Lean Manufacturing & Management

EXAMPLE

WHAT IS LEAN MANUFACTURING?

Lean Mfg. is a set of rules, guidelines, tools & techniques that aims for improving the

Production rate and reducing Wastage during the production processes.

the

DO IT RIGHT AT THE FIRST TIME

WHAT IS LEAN?
To meet demand with minimum lead time by eliminating the NON-VALUE added activities.
A A - Customer Order Date B - Customer Delivery Date B

Hence, we have to minimize the lead time by eliminating waste between A and B.

SUCCESS STORY

HISTORY
Started in 1960
By Toyata Motor Car Company as Toyota Production System (TPS) Why it was started? Company was almost bankrupt due to Poor Management decision.

TOYATA
Toyata Company applied Lean Manufacturing in their organization in 1960 which improved all areas/departments of the organization by eliminating waste during Production.
And the Toyota Company manufactured Cheapest car in 1970 at the time of world wide Recession.

SUCCESS STORY
CARPET INDUSTRY

Waste - Activities that consume time, resource and/or space but do not add value.

WHAT IS WASTE IN LEAN MFG?

Seven wastages:
Over Production

Waiting Time
Transportation

Extra processing steps

Inventory

Motion
Defects

1. OVER PRODUCTION
As we know our company is under Production So this waste does not exist in our company

2. WAITING TIME
Time due to two department variable are not fully synchronized.
Man waiting time System waiting time Resources waiting time

waiting for previous job to finish

waiting for material and part to be delivered waiting for quality check

WAITING TIME
Causes: Unbalanced Operations (Work) Inconsistent Work Methods Long Time in process Low Man/Machine Effectiveness

Lack of Proper utilization of Equipment / Materials

3. TRANSPORTATION
Material Movement That Does Not add value to the final product. Or

Unnecessary moving or Handling of WIP

Material, Part etc. are placed a long way from their point of use Multiple Storage Locations Extra Material Racks

Extra Facility Space

TRANSPORTATION
Causes:

Large Lot Processing

Unlevelled Schedules

Lack of 5 Ss
Lack of Visual Controls

Improper Facility Layout

4. EXTRA PROCESSING STEPS

Effort which Adds No-value to the product or which can be combine with other process. To many inspection or quality check

Product featured not requested by customer

Excessive movement in Mfg. process

Bottlenecks in processes

EXTRA PROCESSING STEPS

Causes:

Technology Changes Without Process Changes

Decision Making at Inappropriate Levels Inefficient Policies and Procedures

5. INVENTORY
Unnecessarily high levels of raw materials, works-in-progress and finished products. Extra inventory leads to higher inventory costs, higher storage costs and higher defect rates. Extra Space on Receiving Docks
LIFO instead of FIFO Additional Material Handling Resources (Men, Equipment, Racks, Storage Space)

INVENTORY
Causes:
Incapable Processes

Uncontrolled Bottleneck Processes

Incapable Suppliers

Long Change Over Times

Management Decisions

Inaccurate Forecasting Systems

6. MOTION
Any Movement of People Which Does Not Add Value to the Product.
Searching for instrument and material to complete work Material Too Far Apart (Walk Time)

Visiting other workstation or central location to get stock, tool, consumables etc. Visiting other area for paperwork, quality check, photocopying etc.

MOTION
Causes:
Equipment, Office & Plant Layout

Lack of 5 Ss
Lack of Visual Controls

Inconsistent Work Methods (Standardized Work)

Large Batch Sizes

7. DEFECTS
Repair of a Product, late delivery, Customer un-satisfaction etc.
Extra Floor Space/Tools/Equipment Extra Manpower To Inspect/Rework/Repair

Complex Material Flow

Missed Shipments/Deliveries

Defects add Re-work, Extra cost, Extra transportation etc.

DEFECTS
Causes:
Incapable Processes

Excessive Variation
Incapable Suppliers Insufficient Training Inadequate Tools/Equipment High Inventory Levels

WASTAGES

HOW TO REMOVE THESE WASTAGES

1. Pull System
Also called Just in Time (JIT) production. Produce the product with aim that what is needed and when it is needed i.e. for our organization produce on the priority basic.

REMOVE WASTAGES
2. Kanban Card
Means card signal or Sign board
It indicate how much Raw material needed, from where the raw material purchase and where it is delivered. Its aim to eliminate Inventory system

REMOVE WASTAGES
3. Work cell
Arranging workplace or people in -shape cell rather than straight line for easy communication, work flow and unproductive operation can be minimized.

It also enable Visual control and within short period of time one can visualize about schedule, backlog, workflow, inventory level, resources utilization and quality.

REMOVE WASTAGES

4. 5S

REMOVE WASTAGES
Sort, Set, Shine, Standardize and Sustain
Sort: Sort what is needed and what is not needed, frequently needed are available nearby. Set: Arrange essential things in order for easy access. The objective is to minimize the amount of motion

REMOVE WASTAGES
Shine: Keep machines and work areas clean because airborne dust causes poor product surface or colour combination
Standardize: Make the first 3 Ss a routine practice by implementing clear procedures for sorting, Setting and Shining. Sustain: Promote, communicate and train in the 5 Ss to ensure that it is part of the companys corporate culture.

27

30

23

47
40

10
13

Numbers from 1 to 49
10
13

23

27

30
40

47

REMOVE WASTAGES
5. Preventative Maintenance
Prepare a series of routines, procedures and steps that are taken in order to try to identify and resolve potential problems before they happen.

REMOVE WASTAGES
6. Production Layout
Organize the work place in process layout means all the Equipment are place according to the operation performed on it

REMOVE WASTAGES
7. Quality at the Source
Quality should be built into the production process in such a way that defects are unlikely to occur in the first place

REMOVE WASTAGES
8. Pacemaker
The pacemaker sets the pace of production for the whole production line and the production rates at other workstations are increased or decreased so as to match the rate of the pacemaker.

LEAN MFG. IN OUR ORGANIZATION

Start from your DESK (Apply 5S) Apply Lean and 5S in STORE, G-66 and SHOWROOM

BENEFITS

BENEFITS
Improve on-time delivery
Reduces waste and scrap Increases Output

Reduce Inventory Costs

Improve Communications between departments Production capacity Improve quality of products

Reduced costs
Streamlined processes

BENEFITS

THANK YOU!