Module 2

Lean Manufacturing Tools-1

Prof. Kishore Kumar Mahato, SMEC, VIT Vellore

Contents
Basic tools of lean manufacturing:
 5S
 Total Productive Maintenance,
 Key Performance Indicator,
 Overall Equipment Effectiveness,
 Plan Do Check Act,
 Root Cause Analysis,
 Poka Yoke,
 Work Cell,
 Bottleneck analysis,
 Continuous flow Prof. Kishore Kumar Mahato, SMEC, VIT Vellore
What are Lean manufacturing tools?

Lean manufacturing facilities use a variety of tools and strategies to maximize efficiency
and eliminate waste. Unlike strict process improvement methodologies, Lean is more of
a high-level strategy or concept that will take advantage of what other systems have to
offer. Part of Lean manufacturing is being able to determine which tools are the right
options for a given situation. The following are some of the most popular Lean
manufacturing tools available today.
 5S, Total Productive Maintenance, Key Performance Indicator, Overall Equipment
Effectiveness, Plan Do Check Act, Root Cause Analysis, Poka Yoke, Work Cell,
Bottleneck analysis, Continuous flow.

Prof. Kishore Kumar Mahato, SMEC, VIT Vellore

5S
Total Productive Maintenance (TPM)

Prof. Kishore Kumar Mahato, SMEC, VIT Vellore

Prof. Kishore Kumar Mahato, SMEC, VIT Vellore
Prof. Kishore Kumar Mahato, SMEC, VIT Vellore
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Prof. Kishore Kumar Mahato, SMEC, VIT Vellore
Prof. Kishore Kumar Mahato, SMEC, VIT Vellore
 Total Productive Maintenance (TPM)
Getting operators involved in maintaining their own equipment, and
emphasizing proactive and preventive maintenance will lay a foundation for
improved production (fewer breakdowns, stops, and defects).

What is TPM?
TPM (Total Productive Maintenance) is a holistic approach to equipment
maintenance that strives to achieve perfect production:
 No Breakdowns
 No Small Stops or Slow Running
 No Defects

In addition it values a safe working environment:

 No Accidents
Prof. Kishore Kumar Mahato, SMEC, VIT Vellore
Objectives of Total Productive Maintenance (TPM)

Avoid wastage in a quickly changing economic environment.

Producing goods without reducing product quality.
Reduce cost.
Produce a low batch quantity at the earliest possible time.
Goods send to the customers must be non defective.

Prof. Kishore Kumar Mahato, SMEC, VIT Vellore

T R A D I T I O N A L T PM
The traditional approach to TPM was developed in the 1960s and consists of
5S as a foundation and eight supporting activities (sometimes referred to as
pillars).

Prof. Kishore Kumar Mahato, SMEC, VIT Vellore

Types of Maintenance in TPM

Breakdown maintenance
Preventive maintenance (1951)
–Periodic maintenance (Time based)
–Predictive maintenance
Corrective maintenance (1957)
Maintenance prevention (1960)

Prof. Kishore Kumar Mahato, SMEC, VIT Vellore

Breakdown Maintenance

 It means that people waits until equipment fails and repair it.
 Such a thing could be used when the equipment failure does not
significantly affect the operation or production or generate any significant
loss other than repair cost.

Preventive Maintenance

 It is a daily maintenance (cleaning, inspection, oiling and re-tightening),

design to retain the healthy condition of equipment and prevent failure
through the prevention of deterioration, periodic inspection or equipment
condition diagnosis to measure deterioration

Prof. Kishore Kumar Mahato, SMEC, VIT Vellore

Corrective Maintenance

 It improves equipment and its components so that preventive

maintenance can be carried out reliably.
 Equipment with design weakness must be redesigned to improve
reliability or improving maintainability

Maintenance Prevention

 It indicates the design of a new equipment.

 Weakness of current machines are sufficiently studied (on site information
leading to failure prevention, easier maintenance and prevents of defects,
safety and ease of manufacturing) and are incorporated before
commissioning a new equipment.

Prof. Kishore Kumar Mahato, SMEC, VIT Vellore

Motives of TPM
 Adoption of life cycle approach for improving the overall
performance of production equipment.
 Improving productivity by highly motivated workers which is
achieved by job enlargement.
 The use of voluntary small group activities for identifying the cause of
failure, possible plant and equipment modifications.

Prof. Kishore Kumar Mahato, SMEC, VIT Vellore

Benefits of TPM

 Increase productivity and OPE (Overall Plant Efficiency) by1.5 or 2 times

 Rectify customer complaints
 Reduce the manufacturing cost by 30%
 Satisfy the customers needs by 100% (Delivering the right quantity at the right
time, in the required quality)
 Reduce accidents
 Follow Pollution control measures

Prof. Kishore Kumar Mahato, SMEC, VIT Vellore

 Key Performance Indicator

• Simply defined, KPIs are measures that a sector or organization uses to

define success and track progress in meeting its strategic goals.
• Key Performance Indicators (KPIs) are quantitative and qualitative
measures used to review an organization's progress against its goals.
• KPIs provide a measurement tool.
• KPIs represent a set of measures focusing on those aspects of
organizational performance that are the most critical for the current and
future success of the organization.
• KPIs measure performance by showing trends to demonstrate that
improvements are being made over time.
• KPIs also measure performance by comparing results against
standards or other similar organizations.
Prof. Kishore Kumar Mahato, SMEC, VIT Vellore
KPI Characteristics
KPI characteristics identified in the literature are:
1. Relevant to and consistent with the specific organization's vision, strategy
and objectives.
2. Focused on organization wide strategic value rather than non-critical local
business outcomes.
3. Representative – appropriate to the organization together with its
operational performance.
4. Realistic – fits into the organization ’s constraints and cost effective;
5. Specific – clear and focused to avoid misinterpretation or ambiguity;
6. Attainable – requires targets to be set that are observable, achievable,
reasonable and credible under expected conditions as well as
independently validated;
7. Measurable – can be quantified/measured and may be either quantitative
or qualitative; Prof. Kishore Kumar Mahato, SMEC, VIT Vellore
Process Efficiency KPI's
 Overall Equipment Effectiveness –OEE
 Rolled Throughput yield
 Customer Lead time
 Downtime
 First time through yield
 Plant Uptime
 Production Target
 Labour Productivity

Prof. Kishore Kumar Mahato, SMEC, VIT Vellore

Supply Chain Efficiency KPI's
On time delivery
 Capacity Utilization
 Unit costs
 Value Added
 Days in inventory
 Delivered cost
 Inventory Turnover
 Inventory costs
 Value to weight ratio
 Product stock

Quality KPIs
 Defects per thousand
 Customer satisfaction index
 Internal Quality Audit
Prof. Kishore Kumar Mahato, SMEC, VIT Vellore
Prof. Kishore Kumar Mahato, SMEC, VIT Vellore
 Overall Equipment Effectiveness (OEE)
Overall Equipment Effectiveness (OEE ) is a “best practices” metric for monitoring
and improving the efficiency of your manufacturing processes (i.e. machines, cells,
assembly lines, etc.).

OEE (Overall Equipment Effectiveness) is the gold

standard for measuring manufacturing
productivity.
 An OEE score of 100% means you are
manufacturing only Good Parts.
 OEE is useful as both a benchmark and a
baseline:
– As a benchmark it can be used to compare the
performance of a given production asset to industry
standards
– As a baseline it can be used to track progress over
time Prof. Kishore Kumar Mahato, SMEC, VIT Vellore
Prof. Kishore Kumar Mahato, SMEC, VIT Vellore
OEE takes into consideration the cumulative impact of three factors:
1. Availability: The equipment's availability (percent of scheduled production time
in which units are actually produced, Also called the machine operating time).
Availability is the ratio of Operating Time (which is simply Planned Production Time
less Down Time) to Planned Production Time, and accounts for Down Time Loss. It
is calculated as:
Availability = Operating Time/Planned Production Time
2. Performance: its performance rate (percent of material produced compared to
standard), and Performance is the ratio of Net Operating Time to Operating Time, and
accounts for Speed Loss. In practice it is calculated as:
Performance = (Ideal Cycle Time x Total Pieces)/Operating Time
Prof. Kishore Kumar Mahato, SMEC, VIT Vellore
3. Quality: The quality of its output (percent of good material produced
compared to all material produced during the Machine Operating Time).

Quality is the ratio of Fully Productive Time (time for Good Pieces) to Net
Operating Time (time for Total Pieces). In practice it is calculated as:
Quality = Good Pieces / Total Piece

In equation form, OEE is the multiplication of these three factors:

OEE= % Availability X %Performance X %Quality.

If you substitute in the equations for Availability, Performance and

Quality, and then reduce them to their simplest terms, the result is:

OEE = Good Pieces x Ideal Cycle Time/Planned Production Time

Prof. Kishore Kumar Mahato, SMEC, VIT Vellore
 Plan Do Check Act (PDCA)
 PDCA is a simple four-stage method that enables teams to avoid recurring mistakes
and improve processes.
 Widely recognized as the basis of continually improving the quality of processes,
product and services.
 An easy to remember four logical sequence steps:
Plan – Do – Check – Act
 Provides a simple and structured approach for solving
quality related problems.
 Multiple iterations of the PDCA cycle may be necessary
to solve the problem permanently and reach the ultimate goal state.
Prof. Kishore Kumar Mahato, SMEC, VIT Vellore
Prof. Kishore Kumar Mahato, SMEC, VIT Vellore
Prof. Kishore Kumar Mahato, SMEC, VIT Vellore
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Prof. Kishore Kumar Mahato, SMEC, VIT Vellore
Benefits of PDCA
Effective and rapid method for implementing continuous improvement.
Minimizes cost
Built-in Check
Expandable
Standardized method
Fosters teamwork's

Prof. Kishore Kumar Mahato, SMEC, VIT Vellore

 Root Cause Analysis
 Root Cause Analysis is a method that is used to address a problem or non-
conformance, in order to get to the “root cause” of the problem.
 It is used so we can correct or eliminate the cause, and prevent the problem from
recurring.
 Root Cause Analysis is a systematic approach to get to the true root causes of our
process problems.
Traditional applications of Root Cause Analysis
 Resolution of customer complaints and returns.
 Disposition of non-conforming material (Scrap and Repair) via the Material
Review process.
 Corrective action plans resulting from internal and customer audits.
Prof. Kishore Kumar Mahato, SMEC, VIT Vellore
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Prof. Kishore Kumar Mahato, SMEC, VIT Vellore
 Poka Yoke
It is a Japanese term where ‘Poka’ means
mistake and ‘Yoke’ means Proofing or avoid.
Therefore it is a mistake proofing technique to
achieve zero defects.
It is a quality assurance technique and the
objective is to eliminate defects in the
products by preventing or correcting mistakes
as quickly as possible.
The term Poka Yoke was coined by Dr. Shigeo
Shingo at Toyota Production system in 1960.
Prof. Kishore Kumar Mahato, SMEC, VIT Vellore
Why is it important?
Poka-Yoke helps people and processes work right from the first time.
 Poka-Yoke refers to techniques that make it impossible to make mistakes.
Poka-Yoke technique can drive defects out of products and processes and
substantially improve quality and reliability.
 It can also be used to fine tune improvements and process designs from
Define- Measure- Analyze- Improve- Control (DMAIC) projects.
The use of simple poka-yoke ideas and methods in product and process design
can eliminate both human and mechanical errors.

Prof. Kishore Kumar Mahato, SMEC, VIT Vellore

When to use Poka Yoke?
 It is a technique, a tool that can be applied to any type of process be it in
manufacturing or the service industry.
 Poka yoke can be used wherever something can go wrong or an error
can be made.

What is Error?
 A mistake: deviation from what is correct, right or true.
 How to prevent error
Old Way Scold people
Retrain them
Tell them to be more careful

New Way Training and motivation

Easy way to do a job
 The potential for human error can be dramatically reduced.
Prof. Kishore Kumar Mahato, SMEC, VIT Vellore
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Prof. Kishore Kumar Mahato, SMEC, VIT Vellore
Work Cell
 A work cell is a cluster of workers, equipment, and other materials that we
need to perform a specific task. It is the logical or physical arrangement of all
the resources people use in order to carry out a task, job, or activity.
 Designers in manufacturing companies commonly create work cells in order
to boost productivity and bring down costs.
 If you configure a work cell well, it can significantly increase how rapidly a
process progresses; it can also reduce costs and error rates.
 An ideal cell manufactures a narrow range of highly similar products. Such
an ideal cell is self contained with all necessary equipment and resources.
 The result is very fast throughput. Communication is easy since every
operator is close to the others. This improves quality and coordination.
 The work cell design ( straight line, u-shape, or other), the equipment in the
cell are placed very near one another to save space and time.

Prof. Kishore Kumar Mahato, SMEC, VIT Vellore

 Understanding Work Cells:
 A work cell is generally set up in order to complete a specific activity,
most often in the manufacturing industry. It is the grouping of
machines, people, and other equipment companies use in their
manufacturing production process. These cells are often implemented
to reduce the costs associated with production and ramp up
productivity. Many companies also significantly reduce the rate of error
by putting work cells into place.
 In a manufacturing facility, the machines involved in the production
process would be arranged so the goods being produced move
smoothly and seamlessly from one stage to the next. This would only
be possible if the machines are grouped in work cells that facilitate the
logical progression of the goods being produced—from raw materials
at one end to finished product at the other.
 Work cells may also be found in the office or administrative
departments. In this context, work cells may facilitate a better flow of
communication and more efficient use of shared resources.

Prof. Kishore Kumar Mahato, SMEC, VIT Vellore

Prof. Kishore Kumar Mahato, SMEC, VIT Vellore
Work cell concept in manufacturing
 In order to get maximum productivity, manufacturers
arrange their production-process machines so that the
process progresses seamlessly from one stage to the next.

 To do this optimally, we have to arrange the machines in

work cells that facilitate the most logical progression of
the goods that they are producing, from basic items such
as raw materials to the end product. We have to arrange
all the workers and other production-process materials
properly for the same reason.

 In administrative procedures, i.e. the office environment,

work cells help improve the flow of communications and
the utilization of shared resources.
Prof. Kishore Kumar Mahato, SMEC, VIT Vellore
Prof. Kishore Kumar Mahato, SMEC, VIT Vellore
Prof. Kishore Kumar Mahato, SMEC, VIT Vellore
Prof. Kishore Kumar Mahato, SMEC, VIT Vellore
Bottleneck Analysis
 In production, a bottleneck is a resource or operation that limits output, essentially
determining the capacity of the entire process.
 Even marginal changes in the capacity of a bottleneck will change the capacity of
the process.
 An important thing about bottlenecks is that bottlenecks determine the throughput
of a process.
 If a bottleneck point improves, the speed of the whole process will increase.
 Similarly, if the capacity of a bottleneck in a process improves, the throughput will
increase.
 If bottlenecks are not recognized enough, you will miss a chance to increase
throughput. Prof. Kishore Kumar Mahato, SMEC, VIT Vellore
 Implementing a Lean manufacturing system is a way to effectively manage
bottlenecks in the facility and performing a bottleneck analysis is the first step to
addressing the issue.

 A bottleneck analysis is a detailed process in which necessary and valuable

information about the manufacturing process is collected and evaluated. Begin by
Identifying the specific job process that has the bottleneck.

 Use a root cause analysis tool, like the 5 Whys, to get to the bottom of the
blockage. The underlying issue will be what is addressed and will in turn affect
the rest of the manufacturing process.

 Once the facility’s bottlenecks have been properly addressed, it is critical to take
steps to avoid them in the future. When employees are trained to watch out for
bottlenecks or interrupted flow in the process, they can help address the issue
before it becomes a serious problem.
Prof. Kishore Kumar Mahato, SMEC, VIT Vellore
Advantages of Bottleneck Analysis

The advantage of applying Bottleneck Analysis to a process is that it forces

you to look at a range of aspects of business operation, such as:

 Identification of the equipment & machinery involved.

 Identification of the re-sourcing required.
 Costing the manufacturing process.
 Identifying the bottlenecks, allowing optimization of process throughput.

Prof. Kishore Kumar Mahato, SMEC, VIT Vellore

Continuous flow

 A continuous flow process is a method of manufacturing that aims to move

a single unit in each step of a process.
 Each step is completed for several units at once, which comprises a batch.
 The process is called “continuous flow” because you are continuously
producing new products.
 Continuous flow is one aspect of lean manufacturing, which is a method
used to improve production efficiency.

Prof. Kishore Kumar Mahato, SMEC, VIT Vellore

Continuous flow is a Lean method that allows you to move a single product through
every step of your process instead of grouping work items into batches. The method
is called this way because it allows you to send goods to the market continuously.
This provides you with the opportunity to deliver value more often to your
customers.

Prof. Kishore Kumar Mahato, SMEC, VIT Vellore

Advantages
 When implemented correctly, continuous flow processing: Reduces waste.
 Saves money by reducing inventory and transportation costs.
 Increases productivity – more units completed in less time.
 Improves quality by making it easier to spot and correct errors.
 Cuts down on overhead via increased stability and reduced lead times.
 Many process problems will appear and come to the surface

Disadvantages
 It’s very hard to achieve,
 Process steps aren’t generally balanced,
 All process contains inherent waste activities.
Prof. Kishore Kumar Mahato, SMEC, VIT Vellore
END OF MODULE 2

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Prof. Kishore Kumar Mahato, SMEC, VIT Vellore