AGILE & LEAN MANUFACTURING

(IM-515)
Course Instructor: Dr. Syed Amir Iqbal.

Course Outline
IM-515 Agile and Lean Manufacturing Introduction to Lean Manufacturing, value concept, lean objectives & tools, origins of lean systems, group technology, 5S, single minute exchange of dies, total productive maintenance, Kaizen, Just-In-Time Manufacturing Systems, Push & Pull Manufacturing Systems, Poka-Yoke, Toyota production system, introduction to agile manufacturing, research projects in agile manufacturing, design of market responsive supply and distributions manufacturing systems.

Books & Reading Materials

The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer by Jeffrey K. Liker LEAN Manufacturing Implementation: A Complete Execution Manual for Any Size Manufacturer by Dennis P. Hobbs Lectures notes

A little about me:

B.E in Mechanical, NED UET Masters in Mechanical Engineering (Specialization in Manufacturing), NED UET Doctor of Philosophy, Mechanical Engineering, The University of Manchester, UK Working / Tecahing Experience: Over 16 years of (combined field and teaching) experience.

Marks Distribution & Grading Scheme

Semester Exam 60% Sessional Work 40% Grading Scheme

LET S KNOW WHO S SITTING NEXT

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YOUR NAME FINAL DEGREE ORGANIZATION JOB TITLE JOB DESCRIPTION EXPERTIES

What is Lean Manufacturing?

Lean manufacturing or thinking is exactly what the name sounds like - it is about 'cut to the bone', fat-trimmed, streamlining operation and organizations. Womack and Jones define lean manufacturing as a five-step process: defining customer value, defining the value stream, making it flow , pulling from the customer back, and striving for excellence. Taiichi Ohno, founder of TPS, said it even more succinctly: All we are doing is looking at the time line from the moment the customer gives us an order to the point when we collect the cash. And we are reducing that time line by removing the non-value-added wastes. Some have referred to lean manufacturing as the TOYOTA PRODUCTION SYSTEM, or JIT (just-in-time) manufacturing, paying attention to things like flow productions, line operations, value streams, Kaizen. Problems most companies face are: the need for fast, flexible processes that give customers what they want, when they want it, at the highest quality and affordable cost.

What is Lean Manufacturing?

Lean Manufacturing, also called Lean Production, is a set of tools and methodologies that aims for the continuous elimination of all waste in the production process. The main benefits of this are lower production costs, increased output and shorter production lead times. More specifically, some of the goals include:
Defects and wastage Cycle Times Inventory levels Labor productivity Utilization of equipment and space Flexibility Output

What is Lean Manufacturing?

Lean = Eliminating Waste

Defect Over production Waiting time Non-utilized people Transportation Inventory Motion Excess processing

What is Lean Manufacturing?

It is a Manufacturing Philosophy which shortens the time line between the customer order and the shipment by eliminating waste.

What is Lean Manufacturing?

Key Principles of Lean Manufacturing:
Key principles behind Lean Manufacturing can be summarized as follows:

Recognition of waste Standard processes Continuous flow Pull-production Quality at the Source Continuous improvement

What is Lean: The Value Concept

Differentiate Value from Waste (Muda) Define Value from Customer s point of View How the Employees see Quality Transform the culture of the Organization: Gap Analysis Employee understanding of: What does Value mean to the customer. How value added activities generate the biggest revenue What contribution he/she can make in value added activities.

What is Lean: The Value Concept

Origin of Lean Systems and JIT How the Lean and JIT Supplement each other How removal of NVA Activities help in JIT.

What is Lean Manufacturing?

History of Lean Manufacturing:
Taiichi Ohno (February 29, 1912 May28, 1990) is
considered to be the father of the Toyota Production System , also known as Lean Manufacturing. He wrote several books about the system, the most popular of which is Toyota Production System. Born in Dalian, China, and a graduate of the Nagoya Technical High School, he was an employee first of the Toyoda family's Toyoda Spinning, then moved to the motor company in 1943, and gradually rose through the ranks to become an executive

What is Lean Manufacturing?

In 1945, Toyoda challenged Taiichi Ohno to learn how to

compete with US Automakers not on building large volumes of similar models, but many models in low volume.
Ohno was given 3 years to develop a system to achieve

this goal.
Ohno went to the US and studied Ford mass assembly

processes at the Rouge River Plant.

What is Lean Manufacturing?

Ohno also studied the supermarket concept of ordering and replenishing stock by a signal system. This resulted in Ohno applying the KANBAN concept to the system he would develop It took Ohno over 20 years to develop the system that became known as The Toyota Production System (TPS)

What is Lean Manufacturing?

Craft Manufacturing
Late 1800 s Car built on blocks in the barn as workers walked around the car. Built by craftsmen with pride Components hand-crafted, hand-fitted Excellent quality Very expensive Few produced

What is Lean Manufacturing?

Mass Manufacturing

Assembly line - Henry Ford 1920s Low skilled labor, simplistic jobs Interchangeable parts Lower quality Affordably priced for the average family Billions produced - identical

What is Lean Manufacturing? Lean Manufacturing

Cells or flexible assembly lines Broader jobs, highly skilled workers, proud of product Interchangeable parts, even more variety Excellent quality mandatory Costs being decreased through process improvements. Global markets and competition.

Way to Toyota
JIT & Mass Production TQM (Deming & Juran)

Employee Empowerment & Kaizen

Toyota Production System (TPS)

Japan becomes the Manufacturing Quality Leader

Mass Production vs. Lean Production

Mass Production
Customer Satisfaction Makes what engineers want in large quantities at statistically accepted quality levels. By Executive command and coercion Individualism and militarystyle bureaucracy Based on price

Lean Production
Makes what customers want with zero defects, when they want it and only the quantities they order By vision and broad participation Team based operations and flat hierarchies Based on long-term relations

Leadership Organization External Relations Information Management

Poor management based on Rich management based on abstract reports generated by visual control systems and for managers maintained by all employees

Mass Production vs. Lean Production

Mass Production
Orientation Supply driven

Lean Production
Customer driven

Planning

Orders are pushed through factory based on production plan/ forecast Large

Orders are pulled through factory based on customer/downstream demand Small

Batch size

Inventory

Buffer of work-in-progress between each production stage

Little or no work-inprogress between each production stage.

Mass Production vs. Lean Production

Mass Production
Culture

Lean Production

Of Loyalty & obedience; Harmonious culture of sub-culture of alienation and involvement based on labor strife human resources & long term relations Large-scale machines, functional layout, minimal skills, long production runs, massive inventories Human scale machines, cell-type layout, multiskill, one-piece flow, zero inventories Equipment management by production & engineering Team-based model, with input from customers & concurrent development of product and process design

Production

Maintenance By Specialists & Quality Design & Engineering Isolated genius model with little input from customers and little respect for production realities

LEAN System - Benefits

15% growth in 1 year 12% Productivity increment in 1 year 20% Space saving in 1 year 90% On Time Delivery in Full 28% Throughputs Lead time reductions Improved Supplier performance Improved Customer Quality Progressive MUDA Elimination

LEAN System - Benefits

Flexible structures assigned to business goals Roles & Responsibilities assigned to business goals Process driven culture Visual demonstration of achievements Increased employee ability and morale Visual abnormal situations Focused application of resources for best return Believable prediction of results

Lean implementation Results

BEFORE Productivity Quality Space WIP Lead Time Absenteeism Variation in Process
(Daily Schedule attainment)

AFTER 40 pr/person 2.1% defects at final audit 36 sq. ft. per person 0.3 units of WIP per unit produced 0.27 days 2.1% daily +/- 10% variation
(Daily Schedule attainment)

IMPACT 60% Improvement 58% less defects 64% less sq. ft. per person 13 times less units in inventory 93% reduction 33% reduction 88% more reliable process
(Daily Schedule attainment)

25 pr/person 4.6% defects at final audit 102 sq. ft. per person 4 units of WIP per unit produced. 3.7 days 3.2% daily +/- 45% variation
(Daily Schedule attainment)

Description of the Five Primary Elements

The Five Primary Elements for lean manufacturing are:
Manufacturing Flow Organization Process Control Metrics, and Logistics

These elements represent the various facets required to support a solid lean manufacturing program, and it is the full deployment of these elements that will propel a company on a path toward becoming a world class manufacturer.

Description of the Five Primary Elements

Following is a basic definition of each of the Five Primary Elements:

Manufacturing Flow: The aspect that addresses physical changes and design standards that are deployed as part of the cell. Organization: The aspect focusing on identification of people s roles/functions, training in new ways of working, and communication. Process Control: The aspect directed at monitoring, controlling, stabilizing, and pursuing ways to improve the process. Metrics: The aspect addressing visible, results-based performance measures; targeted improvement; and team rewards/recognition. Logistics: The aspect that provides definition for operating rules and mechanisms for planning and controlling the flow of material.

Description of the Five Primary Elements

Each of these elements contains a set of lean principles which, when working together, all contribute to the development of a world-class manufacturing environment. These primary elements provide full coverage of the range of issues that surface during a lean manufacturing implementation. Each element focuses on a particular area of emphasis an compartmentalizes the activities. Even though each element is important on its own for the deployment of a successful lean manufacturing program, the power comes from integration of the elements.

What is Lean Manufacturing?

What is Lean Manufacturing?

What is Lean Manufacturing?

What is Lean Manufacturing

What is Lean Manufacturing?

4. Pull Definition Letting the customer pull from enterprise -Don't Make Anything Until It Is Needed -Then Make It As Quickly As Possible

What is Lean Manufacturing

5. Strive for Perfection
Continuous radical and incremental improvement Continuous Banishment of muda -Pursue Perfection, Not the Competition There Is No End to the Process of Reducing Efforts, Space, Costs and Mistakes

the term non-value-added refers to activity that consumes time (people expense), material, and/or space (facilities expense), yet does not physically advance the product or increase its value. A value stream is the total cycle of activity, from initial customer contact through receiving payment for a product that has been delivered. Flow, in the ideal state, simply implies a seamless sequence of activity throughout the process, with no stalls, no disruptions, and no disconnects or backtrack loops. The concept of pull means that things are done when they are required to be done, not before. It implies a consumption-driven or customer demand driven system, as opposed to a forecast-driven system. Gap analysis would recognize the gap between where they were and where they wanted to be. An analysis was performed to understand the gap and identify actions to close it.