Lean Manufacturing

Introduction

Waste of Raw material. Worker Alienation. Inventory. Machinery. Waiting Time. Gap between management and worker Accounting practice came to encourage wasteful

manufacturing processes.

Disadvantages of Mass Production

Small domestic market. Wide diversity of vehicle designs. Short of capital. Competition. Faced bankruptcy. Company was in a major revolt.

Challenges for Toyota

Mass production would not work in Japan. Taiichi Ohno of Toyota realized reducing set-up times

could substantially reduce the waste that occurred in the mature implementations of the Ford production system

Toyota company invented new principles to mass production which leads to birth of lean production.

Lean manufacturing also known as Toyotism or Toyota Production System.

Origin of Lean Production

Lean is about getting the needed parts, to the right places, at right time in right quantity while flexible and open to change.

Lean Thinking got its name from 1990’s “The machine that changed world”

Two Main Pillars of Foundation◦ Just in Time◦ Autonomation (Automation with human touch)

Lean Manufacturing

VALUE : What the customer is willing to pay for (ie processes which transform the product, eg : bending, welding, etc).

VALUE STREAM : The sequence of processes to deliver value to the customer. (The complete value stream flows through the complete supply chain, from raw materials to finished goods).

FLOW : Movement between value adding processes without delay or interruption (Kanban)

PULL : Activating a process when the customer wants to receive, not when the supplier wants to provide.

Lean Principles

It is a management philosophy focusing on reduction of

seven wastes. By eliminating waste quality is improved, production time

and cost are reduced. Pull processing Perfect first time quality Waste minimization Continuous improvements Flexibility Maintaining relationship with suppliers. Involvement of workers in innovation , rewards and

benefits on performance and development.

Lean Manufacturing Principles

Seven Wastes

Overproduction

Waiting

Inventory

TransportationMotion

Over Processing

Rework

11

66

77

55 44

33

22

To produce sooner,fasteror in greater quantitiesthan customer demand.

Raw material, work in progressor finished goods

which is not having value added to it.

People or parts that wait for

a work cycle tobe completed.

Unnecessary movementof people, parts ormachines within

a process.

Unnecessary movement of peopleor parts between processes.

Non rightfirst time.Repetitionor correctionof a process.

Processing beyondthe standardrequired by thecustomer.

is the Japanese word for WASTE.MUDA

Seek it out and get rid!

1

2

34

5

6

7

An 8th waste is the wasted

potential of people

Kaizen – Continuous Improvement Get rid of all old assumptions. Say "NO" to the business as usual. Don't worry about being perfect - even if you only get it half

right " start NOW! It does not cost money to do KAIZEN/Improve. If something is wrong "Fix it NOW. Good ideas flow when the going gets tough. Get to the root cause. Look for wisdom from Ten people rather than one. Never stop doing KAIZEN.

Ten Kaizen Principles

Sort - All unneeded tools, parts and supplies are removed

for the area

Set in Order - A place for everything and everything is in

its place

Shine - The area is cleaned as the work is performed

Standardize - Cleaning and identification methods are

consistently applied

Sustain - 5S is a habit and is continually improved

The 5S’s: Steps for better Lean Mfg

The 5 S’s

Typical Benefits of Lean

Results

In many ways, better than mass production◦ Higher Quality◦ Waste Reduction/Saving Money◦ Happier Customers

Lean has been immensely successful in certain industries in Japan.  It is much more capable of lower volume and higher product diversity than mass production.

It seems most prevalent in industries such as consumer electronics and automobiles.

Conclusions

Womack, J. P., Jones, D. T., and Roos, D., (1990) The machine that changed the world. Simon & Schuster Inc., 323.

Ohno, T., (1978) The Toyota production system: beyond large-scale production.  English Translation 1988, Productivity Press, 4-6, 19-20, & 93-109.

 Holweg, Matthias (2007). "The genealogy of lean production". Journal of Operations Management 25 (2): 420–437

 Hanna, Julia. “Bringing ‘Lean’ Principles to Service Industries”. HBS Working Knowledge. October 22, 2007.

Krafcik, John F. (1988). "Triumph of the lean production system". Sloan Management Review 30 (1): 41–52.

References

1. List the disadvantages of Mass production.

2. Identify the Lean Manufacturing principles.

3. Identify the seven waste recognized in Lean.

4. List the ten Kaizen principles.5. List the 5S’s of Lean Manufacturing.6. Explain five benefits of Lean

Manufacturing.