Module 3.

Lean Manufacturing
Concept of Lean Manufacturing;
meaning of lean manufacturing; History
of Lean Operations, Types of Waste, “5S”
Technique of Eliminating the Waste,
Lean Operations in the service sector,
Role of Leadership, Lean Operations and
Just In Time(JIT).
Concept of Lean Manufacturing
• Lean manufacturing is a production process
based on an ideology of maximizing
productivity while simultaneously minimizing
waste within a manufacturing operation.
• The lean principle sees waste is anything that
doesn't add value that the customers are
willing to pay for.
• The core principle in implementing lean manufacturing
is to eliminate waste to continually improve a process.
• By reducing waste to deliver process improvements,
lean manufacturing sustainably delivers value to the
customer.
• The types of waste include processes, activities,
products or services that require time, money or skills
but do not create value for the customer.
• These can cover underused talent, excess inventories
or ineffective or wasteful processes and procedures.
• Removing these inefficiencies should streamline
services, reduce costs and ultimately provide savings
for a specific product or service through the supply
chain to the customer.
Why is Lean Manufacturing Important and How Can it Help?

• Waste in industry, whether that is idle

workers, poor processes or unused materials
are a drain on productivity, and lean
manufacturing aims to eliminate these.
• The motives behind this vary depending on
opinion, from increasing profits to providing
benefits to customers.
Four key benefits to lean manufacture
• Eliminate Waste: Waste is a negative factor for
cost, deadlines and resources.
• It provides no value to products or services
• Improve Quality: Improved quality allows
companies to stay competitive and meet the
changing needs and wants of customers.
• Designing processes to meet these expectations
and desires keep you ahead of the competition,
keeping quality improvement at the forefront
• Reducing Costs: Overproduction or having
more materials than is required creates
storage costs, which can be reduced through
better processes and materials management
• Reducing Time: Wasting time with inefficient
working practices is a waste of money too,
while more efficient practices create shorter
lead times and allow for goods and services to
be delivered faster
Meaning of lean manufacturing
• Lean manufacturing entails streamlining
processes and procedures to eliminate waste
and thereby maximize productivity.
• Womack and Jones (see above) defined lean
as, “a way to do more and more with less and
less - less human effort, less equipment, less
time, and less space - while coming closer
and closer to providing customers exactly
what they want."
History of Lean Operations
Valve body cap
History of Lean Operations
• https://sixsigmastudyguide.com/history-of-lean/
• https://www.lean.org/explore-lean/a-brief-history-of-lean/

• Machine that changed

• Takt Tine or Takt – is a manufacturing term describe
the required product assembly duration that is
needed to match the demand.
• Silos in business – business divisions that operate
independently and avoid sharing information.
Types of Waste https://www.machinemetrics.com/blog/8-wastes-of-lean-manufacturing

The 8 wastes of lean manufacturing include:

1. Defects
Defects impact time, money, resources and customer
satisfaction.
Examples of Defects within a manufacturing
environment include lack of proper documentation or
standards,
Large variances in inventory,
Poor design and related design documentation changes
An overall lack of proper quality control throughout the
process workflow.
Specific Defect causes include:

• Poor quality control at the production level

• Poor machine repair
• Lack of proper documentation
• Lack of process standards
• Not understanding your customers’ needs
• Inaccurate inventory levels
2. Excess Processing

• Excess processing is a sign of a poorly designed

process.
• This could be related to management or
administrative issues such as
• Lack of communication,
• Duplication of data,
• Overlapping areas of authority and human
error.
• It may also be the result of equipment design,
inadequate job station tooling or facility layout.
Examples of Excess Processing include:
• Poor communication
• Not understanding your customers’ needs
• Human error
• Slow approval process or excessive reporting
3. Overproduction

• When components are produced before they are

required by the next downstream process,
overproduction occurs.
• This has several negative effects.
• It creates a “caterpillar” effect in the production
flow and results in the creation of excess WIP
• This leads to staging and therefore labor required
to move the WIP additional times.
• And it can hide defects that could have been
caught with less.
Common causes of Overproduction include:

• Unreliable process
• Unstable production schedules
• Inaccurate forecast and demand information
• Customer needs are not clear
• Poor automation
• Long or delayed set-up times
4. Waiting
• Waiting can include people, material
equipment (prior runs not finished) or idle
equipment (mechanical downtime or excess
changeover time).
• All waiting costs a company has in terms of
direct labor dollars and additional overhead
costs can be incurred in terms of overtime,
expediting costs and parts.
Common causes of Waiting include:
• Unplanned downtime or Idle equipment
• Long or delayed set-up times
• Poor process communication
• Lack of process control
• Producing to a forecast
• Idle equipment
5. Inventory

• Inventory is considered a form of waste

because of the related holding costs.
• This is true of raw materials, WIP and finished
goods.
• Over purchasing or poor forecasting and
planning can lead to inventory waste.
Common causes of Inventory Waste include:

• Overproduction of goods
• Delays in production or ‘waste of waiting’
• Inventory defects
• Excessive transportation
6. Transportation

• Poor plant design can cause waste in

transportation.
• It can also trigger other wastes such as
• Waiting or motion and
• Impact overhead costs such as higher fuel and
energy costs
• Higher overhead labor in the form of lift
drivers
• Adding wear and tear on equipment.
Common types of Transportation Waste:

• Poor layouts – large distance between

operations
• Long material handling systems
• Large Batch sizes
• Multiple storage facilities
• Poorly design production systems
7. Motion

• Motion costs money.

• This not only includes raw materials but also
people and equipment.
It may also includes:
• Excess physical motion such as reaching,
lifting and bending.
• All unnecessary motion results in non-value-
added time and increases cost.
Common Motion Waste examples include:

• Poor workstation layout

• Poor production planning
• Poor process design
• Shared equipment and machines
• Siloed operations
• Lack of production standards
8. Non-Utilized Talent

• The eighth waste is the only lean

manufacturing waste that is not
manufacturing-process specific.
• This type of manufacturing waste occurs when
management in a manufacturing environment
fails to ensure that all their
potential employee talent is being utilized.
Examples of Non-Utilized Talent:
• Poor communication
• Failure to involve people in workplace design
and development
• Lack of or inappropriate policies
• Incomplete measures
• Poor management
• Lack of team training
“5S” Technique of Eliminating the Waste

1 - Sort
1.1. Identify all items in the work area
1.2. Distinguish between essential and non-
essential items
1.3. Place any non-essential item in a
appropriate place, not in the work area
1.4. Regularly check that only essential items are
in the work area
2 - Straighten
2.1. Identify the best location for each essential
item
2.2. Place each essential item in its assigned
location
2.3. After use immediately return each essential
item to its assigned location
2.4. Regularly check that each essential item is in
its assigned location
3 - Shine
3.1. Keep the work area clean and tidy at all
times
3.2. Conduct regular housekeeping activities
during shift
3.3. Ensure the work area is neat, clean and tidy
at both beginning and end of shift
4 - Standardize
4.1. Follow procedures
4.2. Follow checklists for activities where
available
4.3. Keep the work area to specified standard
5 - Sustain
5.1. Clean up after completion of job and before
commencing next job or end of shift
5.2. Identify situations where compliance to
standards is unlikely and take actions specified
in procedures
5.3. Inspect work area regularly for compliance
to specified standard
5.4. Recommend improvements to lift the level
of compliance in the workplace
The Benefits of 5S

• Reduced changeover time • Reduction in materials handling

• Decrease in flow distance • Reduced lead time and cycle time
• Increased floor space • Reduced search time
• Greater self-esteem • Establishes standards for operating
• Improvement of communication equipment and conducting
• Increase in productivity processes Less spending on
replacing lost or damaged items
• Fast work
• Less stress and tiredness
• Improved appearance of the facility
and expectation for compliance to • Improved morale and pride in the
maintain that condition workplace
• Better and constant quality of • Training time reduced for new
products, services employees
• Reduced equipment breakdowns • Greater efficiency in achieving goals
• Improves workplace safety • Greater readiness for new tasks
• Fewer hazards • Better impression on clients
• Clean work place
Role of Leadership
• The role of a lean leader is to lead the operational
change to enhance your value stream using the same or
reduced resources.
• Lean manufacturing creates greater value for the
customer with reduced resources.
• According to the Lean Enterprise Institute, it focuses its
efforts and processes on that goal “through a perfect
value creation process that has zero waste.”
• Your company’s value stream – every process, from
receiving materials to production and shipment –
depends on adding value from which the customer
benefits.
Leadership Styles

• Fact-Based
• As Coach
• As Motivator
Fact-Based

• Lean leaders work with the facts in front of them.

• They develop a hypothesis to improve a process, set
up a small-scale experiment and act on the results of
the experiment.
• If the experiment enhances the quality, reduces the
cost of production or eliminates waste, the results
are implemented through the company.
• If not, the process, called the PDCA cycle in Lean,
starts over.
• These small incremental changes for the better are
the basis of constant improvement in Lean thinking.
As Coach

• A Lean leader takes steps to standardize work.

• She develops employees so that they think
critically and understand the process in which
they participate.
• She encourages them to look at ways to
improve the process.
• Encouraging team members to look at the
work they do and figure out how they can
make it – the product – better, in less time and
at a lower cost.
As Motivator

• Ensuring workers’ jobs contribute to customer value,

• Measured by the same standards of reduced
production time and waste, as well as greater quality.
• A Lean leader identifies the employees in your
company’s value stream and engages them in the
process of change toward that standard.
• Motivates to take the initiative, develop solutions to
problems and improve their work, by planning and
testing small changes.
• A team approach to this method leads to incremental
improvements in the value added to each product.
Create an Environment of Continuous Improvement

Kaizen
• By asking guiding questions,
• Supporting teams as they test hypotheses
• Celebrating improvements, in both performance
and process.
• Leaders to trust in the skills, knowledge, and
experience of their employees.
• Hiring smart, ambitious team players,
• Giving them the tools they need to be successful,
• Most importantly, getting out of their way.
• The role of the leader is not to do the work,
• Or to micromanage the work;
• It’s to lead teams toward prioritizing the right
work, which will result in the most value for
the customer.
• Going to the Gemba and stopping the line are
two techniques.
Gemba
• Lean management challenges leadership to go
to the Gemba, the place where the work is
being done, in order to become better
leaders.
Gemba
• Rather than relying solely on reports, executive
summaries, and other edited, condensed forms of
information,
• Lean leaders go directly to the source
• Demonstrate by example how to be a student of Lean
• Listen to their employees and learn about the
processes guiding progress in their organizations
• Work to remove anything blocking value from being
delivered to the customer
• Ask questions to better understand the flow of work
through the organization’s value streams
Stop the line to ensure quality

• When a problem arises, Lean leaders set the

example for immediately tackling the problem
before it grows.
• This is called “stopping the line”
• An assembly line would halt production to
resolve an issue, no matter how small.
• This practice holds everyone on the assembly
line (or in the case of knowledge work, value
stream) accountable for delivering a
consistently high-quality product.
JIT and Lean Management
• Just in Time management is focused on
efficiency, whereas,
• Lean management concentrates on using
efficiency to add more value to the customers.
Lean is further improvement on the
principles governing JIT
JIT Accentuates only one dimension of Lean
Manufacturing.
• JIT relies heavily on improvements in ‘flow.’
• Exposes most of the problems.
• Waste reduction as a consequence.
• Lean is all about eliminating all kinds of waste.
Lean operations expand human capability

• Lean Goes one step further than JIT.

• Consists of work-systems that expand human
capabilities.
• Encourages creative problem solving by the
workers.
• ‘Non value added’ activities are eliminated by
the employees.
• JIT does not expands the worker’s capabilities
Lean is Direct about its Focus on ‘Customer
Satisfaction’
• Lean Provides value to customer.
• JIT - less emphasis on customer service.
Sony vs. Apple
• Sony digital walkman was better engineered
than Apple’s iPod, but was less popular.
• Sony overlooked the aspect of ease of use to
the customer.
Profit Motive in JIT and Lean
• Lean is concerned with customer service.
• What happens to profit?
• JIT concentrates on profit.
• Lean focuses on service to customer and
service to the society.
Lean is a evolutionary concept
• Lean is not a tool, technique.
• JIT – combines the benefits of very small lot
production and a flow system of production.
• Lean is a natural progression from JIT.
• Lean has greater claims to being a philosophy.
Lean and JIT differ as follows:
1. JIT is a philosophy that tries to eliminate all
kinds of waste; ‘lean’ is limited in its scope.
2. JIT’s main focus is customer satisfaction,
whereas ‘Lean’ has its focus on waste and
less on customer.
3. Lean is direct about its focus on customer
satisfaction; JIT is less direct.
4. All the above
• C
• Ans. C
The Japanese word Gemba means..
1. Facing the facts.
2. Team effort.
3. Value mapping.
4. None of the above.
• Gemba - "The actual place". This is where
work takes place and value is created for the
customers. Note that work and value are not
always aligned.

Gembutsu - "The thing". This could be a piece

of equipment, a product, etc. It is the target of
one's focus for improvement.

Genjitsu - "The facts". What is happening in

the area of the area of kaizen, a workcell, etc.
• Ans A
• PARKING
• RED TAG ZONE
• CANTEEN
• TYL – WHY NOT 100% PLACEMENT
• https://quizizz.com/admin/quiz/
5a7ae01c0b1bc3001fe64204/operations-
management-mcq
• Red Tag area
• Parking space utilization
• Admission process
• Canteen
• 100% Placement
• Rest room and class room cleanliness
OM Interview
• https://www.youtube.com/watch?
v=77CbVMMjWLE