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Lean Management - Introduction


Lean Management


What is Lean?
Its Roots
Success and Benefits

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Lean Management Overview of Lean Principles of Lean Types of Waste Lean Journey © Simplilearn Solutions 4 .

improves quality. but a way of optimizing end to end processes © Simplilearn Solutions 5 .Lean Management Overview of Lean  Creating more value for customer with fewer resources  Philosophy: To provide perfect value to the customer through a perfect value creation process that has zero waste  Lean reduces cost. and speeds delivery by eliminating non-value-added activity in a process by identifying and eliminating waste  Lean is not a tactic or a cost reduction program.

Lean Management Principles of Lean 5. Create Flow © Simplilearn Solutions 6 . Establish Pull 2. Seek Perfection 1. Map Value Stream 3. Identify Value 4.

Lean Management Types of Waste  What is waste?  Non-value-add activity  Some types of waste with examples • • • Anything that could have been avoided Customer is not willing to pay for it Defects/rework  The 7 types of waste  Muda (Japanese word for waste)  Uncommon common sense © Simplilearn Solutions 7 .

Lean Management Lean Journey  Lean journey is on the principle “I will believe it when I see it”  Lowering the tide and uncovering more reefs that can sink the boat  Three stages of Lean journey • • • Lean operations Lean enterprise Lean network 1 © Simplilearn Solutions 2 8 .

Lean Management Lean at Ford Toyota Production system JIT (Just-in-Time) © Simplilearn Solutions 9 .

Lean Management Lean at Ford     Henry Ford (at Highland Park. one specification)  Need for variety © Simplilearn Solutions 10 . MI USA) in 1913 Car “Model T” Integration of entire production process Flow production • • • • • Interchangeable parts Moving conveyance Automated assembly line Fabrication steps Go/No-Go gauge  Model T (one color.

and very rapid throughput times to meet customer desires © Simplilearn Solutions 11 . high variety. Taiichi Ohno. high quality. and others at Toyota Series of simple innovations to improve process flow and provide variety in product offerings  Focus on improving end to end processes rather than optimizing individual machines  Result: Low cost.Lean Management Toyota Production System (TPS)     Based on Ford’s original thinking Rebuilding Japanese economy after World War II (1930) Kiichiro Toyoda.

resulting in higher ROI © Simplilearn Solutions 12 .Lean Management Just-In-Time (JIT)       Introduced by Ford Supply-chain/ production/inventory strategy Demand-pull system Get the right thing at the right time at the right place Relies on signals between processes to keep things moving Requires producers to accurately forecast demand and use integrated production management tools  Saves warehouse space. inventory cost and prevents obsolete inventory.

Lean Management Lean Successes and Benefits  “Efficiency” Business Model Fit  Cash Flow Improvement  Increased Capacity for Revenue Profit Attract & Retain Customers Employees Engagement & Morale © Simplilearn Solutions 13 .

Lean Management “Efficiency” Business Model Fit  Business Model • • • Employees Customers Profits  Higher Efficiency • • • Do More with less “Just Enough” in everything No more band aid solutions that become future problems  From managing numbers to managing process © Simplilearn Solutions 14 .

Lean Management Cash Flow Improvement       Reduced inventory No waiting Space reduction Cycle time reduction Reduced waste Reduced defect © Simplilearn Solutions 14 .

Lean Management Increased Capacity for Revenue     Attract and retain customer More with less Fewer support calls Lean increases capacity • • Your process can produce more with the same number of people Your process can produce the same amount with fewer people © Simplilearn Solutions 15 .

Downtime. Demand © Simplilearn Solutions 16 .Lean Management Process Changes Cause a Rethinking of Process Flow Disruptions. Design Failures Low volume/High Mix High Variability—Customization.

Lean Management Process Changes Cause a Rethinking of Process Flow  Process • Input • Processing • Output  Process changes  Process flow  In-process metrics  Training © Simplilearn Solutions 17 .

Lean Management Disruptions. Downtime. Design Failures     Process change Disruptions Downtime Design failures © Simplilearn Solutions 18 .

Lean Management Low Volume/High Mix     Toyota production system High volume/low mix manufacturing Low volume/high Mix Needs Example © Simplilearn Solutions 19 .

Demand      Customer demands Customization Made-to-order Variability Support and maintenance © Simplilearn Solutions 20 .Lean Management High Variability – Customization.

Lean Management Summary     Lean overview Types of waste History Successes and challenges © Simplilearn Solutions 21 .

D.Lean Management Quiz-1 1. Produce goods using less resources Keep labor costs as low as possible by using more of other resources Produce products with fewer options to simplify consumer choices Outsource much of manufacturing in order to focus on final assembly © Simplilearn Solutions 22 . Lean manufacturing is a: A. Method for reducing labor cost Means to improve responsiveness to the customer Efficiency improvement technique Set of tools designed to improve productivity The main objective of Lean manufacturing is to: A. C. B. D. B. 2. C.

becoming more responsive to customers and reduce cost.Lean Management Answers-1 Answer 1: The more appropriate right answer is C. The main objective of Lean manufacturing is to produce goods using less resources. once this is achieved. © Simplilearn Solutions 23 . Lean manufacturing is efficiency improvement technique. it will help in improving productivity. Answer 2: The right answer is A.

Lean Management © Simplilearn Solutions 24 .