Principles and Practices of

Lean Manufacturing

Ankur Dhir
B tech, CQM

Lean Manufacturing
Principles and practices

Lean Manufacturing
Definition
Lean has been defined in many different ways.
A systematic approach to identifying and
eliminating waste(non-value-added activities)
through continuous improvement by flowing the
product at the pull of the customer in pursuit of
perfection.

By The MEP Lean Network

Intro-To-Lean

History of Manufacturing
CRAFT
Made customer specific
Each product is unique
Variable quality /expensive

MASS
Interchangeable Whitney
Division of labor-Fredrick Taylor
Assembly lines and flow variety-Ford

LEAN
High variety
Small batches
Six sigma quality

What is LEAN?
Lean is the elimination of anything not
absolutely required to deliver a quality product or
service, on time, to our customers.
LEAN is fundamentally different business logic
LEAN is based on eliminating unnecessary action
LEAN links value activity in a continuous
sequence
Only a small fraction of total time and effort in
an organization adds value for end customer

Why LEAN?
Severe Competitions in all walks of business
Firms face reduction in margins to keep the
market share
Every little saving will improve the economy
Time for every available resource to perform
the best
Operation cost reduction is critical to our
survival
Profits =price-cost (price dictated by the
market and cost incurred by us)
Cost = activities involved (VA+NVA)

LEAN- Some myths

LEAN is a factory thing

LEAN will not work here
We tried it, it is another kaizen event
5S is all about cleaning up your office
or workstation
We are different, it cant apply to our
business
Its an excuse to take our jobs away
Zero inventory

History Timeline for Lean Manufacturing

Intro-To-Lean

Lean manufacturing is a
philosophy
In 1990 James Womack, Daniel T. Jones, and
Daniel Roos wrote a book called The

Machine

That Changed the World: The Story of Lean

Production-- Toyota's Secret Weapon in the Global Car
Wars That Is Now Revolutionizing World Industry
In this book, Womack introduced the Toyota
Production System to American.
What was new was a phrase
"Lean Manufacturing."
Intro-To-Lean

Lean Overview

Intro-To-Lean

LEAN System -Benefits

The Hard ones (typical)
15% growth in 1 year
12% Productivity increment in one year
20% space saving in one year
90% on time delivery in full
28% throughputs lead time reductions
Improved supplier performance
Improved customer quality
Progressive MUDA elimination

LEAN System -Benefits

The Soft ones
Flexible structures assigned to business goals
Roles & Responsibilities assigned to business
goals
Process driven culture
Visual demonstration of achievements
Increased employee ability and morale
Visual abnormal situations
Focused application of resources for best
return
Believable prediction of results

Lean Building Blocks

KAIZEN
Pull/Kanban
Quality at
Source
Standardized
Work
5S System

Principles for Implementing

Lean Manufacturing

Cellular/Flow
POUS

Quick
Changeover

Batch
Reduction
Visual

TPM

Team
s

Plant Layout

Value
Stream
Mapping

The 7 Major Wastes

MUDA
Taiichi Ohno (1912-1990), the Toyota executive who was the most
ferocious foe of waste human history has produced, identified the
first seven types of muda in manufacturing system:

Storage
Transportation
Waiting
Motion
Process
Defects
Over-production
Muda is everywhere.

Seven Wastes
Most important concept in lean
manufacturing is the distinction of the
7 major wastes.
Wastes are also known as Muda.
Wastes are defined as unnecessary
resource that is required to produce a
quality product as defined by the
customer.

Seven Wastes

Overproduction
Down Time
Transportation
Inappropriate Processing
Unnecessary Inventory
Unnecessary Motions
Defects

Overproduction
Producing more product than
necessary.
Creates excessive lead times.
Increases storage cost.
Difficulty of finding defects.

Down Time
Idle products or employees.
Concentrate on bottlenecks will
alleviate the waiting waste.

Transportation
Inefficient factory layout.
No value added.
Opportunity for damage.

Inappropriate Processing
Cheap tools instead of expensive
ones
Less technology where possible
Several machines rather than one

Unnecessary Inventory
Associated cost with excess stocks.
Problems become overlooked since there is excess

Unnecessary Motions
Keep ergonomics in
mind
Misplaced tools.
Searching for
materials.

Defects
Defects are goods of
low quality.
Wasted material, time
and money
As product moves
down the supply chain,
the cost associated
with the defect rises.

How to Increase Profit?

Intro-To-Lean

Lean Manufacturing Tools

5S
Value Stream Mapping
Standardized Work
Load Leveling
Kaizen
Kanban
Visual Workplace
Quick Changeover
Andon
Poka-yoke
One-piece flow
Cellular Manufacturing
Intro-To-Lean

Production Planning System (Push

System)

Intro-To-Lean

Push or Pull?

A push system
Intro-To-Lean

Push or Pull?

A pull system
Intro-To-Lean

The Kaizen Technique

Masaaki Imai (leans founding father): Kaizen - a
means of continuing improvements in personal
life, home life, social life, and working life
Workplace - managers and workers working
together to make improvements with low capital
investments
Kai - to modify or change
Zen - to think about making good or better

Kanban Operation
Kanban Stage
1

Kanban Stage
i

RM

FG
Station
1

WK(1)

PK(1)

Station
2

WK(2)

PK(2)

Station
i

WK(i)

PK(i)

Intro-To-Lean

Station
i+1

Station
N+1

WK(i+1) PK(i+1) WK(N)

PK(N)

Raw materials inventory

14
11

Semi-finished
parts

11

12

Semi-finished parts

Finished
goods

7
Station 3

RM

Station 1

RM

11

RM

Station 2

8
WK

PK

13

WK

4
PK

PK

11

13

WK

2
10

6
Material
handler

Intro-To-Lean

Order
receiving

Kaizen Strategies/Goals
Elimination of the seven wastes
Teamwork based:Train all employees (kaizen &
problem solving)
Communicate ideas up and down company
hierarchy; every one is encouraged to seek out
and exploit new opportunities
Define clear leadership initiatives
Prioritizing problems
Create a culture where Perfection is perpetually
chased

Current State Map of A Case Study Example

Intro-To-Lean

Future State Map

At which stations, are parts withdrawn?

At which stations, are parts scheduled?

Intro-To-Lean

Kaizen Implementation
Practices exist for the successful implementation
of Kaizen, which include:

Value Stream Mapping

The 5 Whys
PDCA (Plan, Do, Check, Act)
5-S

Benefits of Kaizen
Implementation
Makes the job:

Easier
Safer
Less unpleasant
More efficient

Saves money and time

Stimulates workers
Creates an atmosphere of harmony and a strong
sense of community, family, and belonging

Kaizen Blitz: An Alternate

Approach
Definition: A business strategy which promotes
rapid implementation of plant improvement
ideas.
Improvements
Small
Rapid
Utilize minimal resources

Kaizen Blitz: Strategy

Discover problem
Brainstorm solutions
Apply rapid implementation
Monitor for success

Kaizen Blitz: Benefits

Change is almost immediate

Relatively simple to plan and implement
Required resources are low
Many small improvements can be as, if not more,
beneficial than larger scale changes.

5-S Implementation
Promotes visual management and a clean and
safe workplace that results in a high level of
organization and efficiency

The 5-Ss
Straighten - separating what is and is not
needed
Sort - a place for everything, and everything in
its place
Shine - a clean workplace should be an
established goal
Sustain - adherence to the first three Ss in the
5S program
Standardize - continuous use of the first four Ss
until they become second nature to employees

Benefits of 5-S

Increased morale
Safety
Non-Value Added activity decreased
Efficiency and organization
Increased quality
Faster Lead Time
Increased creativity, and willingness to contribute
among employees.

5-S Examples

Shadow board for cutting dies

5-S Examples

Before

After

Just-In-Time (JIT)
Technique
Products produced only as they are required
Establish flow processes so there is an even,
balanced flow throughout the entire production
process
Best suited to processes where the same product
is produced continuously
Goal: Generate zero queues & Minimize lot sizes

JIT: Benefits

Reduced inventory levels (improved profits)

Less wastes: improved product quality
Reduced delivery lead times
Reduced costs associated with equipment
problems, machine setup, etc.

JIT: Strategies
Balanced workload throughout the factory
Changes in product demand should not result in
large fluctuations in production levels
Establish a TAKT time
Minimize setup times to achieve single digit times
(improved planning & redesigning processes)
Lead times should be reduced through cellular
manufacturing, reducing queue times, etc.

Preventative Maintenance
Idle workers use their time more effectively and
maintain workstations to help in the prevention of
various problems that would halt production
Advantages of flexible workers:
- Quality inspections
- Operation of several machines

Jidoka
Definition: It is the ability for machines to be selfdependent and error proof without any human
interaction.
3 Elements:

Separate human from machine work

Machines detect/prevent abnormalities
Stop the Line authority in operation

Key Concepts of Lean

Pokayoke
Kanban
Cellular Manufacturing

Pokayoke
Simple machines and mechanisms
rather than complex, high-tech ones
Fool proofs operations and
reduces/eliminates mistakes in
processes
Devices are usually quite simple,
inexpensive, and either inform the
operator that a mistake is about to be
made or prevent the mistake altogether

Pokayoke (contd)
Pokayoke helps minimize defects
before they reach the customer
Important to realize Pokayoke is not
a solution to the defect problem
Investigation in the defect cause is
essential to elimination
Ex. color-coding parts so they can not
be mixed up

Kanban
Card system that helps control flow
Very effective in establishing JIT
manufacturing goals
Easily understood and requires a
relatively simple setup
Card should be attached to a product
container and contain essential
information (part #, quantities, etc.)

Kanban (contd)
There are two types of Kanban
systems:
Production Kanban
Conveyance Kanban

Production kanban signals the need for

the production of more parts
Conveyance kanban signals the
required delivery of parts to the next
stage of production

Kanban (contd)
Environments with a highly
fluctuating demand and wide variety
of product are less likely to
experience success
Smaller kanbans at various sectors of
a plant may be helpful

Kanban (contd)
Basic Rules of Kanban
Kanban signal only used when the representative
product is used
Products are only issued/made when a kanban is
received
Only quality components are used
There is no overproduction
Manufacturing follows order in which kanban cards
are received
There should be a reduction of kanban cards over
time

Cellular Manufacturing
Work cells are central to the idea of
one piece flow
Ideally these work cells focus on a
low range of similar products
Product continually moves around
the cell to each operation until
complete at the end of the U

Cellular Manufacturing
(contd)
The u-shaped layout optimizes flow
from one station to the next
Benefits include:
Higher throughput
Improved coordination
Strong sense of teamwork
Improved quality and productivity
Simplicity of cellular manufacturing

Cellular Manufacturing
(contd)
11
3

13

12 2

10 1

5 8

Cellular Manufacturing
(contd)

Single Minute Exchange of

Dies (SMED)

General Problems
Large time losses due to setup are
generally accepted in many
industries
Expensive, high-tech equipment is
often seen as beneficial in saving
time and money

Lean Approach
It is often the case that creativity and
simplicity is the best solution to
these problems
Generally several smaller/simpler
machines will be more beneficial

Benefits of SMED

Reduced setup time

Higher efficiencies
Increased capacity
Reduced WIPs
Lower batch sizes
Increased safety

Increased flexibility
Elimination of
waiting
Operators
preference
Stockless production

Internal Vs. External Setup

Classification essential to effective
SMED system
External Setup: One that may be
completed while machine is in
operation
Internal Setup: One that requires the
shut down of the machine for
completion

Internal Vs. External

(contd)
Primary goal is to change all internal
setups to external ones
Reduce length of internal setup if
unable to convert to external
Reduce length of all external setups
as well

Simple Suggestions
Analysis of setup procedures using
videotapes
Use more people where available
Use offline time as maintenance time
Practice makes perfect

SMED Examples

Split thread bolts

Handles
Toggle clamps
U-shaped washers

Example Tools

Example Tools (contd)

u-shaped washers

Split thread bolts

SMED Examples

SMED Examples

SMED and Lean

SMED needs to be treated as a
constant improvement program
Setup times can not be minimized
overnight
Continuous evaluation and
exploration of further improvements
is absolutely necessary