UNIT-1

Brief history of lean manufacturing Just in time Toyota systems Pioneers of lean manufacturing - Ohno and Shingo Benefits of lean manufacturing Theory of constraints Reduction of wastes

--------------------------------------------------------------------------------Prepared By

Vezhavendhan R
Assistant Professor Manufacturing Divn. SMBS, VIT University Vellore- 632014, T.N.

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 out side. 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. Every part moved without interruptions to the next value adding point. Parts are manufactured and assembled in a continuous flow. Even Henry Ford may not have understood the basics behind his system. But it saved lots of money and made Henry Ford a richest on the planet at that time. Although very successful in the initial years, Ford system had it drawbacks. One of the major drawbacks was that its inability to the change. This was due to the push strategy implemented in the Fords system. They relied on keeping machine busy without thinking about the final outcome. They had huge stocks in the form of finished goods and in the form of Work In Progress. This led to the inflexibility of the system. Also this wasted money unnoticed. Another major draw back of the system was the poor handling of the human resource. This led to have a less motivated set of people in the organization. But in Japan, they studied the system very well and saw the problems that Ford system had. But the core concept of the Ford system was obeyed. This is the continuous flow of value system. Anything distracting it treated as a waste. Various pioneered work from people like Deming and Juran in the field of quality improvement was used in the system. This bought built in quality to the system. More importantly Ohno and Shingo understood the drawbacks in the push system and understood the role played by the inventory. This led to Pull system rather than the push system, where the parts are produced only when they are pulled by the process before that. This is similar to the concepts in the super markets. When the shells are being emptied (that is when people buy the product), they are refilled with new ones. 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 allover the world. Experiences and knowledge vastly improved the system. 2

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. 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.

Just In Time
The American Production and Inventory Control Society (APICS) defines JIT as A philosophy of manufacturing based on planned elimination of waste and continuous improvement of productivity. Other definitions: A system for high-volume production with minimal inventory (raw materials, WIP, finished goods). involves timed arrivals @ workstation reduced buffer stocks no waste in production system a Pull system thru the plant A management philosophy Expose problems & bottlenecks Take away security blanket Streamlined production factory & warehouse networks

The primary elements of Just-in-Time are: to have only the required inventory when needed; to improve quality to zero defects; to reduce lead times by reducing setup times, queue lengths, and lot sizes; to incrementally revise the operations themselves; and to accomplish these things at minimum cost. The synonyms of JIT are as follows: Several companies follow JIT is different ways. The following are few examples of what companies call JIT practices. IBM HP GE Motorola Japanese Boeing Continuous Flow Manufacturing Stockless Production Repetitive Manufacturing System Management by Sight Short Cycle Manufacturing The Toyota System Lean Manufacturing 3

JIT Principles: Toyota introduced JIT in the 1950s and they still continue to refine it.. It was first introduced to the North America during the 1980s along with quality circles, statistical process control and other Japanese innovations. JIT enjoyed a bloom initials and later wilted as the grounds proved infertile JIT production follow a few simple rules which are as follows o o o o o o Dont produce something unless a customer has ordered it Level demand so that work may proceed smoothly throughout the plant Link all processes to customer demand through simple visual tools Maximize the flexibility of people and machinery Improve quality and eliminate defects Reduce raw material and finished goods inventory

Advantages of JIT: Companies that are characterized by a highly repetitive work environment are best suited to the JIT approach. They can make use of the following advantages of JIT o o o o o Low inventory investments Good forecasting abilities that can establish customer demand Highly flexible production lines that can produce a selection of different items Simplified administration when there is no inventory to administer Zero waste and reduction of scrap

JIT Production: WHAT IT IS : o Management philosophy o Pull system though the plant WHAT IT DOES o Attacks waste o Exposes problems and bottlenecks o Achieves streamlined production WHAT IT REQUIRES o o o o o Employee participation Industrial engineering/basics Continuing improvement Total quality control Small lot sizes 4

WHAT IT ASSUMES o Stable environment

Elements of JIT Manufacturing o o o o o o o o o Eliminating waste Enforced problem solving and continuous improvement People make JIT work Total Quality Management (TQM) Parallel processing Kanban production control JIT purchasing Reducing inventories Working toward repetitive manufacturing

Benefits of JIT o o o o o o o o o o o Inventory levels are drastically reduced: Frees up working capital for other projects Less space is needed Customer responsiveness increases Lead time is reduced Reduced inventory Total product cycle time drops Improved productivity Product quality is improved Scrap and rework costs go down Forces managers to fix problems and eliminate waste.... or it wont work!

Toyota systems
The first step of the manufacturing revolution began in Japan, with Toyoda family, when they shifted from textile equipment manufacturing to Automobile manufacturing. By late 1940s Japan industry was collapsed and economy was badly affected by the World War II. In addition, Japanese manufacturers faced many problems. Limited sources of raw materials, labor movements, and limited capital availability are few of them. Meanwhile, automobile manufacturers faced another problem. They could not compete with the already existing (Although declining) forces of west. Especially players like Ford, simply out performed small manufacturers like Toyota. Therefore they could not compete on the overseas markets. This made Japanese manufacturers to produce for their local markets. 5

 Challenged by these demands Toyota gave the task of making a system which will stand in these conditions to Taichii Ohno. Ohno with his colleague Shingo created a manufacturing system for next three decades, which is known as Toyota Production System (TPS). Toyotas reputation for producing quality cars remains strong. A key reason behind this and the carmakers financial success, is its Toyota Production System (TPS). This has as its central philosophy the aim of the complete elimination of all waste, whether that waste is in the form of excess stock, an unnecessary process step or defective products. The TPS is based on a number of key principles (see below), such as kaizen, which can be translated as continuous improvement to eliminate waste. The key values of the Toyota way are teamwork, respect, challenge, kaizen and genchi genbutsu. You produce a new product and it can be replicated by a competitor almost immediately, so you have to be always innovating. We are very dealer focused. We have to provide not only a competitive service price wise to dealers, but also be competitive in terms of the length of time it takes to deal with things. We have to be moving and changing all the time and never sit still. TPS PRINCIPLES The Toyota Production System is based on a number of key principles: Just in time: The production process delivers what is needed for the next process when it is needed, rather than simply aiming for mass production to achieve economies of scale. Jidoka : Embodies the idea that machines will stop production as soon as any problem or defect is identified. Kaizen: Continuous improvement to eliminate waste, improve efficiency and product quality. Genchi genbutsu: If a problem arises, assessing the problem directly is more effective than hearing about it through a third party. Challenge: Challenge the status quo. For example, to try and improve service levels or create more efficient budgets. Teamwork: The causes of problems can arise in areas beyond an individuals domain. Multi-skilling enables personnel to help colleagues in other teams at busy periods. Respect: TPS recognizes the intelligence and ability of all staff and gives them responsibility. Respect also extends to the external environment in which the company operates. kaizen can reduce waste through addressing inefficiencies in the provision of customer service. Workers can generate solutions to problems, which they encounter in their own work processes, such as poorly designed showrooms, which may restrict, for example, disabled customers from assessing the vehicles they are interested in. Similarly, it considers the application of genchi genbutsu in car retailers, in terms of really understanding the sales process and the needs of customers: Understanding the customer perspective enhances customer service since it allows sales staff to adapt their 6

selling approach to establish each customers needs. Multi-skilling means that staff teams become adaptable and can help each other at busy times, leading to improved customer service. TPS develops respect for employees and customers. For employees, respect through empowerment gives staff autonomy to make decisions, for example, in negotiating trade-in prices without referring to senior staff. By reducing the communications chain the purchase experience for customers is improved. Respect for customers is shown by the pull focus of TPS in providing what customers want, rather than persuading customers to buy a car which is available, but would not necessarily choose to buy. GENCHI GENBUTSU GOING TO THE SOURCE Improvements are often made as a result of discovering problems. Therefore, problems need to be properly understood through genchi genbutsu, which means going to the source of the problem and assessing it for yourself rather than relying on information supplied by others, in order to gain a complete and accurate understanding. ANDON BOARD The andon board is a simple but highly-visible electronic sign displaying the status of production lines. It notifies management immediately if a worker has identified a fault, precisely identifying its location. Workers take responsibility for production quality, with the power to stop the production line as required. The production line will not be restarted until the reason for the fault has been resolved. STANDARDISATION Another key element for quality assurance is a focus on standardisation. Developing and relying on standardised work tasks not only ensures consistently high levels of quality, but also maintains production pace and provides a benchmark for implementing continuous improvement. The Toyota Production System (TPS) and Lean Production The Toyota Production System is a paradox. On the one hand, every activity, connection, and production flow in a Toyota factory is rigidly scripted. Yet at the same time, Toyota's operations are enormously flexible and responsive to customer demand. How can that be? After an extensive four-year study of the system in more than 40 plants, Bowen and Spear (1999) came to understand that at Toyota it's the very rigidity of the operations that makes the flexibility possible. That's because the company's operations can be seen as a continuous series of controlled experiments. Whenever Toyota defines a specification, it is establishing a hypothesis that is then tested through action. This approach the scientific methodis not imposed on workers, it's ingrained in them. And it stimulates them to engage in the kind of experimentation that is widely recognized as the cornerstone of a learning organization. Toyota invented Lean Production in the 1940s and 50s. The company focused on eliminating wasted time and material from every step of the production process (from raw materials to finished goods). The result was a fast and flexible process that gives the customers what they want, when they want it, at the highest quality and most affordable cost. 7

Toyota improved production by: Eliminating wasted time and resources. Building quality into workplace systems Finding low-cost and yet reliable alternatives to expensive new technology. Perfecting business processes. Building a learning culture for continuous improvement. The Heart of the Toyota Production System: Eliminating Waste The point of the TPS is to minimize time spent on non-value adding activities by Positioning the materials and tools as close as possible to the point of assembly. The Major types of non-value adding waste in business or production process are: 1. Overproduction. 2. Waiting or time on hand. 3. Unnecessary transport or conveyance. 4. Over processing or incorrect processing. 5. Excess inventory. 6. Unnecessary movement. 7. Defects. 8. Unused employee creativity. The Toyota message is consistent: Do the right thing for the company, its employees, the customer and the society as a whole. This long-term philosophy is the guiding post of the company in its continuous quest to offer the best in quality and service to its customers, employees and stockholders. Long-term goal should supersede short-term decision making or goals. Develop, work, grow and align the company towards a common goal that is bigger than making money. Your philosophical mission is and should be the foundation of all your other principles. Toyota is aligned around satisfying the customer. It believes that a satisfied customer comes back and gives more business through referrals. It generates value for the customer, the society and the economy. One of the keys to success of Toyota is that it lives by the philosophy of self reliance and a lets do it ourselves attitude. This can be best illustrated when it ventured into the luxury car industry. It did not buy a company that already made luxury cars. Rather, it created its own luxury division Toyota House Toyota House is seen in the following picture.

Pioneers of lean manufacturing - Ohno and Shingo

Taiichi Ohno and Shigeo Shingo were the primary developers of Lean Manufacturing and the Toyota Production System. Shingo was the thinker while Ohno had the authority and determination.

Shigeo Shingo Career Highlights Dr. Shigeo Shingo In 1955, Dr. Shingo began another long association, this time with Toyota. In addition to his many consulting assignments in other industries. It is during this period that he first started work on setups by doubling the output of an engine bed planer at Mitsubishi's shipyard. In 1959, Dr. Shingo left JMA to start his own consulting company. During the early 1960's, as an outgrowth of work with Matsushita, he developed his concepts of "Mistake-Proofing." In 1969, SMED was originated when he cut the setup time on a 1000 ton press at Toyota from 4.0 hours to 3.0 minutes. 9

Shigeo Shingo was born in 1909 at Saga City, Japan where he attended the Saga Technical High School. After graduation from Yamanashi Technical College in 1930 he went to work for the Taipei Railway Company. In 1943 shingo was transferred to the Amano Manufacturing Plant in Yokohama. As Manufacturing Section Chief, he raised productivity 100%. Shingo worked for several manufacturers in 1945 and 1946

and also began a long association with the Japanese Management Association (JMA). From 1946-1954 Shingo had many assignments, delivered several important papers and crystallized his ideas on process and plant layout. He also applied Statistical Process Control.

During the 1970's, Shingo traveled in Europe and North America on many lectures, visits and assignments. He began to see Toyota's efforts as an integrated system and began to assist several U.S. and European firms in implementation. Dr. Shigeo Shingo has written 14 major books and hundreds of important papers on manufacturing. The Shingo Prize is awarded for excellence in manufacturing as a tribute to Dr. Shingo and his lifelong work. He died in 1990.

Taiichi Ohno Career Highlights Taiichi Ohno was born in Manchuria, China in 1912 and graduated from Nagoya Institute of Technology. He joined Toyota in 1932 and for about twenty years worked his way up in the firm. In the 1940's and early 1950's, Ohno was the assembly manager for Toyota and developed many improvements that eventually became the Toyota Production System. Toyota was verging on bankruptcy during much of this period and could not afford major investments in new equipment or massive inventories. The 1950's also saw the beginning of a long collaboration with Shigeo Shingo and the refinement of their earlier efforts into an integrated Manufacturing Strategy. Ohno's career accelerated as a result of his success as Assembly Shop Manager and he became an executive Vice President in 1975. In the early 1980's, Ohno retired from Toyota and was president of Toyota Gosei, a Toyota subsidiary and supplier. Taiicho Ohno died in Toyota City in 1990.

Benefits of lean manufacturing

Financial benefits of Lean Manufacturing:

Reduction of circulating assets (stock and in-process materials) Reduction of capital used Increase in cash-in-hand, improved return on investment. Work on productivity and profitability Improving the bottom line by reducing production costs. 10

Industrial benefits of Lean Manufacturing:

Less investment for same level of production. Increased production at constant investment. Ecological production, more compact plants. Improved quality.

Commercial benefits of Lean Manufacturing:

Production in phase with customer demand Reduction of delivery times Greater customer satisfaction.

As a company reduces the wastes and strives for single piece flow, many other benefits follow. Some of these benefits include (1) improved quality and fewer defects (2) reduced inventory (3) less space required, (4) enhancement of overall manufacturing flexibility, (5) makes the identification of future kaizens simpler, (6) ensures a safer work environment, (7) improves employee morale. We will review each of these benefits in more detail: (1) Improved quality and fewer defects: When batches and lot production is eliminated, there is less opportunity to manufacture defects. Since the batch size will essentially be one, there will not be mountains of inventory to count, move, store and eventually pick. Furthermore, single piece flow ensures that if there is a quality problem with a particular part, we are sure that the defect has affected just one part. We do not need to dedicate hours isolating and testing the parts in the production run to determine if they meet quality standards. Of course, if a defect is caught in a single piece flow environment, this should not mean that we do not take the appropriate corrective actions to ensure that the problem is not ongoing as it may reoccur. At a high level, these steps include determining if standard work was followed and if so, what changes need to be made to the standard work document to ensure that the problem will never resurface again. Kaizen! (2) Reduced Inventory: Implementing single piece flow will require each operation to only produce what is needed by the next operation (the surgeon). When followed properly, the process will eliminate any opportunity to build ahead. Consequently, inventories will not be allowed to build up. (3) Requires less space: As inventory levels are reduced (see above), less space and manpower will be required to manage (receive, count, stock, store, pick and deliver) them. In addition, single piece flow usually requires creating manufacturing cells that squeeze machines as close together as possible so that a single operator can oversee many machines with the least amount of walking motion. (4) Enhances overall manufacturing flexibility: We know from our value steam maps that the less inventory in a value steam, the shorter the lead-time will be from customer order to product delivery. In a single piece flow environment, since we operate with less inventory, lead-times will also drop which will give us more time to react to customer orders (unless we pass off the lead-time gains to the customer). 11

(5) Makes identifying future kaizens simpler: We have already discussed that in a single piece flow environment, defects and WIP inventories fall. As a result of this reduction, it will become easier to see production problems. After all, if a particular process can not keep up, if defective inventories build up next to a particular machine or if overall customer demand can not be met, this becomes obvious almost the minute it happens. These problems will dictate where to focus the next improvement activity. (6) Ensures a safer work environment: Less inventory means less clutter, more light in the darkest corners of the factory and the opportunity to better lay out equipment and tools. Also, since manufacturing cells are occupied by a set number of employees who each know what to do (as defined by standard work), there is less opportunity for unexpected movements. (7) Improves employee morale: As production problems are identified and solved right away, team members gain more ownership of their work. No longer are operators completing the rework of others, perhaps on another shift. Instead, if they produce defective product, they are more likely to report themselves. After all, that defective product will most likely be noticed in the very next process. This quick build-in feedback encourages team members to speak up, identify a problem, take corrective action and ensure that the problem never resurfaces.

Theory of constraints
The Theory of Constraints (TOC) is a philosophy of management and improvement originally developed by Eliyahu M. Goldratt . It is based on the fact that, like a chain with its weakest link, in any complex system at any point in time, there is most often only one aspect of that system that is limiting its ability to achieve more of its goal. For that system to attain any significant improvement that constraint must be identified and the whole system must be managed with it in mind. The Theory of Constraints (or TOC as it is called) is a one of the most profound developments in the practical aspect of making organizational decisions in situations in which constraints exist. The Theory of Constraints provides a practical framework for managing enterprises with a holistic and focused approach and does away with conflicts between local operating level decisions and global company objectives and goals. A constraint is anything in an organization that limits it from moving toward or achieving its goal. Of course, this assumes that an appropriate goal has been defined. TOC recognizes two types of constraints that can exist in any business - the size notwithstanding. These are - physical constraints and non-physical constraints. A physical constraint is something like the physical capacity of a machine. A non-physical constraint might be something like demand for a product, a corporate procedure, or an individual's paradigm for looking at the world. TOC brings in the powerful 'five focusing step' methodology to identify the constraint in the company and systematically attack the associated problems. The result is dramatic improvements of throughput (or contribution) and customer order due date performance, and inventory reduction. 12

The steps in applying TOC are as follows: 1. Identify the system's constraints.. 2. Decide how to exploit the system's constraints. Once it is decided how to manage the constraints within the system, how about the majority of the resources that are not constraints? The answer is to manage them so that they just provide what is needed to match the output of the constrained resources. 3. Subordinate everything else to the above decision in Step 2. Since the constraints are keeping us from moving toward our goal, all the resources are applied that can assist in breaking them. 4. Elevate the system's constraints. If we continue to work toward breaking a constraint (also called elevating a constraint) at some point the constraint will no longer be a constraint. The constraint will be broken. 5. If the constraint is broken, return to Step 1. When that happens, there will be another constraint, somewhere else in the system that is limiting progress to the goal. The process must be reapplied, perhaps many times. It is very important not to let inertia become a constraint. Most constraints in organization are of their own making. They are the entrenched rules, policies, and procedures that have developed over time. Many times, when we finally break a constraint, we do not go back and review and change the rules and policies that caused the constraint initially. Most constraints in organizations today are policy constraints rather than physical constraints. DR. ELIYAHU GOLDRATT'S "THEORY OF CONSTRAINTS" SERIES will serve as one of the most effective platforms to improve business productivity in Production, Supply Chain, Logistics, Project Management and other important segments. The application of Theory of Constraints reveals the reasons projects never finish on time or within budget or within specifications, and develops an alternate approach to managing projects. THE GOLDRATT-THEORY OF CONSTRAINTS as a holistic approach will enhance the quality of decision-making, improve communication and stimulate new solutions, providing benefits for the entire company. Do you have any one or more of the following issues in your organization?

Severe Cash Shortage Vendors not delivering material on time Not meeting customer schedules Falling Sales Shrinking Profits

And, would you like to

Understand the root cause for all these issues Significantly improve cash availability Improve Vendor reliability Improve On Time delivery 13

Increase sales significantly Increase profits

Addressing the above issues would require fundamental paradigm shifts in policies and measurements. Dr. Eli Goldratt's - Theory of Constraints brings in the powerful methodology to identify the constraint in the company and systematically attack the associated problems. Industry derives a host of advantages while implementing TOC. Besides creating an excellent work environment and motivating employees, it also focuses the company's investment in initiatives such as TQM, TPM, ERP, SCM and CRM.

Reduction of wastes
Manufacturing wastes Waste is defined as anything that does not add value to the final product. As I explained earlier, the wastes are everywhere in many different forms. 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. Since I feel this eighth category is very important I will go by this categorization. Every waste you will come across in your organization or even in day-to-day life will fall into one of these categories. Following are these waste categories. Over production Waiting Work In Progress (WIP) Transportation Inappropriate processing Excess motion or ergonomic problems Defected products Underutilization of employees Although in deferent groups, each one of these is interconnected. Therefore one change will affect the total system. You will see later in this chapter how closely these are interconnected to make the mesh of wastes in every organization. Can all the wastes be avoided? If I am to give a more theoretical answer for the above question, the answer is yes. Yes you can avoid all the wastes 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 14

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. wastes that are avoidable wastes 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 get tons of chances to overcome these problems.

Waste Reduction Waste is commonly defined as non-value-added activity. Lean practitioners identify seven types of waste: 1. Excess (or early) productionProducing more than the customer demands, or producing it earlier than the customer needs it. This ties up valuable labor and material resources that might otherwise be used to respond to customer demand. 2. DelaysWaiting for materials, tools, information, equipment, etc. This may be a result of poor planning, late supplier deliveries, lack of communication, overbooking of equipment, or erratic demand. 3. Transportation (to/from processes)Moving material more often than necessary. Material should be delivered and stored at its point of use. Why receive material at a receiving dock, move it to an inventory location, and then move it to the production floor when it can be delivered and stored where it is used? 4. InventoryStoring more material than is needed. This wastes valuable space and cash. By reducing inventory, plans for warehouse expansion can usually be postponed or canceled. 5. ProcessingDoing more work on a part than is necessary, including inspection and reworking. This wastes time and money. Quality must be built into the manufacturing process so that parts are produced correctly the first time. 15

6. DefectsDefective parts. Defects consume considerable resources. In addition to the original materials and labor used to manufacture the part, extra labor and machine time are required to fix the defective part. If the defective part is sold to a customer, not only will unnecessary shipping costs be lost, but more resources will be consumed to resolve the eventual complaints. 7. MovementExcess motion of employees in getting tools, picking parts, or moving from one point to another. This is usually the result of poorly planned work layout and workflow.

A variety of techniques are available for reducing or eliminating waste. These Techniques Include Value Stream Analysis, Total Quality Management, Total Productive Maintenance, Kaizen Costing And Cost Analysis, Engineering And Change Management, And Document Management.

--------------------------------------------END OF UNIT-1 -----------------------------------------

16