Lean Management

Weaving a better world

Concept of Lean Manufacturing for

Supervisor
PURPOSE OF
TRAINING
 Historical Background

 History of lean Manufacturing

 Taiichi Ohno (29 February 1912- 28 MAY 1990)
 Considered to be the father of Toyota production system
(Lean Manufacturing)
 Wrote Several books about the system,
the most popular of which is Toyota Production System
 Historical Background
 In 1945,Toyota challenged Taiichi Ohno to learn how to compete with
US Automakers
 Not on building large volumes of similar model, but many models in low
volume
 “catch up with America in three years” Toyoda
 Ohono went to the US and studied Ford mass assembly processes at
the Rouge River Plant
 Studied Mass Production System and identified.
 Process Based Layout as a source of generating waste( 1 Operator, 1
Machine )
 Cell-Based (Flow) Layout as the possible solution (1 Operator, Many
Machine)
Lean Thinker
 Lean Manufacturing
Definition
 Lean Manufactring, also called lean production, is set of tools and
methodologies that aims for the continuous elimination of all
waste in production process.
 The main benefits are lower production cost, increased output
and shorter production lead times. More specifically, some of the
goal include.
 Defects and wastage elimination
 Cycle time improvement
 Inventory levels improvement
 Improved utilization of equipment and space
 Improve flexibility
 What does Lean Manufacturing do ?
A manufacturing philosophy which shortens the time line
between the customer order and the shipment by eliminating
waste.

Waste Business
Customer Order Customer Order
as usual
Time

Customer Order Waste Customer Order

Lean
Manufacturing
 Lean Manufacturing
Key Principles behind Lean Manufacturing can be
summarized as follow:
Recognition of waste
Standing processes
Continuous flow
Pull production
Quality at the source
Continuous improvement
 Lean System Benefits
Productivity Increment
Space Saving
On Time Delivery
Lead Time Reduction
Improve Supplier Performance
Improve Customer Quality
Progressive Waste Elimination
Increased Employee Ability and Waste
 Becoming Lean
Five Steps Procedure

A. Define Value Customer

B. Identify the Value Follow the Product
C. Follow the Product Eliminate the Waste
D. Pull Production Product Just in Time
E. Strive for Production Continuous Improvement
Waste
Lean Manufacturing Concept by DOWN TIME
Ohno Defined Seven Type of Waste
Defects
Over production
Waiting time
Non utilized people
Transportation
Inventory
Motion
Excess processing
 Lean Manufacturing Concepts
Defects:
Physical defects which directly add to the cost of good sold:
Inspection
Customer complaints
Scrap/Rework
Also includes:
Error in Paperwork
Provision of incorrect information about the product
Late delivery
Production to in correct specification
Result in Disruptions to the smooth flow and generates bottleneck
 Lean Manufacturing Concepts
Inventory:
Unnecessarily high level of:
Row materials
Work-in-Progress(WIP)
Finished Goods
Symptoms of a sick Factory Extra
inventory leads to:
Higher inventory financing costs
Higher storage costs
Higher defect rates
 Lean Manufacturing Concepts
Motion
Major part of a typical operator’s work include unnecessary
physical motions too fast or slow movement

Difficult physical movement, due to Poorly designed

ergonomic, which slow down / strain the workers
Lean Manufacturing Concepts
 Lean Manufacturing Concepts
Extra Processing
Unintentionally doing more processing work than
required
Typically performed in the name of quality may also
include setup and changeover
Lean Manufacturing Concepts
 Sources of waste
Layout (distance) Functional organization
Long setup time Excessive controls
Incapable processes
No Back-up / cross training
Poor maintenance
Unbalance workload
Poor working methods
No decision rules
Lack of training
Lack of adherence
No visual control
Ineffective scheduling Supplier quality
Poor supervisory skill Lack of work place
Inconsistent performance organization
measures
 Evidence of progress toward lean
Increased capacity
Higher inventory turn
More available floor space
Improved workplace organization
Improved quality:
Reduced scrap / re-work
Reduced inventories:
Raw, WIP, FG
Reduced lead time
Improved participation & Moral
 Lean Manufacturing Concepts
Analyzing current condition
Traditional Industrial Engineering Approach
Analyzing current condition to improve efficiency (Inductive )
Reliable, lead to higher efficiency
Does not question the existing system
Lean Approach
Analyzing current condition and deducting an ideal situation
The gap between ideal and current is minimized
Question the existing system
 Waste Detection and Elimination
Arrow Diagram: Finding Waste in Flow of Goods
Arrow Diagrams are applied:
Against the factory’s equipment layout diagram
By marking the major problem point in product flow
 To identify four major flow factor:
1. Processing 2. Inspection 3. Conveyance 4. Retention
 Are a good tool in flushing out the major sources / type of
waste in production
 Waste Detection and Elimination

Arrow Diagrams: how to create

1. Recognize the analytical purpose
2. Select the product to be analyzed
3. Prepare a factory layout diagram
4. Do flow analysis
5. Write up a summary chart of flow analysis
Question & Answer
THANK YOU