Lean SystemsLean Systemsby by

Sashi.PrabhuSashi.Prabhu

Lean SystemsLean Systems

The ability to make exactly

what the customer wants

as they order it.

Benefits: Benefits: TangibleTangible & & IntangibleIntangible

Improved TeamworkImproved Teamwork

Simpler SchedulingSimpler Scheduling

Greater FlexibilityGreater Flexibility

Market Market

ResponsivenessResponsiveness

Increased SalesIncreased Sales

0 100

Lead Time Reduction

Productivity Increase

WIP Reduction

Quality Improvement

Space Utilization

Time & Cost RelationshipTime & Cost RelationshipTime & Cost RelationshipTime & Cost Relationship“The longer an article is in the process of manufacture and the more it is moved about, the greater its ultimate cost.”

--Henry Ford, 1926

History of LeanHistory of Lean1910-1928 1910-1928 Ford Production SystemsFord Production Systems1942-46 1942-46 Kaiser’s Liberty Ships Kaiser’s Liberty Ships 1970 1970 Toyota Production System Toyota Production System 1980 1980 If Japan Can, Why Can’t WeIf Japan Can, Why Can’t We1980 1980 JIT, Cellular, TOCJIT, Cellular, TOC1989 1989 Machine That Changed the WorldMachine That Changed the World1995 1995 Lean EnterprisesLean Enterprises1998 1998 Lean Service OrganizationsLean Service Organizations

““Lean Thinking”Lean Thinking”A Continuous Improvement Approach A Continuous Improvement Approach

focused on focused on eliminating wasteeliminating waste in the in the entire operationentire operation

Breaking the status quo by making a Breaking the status quo by making a series of small immediate changes using series of small immediate changes using conventional wisdom (conventional wisdom (common sensecommon sense))

Involvement of stakeholders in the Involvement of stakeholders in the processprocess

Measuring the results of the changes Measuring the results of the changes --

Definition of WasteDefinition of WasteDefinition of WasteDefinition of Waste Anything More Than the Anything More Than the

Absolute Minimum Resources of Absolute Minimum Resources of Material, Equipment and Material, Equipment and

Personnel to Personnel to Add Value for the Customer.Add Value for the Customer.

Total Order Lead Time Total Order Lead Time BreakdownBreakdown

0 1 2 3 4 5

Elapsed Time

Value Added Ratio =Value Added Time

Elapsed Time

VA

NVA

Value Added Ratio Value Added Ratio CalculationCalculation

Value Added Ratio =

VA

NVA

1.1

5.3= 20.7 %

0 1 2 3 4 5

Elapsed Time

5

The Eight Process WastesThe Eight Process Wastes

1.1. Overproduction-Large Overproduction-Large BatchesBatches

2.2. Extra Extra TransportationTransportation 3.3. Excess Excess InventoryInventory4.4. Employees Employees WaitingWaiting5.5. NVA NVA ProcessingProcessing6.6. Excess Excess MotionMotion7.7. Defects & Defects & ReworkRework8.8. Underutilized Underutilized BrainpowerBrainpower

Eight Service Industry Eight Service Industry WastesWastes

1.1. ErrorsErrors in documents in documents

2.2. TransportTransport of documents of documents

3.3. Doing Doing unnecessaryunnecessary work not work not requestedrequested

4.4. WaitingWaiting for the next process for the next process stepstep

5.5. Process of getting Process of getting approvalsapprovals

6.6. Unnecessary Unnecessary motionsmotions

7.7. BacklogBacklog in work queues in work queues

8.8. UnderutilizedUnderutilized employees employees

The Lean ToolboxThe Lean Toolbox

5 S’s Campaign5 S’s Campaign

1.1.SortSort

2.2.SystematizeSystematize

3.3.Spic & SpanSpic & Span4.4.StandardizeStandardize

5.5.Self –discipline.Self –discipline.

With an Organized With an Organized Workplace :Workplace :

DefectsDefects are reduced are reduced SafetySafety is improved is improved WorkersWorkers are more efficient are more efficient InventoryInventory is reduced is reduced MaintenanceMaintenance is improved is improved CleanupCleanup time is minimized time is minimized

--

Quick ChangeoverQuick Changeover

Traditional setup and large batches

Setup Run

Quick change and small batches

Externalized & Streamlined Tasks

Remember: nothing is being produced!

So, set-up time is Non Value Added

Setups need to be eliminated, integrated, or

simplified

Why Reduce Set-ups?Why Reduce Set-ups?

Push: Schedule-based

Pull: Consumption-based

““Pull” Production versus Pull” Production versus “Push”“Push”

PullPull Systems - AdvantagesSystems - AdvantagesFasterFaster response to the customer response to the customer

EasierEasier scheduling, inventory and control scheduling, inventory and control

ReducedReduced effort, space, cost and investmenteffort, space, cost and investment

But…..But…..

A different way of doing thingsA different way of doing things

Total Productive Total Productive MaintenanceMaintenance

A systematic approach to eliminating

unscheduled equipment downtime

Enlists the intelligence of the operators

Provides a structure for any company to:

• chart & analyze equipment issues

• identify root causes of problems

• implement permanent corrections

Overall Equipment Overall Equipment EffectivenessEffectiveness

DOWNTIME Breakdowns Changeovers Adjustments

SPEED Stoppages

Slow-downs

DEFECTS Process Defects Reduced Yields

Types of Poka Yoke Types of Poka Yoke DevicesDevices

PreventionPreventionThe process is designed so that it is The process is designed so that it is

impossible to make an error impossible to make an error

Removes any need to correct a errorRemoves any need to correct a error

DetectionDetectionSignals the user an error has been Signals the user an error has been

made so the user can quickly correct made so the user can quickly correct the problemthe problem

Stops defects from reaching customerStops defects from reaching customer

Summary: Poka-Summary: Poka-Yoke…Yoke…

Does not replace a quality system, but

it is used to supplement a quality system.

Avoids Important Wastes

- rework in downstream operations

- defects from reaching customers

Functional LayoutFunctional Layout

Interrupted product flowUnbalanced operationsLarge batchesLonger time to completeComplex material handling -

Cellular WorkplacesCellular Workplaces

FG RM

Includes Every StepIncludes Every Step

Source InspectionSource Inspection

Point of Use StoragePoint of Use Storage

Flexible OutputFlexible Output

Reduced Lot SizeReduced Lot Size

Simplified HandlingSimplified Handling

Visual Goals & Visual Goals &

MetricsMetrics

Original Office LayoutOriginal Office Layout

Cellular Office LayoutCellular Office Layout

Keys to SuccessKeys to Success1.1. Keep things Keep things simplesimple

2.2. Focus on your Focus on your processprocess

3.3. Look for all types of Look for all types of wastewaste

4.4. Break old Break old habitshabits

5.5. Work through Work through mistakesmistakes

6.6. When problems occur, be When problems occur, be

flexibleflexible

7.7. Keep improving—Keep improving—everydayeveryday --55

Share the mutual Share the mutual benefits ofbenefits of

DecreasingDecreasing Inventory and batch Inventory and batch

sizessizes Labor costs and Labor costs and

overtime overtime Capital investmentsCapital investments

IncreasingIncreasing Customer responseCustomer response ProductivityProductivity FlexibilityFlexibility QualityQuality

Thanks very muchThanks very much