Lean Manufacturing

What is Lean Manufacturing?

• Also known as lean production
• System of techniques and activities for a running manufacturing or
service operation
• Differ according to the application at hand but has the same
underlying principle:

The elimination of non-value-adding activities and waste from the business

 What is Lean
Manufacturing?
• Methodology to reduce
waste in a manufacturing
system without sacrificing
productivity.
• The value in terms of what
people would pay for the
product and service is
defined by the customers.
The History
• First championed by the Toyota
Production System and called as lean in
the 1990s.

• It coincided with the growth of Toyota

from a small company to one of the
world’s most successful seller of motor
vehicles
The History
• But the idea goes way back to Benjamin Franklin,
who wrote that avoiding unnecessary costs could
be more profitable than increasing sales

• This idea and other relevant concepts appear in

his essay “The Way to Wealth”.
The History
• It grew into an idea called scientific management
which analyzes and synthesizes workflow to
improve efficiencies by Mechanical Engineer,
Frederick Winslow Taylor.
• His idea was published in 1911 in his book,
Principles of Scientific Management, in which he
codified the process.
The History
• The term as a principle was first used by John
Krafcik in the article “Triumph of the Lean
Production System”.

• Krafcik worked as a quality engineer for a joint

venture between Toyota and GM in California
before he earned his master’s at MIT Sloan
School of Management.
How to Practice Lean Manufacturing
• The general meaning of lean is that it consists of a set of tools that help to
identify and eliminate waste.
• Some of the tools include:
 SMED
 Value stream mapping
 5S (a workplace organization
methodology)
 Kanban boards (visualizes workflow)
 Poka-yoke (error-proofing)
 Control charts (for checking workloads)
 Total productive maintenance (improves
integrity and quality of manufacturing
process)
 Rank order clustering (production flow
analysis)
 Single-point scheduling
 Redesigning working cells
 Multi-process handing
How to
Practice Lean
Manufacturi
ng

• Another way to approach lean manufacturing is called the Toyota Way, as it

was developed by the company.
The Toyota Way • Focuses on improving workflow to remove unevenness as opposed to
wastefulness.
• Kanban is essential for this type of lean management.
How to
Practice Lean
Manufacturi
ng

• In the Toyota Way, improving workflow is the goal, but in so doing waste is
also eliminated naturally.
The Toyota Way • Proponents of this process state it takes a system-wide perspective as
opposed to one solely on waste removal.
How to Practice Lean Manufacturing
• The general meaning of lean is that it consists of a set of tools that help to
identify and eliminate waste.
• Some of the tools include:
 SMED
 Value stream mapping
 5S (a workplace organization
methodology)
 Kanban boards (visualizes workflow)
 Poka-yoke (error-proofing)
 Control charts (for checking workloads)
 Total productive maintenance (improves
integrity and quality of manufacturing
process)
 Rank order clustering (production flow
analysis)
 Single-point scheduling
 Redesigning working cells
 Multi-process handing
PRINCIPLES OF LEAN

1 Pull
Processing
4 Continuous
Improvement
7 Automation

2 5 8
Perfect
first-time Flexibility Load Levelling
quality

3 6 9
Relations Production
Waste with flow and
Reduction suppliers Visual control
 PRINCIPLES OF LEAN
• But Toyota maintains that lean’s main thrust is not the tools but the reduction of three
types of waste:
Mura, 斑
• Unevenness, or waste due to
fluctuations in demand.
• Can come from customer
requests, but it can also be due to
an organization adding new
services
• Thus additional work.
Muri, 無理
• Overburden, or waste due to
trying to do too much at once.
Relating to resource allocation.
• Time is wasted when switching
from one task to another when
few people try too much work
Muda, 無駄
• Non-value-adding work, or
process waste.
• Comes as a byproduct of
something else
• Lean maximizes value, minimizes
necessary waste and removes
unnecessary waste altogether
 GOALS AND STRATEGY OF LEAN MANUFACTURING

• Reducing or eliminating Common goals

waste is essential to lean
project management
Improve Quality
• But the ends that it serves
can be different depending Eliminate Waste
on who is asked

Reduce Time
• It may increase company
profits, or it may maintain
improvements are solely to
benefit the customer. Reduce Total Costs
 Advantages & Disadvantages of Lean Manufacturing

Advantages Disadvantages

• Increased overall productivity • Difficulty involved with

• Reduced amount of floor space changing processes to
required implement lean principals
• Reduced manufacturing lead • Long term commitment
time required
• Improved flexibility to react to • Very risky process –
changes expect supply chain issue
• Improved quality while changing over to lean