MUZZAMIL JANJUA

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 WHAT IS LEAN
• A SYSTEMATIC APPROACH TO IDENTIFYING AND ELIMINATING WASTE THROUGH
CONTINUOUS IMPROVEMENT.
• LEAN FOCUSES ON THE CUSTOMER, ALLOWING PRODUCTS TO BE PULLED
THROUGH A CONTINUOUS FLOW VALUE STREAM TO MEET CUSTOMER DEMAND.
• CUSTOMER ORDER WASTE PRODUCT SHIPMENT LEAD TIME
 WHAT IS LEAN OPERATIONS
• LEAN OPERATIONS SUPPLY THE CUSTOMER WITH EXACTLY WHAT THE
CUSTOMER WANTS WHEN THE CUSTOMER WANTS IT, WITHOUT WASTE, THROUGH
CONTINUOUS IMPROVEMENT.
• LEAN OPERATIONS ARE DRIVEN BY WORKFLOW INITIATED BY THE “PULL” OF
THE CUSTOMER’S ORDER
 JUST IN TIME
• JIT IS THE SUPPLYING CUSTOMERS WITH EXACTLY WHAT THEY WANT WHEN THEY WANT
IT VIA A FOCUS ON THROUGHPUT AND REDUCED INVENTORY.
• PRODUCING GOODS AND SERVICES EXACTLY WHEN THEY ARE NEEDED: – NOT BEFORE
THEY ARE NEEDED SO THAT THEY WAIT AS INVENTORY
• JIT AIMS TO MEET DEMAND INSTANTANEOUSLY, WITH PERFECT QUALITY AND NO WASTE.

TOYOTA PRODUCTION SYSTEM

• LEAN MANUFACTURING IS SOMETIMES CALLED TOYOTA PRODUCTION SYSTEM
BECAUSE TOYOTA MOTORS COMPANY'S EIJI TOYODA & TAILCHUL OHNO GIVEN
CREDIT FOR ITS APPROACH AND INNOVATION
• FOCUS ON CONTINUOUS IMPROVEMENT, RESPECT FOR PEOPLE, AND STANDARD
WORK PRACTICES.
• GOOD PRODUCTION SYSTEMS REQUIRE THREE ISSUES ELIMINATE WASTE, REMOVE
VARIABILITY , AND IMPROVE THROUGHPUT
TOYOTA PRODUCTION SYSTEM ELEMENTS
 WHAT IS WASTE
• STORAGE, INSPECTION, DELAY, WAITING IN QUEUES, AND DEFECTIVE PRODUCTS
DO NOT ADD VALUE ARE 100% WASTE
• ACTIONS THAT TAKE PLACE DURING MANUFACTURING PROCESS CAN BE
CLASSIFIED IN ONE OF TWO WAYS

• VALUE ADDED
• SOME TIME CUSTOMER IS WILLING TO PAY FOR
• ANY ACTIVITY THAT INCREASES THE MARKET FROM OF THE PRODUCT

• NON VALUE ADDED

• TASK OR ACTIVITY THAT CAN BE ELIMINATED FROM A PROCESS WITHOUT DETERIORATION
OF THE FUNCTION, PERFORMANCE, OR QUALITY OF A PRODUCT OR SERVICE AS VIEWED BY
THE CUSTOMER) SOMETHING THE CUSTOMER IS NOT WILLING TO PAY FOR
• NECESSARY -NON VALUE-ADDED (ACTIVITIES THAT ADD NO VALUE FROM THE CUSTOMER’S
PERSPECTIVE BUT ARE REQUIRED IN ORDER TO OPERATE THE BUSINESS, E.G., LEGAL)
• UNNECESSARY
U.S. MANAGERS OFTEN ADD TWO ADDITIONAL S TO THE 5 ORIGINAL ONES: SAFETY AND SUPPORT/MAINTENAN
 ELIMINATING WASTE (OHNO WASTE)
• OVERPRODUCTION – PRODUCING MORE THAN THE CUSTOMER ORDERS OR
PRODUCING EARLY.
• QUEUES – IDLE TIME, STORAGE, AND WAITING ARE WASTES
• TRANSPORTATION – MOVING MATERIAL BETWEEN PLANTS, BETWEEN WORK
CENTERS, AND HANDLING MORE THAN ONCE IS WASTE
• INVENTORY – UNNECESSARY RAW MATERIAL, WORK-IN-PROCESS (WIP),
FINISHED GOODS, AND EXCESS OPERATING SUPPLIES
• MOTION – MOVEMENT OF EQUIPMENT OR PEOPLE
• OVERPROCESSING – WORK PERFORMED ON PRODUCT THAT ADDS NO VALUE
• DEFECTIVE PRODUCT – RETURNS, WARRANTY CLAIMS, REWORK AND SCRAP
 REMOVE VARIABILITY
• ANY DEVIATION FROM THE OPTIMUM PROCESS THAT DELIVERS PERFECT PRODUCT
ON TIME, EVERY TIME.
• JIT SYSTEMS REQUIRE MANAGERS TO REDUCE VARIABILITY CAUSED BY BOTH
INTERNAL AND EXTERNAL FACTORS
• INVENTORY HIDES VARIABILITY
• LESS VARIABILITY RESULTS IN LESS WASTE

SOURCES OF VARIABILITY
• POOR PRODUCTION PROCESSES RESULTING IN IMPROPER QUANTITIES, LATE, OR NON-
CONFORMING UNITS
• UNKNOWN CUSTOMER DEMANDS
• INCOMPLETE OR INACCURATE DRAWINGS, SPECIFICATIONS, OR BILLS OF MATERIAL
• BOTH JIT & INVENTORY REDUCTION ARE EFFECTIVE TOOLS IN IDENTIFICATIN OF
VARIABILITY
 IMPROVED THROUGHPUT
• THE TIME IT TAKES TO MOVE AN ORDER FROM RECEIPT TO DELIVERY
• THE TIME BETWEEN THE ARRIVAL OF RAW MATERIALS AND THE SHIPPING OF THE
FINISHED ORDER IS CALLED MANUFACTURING CYCLE TIME
• PULL SYSTEM A CONCEPT THAT RESULTS IN MATERIAL BEING PRODUCED ONLY
WHEN REQUESTED AND MOVED TO WHERE IT IS NEEDED JUST AS IT IS NEEDED.
• PULL SYSTEM INCREASES THROUGHPUT
• BY PULLING MATERIAL IN SMALL LOTS, INVENTORY CUSHIONS ARE REMOVED ,
EXPOSING PROBLEMS AND EMPHASIZING CONTINUAL IMPROVEMENT
• MANUFACTURING CYCLE TIME IS REDUCED
• PUSH SYSTEMS DUMP ORDERS ON THE DOWNSTREAM STATIONS REGARDLESS OF
THE NEED
 SUPPLIER PARTNERSHIP
• SUPPLIERS AND PURCHASERS WORK TOGETHER TO REMOVE WASTE AND DRIVE
DOWN COSTS FOR MUTUAL BENEFIT.
• FOUR GOALS OF JIT PARTNERSHIPS ARE:
• REMOVAL OF UNNECESSARY ACTIVITIES
• REMOVAL OF IN-PLANT INVENTORY 
• REMOVAL OF IN-TRANSIT INVENTORY 
• IMPROVED QUALITY AND RELIABILITY
 CONCERNS OF SUPPLIER
• DIVERSIFICATION –TIES TO ONLY ONE CUSTOMER INCREASES RISK
• SCHEDULING –DON’T BELIEVE CUSTOMERS CAN CREATE A SMOOTH SCHEDULE
• LEAD TIME –SHORT LEAD TIMES MEAN ENGINEERING OR SPECIFICATION
CHANGES CAN CREATE PROBLEMS
• QUALITY –LIMITED BY CAPITAL BUDGETS, PROCESSES , OR TECHNOLOGY
• LOT SIZE –SMALL LOT SIZES MAY TRANSFER COSTS TO SUPPLIERS
• CONSIGNMENT INVENTORY AN ARRANGEMENT IN WHICH THE SUPPLIER
MAINTAINS TITLE TO THE INVENTORY UNTIL IT IS USED.
 LEAN LAYOUT TACTICS
• BUILD WORK CELLS FOR FAMILIES OF PRODUCTS
• INCLUDE A LARGE NUMBER OPERATIONS IN A SMALL AREA
• MINIMIZE DISTANCE
• DESIGN LITTLE SPACE FOR INVENTORY
• IMPROVE EMPLOYEE COMMUNICATION
• USE POKA-YOKE DEVICES (MISTAKE PROOFING)
• BUILD FLEXIBLE OR MOVABLE EQUIPMENT
• CROSS-TRAIN WORKERS TO ADD FLEXIBILITY
 LEAN INVENTORY
• INVENTORY IS AT THE MINIMUM LEVEL NECESSARY TO KEEP OPERATIONS
RUNNING
• USE A PULL SYSTEM TO MOVE INVENTORY
• REDUCE LOT SIZES
• DEVELOP JUST-IN-TIME DELIVERY SYSTEMS WITH SUPPLIERS
• DELIVER DIRECTLY TO POINT OF USE
• PERFORM TO SCHEDULE
• REDUCE SETUP TIME
• USE GROUP TECHNOLOGY
SHINGO SAYS “INVENTORY IS EVIL”
 REDUCED LOT SIZES & SETUP COSTS
• REDUCING INVENTORY UNCOVERS THE “ROCKS”
• ULTIMATELY THERE WILL BE VIRTUALLY NO INVENTORY AND NO PROBLEMS.
• REDUCE LOT SIZES
• IDEAL SITUATION IS TO HAVE LOT SIZES OF ONE PULLED FROM ONE PROCESS TO THE NEXT
• OFTEN NOT FEASIBLE

• REDUCE SETUP COSTS

• HIGH SETUP COSTS ENCOURAGE LARGE LOT SIZES
• REDUCING SETUP COSTS REDUCES LOT SIZE AND REDUCES AVERAGE INVENTORY
• SETUP TIME CAN BE REDUCED THROUGH PREPARATION PRIOR TO SHUTDOWN AND
CHANGEOVER
 JUST IN TIME SCHEDULING
• SCHEDULES MUST BE COMMUNICATED INSIDE AND OUTSIDE THE ORGANIZATION
• LEVEL SCHEDULES
• PROCESS FREQUENT SMALL BATCHES
• FREEZING THE SCHEDULE HELPS STABILITY
• KANBAN
• SIGNALS USED IN A PULL SYSTEM
• A SEQUENCE OF KANBANS PULLS MATERIAL
THROUGH THE PROCESS
• BETTER SCHEDULING IMPROVES PERFORMANCE
• TPS: CONTINUOUS IMPROVEMENT AND RESPECT.
 LEAN ORGANIZATION
• TRANSITIONING TO A LEAN SYSTEM CAN BE DIFFICULT
• LEAN SYSTEMS TEND TO HAVE THE FOLLOWING ATTRIBUTES
• USE JIT TECHNIQUES
• BUILD SYSTEMS THAT HELP EMPLOYEES PRODUCE PERFECT
PARTS
• REDUCE SPACE REQUIREMENTS
LEAN SYSTEMS TEND TO HAVE THE FOLLOWING ATTRIBUTES
• DEVELOP PARTNERSHIPS WITH SUPPLIERS
• EDUCATE SUPPLIERS
• ELIMINATE ALL BUT VALUE-ADDED ACTIVITIES
• DEVELOP EMPLOYEES
• MAKE JOBS CHALLENGING
• BUILD WORKER FLEXIBILITY
 LEAN OPERATIONS IN SERVICES
• THE FEATURES OF LEAN OPERATIONS APPLY TO SERVICES JUST AS THEY DO IN
OTHER SECTORS.
• FORECASTS IN SERVICES MAY BE VERY ELABORATE, WITH SEASONAL, DAILY,
HOURLY, OR EVEN
• SHORTER COMPONENTS.
• THE JIT TECHNIQUES USED IN MANUFACTURING ARE USED IN SERVICES
• SUPPLIERS
• LAYOUTS
• INVENTORY
• SCHEDULING
THAT’S IT GUYS