lean and agile in manufacturing -operation management

1. LEAN AND AGILE
MANUFACTURING SYSTEM

2. MEANING OF LEAN MANUFACTURING
It is a manufacturing system based on a new system
design. It is enabled companies to achieve continual
gains in productivity(low unit costs), which satisfy
customer expectations for superior quality and
prompt delivery.
ex- TOYOTA PRODUCTION SYSTEM- BETTER,
FASTER AND LESS EXPENSIVE

3. Doing more with less by employing i.e lean thinking. Lean
Manufacturing involves never ending efforts to
eliminate or reduce “muda”(japanese for waste or any
activity that consumes resources without adding value)
in design, manufacturing, distribution, and customer
service processes.
- developed by the Toyota executive Taiichi Ohno(1912-
90)during post second world war reconstruction period
in Japan, and popularized by James P Womack and
Daniel T jones in their 1996 book calledLean thinking.

4. Lean manufacturing is a philosophy that
considers the expenditure of resources other than
the direct creation of value for the end customer to
be wasteful.
Thus its targeted for elimination.
Working from the perspective of the client who
consumes a product or service.

5. DEFINITION
Lean manufacturing is a business model and
collection of tactical methods that emphasize
eliminating non-value added activities (waste) while
delivering quality products on time at least cost with
greater efficiency.

6. Principles of Lean:
1. Eliminate Waste
2. Build Quality In
3. Create Knowledge
4. Defer Commitment
5. Deliver Fast
6. Optimize the Whole

7. ASSUMPTIONS
People value the visual effect of flow
Waste is the main restriction to profitability
Process interaction effects will be resolved through
value stream refinement.
Many small improvements in rapid succession are
more beneficial than analytical study.

8. Steps in lean production
1> Identify Value- ( At a specific price, at a specific time)
2>Identify the value stream( entire sequence of activities is called
value stream)
3> Improve Flow
4> Allow Customer Pull
At this stage in the process, lean manufacturing and just in time are
identical. The next step in leaning manufacturing is to only
manufacture what the customer orders or requests so that customer
demand or "pull" drives company production. This is similar to just
in time in that new parts are ordered based on short-term
requirements, but the driving force behind the efficiency of the
process is customer value rather than cost reduction. As the
company learns more about what customers really want, it repeats
the process over and over again with the goal of creating the perfect
product at the perfect price.
5> Work towards Perfection

9. ADVANTAGES
Reduction of Manufacturing Time
Help to keep Business Going
Help to Reduce Floor Space
Increase Manufacturing Productivity
Help to boost Profits
Help to achieve good customer Relations
Cultures are standardised
Makes the difference between Management and
Personnel

10. TOOLS AND TECHNIQUES
 Cellular Manufacturing
It is a that produces families of parts within a single line
or cell of machines operated by machinists who work
only within the line or cell. A cell is a small scale,
clearly-defined production unit within a larger
factory.
 Continuous Improvement
 5 S system
a-Sort
b-STRAIGHTEN
c- SCRUB
d- SPREAD
e- STANDARDIZATION

12. 5S Seiri; Sort, Clearing, Classify
5S Seiton; Straighten, Simplify, Set in order,
Configure
5S Seiso; Sweep, shine, Scrub, Clean and
Check
5S Seiketsu; Standardize, stabilize, Conformity
5S Shitsuke; Sustain, self discipline, custom and
practice

13.  Sort is the first step in 5S, it refers to the sorting of
the clutter from the other items within the work area
that are actually needed. This stage requires the team
to remove all items that clearly do not belong in the
working area and only leave those that are required
for the processes in question

14.  5S Seiton or Straighten is the process of taking the
required items that are remaining after the
removal of clutter and arranging them in an
efficient manner through the use of ergonomic
principles and ensuring that every item “has a
place and that everything is in its place.
 5S Seiso or Sweep is the thorough cleaning of the
area, tools, machines and other equipment to
ensure that everything is returned to a “nearly
new” status. This will ensure that any non-
conformity stands out; such as an oil leak from a
machine onto a bright, newly painted clean floor.

15. 5S Seiketsu or standardize is the process of
ensuring that what we have done within the first
three stages of 5S become standardized; that is we
ensure that we have common standards and ways
of working. Standard work is one of the most
important principles of Lean manufacturing.
The final stage is 5S Shitsuke or sustain, ensuring
that the company continue to continually improve
using the previous stages of 5S, maintain
housekeeping, and conduct audits and so forth. 5S
should become part of the culture of the business
and the responsibility of everyone in the
organization.

18. Just-in-time :
Lean manufacturing and "just in time," or JIT, are
often treated as two different phrases for the same
thing, but they are not identical concepts. Just-in-time
manufacturing is focused on efficiency, while lean
manufacturing is focused on using efficiency to add
value for the customer. Just-in-time manufacturing can
be practiced on its own or as one step in the lean
manufacturing process.
Production smoothing
Total quality management
Total productive maintenance
Other waste reduction techniques
zero defects
setup reduction
line balancing

19. Agile manufacturing
Agile manufacturing is an approach to manufacturing
which is focused on meeting the needs of customers
while maintain high standards of quality and
controlling the overall cost involved in the
production of particular product.
Agile manufacturing is seen as the next step
after Lean manufacturing in the evolution of
production methodology.

20. definition
Agile manufacturing is a term applied to an
organization that has created the processes, tools,
and training to enable it to respond quickly to
customer needs and market changes while still
controlling costs and quality.

21. Global Competition is intensifying.
Cooperation among companies is becoming
necessary, including companies who are in direct
competition with each other.
Customers are expecting:
 Low volume products
 High quality products
 Custom products
Very short product life-cycles, development time,
and production lead times are required.

22. ADVANTAGES
The company is given a competitive advantage since
it is continuously changing its approach to satisfy its
customers.
Innovative design based on the customer’s demands
are provided.
Responds quickly to emerging crisis.
Even though the production could change rapidly,
mass production could still be reached while
flexibility is still possible.

23. DISADVANTAGES
Sudden increase in demand will cause shortage.
The company will need to invest more
The change in machinery and workers up-to-date to
new technologies, and to keep the company
competitive due to the short product life cycles.
Maintenance can cost more

24. KEY ELEMENTS OF AGILE
MANUFACTURING

25. There are four key elements for agile manufacturing:
Modular Product Design (designing products in a
modular fashion that enables them to serve as platforms
for fast and easy variation)
Information Technology (automating the rapid
dissemination of information throughout the company to
enable lightning fast response to orders)
Corporate Partners (creating virtual short-term
alliances with other companies that enable improved
time-to-market for selected product segments)
Knowledge Culture (investing in employee training to
achieve a culture that supports rapid change and ongoing
adaptation)

26. Principles of Agile:
1. Highest priority is customer satisfaction
2. Welcome changing requirements
3. Frequent delivery of software
4. Business people & developers cooperating daily
5. Build projects around motivated people
6. Face-to-face conversation is best
7. Progress measured by working software
8. Sustainable development pace
9. Continuous attention to technical excellence
10. Simplicity
11. Self-organizing teams
12. Regular reflection & adaptation

27. agile lean
It focuses on responding quickly to
unexpected customer requests,
allowing companies to capitalize on
the highest possible number of sale
opportunities.
It focuses on reducing cost,allowing
companies greater flexibility
Production configuration uses fewer
people, relying more on automation
and modular design
In this manufacturing,which relies
heavily on people.
It requires a higher inventory of
smaller parts
Emphasis on thriving in environment
marked by continuous unpredictable
change
Emphasis on supplier management

28. LEAN aGILE
 NO Customization
 Only 1 or 2 versions of product.
 Perfect Quality
 Focus on factory operations
 Mass Production
 Emphasis on efficient
use of resources
 Customisable
 Numerous options are available
 Acceptable Quality
 Scope is enterprise wide
 Mass Customization
 Emphasis on continuous change
 Production schedule is
responsive to change

30. SIMILARITIES
Both ultimately focused on increasing business
sustainability in the high-cost manufacturing sector.
Both are answers to challenges faced by historical
manufacturers.
Both provide opportunities for smaller players to
compete with larger, entrenched competitors
Both concepts rely heavily on statistical analysis,
computerized information systems and open
communication between internal and external
stakeholders.