Lean production system

2. HISTORY OF
LEAN MANUFACTURING

4. HISTORY OF LEAN MANUFACTURING
1850 to 1890 EliWhitney Interchangeable parts
1878 FrederickW.Taylor Scientific Management
1904 Frank Gilbreth
Motion Study and Process charts
1908 Henry Ford Just In Time and Lean
Manufacturing.
1945 to 1970
Ishikawa, Edwards
Deming Toyota Production System (TPS)
1949 to 1975 Shingo, Ohno Quality movement
1980
Omark Industries, GE
& Kawasaki Manufacturing system
1990 to today Industrial Engineers Lean Manufacturing

7. MISSION
Improve the quality, cost and delivery of
manufacturing firms to improve their competitiveness
by understanding and implementing lean enterprise
business systems based on TOYOTA PRODUCTION
SYSTEM model.

8. VALUE - what customers are willing to pay for
VALUE STREAM - the steps that deliver value
FLOW - organizing the Value Stream to be continuous
PULL - responding to downstream customer demand
PERFECTION - relentless continuous improvement (culture)
--- Lean Thinking,Womack and Jones, 1996
KEY PRINCIPLES OF LEAN THINKING
LEAN THINKING

9. DEFINING LEAN
A systematic approach to identifying and eliminating
waste (non-value added activities) through continuous
improvement by flowing the product at the pull of the
customer in pursuit of perfection.
Lean is:

10. LEAN GOALS - TRUE NORTH
! Zero defects
! 100% value-add
! Lot size of one
! Pull of the customer

11. WHY BECOME LEAN?
! Eliminate Waste
! Improve Customer Satisfaction
! Increase Sales and Profits
! Insure Long-term Health of Company
! Survival
! Create Sustainable Competitive Advantage

12. Lead Time Reduction
Productivity Increase
WIP Reduction
Quality Improvement
Space Utilization
0 25 50 75 100
Percentage of Benefits Achieved
TYPICAL RESULTS FROM LEAN CONVERSIONS

13. • Manufacturing
" Automotive
" Industrial Products
" Furniture
" Textiles and Apparel
" Printing and Packaging
" Consumer Products
• Service Industries
• Military
• Healthcare
WHERE HAS LEAN BEEN SUCCESSFULLY
IMPLEMENTED?

14. VALUE ADDED/NON-VALUE ADDED
VALUE-ADDED:
Any activity that physically changes the material being worked on (not rework/
repair!)
✓ Machining Knitting
✓ Drilling Spreading/Cutting
✓ Assembly Dying
✓ Painting Sewing
NON-VALUE ADDED:
Any activity that takes time, material, or space but does not physically change
the material
✗ Sorting ✗ Stacking
✗ Counting ✗ Checking

15. 8WASTES
# Overproduction
# Excess inventory
# Defects
# Non-value added processing
# Waiting
# Underutilized people
# Excess motion
# Transportation
Typically 95% of Total Lead Time is Non-Value Added!!!
Value added
5%
Non-value added
LEAN = ELIMINATING THEWASTE

17. KEYS TO SUCCESS
! Focus on the goal- eliminate waste!
! Gather baseline information and measure results
! Get everyone involved
! Keep it simple

19. 14 PRINCIPLES OF
LEAN

20. • Continuous organization learning via Kaizen
• Go see for yourself
• Make decisions slowly by consensus
PROBLEM-
SOLVE
• Grow leaders who live the philosophy
• Respect, develop and challenge people
• Respect, challenge and help suppliers
PEOPLE
• Create ‘flow’
• Standardize Tasks
• Use pull systems and visual control
PROCESS
• Base management decisions
on long-term philosophyPHILOSOPHY
LEAN FOUNDATION
L E A N : 4 P M O D E L

21. LEAN FOUNDATION
• LEAN can demonstrate how managers can
dramatically improve their business
processes by:
– Eliminating wasted time and resources.
– Building quality into workplace systems.

22. – Finding low-cost, but reliable alternatives to
expensive new technology.
– Perfecting business processes.
– Building a learning culture for continuous
improvement.
LEAN FOUNDATION

23. ELIMINATING WASTE (MUDA)
• The first step in identifying waste is to identify those
processes or procedures that add value.
– This is accomplished by creating a value stream map that
shows every step in a process with details as to how the
step is accomplished and the time it takes to accomplish
the step.

24. • To help in finding waste, we want to map the value
stream.
– It is best to walk the actual path to get the full effect.
– Draw this path on the layout, and calculate the time and
distance traveled.
– This resulting drawing is called a SPAGHETTI diagram.
ELIMINATING WASTE (MUDA)

25. THE LEAN HOUSE

26. THE LEAN HOUSE
• The house also has foundational elements like
standardized, stable processes, and heijunka
(leveling out the production schedule).
• Each element house is important, but more so is the
synergy created by all the elements together.
• At the foundation of the house there is stability.

27. 14 PRINCIPLES OF LEAN

28. 14 PRINCIPLES OF LEAN
LONG TERM PHILOSOPHY
PRINCIPLE 1:
$ Base your management decisions on a long-term
philosophy, even at the expense of short-term financ
goals.
– Do the right thing for the customer.
– Strive to build trust with your employees.

29. 14 PRINCIPLES OF LEAN
THE RIGHT PROCESSWILL PRODUCE THE RIGHT RESULTS
PRINCIPLE 2:
$ Create continuous process flow to bring problems to
the surface.
– Redesign work processes to achieve high value-added,
continuous flow.
– Strive to eliminate the amount of time that any work project
is sitting idle or waiting for someone to work on it.

30. 14 PRINCIPLES OF LEAN
THE RIGHT PROCESSWILL PRODUCE THE RIGHT RESULTS
– Most business processes are 90% waste and 10% value-added work.
• Strive to eliminate the waste from every process. Begin by
eliminating the mass production mindset of batch & queue.
– Takt time is the heart beat of one-piece-flow.
• Takt is a German word for rhythm or meter; it is the rate of
customer demand—the rate at which the customer is buying
product.

31. 14 PRINCIPLES OF LEAN
THE RIGHT PROCESSWILL PRODUCE THE RIGHT RESULTS
This is an example of a metal machining process before and after
one-piece-flow was implemented.
BEFORE AFTER

32. 14 PRINCIPLES OF LEAN
ADDVALUE TO THE ORGANIZATION BY DEVELOPING LEADERS FROMWITHIN
PRINCIPLE 9:
$ Grow leaders who thoroughly understand the
work, live the philosophy, and teach it to others.
– Grow leaders from within instead of buying them from
outside the organization.

33. 14 PRINCIPLES OF LEAN
ADDVALUE TO THE ORGANIZATION BY DEVELOPING LEADERS FROMWITHIN
– Lean leaders:
• Understand the work
• Have the ability to develop, mentor, and lead people
• Are respected for their technical knowledge
• Realize that problems are opportunities for employee
development
• Seldom give orders
• Ask questions and get employee input.

34. – A company developing its own leaders and defining the
role of leadership as building a learning organization lays
the groundwork for genuine long-term success.
– Continually reinforce the company culture and train
exceptional people and teams to work within the culture
to achieve exceptional results.
14 PRINCIPLES OF LEAN
ADDVALUE TO THE ORGANIZATION BY DEVELOPING LEADERS FROMWITHIN

35. 14 PRINCIPLES OF LEAN
PUTTING FIRST HAND EXPERIENCE ABOVE ALL ELSE
PRINCIPLE 12:
• Go and See forYourself to Thoroughly
Understand the Situation—Genchi Genbutsu.
• Go to the place where the work is being done. Solve
problems and improve processes by personally observing
instead of relying or theorizing based on what others tell
you or what you see on the computer.

36. 14 PRINCIPLES OF LEAN
STRIVING FOR CONTINUOUS IMPROVEMENT
PRINCIPLE 14:
– Become a learning organization through
relentless reflection (hansei) and continuous
improvement (kaizen).
• Once you ve established a working process, use
continuous improvement tools to address inefficiencies
and apply counter-measures.

37. 14 PRINCIPLES OF LEAN
STRIVING FOR CONTINUOUS IMPROVEMENT

41. 7WASTES OF
LEAN
MANUFACTURING
! YOU MUST NOT IGNORE !!

42. 7 Popular Wastes of
LEAN
MANUFACTURING

43. 1.TRANSPORT

44. The transfer of goods
from one location to
another can be a waste
to TIME and CASH

45. 2. INVENTORY

46. PRODUCTS are LEFT in
INVENTORY before going out for
ACTUAL SALES which is a
WASTE of TIME and LABOUR

47. 3. MOTION

48. Stressful MOTION put UNWANTED
STRAIN on both the workforce and
machine with leads to LOST TIME
and PRODUCTIVITY.

49. 4.WAITING

50. Waiting for MACHINES to be
REPAIRED and for a QUERY to
be ANSWERED are WASTE of
PRODUCTIVE TIME

51. 5. OVER-PROCESSING

52. LARGE MACHINE slows down
work as every process requires
going through them and this leads
to SERIOUSWASTE

53. 6. OVERPRODUCTION

54. Making TOO MUCH or TOO EARLY
of PRODUCT that is NOT REALLY
REQUIRED leads to WASTEFUL
INVENTORY and TRANSPORT

55. 7.DEFECTS

56. ANY DEFECTS in the product lead to
POOR QUALITY – REPAIR leads to
WASTE of INVESTMENT.