Ilovepdf Merged

UPE503 – L01
Lean and Agile Manufacturing
Mechanical Engineering
Dr. Rajnish Mallick
L01_ UPE503 Dr. Rajnish Mallick MED

WHY LEAN?
UPE503 Dr. Rajnish Mallick MED

Impact of Lean Manufacturing

Introduction…

Introduction…

Course Objectives
• Introduction of the concepts of manufacturing in the present day context.
• Complexity of manufacturing systems, manufacture of a large variety of

products in small lots, dynamically changing product mix, short lead
times and product life cycles and ever increasing pressures to contain
costs.
• Introduce strategies adopted by manufacturing industry, lean and agile

manufacturing, high degree of automation and synchronization of
various technical and supply chain operations in the industry.
• Industry 4.0 and its essentials will also be introduced in the course.
• Introduce some tools and techniques which are essential to move

towards lean and agile manufacturing. These are Just-in-time, Total
Productive Maintenance, 5S, Single Minute Exchange of Die (SMED)
and Fool proofing.
Dr. Rajnish Mallick, AP, MED, TIET

8
Curriculum - 01
Introduction:
Manufacturing: Types of manufacturing systems: continuous and intermittent
manufacturing; mass production, batch production and job shop production. Basic
process of manufacturing large variety of products in a productive system. Set up
changeovers- need and strategy to reduce or eliminate changeovers.
Manufacturing management: Brief coverage of layout design, material handling,

product design, process design, capacity planning, aggregate planning, master
production scheduling, material requirements planning and production control.
Need of lean and agile manufacturing; Business and manufacturing scenario,

uncertainty & volatility of demand, shortening product life cycles and rapid product
introductions leading to complexity of manufacturing systems, manufacture of large
variety of products in small lots.
Lead time gap and manufacturing strategies to make up for this gap, demand
penetration point & supply chain fulcrum- role of inventory and capacity in meeting
demand, concept of postponement and mass customization.
Dr. Rajnish Mallick, AP, MED, TIET 9
Curriculum - 02
Lean Manufacturing:
Concept and objectives, contrast between traditional and lean manufacturing, five
interdependent principles of lean manufacturing- value definition, value stream
analysis, just-in-time, flow and perfection; 7 different types of waste and their
mitigation, lean manufacturing techniques- SMED, TPM, 5S, Fool-proofing, Just in
time.
Agile Manufacturing:
Concept of agile manufacturing, difference between lean and agile manufacturing, four
Rs of supply chain- responsiveness, reliability, resilience and relationship, set up time
and lot sizing, level production, Leagile manufacturing.
Industry 4.0:
Six design principles of industry 4.0- Interoperability (internet of things and internet of
services), virtualization, decentralisation, real time capability, service orientation and
modularity. Building blocks of industry 4.0- autonomous robots, simulation, horizontal
& vertical system integration, industrial internet of things, cyber security, additive
manufacturing, augmented reality, big data analysis.
References and Literature
Text Books:
• Monks, J.G. Operations Management, Second Edition,
McGraw-Hills, (1996)
• Christopher, M. Logistics and Supply Chain Management, FT

Prentice Hall, (2011).
• State-of-the-art research literature for Industry 4.0 and case-

Studies

Evaluation Scheme
Evaluation Elements Weightage (%)

• MST
• EST
• Sessionals (May include Assignments/Projects/Quizzes/Lab

Evaluations)
Dr. Rajnish Mallick, AP, MED, 12

TIET
Lean Manufacturing –What and Why?

Lean Manufacturing Definition
Lean has been defined in many different ways.
“A systematic approach to identifying and eliminating waste

(non-value-added activities) through continuous
improvement by flowing the product at the pull of the
customer in pursuit of perfection.”
Lean manufacturing is a philosophy
In 1990 James Womack, Daniel T. Jones, and Daniel Roos

wrote a book called “The Machine That Changed the World:
The Story of Lean Production -- Toyota's Secret Weapon in the
Global Car Wars That Is Now Revolutionizing World Industry”
In this book, Womack introduced the Toyota Production

System to American.
What was new was a phrase – "Lean Manufacturing."

Waste
“Anything that adds Cost

to the product
without adding Value”
7 Forms of Waste
CORRECTION
Repair or MOTION
WAITING
Rework Any wasted motion
Any non-work time to pick up parts or
waiting for tools, stack parts. Also
supplies, parts, etc.. wasted walking
Types
PROCESSING of OVERPRODUCTION
Producing more
Doing more work than Waste than is needed
is necessary
before it is needed
INVENTORY
Maintaining excess CONVEYANCE
inventory of raw mat’ls, Wasted effort to transport
parts in process, or materials, parts, or
finished goods. finished goods into or
out of storage, or
between
processes.
Agile Manufacturing – What and Why?
In the 1980s and 90s, computer programmers were using
traditional manufacturing methods, such as the Waterfall
approach, to manage their development work. They spent months
to years developing one product, releasing it when it was finished,
only to find that it had already become outdated by the time it hit
the market.

Agile Manufacturing – What and Why?
Agile was designed for software development teams as a time-

focused, iterative way of achieving continuous value delivery.
Agile’s iterative approach encourages constant feedback and

allows for changing requirements over time, even in the late
stages of development.

Thanks
UPE503 – L02
Dr. Rajnish Mallick



System to American.

Waste

to the product
7 Forms of Waste
CORRECTION
Repair or MOTION
WAITING
Types
Producing more
is necessary
before it is needed
INVENTORY
out of storage, or
between
processes.
Manufacturing Systems

In a factory, manufacturing processes are assembled together

to form a manufacturing system (MS) to produce a desired set
of goods.
The manufacturing system takes specific inputs, adds value

and transforms the inputs into products for the customer.
It is important to distinguish between the production system

which includes the manufacturing system and services it.

As elaborated in Figure 1,* the

production system services the
manufacturing system using all the
other functional areas of the plant
for information, design, analysis,
and control.
These subsystems are connected

to each other to produce either
goods or services or both.
*Black J.T. (2000) MANUFACTURING SYSTEMS. In: Swamidass P.M. (eds) Encyclopedia of Production and Manufacturing Management. Springer,
Boston, MA . https://doi.org/10.1007/1-4020-0612-8_559

Manufacturing: What & Why?
• Manufacturing is part of a bigger scheme known as operations. The
term Operations takes in all systems that involve getting work done.
This includes services as well as manufacture.
• The process always involves a transformation of some raw materials (or

inputs) to a finished item or service.
• The goal is to create and add value to the inputs during the
transformation. In the case of manufacturing, the goal is to add value to a
raw material by changing its shape or properties.
• In the case of a service, often knowledge or know how is brought

together to fulfil some need.
• The process is shown in the

diagram

Manufacturing… What & Why?
Almost always, manufacturing is intended to make a profit for
the owners of the company.
Companies set up to make a profit are known as enterprises.

Manufacturing systems themselves can be thought of in either
technical or economic terms.

Manufacturing…
Looking at the process purely in technical terms the main features are those shown
below. The manufacturing process is used to turn raw material into finished items.
The manufacturing process contributes the technology to bring this about.
However, if we look at manufacturing in terms of economics then a different picture

is apparent. In this case it is the value that is added to the inputs that is important

Manufacturing Systems and Industries
Manufacturing industries can be grouped into either Primary, Secondary
or Tertiary industries.
• Primary Industries exploit natural resources e.g. agriculture or mining
• Secondary Industries take the output of primary industries and convert

them into consumer goods. Manufacturing is mostly concerned with this
category but construction can also be included here.
• Tertiary Industries contribute to the service sector of the economy. e.g.

Banks, insurance,

In the world of manufacturing, there are a lot of systems to choose from,
each with its ideal use case and set of advantages and drawbacks.
Having the appropriate manufacturing system for your product can yield a
variety of benefits, including the ability to maintain the high quality of your
goods, being more efficient in your production processes and saving money
across the board.
The right system can also help you produce higher volumes, thereby meeting
your production volume targets.
Handbook of Design, Manufacturing, and Automation by Richard C. Dorf and Andrew Kusiak, there are four types of manufacturing systems:
custom manufacturing, intermittent manufacturing, continuous manufacturing and flexible manufacturing
Custom Manufacturing Systems
Custom manufacturing is by far the oldest and most popular type of
manufacturing system in existence. It also happens to be associated
with both the highest-quality products and the lowest-volume
efficiency.
In the custom manufacturing system, each item is produced by a
single craftsperson, who works solely by hand or with the help of a
machine. When machines are used, they tend to be highly
specialized to their task and cannot produce more than one item at a
time.
This system will tend to have the highest unit cost for the product
manufactured. As a result, custom-manufactured products are of the
highest quality but are also the most expensive products in the
market.

Intermittent Manufacturing Systems
The intermittent manufacturing system allows companies to make
different types of goods using the same production line. Therefore,
the manufacturing facility is designed to handle different product
sizes and requirements. Generally, the goods are processed in lots
to fulfill orders.
This system is commonly referred to as a “job shop” due to its

popularity in countries with relatively cheap labor making products
for multinationals based thousands of miles away. The goods made
using this manufacturing method are produced in small quantities, so
they may not be suitable for stock. Customization is typically done
post-purchase.
This type of system is designed for production runs that happen

intermittently, hence the name, or products that don’t require high
volumes. It uses general purpose machines and requires highly
UPE503labor.
skilled Dr. Rajnish Mallick MED
Continuous Manufacturing Systems
Continuous manufacturing systems are designed to enable the mass
production of a single product.
The product goes through an assembly line with different stations

where parts are added or worked on a little further. This method first
arose during the Industrial Revolution and is most closely associated
with the Ford Company, which employed the system to produce
Model Ts in the 1920s.
This type of production system is ideal when a company has very

high volume targets since it reduces the unit cost of the product. It
does, however, require a massive capital injection at startup due to
the investment in equipment and labor required.

Flexible Manufacturing Systems
Flexible manufacturing is a modern manufacturing system that has
become very popular.
It involves a significant investment in machinery, although it reduces

labour costs by implementing robots eschewing human labor
altogether. These machines can easily be reconfigured to
manufacture different products in different quantities, and the whole
process is automatic.
This method is called flexible manufacturing due to the flexibility in

the variety of high-volume goods it can produce. Due to the
automated process, quality control is a lot easier, and unit costs are
low.

Thanks
UPE503 – L03
Dr. Rajnish Mallick

In the world of manufacturing, there are a lot of systems to choose from,
each with its ideal use case and set of advantages and drawbacks.
Having the appropriate manufacturing system for your product can yield a
variety of benefits, including the ability to maintain the high quality of your
goods, being more efficient in your production processes and saving money
across the board.
The right system can also help you produce higher volumes, thereby meeting
your production volume targets.
Handbook of Design, Manufacturing, and Automation by Richard C. Dorf and Andrew Kusiak, there are four types of manufacturing systems:
custom manufacturing, intermittent manufacturing, continuous manufacturing and flexible manufacturing
Custom Manufacturing Systems
Custom manufacturing is by far the oldest and most popular type of
manufacturing system in existence. It also happens to be associated
with both the highest-quality products and the lowest-volume
efficiency.
In the custom manufacturing system, each item is produced by a
single craftsperson, who works solely by hand or with the help of a
machine. When machines are used, they tend to be highly
specialized to their task and cannot produce more than one item at a
time.
This system will tend to have the highest unit cost for the product
manufactured. As a result, custom-manufactured products are of the
highest quality but are also the most expensive products in the
market.

Intermittent Manufacturing Systems
The intermittent manufacturing system allows companies to make
different types of goods using the same production line. Therefore,
the manufacturing facility is designed to handle different product
sizes and requirements. Generally, the goods are processed in lots
to fulfill orders.
This system is commonly referred to as a “job shop” due to its

popularity in countries with relatively cheap labour making products
for multinationals based thousands of miles away. The goods made
using this manufacturing method are produced in small quantities, so
they may not be suitable for stock. Customization is typically done
post-purchase.
This type of system is designed for production runs that happen

intermittently, hence the name, or products that don’t require high
volumes. It uses general purpose machines and requires highly
UPE503labor.
skilled Dr. Rajnish Mallick MED






Ford Model T : 1908
7
Flexible Manufacturing Systems
Flexible manufacturing is a modern manufacturing system that has
become very popular.
It involves a significant investment in machinery, although it reduces

labor costs by implementing robots eschewing human labor
altogether. These machines can easily be reconfigured to
manufacture different products in different quantities, and the whole
process is automatic.
This method is called flexible manufacturing due to the flexibility in
the variety of high-volume goods it can produce. Due to the
automated process, quality control is a lot easier, and unit costs are
low.

Batch production
Bread and cakes are often made in batches and the
number of products is determined by the amount of
dough mixed. Furniture is usually made in batches as
they are often bulky and expensive to store.
Batch production
Batches might be as small as a handful and as large as
several thousand
Mass or Flow production
• With this scale of production it is usual for the products
to move along a production line as it is a very efficient
way of making products in a short period of time.
Workers are often less skilled as there is usually more
reliance upon machinery set up to do a single task at
each stage.
• Production lines could use lots of workers doing manual
tasks, such as soldering and assembling components,
but usually involves some degree of automation.
Car production is typically organised in this way and the
manufacturing space has been created or adapted to
allow the production to be as efficient as possible. Many
thousands of the same product are necessary to justify
the investment in machinery.
Continuous production
• This is where the number of products required is so huge that the
production line needs to run day and night.
• To ensure that this can happen the whole manufacturing plant is
often designed around a single product.
• Automation is vital to this type of production
Continuous production
Soft drinks are an example of a product manufactured
using continuous production where the design of the
manufacturing plant is essential to enable the quantities
to be achieved at low costs.
Job-Shop
Job-shop Production is characterized by:
1. High variety of products and low volume.
2. Use of general purpose machines and facilities.
3. Highly skilled operators who can take up each job as a

challenge because of uniqueness.
4. Large inventory of materials, tools, parts.
5. Detailed planning is essential for sequencing the requirements

of each product, capacities for each work centre and order
priorities.
Job-Shop
Advantages
1. Because of general purpose machines and facilities variety of products
can be produced.
2. Operators will become more skilled and competent, as each job gives
them learning opportunities.
3. Full potential of operators can be utilized.
4. Opportunity exists for Creative methods and innovative ideas.
Limitations
1. Higher cost due to frequent set up changes.
2. Higher level of inventory at all levels and hence higher inventory cost.
3. Production planning is complicated.
4. Larger space requirements.

Thanks
UPE503 – L04
Dr. Rajnish Mallick

Layout Design
or
Facility Layout Planning

2
Learning Objectives
• Define layout planning and explain its importance

• Identify and describe different types of layouts
• Compare process layouts & product layouts
• Describe the steps involved in designing a process
layout
UPE503 Dr. Rajnish Mallick MED 3

Learning Objectives – con’t
• Describe the steps involved in designing a product layout

• Explain the advantages of hybrid layouts
• Define the meaning of group technology (cell) layouts

What Is Layout Planning?
Layout planning is deciding the best physical arrangement of

all resources within a facility
• Facility resource arrangement can significantly affect
productivity
• Two broad categories of operations:
– Intermittent processing systems – low volume of many different
products
– Continuous processing systems – high volume of a few
standardized products

Types of Layouts
• Four basic layout types consisting of:

– Process layouts - Group similar resources together
– Product layouts - Designed to produce a specific
product efficiently
– Hybrid layouts - Combine aspects of both process and
product layouts
– Fixed-Position layouts - Product is two large to move;
e.g. a building

Process Layouts
• Process layout unique characteristics include:
– Resources used are general purpose

– Facilities are less capital intensive
– Facilities are more labor intensive
– Resources have greater flexibility
– Processing rates are slower
– Material handling costs are higher

Process Layouts – con’t
▪ Scheduling resources & work flow is more complex

▪ Space requirements are higher

Product Layouts
• Product layout unique characteristics are:

– Resources are specialized
– Facilities are capital intensive
– Processing rates are faster
– Material handling costs are lower
– Space requirements for inventory storage are lower
– Flexibility is low relative to the market

Process vs. Product Layouts
Here are the characteristic differences between a

process and product layout.

Hybrid Layouts
• Combine elements of both product & process

layouts
– Maintain some of the efficiencies of product layouts
– Maintain some of the flexibility of process layouts
Examples:
– Group technology & manufacturing cells
– Grocery stores

Fixed-Position Layout
• Used when product is large

• Product is difficult or impossible to move, i.e. very large or
fixed
• All resources must be brought to the site
• Scheduling of crews and resources is a challenge

Designing Process Layouts
Step 1: Gather information:

Space needed, space available, identify closeness measures
Step 2: Develop alternative block plans:

Using trial-and-error or decision support tools
Step 3: Develop a detailed layout:

Consider exact sizes/shapes of departments and work centers
including aisles and stairways
Tools like drawings, 3-D models, and CAD software are available to
facilitate this process

Special Cases of Process Layouts
A number of unique process layouts require special

attention. We will look at two of these:
• Warehouse layouts
• Office Layouts

Warehouse Layouts
Warehouse Layout Considerations:
– Primary decision is where to locate each department relative
to the dock
– Departments can be organized to minimize “ld” totals
– Departments of unequal size require modification of the

typical ld calculations to include a calculation of the “ratio
of trips to area needed”
– The usage of “Crossdocking” modifies the traditional

warehouse layouts; more docks, less storage space, and less
order picking

Office Layouts
Office Layout Considerations:
– Almost half of US workforce works in an office environment
– Human interaction and communication are the primary factors in

designing office layouts
– Layouts need to account for physical environment and

psychological needs of the organization
– One key layout trade-off is between proximity and privacy
– Open concept offices promote understanding & trust
– Flexible layouts incorporating “office landscaping” help to solve

the privacy issue in open office environments

Designing Product Layouts
• Designing product layouts requires consideration of:

– Sequence of tasks to be performed by each workstation
– Logical order
– Speed considerations – line balancing

Designing Product Layouts – con’t
Step 1: Identify tasks & immediate predecessors

Step 2: Determine output rate
Step 3: Determine cycle time
Step 4: Compute the Theoretical Minimum number of Stations
Step 5: Assign tasks to workstations (balance the
line)
Step 6: Compute efficiency, idle time & balance delay

Step 1: Identify Tasks & Immediate
Predecessors
Example 10.4 Vicki's Pizzeria and the Precedence Diagram
Immediate Task Time
Work Element Task Description Predecessor (seconds
A Roll dough None 50
B Place on cardboard backing A 5
C Sprinkle cheese B 25
D Spread Sauce C 15
E Add pepperoni D 12
F Add sausage D 10
G Add mushrooms D 15
H Shrinkwrap pizza E,F,G 18
I Pack in box H 15
Total task time 165

Thanks

UPE503 – L07
Dr. Rajnish Mallick

Layout Design
Examples and Methods

2
Learning Objectives
• Define layout planning and explain its importance

• Identify and describe different types of layouts
• Compare process layouts & product layouts
• Describe the steps involved in designing a process
layout

Designing Product Layouts
• Designing product layouts requires consideration of:
– Sequence of tasks to be performed by each workstation
– Logical order
– Speed considerations – line balancing

Designing Product Layouts – con’t
Step 1: Identify tasks & immediate predecessors

Step 2: Determine output rate
Step 3: Determine cycle time
Step 4: Compute the Theoretical Minimum number of Stations
Step 5: Assign tasks to workstations (balance the
line)
Step 6: Compute efficiency, idle time & balance delay

Step 1: Identify Tasks & Immediate
Predecessors
Immediate Task Time
D Spread Sauce C 15
F Add sausage D 10
I Pack in box H 15
Total task time 165

Layout Calculations
• Step 2: Determine output rate
– Vicki needs to produce 60 pizzas per hour
• Step 3: Determine cycle time
– The amount of time each workstation is allowed to
complete its tasks
available time (sec./day) 60 min/hr x 60 sec/min
Cycle time (sec./unit) = = = 60 sec./unit
desired output (units/hr ) 60 units/hr
– Limited by the bottleneck task (the longest task in a

process):
available time 3600 sec./hr.
Maximum output = = = 72 units/hr, or pizzas per hour
bottleneck task time 50 sec./unit
7
Layout Calculations con’t
• Step 4: Compute the theoretical minimum number of
stations
– TM = number of stations needed to achieve 100%
efficiency (every second is used)
 (task times) 165 seconds

TM = = = 2.75, or 3 stations
cycle time 60 sec/station
– Always round up (no partial workstations)
– Serves as a lower bound for our analysis
UPE503 Dr. Rajnish Mallick 8 MED

Immediate Task Time
Layout Calculations con’t

D Spread Sauce C 15
F Add sausage D 10
I Pack in box H 15
• Step 5: Assign tasks to workstations Total task time 165
– Start at the first station & choose the longest eligible task following
precedence relationships
– Continue adding the longest eligible task that fits without going over the
desired cycle time
– When no additional tasks can be added within the desired cycle time, begin
assigning tasks to the next workstation until finished
Workstation Eligible task Task Selected Task time Idle time
A A 50 10
1
B B 5 5
C C 25 35
2 D D 15 20
E, F, G G 15 5
E, F E 12 48
F F 10 38
3
H H 18 20
I I 15 5

Last Layout Calculation
• Step 6: Compute efficiency and balance delay

– Efficiency (%) is the ratio of total productive time divided by
total time
Efficiency (%) =
 t
=
165 sec.
(100) = 91.7%
NC 3 stations x 60 sec.
– Balance delay (%) is the amount by which the line falls short
of 100%
Balance delay = 100% − 91.7% = 8.3%

Other Product Layout Considerations
• Shape of the line (S, U, O, L):

– Share resources, enhance communication & visibility, impact
location of loading & unloading
• Paced versus Un-paced lines

– Paced lines use an automatically enforced cycle time
• Number of Product Models produced

– Single
– Mixed-model lines

Cellular Layout
Cellular Layout
Process (Functional) Layout Group (Cellular) Layout

A cluster
or cell
T T T CG CG T T T
M
T T T SG SG M M T
D D M D
M M D D D
SG CG CG D
M M D D D SG
Similar resources placed Resources to produce similar

together products placed together
Thanks

UPE503 – L05
Dr. Rajnish Mallick

SMED (Single-Minute Exchange
of Dies)
Changeover times reduction

2
Changeover times
• Every manufacturing process has periods of time where
equipment is unavailable due to tooling changes, material
changes, part changes, program changes, or any other changes
to production that must be performed while equipment is
stopped.
• Collectively, these events are referred to as “changeovers”, or

alternately as “setup”, “make ready” or “planned down time”.

Changeover time
The Big Idea
Changeover times can be dramatically reduced – in many cases to

less than 10 minutes. Each element of the changeover is analyzed
to see if it can be eliminated, moved, simplified, or streamlined.

WHAT IS SMED?
SMED (Single-Minute Exchange of Dies) is a system for
dramatically reducing the time it takes to complete equipment
changeovers.
The essence of the SMED system is to convert as many

changeover steps as possible to “external” (performed while the
equipment is running), and to simplify and streamline the
remaining steps.
The name Single-Minute Exchange of Dies comes from the goal of

reducing changeover times to the “single” digits (i.e. less than
10 minutes).
A successful SMED program will have
the following benefits
• Lower manufacturing cost (faster changeovers mean less
equipment downtime)
• Smaller lot sizes (faster changeovers enable more frequent
product changes)
• Improved responsiveness to customer demand (smaller lot

sizes enable more flexible scheduling)
• Lower inventory levels (smaller lot sizes result in lower

inventory levels)
• Smoother startups (standardized changeover processes improve

consistency and quality)

BASICS OF SMED
• SMED was developed by Shigeo Shingo, a Japanese industrial

engineer who was extraordinarily successful in helping
companies dramatically reduce their changeover times.
• His pioneering work led to documented reductions in

changeover times averaging 94% (e.g. from 90 minutes to less
than 5 minutes) across a wide range of companies.
• Changeover times that improve by a factor of 20 may be hard

to imagine, but consider the simple example of changing a tire:

BASICS OF SMED
Simple example of changing a tire
• For many people, changing a single tire can easily take 15
minutes.
• For a NASCAR pit crew, changing four tires takes less than 15
seconds.
• Many techniques used by NASCAR pit crews (performing as

many steps as possible before the pit stop begins; using a
coordinated team to perform multiple steps in parallel; creating
a standardized and highly optimized process) are also used in
SMED.
• In fact the journey from a 15 minute tire changeover to a 15
second tire changeover can be considered a SMED journey.
NASCAR pit crew

minutes.
seconds.

SMED.
SMED Changeover times
• In SMED, changeovers are made up of steps that are termed

“elements”. There are two types of elements:
• Internal Elements (elements that must be completed while the

equipment is stopped)
• External Elements (elements that can be completed while the

equipment is running)

SMED process
• The SMED process focuses on making as many elements as
possible external, and simplifying and streamlining all elements.

Three Great Strategies
• In SMED, the changeover process is broken into a sequenced list
of steps called elements.
• The objective of SMED is to remove as many elements from the

changeover process as possible by separating or converting them
(moving them external to the changeover) and then streamlining
any remaining elements (completing them faster, easier, or in
parallel with other elements).
Three highly effective strategies for reducing changeover times are:

• Implement Single-Minute Exchange of Die (SMED)
• Make Changeover Time Visual
• Provide Advance Notification of Changeovers

Implement Single-Minute Exchange of Die (SMED)
Problem: We want to significantly reduce our changeover times.
Strategy: Apply SMED to achieve dramatic reductions in changeover time.
SMED splits the changeover process into a sequenced list of steps called
elements.
The essence of SMED is to transform as many elements as possible to “external”

(performed while the equipment is running), and to remove or streamline the
remaining elements. SMED projects have three conceptual stages:
• Separate (move elements to external)
• Convert (modify elements so they can be external, or remove them

completely)
• Streamline (complete elements faster).

• Although applying SMED at an expert level can be complex and time
consuming, there are almost always opportunities for quick wins.
• Especially, since SMED works very well in an iterative process.
• The above process is typically repeated in multiple passes, where a good goal
for each pass is to cut the changeover time in half (hence the biggest wins are
typically in the first pass).
Solution:
XL includes a complete SMED overview as one of its integrated Improvement
Techniques.
XL can also track changeover elements (see below), and display actual and target
time for each element on the XL scoreboard.

Solution:
By reviewing historical reports you can quickly identify which elements of the
changeover are meetings target and which need closer attention.

Problem: Our operators don't know if they are on pace for any given
changeover.
Strategy: Provide real-time plant floor indication for how long changeovers
are taking compared to the target time.
Solution: The XL scoreboard displays a target and remaining time for

each changeover (a visual factory best practice). For example:

Solution: The XL scoreboard displays a target and remaining time for

each changeover (a visual factory best practice). For example:
• Display the changeover target time (e.g., 15 minutes)
• Display a count-down of the target time that flashes red when the
changeover is over its budgeted time
• A variation is to break the changeover into SMED step elements
(see above), with a visual timer for each step.

Problem: Our teams are often unprepared for changeovers. We don't always
have our tools, materials, and people ready on time.
Strategy: Use job completion information to notify your team to start

preparing for a changeover event.
Solution: XL includes job metrics that count down remaining production for the
current job.
XL tracks Job Goal Count (how many pieces you plan to make), Pieces to Goal
(the amount of pieces remaining), and Percent Toward Goal. This information can
be displayed on the XL scoreboard and is also available for all production assets
through the All Production dashboard (see below).
Solution:

ACCELERATE PROGRESS
When implementing SMED it is helpful to recognize that there are
two broad categories of improvement:
• Human (achieved through preparation and organization)

• Technical (achieved through engineering)
Experience has taught that the human elements are typically much
faster and less expensive to improve then the technical elements.
In other words, the quick wins are usually with the human elements.
Avoid the temptation, especially with technically proficient teams, to

over-focus on technical elements. Instead, focus first on the human
elements.
Opportunity for SMED projects

Thanks

UPE503 – L06
Dr. Rajnish Mallick

Setup Changeover times
reduction procedure
Evaluation, Strategy and Implementation

With a live Industry tool example

2
Changeover times
• Every manufacturing process has periods of time where
equipment is unavailable due to tooling changes, material
changes, part changes, program changes, or any other changes
to production that must be performed while equipment is
stopped.
• Collectively, these events are referred to as “changeovers”, or

alternately as “setup”, “make ready” or “planned down time”.

NASCAR pit crew

minutes.
seconds.

SMED.
SMED process
• The SMED process focuses on making as many elements as
possible external, and simplifying and streamlining all elements.

Strategy Roadmap for Implementation
• Step-by-step roadmap for a simple and practical SMED implementation
Before Starting:
• Virtually every manufacturing company that performs changeovers can benefit
from SMED. That does not mean, however, that SMED should be the first
priority. In the real world, companies have finite resources, and those
resources should be directed to where they will generate the best return.
• So what should be the first priority? For most companies, the first priority
should be ensuring that there is a clear understanding of where productive
time is being lost, and that decisions on improvement initiatives are made
based on hard data. That means putting a system in place to collect and
analyze manufacturing performance data.
• The de facto “gold” standard for manufacturing performance data is

measuring OEE (Overall Equipment Effectiveness) with an additional
breakdown of OEE loss categories into the Six Big Losses and a detailed
breakdown of OEE Availability losses into Downtime Reason
Codes (including codes for tracking changeover time).

WHAT IS OEE?
• OEE (Overall Equipment Effectiveness) is a “best practices” metric that identifies the
percentage of planned production time that is truly productive.

WHAT IS OEE?
• OEE (Overall Equipment Effectiveness) is a “best practices” metric that
identifies the percentage of planned production time that is truly productive.
CALCULATING OEE – SIMPLE

How is the OEE score calculated?
• In simplest terms, OEE is the ratio of Fully Productive Time to Planned
Production Time. In practice this is calculated as:
• OEE = (Good Count × Ideal Cycle Time) / Planned Production Time

– Let’s define some terms:
• Good Count (pieces that are manufactured without any defects)
• Ideal Cycle Time (the theoretical fastest possible time to manufacture one
piece)
• Planned Production Time (the total time that the production asset is scheduled
for production)
• Fully Productive Time (producing only good pieces, as fast as possible, with
no stop time)
Once a system for measuring manufacturing performance is in place collect data
for at least two weeks to gain a clear picture of where productive time is being lost.

Step One – Identify Pilot Area

Step One – Identify Pilot Area
Once the target equipment has been selected, record a baseline time for the
changeover.
Changeover time should be measured as the time between production of the last
good part (at full speed) and production of the first good part (at full speed).
Be cognizant of the “Hawthorne Effect”; changeover times may temporarily

improve as a simple result of observing the process. When possible, use prior data
to baseline the changeover time.

Step Two – Identify Elements
• In this step, the team works together to identify all of the elements of the
changeover. The most effective way of doing this is to videotape the entire
changeover and then work from the videotape to create an ordered list of
elements, each of which includes:
• Description (what work is performed)
• Cost in Time (how long the element takes to complete)

Step Two – Identify Elements
Some useful tips for this step:
The deliverable from this step should be a complete list of changeover elements, each with a
description and time “cost”.
Step Three – Separate External Elements
In this step, elements of the changeover process that can be performed with little
or no change while the equipment is running are identified and moved “external”
to the changeover (i.e. performed before or after the changeover).
It is not unusual for changeover times to be cut nearly in half with this step alone.
For each element the team should ask the following question: Can this element,
as currently performed or with minimal change, be completed while the
equipment is running?
If the answer is yes, categorize the element as external and move it before or after
the changeover, as appropriate.

Step Three – Separate External Elements
The deliverable from this step should be an updated list of changeover elements,
split into three parts: External Elements (Before Changeover), Internal Elements
(During Changeover), and External Elements (After Changeover).

Step Four – Convert Internal Elements to External
• In this step, the current changeover process is carefully examined, with the
goal of converting as many internal elements to external as possible.
• For each internal element, the team should ask the following questions: If
there was a way to make this element external, what would it be? How could
we do it?
• This will result in a list of elements that are candidates for further action. This
list should be prioritized so the most promising candidates are acted on first.
Fundamentally, this comes down to performing a cost/benefit analysis for each
candidate element:
• Cost as measured by the materials and labour needed to make the necessary
changes.
• Benefit as measured by the time that will be eliminated from the changeover.
Step Four – Convert Internal Elements to External
• Once the list has been prioritized work can begin on making the necessary
changes. Examples of techniques that can be used to convert internal elements
to external are:
The deliverable from this step should be an updated list of changeover elements, with fewer
internal elements, and additional external elements (performed before or after the
changeover).
Step Five – Streamline Remaining Elements
• In this step, the remaining elements are reviewed with an eye towards
streamlining and simplifying so they can be completed in less time. First
priority should be given to internal elements to support the primary goal of
shortening the changeover time.
• For each element, the team should ask the following questions: How can this
element be completed in less time? How can we simplify this element?
• As in the previous step a simple cost/benefit analysis should be used to

prioritize action on elements.

Step Five – Streamline Remaining Elements
• Examples of techniques that can be used to streamline elements are:
The deliverable from this step should be a set of updated work instructions for the changeover
(i.e. creating Standardized Work) and a significantly faster changeover time!
• In SMED, the changeover process is broken into a sequenced list
of steps called elements.
• The objective of SMED is to remove as many elements from the

changeover process as possible by separating or converting them
(moving them external to the changeover) and then streamlining
any remaining elements (completing them faster, easier, or in
parallel with other elements).
Three highly effective strategies for reducing changeover times are:

• Implement Single-Minute Exchange of Die (SMED)

Take-home message: Opportunity for SMED projects

Thanks

UPE503 – L08
Dr. Rajnish Mallick

Aggregate Planning
Learning Objectives
• Explain what aggregate planning is and how it is
useful.
• Identify the variables decision makers have to work
with in aggregate planning and some of the possible
strategies they can use.
• Describe some of the graphical and quantitative
techniques planners use.
• Prepare aggregate plans and compute their costs.
Aggregate Plan and Master Schedule
flowchart
Planning Horizon
Aggregate planning: Intermediate-range capacity

planning, usually covering 2 to 12 months.
Long range
Intermediate
range
Short
range
Now 2 months 1 Year

Overview of Planning Levels
• Short-range plans (Detailed plans)

– Machine loading
– Job assignments
• Intermediate plans (General levels)
– Employment
– Output
• Long-range plans
– Long term capacity
– Location / layout
Planning Sequence
Economic,
Corporate competitive, Aggregate
strategies and political demand
and policies conditions forecasts
Establishes operations
Business Plan
and capacity strategies
Establishes
Aggregate plan
operations capacity
Master schedule Establishes schedules

for specific products
flowchart
Aggregate Planning
• Begin with forecast of aggregate demand
• Forecast intermediate range
• General plan to meet demand by setting
– Output levels
– Employment
– Finished goods inventory level
• Production plan is the output of aggregate planning

• Update plan periodically – rolling planning horizon always
covers the next 12 – 18 months
Aggregate Planning Inputs
• Resources • Costs
– Workforce – Inventory carrying
– Facilities – Back orders
• Demand forecast – Hiring/firing
– Overtime
• Policies
– Inventory changes
– Subcontracting
– Subcontracting
– Overtime
– Inventory levels
– Back orders
Aggregate Planning Outputs
• Total cost of a plan

• Projected levels of inventory
– Inventory
– Output
– Employment
– Subcontracting
– Backordering
Aggregate Planning: Variable subject to control
These controllable variables constitute pure strategies by which
fluctuations in demand and uncertainties in production activities
can be accommodated.
13-12
Aggregate Planning Strategies
• Proactive
– Alter demand to match capacity
• Reactive
– Alter capacity to match demand
• Mixed
– Some of each
Demand Options
• Pricing
• Promotion
• Back orders
• New demand
Capacity Options
• Hire and layoff workers
• Overtime/slack time
• Part-time workers
• Inventories
• Subcontracting
• Maintain a level workforce

• Maintain a steady output rate
• Match demand period by period
• Use a combination of decision
variables
Basic Strategies
• Level capacity strategy:

– Maintaining a steady rate of regular-time output while
meeting variations in demand by a combination of
options
• Chase demand strategy:
– Matching capacity to demand; the planned output for a
period is set at the expected demand for that period
Chase Approach
• Advantages
– Investment in inventory is low
– Labor utilization in high
• Disadvantages
– The cost of adjusting output rates and/or workforce
levels
Level Approach
• Advantages
– Stable output rates and workforce
• Disadvantages
– Greater inventory costs
– Increased overtime and idle time
– Resource utilizations vary over time
Techniques for Aggregate Planning
1. Determine demand for each period

2. Determine capacities for each period
3. Identify policies that are pertinent
4. Determine units costs
5. Develop alternative plans and costs
6. Select the best plan that satisfies objectives.
Otherwise return to step 5.
13-20
Cumulative Graph
Cumulative output/demand
Cumulative
production
Cumulative
demand
1 2 3 4 5 6 7 8 9 10
Average Inventory
Average Beginning Inventory + Ending Inventory

inventory =
2
Mathematical Techniques
Linear programming: Methods for obtaining optimal

solutions to problems involving allocation of scarce
resources in terms of cost minimization.
Simulation models: Computerized models that can be

tested under different scenarios to problems.
Summary of Planning Techniques
Technique Solution Characteristics

Graphical/charting Heuristic (trial Intuitively appealing, easy to
and error) understand; solution not
necessarily optimal.
Linear Optimizing Computerized; linear assumptions
programming not always valid.
Simulation Heuristic (trial Computerized models can be

and error) examined under a variety of
conditions.
13-24
Numerical Example
13-25
Numerical Example
13-26
Numerical Example
13-28
Thanks

UPE503 – L08
Dr. Rajnish Mallick

Aggregate Planning
Learning Objectives
useful.
flowchart
Planning Horizon

Long range
Intermediate
range
Short
range
Now 2 months 1 Year

Overview of Planning Levels
• Short-range plans (Detailed plans)

– Machine loading
– Job assignments
• Intermediate plans (General levels)
– Employment
– Output
• Long-range plans
– Long term capacity
– Location / layout
Planning Sequence
Economic,
Corporate competitive, Aggregate
strategies and political demand
and policies conditions forecasts
Establishes operations
Business Plan
and capacity strategies
Establishes
Aggregate plan
operations capacity
Master schedule Establishes schedules

for specific products
flowchart
Aggregate Planning
• Begin with forecast of aggregate demand
• Forecast intermediate range
• General plan to meet demand by setting
– Output levels
– Employment
– Finished goods inventory level
• Production plan is the output of aggregate planning

• Update plan periodically – rolling planning horizon always
covers the next 12 – 18 months
Aggregate Planning Inputs
• Resources • Costs
– Workforce – Inventory carrying
– Facilities – Back orders
• Demand forecast – Hiring/firing
– Overtime
• Policies
– Inventory changes
– Subcontracting
– Subcontracting
– Overtime
– Inventory levels
– Back orders
Aggregate Planning Outputs
• Total cost of a plan

• Projected levels of inventory
– Inventory
– Output
– Employment
– Subcontracting
– Backordering
13-12
• Proactive
– Alter demand to match capacity
• Reactive
– Alter capacity to match demand
• Mixed
– Some of each
Demand Options
• Pricing
• Promotion
• Back orders
• New demand
Capacity Options
• Hire and layoff workers
• Overtime/slack time
• Part-time workers
• Inventories
• Subcontracting
• Maintain a level workforce

• Maintain a steady output rate
• Match demand period by period
• Use a combination of decision
variables
Basic Strategies

options
Chase Approach
• Advantages
• Disadvantages
levels
Level Approach
• Advantages
• Disadvantages

13-20
Cumulative Graph
Cumulative output/demand
Cumulative
production
Cumulative
demand
1 2 3 4 5 6 7 8 9 10
Average Inventory
Average Beginning Inventory + Ending Inventory

inventory =
2
Mathematical Techniques
Linear programming: Methods for obtaining optimal

solutions to problems involving allocation of scarce
resources in terms of cost minimization.
Simulation models: Computerized models that can be

tested under different scenarios to problems.
Summary of Planning Techniques
Technique Solution Characteristics

Graphical/charting Heuristic (trial Intuitively appealing, easy to
and error) understand; solution not
necessarily optimal.
Linear Optimizing Computerized; linear assumptions
programming not always valid.
Simulation Heuristic (trial Computerized models can be

and error) examined under a variety of
conditions.
13-24
Numerical Example
13-25
Numerical Example
13-26
Numerical Example
13-28
Thanks

UPE503 – L10
Dr. Rajnish Mallick

Aggregate Planning
Learning Objectives
useful.
flowchart
Planning Horizon

Long range
Intermediate
range
Short
range
Now 2 months 1 Year

13-6
Basic Strategies

options
Chase Approach
• Advantages
• Disadvantages
levels
Level Approach
• Advantages
• Disadvantages

Numerical Example
flowchart
flowchart
Aggregate Planning – In action!
Imagine yourself as CEO of a company!
Aggregate Planning – In action! Example 01
Example 01
Example 01
Example 01
Breakeven analysis
UPE503 – L09
Dr. Rajnish Mallick

Breakeven analysis
Breakeven analysis
Key terms (1)
Before we start studying breakeven it is essential that you
understand some key terms:
Breakeven is the point at which total revenue equals total

costs. Breakeven analysis helps businesses make decisions
about prices, costs and the level of sales.
Turnover or sales revenue is the money a business receives

from selling its goods.
Total revenue = Price per product x Quantity sold
If I charged £20 for each product and sold ten then my total
revenue would be £200.
Breakeven analysis
Key terms (2)

Total costs = Fixed costs + Variable costs
Fixed costs are costs that do not change as output changes,

e.g. rent.
Variable costs depend on the amount a business produces,

e.g. the more milkshakes McDonald’s sells, the more
ingredients it will need.
Breakeven analysis
Key terms (3)

Contribution per unit is:
Selling price per unit – Variable price per unit
Margin of safety is the point at which a firm’s actual sales are

greater than its breakeven point.
Breakeven analysis
Scenario: AP Sports (1)
Andy set up AP Sports in 2012 and his costs and revenues were
as follows:
Price per unit: £10

Variable cost per unit: £5
Fixed costs: £10
We can lay this out in a table format to help us understand the

theory.
Breakeven analysis

Number sold Fixed costs Variable Total costs Total revenue
(£) costs (£) (£) (£)
0 10 0 10 0
1 10 5 15 10
2 10 10 20 20
3 10 15 25 30
4 10 20 30 40
5 10 25 35 50
Breakeven analysis
• The fixed costs remain constant at £10.

• Total costs are when fixed costs are added to variable costs.
• The breakeven point is at two units, as the total revenue
equals total costs.
Breakeven analysis
Why is breakeven useful?
• It helps assess the impact of price changes.

• It helps assess changes in costs.
• It is a useful planning tool.
• It is an essential part of any business plan.
Breakeven analysis
Problems with breakeven
Breakeven is only a forecast. It can change if:

• the price of raw materials changes
• the number of competitors changes
• the current market is volatile and breakeven becomes less
predictable
Breakeven analysis
Student task (1)
Fixed costs: £2,000 per month

Variable cost per unit: £50
Price per unit: £100
Breakeven analysis
Student task (2)
Based on the information on the last slide:

1. Draw a table for the monthly data (going up in units of 10) and
try and identify the breakeven figure.
2. Calculate the breakeven using the formula method.
3. Draw a breakeven diagram on graph paper, labelling it as follows:
total revenue, total costs, fixed costs, breakeven point
Breakeven analysis
The formula method
A much quicker way to calculate the breakeven is:
Total fixed costs ÷ Contribution per unit

Numerical Example
Breakeven analysis
Numerical Example
Breakeven analysis
Numerical Example
Breakeven analysis
Aggregate Planning: Variable subject to
control
Breakeven analysis
These controllable variables constitute pure strategies by
which fluctuations in demand and uncertainties in production
activities can be accommodated.
Aggregate Planning in Services
Breakeven analysis
Services occur when they are rendered Demand for service

can be difficult to predict Capacity availability can be
difficult to predict Labor flexibility can be an advantage in
services
Aggregate Plan to Master Schedule
Breakeven analysis
Aggregate
Planning
Disaggregation
Master
Schedule
Disaggregating the Aggregate Plan
Breakeven analysis
Master schedule: The result of disaggregating an

aggregate plan; shows quantity and timing of
specific end items for a scheduled horizon.
Rough-cut capacity planning: Approximate

balancing of capacity and demand to test the
feasibility of a master schedule.
UPE503 – L12
Dr. Rajnish Mallick

MATERIAL REQUIREMENTS
PLANNING (MRP)
Master Schedule and Material
Requirements flowchart
Master Schedule and Material
Requirements flowchart
Learning Objectives
1. Understand what MRP is and where it is best applied.
2. Understand the source of the information used by the
system.
3. Know how to do an MRP “explosion.”
4. Know how order quantities are calculated in MRP
systems.
Material Requirements Planning:
In the 1980s manufacturing led the national economy in the move
from batch-oriented data processing systems to online transaction
processing systems. The focus was MRP (initially material
requirements planning, evolving to manufacturing resource
planning), which later evolved into enterprise resource planning
(ERP).
New paradigm
Another new paradigm comes roaring through manufacturing.
Specifically, we are speaking of the change in our economy from
a build-to-stock to a build-to-order model of doing business.
The weak link in the build-to-stock model is inventory

management, and this can be traced to an even weaker link,
reliance upon sales forecasts.
A build-to-order model begins with the order, not the

forecast. The old problem of coordinating the procurement of
parts, production of the product, and shipping the product still
exists.
New paradigm
Today the term flow management is used to describe new hybrid
production planning systems that combine the information
integration and planning capability of MRP with the response of
a JIT Kanban system.
Major ERP software vendors such as Oracle, SAP, and i2

Technologies are selling these new systems.
It’s important not to be tricked into thinking that all these

new words really represent something new.
Actually, flow manufacturing just combines things that have been

used for years. In this case the combination is JIT Kanban logic,
MRP logic for planning material requirements, and client–server
ERP.
Today the term flow management is used to describe new hybrid
production planning systems that combine the information
integration and planning capability of MRP with the response of
a JIT Kanban system.
Major ERP software vendors such as Oracle, SAP, and i2

Technologies are selling these new systems.
Material requirements planning (MRP)
Material requirements planning (MRP) systems have been
installed almost universally in manufacturing firms, even those
considered small. The reason is that MRP is a logical, easily
understandable approach to the problem of determining the
number of parts, components, and materials needed to produce
each end item.
MRP also provides the schedule specifying when each of these

materials, parts, and components should be ordered or produced.
MRP is based on dependent demand.
Dependent demand is caused by the demand for a higher-level

item. Tires, wheels, and engines are dependent demand items
based on the demand for automobiles.
Material requirements planning (MRP)
Where MRP can be used?
MRP is most valuable in industries where a number of products
are made in batches using the same productive equipment.
MRP is most valuable to companies involved in assembly operations and least valuable to
those in fabrication. One more point to note: MRP does not work well in companies that
produce a low number of units annually.
MRP Structure
The material requirements planning (MRP) portion of manufacturing activities
most closely interacts with the master schedule, bill of materials file, inventory
records file, and the output reports
Overall View of the Inputs to a Standard Material Requirements Planning Program and the
Reports Generated by the Program
Data Inputs and Outputs of a MRP Structure
Thanks

UPE503 – L13
Dr. Rajnish Mallick

MATERIAL REQUIREMENTS
PLANNING (MRP) - 02
Learning Objectives
1. Understand what MRP is and where it is best applied.
2. Understand the source of the information used by the
system.
3. Know how to do an MRP “explosion.”
4. Know how order quantities are calculated in MRP
systems.
MRP Structure
The material requirements planning (MRP) portion of manufacturing activities
most closely interacts with the master schedule, bill of materials file, inventory
records file, and the output reports
Overall View of the Inputs to a Standard Material Requirements Planning Program and the
Reports Generated by the Program
Data Inputs and Outputs of a MRP Structure
D em an d f or Prod u ct s
Product demand for end items comes primarily from two main sources.
The first is known customers who have placed specific orders, such as
those generated by sales personnel, or from interdepartmental
transactions. These orders usually carry promised delivery dates.
There is no forecasting involved in these orders - simply add them up.
The second source is forecast demand. These are the normal

independent-demand orders; the forecasting models
Bill of Materials (BOM)
The bill of materials (BOM) file contains the complete product
description, listing not only the materials, parts, and components but
also the sequence in which the product is created.
This BOM file is one of the three main inputs to the MRP program.
(The other two are the master schedule and the inventory records
file.)
The BOM file is often called the product structure file or product
tree because it shows how a product is put together. It contains the
information to identify each item and the quantity used per unit of
the item of which it is a part.
To illustrate this, consider Product A shown in Exhibit 13.3. Product

A is made of two units of Part B and three units of Part C.
Part B is made of one unit of Part D and four units of Part E. Part C
is made of two units of Part F, five units of Part G, and four units of
Part H.
Product L Hierarchy in (a) Expanded to the Lowest Level of Each Item in (b)
Inventory Records
The inventory records file can be quite lengthy.
The variety of information contained in the inventory records is

exhaustive.
The MRP program accesses the status segment of the record

according to specific time periods (called time buckets in MRP
slang). These records are accessed as needed during the program
run.
MRP program performs its analysis from the top of the product
structure downward, calculating requirements level by level.
When it is desirable to identify the parent item that caused the

material requirement.
Inventory Records
The MRP program allows the creation of a peg record file either
separately or as part of the inventory record file.
Pegging requirements allows us to retrace a material requirement

upward in the product structure through each level, identifying each
parent item that created the demand.
Thanks

UPE503 – L15/16
Dr. Rajnish Mallick

Lean:
Why Lean?
Introduction to Lean
Lean Philosophy
▪ Lean is a way of thinking. It it is all about continuous

improvement with a focus on eliminating all forms of
waste in a process.
▪ Here is a great video to introduce you to the lean

philosophy.
• https://www.youtube.com/watch?v=psTNv1blsCU
History of Lean
▪ Started out with Henry Ford’s assembly line in the early

1900’s. First person who continuously worked to make
sure his process was as efficient as possible.
▪ Then shortly after WWII Taichi Ohno and Kiichiro Toyoda

took aspects of Ford’s work with new ideas for
continuous improvement and created the Toyota
Production System.
▪ https://www.lean.org/whatslean/history.cfm
WHY LEAN?

Lean Manufacturing
▪ Lean Manufacturing is all about making a product in the
most efficient and effective manner, while looking for
ways to continuously improve.
▪ Continuous Improvements:
• Decrease Cycle Time
• Eliminate sources of waste in a process
• Increase Throughout
Lean Manufacturing –What and Why?

Lean Manufacturing Definition
Lean has been defined in many different ways.
“A systematic approach to identifying and eliminating waste

(non-value-added activities) through continuous
improvement by flowing the product at the pull of the
customer in pursuit of perfection.”


System to American.

Waste

to the product
7 Forms of Waste
CORRECTION
Repair or MOTION
WAITING
Types
Producing more
is necessary
before it is needed
INVENTORY
out of storage, or
between
processes.
LEAN MANUFACTURING
A COLLECTION OF TECHNIQUES
AIMED AT WASTE MINIMIZATION
LEAN MANUFACTURING
A COLLECTION OF TECHNIQUES
AIMED AT WASTE MINIMIZATION
Lean Manufacturing
Lean Manufacturing is a significant aspect

of being an effective Engineer and
Leadership.
Thanks

Ilovepdf Merged

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Ilovepdf Merged

Uploaded by

Copyright:

Available Formats

UPE503 – L01

Lean and Agile Manufacturing

Dr. Rajnish Mallick

L01_ UPE503 Dr. Rajnish Mallick MED

UPE503 Dr. Rajnish Mallick MED

UPE503 Dr. Rajnish Mallick MED

UPE503 Dr. Rajnish Mallick MED

UPE503 Dr. Rajnish Mallick MED

• Complexity of manufacturing systems, manufacture of a large variety of

• Introduce strategies adopted by manufacturing industry, lean and agile

• Introduce some tools and techniques which are essential to move

Dr. Rajnish Mallick, AP, MED, TIET

Manufacturing management: Brief coverage of layout design, material handling,

Need of lean and agile manufacturing; Business and manufacturing scenario,

• Christopher, M. Logistics and Supply Chain Management, FT

• State-of-the-art research literature for Industry 4.0 and case-

Dr. Rajnish Mallick, AP, MED, TIET 11

Evaluation Elements Weightage (%)

• Sessionals (May include Assignments/Projects/Quizzes/Lab

Dr. Rajnish Mallick, AP, MED, 12

UPE503 Dr. Rajnish Mallick MED

Lean has been defined in many different ways.

“A systematic approach to identifying and eliminating waste

In 1990 James Womack, Daniel T. Jones, and Daniel Roos

In this book, Womack introduced the Toyota Production

What was new was a phrase – "Lean Manufacturing."

“Anything that adds Cost

UPE503 Dr. Rajnish Mallick MED

Agile was designed for software development teams as a time-

Agile’s iterative approach encourages constant feedback and

UPE503 Dr. Rajnish Mallick MED

Dr. Rajnish Mallick

L01_ UPE503 Dr. Rajnish Mallick MED

In 1990 James Womack, Daniel T. Jones, and Daniel Roos

In this book, Womack introduced the Toyota Production

What was new was a phrase – "Lean Manufacturing."

“Anything that adds Cost

UPE503 Dr. Rajnish Mallick MED

In a factory, manufacturing processes are assembled together

The manufacturing system takes specific inputs, adds value

It is important to distinguish between the production system

UPE503 Dr. Rajnish Mallick MED

As elaborated in Figure 1,* the

These subsystems are connected

UPE503 Dr. Rajnish Mallick MED

• The process always involves a transformation of some raw materials (or

• In the case of a service, often knowledge or know how is brought

• The process is shown in the

UPE503 Dr. Rajnish Mallick MED

Companies set up to make a profit are known as enterprises.

UPE503 Dr. Rajnish Mallick MED

However, if we look at manufacturing in terms of economics then a different picture

UPE503 Dr. Rajnish Mallick MED

• Primary Industries exploit natural resources e.g. agriculture or mining

• Secondary Industries take the output of primary industries and convert

• Tertiary Industries contribute to the service sector of the economy. e.g.

UPE503 Dr. Rajnish Mallick MED

UPE503 Dr. Rajnish Mallick MED

This system is commonly referred to as a “job shop” due to its

This type of system is designed for production runs that happen

The product goes through an assembly line with different stations

This type of production system is ideal when a company has very

UPE503 Dr. Rajnish Mallick MED