                                                      Fredrick Taylor (Standardized work, time study & work standards)
                     1900
                                                      Frank Gilbreth (Process charts, motion study)
           World War I
                                                      Henry Ford (Assembly lines, flow lines,
                                                      manufacturing strategy)


          World War II                                Deming & Juran (SPC, TQM)
                    1950
                                                      Eiji Toyoda, Taiichi Ohno, Shigeo Shingo
                                                      Toyota production system, JIT
                                                      Stockless production, World class manufacture




                     1990
                                                      Lean Manufacture

© PTU's Gian Jyoti School of TQM & Entrepreneurship                                                               2
Industry’s Concerns

                                                          Rising Cost of Input
Govt. Policies                                         (Raw material, Energy)
                                                               Competency of
Global
                                                                  employees
Competition
Accountability to
shareholders &
financers




                                        Above all SUSTAINABLE
                                        Improvement
 © PTU's Gian Jyoti School of TQM & Entrepreneurship                        3
Survival Kit

• Create precise customer value
   -       goods and services with higher quality
           and fewer defects
   –       with less human effort, less space, less
           capital, and less time than the traditional
           system of mass production.

• Remove ‘waste’
     – Consume ‘just enough’ recourses
     – Do more with less


© PTU's Gian Jyoti School of TQM & Entrepreneurship      4
Defining Value and Waste

• Defining value - an item or feature for
  which a customer willing to pay.
• Every thing else – waste
• Waste - activities that consume time,
  resource and/or space but do not add
  value.
• Lean - Production of product to meet
  demand on daily basis with minimum lead
  time & non value added activities
  eliminated or minimized
© PTU's Gian Jyoti School of TQM & Entrepreneurship   5
Focus on Waste




© PTU's Gian Jyoti School of TQM & Entrepreneurship   6
Value Added Activity


• Test for value added activities
    - Transforms product in some way
    - Customer sees & willing to pay
    - Will the customer know if eliminated




© PTU's Gian Jyoti School of TQM & Entrepreneurship   7
Seven Wastes
MUDA      is the Japanese word for WASTE.                                      An 8th waste
                                                                               is the wasted
                                                                                  potential
                       5       7       2                                          of people
                   1       4       3       6
                                                   Overproduction   To produce sooner,faster
                                                                     or in greater quantities
   Seek it out and get rid!
                                                                     than customer demand.
        Over Processing                                  1                Inventory
                Processing beyond
                the standard
                required by the
                                               7                    2              Raw material,
                                                                                  work in progress
                customer.                                                       or finished goods
                                                                                which is not having
                                                                                 value added to it.
                Rework
Non right                                                                       Waiting
first time.
Repetition                                 6                            3                   People or parts
or correction                                                                                 that wait for
of a process.                                                                               a work cycle to
                                                                                             be completed.


           Transportation                          5         4      Motion
                                                                                     Unnecessary movement
                                                                                      of people, parts or
                   Unnecessary movement of people                                       machines within
                   or parts between processes.                                            a process.

© PTU's Gian Jyoti School of TQM & Entrepreneurship                                                           8
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


© PTU's Gian Jyoti School of TQM & Entrepreneurship   9
Lean manufacturing is a systems
approach

 “Lean manufacturing is not a collection of best
 practices from which manufacturers can pick
 and choose. It is a production philosophy, a
 way of conceptualizing the manufacturing
 process from raw material to finished goods
 and    from   design   concept    to  customer
 satisfaction. Lean is truly a different way of
 thinking about manufacturing.”
                  - Running Today’s Factory: A Proven Strategy
                     for Lean Manufacturing, Charles Standard.


© PTU's Gian Jyoti School of TQM & Entrepreneurship          10
Comparison of lead time

     Business as Usual
         Customer                             Waste               Product
          Order                                                  Shipment

                                             Time
     Lean Manufacturing

          Customer                                     Product
           Order                                      Shipment
                                  Waste

                           Time (Shorter)


© PTU's Gian Jyoti School of TQM & Entrepreneurship                         11
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
© PTU's Gian Jyoti School of TQM & Entrepreneurship   12
Typical benefits of waste elimination
initiative




© PTU's Gian Jyoti School of TQM & Entrepreneurship   13
Lean Thinking, Lean Tools &
                   Supporting Strategies




© PTU's Gian Jyoti School of TQM & Entrepreneurship   14
Lean Tools to Lean Management

• Lean thinking
   “The basics of Lean Thinking is ‘the customer
   first”
• How do we do that?
   “By creating thinking people”
• And how do we do that?
   “By creating workplaces that are more human
   and encourage people to think”



© PTU's Gian Jyoti School of TQM & Entrepreneurship   15
Lean Thinking Principle #1
                ……‘Define Value’
                   ???

                                                       Quality
                                                      Flexibility
                                                       Service
                                                       Variety
                                                       ----VALUE----
                                                                    Variability
                                                                    Response-
                                                                      Time
                                                                      Cost


   The critical starting point for Lean Thinking is
    value as defined by the ultimate customer.

© PTU's Gian Jyoti School of TQM & Entrepreneurship                               16
Lean Thinking Principle #2
    ……‘Identify the Value Stream’
All the actions required to bring a specific
product or service through the three critical
transformation processes:
         •     Idea transformation: concept to market launch
         •     Information transformation: order-take through
               scheduling to delivery
         •     Physical transformation: raw materials to final
               customer

   Value-add
                Inventory      Waiting           Setup   Transportation     Waiting         Inspect
time (Hours)



                                                             Typical value-add to lead-time ratio ~ 1%
                            Waste
                            Value-add activity


 © PTU's Gian Jyoti School of TQM & Entrepreneurship                                                  17
Lean Thinking Principles #3,4,5
#3: Make the work flow
        • Every time the flow of work stops we
          consume resources that adds costs but
          generates no value
#4: Respond only when the customer pulls work
        • Overproduction is the worst form of waste
          as it generate all other waste types e.g.
          transportation, inventory, waiting,…..
#5: Strive to seek perfection
        • The real benchmark is zero waste, not
          what your competitors are doing!

© PTU's Gian Jyoti School of TQM & Entrepreneurship   18
Lean Tools & Supporting Strategies

 • 5S
 • Visual control
 • Team building
 • Problem solving
 • Standardised processes
 • Value stream mapping



© PTU's Gian Jyoti School of TQM & Entrepreneurship   19
Lean Tools & Supporting Strategies

 • Pull system
 • Kanban
 • Takt time – rate of customer
   demand
 • Manufacturing Cells
 • Heijunka
 • 5Ws & 1H


© PTU's Gian Jyoti School of TQM & Entrepreneurship   20
Lean Tools & Supporting Strategies


• Kaizen
• Total Productive Maintenance
• SMED (setup reduction)
• Poka-Yoke or mistake-proofing
• Cycle time reduction
• Andon – signalling system to stop line


© PTU's Gian Jyoti School of TQM & Entrepreneurship   21
5S
A method for organizing a workplace, and
keeping it organized.


Benefits
1.Improve safety
2.Decrease down time
3.Raise employee morale
4.Identify problems more quickly
5.Develop control through visibility
6.Establish convenient work practices

© PTU's Gian Jyoti School of TQM & Entrepreneurship   22
© PTU's Gian Jyoti School of TQM & Entrepreneurship   23
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
© PTU's Gian Jyoti School of TQM & Entrepreneurship   24
Visual controls show

• Where items belong?
• How many items belong there?
• What is the standard procedure for doing
  something?
• Status of work in process.
• Many other types of information critical to
  the flow of work activities.



© PTU's Gian Jyoti School of TQM & Entrepreneurship   25
Visual management

• Visual management maintains an orderly
  work environment.
• Employees have quicker and safer access to
  items that are needed.
• Colour-coding is often used to remind
  employees of where items belong.
• If order is not continually stressed, disorder
  will result and create an unfriendly work
  atmosphere.


© PTU's Gian Jyoti School of TQM & Entrepreneurship   26
Team Building

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


© PTU's Gian Jyoti School of TQM & Entrepreneurship                                     27
Problem Solving


Lean Tool                        Introduction                 Benefits
                       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           1. Leads to identify root
Problem
                       2. Problem Analysis                cause(s) of chronicle
Solving
                                                          problems
                       3. Generating possible
                          Solutions
                       4. Analyzing the Solutions
                       5. Selecting the best
                          Solution(s)
                       6. Sustaining the gains

© PTU's Gian Jyoti School of TQM & Entrepreneurship                            28
Standardized Process &
Value stream Mapping

  Lean Tool                Introduction                          Benefits
                                                      1. Better decision making
                                            2. Cost reduction and increase in
                        Standardization is     efficiency
                        the process of      3. Effective information sharing
 Standardized           developing and      4. Easier international transfer of
 Process                agreeing upon          marketing skills
                        technical
                                            5. Simplifying the coordination
                        standards.
                                               and control between
                                               subsidiaries and business
                                               functions
                                            1. Enable Visualizing the
                                               production process
                        A tool for guiding  2. Identifies waste in each step of
 Value stream           improvements by        the production process.
 Mapping                identifying waste & 3. Provides a plan for
                        isolated processes     implementing improvements to
                                               the production process to
                                               reduce costs.
© PTU's Gian Jyoti School of TQM & Entrepreneurship                               29
Pull system


 Lean Tool                  Introduction                       Benefits


                                                      1. Reduce lead times

                       A method of controlling 2. Minimize work in process
                       the flow of resources   3. optimize floor space usage
Pull system
                       by replacing only what
                       has been consumed       4. Simplify production signals
                                                  and improve on-time
                                                  delivery to customers.




© PTU's Gian Jyoti School of TQM & Entrepreneurship                             30
Kanban

 Lean Tool                   Introduction                       Benefits
                                                      1. Reduces waste and scrap
                                                      2. Provides flexibility in
                                                         production
                                                      3. Increases Output

                      A system of continuous     4. Reduce Preventing Over
                      supply of components,         Production
                      parts and supplies, such   5. Minimizing Wait Times and
Kanban
                      that workers have what        Logistics Costs
                      they need, where they
                      need it, when they need it 6. Reduce Stock Levels and
                                                    Overhead Costs
                                                      7. Save Resources by
                                                         Streamlining Production
                                                      8. Reduce Inventory Costs

© PTU's Gian Jyoti School of TQM & Entrepreneurship                                31
Takt time – Rate of customer
demand & Manufacturing Cells

 Lean Tool                  Introduction                        Benefits
                                                      1. Gives the rhythm at which
                                                         system should operate
                                                      2. Smooth production planning
                                                         & reduced interruptions in
                      The rate that a                    operations
Takt time –
                      completed product
rate of                                               3. System synchronization with
                      needs to be finished in
customer                                                 customer requirement
                      order to meet customer
demand                                                4. Enable pull scheduling
                      demand
                                                      5. No over production
                                                      6. No rush hours in work
                                                      7. WIP reduced
              Comprises a group of                    1. Flexible Operation
              equipment, that is                      2. Setup Time Reduction
Manufacturing
              dedicated to the
Cells                                                 3. Process Simplification
              complete production of
              a family of similar parts               4. Schedule Variety
© PTU's Gian Jyoti School of TQM & Entrepreneurship                                  32
Heijunka & 5Ws & 1 H

 Lean Tool                 Introduction                          Benefits

                                                      1. Stability of manpower
                      the leveling of                 2. Reduction of unnecessary
                      production by both                 overtime
Heijunka
                      volume and product              3. Reduction in inventory levels
                      mix
                                                      4. Reduction of stress levels in
                                                         the production area

                                                      1. Identify root cause

                      It is a method of               2. Identify current and future
                                                         needs for organizational
                      questioning that leads
                                                         improvement.
5Ws & 1 H             to the identification of
                      the root cause(s) of a          3. Develop a logical approach to
                      problem                            problem solving; using data
                                                         that already exists in most
                                                         operations.

© PTU's Gian Jyoti School of TQM & Entrepreneurship                                    33
Kaizen &
Total Productive Maintenance

 Lean Tool                   Introduction                       Benefits
                                                      1. Increased Space utilization
                                                      2. Increased product quality
                                                      3. Better Use of capital
Kaizen                Continuous Improvement
                                                      4. Communications
                                                      5. Production capacity
                                                      6. Employee retention
                      A maintenance
                      philosophy designed to          1. Improve Productivity
                      integrate equipment             2. Reduce breakdown leading
                      maintenance into the               to Zero breakdown concept
Total
                      manufacturing process.
Productive                                            3. Leads to multi-skilling of
                      The goal is to keep
Maintenance                                              workers
                      equipment producing only
                      good product, as fast as        4. Better safety
                      possible with no                5. Improve quality of products
                      unplanned downtime.

© PTU's Gian Jyoti School of TQM & Entrepreneurship                                   34
SMED (Set up reduction) & Poka-
yoke or mistake proofing

  Lean Tool                    Introduction                    Benefits
                                                      1. WIP and lot size reduction
                                                      2. Finished goods inventory
                         The practice of reducing        reduction
                         the time it takes to
SMED (Set up
                         change a line or machine 3. Improved equipment
reduction)                                           utilization/yield
                         from running one product
                         to the next              4. Increased profitability
                                                     without new capital
                                                     equipment purchase
                         A techniques that help
                         operators avoid mistakes 1. Better safety
Poka-yoke or             in their work caused by
mistake                  choosing the wrong part, 2. Reduce breakdown
proofing                 leaving out a part,
                         installing a part        3. Improve Productivity
                         backwards, etc.

© PTU's Gian Jyoti School of TQM & Entrepreneurship                             35
Cycle Time reduction


 Lean Tool                  Introduction                        Benefits


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




© PTU's Gian Jyoti School of TQM & Entrepreneurship                                  36
Andon–Signaling system to stop
line
Lean Tool                  Introduction                          Benefits
                                                      1. Bring immediate attention to
                                                         problems as they occur in the
                                                         manufacturing process.
                                                      2. Provide a simple and consistent
                                                         mechanism for communicating
                                                         information on the plant floor.
                    A Japanese term refers to
                    the warning lights on an    3. Encourage immediate reaction
                                                   to quality, down time, and
Andon –             assembly line that light up
                                                   safety problems.
Signaling           when a defect occurs.
system to           When the lights go on, the 4. Improve accountability of
stop line           assembly line is usually       operators by increasing their
                    stopped until the problem      responsibility for “good”
                    is diagnosed and corrected.    production and empowering
                                                   them to take action when
                                                   problems occur.
                                                      5. Improve the ability of
                                                         supervisors to quickly identify
                                                         and resolve manufacturing
                                                         issues.
© PTU's Gian Jyoti School of TQM & Entrepreneurship                                      37
Thank You




© PTU's Gian Jyoti School of TQM & Entrepreneurship   38

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Lean Manufacturing : Concept & Overview nkchawla@gmail.com

  • 1. Lean Manufacturing nareshchawla@tqmbizschool.org © PTU's Gian Jyoti School of TQM & Entrepreneurship 1
  • 2. History & Evolution Before 1850 Craft manufacturing 1850 Eli Whitney (Interchangeable parts) American Civil War Drawing conventions, Tolerances Modern machine tool development Fredrick Taylor (Standardized work, time study & work standards) 1900 Frank Gilbreth (Process charts, motion study) World War I Henry Ford (Assembly lines, flow lines, manufacturing strategy) World War II Deming & Juran (SPC, TQM) 1950 Eiji Toyoda, Taiichi Ohno, Shigeo Shingo Toyota production system, JIT Stockless production, World class manufacture 1990 Lean Manufacture © PTU's Gian Jyoti School of TQM & Entrepreneurship 2
  • 3. Industry’s Concerns Rising Cost of Input Govt. Policies (Raw material, Energy) Competency of Global employees Competition Accountability to shareholders & financers Above all SUSTAINABLE Improvement © PTU's Gian Jyoti School of TQM & Entrepreneurship 3
  • 4. Survival Kit • Create precise customer value - goods and services with higher quality and fewer defects – with less human effort, less space, less capital, and less time than the traditional system of mass production. • Remove ‘waste’ – Consume ‘just enough’ recourses – Do more with less © PTU's Gian Jyoti School of TQM & Entrepreneurship 4
  • 5. Defining Value and Waste • Defining value - an item or feature for which a customer willing to pay. • Every thing else – waste • Waste - activities that consume time, resource and/or space but do not add value. • Lean - Production of product to meet demand on daily basis with minimum lead time & non value added activities eliminated or minimized © PTU's Gian Jyoti School of TQM & Entrepreneurship 5
  • 6. Focus on Waste © PTU's Gian Jyoti School of TQM & Entrepreneurship 6
  • 7. Value Added Activity • Test for value added activities - Transforms product in some way - Customer sees & willing to pay - Will the customer know if eliminated © PTU's Gian Jyoti School of TQM & Entrepreneurship 7
  • 8. Seven Wastes MUDA is the Japanese word for WASTE. An 8th waste is the wasted potential 5 7 2 of people 1 4 3 6 Overproduction To produce sooner,faster or in greater quantities Seek it out and get rid! than customer demand. Over Processing 1 Inventory Processing beyond the standard required by the 7 2 Raw material, work in progress customer. or finished goods which is not having value added to it. Rework Non right Waiting first time. Repetition 6 3 People or parts or correction that wait for of a process. a work cycle to be completed. Transportation 5 4 Motion Unnecessary movement of people, parts or Unnecessary movement of people machines within or parts between processes. a process. © PTU's Gian Jyoti School of TQM & Entrepreneurship 8
  • 9. 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 © PTU's Gian Jyoti School of TQM & Entrepreneurship 9
  • 10. Lean manufacturing is a systems approach “Lean manufacturing is not a collection of best practices from which manufacturers can pick and choose. It is a production philosophy, a way of conceptualizing the manufacturing process from raw material to finished goods and from design concept to customer satisfaction. Lean is truly a different way of thinking about manufacturing.” - Running Today’s Factory: A Proven Strategy for Lean Manufacturing, Charles Standard. © PTU's Gian Jyoti School of TQM & Entrepreneurship 10
  • 11. Comparison of lead time Business as Usual Customer Waste Product Order Shipment Time Lean Manufacturing Customer Product Order Shipment Waste Time (Shorter) © PTU's Gian Jyoti School of TQM & Entrepreneurship 11
  • 12. 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 © PTU's Gian Jyoti School of TQM & Entrepreneurship 12
  • 13. Typical benefits of waste elimination initiative © PTU's Gian Jyoti School of TQM & Entrepreneurship 13
  • 14. Lean Thinking, Lean Tools & Supporting Strategies © PTU's Gian Jyoti School of TQM & Entrepreneurship 14
  • 15. Lean Tools to Lean Management • Lean thinking “The basics of Lean Thinking is ‘the customer first” • How do we do that? “By creating thinking people” • And how do we do that? “By creating workplaces that are more human and encourage people to think” © PTU's Gian Jyoti School of TQM & Entrepreneurship 15
  • 16. Lean Thinking Principle #1 ……‘Define Value’ ??? Quality Flexibility Service Variety ----VALUE---- Variability Response- Time Cost The critical starting point for Lean Thinking is value as defined by the ultimate customer. © PTU's Gian Jyoti School of TQM & Entrepreneurship 16
  • 17. Lean Thinking Principle #2 ……‘Identify the Value Stream’ All the actions required to bring a specific product or service through the three critical transformation processes: • Idea transformation: concept to market launch • Information transformation: order-take through scheduling to delivery • Physical transformation: raw materials to final customer Value-add Inventory Waiting Setup Transportation Waiting Inspect time (Hours) Typical value-add to lead-time ratio ~ 1% Waste Value-add activity © PTU's Gian Jyoti School of TQM & Entrepreneurship 17
  • 18. Lean Thinking Principles #3,4,5 #3: Make the work flow • Every time the flow of work stops we consume resources that adds costs but generates no value #4: Respond only when the customer pulls work • Overproduction is the worst form of waste as it generate all other waste types e.g. transportation, inventory, waiting,….. #5: Strive to seek perfection • The real benchmark is zero waste, not what your competitors are doing! © PTU's Gian Jyoti School of TQM & Entrepreneurship 18
  • 19. Lean Tools & Supporting Strategies • 5S • Visual control • Team building • Problem solving • Standardised processes • Value stream mapping © PTU's Gian Jyoti School of TQM & Entrepreneurship 19
  • 20. Lean Tools & Supporting Strategies • Pull system • Kanban • Takt time – rate of customer demand • Manufacturing Cells • Heijunka • 5Ws & 1H © PTU's Gian Jyoti School of TQM & Entrepreneurship 20
  • 21. Lean Tools & Supporting Strategies • Kaizen • Total Productive Maintenance • SMED (setup reduction) • Poka-Yoke or mistake-proofing • Cycle time reduction • Andon – signalling system to stop line © PTU's Gian Jyoti School of TQM & Entrepreneurship 21
  • 22. 5S A method for organizing a workplace, and keeping it organized. Benefits 1.Improve safety 2.Decrease down time 3.Raise employee morale 4.Identify problems more quickly 5.Develop control through visibility 6.Establish convenient work practices © PTU's Gian Jyoti School of TQM & Entrepreneurship 22
  • 23. © PTU's Gian Jyoti School of TQM & Entrepreneurship 23
  • 24. 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 © PTU's Gian Jyoti School of TQM & Entrepreneurship 24
  • 25. Visual controls show • Where items belong? • How many items belong there? • What is the standard procedure for doing something? • Status of work in process. • Many other types of information critical to the flow of work activities. © PTU's Gian Jyoti School of TQM & Entrepreneurship 25
  • 26. Visual management • Visual management maintains an orderly work environment. • Employees have quicker and safer access to items that are needed. • Colour-coding is often used to remind employees of where items belong. • If order is not continually stressed, disorder will result and create an unfriendly work atmosphere. © PTU's Gian Jyoti School of TQM & Entrepreneurship 26
  • 27. Team Building Lean Tool Introduction Benefits 1. Improves morale and leadership skills. 2. Finds the barriers that thwart creativity An active process by 3. Clearly defines objectives which a group of and goals individuals with a 4. Improves processes and Team common purpose are procedures Building focused and aligned to 5. Improves organizational achieve a specific task productivity or set of outcomes 6. Identifies a team’s strengths and weaknesses· 7. Improves the ability to problem solve © PTU's Gian Jyoti School of TQM & Entrepreneurship 27
  • 28. Problem Solving Lean Tool Introduction Benefits 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 1. Leads to identify root Problem 2. Problem Analysis cause(s) of chronicle Solving problems 3. Generating possible Solutions 4. Analyzing the Solutions 5. Selecting the best Solution(s) 6. Sustaining the gains © PTU's Gian Jyoti School of TQM & Entrepreneurship 28
  • 29. Standardized Process & Value stream Mapping Lean Tool Introduction Benefits 1. Better decision making 2. Cost reduction and increase in Standardization is efficiency the process of 3. Effective information sharing Standardized developing and 4. Easier international transfer of Process agreeing upon marketing skills technical 5. Simplifying the coordination standards. and control between subsidiaries and business functions 1. Enable Visualizing the production process A tool for guiding 2. Identifies waste in each step of Value stream improvements by the production process. Mapping identifying waste & 3. Provides a plan for isolated processes implementing improvements to the production process to reduce costs. © PTU's Gian Jyoti School of TQM & Entrepreneurship 29
  • 30. Pull system Lean Tool Introduction Benefits 1. Reduce lead times A method of controlling 2. Minimize work in process the flow of resources 3. optimize floor space usage Pull system by replacing only what has been consumed 4. Simplify production signals and improve on-time delivery to customers. © PTU's Gian Jyoti School of TQM & Entrepreneurship 30
  • 31. Kanban Lean Tool Introduction Benefits 1. Reduces waste and scrap 2. Provides flexibility in production 3. Increases Output A system of continuous 4. Reduce Preventing Over supply of components, Production parts and supplies, such 5. Minimizing Wait Times and Kanban that workers have what Logistics Costs they need, where they need it, when they need it 6. Reduce Stock Levels and Overhead Costs 7. Save Resources by Streamlining Production 8. Reduce Inventory Costs © PTU's Gian Jyoti School of TQM & Entrepreneurship 31
  • 32. Takt time – Rate of customer demand & Manufacturing Cells Lean Tool Introduction Benefits 1. Gives the rhythm at which system should operate 2. Smooth production planning & reduced interruptions in The rate that a operations Takt time – completed product rate of 3. System synchronization with needs to be finished in customer customer requirement order to meet customer demand 4. Enable pull scheduling demand 5. No over production 6. No rush hours in work 7. WIP reduced Comprises a group of 1. Flexible Operation equipment, that is 2. Setup Time Reduction Manufacturing dedicated to the Cells 3. Process Simplification complete production of a family of similar parts 4. Schedule Variety © PTU's Gian Jyoti School of TQM & Entrepreneurship 32
  • 33. Heijunka & 5Ws & 1 H Lean Tool Introduction Benefits 1. Stability of manpower the leveling of 2. Reduction of unnecessary production by both overtime Heijunka volume and product 3. Reduction in inventory levels mix 4. Reduction of stress levels in the production area 1. Identify root cause It is a method of 2. Identify current and future needs for organizational questioning that leads improvement. 5Ws & 1 H to the identification of the root cause(s) of a 3. Develop a logical approach to problem problem solving; using data that already exists in most operations. © PTU's Gian Jyoti School of TQM & Entrepreneurship 33
  • 34. Kaizen & Total Productive Maintenance Lean Tool Introduction Benefits 1. Increased Space utilization 2. Increased product quality 3. Better Use of capital Kaizen Continuous Improvement 4. Communications 5. Production capacity 6. Employee retention A maintenance philosophy designed to 1. Improve Productivity integrate equipment 2. Reduce breakdown leading maintenance into the to Zero breakdown concept Total manufacturing process. Productive 3. Leads to multi-skilling of The goal is to keep Maintenance workers equipment producing only good product, as fast as 4. Better safety possible with no 5. Improve quality of products unplanned downtime. © PTU's Gian Jyoti School of TQM & Entrepreneurship 34
  • 35. SMED (Set up reduction) & Poka- yoke or mistake proofing Lean Tool Introduction Benefits 1. WIP and lot size reduction 2. Finished goods inventory The practice of reducing reduction the time it takes to SMED (Set up change a line or machine 3. Improved equipment reduction) utilization/yield from running one product to the next 4. Increased profitability without new capital equipment purchase A techniques that help operators avoid mistakes 1. Better safety Poka-yoke or in their work caused by mistake choosing the wrong part, 2. Reduce breakdown proofing leaving out a part, installing a part 3. Improve Productivity backwards, etc. © PTU's Gian Jyoti School of TQM & Entrepreneurship 35
  • 36. Cycle Time reduction Lean Tool Introduction Benefits 1. Reduced costs Reduction of total time taken from start of the 2. Increased throughput production or service to 3. Streamlined processes Cycle Time its completion. It 4. Improved communications reduction includes processing time, move time, wait 5. Reduced process variability time, and inspection 6. Schedule integrity time 7. Improved on-time delivery © PTU's Gian Jyoti School of TQM & Entrepreneurship 36
  • 37. Andon–Signaling system to stop line Lean Tool Introduction Benefits 1. Bring immediate attention to problems as they occur in the manufacturing process. 2. Provide a simple and consistent mechanism for communicating information on the plant floor. A Japanese term refers to the warning lights on an 3. Encourage immediate reaction to quality, down time, and Andon – assembly line that light up safety problems. Signaling when a defect occurs. system to When the lights go on, the 4. Improve accountability of stop line assembly line is usually operators by increasing their stopped until the problem responsibility for “good” is diagnosed and corrected. production and empowering them to take action when problems occur. 5. Improve the ability of supervisors to quickly identify and resolve manufacturing issues. © PTU's Gian Jyoti School of TQM & Entrepreneurship 37
  • 38. Thank You © PTU's Gian Jyoti School of TQM & Entrepreneurship 38