Seminar Report On Lean Manufacturing

Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 26

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.

The methodology that an increasing number of companies are using to


accomplish such a business strategy is the implementation of the Toyota Production System
(TPS), also called lean manufacturing.

Lean Manufacturing is best defined as a management philosophy that focuses


on reducing waste in all business processes. Although it originates from a time when the
Toyota of today was a manufacturer of power looms, in its modern form, lean was pioneered
by Toyota Motor Co. in the 1950's, when it dared compete with U.S. automakers who at the
time dominated a seemingly impenetrable U.S. automobile market.

DEPT OF MECHANICAL ENGINEERING, BVBCET Page 1


Lean Manufacturing

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.

DEPT OF MECHANICAL ENGINEERING, BVBCET Page 2


Lean Manufacturing

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 Lean Concept refers to a collection of tools used to promote long-term


profitability, growth, and .doing more with less. This seemingly impossible task is
achievable. In the past, increasing production efficiency required employees to work harder
or longer, and machines to run faster. These methods work temporarily, but ultimately cause
great problems. Accident rates increase, unions claim labor abuse, and overtaxed equipment
breaks down. So, how do you increase efficiency without working harder or longer? The
simple answer is by eliminating waste. Waste normally represents between 55 and 95% of
the manufacturing process. All manufacturing processes are either value-added or non-value-
added. Value-added processes mold, transform, or otherwise change raw materials into a
finished product. Non-value-added activities include transporting material, conducting
inspections, bar coding, and others. Implementing Lean Manufacturing involves streamlining
the non-value-added processes as much as possible, because it represents as much as 75% of
the total manufacturing process.

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

NEW MODEL: PROFIT = SALES PRICE –COST

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.

DEPT OF MECHANICAL ENGINEERING, BVBCET Page 4


Lean Manufacturing

4. THEORY

Lean manufacturing is a manufacturing system and philosophy that was


originally developed by Toyota, Japan and is now used by many manufacturers throughout
the world.

Lean Manufacturing can be defined as:

"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."

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 WASTES IN MANUFACTURING

The aim of Lean Manufacturing is the elimination of waste in every area of


production including customer relations, product design, supplier networks, and factory
management. Its goal is to incorporate less human effort, less inventory, less time to develop
products, and less space to become highly responsive to customer demand while producing
top quality products in the most efficient and economical manner possible. 
Essentially, a "waste" is anything that the customer is not willing to pay for.
Typically the types of waste considered in a lean manufacturing system include:

DEPT OF MECHANICAL ENGINEERING, BVBCET Page 5


Lean Manufacturing

4.1.1 OVERPRODUCTION

To produce more than demanded or produce it before it is needed. It is visible


as storage of material. It is the result of producing to speculative demand. Overproduction
means making more than is required by the next process, making earlier than is required by
the next process, or making faster than is required by the next process.
Causes for overproduction waste include:

• Just-in-case logic

• Misuse of automation

• Long process setup

• Unleveled scheduling

• Unbalanced work load

• Over engineered

• Redundant inspections 

4.1.2 WAITING

. The principle is to maximize the utilization/efficiency of the worker instead


of maximizing the utilization of the machines.

Causes of waiting waste include:

• Unbalanced work load

• Unplanned maintenance

• Long process set-up times

• Misuses of automation

• Upstream quality problems

• Unleveled scheduling

DEPT OF MECHANICAL ENGINEERING, BVBCET Page 6


Lean Manufacturing

4.1.3 INVENTORY OR WORK IN PROCESS (WIP)

This is material between operations due to large lot production or processes


with long cycle times.

Causes of excess inventory include:

• Protecting the company from inefficiencies and unexpected problems

• Product complexity

• Unleveled scheduling

• Poor market forecast

• Unbalanced workload

• Unreliable shipments by suppliers

• Misunderstood communications

• Reward systems

4.1.4 PROCESSING WASTE

It should be minimized by asking why a specific processing step is needed and


why a specific product is produced. All unnecessary processing steps should be eliminated. 
Causes for processing waste include:

• Product changes without process changes 

• Just-in-case logic 

• True customer requirements undefined 

• Over processing to accommodate downtime 

• Lack of communications 

• Redundant approvals 

• Extra copies/excessive information 

DEPT OF MECHANICAL ENGINEERING, BVBCET Page 7


Lean Manufacturing

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).

Causes of transportation waste include:

• Poor plant layout 

• Poor understanding of the process flow for production 

• 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.

Causes of motion waste include: 

• Poor people/machine effectiveness 

• Inconsistent work methods 

• Unfavorable facility or cell layout 

• Poor workplace organization and housekeeping 

• Extra "busy" movements while waiting 

DEPT OF MECHANICAL ENGINEERING, BVBCET Page 8


Lean Manufacturing

4.1.7 MAKING DEFECTIVE PRODUCTS

This is pure waste. Prevent the occurrence of defects instead of finding and
repairing defects. 

Causes of defective products include: 

• Weak process control 

• Poor quality 

• Unbalanced inventory level 

• Deficient planned maintenance 

• Inadequate education/training/work instructions 

• Product design 

• Customer needs not understood 

4.1.8 UNDER UTILISING PEOPLE

Not taking advantage of people's abilities.

Causes of people waste include: 

• Old guard thinking, politics, the business culture 

• Poor hiring practices 

• Low or no investment in training 

• Low pay, high turnover strategy 

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. 

DEPT OF MECHANICAL ENGINEERING, BVBCET Page 9


Lean Manufacturing

4.2 ELEMENTS OF LEAN MANUFACTURING

Those concepts that lead to the implementation of lean manufacturing


successfully are called elements of lean manufacturing. The basic elements of lean
manufacturing are waste elimination, continuous improvement, pull system, one-piece
workflow, cellular manufacturing and 5S’s. When these elements are focused in the areas of
cost, quality and delivery, this forms the basis for a lean production system.

4.2.1 ELIMINATION OF WASTE

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

Is this the best way to do it? Can it be eliminated?

If not, can it be reduced?

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.

4.2.1 CONTINUOS IMPROVEMENT


DEPT OF MECHANICAL ENGINEERING, BVBCET Page 10
Lean Manufacturing

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.

4.2.3 PULL SYSTEM

DEPT OF MECHANICAL ENGINEERING, BVBCET Page 11


Lean Manufacturing

Manufacturing system can be divided into two

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.

4.2.4 ONE PIECE FLOW

DEPT OF MECHANICAL ENGINEERING, BVBCET Page 12


Lean Manufacturing

One piece flow is one of the important techniques in implementing lean


manufacturing. Traditional batch production in mass production is replaced by one piece
flow in lean manufacturing. Here batch size is reduced to almost one. This reduces the total
lead time and also reduces waiting between operations or queuing.
Following figures show how effective is one piece flow over batch production.

• Batch & Queue


Processing
Proces Proces Proces
s A s B s C

10 minutes 10 minutes

10 minutes

Lead Time: 30+ minutes for total order


21+ minutes for first piece

• One piece
flow

Proces Proces Proces


s A s B s C

12 min. for total order


3 min. for first part

DEPT OF MECHANICAL ENGINEERING, BVBCET Page 13


Lean Manufacturing

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.

4.2.5 CELLULAR MANUFACTURING

In traditional mass production machines are arranged according to its


functions. But in cellular manufacturing machines are arranged according to the processes
involved in production. The plants layout is designed in such a way that transportation
between machineries is reduced to minimum. For the implementation of such a good plant
layout deep knowledge of processes as well as proper analysis of processes involved in
production is necessary.

Following figures shows the diagrammatic representation of both forms of floor


arrangement.

FUNCTIONAL CELLS

CELL ADVANTAGES OVER FUNCTIONAL DEPARTMENT

1. Shorter Lead Time


DEPT OF MECHANICAL ENGINEERING, BVBCET Page 14
Lean Manufacturing

2. Improved Quality - Quicker problem identification

3. Improved Quality - Less potential rework or scrap

4. Less Material Handling

5. Improved Coordination

6. Reduced Inventory

7. Departmental conflicts eliminated

8. Simplified Scheduling

9. Less Space Required

4.2.6 THE 5S’s

It is the Japanese method of keeping the work place clean and tidy. This helps
in reducing many unnecessary movements.

The 5S’s are:

•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.

•Shine (Seiso) - Clean everything, inside and out.

•Standardize (Seiketsu) - Create the rules for maintaining and controlling the first
3S’s and use visual controls.

•Sustain (Shitsuke) - Ensure adherence to the 5S standards through communication,


training, and self-discipline.

DEPT OF MECHANICAL ENGINEERING, BVBCET Page 15


Lean Manufacturing

4.2.7 JUST IN TIME

The notion of pushing materials in large quantities no longer makes sense.


Both the financial cost and the required resources of doing otherwise are not smart. Just In
Time simply promotes the concept, both internally and externally, that it is wise to deliver
materials only just before they are needed and only in the quantity required.

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.

4.2.8 Total Productive Maintenance

Total Productive Maintenance (TPM) is a Lean concept based on three simple


ideas. The first is that preventive maintenance schedules must be developed and adhere to.
This simple idea is routinely ignored and abused by the best of organizations. Establishing a
preventive maintenance schedule and placing it in a book is the easy part. It is much more
difficult to manage a system to ensure that the tasks are being performed in the timeframe

DEPT OF MECHANICAL ENGINEERING, BVBCET Page 16


Lean Manufacturing

dictated by the schedule. Even when it is impossible to meet a preventive maintenance


deadline, contingency plans and drop-dead dates should keep the system running smoothly.

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.

Last and most importantly, simpler maintenance tasks may be delegated to


those who know the equipment the best. The normal temperature, sound, vibration, smell,
feel, and look of a machine are clearly known by its operators. In turn, when the machine is
not operating normally, the operators easily detect it. Rather than leaving a machine to beg
for assistance, the operators may lubricate equipment and perform other basic or routine
maintenance functions, either on schedule, or when vibrations, excessive temperatures, or
other anomalies are observed. Granted not all maintenance functions should be assigned to
the operators, but in some environments the operators are responsible and have ownership for
all maintenance of the equipment they operate. This creates a stronger bond between the
operator and his equipment, and eliminates much of the finger pointing and misdiagnoses
that normally occur when dedicated personnel perform all the maintenance. This concept also
adds to the multifunctionality of the operator. Commonly, both the operator and the
maintenance shop share the responsibilities.

4.2.9 Lead-Time Reduction

DEPT OF MECHANICAL ENGINEERING, BVBCET Page 17


Lean Manufacturing

Lead-Time Reduction is applicable on the factory floor and in non-


manufacturing arenas. One of the most common applications of lead-time reduction is new
product development.

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.

Second, bringing an eighteen-month-old idea to market is preferable to a sixty-month-


old idea. Before 1990, a sixty-month development lead-time was not uncommon for most
automobile companies.

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.

4.2.10 Setup Time Reduction

Manufacturing lead-time reduction is a primary focus in today’s competitive


environment. Many elements comprise manufacturing lead-time, such as material
preparation, movement, and setup time. Setup time is directly related to production lot sizes.
As setup times are reduced, lot sizes may also be reduced. Reducing lot sizes decreases total
manufacturing lead-time geometrically, particularly when the process involves multiple
operations.

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.

DEPT OF MECHANICAL ENGINEERING, BVBCET Page 18


Lean Manufacturing

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.

A poka-yoke is an error-proofing device, such as the connectors used on personal


computers. The poka-yoke will not allow the connection of the cable in the wrong
configuration. Likewise, a poka-yoke will not allow the operator to do something incorrectly.
Each of these little bites allows us to eat an elephant. The elephant is a large block of wasted
time. Most internal setup times may be reduced. between 30 and 70% per discrete project,
depending on the operation.

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.

DEPT OF MECHANICAL ENGINEERING, BVBCET Page 19


Lean Manufacturing

4.3 COMPARISON BETWEEN TRADITIONAL AND LEAN


MANUFACTURING
For years manufacturers have created products in anticipation of having a
market for them. Operations have traditionally been driven by sales forecasts and firms
tended to stockpile inventories in case they were needed. A key difference in Lean
Manufacturing is that it is based on the concept that production can and should be driven by
real customer demand. Instead of producing what you hope to sell; Lean Manufacturing can
produce what your customer wants with shorter lead times. Instead of pushing product to
market, it's pulled there through a system that's set up to quickly respond to customer
demand.

Lean organizations are capable of producing high-quality products economically in


lower volumes and bringing them to market faster than mass producers. A lean organization
can make twice as much product with twice the quality and half the time and space, at half
the cost, with a fraction of the normal work-in-process inventory. Lean management is about
operating the most efficient and effective organization possible, with the least cost and zero
waste.

4.3.1 OVERALL ORGANIZATIONAL CHARACTERISTICS:

  TRADITIONAL MASS LEAN PRODUCTION


PRODUCTION
Business Strategy Product-out strategy focused on Customer focused strategy focused
exploiting economies of scale of on identifying and exploiting
stable product designs and non- shifting competitive advantage.
unique technologies
Customer Makes what engineers want in large Makes what customers want with
Satisfaction quantities at statistically acceptable zero defect, when they want it, and
quality levels; dispose of unused only in the quantities they order
inventory at sale prices
Leadership Leadership by executive command Leadership by vision and broad
participation

DEPT OF MECHANICAL ENGINEERING, BVBCET Page 20


Lean Manufacturing

Organization Hierarchical structures that Flat structures that encourage


encourage following orders and initiative and encourage the flow of
discourage the flow of vital vital information that highlights
information that highlights defects, defects, operator errors, equipment
operator errors, equipment abnormalities, and organizational
abnormalities, and organizational deficiencies.
deficiencies.

External Relations Based on price Based on long-term relationships


Information Management Information-weak Information-rich management based on
management based on visual control systems maintained by
abstract reports all employees
Cultural Culture of loyalty and Harmonious culture of involvement
obedience, subculture of based on long-term development of
alienation and labor strife human resources
Production Large-scale machines, Human-scale machines, cell-type
functional layout, layout, multi-skilling, one-piece flow,
minimal skills, long zero inventories
production runs, massive
inventories
Operational capability Dumb tools that assume Smart tools that assume standardized
an extreme division of work, strength in problem
labor, the following of identification, hypothesis generation,
orders, and no problem and experimentation
solving skills
Maintenance Maintenance by Equipment management by
maintenance specialists production, maintenance and
engineering
Engineering "Isolated genius" model, Team-based model, with high input
with little input from from customers and concurrent
customers and little development of product and
respect for production production process design
realities.

DEPT OF MECHANICAL ENGINEERING, BVBCET Page 21


Lean Manufacturing

4.3.2 MANUFACTURING METHODS:

  TRADITIONAL MASS LEAN PRODUCTON


PRODUCTION
Production schedules are Forecast — product is Customer Order — product is
based on… pushed through the facility pulled through the facility
Products manufactured Replenish finished goods Fill customer orders (immediate
to… inventory shipments)
Production cycle times Weeks/months Hours/days
are…
Manufacturing lot size Large, with large batches Small, and based on one-piece flow
quantities are… moving between operations; between operations
product is sent ahead of
each operation
Plant and equipment By department function By product flow, using cells or lines
layout is… for product families
Quality is assured… Through lot sampling 100% at the production source
Workers are typically One person per machine With one person handling several
assigned… machines
Worker empowerment Low — little input into High — has responsibility for
is… how operation is identifying and implementing
performed improvements
Inventory levels are… High — large warehouse Low — small amounts between
of finished goods, and operations, ship often

DEPT OF MECHANICAL ENGINEERING, BVBCET Page 22


Lean Manufacturing

central storeroom for in-


process staging
Inventory turns are… Low — 6-9 turns pr year High — 20+ turns per year
or less
Flexibility in changing Low — difficult to handle High — easy to adjust to and
manufacturing schedules and adjust to implement
is…
Manufacturing costs Rising and difficult to Stable/decreasing and under control
are… control

4.3.4 BENEFITS OF LEAN MANUFACTURING


According to the study conducted in various industries world over the main benefits
achieved by implementation of lean manufacturing is as shown below.

Percentage of Benefits Achieved

0 25 50 75 100

Lead Time Reduction

Productivity Increase

WIP Reduction

Quality Improvement

Space Utilization

(From ERC staff meeting, march 20, 2002, Maryland University)

DEPT OF MECHANICAL ENGINEERING, BVBCET Page 23


Lean Manufacturing

Establishment and mastering of a lean production system would allow you to achieve
the following benefits:

 Lead time is reduced by 90%

 Productivity is increased by 50%

 Work in process is reduced by 80%

 Quality is improved by 80%

 Space utilization is increased by 75%

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

 Reduced scrap and waste

 Reduced inventory costs

 Cross-trained employees

 Reduced cycle time

 Reduced obsolescence

 Lower space/facility requirements

 High quality & reliability

 Lower overall costs

 Self-directed work teams

 Lead time reduction

 Fast market response

 Longer machine life

 Improved customer communication

DEPT OF MECHANICAL ENGINEERING, BVBCET Page 24


Lean Manufacturing

 Lower inventories

 Improved vendor support and quality

 Higher labor efficiency and quality

 Improved flexibility in reacting to changes

 Allows more strategic management focus

 Increased shipping and billing frequencies

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.

Since lean is completely customer oriented it is here to stay. It is also important as it


emphasis customer satisfaction.

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”

DEPT OF MECHANICAL ENGINEERING, BVBCET Page 25


Lean Manufacturing

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

DEPT OF MECHANICAL ENGINEERING, BVBCET Page 26

You might also like