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Lean Manufacturing

CHAPTER – 1 A BRIEF HISTORY OF LEAN MANUFACTURING
In 1900’s U.S. manufacturers like Henry ford brought the concept of mass production. U.S. manufacturers have always searched for efficiency strategies that help reduce costs, improve output, establish competitive position, and increase market share. Early process oriented mass production manufacturing methods common before World War II shifted afterwards to the results-oriented, output-focused, production systems that control most of today's manufacturing businesses. Japanese manufacturers re-building after the Second World War were facing declining human, material, and financial resources. The problems they faced in manufacturing were vastly different from their Western counterparts. These circumstances led to the development of new, lower cost, manufacturing practices. Early Japanese leaders such as the Toyota Motor Company's Eiji Toyoda, Taiichi Ohno, and Shingeo Shingo developed a disciplined, processfocused production system now known as the "lean production." The objective of this system was to minimize the consumption of resources that added no value to a product. The "lean manufacturing" concept was popularized in American factories in large part by the Massachusetts Institute of Technology study of the movement from mass production toward production as described in The Machine That Changed the World, (Womack, Jones & Roos, 1990), which discussed the significant performance gap between Western and Japanese automotive industries. This book described the important elements accounting for superior performance as lean production. The term "lean" was used because Japanese business methods used less human effort, capital investment, floor space, materials, and time in all aspects of operations. The resulting competition among U.S. and Japanese automakers over the last 25 years has lead to the adoption of these principles within all U.S. manufacturing businesses. Now it has got global acceptance and is adopted by industries world over to keep up with the fast moving and competing industrial field.

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Lean Manufacturing

CHAPTER-2 WHAT IS LEAN MANUFACTURING?
Lean manufacturing is a manufacturing system and philosophy that was originally developed by Toyota, Japan and is now used by many manufacturers throughout the world. Lean Manufacturing can be defined as: "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 term lean manufacturing is a more generic term and refers to the general principles and further developments of becoming lean. The term lean is very apt because in lean manufacturing the emphasis is on cutting out “FAT” or wastes in manufacturing process. Waste is defined as anything that does not add any value to the product. It could be defined as anything the customer is not willing to pay for. Manufacturing philosophy is pivoted on designing a manufacturing system that perfectly blends together the fundamentals of minimizing costs and maximizing profit. These fundamentals are Man (labour), Materials and Machines (equipments) called the 3 M’s of manufacturing. A well-balanced 3M is resulted through lean manufacturing.

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Overproduction means making more than is required by the next process. It is the result of producing to speculative demand. supplier networks. less inventory. product design. Causes for overproduction waste include: • • • • • • • Just-in-case logic Misuse of automation Long process setup Unleveled scheduling Unbalanced work load Over engineered Redundant inspections 3. and less space to become highly responsive to customer demand while producing top quality products in the most efficient and economical manner possible. The principle is to maximize the utilization/efficiency of the worker instead of maximizing the utilization of the machines.2 Waiting For a machine to process should be eliminated. Typically the types of waste considered in a lean manufacturing system include: 3. making earlier than is required by the next process. a "waste" is anything that the customer is not willing to pay for.Lean Manufacturing CHAPTER-3 WASTES IN MANUFACTURING The aim of Lean Manufacturing is the elimination of waste in every area of production including customer relations. or making faster than is required by the next process. It is visible as storage of material. less time to develop products. and factory management.1 Overproduction To produce more than demanded or produce it before it is needed. Dept. Its goal is to incorporate less human effort. of Mechanical Engineering 3 . Essentially.

3 Inventory or Work in Process (WIP) This is material between operations due to large lot production or processes with long cycle times.Lean Manufacturing Causes of waiting waste include: • • • • • • Unbalanced work load Unplanned maintenance Long process set-up times Misuses of automation Upstream quality problems Unleveled scheduling 3. All unnecessary processing steps should be eliminated.4 Processing waste It should be minimized by asking why a specific processing step is needed and why a specific product is produced. of Mechanical Engineering 4 . Causes of excess inventory include: • • • • • • • • Protecting the company from inefficiencies and unexpected problems Product complexity Unleveled scheduling Poor market forecast Unbalanced workload Unreliable shipments by suppliers Misunderstood communications Reward systems 3. Causes for processing waste include: • • Product changes without process changes Just-in-case logic Dept.

g. Instead of automating wasted motion. it should be minimized or eliminated (e. Causes of transportation waste include: • • • Poor plant layout Poor understanding of the process flow for production Large batch sizes. forming cells). due to the inappropriate location of tools and parts) is waste. and transport (e.g. Causes of motion waste include: • • • • • Poor people/machine effectiveness Inconsistent work methods Unfavorable facility or cell layout Poor workplace organization and housekeeping Extra "busy" movements while waiting Dept. the operation itself should be improved. machines.6 Motion Motion of the workers. long lead times.Lean Manufacturing • • • • • True customer requirements undefined Over processing to accommodate downtime Lack of communications Redundant approvals Extra copies/excessive information 3. and large storage areas 3. Instead of improving the transportation.5 Transportation This does not add any value to the product. of Mechanical Engineering 5 .

7 Making defective products This is pure waste. Causes of processing waste include: • • • • • • • Weak process control Poor quality Unbalanced inventory level Deficient planned maintenance Inadequate education/training/work instructions Product design Customer needs not understood 3. high turnover strategy Nearly every waste in the production process can fit into at least one of these categories. and in the utilization of production labor. Lean manufacturing is an approach that eliminates waste by reducing costs in the overall production process. Dept. Causes of people waste include: • • • • Old guard thinking. the business culture Poor hiring practices Low or no investment in training Low pay. in operations within that process. politics. not the improvement of one or more individual operations.8 Underutilizing people Not taking advantage of people's abilities. of Mechanical Engineering 6 .Lean Manufacturing 3. Prevent the occurrence of defects instead of finding and repairing defects. Those that understand the concept deeply view waste as the singular enemy that greatly limits business performance and threatens prosperity unless it is relentlessly eliminated over time. The focus is on making the entire process flow.

Rest 35% activities are such that even though this doesn’t add any value but still it cannot be eliminated as it is necessary. this forms the basis for a lean production system. Rest of the process does not add any value. Inventory cannot be completely reduced. can it be reduced? Out of the complete processes in an industry only about 5 % actually add value to the product. When these elements are focused in the areas of cost. quality and delivery. Is the activity adding value? If YES Is this the best way to do it? If NO Can it be eliminated? If not. it may take few minutes to load unload and load for next operation etc.Lean Manufacturing CHAPTER-4 ELEMENTS OF LEAN MANUFACTURING Those concepts that lead to the implementation of lean manufacturing successfully are called elements of lean manufacturing. The basic elements of lean manufacturing are waste elimination. one-piece workflow. Seeing whether the process is adding value to the product or not is the best way to identify wastes. For eg. cellular manufacturing and 5S’s. scrap materials cannot be made zero. continuous improvement. 4. So focus should be on complete elimination of waste activities and reducing the necessary non-value adding activities Dept.1 Elimination of waste Waste is anything that doesn’t add value to the product. of Mechanical Engineering 7 . pull system.

of Mechanical Engineering 8 . Japanese rather than maintaining the improvement they have achieved they concentrated in continuously improving their work.3 Pull system Dept. Improvement is classified into innovations and kaizen. Innovations are those improvements which cause drastic changes. 4. These occur due to huge technological advancements in the field of research and development. Kaizen include small small improvements done by lower order employees. lead-time reduction etc. So the focus should be on how you can improve your work than the same done last time.Lean Manufacturing 4. According to the level of employees the type of improvements each should focus are as shown below: In order to achieve continuous improvement the work culture of the workers should be modified. This lead to the development of concept called continuous improvement. The workers should be aimed at improving their work each time they do it. This improvement can be in any field like quality. error proofing.2 continuous improvement Japanese looked at improving their work every time they do it. These are mostly done by high level engineers.

Lean Manufacturing Manufacturing system can be divided into two 1) Push system – Here the products are made according to the market forecast and not according to the current demand. So here the information flow is in the same direction as the product flow. Information Flow Supplier Process A WIP Raw Matl Process B Process C Fin. Goods Customer Part Flow 4. Traditional batch production in mass production is replaced by one piece flow Dept. of Mechanical Engineering 9 . Thus the product is pushed through the production line. Hence the customer pulls the product through the production line. Here no piling of finished products occurs as the production is according to the customer demand.Here the product is made according to the customer demand. So the information of the quantity and type of product flow in the opposite direction to that of the product. Information Flow WIP Raw Process A Supplier Matl Fin.4 One-piece flow One piece flow is one of the important techniques in implementing lean manufacturing. Goods WIP Process B Process C Customer Part Flow 2)Pull system. So there may chance of piling of finished goods as there are always fluctuation in demand.

• Batch & Queue Processing Proces s Proces s Proces s C A B 10 minutes 10 minutes 10 minutes Lead Time: 30+ minutes for total order 21+ minutes for first piece • One piece flow Proces Proces Proces s s B s C A 12 min.5 Cellular manufacturing In traditional mass production machines are arranged according to its functions. for first part From the above example it is clear that the lead time can be reduced to almost 40% of the lead time when it was batch production. Also it can be noted that it takes about 85% less time for the first part to be produced.Lean Manufacturing in lean manufacturing. Thus product can be produced according to current demand quickly. for total order 3 min. Following figures show how effective is one piece flow over batch production. But in cellular manufacturing machines are arranged according to the processes involved in Dept. This reduces the total lead time and also reduces waiting between operations or queuing. of Mechanical Engineering 10 . Here batch size is reduced to almost one. 4.

Simplified Scheduling 9. Less Material Handling 5. The plants layout is designed in such a way that transportation between machineries is reduced to minimum. Shorter Lead Time 2. Departmental conflicts eliminated 8.Less potential rework or scrap 4. The 5S’s are: Dept.6 The 5 S’s It is the Japanese method of keeping the work place clean and tidy. Improved Quality . FUNCTIONAL CELLS CELL ADVANTAGES OVER FUNCTIONAL DEPARTMENT 1. Reduced Inventory 7. Improved Coordination 6. of Mechanical Engineering 11 .Quicker problem identification 3. Less Space Required 4. Improved Quality .Lean Manufacturing production. For the implementation of such a good plant layout deep knowledge of processes as well as proper analysis of processes involved in production is necessary. This helps in reducing many unnecessary movements. Following figures shows the diagrammatic representation of both forms of floor arrangement.

relocate out of place items. •Set in Order (Seiton) .Identify the best location for remaining items. moved or given away.Perform “Sort Through and Sort Out. •Sustain (Shitsuke) . Within a predetermined time the red tag items are disposed. inside and out.Ensure adherence to the 5S standards through communication. training.Clean everything.Lean Manufacturing •Sort (Seiri) . and self-discipline. and install temporary location indicators. set inventory limits. •Shine (Seiso) .Create the rules for maintaining and controlling the first 3S’s and use visual controls. Dept. •Standardize (Seiketsu) . sold.” by placing a red tag on all unneeded items and moving them to a temporary holding area. of Mechanical Engineering 12 .

5 Atmosphere of experimentation • • Tolerating mistakes.3 Share information and manage expectations 5. of Mechanical Engineering 13 .e.6 Installing "enlightened" and realistic performance measures. and reward systems Do away with rigid performance goals during implementation • Measure results and not number activities/events Dept. people. particularly operations managers • • Remove roadblocks (i. evaluation.1 Prepare and motivate people • Widespread orientation to Continuous Improvement. etc.Lean Manufacturing CHAPTER-5 KEYS TO LEAN SUCCESS Following are some considerations to successful lean implementation: 5.2 Employee involvement • • Push decision making and system development down to the "lowest levels" Trained and truly empowered people 5. patience. Willingness to take risks 5. training and recruiting workers with appropriate skills Create common understanding of need to change to lean • 5. quality.4 Identify and empower champions. systems) Make it both directive yet empowering 5. layout.

of Mechanical Engineering 14 . extend across ENTIRE organization. to key macro level performance targets (i. delivery. long term. Dept. inventory turns.Lean Manufacturing • Tie improvements.e. overall cost reductions) After early wins in operations. quality.

equipment abnormalities. and organizational deficiencies. Lean organizations are capable of producing high-quality products economically in lower volumes and bringing them to market faster than mass producers. A key difference in Lean Manufacturing is that it is based on the concept that production can and should be driven by real customer demand. when they want it. Dept. Lean management is about operating the most efficient and effective organization possible. and only in the quantities they order Customer Satisfaction Leadership Leadership by vision and broad participation Flat structures that encourage initiative and encourage the flow of vital information that highlights defects. operator errors. equipment abnormalities. and organizational deficiencies. Instead of pushing product to market. with a fraction of the normal work-in-process inventory. Organization Hierarchical structures that encourage following orders and discourage the flow of vital information that highlights defects.Lean Manufacturing CHAPTER-6 COMPARISON BETWEEN TRADITIONAL AND LEAN MANUFACTURING For years manufacturers have created products in anticipation of having a market for them. at half the cost. operator errors. Lean Manufacturing can produce what your customer wants with shorter lead times. dispose of unused inventory at sale prices Leadership by executive command Makes what customers want with zero defect. it's pulled there through a system that's set up to quickly respond to customer demand. with the least cost and zero waste.1 OVERALL ORGANIZATIONAL CHARACTERISTICS: TRADITIONAL MASS PRODUCTION Business Strategy LEAN PRODUCTION Product-out strategy focused on Customer focused strategy focused on exploiting economies of scale of stable identifying and exploiting shifting product designs and non-unique competitive advantage. 6. of Mechanical Engineering 15 . A lean organization can make twice as much product with twice the quality and half the time and space. technologies Makes what engineers want in large quantities at statistically acceptable quality levels. Operations have traditionally been driven by sales forecasts and firms tended to stockpile inventories in case they were needed. Instead of producing what you hope to sell.

hypothesis generation. cell-type layout. and based on one-piece flow between operations Dept. and no problem solving skills Maintenance by maintenance specialists Smart tools that assume standardized work. inventories massive inventories Dumb tools that assume an extreme division of labor. product is sent ahead of each operation Small. one-piece flow. and experimentation Equipment management by production. subculture of alienation and labor strife Based on long-term relationships Information-rich management based on visual control systems maintained by all employees Harmonious culture of involvement based on long-term development of human resources Cultural Production Large-scale machines. maintenance and engineering Operational capability Maintenance Engineering "Isolated genius" model. functional layout. with large batches moving between operations. Team-based model. with high input from with little input from customers and concurrent development of customers and little respect product and production process design for production realities. Human-scale machines. strength in problem identification.2 MANUFACTURING METHODS: TRADITIONAL MASS PRODUCTION Production schedules are based on… Products manufactured to… Production cycle times are… Manufacturing lot size quantities are… LEAN PRODUCTON Forecast — product is pushed Customer Order — product is pulled through the facility through the facility Replenish finished goods inventory Weeks/months Fill customer orders (immediate shipments) Hours/days Large. of Mechanical Engineering 16 . 6.Lean Manufacturing External Relations Information Management Based on price Information-weak management based on abstract reports Culture of loyalty and obedience. zero skills. long production runs. minimal multi-skilling. the following of orders.

and central storeroom for in-process staging Low — 6-9 turns pr year or less Inventory turns are… High — 20+ turns per year Flexibility in changing manufacturing schedules is… Low — difficult to handle and High — easy to adjust to and implement adjust to Manufacturing costs are… Rising and difficult to control Stable/decreasing and under control Dept. ship often Through lot sampling One person per machine Worker empowerment is… Low — little input into how operation is performed Inventory levels are… High — large warehouse of finished goods. of Mechanical Engineering 17 .Lean Manufacturing Plant and equipment layout is… Quality is assured… Workers are typically assigned… By department function By product flow. using cells or lines for product families 100% at the production source With one person handling several machines High — has responsibility for identifying and implementing improvements Low — small amounts between operations.

Dept.2002. There are many other benefits also which directly or indirectly affects the performance of the industry. Lead Time Reduction Productivity Increase WIP Reduction Quality Improvement Space Utilization 0 Percentage of Benefits Achieved 25 50 75 100 (From ERC staff meeting. of Mechanical Engineering 18 .Lean Manufacturing CHAPTER-7 BENEFITS OF LEAN MANUFACTURING According to the study conducted in various industries world over the main benefits achieved by implementation of lean manufacturing is as shown below.Maryland University) Establishment and mastering of a lean production system would allow you to achieve the following benefits: • Lead time is reduced by 90% is increased by 50% • Productivity • Work in process is reduced by 80% is improved by 80% • Quality • Space utilization is increased by 75% These are areas in an establishment that directly affects its survival. march 20.

by continually focusing on waste reduction. CHAPTER-8 Dept.Lean Manufacturing OTHER BENEFITS                    Reduced scrap and waste Reduced inventory costs Cross-trained employees Reduced cycle time Reduced obsolescence Lower space/facility requirements High quality & reliability Lower overall costs Self-directed work teams Lead time reduction Fast market response Longer machine life Improved customer communication Lower inventories Improved vendor support and quality Higher labor efficiency and quality Improved flexibility in reacting to changes Allows more strategic management focus Increased shipping and billing frequencies However. of Mechanical Engineering 19 . there are truly no ends to the benefits that can be achieved.

of Mechanical Engineering 20 . b.advancedmanufacturing. The challenge: To reduce high finished goods.com) Dept. Implemented "one-piece flow" philosophy.Lean Manufacturing CASE STUDY The company: The Parker Hannifin Aircraft Wheel & Brake Division. c. Integrate product-lines where feasible. Measured results: • 1. of floor space (40 percent of area).200 sq. Kit. spares components and work-in-process inventory levels and the need to reduce long engineering and manufacturing cycle times. d. The product: Designer and manufacturer of aerospace commercial and military wheel and brake systems. Saved approximately 3. Reduced F-A Cycle Time from 30 to 4 days. The project objectives: • 1. (www. Eliminated Build-to-Stock paradigm. a. Texas-based lean manufacturing consulting and training firm. • 2. build. Integrated four product-lines into three. Minimize operational transportation. pack & ship in one day. Reduce total Final Assembly (F-A) cycle time from 30 to 15 days. Reduced Transportation up to 30 percent. b. b. ft. This case study was provided by FlowCycle. Optimize available floor space. a. • 2. Redesign F-A operations to: a.

of Mechanical Engineering 21 . focusing on quality and enhancing the effectiveness of the work force.T. It needs lot of commitment and hard work. The more you eliminate waste the more you become lean. Lean manufacturing cannot be attained in one day or one week or one month or in a year.Lean Manufacturing CHAPTER-9 CONCLUSION “LEAN” can be said as adding value by eliminating waste being responsive to change. service etc in order to reduce production cost and meet changing customer needs. In universities like MIT. Many consulting firms are also functioning for proper guidance to those who are interested in lean. Maryland university etc Lean manufacturing is included into the syllabus and it is given importance to new entrepreneurs. That is why it is said that: “lean is a journey” Dept. It is also important as it emphasis customer satisfaction. Although lean has its origin in the automobile industry it is being successfully used in other production industries. Lean has made its way into curriculum of major universities around the world. Since lean is completely customer oriented it is here to stay. Lean manufacturing is now extended to fields like I. Also there is no end in lean manufacturing.

www.1000ventures.com 3. www.Lean Manufacturing REFERENCES 1.com 4.: “Total quality management”. Besterfield. Dale H.advancedmanufacturing.com Dept.mamtc. www. of Mechanical Engineering 22 . (Pearson education) 2.