Lean 4.

0 – A Conceptual Conjunction of Lean

Management & Industry 4.0- A Holistic
Approach for the Integration of Lean
Manufacturing Tools and Digital Technologies
 HOLISTIC INTEGRATION
Industry 4.0 has begun to move forward, with
autonomous and flexible systems, based on a
technology-driven approach, while LM keeps traditional
processes focused on efficiency.
VSM 4.0 TPM 4.0
Heijunka Poka-
4.0 Yoke 4.0
Kanban
4.0
Just-In- Kaizen
Time 4.0 4.0
SMED
4.0 VM 4.0

5S 4.0

2
Lean & I4.0 Impact on Entire Value Chain
of the business

3
Lean Tools can be optimized by i4.0

WHY, WHAT, HOW

4
Journey of Industrialization – where does
Lean Fit in historically

LEAN JOURNEY

5
 Impact on complete
Product Life-Cycle Management

6
Lean Industry 4.0 Expands the Opportunities for
Operational Excellence and Revenue Growth

7
 High
Maturity Matrix of Lean & Industry 4.0

High on Lean
Low on Digital High on Lean & Digital
<5% of companies
Lean Maturity

<20% of companies
Medium

Low on lean
Low on Lean & Digital
High on Digital
>70% of companies
<5% of companies
Low

Low Medium High

Industry 4.0 Maturity

8
 Points to Ponder- Poll
Will Industry 4.0 technologies replace Lean or will
they co-exist?
Are lean and Industry 4.0 technologies compatible
and share synergies or are they divergent to each
other?
Above all, the overreaching question is, can Lean
keep up with the digital era and evolve into Lean
4.0?

9
 DISCUSSION TOPICS- Context of the lesson
(1) How can LM and I4.0 supplement each other on a conceptual level?
(2) Which I4.0 tools can support specific lean methods?
(3) how I4.0 tools can contribute to optimising specific lean methods?

Limitations of LM and how to

Lean Manufacturing cocepts & Tools overcome through 4.0 and
automation?

Integration -Relationship Matrix

& Attributes, Synergy Points,
Industrial & Technology
Industry 4.0 concepts & Tools Mapping

10
 TRIPLE OBJECTIVES of LEAN
Lean is a set of different synchronized
methods and principles
1. shorter lead time(D) with Q
2. minimized cost( C) and
3. highest attainable quality (Q) F
D C
(3-in 1-TQM,TPM, JIT)
The 4th new weapon is Flexibility (F) due to
customized & fluctuating production demands
11
 Drivers of Lean 4.0
Increase in Variant Diversity

• Complexity of the production environment

• Future Challenges in manufacturing

Toyota Production System (TPS), Lean

Manufacturing
• Reduce waste in the value chain
• Enhance Customer Value & Continual improvement

Industry 4.0- Cyber Physical Systems

• Organise the Value Creation process

• Data Communication in real time

How the two strategies will support,

complement and integrate with each other

12
 Concepts, Pillars & Principles of LEAN

Toyota Production System ( TPS)

• JIT & JIDOKA pillars
• 5S & TPM foundation
Elimination of any type of waste
• aiming to supply the exact quantity of products
required by customers, in the right time and with
the high quality.

Dynamic process

Continuous Improvement Kaizen

Multidisciplinary management practices

Involvment of all employees

13
7 Wastes & Lean Tools

14
 What are the Limitations of Lean?

Due to fixed manufacturing sequences

and slow responsiveness, associated
with increasing pressures from
customer expectations regarding
product variability, LM may not meet
the new needs, and its suitability for
future value chains can be limited.

15
WHAT ARE THE INDUSTRY 4.0 TECHNOLOGIES & BENEFITS
ERA OF CUSTOMISED MFG : DIGITALISATION & AUTOMATION BENEFITS

ADDITIVE ROBOTICS &

SAFETY
MANUFACTU AUTOMATIO QUALITY
RING N

BIG DATA BLOCK PRODUCTIVITY

ANALYTICS CHAIN
COST
AUGMENTED UPTIME
REALITY
DELIVERY
ARTIFICIAL
INTELLIGENC CLOUD CYCLE TIME
E COMPUTING
DIGITALISATI
ON & INDUSTRIAL
FLEXIBILITY
SYSTEM INTERNET OF
INTEGRATIO THINGS FEATURES
N
SIMULATION TRACEABILITY
SOLUTIONS
CONNECTIVITY
VISIBILITY
MOBILITY
DESCRIPTIVE
DATA REALTIME
DIAGNOSTIC
analytics PREDICTIVE
PRESCRIPTIVE

16
Examples of changes with adoption of Industry 4.0

17
 CORE TECHNOLOGY of i4.0
• Internet of Things (IoT)
• the backbone of I4.0 which
allows a Worldwide Data
Communication in real time
and helps connect several
devices to the cloud
• Cyber-Physical-
Systems (CPS)
• hold the potential to reshape
our world with more
responsive, precise, reliable and
efficient systems, enabling a
revolution of "smart" devices
and systems from smart cars to
smart grids. IT- OT INTEGRATION through IoT

18
Cyber Physical Systems (CPS)
 The 3 levels of integration
1) Lean as a Prerequisite &
Lean as an enabler to 4.0
2) 4.0 as an enabler or
catalyst to augment Lean 1
and overcome its
limitations
3) LM & 4.0 together create 2
higher levels of
performance- in Quality, 3
Throughput time, Efficiency
and Flexible manufacturing

20
(1) How Lean Management as enabler towards I4.0

• Standardized, transparent, and

reproducible processes are of
fundamental significance for
introducing I4.0
• Decision-makers require LM
competence for considering
customer value and avoiding waste
• By reducing product and process
complexity, LM enables the
efficient and economic use of I4.0
tools

21
(2) Industry 4.0 Advances Lean Management
The increased flexibility through I4.0 helps to cope with
the rising complexity.

Moreover, I4.0 is promising to cope with a fluctuating

market demand superior to a leveled production in LM.

The economic production of goods in a lot size of one is a

way to enhance production economies beyond traditional
economies of scale.

22
(3) I4.0 and Lean can coexist and support
each other

Commonalities of LM and I4.0

23
 Synergy of Improvement Potential
LEAN OPTIMISATION ALONE LEAN INDUSTRY 4.0 GENERATES BENEFITS BEYOND
~15% cost reduction THOSE THAT EITHER APPROACH ACHIEVES
SEPARATELY-Up to 40%cost reduction
• Single Lean Flow • Real-time data enables a flow-oriented layout
Oriented Layout • Workers are supported by Robots
• Workers follow SOP • Robots perform efficient changeovers
to improve efficiency • Vision based quality control
• Ergonomic workstations
promote safety
INITIAL STATE
 Multiple process INDUSTRY 4.0 ALONE
flows
 Different layouts and ~10% cost reduction
• Sensors enhance safety
processes
 High level of manual
• Workers follow digital SOPs • Workers follow digital SOPs
• Robots support workers
Labor • Cameras support data-driven quality • Robots automate material handling
 Poor quality that control • Predictive Autonomous maintenence
forces frequent • Robots perform efficient changeovers
rework • Robots automate material handling
• Predictive algorithms improve
autonomous maintenance Sensors
• But process inefficiencies and quality Production Flow -Smart Machinery- Worker -Sensor -Data connectivity
issues persist

BCG ANALYSIS

24
 CONCEPTUAL CONJUNCTION OF
I4.0 TOOLS & LEAN METHODS
Lean methods JIT/ Hei- TPM VM Poka-
I4.0 tools JIS junka Kanban VSM 1* 2** 3*** SMED 5S Zoning Andon yoke

Additive manufacturing (AM) x x x

Plug and play x x

Automated guided vehicles (AGV) x x

Human-computer interaction (HCI) x x x x x x x

Virtual representation (e.g. VR, AR) x x x x x x

Intelligent bins x x

Auto-ID x x x x x x x x

Digital object memory x x x x

Digital twin/simulation x x x x x x x x

Cloud computing x x x x x

Real-time computing x x x x x x x x x x x x

Big data & data analytics x x x x x x

Machine learning x x x x

* Autonomous Maintenance, ** Planned Maintenance, *** Early Product and Equipment Management

25
7 Wastes & Industry 4.0 Technologies

26
 Contact me for further
mentoring to implement
Lean 4.0

A.N.Chandramouli CEO
ANCM Management Consultants
#39, Chaitanya Greenford One, Kadugodi, Bangalore -560067
anchandramouli.58@gmail.com, +91 9611763479

Business Coach & Trainer - Manufacturing Start-ups

Project Management - Operational excellence - Smart Manufacturing
B2B Marketing - Quality Management Systems - Academia & Skill Institutes