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lean production
- 3. INNOVATIVE PRATICES IN GLOBAL BUSINESS ON 5TH FEBRUARY 2013
- 4. INTRODUCTION ï‚— WHAT IS LEAN MANUFACTURING? LEAN PRODUCTION IS AN INTEGRATED SET OF ACTIVITIES DESIGNED TO ACHIEVE PRODUCTION USING MINIMAL INVENTORIES OF RAW MATERIALS, WORK IN PROGRESS, AND FINISHED GOODS. LEAN IS ALSO BASED ON THE LOGIC THAT NOTHING WILL BE PRODUCED UNTIL IT IS NEEDED.
- 5. BREAK THROUGH MOMENTS OF LEAN 1500-flow production 1780-concept of interchangeable parts 1799-automatic production of simple parts 1822-automatic production of complex parts 1860-high volume interchangeable parts 1880-moving dissembly line 1890- Scientific management 1902-invention of jidoka 1908-truly interchangeable parts 1913-1914- moving asssembly line with parts fabrication 1924-quick changeovers 1926-mass production 1930-take time 1937-Just In Time 1941-1945- training within industry 1950-kanban and supermarkets 1960-Lean Management 1965-quality as a key element 1973-mass production management 1979-first academic investigation 1983-direct diffusion 1987-Lean Introduced 1990-book published to show evidence of the complete system 1996-description about lean principles 1997-lean enterprise institute promotes lean principles 1998-value stream maps 2005- lean thinking to 2007- lean as no.1
- 7. LEAN GOALS AND STRATEGIES ï‚— IMPROVE QUALITY ï‚— ELIMINATE WASTE ï‚— REDUCE TIME ï‚— REDUCE TOTAL COSTS ï‚— LEAN AS A FIXED STATE/GOAL ï‚— LEAN AS A CONTINOUS CHANGE PROCESS ï‚— LEAN AS A SET OF TOOLS OR METHODS ï‚— LEAN AS A PHILOSOPHY
- 8. MODEL OF LEAN IMPLEMENTATION PROCESS
- 9. GLOBAL BUSINESS ï‚—Global business consists of transactions that are devised and carried out across national borders to satisfy the objectives of individuals, companies, and organizations. ï‚—Primary types of international business are import export trade and foreign direct investment (FDI).
- 11. IMPACTS IN VARIOUS FIELDS
- 13. GROWTH PROJECTION FOR INDIA’S AUTO INDUSTRY
- 14. SUNDARAM CLAYTON’S EXPERIENCE INTRODUCED TQM IN 1980’S WHICH IS PART OF LEAN AND ENJOYED THE FOLLOWING BENEFITS, QUALITY CONTROL AND QUALITY ASSURANCE INCREASE ITS MARKET SHARE INCREASE ITS PROFIT PRODUCTIVITY OF WORKERS INCREASED GAINED BUSINESS FROM OVERSEAS AWARDED DEMING PRIZE FOR QUALITY IN 1998
- 15. IMPROVEMENT IN BAJAJ AUTO SIGNIFICANT GAINS ENJOYED ARE, WORKFORCE PRODUCTIVITY RAISED 10 TIMES ABLE TO REDUCE INVENTORYFOR, RAW MATERIALS FROM ONE WEEK TO HALF A SHIFT STOCK FINISHED GOODS FROM ONE MONTH TO 3 DAYS NO OF REJECTED ITEMS WAS REDUCED FROM 20,000 PPM TO LESS THAN 2,000 PPM(Part Per Million)
- 16. IT SECTOR
- 17. WIPRO LIMITED
- 19. GOODRICH MARITIME(P)LIMITED ï‚— IMPLEMENTED ON 1995 ï‚— IDENTIFIED AND IMPLEMENTED POLLUTION PREVENTION AND PROCESS IMPROVEMENT TECHNIQUES ï‚— ELIMINATE WASTED WORKER MOVEMENT ï‚— REDUCED CHEMICAL USE
- 21. PHARMACEUTICAL INDUSTRY ï‚— PROCESS ANALYTICAL TECHNOLOGY ï‚— QUALITY BY DESIGN ARE IMPLEMENTED ï‚— IMPROVE PRODUCTIVITY ï‚— SOME REGULATORY HURDLES ARE THERE TO IMPLEMENT LEAN WHICH SHOULD BE AVOIDED ï‚— CONSERVATIVE THINKING SHOULD BE THERE TO INTRODUCED LEAN ALONG WITH RULES AND REGULATIONS
- 23. SPICER AXLE DIVISION OF DANA CORPORATION INITIAL TUBE LINE LAYOUT NEW TUBE LINE CELL LAYOUT
- 24. EFFECTS AFTER IMPLEMENTATION ï‚— WIP DECREASED BY 97% ï‚— PRODUCTION INCREASED 72% ï‚— SCRAP WAS REDUCED BY 43% ï‚— MACHINE UTILIZATION INCREASED BY 50% ï‚— LABOUR COSTS WERE REDUCED BY 33% ï‚— SIGMA LEVEL INCREASED FROM 2.6 TO 2.8
- 25. SERVICES SECTOR
- 26. Services Corporate Used Benefits enjoyed Organize problem solving groups First Bank/Dallas Standard Meat Company Miller Brewing company British Airways  To improve services  To implement new service practices Upgrade House Keeping Mc Donald’s Disney Land Speedi-Lube  Service processes work better  Continuous improvement easier to develop  Customer satisfaction Upgrade Quality Mc Donald’s  Provides better services and produces quality products and services consistently Clarify process flows Federal Express Corporation  By changing the process it achieved first place in air Freight. Revise equipment and process technologies Speedi-Lube  To perform a wider range of operations without reducing the operation room availability
- 27. Levelthefacilityload McDonald’s Retailstores  Synchroniesproductionwithdemandandgainedcustomer satisfaction Eliminateunnecessary activities Speedi-Lube  Reengineeringtoimprovetheprocessconsistency  Toreducethetimetoperformthetasks Throughwhichtheyincreasedtheirgoodwill. Reorganizephysical configuration Speedi-Lube  Theyorganizemicroclinicsinsidethehospitalssothatthey neednotroutepatientsalloverthehospitalsforvarioustests. Introducedemandpull scheduling Wendy’srestaurants.  Cookswillputhamburgerontothegrill,whenthecaris enteredintotherestaurantsothatitwillbereadyintheir tableevenbeforeordering.Thisgainedmanycustomersto therestaurants.
- 28. RISKS IN LEAN PRODUCTION ï‚— HIGH COST OF IMPLEMENTATION ï‚— LACK OF ACCEPTANCE BY EMPLOYEES ï‚— HEAVY INVESTMENT NEEDED AT INITIAL STAGE
- 29. CONCLUSION ï‚— TO BE SUCCESSFUL IN LEAN IMPLEMENTATION MANAGERS SHOULD HAVE COMPLETE UNDERSTANDING ABOUT LEAN. ï‚—LEARNING, ï‚—EFFICIENCY TO IMPLEMENT ï‚—AMBITIOUS FOR IMPROVEMENT ï‚—NEEDED FOR IMPLEMENTING LEAN.