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Lean Concept

Lean Concept

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Published by: jimvn on Nov 07, 2008
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10/28/2012

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Is there a better way to run your operation?  A more efficient way to plan, produce and deliver your products?  A smarter way to manufacture? 
Today's most competitive manufacturers know that there is and know exactly what to call it.
LEAN MANUFACTURING
Lean manufacturing isn't just the latest industry buzzword or quick-fix alternative. Increasingcompetition demands a continuous focus on minimal costs, maximum customer options, fastdelivery, and high-quality products and services. Today's manufacturers must be innovative whilefocusing on waste reduction, improved lead-time, maximized flexibility, and upgraded quality.Lean manufacturing concepts are proven strategies to help manufacturers obtain these attributes.Converting to a lean production system is a rigorous, difficult process that requires every level of an organization to develop a complete understanding to the basic tents of the concept and itsexecution. Companies that have fully implemented lean systems are rare, but the list of manufacturers trying to become lean is growing fast.This section of MAMTC's Lean web site is designed to provide you with the basic information youneed to start considering lean improvement strategies.
TRADITIONAL vs. LEAN MANUFACTURING
For years manufacturers have created products in anticipation of having a market for them.Operations have traditionally been driven by sales forecasts and firms tended to stockpileinventories in case they were needed. A key difference in Lean Manufacturing is that it is basedon the concept that production can and should be driven by real customer demand. Instead of producing what you hope to sell, Lean Manufacturing can produce what your customer wants...with shorter lead times. Instead of pushing product to market, it's pulled there through asystem that's set up to quickly respond to customer demand.Lean organizations are capable of producing high-quality products economically in lower volumesand bringing them to market faster than mass producers. A lean organization can make twice asmuch product with twice the quality and half the time and space, at half the cost, with a fraction of the normal work-in-process inventory. Lean management is about operating the most efficient andeffective organization possible, with the least cost and zero waste.
OVERALL ORGANIZATIONAL CHARACTERISTICS:
 
 
TRADITIONAL MASSPRODUCTIONLEAN PRODUCTION
Business StrategyProduct-out strategyfocused on exploitingeconomies of scale of stable product designs andnon-unique technologiesCustomer focused strategyfocused on identifying andexploiting shiftingcompetitive advantage.Customer SatisfactionMakes what engineerswant in large quantities atstatistically acceptablequality levels; dispose of unused inventory at salepricesMakes what customers wantwith zero defect, when theywant it, and only in thequantities they order LeadershipLeadership by executivecommandLeadership by vision andbroad participationOrganizationHierarchical structures thatencourage following ordersand discourage the flow of vital information thathighlights defects, operator errors, equipmentabnormalities, andorganizational deficiencies.Flat structures thatencourage initiative andencourage the flow of vitalinformation that highlightsdefects, operator errors,equipment abnormalities,and organizationaldeficiencies.External RelationsBased on priceBased on long-termrelationshipsInformation ManagementInformation-weakmanagement based onabstract reportsInformation-richmanagement based onvisual control systemsmaintained by all employeesCulturalCulture of loyalty andobedience, subculture of alienation and labor strifeHarmonious culture of involvement based on long-term development of humanresourcesProductionLarge-scale machines,functional layout, minimalskills, long production runs,massive inventoriesHuman-scale machines,cell-type layout, multi-skilling, one-piece flow, zeroinventoriesOperational capabilityDumb tools that assume anextreme division of labor,the following of orders, andno problem solving skillsSmart tools that assumestandardized work, strengthin problem identification,hypothesis generation, andexperimentationMaintenanceMaintenance bymaintenance specialistsEquipment management byproduction, maintenanceand engineeringEngineering"Isolated genius" model,with little input fromcustomers and little respectfor production realities.Team-based model, withhigh input from customersand concurrentdevelopment of product andproduction process design
 
MANUFACTURING METHODS:
 
TRADITIONAL MASSPRODUCTIONLEAN PRODUCTON
Production schedules arebased on…Forecast — product ispushed through the facilityCustomer Order — productis pulled through the facilityProducts manufacturedto…Replenish finished goodsinventoryFill customer orders(immediate shipments)Production cycle timesare…Weeks/monthsHours/daysManufacturing lot sizequantities are…Large, with large batchesmoving betweenoperations; product is sentahead of each operationSmall, and based on one-piece flow betweenoperationsPlant and equipment layoutis…By department functionBy product flow, using cellsor lines for product familiesQuality is assured… Through lot sampling100% at the productionsourceWorkers are typicallyassigned…One person per machineWith one person handlingseveral machinesWorker empowerment is…Low — little input into howoperation is performedHigh — has responsibilityfor identifying andimplementing improvementsInventory levels areHigh — large warehouse ofinished goods, and centralstoreroom for in-processstagingLow — small amountsbetween operations, shipoftenInventory turns areLow — 6-9 turns pr year olessHigh — 20+ turns per year Flexibility in changingmanufacturing schedulesis…Low — difficult to handleand adjust toHigh — easy to adjust toand implementManufacturing costs are…Rising and difficult tocontrolStable/decreasing andunder control

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