Lean Manufacturing - Overview By Manish Khairkar Lean Management Guru

Lean Management Consultant +919422948919 Contact : Manish Khairkar Lean Management Consultant +919422948919 swslean@gmail.com or manishk903@gmail.com Empanelled with 1) Quality Council of India 2) National Productivity Council सूक्ष्म , लघु और मध्यम उद्यम मंत्रालय Ministry of Micro, Small & Medium Enterprises (AN ISO 9001:2008 CERTIFIED ORGANISATION)

Lets Make Lean, Mean, and Green organization Make Sustainability Work for Your Business

being faced by Organizations Challenges being faced by Organizations Major Challenges faced by many MSMEs in India have such as • sub-optimal scale of operation • technological obsolescence • supply chain inefficiencies • increasing domestic and global competition • fund shortage • change in manufacturing strategies turbulent and uncertain market scenario. Manpower issues

LEAN MANUFACTURING The fundamental philosophy behind Lean Manufacturing is to provide superior quality products for more Customers at a significantly lower price and to contribute to a more prosperous society. It is important to build a Company production system based on this philosophy. Lean Manufacturing has endeavored to rationalize production by: Completely eliminating waste in the production/manufacturing/service process To build quality into the process To reduce costs - productivity improvements To develop its own unique approach toward corporate management To create and develop integrated techniques that will contribute to corporate operation. Lean Manufacturing is i) Eliminating waste ii) Built-in Quality into process iii) Unique Culture

The Goals of Lean Manufacturing Cost Reduction by Elimination of Waste Waste only increases cost, never improves value. Reduce costs is to produce only those products determined by sales in a timely fashion in actual to eliminate all waste . Locate waste pragmatically ,analyze and implement cost reduction at each process stage . Identify Waste in 5 M ( Man, Machine, Method, Material & Management ) including hidden. Elimination of waste leads to greater employee work satisfaction and keep motivated . Creating Conditions to Guarantee Product Quality Produce high-quality product in single process flow. The high quality of any product must be built into it at every process stage.

4 Goals of Lean Improve Quality Eliminate Waste Reduce Time • In order to stay competitive in today’s marketplace, a company must understand its customers' wants and needs and design processes to meet their expectations and requirements. Improve Quality Waste is any activity that consumes time, resources, or space but does not add any value to the product or service. Eliminate Waste 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 Time To minimize cost, a company must produce only to Reduce Total Cost customer demand. Overproduction increases company’s inventory costs due to storage needs.

What is Lean Thinking? A systematic approach to identifying and eliminating waste through continuous improvement by delivery of service or product at the pull of customers in pursuit of perfection.

House of Lean

Benefits of Lean Production Reduction in overhead / operating costs Productivity Increase (30% - 40%) Throughput Time Decrease (70% +) Increase Profit Customer Lead Time Reductions (50% +) Work in Process Inventory reductions (70%+) On Time Delivery to customers (95% +) Quality Performance Improvements

Benefits of Lean Production Real Results 50 100 Lead Time Reduction Productivity Increase WIP Reduction Quality Improvement Space Utilization

The Eight Deadly Wastes Overproduction Waiting Transportation (Moving) Non-Value Added Processing Excess Inventory Defects Excess Motion Underutilized Resources

Value Added Activity What is value added activity? 95% Non-Value Added What is value added activity? Tasks that customers recognize as valuable Tasks that are done right the first time Tasks that transform the product or service

Lean Manufacturing Principles Specify Value Identify the Value Stream Make value creating steps flow Let the customer pull product Strive towards Perfection

Lean Manufacturing Principles Specify Value Correctly specifying value is critical in lean thinking Providing the wrong goods or services the correct way is still waste Value must be defined in terms of specific products at specific prices at specific times Only the ultimate customer can define value – but they often don’t know how to do it!

Lean Manufacturing Principles Specify Value Customers and producers must challenge old value definitions and work together to define what is needed – not just a better widget Look at the “whole” product – not just the features, but how it is used – to determine it’s requirements Define the Target Cost (the cost of producing the product waste free)

Lean Manufacturing Principles Identify the Value Stream When the steps for producing a product aren’t identified, they can’t be challenged The purpose of value stream mapping is to identify waste We map the current state and the future (lean) state All value streams have internal (our plant) and external (our plant + suppliers + customers) components

The term “lean” is used because lean manufacturing uses “less”… Lean mean Less The term “lean” is used because lean manufacturing uses “less”… Labor in factory 1 Manufacturing space 2 Capital Investment 3 Material 4 Time between the customer order and the product shipment 5

8 Wastes of Lean “OMIT What U DO” What U Do Waiting Overproduction What Waiting O Motion Underutilized People M U Inventory I Defects Over-processing Do Transportation T

To Reduce Waste Lean Tools used To create Value based better Quality product with Perfection at the Customer Pull

Lean Tools 5S TPM ( Total Productive Maintenance) Just in Time (JIT) Kanban System Cellular Layout Value Stream Mapping Poka Yoke or Mistake Proofing TPM ( Total Productive Maintenance)

The 5S systems is a workplace organization which helps in getting the "junk" out of the work area and set of procedures to keep it that way.5S stands for Sort, Set in order, Shine , Standardize & Sustain. Visual controls such as cartoons, charts, light signals, Lane marking on floor, Safety instructions, Warning signs, Poka-Yoke instructions etc. can be displayed all over the workplace. All verbal instructions should be converted to SOPs to remove dependency on skilled personnel in achieving required product quality level, consistency, effectiveness and efficiency.

JIT is a Japanese manufacturing philosophy to make the right product in right quantity at the right time. This almost results in zero inventory and shortest possible cycle time. In Kanban System, components are pulled by assembly or subsequent work centers and the containers are replenished with the right quantities by the previous work center, which reduces the inventory of unwanted components. Cellular Layout is improved manufacturing system, family wise component completion is aimed at within the smaller self contained cell, which is a part of a big factory, as compared to operation wise completion in traditional functional layout

Value Stream Mapping covers all activities, both value added and non-value added, and helps in arriving at best layout of all resources required for making the product. Poka Yoke is again a Japanese technique used to prevent errors occurring at their source of origin, and it finally leads to a 'Zero Defect' situation. SMED: Applying ingenious methods, setup time is minimized and brought to less than ten minutes; there by smaller batches as required by the customer can be taken up for manufacturing.

TPM involves operators, maintenance staff and management working together to improve overall operation of any equipment. Operators, who first identify noisy or vibrating motors, oil or air leaks, can be trained to make simple repairs to prevent major and costly breakdowns. Kaizen Blitz or Improvement Process is an intense management program, which results in immediate change and bottom line improvement. Both management staff and workers are involved in this.

Lean vs. Traditional Lean Traditional Simple and visual signals Demand driven Inventory as needed Reduce non-value added Small lot size Minimal lead time Quality built Value stream managers Traditional Complex Forecast driven Excessive inventory Speed up value-added work Batch production Long lead time Inspected-in Functional departments

How to implement Lean Tools By doing Continuous Improvements or KAIZENS in all areas of business What is KAIZEN?

KAIZEN is a Japanese word.

What is Industry ? Man-power Products/ Machines Services Materials Input Output Industry Man-power Machines Materials Methods Management (5M’s) Products/ Services 4

What are evaluation criteria for the output ? Q, C, D Input Output Industry Q: Quality C: Cost KAIZEN action D: Delivery 5

MUDA - WASTAGE Excess manpower Unnecessary movement of man, material & vehicles Multiple handling Generation of scrap Rework Unproductive, complicated & lengthy procedures

MURA - INCONSISTENCY Unequal distribution of work Inconsistent quality of components Inconsistent quality due to inadequate foolproofing

MURI - INCONVENIENCE Uncomfortable posture Dependence on strenuous physical work

Think of kaizen from 4 viewpoints

The way of packing oranges in Japan

Orange Packing (1) It is difficult to open a net and put oranges in the net at the same time. I need help. Faster-1 Productivity: 1 net per min.

Orange Packing (2) Cooperation increases a work efficiency. Faster-2 Productivity: 5 nets per min. with 2 workers 1

A selection of better means or a change of current method for achieving an objective. Faster-3 Productivity: 5 nets per min. with 1 worker 2

Objective: Read the gauge to keep the liquid level constant. Safer-1

Safer-2

Safer-3

Safer-4

Safer-5

Operation Improvement Working posture improvement without changing height of work table Can we improve working posture without changing height of work table ?

Provision on roller rack and avoidance of keeping components on floor Better! Provision on roller rack and avoidance of keeping components on floor Keeping parts on floor not only causes quality problems but also makes it difficult to keep the area clean .

Who will help you to Implement Lean Tools An experienced Lean Management Expert who have worked in the industry with hands on Lean implementation to reduce waste. Expert should have experience of implementing Lean tools by transferring knowledge.

What Lean Management Consultants Do Work closely with client Create the lean culture Do Training & Implementation of Lean Tools Create lots of value by eliminating waste Create profits Create world class competitiveness Turnaround business thru continuous improvements Work towards continual improvement of Product Quality

Lets Make Lean, Mean, and Green organization QUESTIONS? Make Sustainability Work for Your Business