Presentation- 19 Mar 2013

8/13/2019 Presentation- 19 Mar 2013

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Sanjib Biswas

March 19, 2013.

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Lean is about tools that create goods and

services that offer precise customer value,

but with less

Dr James P Womack

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With the opening of world market, the Indian manufacturers can not

afford the luxury of producing products not compatible with that of theforeign products. The presence of globally competitive firms and the

continuous innovations in the market has given a new impetus to the

competition and the quality standards. The Indian manufacturing

industries operating in the states not having good infrastructure, are

suffering on account of high cost of production which is largely attributedto high inventory level, high cycle time and enormous wastage. It is high

time that the manufacturers should try some innovative and new

manufacturing strategies/techniques.

Lean manufacturing can be the answer for those problems. Thispresentation covers the basics of Lean concepts, its applications in Indian

industries, opportunities & challenges.

Objective


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Lesstime,

inventory,

space,

people and

money

Value addition

Doing more with lessEliminating waste

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Lean is about


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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

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Lean Management

is a management philosophy which shortens the time line between thecustomer order and the product shipment by eliminating waste.

Customer

Order Waste

Product

Shipment

Time

Customer

OrderProduct

Shipment

Time (Shorter)

Business as Usual

Waste

Lean Management

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Lean History

In 1945, Toyoda challenged Taiichi Ohno to learn how tocompete with US Automakers not on building large volumesof similar models, but many models in low volume.

Ohno was given 3 years to develop a system to achieve thisgoal.

Ohno went to the US and studied Ford mass assemblyprocesses at the Rouge River Plant.

Ohno learned a lot from this experience, but felt Ford stoppedshort of a better system.

Ohno also studied the supermarket concept of ordering andreplenishing stock by a signal system. This resulted in Ohnoapplying the KANBAN concept to the system he woulddevelop

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Cont. Lean History

It took Ohno over 20 years to develop the system that becameknown as The Toyota Production System (TPS)

It took until the 1974 Oil Crisis before outsiders and others in Japanreally took notice of the TPS system that Ohno built and the way it

was allowing Toyota to compete when others were faltering. Lean Manufacturing came to the US with James Womacks Book,

The Machine That Changed The World in 1990.

Focused on Toyota Production System Concepts and Why Toyotawas able to so successful over US Auto Manufacturers.

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What makes a system lean?the 3 Ms of

lean

mudawaste

mura- inconsistency

muri - unreasonableness

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Value- specify what creates value from the customersperspective.

Thevalue streamidentify all the steps along the processchain.

Flow- make the value process flow.

Pull- make only what is needed by the customer (short termresponse to the customers rate of demand).

Perfection- strive for perfection by continually attempting to

produce exactly what the customer wants.

Lean Principles

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Any process that the customer would be prepared to pay forthat adds value to the product.

The customer defines the value of product in a lean supply

chain.

Value-adding activities transform the product closer towhat the customer actually wants.

An activity that does not add value is considered to be

waste.

Value

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The value stream is the sequence of processes from rawmaterial to the customer that create value.

The value stream can include the complete supply chain.

Value stream mapping is an integral aspect of Lean.

The value stream

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Flow

Using one piece flow by linking of all the

activities and processes into the most

efficient combinations to maximize value-

added content while minimizing waste.

The waiting time of work in progressbetween processes is eliminated, hence

adding value more quickly.

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Pull = response to the customers rate of demand i.e. the

actual customer demand that drives the supply chain.

Based on a supply chain view from downstream to upstream

activities where nothing is produced by the upstream supplier

until the downstream customer signals a need.

Pull

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Perfection

The journey of continuous improvement.

Producing exactly what the customer wants, exactly when,

economically.

Perfection is an aspiration, anything and everything is able

to be improved.

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Based on two philosophies: 1. Elimination of waste

2. Respect for people

The origin of Lean

The Toyota Production System

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Definition Of Work Components

wastevalue creationWORK

Increases

costs and reduces

quality

Customers

only want to pay

for this

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Lean = Eliminating the Wastes

Value Added

Anything that adds Cost to the product without addingValue Waste

The Seven Wastes

Defects

Over-production

Waiting

Transportation

Inventory Motion

Over Processing

Under utilized human potential(the eighth waste identified)

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7 Forms of Waste

Types

of

Waste

CORRECTION

WAITING

PROCESSING

MOTION

INVENTORYCONVEYANCE

OVERPRODUCTION

Repair or

Rework Any wasted motion

to pick up parts or

stack parts. Also

wasted walking

Wasted effort to transport

materials, parts, or

finished goods into or

out of storage, or

between

processes.

Producingmore

than is needed

beforeit is needed

Maintaining excess

inventory of raw matls,

parts in process, or

finished goods.

Doing more work than

is necessary

Any non-work time

waiting for tools,

supplies, parts, etc..

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Waste Elimination

Value

AddWaste

Traditional Focus

Work Longer-Harder-Faster

Add People or Equipment

Lean Management

Improve the Value

Stream to Eliminate

Waste

LEAD TIME

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Tools of Lean Management

Waste reduction Full involvement, training, learning

Cellular mfg

Kaikaku (radical change)

Kaizen (continuous improvement) & standard work

5S

Jidoka (autonomation)

Poka-yoke

Shojinka (dynamic optimization of workers)

Teien systems (worker suggestions)

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Tools (cont.)

Continuous Flow

SMED

Andon

Takt time

Line balancing

Nagara (smooth production flow)

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Tools (cont.)

Customer pull

Just-in-time

Kanban

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Visual Factory

Total Productive Maintenance

Other Tools

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Lean Management in India

The lean management revolution in India is still in its nascent stage. Although the

Companies like TVS Motor, Tata Motors , Hero Honda, HAL, WIPRO, Mahindra &

Mahindra, Fiserv India Pvt Ltd. Exide Industries Ltd etc. stand out as shining examples

of the benefits of the adoption of the Lean Management route, but still this concept is

yet to be flourished in different Manufacturing as well as Service sectors.

In the year of 2009 the concept was limited to 10 per cent of the Indian manufacturing

sector.

The first Lean healthcare training course took place in Bangalore on 12th December

2011 and was attended by around 40 participants only.

Beyond healthcare, the demand for Lean management in the manufacturing andcommercial sectors in India is growing as more and more U.S. and European-based

companies look to India to outsource design and manufacturing work.


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Opportunities

50 - 80% Waste reduction

WIP

Inventory

Space Personnel

Product lead times

Travel Quality, costs, delivery


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Challenges

Lean is completely about CULTURE, or the Thinking Way. Thus it isabout change in Mind-set.

Lean is not a part of what we do, it is in everythingthat we do, it is our

way of thinking.

It is an embedded culture of understanding the customers needs,

continually striving to reduce waste and optimising the performance of

process, people and infrastructure.

At all levels there is a strong desire to be better.

A culture of Lean is visibly prioritised and practised from the top to the

bottom of the workforce.

The key is understanding the customer and delivering his

requirements.


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Challenges in India

The barriers in the Indian context of implementing the lean

manufacturing are the following:

- Lack of resources.

- Lack of expertise.

- Initial high cost which includes the cost of resources as well as

expertise.- Poor supply chain structure.

- Ineffective training and development of work force in the

company.

- Absence of continuous assessment of every individual in theorganization.

- Psychological factors such as fear of loosing the job on account

of its implementation.

- Natural calamities.


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Vision without action is merely a dream. Action without vision

just passes the time. Vision with action can change the world.

- Joel Barker

When the winds of change come, some people build

walls, others build windmills.

- Brian Mayne


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Thank you

Presentation- 19 Mar 2013

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