Lean Managment

PRODUCTION METHODS - LEAN MANUFACTURING
S PAGEN
.NO INDEX O
1) Introduction 3
2) History of lean management 4
3) What is lean management? 6
4) Goals of lean management 7
5) Lean management concepts 8
6) Flow value from demand 23
7) Benefits of lean production 24
Lean production tools
8) Just-In-Time(JIT) 25
9) Work cells 31
10) 5S Methodology 33
11) Total Productive Maintenance (TPM) 38
12) Single Minute Die Exchange(SMDE) 40
13) Kaisen 42
14) Kanban 45
15) Quality-At-Source 46
16) Cellular manufacturing 47
17) Value-Stream-Mapping 52
18) Takt Time 62
19) Advantages of Lean manufacturing 67
20) Why is Lean successful? 69
21) Uses of Lean management 73
22) Lean manufacturing in today's world 74
Challenges facing Indian textile and apparel

23) industry 77
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24) Conclusion 81
25) Reference 82
INTODUCTION:
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Lean production is an assembly-line manufacturing methodology

developed originally for Toyota and the manufacture of automobiles. It
is also known as the Toyota Production System. The goal of lean
production is described as "to get the right things to the right place at
the right time, the first time, while minimizing waste and being open to
change". Engineer Ohno, who is credited with developing the principles
of lean production, discovered that in addition to eliminating waste, his
methodology led to improved product flow and better quality.
During the 1980s, the set of practices summarized in the ten rules of
lean production were adopted by many manufacturing plants in the
U.S. and Europe. The management style was tried out with varying
degrees of success by service organizations, logistics organizations and
supply chains. Since the demise of many dot.coms, there has been a
renewed interest in the principles of lean production, particularly since
the philosophy encourages the reduction of inventory. Dell Computers
and Boeing Aircraft have embraced the philosophy of lean production
with great success.
HISTORY OF LEAN MANUFACTURING:
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The origin of LEAN MANAGENT comes from the manufacturing

methodology that TOYOTA PRODUCTION SYSTEM had taken. Du ring
the initial years of WORLD WAR II, Japan had suffered a lot of
problems. Toyota family had decided to their change their automatic
loom manufacturing business to automobile business. But they
had a few problems to overcome. They could not compete with the
giants like FORD in foreign markets. Therefore Toyota had to depend
on local markets. They had to bring raw materials from outside,
produce in small batches, but had small capital.
TAICHI OHNO, the owner of Toyota had take-over the challenge of

achieving the impossible. With his right hand man Dr. Sheigo Shingo
for the next three decades, he built the TOYOTA PRODUCTION
SYSTEM.
Although very successful during the initial years; with Henry ford
being the richest person on earth, he had not understood the concepts
of this system; their major drawback was the inability to change. This
was due to the push strategy implemented by the Fords system. It
relied on keeping the machine busy without thinking about the future
outcome. They had huge stocks in the form of finished goods and in
the form of finished goods and Work in Progress. This led to the
inflexibility of the system and waste money unnoticed. Another major
drawback was the poor handling of human resource. This les to less
motivated set of people in the organization.
But in Japan, they studied very well and saw the problems that
Ford system had. But the core concepts of the Ford were obeyed. This
is a continuous flow of value system. Anything distracted from the
growth of the system is treated as a waste. Various pioneered work
from people like Deming and Juran in the field of quality improvement
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was used to the system. This brought quality to the system. More
importantly Ohno and Shingo understood the drawback in the push
system and understood the role played by the inventory. This led to
Pull system rather than push system, where the parts are produced
only when they are pulled by the process before that. This is similar to
the concepts in the super markets. When the shells are being emptied
(that is when people buy the product), they are refilled with new ones.
This system developed in Toyoto from 1949 to 1975 virtually

unnoticed by the others even within Japan. But in the oil crises in 1973
Japans economy suffered and most of the industries had losses. But
Toyoto overcame these problems. They stood out from the rest. This
was the eye opener foe the Japanese firms to implement this system.
But this system got popular in the western world with the book “THE
MACHINE THAT CHANGED THE WORLD” written by James Womack in
1990. This book was aimed to give the history of the automobile with
the plant details of some of these manufacturers. He gave the name
“Lean Manufacturing to the system”. This was an eye opener for the
western world about this system. Thereafter the concepts were
practiced allover the world. Experiences and knowledge vastly
improved the system.
But there were many people who just tried to use the tools in
lean manufacturing without understanding the meaning of them. They
eventually failed. But there are number of places this system is worked
well. The complete elimination waste is the target of the system. This
concept is vitally important since in today’s highly competitive world
there is nothing we can waste.
Even today this system adds to its history. Therefore there will be a lot
to add to this chapter in the coming years.
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What is LEAN MANAGEMNT?
Lean manufacturing or lean production, which is often known simply

as "Lean", is the practice of a theory of production that considers the
expenditure of resources for any means other than the creation of
value for the presumed customer to be wasteful, and thus a
target for elimination. Lean manufacturing is a generic process
management philosophy derived mostly from the Toyota Production
System (TPS).
Lean is a practical and engaging way of breaking the

overwhelming tasks into manageable ones and delivering the
improvement. Lean is a way of working which identifies &
eliminates waste to deliver improved value and services based
on identified customer requirements.
• Improves the existent process

• Creates a new process
Lean manufacturing defines the value of a product or a

service with the customer point of view. Customers do not mind
how hard you work or what is the technology you used to create the
product or service you are selling them. They will evaluate your
product or the service by looking at how well this is going to fulfill their
requirements.
Customers do not need to pay for the quality defects removed from the
production lines. They will pay for the fulfillment of their requirements
with the product or service.
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GOALS OF LEAN MANAGEMENT
The main goals of lean management are given below:
 Eliminate the wastes, which are considered no value to the

customers; reducing the WIP time.
 Identify & map the value stream.
 Creating goods in favor of the customer in small batches and not in
large.
 The ability to change to the customer requirement swings;
understanding the pull strategy.
 Efficient handling of human resources.
 Creating an interest for the working environment for the employees
in the company or factory.
 A continuous improvement every day which therefore leading to
new process everyday which is the flexibility of the organization.
 Creating fool-proofing methods
 Improving the overall performance, i.e., higher quality, higher profit,
increase in customer service & satisfaction & increase the
innovativeness.
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LEAN MANGAEMENT CONCEPS
There are a few concepts to be discussed in detail so that the

management can be come clear focused and lean thereby creating
value for their products which fulfills the customers. Some among them
are:
1. Value
2. Value stream
3. Waste
4. Equipment reliability
5. Continuous Flow
6. Pull production
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7. Continuous improvement
8. People involvement
VALUE:
This is the value we provide to the customers. Value is the complete

package of products and services we use to serve the
customers and penetrate the market from the point of view of the
customer.
In line with a target costing approach, this value translates into the
price the customer is willing to pay and, in turn, to the product and
service costs we must achieve in order to satisfy the customer
and the company’s stakeholders.
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CASE IN POINT: XEROX- BACK FROM THE BRINK
Xerox in the early 1980s was disaster, but by 1990 it had

turned itself around and into a different company. Financial figures
don’t tell in all, but they do say something about the size of Xerox’s
turnaround: in 19984 revenues were $8.7 billion, in 1990 they were
$13.6 billion; 1987 return-on-assets was 9%, in 1990 it was 14.6%;
most significant was Xerox‘s market share gain in installed machines,
12% in 1984 versus 19% in 1990-all at the expanse of Xerox’s
Japanese competitors (each point represents about $200 million).
In 1988, the Baldrige Award was the coveted industry prize.

Although Xerox management had no idea whether it had done enough
to have a chance at winning, Paul Allaire, president since 1986,
thought the application process would be worthwhile as a company
motivator and a measure of how good really the company was. Thus,
Xerox’s goal was not much to win, but to use the process to energize
the company and appraise its quality efforts.
Xerox began the application process in November 1988 by forming a
team of 20 members, mostly midlevel managers from the throughout
the company. The process requires answering a detailed questionnaire
which comprises 33 categories covering the 12 main categories. Even
everything had to be quantified and substantiated based upon hard
facts and 3 to 5 years of supporting data.
The team dubbed company flaws it encountered as “warts”. A

total of 503 warts were found (not many, actually, for a company of
Xerox’s size). Some were minor (paint hallways), some major (find
better ways to transfer knowledge between teams). The team
discovered that, despite the warts, Xerox was doing a good job. It was
one of the only companies that benchmarked its products and
processes and that tied marked its products and process as and that
tired executive bonuses to quality.
In May 1989, the application was completed and submitted.
The July, Xerox received word that it had made the cut and was getting
a site visit. Six examiners described on the company, meeting with
senior managers in Rochester, NY, then visiting with senior managers
in Denver and Los Angeles, where, in 4 days, they spoke to 450 people.
They discussed with the employees such things as whether they were
on teams, what quality tools they used, and what the company policy
was on quality.
In November, Xerox got the news: it had won. (By coincidence,

Xerox Canada learnt a month later that it had won the Canadian
National Quality Award.)
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As for the warts, some were still there; some are there today.
The management ream looked at the warts and came up with 50
recommendations, mostly managerial and most were adopted. The
warts were organized into six principles upon which Xerox decided to
base its quality efforts in the 1990s:
1) Customers define our business.

2) Our success depends on the involvement and empowerment of
trained and motivated people.
3) Line management must lead quality improvement.
4) Management develops, articulates, and deploys clear objectives
clear objectives and directives.
5) Quality challenges are met and satisfied.
6) The business is managed and improved by using facts.
The Baldrige application process had indeed reenergized the

company’s commitment to quality, and it showed the extent of quality
gains made from the early 1980s to 1988; for example defects went
from 10000 ppm to 300 ppm (parts per million), installed products
performance went up by 40%, customer satisfaction went up to 38%,
labor overhead went down by 50%, and material overhead went down
by 40%.
By 1990, Xerox had begun building long term relationships with its best
suppliers, involving them in new product development and training
them in quality leadership techniques, SPC, and JIT.
VALUE STREAM:
Value stream recognizes that the company’s processes

create excellence and customer-driven performance. Traditional
departmental control structures run counter to lean thinking. We must
understand, control, and manage our business through the processes,
or value streams, of the organization. This includes three top-level
value streams in manufacturing companies; the "make product"
value stream, the "design and problem solve" value stream, and
the value stream that includes the company’s transactions and
controls. These value streams often extend outside of the company
itself into the suppliers, the customers, and partner organizations.
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WASTES:
There are a number of prominent wastes, and wastes, which does not
so notable, which account about 70-95% of the resources wasted
in the organization. Even the best lean manufactures waste about
30% of their resources.
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In lean manufacturing the wastes are defined as anything

which does not add value to the end product. If customer sees
the value with the end product, it is very much fair to define a waste in
this way. Customer do not mind how much it costs you to damage, cost
for the huge stocks and stores or other over heads. The first step is to
identify the wastes and categorize them in to avoidable and
unavoidable. Lean manufacturing always talks about removing,
not minimizing. These two words have very different meanings.
Whenever the word minimizing occurs it means, it implies that there
are wastes in the system in different quality. But what lean
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manufacturing does is, it aims at removing the wastes from the

system.
OVERPRODUCTION:
The word over-production can be used to describe a type of

waste which is in most of the places and we never think this as a
waste. This is producing something before it is actually required. This
can be applied to the bigger picture or in more localized sense.
In the bigger picture, this is equivalent to create a product or a service

before it is actually required. Lean manufacturing always trust on the
pulling rather than pushing. This means that every product or a service
must be pulled from the process immediately after that. Therefore a
product or a service must be pulled by the customer. In simpler way,
the customer must have the real requirement for the product or the
service being produced. If goods are produced without any simulation
from the market, then the product should be kept until the market for
the product arises or create market stimulation with huge advertising
campaigns etc. This is known as the push strategy. Still there will not
guaranty that will be able to sell the products without wastages.
In much smaller picture, the word over production might mean

producing a part of a product before it is required by the assembly line
or the process after that. For an example there is no point of making
more receivers than the phone intended to be produced. The extra
amount will be a lost.
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Over production accounts to many loses. One is the waste due to

unnecessary parts. This also will make the WIP higher. Flow will not be
smoother. This obviously leads to low quality products and defects as
quality problems are hidden in the WIP maintained due to over
production.
INVENTORIES –
The money and materials invested in by a company in order to

create products for sale. In reality there are few areas that can yield
more outstanding initial cost savings than the reduction of inventory in
many, if not most companies. Inventory must be viewed as "MONEY"
and treated accordingly.
The most common types of Inventory are
Raw Materials:
Processed components waiting for work to be done on them. This is the

least expensive form of inventory especially if suppliers will wait for
payment until you begin using these materials.
Work In Process (W.I.P.):
Materials that have had some work done to them but are not yet
finished. This is the second most expensive form of inventory as
"value" has been added to the materials.
Finished Goods:
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This is the most expensive type of inventory as the materials have

already traveled through the value stream and are now complete.
Although most companies carry some Finished Goods Inventory it can
be a serious waste and burden on cash-flow.
TOYOTO cells inventories the root of all evils. It implies that

wastes stemming from inventories go far beyond items held in stock. It
represents items waiting for something to happen, a waste in that
there are costs associated with keeping items waiting and lost time
since no value is being added to them. Inventory holding costs
increase with size of inventory since it costs more to them. Holding
costs include the charges for the storage space, paperwork and
handling, insurance, security, and pilferage. Since the capital needed
to acquire or produce the items in inventory cannot be invested
elsewhere, there is an opportunity cost well. If inventory comprises
items procured from borrowed funds, there is also an interest expense.
The sum holding costs for all items in all inventories carried by an
organization throughout the year can be sizable.
Inventory is also considered evil because it covers up other

kinds of wastes and encourages, or allows, wasteful practices.
Inventory has been called a just-in-case philosophy of management,
meaning that managers use it all as a hedge against things that might
go wrong. While many mangers recognize the costs of inventories,
they still think of inventory as necessary to overcome other kinds of
problems.
WAIT IN PROGRESS -
Work in progress or WIP is a direct result of over production and

waiting. Every imperfection in the system will create a requirement for
the WIP. Therefore WIP also known as the mirror of the wastes the
system has. But WIP it self becomes a waste due to many
consequences. It blocks money in the form of not finished products. It
also reduces the flexibility of the production facility by increasing the
change over time between different styles. It hides quality damages,
and will only be revealing when a considerable damage is done. Higher
WIP also requires large floor space. This will also affect the appearance
of the work place badly. Therefore if you want to be perfect, just target
for a system where there is no requirement for WIP.
MOTION –
This waste is often overlooked. When performing a certain

task people have to repeat their motions again and again.
Although we do not realize, in many places people will have to move,
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bend or reach to collect some part or to reach a machine. If a time

study can be done to check the percentage of the time for these
unnecessary movements, is actually very high than our thought. Even
the other ergonomic conditions like correct lighting, tool arrangement,
work process management is essential to achieve a good productivity
from the people poor conditions are not good for the health of the
worker obviously. Also this will waste large amounts of time.
Workplaces will become very untidy. Workers will get tired easily. The
reason for this is poor workplace organization. To overcome this
problem, a detailed study has to be carried out about working
conditions. Then they have to be re arranged to eliminate these
problems. Even some simple equipment change like from normal chairs
to movable and adjustable chairs will solve some problems. But some
problems will need very good workplace engineering to overcome.
TRANSPORTION –
However well the product is transported, it does not add value

to the end product. Therefore transporting is one of the wastes that
have to be eliminated from the production system. This accounts for
the quality defects, maintenance of a higher WIP, and additional cost of
transporting the goods. Transporting is often caused by poor work
place organization. In flexibility of the layout plays a big role here. This
can be avoided with careful re-designing of the layouts.
RE-PROCESSING-INAPPROPRIATE PROCESSING –
This is the using incorrect tools for the job. This does not mean
that you should use complicated or expensive tools to do the job. It is
about using the correct tool for the correct job. Low cost automation is
one program where Toyota found to be really effective. Developing
such tools can be done with the aid of workers, because they know the
job they do more than anyone. Then this will become a very good way
of motivating people as well. The enemy for this system is the mind set
of the people who work in the organization. People naturally think like
best equipment for the job is expensive and complex. So how to
overcome this problem, which will not only save money for you but
also motivate people immensely. Very simple. Change the mind set of
the people by education and training. Also create a culture of
continuous improvement. Then people will always look for the better
ways of doing things, which creates opportunity for these kinds of
innovations. The improper usage of machinery, equipment and
resources leads to rework, which again is a total waste of time, energy
and labor.
OVER PROCESSING –
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Often in order to achieve the maximum quality or the best

quality out of a process, we tend to stick on to the same process for its
betterment, leading to the rest of the process in queue. This leads to
delay in delivery and also waste of time and energy as these steps are
not required, as the necessary quality had already been reached.
KEY FEATURES OF LEAN PRODUCTION
REDUCED SETUP COST & TIMES (for semi-versatile machinery such

as big stamping presses)-
From months to hours thus making small-lot production economically

viable; achieved by organizing procedure, using carts, and training
workers to do their own setup. All setup practices are wasteful because
they add no value to a product and they tie up labor and equipment.
SMALL-LOT PRODUCTION –
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Allowing higher flexibility & pull production (or just-in-time

manufacturing)
EMPLOYEE INVOVMENT & EMPOWERMENT –
Organizing workers by forming teams and giving them training and

responsibility to do many specialized tasks, for housekeeping, quality
inspections, minor equipment repair and rework; allowing also them
time to meet to discuss problems and find ways to improve the
process.
QUALITY AT THE SOURCE – total quality management (TQM) and

control; assignment workers, not inspectors, the responsibility to
discover a defect and to immediately fix it; if the defects cannot be
readily fixed, any worker can halt the entire line by puling a cord
(jidoka)
POKAYOKE FUNCTIONS:
Any kind of system or mechanism that prevents defects from

happening can be called pokayoke. There are two broad functions that
pokayoke serve: regulatory and setting.
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There are 2 types of pokayoke. They are

REGULARATORY POKAYOKE:
These are devices that either control a process or give a warning about
it. A control pokayoke is a device that shuts down an operation
whenever it detects an abnormality, thereby preventing defects in a
succession of time.
SETTING POKAYOKES:
These devices that check for ensure proper settings or counts in a
process. These pokayoke apply where poisoning or orientation is
important.
CASE IN POINT: ERROR PROOFING AT MCDONNELL &

MILLER
The following notice was posted on the shop bulletin board:

Recently a letter from a customer alerted a problem that existed
in our diverter value assembly. The customer had received in order of
the diverter values that contained a unit that was incomplete in its
assembly.
The Focused Factory NO: 4 found that an operator had inadvertently
forgotten to include a spring and thermostat in the unit’s body. Upon
investigation, it was found that it was quite easy for an operator to
forget these parts.
A team was formed to address the problem and find a solution.
Mr.Amaro ,the group leader in the diverter area, drew up a plan to
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install a limit switch to the holding fixture that would not allow the
operator to remove the valve body from the fixture if any if any the
internal components from the fixture if any of the internal components
were missing.
The focused factory supervisor and lean leader listened to Mr.Amero’s
idea and agreed that the switch would work. The approval to go ahead
was given and within 1week the fixture was retrofitted with the limits
switch. The cost for this work was minimal.
Tests were performed by the operators. The results were excellent the
limit switch can sense the weight (or lack of weight)of the spring and
thermostat. If any parts are missing in the body, the switch will not let
the operator remove from the assembly fixture. This feature assures us
that no incomplete assembly will leave the work area and be sent to
our customers.
PULL PRODUCTION OR JUST-IN –TIME (JIT) –
The method wherein the quality of work performed at each

stage of the process is dictated solely by the demand for materials
from the immediate next stage; thus reducing waste and lead times,
and eliminating next stage; thus reducing waste and lead times, and
eliminating inventory holding costs.
CONTINUOUS EQUIPMENT MAINTAINENCE –
As pull production reduces inventories, equipment breakdowns

must also be reduced, thus empowered operators are assigned primary
responsibility for basic maintenance since they are in the best position
do detect signs of malfunction.
MULTI-SKILLED WORKFORCE -
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As employees are empowered to do many jobs, they must be provided

with adequate training.
SUPPLIER INVOLVEMENT –
The manufacturer treats its supplier as long-term partners; they often

must be trained in ways to reduce setup times, inventories, defects,
machine breakdowns, etc.in order to enable them to take responsibility
for delivering the best possible parts/services to the manufacturer in a
timely manner.
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Flow Value from Demand

(Delay Commitment)
The idea of flow is fundamental to lean production. If you do

nothing but add value, then you should add the value in as rapid a flow
as possible. If this is not the case, then waste builds up in the form of
inventory or transportation or extra steps or wasted motion.
The idea that flow should be ‘pulled’ from demand is also fundamental
to lean production. ‘Pull’ means that nothing is done unless and until a
downstream process requires it. The effect of ‘pull’ is that production is
not based on forecast; commitment is delayed until demand is present
to indicate what the customer really wants. Pulling from demand can
be one of the easiest ways to implement lean principles. The idea is to
fill each customer order immediately. In mass-production days, filling
orders immediately meant building up lots of inventory in anticipation
of customer orders. Lean production changes that. The idea is to be
able to make the product so fast that it can be made to order. True,
Dell and Lens Crafters and LL Bean and Toyota have to have
some inventory of sub-assemblies waiting to be turned into a
finished product at a moments notice. But it’s amazing how little
inventory is necessary, if the process to replenish the inventory is also
lean.
A truly lean distribution channel only works with a really lean supply
chain coupled to very lean manufacturing.
The “batch and queue” habit is very hard to break. It seems

counterintuitive that doing a little bit at a time at the last possible
moment will give faster, better, cheaper results. But anyone designing
a control system knows that a short feedback loop is far more effective
at maintaining control of a process than a long loop. The problem with
batches and queues is that they hide problems. The idea of lean
production is to expose problems as soon as they arise, so they can be
corrected immediately. It may seem that lean systems are fragile,
because they have no padding. But in fact, lean systems are quite
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robust, because they don’t hide unknown, lurking problems and they
don’t pretend they can forecast the future.
BENEFITS F LEAN PRODUCTION
Establishment and mastering of a lean production system would allow

you to achieve the following benefits:
• Waste reduction by 80%
• Production cost reduction by 50%
• Manufacturing cycle times decreased by 50%
• Labor reduction by 50% while maintaining or increasing
throughput
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• Inventory reduction by 80% while increasing customer service

levels
• Capacity in current facilities increase by 50%
• Higher quality
• Higher profits
• Higher system flexibility in reacting to changes in requirements
improved
• More strategic focus
• Improved cash flow through increasing shipping and billing
frequencies
However, by continually focusing on waste reduction, there are truly
no ends to the benefits that can be achieved.
LEAN MANAGEMNT TOOLS
There are a number of lean management tools given below.
JUST-IN-TIME MANUFACTURING
`Just-in-time' is a management philosophy and not a technique.
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It originally referred to the production of goods to meet customer

demand exactly, in time, quality and quantity, whether the `customer'
is the final purchaser of the product or another process further along
the production line.
History of JIT
JIT is a Japanese management philosophy which has been

applied in practice since the early 1970s in many Japanese
manufacturing organizations. It was first developed and perfected
within the Toyota manufacturing plants by Taiichi Ohno as a means of
meeting consumer demands with minimum delays. Taiichi Ohno is
frequently referred to as the father of JIT.
Toyota was able to meet the increasing challenges for survival

through an approach that focused on people, plants and systems.
Toyota realized that JIT would only be successful if every individual
within the organization was involved and committed to it, if the plant
and processes were arranged for maximum output and efficiency, and
if quality and production programs were scheduled to meet demands
exactly.
JIT manufacturing has the capacity, when properly adapted to the

organization, to strengthen the organization’s competitiveness
in the marketplace substantially by reducing wastes and
improving product quality and efficiency of production.
There are strong cultural aspects associated with the emergence of JIT
in Japan. The Japanese work ethic involves the following concepts.
• Workers are highly motivated to seek constant improvement

upon that which already exists. Although high standards are
currently being met, there exist even higher standards to
achieve.
• Companies focus on group effort which involves the combining of
talents and sharing knowledge, problem-solving skills, ideas and
the achievement of a common goal.
• Work itself takes precedence over leisure. It is not unusual for a
Japanese employee to work 14-hour days.
• Employees tend to remain with one company throughout the
course of their career span. This allows the opportunity for them
to hone their skills and abilities at a constant rate while offering
numerous benefits to the company.
These benefits manifest themselves in employee loyalty, low turnover

costs and fulfillment of company goals.
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DECISIONS AND ACTIONS IN JIT ORGANIZATIONS are guided by

a set of principles. They are:
 Simplification: Given multiple ways to achieve the identical

results, simpler is better.
 Cleanliness & Organization: A clean, organized workplace
promotes discipline and caring attitudes about work and
products, reduces waste, and helps pinpoint incipient trouble
sports and workplace problems.
 Visibility: Information that is immediate visible to everyone who
needs it enables people to do their jobs better, motivates them
to do the right thing and eliminates unnecessary and ineffective
planning and control activities.
 Cycle Timing: Regularity of workplace patterns reduces
uncertainty, increases learning and improvement potential, and
permits better planning and action toward meeting customer
demand.
 Agility: Daily, changing customer demand is a fact of life;
companies must be able to react to changes, plan for them, and
be able to respond even without plans.
It has now come to mean producing with minimum waste. "Waste"

is taken in its most general sense and includes time and resources
as well as materials. Elements of JIT include:
 Continuous improvement:
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• Attacking fundamental problems - anything that does not

add value to the product.
• Devising systems to identify problems.
• Striving for simplicity - simpler systems may be easier to
understand, easier to manage and less likely to go wrong.
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• A product oriented layout - produces less time spent

moving of materials and parts.
• Quality control at source - each worker is responsible for
the quality of their own output.
• Poke-a-yoke - `foolproof' tools, methods, jigs etc. prevent
mistakes
• Preventative maintenance, Total productive maintenance -
ensuring machinery and equipment function perfectly
when it is required, and continually improving it.
 Eliminating waste. There are seven types of waste:
• Waste from overproduction.

• Waste of waiting time.
• Transportation waste.
• Processing waste.
• Inventory waste.
• Waste of motion.
• Waste from product defects.
 Good housekeeping - workplace cleanliness and organization.

 Set-up time reduction - increases flexibility and allows smaller
batches. Ideal batch size is 1item. Multi-process handling - a multi-
skilled workforce has greater productivity, flexibility and job
satisfaction.
 Leveled / mixed production - to smooth the flow of products
through the factory.
 Kanbans - simple tools to `pull' products and components through
the process.
 Jidoka (Autonomation) - providing machines with the autonomous
capability to use judgment, so workers can do more useful things
than standing watching them work.
 Andon (trouble lights) - to signal problems to initiate corrective
action.
Just-In-Time Processing
Just-In-Time (JIT) describes a process which is able to provide exactly

what is needed when it is needed. This minimizes inventory stock or
idle time while maintaining perfect delivery performance. Our JIT model
is displayed graphically below.
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As you move up the model, effort and materiel waste is reduced

and processes become more predictable in producing the output. It is
still important to perform a CPR analysis to insure that you are not just
finding a faster way to make products that lose you money.
JIT has been interpreted to mean many different things, such as

a method, a system, and a philosophy. The most current
interpretation, the one subscribed to here, is that JIT is a management
philosophy that addresses not only production practices, but also
expectations about the roles and responsibilities of managers,
support staff, line workers, and suppliers, their relationships to one
another and to customers, as well as broader issues about the
conduct of business. At some other level, JIT principles apply to all
organizations –large and small, services and manufacturing. Problems
with implementing JIT tend to stem from lack of commitment,
resistance to change, or simple misunderstanding about what JIT
really means. JIT is a move back to basics, and there can be little
argument over JIT from the perspective that the principles behind it
make good business sense.
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WORK CELLS:
31
Work cell concept is another concept developed with the JIT.

Work place is arranged in to a cell which is in the shape of English
letter “U”. in a work cell there will be 3-12 people depending on the job
task performed by this cell. There will be many cells which will
complete the total product by working together. People who are in this
cell are multi skilled and can perform multiple tasks according to the
requirement. One of the main advantages of the work cell is the less
movement and lesser transportation. Also this will reduce the over
production considerably. This will also give very high flexibility to the
entire production system since changing from one product to another
is very easy. Sometimes it may require changing one work cell to
produce a completely new product. Team working culture is very
important in a process like this. Therefore good leadership is very
much required. Every performance is measured in the team basis.
Therefore motivation must be there for all the people working in the
cell to work for a common objective.
Kanban tooling
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Kanban is one of most popular tools in lean manufacturing. This is a

simple concept, but very effective. Kanban mainly focus on the
reduction of overproduction. There are mainly two types of kanbans.
They are
 Withdrawal kanban
 Production kanban
Withdrawal kanban is the common type, which is actually a request

from the process before that. This specifies the quantity that the
succeeding process
should take from the process before that.
On the other hand production kanban specifies the amount of products
to be made in the next process with the goods created in the process
before that.
This might take a form of a simple card which has the details of the
product, qty and the storage location of that particular product. This
even may be a sophisticated electronic data exchange process. No
matter what, the final objective must be achieved and it should be an
efficient process.
Various standardization techniques
One of the main problems will be faced by any lean

manufacturer in the initial stage is preventing of line stoppages. One
main reason for this is the system containing none standardizes work.
Therefore any lean manufacturer has to make the processes standard
and tooling and arrangements standard to achieve the goals of lean
manufacturing. Instead of having many tools and many different
adjustments, it is very useful to have narrow range of adjustments and
tools which matches these precisely. Also there should be a good
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workplace arrangement so that it will be very easy to take and replace

what exactly you need without even looking at that. This will save lot
of time and prevent lots of silly problems.
5S (methodology)
5S is a reference to a list of five Japanese words which,

transliterated and translated into English, start with the letter S and
are the name of a methodology. This list is a mnemonic for a
methodology that is often incorrectly characterized as "standardized
cleanup", however it is much more than cleanup. 5S is a philosophy
and a way of organizing and managing the workspace and work flow
with the intent to improve efficiency by eliminating waste, improving
flow and reducing process unreasonableness.
What is 5S?
5S is a method for organizing a workplace, especially a shared

workplace (like a shop floor or an office space), and keeping it
organized. It's sometimes referred to as a housekeeping methodology,
however this characterization can be misleading workplace goes
beyond housekeeping (see discussion of "Seiton" below).
The key targets of 5S are workplace morale and efficiency. The

assertion of 5S is, by assigning everything a location, time is not
wasted by looking for things. Additionally, it is quickly obvious when
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something is missing from its designated location. Advocates of 5S

believe the benefits of this methodology come from deciding what
should be kept, where it should be kept, and how it should be stored.
This decision making process usually comes from a dialog about
standardization which builds a clear understanding, between
employees, of how work should be done. It also instills ownership of
the process in each employee.
In addition to the above, another key distinction between 5S and

"standardized cleanup" is Seiton. Seiton is often misunderstood,
perhaps due to efforts to translate into an English word beginning with
"S" (such as "sort" or "straighten"). The key concept here is to order
items or activities in a manner to promote work flow. For example,
tools should be kept at the point of use, workers should not have to
repetitively bend to access materials, flow paths can be altered to
improve efficiency, etc.
The 5S's are:
Phase 1 - Seiri (Sorting):
Going through all the tools, materials, etc., in the plant and
work area and keeping only essential items. Everything else is stored
or discarded.
Phase 2 - Seiton (Straighten or Set in Order):
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Focuses on efficiency. When we translate this to

"Straighten or Set in Order", it sounds like more sorting or sweeping,
but the intent is to arrange the tools, equipment and parts in a manner
that promotes work flow. For example, tools and equipment should be
kept where they will be used (i.e. straighten the flow path), and the
process should be set in an order that maximizes efficiency.
Phase 3 - Seiso (Sweeping):
Systematic Cleaning or the need to keep the workplace

clean as well as neat. At the end of each shift, the work area is cleaned
up and everything is restored to its place. This makes it easy to know
what goes where and have confidence that everything is where it
should be. The key point is that maintaining cleanliness should be part
of the daily work - not an occasional activity initiated when things get
too messy.
Phase 4 - Seiketsu (Standardizing):
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Standardized work practices or operating in a consistent and

standardized fashion. Everyone knows exactly what his or her
responsibilities are to keep above 3S's.
Phase 5 - Shitsuke (Sustaining):
Refers to maintaining and reviewing standards. Once the

previous 4S's have been established they become the new way to
operate. Maintain the focus on this new way of operating, and do not
allow a gradual decline back to the old ways of operating. However,
when an issue arises such as a suggested improvement, a new way of
working, a new tool, or a new output requirement then a review of the
first 4S's is appropriate.
A sixth phase "Safety" is sometimes added. Purists, however,

argue that adding it is unnecessary since following 5S correctly will
result in a safe work environment.
There will have to be continuous education about maintaining

standards. When there are changes that will affect the 5S programme
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-- such as new equipment, new products or new work rules -- it is

essential to make changes in the standards and provide training. A
good way to continue educating employees and maintaining standards
is to use 5S posters and signs.
CASE IN POINT: FIVE Ss AT CANON
Canon Corporation has an ongoing, workplace improvement program

called the Five Ss referring to Japanese names for five dimensions of
workplace organization. The five Ss roughly translate into
 (Seiri) Proper Arrangement and Organization: Do things in
proper order; eliminate unnecessary things
 (Seiton) Orderliness, i.e., Straighten or Set in Order:
Specify a location for everything; designate location by number,
color coding, name, etc.; put things where they belong.
 (Seiso) Cleanup, i.e., Sweeping: Specify recommended
procedures for cleanup; follow the procedures; check over all
work.
 (Seiketsu) Cleanliness: Dust, wash, and maintain equipment
and workplace in the best possible condition.
 (Shitsuke) Discipline: Scrutinized practices; expose the
wrong ones; learn correct practices and be careful to use them.
(At some Canon factories, the English word “safety” is
added as a sixth S)
The Five Ss are implemented through frequent grading of each

work area by check sheets. In some factories, Five-S committees
conduct regular inspections of plants and departments using Five S
criteria. Problems areas are photographed and the plant or work
area must come up with a solution and a plan. In other factories,
the work areas evaluate themselves on a weekly basis. Foremen
and managers review the evaluation and make recommendations
to assist in developing plans. Works areas that show good
housekeeping practices may be awarded recognition plagues.
Regardless of performance, all work areas are expected to
continuously find ways to improve. Results of evaluation are
posted to foster responsibility and pride.
The Five-S movement has helped change attitudes, and employees
readily follow workplace rules that previously were difficult to
enforce (such as keeping parts and tools in the right place).
Performance measures the number of accidents, equipment
breakdowns, and defect the rates have all been improved.
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Relation to other concepts
5S is used with other Lean concepts such as SMED, TPM, and Just
In Time (JIT). The 5S discipline requires clearing out things which
are not needed in order to make it easier and faster to obtain the
tools and parts that are needed. This is the foundation of SMED,
which in turn enables JIT production. The first step in TPM is
operator cleanup of machines, a mandate of 5S.
TOTAL PRODUCTIVE MAINTAINANCE (TPM)
Maintenance function is very important aspect which ensures smooth

running of a production facility. In lean manufacturing one machine
breakdown will not be just another breakdown since it can hold the
entire production flow as there is no WIP to consume in the time of the
machine breakdown. Therefore it is very important to have a correct
39
maintenance process to become a lean manufacturer. TPM has three

main areas. They are
 Preventive maintenance
 Corrective maintenance
 Maintenance prevention
Preventive maintenance is to continuous checking and prevention of

major maintenance. Regular checkups are planed and carried over.
Each and every person who is working in a work station might be
responsible for checking up and cleaning etc in order to prevent any
problems from occurring.
Correction of the problems when they occur is very important to run
the production units smoothly. These corrective maintenances can vary
from very simple to very complex. People who are working with these
machinery might be able to fix most of the simpler problems while a
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team of specially trained people might be required to do the complex

jobs.
Maintenance prevention is one of the key aspects which makes the
path to become lean. This is the process where the decisions are made
in order to prevent maintenance. This process might include decisions
like buying correct machinery for the job, training people to overcome
most common problems etc.
SINGLE MINUTE DIE EXCHANGE (SMDE)
One of the most complicated problems this industry faced was

overcoming the time taken to change the style in the production line.
This took days and therefore made the production lines inflexible. The
idea was to reduce the setup time of the machinery. This is why SMDE
born. With the aid of careful planning and coordination it was possible
to reduce the time taken to change the line into minutes from days.
This made an immense flexibility in the production line. Although
started in automobile industry these concepts are very important since
still for any organization one of the main problems is facing continuous
changes styles in production.
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Again how to do this changes from industry to industry. This might

have something to do with strategic planning, choosing correct
machinery, having correct layouts, having trained people and correct
mindset of the people. Achieving SMDE require very good analysis and
creative solution making.
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KAIZEN
Kaizen means "improvement". Kaizen strategy calls for never-ending

efforts for improvement involving everyone in the organization.
Kaizen Mindset is Kaizen's Starting Point. It sets the right mindset and
business environment in a Continuous Improvement Firm (CIF).
Kaizen Mindset
• Everything can and should be improved. (Some Japanese
managers go as far as to say to their subordinates, "Regard
whatever you do now as the 'worst' way to do your job.")
• Not a single day should go by without some kind of improvement
being made somewhere in the company.
• Don't just criticize, suggest an improvement.
• Think beyond common sense. Even if something is working, try
to find the ways to make it work even better.
• Customer-driven strategy for improvement – any management
activity should eventually lead to increased customer
satisfaction.
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• Imagine the ideal customer experience and strive to provide it.

• Quality first, not profit first – an enterprise can prosper only if
customers who purchase its products or services are satisfied.
• Recognize that any corporation has problems and establish a
corporate culture where everyone can freely admit these
problems and suggest improvement.
• Think of how to improve it instead of why it can't be improved.
• See problem solving as cross-functional systemic and
collaborative approach.
• Emphasis on process – establish a way of thinking oriented at
improving processes, and a management system that supports
and acknowledges people's process-oriented efforts for
improvement.
• Start with scarcity. It's hard to see the need for Kaizen when
resources are plentiful.
• When there is a worker or supplier performance problem, don't
replace them. Keep them and help them improve instead.
The Process
The quick and easy kaizen process works as follows:
1. The employee identifies a problem, waste, or an opportunity for

improvement and writes it down.
2. The employee develops an improvement idea and discusses it
with his or her supervisor.
3. The supervisor reviews the idea within 24 hours and
encourages immediate action.
4. The employee implements the idea. If a larger improvement
idea is approved, the employee should take leadership to
implement the idea.
5. The idea is written up on a simple form in less than three
minutes.
6. Supervisor posts the form to share with and stimulate others
and recognizes the accomplishment.
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Three Key Characteristics
1. Permanent method changes. Change the method. Once the

change is made, you can’t go back to the old way of doing things.
2. Continuous flow of small ideas. The smaller ideas, the better.

Kaizen is small ideas. Innovation takes time and is costly to
implement, but kaizen is just day-to-day small improvements that
when added together represent both enormous savings for the
company and enormous self-esteem for the worker.
3. Immediate local implementation. Be realistic. Kaizen is done

within realist or practical constraints.
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KANBAN
Kanbans are “self-evident signals” that indicate what work is to

be done and when. Many of the benefits of becoming Lean can be
tracked back to the implementation of Kanbans. Kanbans clearly
identify needed work, reduce the number of defective parts produced,
allow for job-sharing, give instant visual indicators of productivity and
constrains, along with many other benefits.
Ultimately, most Kanbans evolve into what is known as “One Piece
Flow” where parts are literally passed from one operation to the next,
with no wait time between work stations.
Kanban scheduling systems are among the most simple,
effective and inexpensive means for manufacturing production
and inventory control.
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QUALITY-AT-SOURCE
Quality-at-the-source begins with quality-at-the-supplier.

When supplier. When suppliers guarantee 100% quality, the customer
can eliminate inspection of arriving material. Incoming materials can
be moved directly to points of use, and buffer inventory to cover
defects can be minimized. High quality requires high process
capability, and the customer helps its supplier achieve high capability
by sharing its own experience and expertise (assuming it has already
high capability its own high capability). As described later, companies,
continue to work with only the few suppliers who are able to
continuously meet tough requirements.
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CELLULAR MANUFACTURING
Cellular Manufacturing is a model for workplace design, and is an

integral part of lean manufacturing systems. The goal of lean
manufacturing is the aggressive minimization of waste, called muda, to
achieve maximum efficiency of resources.
Cellular manufacturing, sometimes called cellular or cell production,

arranges factory floor labor into semi-autonomous and multi-skilled
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teams, or work cells, who manufacture complete products or complex

components.
Properly trained and implemented cells are more flexible and
responsive than the traditional mass-production line, and can manage
processes, defects, scheduling, equipment maintenance, and other
manufacturing issues more efficiently.
Design
An example of a cellular manufacturing layout. Each product is
manufactured in its own work cell.
The goal of cellular manufacturing is having the flexibility to

produce a high variety of low demand products, while maintaining the
high productivity of large scale production. Cell designers achieve this
through modularity in both process design and product design
Process Design
The division of the entire production process into discrete

segments, and the assignment of each segment to a work cell,
introduces the modularity of processes. If any segment of the process
needs to be changed, only the particular cell would be affected, not the
entire production line. For example, if a particular component was
49
prone to defects, and this could be solved by upgrading the

equipment, a new work cell could be designed and prepared while the
obsolete cell continued production. Once the new cell is tested and
ready for production, the incoming parts to and outgoing parts from
the old cell will simply be rerouted to the new cell without having to
disrupt the entire production line. In this way, work cells enable the
flexibility to upgrade processes and make variations to products to
better suit customer demands while largely reducing or eliminating the
costs of stoppages.
Product Design
Product modularity must match the modularity of processes. Even

though the entire production system becomes more flexible, each
individual cell is still optimized for a relatively narrow range of tasks, in
order to take advantage of the mass-production efficiencies of
specialization and scale. To the extent that a large variety of products
can be designed to be assembled from a small number of modular
parts, both high product variety and high productivity can be achieved.
For example, a varied range of automobiles may be designed to use
the same chassis, a small number of engine configurations, and a
moderate variety of car bodies, each available in a range of colors. In
this way, a large variety of automobiles, with different performances
and appearances and functions, can be produced by combining the
outputs from a more limited number of work cells.
In combination, each modular part is designed for a particular work

cell, or dedicated clusters of machines or manufacturing processes.
Cells are usually bigger than typical conventional workstations, but
smaller than a complete conventional department. After conversion, a
cellular manufacturing layout usually requires less floor space as a
result of the optimized production processes. Each cell is responsible
for its own internal control of quality, scheduling, ordering, and record
keeping. The idea is to place the responsibility of these tasks on those
who are most familiar with the situation and most able to quickly fix
any problems. The middle management no longer has to monitor the
outputs and interrelationships of every single worker, and instead only
has to monitor a smaller number of work cells and the flow of materials
between them, often achieved using a system of kanbans.
Implementation
The biggest challenge when implementing cellular manufacturing in a

company is dividing the entire manufacturing system into cells. The
issues may be conceptually divided in the "hard" issues of equipment,
50
such as material flow and layout, and the "soft" issues of management,
such as upskilling and corporate culture.
The hard issues are a matter of design and investment. The

entire factory floor is rearranged, and equipment is modified or
replaced to enable cell manufacturing. The costs of work stoppages
during implementation can be considerable, and lean manufacturing
literatures recommend that implementation should be phased to
minimize the impacts of such disruptions as much as possible. The
rearrangement of equipment (which is sometimes bolted to the floor or
built into the factory building) or the replacement of equipment that is
not flexible or reliable enough for cell manufacturing also pose
considerable costs, although it may be justified as the upgrading
obsolete equipment. In both cases, the costs have to be justified by the
cost savings that can be realistically expected from the more flexible
cell manufacturing system being introduced, and miscalculations can
be disastrous.
The soft issues are more difficult to calculate and control. The
implementation of cell manufacturing often involves employee
training and the redefinition and reassignment of jobs. Each of
the workers in each cell should ideally be able to complete the entire
range of tasks required from that cell, and often this means being more
multi-skilled than they were previously. In addition, cells are expected
to be self-managing (to some extent), and therefore workers will have
to learn the tools and strategies for effective teamwork and
management, tasks that workers in conventional factory environments
are entirely unused to. At the other end of the spectrum, the
management will also find their jobs redefined, as they must take a
more "hands-off" approach to allow work cells to effectively self-
manage. Instead, they must learn to perform a more oversight and
support role, maintaining a system where work cells self-optimize
through supplier-input-process-output-customer (SIPOC) relationships.
These soft issues, while difficult to pin down, pose a considerable
challenge for cell manufacturing implementation; a factory with a cell
manufacturing layout but without cell manufacturing workers and
managers is unlikely to achieve the cell manufacturing benefits
Benefits and Costs:
There are many benefits of cellular manufacturing for a company if

applied correctly. Most immediately, processes become more balanced
and productivity increases because the manufacturing floor has been
reorganized and tidied up.
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Part movement, set-up time, and wait time between operations are
reduced, resulting in a reduction of work in progress inventory freeing
idle capital that can be better utilized elsewhere. Cellular
manufacturing, in combination with the other lean manufacturing and
just-in-time processes, also helps eliminate overproduction by only
producing items when they are needed. The results are cost savings
and the better control of operations.
There are some costs of implementing cellular manufacturing,

however, in addition to the set-up costs of equipment and stoppages
noted above. Sometimes different work cells can require the same
machines and tools, possibly resulting in duplication causing a higher
investment of equipment and lowered machine utilization. However,
this is a matter of optimization and can be addressed through process
design.
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VALUE STREAM MAPPING
Value Stream Mapping (VSM) is a visualization tool oriented to the

Toyota version of Lean Manufacturing (Toyota Production System). It
helps to understand and streamline work processes using the
tools and techniques of Lean Manufacturing.
A Present State Map shows work processes as they currently
exist. This is vital both to understand the need for change and to
understand where opportunities lie.
While Value Stream Maps appear complex, their construction is easy,

taken in logical steps. The instructions and illustrations below show
how to construct a Present State Map.
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54
55
PRESENT STATE VALUE MAP:
FUTURE STATE VALUE STREAM MAP:
A Future State Value Stream Map helps with the larger process of
developing your Lean Manufacturing Strategy. It requires significant
knowledge of Core Disciplines and other specific topics.
Designing a Future State requires more art, engineering and
strategy than Present State mapping. On this page, we show
mapping, but the background knowledge is in these other parts of
our site.
• Cellular Manufacturing
• Takt Time
• Kanban
• Setup Reduction
• Implementing
• Kaizen
• Group Technology
• Lot Sizing
STEPS TO MAP THE FUTURE STATE:
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1. Calculate Takt Time

Takt time is the average time between production units necessary to
meet customer demand. We use the available time divided by the
required number of units. From the example
TAKT TIME
= 460 min/504 pcs

=0.91 min
=55 secs
2. Identify Bottleneck Process
The bottleneck process is the operation with the longest cycle time.
In the example, this is machining at 44 seconds. The bottleneck is
important because it:
• Determines total system output.
• Becomes the primary scheduling point
The work balance chart given above is helpful for steps 2 and 3. Cycle
time is plotted on the vertical axis for each operation.
The large improvements in Lead Time, productivity and inventory

reduction are to be noted.
You can expect much discussion about details of implementation and
feasibility of various options. This is normal Here the goal is to
establish general feasibility.
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Value Stream & Process Mapping
Value Stream Mapping Symbols

Value Stream Mapping symbols are not standardized and there are many variations.
Here are the most common symbols.
VSM Process Symbols
This icon represents the Supplier when in the upper left, the usual
starting point for material flow. The customer is represented
when placed in the upper right, the usual end point for material
Customer/Suppli flow.
er
This icon is a process, operation, machine or department, through

which material flows. Typically, to avoid unwieldy mapping of
every single processing step, it represents one department with a
continuous, internal fixed flow path.
In the case of assembly with several connected workstations,
Dedicated even if some WIP inventory accumulates between machines (or
Process stations), the entire line would show as a single box. If there are
separate operations, where one is disconnected from the next,
inventory between and batch transfers, then use multiple boxes.
This is a process operation, department or workcenter that other

value stream families share. Estimate the number of operators
required for the Value Stream being mapped, not the number of
Shared Process operators required for processing all products.
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This icon goes under other icons that have significant

information/data required for analyzing and observing the
system. Typical information placed in a Data Box underneath
FACTORY icons is the frequency of shipping during any shift,
material handling information, transfer batch size, demand
quantity per period, etc.
Data Box
This symbol indicates that multiple processes are integrated in a

manufacturing workcell. such cells usually process a limited
family of similar products or a single product. Product moves from
Workcell process step to process step in small batches or single pieces.
VSM Material Symbols
These icons show inventory between two processes. While

mapping the current state, the amount of inventory can be
approximated by a quick count, and that amount is noted beneath
the triangle. If there is more than one inventory accumulation,
use an icon for each.
Inventory This icon also represents storage for raw materials and finished
goods.
This icon represents movement of raw materials from suppliers to

the Receiving dock/s of the factory. Or, the movement of finished
goods from the Shipping dock/s of the factory to the customers
Shipments
This icon represents the? Pushing? Of material from one process to

the next process. Push means that a process produces something
Push Arrow regardless of the immediate needs of the downstream process.
This is an inventory? Supermarket? (Kanban stockpoint). Like a

supermarket, a small inventory is available and one or more
downstream customers come to the supermarket to pick out what
they need. The upstream workcenter then replenishes stocks as
required.
When continuous flow is impractical, and the upstream process
Supermarket
must operate in batch mode, a supermarket reduces
overproduction and limits total inventory.
Supermarkets connect to downstream processes with this "Pull"

icon that indicates physical removal.
Material Pull
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First-In-First-Out inventory. Use this icon when processes are

connected with a FIFO system that limits input. An accumulating
roller conveyor is an example. Record the maximum possible
FIFO Lane inventory.
This icon represents an inventory? Hedge? (or safety stock)

against problems such as downtime, to protect the system against
sudden fluctuations in customer orders or system failures. Notice
that the icon is closed on all sides. It is intended as a temporary,
not a permanent storage of stock; thus; there should be a clearly-
Safety Stock stated management policy on when such inventory should be
used.
Shipments from suppliers or to customers using external

External transport.
Shipment
VSM Information Symbols
This box represents a central production scheduling or control

department, person or operation.
Production
Control
A straight, thin arrow shows general flow of information from

memos, reports, or conversation. Frequency and other notes may
be relevant.
Manual Info
This wiggle arrow represents electronic flow such as electronic

data interchange (EDI), the Internet, Intranets, LANs (local area
network), WANs (wide area network). You may indicate the
frequency of information/data interchange, the type of media
Electronic Info used ex. fax, phone, etc. and the type of data exchanged.
This icon triggers production of a pre-defined number of parts. It

signals a supplying process to provide parts to a downstream
Production process.
Kanban
This icon represents a card or device that instructs a material

handler to transfer parts from a supermarket to the receiving
process. The material handler (or operator) goes to the
Withdrawal supermarket and withdraws the necessary items.
Kanban
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This icon is used whenever the on-hand inventory levels in the

supermarket between two processes drops to a trigger or
minimum point. When a Triangle Kanban arrives at a supplying
process, it signals a changeover and production of a
Signal Kanban predetermined batch size of the part noted on the Kanban. It is
also referred as? One-per-batch? Kanban.
A location where kanban signals reside for pickup. Often used

with two-card systems to exchange withdrawal and production
Kanban Post kanban.
This icon represents a pull system that gives instruction to

subassembly processes to produce a predetermined type and
quantity of product, typically one unit, without using a
Sequenced Pull supermarket.
This icon is a tool to batch kanbans in order to level the

production volume and mix over a period of time
Load Leveling
Scheduling using MRP/ERP or other centralized systems.

MRP/ERP
Gathering of information through visual means.

Go See
This icon represents verbal or personal information flow.

Verbal
Information
VSM General Symbols
These icons are used to highlight improvement needs and plan

kaizen workshops at specific processes that are critical to
achieving the Future State Map of the value stream.
Kaizen Burst
This icon represents an operator. It shows the number of operators

required to process the VSM family at a particular workstation.
Operator
Other useful or potentially useful information.
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Other
The timeline shows value added times (Cycle Times) and non-value
added (wait) times. Use this to calculate Lead Time and Total Cycle
Timeline Time.
Limitations of Value Stream Mapping:
Value Stream Mapping (VSM) is a visualization tool, oriented to

the Toyota version of Lean Manufacturing. As with any tool, it has
limits. This situation sets up unrealistic expectations and
diverts attention from important aspects of complex problems.
Non-Technical Aspects of Lean:
Value Stream Mapping is a technical tool that examines the physical

system, processes and interconnections. Equally important for Lean
Manufacturing success is the people side. Factories are complex
socio-technical systems that require an integrated approach.
For example, Lean Manufacturing requires high teamwork for
motivation, coordination and problem solving. It requires an effective
mobilization of the collective intelligence of the organization.
There may also be quality issues that the company could address
through Six Sigma or TQM techniques. Five-S can clean up the plant,
improve safety and further raise productivity. Value Stream Mapping
addresses none of these directly.
This is especially important in manufacturing where many managers
have a technical bent and limited awareness of the human issues.
62
TAKT TIME
Takt Time- It is desired time between units of production

output synchronized to customer demand.
63
The concept carries backward through a process stream. Ideally, every

step synchronizes with the final output. Takt Time is fundamental to
Lean Manufacturing.
History of Takt Time:
Takt is a German word which refers to the beat of music. It

can also mean cycle, rhythm or repetition time. Sometimes it refers to
the baton of an orchestra leader.
During the 1930's, Germany and Japan were part of the Axis and
German engineers helped organize the Japanese aircraft industry. They
used the analogy of a conductor's baton setting rhythm for the entire
orchestra. After the war, Toyota picked up the word and concept
for its Just In Time or Toyota Production System.
Takt time can be defined as the maximum time allowed to produce a

product in order to meet demand. It is derived from the German word
taktzeit which translates to clock cycle. There is logic therefore to
setting the pace of production flow to this takt time. Product flow is
expected to fall within a pace that is less than or equal to the takt
time. In a lean manufacturing environment, the pace time is set equal
to the takt time.
64
Takt Time is defined as:
Where:
• Ta = Net Available Time to Work e.g. [minutes of work / day]

• Td = Total demand (Customer Demand) e.g. [units produced /
day]
• T = TAKT Time e.g. [minutes of work / unit produced]
Net available time is the amount of time available for work to be done.
This excludes break times and any expected stoppage time (for
example scheduled maintenance, Team Briefings etc).
As an example, if we have a total of 8 hours in a shift (gross time) less

30 minutes lunch, 30 minutes for breaks (2 x 15 mins), 10 minutes for
a Team Brief and 10 minutes for basic Operator Maintenance checks,
then;
Net Available Time to Work = (8 hours x 60 minutes) - 30 - 30 - 10 - 10

= 400 minutes.
If Customer Demand was, 400 units a day and you were running one
shift, then our line would be required to spend a maximum of one
minute to make a part in order to be able to keep up with Customer
Demand.
In reality, people can never maintain 100% efficiency and there may
also be stoppages for other reasons, so allowances will need to be
made for these instances and thus you will set up your line to run at a
proportionally faster rate to account for this.
TAKT TIME Implementation:
Takt time has direct implications concerning the allowable time for
completing individual steps in a production process. This is the case for
both steps that modify (form, assemble, finish…) the product and also
the steps that observe and control (test, measure, adjust…) the
process. Similarly steps which require a part or assembly of the
product to have been put into an accurately fixtures position must be
completed in less than the total takt time so that time is allowed for
loading and unloading or positioning the part in addition to the time for
actually performing the production step. The quicker that a
measurement or test step can be completed, the less constraint is
placed upon product motion between steps. For example, a
measurement process that captures the entire information about a part
65
at once will permit shorter total takt time and a higher pace of
production flow. Elimination of the need to measure reduces this step
best (SMED).
An implication of using takt time can be that work packages get

reorganized. If worker one performs actions A1 through A5 and worker
two performs actions A6 through A8 then a reduction in takt time may
mean that there are now three work packages required to fit the new
shorter/faster pace. They might be package 1 (A1 to A4), package 2 (A5
to A6) and package 3 (A7 to A8). So now we will have three people
working to do the work that used to be achieved by two. This
subdivision of work packages rather than parallel working on
unchanged packages of actions is a new idea to many. This way of
working requires:
• a very flexible workforce, that is willing to accept changes in

their routines and workplace
• requires a multi-skilled workforce, since now people may be
asked to 'pick-up' actions currently performed by others
• flexible workcells, since what is being done by two people today
may need to accommodate three people tomorrow
• increases hand-offs, so these must have no significant overhead
• keeps the workflow simple and easy to manage, so whether the
process will deliver is clear to all
• has been observed to speed up individual steps in production,
because the new context of each action encourages innovation.
It will be obvious that this kind of capacity re-planning is not something

that will be desirable every week. It is therefore important that the
varying part of Takt time, the customer demand, should have been
leveled before this kind of work re-planning is undertaken. That
leveling is looked at elsewhere and that therefore this style of capacity
modification should be undertaken to meet long term customer
demand changes and not weekly forecasts.
CASE IN POINT - A Bomber An Hour--Takt Times At

Willow Run Bomber Plant
66
The figure ABOVE illustrates the concept for the B-24 aircraft built at
Willow Run during World War II. The final assembly rate was
established at "a bomber an hour" so the Takt time for Final Assembly
is 60.0 minutes.
• The aircraft requires one Forward Fuselage sub-assembly and

the Takt time for this production area is also 60.0 minutes.
• Four propellers per aircraft generate a Takt time at Propeller
Dress of 15.0 minutes.
• Each ship needs two rudders, so Takt time for Rudder Sub-
Assembly is 30.0 minutes.
• Each rudder requires six ribs. Takt time for Rib Forming is,
therefore, 5.0 minutes.
Benefits of Takt Time
The simplicity of the concept belies its extraordinary effects.

Among these are:
Production Stability- by limiting overproduction, it stabilizes the
system and prevents buildups of inventory and the subsequent stops
and starts.
67
Workcell Design- Takt time helps cell designers. In an ideal workcell,

all tasks are balanced, they all require the same time to execute and
that time equals the Takt time. If any operation requires more than the
Takt time, the cell cannot produce at the necessary rate.
In the first illustration, below the cell cannot make the necessary
quantity because operation #4 exceeds the Takt time. In the second
chart, the work has been balanced at Takt time or slightly below. This,
however, is not the only way to balance workcells.
Psychological- immediate feedback of performance is a powerful

motivator. When a workcell team tracks takt time, they have a
heightened awareness of output rates and potential problems. They
attempt to achieve the Takt time on each cycle and immediately make
necessary corrections.
When Charles Sorensen conceived and built the Willow Run Bomber
plant, he designed it for "A bomber an hour". He did not say
"nineteen ships per day" or "120 per week." Sorensen understood the
value of steady, repetitive output.
At one point in planning a subordinate asked Sorensen how they should
schedule such a complex operation. "Cast Iron Charlie" shot back-
"Your schedule is to build a bomber an hour!” The result was a
very simple and effective scheduling system using broadcast and
kanban. There were no computers in 1940.
ADVANTAGES OF LEAN MANUFACTURING:
68
Lean Manufacturing is a buzzword. More often it is used with the terms

like benefits, cost reduction, lead-time reduction etc. but if you have
not started implementing lean manufacturing yet and if you have not
started benefiting from lean manufacturing yet, you will need some
numbers to be motivated.
Some quantified benefits of lean manufacturing where the principles of
lean are implemented successfully.
Lean manufacturing is normally known to reduce the
 Lead time by 50% at least (some reports says stories where lead
time is being reduced up to 90%)
 Reduced WIP up to 80%
 Floor space savings around 30 %( sometimes more than 50%)
 Increased productivity at least by 30%. (even more than 100% in
some cases)
 Quality improvement by a factor of two
 Overall cost reduction
69
Above are only the quantified and most common advantages. But
there are more and more other advantages come with lean
manufacturing. Among them are
 Good team spirit which will drive your organization to the

excellence
 Innovative culture in the organization
 Self driven people
 Pleasant working conditions
 Worker involvement and improved worker satisfaction
 Longer machine life
 Systematic approach to work
 Improved flexibility
 Environmentally friendly
 Built in quality
There are many other advantages which are not listed here. Even
these advantages are not listed in any order. These will be more or less
important to you according to your immediate requirements.
70
Some successful lean manufacturers claim that they have achieved

some unexpected good result when they shifted to lean manufacturing.
The reason for this is the chain effect created by the lean
manufacturing implementation.
WHY IS LEAN SUCESSFUL
Lean manufacturing talks about optimizing and eliminating

wastes, rather than minimizing. When we are trying to minimize one
type of waste another will go high. For an example if we are trying to
minimize the machine idling time it can increase the Work In Progress
as machines are on over production. At the end of the day the net out
come on the organization will be negative. This is why Lean promotes
Elimination and Optimization. This may be the Core Concept of Lean
Manufacturing.
71
An Organization which applies Lean Manufacturing must understand

clearly what is a waste? What is meant by improving? Etc.
therefore it is very important to have a Clear cut definitions about
the Key Words in Lean Manufacturing. This is clearly done in the
Lean Manufacturing. It Answers the questions like, what is a waste.
One of the major concerns of the Lean Manufacturing is the WIP. But
there are no techniques appear to eliminate WIP directly. This is a very
important example to show the Lean Thinking of Treating the
Cause Not the Effect. In Lean Manufacturing WIP has understood as
an effect of imperfections in the system. It searches for the
imperfections with the tools in Lean Manufacturing and fix these
causes. Then the WIP will automatically go down.
Lean Manufacturing believes in making the process of manufacturing

correct, instead of expecting a good result. Generally the Asian way
of management is process oriented unlike the western way of
management which is result oriented.
72
Lean believes that a correct process of work will give correct results.
This is quite a contradictory with the conventional way of thinking
in management, which is always focused to produce results by any
means.
Lean Manufacturing believes in continuous and steady improvement,

rather than in Rapid improvements. This introduces the process
sustainability and the involvement of all level of people. In Lean
Manufacturing there is a role to be played by the workers in the
improvement and innovation. This is not so in the conventional
ways of management where the innovation and decision making are
completely a responsibility of Managers.
Continuous improvements in the organization and involvement of the

employees in the process of management decision making will
motivate the employees. This will release the Organizational
Synergy into work. This at the end will become the driving force of the
organization.
Culture of team working is one of the major improvements Lean

Manufacturing promotes for an organization. Two people can
collectively give more out puts than the sum of their individual
out puts. This is the Asian way of thinking about work. This is
promoted through team incentives and team recognition, unlike in the
73
western way of management where individual performances are given

more emphasis.
Participation of the all levels of employees in the process of decision

making is one of the major improvements made by the Lean
Manufacturing. This drive out the fear among the workers and made it
easier to work with the decisions as they are a part of the process of
making decisions.
People often have more to offer than their physical strength, to the
organization. They have a brain and a heart as well. This philosophy
really worked in the organizations where Lean Manufacturing was
practiced.
Systematic approach to the reduction of wastes in every form is the

base of lean manufacturing. Finding out the wastes and evaluating
them and solving the problems that generates those wastes are
working in a system it self. Within the bigger picture there are lots of
smaller systems appear for the specific tasks. Some of them are
quality circles, and set up teams etc.
Lean Manufacturing promotes simpler methods and tools to do

the job. It often causes the low cost automation, very simpler
methods of handling and even very simpler ways of managing
the organizations. This can save larger amounts of money as they
are low cost them selves and they are effective in and efficient in the
use. Having high value machinery promotes higher maintenance,
higher level of training and fear of break downs.
Therefore low cost automation is quite good from the workers point of
view as well. On the other hand low cost applications are home made
and therefore exactly meets the demands of the work stations. Toyota
production system is very well known for these low cost automation
processes, which gave them the flexible low cost solutions for their
problems.
In Lean Manufacturing it believes people who does the work actually

has the ability to find solutions for the problems in the work. Managers
always play a supporting role. Therefore it is always better to say the
workers what to do but not how to do. This requires better and thinking
workforce unlike in an ordinary organization where the managers are
suppose to do the thinking part and workers are supposed to work
accordingly.
The single most Important Effect of Lean Manufacturing is the

Cyclic Effect of All Its Interconnected Processes. They work in
74
harmony and improvement in one place will improve the system as

whole. Therefore with the time Processes quires Momentum and will
start to Run On Their Own. Therefore they become self driven. These
are few of the identified advantages of lean manufacturing.
USES OF LEAN MANAGEMENT
Lean Business System is used for organizing and managing product

development, production and logistics operations, suppliers, and
customer relations. Business and other organizations use lean
principles, practices, and tools to create precise customer value -
goods and services with more variety in lower volumes with higher
quality and fewer defects - with less human effort, less space, less
capital, and less time than the traditional system of mass production in
which only large volumes can cause profits.
75
Leaders today in a wide range of industries, nonprofit organizations,

government agencies, healthcare, and other areas are finding ways to
apply the principles of lean as a means of producing goods and
delivering services that creates value for the customer with the
minimum amount of waste and the maximum degree of quality.
It is now proven that Lean is applicable in any sphere of human

activity, and a variety of industries – small and large from Retail, Office
and Service industries have begun to appreciate the benefits of Lean
Management and are transforming themselves. Many companies from
Banking & Financial Services, Healthcare, Retail, Hospitality, BPOs, Call
Centre & ITES and Software Industries have already embarked on a
Lean Programme or are evaluating and seriously considering one. This
is apart from Manufacturing Industries realizing that Lean Management
is more than applying tools and techniques in the factory operations.
LEAN MANUFACTURING OF TODAY’S WORLD
76
Most of the people think lean manufacturing is the best way to earn
more profit. Yes it is true. Lean manufacturing will save you costs,
increase the productivity, improve the quality and will shorten the lead
time. All of these will save and money and obviously give you more
profits. But lean manufacturing can do much more than this to
specially today’s world. In this world there are more than six billion
people. This population increases very rapidly.
77
But the resource this world has is limited. Even these limited
resources are consumed and degraded very rapidly. When closely
looked at the problems the world is facing today like wars and
environmental problems most of these problems are due to the limited
availability and in appropriate use of the resources the world has. Think
how much of energy is wasted in an engine. Only 30% of the heat
generated is used to generate mechanical energy. Even this energy is
wasted in many forms. How much of raw materials are wasted in the
process of a fiber becoming a finished garment. It is said that cost for
the fiber in a finished garment is less than 1% of the value of the
garment. Still much of the garment weight is consist of the fiber. Where
have all other value additions have gone. Most of them are wasted in
many forms. In some countries more than 25% of vegetables get
wasted in transportation.
If car engine is made 60% efficient the gulf war might have been
avoided. If the way of garment manufacturing can be changed, most of
the environmental problems in the manufacturing countries will end. If
78
we transport the vegetables carefully, war for the land and hunger in
many countries will end.
When thought deeply we will find millions of examples. We waste these

precious resources. Lean manufacturing is a system that must be
practiced worldwide. At least the core concept of waste elimination
must be obeyed in each and every organization in this world. Therefore
wasting of the resources has to be stopped. There are no resources can
be wasted for any reason. Lean manufacturing concepts will show the
way how to achieve a world without waste.
79
CHALLENGES FACING INDIAN TEXTILE AND APPAREL INDUSTRY
Textile supply chains compete on low cost, high quality, accurate

delivery and flexibility in variety and volume. Several challenges stand
in the way of Indian firms before they can own a larger share of the
global market:
Scale: Except for spinning, all other sectors suffer from the problem of
scale. Indian firms are typically smaller than their Chinese or Thai
counterparts and there are fewer large firms in India. Some of the
Chinese large firms have 1.5 times higher spinning capacity, 1.25
times denim (and 2 times gray fabric) capacity and about 6 times more
revenue in garment than their counterparts in India thereby affecting
the cost structure as well as ability to attract customers with large
orders. The central tendency is to add capacity once the order has
been won rather than ahead of the demand. Customers go where they
see both capacity and capabilities. Large capacity typically goes with
standardized products. These firms need to develop the managerial
capabilities required to manage large work force and design an
appropriate supply chain. For the size of the Indian economy, it will
have to have bigger firms producing standard products in large
volumes as well as small and mid size firms producing large variety in
small to mid size batches (the tension between the organized and un-
organized sectors will have to be addressed first, though). Then there
is the need for emergence of specialist firms that will consolidate
orders, book capacities, manage warehouses and logistics of order
delivery.
Skills: Three issues must be mentioned here:
80
(a) there is a paucity of technical manpower – there exist barely 30

programmes at graduate engineering (including diploma) levels
graduating about 1000 students – this is insufficient for bringing about
technological change in the sector;
(b) Indian firms invest very little in training its existing workforce and
the skills are limited to existing process (Chandra 1998);
(c) there is an acute shortage of trained operators and supervisors in
India. It is expected that Indian firms will have to invest close to Rs.
1400 bn by year 2010 to increase its global trade to $ 50 bn. This kind
of investment would require, by our calculations, about 70,000
supervisors and 1.05mn operators in the textile sector and at least
112,000 supervisors and 2.8mn operators in the apparel sector
(assuming a 80:20 ratio of investment between textiles and apparel).
The real bottleneck to growth is going to be availability of skilled
manpower.
Cycle Time: Cycle time is the key to competitiveness of a firm as it

affects both price and delivery schedule. Cycle time reduction is
strongly correlated with high first pass yield, high throughput times,
and low variability in process times, low WIP and consequently cost.
Indian firms have to dramatically reduce cycle times across the entire
supply chains which are currently quite high (Chandra, 2004). Customs
must provide a turnaround time of ½ day for an order before Indian
firms can they expect to become part of larger global supply chains.
Indian firms need a strong deployment of industrial engineering with
particular emphasis on cellular manufacturing, JIT and statistical
process control to reduce lead times on shop floors. Penetration of IT
for improving productivity is particularly low in this sector.
Innovation & Technology: A review of the products imported from

China to USA during January–April 2005 reveals that the top three
81
products in terms of percentage increase in imports were Tire Cords &

Tire Fabrics (843.4% increase over the previous year), Non-woven
fabrics (284.1% increase) and Textile/Fabric Finishing Mill Products
(197.2% increase) (FICCI, 2005). None of these items, however, figure
in the list of imports from India that have gained in these early days of
post-MFA. Entry into newer application domains of industrial textiles,
nano-textiles, home furnishings etc. becomes imperative if we are to
grow beyond 5–6% of global market share as these are areas that are
projected to grow significantly. Synthetic textiles comprise about 50
per cent of the global textile market. Indian synthetic industry,
however, is not well entrenched. The Technology Upgradation Fund of
the government is being used to stimulate investment in new
processes. However, there is little evidence that this deployment in
technology has accompanied changes in the managerial regimes – a
necessary condition for increasing productivity and order winning
ability.
Domestic Market: The Indian domestic market for all textile and
apparel products is estimated at $26 bn and growing. While the
market is very competitive at the low end of the value chain, the mid
or higher ranges are over priced (i.e., ‘dollar pricing’). Firms are not
taking advantage of the large domestic market in generating
economies of scale to deliver cost advantage in export markets. The
Free Trade Agreement with Singapore and Thailand will allow overseas
producers to meet the aspirations of domestic buyers with quality and
prices that are competitive in the domestic market. Ignoring the
domestic market, in the long run, will peril the export markets for
domestic producers. In addition, high retail property prices and high
channel margins in India will restrict growth of this market. Firms need
to make their supply chain leaner in order to overcome these
disadvantages.
82
Institutional Support: Textile policy has come long ways in reducing

impediments for the industry – sometimes driven by global competition
and, at other times, by international trade regulations. However, few
areas of policy weakness stand out – labor reforms (which is hindering
movement towards higher scale of operations by Indian firms), power
availability and its quality, customs clearance and shipment operations
from ports, credit for large scale investments that are needed for
upgradation of technology, and development of manpower for the
industry. These are problems facing several sectors of industry in India
and not by this sector alone.
In conclusion, LEAN MANAGENT are developed by sector level firms

and their individual and collective initiatives that secure higher market
share in global trade. While one has to be ever vigilant of non-tariff
barriers in the post MFA world, the new market will be won on the basis
of capabilities across the supply chain. Policy will need to facilitate this
building of capabilities at the firm level and the flexible strategies that
firms will need to devise periodically.
83
CONCLUSION:
Lean cannot be sustained long-term without changing the traditional

measurement and management accounting processes. This paper has
presented the basic elements of an approach that supports the goals of
lean manufacturing and that provides information to maximize the
financial benefits from lean. By implementing the methods in
conjunction with a well designed lean manufacturing initiative,
managements can be assured that lean will become more than an
initiative but a way of managing the enterprise for growth and
profitability.
84
REFERENCE
BOOKS:
Competitive Manufacturing Management – by Nicholas (third reprint

2005)
Tata McGraw-Hill Edition 2001
Publishing Company Limited
7 West Patel Nagar, New Delhi-110 008
Pages refered-
13,15,75,80,90,101,131,186,222,267,269,338,412,555,679
WEBSITES:
www.leaninstitute.com -lean definition, lean principles

www.answers.com -lean principles, kaisen. kanban, TQM
www.industryweek.com- lean management
www.collegescam.com - lean management, lean
production
www.searchCIO.com - lean production, JIT, cell
manufacturing
www.tyslean.com - cell manufacturing, workcells, lean
production
www.whatis.com -lean production
www.stategosinc.com - kaisen, value stream mapping
www.smthacker.com - kaisen, kanban, TQM
85
www.lean.org - lean management, lean production, lean

thinking
lean principles
www.aircad.com - kaisen, kanban
www.isixsigma.com - lean principles
www.inventrysolution.com - lean- 7wastes
www.leanmanufacrutingconcepts.com - lean
manufacturing
www.1000ventures.com - lean management, lean
manufacturing, lean thinking, kaisen, kanban, set-up-
cost reduction
www.maskell.com - lean thinking
www.wikipedia.com - lean management
www.sdmagazine.com - kaisen, kanban, workcells
www.ifm.eng.can.al.uk - lean management
www.wiki.hmccentral.com - lean management, lean
principles
www.stumbleupon.com - lean production
www.leanconstruction.org -lean principles
86

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PRODUCTION METHODS - LEAN MANUFACTURING

2) History of lean management 4

3) What is lean management? 6

4) Goals of lean management 7

5) Lean management concepts 8

6) Flow value from demand 23

7) Benefits of lean production 24

Lean production tools

11) Total Productive Maintenance (TPM) 38

12) Single Minute Die Exchange(SMDE) 40

16) Cellular manufacturing 47

18) Takt Time 62

19) Advantages of Lean manufacturing 67

20) Why is Lean successful? 69

21) Uses of Lean management 73

22) Lean manufacturing in today's world 74

Challenges facing Indian textile and apparel

Lean production is an assembly-line manufacturing methodology

HISTORY OF LEAN MANUFACTURING:

The origin of LEAN MANAGENT comes from the manufacturing

TAICHI OHNO, the owner of Toyota had take-over the challenge of

This system developed in Toyoto from 1949 to 1975 virtually

What is LEAN MANAGEMNT?

Lean manufacturing or lean production, which is often known simply

Lean is a practical and engaging way of breaking the

• Improves the existent process

Lean manufacturing defines the value of a product or a

GOALS OF LEAN MANAGEMENT

The main goals of lean management are given below:

 Eliminate the wastes, which are considered no value to the

LEAN MANGAEMENT CONCEPS

There are a few concepts to be discussed in detail so that the

This is the value we provide to the customers. Value is the complete

CASE IN POINT: XEROX- BACK FROM THE BRINK

Xerox in the early 1980s was disaster, but by 1990 it had

In 1988, the Baldrige Award was the coveted industry prize.

The team dubbed company flaws it encountered as “warts”. A

In November, Xerox got the news: it had won. (By coincidence,

1) Customers define our business.

The Baldrige application process had indeed reenergized the

Value stream recognizes that the company’s processes

In lean manufacturing the wastes are defined as anything

manufacturing does is, it aims at removing the wastes from the

The word over-production can be used to describe a type of

In the bigger picture, this is equivalent to create a product or a service

In much smaller picture, the word over production might mean

Over production accounts to many loses. One is the waste due to

The money and materials invested in by a company in order to

The most common types of Inventory are

Processed components waiting for work to be done on them. This is the

Work In Process (W.I.P.):

This is the most expensive type of inventory as the materials have

TOYOTO cells inventories the root of all evils. It implies that

Inventory is also considered evil because it covers up other

Work in progress or WIP is a direct result of over production and

This waste is often overlooked. When performing a certain

bend or reach to collect some part or to reach a machine. If a time

However well the product is transported, it does not add value

Often in order to achieve the maximum quality or the best

KEY FEATURES OF LEAN PRODUCTION

REDUCED SETUP COST & TIMES (for semi-versatile machinery such

From months to hours thus making small-lot production economically

Allowing higher flexibility & pull production (or just-in-time

EMPLOYEE INVOVMENT & EMPOWERMENT –