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Vijay Kapoor ± Principal Consultant Naresh K Chawla - Sr. Consultant
© PTU's Gian Jyoti School of TQM & Entrepreneurship
History & Evolution
1850 American Civil War
Eli Whitney (Interchangeable parts) Drawing conventions, Tolerances Modern machine tool development
Fredrick Taylor (Standardized work, time study & work standards) 1900 Frank Gilbreth (Process charts, motion study) World War I Henry Ford (Assembly lines, flow lines, manufacturing strategy)
World War II 1950
Deming & Juran (SPC, TQM) Eiji Toyoda, Taiichi Ohno, Shigeo Shingo Toyota production system, JIT Stockless production, World class manufacture
© PTU's Gian Jyoti School of TQM & Entrepreneurship
Govt. Policies Global Competition Accountability to shareholders & financers Rising Cost of Input (Raw material, Energy) Competency of employees
Above all SUSTAINABLE Improvement
© PTU's Gian Jyoti School of TQM & Entrepreneurship 3
Survival Kit Create precise customer value ± goods and services with higher quality and fewer defects with less human effort. Remove µwaste¶ ± Consume µjust enough¶ recourses ± Do more with less © PTU's Gian Jyoti School of TQM & Entrepreneurship 4 . less space. and less time than the traditional system of mass production. less capital.
resource and/or space but do not add value.Production of product to meet demand on daily basis with minimum lead time & non value added activities eliminated or minimized © PTU's Gian Jyoti School of TQM & Entrepreneurship 5 .activities that consume time.Defining Value and Waste Defining value . Lean .an item or feature for which a customer willing to pay. Every thing else ± waste Waste .
Focus on Waste © PTU's Gian Jyoti School of TQM & Entrepreneurship 6 .
Customer sees & willing to pay .Transforms product in some way .Will the customer know if eliminated © PTU's Gian Jyoti School of TQM & Entrepreneurship 7 .Value Added Activity Test for value added activities .
© PTU's Gian Jyoti School of TQM & Entrepreneurship 8 . parts or machines within a process. 5 1 4 7 3 2 6 An 8th waste is the wasted potential of people To produce sooner. Seek it out and get rid! Overproduction Over Processing Processing beyond the standard required by the customer. Unnecessary movement of people.faster or in greater quantities than customer demand.Seven Wastes MUDA is the Japanese word for WASTE. Rework Non right first time. 1 7 2 Inventory Raw material. Transportation Motion Unnecessary movement of people or parts between processes. Repetition or correction of a process. 6 Waiting 3 5 4 People or parts that wait for a work cycle to be completed. work in progress or finished goods which is not having value added to it.
Speed time to market 5.Eliminating Waste 7 steps 1. Cut operations costs 3. Manage global operations © PTU's Gian Jyoti School of TQM & Entrepreneurship 9 . Reduce lead time 2. Streamline outsourcing processes 7. Improve business performance visibility 4. Exceed customer expectations 6.
Lean is truly a different way of thinking about manufacturing.Lean manufacturing is a systems approach ³Lean manufacturing is not a collection of best practices from which manufacturers can pick and choose. a way of conceptualizing the manufacturing process from raw material to finished goods and from design concept to customer satisfaction. © PTU's Gian Jyoti School of TQM & Entrepreneurship 10 . Charles Standard. It is a production philosophy.Running Today¶s Factory: A Proven Strategy for Lean Manufacturing.´ .
Comparison of lead time Business as Usual Customer Order Waste Time Product Shipment Lean Manufacturing Customer Order Waste Product Shipment Time (Shorter) © PTU's Gian Jyoti School of TQM & Entrepreneurship 11 .
proud of product Excellent quality Reduced costs Ability to meet global market & competition © PTU's Gian Jyoti School of TQM & Entrepreneurship 12 .Main Features of Lean Manufacturing Greater Product Variety Fast Response (Flexibility) Stable Production Schedules Supply Chain Integration Demand Management Broader jobs. highly skilled workers.
Typical benefits of waste elimination initiative © PTU's Gian Jyoti School of TQM & Entrepreneurship 13 .
Lean Tools & Supporting Strategies © PTU's Gian Jyoti School of TQM & Entrepreneurship 14 .Lean Thinking.
Lean Tools to Lean Management Lean thinking ³The basics of Lean Thinking is µthe customer first´ How do we do that? ³By creating thinking people´ And how do we do that? ³By creating workplaces that are more human and encourage people to think´ © PTU's Gian Jyoti School of TQM & Entrepreneurship 15 .
Lean Thinking Principle #1 ««µDefine Value¶ ??? Quality Flexibility Service Variety ----VALUE---Variability ResponseTime Cost The critical starting point for Lean Thinking is value as defined by the ultimate customer. © PTU's Gian Jyoti School of TQM & Entrepreneurship 16 .
Lean Thinking Principle #2 ««µIdentify the Value Stream¶ All the actions required to bring a specific product or service through the three critical transformation processes: Idea transformation: concept to market launch Information transformation: order-take through scheduling to delivery Physical transformation: raw materials to final customer Inventory Waiting Setup Transportation Waiting Inspect Value-add time (Hours) Typical value-add to lead-time ratio ~ 1% Waste Value-add activity © PTU's Gian Jyoti School of TQM & Entrepreneurship 17 .
waiting.«. not what your competitors are doing! © PTU's Gian Jyoti School of TQM & Entrepreneurship 18 .4. inventory. #5: Strive to seek perfection The real benchmark is zero waste. transportation.g.5 #3: Make the work flow Every time the flow of work stops we consume resources that adds costs but generates no value #4: Respond only when the customer pulls work Overproduction is the worst form of waste as it generate all other waste types e..Lean Thinking Principles #3.
Lean Tools & Supporting Strategies 5S Visual control Team building Problem solving Standardised processes Value stream mapping © PTU's Gian Jyoti School of TQM & Entrepreneurship 19 .
Lean Tools & Supporting Strategies Pull system Kanban Takt time ± rate of customer demand Manufacturing Cells Heijunka 5Ws & 1H © PTU's Gian Jyoti School of TQM & Entrepreneurship 20 .
Lean Tools & Supporting Strategies Kaizen Total Productive Maintenance SMED (setup reduction) Poka-Yoke or mistake-proofing Cycle time reduction Andon ± signalling system to stop line © PTU's Gian Jyoti School of TQM & Entrepreneurship 21 .
and keeping it organized.Develop control through visibility 6.Raise employee morale 4.Identify problems more quickly 5. Benefits 1.Improve safety 2.Decrease down time 3.Establish convenient work practices © PTU's Gian Jyoti School of TQM & Entrepreneurship 22 .5S A method for organizing a workplace.
© PTU's Gian Jyoti School of TQM & Entrepreneurship 23 .
Visual Control Any communication device used in the work environment that tells us at a glance how work should be done and whether it is deviating from the standard Benefits 1. Improve quality 3. Boosts bottom-line profits © PTU's Gian Jyoti School of TQM & Entrepreneurship 24 . Reduce inventory 5. Increase equipment reliability 6. On-time delivery 4. Increase productivity 2.
Many other types of information critical to the flow of work activities. © PTU's Gian Jyoti School of TQM & Entrepreneurship 25 .Visual controls show Where items belong? How many items belong there? What is the standard procedure for doing something? Status of work in process.
Visual management Visual management maintains an orderly work environment. If order is not continually stressed. Colour-coding is often used to remind employees of where items belong. disorder will result and create an unfriendly work atmosphere. Employees have quicker and safer access to items that are needed. © PTU's Gian Jyoti School of TQM & Entrepreneurship 26 .
4. 6. Finds the barriers that thwart creativity Clearly defines objectives and goals Improves processes and procedures Improves organizational productivity Identifies a team¶s strengths and weaknesses· Improves the ability to problem solve Team Building © PTU's Gian Jyoti School of TQM & Entrepreneurship 27 . 5. An active process by which a group of individuals with a common purpose are focused and aligned to achieve a specific task or set of outcomes 3. Benefits Improves morale and leadership skills.Team Building Lean Tool Introduction 1. 7. 2.
Problem Analysis problems 3. Selecting the best Solution(s) 6. Generating possible Solutions 4. These are: 1. Problem Definition 1. Sustaining the gains © PTU's Gian Jyoti School of TQM & Entrepreneurship 28 . Leads to identify root cause(s) of chronicle 2. Analyzing the Solutions 5.Problem Solving Lean Tool Introduction Benefits Problem Solving The Problem Solving is a systematic approach with a sequence of sections that fit together depending on the type of problem to be solved.
Value stream Mapping A tool for guiding 2. Easier international transfer of marketing skills 5. Identifies waste in each step of improvements by the production process. 29 © PTU's Gian Jyoti School of TQM & Entrepreneurship . Effective information sharing 4. Cost reduction and increase in efficiency 3. Enable Visualizing the production process Standardized Process Standardization is the process of developing and agreeing upon technical standards. Provides a plan for implementing improvements to isolated processes the production process to reduce costs. Simplifying the coordination and control between subsidiaries and business functions 1. identifying waste & 3.Standardized Process & Value stream Mapping Lean Tool Introduction Benefits 1. Better decision making 2.
Minimize work in process the flow of resources 3. © PTU's Gian Jyoti School of TQM & Entrepreneurship 30 . Simplify production signals has been consumed and improve on-time delivery to customers.Pull system Lean Tool Introduction Benefits 1. Reduce lead times Pull system A method of controlling 2. optimize floor space usage by replacing only what 4.
when they need it 6. Reduces waste and scrap 2. Increases Output 4. Reduce Inventory Costs © PTU's Gian Jyoti School of TQM & Entrepreneurship 31 Kanban . parts and supplies. Minimizing Wait Times and that workers have what Logistics Costs they need. Provides flexibility in production 3. Reduce Preventing Over A system of continuous Production supply of components. where they need it. Save Resources by Streamlining Production 8. Reduce Stock Levels and Overhead Costs 7. such 5.Kanban Lean Tool Introduction Benefits 1.
Schedule Variety 32 . System synchronization with customer requirement 4. No rush hours in work 7. Enable pull scheduling 5. Process Simplification 4. Smooth production planning & reduced interruptions in operations 3. Flexible Operation 2. No over production 6. Setup Time Reduction 3. WIP reduced Comprises a group of equipment. that is Manufacturing dedicated to the Cells complete production of a family of similar parts © PTU's Gian Jyoti School of TQM & Entrepreneurship Takt time ± rate of customer demand The rate that a completed product needs to be finished in order to meet customer demand 1.Takt time ± Rate of customer demand & Manufacturing Cells Lean Tool Introduction Benefits 1. Gives the rhythm at which system should operate 2.
Identify root cause It is a method of questioning that leads to the identification of the root cause(s) of a problem 2. Reduction of stress levels in the production area 1. Develop a logical approach to problem solving. 3. using data that already exists in most operations. Stability of manpower the leveling of production by both volume and product mix 2. Identify current and future needs for organizational improvement.Heijunka & 5Ws & 1 H Lean Tool Introduction Benefits 1. Reduction in inventory levels 4. Reduction of unnecessary overtime 3. 33 Heijunka 5Ws & 1 H © PTU's Gian Jyoti School of TQM & Entrepreneurship .
The goal is to keep equipment producing only good product. Reduce breakdown leading to Zero breakdown concept 3. as fast as possible with no unplanned downtime. Employee retention A maintenance philosophy designed to integrate equipment maintenance into the manufacturing process. Better Use of capital 4. Improve Productivity 2. Increased Space utilization 2. Production capacity 6. Increased product quality Kaizen Continuous Improvement 3. 1. Improve quality of products 34 Total Productive Maintenance © PTU's Gian Jyoti School of TQM & Entrepreneurship .Kaizen & Total Productive Maintenance Lean Tool Introduction Benefits 1. Better safety 5. Communications 5. Leads to multi-skilling of workers 4.
Reduce breakdown leaving out a part. Improve Productivity installing a part backwards. Increased profitability without new capital equipment purchase A techniques that help operators avoid mistakes 1. WIP and lot size reduction The practice of reducing the time it takes to change a line or machine 3. etc. 2. Improved equipment utilization/yield from running one product to the next 4. 35 2. Finished goods inventory reduction SMED (Set up reduction) Poka-yoke or mistake proofing © PTU's Gian Jyoti School of TQM & Entrepreneurship . Better safety in their work caused by choosing the wrong part. 3.SMED (Set up reduction) & Pokayoke or mistake proofing Lean Tool Introduction Benefits 1.
and inspection time © PTU's Gian Jyoti School of TQM & Entrepreneurship 36 . Streamlined processes 4. Reduced costs 2. move time. Increased throughput 3.Cycle Time reduction Lean Tool Introduction Benefits 1. It includes processing time. Improved on-time delivery Cycle Time reduction Reduction of total time taken from start of the production or service to its completion. Reduced process variability 6. Schedule integrity 7. wait time. Improved communications 5.
Improve accountability of operators by increasing their assembly line is usually responsibility for ³good´ stopped until the problem production and empowering is diagnosed and corrected. Provide a simple and consistent mechanism for communicating information on the plant floor. them to take action when problems occur. Andon ± Signaling system to stop line A Japanese term refers to 3. © PTU's Gian Jyoti School of TQM & Entrepreneurship 37 . and assembly line that light up safety problems. Improve the ability of supervisors to quickly identify and resolve manufacturing issues. 2. Encourage immediate reaction the warning lights on an to quality. When the lights go on. Bring immediate attention to problems as they occur in the manufacturing process. 5.Andon±Signaling system to stop line Lean Tool Introduction Benefits 1. down time. the 4. when a defect occurs.
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