BY TEAM

BLUE
 What is lean?
 Why lean?
 Principles of lean
 Goals of lean
 Types of waste
 Lean tools
 Steps to achieve lean systems
 Lean is a systematic approach of eliminating
waste so every step adds value for the
Customer
Value - A capability provided to a customer at
the right time at an appropriate price, as defined
by the customer.

• Cost

• Quality

• Delivery
 Waste is any activity that consumes time,
resources, or space but does not add any value
to the product or service.
Lack of funds, resources, time and personnel are the top four
constraints that companies experience in achieving
measurable improvements in business performance.

Lack of Funds 43%

Limited Resources 42%
Lack of Time 40%
Lack of Qualified Personnel 32%
• Define value from the customer perspective
• Identify the value stream
• Make the process flow
• Pull from the customer
• Head toward perfection
 Specify value :
Specify value from the standpoint of the end
customer by product family.

 Identify the value stream :

Identify all the steps in the value stream for
each product family, eliminating whenever
possible those steps that do not create value.
 Create flow :
Make the value-creating steps occur in tight
sequence so the product will flow smoothly
toward the customer.

 Let the customer pull product through the

value stream:
Make only what the customer has ordered.
 Seek perfection :
As value is specified, value streams are
identified, wasted steps are removed, and flow
and pull are introduced, begin the process
again and continue it until a state of perfection
is reached in which perfect value is created
with no waste.
 Improve quality:
In order 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.
 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 company’s inventory costs due to
storage needs.
 overproduction (occurs when production should
have stopped)
 Waiting (periods of inactivity)
 Transport (unnecessary movement of materials)
 Extra Processing (rework and reprocessing)
 Inventory (excess inventory not directly required
for current orders)
 Motion (extra steps taken by employees due to
inefficient layout)
 Defects (do not conform to specifications or
expectations)
 Overproduction : Producing more/sooner than
the Internal or External customer needs.

 Waiting :Long periods of inactivity for people,

information, machinery or materials.

 Transportation :Excessive movement of

people, information or materials.
 In appropriate processing:
Using the wrong set of tools, procedures or
systems.

 Unnecessary Inventory:
Excessive storage and delay of information
or products.
 Motion :
people or equipment moving or walking more
than is required to perform the processing.

 Defects :
Frequent errors in paper work,product quality
problems etc..
 waste elimination
 standardized work
 poka yoke
 5s visual workplace
 just in time
 continuous improvement
 material management
 work in process
 POKA-YOKE- means “Mistake proofing”.

 And it also provides visual or other signals to

indicate characteristic state and referred as
error proofing .

 It is a Japanese word .
 5s visual work place provide a clean
environment .

 It is well organized and efficient .

 It provides the organization for preparing a

rapid work force .
 It can lead to huge improvements in quality
and efficiency .

 This method was adopted by Japanese

manufacturing company.

 JIT means making what the market wants,

when it want it.
 Continuous improvement ,in regards to quality
and performance .

 And it also improves customers satisfaction

through continuous and incremental approach.

 And there by removing unnecessary activities

and variation .
 It aims to minimize the work .

 It needs to store the inventory .

 It take time to look above and below work

areas for needed storage .
 It is a branch of logistics and deals with
tangible components of supply chain.

 It can consolidate and efficiently handle core

service .

 The parts and materials used in supply chain

meets the minimum requirements by
performing quality assurance .
 Lean Thinking diagnostic tool that allows you to:
◦ Visualize work
◦ “See the waste” (barriers to flow)
◦ Focus on improvements

 Value Stream = steps (value added and non-value

added) that are required to complete a service
from beginning to end
 Value Added vs. Non-Value
Added
Value added activities
 The customer is willing to pay money for the
process
 Work that changes the market form, fit or
function

Non-value added activities

 Should be eliminated, simplified, reduced, or
integrated whenever possible
 Two types of non-value added activities:
◦ Required for business
◦ Not required for business
 Value Added vs. Non-Value
Added
Value Added
• Continuous focus on increasing
value added activities
20%
• If value added activities are
increased by 10% = gain of only 80%
2%!
Non-Value Added
• Focus on reducing non-value
added activities by 10% = gain of
8% value added!
Steps to achieve lean
systems
The following steps should be implemented in
order to create the ideal lean
manufacturing system:
 Design a simple manufacturing system
 Recognize that there is always room for
improvement
 Continuously improve the lean manufacturing
system design
Design a simple manufacturing system
A fundamental principle of lean manufacturing is demand-based flow
manufacturing. In this type of production setting, inventory is only pulled
through each production centre when it is needed to meet a customer’s
order.
 The benefits of this goal include
 decreased cycle time
 less inventory
 increased productivity
 increased capital equipment utilization
There is always room for improvement
The core of lean is founded on the concept of continuous product and
process improvement and the elimination of non-value added activities.
“The Value adding activities are simply only those things the customer is
willing to pay for, everything else is waste, and should be eliminated,
simplified, reduced, or integrated”. Improving the flow of material through
new ideal system layouts at the customer's required rate would reduce
waste in material movement and inventory.
Continuously improve
A continuous improvement mindset is essential to reach a company's
goals. The term "continuous improvement" means incremental improvement
of products, processes, or services over time, with the goal of reducing
waste to improve workplace functionality, customer service, or product
performance.
SUMMARY
Thank you