Lean Manufacturing System: Program Objectives

Lean Manufacturing System
Introduction
Module - 1
Quality Growth Services
Program Objectives
To present
Lean Manufacturing philosophy
Lean Thinking as a proven strategy for managing
plants and factories.
Underlying principles
Various Lean tools and practices
To Learn in detail the tool of Value Stream Mapping
November 08, Quality Growth Services. Unpublished proprietary work available only under license. All rights reserved.
ULTIMATE GOAL OF AN ORGANIZATION
Rate of Improvement matters.
Rate of Improvement matters
Preferable
Quality
Preferable
Price
Preferable
Product
Ability to
customize
Availability
What is the real Challenge?

To produce
what the customer wants,

when the customer wants it,
at a price the customer is willing to pay
and,
Flexibility
Scenario
CRAFT MANUFACTURING - Late 1800s
Car built by workers who walked around the car
Built by craftsmen with pride
Components hand-crafted, hand-fitted
Preferable
Preferable
Quality
Quality
Preferable
Preferable
Price
Price
Preferable
Preferable
Product
Product
Ability
Abilitytoto
customize
customize
Availability
Availability
10
Scenario
Mass Production: Assembly Line
Year : 1910,
Lead : Henry Ford
Approach:
Arrange the elements of a
manufacturing system-people, machines, tooling,
and products in a
continuous system
Model : Ford T
11
Scenario: Mass Production
simplistic jobs,
no pride in work
Preferable
Preferable
Quality
Quality
Low skilled labor,

Preferable
Preferable
Price
Price
Interchangeable parts
Affordably priced
Millions produced - identical
Preferable
Preferable
Product
Product
Ability
Abilitytoto
customize
customize
Availability
Availability
12
Customer Expectation
Much better quality

More customized variants
Just-in-time delivery
Shorter lead times
And freedom to order in small quantities
..At Lower & Lower Prices
13
Industry Trends

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Customers expect 100%

Quality

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Cost vs. Selling Price
Profit
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Loss
How to survive?
15
How to survive?
A need for change from
OR
to
AND
philosophy
16
How to survive?
During 1970s, Japanese were redefining the
manufacturing paradigms.
Began to incorporate quality
into cost
focused strategy.
Discovered the power of
FLOW
Use of TIME as a new competitive dimension
Toyota Production System was born.

17
What if Flow is not proper?

Traffic jam
Trains/ flight not on time
Blood pressure
Heart attack
Flood/ draught
High Inventory
High lead time
Increased cost
What else
18
Toyota Production System
19
Toyota Production System: Taiichi Ohno

All we are doing is looking at the time line from the
moment the customer gives us an order to the point
when we collect the cash.
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20
10
Toyota Manufacturing
Cells or flexible assembly
lines
Broader jobs, highly skilled
workers, proud of product
Low lead time
Excellent quality mandatory
Costs being decreased
through process
improvement.
21
What is Lean Manufacturing?

During 1980s Americans realized that the
things are not the same anymore.
Japanese were not only making better
cars, they were also doing it cheaply.
Toyota was making cars in America at
25% less cost.
Severely denting American market share.
22
11
Lean Manufacturing
An outcome of study of Toyota Production
Systems,
by a team of researchers in USA,
led by James Womack & Daniel Jones.
The first book was published in 1990 as

The Machine That Changed the World
23
Lean Manufacturing
Popularized by another book in 1996.
Lean Thinking - Banish Waste
and Create Wealth
in Your Corporation.
24
12
Definition of Lean
Containing little or no fat
The term lean is used because
Lean manufacturing uses less
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Manufacturing space
Capital investment
Materials
Time between the customer order and the
product shipment
25
Lean Manufacturing: Purpose

To make your company strong and fast.
Strong = High performance, repeatable performance
Fast = Easily adapts to fluctuations in market
conditions
Note :Reduced operating costs and improved customer

satisfaction are natural by-products of being Lean
26
13
Lean Manufacturing: Philosophy

A manufacturing philosophy that demands
shorter lead times to deliver
high quality,
low cost products through
improved flow in the value stream.
27
Lean Manufacturing
28
14
Lean Manufacturing: System

An integrated system to ensure
Value for the customer
Improvement in flow in
Product development,
process engineering,
operations management &
corporate governance processes
Respect for people
CUSTOMER
Highest
satisfaction
of needs
PROCESS
29
WORKER
Machine
1
Machine
2
Machine
4
Machine
3
Total elimination of
muda or waste
Respect for
human dignity
30
15

Lean Manufacturing System: Program Objectives

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Lean Manufacturing System

Quality Growth Services

ULTIMATE GOAL OF AN ORGANIZATION

Rate of Improvement matters.

Rate of Improvement matters

ULTIMATE GOAL OF AN ORGANIZATION

ULTIMATE GOAL OF AN ORGANIZATION

ULTIMATE GOAL OF AN ORGANIZATION

What is the real Challenge?

what the customer wants,

Scenario: Mass Production

Low skilled labor,

Much better quality

..At Lower & Lower Prices

Customers expect 100%

Cost vs. Selling Price

Discovered the power of

Use of TIME as a new competitive dimension

Toyota Production System was born.

What if Flow is not proper?

Toyota Production System

Toyota Production System: Taiichi Ohno

What is Lean Manufacturing?

The first book was published in 1990 as

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Lean Manufacturing: Purpose

Note :Reduced operating costs and improved customer

Lean Manufacturing: Philosophy

improved flow in the value stream.

Lean Manufacturing: System

Respect for people

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