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Lean thinking - Management Topic from myBskool
Faculty - S. Thirumalai
Lean Management in Online Management (MBA) courses in India
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2. Lean is a Health Care
Programme for Organization
Like any Health Care programme for individuals
wherein Techniques are designed to burn out “Fats”
for an individual, Organizations also have “Fats” which
are referred as non-value added activities which are
needed to be eliminated.
3. Lean Management Definition
A Strategy for achieving Significant Continuous
Improvement in performance through the
Elimination of all wastes of all Resources including
Time.
4. What really “Lean Management”
want to achieve
“Lean production is lean because it uses less of
everything compared with mass production
half the human effort
half the manufacturing space
half the investment in tools
half the engineering hours to develop a new product in half
the time.
Also it requires keeping far less than half the
needed inventory on site, results in many fewer
defects, and produces a greater and ever-growing
variety of products.”
4
5. Lean Approach
5
• Identifying Waste
• Process Mapping using Value Stream Mapping
• Identifying Overall Equipment Effectiveness
• Reduction in Set up time (SMED), Quick Changeover (SMED)
• Standardized Work
• Levelled Production
• Pull Scheduling (Kanban)
• Team Development
• Cellular Production
• Error Proofing (Poka Yoke)
• Visual Controls, 5 S
• Total Productive Maintenance
7. Lean Manufacturing Characteristics
7
• Made to order
• Single piece production
• Just in Time supplies
• Pull based scheduling
• Short cycle times
• Highly flexible equipment
• Highly flexible and responsive processes
• Quick changeovers
• Continuous flow (work balancing, cells)
• High first-time right
• Significantly less defects
• Multi-skilled employees
9. 1. On-Time delivery
2. Improved response
3. Reduced inventory
4. Improved quality
5. Improved workflow
6. Achievement of flexibility
7. Cultural change
8. Better Delegation
9. Better use of plant
WHY COMPANIES INTRODUCE LEAN
10. 10. Better use of skilled labor
11. Job satisfaction
12. Quick Information Flow
13. Less Transactions
14. Less Variation, “More” Predictability
15. Forecasts Become More Accurate
16. Quicker Response To Design Changes
17. Quicker Market Response
18. Problems Are Visible
19. Product Team Organization - Eliminates
Departmental Conflicts
WHY COMPANIES INTRODUCE LEAN
11. Lead Time Reduction
Productivity Increase
WIP Reduction
Quality Improvement
Space Utilization
0 25 50 75 100
Percentage of Benefits Achieved
12. 4 P’s of LEAN
Problem Solving
· Continual organizational learning through Kaizen
· Go see for yourself to thoroughly understand the system(Genchi Genbutsu)
· Make decisions slowly by consensus thoroughly considering all options; implementing rapidly
People and Partners
· Grow leaders who live the philosophy
· Respect, develop and challenge your people and teams
· Respect challenge and help your suppliers
Process
· Create process ‘flow’ to surface problems
· Use pull system to avoid over production
· Level out work load (Heijunka)
· Stop when there is a quality problem (jidoka)
· Standardize tasks for continuous improvement
· Use visual control so no problems are hidden
· Use only reliable, thoroughly tested technology
13. 4 P’s of LEAN
•Philosophy
• Base management decisions on a long term
philosophy; even at the expense of short term
financial goals
• ‘The need for fast, flexible processes that give
customers what they want, when they want it,
at the highest quality and affordable cost’
14. LEAN RULES
• Principle 1
Base your management decisions on a long term
philosophy, even at the expense of short-term
financial goals.
• Principle 2
Create continuous process flow to bring problems
to the surface
• Principle 3
Use pull systems to avoid over-production
15. LEAN RULES
• Principle 4
Level out the workload (heijunka). (Work like the tortoise
and not the hare)
• Principle 5
Build a culture of stopping to fix problems, to get quality
right the first time.
• Principle 6
Standardized tasks are the foundation for continuous
improvement and employee empowerment.
16. LEAN RULES
Principle 7
• Use visual control so no problems are hidden.
Principle 8
Use only reliable, thoroughly tested technology
that serves your people and processes.
Principle 9
Grow leaders who thoroughly understand the
work, live the philosophy, and teach it to others.
17. LEAN RULES
Principle 10
Develop exceptional people and teams who follow
your company’s philosophy.
Principle 11
Respect your extended network of partners and
suppliers by challenging them and helping them
improve.
Principle 12
Go and see for yourself
18. LEAN RULES
Principle 13
Make decisions slowly by consensus,
thoroughly considering all options;
implement decisions rapidly (nemawashi). to
thoroughly understand the situation (genchi
genbutsu).
Principle 14
Become a learning organization through
relentless reflection (hansei) and continuous
improvement (kaizen).
