LEAN MANUFACTURING

Heijunka (Load Balancing) Just-In-Time (JIT)

Takt time Cause-and-Effect Ishikawa

Bottleneck Analysis
Kaizen (Continuous Improvement)
Kanban
3M 5S

Poka-Yoke (Error Proofing) Root Cause Analysis

Single-Minute Exchange of Dies (SMED) Value Stream Mapping

 Toyota Production System
• TPS - A system that continually searches for and eliminates
waste throughout the value chain.

• After World War II, Toyota was almost bankrupt.

• Post war demand was low and minimising the cost per unit
through economies of scale was inappropriate. This led to the
development of demand-led pull systems.
• The Japanese could not afford the expensive mass production
facilities of the type used in the USA so they instead focused on
reducing waste and low cost automation.
• Likewise, Toyota could not afford to maintain high inventory levels.
 Founders of the Toyota Production System (TPS)

Taiichi Ohno Shigeo Shingo

(1912 †1990) 1909 †1990
 Lean Manufacturing
• What do you mean by Lean.
• Why Lean.
• How are these tools helpful.
• Where do we use them.
• How does it works.
"The most dangerous kind of waste is the
waste we do not recognize." -
Shigeo Shingo
Lean Manufacturing goals
History Timeline for Lean Manufacturing
 Lean Manufacturing

Lean has been defined in many different ways.

“A systematic approach to identifying and eliminating

waste(non-value-added activities) through continuous
improvement by flowing the product at the pull of the
customer in pursuit of perfection.”
 Lean Manufacturing
• Lean manufacturing is a methodology that focuses on
minimizing waste within manufacturing systems while
simultaneously maximizing productivity.
• Also known as lean production, or just lean, the integrated
sociotechnical approach is based on the Toyota Production
System and is still used by that company, as well as myriad
others, including Caterpillar Inc. and Nike.
• Lean manufacturing is based on a number of specific
principles, such as Kaizen, or continuous improvement.
• The benefits of lean include reduced lead times, reduced
operating costs and improved product quality, to name just a
few.
 Five principles
Lean Manufacturing
1.Identify value from the customer's perspective. 
2. Map the value stream.
3. Create flow.
4. Establish a pull system. 
5. Pursue perfection with continual process
improvement, or kaizen.
 Five principles Lean Manufacturing
1.Identify value from the customer's perspective:
Value is created by the producer, but it is defined
by the customer.
In other words, companies need to understand the
value the customer places on their products and
services, which, in turn, can help them determine
how much money the customer is willing to pay.
The company must strive to eliminate waste and
cost from its business processes so that the
customer's optimal price can be achieved at the
highest profit to the company.
 Five principles Lean Manufacturing
2. Map the value stream:
This principle involves recording and analyzing the
flow of information or materials required to produce
a specific product or service with the intent of
identifying waste and methods of improvement.
The value stream encompasses the product's entire
lifecycle, from raw materials through to disposal.
Companies must examine each stage of the cycle
for waste or muda in Japanese. Anything that does
not add value must be eliminated.
Lean thinking recommends supply chain alignment
as part of this effort.
Value stream mapping
 Five principles Lean Manufacturing
3. Create flow: 
Eliminate functional barriers and identify ways to
improve lead time to ensure the processes are smooth
from the time an order is received through to
delivery.
Flow is critical to the elimination of waste.
Lean manufacturing relies on preventing
interruptions in the production process and enabling
a harmonized and integrated set of processes in
which activities move in a constant stream.
 Five principles Lean Manufacturing
4. Establish a pull system: 
This means you only start new work when there is demand for
it. Lean manufacturing uses a pull system instead of a push
system.
With a push system, used by manufacturing resource planning
(MRP) systems, inventory needs are determined in advance and
the product is manufactured to meet that forecast. However,
forecasts are typically inaccurate, which can result in swings
between too much inventory and not enough, as well as
subsequent disrupted schedules and poor customer service.
In contrast to MRP, lean manufacturing is based on a pull
system in which nothing is bought or made until there is
demand. Pull relies on flexibility and communication.
 Five principles Lean Manufacturing
5. Pursue perfection with continual process
improvement, or kaizen:
Lean manufacturing rests on the concept of
continually striving for perfection, which entails
targeting the root causes of quality issues and ferreting
out and eliminating waste across the value stream.
 Lean Manufacturing
A way to eliminate Waste and improve efficiency in a
manufacturing environment.
How EFFICIENT these tools are ?
What are these tools ?
1. Value Stream Mapping
2. 5S & 3M
3. Poka-yoke
4. Cause and Effect and 5 whys
5. Takt time
6. Heijunka (Bottle Neck Process)
7. Kaizen & Kanban
8. Single Minute Exchange of Dies (SMED)
9. JIT- Just In Time
 Value Stream Mapping
• A value stream map can be created that shows the flow of materials and
information, and categorizes activities into three segments:
1. value enabling
2. value adding
3. non value adding
• The focus of this tool is on identifying and eliminating the non-value added
activities in each process step and reducing the wait time between consecutive
steps wherever possible.
• Value enabling activities, however, cannot be totally eliminated from a system.
Instead, they can be sub-classified into
1.value adding
2.non-value adding activities
Allowing those value enabling activities that are non-valued added to be
eliminated.
Functional layout

Cellular layout
Functional layout

© Siemens Power Generation Systems

Manufacturing cells
© Siemens Power Generation Systems
 Value Stream Mapping
• These eliminations waste time and help make a process more
compact – “A benefit in process improvement projects aimed
at reducing variation.”
• This tool also can be a part of a Kaizen cycle, incorporated
within the Analyze and Improve phases.
Minimizing Waste: Group Technology
Using Departmental Specialization (Job Shop) for plant layout
can cause a lot of unnecessary material movement

Note how the flow lines are going back and forth

Saw Saw Saw Grinder Grinder

Heat Treat

Lathe Lathe Lathe Press Press Press

 Minimizing Waste: Group Technology

Revising by using Group Technology Cells can reduce

movement and improve product flow

Grinder
1 2
Saw Lathe Lathe Press

Heat Treat

Grinder
Saw Lathe A B Lathe Press
 5S
“5S” is one of the prime lean tools, it helps to
eliminate waste in the system and optimize
efficiency.
How does 5S help?
Eliminates waste that results from a poorly
organized work area (e.g. wasting time looking
for a tool).
5S
5S

Organize the work area:

• Seri - (Sort) Sorting of material to eliminate not required.

• Seiton - (Set in Order) set the required parts in an order.
• Seiso - (Shine) Clean the work place, use clean as an inspection.
• Seiketsu - (Standardize) Maintain everything in order according to
its standard.
• Shitsuke - (Sustain) without regular follow up to keep in work
order.
5S
 3M
• Toyota has developed its production system
around eliminating three enemies of
Lean: Muda(waste), Muri (overburden)
and Mura (unevenness)
 Muda - The Seven Wastes
•Transport: The movement of product between operations, and locations.
•Inventory: The work in progress (WIP) and stocks of finished goods and
raw materials that a company holds.
•Motion: The physical movement of a person or machine whilst
conducting an operation.
•Waiting: The act of waiting for a machine to finish, for product to arrive,
or any other cause.
•Overproduction: Over producing product beyond what the customer has
ordered.
•Over-processing: conducting operations beyond those that customer
requires.
•Defects: product rejects and rework within your processes.
 Mura - Waste of Unevenness
Mura creates many of
the seven wastes,
Mura drives Muda! By
failing to smooth the
demand we put unfair
demands on the
processes and people
as a result cause the
creation of inventory
and other wastes.
 Mura - Waste of Unevenness
One obvious example is production
processes where the manager is
measured on monthly output, the
department rushes like mad in the
final week of the month to meet
targets, using up components and
producing parts not actually
required. The first week of the
month is then slow due to
component shortages and no focus
on meeting targets. This gives us the
hockey stick graph of production as
we see here on the right, far better
to smooth out production and work
at the demand of the customer.
 Muri - waste of Overburden
• Muri gives unnecessary stress to the employees and
processes.
• This is caused by Mura and a host of other failures in the
system such as:
– Lack of training
– Unclear or no defined ways of working,
– The wrong tools, and ill thought out measures of
performance.
Again Mura causes Muda, the seven wastes are symptoms of
our failure to tackle Mura and Muri within our processes not
the root cause!
 Poka – yoke
• The Main aim of poka-yoke is to eliminate inadvertent
errors, through design error detection and prevention
into production processes.
• It is difficult (and expensive) to find all defects through
inspection, and correcting defects typically gets
significantly more expensive at each stage of
production.
• Poka - yoke provides us visual signal to indicate the
state of the component.
 Ishikawa (Cause-and-Effect) Diagram and 5
Whys
• In the Analyse phase, the absence of concrete
statistical data sometimes can make the identification
of a root cause difficult.
• In these scenarios, the 5 Whys – asking “Why?” five
times – along with a cause-and-effect diagram, can
make the task more manageable.
• The 5 why’s tool also can help uncover the process
dynamics and the areas that can be addressed easily.
• This tool can is capable of finding difficult and
complicated solutions
 problem • To
reduce the break down time in
statement the grinding module.

why 1 • Minor loss in production

• Machine interruptions not identified by

why 2
the operator.

why 3 • far away from the operator

why 4 • No alert
Cause-and-Effect Analysis
 Takt time
Takt time is the "heartbeat" of the customer. It is the
average rate at which a company must produce a
product or execute transactions based on the
customer's requirements and available working time.
• Takt = T/D
• Where T is Time available for product/service.
• D is a demand for the number of units
• T gives information on production pace or units
per hours.
 Heijunka (Load Balancing)
• Heijunka refers to a system of production designed to provide a
more even and consistent flow of work.
• This principle can be incorporated in the Design phase if the root
cause analysis during Analyse points to bottlenecks in the process.
• Load balancing can be used to introduce a pull in the system rather
than letting it operate on push – thus alleviating the bottlenecks.
BOTTLENECK PROCESS
• Efforts for introducing a level load balance in the system also
automatically reduce inventory. If takt time principles are used
while designing the system, it would help ensure a level load
balance.
 Minimizing Waste – Plant Loading

Suppose we operate a production plant that produces a single

product. The schedule of production for this product could be
accomplished using either of the two plant loading schedules below.

Not uniform Jan. Units Feb. Units Mar. Units Total

1,200 3,500 4,300 9,000
or
Uniform Jan. Units Feb. Units Mar. Units Total
3,000 3,000 3,000 9,000

How does the uniform loading help save labor costs?

Continuous improvement (Kaizen)
• Continuous improvement is a strategy people work
proactively to achieve regular, incremental improvement
in the manufacturing process.
• Help of this strategy of continuous improvement
combines the collective talents of a company to create a
product for continually eliminating waste from
manufacturing processes.
• The word KAIZEN is the best tool to improve, word KAI-
small ZEN- improvement comes from Japanese.
• Tool 5S also one of the part of continuous improvement.
The Deming Cycle
The Deming cycle, or PDSA cycle:
PLAN: plan ahead for change. Analyze and
predict the results.
DO: execute the plan, taking small steps in
controlled circumstances.
STUDY: check, study the results.
ACT: take action to standardize or improve
the process.
Benefits of the PDSA cycle:
Daily routine management-for the individual
and/or the team
Problem-solving process
Project management
Continuous development
Vendor development
Human resources development
New product development
Process trials
 Kanban
• Everybody wants the materials always ready
and the inventory under control.

• But very few of them can achieve this Goal

– DO YOU KNOW WHY?
Because they do not use Kanban System
Kanban
 4 – fundamental Points
1. Kanban is a tool to solve problems and to
realize the Just In Time.
– You will have what ever you need: when you
need, and in exact quantity you need.
2. Kanban System is very cheap to implement
by:
You have to be
– Cards creative!!
– Visual Management
– Electrical signals
 4 – fundamental Points
3. People is the Key of Kanban system.
– It is mainly based on training and people.
– If you do not train and involve people -
– YOU WILL FAIL
4. Kanban system is not static tool.
– It has to be maintained periodically.
 Kanban
• A system that uses replenishment signals to simplify
inventory management
• Signals (usually cards) hold product details
1. What to make, when to make it, how much to make, and
where to send it
• Cards stay attached to a bin that holds the product
• When bin is empty, it is returned to the start of the
assembly line for replenishment
• Full bins are returned to the customer, and the cycle
continues
Kanban Cycle
Single Minute Exchange of Dies (SMED)
A method SMED to reduce the changeover times, which reduces
the WIP (Work In Progress) and improve the lead time, it means
line performance.
• Benefits with this technique is, it improves safety area and also
reduces the operator fatigue.
Steps for SMED:
1. Observe the current process.
2. Separate internal from external tasks.
3. Convert internal to external tasks.
4. Improve internal tasks.
5. Improve external tasks.
Single Minute Exchange of Dies (SMED)
• Single minute exchange of dies (SMED) - all changeovers
< 10 mins.
• Video whole set-up operation. Use camera’s time and date functions
• Ask operators to describe tasks. As group to share opinions about
the operation.
Tasks can be classified into two types depending upon machines
working conditions:
• INTERNAL:
– Tasks that can only take place safely when the process is not running.
• EXTERNAL:
– That can be done safely while the process is running.
 Simple CNC Example
New batch of parts arrives
– Change over tools for the batch Setup time
– Set offsets for new tools per lot

– Load NC program
– Validate
Material
handling
Run parts and
– Load part onto machine loading
time per
– Cycle start and wait piece.
– Unload and visually inspect (adjust if necessary)
 Minimizing Waste: JIT
• Only produce what’s needed
• The opposite of “Just In Case” philosophy
• Ideal lot size is one
• Minimize transit time
• Frequent small deliveries
Pro’s
•Minimal inventory
•Less space
•More visual
•Easier to spot quality issues
Making right
part at the right
time in the right
amount
Con’s
•Requires discipline
•Requires good problem solving
•Suppliers or warehouses must be close
•Requires high quality
 Minimizing Waste: JIT
Inventory
Hides Problems
Machine
downtime

Scrap Vendor
Work in delinquencies Change
orders
process
queues Engineering design Design
(banks) redundancies backlogs

Paperwork Inspection Decision

backlog backlogs backlogs

64
 Lean Manufacturing
Advantages
• Increased overall productivity
• Reduced amount of floor space required
• Reduced manufacturing lead time
• Improved flexibility to react to changes
• Improved quality
 Lean Manufacturing
Disadvantages
• Difficulty involved with changes processes to
implement lean principals
• Long term commitment required
• Very risky process expert supply chain issues
while changing over to lean
People Benefits from LEAN
Customer Benefits from LEAN
Thank you