24 lean thinking
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LEAN THINKING
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This concept was developed by Toyota MotorCompany(1990s)
so it is also called TPS(Toyota production system)
Lean was generated from the Just-in-time(JIT)
Just-in-time is supplying customers withexactly what they want when they want it.
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Lean Thinking is about focus, removingwaste, and increasing customer value.
Lean manufacturing is the production ofgoods using less of everything compared totraditional mass production: less waste,human effort, manufacturing space,investment in tools, inventory, andengineering time to develop a new product
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Overproduction producing more than thecustomer orders or producing early. Inventoryof any kind is usually waste.
Queues idle time, storage, and waiting arewastes
Transportation moving material betweenplants, between work centers, and handling
more than once is waste
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Inventory unnecessary raw material, work-in-
process (WIP), finished goods, and excess
operating supplies
Motion movement of equipment or people
Over processing work performed on product
that adds no value
Defective product returns, warranty claims,
rework and scrap
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Lean is done by smoothening process flows,doing only those activities that add customer
value and eliminating activities that dontAdding value .
is another way of saying generating revenue.If it doesnt generate revenue then it mustadd cost, not value.
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There are five basic steps in assessing leanoperations:
Identify the activities that create value Determine the sequence of activities (also
called the value stream)
Eliminate activities that do not add value Allow the customer to pullproducts/services
Improve the process (start over)
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Elimination of waste
Increased speed and response Improved quality Reduced cost
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Over production Waiting time Transportation Processing Inventory Motion Production defects
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Quick and efficient response Getting goods to market Producing to customer demand and delivery
requirements Responding to competitors actions Collecting payments
Addressing to customer inquiries and problems
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Raw material should not be bad Inconsistent processing operations Machine break down Eliminating the sources of defects and errors
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Reduced waste and improved quality
Efficient equipment
Better preventive maintenance
Smaller inventories
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A systematic approach to identifying and eliminating waste
(non-value added activities) through continuous improvement
by flowing the product at the pull of the customer in pursuit of
perfection.
The MEP Lean Network
Lean is:
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8 Wastes
Overproduction Excess inventory Defects
Non-value addedprocessing
Waiting Underutilized
people
Excess motion Transportation
Lean = Eliminating the waste
Typically 95% of Total Lead Time is Non-Value Added!!!
Value added
5%
Non-value added
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Zero defects
100% value-add Lot size of one Pull of the customer
TSSC
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Where has Lean been successfullyimplemented?
ManufacturingAutomotiveIndustrial ProductsFurnitureTextiles and ApparelPrinting and PackagingConsumer Products
Service IndustriesMilitaryHealthcare
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A simple diagram of every step involved in the material and
information flows needed to bring a product from order to delivery.
Value stream maps can be drawn for different points in time as away to raise consciousness of opportunities for improvement.
- Lean Lexicon
1.Value Stream Mapping
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Value-added:
ANY ACTIVITY THAT PHYSICALLY CHANGES THEMATERIAL BEING WORKED ON (not rework/repair!)
Machining Knitting
Drilling Spreading/Cutting Assembly Dying
Painting Sewing
Non-value added:
ANY ACTIVITY THAT TAKES TIME, MATERIAL, OR SPACEBUT DOES NOT PHYSICALLY CHANGE THE MATERIAL
Sorting Stacking
Counting Checking
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Operations safely carried out with all taskorganized in the best known sequence and byusing the most effective combination of
resources
huMans
Materials
Methods
Machines
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3.The 5Ss
SortKeep only what is needed in your area
SetA place for everything and everything in its place
ShineClean up the workplace
Standardize
Develop system (rules) to maintain what has been doneSustain
Self discipline to maintain established procedures
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Visual Controlsare simple signals that provide an immediateunderstanding of a situation or condition. They are efficient, selfregulating, and worker managed.
Example: if machine fails or a part is defective or manufacturedincorrectly, a light might turn on or a buzzer might sound, indicating thatimmediate action should be taken.
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MASS PRODUCTION A specific process for each item takes place at the same time on a
batch of items, and that batch does not move onto the next stageof production or inspection until the whole batch is done. eg.baking cookies, or making shoes of two differentcolours(producing similar things, but with variants.)
SINGLE PIECE FLOW Single piece flow is characterized by working on one product at a
time. Some of these benefits include (1) improved quality andfewer defects (2) reduced inventory (3) less space required, (4)enhancement of overall manufacturing flexibility, (5) improvesemployee morale
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Technology becoming increasinglyimportant.
Expert systems which use intelligent rulesto make logical decisions. Used for Machine scheduling, Web auction
bidding.
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Layout of offices, equipment and processes isdesigned according to the best operational
sequence. Standardizing the individual tasks by clearly
specifying the methods and procedures. To reduce wasted human movement and
energy.
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Not possible with suppliers who miss deliverydates or provide poor quality goods.
Possible only when the communication is onreal-time basis. Shipments in containers standardized in size
and shape.
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Refers to quick setup or changeover oftooling and fixtures in processes so that
multiple products in small batches can be runon the same equipment.
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Requires uniform and stable production planschedules.
Using small lot sizes Reducing the workloads at workstation.
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Quality at the source
Doing it right the first time
Eliminates the opportunities for waste
Flexible and well educated work force
Inspecting your own work eliminates jobs along the process and
inspection stations
Results in an effective leaner operating system
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Make lean principles work one must go to the root case of problems andpermanently remove it.
Continuous improvement initiatives team work among all managers andemployers.
Six sigma and Lean Six Sigma Lean tools are used to stream line an order entry process discover
significant reworks occurring because of incorrect addresses. Six Sigma used to drill down to the root cause of the problems Both aim to eliminate waste from the value chain and improve the design
and operations of goods services and process. Driven by customer requirements and market strategies focus on dollar
savings and ability to make financial impacts.
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Ensuring the operating system to perform their intended functionreliably.
Prevent equipment failures and downtime to have zero accidents, zerofailures and zero defects.
Create worker ownership of the equipment by involving them inmaintenance activities.
Foster continuous efforts to improve equipment operations throughemployee involvement activities.
TPM predicts equipment failure rates and performance maintenance
before a problem arises. Lean maintenance.
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Reduce cost and essentially do more with less
Green manufacturing
Repairing
Refurbishing
Remanufacturing
Cannibalizing
Recycling
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Just in Time is defined as philosophy of manufacturing based
on planned elimination of all waste and continuous
improvement ofproductivity.
JIT is a philosophy developed by the Toyota motor companyin the mid 1970s.
It has become the standard of operation for many industries.
Objective of producing the right part in the right place at the
right time.
Focuses on simplicity, eliminating waste, taking a broad view
on operations, visibility and flexibility.
Traditional manufacturing system use push production
whereas JIT uses pull production.
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It is a coordinated production system that enables the right
quantities or parts to arrive when they are needed and where
they are needed.
JIT considers people to be the organizations most importantresource.
JIT is equally applicable in service organization
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Takt time = Available time per time period /Market demand
rate per time period
Takt time is the production rate for one good or service basedon the rate of sales.
Takt time is used in Lean operating systems and is equivalent
to cycle time for assembly line balancing.
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JIT manufacturing focuses on production system to achieve
value-added manufacturing.
TQM is an integrated effort designed to improve quality
performance at every level. Respect for people rests on the philosophy that human
resources are an essential part of JIT philosophy
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Reduction in Inventories
Improved quality
Shorter lead times
Lower production costs Increased productivity
Increased machine utilization
Greater flexibility
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Aims to enhance supply chain integration bysupporting and assisting joint practices
By voluntary interindustry commercestandards in 1998 cooperative management of inventory
through joint visibility and replenishment of
products throughout the supply chain
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Information shared between suppliers andretailers aids in planning and satisfying
customer demands through a supportivesystem of shared information Links sales and marketing best practices to
supply chain planning and execution
processes
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allows for continuous updating of inventoryand upcoming requirements, making the
end-to-end supply chain process moreefficient. . Efficiency is created through the decrease
expenditures for merchandising, inventory,
logistics, and transportation across all tradingpartners.
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1. Develop Front End Agreement2. Create the Joint Business Plan
3. Create the Sales Forecast4. Identify Exceptions for Sales Forecast5. Resolve/Collaborate on Exception Items6. Create Order Forecast
7. Identify Exceptions for Order Forecast8. Resolve/Collaborate on Exception Items9. Order Generation
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1) Strategy and Planning2) Demand and Supply Management
3) Execution and4) Analysis.
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