What Is Lean

• FAT MUSCELS

Elimination of waste

Is becoming Lean really required in organization ?

5 components of lean thinking Benefits of Lean

Value

ORGANIZATION
More Price Supplier

Perfectio Value
n stream
More engagement Employee

More profit Stakeholder

Pull Flow
What customer wants Why lean is a Profit to organization

Key to Profitability

Price Reduction Key to profitability is Cost Optimization

Old Equation : Cost + Profit = Price

New Equation : Price – Cost = Profit

profit

 On Time Delivery Cost vs Profit

Today it is 100% ---------------------- Price
market driven 80%
 Better Quality price or
decided by
60%
40%
customer 20%
0%
 Low Production Cost Category Category
1 2
Cost
Series 1 Series 2
 Lean Cost Model
•
Price - Cost = Profit

Then how can one increase ‘V” or value :

Performance (P)
Value (V) =
Here are four ways :

C P
Cost (C)
The whole
Value adding
story lies on
Value is
something for these four
which approach
customer is
willing to pay
The best way to improve is to lower the cost and increase the profit
 Lean Method Model
In order to increase output
Traditional Model Lean Model

 Increase the workforce  Eliminate waste

 Increase the working hours  Focus on efficient use of Equipment and

people
 Add machines
 Standard method of working
 Overview of Lean tools
•.
What is it 5S
Scientific way of workplace management

SN Japanese English
1S Seiri Sorting
2S Seiton Set in order
3S Seiso Shine
4S Sieketsu Standardise
5S Shitsuke Sustain

5 areas where 5S plays critical role

Quality Cost Delivery Safety Motivation
 Kaizen
• KAIZEN

Elimination of waste from the system

KAI ZEN

Make IT better
(Continuous Improvement)

Kaizen is a small incremental

changes made for improving
productivity and minimizing
waste

Kaizen plays vital role in improving benefits of all aspects in organization and manage TIMWOOD
 3M
 Reduction in waste
generation
MUDA Waste or failure of process and people to
 Reduction in inconsistence
process
efficiently deliver product  Reduction in stress / strain
on equipment /people

Overburden or failure of

MURA MURI standardization to create

efficient process

Unevenness or failures due

to inconsistence and
unpredictable output
 Value Stream Mapping
A Tool used to visually map the flow of production , shows the current and future state of process in a way that highlights opportunities
for improvement

 Gives the opportunity to understand what

happens today
 Helps discussing that needs improvements
 Enables to see the big picture from
beginning to end
 Enables to see where problems lie within
process
 Non value added activities
 Delays
 Rework
 Bottlenecks
 Excessive inventory levels
 Other form of waste
 Helps furnishing a future state version
 Jut in Time
•.
 Highly Effective in reducing inventory level
 Improve cash flow
 Reduce space requirements

ORDER PROCUREMENT DESIGN MANUFACTURE DELIVERY

Timeline

Many Lean implementation only focus on manufacturing and neglect the reminder of Timeline

ORDER PROCUREMENT DESIGN MANUFACTURE DELIVERY

Timeline

Seek to reduce the whole timeline – not just manufacturing

ORDER PROCUREMENT DESIGN MANUFACTURE DELIVERY

Timeline

Track online status of
production
Current Status (Baseline)
Downtime reasons
Deviations from target
Live OEE index
Success of implemented actions
OEE
Improve KPIs sustainability
Stabilize production process
Maximize capacity of identified
bottlenecks
Execute process improvement
action
Share knowledge
OEE
Analyse OEE trends and root
cause
Determine major reasons for
losses
Identify addressable
opportunities and bottle necks
Levels
Production suite
Plan your next improvement
steps The world class OEE structure
Determine process bottlenecks
Prioritize capacity improvement
in bottlenecks
Define measures and
procedures
Create action plans
 SANOFI MANUFACTURING SYSTEM
Management
Obeya +QCDI : Its control tower room , for site performance management ,
Performance

team engagement connect, long term strategies and plan with daily
achievements
+QDCI

Problem Solving Problem solving : Implementing Gemba problem solving aims

at identifying and eradicating the problem root causes to avoid recurrent
problem
Daily Capacity Management
Manage Obeya : Rituals for daily/weekly /monthly performance review.
Resource Focusing on quick problem solving
Skill Matrix
Daily capacity Management : Visual management system
to optimize method, proper allocation applicable to employees
Value stream
equipment based on Std. operating time.
Manage
Flow
Standard agenda Skill Matrix : Managing performance of the employees based on
their competency and collectively engagement towards work.

Value Stream : Visual management for every working process

Manage
Resource Process confirmation steps for elimination of waste for better prioritization.

Process confirmation: Audits on the floor for rigorous

execution of the standard.
• +QDCI :
Improvement proposal on +QDCI board

 Need attendance system containing participate name in every +QDCI board and tracking the attendance
everyday.

 Adherence of KPIs of +QDCI board has to be measured periodically with metric and Progress share with
team.

 Action point generating from +QDCI shall be strengthen and root cause of every action point shall be
done through problem solving method/approach.

 Scoring system of +QDCI board across departments has to be implemented in place to evaluate the
effectiveness and best scoring team shall be awarded monthly.

 Each department has to identify one problem / abnormality from their work area and solve the problem
with lean tool and cascading mechanism