4. LEAN
MANAGEMENT
It is renowned for its focus on
reduction of the original process
wastes in order to improve overall
customer value.
Goal is to eliminate the waste from
the process.
Lean Management or "Lean" is the
optimal way of managing through the
removal of waste and implementing flow.
More value with less work
5. M Make what the customer needs, when it is needed, in the right amount
M
S
B
R
P
Minimize inventories
Separate machine work from human work and fully
utilize both
Build quality into the process and prevent errors from happening
Reduce lead-times to allow for rapid, flexible scheduling
Produce a high mix of low volume products efficiently
6. Main goals of Toyota Production System (TPS) are to eliminate:
Overburden or stress in the system (muri)
Inconsistency (mura)
Waste (muda)
Goal is to design a process that runs smoothly, can flex without stress, and
eliminates waste.
Using TPS, Toyota was able to reduce lead-time and cost, while improving
quality.
LEAN PRODUCTION - TPS
7. Process-1 V
W
Process-2 V
W
Process-3 V
W
Process-4
W
ProductVInput
V: Value added product/services
W: Wasteful product / practices/services that does not add
value
MUDA is the Waste, work that does not add any value to the
product
8. Economic Value of Waste
• Every business activity absorbs
resources and every resource has a
cost
• Every waste has a cost, and that is
direct loss to the company.
• Economic value of waste in a process
industry are in the range of 10 -35%
of annual turnover
9. Unnecessary Motions
Waiting for work and materials
Transportations
Overproduction
Processing
Inventories / Unnecessary WIP
Corrective operation
7 Seven MUDA [Wastes]
11. MUDA of Motion
Movement that does not add value
• Searching for files
• Extra clicks or key strokes
• Clearing away files on the desk
• Gathering information
• Looking through manuals and catalogs
• Handling paperwork
12.
13.
14. MUDA of Waiting
Idle time created when material, information,
people or equipment is not ready.
Waiting for:
• Faxes
• The system to come back
• Copier machine
• Customer response
• A handed off file to come back
15. MUDA of Transport
I am more expensive
since raw material is
coming from a far
off place.
16. MUDA of Transport
Movement of information that does not add value:
• Carrying documents to and fro from
shared equipment
• Taking files to another person
• Going to get signatures
18. MUDA of Over
production
Generating more information
than the customer needs right
now:
• More information than the
customer needs
• Creating reports no one reads
• Making extra copies
• More information than the
next process needs
19. MUDA of Process
1. Using more expensive
equipment or tools where
simpler ones would suffice.
2. Having meetings that are not
needed.
3. Having people at meetings
that are not required.
4. Agenda points, not to be
included;
20. MUDA of Process
Efforts that create no value from the customer
viewpoint:
• Creating reports
• Repeated manual entry of data
• Excessive paperwork
• Duplicity of work
• Use of outdated standard forms
• Use of inappropriate software
21.
22. More information, project, material on
hand than the customer needs right
now:
• Files waiting to be worked on
• Open projects
• Office supplies
• E-mails waiting to be read
• Unused records in the database
23.
24. Work that contains errors, rework, mistakes or lacks
something necessary:
• Data entry error
• Pricing error
• Missing information
• Missed specifications
• Lost records
• Rework
• Rescheduling meetings
25. Find the Root Cause
- Asking ‘WHY’ for 5 times
- 5W 1H
How to eliminate?
26. The Five Ws and The One H
Who What Where
1. Who does it?
2. Who is doing it?
3. Who should be doing it?
4. Who else can do it?
5. Who else should do it?
6. Who is doing 3-Mus?
1. What to do?
2. What is being done?
3. What should be done?
4. What else can be done?
5. What else should be done?
6. What 3-MUs are being
done?
1. Where to do it?
2. Where is it done?
3. Where should it be done?
4. Where else can it be done?
5. Where else should it be
done ?
6. Where are 3- MU s being
done?
5 W 1 H of MUDA
27. MURI
Muri is the overburden on equipment,
facilities & people caused by mura and
muda.
Muri is pushing a machine
or person beyond natural
limits.
Overburdening people results in
safety and quality problems.
Overburdening equipment
causes breakdowns and
defects
28.
29.
30. Identifying MURI
MURI = Physical Strain, Overburden
Placing of excessive demands on
People
M/Cs, Production equipment.
Muri is caused by the respect of unsuited standards
Bend to work?
Push hard?
Lift weight?
Repeat tiring action?
Wasteful walk?
31. MURA
Mura is the variation in the operation of a process not
caused by the end customer.
It is the unevenness, unbalanced work on machines.
Mura results when employees are told to work like crazy
early in the morning only to stand around and do nothing
late in the day.
Result: Excess capacity allocation and increased cost.
32. Eliminating MURA
MURA is
Inconsistent or
Irregular or
Uneven use of person or M/c.
Happens sometimes?
Happens some places
Happens to some people
One side is ok; the other side is not ok