Lean Manufacturing

Dr. Nirav B. Halvadia

Associate Professor
GUNI-VMPIM
Value chain
 Meaning of word “lean”
• Lean/adjective EFFICIENT
• Example: A lean company or organization uses
only a small number of people and a small
amount of money etc. so that there is no
waste.
 What is Lean Production?
• Lean production is an integrated set of activities
design to achieve high volume production using
minimal inventories of raw materials ,work-in-
process, and finished goods.
• Parts arrive at the next work station “Just in
Time” and are completed and move through the
process quickly.
• Lean is also based on the logic that nothing will
be produced until it is needed.
 Push System
• Every worker maximizes own output, making as many
products as possible
• Pros and cons:
– Focuses on keeping individual operators and
workstations busy rather than efficient use of materials
– Volumes of defective work may be produced
– Throughput time will increase as work-in-process
increases (Little’s Law)
– Line bottlenecks and inventories of unfinished products
will occur
– Hard to respond to special orders and order changes due
to long throughput time
Reducing Waste: Push versus Pull System

Raw Final
Material Customer
Assembly
Supplier
FGI
PUSH

Raw Final
Material Customer
Assembly
Supplier
FGI

PULL
Information Flow
Material Flow
 Toyota Production System
• Two engineers, Taichi Ohno and Shigeo Shingo
devised the basis of what we call Lean
Manufacturing philosophy.
• They called it Toyota Production System (TPS).
• TPS uses waste elimination to increase
profitability, quality and productivity.
• Waste is considered to be any part of the
process that takes time and resources but
adds little or no value to the product.
• Ohno identified 7 types of waste:
-Transportation waste
-Processing waste
-Inventory waste
-Waste of motion
-Waste from product defect
-Waste of overproduction
-Waste of waiting time
Waste in Operations
Waste in Operations
Waste in Operations
 Reducing waste: Increase Problem Visibility
Lower the Water to Expose the Rocks

Too Much
Missed Due Dates Space

Late
Deliveries
Inventory

Too much paperwork

Scrap & Engineering
Rework Change Orders

Poor 100% inspection Long queues

Machine
Quality Downtime
 Low inventory of JIT helps to identify quality
problems

High inventory levels

hide quality problems Remove high inventory
levels and quality Reduce inventory even
problems are exposed further to identify next
set of quality problems
 Tools of lean manufacturing
• Set up time reduction
• Pull system
• One-piece flow
• Cellular layout
• Lead-time reduction
• Total productive maintenance
• Total quality maintenance
• Kaizen
• Production Smoothing
 Tools of lean manufacturing
• Focused factories
• Alliance and partnerships
• Just in Time
 Set up Time Reduction
• Set up time reduction
-In order to reduce setup time we have to examine
if we can simplify the process from the point of
view of setting up and changing over.
-The internal set up time is the time tied to setting
up the process or machine when it is not running
or in production.
-The external set up time is that takes place when a
process or machine is running.
 Reducing Setup Time
• When setup reduction is implemented,
manufacturer see many benefits:
-less material waste
-fewer defects
-less inventory
-smaller space requirement
-higher productivity-greater flexibility
-increased capacity
 Common Techniques for Reducing Setup
Time
• Preset Buttons/settings
• Quick fasteners
• Reduce tool requirements
• Locator pins
• Guides to prevent misalignment
• Easier movement
 One-piece flow/cellular layout
• Cellular manufacturing is a type of layout where
machines are grouped according to the process
requirements for a set of similar items (part families)
that require similar processing. These groups are called
cells. Therefore, a cellular layout is an equipment
layout configured to support cellular-manufacturing.
• The basic theory underlying one-piece flow is that
there is no need to build inventory between processes.
A bottleneck operation should always have more than
one unit in front of it to ensure that it never stops due
to lack of material to process.
 One-piece flow/cellular layout
- With cellular manufacturing, you can make one product at
a time immediately.
- Here, errors are reduced simply due to the reduced amount
of WIP material in the area.
- In order to reduce distance between stations the concept
of cellular layout is applied.
- Poka-Yoke Device: is any mechanism that either prevents a
mistake from being made or makes the mistake obvious at
a glance.
- Autonomation(Jidoka): is a lean tool that refers to semi-
automatic processes where the operator and machine work
together to respond to every abnormality in the process.
Jidoka is an also authority to stop production.
 Visual Control

In use at Harley-Davidson
and at Opal Plant - Russelsheim
 Lead time reduction
Activity Total %
days
Processing 3 7.5
In-transit 0.5 1.3
Set-up 0.5 1.3
In queue 30 75
On hold- 4 10
waiting for
material
On hold- 2 5
quality
Total 40 100.1

Customer lead time refers to the time span between customer and
customer receipt.
Manufacturing lead time refers to the time span from material
availability at the first processing operation to completion at the last
operation.
 Total productive maintenance
• Preemptive maintenance schedules must be
developed and adhered to.
• Extensive maintenance history exists in a
database and equipment failures may be
predicted within reasonable timeframe.
• Simpler maintanace tasks may be delegated to
those who know the equipment the best.
 Total quality management
• Corrective action system
• Root cause analysis
• Stop-the-line authority
Kaizen or continuous improvement
• Kaizen is a management philosophy of
continuous improvement, translated from
japanese “Kai” meaning continuous and “zen”
meaning improvement.
 Focused factory
• Focused factory are work groups that contain
all personnel such as manufacturing
engineering, quality engineering, and
manufacturing operations required to
manufacture a product.
 Just in Time
• Just in time is a management philosophy that
strives to eliminate waste by producing the
right part in the right place at the right time.
Main Three Elements of JIT

© Wiley 2010
 Elements of JIT Manufacturing
• JIT Manufacturing is a philosophy of value-added
manufacturing
• Achieved by
– Inventory reduction - exposes problems
– Kanbans & pull production systems
– Small lots & quick setups
– Flexible resources
– Efficient facility layouts
 Kanban
• Kanban is a japanise word meaning flag or
signal and is a visual ad to convey the message
that action is required.
 Kanban
• Conveyance Kanban: signals the need to deliver more
parts to the next work centre. it specifies the kind
and quantity of product which a manufacturing
process should withdraw from a preceding process.
• Production Kanban:signals the need to produce more
parts.It specifies the kind and quantity of product
which the preceding process must produce.

© Wiley 2007
Kanban Cards

33
 Kanban System Rules
• Each container of parts must have a kanban card.

• The parts are always pulled. The using department must come to the
providing department and not vice versa.

• No parts may be obtained without a conveyance kanban card.

• All containers contain their standard quantities and only the standard
container for the part can be used.

• No extra production is permitted. Production can only be started on

receipt of a production kanban card.

• Container sizes are kept small and standard, e.g., no container should have
more than 10% of a day’s requirements.

34
The Pull System

© Wiley 2010
 Steps of Kanban Production
1) Worker at B receives empty container tagged
with production kanban from “customer” ->
worker B must fill container
2) Worker at B withdraws required full container of
material from B input area and uses it to produce
enough to fill empty container in step (1)
3) To replenish the empty container in input area,
worker at B sends withdrawal kanban to output
area of A
 Steps of Kanban Production

4) Worker at A attaches withdrawal kanban to a full

container in output (A) and sends to B
5) Worker at B takes production kanban from full
container and places it on an empty container ->
worker A must fill container
6) Worker at A removes container of materials from
its input area, and then uses a withdrawal kanban
to generate a request for more material from
upstream station
 Types of Kanban

• Production kanban • Signal kanban

– a triangular kanban used
– authorizes production of to signal production at the
goods previous workstation
• Withdrawal kanban • Material kanban
– authorizes movement of – used to order material in
goods advance of a process
• Kanban square • Supplier kanban
– a marked area designated to – rotates between the
hold items factory and suppliers
 Determining Number of
Kanbans
average demand during lead time + safety stock
No. of Kanbans =
container size

dL + S
N =
C
where

N = number of kanbans or containers

d = average demand over some time period
L = lead time to replenish an order
S = safety stock
C = container size
 Small Lot Sizes & Quick Setups
• Small lots mean less average inventory and shorten
manufacturing lead time
• Small lots with shorter setup times increase flexibility to
respond to demand changes
• Strive for single digit setups- < 10 minutes
• Setup reduction process is well-documented
– External tasks- do as much preparation while present job is still
running
– Internal tasks- simplify, eliminate, shorten steps involved with
location, clamping, & adjustments
 Flexible Resources
• Moveable, general purpose equipment:
– Portable equipment with plug in power/air
– E.g.: drills, lathes, printer-fax-copiers, etc.
– Capable of being setup to do many different things with
minimal setup time
• Multifunctional workers:
– Workers assume considerable responsibility
– Cross-trained to perform several different duties
– Trained to also be problem solvers
 Effective Facility Layouts
• Workstations in close physical proximity to reduce
transport & movement
• Streamlined flow of material
• Often use:
– Cellular Manufacturing (instead of process focus)
– U-shaped lines: (allows material handler to quickly drop
off materials & pick up finished work)
 Traditional Process Focused Layout

• Jumbled flows, long cycles, difficult to schedule

 JIT Cellular Manufacturing

• Product focused cells, flexible equipment, high

visibility, easy to schedule, short cycles
Respect for People: The Role of Employees

• Genuine and meaningful respect for associates

• Willingness to develop cross-functional skills
• JIT uses bottom-round management – consensus
management by committees or teams
• Actively engage in problem-solving (quality circles)
• Everyone is empowered
• Everyone is responsible for quality: understand both
internal and external customer needs
Respect for People: The Role of Employees

• Associates gather performance data

• Team approaches used for problem-solving
• Decisions made from bottom-up
• Everyone is responsible for preventive
maintenance
 The Role of Management

• Responsible for culture of mutual trust

• Serve as coaches & facilitators
• Support culture with appropriate incentive
system including non-monetary
• Responsible for developing workers
• Provide multi-functional training
• Facilitate teamwork
 Supplier Relationships and JIT
• Use single-source suppliers when possible
• Build long-term relationships
• Work together to certify processes
• Co-locate facilities to reduce transport if possible
• Stabilize delivery schedules
• Share cost & other information
• Early involvement during new product designs
 Benefits of JIT
• Reduction in inventories
• Improved quality
• Shorter lead times
• Lower production costs
• Increased productivity
• Increased machine utilization
• Greater flexibility
 JIT and TQM- Partners
• Build quality into all processes
• Focus on continuous improvement - Kaizen
• Quality at the source- sequential inspection
• Jidoka (authority to stop line)
• Poka-yoke (fail-safe all processes)
• Preventive maintenance- scheduled
• Work environment- everything in its place, a place
for everything
 Impact of JIT on Manufacturing
Planning and Control
-Resource planning
-Sales and operation planning
-Demand management
-Detailed material planning
-Material and capacity plan
-Vendor system
 Impact of JIT on Manufacturing
Planning and Control
Product Structure before Simplification Complete Product
Structure before
1 liter Saucepan Simplification

Handle
Pan
Assembly

Plastic handle
Handle base Ring Rivets Sheet metal
set

Plastic beads Sheet metal

 Impact of JIT on Manufacturing
Planning and Control
Simplified Product Structure
Complete Simplified
Product
1 liter Saucepan Structure

Plastic handle
Sheet metal Rivets Pan
set

Plastic beads Sheet metal

 Impact of JIT on Manufacturing
Planning and Control
MRP record for basic handle Assembly

Week Week Week Week Week Week Week Week Week Week
1 2 3 4 5 6 7 8 9 10

Gross Requirements 8 8 3 8 8 8
Scheduled Receipts
Project 10 10 16 16 8 19 11 11 17 17 9
Available
Balance
Planned order 14 14 14
releases
Thank You