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Submitted by: Shweta Tripathi Roll No: 10 PGME17

Lean manufacturing, lean enterprise, or lean production, often simply, "Lean," is a production practice that considers the expenditure of resources for any goal. It start with the customer and the definition of value, therefore as a manufacturing process is a vehicle to deliver value (product) to a customer.

In 1940, Taiichi Ohno started work on Toyota Production System (TPS). By 1980, TPS was adopted by Western Countries in form of LEAN MANUFACTURING. It is a managerial concept rather than technical concept of Mass Production system started by the leader of that era,Henary Ford.

It starts with the customer and the definition of value. As per Lean Enterprise Research Centre, the most production operations involves:
5% activities are value added 35% are necessary non-value activities 65% add no value at all

So lean : Identify both waste and value Develop knowledge management base Realize the sustainable improvement and improve a culture of continuous improvement.

Identification of value for specific customers is the starting point of lean thinking. Value denotes aspect of the product that exactly customer want. For the same product, the value may differ for different customers. For some it may be cost, for another one it may be aesthetics and for any one at may be the performance.

Flow is concerned with process, people and culture and it is appropriate at this stage to mention the work of Goldratt and Cox whos book THE GOAL introduced the theory of Constraint. This theory align with lean thinking. Goldratt and Cox introduced some development of operational rules to guide how a production plant should be operated based on three measurement: Throughput Inventory Operational Expense

The knowledge in the system and in its people, is fundamental to the implementation of lean. Knowledge management is done by:
Reorganization of all resources By deploying multi skilled and cross-functional

team. By sharing knowledge to spread it wider than previously.

Lean thinkers are aiming to perfection and is doing so the improvement cycle is never ending. For lean production, where is the production there is the chance of improvement and in turn more leaning the system.

decreased lead times for customers

reduced inventories for manufacturers

improved knowledge management

Start on a manufacturing process


Build a small cross-functional team Ensure senior management and demonstrate

their support Ensure all change is based upon a structured data comparison process Communicate success effectively

Communicate the sustainable success from the implementation within manufacturing. Review the value chain for specific customer Keep looking for waste. Keep checking of value delivered to customer. Keep controlling the flow. Make these changes continuous. Make it part of the business.

Lean offers performance improvement across the whole supply chain supporting increased business performance. It is a philosophy which has the potential to transform the processing business. By it we can get
Increased supply chain speed Reduced manufacturing cost Increased capital profit

1. Goldratt, E.M. and Cox, J., 1993, The Goal, 2nd edition (Gower Publishing, Aldershot, UK). 2. LERC, 2004, Lean Enterprise Research Centre, Cardiff Business School, www.cf.ac.uk/carbs/lom/lerc. 3. Melton, P.M., 2003, Agile project management for API projects: get agiledeliver faster, Proceedings of the ISPE European Conference,Brussels, Belgium. 4. Melton, P.M., 2004, To lean or not to lean? (that is the question), The Chemical Engineer, September 2004 (759): 3437. 5. PICME, 2004, Process Industries Centre for Manufacturing Industries, www.picme.org.uk. 6. Rother, M. and Shook, J., 1999, Learning to See: Value Stream Mapping to Create Value and Eliminate Muda, The Lean Enterprise Institute, Version 1.2. 7. Womack, J.P. and Jones, D.T., 1996, Lean Thinking: Banish Waste and Create Wealth in Your Corporation (Simon & Schuster, New York, USA).

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