Seminar Report On Lean Manufacturing
Seminar Report On Lean Manufacturing
Seminar Report On Lean Manufacturing
1. ABSTRACT
Most all business managers agree that achieving low cost and high quality no
longer guarantees a business its success. In the face of fierce global competition, companies
are concentrating more than ever on reducing lead-times as a way of achieving operational
flexibility. This is because as lead-times decrease, production times fall, quality improves
and costs shrink.
2. LITERATURE SURVEY
In 1900’s U.S. manufacturers like Henry ford brought the concept of mass
production. U.S. manufacturers have always searched for efficiency strategies that help
reduce costs, improve output, establish competitive position, and increase market share.
Early process oriented mass production manufacturing methods common before World War
II shifted afterwards to the results-oriented, output-focused, production systems that control
most of today's manufacturing businesses.
Japanese manufacturers re-building after the Second World War were facing
declining human, material, and financial resources. The problems they faced in
manufacturing were vastly different from their Western counterparts. These circumstances
led to the development of new, lower cost, manufacturing practices. Early Japanese leaders
such as the Toyota Motor Company's Eiji Toyoda, Taiichi Ohno, and Shingeo Shingo
developed a disciplined, process-focused production system now known as the "lean
production." The objective of this system was to minimize the consumption of resources that
added no value to a product.
The "lean manufacturing" concept was popularized in American factories in large part
by the Massachusetts Institute of Technology study of the movement from mass production
toward production as described in The Machine That Changed the World, (Womack, Jones &
Roos, 1990), which discussed the significant performance gap between Western and
Japanese automotive industries. This book described the important elements accounting for
superior performance as lean production. The term "lean" was used because Japanese
business methods used less human effort, capital investment, floor space, materials, and time
in all aspects of operations. The resulting competition among U.S. and Japanese automakers
over the last 25 years has lead to the adoption of these principles within all U.S.
manufacturing businesses. Now it has got global acceptance and is adopted by industries
world over to keep up with the fast moving and competing industrial field.
3. INTRODUCTION
Although Lean is a current business trend, it is not new. In fact, a major Japanese
automobile manufacturer developed Lean in the 1940s. It quickly spread to other companies
and industries within Japan, and finally the United States and West. Now, service, sales,
governments, and other non-manufacturing sectors are jumping onto the Lean bandwagon.
The need for Lean may be more easily understood by looking at financial models.
Until thirty years ago, monopolies existed and large companies took their existing costs,
added a profit, and the result was the sales price. This formula was especially fitting for new
products. When VCRs were first introduced, they cost more than $1000 per machine. The
same was true of cordless telephones, personal computers, and laptops. If consumers wanted
the product, they were forced to pay the company’s set price. In today’s market, competition
is more intense and consumers are more sophisticated. They demand more products, more
features, better quality, higher availability, and competitive prices. Competition is also
stronger due to the multiple numbers of companies producing each product.
DEPT OF MECHANICAL ENGINEERING, BVBCET Page 3
Lean Manufacturing
Current cost models assume the consumer sets the sales price. Anti-trust laws have
rendered most monopolies obsolete. The manufacturer or service provider now determines its
profit by subtracting cost from the sales price. As a result, the only strategy for increasing
profitability in today’s market is to reduce product cost by eliminating waste. Under the
definition of Lean, manufacturers must meet consumer demand while applying fewer
resources. (Improved customer satisfaction is also a critical element of this equation.) The
old cliché of working smarter not harder applies now more than ever.
4. THEORY
The term lean manufacturing is a more generic term and refers to the general
principles and further developments of becoming lean. The term lean is very apt because in
lean manufacturing the emphasis is on cutting out “FAT” or wastes in manufacturing
process. Waste is defined as anything that does not add any value to the product. It could be
defined as anything the customer is not willing to pay for. Manufacturing philosophy is
pivoted on designing a manufacturing system that perfectly blends together the fundamentals
of minimizing costs and maximizing profit. These fundamentals are Man (labour), Materials
and Machines (equipments) called the 3 M’s of manufacturing. A well-balanced 3M is
resulted through lean manufacturing.
4.1.1 OVERPRODUCTION
• Just-in-case logic
• Misuse of automation
• Unleveled scheduling
• Over engineered
• Redundant inspections
4.1.2 WAITING
• Unplanned maintenance
• Misuses of automation
• Unleveled scheduling
• Product complexity
• Unleveled scheduling
• Unbalanced workload
• Misunderstood communications
• Reward systems
• Just-in-case logic
• Lack of communications
• Redundant approvals
4.1.5 TRANSPORTATION
This does not add any value to the product. Instead of improving the
transportation, it should be minimized or eliminated (e.g. forming cells).
• Large batch sizes, long lead times, and large storage areas
4.1.6 MOTION
Motion of the workers, machines, and transport (e.g. due to the inappropriate
location of tools and parts) is waste. Instead of automating wasted motion, the operation itself
should be improved.
This is pure waste. Prevent the occurrence of defects instead of finding and
repairing defects.
• Poor quality
• Product design
Nearly every waste in the production process can fit into at least one of these
categories. Those that understand the concept deeply view waste as the singular enemy that
greatly limits business performance and threatens prosperity unless it is relentlessly
eliminated over time. Lean manufacturing is an approach that eliminates waste by reducing
costs in the overall production process, in operations within that process, and in the
utilization of production labor. The focus is on making the entire process flow, not the
improvement of one or more individual operations.
Waste is anything that doesn’t add value to the product. Checking whether the
process is adding value to the product or not is the best way to identify wastes.
Is the activity adding value?
If YES If NO
Out of the complete processes in an industry only about 5 % actually add value to the
product. Rest of the process does not add any value. Rest 35% activities are such that even
though this doesn’t add any value but still it cannot be eliminated as it is necessary. For e.g.
Inventory cannot be completely reduced, scrap materials cannot be made zero, it may take
few minutes to load unload and load for next operation etc. So focus should be on complete
elimination of waste activities and reducing the necessary non-value adding activities.
Japanese looked at improving their work every time they do it. This lead to
the development of concept called continuous improvement. Japanese rather than
maintaining the improvement they have achieved they concentrated in continuously
improving their work. This improvement can be in any field like quality, error proofing, lead-
time reduction etc. So the focus should be on how you can improve your work than the same
done last time.
Improvement is classified into innovations and kaizen. Innovations are those
improvements which cause drastic changes. These occur due to huge technological
advancements in the field of research and development. These are mostly done by high level
engineers. Kaizen include small improvements done by lower order employees. According to
the level of employees the type of improvements each should focus are as shown below:
In order to achieve continuous improvement the work culture of the workers should
be modified. The workers should be aimed at improving their work each time they do it.
1) Push system – Here the products are made according to the market forecast and not
according to the current demand. So here the information flow is in the same direction as the
product flow. So there may chance of piling of finished goods as there are always fluctuation
in demand. Thus the product is pushed through the production line.
2)Pull system- Here the product is made according to the customer demand. So the
information of the quantity and type of product flow in the opposite direction to that of the
product. Here no piling of finished products occurs as the production is according to the
customer demand. Hence the customer pulls the product through the production line.
10 minutes 10 minutes
10 minutes
• One piece
flow
From the above example it is clear that the lead time can be reduced to almost 40% of
the lead time when it was batch production. Also it can be noted that it takes about 85% less
time for the first part to be produced. Thus product can be produced according to current
demand quickly.
FUNCTIONAL CELLS
5. Improved Coordination
6. Reduced Inventory
8. Simplified Scheduling
It is the Japanese method of keeping the work place clean and tidy. This helps
in reducing many unnecessary movements.
•Sort (Seiri) - Perform “Sort Through and Sort Out,” by placing a red tag on all
unneeded items and moving them to a temporary holding area. Within a predetermined time
the red tag items are disposed, sold, moved or given away.
•Set in Order (Seiton) - Identify the best location for remaining items, relocate out of
place items, set inventory limits, and install temporary location indicators.
•Standardize (Seiketsu) - Create the rules for maintaining and controlling the first
3S’s and use visual controls.
In the past, suppliers would strive to ship as much product to the customer as possible
in order to maximize sales and profits. This was a shortsighted strategy because customers’
needs were disregarded. If a supplier pushed extra product to them at the end of the month or
year, less would be required for the next period. This resulted in a slump as well as a
continuation of the cycle. Many companies still either do not understand this concept or do
not want to change.
Short-term goals and strategies still prevail in our business environment. Lean
corporations strive to maximize long-term profitability and growth, often ignoring short-term
wins.
The second idea is that extensive maintenance history exists in a database, and
equipment failures may be predicted within reasonable timeframes. The database may be a
manual maintenance logbook or a sophisticated software system. Either one will work,
although the newer systems make the tasks much simpler. Predictive maintenance will allow
the company to pinpoint failure intervals and required maintenance timeframes. Waiting to
replace a light bulb when it fails is acceptable; waiting to maintain, repair, or replace a
critical element of an operation is another issue. This is especially relevant if the repair or
replacement could have been easily scheduled when the equipment was not running, such as
a weekend or night shift. Procrastination and cost avoidance are commonly the culprits. Cost
avoidance in this situation is a very shortsighted approach when thousands or even millions
of dollars may easily be lost in a matter of minutes of downtime caused by a critical failure.
Companies that minimize the time required to take a product from concept to
production gain strategic advantages over the competition. Two issues reinforce this concept.
First, the sooner a company moves an idea to market, the sooner higher market
shares, higher profits, and lower development costs will be realized.
Lean companies with shorter lead times could bring a concept to the hands of the
consumer while the competition was still developing it, even if the sixty-month company had
established the concept initially. Now, partnerships, concurrent engineering, and Leaning out
the new product development process have allowed most automobile companies to shorten
their lead times to eighteen months or less.
The goal is not to reduce the number of setups, but to reduce the required setup time
that results in machine downtime for each occurrence of the setup. Simply reduce the amount
of time tried to set up the process or machine when it is not running or in production. This is
referred to as internal setup time.
Setup time that takes place when a process or machine is running is referred to as
external setup time. The premise is that in many processes, the machinery is producing, not
the operator. At the very least, the operator is not 100% utilized or occupied. As a result, the
operator may, depending on the process and the machinery, perform some setup tasks during
the time that the process or machine is running. This may not always be the case. Totally
manual operations require that the operator is present at the station, or no production may
take place. Typical tasks include obtaining tools, parts, and materials. Some of the original
internal tasks may actually be eliminated as in the case of multiple adjustments or zeroing in
on a setting. Setting marks, or poka-yokes, ensure at least a starting point for settings, if not
the final setting.
The key to Setup Time Reduction projects is to revisit the setup operation
periodically to audit the results from the previous project, and to reduce the setup time again
and again.
0 25 50 75 100
Productivity Increase
WIP Reduction
Quality Improvement
Space Utilization
Establishment and mastering of a lean production system would allow you to achieve
the following benefits:
These are areas in an establishment that directly affects its survival. There are many
other benefits also which directly or indirectly affects the performance of the industry.
OTHER BENEFITS
Cross-trained employees
Reduced obsolescence
Lower inventories
However, by continually focusing on waste reduction, there are truly no ends to the
benefits that can be achieved.
5 CONCLUSION
“LEAN” can be said as adding value by eliminating waste being responsive to
change, focusing on quality and enhancing the effectiveness of the work force.
Although lean has its origin in the automobile industry it is being successfully used in
other production industries. Lean manufacturing is now extended to fields like I.T, service
etc in order to reduce production cost and meet changing customer needs.
Lean has made its way into curriculum of major universities around the world. In
universities like MIT, Maryland university etc Lean manufacturing is included into the
syllabus and it is given importance to new entrepreneurs. Many consulting firms are also
functioning for proper guidance to those who are interested in lean.
Lean manufacturing cannot be attained in one day or one week or one month or in a
year. It needs lot of commitment and hard work. Also there is no end in lean manufacturing.
The more you eliminate waste the more you become lean. That is why it is said that:
“lean is a journey”
6 REFERENCES
1. James P Womack & Daniel T Jones : Lean Thinking
2. Mekong Capital : Introduction to Lean Manufacturing for Vietnam
3. Tompkins Associates : Lean Manufacturing
4. Jeffrey Liker : The Toyota Way
5. Jeffrey Liker & Thomas Lamb : Lean Manufacturing Principles Guide V5.0
6. http://www.oppapers.com/essays/Lean-Manufacturing/123372?read_essay
7. http://www.seminarprojects.com/Thread-lean-manufacturing-full-report