INTRODUCTION

 WHAT IS LEAN MANUFACTURING?

Lean Manufacturing, also called Lean Production, is a set of tools and methodologies that aims
for the continuous elimination of all waste in the production process. The main benefits of this
are lower production costs, increased output and shorter production lead times. More
specifically, some of the goals include:

1. Defects and wastage - Reduce defects and unnecessary physical wastage, including excess
use of raw material inputs, preventable defects, costs associated with reprocessing defective
items, and unnecessary product characteristics which are not required by customers;

2. Cycle Times - Reduce manufacturing lead times and production cycle times by reducing
waiting times between processing stages, as well as process preparation times and
product/model conversion times;

3. Inventory levels - Minimize inventory levels at all stages of production, particularly works-in
progress between production stages. Lower inventories also mean lower working capital
requirements;

4. Labor productivity - Improve labor productivity, both by reducing the idle time of workers
and ensuring that when workers are working, they are using their effort as productivity as
possible

5. Utilization of equipment and space - Use equipment and manufacturing space more
efficiently by eliminating bottlenecks and maximizing the rate of production though existing
equipment, while minimizing machine downtime;

6. Flexibility - Have the ability to produce a more flexible range of products with minimum
changeover costs and changeover time.

7. Output – Insofar as reduced cycle times, increased labor productivity and elimination of
bottlenecks and machine downtime can be achieved companies can generally significantly
increased output from their existing facilities Another way of looking at Lean Manufacturing is
that it aims to achieve the same output with less inputs – less time, less space, less human
effort, less machinery, less materials, less costs

Most of these benefits lead to lower unit production costs.

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LITERATURE SURVEY
 History:
Many of the concepts in Lean Manufacturing originate from the Toyota Production System (TPS) and
have been implemented gradually throughout Toyota’s operations beginning in the 1950's. By the
1980’s Toyota had increasingly become known for the effectiveness with which it had implemented
Just-In-Time (JIT) manufacturing systems Today, Toyota is often considered one of the most efficient
.manufacturing companies in the world and the company that sets the standard for best practices in
Lean Manufacturing. The term “Lean Manufacturing” or “Lean Production” first appeared in the
1990.The book “The Machine that Changed the World”

Lean Manufacturing has increasingly been applied by leading manufacturing

companies throughout the world, lead by the major automobile manufactures and their equipment
suppliers. Lean Manufacturing is becoming an increasingly important topic for manufacturing
companies in developed countries as they try to find ways to compete more effectively against
competition from Asia.

 Key Principles of Lean Manufacturing :

1. Recognition of waste – The first step is to recognize what does and does not create
value from the customer’s perspective. Any material, process or feature which is not
required for creating value from the customer’s perspective is waste and should be
eliminated. For example, transporting materials between workstations is waste because it
can potentially be eliminated.

2. Standard processes – Lean requires an the implementation of very detailed production

guidelines, called Standard Work, which clearly state the content, sequence, timing and
outcome of all actions by workers. This eliminates variation in the way that workers perform
their tasks.

3. Continuous flow – Lean usually aims for the implementation of a continuous production
flow free of bottlenecks, interruption, detours, backflows or waiting. When this is
successfully implemented, the production cycle time can be reduced by as much as 90%.

4. Pull-production – Also called Just-in-Time (JIT), Pull-production aims to produce only

what is needed, when it is needed. Production is pulled by the downstream workstation so
that each workstation should only produce what is requested by the next workstation.

5. Quality at the Source – Lean aims for defects to be eliminated at the source and for
quality inspection to be done by the workers as part of the in-line production process.

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6. Continuous improvement – Lean requires striving for perfection by continually removing
layers of waste as they are uncovered. This in turn requires a high level of worker
involvement in the continuous improvement process. efficient combination to maximize
value-added activities while minimizing waste. A cell layout is typically U-shaped and utilizes
one-piece flow.

 lean manufacturing concepts

Value Creation and Waste

In lean manufacturing the value of a product is defined soley based on what customer
requires and is willing to pay for .production operation can be grouped into following three
activities:

 Value-added activities are activities which transform the materials into the exact product
that the customer requires.
 Non value-added activities are activities which aren’t required for transforming the
materials into the product that the customer wants. Anything which is non-value-added
may be defined as waste. Anything that adds unnecessary time, effort or cost is
considered non value-added. Another way of looking at waste is that it is any material or
activity for which the customer is not willing to pay. Testing or inspecting materials is
also considered waste since this can be eliminated insofar as the production process can
be improved to eliminate defects from occurring. waste
 Necessary non value-added activities are activities that don’t add value from the
perspective of the customer but are necessary to produce the product unless the existing
supply or production process is radically changed. This kind of waste may be eliminated
in the long-run but is unlikely to be eliminated in the near-term. For example, high levels
of inventory may be required as buffer stock, although this could be gradually reduced as
production becomes more stable.
 Research at the Lean Enterprise Research Centre (LERC) in the United Kingdom
indicated that for a typical manufacturing company the ratio of activities could be broken
down from the following percentages as given below

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  Value-added activity- 5%
 Non value-added activity -60%
 Necessary non value-added activity -35%
 Total activities -100%
This implies that up to 60% of the activities at a typical manufacturing company could
potentially be eliminated.

     

comparison between traditional and lean manufacturing system:-

Traditional batch manufacturing Lean manufacturing

orientation Supply driven Customer driven

planning Orders are pushed though Orders are pulled through
factory based on production plan factory based on customer
Batch size large small
Quality Checking of samples by QC In-line inspection by workers
inspection inspectors
inventory Buffer of work in progress Little or no work in progress in
between each production stage each production stage
Hand off work Materials after each stage Material handed off directly
in progress accumulate into works in from one production stage to
progress storage area before next
being retrieved by next
production stage
Production Total production cycle Total production cycle
cycle time significantly longer than actual shortens to approach time
time spent processing spent actually in processing
METHODOLOGY OF MANUFACTURING

 Lean manufacturing cycle

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 Main Kinds of Waste

Originally 7 main types of waste were identified as part of the Toyota Production System.
However, this list has been modified and expanded by various practitioners of lean
manufacturing and generally includes the following:

1. Over-production – Over-production is unnecessarily producing more than demanded or

producing it too early before it is needed. This increases the risk of obsolescence, increases the
risk of producing the wrong thing and increases the possibility of having to sell those items at a
discount or discard them as scrap. However, there are some cases when an extra supply of
semi-finished or finished products are intentionally maintained, even by lean manufacturers.

2. Defects – In addition to physical defects which directly add to the costs of goods sold, this
may include errors in paperwork, provision of incorrect information about the product, late
delivery, production to incorrect specifications, use of too much raw materials or generation of
unnecessary scrap.

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3. Inventory – Inventory waste means having unnecessarily high levels of raw materials, works-
in progress and finished products. Extra inventory leads to higher inventory financing costs,
higher storage costs and higher defect rates. For more on this, please see section 2.5 below.

4. Transportation - Transportation includes any movement of materials that does not add any
value to the product, such as moving materials between workstations. The idea is that
transportation of materials between productions stages should aim for the ideal that the
output of one process is immediately used as the input for the next process. Transportation
between processing stages results in prolonging production cycle times, the inefficient use of
labor and space and can also be a source of minor production stoppages.

5. Waiting – Waiting is idle time for workers or machines due to bottlenecks or inefficient
production flow on the factory floor. Waiting also includes small delays between processing of
units. Waiting results in a significant cost insofar as it increases labor costs and depreciation
costs per unit of output.

6. Motion – Motion includes any unnecessary physical motions or walking by workers which
diverts them from actual processing work. For example, this might include walking around the
factory floor to look for a tool, or even unnecessary or difficult physical movements, due to
poorly designed ergonomics, which slow down the workers.

7. Correction – Correction, or reprocessing, is when something has to be re-done because it

wasn’t done correctly the first time. This not only results in inefficient use of labor and
equipment but the act of re-processing often causes disruptions to the smooth flow of
production and therefore generates bottlenecks and stoppages. Also, issues associated with
reworking typically consume a significant amount of management time and therefore add to
factory overhead costs.

8. Over-processing – Over-processing is unintentionally doing more processing work than the

customer requires in terms of product quality or features – such as polishing or applying
finishing on some areas of a product that won’t be seen by the customer.

9. Knowledge Disconnection – This is when information or knowledge isn’t available where or

when it is needed. This might include information on correct procedures, specifications, ways to
solve problems, etc. Lack of correct information often leads to defects and bottlenecks. For
example, unavailability of a mixing formula may potentially suspend the entire process or
create defective items due to time-consuming trial-and-error tests.

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 Pull Production

A core concept of Lean Manufacturing is Pull Production in which the flow on the factory floor is
driven by demand from downstream pulling production upstream as opposed to traditional
batch-based production in which production is pushed from upstream to downstream based on
a production schedule. This means that no materials will be processed until there is a need
(signal) from downstream. For example, in pull production a customer order creates demand
for finished product, which in turn creates demand for final assembly, which in turn creates
demand for sub-assemblies, and so on up the supply chain. The specific implications of this are
as follows:

1. Orders start at most downstream stage - When an order is received from the customer and
communicated to the factory floor, the production order is initially placed with the most
downstream workstation (such as packaging or final assembly) as opposed to the most
upstream workstations (such as initial processing of raw materials). This practice requires a very
effective communication system that ensures that upstream suppliers are continuously aware
of what is needed by their downstream customers. Please also see section 3.13 on Kanban for
more information on this.

2. Product is pulled through production based on demand from downstream process - Each
production stage or workstation is seen as a customer of the production stage or workstation
immediately upstream of it. Nothing is produced by the upstream supplier until demanded by
the downstream customer.

3. Rate of production is driven by downstream consumption rates – The rate of production at

each production stage or workstation is equal to the rate of demand/consumption from its
downstream customer. Pull production is the same as Just-in-Time (JIT) which means that raw
materials or works-in-progress are delivered with the exact amount and “just in time” for when
the downstream workstation needs it.

The ideal of pull production is that the materials will be available from the supplier (upstream
stage) exactly when the customer (downstream stage) needs them. This means that all
inventory in the factory is being processed, as opposed to waiting to be processed, and that the
customer usually must plan ahead by anticipating what it will require based on the turnaround
time for the supplier. For example, if it takes the supplier 2 hours to deliver materials when
ordered by the customer, the customer will have to order ahead by 2 hours so that the
materials will be ready when the customer needs it.

The ideal of pull production is that the materials will be available from the supplier (upstream
stage) exactly when the customer (downstream stage) needs them. This means that all

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inventory in the factory is being processed, as opposed to waiting to be processed, and that the
customer usually must plan ahead by anticipating what it will require based on the turnaround
time for the supplier. For example, if it takes the supplier 2 hours to deliver materials when
ordered by the customer, the customer will have to order ahead by 2 hours so that the
materials will be ready when the customer needs it.

 Different models of Pull Production

Many lean manufacturers intentionally maintain certain inventories of raw materials, semi-
finished products and finished products in order to:

• protect against variations in customer demand;

• protect against unexpected late shipments from suppliers or production slowdowns;

• smooth production flow by producing some items on a continuous basis even if not required
by the customer;

• accommodate the fact that raw materials must be delivered in batches and that finished
products must be shipped in batches;

• accommodate the fact that some processing must be done in batches due to the nature of
the equipment or the process.

Generally speaking, the less predicable customer orders, the more unstable production (such as
unintentional slowdowns and bottlenecks), or the less reliable the raw materials suppliers, the
greater the inventory that will be required to buffer against sudden changes in customer
demand, production instability or raw materials shortages. In such cases, lean manufacturers
intentionally maintain inventories of raw materials, semi-finished products or finished products
to buffer against such events.

In order to accommodate these situations, there are different models for implementing pull
based production, including the following:

1. Replenishment Pull System – In a replenishment pull system, the company intentionally

maintains inventories of each type of finished product and only when the inventory of a certain
finished product falls below a certain level a replenishment order is issued to produce more of
the product. Replenishment pull is more common when a company has a large number of small
volume customers who order standardized products. In a replenishment pull system,
production schedules are more predicable so low inventories of raw materials are required.

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2. Sequential Pull System – In a sequential pull system, orders are placed on the factory floor
only when demanded by an outside customer. All products are made on a made-to-order basis.
Sequential pull is more common when a company has a small number of large volume
customers who order customized products. Although companies using this system should have
lower inventories of finished products, they will typically require larger inventories of raw
materials or semi-finished materials due to less predictability in the production schedule (due
to difficulty predicting exactly what customer orders will be placed and when).

3. Mixed Pull System – In a mixed pull system, certain elements of replenishment and
sequential pull systems are used in conjunction with each other.

For example, a company may produce some products on a replenishment pull basis while
producing other products on a sequential pull basis.

Alternatively, a company may use replenishment pull for part of the production process and
sequential pull for a different part of the production process. An example of this would be a
company that maintains a managed level of inventory of certain semi-finished items but only
produces a finished product when ordered by the customer. In such a case, the company
applies a replenishment pull system for producing the semi-finished items and applies a
sequential pull process for the remainder of the production process. In the Toyota Production
System, production is triggered to restock semi-finished items so that whenever an item is
needed, it is available

 Pull production results in the elimination of unnecessary inventory between processing

stages. High levels of inventory between processing stages result in higher defect rates
for the following reasons:

1. Non-detection of defects in batch processing – in batch processing, more defective units will
be produced before being detected at the next processing stage. For example, if the batch size
of a bag printing process is three thousand pieces at a time before going to the next
workstation and the quality controller doesn’t identify the defect, it is likely that many defective
bags will have been produced before the errors are discovered by the next workstation.

2. Defects and wastage from storage and transportation - some defects occur during
transportation and storage. For example, in the furniture industry exposure to humidity during
storage can contribute to high moisture content which may be considered a defect. Meanwhile,
the act of storing inventory requires extra labor, energy and space.

3. Direct accountability - when there is an inventory queue between two production stages,
there is no direct connection between the two production stages. The downstream stage may
not even know which worker or team produced particular items. When there is less

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accountability by the upstream worker/team, it is more likely to make a defective product or
not produce exactly to customer specifications. Conversely, a direct handoff and immediate
usage by the downstream worker/team will help ensure that the upstream worker/team takes
full responsibility to only produce items which will be accepted by the downstream
worker/team.

However, as mentioned in the previous section, there are some cases inventory is essential for
ensuring smooth production and therefore certain kinds of inventory should be maintained at a
managed level to ensure that no disruption occurs.

 Impact of Pull-Production on Production Planning

Most private manufacturing companies in Vietnam are using a centrally planned system
whereby the Production Planning Manager develops a production schedule and allocates
orders to workstations in batches. This is a push-based system, meaning that inventory gets
pushed though the production process based on the production schedule. The Materials
Requirements Planning (MRP) module of most Enterprise Resource Planning (ERP) systems
operates on this basis. In a push-based system, if the production forecasting systems is not
accurate (which is often the case for Vietnamese manufacturing companies) or the Production
Planning Manager doesn’t have perfect information about production status and demand at
each stage of the production process or doesn’t have effective tools for analyzing this (which is
also often the case at Vietnamese manufacturing companies), he/she may allocate too much or
too little work to different teams and workstations, thereby resulting in bottlenecks, excess
inventory, low likelihood of being able to produce on a continuous flow basis, and inefficient
use of resources in general. In contrast, a key element of the pull-based system is that, with the
exception of production leveling, the allocation and flow of work on the factory floor is
determined based on demand on the factory floor and not based on a production schedule or
centrally planned production allocation system.

Although lean manufacturing companies still have a production plan, the plan is primarily used
for the following:

• planning capacity requirements, including changes to the configuration of production lines or

cells;

• planning labor requirements;

• smoothing the flow of orders to the factory floor

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 Continuous Flow

Continuous flow is the linking of manual and machine operations into a perfectly smooth
flow in which works-in-progress are continuously undergoing some form of processing and
never become stagnant waiting to be processed. Continuous flow eliminates waiting time
for works-in-progress, equipment or workers.

In Continuous Flow, the ideal is one-piece flow or small batches which can be processed
with virtually no waiting time between production stages.

Continuous Flow may require a redesign of the production layout away from groups of
similar workstations located near each other and towards highly integrated production lines
in which semi-finished products can move as quickly and easily as possible from one
production stage to the next.

• When Simms Fishing Products, a U.S. based manufacturer of garments used by fishermen,
implemented Lean Manufacturing, their production throughout (i.e. the total time from the
start to the finish of the production process) fell from 17 days to 2-3 days

• When Woodland Furniture Company, a U.S. based manufacturer of high-end wood

furniture, implemented lean manufacturing, lead times were reduced from 12 weeks to 1
week

 Continuous Improvement / Kaizen

A company can never be perfectly efficient. Lean Manufacturing requires a commitment to

continuous improvement, and preferably a systematic process for ensuring continuous
improvement, whereby the company constantly searches for non value-added activities and
ways to eliminate those. The focus of continuous improvement should be on identifying the
root causes of non value-added activities and eliminating those by improving the production
process.

Kaizen is a Japanese term for “continuous improvement”, with an emphasis on small

incremental improvements. A main theme of Kaizen is to create a culture of continuous
improvement, largely by assigning responsibility to workers, and encouraging them, to
identify opportunities for improvement

 Worker Involvement
In Lean Manufacturing, workers are assigned clear responsibility to identify sources of non
value-added activities and to propose solutions to those Manufacturer’s typically believe
that the majority of useful ideas for eliminating non value-added activities typically

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originate with workers involved in those processes. A significant body of research also
substantiates this assertion

In order to ensure that ideas for eliminating non value-added activities are acted upon, the
power to decide on changes to the production processes are pushed down to the lowest
level possible (i.e. normal workers) but any such changes are required to meet certain
requirements. For example, at

Toyota workers are encouraged to implement improvements to the production processes

but the improvement must have a clear logic which is in accordance with the scientific
method, the improvement must be implemented under the supervision of an authorized
manager and the new process must be documented in a high level of detail covering
content, sequence, timing and outcome

Toyota initially implements the proposed changes on a small scale on a trial basis and if the
improvement is effective, Toyota will implement the change across its manufacturing
operations.

Two common ways to encourage worker involvement in the continuous improvement

process are:

1. Kaizen Circles - One way of increasing the levels of worker involvement is to implement
Kaizen Circles in which groups of 6-8 workers are formed to generate ideas for solving
particular problems. Typically a Kaizen Circle will meet for around one hour per week for 6-8
weeks and at the end of that period will present some proposals to their managers on how
to solve particular problems. Active involvement/support by managers is critical to the
success of Kaizen Circles.

2. Suggestion Programs - Another way of increasing worker involvement is having an active

suggestion program where people are strongly encouraged to make suggestions and
rewarded for suggestions that are successfully implemented. Often the cost of the reward is
require small relative to the value that is created for the company by implementing the
improvement.

Some experts in lean manufacturing maintain that high levels of worker involvement in
continuously suggesting improvements is a critical success factor in the implementation of
lean and is the key thing which differentiates Toyota from other companies in terms of its
success at implementing lean manufacturing principles

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 Cellular Layout

In cellular production layouts, equipment and workstations are arranged into a large
number of small tightly connected cells so that many stages or all stages of a production
process can occur within a single cell or a series of cells. Cellular layouts are characterized
by the following characteristics:

1. Continuous flow - There is a smooth flow of materials and components through the cell
with virtually no transport or waiting time between production stages.

2. One-piece flow - Cellular manufacturing utilizes a one piece flow so that one product
moves through the manufacturing process one piece at a time.

3. Multi-purpose workers - There is only one or several workers in each cell and unlike
batch processing where workers are responsible for a single process, in cell manufacturing
the cell workers are responsible for handling each of the different processes that occur in
the cell. Therefore each worker is trained to handle each process which occurs within the
cell.

4. U-shape – Cells are usually U-shaped, with the product moving from one end of the U to
the other end of the U as it is processed by the worker(s). The purpose of this is to minimize
the walking distance and movement of materials within a cell

 Administrative Lean

Administrative lean is the application of lean manufacturing concepts and tools to improve
administrative processes other than factory floor production. This is particularly relevant for
administrative processes which are repetitive and involve a high volume of transactions
such as order entry, purchasing, accounting or various kinds of back office processing.
However, the application of lean to administrative processes is less common than the
application of lean to production processes.

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 Standard Work

Standard work (also called “standardized work” or “standard process”) means that
production processes and guidelines are very clearly defined and communicated, in a high
level of detail, so as to eliminate variation and incorrect assumptions in the way that work is
performed. The goal is that production operations should be performed the same way every
time, except insofar as the production process is intentionally modified. When production
procedures are not highly standardized, workers may have different ideas of what the
correct operating procedure are and easily make incorrect assumptions. A high level of
process standardization also makes it easier for the company to expand capacity without
disruption.

The standard work guidelines used in Lean Manufacturing are typically defined in
significantly greater detail than the minimum required for conformity with 7.5.1. of
ISO9001:2000 on “Control of Production and Service Provision” particularly in terms of
standardizing the movements and work sequences of particular workers.

In Lean Manufacturing, standard work has several main elements:

1. Standard work sequence - This is the order in which a worker must perform tasks,
including motions and processes. This is clearly specified to ensure that all workers perform
the tasks in the most similar ways possible so as to minimize variation and therefore
defects. Ideally this is so detailed as to clearly describe every single hand movement by a
worker. For example, in wood cutting, the standard work sequence would describe every
specific cut and operating step from machine setup to materials handling, cutter
adjustment, manual movements and processing time. In an assembly process, it would
describe the exact sequential step-by step motions by which the item is assembled.

2. Standard timing – Takt time is the frequency with which a single piece is produced Takt
time is .used to clearly specify and monitor the rate at which a process should be occurring
at various production stages. For lean manufacturers, the Takt time of each production
process is actively managed and monitored so that a continuous flow can occur.

3. Standard in-process inventory – This is the minimum unit of materials, consisting

primarily of units undergoing processing, which are required to keep a cell or process
moving at the desired rate. This should be clearly determined since it is necessary to
maintain this minimum amount of in process inventory in order to not cause unnecessary
downtime. This is used to calculate the volume and frequency of orders, or Kanban, to
upstream suppliers

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 Communication of Standard Work to employees

Standard work guidelines shouldn’t only be textual manuals but should include pictures,
visual displays and even samples. Employees are unlikely to read boring textual production
manuals so visual displays and actual samples, including pictures, should be used as much
as possible. The guidelines should be clear and detailed, but at the same time be presented
in such a way that is as easy as possible for employees to understand and relevant to what
they need to know. This is particularly true in Vietnam since many of the workers may have
low education levels and will find visual displays easier to understand than written
materials. Some companies even apply video training for tasks which are more complicated
or safety-related.

 Standard work and flexibility

Some companies in Vietnam have expressed concern that having highly

standardized/defined production procedures will lead to inflexibility. Although standard
work requires a high level of detail, in Lean Manufacturing the standard work guidelines
should be updated as frequently as necessary to incorporate ongoing process
improvements. In fact, companies are encouraged to maximize the rate of process
improvement which means that the standard work guidelines are likely to change
frequently. Also, standard work typically includes clear guidelines for workers to handle
unusual situations, thereby empowering them to respond in flexible ways to unusual
situations. In order to implement this successfully, responsibility should be clearly delegated
for preparing and distributing the necessary documentation and visual aids, as well as
ensuring that any changes are clearly communicated to employees by their supervisors. As
long as this responsibility is clearly delegated, the standard work procedures can be
modified frequently. In fact, lean manufacturing companies such as Toyota are known for
their flexibility, both in terms of product mix and their ability to make rapid improvements
to their production processes, which also leads to quicker responses to customer’s changing
demands.

 The Five S’s

The Five S’s are some rules for workplace organization which aim to organize each worker’s
work area for maximum efficiency.

1. Sort – Sort what is needed and what is not needed so that the things that are frequently
needed are available nearby and as easy to find as possible. Things which are less often
used or not needed should be relocated or discarded.

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2. Straighten (or “Set in order”) – Arrange essential things in order for easy access. The
objective is to minimize the amount of motion required in order for workers to do their
jobs. For example, a tool box can be used by an operator or a maintenance staff who must
use various tools. In the tool box, every tool is placed at a fixed spot that the user can
quickly pick it up without spending time looking for it. This way of arrangement can also
help the user be immediately aware of any missing tools.

3. Scrub (or “Shine”) – Keep machines and work areas clean so as to eliminate problems
associated with un-cleanliness. In some industries, airborne dust is among the causes of
poor product surface or color contamination. To be more aware of dust, some companies
paint their working places in light colors and use a high level of lighting.

4. Stabilize (or “Standardize”) – Make the first 3 S’s a routine practice by implementing
clear procedures for sorting, straightening and scrubbing.

5. Sustain – Promote, communicate and train in the 5 S’s to ensure that it is part of the
company’s corporate culture. This might include assigning a team to be responsible for
supervising compliance with the 5 S’s.

 Batch Size Reduction

Lean Manufacturing aims for materials to flow on the factory floor in the smallest batch
sizes possible, with the ideal being one piece flow, so that works-in-progress between
processing stages can be minimized. The smaller the batch size, the more likely that each
upstream workstation will produce exactly what its customer needs, exactly when its
customer needs it.

Therefore, instead a few large production lines with large batch sizes, Lean Manufacturing
usually favors a larger number of small production lines with small batch sizes, with the
cellular layout being one version of this. The main benefits of smaller production lines are:

• Smaller batch sizes mean less works-in-progress between processing stages and brings the
company closer to the ideal of continuous flow;

• A larger number of production lines with smaller batch sizes allows for a bigger range of
products to be made concurrently, therefore reducing downtime and disruptions due to
changeovers.

• Smaller production lines have fewer workers and therefore lead to greater accountability
among the workers at each line.

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 Pacemaker

In order to ensure the smooth functioning of continuous flow production in lean

manufacturing, each workstation has to produce its product at the correct rate which is not
too much or too little compared to what downstream workstations require. In order to
achieve this, one workstation is often designated as the “pacemaker”. The pacemaker sets
the pace of production for the whole production line and the production rates at other
workstations are increased or decreased so as to match the rate of the pacemaker. In a
Replenishment Pull system, the pacemaker is usually the final workstation such as final
assembly. In a Sequential Pull system, the pacemaker is often a workstation near the
beginning of the value stream.

 Production Leveling

Production leveling, also called production smoothing, aims to distribute production

volumes and product mix evenly over time so as to minimize peaks and valleys in the
workload. Any changes to volumes should be smoothed so that they occur gradually and
therefore in the most non-disruptive way possible. This will also allow the company to
operate at higher average capacity utilization while also minimizing changeovers. A key
element of production leveling is that the person(s) responsible for placing orders tothe
factory floor should have a system for automatically smoothing out the orders so that any
increases or decreases are gradual and not disruptive. This makes it easier to correctly
allocate the necessary equipment and people. In order to apply this methodology, a
company needs to know its true capacity as well as the rate of production at each
production stage.

 Overall Equipment Effectiveness

Overall Equipment Effectiveness (OEE) is a measure of the overall capacity utilization of

particular pieces of equipment. OEE can be broken down into:

• Availability - how much time the equipment can be potentially operational after
considering downtime; and

• Performance efficiency - the machine’s actual throughput when it is operating compared

to its designed maximum capacity or the maximum it could produce based on continuous
processing.

       

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CONCLUSION
 Lean Manufacturing is

 A collection of philosophies and techniques that reduce waste and add value

 Becoming more accepted and implemented in industry

 Essential for a company to remain competitive in the long term

 In a lean factory, sources of vibration in time are minimized and delay`s in

the system are systematically removed

 Implementing lean manufacturing begins with simplifying the

manufacturing system ,integrating the critical control functions applying

technology and extending the lean methodology to the rest of the company

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RESULTS

Product based cells

Wheels on equipment for flexibility

Storage spaces stocked to max/min

Overall travel was reduced between 1 and 3 miles

Reduced need for forklifts and trucks

Reductions of bulk purchasing

Manufacturing occurs in ship sets

Just-in-time scheduling

100,000 square feet of storage space reduced

Off-site storage no longer needed

Reduced total cost of 30%

Productivity improved by 39%

Defects reduced from 12% to 3%

Production flexibility increased 40-50%

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