What is lean? Why lean?

Principles of lean Goals of lean Types of waste Lean tools Steps to achieve lean systems

Lean is a systematic approach of eliminating waste so every step adds value for the Customer

Value - A capability provided to a customer at the right time at an appropriate price, as defined by the customer. Cost Quality Delivery

Waste is any activity that consumes time, resources, or space but does not add any value to the product or service.

Lack of funds, resources, time and personnel are the top four constraints that companies experience in achieving measurable improvements in business performance. Lack of Funds Limited Resources Lack of Time Lack of Qualified Personnel 43% 42% 40% 32%

Define value from the customer perspective Identify the value stream Make the process flow Pull from the customer Head toward perfection

Specify value : Specify value from the standpoint of the end customer by product family. Identify the value stream : Identify all the steps in the value stream for each product family, eliminating whenever possible those steps that do not create value.

Create flow : Make the value-creating steps occur in tight sequence so the product will flow smoothly toward the customer. Let the customer pull product through the value stream: Make only what the customer has ordered.

Seek perfection : As value is specified, value streams are identified, wasted steps are removed, and flow and pull are introduced, begin the process again and continue it until a state of perfection is reached in which perfect value is created with no waste.

Improve quality: In order to stay competitive in todays marketplace, a company must understand its customers' wants and needs and design processes to meet their expectations and requirements. Eliminate waste: Waste is any activity that consumes time, resources, or space but does not add any value to the product or service.

Reduce time: Reducing the time it takes to finish an activity from start to finish is one of the most effective ways to eliminate waste and lower costs. Reduce total costs: To minimize cost, a company must produce only to customer demand. Overproduction increases a companys inventory costs due to storage needs.

overproduction (occurs when production should have stopped) Waiting (periods of inactivity) Transport (unnecessary movement of materials) Extra Processing (rework and reprocessing) Inventory (excess inventory not directly required for current orders) Motion (extra steps taken by employees due to inefficient layout) Defects (do not conform to specifications or expectations)

Overproduction : Producing more/sooner than the Internal or External customer needs. Waiting :Long periods of inactivity for people, information, machinery or materials. Transportation :Excessive movement of people, information or materials.

In appropriate processing: Using the wrong set of tools, procedures or systems.

Unnecessary Inventory: Excessive storage and delay of information or products.

Motion : people or equipment moving or walking more than is required to perform the processing. Defects : Frequent errors in paper work,product quality problems etc..

 waste

elimination standardized work poka yoke 5s visual workplace just in time continuous improvement material management work in process

POKA-YOKE- means Mistake proofing.

And it also provides visual or other signals to indicate characteristic state and referred as error proofing .

It is a Japanese word .

 5s

visual work place provide a clean environment .

It is well organized and efficient . provides the organization for preparing a rapid work force .

It

 It

can lead to huge improvements in quality and efficiency .

This method was adopted by Japanese manufacturing company. JIT means making what the market wants, when it want it.

 Continuous

improvement ,in regards to quality and performance . And it also improves customers satisfaction through continuous and incremental approach. And there by removing unnecessary activities and variation .

 It

aims to minimize the work .

It needs to store the inventory . It take time to look above and below work areas for needed storage .

 It

is a branch of logistics and deals with tangible components of supply chain.

It can consolidate and efficiently handle core service . The parts and materials used in supply chain meets the minimum requirements by performing quality assurance .

Lean Thinking diagnostic tool that allows you to: Visualize work See the waste (barriers to flow) Focus on improvements Value Stream = steps (value added and non-value added) that are required to complete a service from beginning to end

Value Added vs. Non-Value Added

Value added activities The customer is willing to pay money for the process Work that changes the market form, fit or function Non-value added activities Should be eliminated, simplified, reduced, or integrated whenever possible Two types of non-value added activities: Required for business Not required for business

Value Added vs. Non-Value Added

Value Added

Continuous focus on increasing value added activities

20%

If value added activities are increased by 10% = gain of only 2%! Focus on reducing non-value added activities by 10% = gain of 8% value added!

80% Non-Value Added

Steps to achieve lean systems

The following steps should be implemented in order to create the ideal lean manufacturing system: Design a simple manufacturing system Recognize that there is always room for improvement Continuously improve the lean manufacturing system design

Design a simple manufacturing system

A fundamental principle of lean manufacturing is demand-based flow manufacturing. In this type of production setting, inventory is only pulled through each production centre when it is needed to meet a customers order. The benefits of this goal include decreased cycle time less inventory increased productivity increased capital equipment utilization
The core of lean is founded on the concept of continuous product and process improvement and the elimination of non-value added activities. The Value adding activities are simply only those things the customer is willing to pay for, everything else is waste, and should be eliminated, simplified, reduced, or integrated. Improving the flow of material through new ideal system layouts at the customer's required rate would reduce waste in material movement and inventory.

There is always room for improvement

Continuously improve
A continuous improvement mindset is essential to reach a company's goals. The term "continuous improvement" means incremental improvement of products, processes, or services over time, with the goal of reducing waste to improve workplace functionality, customer service, or product performance.

SUMMARY

Thank you