5. lean manufacturing - kaizen - 5s

8/8/2019 5. Lean Manufacturing - Kaizen - 5S

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Lean Manufacturing System


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Sift Marketing Pvt Ltd2

History of Lean Manufacturing System

After second world war Japan was economically unstableand taking a beating by western auto markets with a ratioof 1:10

Toyota Manufacturing company designed a processoriented system known as Lean Manufacturing systemtoday

Basic idea of this system is eliminate or reduceconsumption of resource that doesnt add value to the

product West believes to increase profit, add it to manufacturing

cost

Japan believes to increase profits, add quality to product

& customer will pay for it


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Pillars of Lean Manufacturing System

TPS: Cost Control through

elimination of waste

J

I

T

Right Quantity

Right Mix

Right Time

J

I

D

O

K

A

Perfect Quality

Engaged & Creative Workforce

Standardised WorkLevel & balanced

productionKaizen


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Lean Manufacturing focus on

Waste (muda) elimination Cost reduction

Employee empowerment

Equipment reliability

Balanced or level production Just-In-Time material control techniques

Stop-the-line to correct the problem & in-station processcontrol

Continuous improvement Statistical process control techniques for quality

consistency

Developing human systems to support the technical

processes


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Waste for manufacturers

Material any excess consumption or scrap Inventory keep constant flow to customer & do not have

idle material

Overproduction produce in exact quantity & time whenreqd.

Labor get rid of unwanted movement

Complexity try to solve problems in uncomplicated way.Complex solutions tend to produce more waste & aredifficult to understand

Energy utiilise resources in most productive way

Defects make every effort to eliminate it

Transportation get rid of ones that doesnt add value

Time avoid long set-ups, delays and downtime


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All waste sources are related to each other

If you eliminate one others are bound to reduce oreliminate

Most significant resource of waste is inventoryo Raw material

o Work in progress (WIP)

o Finished goods

Inventory reduction can be achieved by JIT (just in time)

Waste second to inventory is transportation time

Transportation time can be reduced using Cellularmanufacturing layout and supply chain management

Waste in defects, scrap and downtime can be eliminatedby Total Productive Maintenance


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Benefits of Lean Manufacturing Systems

Why do organisations want to use Lean ManufacturingSystem?

To improve overall productivity

Increase market share Improve speed-to-market with new products

Reduce manufacturing & engineering labour cost

Eliminate non-value added operations & processes


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Transition From Lean Manufacturing to Lean

Enterprise

In order to deliver best quality product organisations mustfocus on critical main process rather than individual dept

Lean enterprise concentrates on its stake holders to bringvalue to its customers

All processes are examined against customers definitionof value, non-value adding activities are reduced /eliminated

Lean enterprise is a group of individual, functions and

legally separate but operationally synchronised

companies


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Activities in an organisation

Value adding activity: e.g converting iron ore to steel

Necessary non value adding activity: e.g walking longdistances to pick up parts, unpacking vendor boxes

Unnecessary non value adding activities e.g waitingtimes


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Users

Who has used Lean Manufacturing Automobile Industry?

Toyota Motor Co Toyota Production Systems

Ford Motor Co The Ford Production System

Chrysler Chrysler Operating System Porshe The Porshe Improvement Process

General Motors NUMMI joint venture with Toyota


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Users

Who has used Lean Manufacturing Other Industries?

Pratt & Whitney, United Technologies Jet EngineManufacturer

Showa Manufacturing Radiator & boiler manufacturer Lifescan A Johnson & Johnson subsidary Electronicgoods

Lantech Corporation Packing Machines

Wiremold co Wire Management Systems


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Results Lantech Corporation

New product development time reduced from 3-4 yrs to 1yr

Employee hrs per machine reduced by 50%

Defects per machine reduced from 8 to 0.8 Inprocess and finished goods inventory values reducedform $2.6 million to $1.9 million

Product delivery lead time reduced from 4 20 weeks to1 2 weeks


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Results Wiremold Company

Product development time to market reduced by 75%

Receipt to fulfillment of orders reduced from 1 week to 1day

Amount of plant space needed reduced to 50% Time from raw material to shipping dock reduced from 4 -6 weeks to 1 2 days

Productivity up by 160%

Sales per employee more than doubled Number of suppliers reduced from 320 to 73

Inventory turns increased from 3.4 to 15


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Results - Pratt & Whitney Aircraft

Operating results rebounded from losses of $283 millionto profits of $ 530 million in 3 years

Throughput time reduced from 10 days to 75 minutes

Companies across the globe and drawing benefits

using Lean Manufacturing Systems


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On contrary to Americans method of large batches;

Japanese had small lot sizes and still better, How

was this possible?


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Continuous Improvement - Kaizen


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Continuous improvement - KAIZEN

Kaizen is a systematic approach to gradual, orderlycontinuous improvement

How Kaizen works

It is about doing simple things well

and gradually doing them better

Developing simplification in the way we do things

Squeezing out waste every step of the way

Developing competence in the things we do

KAIZEN philosophy should be practiced by people at

all levels and functions


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Perceptions wrt KAIZEN

Innovation

Maintenance

Kaizen

Innovation

Maintenance

Top Management

Lower Management

Middle Management

Top Management

Lower Management

Middle Management

Management philosophy around the world

Management philosophy adopted by Japanese


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New

Method

Whats expected

What is

Situation w/o KAIZEN

New

Method

Situation with KAIZEN

Whats expected

What is


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5S

Most effective tool of continuous improvement and basisfor a lean enterprise

Its the first modular step towards serious waste reduction Its a methodology for organising, cleaning, developing

and sustaining a productive work environment It prevents accidents and mistakes from occurring

because of untidiness and lack of organisation This theory fosters efficiency, maintenance and

continuous improvement in all areas of company Benefits like improved: morale, safety, productivity,

maintenance and ownership of workspace

5S works on the principle of

A place for every thing and everything in its place


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5S

Seiri Sort or organise to get rid of clutter Separate necessary items from the unnecessary ones

Seiton Set in order to create orderliness in work area

How fast you can take away items and retrieve them Goal is to have permanent home for each item and reduce

the number of items required

Seiso Shine the work area

Clean your work area ready to use for next shift

Creates ownership of workspace, equipment & facility

E.g Japan doesnt have street cleaners

E.g Worker identifies oil leakage while cleaning alarms

maintenance avoid breakdown & loss of production


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Example of5S United Electric Co

Seiri

Colour tag items depending on its progress at time

Seiton

Colour marked factory walls & floors

Seiso

Distributed among employees depending on their dept

Seiketsu & Shitsuke

5S patrol was organised to oversee & answer questions

Co eliminated unnecessary clutter, established a

location for all items enhanced cleanliness and

improved overall safety


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Exporters World-class

Manufacturers

Domestic MNC Players

Global

Markets

Local

Local Global

Mfrs. /

Competitors


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From To

Little boxes (fragmented view) The big facture (holistic view)

Complacency Competitiveness

Manufacturing as a Cost Centre Manufacturing as a Strategic Resource

Top management as a roadblock Top management as a leader

Inventory as an asset Inventory as a liability

It is not my job It is everyones job.

vertical communication in orgn. Open hor. and vertical communication

Just meet the goal, save some for next

time

Improve day by day

I am not allowed to.. I am encouraged to.

Not invented here Use if it works; learn from others

Required change in attitude to successfully

implement lean systems


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From

Do it ourselves

To

Buy it.

Planning is no good and not needed here Planning is useful; we must plan.

Number games True & accurate data and info..No filters

We know what is best for the customer The customer is always right.

Computers are an expense Computers are a competitive asset.

Data control and definitions are notimportant

Data is a corporate resource, to bedefined and controlled effectively.

Required change in attitude to successfully

implement lean systems . . contd

5. lean manufacturing - kaizen - 5s

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