Report on

Lean Manufacturing

Submitted To Submitted By

Dr. Manish Gupta Sampat Kumar

Associate Professor 2020PR16

Department of Mechanical Engineering M.Tech ( 1ST Sem)
What is Lean ?
“Providing total satisfaction to your customers by pulling value from the value stream when required by
your customers using the minimum amount of resources. This is achieved through the involvement and
respect of all employees and is a never-ending journey towards perfection.”
It is difficult to define Lean in just a few sentences as Lean encompasses so much. Lean is about creating
value, it is about customer service, it is about revolution and evolution of your systems and processes, it is a
journey towards success.
If you want your company to thrive not just struggle to survive in this global economy then Lean techniques
are core.”—Lean Manufacturing.org

 Lean is not a set of static tools that can be applied according to a set formula but a philosophy of identifying
customer’s perceived value and then providing it in the most economical way possible at their demand.

Lean Makes us Profitable

By employing lean we remove all of the wasteful processes and focus only on providing the customer value;
anything that does not provide the customer value is removed or minimized.
A traditional view of profit is one where we base our selling price on our costs plus our profit;

Selling Price = Profit + Costs

However, as Taichii Ohno one of the main architects of the Toyota Production system argues; if the
customer perceives our product or service to have a specific value they will only pay accordingly. If we raise
our prices because our costs increase but the perceived value of our product remains the same our customers
will stop buying as our selling price exceeds the value that they perceive.
So Taichii Ohno and Toyota look at profit and costs in the following way;

Profit = Selling Price – Costs

The selling price is the price that is fixed by what the consumer is willing to pay for the perceived value of
the product, your profit therefore will depend on how you can reduce your costs. Therefore, the aim of Lean
and the Toyota Production System is to reduce costs so that the company can make a profit, not to
manipulate your selling price to create a profit.

History of Lean Manufacturing

 Henry Ford was the first to truly integrate a production system called ‘mass-production’, which
manufactures large quantities of standardized products. Ford created what he called a flow production,
which involves continuous movement of elements through the production process. Ford used mass
production to fabricate and assemble the components of his vehicles within a few minutes rather than hours
or days. Unlike craft production, the mass production system delivered perfectly fitted components that are
interchangeable. This process was very successful and allowed the Ford Motor Company to produce over 15
million Model T cars between 1908 and 1927. During World War II, the US military adopted Ford’s mass
production system.

In 1926, Sakichi Toyoda founded the Toyoda Automatic Loom Works. Several years later, the company
changed its name to Toyota when it began producing automobiles. In 1950, Eiji Toyoda, the nephew of
Sakichi, participated in a three-month visit to the Rouge plant of Ford in Dearborn, Michigan. At the time,
the Dearborn facility was Ford’s most complex and largest manufacturing facility. It produced nearly 8000
cars per day while Toyota only produced 2500 cars each year.

After studying Ford’s production system, Eiji Toyoda understood that the mass production system employed
by Ford cannot be used by Toyota. The Japanese market was too small and diverse for mass production. The
customer’s requirements ranged from compact cars to the most luxurious vehicles. Ford’s mass-production
system focused on the amount of production instead of the customer’s voice. Toyota collaborated with
Taiichi Ohno to develop a new means of production. They concluded that through right-sizing machines for
the actual required volume and introducing self-monitoring machines, they can make products faster, lower
in cost, higher in quality, and most importantly higher in variety! Ohno faced the challenge of trading off
between productivity and quality. His experiments led to developing several novel ideas that became known
as the ‘Toyota Production System.

Goal of Toyota production system

 Eliminating waste

 Streamlining processes

 Increasing efficiency

 Improving productivity

 Respecting people

 Pleasing the customer

TPS + Lean Manufacturing

The term "Lean manufacturing" emerged in the late 1980s among researchers, writers, and consultants who
had studied the way automobiles were produced in Japan. In fact, several books published in English in the
nineties helped spread TPS ideas around the world, and today, companies in a wide variety of industries and
countries utilize Toyota's methods.

It must be noted that the Toyota Production System directly influenced the creation of Lean manufacturing.
The two systems are similar but different in that Lean manufacturing puts the customer, workflow, accuracy,
and relationships first while TPS puts respect for employees and continuous improvement first. Many of the
same components as waste elimination and Continuous improvement are present in both strategies, but each
of their priorities are slightly different. Lean manufacturing was intended to be the generic version of TPS
for businesses to learn and implement into their own facilities. As time went by the interpretation of Lean
manufacturing morphed into what it is today

Muda, Muri and Mura The Wastes of Lean

Waste is anything that adds no value to your process or products. If it is not something that the customer
would be happy to pay for then it should be something that you should strive to remove.
Toyota look at three main areas of waste and identify them as the 3M’S or Muda, Mura and Muri.

 Mura: This is the waste of inconsistency or unevenness. This can be seen in peaks and troughs in the
demands on our time.
 Muri: this is the waste of overburden. This is the stress that we create on our employees and
processes through excessive demands, lack of training, poor instructions and a host of other issues.
 Muda: this is more traditional identification of waste that most people identify with.

Waste of Lean

The seven wastes of lean are:

TIMWOODS

 Transport: the movement of goods from one location to another.

 Inventory: from finished goods stocks to work in progress (WIP) and raw materials.
 Motion: the movement of a person or a machine within the operations.
 Waiting: time spent idle and unproductive.
 Overproduction: producing something that is not actually required now.
 Over-Processing: doing work that is beyond what is actually required.
 Defects: all of the rejects and rework that may be produced.

In Addition, the following are often added to create the 8 wastes of lean or more:

 Talent: this is the failure to use the skills and knowledge of your employees.
 Resources: using power, water and other resources unnecessarily.
 By-Products: not making use of anything left over within your processes
Lean Manufacturing Principles

Five Fundamental Principles are mentioned below:

1. Identify Value
2. Map Value Stream
3. Creat Flow
4. Establish Pull
5. Seek Performance

Identify Value

 the organization needs to understand the value that is defined by the customer in
their products and services and they are willing to pay.

 As a manufacturer or service provider, we have to focus on eliminating waste and optimize the
cost of our product or service so that we can easily meet the customer's required price and we can
have a business

Map Value Stream

 Value Stream Mapping is related to analyze and improve the flow of information in the case of the
service provider and it refers to the §ow of material in case of a manufacturer of a product.

 In this method, we have to identify the wastes related to material or information flow and eliminate
it from the system.

 The VSM Study includes the product's entire lifecycle, from raw materials to disposal of the final
product.

 As an organization, we have to analyze each stage of the process and identify all non-value added
activities and eliminate them from the system.

Creating flow 
  After the above waste is removed from the process, the facility must focus on ensuring the steps run
smoothly. Training employees that can do several tasks, breaking down and reconfiguring production
steps, and improving workloads can help with this.

Establishing pull 

 Here the goal is to have just enough inventory and WIP items to create a smooth process flow. This
strategy is also known as a Just-in-Time production process.

Aiming for perfection 

 All employees must strive to perfect the above four principles to change the work culture into one
that prioritizes continuous improvement. This is arguably the most important objective of all.

Lean Manufacturing Tools

 5S Methodology

 Kaizen (Continuous Improvement)

 PDCA Problem Solving

 Jidoka

 Single piece fow (One Piece Flow)

 Poka-yoke (error-proofing)

 Pull System/Kanban (Just In Time - JIT)

 Heijunka (leveling or balancing)

 Takt Time

 Andon

 Hoshin Kanri

 Overall Equipment Effectiveness (OEE)

 Cellular Manufacturing

 Total Productive Maintenance (TPM)

 Total Quality Management (TQM)

 SMART Goals

 Key Process Indicators (KPIs)

 Single-Minute Exchange of Die (SMED)

 5 Whys | Why Why Analysis

  Quality at Source

 Process Standardization

Kaizen or continuous improvement

 Kaizen stands for “continuous improvement” or “small incremental improvements” of all areas of a
company.
 Kaizen word comes from the Japanese words “kai” which means “change or improvement” & “zen”
which means “for betterment.”
 The Lean tool Kaizen includes the involvement of all employees, from top management to bottom
personnel.
Benefits of Kaizen:
 It Improves processes by eliminating waste.
 Promotes personal growth of employees and the company.
 Kaizen Improves quality, safety, cost structures, delivery, environments and it improves customer
service/satisfaction.

How to implement Kaizen at our workplace:

 The Kaizen method is generally implemented in 5 different steps.
 Identify an area having a problem.
 Analyse the data and method for the current process method.
 Testing and evaluating improvement possibility

Kanban

 Kanban means Signboard or Billboard.

 Kanban is a scheduling system for lean manufacturing and just-in-time manufacturing (JIT).

 It takes its name from the cards that track production within a factory.

 Kanban controls the inventory level at any stage of production.

Benefits of Kanban:

 Kanban improves manufacturing efficiency

  One of the main benefits of kanban is to establish an upper limit to work in process inventory to
avoid overcapacity.

 Kanban is an effective tool to support the running production system.

 Kanban reduces wastes.

5S Methodology

5S is a simple tool for organizing your workplace in a clean, efficient and safe manner to enhance your
productivity, visual management and to ensure the introduction of standardized working.

5S is a methodical way to organize your workplace and your working practices as well as being an overall
philosophy and way of working. It is split into 5 phases, each named after a different Japanese term
beginning with the letter “S”; (Seiri, Seiton, Seiso, Seiketsu, Shitsuke) hence the name 5 S.

5S is also known in some quarters as 5C, with the “S” words replaced by

 Clearing,
 Configure,
 Clean and Check,
 Conformity and finally
 Custom and practice.

CANDO is;

 Cleanup,
 Arrange,
 Neatness,
 Discipline, and
 Ongoing Improvement.

5S Seiri or Sort
 
 5S Seiri removing Clutter
 
5S Seiri or Sort is the first step in 5S, it refers to the sorting of the clutter from the other items within the
work area that are actually needed. This stage requires the team to remove all items that clearly do not
belong in the working area and only leave those that are required for the processes in question.
 5S Seiton or Straighten / Set in order
 

5S Seiton organized workspace

 
 
5S Seiton or Straighten is the process of taking the required items that are remaining after the removal of
clutter and arranging them in an efficient manner through the use of ergonomic principles and ensuring that
every item “has a place and that everything is in its place.”
 5S Seiso or Sweep / shine
 

5S Seiso Cleaning or Sweep

 
 5S Seiso or Sweep is the thorough cleaning of the area, tools, machines and other equipment to ensure that
everything is returned to a “nearly new” status. This will ensure that any non-conformity stands out; such as
an oil leak from a machine onto a bright, newly painted clean floor.
 5S Seiketsu or Standardize
 
 5S Standardize – Seiketsu
 
5S Seiketsu or standardize is the process of ensuring that what we have done within the first three stages of
5S become standardized; that is we ensure that we have common standards and ways of working. Standard
work is one of the most important principles of Lean manufacturing.
 5S Shitsuke or Sustain

5S Sustain – Shitsuke
 
The final stage is 5S Shitsuke or sustain, ensuring that the company continue to continually improve using
the previous stages of 5S, maintain housekeeping, and conduct audits and so forth. 5S should become part of
the culture of the business and the responsibility of everyone in the organization.

Cellular Manufacturing
Cellular Manufacturing- is a lean manufacturing approach that helps companies to build a variety of
products for their customers with as little waste as possible. In cellular manufacturing, equipment and
workstations are arranged in a sequence that supports a smooth flow of materials and components through
the process, with minimal transport or delay.

 Cellular Manufacturing is creating process flow by dividing the full process into small subprocesses
or steps.

 This small sub-processes or steps are called cells.

 By combining these cells are called cellular manufacturing.

 In Cellular Manufacturing the similar products are produced in the same cell.

 The product moves through the whole process without any stoppage or any interruptions.

 Commonly the cells are arranged in a "U-shape" design, this design allows a supervisor to move
less and have more watch over the entire process

Benefits of Cellular Manufacturing:

 Cellular Manufacturing improves productivity and output.

 Cellular Manufacturing reduces rejection and optimizes the floor space.

 Quick change over possible.

 We can make a wide range of similar products in a single line.

 Reduce lead time.

 Enhance teamwork and communication between employees

Value Strem Mapping Study (VSM)

 PCE = Value added time/ Total lead time

PCE= process cycle efficiency

Value stream mapping (VSM) is a lean manufacturing tool that seeks to map your process from supplier to
customer, highlighting the flows of product and information and identifying delays and non-value adding
processes.

This is one of the most powerful and yet easy to use mapping tools at your disposal and can lead to a rapid
and significant improvement to your business if action is taken following the mapping exercise.

VSM is not just about creating one map; it is about discovering where we are today with a current value
stream map and using the team to create an ideal state value stream map as a target to aim for whilst creating
a series of future state maps to work towards on the journey to our ideal state.

What do we Map?
 Value stream mapping is usually conducted on a single product or family of products from supplier through
to customer. Where we have multiple products it is tempting to try to map them all but this would just result
in information overload.
The team should choose one product or family on which to create the map, any improvements made on this
value stream can then be used as a template to improve other value streams. At times it is difficult to find
product families if you have a large number of individual products. Product family analysis is a useful tool
to use to find the similarities between products to allow the creation of families.
 How do we VSM ?
 Value stream mapping is a team process that should take place at the gemba (the workplace), not within an
office by an expert using data from written procedures about what should happen. Your value stream map
should reflect exactly what does happen along with real current data regarding stock levels, delays, change
over times, quality levels and so forth. It is this map that will form the basis for your improvements.
Some common data collection points for Value Stream Mapping are:
 The time is taken by one product or to pass one product from one station to the next station
 Level of Inventory
 Number of operators
 A number of shifts worked
 Batch size
 Change over and delivery time
 Productivity etc.

Ideal and Future state Value stream maps

 
Once you have your agreed version of your current state map it is time to move directly onto creating your
ideal and future state maps.
The ideal state value stream map requires a firm understanding of lean manufacturing principles to enable
the team to visualize an ideal lean process. This would often be a single dedicated cell controlled through a
pull kanban system rather than a grouping of shared processes each scheduled from an MRP system pushing
product onto the next process, with daily or even hourly deliveries to customer and from supplier. The
ultimate ideal of course being single piece flow at the demand of the customer (JIT).
Often it is impossible to jump straight from the current state to the ideal so the team needs to agree a future
state map to work towards on the journey to the ideal state. This then becomes the basis for an action plan;
you may wish to first work at standardizing and improving processes to improve cycle times and reduce
defects or whatever the most pressing issue is for your business highlighted on your VSM.
This is a case study that is on you tube, I have attached it with calculation.

TXM Lean Case Study – Lean Transformation for Abrasives Manufacturer

Client A Global Leading Abrasives Manufacturer

Location Shanghai, China

The Challenge

Our client Shanghai plant has operated for more than 20 years with an enormous range of products using a
complex process. With a new senior management team, their objective was to be number one in the Asia
market within 3 years.
However, to achieve this objective there were some obstacles that needed to be addressed this included:
 long lead time lead to late deliveries (On time delivery was less than 80%).
 more than 100 tons WIP in finishing areas.
 lack of standardisation.
 poor equipment maintenance.
 lack of people engagement and strong resistance to improvement and change.
The TXM Solution
 TXM helped client company to select 2 pilot projects to do before addressing the whole plant Lean
transformation.
 The two pilot projects selected were 2500T press TPM and finishing line 3.
 TXM assisted 2500T press TPM project team members to identify abnormalities of the pilot
machine, establishing focused improvement teams which tackled equipment frequent issues. 
 A Tee cards system was established to manage operators’ daily autonomous maintenance activities.
 Finishing line 3 projects started with 5S.
 After good habits were established using 5S.
 TXM introduced continuous flow and FIFO (First in first out) to make the products flow through the
line.
 After the two pilot projects were completed, TXM assisted Our client to develop VSM future state
map and a A3 action plan to achieve it. The methodology used entailed applying TXM MAP
(Manufacturing Agility Process) to improve overall production flow.
  TXM also coached Our client using TXM LDLP (Lean Daily Leadership Process) to create a Lean
culture in Our client. This included using visual management boards, Leaders standard work and
Lean daily meeting

The result

 After one year applying Lean methods, c Shanghai plant achieved breakthrough achievements,
including:
 Reducing manufacturing lead time from 14.6 days to 10.8 days.
 Reducing inventory by RMB 1.3 million.
 Improving OTD (On time delivery) by 34.1%.
 Increasing efficiency by 10.7%.
 Reducing defects by 41.5%.
References

1) https://en.wikipedia.org/wiki/Lean_manufacturing
2) https://leanmanufacturingtools.org/
3) https://txm.com/
4) https://www.nikunjbhoraniya.com/
5) https://theleanway.net/home
6) https://refinedimpact.com/
7) https://www.tasteofhome.com/collection/facts-about-piggly-wiggly/
8) https://www.researchgate.net/
9) https://www.researchscholar.co.in/