adjustments may be moved into software. requirements are reviewed with marketing and customer representatives to eliminate costly requirements. . For example.cut batch sizes · Line Balancing · Cut actual process times. safe materials and processes rather than inexpensive.internal customer pull instead of push system · Batch to Flow -. Principles of Lean Enterprise: · Zero waiting time · Zero Inventory · Scheduling -. Often an engineer will specify familiar. such as multipurpose power-supplies or shared mechanical components or fasteners. Another approach is to choose connection or power-transport methods that are cheap or that used standardized components that become available in a competitive market. and measurements away from a mechanical solution to an electronic solution. Requirements are assigned to the cheapest discipline. efficient ones. while increasing financial risks. The crucial insight is that most costs are assigned when a product is designed. the cost to the engineer. At the system engineering level. that is.WHAT IS LEAN MANUFACTURING? Lean Manufacturing is a business initiative to reduce waste in manufactured products. This reduces project risk. throughout the product and production process. and decreasing profits. Good organizations develop and review checklists to review product designs. by means of a series of engineering reviews. Shared modules may be developed. The basic idea is to reduce the cost systematically.

Why is Lean Manufacturing important? The aim of Lean Manufacturing is the elimination of waste in every area of production including customer relations. Essentially. Typically the types of waste considered in a lean manufacturing system include:  Overproduction: To produce more than demanded or produce it before it is needed. less inventory. Overproduction means making more than is required by the next process. Causes for overproduction waste include: • Just-in-case logic • Misuse of automation • Long process setup • Unleveled scheduling • Unbalanced work load • Over engineered • Redundant inspections  Inventory or Work-in-Progress: This is material between operations due to large lot production or processes with long cycle times. and factory management. supplier networks. and less space to become highly responsive to customer demand while producing top quality products in the most efficient and economical manner possible. a "waste" is anything that the customer is not willing to pay for. Its goal is to incorporate less human effort. product design. making earlier than is required by the next process. Causes of excess inventory include: • Protecting the company from inefficiencies and unexpected problems • Product complexity • Unleveled scheduling • Poor market forecast • Unbalanced workload • Unreliable shipments by suppliers • Misunderstood communications • Reward systems . less time to develop products. or making faster than is required by the next process. It is the result of producing to speculative demand. It is visible as storage of material.

All unnecessary processing steps should be eliminated. high turnover strategy . Causes of waiting waste include: • Unbalanced work load • Unplanned maintenance • Long process set-up times • Misuses of automation • Upstream quality problems • Unleveled scheduling  Under-utilizing People: Not taking advantage of people's abilities. it should be minimized or eliminated (e. Causes for processing waste include: • Product changes without process changes • Just-in-case logic • True customer requirements undefined • Over processing to accommodate downtime • Lack of communications • Redundant approvals  Transportation: This does not add any value to the product.g. long lead times. Instead of improving the transportation. forming cells). politics. Causes of transportation waste include: • Poor plant layout • Poor understanding of the process flow for production • Large batch sizes. Causes of people waste include: • Old guard thinking. and large storage areas  Waiting: For a machine to process should be eliminated. The principle is to maximize the utilization/efficiency of the worker instead of maximizing the utilization of the machines. Processing Waste: It should be minimized by asking why a specific processing step is needed and why a specific product is produced. the business culture • Poor hiring practices • Low or no investment in training • Low pay.

These occur due to huge technological advancements in the field of research and development. The basic elements of lean manufacturing are waste elimination. So the focus should be on how you can improve your work than the same done last time. Is the activity adding value? If YES If NO Is this the best way to do it? Can it be eliminated? If not. error proofing. continuous improvement. pull system.  Continuous Improvement(Kaizen): Japanese looked at improving their work every time they do it. For eg. . cellular manufacturing and 5S’s. Seeing whether the process is adding value to the product or not is the best way to identify wastes. can it be reduced? Out of the complete processes in an industry only about 5 % actually add value to the product. These are mostly done by high level engineers. scrap materials cannot be made zero. Innovations are those improvements which cause drastic changes. So focus should be on complete elimination of waste activities and reducing the necessary non-value adding activities. Improvement is classified into innovations and kaizen. quality and delivery. one-piece workflow.Elements of Lean Manufacturing Those concepts that lead to the implementation of lean manufacturing successfully are called elements of lean manufacturing. This lead to the development of concept called continuous improvement. Rest 35% activities are such that even though this doesn’t add any value but still it cannot be eliminated as it is necessary. Japanese rather than maintaining the improvement they have achieved they concentrated in continuously improving their work. When these elements are focused in the areas of cost. Kaizen include small small improvements done by lower order employees. it may take few minutes to load unload and load for next operation etc.  Eliminating Waste: Waste is anything that doesn’t add value to the product. lead-time reduction etc. This improvement can be in any field like quality. Rest of the process does not add any value. this forms the basis for a lean production system. Inventory cannot be completely reduced.

Identify the best location for remaining items. Less Space Required The 5 S’s It is the Japanese method of keeping the work place clean and tidy. CELL ADVANTAGES OVER FUNCTIONAL DEPARTMENT 1. inside and out. This helps in reducing many unnecessary movements. •Standardize (Seiketsu) . relocate out of place items.Here the product is made according to the customer demand. moved or given away. Departmental conflicts eliminated 8. . Hence the customer pulls the product through the production line. •Set in Order (Seiton) . So there may chance of piling of finished goods as there are always fluctuation in demand. Pull system. So the information of the quantity and type of product flow in the opposite direction to that of the product. Within a predetermined time the red tag items are disposed.Create the rules for maintaining and controlling the first 3S’s and use visual controls. Pull and Push System: Push system – Here the products are made according to the market forecast and not according to the current demand. Improved Quality . For the implementation of such a good plant layout deep knowledge of processes as well as proper analysis of processes involved in production is necessary. set inventory limits. The 5S’s are: •Sort (Seiri) .Quicker problem identification 3. sold. Simplified Scheduling 9. The plants layout is designed in such a way that transportation between machineries is reduced to minimum. and install temporary location indicators. But in cellular manufacturing machines are arranged according to the processes involved in production.Ensure adherence to the 5S standards through discipline. Improved Coordination 6. •Sustain (Shitsuke) .Clean everything. Less Material Handling 5.Less potential rework or scrap 4. Shorter Lead Time 2. Here no piling of finished products occurs as the production is according to the customer demand. So here the information flow is in the same direction as the product flow.Perform “Sort Through and Sort Out. •Shine (Seiso) .  Cellular Manufacturing: In traditional mass production machines are arranged according to its functions. Reduced Inventory 7. Thus the product is pushed through the production line. Improved Quality .” by placing a red tag on all unneeded items and moving them to a temporary holding area.

with a fraction of the normal work-in-process inventory. External Relations Based on price Based on long-term relationships Information Management Information-weak management based on abstract reports Information-rich management based on visual control systems maintained by all employees Cultural Culture of loyalty and obedience. Customer Satisfaction Makes what engineers want in large quantities at statistically acceptable quality levels. hypothesis generation. one-piece flow. when they want it. the following of orders. long production runs. Lean organizations are capable of producing high-quality products economically in lower volumes and bringing them to market faster than mass producers. and only in the quantities they order Leadership Leadership by executive command Leadership by vision and broad participation Organization Hierarchical structures that encourage following orders and discourage the flow of vital information that highlights defects. and organizational deficiencies. and organizational deficiencies. functional layout. Flat structures that encourage initiative and encourage the flow of vital information that highlights defects. TRADITIONAL MASS PRODUCTION LEAN PRODUCTION Business Strategy Product-out strategy focused on exploiting economies of scale of stable product designs and non-unique technologies Customer focused strategy focused on identifying and exploiting shifting competitive advantage. at half the cost. zero inventories Operational capability Dumb tools that assume an extreme division of labor. subculture of alienation and labor strife Harmonious culture of involvement based on long-term development of human resources Production Large-scale machines. Lean management is about operating the most efficient and effective organization possible. and no problem solving skills Smart tools that assume standardized work. . it's pulled there through a system that's set up to quickly respond to customer demand. strength in problem identification. A key difference in Lean Manufacturing is that it is based on the concept that production can and should be driven by real customer demand. equipment abnormalities.Comparison between tradition and Lean Manufacturing For years manufacturers have created products in anticipation of having a market for them. multi-skilling. operator errors. A lean organization can make twice as much product with twice the quality and half the time and space. Instead of pushing product to market. with the least cost and zero waste. Operations have traditionally been driven by sales forecasts and firms tended to stockpile inventories in case they were needed. equipment abnormalities. cell-type layout. minimal skills. operator errors. Lean Manufacturing can produce what your customer wants with shorter lead times. and experimentation. dispose of unused inventory at sale prices Makes what customers want with zero defect. Instead of producing what you hope to sell. massive inventories Human-scale machines.

This continued success has over the past two decades created an enormous demand for greater knowledge about lean thinking. As these words are written. maintenance. not to mention a clear lead in hybrid technology. retail. There are literally hundreds of books and papers. stands poised to become the largest automaker in the world in terms of overall sales. . by continually focusing on waste reduction. stands as the strongest proof of the power of lean enterprise. and even government. construction. and numerous other resources available to this growing audience. leaders are also adapting the tools and principles beyond manufacturing. Toyota. not to mention thousands of media articles exploring the subject. there are truly no ends to the benefits that can be achieved. the leading lean exemplar in the world. Indeed.Benefits of Lean Manufacturing  Reduced scrap and waste  Reduced inventory costs  Cross-trained employees  Reduced cycle time  Reduced obsolescence  Lower space/facility requirements  High quality & reliability  Lower overall costs  Self-directed work teams  Lead time reduction  Fast market response  Longer machine life  Improved customer communication  Lower inventories  Improved vendor support and quality  Higher labor efficiency and quality  Improved flexibility in reacting to changes  Allows more strategic management focus  Increased shipping and billing frequencies However. Its dominant success in everything from rising sales and market shares in every global market. healthcare. services. As lean thinking continues to spread to every country in the world. to logistics and distribution. lean consciousness and methods are only beginning to take root among senior managers and leaders in all sectors today.

T. Also there is no end in lean manufacturing.Conclusion “LEAN” can be said as adding value by eliminating waste being responsive to change. It is also important as it emphasis customer satisfaction. Although lean has its origin in the automobile industry it is being successfully used in other production industries. In universities like MIT. focusing on quality and enhancing the effectiveness of the work force. That is why it is said that: “lean is a journey”. Lean manufacturing cannot be attained in one day or one week or one month or in a year. Maryland university etc Lean manufacturing is included into the syllabus and it is given importance to new entrepreneurs. service etc in order to reduce production cost and meet changing customer needs. The more you eliminate waste the more you become lean. Since lean is completely customer oriented it is here to stay. . It needs lot of commitment and hard work. Lean has made its way into curriculum of major universities around the world. Many consulting firms are also functioning for proper guidance to those who are interested in lean. Lean manufacturing is now extended to fields like I.

Conclusion pg 1 pg 2 pg 4 pg 6 Pg 7 pg 8 .Elements Of Lean Manufacturing 4.Contents 1. Comparision Between Tradition & Lean Manufacturing 5. What Is Lean Manufacturing ? 2. Benefits Of Lean Manufacturing 6. Why Is Lean Maufacturing Important 3.

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