Course Title

Lean and Agile Manufacturing (3+0)

Department of Industrial Engineering & Management

MS., Batch 2021 n 2022

Lecture 2-3

Lean and Agile in brief context

1
What is this course designed to achieve?
• Introduction

• What is Lean and Agile Manufacturing

• Why do we need to be agile

• Key to Agility and Flexibility

• Agile Manufacturing in our company

• Four Core Concepts

• Nuts and Bolts

• Interdisciplinary Design

• How can we make the transition

• Real world example

2
Lean Manufacturing

• Lean manufacturing is a philosophy that considers the expenditure of

resources other than the direct creation of value for the end customer to
be wasteful.

• Thus its targeted for elimination.

• Working from the perspective of the client who consumes a product or

service.

3
Lean Manufacturing

• It is a manufacturing system based on a new system design.

• It enables companies to achieve continual gains in productivity (low unit

costs), which satisfy customer expectations for superior quality and
prompt delivery.

• ex- TOYOTA PRODUCTION SYSTEM- BETTER, FASTER AND

LESS EXPENSIVE

4
Lean Manufacturing

• Lean manufacturing is a business model and collection of tactical

methods that emphasize eliminating non-value added activities (waste)
while delivering quality products on time at least cost with greater
efficiency.

5
Principles of Lean
1. Eliminate Waste
2. Build Quality In
3. Create Knowledge
4. Defer Commitment
5. Deliver Fast
6. Optimize the Whole

6
Steps in Lean
1. Identify Value- ( At a specific price, at a specific time)
2. Identify the value stream( entire sequence of activities is called
value stream)
3. Improve Flow
4. Allow Customer Pull (what the customer orders or requests so that
customer demand or "pull" drives company production)
5. Work towards Perfection

7
Advantages of Lean
• Reduction of Manufacturing Time

• Help to keep Business Going

• Help to Reduce Floor Space

• Increase Manufacturing Productivity

• Help to boost Profits

• Help to achieve good customer Relations

• Cultures are standardized

and Personnel
• Makes the difference between Management 8
Agile Manufacturing

• Agile manufacturing is an approach to manufacturing which is

focused on meeting the needs of customers while maintain high
standards of quality and controlling the overall cost involved in
the production of particular product.
• Agile manufacturing is seen as the next step after Lean
manufacturing in the evolution of production methodology.

9
Agile Manufacturing

• Agile manufacturing is a term applied to an organization that has

created the processes, tools, and training to enable it to respond
quickly to customer needs and market changes while still
controlling costs and quality.

10
Agile Manufacturing

• Customers are expecting:

• Low volume products

• High quality products

• Custom products

• Very short product life-cycles, development time, and

production lead times are required.

11
Principles of Agile Manufacturing
• Highest priority is customer satisfaction
• Welcome changing requirements
• Frequent delivery of software
• Business people & developers cooperating daily
• Build projects around motivated people
• Face-to-face conversation is best
• Progress measured by working software
• Sustainable development pace
• Continuous attention to technical excellence
• Simplicity
• Self-organizing teams
• Regular reflection & adaptation

12
Advantages of Agile Manufacturing

• The company is given a competitive advantage since it is

continuously changing its approach to satisfy its customers.
• Innovative design based on the customer’s demands are
provided.
• Responds quickly to emerging crisis.
• Even though the production could change rapidly, mass
production could still be reached while flexibility is still
possible.
13
Difference in Lean and Agile Manufacturing

Lean Agile
• No Customization • Customization
• Only one or two version • Numerous options are
of Products available
• Minimum Inventory • Inventory buffers
• Smooth Production • Production Schedule is
Schedule responsive to change

14
Difference in Lean and Agile Manufacturing

• While lean manufacturing focuses on removing waste

and 'dropping weight', agile is more focused at using

the current resources intelligently and that the

organization has the right data to implement changes

in manufacturing.

15
Difference in Lean and Agile Manufacturing

16
Similarities

• Both ultimately focused on increasing business sustainability in

the high-cost manufacturing sector.
• Both are answers to challenges faced by historical manufacturers.
• Both provide opportunities for smaller players to compete with
larger, entrenched competitors
• Both concepts rely heavily on statistical analysis, computerized
information systems and open communication between internal
and external stakeholders.
17
 18
How can we make the transition to lean or agile manufacturing