Lean Tools

Lean Manufacturing Tools
Complete Guide

 “Change for the Better”
 Kaizen began its life shortly after world war 2
 Improve constantly and forever the system of
production and service, to improve quality and
productivity, and thus constantly decrease costs.
 Kaizen: The Key to Competitive Success.
 Rapidly improve a process in the space of a few days.
 Kaizen seeks to eliminate problems associated with
the wastes inherent within our processes.
 Kaizen events result in more work being done with
less people.
1. Kaizen

 Continual Improvement Kaizen is about individual and
team creativity and harnessing the ideas and
knowledge of everyone within the organization.
 Kaizen is a daily process, the purpose of which goes
beyond simple productivity improvement.
 Kaizen functions on, there is always room for
improvement.
 Kaizen events characterized by;
• Sharp focus on processes
• Focus on improving supplier-customer relationship and
production flow.
• Add value and eliminate waste

 The continuous cycle of Kaizen activity has seven
phases:
1. Identify an opportunity
2. Analyze the process
3. Develop an optimal solution
4. Implement the solution
5. Study the results
6. Standardize the solution
7. Plan for the future

 There are many benefits of adopting kaizen;
• Production efficiency
• Less waste and more output
• Better customer service
• Employee participation and satisfaction
• Improved workplace safety

 Jidoka is about quality at source, or built in quality.
 The principle of Jidoka can be broken down into a few
simple steps;
• Discover an abnormality
• STOP
• Fix the immediate problem
• Investigate and correct root cause
 It is about building Quality into a process rather than
inspecting for it at the end of the process.
 TPS defined Jidoka as automation with a human touch.
 https://www.youtube.com/watch?v=VqDB6ZrNe94
2. Jidoka

 Mistake Proofing
 Poka yoke is a technique for avoiding simple human error
at work
 Prevent defects for being made so that it is not passed to
the next operation.
 Poka Yoke is a system to prevent mistakes from happening
or immediately catches any mistake that has happened so
that it can be corrected.
 The aim of Poka Yoke is to design processes so that
mistakes are prevented or corrected immediately, thus
eliminating defects at the source.
 “Error Prevention is better than Defect Detection”
 “An Ounce of Prevention is worth a pound of Cure”
3. Poka Yoke

 The Poka Yoke System for Mistake Proofing
• Awareness
• Brainstorming, Communication, Measurement
• Root Cause Analysis
• The Five Why’s, Brainstorm & Prioritize Causes
• Six Poka Yoke Techniques
1. Elimination
2. Replacement
3. Prevention
4. Facilitation
5. Detection
6. Mitigation

 Purpose of Poka Yoke
• Not accept a defect for the process
• Not Create a Defect
• Not Allow a Defect to be passed to the next process
 Done in different ways;
• Control – Physical action to prevent defect
• Warning – Sound alarm or light up to tell us a mistake
has been made

 The purpose of visual management is to improve the
effectiveness of communication and reaction.
 Visual management aims to make the situation easily
understood merely by looking at it.
 Visual management is a way to visually communicate
expectations, performance, standards or warnings in
a way that requires little or no prior training to
interpret.
 Simple communication of facts and works up to using
visual controls to prevent errors occurring.
 Information is communicated by using visual signals
instead of texts or other written instructions.
4. Visual Management

 Visual control methods aim to increase the efficiency
and effectiveness of a process by making the steps in
that process more visible.
 The goal is to get as much information as possible
with as little observation or time as possible
 Visual controls are designed to make the control and
management of a company as simple as possible.
 Categories of Visual Management;
• To share information (Notice Boards)
• To share standards
• To build in standards
• To warn about abnormalities

 Visual Signals or Card
 Kanban helps you harness the power of visual
information by using sticky notes on a whiteboard to
create a “picture” of your work.
 Kanban is not a inventory control system
 Controls the amounts of raw material amounts and of
material in Work In Process.
 Assures there is always just enough material on hand
to make what is needed .
5. Kanban

 Kanban is based on three basic principles:
1. Visualize what you do today (Workflow)
2. Limit the amount of work in progress
3. Enhance workflow
 Types of Kanban:
1. Raw material Kanban: Tells suppliers when to send how
much of a particular item to a particular place.
2. In-process Kanban: Determines the amount of WIP (Work In
Process) that can be kept between any two operations in a
process.
3. Finished Good Kanban: Determines the amount of a product
to be kept on hand at any given time. Removal of material
from the Finished Goods Kanban acts as a signal for more of
that product to be manufactured.

 Types of Kanban Signals:
• A calculated amount of material kept in a designated
space, such as a bin or between lines on a workbench or
on the floor.
• A card that is used to tell the amount of material to be
made or ordered.
• The markings on a bin that determine when more
material needs to be ordered or made.
• Any other clear visual signal that indicates it is time to
get more material.

 Kanban is a two bin system;
The system works simply by supplying two plastic storage bins
to workers which contain inventory that they pull from to fill
orders or to provide supplies to various departments. The speed
at which the individual items are used will determine how many
of the items are placed in the bins. The workers pull from one
bin until empty and then switch to the second bin at the same
time placing an order to replenish the items in the first bin. The
amount of items required to replenish the first bin is
predetermined so that there is little chance of running low on
stock, which can impact production.

Signals System
Order Placement
Transport
Stores/Shop Floor

 Demand management is a planning methodology used to
forecast, plan for and manage the demand for products and
services.
 Demand management has a defined set of processes,
capabilities and recommended behaviors for companies that
produce goods and services.
 Effective demand management follows the concept of a "closed
loop" where feedback from the results of the demand plans is
fed back into the planning process to improve the predictability
of outcomes.
 Organizations use demand management systems to address
external spending factors, arrange purchase orders and
eradicate waste
 Demand management is also known as consumption
management or strategic spend management.
6. Demand Management

 Components of Demand Management

 When applying demand management, key
considerations include:
• Available options for volume discounts
• Order timing's impact on pricing
• Whether or not the best suppliers are being utilized
• Precise attention to described contract processes
 Demand Management questions:
• What should be produced?
• Where should it be produced?
• When should it be produced?
• How much should be produced?

 Factors Affecting demand management:
1. Product life cycle
2. Status of the general economy
3. Customer plans & Attitudes
4. Advertisement & sales promotions
5. Reputation for service
6. Product design
7. Product quality
8. Competitors actions
9. Time of the year

 Demand Management Benefits:
1. Control over product availability
2. Confidence of sales force and ability to deliver
products
3. A single game plan, based on the same sets of
numbers
4. Improved ability to responds to change
5. Smoother product introductions

 Heijunka (hi-JUNE-kuh) is a Japanese word for leveling.
 It is part of the lean methodology of process improvement
that helps organizations match unpredictable customer
demand patterns and eliminate manufacturing waste by
leveling the type and quantity of production output over a
fixed period of time
 Heijunka helps avoid the inefficiencies of manufacturing in
large lots by putting the production process closer in line
with customer demand
 Heijunka is a system of production-leveling that produces
the right product mix as demanded by the customer by
making optimal utilization of the available capacity
7. Heijunka

 Core Concepts to Guide Heijunka Implementation
• Takt time: The time it takes to finish a product in order to meet customer
demand.
• Volume leveling: Manufacture at levels of long-term average demand and
keep a buffer inventory proportional to variability in demand, stability of
production process and shipping speed
• Type leveling: Make every product every day and reserve capacity for
changeover flexibility
• Heijunka box: A working diagram of type leveling and production schedule
• Work slowly and consistently
• Changeover time
• Buffer inventory: Having some product ready to ship at the beginning of
each production cycle is essential to smoothing production and leveling
demand at consistent rates and quality so that resource waste is minimized
on the line
• Type standardization: By manufacturing one of each product or service a day,
knowledge can be more readily shared across types to benefit every process

 What HEIJUNKA does?
• Stabilizes production volume and variety by
consolidating total number of customer orders
• Spreads out the production in an even manner through-
out the day
• Ensures high order fulfillment rate
• Ensures internal production is balanced
• Established capacity is not over or under-utilized

 Benefits of Implementing Heijunka:
1. Lead Time Reduction
2. Changeover Time Reduction
3. Reduction in Work in progress
4. Reduction in Inventory obsolescence
5. Improvement in One time delivery.

 Just in Time is a lean tool that calls for the production
of what a customer wants, when they want it, in the
quantity they want it, and where they want it.
 Create as much of an item as a customer actually
wants.
 This reduces unnecessary inventory and ensures that
companies only spend on stock that will be paid for.

 Functioning of JIT
• Involves keeping stock
levels to a minimum
• Stock arrives just in time to
be used in production
• Works best when there is a
close relationship between
manufacturers and
suppliers.
• Goods not produced unless
firm has an order from a
customer
• Aims to get highest volume
of output at the lowest
unit cost

 Benefits of JIT
• Reduction in inventory
• Improved quality
• Reduced space requirements
• Shorter Lead time
• Lower production cost
• Increased productivity
• Increased machine utilization
• Greater flexibility

 Disadvantages of JIT
• Danger of disrupted production due to non-arrival of
supplies
• Danger of lost sales
• High dependency on supplier
• Less time for quality control on arrival of materials
• Increased ordering and admin cost
• May loose bulk-buying discounts

 Takt Time comes from the German word for “pulse.”
 It’s the maximum amount of time a product needs to
be produced while still meeting consumer demand.
 Takt creates a rhythm across a supply chain to ensure
continuous flow and full utilization of available
resources.
 The goal of Takt is to deliver the right product to the
right customer at the right time, all with minimal
waste.
 It ensures that products are manufactured in the
most efficient way, while meeting consumer demand.
9. TAKT Time

 Another goal of Takt Time is to create a solid flow of
operations within a supply chain.
 Measuring Takt Time will allow managers to
determine capacity and synchronization issues within
a supply chain and then find proper solutions.
 Takt time is heart of Value Stream Map
 Customer Driven: Available Operating Time/Customer
Demand
 Takt Time differs from Cycle Time, which is the actual
time it takes to make one unit of production output.

 Example of Takt Time
• Total Time: 8 Hrs X 60 Min = 480 Min
• Breaks: 50 Min
• Time Available : 430 Min
• Customer Demand in 8 Hrs: 100 Pieces
• Takt Time: 430 / 100 = 4.3 Min = 258 Sec

 Bottleneck (or constraint) in a supply chain refers to the
resource that takes the longest time in operations.
 If one part of a supply chain is unnecessarily slow, it can
reduce the speed and efficiency of the entire
manufacturing process.
 A bottleneck is any area along the production line where
work can get backed up for one reason or another.
 A bottleneck analysis is a detailed process where a
company gathers as much information about the
manufacturing flow of a particular product or process.
 This type of analysis can be done specifically to identify the
cause of a bottleneck that is causing problems.

 Bottleneck Analysis;
• Cause of the Bottleneck - Identifying the root cause of a
bottleneck is required for being able to put in a long term fix
that will keep the problem from happening again in the
future.
• Streamline Workflow - Once the bottleneck is addressed,
work can flow through from start to finish in at an even rate.
• Eliminate Waste - Bottlenecks are often caused by
unnecessary or inefficient processes, which result in a variety
of types of waste. Being aware of the waste is the first step in
having it eliminated.
• Improve Knowledge - The more a company knows about a
specific process, the easier it is to make smart decisions. This
can provide advantages not only when it comes to eliminating
bottlenecks, but when making process improvement
decisions in general.

 Potential solution to Bottlenecks:
• Add additional capacity
• Adjust the flow
• Eliminate wasted steps
• Add staff (If required)
• Reduce production rate to reduce inventory
 The goal of Bottleneck Analysis?
The goal of Bottleneck Analysis is to determine the slowest parts
of the manufacturing process and then figure out how to speed
them up. The process can be costly, but will usually lead to
increased efficiency and profits. Ignoring a bottleneck issue can
be very costly down the line.

 Andon is a manufacturing term referring to a system to notify
management, maintenance, and other workers of a quality or
process problem.
 A visual and/or audible communication system that notifies
everyone of abnormalities in a process when support or
attention is needed.
11. Andon
 It is a form of visual management.
 Andon lights are generally used in
assembly lines. Different colored
lights are used to signal different
problems and actions required.
 Andons work best when they are
highly visible and easy to understand.
They must go hand in hand with an
action.

 Why Andon?
• Visual Factory (no problems hidden)
 Can be used at anyplace that is practical

 How to implement Andon?
 Determine where Andon is
needed
 Establish what signals will be
used and when
 Put the switch near the operator
 Put the signal in place where the
supporting person can see/hear
it
 Write instructions
 Train people
 Practice, monitor and retrain.

 Gemba means “the real place”.
 The idea of Gemba in lean manufacturing is that
management must go to factory floor to search and
fix visible problems.
 Manufacturing problems, Gemba argues, cannot be
solved from an office. They require an actual physical
presence by problem solvers on the manufacturing
floor.
 Gemba visits are not scripted or bound by what one
wants to ask.

 How is Gemba implemented?
• Engineers physically go to manufacturing floor to observe
processes.
• Engineers collect data and understand the work being done
• Engineers ask questions.
• Engineers learn about problems and come up with solutions.
 Gemba Walks refer staff taking the time to walk through
the factory, examine what is going on, and determine if
there are any issues.
 In the lean management philosophy, staff are expected to
do Gemba Walks at least once a week.
“Go see, ask why, show respect”

7 Steps for successful Gemba Walk
• Create a premise or hypothesis
• Formalize a list of questions
• Share your experiences and
feedback
• Make appropriate notes and assign
follow up homework
• Establish how often you conduct
Gemba sessions
• Foster ‘Train the Trainer’ mentality.

 Hoshin Kanri is a seven-step planning process that involves a
systematic method to meet strategic planning goals and manage
progress towards those goals.
 The goal of Hoshin Kanri is to determine your strategic
objectives and then align them with specific resources and
action plans to meet those objectives.
 The big goals then need to be broken down into smaller goals, at
a weekly and monthly basis, and then implemented so that
everyone, from management to the factory floor, is in
agreement on what needs to be accomplished.
 Hoshin Kanri is a top-down approach.
 Hoshin or breakthrough ideas are the aspect of strategic
planning that move the organization into greater areas of
innovation and creativity.

 These breakthrough ideas are driven by what the
marketplace is doing, best in class operational and
strategic focus and what the customer expects from your
company.
 Hoshin has been called application of the plan-do-study-act
model to the management process.
 Hoshin Kanri methodology ensures that everyone in the
organization knows the strategic direction for the
company.
 It creates a working communication system that focuses
everyone on common goals.

The 7-steps of Hoshin Kanri:
1. Determine an organizational vision. Figure out what your
current mission and long-term vision is.
2. Establish breakthrough objectives. Determine what
significant improvements a business needs in the next three
to five years.
3. Come up with annual objectives to complete on a yearly
basis.
4. Determine metrics to measure objectives.
5. Implement objectives.
6. Review objectives monthly. Determine your progress each
month to see where your business needs improvement.
7. Review objectives yearly. Determine your progress each
year to see where your business needs improvement.

 Benefits of Hoshin Kanri
• Every employee is clear of their role and objectives
• Leadership evident at all levels
• Everyone understands the goals of organization.
• Aligns resources, objectives and metrics to all goals and
at all levels of organization.
• Employees are involved in setting targets, improvement
schedules and reviews.
• There is a clear line of site.

14. OEE (Overall Equipment
Effectiveness)

 OEE is a system used to measure manufacturing
productivity. It measures the percentage of time that a
manufacturer is truly productive.
 OEE breaks the performance of a manufacturing unit into
three separate but measurable components: Availability,
Performance, and Quality.
 Each component points to an aspect of the process that
can be targeted for improvement.
 By measuring productivity in terms of time, manufacturers
can gain insight into how to improve overall manufacturing
performance.
 The system helps to identify waste, track progress, and
improve manufacturing equipment efficiency.

 OEE = (Availability)*(Performance)*(Quality)
• Availability takes into account any stops.
(Run Time/Total Time)
• Performance measures slow cycle and stops
(Total Count/Target Counter)
• Quality measures the no of defects
(Good Count/Total Count)
 These metrics help gauge your plant’s efficiency and
effectiveness and categorize these key productivity
losses that occur within the manufacturing process.

 Continuous improvement is a method for identifying
opportunities for streamlining work and reducing
waste.
 It is a methodology that improve efficiency over time.
 Is an ongoing efforts to improve product, services or
processes.
 Continuous improvement as a gradual never-ending
change which is focused on increasing the
effectiveness and/or efficiency of an organization to
fulfill its policy and objectives

 Continuous improvement management system

 People (Leader) Development : Team will be developed so
it can achieve companies strategies.
 Process Improvement : Improve the processes to deliver
outstanding results to your customer at a low cost.
 KPI’s & Daily Management Implementation : Develop the
right measures and implement a daily management system
to keep you on track with your goals.
 Setting Departmental goals : Operational review process
to highlight the need for countermeasures.
 Creating Continuous improvement Culture : Create a
framework in which a company can thrive and meet
aggressive quality, delivery, and cost goals.
 Corporate Strategy : Improvement-oriented company that
opens up more opportunities to beat the competition.

The benefits of Continuous Improvement include:
 Efficient workflows.
 Saves time.
 Reduces cost.
 Reduces resources needed
Continuous Improvement is implemented in four steps:
 Figure out what needs to improvement and create a plan.
 After plan is complete, implement the plan.
 Collect data to figure out if the plan worked and if it needs
improvement.
 Once the plan has worked on a small scale, implement it on a
wider scale.

16. TPM (Total Productive
Maintenance)

 Total Productive Maintenance is a lean tool used to
prevent machine downtime within the production
process.
 The goal is to limit downtime as much as possible in
order to increase production efficiency.
 TPM provides a firm foundation on which to build
sustainable improvements to our business.
 Keeping equipment's and plant in as good as or
better than the original conditions at all time.
 It follows CLIRT mechanism; Cleaning, Lubricating,
Inspecting, Repair and Tightening

Why TPM?
• Higher Overall Equipment Effectiveness
• Less firefighting to repair machines
• Lower operating cost
• Better able to meet commitment to customers
• Improved ability to compete in the world marketplace
• Better cooperation between maintenance, production
and other departments.
• Reduced chances of accidents
• Higher job satisfaction and improved job security.

 TPM Evolution
Breakdown
Maintenance
Preventive
Maintenance
Productive
Maintenance
Total Productive
Maintenance

Total Productive Maintenance includes three main
components:
 Preventative maintenance : These included planned
maintenance activities that are regularly scheduled. The crew
will perform these periodically throughout the year. It
includes checking all equipment for problems and fixing any
issues. The goal is to prevent problems before they occur.
 Corrective maintenance : Managers and crew check
equipment and determine whether problematic equipment
needs to be replaced altogether. Oftentimes, it is more cost-
effective to replace equipment before they break. Replacing
equipment can often increase efficiency and profits.
 Maintenance prevention : This procedure makes sure that all
equipment bought is exactly what’s needed. Buying faulty or
incorrect equipment can result in increased maintenance
responsibilities and production inefficiencies down the line.

Benefits of TPM
 Increased employee skills levels and employee
empowerment
 Improved capacity and higher productivity
 Reduced preventive maintenance cost as there is
autonomous maintenance
 Increased return on investment
 Reduced defects level
 Increased OEE
 Reduced emergency downtime

 Total Quality Management is an organizational effort to improve
the quality of a manufactured product.
 The goal is to increase quality of every single step in an
organizational workflow.
 Total Quality is a description of the culture, attitude and
organization of a company that strives to provide customers
with products and services that satisfy their needs.
 TQM, is a method by which management and employees can
become involved in the continuous improvement of the
production of goods and services.
 TQM is a management philosophy that seeks to integrate all
organizational functions (marketing, finance, design,
engineering, and production, customer service, etc.) to focus on
meeting customer needs and organizational objectives

TQM Approach
 Find out what the customer wants.
 Design product or service that meets or exceeds
customer wants.
 Design processes that facilitates doing the job right first
time.
 Keep track of records.
 Extend these concepts to supplier.

 Principles of TQM
• Continual improvement
• Competitive
benchmarking.
• Employee empowerment.
• Team Approach.
• Decision based on facts.
• Knowledge of tools.
• Supplier quality.
• Quality at source.

 Benefits of TQM
• Improved quality
• Employee participation
• Team Work
• Working relationship
• Customer satisfaction
• Employee satisfaction
• Increased productivity
• Better communication
• Increased profitability
• Increased market share

 Root Cause Analysis is a lean problem solving method that
aims to get to the root of a problem.
 The philosophy of RCA is predicated on the idea that it’s
best to treat the root cause of a problem, not the obvious
symptoms.
 By treating the root cause, manufacturers can eliminate
larger problems down the road.
 Root Cause Analysis will generally not fix problems in one
try and is generally an iterative process.
 RCA helps organizations avoid the tendency to single out
one factor to arrive at the most expedient (but generally
incomplete) resolution.
 Able to recommend an effective solution based on the
identified root cause.

 The main principles of Root Cause Analysis include:
• The aim of Root Cause Analysis is to identify the root cause of
a problem in order to prevent it from ever occurring again. It’s
a long term solution.
• Root Cause Analysis must be an investigative and systematic
process to work effectively.
• Every problem only has one root cause.
 The primary goal of using RCA is to analyze problems or
events to identify:
• What happened
• How it happened
• Why it happened…
• Actions for preventing reoccurrence are developed

 RCA Tools
5 Why Analysis
Fishbone Diagram
Affinity Diagram

 Implementing RCA will help;
• Identify barriers and the causes of
problems, so that permanent
solutions can be found.
• Develop a logical approach to
problem-solving, using data that
already exists in the company.
• Identify current and future needs
for organizational improvement.
• Establish repeatable, step-by-step
processes, in which one process
can confirm the results of another.

19. VSM (Value Stream Mapping)

 Value Stream Mapping is a lean tool that uses a flow
diagram to depict every step of a process.
 Value stream mapping (VSM) is a lean manufacturing tool
that seeks to map your process from supplier to customer,
highlighting the flows of product and information and
identifying delays and non-value adding processes
 Make process and problems visible.
 Highlights Supplier, Input, Process, Output and Customers
(SIPOC).
 Is a qualitative tool for identifying and eliminating waste.
 Aligns organizational processes, create sense of
teamwork/Ownership.
 Focuses on maximizing overall flow.

 VSM is not just about creating one map; it is about
discovering where we are today with a current value
stream map and using the team to create an ideal
state value stream map as a target to aim for whilst
creating a series of future state maps to work
towards on the journey to our ideal state.
 We need value stream mapping to create a common
vision and direction for our company
 Value Stream Mapping serves three main purposes:
• Identify waste.
• Reduce manufacturing time.
• Make entire manufacturing process more efficient.

VSM Principles:
 Diagnostic Tool
• Reveals hidden symptoms of larger problems
 Strategic Planning Activity
• Helps prioritize opportunities for improvement
• Result in an implementation plan
 Macro-Level Visual representation
• Information flow
• People and Material flow
• Each process block represents a handoff or a break in the
timeline
 Contains Relevant Metrics
• Lead time: Throughput / turnaround / flow time
• Cycle time: touch / process time

Benefits:
 Gives opportunity to understand what
happens today
 Help discussing the needed
improvements
 Enables to see the big pictures from
beginning to end
 Enables to see where problems lie
within processes:
• Non-value added activities
• Delays
• Rework
• Bottlenecks
• Excessive inventory levels
• Other forms of waste
 Helps establishing a future state vision

 Continuous Flow is the opposite of batch production and is
closely associated with Kanban and Just-in-Time.
 The goal of Continuous Flow is to use ongoing examination and
improvement to integrate all elements of production.
 By aiming for a Continuous Flow production process, waste and
other problems come to the surface and can then be solved.
 Ultimately, many lean principles and tools center around
creating a Continuous Flow production process.
 The Continuous Flow process generally involves a factory
running 24/7 without interruption and with little waste.
 Areas like oil refining, metal smelting, and natural gas processing
are ideal for the Continuous Flow process.
 The paradigm aim is to achieve single-piece flow where a single
discrete unit of product flows from process to process.

The benefits of Continuous Flow include:
 Stability.
 Continuity.
 Waste-less process.
 No time wasted.
 Low cost of production.

21. Lean Audit
A Lean Audit is a tool used to determine how well lean manufacturing principles
are working in a factory or company.

 A Lean Audit generally has 5 steps:
1. Identify the objective of your audit. This involves determining
what lean processes you are already using and coming up with
metrics to decide how well they are working. The goal of a lean
audit should be to improve overall efficiency, reduce waste,
and lower production costs.
2. Determine who will conduct the audit. Lean Audits are best
performed by a third party team in order to ensure objectivity,
however, senior management may choose to conduct the audit
internally.
3. Create a point system to measure progress.
4. Use a system to perform the audit. Ideally, a Lean Audit will be
performed using lean principles.
5. Follow up with the audit to ensure that all problems get fixed.
Ideally, Lean Audits should be performed on a small-scale
monthly and on a large-scale yearly.

 SMED stands for Single-Minute Exchange or Die.
 The goal of SMED is to get all changeovers and startups
down to 10 minutes.
 Each step should be one minute or less.
 By reducing setup time, factories can greatly improve
efficiency.
 SMED as invented by Frederick Taylor in 1911 and was later
used by Ford Motors in 1915.
 It provides a rapid and efficient way of converting a
manufacturing process from running the current product
to running the next product.
 This rapid changeover is key to reducing production lot
sizes and thereby improving flow (Mura), reducing
production loss and output variability.
22. SMED

Amount of time taken to change a piece of equipment
from producing the last good piece of production lot to
the first good piece of the next production lot.

SMED Process:
• Observe the current methodology
• Separate internal and external activities
• Identify the task which can be eliminated
• Convert maximum internal activities to external
activities
• Streamline the remaining Internal activities
• Streamline external activities
• Document the new procedure and the actions that are
yet to be completed
• Do it all again

Benefits of SMED
• Become more competitive
• Improve customer service
• Experience fewer shortages and
stock outs
• Improve machine efficiency and
level out production
• Reduced overall cost of quality
• Increase manufacturing process
flexibility and capacity
• Improve inventory turnover
• Improve cash flow
• Increase equipment uptime
• Reduce indirect cost

 Right First Time is a lean philosophy that stresses
getting processes right the first time, every time. The
concept involves planning and a deep understanding
of manufacturing processes.
23. Right First Time

 Right First Time has 3 primary steps:
• Track performance : The first step of Right First Time is
figuring out how often you’re getting your manufacturing
processes right the first time. Search for areas in the
manufacturing process where things do not go smoothly the
first time around. By identifying the problems, you can figure
out where your manufacturing processes need work.
• Improve performance with a systematic process : Often, the
biggest problem manufacturers have is human error. The
more systematic a process becomes, the more likely you can
get things right the first time.
• Identify areas of waste and use the Right First Time tool to
cut them out. Main areas to focus on include inventory,
overproduction, defects, and transportation.

 Waste: Everything that increases production cost
without adding value to what is being produced.
 Value-added: Anything that the customer wants and is
willing to pay for it.
 Non-value-added: Anything that the customer doesn’t
wants and wont pay for it.
 7 Wastes refers to seven typical places manufacturers
have waste
“Customer only pay for those things that he/she needs and its
useful for them, any other thing we do is WASTE”
24. 7 Wastes

Types of Waste
1. Transportation:
• Transport waste is
material movement
that is not directly
associated with a value
adding process.
• Poor layouts, Complex
material handling
system, Large batch
sizes and multiple
storage locations cause
transportation waste.

2. Inventory
• Stock waste space and
effort
• Inventory waste is the
stock and work in
process in excess of
the requirement
• Excess inventory
caused by; Lack of
balance in work flow,
large batch sizes,
incapable processes,
Long changeover time.

3. Motion
• Waste of motion is any
motion of man or
equipment that does
not add any value to
product or service.
• It is caused by; Poor
workstation layout,
Poor method design,
Large batch sizes
• So work smarter not
harder

4. Waiting
• Waste of waiting is any
idle time produced when
two interdependent
processes are not
synchronized
• It results from; Poor
man/machine
coordination, Long
changeovers, Unreliable
processes/quality, batch
type production, time
required to perform
rework.

5. Overproduction
• Is the mother of all
waste, it causes other
waste and obscures the
need for improvement.
• Producing more than
requirement
• It is caused by; Large
batch size, Unreliable
processes, unstable
schedules,
• Avoid overproduction by
balancing supply to
demand.

6. Over-processing
• Over processing is
putting more into
product than is valued
by customer
• The goal is to do only
level of processing to
match that which is
useful and necessary
• Clear, standardize
instructions to avoid
over-processing

7. Defects
• Waste of defect meant to
additional work
performed on product or
service
• Caused by unclear
operating procedures,
inadequate training, skill
shortages, incapable
processes, operator
error, excessive stock,
transportation
8. Utilized manpower

 Six Big Losses refers to the six most common reasons
for ineffective production.
 TPM and OEE are generally used to eliminate the Six
Big Losses
25. Six Big Losses

 Breakdowns: Refers to machine failure and need for
intensive maintenance. This is amount of time lost at
the bottleneck machine due to large stops (typically >
5 min) on any machine.

 Setup/Adjustment: Refers to changeover and
machine warm up. This is the period of time between
the last piece from one product run and the first piece
of next product run.

 Idling or Minor stoppages: Idling refers to jams,
obstructions, and cleaning. Less than 5 min
stoppages.

 Speed Loss: Refers to operator efficiency and
machine wear down. When machines/critical
machines running below its rated speed.

 Quality Defects:
 Defects in process and rework, product damages and
need for corrections.
 Quality loss on startup period after a changeover when
setting need final adjustments to bring the product into
exact specification to enable running.

 Startup Losses: It refers to losses refers to improper
assembly and losses due to product defects.

 SMART Goals is a method to set goals in a productive
manner.
 In order to effectively use lean manufacturing
methods, management must set proper goals strive
for.
 Ideally, those goals should be clearly defined and
communicated.
 Powerful tool to define or refine your manufacturing
journey.

In order for a goal to be achieved it should be:
 Specific: A goal should be concrete and based on actual
facts and figures.
 Measureable: Results must be quantified with clear
numbers.
 Attainable: Goals should be attainable and not too
ambitious. Impossible goals hurt employee morale.
 Realistic: Similar to attainable, goals must be set in a
realistic way based on available resources and time.
 Time based: Goals must be given a due date that is
realistic based on available resources.

 KPI is an acronym for Key Performance Metric and it refers to
metrics used to assess and analyze manufacturing efficiency.
 KPI’s are essentially metrics set by management in order to
measure the success of lean manufacturing goals.
27. KPI’s

 It is a set of quantifiable measures that a company or
industry uses to gauge or compare performance in
terms of meeting their strategic and operational
goals.
 Improve personnel’s awareness of maintenance
performance.
 KPI’s are directly linked to the overall goals of the
company.
Business
Objectives
Key Success
Factors (KSFs)
Key
Performance
IndicatorsDetermine Tracked By

 Some common manufacturing KPI’s include:
• Speed: Measuring speed is essential for increasing efficiency
and profits.
• Count: This refers to the amount of product produced.
• Reject Ratio: Manufacturing processes sometimes produce
scrap so reducing scrap is essential for increasing
productivity.
• Takt Time: This can refers to the amount of time it takes to
produce a product or one specific operation. Measuring this
can help identify where there are bottlenecks or constraints
in the manufacturing process.
• Downtime: Breakdown or machine changeover often cause
downtime. Lean seek to reduced downtime as much as
possible.

 Why Use KPI’s
• Performance effectiveness.
• For accuracy, actual reflection of the process, efficacy in
delivering the outcome.
• Effects of change in processes can be monitored /
identified easily.
• Detect potential problems and it can drive
improvement.
• A KPI can be used to closely monitor the results of
actions.

28. 5S Methodology
5S Method refers to five
Japanese and English
terms that begins with an
“S” and provide
workplace organization
method.

 What does each ‘S’ stands for
• Sort (Seiri): Decide which items in factory are necessary
and which ones are not. Get rid of that ones which are
not needed.
• Set In Order (Seiton): Make sure every item in factory is
in the right place. Items should be easy to find and
access. ‘Everything has a place & Everything at its place’.
• Shine (Seiso): Clean factory regularly. By getting rid of
dirt, garbage etc. You can more easily identify problems
in the manufacturing process.
• Standardize ( Seiketsu): Create standards to ensure
clean and neat factory floor.

• Sustain (Shitsuke): Create habits that ensures standards
are met over long term.
• Safety: It is an integral part of the each of the original 5S
phases. The main benefit of 6S over the benefits of 5S is
that added focus on safety, used in areas with more
hazardous processes it can help to reduce even further
the risk of an incident.

 Benefits of 5S:
• Reduce non-value adding activity
• Reduce mistakes from employees and supplier
• Reduce time for employee orientation and training
• Reduce search time
• Reduce inventory carrying cost
• Improve floor space utilization
• Improve employee safety and morale
• Improve product quality

A3 problem solving is a problem solving method that uses a
structured, continued growth methodology to improve
manufacturing practices. This method was invented by Toyota and
is based on work of Edward Deming.
29. A3 Problem Solving

Steps of A3 process:
1. Identify your problem
2. Capture current state of the situation:
• Observe the work processes first and document
• Write and go through each step in your process
• If possible; quantify your data or graph your data,
visualization are really helpful.
3. Conduct a root cause analysis
4. Think through your countermeasures: Ideas for
tackling the situation.
5. Define your target state: Communicate your target
state through process map.

6. Develop plan for implementation: Task list,
responsibility and due date for work.
7. Develop a follow up plan with predicted outcomes
8. Get everyone on board: The goal for any systemic
improvement is that it improves every part of the
system. This is why it’s vital to include everyone who
might be affected by the implementation or the target
state in the conversation before changes are made.
9. Implement: Follow the implementation as discussed,
observing opportunities for improvement along the
way.
10. Evaluate results: If your actual result vary greatly from
what was expected, do research to figure out why.

Benefits of A3:
• Focused: Allows the team to identify the critical
elements of the problem.
• Highly Visible: used to communicate progress.
• Collaborative: Encourages cross functional dialogue and
action.
• Disciplined: Uses standardize formats and processes.
• People centric: Built in PDCA learning cycle.
• Reflective: places emphasis on reflection and problem
solving.
• System mindset: helps develop a disciplined, system
thinking and acting culture.

PDCA stands for Plan-Do-Check-Act and is a four step method
for creating and carrying out change. It is a cycle and
repeated over and over again in order to drive continuous
improvement.
30. PDCA

PDCA is primarily used when;
• Conducting improvement project
• Designing repetitive work process
• Developing a new process or product design
• Implementing changes in the manufacturing process.
PDCA steps include;
• Plan: Find the area that needs improvement and plan a
change.
• Do: Test the change on a small-scale.
• Check: Check how the test went by analyzing results
• Act: Take actions based on what you have learned. Use
your failures to determine where you will go next.

Advantages of PDCA;
• Defines a systematic, simple, yet effective way to solve
problems and achieve process improvement.
• Focuses on defining and solving the root cause(s) of
problem, instead of attempting to correct symptoms.
• Prevent devising unnecessarily costly solutions.
• Develop a standardize procedure for the improved
process.

 Standardized work is a tool used to document current best
practices, improve the standard and ensure that the new
standard becomes a baseline for improvement.
 As the standard is improved, the new standard becomes
the baseline for further improvements, and so on.
 Improving standardized work is never ending process.
 Standardized Work improves 3 important aspects of the
manufacturing process:
• The rate at which products are produced in order to meet
customer demand.
• The operator’s work sequence to produce products at that
time rate.
• The standard inventory needed to ensure a smooth
manufacturing process.
31. Standardized Work

The main benefits of Standardized Work include:
• Better documentation of current processes.
• Easier training for operators.
• Few injuries and strains.
• Baseline to make improvements.
• Reduces variability.
• Adds discipline to a work culture.
• Promotes problem solving.
• Increases teamwork across organization

Three Documents of standardize work:
1. Production Capacity Sheet
2. Standardized combination sheet
3. Standardized work chart

 5 whys is a lean method used to
determine the root cause of the problem.
 Mangers repeat the questions ‘why’ and
each answer form the basis for next
question.
 This process continues until a conclusion
is reached.
 The 5 why technique generally requires
persistence and determination for it to
work effectively.
 It is a technique used in the analyze
phase of the six sigma DMAIC
methodology.
32. 5 Whys

In order to properly perform 5 whys, managers should follow
a variety of rules:
• Use paper or whiteboard not laptop
• Clearly define a problem and make sure every team members
understand it.
• Use a step by step process to find the root cause, avoid
jumping to conclusions.
• Identify what the causes are, not the symptoms.
• Use logic, not emotions.
• Focus on making sure answers are as precise as possible.
• Use customers point of view when answer the ‘why’.
• Facts and knowledge should be the basis for each answer.

 Benefits of 5 why;
• Help identify the root cause of a problem.
• Determine the relationship between different root
causes of problems.
• One of the simplest tool; easy to complete without
statistical analysis.
• It truly helps to quickly separate symptoms from causes
and identify the root cause of a problem.

 Empowered team are self-sufficient groups of people
working together with specific goals.
 They have the corporate authority, experience,
responsibility and skills to enact their own decision
for the organization.
 Management focuses on developing employees and
supporting the organizational goals.
 The employees are committed to and responsible for
organizational goals.
 Object is to maximize the use of everyone's talents.
33. Empowered Teams

 Empowered teams can fall into following categories;
• Project Teams: These cross functional teams work on a
project for a given time period. This type of teams
comprises of employees from all department.
• Total customer satisfaction teams: These teams address
customer and business issues. They work from premise
that creativity, intelligence and perspective exist in all
employees. This can include many functions, involve
customer and supplier.
• Work unit teams: These teams work together on day-to-
day basis. They focus on the primary output of their
work unit.

In order for true teams to be fully implemented and
successful, seven key characteristics must exist;
• A need, purpose or objective
• Changes in culture
• Communication
• Empowerment authority and autonomy
• Management support
• Time
• Training

Benefits of empowered teams
• Broad range of skills
• Workload sharing
• Increased flexibility
• Synergy (Co-operation)
• Increased organizational learning
• Balanced decision making

 A manufacturing approach in which equipment and
workstations are arranged to facilitate small lot,
continuous flow production.
 It is a process that produces families of part within a single
line or cell of machines.
 Cellular manufacturing is actually an application of group
technology.
 The objective of cellular manufacturing is to design cells in
such a way that some measure of performance is
optimized.
 Cellular manufacturing is a hybrid system that links the
advantages of a job shop with the product layout of the
continuous flow line.
34. Cellular Manufacturing

 This approach facilitates continuous flow of production.
 It provides flexibility to produce variety of low demand
products.
 It is suitable for medium variety and volume.
Impact on workers
• Self management
• Motivation
• Employee input
• Supervision
• Group cohesiveness

Advantages:
• Reduced material handling and transit time
• Reduced setup time
• Reduced work in process inventory
• Better use of human resources
• Less floor space required
• Reduced direct labor
• Increased use of machine and equipment's
• Shorter flow time
• Reduced raw material and finished good inventory

Disadvantages
• Sometimes it is hard to form cell for inadequate part
families.
• Sometimes Cost of implementation is high.
• Inadequacy in employee education, training &
involvement could come in the way of proper
implementation.

 A pull system is a Lean technique for reducing the
waste of any production process.
 Applying a pull system allows you to start new work
only when there is a customer demand for it.
 This gives you the opportunity to reduce overhead
and optimize storage costs.
 A method of controlling the flow of resources by
replacing only what has been consumed.
 Eliminating waste of handling, storage, repair,
rework, excess inventory.
 Provides visual control of all resources.
35. Pull System

Benefits:
• Increases employee involvement
• Allows decision making at appropriate levels
• Allows manufacturing of only needed by customers
• Improves communication of customer needs through
visual controls
• Provide common system for material movement
through plant
• Eliminates scheduling complexities
• Reduce lead time and work in process inventory
• Highlights quality issues quickly

• Reduce waste of resources
• Increase productivity
• Improve flow efficiency.

 Plant layout is most effective physical arrangement,
either existing or in plans of industrial facilities.
 It refers to the arrangement of physical facilities such
as machines, equipment's, tools furniture etc. in such
a manner so has to have quickest flow of material at
the lowest cost and least amount of handling in
processing the product from receipt to final delivery.
 It achieves greatest co-ordination and efficiency of 4
M’s (Men, Material, Machine and Methods) in plant
36. Plant Layout

 Objectives of good plant layout
• Proper and efficient utilization of available floor space.
• Transportation of work from one point to another point
without delay.
• Proper utilization of production capacity.
• Reduce material handling costs
• Utilize labour efficiency
• Reduce accidents
• Provide for volume and product flexibility
• Provide ease of supervision and control
• Provide for employee safety and health
• Allow easy maintenance of machine and plant
• Improve productivity

Factors affecting plant layout:
• Man Factor: Safety and working condition for man
force, skill levels of workers, man power utilization in
the plant and human relations affect the design.
• Material factor: It includes the various input materials
like raw materials, semi finished parts, in process scrap,
finished products tools and other required material. Also
design and specification of products, quantity and
variety of product and components parts i.e. how they
go together to generate the final product.
• Machinery factor: All information regarding equipment
and the tools are necessary for inspection, processing
and maintenance.

• Movement factor: It mainly deals with the movement of
men and materials. A good layout should ensure short
moves and should always tend towards completion of
product. It also includes interdepartmental movements
and material handling equipment's.
• Waiting factor: Whenever material or men is stopped,
waiting occurs which cost money. Waiting cost include
handling cost in waiting area, money tied up with idle
material. Waiting may occur at the receiving point,
materials in process, between the operations.
• Service Factor: It includes the activities and facilities for
personnel such as fire protection, lighting, heating and
ventilation etc.

Services for material such as quality control, production
control, services for machinery such as repair and
maintenance and utilities like power, fuel/gas and water
supply.
• Building factor: It includes inside and outside building
features, shape of building, type of building.
• Flexibility Factor: This includes consideration due to
changes in material, machinery, process, man,
supporting activities and installation limitations etc. it
means easy changing to new arrangements or it
includes flexibility and expendability of layouts.

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