Lean Overview
Lean Overview
Overview
Lean
Half the hours of human effort in the factory
Half the defects in the finished product
One-third the hours of engineering effort
Half the factory space for the same output
A tenth or less of in-process inventories
Source:
The Machine that Changed the
World
Womack, Jones, Roos 1990
Lean Manufacturing
It is a manufacturing philosophy which shortens the time line between
the customer order and the product shipment by eliminating waste.
Business as Usual
Customer
Order
Waste
Product
Shipment
Time
Lean Manufacturing
Customer
Order
Waste
Product
Shipment
Time (Shorter)
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Lean thinking
The basics of Lean Thinking is the customer first
How do we do that?
By creating thinking people
And how do we do that?
By creating workplaces that are more human and
encourage people to think
value creation
waste
Cash
Cash!!!!
Customer
Low Cost
High Quality
Availability
Value
Value!!!!
Your Company
Profit
Repeat Business
Growth
Cost of Non-Quality
Researches across the world suggest that cost of non-quality can go up as
much as 10% - 30% of gross turnover of a manufacturing organization
depending on size and complexity. In other words, if we could implement lean
management in an organization through deploying techniques of value stream
mapping and waste reduction, the bottom-line may enhance by as much as
30% of the organizations turnover.
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Quality
4
Quality
Profit
per Unit
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Appraisal Costs
Repair Costs
Failure Costs
Internal
External
Benefit
Prevention Costs
Appraisal Costs
Repair Costs
Failure Costs
Before Quality
Cost Alignment
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Incidental
IncidentalWork
Work(NVA),
(NVA),
but
unavoidable
with
but unavoidable withcurrent
current
technology
or
methods.
technology or methods.
Any
Anywork
workcarried
carriedout
outthat
thatdoes
does
not
increase
product
value
not increase product value
Waste
Waste
An
An activity
activity that
that does
does not
not add
add
value
to
the
product
and
hence
value to the product and hence
something
something that
that you
you dont
dont want
want
to
to be
be doing,
doing, hence
hence Waste.
Waste.
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11
Focus on Waste
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13
7 Forms of Waste
DEFECT
WAITING
Repair or
Rework
OVER PROCESSING
Doing more work than
is necessary
Types
of
Waste
INVENTORY
Maintaining excess
inventory of raw matls,
parts in process, or
finished goods.
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MOTION
Any wasted motion
to pick up parts or
stack parts. Also
wasted walking
OVERPRODUCTION
Producing more
than is needed
before it is needed
TRANSPORTATION
Wasted effort to transport
materials, parts, or
finished goods into or
out of storage, or
between
processes.
14
Waste of Overproduction
If you make more product than is required by
the next process, make it earlier than is
required by the next process, or make product
faster than is required by the next process, you
overproduce.
Extra inventory
Extra handling
Extra space
Waste of
Overproduction
Extra interest
charges
Extra paperwork
Extra people
Extra defects
Extra overhead
15
time.
16
Waste of Transportation
Transporting parts and
17
Processing Waste
Effort that adds no value to the product or
Causes:
Product changes without process changes
True customer requirements undefined
Over processing to accommodate downtime
18
Inventory Waste
Maintaining excess inventory of raw
materials, parts in process, or
finished goods.
Causes of excess inventory
Protects the company from
inefficiencies and unexpected
problems.
Product complexity
Unbalanced workload, unleveled
scheduling
Poor Market forecast
Unreliable shipments by suppliers
19
Waste of motion
Any movement of
people or machines
without adding value
Causes:
Poor people/machine
effectiveness
Inconsistent work methods
Unfavorable facility or cell
layout
Poor workplace organization
and housekeeping
20
21
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22
FIVE S (5S)
5 S is an integrated Japanese concept for proper
housekeeping and they call it as workplace
management. According to them effective work place
management calls for five steps viz., organising, neatness,
cleaning, starndardisation and discipline. Japanese in their
language call these steps as SEIRI, SEITON, SEISO,
SEIKETSU and SHITSUKE.
SEIRI
- Organising or re-organising
SEITON
- Neatness
SEISO
- Cleaning
SEIKETSU - Standardisation
SHITSUKE - Discipline
So the name 5S is
arrived at taking the
first letter S of all
these five activities.