Dr.N.G.P.

Institute of Technology
Approved by AICTE, New Delhi & Affiliated to Anna University, Chennai
Recognized by UGC & Accredited by NAAC with A+ and NBA [BME, CSE, ECE, EEE & Mechanical]

Department of Mechanical Engineering

Name of the Faculty : Dr D VASANTH KUMAR

Subject Name & Code : LEAN MANUFACTURING & OIM552

Branch & Department : B.E MECHANICAL

Year & Semester : III & V

Academic Year : 2021 - 2022

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 Syllabus
• UNIT I - Introduction to Lean Manufacturing

• UNIT II - Cellular manufacturing, JIT, TPM

• UNIT III - Set-up Time Reduction, TQM, 5S, VSM

• UNIT IV - SIX SIGMA

• UNIT V - Case studies

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 Course Outcomes
• CO1 : Demonstrate the principles of lean manufacturing

• CO2 : Analyze the various methods for productivity measurement and

improvement
• CO3 : Apply the tools/techniques of lean manufacturing to industrial
problems
• CO4 : Execute various phases of Six Sigma for real time application

• CO5 : Analyze how lean techniques can be applied to various industry

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 Unit 2 – CELLULAR MANUFACTURING, JIT, TPM
• Cellular Manufacturing
– Types of Layout
– Principles of Cell layout
– Implementation
• JIT
– Principles of JIT
– Implementation of Kanban
• TPM
– Pillars of TPM
– Principles
– Implementation of TPM

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 Cellular Manufacturing
• Equipment and workstations

are arranged in a sequence that

supports a smooth flow of

materials and components

through the process minimal

transport or delay

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 U-shaped Cell
• Reduce travel distance by
arranging equipment and
workstations closer together.
• The beginning of the process
must be close to the end of the
process.
• The goal is to minimize the travel
distance between each steps and
cycles
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 What do you need in order to implement Cellular
Manufacturing ?

• Organize  your operations and equipment in a logic and

 validated U-Shaped Cell

• Empower your operators and set multi-machine and multi-

skilled operators as a standard
• Favour small, flexible machines

• Using autonomation (Jidoka) to eliminate machine watching

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How to design cells for Cellular Manufacturing?

• Analyse & document the process today (ASIS Situation)

• Define the product family that the cell will produce and calculate the
TAKT Time for the cell
• Balance the work to create flow between work-stations that meets
demand constraints
• Design the cell for ergonomics

• Implement, test and improve the cell through continuous improvement

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Functional Layout

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Cellular Layout

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Typical Flow of PRALE G

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Typical Flow of PRALE G

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 Types of layout

• Product or Line Layout

• Process or Functional Layout

• Fixed Position Layout

• Combination type of Layout

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 Product or Line Layout
• If all the processing equipment and machines are arranged according to the
sequence of operations of the product, the layout is called product type of layout.
• In this type of layout, only one product of one type of products is produced in an
operating area.
• This product must be standardized and produced in large quantities in order to
justify the product layout.
• The raw material is supplied at one end of the line and goes from one operation to
the next quite rapidly with a minimum work in process, storage and material
handling. Fig shows product layout for two types of products A and B.

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 Product or Line Layout
• Advantages offered by Product Layout
– Lowers total material handling cost.

– There is less work in processes.

– Better utilization of men and machines,

– Less floor area is occupied by material in transit and for temporary storages

– Greater simplicity of production control.

– Total production time is also minimized.

• Limitations of Product Layout:

– No flexibility which is generally required is obtained in this layout.

– The manufacturing cost increases with a fall in volume of production

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 Process or Functional Layout
• The process layout is particularly useful where low volume of production is needed.
If the products are not standardized, the process layout is more low desirable,
because it has creator process flexibility than other.
• In this type of layout, the machines and not arranged according to the sequence of
operations but are arranged according to the nature or type of the operations.
• This layout is commonly suitable for non repetitive jobs
• Same type of operation facilities are grouped together such as lathes will be placed
at one place, all the drill machines are at another place and so on. See Fig for
process layout.
• Therefore, the process carried out in that area is according to the machine available
in that area.

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 Process or Functional Layout
• Advantages of Process Layout:
– There will be less duplication of machines. Thus, total investment in equipment purchase will be
reduced.
– It offers better and more efficient supervision through specialization at various levels.
– There is a greater flexibility in equipment and man power thus load distribution is easily
controlled.
– Better utilization of equipment available is possible.
– Break down of equipment can be easily handled by transferring work to another machine/work
station.
– There will be better control of complicated or precision processes, especially where much
inspection is required.

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 Process or Functional Layout
• Limitations of Process Layout:
– There are long material flow lines and hence the expensive handling is required.
– Total production cycle time is more owing to long distances and waiting at various points.
– Since more work is in queue and waiting for further operation hence bottle necks occur.
– Generally, more floor area is required.
– Since work does not flow through definite lines, counting and scheduling is more tedious.
– Specialization creates monotony and there will be difficult for the laid workers to find job in
other industries.

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 Fixed Position Layout
• This type of layout is the least important for today’s manufacturing industries.

• In this type of layout the major component remain in a fixed location, other materials,
parts, tools, machinery, man power and other supporting equipment’s are brought to
this location
• The major component or body of the product remain in a fixed position because it is too
heavy or too big and as such it is economical and convenient to bring the necessary tools
and equipment’s to work place along with the man power.
• This type of layout is used in the manufacture of boilers, hydraulic and steam turbines
and ships etc.
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 Fixed Position Layout
• Advantages Offered by Fixed Position Layout:
– Material movement is reduced
– Capital investment is minimized.
– The task is usually done by gang of operators, hence continuity of operations is ensured
– Production centers are independent of each other. Hence, effective planning and loading can be
made. Thus total production cost will be reduced.
– It offers greater flexibility and allows change in product design, product mix and production
volume.
• Limitations of Fixed Position Layout:
– Highly skilled man power is required.
– Movement of machines equipment’s to production centre may be time consuming.
– Complicated fixtures may be required for positioning of jobs and tools. This may increase the
cost of production.

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 Combination Type of Layout
• Now a days in pure state any one form of layouts discussed above is
rarely found. Therefore, generally the layouts used in industries are the
compromise of the above mentioned layouts.
• Every layout has got certain advantages and limitations. Therefore,
industries would to like use any type of layout as such.
• Flexibility is a very important factory, so layout should be such which
can be molded according to the requirements of industry, without much
investment.
• If the good features of all types of layouts are connected, a compromise
solution can be obtained which will be more economical and flexible.

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 Principles of Cell Layout
• Group Technology is a manufacturing philosophy with far
reaching implications.
• The basic concept is to identify and bring together similar
parts and processes to take advantage of all the similarities
which exist during all stages of design and manufacture.
• A cellular manufacturing system is a manufacturing system
based upon groups of processes, people and machines to
produce a specific family of products with similar
manufacturing characteristics

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 Overview
• Working in Teams
• Standardizing Workplace Conditions through 5S
• Using Visual Management for Production Control and Safety
• Performing Autonomous Maintenance Activities
• Using Activity Boards and One-Point Lessons
 Working in Teams
• Success depends on teamwork
• In a cell, people work together in new ways
• Several operations are combined in a sequence, and the main job of the people
working in the cell is to maintain a smooth flow through the operations
• Work must be coordinated
• A group of employees has more creative potential and energy than any person
working on a problem alone
 Standardizing Workplace Conditions through 5S

• Cellular manufacturing cannot succeed in a workplace that is cluttered,

disorganized or dirty
• Establishing basic workplace conditions is essential in creating a
manufacturing cell
• The 5S system is a set of five basic principles that have names beginning
with S:
– Sort
– Set in Order
– Shine
– Standardize
– Sustain
Using Visual Management for Production Control and Safety

• Visual management is an important support for cellular manufacturing

• Visual management techniques express information in a way that can be

understood quickly by everyone
• Sharing information through visual tools helps keep production running smoothly
and safely
• One form of visual management in manufacturing cells is the andon system:
– Individual machines or assembly stations are equipped with call
lamps
– If the machine breaks down or run out of parts, the operator or the
machine turns on a light to call attention
 Using Visual Management for Production Control and Safety

• Visual location indicators help keep order in the workplace

– Lines, labels, and signboards

• Visual information can also prevent to make mistakes

– Color coding
– Matching color marks
Performing Autonomous Maintenance Activities
• Activities carried out by shop floor teams in cooperation with maintenance staff

• Element of Total Productive Maintenance (TPM)

• Changes old view that operators just run machines and maintenance people just fix
them

• Operators learn how to clean the equipment daily and how to inspect it for trouble
signs as they clean

• Learn the equipment and assist with repairs

• Team-based activity: work with maintenance technicians and engineer

 Using Activity Boards and One-point Lessons
• Two useful approaches for making information public
• A bulletin board or wall chart
– Displays information about team activities and the results achieved
– Chart improvement measures such as quality rate, On Time Delivery, Overtime, Takt Rate,
etc.
– Helps keeping track of issues to follow up in the future
• A one-point lesson
– An easy to read poster to teach others about a particular problem
– An improvement example, or
– Basic knowledge that everyone should have
– Kept short and focused on one point
– Often illustrated with photos or drawings
 Summary
• Working in Teams
• Standardizing Workplace Conditions through 5S
• Using Visual Management for Production Control and Safety
• Performing Autonomous Maintenance Activities
• Using Activity Boards and One-Point Lessons
 Developments of JIT and Lean Operations

• 1960’s: Developed as Toyota Production System by Taiichi

Ohno and his colleagues
• 1970’s: U.S. and European auto makers began to apply JIT to
improve quality and productivity
• 1990’s and beyond: Expanded the JIT concept to streamline all
types of operations
 Definition of JIT

• A set of techniques to increase, productivity, improve quality,

and reduce cost of an operations
• A management philosophy to promote elimination of waste
and continuous improvement of productivity
What Could Be the Expected Benefits of JIT?
 Main Elements of JIT
• Elimination of waste
• Quality at the source
• Balanced and flexible work flow
• Respect for people
• Continuous improvement (Kaizen)
• Simplification and visual control
• Focus on customer needs
• Partnerships with key suppliers
What is A “Waste?”
Why is Inventory Reduction Important?
 JIT- Principles of JIT
• Inventory system - a management strategy that aligns raw
material orders from suppliers directly with production
schedules.
• Companies use this inventory strategy
– To increase efficiency
– Decrease waste by receiving goods only as they need them for the
production process
– Reduces inventory costs
– This method requires producers to forecast demand accurately.

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 Quality at the Source

• Jidoka – autonomation (automatic detection of defects, e.g.,

Poka-yoke)
• Employee empowerment
• Statistical process control
• Prevention orientation (elimination of root causes through
PDSA cycle)
TPS

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 Balanced and Flexible Work Flow

• Yo-i-don (ready, set, go) system

• Stable production schedule
• Set-up time reduction
• Flow-shop and cellular layouts
• Shojinka (flexible & multi-skilled workforce)
• Teamwork
• Total productive maintenance (TPM)
 Respect for People

• Productivity improvement needs employee support

• Demonstrate by
– providing cross-training opportunities
– creating a safe and equitable work environment
– encouraging people to achieve their potential by giving them greater
responsibility and authority
– promoting teamwork (formal and informal)
– developing partnerships with unions
 Continuous Improvement (Kaizen)

• Employee suggestion system

• Process improvement
• 5S’s
– Seiri - organization
– Seiton - tidiness
– Seiso - purity
– Seiketsu - cleanliness
– Shitsuke - discipline
 Simplification and Visual Control

• Standard and simple product designs

• Andon boards
• Kanban pull system
• Flag systems
• Music as signals
• Performance display systems
 Focus on Customer Needs

• Customer needs determine the “value” of a product or

service
• Be responsive to customers needs (present and future)
• Strive to “delight,” not just “satisfy” customers
 Partnerships with Suppliers

• Reduce number of suppliers

• Use long-term contracts
• Emphasize price, delivery, and services
• Improve communication
• Share information
• Develop local just-in-time delivery
• Provide technical support to suppliers
 JIT Implementation
• Top management commitment
• Steering committee
• Education program
• Pilot project planning
• Employee training
• Pilot implementation
• Pilot post mortem
• Feedback to steering committee
• Expansion to next project
 Advancements in JIT (JIT II)

• Backwards Integration of staff and line functions to suppliers

(e.g., purchasing)
• Requires EDI or web access to materials and logistics systems
• On-site supplier representative(s) with transaction processing
authority
• Goal: link suppliers’ cycle to firm’s cycle to mutually reduce
wait and move times
 Benefits of JIT
• Reduced operating costs
• Greater performance and throughput
• Higher → quality
• Improved delivery
• Increased → flexibility and → innovativeness

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 KANBAN
• Ideal Environment for KANBAN Implementation
– Regular demand from the customer
– Low product variation
– Clear flow
– Small dedicated machines
– Quick changeovers
– Repeatable and reliable processes
– Reliable suppliers

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KANBAN Card

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Bin System

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 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

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 Types of maintenance
• Breakdown maintenance
• Preventive maintenance ( 1951 )
– Periodic maintenance ( Time based maintenance - TBM)
– Predictive maintenance
• Corrective maintenance ( 1957 )
• Maintenance prevention ( 1960 )

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TPM

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TPM

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Pillars of TPM

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Pillars of TPM

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Pillars of TPM

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Pillars of TPM

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Pillars of TPM

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 OEE
• OEE (Overall Equipment Effectiveness) is a metric that identifies the percentage of
planned production time that is truly productive. It was developed to support TPM
initiatives by accurately tracking progress towards achieving “perfect production”.
• An OEE score of 100% is perfect production.
• An OEE score of 85% is world class for discrete manufacturers.
• An OEE score of 60% is fairly typical for discrete manufacturers.
• An OEE score of 40% is not uncommon for manufacturers without TPM and/or lean
programs. OEE consists of three underlying components, each of which maps to one
of the TPM goals set out at the beginning of this topic, and each of which takes into
account a different type of productivity loss

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OEE

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OEE Calculation

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 Availability
• Availability takes into account all events that stop planned production long enough
where it makes sense to track a reason for being down (typically several minutes).
• Availability is calculated as the ratio of Run Time to Planned Production Time:
– Availability = Run Time / Planned Production Time

• Run Time is simply Planned Production Time less Stop Time, where Stop Time is
defined as all time where the manufacturing process was intended to be running but
was not due to Unplanned Stops (e.g., Breakdowns) or Planned
Stops (e.g., Changeovers).
– Run Time = Planned Production Time − Stop Time

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 Performance
• Performance takes into account anything that causes the manufacturing process to
run at less than the maximum possible speed when it is running (including
both Slow Cycles and Small Stops).
• Performance is the ratio of Net Run Time to Run Time. It is calculated as:
– Performance = (Ideal Cycle Time × Total Count) / Run Time
• Ideal Cycle Time is the fastest cycle time that your process can achieve in optimal
circumstances. Therefore, when it is multiplied by Total Count the result is Net Run
Time (the fastest possible time to manufacture the parts).
• Since rate is the reciprocal of time, Performance can also be calculated as:
– Performance = (Total Count / Run Time) / Ideal Run Rate
• Performance should never be greater than 100%. If it is, that usually indicates that
Ideal Cycle Time is set incorrectly (it is too high).

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 Quality
• Quality takes into account manufactured parts that do not meet quality
standards, including parts that need rework. Remember, OEE Quality is
similar to First Pass Yield, in that it defines Good Parts as parts that
successfully pass through the manufacturing process the first time
without needing any rework.
• Quality is calculated as:
– Quality = Good Count / Total Count
• This is the same as taking the ratio of Fully Productive Time (only Good
Parts manufactured as fast as possible with no Stop Time) to Net Run
Time (all parts manufactured as fast as possible with no stop time).

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 OEE
• OEE takes into account all losses, resulting in a measure of
truly productive manufacturing time. It is calculated as:
• OEE = Availability × Performance × Quality

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Thank You

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