LEAN MANUFACTURING

Reported by:

Uly Reyes & Mheng Banzon

 What is LEAN MANUFACTURING?
A systematic approach to the identification and
elimination of all forms of waste from the value
stream.
A systematic approach to identifying and eliminating
waste (non-value-added activities) through
continuous improvement by flowing the product
through flow processes based on a signal from the
customer.
 What is LEAN MANUFACTURING?
Lean is a Team Based continuous improvement
process designed for long term maximization of
company resources.
Lean is an approach to achieving manufacturing
excellence based upon the continued elimination of
wastes.
 Waste is defined as activities that do not add value to the product.
 One page overview
The purpose of Lean is to remove all forms of
waste from the value stream.

The chief obstacle is the fact that wastes often

hides in plain sight, or is built into activities.
 wastes
Definition:
Anything that doesn’t add value to the process.
Anything that doesn’t help create conformance to the
customer’s specifications.
Anything your customers would be unwilling to pay
you to do.
 3 m’s of lean
1. Muda (waste) – non-value adding
work
2. Muri – overburden; is all the
unreasonable work that
management imposes on workers
and machines because of poor
organization.
3. Mura – unevenness; inconsistency
in physical matter
 sources of wastes

1 OVERPRODUCTION
The word over production can be
used to describe a type of waste
which is in most of the places and
we never think this as a waste. This
is producing something before it is
actually required.
Causes for overproduction
Just-in-case logic
Misuse of automation
Long process setup
Unleveled scheduling
Unbalanced work load
Over engineered
Redundant inspections
 sources of wastes

2 WAITING
In conventional batch processing, some
studies show that 90% of the time goods
are waiting to be processed. Some even say
this is higher as 99%. Even a single minute
lost in waiting can not be recovered in the
process there after. Think carefully. Analyze
how long the products are waiting against
the time used for processing them.
Causes of wait time wastes
Unbalanced work load
Unplanned maintenance
Long process set-up times
Misuses of automation
Upstream quality problems
Unleveled scheduling
Poor Communication
 sources of wastes

3 TRANSPORTING
No matter how well you do
transporting. It does not add value to
the end product. Therefore simply
transportation is one of the wastes that
have to be eliminated from the
production system. Transportation
often caused by poor work place
organization.
 Causes of transportation waste

Poor plant layout

Poor understanding of the process flow for
production
Large batch sizes, long lead times, and large
storage areas
 sources of wastes

4
PROCESSING
This is the using incorrect tools
for the job. This does not mean
that you should use complicated
or expensive tools to do the job. It
is about using the correct tool for
the correct job.
 Causes of over processing wastes

 Product changes without process changes

 Just-in-case logic
 True customer requirements undefined
 Over processing to accommodate expected downtime
 Lack of communication
 Redundant approvals
 Extra copies/excessive information
 sources of wastes

5 INVENTORY
Represents the material between
operations due to large lot
production or processes with long
cycle times .

One of the most frequent types of

waste and one of the most expensive
to have.
 Causes of excess inventory
 Compensating for inefficiencies and unexpected problems
 Product complexity
 Unleveled scheduling
 Poor market forecast
 Unbalanced workload
 Unreliable shipments by suppliers
 Misunderstood communications
 Reward systems
 sources of wastes

6 MOVEMENT
This waste is often overlooked. When
performing a certain task people have to
repeat their motions again and again.
Although we do not realize, in many places
people will have to move, bend or reach to
collect some part or to reach a machine. If a
time study can be done to check the
percentage of the time for these unnecessary
movements, you will see it is actually very high
than you think.
 Causes of motion wastes

Poor people/machine effectiveness

Inconsistent work methods
Failure to take ergonomic issues into consideration
Poor facility or cell layout
Poor workplace organization and housekeeping
Extra "busy" movements while waiting
 sources of wastes

7 DEFECTS
In the case of services this is the poor quality
of the service. Defects call for higher
inspection and related costs. If you find a
defect, you will have to remove it. The raw
materials, time, effort and the money put in to
this product will be wasted. Even worst, if this
defected product goes to the customers hand
you will loose the image for your organization.
 Causes of scrap or rework

 Little or no process control

 Poor quality standards or inconsistent quality standards
 Lack of or little planned equipment preventive maintenance
 Inadequate education/training/work instructions
 Product design (Process cannot produce to quality)
 Customer needs not understood
 Types/sources of wastes

8 TALENT
Most of the times the human talents are
deteriorated because they are not identified by
the decision makers. Decision makers do not
have the mind set of managing human resource
productively. Also most of the organizations do
not have a proper system to use the talents of
the people. They also do not have a good
motivation and rewarding system for the
talents. If people are not being rewarded, they
will not come out with their full potential.
 Causes of people wastes
Old guard thinking, politics, the business culture
Poor hiring practices
Low or no investment in training
Low pay, high turnover strategy
Management thinking it has to “drive” everything
instead of involving those who know the process the
best
 4 Steps in implementing lean
1. Identifying the fact that there are
wastes to be removed
2. 2. Analyzing the wastes and
finding the root causes for these
wastes
3. 3. Finding the solution for these
root causes
4. 4. Application of these solutions
and achieving the objective
 Jit / lean production
A highly coordinated processing system in
which goods move through the system, and
services are performed, just as they are
needed.
JIT is interchangeable with lean production
JIT uses pull (demand) system
 Jit – a pull system
In a push system, we look at the schedule to determine
what to produce next.
In a pull system, such as JIT, we look only at the next
stage of production and determine what is needed
there, and then we produce only that.
As Robert Hall states, “You don’t never make nothing
and send it no place. Somebody has got to come and
get it”.
 Jit – a pull system
Material is pulled through the system when needed
Reversal of traditional push system where material is
pushed according to a schedule
Forces cooperation
Prevent over and underproduction
While push systems rely on a predetermined schedule,
pull systems rely on customer requests
 cHanges required for jit
 JIT requires certain changes to the factory and the way it is
managed:
 Stabilize production schedules
 Make the factories more focused
 Increase work center capacities
 Improve product quality
 Cross-train workers
 Reduce equipment breakdowns
 Develop long-term supplier relations
 Elements of jit manufacturing
 Eliminating waste
 Enforced problem solving and continuous improvement
 People make JIT work
 Total Quality Management (TQM)
 Parallel processing
 Kanban production control
 JIT purchasing
 Reducing inventories
 Working toward repetitive manufacturing
 Problem solving and continuous improvement

 JIT is a system of enforced problem solving.

 One approach is to lower inventory gradually to expose problems
and force their solution.
 With no buffer inventories to rely on in times of production
interruptions, problems are highly visible and cannot be ignored.
 The job of eliminating production problems is never finished.
 Continuous improvement - a practice the Japanese call kaizen - is
central to the philosophy of JIT.
 Uncovering production problems

 We must lower the water level.

 People make jit work

 JIT has a strong element of training and involvement of

workers.
 A culture of mutual trust and teamwork must be developed.
 An attitude of loyalty to the team and self-discipline must be
developed.
 Another crucial element of JIT is empowerment of workers,
giving them the authority to solve production problems.
 Tqm and jit
 TQM – Total Quality Management. TQM tries to improve
quality by ensuring conformance to internal requirements.
 Long-term relationships with suppliers
 Certified suppliers eliminate incoming inspection
 Share design process for new products
 Simplify design/processes
 Poka-yoke – error proofing / fail safe tools and methods
 Process capable of meeting tolerances
 Operators responsible for quality of own work
 Parallel processing
 Operations Performed in Series:

Op 1 Op 2 Op 3 Op 4 Op 5 Op 6 Op 7 Op 8
 Cycle Time for Each Operation = 1 Hour
 Total Product Cycle Time = 1 x 8 = 8 Hours

 Operations Performed in Parallel:

Op 2
 Cycle Time for Each Operation = 1 Hour Op 1 Op 3 Op 6 Op 7 Op 8
 Total Product Cycle Time = 1 x 5 = 5 Hours
 Operations 2 and 4 start the same time as Operation 1 Op 5
Op 4
 Kanban production control

 At the core of JIT manufacturing at Toyota is Kanban, an amazingly simple

system of planning and controlling production
 Kanban, in Japanese, means card or marquee
 Kanban is the means of signaling to the upstream workstation that the
downstream workstation is ready for the upstream workstation to
produce another batch of parts
 Card which indicates standard quantity of production
 Maintain discipline of pull production
 Authorize production and movement of goods
 Kanban production control

 There are two types of Kanban cards:

 a conveyance card (C-Kanban)
 a production card (P-Kanban)
 Signals come in many forms other than cards, including:
 an empty crate
 an empty designated location on the floor
Sample kanban
Sample kanban
Sample kanban
 Container in a kanban system
 Kanban is based on the simple idea of replacement of containers of
parts, one at a time.
 Containers are reserved for specific parts, are purposely kept small,
and always contain the same standard number of parts for each
part number.
 At Toyota the containers must not hold more than about 10% of a
day’s requirements.
 There is a minimum of two containers for each part number, one at
the upstream “producing” work center and one at the downstream
“using” work center.
 Determining number of kanbans

 N = Total number of containers between 2 stations

 U = Usage rate of downstream operation
 T = Average elapsed time for container to make
 entire cycle
 P = Policy variable indicating efficiency... 0 - 1
 C = Capacity (number of parts) of standard container
 Example: Number of containers
 There are two adjacent work centers, one of which is fed
parts from the other. The production rate of the using work
center is 165 parts per hour. Each standard Kanban container
holds 24 parts.
 It takes an average of 0.6 hour for a container to make the
entire cycle from the time it leaves the upstream center until
it is returned, filled with production, and leaves again. The
efficiency of the system is observed to be 0.2.
 How many containers are needed?
 Example: Number of containers
 Solution:
 Number of Containers, N

 N = UT(1 + P) / C
 = 165(0.6)(1 + 0.2) / 24
 = 99(1.2) / 24
 = 118.8 / 24
 = 4.95 or 5 containers
 Reducing inventories
 …Through Set Up Time Reduction:
 Central to JIT is the reduction of production lot sizes so that
inventory levels are reduced.
 Smaller lot sizes result in more machine setups
 More machine setups, if they are lengthy, result in:
 Increased production costs
 Lost capacity (idle machines during setup)
 The answer is: REDUCE MACHINE SETUP TIMES
 Reducing inventories – small lots
Require less space and capital investment
Move processes closer together
Make quality problems easier to detect
Make processes more dependent on each other
 Repetitive manufacturing
 Reduce setup times and lot sizes to reduce inventories
 Change factory layout to allow streamlined flows
 Convert process-focused layout to cellular manufacturing (CM) centers
 Install flexible manufacturing systems (FMS)
 Standardize parts designs
 Train workers for several jobs
 Implement preventive maintenance (PM) programs
 Install effective quality control programs
 Develop an effective subcontractor network
techniques to reduce setup times
techniques to reduce setup times
techniques to reduce setup times
 Repetitive manufacturing-cellular layouts

 Manufacturing cells
 Comprised of dissimilar machines brought together to
manufacture a family of parts
 Cycle time is adjusted to match takt time by changing worker
paths.
 Takt Time - customer demand rate. Takt time sets the pace of
production to match the rate of customer demand and becomes the
heartbeat of any lean system. It is calculated by taking the work time
available and dividing it by the number of units sold.
Cells with worker routes
Worker Routes Lengthen
as Volume Decreases
 Benefits of jit
 Inventory levels are drastically reduced:
 frees up working capital for other projects
 less space is needed
 customer responsiveness increases
 Total product cycle time drops
 Product quality is improved
 Scrap and rework costs go down
 Forces managers to fix problems and eliminate waste .... or it won’t
work!
 Kaizen
 The definition of Kaizen is "improvement“ and
particularly------"Continuous Improvement"-- slow,
incremental but constant.
 Small-scale improvements are easier and faster.
 The risks are lower because they generally have limited effect.

 However, the accumulated effect  is often greater than a single

large improvement.
Kaizen
 Cycle of Kaizen
 Standardize an operation
 Measure the standardized operation
(find cycle time and amount of in-
process inventory)
 Gauge measurements against
requirements
 Innovate to meet requirements and
increase productivity
 Standardize the new, improved
operations
 Continue cycle ad infinitum
 Elements of Kaizen

Teamwork
Personal discipline
Improved morale
Quality circles
Suggestions for improvement
 efficiency
 Any production method relies on efficiency – this can be viewed in
different ways:
 Productivity – a measurement of output per unit of the factor used
(labour, capital or land)
 Total Output
 Productivity = -------------------
 Units of Factor
 Technical Efficiency – output produced using the fewest possible inputs
 Productive Efficiency – output produced at the lowest possible cost
5S of japanese housekeeping
 1. Seiri / sort

Decide what you need

Remove unnecessary clutter
All tools, gauges, materials, classified and then stored
Remove items which are broken, unusable or only
occasionally used
 2. Seiton / set in order

Once you have eliminated all the

unneeded items

Now turn to the left over items

 3. Seiso / shine

Create a spotless workplace

Identify and eliminate causes of dirt and

grime – remove the need to clean

Sweep, dust, polish and paint

 4. Seiketsu / standardize
Generate a maintenance system for the first three
Develop procedures, schedules, practices
Continue to assess the use and disposal of items
Regularly audit using checklists and measures of
housekeeping
Real challenge is to keep it clean
 5. Shitsuke / sustain
Means inoculate courtesy & good habits
Driving force behind all 5S
Deming’s point number 1: Constancy of purpose
Make it a way of life
Part of health and safety
Involve the whole workforce*
Develop and keep good habits
 What you have come across…
At the end of the day:

 QUALITY IMPROVES
 NEAT & CLEAN WORKPLACE 
WASTAGE DECREASE
 SMOOTH WORKING  MACHINE MAINTENANCE
 NO OBSTRUCTION  VISUAL CONTROL SYSTEM
 SAFETY INCREASES  EMPLOYEES MOTIVATED
 PRODUCTIVITY IMPROVES  WORKSTATIONS BECOME
SPACIOUS
The end