1. Lean Manufacturing - OverviewBy
Manish Khairkar
Lean Management Guru

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

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

4. 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

5. 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

6. 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.

7. 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.

8. 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.

9. House of Lean

10. 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

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

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

13. 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

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

15. 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!

16. 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)

17. 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

18. 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

19. 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

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

21. 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)

22. 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.

23. 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

24. 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.

25. 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.

26. 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

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

28. KAIZEN is a Japanese word.

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

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

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

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

33. MURI - INCONVENIENCE Uncomfortable posture
Dependence on strenuous physical work

34. Think of kaizen from 4 viewpoints

35. The way of packing oranges in Japan

36. 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.

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

38. 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

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

40. Safer-2

41. Safer-3

42. Safer-4

43. Safer-5

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

45. 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 .

46. 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.

47. 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

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