Lean Management

Mrs. Naduni Madhavika (CMBE, CLLSB)

PhD(Reading), MBA (PIM-SJP), BBA (SHU-UK)
https://www.sliit.lk/faculty-of-business/staff/naduni.m/
Learning objectives
• Explain what is lean
• Differentiate the 5 principles in
lean
• Compare and contrast the
different types of waste in lean
• Highlight the advantages and
disadvantages of Lean
Manufacturing
 What is Lean?

• Lean manufacturing is the production of

goods using less of everything compared
to traditional mass production: less waste,
human effort, manufacturing space,
investment in tools, inventory, and
engineering time to develop a new
product
What is Lean
• Lean Manufacturing – A way to eliminate waste and
improve efficiency in a manufacturing environment

• Lean focuses on;

1. flow (product flow, financial flow,
information flow, value flow & risk flow).
2. the value stream and
3. eliminating “muda”
Lean and Just-in-Time
• Lean was generated from the Just-in-time
(JIT) philosophy of continuous and
forced problem solving
• Just-in-time is supplying customers with
exactly what they want when they want it
• With JIT, supplies and components are
“pulled” through a system to arrive
where they are needed, when they are
needed
Origins

Lean Manufacturing is
sometimes called the Toyota
Production System (TPS)
because Toyota Motor
Company’s Eiji Toyoda and
Taiichui Ohno are given
credit for its approach and
innovations
Lean production
• Eliminating waste in a pull based value stream of
activities with level production (i.e. even
production runs with neither idle time nor surges in
demand) and just-in-time inventory management

Video - 1
 Five Lean Principles
1. Specify value in
1. Specify value in
the eyes of the
the eyes of the
customer by product
customer
family

2. Identify value
5. Seek stream: eliminate
Perfection/Kaizen steps that do not add
value

3. Create Smooth
4. Establish Pull
Flow

Video 2
 What is Waste?

• Waste is anything that

happens to a product
that does not add
value from the
customer’s perspective
• Products being stored,
inspected or delayed,
products waiting in
queues, and defective
products do not add
value
 Seven Wastes
• Overproduction – producing more than the customer
orders or producing early. Inventory of any kind is
usually waste.
• 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
• Over-processing – work performed on product that
adds no value
• Defective product – returns, warranty claims, rework
and scrap
Key Lean Manufacturing Techniques

5S
 5S
Strategy for creating a well organized, smoothly flowing
manufacturing process
5S Examples

Before After
Benefits of 5S
• Increases organization and efficiency
• Avoids wasted motion
• Increases safety
• Eliminates unnecessary inventory
• Offers improvements at an
inexpensive cost
5S Drawbacks
• If not fully implemented, may result in
• Store things
• Stick to the rules
• Superficially clean
• Switch to new fixtures

• Can not be considered an end goal – must

be part of a continuous improvement
movement
 Lean Manufacturing
Advantages and Disadvantages

• Advantages: • Disadvantages:
• Increased overall
productivity
• Reduced amount of floor
space required
• Reduced manufacturing
lead time
• Improved flexibility to
react to changes
• Improved quality
• Difficulty involved with
changing processes to
implement lean principals
• Long term commitment
required
• Very risky process - expect
supply chain issues while
changing over to lean
Lean Management Tools
 5S
 Kanban
 Value Stream Mapping (visualised flow of material and
information)
 Standardization
 Kaizen
 Visual Workplace
 SMED (Quick Changeover)
 Andon (a system to notify management, maintenance, and other
workers of a quality or process problem)
 Poka-yoke (helps an equipment operator to avoid mistakes)
 One-piece flow (reduce batch production to one piece)
 Cellular Manufacturing
Group Assignment 1– In groups of Maximum group of
12 members, Minimum group of 10 members, you are
required to prepare a digital handbook for the lean
management tools mentioned in the above slide.

Marks allocated – 10 Marks

Deadline – 1st of April 2023

 Learning objectives
• Explain what is lean
• Differentiate the 5 principles in lean
• Compare and contrast the different types of waste in
lean
• Highlight the advantages and disadvantages of Lean
Manufacturing
• Explain the lean management tools