LEAN MANUFACTURING

INTRODUCTION & VALUE STREAM MAPPING

LEAN MANUFACTURING

INTRODUCTION PART 1
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THE ROLE OF MANAGEMENT Relentless pursue of rapid Growth and Improvements. Introduce best practices to excel and be ahead of competition. Continually upgrade the skills of employees across all levels and create a harmonious and healthy environment for Total Employee Involvement in all initiatives of the organization. When TEI is achieved multifold improvements and tapping of hidden potential and creativity of employees takes place in the organization.
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LIFE CYCLE- COMPANY

At which stage we get into complacency and become Fat ?

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IF AN EGG IS BROKEN BY AN OUTSIDE FORCE..A LIFE ENDS. IF AN EGG BREAKS FROM WITHIN...... LIFE BEGINS. ITS BETTER TO LOSE OUR EGO FOR THE COMPANY YOU LOVE. THAN TO LOSE EVERYTHING ONE LOVES....... BECAUSE OF EGO.

THIS IS ATTITUDE
IN THE FIRST CASE IT IS DESTRUCTIVE APPROACH. IT CAUSED DEATH OF A LIFE.THIS HAS COME FROM EXTERNAL FORCE ! IN THE SECOND CASE IT IS CONSTRUCTIVE APPROACH. THIS HAS COME FROM WITHIN ! WHERE DO WE HAVE CONTROL WITHIN OR EXTERNAL ? OBVIOUSLY THE CONTROL CAN EASILY COME FROM WITHIN. WHERE AS ON EXTERNAL ENVIRONMENT IT IS DIFFICULT TO PREDICT MANY TIMES. ANY THING CAN HAPPEN LIKE WHAT IS GOING ON IN JAPAN OR IN MIDDLE EAST COUNTRIES. HOW MANY COMPANIES ARE SURVIVING AND GROWING ? HOW MANY COMPANIES HAVE GONE INTO THE HISTORY ? HENCE,WE NEED TO HAVE CONTROL INSIDE THE COMPANY AND DO OUR BEST AT EVERY LEVEL OF THE ORGANIZATION.

Manufacturing Business

Sales

Quality

Manufacturing Operation
Design Human Resource

Basic Understanding of Manufacturing

 Manufacturing operation as the core activity  All other operations around the core activity

 If manufacturing operation is efficient, all other operations can be efficient depending on the efforts.  If not, all other operations cannot be efficient irrespective of the efforts.
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Market Conditions - Before

Price = Cost + Profit
Price is decided by the supplier.Suppliers were in sellers market. Manufacturing cost added to profit to determine selling price. Customer had no choices in terms of Quality, cost, Delivery or innovation

Market Conditions - Now

Profit = Price - Cost

We are in buyers market. Competition is very intense. Price is decided by the market. We can not increase prices to maintain profit. The challenge is, to reduce manufacturing cost.

LEAN MANUFACTURING IS THE MOST EFFECTIVE WAY TO REDUCE MANUFACTURING COST.

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What is Lean ?
o Balanced use of people, equipment and material that gives us the lowest manufacturing cost o Lowest manufacturing cost assumes all WASTE is eliminated o Supply of materials as per the customer requirement as and when required with specified quality and quantity.

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LEAN OBJECTIVES
Objectives of LEAN implementation:  Output improvement  Efficiency improvement  Quality improvement  Space reduction  Many more. Reduction of cycle time and work load balancing.

Finally, to make operations easy, safe and consistent.

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What is Lean Manufacturing ?

Lean Manufacturing is nothing but TPS (Toyota Production System) Why TPS It is faster Better Cheaper - In Manufacturing - New Product Introduction - Information flow
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Fundamentals of Lean
Workers, Supervisors, and managers work together to create continuous flow Engaging the work force Eliminating waste Reducing resources Reducing fluctuations Improving safety and ergonomics Striving for perfection Management owns the process Employees are responsible for continual improvement
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DEFINITION OF LEAN
The term lean is used because lean manufacturing uses less
Labor

in factory Manufacturing space Capital investment Materials Time between the customer order and the product shipment

Term lean coined by John Krafcik, one of the research on Jim Womacks MIT team for the 5 years Study

DEFINITION OF LEAN
Half the hours of human effort in the factory Half the defects in the finished product One-third the hours of engineering effort Half the factory space for the same output A tenth or less of in-process inventories

Source: The machine that Changed the World Womack, Jones, Roos 1990

LEAN MANUFACTURING
The purpose of Lean Manufacturing is to make a company / Corporation strong and fast.

Strong = Sustained High performance Fast = Easily adapts to fluctuations in market conditions and perform with high Quality , high Speed & Delivery.

PRODUCTIVITY

Peter F. Drucker Productivity is the balance between all factors that Humans impact on output, so as to achieve the greatest return for the least effort.

PRODUCTIVITY
HUMAN INPUT MATERIAL INPUT - HUMAN PRODUCTIVITY - MATERIAL EFFICIENCY, REJECTION / RE-WORK / CONSUMABLE COST. EQUIPMENT CAPACITY UTILIZATION CAPABLE PLANT & EQUIPMENT POWER/ FUEL / GAS

CAPITAL INPUT

ENERGY INPUT COST

PRODUCTIVITY

ORGANIZATIONAL PRODUCTIVITY IS SUM OF [ H M C E ]

IF THIS MIND SET IS ADOPTED BY MANAGEMENTS, THE ISSUE OF LABOUR PRODUCTIVITY AND OTHER REQUIREMENTS CAN BE ADDRESSED. AS WE ARE ADDRESSING ALL ELEMENTS OF PRODUCTIVITY THROUGH LEAN TRANSFORMATION,IT WILL CREATE A POSITIVE ATTITUDE ON EMPLOYEES AND THE ATMOSPHERE BECOMES CONDUSIVE,HARMONIOUS & SATISFYING.

PRODUCTIVITY
If you can't describe what you are doing as a process, you don't know what you're doing.

- Dr Edward Deming, world's top Quality / Process Guru - We need to focus more on processes which is a requirement in Lean.

MANUFACTURING CHALLENGE
All

organizations have processes which produce and deliver products or services to satisfy customer needs, desires and expectations. The success of every organization depends on its ability to attract and retain customers.

WHO WANTS WHAT.

CASH !!

VALUE !!
CUSTOMER
Low cost High Quality Availability

YOUR COMPANY
Profit Repeat Business Growth

MANUFACTURING CHALLENGE
The challenge is to make what the customer wants, when the customer wants it, at a price the customer is willing to pay.
CUSTOMER EXPECTATION  Much better quality  More customized variants  Just-in-time delivery  And freedom to order in small quantities .At lower & Lower Prices

TOYOTA PRODUCTION SYSTEM

During the 1970s, Japanese were redefining the manufacturing paradigms. They began to incorporate quality into their cost focused strategy. Use of TIME as a new competitive dimension emerged. Toyota Production System was born.

MANUFACTURING CHALLENGE
Lean manufacturing Toyota 1950s Cells or flexible assembly lines Broader jobs, highly skilled workers, proud of product Low lead time Excellent quality mandatory Costs being decreased through process improvement. Global markets and competition

LEAN MANUFACTURING

During 1980s Americans realized that the things are not the same anymore. Japanese were not only making better cars, they were also doing it cheaply. Toyota was making cars in America at 25% less cost. Severely denting American market share.

LEAN MANUFACTURING
Lean Manufacturing philosophy is an outcome of a ground breaking study of Japanese manufacturing systems especially Toyota Production Systems, by a team of researchers in USA, led by James Womack & Daniel Jones. Their books detailing how Toyota has emerged, as the worlds most efficient automaker popularized Lean Manufacturing as a new manufacturing philosophy. The first book was published in 1990 as The Machine That Changed The World

IN ORDER TO SURVIVE.
We have to make our organizations lean by understanding the lean philosophy and promoting Lean thinking through out the organization and Corporations. Where people work Lean Thinking is a must.

TAIICHI OHNO
All we are doing is looking at the time line from the moment the customer gives us an order to the point when we collect the cash.
FOUNDER OF TOYOTA PRODUCTION SYSTEM

Source : LEAP TO LEAN by Taiichi Ohno

PROCESS
A process is any activity or set of activities that uses resources to transform inputs into outputs. Transformation of inputs into outputs incorporates five elements : 1. Inputs and Outputs 2. Flow Units 3. A network of activities and buffers 4. Resources 5. Information structure (controls & feedback)

INPUTS AND OUTPUTS

Inputs flow through the process to exist as outputs. e.g. raw material flow through the manufacturing process and exists as finished product.

LEAN MANUFACTURING
We know that there is a direct link between flow and cost Elimination of waste = improved Flow Improved Flow Decreased Cost = Decreased Cost = New Business Sustainable Profits

UNDERSTANDING MUDA, MURA AND MURI

MUDA: Muda means WASTE.

Waste refers to any activity that does not add value. Waste only adds to time and cost.

WASTE

Elements of production that add time, effort, cost, but

no value
Things to Remember about Waste: Waste is really a symptom rather than a root cause of the problem Waste points to problems within the system (At both process & value stream levels)

TYPES OF ACTIVITIES

All activities fall into one of these three categories:

Added Type 1 MUDA adds no value but necessary (Toyota calls this Non-value added work) Type II MUDA adds no value and avoidable. Most of our activities fall into which category ?
Value

MUDA
Waste of Overproduction Waste of Inventory Waste of Repair / Rejects Waste of Motion Waste Processing Waste of Waiting Waste of Transport Waste of Underutilization of People

WASTE OF OVER PRODUCTION

Production More or Sooner or Faster than needed. This creates unnecessary inventory. Can lead to problems if Quality is affected. Slow down of out put takes place .

WASTE OF INVENTORY

Any Supply in excess of one piece flow Excess inventory is a killer of the Organization Space and money is blocked Physical decay can take place if not used. There could be hidden Quality problems.

WASTE OF REPAIR / REJECT

Inspection or repair of a product or service to fulfill customer requirements

WASTE OF MOTION
Any movement that does not add value

WASTE OF PROCESSING
Effort which adds no additional customer value to a part WASTE OF WAITING Being idle between operations

MURA
Mura means IRREGULARITY Whenever a smooth flow of work is interrupted in an operators work, the flow of parts and machines, or the production schedule, there is MURA

MURA
Mura means IRREGULARITY It can occur in :
Production Parts

flow Equipment usage Work done by team members Information Flow Material deliveries, causing shortage or overstock

MURA
Benefits of eliminating Mura :
Shorter Lead times Lower WIP Faster response time Lower cost Greater Production Flexibility Higher quality Better customer service Higher revenue Higher throughput Increased profit !

MURA
Overburden !!

Wait Time Cycle Time 245 Cycle Time 520

Balanced

Cycle Time 425

MURI
Muri means strenuous conditions for both workers and machines as well as for the work process. When machines are overburdened

We run the risk of causing safety hazards, equipment breakdowns and manufacturing defects. When team members are overburdened: The safety of the team members can be endangered Workers are more likely to become exhausted or fatigued It becomes difficult for team members to do each job with attention to detail. This increases the frequency of defects, which in turn adversely affects the quality.

MURI
Muri means STRENUOUS WORK
A

profusely sweating operator Squeaking sound from the machine A newly hired worker assigned to do the job of a veteran without adequate training

LEAN THINKING
The five components :
1.

2.

3. 4. 5.

Specify value from the end customers perspective. Identify the Value Stream for each product family and remove waste. Make the Product Flow through the Value Stream So that customer can Pull from the producer. Constantly pursue Perfection.

VALUE

Specify value from the end customers perspective; Define Customer : clearly understand who the customer is. Define Value : Quality, schedule, target cost etc. Ask how your current products and processes dissatisfy your customers value expectations,
Price ? Quality ? Reliability ? Rapid response to changes ? ??

VALUE STREAM
Lean Manufacturing is an end-to-end collection of processes that create value for the customer The value stream includes

People Tools

and Technologies Physical facilities Communication channels Policies and Procedures

VALUE STREAM

Identify all of the steps currently required to move products from order to delivery :
every step : why is this necessary ? What does the customer think ? Critically assess value addition at each step. Eliminate / Minimize non-value-added activities.
Challenge

Use Value Stream Mapping Tool

FLOW
Line-up all the steps to create value so they occur in rapid sequence;
each product, everyday, in direct proportion to demand. Require that each step in the process be, Capable - right every time (SIX SIGMA) Available - always able to run (TPM) Adequate - with capacity to avoid bottleneck. (right size tooling)
Produce

FLOW
Flow refers to the movement of material through the plant. The material should not be stagnant at any point in time from the receiving of raw material to the shipping of finished products.

PULL
Customer should Pull value through the Value Stream;
Through lead time reduction & correct value specification, let customers get exactly what they want & exactly when they want.

PULL SYSTEM
A method of controlling the flow resources by replacing what has been consumed.

PUSH VS PULL SYSTEM

Push System

Pull System

Large Lots Hidden Problems Waste Poor Communication Approximation/Forecast

Make All We Can ,Just In Case We Need It !

Small Lots Visual Shop Floor Management Minimal Waste Good Communication Actual/Real Time Information
Make What The Customer Needs ,When Needed ,In The Quality Needed !
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PERFECTION
Continuously Pursue Perfection; Create a clear vision.
ideal state. Customer value
Production

Make waste visible & evident. Problem solving through application of various tools.

LEAN BENEFITS

A comprehensive & patient implementation of lean leads to : Substantial reduction in

  

Inventories Capital employed Cost of quality Quality Productivity On-time delivery Increased market share Revenue Growth Increased Margins Improved Return on Investment

Significant improvement in

Over time leading to

TOOLS AND METHODS

Value stream mapping Quality at the source Workplace organization: 5 S TPM Visual management Set-up reduction (SMED) Batch size reduction (one-piece-flow) Cellular manufacturing Standardized work Work balancing (TAKT-time) production leveling/ smoothing Point-of-use systems Kanban Kaizen

LEAN MANUFACTURING STRUCTURE

Best Quality Lowest Cost Shortest Lead Time Through shortening the Production Flow by Eliminating Waste Just in Time The right part at the right time in the right amount Continuous Flow Pull System Level Production (Haijunka) Jidoka Built in Quality Manual / Automatic Line Stop Labor Machine Efficiency Error Proofing Visual Control Robust Products & Processes Supplier Involvement

Flexible, Capable, Highly Motivated People

Operational Stability Standardized Work Total Productive Maintenance

LEAN PREREQUISITES
To achieve Lean Manufacturing goal of Synchronized material flow, an excellent production environment is necessary. Many times the excellence is stated in the terms of absolute ideals; or zeros. For Example, Robert Hall the originator of terms such-as stockless production and zero inventories, however did not mean that organizations should operate without inventories. Rather, he wrote Zero Inventories connotes a level of perfection not ever attainable in a production process. However, the concept of a high level of excellence is important because it stimulates a quest for constant improvement through imaginative attention to both the overall task and to the minute details.

VALUE STREAM MAPPING

A method to describe the flow of material and information through the production system. A method for seeing where value is added and value is lost by graphically portraying process(es). The ratio of value added to total lead time is determined by documenting the current lead time, inventory levels and cycle times. The visual representation provides a view of where costs can be reduced and improvements can be made. A future state can be designed where wasted steps are left out, and continuous flow and pull production are introduced.

LEAN LEAP
HOW TO START Find a change Agent Get the knowledge Create a sense of urgency & Need. These are first three steps in Lean journey. Provide highest level of support for the Lean transformation. Make everyone actively participate.

LEAN LEAP
Create sense of urgency & Need Communicate a sense of urgency. Deal with concrete heads appropriately Identify and eliminate big chunks of waste communicate your plans.

LEAN LEAP Go to the next steps Map value streams. Eliminate constraints. Demand immediate results. Expand the scope The final four steps of Lean Journey.

LEARNING TO SEE
WHEREVER THERE IS A PRODUCT BEING MADE FOR A CUSTOMER, THERE IS A VALUE STREAM WITH LOT OF WASTE. THE CHALLENGE LIES IN SEEING IT

DONT LOOK !

LEARN TO SEE

TO DIFFERENTIATE VALUE FROM WASTE !!

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THANK YOU & WE NOW MOVE ON TO VALUE STREAM MAPPING

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