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LEAN
Dr.R.RAJU
ASSOCIATE PROFESSOR
DEPARTMENT OF INDL., ENGG.,
ANNA UNIVERSITY, CHENNAI -25.
INTRODUCTION
Slow processes are expensive and wasteful.
Inventory slows down the process and turns up in high
prices.
A process must deliver many different products with high
velocity, high quality, low cost and minimal invested capital.
The goal of lean is to quickly make to order different
products with low cost.
Henry Ford was the first person to understand the impact of
process speed on cost, the first to understand that
inventory slowed down his process, and that slow
processes are wasteful processes.
INTRODUCTION
Low cost combined with high quality and high speeds
DEFINITION
Lean means speed; it applies to all process.
PURPOSE:
To eliminate wasted time, effort, and material.
To provide customer with make to order products.
To reduce cost while improving quality.
FEATURES OF LEAN
Materials spend more than 95% of its time waiting.
Waiting for value to be added or waiting in finished goods
inventory for a customer.
The goal of lean is to virtually eliminate wait time.
Every operation must be flexible that the actual usage by
the customer crates a demand on the factory to build only
the amount consumed by the customer.
FEATURES OF LEAN
(CONTD)
The lean factory must be flexible to efficiently
FEATURES OF LEAN
(CONTD)
Lean can increase the velocity by a factor of five, so we
Inspect
Drill two
location holes
Rework
Inspect
Bore bearing
hole
Inspect
Inspect
OK
PS WP/CAS/MC/001
Process
Set-up
Number
Operation
Time
(min)
Receive material
Inspect castings
(min)
0
0
60
Time
0
20
(me
600
Inspection
15
20
Inspect
10
20
Rework
20
Loading
30
30
100
Loading
Contd
7.Inspect four drilled/reamed holes
20
20
Inspection
10
20
Rework
30
20
Loading
on the m/c
10.Final inspection
15
20
Parts not
ok are Scrapped
11.Dispatch ok castings to assembly
500
Fork lift
WASTE
Transport
2.
Inventory
3.
Move Or Movement
4.
Waiting
5.
Over production
6.
Over processing
7.
Delay
profit margin
High inventory of raw material/finished goods
Fire fighting on the shop floor
Order lost to a competitor complaints/returns
Competitor bringing new products faster.
ELEMENTS OF LEANMANUFACTURING
Customer value
Value stream
Value flow
Plant layout
Quality of Raw materials
Product quality
Product design
Tooling
Down time
Maintenance
Inventory management
Over time and low productivity
Communication
Customer pull
Perfection by continuous improvement
LEAN PRINCIPLES
Materials usually spends 95% of its time waiting,
dramatically.
Less handling reduces the demand for people
and equipment.
Less cost for storage, floor, and stock room
space.
Fewer customer service activities.
BENEFITS OF SMALL
INVENTORY
Parts shortages caused by inflexible workstations can be
avoided.
There is no need for extra operators, expeditors,
supervision, and overtime.
Cost towards peak capacity of property, plant and
equipment (PP&E), inspection, test and overhead can be
avoided.
There is less likelihood that defects will be shipped to
customers, necessitating expensive field repair and loss
of subsequent sales.
By dramatically reducing overhead cost, managers are
no longer tempted to overproduce to absorb overhead.
following equation:
Delay time = work station turnover time/2
Customer demand rate=min batch size/workstation time.
Delay time = min batch size / 2 x customer demand rate.
Using the equation we can find the delay time in each
work station.
Applying Pareto principle (80/20) the vital few
workstations (20% or less) that have injected longest
delay time can be identified.