Lean Manufacturing

OIM552 LEAN MANUFACTURING

UNIT I INTRODUCTION TO LEAN MANUFACTURING 

Conventional Manufacturing versus Lean Manufacturing –

Principles of Lean Manufacturing – Basic elements of lean
manufacturing – Introduction to LM Tools.

UNIT II CELLULAR MANUFACTURING, JIT, TPM

Cellular Manufacturing – Types of Layout, Principles of

Cell layout, Implementation. JIT – Principles of JIT and
Implementation of Kanban. TPM – Pillars of TPM,
Principles and implementation of TPM.

UNIT III SET UP TIME REDUCTION, TQM, 5S, VSM

Set up time reduction – Definition, philosophies and

reduction approaches. TQM – Principles and
implementation. 5S Principles and implementation - Value
stream mapping - Procedure and principles.

UNIT IV SIX SIGMA

Six Sigma – Definition, statistical considerations,
variability reduction, design of experiments – Six Sigma
implementation

UNIT V CASE STUDIES

Various case studies of implementation of lean

manufacturing at industries.
Difference Between Traditional and Lean Manufacturing

TRADITIONAL MASS PRODUCTION LEAN PRODUCTION

Business Product-out strategy focused on Customer focused strategy focused on

Strategy exploiting economies of scale of stable identifying and exploiting shifting
product designs and non-unique competitive advantage.
technologies

Customer Makes what engineers want in large Makes what customers want with zero
Satisfaction quantities at statistically acceptable defect, when they want it, and only in
quality levels; dispose of unused inventory the quantities they order
at sale prices

Leadership Leadership by executive command Leadership by vision and broad

participation

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

External Based on price Based on long-

Relations term
relationships

Information Information-weak Information-rich

Management management based on abstract management
reports based on visual
control systems
maintained 
by all employees

Cultural Culture of loyalty and Harmonious

obedience, subculture of culture of
alienation and labor strife involvement
based on long-
term
development of
human
resources

Production Large-scale machines, Human-scale

functional layout, minimal skills, machines,
long production runs, massive cell-type layout,
inventories multi-skilling,
one-piece flow,
zero inventories

Operational Dumb tools that assume Smart tools that

capability an extreme division of labor, the assume
following of orders, and no standardized
problem solving work, strength
skills in problem
identification,
hypothesis
generation,
and
experimentation

Maintenance Maintenance by Equipment

maintenance specialists management by
 production,
maintenance
and engineering

Engineering “Isolated genius” model, Team-based

with little input from customers model, with
and little respect for production high input from
realities. customers and
concurrent
development of
product and
production
process design

 
 

More Resources /articles

What is Lean Manufacturing?

Eliminate Waste and Improve Productivity

Lean Manufacturing is a methodology focused on eliminating wasteful practices for better productivity
and efficiency while promoting customer value. Lean enables quicker responses to changing customer
demands, faster production, increased quality at lower costs. Lean provides a way to do more and more
with less and less.

Lean relies on the application of lean tools and principles to the development and manufacture of
physical products. This approach increases access to information, making problems visible, and engaging
employees to help solve these problems—a continuous identification of waste and the execution of
small incremental improvements.

7 Types of Waste

There are seven types of waste that lean processes aim to eliminate. They are defined as:
 7 Types of Waste of Lean

 Transport: Wasted time, resources, and costs with the unnecessary movement of materials,

tools, inventory, equipment, or products.

 Inventory: Wastes from excess products and materials that can’t be processed.

 Motion: Wasted effort due to the movement of people. Decrease walk time between
workstations. 

 Waiting: Wasted time spent waiting for the next process step to occur. Eliminate bottlenecks. 

 Overproduction: Waste from making more products than customers demand. Ensure pull
production. 

 Over Processing: Waste due to more work or higher quality than required. Too many workers
assigned.

 Defect: Waste from products that fail to meet customers’ expectations. Reduce scrap and
rework.

This is an overview of Lean Manufacturing principles and tools, describing how they are applied. It
challenges the relevancy of traditional lean and brings to bear a new era, where digital technology and
analytics complement these practices and unleashes incremental value, speed, and competitive
advantage to manufacturers that embrace Digital Lean.

What Companies Employ Lean Manufacturing?

The majority of manufacturers now embrace lean management. The 2010 Compensation Data
Manufacturing survey results found that “69.7 percent of manufacturing companies utilize Lean
Manufacturing practices”.

Leading large enterprise companies apply lean tools to improve business results to include: Toyota,
Honeywell, GE, Parker Hannifan, Illinois Tool Works, Textron, Intel, John Deere, and Nike. Most recently
GE recently published The Lean Way: Culp Gives An Update On GE’s Lean Transformation. Larry Culp, GE
CEO speaks about lean being their strategy, it’s how they will run their business, and it’s key to growth.

Small and medium-sized companies embrace lean methodologies to increase customer satisfaction and
competitiveness in the global marketplace. Frequently small businesses need an effective production
system that can address low volume and a high mix of products. Lean allows manufacturers to identify
waste, increase flexibility to ensure delivery of the right product at the right cost. Lean provides a
platform for the rapid and sustainable future growth of the business.

History of Lean

History of Lean

The 1800s - Early Versions of Lean

Lean Manufacturing is not a new concept –early versions of the method date back to the 1800’s when
Eli Whitney introduced interchangeable parts to manufacture 10,000 muskets at the low price of $13.40
for the US Army. For the next 100 years, manufacturers focused on individual technologies, moving
production from one discrete process to another. Their challenge was, what happened between
processes. They developed time studies, standardized work, and value stream charting that revealed
value add and non-value-add steps. This was the beginning of the idea of eliminating waste.

The 1930s - The Ford System

In the 1930s the Ford System was introduced. Elements of people, machines, tooling, and products were
arranged in a continuous system to manufacture the Model T automobile more efficiently. However, the
Ford System lacked flexibility and collaboration with front line workers.

The 1950s - The Toyota Production System (TPS)

In the 1950’s Japanese manufacturing leaders launched The Toyota Production System. Using learnings
from Ford – Statistical Quality Control practices and Total Quality Management of Ishikawa, Edwards
Deming, and Joseph Juran, the Toyota Motor Company, Taichi Ohno, and  Shigeo Shingo, began to
incorporate these techniques into an approach called Toyota Production System or Just In Time.  Shingo
addressed set-up and change over time (SMED), reducing setups to minutes allowed small batches in an
almost continuous flow. The Toyota system had three objectives: design out Muri (overburden), design
out Mura (inconsistency), eliminate Muda (waste). In other words, by focusing on process design and
flow, companies can create a system that sustainably creates more value and less waste. Overall
Equipment Effectiveness OEE metric was developed in the 1960s to evaluate the effectiveness of the
manufacturing operation.

1980s Lean Manufacturing in America

The term Lean Manufacturing was introduced to the Western world via the 1990 publication of The
Machine That Changed the World. Since then, lean principles have profoundly influenced manufacturing
concepts throughout the world. Lean has been frequently applied in factories to improve
operations, untangle production lines and supply chains, and fix other manufacturing issues. Lean
manufacturers have now become lean enterprises. Lean Manufacturing stretches out from the factory
premises to all stakeholders. This includes suppliers, customers, and all the influencing parties. Lean
enterprise concepts are focused on all the people in the supply chain to get the best possible value from
the collective effort

Today: Lean Manufacturing in the Digital Age

Today, Lean Manufacturing has gone to the next step. What’s new is the intersection of traditional lean
concepts with digital technology. Using big data, advanced analytics, AI, and the internet of things to
capture real-time data and predictive insights to drive efficiencies as well as revenue growth.
Implementing Digital Lean improves accuracy in decision making, reduces the time and costs in data
collection, interpretation, and action. Increasing the speed of change and process improvement. It
enables new business models to transform manufacturing operations and ignite competitive advantage.

What are the 5 principles of Lean Manufacturing?

The five principles of lean define the recipe for the journey to create an efficient and effective
organization. Lean enables managers to discover inefficiencies, develop better workflows, and create a
continuous improvement culture. By practicing all 5 principles, an organization can drive efficiency while
increasing its profitability.

There are five main principles of Lean Manufacturing as defined by Womack and Jones in their 1990
publication, “The Machine that Changed the World”.These core principles leveraged in lean
implementation are:
 What are the 5 principles of
Lean Manufacturing?

Customer Value

 Identify value as defined by the customer and created by the producer. Determine what the
customer is willing to pay for. Strive to eliminate waste and cost from processes so that the
customer’s optimal price can be achieved — at the highest profit to the company.

Value Stream Mapping

 Document and analyze the steps required to produce a product with the intent of identifying
waste and methods of improvement. Anything that does not add value must be eliminated. 

Create Flow

 Eliminate functional barriers and identify ways to improve lead time. Ensure processes are
smooth from the order through to delivery. Flow is critical to the elimination of waste. Lean
Manufacturing relies on preventing interruptions and enabling an integrated set of steps in
which activities move in a constant stream quickly.

Establish a Pull System

 Start new work only when there is customer demand. Pull relies on flexibility and agility.  Lean
Manufacturing relies on a pull system instead of a push system. With a push system, inventory
needs are determined in advance, and the product is manufactured based on a potentially
inaccurate forecast. This results in swings between too much inventory and not enough and
poor customer service.

Pursue Perfection 
  A continuous work effort to remove waste and improve performance. A work effort that
includes targeting the root causes of issues, eliminating waste across the value stream, and
standardizing the processes that generate success.

What are Lean Manufacturing tools?

Lean tools provide frameworks to solve problems, measure performance, analyze and optimize work
processes while helping to manage people and change. Lean Manufacturing tools are intended to help
drive out waste, simplify everything, create efficient flow, improve quality control, and make the most of
factory resources.

There are over 50 different Lean Manufacturing tools that you can implement within your business. This
article will focus on 20 of them, and describe how they can be applied to your operation.

What are Lean Manufacturing tools?

Lean Manufacturing
Tools Definition and How its Applied

Muda – 7 Wastes of Muda within lean is defined as any activity or process that does not add
Lean value. Gain visibility to and reduce waste: waiting, idle time, excessive
inventory, and product defects.  According to a study by PwC, 80-90% of
tasks in typical business processes are wasteful because they do not add any
 value to the customer.

Total Productive Maintenance – TPM implementation is dependent on

understanding the reasons for productivity loss. This is defined by the 6 Big
Losses:

 Breakdowns of your machines and processes

 Setups: the planned downtime due to changeovers

 Stoppages: short stoppages due to minor issues

 Reduced speed: running at less than the process design speed 

 Defects: the scrap or defective parts as a result of the process

 Setup Scrap: these are the defective parts produced when setting up
6 Big Losses the process

The 5 Whys drive problem solving to the true root cause so that can be fixed.
5 Whys – Root Cause Asking “Why” 5 times in a row will often help us to focus on the leading
Analysis cause.

Poka-Yoke is a method of error proofing. Visual inspection is time-consuming

and often highly ineffective. Implementing Poka-Yoke methods helps to
Poka Yoke automatically detect or prevent the creation of defects within our processes.

Overall Equipment Effectiveness (OEE) is the measure used within TPM. A

composite measure of overall availability, performance, and quality. It
measures productive time. Overall equipment effectiveness can be calculated
by multiplying the following three factors: These three factors are defined as
follows:

 Availability = Runtime Divided by Total Planned Production Time

 Performance = (Ideal Cycle Time Multiplied by Total Count) Divided

By Run Time

 Quality = Good Count Divided by Total Count

OEE Get more information on OEE.

Total Productive Total Productive Maintenance TPM is the process of using machines,
Maintenance TPM equipment, and operator knowledge to improve equipment reliability and
reduce operating costs.  It is a holistic approach to maintenance that builds
on preventative, predictive, and autonomous maintenance. To learn about
 TPM just click this link: Total Productive Maintenance.

Single Minute Exchange of Die or SMED is a tool to reduce the time spent on
changeovers and setups. The goal is to do a changeover of your product in
less than 10 minutes. This allows you to increase equipment utilization and
SMED reduce batch sizes to a minimum for continual flow.

There are seven Quality Tools that have been traditionally applied to help
with problem-solving. These graphic displays ie. Pareto and Scatter Diagrams
Quality Tools enable easy interpretation of data. 

JIT is an on-demand system of production. Produce just what the customer

JIT- Just-in-Time wants, when and where they want it, without delays or waste. Go into
Manufacturing and production after the customer order. This reduces inventory and overhead
Pull Systems costs while enabling build to order and mass customization. 

The ideal process is one in which product moves one at a time from
operation to operation without delay between stations. By implementing
Continuous Flow you will immediately highlight any issues within the process
as well as reduce the need to hold high levels of work in progress stock.
Traditionally plants have areas for machining, welding, painting, etc. Cell
Continuous Flow – manufacturing creates an end-to-end line for production creating a simple
Single Piece Flow pull system.

The average time to complete a product. The Takt Time dictates the rate at
which each process should operate without bottlenecks or overproduction of
Takt Time components and finished goods.

Value Stream Mapping (VSM) is a diagram of a process that is used to analyze

and maximize value and reduce waste. It highlights where action is required
Value Stream within each step and provides a best practice target for the future state value
Mapping stream. 

Bottleneck Analysis identifies the slowest part of the chain to remove the
Bottleneck Analysis bottleneck which results in a faster movement through the entire process.

One of the biggest of the seven wastes is over-production and the resulting
Inventory. Excessive inventory masks many problems and ties up vast
amounts of cash. To achieve continual flow and pull production inventory
Inventory Reduction levels must be reduced.
 Line Balancing is a lean tool that defines the right amount of people to make
the right amount of product within Takt Time. Productivity increases when
time and resources are decreased to make the product driving cost out.
Line Balancing Identify excess capacity and bottlenecks, then reallocate resources.

Kanban communicates the need to replenish or produce a component to

optimize production planning and procurement. Leverage shop floor
communications tools to ensure materials and parts are available to
Kanban production on demand.

Continuous
Improvement, Kaizen is dependent on real-time and historical data analysis for competitive
Kaizen advantage.

PDCA is an improvement cycle based on the scientific method of proposing a

Plan Do Check Act change in a manufacturing process, implementing the change, and measuring
(PDCA) the result in iterative sprints.

Standardized Work documents the current workflow, which defines the

baseline for continuous improvement. It relies on collecting data regarding
the time required to complete each step of the process. Guiding front line
Standardized Work  employees to perform their job in the most effective way consistently. 

Visual Management enables the front line and management to see at a

glance how things work and move in the factory. It ensures clear
Visual Management communication of information and highlights if something abnormal has
– Visual Workplace occurred.