Lean Manufacturing - Group Presentation

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    Lean ManufacturingAn Overview

    1

    Roll # 2 Arun Kumar

    Roll # 8 Kamiya Gulati

    Roll # 20 Shreerajavel Rengaraj

    Roll # 14 Mayank Mathur

    POIM PresentationsGuide : Prof. T.P.S Bawa

    X-MBA 24ITM Vashi

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    The Flow o Introduction

    o Value discussion

    o What is Lean Manufacturing

    o History of Lean

    o Principles of Lean

    o Terms used in Lean Manufacturing

    o Tools of Lean Manufacturing

    o Benefits of Lean Manufacturing

    o Conclusion

    o Acknowledgement & References

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    Who wants what...

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    CustomerLow Cost

    High Quality

    Availability

    Company

    Profit

    Repeat Business

    Growth

    Value !!

    Cash !!

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    Value ...

    The Manufacturing or business process is a Value Stream i.e. mailmandelivering mail is a part a value stream.

    Any process that delivers value to the customer is a value stream

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    The thought process of lean was thoroughly described in the

    book The Machine That Changed the World(1990) by James P.Womack, Daniel Roos, and Daniel T. Jones.

    In a subsequent volume, Lean Thinking(1996), James P.

    Womack and Daniel T. Jones distilled these lean principles even

    further to five:

    1. Specify the value desired by the customer2. Identify the value stream for each product providing that

    value and challenge all of the wasted steps (generally nine

    out of ten) currently necessary to provide it

    3. Make the product flow continuously through the remaining

    value-added steps4. Introduce pull between all steps where continuous flow is

    possible

    5. Manage toward perfection so that the number of steps and

    the amount of time and information needed to serve the

    customer continually falls 8

    http://www.lean.org/Bookstore/ProductDetails.cfm?SelectedProductID=160http://www.lean.org/Bookstore/ProductDetails.cfm?SelectedProductID=88http://www.lean.org/Bookstore/ProductDetails.cfm?SelectedProductID=88http://www.lean.org/Bookstore/ProductDetails.cfm?SelectedProductID=160
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    Lean ManufacturingA manufacturing philosophy which shortens the time line between

    the customer order and the product shipment by eliminating waste.

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    Business as Usual

    Lean Manufacturing

    Time (Shorter)

    Customer

    OrderProduct

    Shipment

    Waste

    Customer

    Order

    Waste

    Time

    Product

    Shipment

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    Lean Manufacturing

    Deliberately simple way of thinking about customer value and how

    operations can build that value in the most efficient way possible

    o Asks to think of manufacturing operations as a value stream that

    flows products to customers

    o Some of activities add value , others just add waste.

    o Value is anything customer will pay foro Waste is anything that adds costs customer would not pay for

    o This could be over production of finished goods / working process

    excess transport and handle of scrap & rework or wasted time while

    people and goods wait for things to happen

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    As one works to drive out all waste and flow product more quickly

    through the value stream the operation becomes less costly and more

    responsive to customer demand

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    Lean Manufacturing

    Business philosophies invoked by lean manufacturing

    include

    o Kaizen

    o Just-in-Time (JIT) Manufacturing

    o Total Quality Management (TQM)

    o Total Productive Maintenance (TPM)

    o Cellular Manufacturing

    The roots of lean manufacturing can be traced to Japan,

    or more specifically , Toyota.

    11

    http://www.siliconfareast.com/jit.htmhttp://www.siliconfareast.com/tqm.htmhttp://www.siliconfareast.com/tpm.htmhttp://www.siliconfareast.com/tpm.htmhttp://www.siliconfareast.com/tqm.htmhttp://www.siliconfareast.com/jit.htm
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    History of Manufacturing Management

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    Principles of Lean Manufacturing

    Lean manufacturing operates on following principles:

    o Muda' or waste, is bad

    o Manufacturing processes must be closely tied to the market's

    requirements&

    o Company should be seen as a continuous and uniform whole that includes

    its customers & suppliers, a concept known as Value Stream'

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    Lean manufacturing is not merely a tool - it is a way of life that all

    members of an organization must appreciate, and practice.

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    What makes a manufacturing system lean ?

    Muda Waste Mura Inconsistency

    Muri Unreasonableness

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    The 3 Ms of lean

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    What makes a manufacturing system Lean?

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    Waste

    Anything that adds Cost to the product

    without adding Value

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    7 Types ofMuda

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    Basic Elements of Lean Manufacturing

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    Basic Elements of Lean Manufacturing

    o Just-in-time, higher efficiency manufacturing through theprinciple of 'continuous product flow' (Single Piece Workflow )

    o Continuous improvement of processes along the entire value

    chain, primarily in terms of quality and cost

    o Setting up of multi-functional and multi-skilled teams at all

    levels to achieve its goals

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    Lean manufacturing is, the 21st centurys upgraded version

    of the 20th century's Mass-Production philosophy.

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    An Element Continuous Product Flow

    o

    Continuous Product Flow redesign of the productionfloor , product manufactured progressively from one

    workstation to another with minimal waiting time &

    handling operations between stations.

    o Dedication of an entire process line to a group of

    similar products, or a group of products that undergo

    similar processing.

    o Equipment and worktables are arranged in a

    'streamlined' lay-out that keeps production continuous

    and efficient.

    o Also known as CellularManufacturing'.

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    Animation

    Movie time

    http://localhost/var/www/apps/conversion/tmp/scratch_5/Lean%20Management%20-%20Get%20Lean%20in%2090%20Seconds.flvhttp://localhost/var/www/apps/conversion/tmp/scratch_5/Lean%20Management%20-%20Get%20Lean%20in%2090%20Seconds.flvhttp://localhost/var/www/apps/conversion/tmp/scratch_5/Lean%20Management%20-%20Get%20Lean%20in%2090%20Seconds.flvhttp://localhost/var/www/apps/conversion/tmp/scratch_5/Lean%20Management%20-%20Get%20Lean%20in%2090%20Seconds.flvhttp://localhost/var/www/apps/conversion/tmp/scratch_5/Lean%20Management%20-%20Get%20Lean%20in%2090%20Seconds.flv
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    Lean Manufacturing tools

    o Kaizen

    o Value Stream Mapping - Material & information flow mapping

    o Standardized Work

    o Pull System

    o Andon - Status display board

    o Kanban - Signal card , pull card

    o Leveled Production Schedule

    o Visual Management

    o Workplace Organization - 5 S

    o Jidoka - Stop the line, fix the problem

    o Fixed Position Stop System

    o Pokayoke - Failsafe, Error proofing devices

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    Kaizen or the Japanese concept of 'continuous improvement

    Lean manufacturing promotes teamwork among multi-skilled,multifunctional individuals at all levels to effect the continuous

    achievement of process improvements toward zero non-moving

    inventories, zero downtimes, zero paper, zero defects and zero delays all

    throughout the organization.

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    http://www.siliconfareast.com/kaizen.htmhttp://www.siliconfareast.com/kaizen.htm
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    o To standardize a method is to choose out of the manymethods the best one, and use it. Standardizationmeans nothing unless it means standardizing upward.

    o Todays standardization, instead of being a barricade

    against improvement, is the necessary foundation onwhich tomorrows improvement will be based.

    o If you think of standardization as the best that youknow today, but which is to be improved tomorrow -you get somewhere. But if you think of standards as

    confining, then progress stops.Henry Ford , 1926

    Today & Tomorrow

    Henry Ford - Standards

    32

    Th I t f St d di d W k

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    The Importance of Standardized Work

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    Without it, allimprovement

    efforts using

    Kaizen to

    eliminate waste

    (muda) are not

    sustainable.

    One will go back

    to the original

    position beforeKaizen.

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    5S Programs -

    Seiri (sort, necessary items)

    Seiton (set-in-order, efficient placement)

    Seison (sweep, cleanliness)

    Seiketsu (standardize, cont. improvement)

    Shitsuke (sustain, discipline)

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    Visual Factory

    Visual Factory

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    Visual Factory

    Ability to understand the status of a production area in 5 minutes or less bysimple observation without use of computers or speaking to anyone.

    5-S

    1S Sift and Sort

    (Organize)

    2S Stabilize

    (Orderliness)

    3S Shine

    (Cleanliness)

    4S Standardize

    (Adherence)

    5S Sustain

    (Self-discipline)

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    Benefits of Lean Manufacturingo Waste reduction - therefore production cost reduction

    o Shorter manufacturing cycle times

    o Lower manpower requirements

    o Minimal inventories

    o Higher equipment utilization and manufacturing capacity

    o Improved cash flow

    o Higher product quality and reliability

    o Better customer service

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    Profits of the company - Increase because of these benefits.

    C l i

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    The entire process - the value stream - from the most basic

    supplier to the final end customer must be optimized.

    Optimized means synchronizing, tightening and integratingthe sequence of steps to maximize the efforts creating value

    for that end customer & eliminating anything and everything

    that is not contributing to customer value.

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    Conclusion

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    What Next...

    o World Class Manufacturing-21st Century State of the Art

    for Manufacturing Companies

    o Agile manufacturing

    o Whats Next After Lean Manufacturing?

    o http://sloanreview.mit.edu/article/innovation-whats-next-

    after-lean-manufacturing/

    o 6 Sigma

    39

    http://sloanreview.mit.edu/article/innovation-whats-next-after-lean-manufacturing/http://sloanreview.mit.edu/article/innovation-whats-next-after-lean-manufacturing/http://sloanreview.mit.edu/article/innovation-whats-next-after-lean-manufacturing/http://sloanreview.mit.edu/article/innovation-whats-next-after-lean-manufacturing/http://sloanreview.mit.edu/article/innovation-whats-next-after-lean-manufacturing/http://sloanreview.mit.edu/article/innovation-whats-next-after-lean-manufacturing/http://sloanreview.mit.edu/article/innovation-whats-next-after-lean-manufacturing/http://sloanreview.mit.edu/article/innovation-whats-next-after-lean-manufacturing/http://sloanreview.mit.edu/article/innovation-whats-next-after-lean-manufacturing/http://sloanreview.mit.edu/article/innovation-whats-next-after-lean-manufacturing/http://sloanreview.mit.edu/article/innovation-whats-next-after-lean-manufacturing/http://sloanreview.mit.edu/article/innovation-whats-next-after-lean-manufacturing/http://sloanreview.mit.edu/article/innovation-whats-next-after-lean-manufacturing/
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    Acknowledgement & Referenceso All resources taken from the www are gratefully acknowledged .

    o http://www.toyota-

    global.com/company/vision_philosophy/toyota_production_system/origin_of_the

    _toyota_production_system.html

    o http://www.lean.org/WelcomeLetter.cfm

    o http://www.shmula.com/lean-history-and-timeline-toyota-production-

    system/5993/o http://en.wikipedia.org/wiki/Taiichi_Ohno

    o http://en.wikipedia.org/wiki/The_Machine_That_Changed_the_World_(book)

    o http://en.wikipedia.org/wiki/James_P._Womack

    o http://en.wikipedia.org/wiki/Sakichi_Toyoda

    o http://en.wikipedia.org/wiki/Henry_ford

    o Quiz on Toyota site : http://www.toyota-

    global.com/company/vision_philosophy/toyota_production_system/quiz_on_the_

    toyota_production_system.html

    40

    http://www.toyota-global.com/company/vision_philosophy/toyota_production_system/origin_of_the_toyota_production_system.htmlhttp://www.toyota-global.com/company/vision_philosophy/toyota_production_system/origin_of_the_toyota_production_system.htmlhttp://www.toyota-global.com/company/vision_philosophy/toyota_production_system/origin_of_the_toyota_production_system.htmlhttp://www.lean.org/WelcomeLetter.cfmhttp://www.shmula.com/lean-history-and-timeline-toyota-production-system/5993/http://www.shmula.com/lean-history-and-timeline-toyota-production-system/5993/http://en.wikipedia.org/wiki/Taiichi_Ohnohttp://en.wikipedia.org/wiki/The_Machine_That_Changed_the_World_(book)http://en.wikipedia.org/wiki/James_P._Womackhttp://en.wikipedia.org/wiki/Sakichi_Toyodahttp://en.wikipedia.org/wiki/Henry_fordhttp://www.toyota-global.com/company/vision_philosophy/toyota_production_system/quiz_on_the_toyota_production_system.htmlhttp://www.toyota-global.com/company/vision_philosophy/toyota_production_system/quiz_on_the_toyota_production_system.htmlhttp://www.toyota-global.com/company/vision_philosophy/toyota_production_system/quiz_on_the_toyota_production_system.htmlhttp://www.toyota-global.com/company/vision_philosophy/toyota_production_system/quiz_on_the_toyota_production_system.htmlhttp://www.toyota-global.com/company/vision_philosophy/toyota_production_system/quiz_on_the_toyota_production_system.htmlhttp://www.toyota-global.com/company/vision_philosophy/toyota_production_system/quiz_on_the_toyota_production_system.htmlhttp://www.toyota-global.com/company/vision_philosophy/toyota_production_system/quiz_on_the_toyota_production_system.htmlhttp://en.wikipedia.org/wiki/Henry_fordhttp://en.wikipedia.org/wiki/Sakichi_Toyodahttp://en.wikipedia.org/wiki/James_P._Womackhttp://en.wikipedia.org/wiki/The_Machine_That_Changed_the_World_(book)http://en.wikipedia.org/wiki/Taiichi_Ohnohttp://www.shmula.com/lean-history-and-timeline-toyota-production-system/5993/http://www.shmula.com/lean-history-and-timeline-toyota-production-system/5993/http://www.shmula.com/lean-history-and-timeline-toyota-production-system/5993/http://www.shmula.com/lean-history-and-timeline-toyota-production-system/5993/http://www.shmula.com/lean-history-and-timeline-toyota-production-system/5993/http://www.shmula.com/lean-history-and-timeline-toyota-production-system/5993/http://www.shmula.com/lean-history-and-timeline-toyota-production-system/5993/http://www.shmula.com/lean-history-and-timeline-toyota-production-system/5993/http://www.shmula.com/lean-history-and-timeline-toyota-production-system/5993/http://www.shmula.com/lean-history-and-timeline-toyota-production-system/5993/http://www.shmula.com/lean-history-and-timeline-toyota-production-system/5993/http://www.shmula.com/lean-history-and-timeline-toyota-production-system/5993/http://www.shmula.com/lean-history-and-timeline-toyota-production-system/5993/http://www.lean.org/WelcomeLetter.cfmhttp://www.toyota-global.com/company/vision_philosophy/toyota_production_system/origin_of_the_toyota_production_system.htmlhttp://www.toyota-global.com/company/vision_philosophy/toyota_production_system/origin_of_the_toyota_production_system.htmlhttp://www.toyota-global.com/company/vision_philosophy/toyota_production_system/origin_of_the_toyota_production_system.htmlhttp://www.toyota-global.com/company/vision_philosophy/toyota_production_system/origin_of_the_toyota_production_system.html
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    Questions ?

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    Thank You

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