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Lean manufacturing and its tool

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Complete description of Lean manufacturing and its tool.

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Lean manufacturing and its tool

  1. 1. Lean Manufacturing
  2. 2. Agenda ◼ Lean ◼ ◼ ◼ ◼ ◼ ◼ ◼ ◼ Components of lean thinking Why lean? Key to profitability Lean cost model Traditional VS Lean model. Lean management. Evolution of lean thinking Pillars of TPS (JIT and JIDOKA). ◼ Lean tools.
  3. 3. Lean ◼ Lean – Here , Lean means that the person is not having fats but have required muscles. ◼ ◼ Fats– Non Value added activities (NVAs)= Waste (MUDA). Muscles– Value added activities (VAs).
  4. 4. 5 Components of Lean thinking (V)Perfec tion (I)Value (II)Value stream (III)Flow (IV)Pull
  5. 5. Why Lean? ◼
  6. 6. Key to Profitability ◼
  7. 7. Lean Cost Model ◼ New Equation: Price-Cost=Profit ◼ In Order to be in Profit we have to provide some values to Customer. ◼ Value: Value is something for Which the customer is willing to pay. ◼ Value=Performance(P)/Cost(C) Value = Performance(P) Cost(C)
  8. 8. C P  → →      Lean Cost Model Value = Performance(P) Cost(C) ◼ There are four ways to increase the Value:
  9. 9. Lean Method Model Traditional Model ◼ In Order to Increase the Output: Lean Model ◼ Increase the workforce. ◼ Increase working hours. ◼ Add Machine. ◼ Eliminate waste. ◼ Focuses on Efficient use of Equipment and People.
  10. 10. Other Names Lean Agile system JIT Flexible manufactu ring Rapid System
  11. 11. Lean Management Lean Management Elimination of Wastes Creatingwork Flow
  12. 12. Types of Activities Activities Value Added (VAs) Non Value Added(NVAs) Type1:NNVAA TYPE2:MUDA
  13. 13. MUDA ◼ MUDA means WASTE. ◼ Waste refers to any activity that does not add value and is not necessary. ◼ Waste only adds to time and cost. ◼ These wastes were of 7 types (TIMWOOD) and now one new waste-Non-utilized talent or skill is added. ◼ Total Wastes:7+1=8 (DOWNTIME).
  14. 14. MUDA TYPES OF WASTE Extra Processing Motion Waiting Rework Over- ProductionTransportation Inventory 7 Deadly Waste - Over-production - Inventory - Extra Processing - Motion - Rework (Defects) - Waiting - Transportation Add NO value - Only serve to raise costs PEOPLE
  15. 15. Transportation Movement of things Adds to cycle time Consumes valuable resources Effects Causes Excessive Emails Taking files to another person Adds cost
  16. 16. Inventory Difficulty in finding material Useless Emails in the Inbox Takes valuable space Need extra resources to manage Effects Causes Populating hard disk with data Lots of inventory on shelves, racks and floors Obsolescence Losses due to damage Efficient use of inventory… Not Just-in-Case inventory Inventory Hides Problems Increase Lead Time
  17. 17. Motion Wasted cycle time Extra Clicks or key strokes Adds cost Effects Causes Unnecessasry Movement of People Before After Handling Paperwork
  18. 18. Waiting Increases work in progress Idle time due to lack of “Standard” operations Adds to cycle timeCauses bottlenecks Effects Causes Waiting for people, information, etc Slows response to customer When Inventory Waits, Customer Waits Lack of Coordination
  19. 19. Over Production Builds inventory not needed Produce or order only what, when and in the quantity needed Creating reports no one reads Hides other process problems (bad quality, poor delivery) Takes up floor / disk space Effects Causes Working on the wrong priority work Producing more than the customer or next process needs
  20. 20. Over Processing Opportunity for more defects Creates Delay in Delivering Effects Causes Incomplete Information supplied Multiple ways of doing the same task Eliminate Excess work Checking / Rechecking (Non- Standardization)
  21. 21. Defects Adds cost Create Delay in Delivery Consumes resources in rework Effects Causes Lack of Clarity on Requirement Unnecessary Changes in Decision Incomplete or incorrect inputs Reduce Defects Discourage customer satisfaction Escalated impact of initial defect if passed on to next process
  22. 22. Creating workflow ◼ Increasing the speed or efficiency of production system. ◼ Reducing the time gap b/w different operations on the product on different platforms in assy. line. It implies that reducing the manufacturing time within production system. ◼ Reducing the moment time of the product within production system ◼
  23. 23. Evolution of Lean thinking ◼ The idea of lean is originally introduced by Henry Ford. Henry Ford like to keep the manufacturing system incredibly high so that each step of operation followed naturally into next step of operation and there is no time delay b/w any two steps of operations within the manufacturing system. ◼
  24. 24. Evolution of Lean thinking ◼ The roots of lean management established in 1940s in Toyota Manufacturing. Toyota accommodated the lean thinking and developed the Toyota Production System(TPS). ◼ After Adoption, Annual profit of Toyota in 2003 was more than the Combined Profit of GM, Chrysler and Ford. ◼
  25. 25. Evolution of Lean thinking Kiichiro Toyoda Taiichi OhnoEiji Toyoda ◼ Increases the Production Efficiency by Conveyors and other automated systems in Textile industry.. ◼ He introduced the same concepts on certain lines in Toyota manufacturing process Introduced the concept JIT JIDOKA Pillarsof ToyotaProductionsystem
  26. 26. Pillar of TPS
  27. 27. Concept of TPS ◼ The Toyota Production System (TPS) was established based on two concepts: ◼ The first is called "jidoka"(which can be loosely translated as "automation with a human touch") which means that when a problem occurs, the equipment stops immediately, preventing defective products from being produced; ◼ The second is the concept of "Just-in-Time”, in which each process produces only what is needed by the next process in a continuous flow.
  28. 28. Aim of TPS Q1.)Aim of TPS? A1.)Cost Reduction Q2.)How? A2.)By Thoroughly Eliminating: ‘MUDA’ Q3.)What is Muda? A3.)Waste Q4.)What is waste? A4.)Waste of Overproduction Q5.)How? A5.) Working Capital gets tied up in Inventory, Warehouse storage space, Forklift trucks to move goods, Material handlers to operate trucks, Computers to keep track of inventory locations, staff to maintain these systems, etc. A Quick Q&A
  29. 29. Lean tools ◼ 5S ◼ Kaizen ◼ 3M ◼ Work standardization ◼ Value Stream mapping ◼ JIT ◼ Kanban ◼ KPI ◼ OEE
  30. 30. Lean tools ◼ RCA ◼ SMED ◼ Andon ◼ Takt time ◼ Smart goal ◼ Poka yoke ◼ PDCA ◼ Jidoka
  31. 31. 5S ◼ Scientific way of workplace management S. No. Japanese English 1 Seiri Sorting 2 Seiton Set in order 3 Seiso Shine 4 Sieketsu Standardise 5 Shitsuke Sustain ◼ Benefits: ◼ Quality ◼ Cost  ◼ Safety ◼ Motivation
  32. 32. Kaizen ◼ Kaizen=Kai (Change)+Zen(for better) ◼ Kaizen means change for better(Continual improvement) ◼ Kaizen is small incremental changes made for improving productivity and minimizing waste. ◼ Masaaki Imai is known as the father of kaizen.
  33. 33. 3M (MUDA, MURA, MURI) ◼ Muda:Waste ◼ Mura:Unevenness ◼ Muri:Overburden ◼ Why to remove? ◼ Reduction in waste generation ◼ Reduction in Inconsistent process ◼ Reduction in Stress/Strain on Equipment/People.
  34. 34. Work Standardization ◼ Documented procedures for manufacturing that captures best practices. (Including the time to complete each task) ◼ Note:Must be “Living documentation” that is easy to follow. ◼ Benefits: ◼ Forms a baseline for further improvement activities. ◼ Eliminates waste by consistently applying practices.
  35. 35. Value Stream Mapping ◼ “A Tool used to visually map the flow of production which shows the Current and Future state of processes in a way that highlights opportunity for improvement”. ◼ Benefit: ◼ Exposes waste in the current processes and provides a road map for improvement through the future state.
  36. 36. Value Stream Mapping
  37. 37. Value Stream Mapping
  38. 38. JIT ◼ Just-in-Time (JIT) manufacturing, also known as Just-in-time production system or the Toyota production system, is a methodology aimed primarily at reducing flow times within production system as well as response time from suppliers and to customers. ◼ “The right part at the right time in the right amount”.
  39. 39. JIT ◼ Claims for JIT: ◼ Reduced inventory ◼ Reduced WIP ◼ Shorter Lead Time(not to early not to late) ◼ JIT is the result businesses wants, not a starting point. ◼ JIT relies on many lean tools, such as continuous flow,Heijunka (Line balancing),Kanban, Standardized work and Takt time.
  40. 40. JIT ◼ JIT Implementation: ◼ Top management commitment. ◼ Steering committee ◼ Education program. ◼ Pilot project planning. ◼ Employee training. ◼ Pilot implementation. ◼ Pilot post mortem ◼ Feedback to steering committee. ◼ Expansion to next project.
  41. 41. Kanban ◼ A method of regulating the flow of goods within the factory and outside suppliers and customers. ◼ Kanban (Literally a Signboard) is a scheduling system for Just-In-Time (JIT) production. ◼ Kanban is a system to control the logistical chain from a production point of view, and is an inventory control system. ◼ Kanban was developed by Taiichi Ohno, an industrial engineer at Toyota, as a system to improve and maintain a high level of production.
  42. 42. Kanban ◼ A Kanban card includes a part code number, its batch size, its delivery ‘address’, and other related information. ◼ Kanban (Literally a Signboard) is a scheduling system for Just-In-Time (JIT) production. ◼ Although all production plans were shared with suppliers to ease their planning, only Kanbans triggered part production. When and only when the supplier received Kanban, they began making that part in the stated quantity, and shipped a container full of that part to the proper ‘address’ on the assembly line.
  43. 43. Kanban ◼ Assembly group leaders adjusted the number of circulating Kanbans for each part within a set range, determined by the PPC department, to avoid having teams run out of parts OR containers overflowing onto the plant floor. ◼ Benefits: ◼ Eliminate waste from inventory and overproduction.
  44. 44. KPI ◼ Metrics designed to track and encourage progress towards critical goals of the organisation. ◼ The Best manufacturing KPIs: ◼ Are aligned with top level strategic goal. ◼ Are effective at exposing and quantifying waste. ◼ Are readily influenced by plant floor employees.
  45. 45. OEE ◼ Frame work for measuring productivity loss for a given manufacturing losses. ◼ If OEE  85%,Good performance indicator ◼ Three categories of losses are traced: ◼ Availability(ex: downtime) ◼ Performance(ex: Slow cycles ◼ Quality: (ex: rejection)
  46. 46. OEE Operator Efficiency(OE) = (Cycle time*Good production)*100 Total line run time M/C Availability(MA) = (Total line run time)*100 Total available time Quality ratio(QR) = (Total Ok production)*100 Total Production ◼ Formula for reference: Overall Equipment efficiency(OEE) = (OE)*(MA)*(QR) 10000
  47. 47. RCA ◼ A Problem solving methodology which focuses on root cause fixing. Example: The vehicle will not start. (The problem) 1. Why? - The battery is dead. 2. Why? - The alternator is not functioning. 3. Why? - The alternator belt has broken. 4. Why? - The alternator belt was well beyond its useful service life and not replaced. 5. Why? - The vehicle was not maintained according to the recommended service schedule. (The Root Cause)
  48. 48. SMED ◼ SMED stands for Single minutes exchange of dies. ◼ It changing process tooling in 9 minutes or less. ◼ This process was first introduced by Shigeo Shingo at Mazda, Mitsubishi and Toyota in the 1950s and 1960s.
  49. 49. SMED ◼ Changeover: Starts at the end of the last good product of the previous batch and ends with the first good product of the new batch. ◼ Set-up activities : Two types ◼ Internal set-up activities : Elements in the changeover which can only be done when the machine is stopped. ◼ External set-up activities: Elements that can be performed when the M/C is running.
  50. 50. SMED ◼ The SMED improvement steps: ◼ Preliminary stage: Observe and record. ◼ Stage1: Separate internal and external activities. ◼ Stage2: Convert internal activities into external activities. ◼ Stage3: Stream lines all activities. ◼ Stage4: Document internal and external procedures.
  51. 51. SMED
  52. 52. ANDON Andon is a manufacturing term referring to a signboard incorporating signal lights, audio alarms, and text or other displays installed at a workstation to notify management and other workers of a quality or process problem. ▪ Andon Cord: A rope running along the assembly line over the work area ▪ Andon Board: A signboard that showed work station’s ‘address number’
  53. 53. PDCA ◼ PDCA stands for Plan-Do-Check-Act. ◼ Also, called Plan-Do-Study-Act (PDSA), Shewhart cycle or Deming Cycle. ◼ The PDCA cycle is a four step model for carrying out change. ◼ Just as a circle has no end, the PDCA cycle should be repeated again and again for continuous improvement.
  54. 54. PDCA
  55. 55. Poka Yoke ◼ Poka (Inadvertent errors)+Yokure (To avoid) ◼ Also called Mistake Proofing or Error Proofing ◼ Mistake proofing is the activity of awareness, detection and prevention of mistakes which adversely affect: ◼ Our customers and consumers(defect). ◼ Our Employees (Injury).
  56. 56. Poka Yoke ◼ Awareness : Having the forethought that a mistake can be made, communicating the potential and planning the design of the product or the process to detect or prevent it. ◼ Detection : Allowing the mistake to happen but providing some means of detecting it and altering someone so that we fix it before sending it to our customer. ◼ Prevention : Not allowing the possibility for the mistakes occur in the first place.
  57. 57. Poka Yoke ◼ Category of poka yoke:
  58. 58. Poka Yoke ◼ Category of poka yoke: ◼ Preventive devices: A prevention devices engineers the process so that it is impossible to make a mistake at all. ◼ Examples: ◼ Design of a Sim card ◼ Design of USB cable pin. ◼ Plug and sockets.
  59. 59. Poka Yoke ◼ Detection devices: A detection devices signals the user when a mistake has been made , So that the user can quickly correct the problem. ◼ Example: A car beeps if the key is left in the ignition. ◼ Quenchant temperature indicator.
  60. 60. Jidoka ◼ Jidoka: Automation with human touch (Autonomation). ◼ Jidoka demands that the a process stops itself as soon as the Errors/Faults are detected so improvements and troubleshooting can happen immediately. ◼ M/C are often Equipped to recognise bad O/P from good O/P. ◼ Built-in-quality to the process. ◼ First used by Sakichi toyoda at the beginning of 20th century ◼ A pillar of the TPS.
  61. 61. Jidoka Toyota this means that if an abnormal situation arises the machine stops and the worker will stop the production line. It is a quality control process that applies the following four principles: 1.Detect the abnormality 2.Stop 3.Fix or correct the immediate condition 4.Investigate the root cause and install a countermeasure.
  62. 62. Thank you..