LEAN MANUFACTURING.

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Presentation transcript:

LEAN MANUFACTURING

Introduction Modern business model impact on business Business growth – New technologies - Cross border markets Increasing business cost – Lean manufacturing In the last few years, manufacturing industries seen a tremendeious growht and changes in current business operation models which have supplemented or replaced existing models The current high growth rate in business has been elicited by different factors chiefly among them new technologies and globalization which has enabled close border markets. However, increasing cost of operation has inhibited business and to meet business obligation to the stakeholders, the concept of lean manufacturing is becoming more relevant. In nutshell, modern business is much leaner operation hence embracing the concept of lean manufacturing

Definition No conclusive definition Principles Efficiency – Increased value of organization Identify and eliminate wasteful processes Increased innovation and development Due to nature of its origin, it is difficult to come up with a conclusive definition of lean manufacturing However, there are important principles that are inherent in defining lean manufacturing which include: Creation of an increase in value of what the organization offers to customers which embrace the concept of efficiency Identification and elimination of wasteful process and production activities in order to reduce expenditure. This include reduction of waste Increased innovation and development of products WE ARE POWERPOINT PRESENTATION EXPERTS! ORDER NOW! TOPMARKDISSERTATIONS.COM!

Research objectives and Approach Objective – Examine and explore how lean manufacturing instruments can be tailored from discreet to continuous manufacturing setting and assess their impact on business interest Hypothesis – There are immense prospects and opportunities for greater efficiency, improvement, and performance of manufacturing company’s production process in lean manufacturing instruments are used Approach – Methodically establish importance of lean manufacturing tool in production the main Objective is to examine and explore how lean manufacturing instruments can be tailored from discreet to continuous manufacturing setting and assess their impact on business interest Initial Hypothesis is: there are immense prospects and opportunities for greater efficiency, improvement, and performance of manufacturing company’s production process in lean manufacturing instruments are used Approach is to methodically establish importance of lean manufacturing tool in manufacturing process and assist in elimination of waste, establish inventory control, improve product quality, and financial and operational performance (Fawaz, 2003). In the initial stages, the paper will define and outline principles of lean manufacturing including its history, origin, the current scope of application and the supposed features. The paper will then distinguish conventional and traditional lean manufacturing methods. The paper will then look at various LM tools to identify their contribution of efficiency and then the specific opportunities of LM in various industries.

Background and scope Originated from Japan – Scarcity of raw materials and human labor Taiichi Ohno & Eiji Toyoda – Toyota Motor Group Executives Toyota Production System - LM Principle – Reduce waster, produce what customer wants at right time and quantity The concept of lean manufacturing originated from Japan After 2nd world war, Japanese automakers were facing shortage of laborers and raw materials. The two men who are credited with having come up with the concept of lean production were Toyota Motor Group CEO Taiichi Ohno and Eiji Toyoda. The two developed what came to be known as Toyota Production Systems (TPS) which later evolved to Lean Manufacturing. The main intention of the system was to reduce waster to ensure that the company reaffirm its position in the market by increasing its competitive strengths The successful LM production in Japan was replicated in other countries as well. According to Womack and Jones (1994) lean manufacturing is a techinique which is aimed at consuming less input and delivering equal output as a conventional manufacturing process. It entails reduced waste by producing only what the customer want and at the right time and at the required quality. Hence it minimize time of production, labor, floor space, operational costs, and ensure high quality products

Mass Production to Lean Production Mass production – utilize economies of scale Lean Production – Functional efficiency and effectiveness of production system Areas of enquiry: Staff skills Company resources Company system and procedures Audit role, relationships and responsibilities The solitary aim of mass production is to utilize the economies of scale through fully utilization of resources like manufacturing equipments and human labor. According to Cleland (1990, p. 65) the main emphasis of mass product is scale efficiency of production systems. In contrast, the aim of lean production is to increase functional efficiency and effectiveness of the production system. There are four main area of enquiry in Lean Production: A review of staff skills to establish skills needed in the organization and how the contribute to aims and objectives of the organization. Are company resources like data processing equipments and other office equipments enough to enable staff to do their work without wastage Are the company’s systems and procedures adequately streamlined to ensure that there is no duplication and gaps between tasks? An audit of roles, relationships and responsibilities which helps to identify and highlight redundancies and also indicate whether duties and tasks are effectively delivering customer expectations These are the only important areas of lean manufacturing. According to Licker and Lamb (2002) lean manufacturing is much more than manufacturing structures and practices. It is a philosophy and nay a state of mind

Value Chain Analysis Closely linked to value chain analysis (VCA) VCA as a Prerequisite for LM – identify functions not structures of a company Identify processes that add value to customers. VCA – enable manager to identify: Activities close to organizational objectives Cost-intensive activities Activities that create value to customers Lean manufacturing is closely linked and dependant on Value/Supply Chain Analysis. Value chain analysis looks into the work of the organization on what is has to produce, market, deliver and support product offering. All these activities are identified in a chain which gives manufacturing company at picture of what has to be done to satisfy consumers Value Chain Analysis is a prerequisite for lean manufacturing in that it gives priority to identify functions rather than structures of a company. In the process core product manufacturing or service provision are separated from support functions. They are then subdivided in a hierarchical manner (Crookes, 2008, p. 94) Value Chain analysis helps managers to identify: Which activities in value chain are most closely associated with organization objectives Which activities are cost intensive and offer great potential for rationalization Which activities are perceived by customers as creating value, and how communication can be emphasized in the organization

Lean Tools and Techniques Main instruments include: Continuous improvement Cellular manufacturing Waste recognition and elimination Production smoothing Standardization Just-In-Time (JIT) production There are many tools and techniques which are employed in various industries. These tools and techniques changes with organizational model to take advantage of new opportunities. Main instruments include: Continuous improvement Cellular manufacturing Waste recognition and elimination Production smoothing Standardization Just-In-Time (JIT) production

Continuous improvement In Japan – Kaizen or quest for perfection and excellence 5Ss Sort Straighten Sweep & Clean Systemize Standardize This is the foremost factor in lean production. In Japanese language, it is coined from Kaizen which means quest for perfection and excellence. It is systematic approach to steady, logical and excellence The most acknowledged device for the concept are 5Ss namely: Sort – which involves identification, isolation and storage of items which are not frequently used Straighten – Ensure that right items are put in the right place. This is basically allotting and arranging resources and equipments in accordance to their relevant departments and stations Sweep & Clean - This relates to ambience and environment of work stations. This involves keeping the workplace sparkling clean, hygiene, and tidy throughout the work shift including regular maintenance procedures. Systemize – The device recommends assigning of specific individuals with responsibilities for establishment and maintenance of workstation standards and performances Standardize – Falls under management accountability to develop and implement procedures which ensure personnel abide by housekeeping rules through techniques like offering incentives like rewards and others These tools do not only increase organization profit but they also identify strengths and weaknesses and how they match to external opportunities and threats.

Cellular manufacturing The greatest foundation of LM Cell – production tools and stations Enable one-piece flow model Product mix extension Space utilization Reduce transport and communication Teamwork and communication Visibility and flexibility Improved productivity Lead time reduction This has been considered as the greatest foundation of LM. It expands product mix while limiting waste to a minimum The Cell consist of production tools and stations arranged in a manner to enable easy and efficient transition of materials and components in the process (Fawaz, 2003, p. 10) One of the benefits of positioning equipments and woekrs into a cell is that it enables one-piece flow model where each product passess through one unit at a time without disturbances Another advantage is Product mix extension. Customer demand patterns and trends keeps on changing and there is flexibility to accommodate this dynamism (Black and Hunter, 2003, p. 32). Other benefits associated with cellular manufacturing includes: Space utilization Reduce transport and communication Teamwork and communication Visibility and flexibility Improved productivity Lead time reduction

Waste recognition and elimination Key – identifying customer preferences Seven subheadings: Excess production Producing faulty or substandard merchandise Idle inventories Transportation Invisible processing Waiting The key to waste recognition is embedded on identification of customer preferences. Attention must be paid on how current and potential customers make their choice to buy organizational products. According to Hobbs(2003, p. 42) market research data is very important in making buying decision. Licker and Lamb (2000) identifies seven broad headings under the process: Excess production – Manufacturing more than what is requred before it is required is the single greatest waste in manufacturing Producing faulty or substandard merchandise – This hampers flow and affect organizational operation in three major ways including impaired products are recalled or destroyed, such recall has long term damage on consumer confidence, it may result to litigation against the manufacturer Idle inventories - Materials and equipments take up space and cost money to mantain Transportation - Movement of materials from one place to another does not add value of the product from customer perspective Invisible processing – process is not visible by customers is considered waste Waiting – Material next in line is not flowing through value added operations.

Production Smoothing Derived from Japanese Heijunka - keeping levels of production consistent each day TPS – cost minimized by manufacturing parts that could be sold Production plan and timetable must be smooth This concept was borrowed from Japanese Heijunka which means manufacturers trying to keep levels of production as consistent as possible every day. The concept was picked from TPS where the company manufactured only automobile parts which could be sold (Fawaz 2003, p. 19) For this concept to work, production plan and timetable must be smooth to facilitate production of precise quantities to utilize labor. Inconsistent levels of production are likely to result to waste.

Standardization Work standardization – corollary of waste elimination Ensure each duty is performed Standardization – for a specific job, regardless of who is performing it, produce same results. Work standardization is a corollary of waste elimination. It ensures that each duty is performed effectively. Standardization means that for a specific job, regardless of who is performing the duty, the same level of quality should be achieved.

Just-In-Time Production Administrative concept – seeks to abolish wastes Rely on relationship between sales and purchasing department Three aspects JIT production JIT distribution JIT purchasing All elements integrated and synchronized JIT is closely coupled to with LM. It’s a concept that aims at abolishign sources of waste by delivering right component at the right time and in the precise place. It tackles wastes like work-in-process material, product defects, and in-efficient deliveries. Stock materls flow systmes are either push in tradiation system or pull in JIT system (Fawaz, 2003, p. 13) The concept relies on good working relationship between sales and purchasing department in orgnizations. In JIT component suppliers provide components just before they are required which menas there is no need to store them Three main aspects of JIT system including JIT production JIT distribution JIT purchasing JIT elements are integrated and synchronized for effective and satisfactory results.

Opportunities for lean Not all LM instrument can be applied homogeneously LM is beneficial to manufacturing companies Flexibility – Indicates the LM tool to be employed Not al LM instruments that can be applied homogeneously to all industries. Appropriate tools can be categorized based on industrial production process and product features, room flexibility, and innovation experienced Lm is beneficial to manufacturing companies like industries producing textile, metals machines, furniture equipments, and others. A chief indicator of LM tools to employ is flexibility

Conclusion Objective – elaborate the broad philosophy of lean manufacturing and its relevance to production process Discrete industries share common attributes facilitating implementation of LM tools Identification and elimination of wastes Implementation of LM hampered by some barriers Confirmation of the hypothesis The main objective of this study was to elaborate the broad philosophy of lean manufacturing in relation to relevance to the production process. The study showed that discrete industries share some common attributes that facilitate implementation of some LM tools although the extent of implementation depends on type of industry Key aspect of LM is identification and elimination of wastes. The study has shown massive benefits for implementation of LM Implementation of LM is however faced with many barriers including: Union contract and stipulations Changes in evolving trends in management structures Statutory and industrial regulations Inadequate resources at initial stages of implementation. The study has confirmed hypothesis that there are prospects and opportunities for greater efficiency, improvement, and performance in implementation of LM in manufacturing

Future direction Emerging trends in production – higher prospects of LM Conversion of production system to purely pull system Future design - assimilate push and pull system Emerging trends in production system shows higher probability of employing LM in manufacturing A major transformation to be witnessed in future will be conversion of production system to purely pull systems (Morley 2001, p. 27) The future design will incorporate both push and pull systems.

Bibliography of authors Prof. Fawaz Abdullah Jeffery K. Liker and Thomas Lamb Prof. Lerman Crookes Cook Robert Proff. Fawaz Abdullah is the Author of Lean Manufacturing tools and techniques in process industry. Prof with BS Mechanical Engineering and MS Industrial Engineering Jeffery and Thomas authored Lean Shipbuilding. Thomas Lamb has a masters degree in Industrial engineering heading Engineering Department at Michigan University. Jeffery is an Associate professor and hold Ms in Industrial Engineering serving as a technical consultant in U.S department of Energy Proff. Lerman Crooks has won Devimart award bestowed by South African President Thabo Mbeki for his contribution to manufacturing process. Has authored several books Crook Roberts holds honors in Industrial Engineering from Tuskegee Institute. He has authored Schematic assessment of lean tools in steel industry

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