{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339}

Chapter No: 03

Lean Tools and Wastages

3.1 Lean Manufacturing - An Overview 3.2 What is Lean Manufacturing 3.3 Principles of Lean Manufacturing 3.4 Lean Goals and Strategy 3.5 Manufacturing Wastages 3.6 Methodologies of Lean

Page 47

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 3.1 Lean Manufacturing - An Overview: Lean principles come from the Japanese manufacturing industry. The term was first coined by John Krafcik in a Fall 1988 article, "Triumph of the Lean Production System," published in the Sloan Management Review and based on his master's thesis at the MIT Sloan School of Management. Krafcik had been a quality engineer in the Toyota-GM NUMMI joint venture in California before coming to MIT for MBA studies. Krafcik's research was continued by the International Motor Vehicle Program (IMVP) at MIT, which produced the international best-seller book co-authored by Jim Womack, Daniel Jones, and Daniel Roos called The Machine That Changed the World. A complete historical account of the IMVP and how the term "lean" was coined is given by Holweg (2007). For many, Lean is the set of "tools" that assist in the identification and steady elimination of waste (muda). As waste is eliminated quality improves while production time and cost are reduced. Examples of such "tools" are Value Stream Mapping, Five S, Kanban (pull systems), and poka-yoke (errorproofing). There is a second approach to Lean Manufacturing, which is promoted by Toyota, in which the focus is upon improving the "flow" or smoothness of work, thereby steadily eliminating mura ("unevenness") through the system and not upon 'waste reduction' per se. Techniques to improve flow include production leveling, "pull" production (by means of kanban) and the Heijunka box. This is a fundamentally different approach from most improvement methodologies, which may partially account for its lack of popularity. The difference between these two approaches is not the goal itself, but rather the prime approach to achieving it. The implementation of smooth flow exposes quality problems that already existed, and thus waste reduction naturally happens as a consequence. The advantage claimed for this approach is that it naturally takes a system-wide perspective, whereas a waste focus sometimes wrongly assumes this perspective. Both Lean and TPS can be seen as a loosely connected set of potentially competing principles whose goal is cost reduction by the elimination of waste. These principles include: Pull processing, Perfect first-time quality, Waste minimization, Continuous improvement, Flexibility, Building and maintaining a long term relationship with suppliers, Autonomation, Load leveling and Production flow and Visual control. The disconnected nature of some of these principles perhaps springs from the fact that the TPS has grown pragmatically since 1948 as it responded to the problems it saw within its own production facilities. Thus what one sees today is the result of a 'need' driven learning to improve where each step has built on previous ideas and not something based upon a theoretical framework.
Page 48

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} Toyota's view is that the main method of Lean is not the tools, but the reduction of three types of waste: muda ("non-value-adding work"), muri ("overburden"), and mura ("unevenness"), to expose problems systematically and to use the tools where the ideal cannot be achieved. From this perspective, the tools are workarounds adapted to different situations, which explains any apparent incoherence of the principles above.

Page 49

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 3.2 Lean Manufacturing: What is Lean Manufacturing? 3.2.1 History Of Lean Manufacturing: It is a popular fact that JIT system started in the initial years after the World War II in Japan for the Toyota automobile system. Toyoda family in Japan decided to change their automatic loom manufacturing business to the automobile business. But they had few problems to overcome. They could not compete with the giants like Ford in the foreign markets. Therefore Toyota had to depend upon the small local markets. They also had to bring down the raw materials from outside. Also they had to produce in small batches. They havent had much of capital to work with. Therefore capital was very important. With these constrains Taiichi Ohno took over the challenge of achieving the impossible. With his right hand man Dr. Sheigo Shingo for next three decades he built the Toyota production system or the Just In Time system.

Although the concept was mastered in Japan for the Toyota production system, the roots of this concept goes into the sixteenth century. Eli Whitneys concept of interchangeable parts said to be the very initial beginning of this concept. But first or at least famous implementation of something similar to JIT happened a century later in manufacturing of Ford Model T (in 1910) automobile design. Manufacturing was based on line assembly.

This system developed in Toyota from 1949 to 1975 virtually unnoticed by the others even within Japan. But in the oil crisis in 1973 Japan economy suffered and most of the industries had losses. But Toyota overcame these problems. They stood out from the rest. This was the eye opener for other Japanese firms to implement this system. But this system got popular in the western world with the book The machine that change the world written by James Womack in 1990. This book was aimed to give the history of the automobile with the plant details of some of these manufacturers. He gave the name Lean Manufacturing to this system. This was the eye opener for the western world about this system. Thereafter the concepts were practiced all over the world. Experiences and knowledge vastly improved the system.

But there were many people who just tried to use the tools in lean manufacturing without understanding the meaning of them. They eventually failed. But there are number of places this system is working well.

Page 50

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 3.2.2 Definition Of Lean Manufacturing: Lean manufacturing defines the value of a product or a service with the customer point of view. Product or service you are selling to them. They will evaluate your product or the service by looking at how Customers do not mind how hard you work or what is the technology you used to create the well this is going to fulfill their requirements. The complete elimination waste is the target of the system. This concept is vitally important today since in todays highly competitive world there is nothing we can waste. There are some terms that need to be properly defined if a company wishes to learn what lean manufacturing is? Some of these terms used in lean manufacturing systems are the following: 1. Value is anything that a prospective customer will be willing to buy or pay for. It is the responsibility of the lean manufacturing strategy to deliver what the customer wants exactly. 2. The value added is any activity that hopes to increase the form of the market or the function of the product and service. This value added is basically the value that was discussed in number one. 3. Takt time is the demand rate of a customer. Takt time aims to set the pace or rhythm of production of goods to be able to match the demand rate of customers. The takt time is the heartbeat of any lean manufacturing system.

3.2.3 A Waste According To Lean Manufacturing: In lean manufacturing the wastes are defined as anything which does not add value to the end product. Of cause there are wastes that can be avoided. But some are unavoidable to many reasons. Most of these wastes are avoidable. Even worst is that they are avoidable with very little effort, if you see them as wastes.

Page 51

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 3.3 Principles of Lean Manufacturing: We shall learn some of the basic lean manufacturing principles with some keywords used in lean manufacturing. By understanding these key words you will understand the basics of lean manufacturing, which is very important in success. Lean manufacturing defines the value of a product or a service with the customer point of view. Customers do not mind how hard you work or what is the technology you used to create the product or service you are selling to them. They will evaluate your product or the service by looking at how well this is going to fulfill their requirements. There will be many wastes appearing in your organization. You have to identify the wastes to remove them. You have to find many and many ways to get read of them. Keep in mind, every waste shows an opportunity for the improvement. When you identify the wastes and categorize them in to avoidable and unavoidable, you have to think about removing the wastes from the system. You must clearly understand that lean manufacturing always talks about removing, not minimizing. These two words have very different meanings. Whenever you talk about minimizing, it implies that there are wastes in the system in different quantity. But what lean manufacturing does is, it aims at removing the wastes from the system .Simply when there is a waste. Every problem in the system has a cause for it. Sometimes one or more root causes for a problem. One root cause even can contribute for more than one problem. When you clearly understand the problems and their causes, then it is the time to find out the solutions. There are many ways that you can find solutions in lean manufacturing. Lean manufacturing solutions are more often very simple and very effective. When you find the solution to the problem, then it is the time to implement the solution and to make sure that you achieve your objectives. Problems are solved in this way over and over again. This is the cyclic concept of lean manufacturing. Lean manufacturing believes that each and every activity is interconnected. Therefore advancement in one place will increase the system as a whole. Therefore this cycle of identifying, finding root causes, finding solutions and implementing will go on and on again and again. This process will continuous until there are wastes to be removed.

Page 52

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} Lean manufacturing give priority to the simple, small, continuous improvement, rather innovations. Of cause there is enough room to absorb big advancements in the system. But the priority is set for the continuous improvement. These improvements might be very simple as adjusting the height of a seat or changing the position of the tools which you use frequently. Every simple improvement will improve the system as whole. Therefore final objective is one more step closer as an organization. Lean manufacturing is the way to never ending continuous improvement. This is also known as the Kaizen in lean manufacturing.

Principles of Lean:

The five-step thought process for guiding the implementation of lean techniques is easy to remember, but not always easy to achieve: 1. 2. Specify value from the standpoint of the end customer by product family. Identify all the steps in the value stream for each product family, eliminating whenever possible those steps that do not create value. Make the value-creating steps occur in tight sequence so the product will flow smoothly toward the customer. As flow is introduced, let customers pull value from the next upstream activity. As value is specified, value streams are identified, wasted steps are removed, and flow and pull are introduced, begin the process again and
Page 53

3.

4.

5.

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} continue it until a state of perfection is reached in which perfect value is created with no waste.

Page 54

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 3.4 Lean Goals and Strategy: The espoused goals of Lean manufacturing systems differ between various authors. While some maintain an internal focus, e.g. to increase profit for the organization, others claim that improvements should be done for the sake of the customer. Some commonly mentioned goals are: Improve quality: To stay competitive in today's marketplace, a company must understand its customers' wants and needs and design processes to meet their expectations and requirements. Eliminate waste: Waste is any activity that consumes time, resources, or space but does not add any value to the product or service. See Types of waste, above. Reduce time: Reducing the time it takes to finish an activity from start to finish is one of the most effective ways to eliminate waste and lower costs. Reduce total costs: To minimize cost, a company must produce only to customer demand. Overproduction increases a companys inventory costs because of storage needs. The strategic elements of Lean can be quite complex, and comprise multiple elements. Four different notions of Lean have been identified: Lean as a fixed state or goal (Being Lean) Lean as a continuous change process (Becoming Lean) Lean as a set of tools or methods (Doing Lean/Toolbox Lean) Lean as a philosophy (Lean thinking)

Page 55

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 3.5 Manufacturing Wastages: Waste is defined as anything that does not add value to the final product.Every organization wastes majority of their resources. Therefore it is worthier to have a closer look at these wastes. For the ease of understanding these and due to many other similarities, these wastes are categorized in to seven categories. In some instances one extra category is added to make the total of eight waste categories. Every waste you will come across in your organization or even in day-to-day life will fall into one of these categories. The following "seven wastes" identify resources which are commonly wasted. They were identified by Toyotas Chief Engineer, Taiichi Ohno as part of the Toyota Production System: 3.5.1 Transportation (Moving products that are not actually required to perform the processing) 3.5.2 Inventory (All components, work in process (WIP) and finished product not being processed) 3.5.3 Motion (People or equipment moving or walking more than is required to perform the processing) 3.5.4 Waiting (Waiting for the next production step) 3.5.5 Over Production (Production ahead of demand) 3.5.6 Over Processing (Resulting from poor tool or product design creating activity) 3.5.7 Defects (The effort involved in inspecting for and fixing defects) Taking the first letter of each waste, the acronym "TIM WOOD" is formed. This is a common way to remember the wastes. The other alternative name that can used to remember is "DOT WIMP". Later an eighth waste was defined by Womack et al. (2003); it was described as manufacturing goods or services that do not meet customer demand or specifications. Many others have added the "waste of unused human talent" to the original seven wastes. These wastes were not originally a part of the seven deadly wastes defined by Taiichi Ohno in TPS, but were found to be useful additions in practice. 3.5.8 Underutilization of Employees (Unused human talent)

Page 56

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 3.5.1 Transportation: No matter how well you do transporting. It does not add value to the end product. Therefore simply transportation is one of the wastes that have to be eliminated from the production system. This accounts for the quality defects, maintenance of a higher WIP, and additional cost of transporting the goods. Transportation often caused by poor work place organization. Inflexibility of the layout plays a big role here. This can be avoided with careful redesigning of the layouts. 3.5.2 Inventory: Inventory, be it in the form of raw materials, work-in-progress (WIP), or finished goods, represents a capital outlay that has not yet produced an income either by the producer or for the consumer. Any of these three items not being actively processed to add value is waste. Inventory is a direct result of over production and waiting. Every imperfection in the system will create a requirement for the Work In Process (WIP). Therefore WIP also known as the mirror of the wastes that system has. But WIP itself becomes a waste due to many consequences. It blocks money in the form of not finished products. It also reduces the flexibility of the production facility by increasing the change over time between different styles. It hides quality damages, and will only be revealed when a considerable damage is done. Higher WIP also requires larger floor space. This will also affect the appearance of the work place badly. Therefore if you want to be perfect, just target for a system where there is no requirement for WIP. 3.5.3 Motion: This waste is often overlooked. When performing a certain task people have to repeat their motions again and again. Although we do not realize, in many places people will have to move, bend or reach to collect some part or to reach a machine. If a time study can be done to check the percentage of the time for these unnecessary movements, you will see it is actually very high than you think. Even the other ergonomic conditions like correct lighting, tool arrangement, work process management is essential to achieve a good productivity from the people poor conditions are not good for the health of the worker obviously. Also this will waste large amounts of time. Workplaces will become very untidy. Workers will get tired easily. The reason for this is poor workplace organization. To overcome this problem, a detailed study has to be carried out about working conditions. Then they have to be re arranged to eliminate these problems. Even some simple equipment change
Page 57

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} like from normal chairs to movable and adjustable chairs will solve some problems. But some problems will need very good workplace engineering to overcome. 3.5.4 Waiting: In conventional batch processing, some studies show that 90% of the time goods are waiting to be processed. Some even say this is higher as 99%. Even a single minute lost in waiting cant be recovered in the process there after. Think carefully. Analyze how long the products are waiting against the time used for processing them. This is one big contributory factor for the higher lead times. This simply means you take 100 hours or more to complete work which is worthier only 10 hours. Ninety hours or more is lost and added to the lead time. No waiting means you can deliver the goods within 10 days which actually took 100 days earlier. This will also reduce the WIP and tons of related problems. Also considerable savings on the production space and reduction in work in capital can be achieved. Among the cause of this problem is due to the high volume machinery, unawareness of the people, and conventional thinking of the people play leading roles. 3.5.5 Over Production: The word over production can be used to describe a type of waste which is in most of the places and we never think this as a waste. This is producing something before it is actually required. Lean manufacturing always trust on the pulling rather than pushing. This means that every product or a service must be pulled from the process immediately after that. Therefore a product or a service must be pulled by the customer. In much more simpler way, customer must have the real requirement for the product or the service being produced. If you produce the goods without any stimulation from the market, then either you will have to keep the product with you until there is a market for that product or you have to create the market stimulation with huge advertising campaigns etc. Over production accounts for many loses. One is the waste due to unnecessary parts. This also will make the WIP higher. Flow will not be smoother. This obviously leads to low quality products and defects as quality problems are hidden in the WIP maintained due to over production. 3.5.6 Over Processing: Over-processing occurs any time more work is done on a piece than what is required by the customer. This also includes using tools that are more precise, complex, or expensive than absolutely required.
Page 58

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} This is the using incorrect tools for the job. This does not mean that you should use complicated or expensive tools to do the job. It is about using the correct tool for the correct job. Low cost automation is one program where Toyota found to be really effective. Developing such tools can be done with the aid of workers, because they know the job they do more than anyone. Then this will become a very good way of motivating people as well. The enemy for this system is mind set of the people who work in the organization. People naturally think like best equipment for the job is expensive and complex. So how to overcome this problem, which will not only save money for you but also motivate people immensely. Very simple change in the mind set of the people by education and training. Also create a culture of continuous improvement. Then people will always look for the better ways of doing things, which creates opportunity for these kinds of innovations. 3.5.7 Defects: All above are wastes themselves but they lead to another waste which is extremely costly. These are the defected product. In the case of services this is the poor quality of the service. Defects call for higher inspection and related costs. If you find a defect, you will have to remove it. The raw materials, time, effort and the money put in to this product will be wasted. Even worst, if this defected product goes to the customers hand you will lose the image for your organization. Also there is a risk of claims. In the long run this will be a big cost for the organization. Damage in a single rupee product can create millions of rupees of lost to your organization. As mentioned earlier all the above wastes, poor raw material, mistakes from the workers, problems in the system, machinery problems and much more accounts for this problem. So removing this from the system is long time task. Making the system fool proofed, getting good quality raw material, educating people are among the solutions for this. 3.5.8 Underutilization of Employees: The underutilization of employees is also considered as waste, But most people do not think this as a waste. Every worker, even the people do the most routine job in the organization will have something to contribute to the organization than their muscle power. Think about a floor cleaner. If you ask him, how to clean the floor much faster, I am sure they will come up with some fantastic ideas.
Page 59

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} What lean manufacturing tries to do is to get ideas from all level of the people in the organization and to use them for the betterment of the organization. Therefore not making the full use of the human resource is a waste. Wasting this without using to fight against the wastes is the biggest loss for the organization. Can All The Wastages Be Avoided

Yes, all these wastes can be avoided by implementing lean manufacturing techniques & tools which are very important for the manufacturing industries. Lean tools have the series of tools which are listed below and some of these are discussed briefly. The Above answer sounds good in the system in theory, but in practical situations removing all the wastes might not be possible. Some might be not possible due to technical concerns; some are due to various obvious factors. For an example you have to transport the goods at least a little amount even within the working flow without adding any value to that. Anyway you will have to get down the raw materials for the manufacturing of product from far places. These can not be avoided. If you try to avoid some of these wastes that will cost you much more in the bigger picture. Always remember the bigger picture is what that always matters. Therefore it is very important to categorize the wastes according to availability of them. When you do that all the wastes in the organization will fall in to the one of the following two categories. Wastages that are Avoidable Wastages that are Unavoidable Deciding what are the avoidable and what are unavoidable will require some good decision making. Lot of learning, experimenting and thinking has to go into this process. When you decide on this or at least have some idea about the wastes which are avoidable, then it is the time to understand the importance of removing each waste from the system. A tool like pareto curve will be an ideal tool to understand the problems according to their importance of removing them. Always you have to give the importance to the bigger picture to stop creating a new waste in the system in the effort of removing one. Always an overall reduction should be there. What about the other wastes which we thought un removable. Should they remain untouched? No, not at all. With the time there are new technologies, and many developments coming on. Also when you are removing some of the problems from the avoidable category, you fill find the ways to tackle some problems in this category as well. Therefore nothing is permanent. You will FOCUSED. get tons of chances to overcome these problems. SO STAY FOCUSED. . . . .
Page 60

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 3.6 Methodologies of Lean: Lean manufacturing is based on continuous finding and removal of the wastes. Value is defined from the customers point of view. Therefore all the tools in lean manufacturing aim to identify and remove wastes from the system continuously. Lean It is true to say base of lean manufacturing is its concepts. But lean tools are very important too. They help in implementing, monitoring, and evaluating lean efforts and its results. On the other hand if used without proper understanding this can spoil your lean efforts. So it is very important to understand the tools before thinking about using them Some of the basic tools of Lean Manufacturing are:

5S Error proofing (Poka-Yoke) Just In Time Kaizen Kanban Pull system Work leveling Heijunka Work cells Quick Changeover or SMED TAKT Time Theory of Constraints Value Stream Mapping Workflow Diagram Total Productive Maintenance Visual workplace Cause and Effect Diagram 5 Why Technique Six Sigma

3.6.1 5S: 5S is a system of workplace organization. It is fundamental to the implementation of the Lean Manufacturing principles. The 5S are : Sieri. Sort (Housekeeping) Seiton. Set in order (Workplace Organization) Seison . Shine (Cleanup) Seiketsu. Standardize (Maintain Cleanliness and Order) Shitsuke. Sustain (Discipline)

Page 61

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339}

Seiri.Sort: Sort is a process of removing every non essential item from the workplace. Examples of items that need sorted are extra tables, benches, cabinets, tools, inventory, cleaning supplies, rags, and documents. All of these extra items just get in the way of efficient production. Seiton.Streighten (Set in Order): Set in Order is the process of organizing the remaining items after the sort process is completed. For example, all tools used in a setup on a machine should be placed as close as possible to where they will be used. Seison.Sweep (Shine): Shine is the third S. It is the process of cleaning the work area and any machinery or equipment in it. The ideal lean manufacturing implementation is to keep the equipment in the same or better shape than when it was delivered. Seiketsu.Standardize: Standardize is the process of making the first three Ss a habit. Many companies have went through cleaning and organizing systems over the years only to see it slip away back to an unorganized facility. Standardize is one of the most important of the 5S system. For example, if a

Page 62

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} machine is to be wiped clean at the end of a shift, it should be done every single day without fail. Shitsuk.Sustain: The last S is Sustain, which is the one most companies failed to employ over the years. Many company managements blamed employees for this failure. However, once managements realize the benefits of 5S, they also realize it is management that stood in the way of sustaining the organization over the years. Each component of the 5S is necessary to derive the benefits and sustain workplace organization.

3.6.2 Poka Yoke

( )

Poka-Yoke is a Japanese term that means "fail-safeing" or "mistake-proofing". A poka-yoke is any mechanism in a lean manufacturing process that helps an equipment operator avoid (yokeru) mistakes (poka). Its purpose is to eliminate product defects by preventing, correcting, or drawing attention to human errors as they occur. The concept was formalized, and the term adopted, by Shigeo Shingo as part of the Toyota Production System. It was originally described as baka-yoke, but as this means "fool-proofing" (or "idiot-proofing") the name was changed to the milder poka-yoke. More broadly, the term can refer to any behavior-shaping constraint designed into a process to prevent incorrect operation by the user. Similarly, a constraint that is part of the product (or service) design is considered DFM or DFX.Contents. Implementation in Manufacturing: Poka-yoke can be implemented at any step of a manufacturing process where something can go wrong or an error can be made. For example, a jig that holds pieces for processing might be modified to only allow pieces to be held in the correct orientation,[5] or a digital counter might track the number of spot welds on each piece to ensure that the worker executes the correct number of welds. Shigeo Shingo recognized three types of poka-yoke for detecting and preventing errors in a mass production system: o The contact method identifies product defects by testing the product's shape, size, color, or other physical attributes. o The fixed-value (or constant number) method alerts the operator if a certain number of movements are not made. o The motion-step (or sequence) method determines whether the prescribed steps of the process have been followed.
Page 63

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} Either the operator is alerted when a mistake is about to be made, or the poka-yoke device actually prevents the mistake from being made. In Shingo's lexicon, the former implementation would be called a warning poka-yoke, while the latter would be referred to as a control poka-yoke. Shingo argued that errors are inevitable in any manufacturing process, but that if appropriate poka-yokes are implemented, then mistakes can be caught quickly and prevented from resulting in defects. By eliminating defects at the source, the cost of mistakes within a company is reduced. Poka yoke system is generally known as PKS. Implementation in Service Industries: Poka-yoke can also be implemented in service industries. Call Centers have long had a challenge with compliance. Poor training, fatigue, forgetfulness, and the limits on human consistency all can lead to agents skipping key steps in the process. Disclosures are a good example. When a consumer makes a purchase of some kind, the call center agent is often required to provide the customer with key information. What the customer purchases dictates the disclosures that are required. It can be hard to train the agents in all the required combination of disclosures or the agents can sometimes forget to read the disclosures. Using Agent-assisted automation, the agents can provide the customers with all the required disclosures using pre-recorded audio files. By integrating the Agent-assisted Automation with the customer relationship management software, you can ensure that the agent cannot process/complete the order until the required disclosures are played

3.6.3 JIT The Backbone of Lean Manufacturing: JIT is the backbone of the lean manufacturing. Actually the concept grew first with the Toyota system was the JIT, then it developed to the lean manufacturing. JIT is one key way to get read of most of the wastes.JIT concepts are based on the pull demand model. Everything is done when they are actually needed. JIT has three main areas.

JIT purchasing JIT Production JIT distribution

Page 64

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339}

JIT Purchasing is done when the goods are actually needed by the production. No large stocks are maintained. Often purchasing is done in small batches continuously. This allows production to run smoothly. This will also reduce the costs due to storage, and also will minimize the degrading of the goods. This way it is easy to monitor quality defects and correct them if there are any in the subsequent batches. Also this will help to achieve shorter leadtimes in the production. But achieving this has problems to overcome. First of all the supplier base of the organization should be manageable. Then they have to agree to produce in small batches and send them in the continuously. Minimum order quantity issues must be solved. The supplier must be able to adjust to the changes fast and also he must be able to keep the correct quality from batch to the other. And there may be much more problems to overcome. To overcome this corporate level involvement is very much required. When achieved this will mutually benefit both you and your supplier.

JIT Manufacturing might be the most talked topic of all lean manufacturing techniques. This requires very good internal coordination and planning. Even within the manufacturing area, pull demand concepts are used. The items are produced only when they are required by the process following it. No stocks are maintained. This will reduce the costs due to WIP. This will also reduce the cycle time of the product, and therefore will improve the flexibility of the system immensely. This will also reduce the lead time considerably. Quality defects will be much lower since WIP is very low.
Page 65

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339}

Achieving JIT manufacturing is again not an easy task. Most of the time this requires a radical change in the organization. Work will change from the conventional departmental thinking to the new team thinking. Manufacturing will change from the line system to the module or work cell based manufacturing. Every problem will cause the system to stop since there is no WIP to work with. All the problems hidden in the WIP will be revealed. Some people might not like the system. In short there will be tons of problems to be solved. This requires some courage and temperament.

JIT Distribution is to achieve a smooth production without any delays in production and to distribute the goods in small batches to the buyers in continuous basis, it is very important to keep a good transportation management system. Generally this is known as the JIT distribution. Without this any of the lean objectives might not be possible. Most often this function is given to a third party logistic company, who will take care of JIT distribution. On time, uninterrupted data exchange is very vital in this. Therefore it is advisable of using electronic way of data interchange. It is also very much necessary to automate this data transfer function to avoid any delays and mistakes in duplication.

Page 66

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339}

3.6.4 Kaizen

( )

Kaizen is another pervasive tool since it is a focused methodology that uses teams for making improvements. Analysis indicates that this is the best systematic approach for an improvement project. It is a continuous improvement process that empowers people to use their creativity; Kaizen can be used to fix specific problems, workflow issues, or a particular aspect of a business. WHAT IS KAIZEN? Kaizen means "good change which has been interpreted to mean continuous incremental improvement. GOAL OF KAIZEN? This activity is highly focused & action oriented which empowered team so that they can take immediate action to improve a specific process. Kaizen (Japanese terminology for "improvement" or "change for the better") refers to a philosophy or practices that focus upon continuous improvement of processes in manufacturing, engineering, supporting business processes, and management. It has been applied in healthcare, government, banking, and many other industries. When used in the business sense and applied to the workplace, kaizen refers to activities that continually improve all functions, and involves all employees from the CEO to the assembly line workers. It also applies to processes, such as purchasing and logistics that cross organizational boundaries into the supply chain. By improving standardized activities and processes, kaizen aims to eliminate waste. Kaizen was first implemented in several Japanese businesses after the Second World War, influenced in part by American business and quality management teachers who visited the country. It has since spread throughout the world and is now being implemented in many other venues besides just business and productivity.

Page 67

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} Based on quantitative analysis, a good starting point is to look at the way people work Identifying waste through a time and motion study of tasks with input from both workers and managers. KAIZEN CONCEPT:

Steps For Conducting KAIZEN Activity Prepare and train the team Analyze present method Brainstorm, test and evaluate ideas Implement and evaluate improvements. Results and follow up. Six Basic Rules of Kaizen?

KAIZEN Main Elements Teamwork Personal discipline Improved morale Quality circles Suggestions for improvement

o Respect Others: Particularly the local operators, you are in their living room. o Document reality: If you make changes based on data, the data should be based on reality. o Do Your Share: Everyone has to contribute. o Try Something New: Be open minded - try it instead of racking your brain for reasons why it wont work (try-storming). o Ask Why (The 5 whys): Gain complete understanding, assume nothing. o Be Safe / Think Safe: Both in your actions and in what you implement.
Page 68

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339}

3.6.5 Kanban

( )

Kanban (), literally meaning "signboard" or "billboard", is a concept related to lean and just-in-time (JIT) production. According to Taiichi Ohno, the man credited with developing Just-in-time, kanban is one means through which JIT is achieved. Kanban is not an inventory control system. Rather, it is a scheduling system that tells you what to produce, when to produce it, and how much to produce.

Representation of Kanban System

The need to maintain a high rate of improvements led Toyota to devise the kanban system. Kanban became an effective tool to support the running of the production system as a whole. In addition, it proved to be an excellent way for promoting improvements because reducing the number of kanban in circulation highlighted problem areas. A system that creates product that is then sold after it is produced is called a push system. If there is no mechanism to keep work in work-in-progress below some level that is consistent with product demand, production output can become excessive, which can lead to many problems, including product storage. In pull systems, products are created at a pace that matches customer demand. Kanbans are used to buffer variations in customer or next process step demands. A most familiar form of kanban is the American-style supermarket where each product has a short-term buffer, replenished at the rate of customer demand. The Japanese word kanban refers to the pulling of a product through a production process. The intent of kanban is to signal a preceding process that the next process needs parts or material. A bottleneck is a system constraint. In a pull system, the bottleneck should be used to regulate the pace for the entire production line. Buffers in high-volume manufacturing serve to balance the line. Its important that such operations receive the necessary supplies in a timely basis and that poorly sequenced work does not interfere with the
Page 69

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} process completion. Pull systems address what the external and internal customers need when they want it. Kanban cards: Kanban cards are a key component of Kanban that utilizes cards to signal the need to move materials within a manufacturing or production facility or move materials from an outside supplier to the production facility. The Kanban card is, in effect, a message that signals depletion of product, parts or inventory that when received will trigger the replenishment of that product, part or inventory. Consumption drives demand for more. Demand for more is signaled by Kanban card. Kanban cards therefore help to create a demanddriven system. It is widely espoused[citation needed] by proponents of Lean production and manufacturing that demand-driven systems lead to faster turnarounds in production and lower inventory levels, helping companies implementing such systems to be more competitive. Kanban cards, in keeping with the principles of Kanban, should simply convey the need for more materials. A red card lying in an empty parts cart would easily convey to whomever it would concern that more parts are needed. In the last few years, Electronic Kanban systems, which send Kanban signals electronically, have become more widespread. While this is leading to a reduction in the use of Kanban cards in aggregate, it is common in modern Lean production facilities to still find widespread usage of Kanban cards. In Oracle ERP, KANBAN is used for signaling demand to vendors through email notifications. When stock of a particular component is depleted by quantity assigned on Kanban card, A "Kanban trigger" is created which may be manual or automatic, a purchase order is released with predefined quantity for the vendor defined on the card, and the vendor is expected to dispatch material within lead time.[citation needed] This system is also available in enterprise resource planning software such as SAP ERP or Microsoft Dynamics AX. Toyota's six rules: 1) Do not send defective products to the subsequent process 2) The subsequent process comes to withdraw only what is needed
Page 70

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 3) Produce only the exact quantity withdrawn by the subsequent process 4) Level the production 5) Kanban is a means to fine tuning 6) Stabilize and rationalize the process Benefits of Kanban: 1) Reduce inventory and product obsolescence 2) Reduces waste and scrap 3) Provides flexibility in production 4) Increases Output 5) Reduces Total Cost

3.6.6 Takt Time The Rhythm Of Lean Manufacturing: Takt time is derived from the German word, Taktzeit, and can be literally translated to mean cycle time. Traditionally, Takt time is the maximum time per unit that a production line is allowed to produce a quality product in order to meet demand. The Takt time is computed by dividing the time demand (units required per day) by the net time available to work (minutes of work per day). This will give you a unit of minutes of work per unit required, and provides for a good description of what Takt Time really is. The end goal of determining the Takt time is to produce products at a pace that mirrors what the customers demand is. By meeting the demand from the customer, the inventory is kept to a minimum and thus costs are also minimized.

3.6.7 Total Productive Maintenance (TPM): Introduction: Total productive maintenance (TPM) is a method to improve and enhance manufacturing productivity. It is the practical application of data from equipment availability, schedule attainment, and product quality. Through these measurements, the overall equipment efficiency indicates the best use of resources. TPM is not just a maintenance strategy, but a more
Page 71

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} comprehensive approach to productivity improvements. To think that TPM is only a maintenance strategy would be to miss the complexity of the concept, and underestimate the potential for improvements. It should also be noted that TPM can be difficult to understand, particularly from an engineering perspective. Though the basic measures are quite familiar to most people, it is the utilization of these measurements that can be confusing. If we were to visualize a brick wall, it would be easy to measure and define the dimensions of the bricks, but more difficult to quantify the mortar that holds them together. Without the mortar, each brick is independent, without connection to the other bricks. This visualization attempts to illustrate the concept of TPM as it relates to standard engineering measures and practices. Just as the mortar in the wall brings the individual bricks together to form a solid mass of strength with definable performance, TPM brings information and functions together in a comprehensive way to better identify actual performance levels, and better quantify improvement opportunities in manufacturing. The practical study of total productive maintenance requires minimal technical expertise. If an individual has a fairly good level of mechanical comprehension, basic TPM concepts should prove only moderate challenges. When a practical application is attempted, managerial and engineering expertise will also be necessary. For most managers and engineers, TPM will be a logical application of already understood concepts. The World Of TPM: Total productive maintenance is a widely discussed subject. TPM requires patience, understanding, leadership, and a keen eye for details. It can help plant operations to increase productivity and reduce costs. This is achieved through the determination of current manufacturing performance (the baseline), and the opportunities to improve. Through the use of overall equipment efficiency (OEE), the baseline can be compared to competitive performance. For example, if a plant has a performance of 60 percent OEE and the competition has an OEE of 90 percent, there is a 50 percent opportunity for improvement. The most effective TPM installations usually require modified concepts and technical applications to fit a precise need; most plants will thus need a custom installation specifically designed for a single location. In some facilities, a plant will be operating continuously 7 days per week, 24 hours per day. In another facility, operations will need very different improvements in utilization, performance efficiency, and quality. The personnel, operating philosophies, goals and objectives will likewise be very different. To install TPM in these plants, custom-made, and quite dissimilar installations will be required to meet each plants specific needs.
Page 72

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} The Japanese and TPM: In the 1960s the Japanese developed an improved maintenance process, called total productive maintenance, which became quite efficient. The key to their success was the application of inherent concepts within their corporate culture, such as teamwork and long-range planning, which were based on long-term management commitments. Because the culture supported collaboration, the sharing of information, performance levels, and teamwork, TPM was a natural result. Again, equipment maintenance concepts are only a portion of an application of TPM.

TPM Practical Benefits

Other TPM Applications: Common production techniques include a just-in-time (JIT) element, which is necessary for operational efficiency, quality, and cost control. However, a breakdown in the middle of a JIT run is detrimental to quality, cost, and customer delivery. Through increased utilization of equipment, better monitoring and coordination of planned downtimeas well as better equipment maintenancewill improve dependability, and such breakdowns can to a large extent be avoided. The application of a properly installed TPM process will enhance ongoing efforts in the following areas (without new equipment): Just-in-time Cycle time reduction Setup reduction Cost control Skills training Teamwork Capacity expansion

Typical TPM organization

Page 73

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} In lean manufacturing one machine breakdown will not be just another breakdown since it can hold the entire production flow as there is no WIP to consume in the time of the machine breakdown. Therefore it is very important to have a correct maintenance process to become a lean manufacturer. TPM has three main areas. They are (1) Preventive maintenance (2) Corrective maintenance (3) Maintenance prevention o Preventive maintenance is to continuous checking and prevention of major maintenance. Regular checkups are planned and carried over. Each and every person who is working in a work station might be responsible for checking up and cleaning etc in order to prevent any problems from occurring.

o Corrective maintenance These corrective maintenances can vary from very simple to very complex. People who are working with these machinery might be able to fix most of the simpler problems while a team of specially trained people might be required to do the complex jobs. o Maintenance prevention is one of the key aspects which make the path to become lean. This is the process where the decisions are made in order to prevent maintenance. This process might include decisions like buying correct machinery for the job, training people to overcome most common problems etc.

Page 74

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} Safety: In each location where TPM is installed, equipment becomes the first focus of improvements. When equipment runs better, personnel have fewer problems operating and maintaining it. As a result, the personnel have to enter the operating envelope of the equipment fewer times, and because it is operating better, their risks of injury are reduced. When establishing cleaning procedures for the equipment, one of the first activities in a TPM installation is to identify energy isolation points. Their locations are called out in cleaning procedures, visual identifications are created, and approvals are obtained and documented.

3.6.8 Work Flow Diagram An Important Lean Tool: The workflow can be used as a great learning tool, especially for newcomers to the organization, which is an ISO requirement. Additionally, they should be characteristic to the company with its own terminology such as silos, teams, projects, and hierarchies.

In reality, it is often hard to trace the exact path of a task or document, especially when functional tasks and operational teams are not clearly defined. The workflow will often be better represented by a series of intertwined webs instead of clearly defined paths and flowing roadmaps. It is very common for a company to employ the use of software to help in defining and managing the workflows associated with a company. After it is defined and improved, the end result is usually a better overall understanding of the companys processes as well as improved efficiency, less complicated processes, improved process control and better quality and standardization. If all of the members of a workflow and business understand where their place is in the workflow and how they are supposed to interact with other teams and organizations inside of the workflow, the results are sometimes amazing at the level of improvement that is possible. When a company first decides that it wants to employ lean processes, they
Page 75

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} usually start with a workflow diagram. Most managers and company executives are shocked to find out the inefficiencies that occur inside of their organizations. It is also a great way to make a big difference quickly by reminding, or informing all personnel that operate inside the workflow of what they should be doing with respect to processing the documents or materials that they handle.

3.6.9 Value Stream Mapping (VSM): VSM is used to identify the areas in which a large amount of waste exists. This gives the quality team a good idea where to focus their efforts and lean processes. By practicing VSM, a company can also streamline their business processes and achieve record levels of productivity.

More commonly known as Material and Information Flow Mapping, VSM seeks to analyze and optimize the flow of materials and information necessary to bring a product or service to a consumer. As you might expect, the simpler,
Page 76

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} more straight-line, and clearly defined the processes or value stream is, the more efficiently the company will run. If used correctly, VSM can be used in many different industries and processes, from customer service, to consulting services, and from optimizing manufacturing lines to paperwork reduction. No matter what industry, effort, or process, there are a few steps which outline the processes necessary for mapping the different value streams. Many times, VSM is used in conjunction with the first S, Sort, in the 5S model. It can also be used when trying to achieve a visual workplace, something else that goes after the same objectives. In fact, the Sort phase of 5S talks about finding out what the most efficient stream of information and parts flowing is and how to achieve that by removing the unnecessary tools and equipment are on the shop floor.

3.6.10 Cause And Effect Diagram: Cause-and-effect diagrams or Ishakawa diagram are charts that identify potential causes for particular quality problems. They are often called fishbone

diagrams because they look like the bones of a fish. A general cause-andeffect diagram is shown in Figure. The head of the fish is the quality problem, such as damaged zippers on a garment or broken valves on a tire. The diagram is drawn so that the spine of the fish connects the head to the possible cause of the problem. Typically, a fishbone analysis plots four major classifications of potential causes (i.e., man, machine, material, and methods), but can include any combination of categories related to the machines, workers, measurement, suppliers, materials, and many other aspects of the production process. Each of these possible causes can then have smaller bones that address specific issues that relate to each cause. For example, a problem with machines could be due to a need for adjustment, old equipment, or tooling problems. Similarly, a problem with workers could be related to lack of training, poor supervision, or fatigue. Cause-and-effect diagrams are problem-solving tools commonly used by quality control teams. Specific causes of problems can be explored through brainstorming. The
Page 77

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} development of a cause-and-effect diagram requires the team to think through all the possible causes of poor quality.

Like most of the failure-analysis methods, this approach relies on a logical evaluation of actions or changes that lead to a specific event, such as machine failure. The only difference between this approach and other methods is the use of the fish-shaped graph to plot the cause-effect relationship between specific actions, or changes, and the end result or event.

This approach has one serious limitation. The fishbone graph does not provide a clear sequence of events that leads to failure. Instead, it displays all of the possible causes that may have contributed to the event. While this is useful, it does not isolate the specific factors that caused the event. Other approaches provide the means to isolate specific changes, omissions, or actions that caused the failure, release, accident, or other event being investigated.
Page 78