BY TEAM BLUE
PRESENTATION ON LEAN
What is lean? Why lean? Principles of lean Goals of lean Types of waste Lean tools Steps to achieve lean systems
Topics
Lean is a systematic approach of eliminating waste so every step adds
value for the Customer
WHAT IS LEAN ?
Value - A capability provided to a customer at the right time at an appropriate price, as defined by the customer.
• Cost
• Quality
• Delivery
What is value?
Waste is any activity that consumes time, resources, or space but does not add any value to the product or service.
What is Waste?
constraints on performance improvement
Lack of funds, resources, time and personnel are the top four constraints that companies experience in achieving measurable improvements in business
performance.
Lack of Funds 43%Limited Resources 42%Lack of Time 40%Lack of Qualified Personnel 32%
• Define value from the customer perspective
• Identify the value stream• Make the process flow• Pull from the customer• Head toward perfection
5 principles of lean
Specify value : Specify value from the standpoint of
the end customer by product family.
Identify the value stream :Identify all the steps in the value
stream for each product family, eliminating whenever possible those steps that do not create value.
5 principles of lean
Create flow :Make the value-creating steps occur
in tight sequence so the product will flow smoothly toward the customer.
Let the customer pull product through the value stream:
Make only what the customer has ordered.
5 principles of lean
Seek perfection : As value is specified, value streams
are identified, wasted steps are removed, and flow and pull are introduced, begin the process again and continue it until a state of perfection is reached in which perfect value is created with no waste.
5 principles of lean
Improve quality: In order to stay competitive in today’s marketplace, a company must
understand its customers' wants and needs and design processes to meet their expectations and requirements.
Eliminate waste: Waste is any activity that consumes
time, resources, or space but does not add any value to the product or service.
Four Goals of lean
Reduce time: Reducing the time it takes to finish an
activity from start to finish is one of the most effective ways to eliminate waste and lower costs.
Reduce total costs: To minimize cost, a company must
produce only to customer demand. Overproduction increases a company’s inventory costs due to storage needs.
Four Goals of lean
overproduction (occurs when production should have stopped)
Waiting (periods of inactivity) Transport (unnecessary movement of materials) Extra Processing (rework and reprocessing) Inventory (excess inventory not directly
required for current orders) Motion (extra steps taken by employees due to
inefficient layout) Defects (do not conform to specifications or
expectations)
The Seven Forms of Waste
Overproduction : Producing more/sooner than the Internal or External customer needs.
Waiting :Long periods of inactivity for people, information, machinery or materials.
Transportation :Excessive movement of people, information or materials.
The Seven Forms of Waste
In appropriate processing:Using the wrong set of tools,
procedures or systems.
Unnecessary Inventory:Excessive storage and delay of
information or products.
The Seven Forms of Waste
Motion :people or equipment moving or
walking more than is required to perform the processing.
Defects : Frequent errors in paper work,product
quality problems etc..
The Seven Forms of Waste
waste elimination standardized work poka yoke 5s visual workplace just in time continuous improvement material management work in process
LIST OF LEAN TOOLS
POKA-YOKE- means “Mistake proofing”.
And it also provides visual or other signals to
indicate characteristic state and referred as
error proofing . It is a Japanese word .
POKA-YOKE
5s visual work place provide a clean environment .
It is well organized and efficient .
It provides the organization for preparing a rapid work force .
5S VISUAL WORK PLACE
It can lead to huge improvements in quality
and efficiency .
This method was adopted by Japanese manufacturing company.
JIT means making what the market wants, when it want it.
JUST IN TIME
Continuous improvement ,in regards to quality and performance .
And it also improves customers satisfaction
through continuous and incremental approach.
And there by removing unnecessary activities
and variation .
CONTINOUS IMPROVEMENT
It aims to minimize the work .
It needs to store the inventory .
It take time to look above and below work areas for needed storage .
WORK IN PROCESS
It is a branch of logistics and deals with tangible components of supply chain.
It can consolidate and efficiently handle core
service .
The parts and materials used in supply chain
meets the minimum requirements by performing quality assurance .
MATERIAL MANAGEMENT
Lean Thinking diagnostic tool that allows you to:◦ Visualize work◦ “See the waste” (barriers to flow)◦ Focus on improvements
Value Stream = steps (value added and non-value added) that are required to complete a service from beginning to end
Value Stream Mapping
Value Added vs. Non-Value Added
Value added activities The customer is willing to pay money for
the process Work that changes the market form, fit
or function
Non-value added activities Should be eliminated, simplified,
reduced, or integrated whenever possible
Two types of non-value added activities:◦Required for business◦Not required for business
Non-Value Added
Value Added
Value Added vs. Non-Value Added
• Continuous focus on increasing value added activities
• If value added activities are increased by 10% = gain of only 2%!
• Focus on reducing non-value added activities by 10% = gain of 8% value added!
20%
80%
The following steps should be implemented in order to create the ideal lean manufacturing system:
Design a simple manufacturing system Recognize that there is always room for
improvement Continuously improve the lean
manufacturing system design
Steps to achieve lean systems
Design a simple manufacturing system A fundamental principle of lean manufacturing is demand-based flow
manufacturing. In this type of production setting, inventory is only pulled through each production centre when it is needed to meet a customer’s order.
The benefits of this goal include decreased cycle time less inventory increased productivity increased capital equipment utilization
There is always room for improvement The core of lean is founded on the concept of continuous product and
process improvement and the elimination of non-value added activities. “The Value adding activities are simply only those things the customer is willing to pay for, everything else is waste, and should be eliminated, simplified, reduced, or integrated”. Improving the flow of material through new ideal system layouts at the customer's required rate would reduce waste in material movement and inventory.
Continuously improve A continuous improvement mindset is essential to reach a company's
goals. The term "continuous improvement" means incremental improvement of products, processes, or services over time, with the goal of reducing waste to improve workplace functionality, customer service, or product performance.
SUMMARY
Thank you
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