1. Best Practices for SMEs
âImproving the Productivity using Lean
Manufacturing Techniquesâ
HASH MANAGEMENT SERVICES LLP
CHENNAI
www.businessense.in
2. Introduction to Hash Management Services LLP
ď Hash Management Services LLP works with manufacturing companies in the areas of Productivity
improvements, Inventory and Purchase Optimization, and Supply Chain Re-Engineering
ď Our areas of expertise are Lean Manufacturing Implementation covering 5S and other tools, Supply
Chain Management, Market Assessment and Detailed Project reports
ď Working on innovative ways to serve clients in the SME sector â through online training programs and
niche applications to monitor the businesses
ď More than 50 companies in the last 6 years across the following sectors:
ďĄ Auto Ancillaries
ďĄ Leather and Footwear Manufacturing
ďĄ Pumps
ďĄ Castings and Forgings
ďĄ Fabrication
ďĄ Electronic Components Manufacturing
ďĄ Medical Equipment Manufacturing
ďĄ Heavy Engineering www.hashllp.com
ďĄ Light Engineering www.businessense.in
3. Introduction to Lean Manufacturing
Lean Manufacturing
A set of Management practices originated in Japan, useful in eliminating
non-value added activities and improving the productivity in a faster and
efficient manner !
Š Hash Management Services LLP. 2013 www.hashllp.com
4. Lean Manufacturing
ď A systematic approach to identifying and eliminating waste (non-
value-added activities) through continuous improvement by flowing
the product or service at the pull of the customer.
Doing more and more with less and lessâŚ
Š Hash Management Services LLP. 2013 www.hashllp.com
5. Lean Manufacturing - Terms
Value Adding Non-Value Adding
Process: Process (Waste):
A process step that Process steps that take
transforms or shapes a time, resources, or
product or service which space, but do not add
is eventually sold to a value to the product or
customer. service.
In most cases VA is only 5%
Š Hash Management Services LLP. 2013 www.hashllp.com
7. Waste no: 1 - Waiting
Examples Characteristics
â˘Idle time in which no value â˘Person waiting for a machine
added activities take place â˘People watching machines run
⢠Person wait time â˘Machine or materials waiting
⢠Machine wait time for a person
⢠Material wait time â˘Lack of concern for equipment
breakdowns or downtime
â˘Long setup times
â˘Unbalanced operations
â˘Inconsistent work methods
Š Hash Management Services LLP. 2013 www.hashllp.com
8. Waste no: 2 - Transportation
Examples Characteristics
â˘Any unnecessary material â˘Multiple storage locations
movement that does not support â˘Multiple movement of material
the lean manufacturing system â˘Poor facility layout
â˘Return of materials not used in
â˘Conveyors production
â˘Forklifts
â˘Transfer Carts
â˘Movement between shops
Š Hash Management Services LLP. 2013 www.hashllp.com
9. Waste no: 3 â Over-Processing
Examples Characteristics
â˘Effort which adds no value to a â˘Process bottlenecks
product or service â˘Lack of clear customer
⢠Work that can be combined expectations
with other processes â˘Lack of customer input
⢠Enhancements that are concerning requirements
transparent to the customer â˘Redundant approvals
â˘Multiple Tests â˘Extra copies and excessive
â˘Parts Handling information
â˘Inspections â˘Inefficient policies and
procedures
Š Hash Management Services LLP. 2013 www.hashllp.com
10. Waste no: 4 â Inventory
Examples Characteristics
â˘Any unnecessary supplies or â˘Extra space on receiving docks
materials that do not support the â˘Build up of material between
âJust In Time Production processes
Systemâ â˘Long lead times for engineering
â˘Material on site (WIP) change
â˘Strategic Buys â˘Long Supply Channels
Š Hash Management Services LLP. 2013 www.hashllp.com
11. Waste no: 5 â Motion
Examples Characteristics
â˘Any movement of people which â˘Looking for tools and parts
does not add value to the â˘Excessive reaching or bending
product â˘Material too far apart (walk
time)
â˘Poor plant layout
Š Hash Management Services LLP. 2013 www.hashllp.com
12. Waste no: 6 â Defects
Examples Characteristics
â˘Repair of a product or service to â˘Extra floor space, tools and
fulfill customer requirements equipment
â˘Extra manpower to inspect,
â˘Warranty rework and repair
â˘Rework â˘Additional inventory
â˘Scrap â˘Questionable quality
â˘Lower profits due to scrap
â˘Incapable processes with
excessive variation
â˘Inadequate tools or equipment
Š Hash Management Services LLP. 2013 www.hashllp.com
13. Waste no: 7 â Over-Production
Examples Characteristics
â˘Producing more than needed â˘Inventory stockpiles
⢠âWork aheadâ â˘Extra or oversized equipment
â˘Producing at a faster pace then â˘Unbalanced material flow and
needed confusion about priority
â˘Extra parts storage racks and
â˘Stock manpower
â˘Over build of capacity â˘Build ahead of demand
â˘Unbalanced production â˘Large lot sizes or batch
processing
Š Hash Management Services LLP. 2013 www.hashllp.com
15. Bottleneck Process - Example
A B C
1 min 2 min 1 min
Output of the line after 1 hour = ?
Š Hash Management Services LLP. 2013 www.hashllp.com
16. Bottleneck Process - Example
A B C
1 min
X 2 min
X
1 min
30 Sec 45 Sec
Output of the line after 1 hour = ?
Š Hash Management Services LLP. 2013 www.hashllp.com
17. Bottleneck Process - Example
Bottleneck
Process
A B C
1 min 2 min 1 min
No No
use use
Unless we improve the
30 Sec bottleneck activity, the 45 Sec
throughput will not
increase
Š Hash Management Services LLP. 2013 www.hashllp.com
18. Focused Improvement - Kaizen
Regular Improvement Kaizen
Improvement is like sunlight: Focused improvement concentrates the energy:
⢠Lot of energy, but dispersed (wasted) ⢠Little energy, but concentrated and aligned
⢠Small improvements ⢠Enables significant (large) improvements
⢠Slow progress. ⢠Small time required
⢠Rapid progress
Š Hash Management Services LLP. 2013 www.hashllp.com
19. Popular Misconceptions
ď Kaizen is only for employees.
ď Kaizen is only a sort of a suggestion scheme.
ď Any implemented improvement is Kaizen
ď Kaizen is: SMALL improvements (only).
ď Kaizen is continuous improvement
Š Hash Management Services LLP. 2013 www.hashllp.com
20. Kaizen â Small change leading to large
improvement
ď Isnât KAIZEN supposed to be small improvements?
Kaizen is small change
that leads to
Large Improvement
Š Hash Management Services LLP. 2013 www.hashllp.com
21. What is Kaizen
ď Kaizen/ Focused Improvement is:
ďĄ Process Improvement
ďĄ in Strategically Important Areas
ďĄ Significant (Large) Improvements
ďĄ (and small ones that go with it)
ďĄ Sustainable Improvements
ďĄ Speedily Executed Improvements
Š Hash Management Services LLP. 2013 www.hashllp.com
22. Kaizen Principles
Go to Gemba - When an abnormality occurs
Check Gembutsu - Machine, Material, Failures, Rejects etc.
Search for - Muda (waste), Mura (inconsistency), Muri (physical strain)
Speak with data - Take temporary countermeasures on the spot
Make Kaizens - Remove root causes
Standardize - Standardize to prevent recurrance
Š Hash Management Services LLP. 2013 www.hashllp.com
23. Kaizen Rules
Ready to give up traditional thinking, question everything
Ask 5x âWHYâ and find problemâs root cause
Ask what can be done, not explain why something cannot be
Imperfect progress is better than postponed perfection
Produce only perfect quality and correct mistakes immediately
Invest time and creativity in Kaizen, not money.
Solve problems in the team
Kaizen does not have any end
Š Hash Management Services LLP. 2013 www.hashllp.com
24. Kaizen requires a non-blaming culture
Blaming Non-blaming
⢠Fault-finding ⢠Fact-finding
⢠Focus on individual ⢠Focus on process
⢠Ask âWho?â ⢠Ask âWhy?â
⢠Zero in on function ⢠Look for systems issues
⢠Make assumptions ⢠Determine needs
⢠Blame ⢠Hold accountable
⢠Control ⢠Assist
⢠Inspect/sort ⢠Improve capability
Š Hash Management Services LLP. 2013 www.hashllp.com
25. Benefits of Kaizen
ď Evaluates system with data
ď Allows ârealâ issues to emerge
ď Decreases negative blaming activity
ď Increases trust
ď Increases quality of communication
ď Increases capability
Š Hash Management Services LLP. 2013 www.hashllp.com
26. Kaizen promotes Process Oriented Thinking
ď Self-Discipline: Apply a common process
ď Time Focus: How long does the process take?
ď Skill Focus: What skills are required?
ď Participation: How can I make improvements?
ď Morale: How will changes affect others?
ď Communication: Why are changes made?
Š Hash Management Services LLP. 2013 www.hashllp.com
27. Work Place Improvements
Ways Searches Multiple handling
Bore Deburr
Werkzeug
MeĂmittel
Reinigung
Arrange the machines Arrange Tools and aids Boring combined with
closely to the operator Deburring
Š Hash Management Services LLP. 2013 www.hashllp.com
28. Work Place Improvements
Long travel by the Materials placed between Badly seizable
employees the employees material
More space available
Aid and servome
chanisms
Š Hash Management Services LLP. 2013 www.hashllp.com
29. Work Place Improvements
Soldering
Pack
U-line against clockwise
direction (with small articles),
there right hand for feeding, left
hand for starting
Soldering
Pack
Tables on same height,
And removal at so that parts do not have to
the same side be lifted
Š Hash Management Services LLP. 2013 www.hashllp.com
30. Work Place Improvements
Small parts are The order
difficult to take is not optimal
as is the case for
Š Hash Management Services LLP. 2013 www.hashllp.com
31. Work Place Improvements
The part is very
difficult to lift
Type B
Type B Type A
Visual management
facilitates
Š Hash Management Services LLP. 2013 www.hashllp.com
32. Work Place Improvements
3 different lengths
Magnet
more approximately
30-50° Head
a b c
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33. Work Place Improvements
for component A for component B for component A for component B
Abfall-
loch
Š Hash Management Services LLP. 2013 www.hashllp.com
34. Best Practices for SMEs
âImproving the Productivity using Lean
Manufacturing Techniquesâ
HASH MANAGEMENT SERVICES LLP
CHENNAI
www.businessense.in