Lean systems

Lean system is an organised system of minimising the wastage without sacrificing productivity within
the manufacturing system. It emphasis on the optimize the work flow through strategic operational
procedures.

There are seven types of waste : (TIMWOOD)

Transportation: Moving products that is required to perform the action .

Inventory: Having excessive inventories , which consumes storage .

Motion: Resource getting wasted for finding/ attaining the work which is more than the time
consumed.

Waiting : The waiting time for the previous process to be completed

Overproduction: Producing more than the actual demand.

Overprocessing: Non value adding activities.

Defects: Reworking due to the defects.

Few Techniques to overcome the waste are

1. Just in time ( Toyota production System ) Pull production : Management strategy that aligns
raw materials orders from suppliers directly with production schedule. It is a management
strategy that minimizes inventory and increases efficiency. Success of JIT is 1. high quality
workmanship 2. No breakdowns in the production 3.Reliable Suppliers.
2. Kanban scheduling system is used to avoid overcapacity work in progress.
3. Advantage: 1. Reduces the inventory cost which enhance the cashflow and reduce the
capital cost . 2. Less spends on raw materials 3.Labour Idle time gets reduced.
Disadvantage :1. Complete dependence on supply chain. 2. Unexpected orders will delay
it .3. it doesn’t fit for all types of business/ firns.

Impacts of JIT in

1. Waste cost: Characteristic is to reduce waste cost in time, inventory and assets.
2. Overhead cost : reduces material handing , quality inspection , facilities.
3. Product Prices: If a product is delivered with high quality in short time then customer will
pay premium amount for it.

Kaizen : Small incremental improvements in all stages for the betterment of the product.

It is core to lean manufacturing & TPS. It was developed to eliminate waste , involvement of
workers , lower defects, boost productivity.

It follows with 3M’s – Muda – waste ; Mura - variation / inconsistency ; Muri: Strain or burden on
people and machines .

It follows PDCA – plan a change , do the change, check the results of the change , Act according to
the change. – Called Deming Cycle .

Asset Specific : All improvement activities related to the equipment/ asset .

Product Specific: All improvement activities related to the particular product with use of all the
resources
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5S: Methodolgy , which is a part of TPM ( total productive maintenance ) & TPS ( Toyota Productive
System.

It explains how a workplace has to organised to be efficient and effective.

The 5 S are:

1. SEIRI- SORT – separating the value adding item & non value adding items.
2. SEITON- SET IN ORDER- Arranging the resources.
3. SEISO- SHINE- Cleanliness
4. SEIKETSU- STANDARIZE – labelling/ This section is about visualization by Information
displays, related SOPs, signs, color coding and other markings
5. SHITSUKE – SUSTAIN- Following it.

TPM:Total Productive Maintenance-Maintenance of Equipment , to avoid the breakdowns and

also safe working Environment .

Maintaining and improving the integrity of production and quality systems.

Eight Pillars:

Pillars About Techniques used

Foundation Orgainisng the workplace to 5S
identify the issues
Autonomus Maintenance Operation of Equipment Cleaning , Lubrication etc.
without breakdown with
active workers monitoring
Focused Improvement Continuous minor Kaizen
improvements
Planned Maintenance Scheduling maintenance Preventive Maintenance
activities when not in use
Early Management Shortening time required for Engineering & Reengineering
product and Equipment Process
development
Quality Maintenance Customer Satisfaction Customer Data Analysis
Education & Training Improves knowledge Training
Office TPM TPM techniques in office Analysing the process in office
administration adminstration
Safety Health Safety Safety awareness measures

measurement of TPM performance is known as Overall Equipment Effectiveness (OEE= Performance

* availability * Quality ; to be greater than 85%). The calculation of measure requires identification
of six big losses

1. Equipment failure / breakdown.

2. Set-up/adjustment.
3. Idle
4. Reduced speed
5. Reduced yield
6. Rework & Quality Defects.

Cellular Manufacturing: Subsection of JIT & Lean System .

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Goals of Cellular Manufacturing: 1. Move as quickly as possible. 2. Similar Products 3. Making little
waste as possible.

In the assembly line multiple cells are used. Each cell comprises of one or more machines which
accomplish a certain task. The product moves from one cell to the next, each station completing part
of the manufacturing process

U-shaped design is given to these cells because this allows for the supervisor to move less and have
the ability to more readily watch over the entire process.

Six Sigma:(Motorola) – Quality improvement technique according to the customer needs.

Sigma – Higher the sigma value nearer to the perfection.

Purpose of Six Sigma

To reduce variation: ensure consistency in performance so that the users and the customers can
develop confidence in the quality and reliability

To reduce defects/rework: eliminate or reduce the defects and rejections to practically zero

To Improve Yield/ Productivity:: Any time saved in reworking is time utilized for effective production
of the products and services

enhance customer satisfaction

To improve the bottom Line & Top line.

Implementation of six sigma :2 Methodologies : DMAIC- To improve the existing business &
DMADV- High quality products keeping in mind the customer satisfaction at every stage.

DMAIC : Define, Measure, Analyse, Improve, Control.

DMADV: Define, Measure, Analyse, Design ,Verify.

Both of these six sigma methodologies are based on defects per million opportunities

Differenc between DMAIC & DMADV

Dmaic dmadv
Existing problem correction Emphasis on the design of the product
Reactive Proactive
Increase the capability Increase the capacity

Process innovation: Will implement new process into organisation

Business process re-engineering: fundamentally rethink how they do their work in order to
dramatically improve customer service, cut operational costs, and become world-class competitors.

4 KEY BPR: 1. Fundamental Rethink

2. Radical Design

3.Dramatic Improvements
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4. End to End business process.