LEAN

MANUFACTURING
By-Y.G.Chaugule
This Lean Manufacturing course offers an overview of lean
manufacturing techniques and initial advice on how to
implement them. It elaborates various TQM Tools and
Techniques.
It also provides an understanding of concepts related to
Total Productive Maintenance, Design of Experiments,
Designing for Quality, Six Sigma and Quality Circle.
 Discuss the concept of
Understand Primary tools
Total Productive
of lean manufacturing.
Maintenance.
Understand Secondary Implement the
tools of lean Taguchi Approach.
manufacturing.
Implement the Six Sigma
Describe TQM tools and and Quality Circle
Techniques concept.
OUTLINE OF Introduction Lean Manufacturing Introduction, Definitions of

PRESENTATION Lean manufacturing, basic concepts. Overview of Historical

development. Management theory. Primary Tools of Lean
manufacturing 5-S, Workplace Organization, Total Productive
Maintenance (TPM), Process Mapping / Value Stream
Mapping, Work cell.
INTRODUCTION TO

LEAN
MANUFACTURING
 DEFINATION

Lean manufacturing is a methodology that focuses on minimizing waste

within manufacturing systems while simultaneously maximizing productivity.
Waste is seen as anything that customers do not believe adds value and are not
willing to pay for. Some of the benefits of lean manufacturing can include
• reduced lead times,
• reduced operating costs
• and improved product quality.

Lean manufacturing, also known as lean

production, or lean, is a practice that
organizations from numerous fields can enable.
Some well-known companies that use lean include
Toyota, Intel, John Deere and Nike.
 Advantages of Lean Manufacturing
Waste Minimization
Lean manufacturing
minimize waste withincan a efficiently
production
facility. Thisbenefit
significant is arguably
of leanthe most
manufacturing.
any activity that Waste
does is defined
not add by
value
to the process.
include: motion, Common
inventory, waste areas
waiting,
overproduction,
transportation, defects,
and over-processing.
As
of companies
inventory sit
and on large
waste, amounts
this process
eliminates
inventory. outdated
In costs
addition, or aged
this process
reduces
operation. the within the

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 2. Enhanced Customer
Relationships
Lean focuses on loyal customers' concerns and
suggestions to cut some wasteful processes. Rather
than focusing on the needs of all customers,
companies are able to focus on their loyal customers
to build strong and reliable relationship. This way, your
customer interactions will improve and the
relationships with your trusted customers will offer a
steady flow of revenue coming in.

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. Lean Infrastructure
A lean infrastructure means that you are only
dealing with a few components: building, tools,
supplies, equipment, and labor to fulfill near-term
inventory demand. The facility does not waste space
within the operation and enables the facility to come
as close as it can to production efficiency.

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 Disadvantages of Lean Manufacturing
1. Equipment Failure

Lean has very little room for error. Equipment or labor failure can
lead to major inconsistencies and can make the entire operation
fall behind. In other mass production facilities, employees could
move from one machine to another in the event of a breakdown.
In lean, there are not many other places for employees to move
to because everything within the operation is being utilized. In
addition, the breakdown of a machine must be fixed immediately
as there are usually no alternative resources that can do the
work. This is why it is important to stay on top of all machine
maintenance and inspections.

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2. Delivery Inconsistencies

In correlation with equipment failure, lean manufacturing

can lead to delivery inconsistencies. Using lean techniques
means that you have a smaller error margin. If your supply
deliveries are late, you may not have enough raw materials
to meet your customer demands, leading to late deliveries.

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3. Employee Dissatisfaction

Adopting lean manufacturing processes requires change

among employees to more efficient production processes
to ensure that quality products are being made. This can
be risky if employees reject the new methods. Having
good managers that can help support and persuade the
change from one technique to another can be helpful.

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 Increased product quality: Improved efficiency frees
up employees and resources for innovation and quality
control that would have previously been wasted.
Improved lead times: As manufacturing processes are
streamlined, businesses can better respond to
fluctuations in demand and other market variables,
resulting in fewer delays and better lead times.
Sustainability: Less waste and better adaptability
makes for a business that’s better equipped to thrive
well into the future.
Employee satisfaction: Workers know when their daily
routine is bloated or packed with unnecessary work, and
it negatively affects morale. Lean manufacturing boosts
not only productivity, but employee satisfaction.
BENEFITS Increased profits: And, of course, more productivity
with less waste and better quality ultimately makes for
SEVEN
MANUFACTURING
WASTE
INTRODUCTION TO LEAN MANUFACTURING

Overproduction against
plan
Waiting time of operators and
machines
Unnecessary transportation
LEAN Waste in the process itself
MANUFACTURING
Excess stock of
material and components
Non-value-adding motion

Defects in quality
 TRANSPORTATION
Waste in transportation includes movement of people, tools, inventory, equipment, or products further than
necessary. Excessive movement of materials can lead to product damage and defects. Additionally, excessive
movement of people and equipment can lead to unnecessary work, greater wear and tear, and exhaustion.

In the office, workers who collaborate with each other often should be close together. In the factory, materials
necessary for production should be easily accessible at the production location and double or triple handling of
materials should be avoided.

Some of the counter measures to transportation waste includes developing a U-shape production line, creating
flow between processes, and not over-producing work in process (WIP) items.
 INVENTORY
Often times it is difficult to think about excess inventory as waste. In accounting, inventory is seen as an asset
and oftentimes suppliers give discount for bulk purchases. But having more inventory than necessary to sustain
a steady flow of work can lead to problems including: product defects or damage materials, greater lead time in
the production process, an inefficient allocation of capital, and problems being hidden away in the inventory.
Excess inventory can be caused by over-purchasing, overproducing work in process (WIP), or producing more
products than the customer needs

In-office inventory waste could be files waiting to be worked on, customers waiting for service, unused records in
a database, or obsolete files. Manufacturing inventory waste could include broken machines sitting around, more
finished products than demanded, extra materials taking up work space, and finished products that cannot be
sold.
 MOTION
The waste in motion includes any unnecessary movement of people, equipment, or machinery.
This includes walking, lifting, reaching, bending, stretching, and moving. Tasks that require
excessive motion should be redesigned to enhance the work of personnel and increase the
health and safety levels.

In the office, wasted motion can include walking, reaching to get materials, searching for files,
sifting through inventory to find what is needed, excess mouse clicks, and double entry of
data. Manufacturing motion waste can include repetitive movements that do not add value to
the customer, reaching for materials, walking to get a tool or materials, and readjusting a
component after it has been installed.

Some countermeasures for motion include making sure the workspace is well organized,
placing equipment near the production location, and putting materials at an ergonomic
position to reduce stretching and straining.
 WAITING
The waste of waiting includes: 1) people waiting on material or equipment and 2) idle
equipment. Waiting time is often caused by unevenness in the production stations and can
result in excess inventory and overproduction.

In the office, waiting waste can include waiting for others to respond to an email, having
files waiting for review, ineffective meetings, and waiting for the computer to load a
program. In the manufacturing facility, waiting waste can include waiting for materials to
arrive, waiting for the proper instructions to start manufacturing, and having equipment
with insufficient capacity.

Some countermeasures for waiting include: designing processes to ensure continuous flow
or single piece flow, leveling out the workload by using standardized work instructions, and
developing flexible multi-skilled workers who can quickly adjust in the work demands.
 OVERPRODUCTION
Overproduction occurs when manufacturing a product or an element of the product before it is
being asked for or required. It may be tempting to produce as many products as possible when
there is idle worker or equipment time.

In an office environment, overproduction could include making extra copies, creating reports no
one reads, providing more information than needed, and providing a service before the
customer is ready.

Manufacturing overproduction involves producing more products than demanded through a

‘push production system’ or producing products in higher batch sizes than needed.
 OVERPROCESSING
Over-processing refers to doing more work, adding more components, or having more steps in a product or
service than what is required by the customer. In manufacturing this could include using a higher precision
equipment than necessary, using components with capacities beyond what is required, running more
analysis than needed, over-engineering a solution, adjusting a component after it has already been
installed, and having more functionalities in a product than needed. In the office, over-processing can
include generating more detailed reports than needed, having unnecessary steps in the purchasing
process, requiring unnecessary signatures on a document, double entry of data, requiring more forms than
needed, and having an extra step in a workflow.

One simple way to counter over-processing is to understand the work requirements from the standpoint of
the customer. Always have a customer in mind before starting work, produce to the level of quality and
expectation that the customer desires, and make only the quantities needed.
 DEFECTS
Defects occurs when the product is not fit for use. This typically results in
either reworking or scrapping the product. Both results are wasteful as they
add additional costs to the operations without delivering any value to the
customer.

Here are four countermeasures for defects. Firstly, look for the most
frequent defect and focus on it. Secondly, design a process to detect
abnormalities and do not pass any defective items along the production
process. Thirdly, redesign the process so that does not lead to defects.
Lastly, use standardize work to ensure a consistent manufacturing process
that is defect free.
 SKILLS
Even though it was not part of the Toyota Production System (TPS), many people are well aware
of the 8th waste - the waste of human potential. The 8th waste is also described as the waste of
unused human talent and ingenuity. This waste occurs when organizations separate the role of
management from employees. In some organizations, management’s responsibility is planning,
organizing, controlling, and innovating the production process. The employee’s role is to simply
follow orders and execute the work as planned. By not engaging the frontline worker’s
knowledge and expertise, it is difficult to improve processes. This is due to the fact that the
people doing the work are the ones who are most capable of identifying problems and
developing solutions for them.

In the office, non-utilized talent could include insufficient training, poor incentives, not asking
for employee feedback, and placing employees in positions below their skills and qualifications.
In manufacturing, this waste can be seen when employees are poorly trained, employees not
knowing how to effectively operate equipment, when employees are given the wrong tool for
the job, and when employees are not challenged to come up with ideas to improve the work.
1. Origins in Toyota Production System (TPS): - Lean manufacturing traces its roots back to the Toyota
Production System (TPS), developed by Toyota Motor Corporation in Japan after World war II
2. Post-War Economic Conditions: - Following World War II, Japan faced severe resource constraints. This
necessitated innovative methods to maximize productivity with limited resources, leading to the
development of TPS.
3. Key Contributors: Taiichi Ohno: Often referred to as the father of the Toyota Production System, Ohno
emphasized the elimination of waste (Muda) and the importance of continuous improvement. - Shigeo
Shingo: Known for his work on improving manufacturing processes, Shingo introduced concepts such as
Poka-Yoke (mistake-proofing) and Single-Minute Exchange of Die (SMED).
4. Introduction to the West: - In the 1980s and 1990s, Western companies, particularly in the automotive
sector, began to recognize the superior performance of Japanese manufacturers. They started adopting
Lean principles and practices, leading to the popularization of Lean outside Japan.
5. Evolution and Spread: - As Lean gained traction, its principles began to be applied beyond
manufacturing, including sectors like healthcare, services, and software development, leading to concepts
like Lean Healthcare, Lean Services, and Lean Startup.
6. Key Milestones: - 1980s: The term "Lean" was coined by researchers studying the similarities between
TPS and Western manufacturing practices. - 1990s: Books like "The Machine That Changed the World" by
Womack, Jones, and Roos introduced Lean concepts to a broader audience, emphasizing the elimination of
waste and the pursuit of value.
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7. Contemporary Lean: - Today, Lean continues to evolve, integrating with modern technologies like
Industry 4.0, emphasizing sustainability, and addressing new challenges such as global supply chain
complexities
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 DEFINE
To better understand the first principle of defining customer value, it is
important to understand what value is. Value is what the customer is
willing to pay for. It is paramount to discover the actual or latent needs of
the customer. Sometimes customers may not know what they want or are
unable to articulate it. This is especially common when it comes to novel
products or technologies. There are many techniques such as interviews,
surveys, demographic information, and web analytics that can help you
decipher and discover what customers find valuable. By using these
qualitative and quantitative techniques you can uncover what customers
want, how they want the product or service to be delivered, and the price
that they afford.
 MAP THE VALUE
REAM
The second Lean principle is identifying and mapping the value stream.
In this step, the goal is to use the customer’s value as a reference point
and identify all the activities that contribute to these values. Activities
that do not add value to the end customer are considered waste.
The waste can be broken into two categories: non-valued added but
necessary and non-value & unnecessary. The later is pure waste and
should be eliminated while the former should be reduced as much as
possible.
By reducing and eliminating unnecessary processes or steps, you can
ensure that customers are getting exactly what they want while at the
same time reducing the cost of producing that product or service.
 CREATE FLOW
After removing the wastes from the value stream, the following action is
to ensure that the flow of the remaining steps run smoothly without
interruptions or delays. Some strategies for ensuring that value-adding
activities flow smoothly include: breaking down steps, reconfiguring the
production steps, leveling out the workload, creating cross-functional
departments, and training employees to be multi-skilled and adaptive.
 ESTABLISH PULL

Inventory is considered one of the biggest wastes in any production

system. The goal of a pull-based system is to limit inventory and work in
process (WIP) items while ensuring that the requisite materials and
information are available for a smooth flow of work. In other words, a
pull-based system allows for Just-in-time delivery and manufacturing
where products are created at the time that they are needed and in just
the quantities needed.
 PURSUE PERFECTION

Wastes are prevented through the achievement of the first four steps:
1) identifying value, 2) mapping value stream, 3) creating flow, and 4)
adopting a pull system. However, the fifth step of pursuing perfection
is the most important among them all. It makes Lean thinking and
continuous process improvement a part of the organizational culture.
Every employee should strive towards perfection while delivering
products based on the customer needs. The company should be a
learning organization and always find ways to get a little better each
and every day.
3 TYPES OF DEVIATION IN
WASTEMuda ( 無駄 )
Muda means wastefulness, uselessness and futility, which is contradicting value-addition. Value-added
work is a process that adds value to the product or service that the customer is willing to pay for.
There are two types of Muda, Type 1 and Type 2. Muda Type 1 includes non-value-added activities in
the processes that are necessary for the end customer. For example, inspection and safety testing
does not directly add value to the final product; however, they are necessary activities to ensure a safe
product for customers. Muda Type 2 includes non-value added activities in the processes, but these
activities are unnecessary for the customer. As a result, Muda Type 2 should be eliminated.

Mura ( 斑 )
Mura means unevenness, non-uniformity, and irregularity. Mura is the reason for the existence of
any of the seven wastes. In other words, Mura drives and leads to Muda. For example, in a
manufacturing line, products need to pass through several workstations during the assembly
process. When the capacity of one station is greater than the other stations, you will see an
accumulation of waste in the form of overproduction, waiting, etc. The goal of a Lean production
system is to level out the workload so that there is no unevenness or waste accumulation.

Muri ( 無理 )
Muri means overburden, beyond one’s power, excessiveness, impossible or unreasonableness.
Muri can result from Mura and in some cases be caused by excessive removal of Muda (waste)
from the process. Muri also exists when machines or operators are utilized for more than 100%
capability to complete a task or in an unsustainable way. Muri over a period of time can result in
employee absenteeism, illness, and breakdowns of machines. Standardize work can help avoid
Muri by designing the work processes to evenly distribute the workload and not overburden any
particular employee or equipment.
Muda, Mura, and Muri are
interrelated. Eliminating one of
them will affect the other two.
For example, a firm that needs to
transport 6 tons of materials to a
customer has several options
5 TOOLS OF LEAN MFG.

seiri (sort)

seiton (set in order)

5 TOOLS OF LM seisō (shine)

seiketsu
(standardize)

shitsuke (sustain)
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WHAT ARE THE FIVE S'S (5S) OF LEAN
5S is defined as a methodology that results in a workplace that is clean,
uncluttered, safe, and well organized to help reduce waste and optimize
productivity. It's designed to help build a quality work environment, both physically
and mentally. The 5S philosophy applies in any work area suited for visual control
and lean production.

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LEAN 5S PROGRAM BENEFITS
• Improved safety
• Higher equipment availability
• Lower defect rates
• Reduced costs
• Increased production agility and flexibility
• Improved employee morale
• Better asset utilization
• Enhanced enterprise image to customers, suppliers, employees, and
management
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Sort
The first step of 5S, Sort, involves going through all the tools, furniture, materials, equipment, etc. in a work area to determine what needs
to be present and what can be removed. Some questions to ask during this phase include:
What is the purpose of this item?
When was this item last used?
How frequently is it used?
Who uses it?
Does it need to be here?
These questions help determine the value of each item. A workspace might be better off without unnecessary items or items used
infrequently. These things can get in the way or take up space.
Keep in mind the best people to assess the items in space are the people who work in that space. They are the ones who can answer the
above questions.
When a group has determined that some items aren't necessary, consider the following options:
Give the items to a different department
Recycle/throw away/sell the items
Put items into storage

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 Set in Order

Once the extra clutter is gone, it's easier to see what's what. Now work groups can come up with their strategies for
sorting through the remaining items. Things to consider:
Which people (or workstations) use which items?
When are items used?
Which items are used most frequently?
Should items be grouped by type?
Where would it be most logical to place items?
Would some placements be more ergonomic for workers than others?
Would some placements cut down on unnecessary motion?
Are more storage containers necessary to keep things organized?
During this phase, everyone should determine what arrangements are most logical. That will require thinking
through tasks, the frequency of those tasks, the paths people take through the space, etc.

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 Shine
• Everyone thinks they know what housekeeping is, but it's one of
the easiest things to overlook, especially when work gets busy. The
Shine stage of 5S focuses on cleaning up the work area, which
means sweeping, mopping, dusting, wiping down surfaces, putting
tools and materials away, etc.
• In addition to basic cleaning, Shine also involves performing regular
maintenance on equipment and machinery.

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Standardize

Once the first three steps of 5S are completed, things should

look pretty good. All the extra stuff is gone, everything is
organized, spaces are cleaned, and equipment is in good
working order.

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 Sustain

Sustain refers to the process of keeping 5S running smoothly, but also

of keeping everyone in the organization involved. Managers need to
participate, as do employees out on the manufacturing floor, in the
warehouse, or in the office. Sustain is about making 5S a long-term
program, not just an event or short-term project. Ideally, 5S becomes a
part of an organization's culture. And when 5S is sustained over time,
that's when businesses will start to notice continuous positive results.

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 Look at the example below to see 5S in action. Before 5S, spaces are cluttered
and confusing. After 5S, everything has an assigned place, which is often marked
with floor marking tape, labels, and other visual cues.

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44
45
 What Is Total Productive Maintenance
(TPM)
Total productive maintenance is a maintenance management philosophy
that strives for total perfection—no breakdowns, no defects, no accidents—
by positioning maintenance as a core, value-added function rather than a
cost center.
More importantly, TPM requires machine operators to get involved in
maintaining their own equipment—cleaning, regular lubrication, and basic
inspection—thereby turning maintenance management into a shared
responsibility throughout the entire facility.

46
Benefits of Total Productive Maintenance
Less unplanned maintenance – Unanticipated breakdowns are
avoided by keeping machinery in good working condition through
periodic inspections and maintenance.
Reduced equipment downtime – By preemptively inspecting and
maintaining equipment before and/or after use, repairs or
replacements are likely to be less invasive and take less time.
Minimized delays, breakdowns and production stops – Clean, well-
lubricated equipment is less likely to break down unexpectedly.
Secondly, making basic maintenance tasks and inspections the
responsibility of the entire facility rather than just the maintenance
team increases the likelihood that defects will be detected in
advance.
Lower maintenance costs – In the long run, reducing unplanned
downtime with TPM can save organizations hundreds of thousands of
rupees each year.retention and engagement – A clean, hazard-free 47
Better employee
workspace where technicians have access to tools that are in good
working condition is key to recruitment and retention in
TOTAL
PRODUCTIVE
MAINTANANCE

1. Autonomous maintenance. Operators are

charged with monitoring the condition of their
own equipment and work areas and upholding
a “baseline” standard. This means fully
training plant personnel on routine
maintenance such as cleaning, lubricating,
and inspecting. Standardization ensures
everyone follows the same processes and
procedures.
TOTAL
PRODUCTIVE 2.Focused improvement (kaizen).
Continual process improvement lies at the
MAINTANANCE heart of total productive maintenance.
Sometimes, this involves getting small teams
together to brainstorm ways to improve
maintenance and production processes. Team
leaders may also collect information from
operators to prioritize
preventive maintenance and other process
improvements. The end goal is to combine
input from across the company.
TOTAL
PRODUCTIVE 3. Planned maintenance.
MAINTANANCE Planned maintenance is the process of
scheduling preventive maintenance in response
to observed machine behaviors, such as failure
rates and breakdowns. These PM tasks and
schedules are shared by operators and
maintenance personnel. The point of planned
maintenance is to minimize service
interruptions by scheduling maintenance when
machines are idle or producing very little.
TOTAL
PRODUCTIVE
MAINTANANCE
4. Quality management.
Quality management involves proactively
detecting the source of errors or defects to
prevent them from moving down the value
chain. This approach requires root cause
analysis to determine cause and effect rather
than using temporary Band-Aid solutions.
Preventing defective products from moving
down the line eliminates the need for time-
consuming rework.
TOTAL 5. Early equipment management.
PRODUCTIVE Data gathered from previous maintenance
activities can be used to ensure new equipment
MAINTANANCE reaches optimal performance as quickly as
possible (equipment is especially prone to
failure at the beginning and end of its life
cycle). Designing equipment with the input of
the people who use it most allows suppliers to
improve maintainability. Factors that equipment
manufacturers should consider include:

Ease of cleaning and inspection

Accessibility of replacement parts
Increased safety features
Improving machine operability by ensuring they
are comfortable to use
TOTAL
PRODUCTIVE
MAINTANANCE

6. Training and education.

Total productive maintenance can’t be
executed effectively without training
operators on basic equipment maintenance
and operation.
TOTAL
PRODUCTIVE
MAINTANANCE

7. Safety, health and environment.

Implementing facility-wide safety standards
is the linchpin of total productive
maintenance. Any new initiatives introduced
as part of TPM should consider employee
health and safety.
TOTAL
PRODUCTIVE
MAINTANANCE

8. TPM in administration.
Supporting production by improving
administrative activities like order
processing, procurement, and scheduling to
ensure they are streamlined and waste-free.
What is

Value-
Stream
Mapping?
Value
Stream Value-stream mapping (VSM) is a fundamental
mapping lean practice that involves diagraming a value
stream, which includes all the actions (value-
creating and nonvalue-creating) needed to
move a product or service from raw material
to the arms of the customer, including the
material and information flow. Lean
practitioners use the process and the resulting
map to identify and eliminate waste.
 •helps you visualize more than just the single-process
Why Value-Stream level, enabling you to see the flow of work across all
Mapping is an the processes.
Essential Lean
Practice •helps you see more than waste in your value
stream, including the sources of waste.

•makes the decisions about flow apparent so that you

can discuss them. Otherwise, many decisions happen
just by default.

•forms the basis of an implementation plan, a

blueprint for improvement, helping you design how
the whole “door-to-door” flow should operate.

•shows the linkage between material flow and

information flow. No other tool does this.
Symbols
Used in
VSM
 Value Stream mapping
Information flow tells each process what to make or do
next and when to do it.
Process boxes depict the steps of product or service
delivery in a value stream. Because drawing a box for every
process step would make the map unwieldy, use the
process box
Process datato boxes
indicatedetail
one area of material
essential flow. and
information
metrics about each step, including:
•Cycle Time (C/T) or Processing Time (P/T) – the time an
operator requires to complete all the work elements before
repeating them.
•DownTime (D/T) – production time lost due to planned or
unplanned stoppages.
•Uptime – the percent of the time that a machine is
available for production
•Changeover time (C/O) – the time required to set up a
machine to make a different product or part number.
•% Complete and accurate (%C/A) – the percent of product
completed&with
Timeline perfect quality
Summary in a (Value-Stream
Statistics process step.
Metrics) record a summary of the metrics.
•Lead time (L/T) – the time it takes one piece to move
through a process or a value stream from start to finish.
WORK CELL
 WORK CELL
A work cell is a cluster of workers, equipment, and other materials that we
need to perform a specific task. It is the logical or physical arrangement of
all the resources people use in order to carry out a task, job, or activity.
Designers in manufacturing companies commonly create work cells in
order to boost productivity and bring down costs.
If you configure a work cell well, it can significantly increase how rapidly a
process progresses; it can also reduce costs and error rates.
The work cell concept comes from lean manufacturing. Lean manufacturing
(lean) is a systematic method for waste minimization within a
manufacturing system in which we do not sacrifice productivity.
 WORK CELL
In the manufacturing or office environment, the work cell comes in many
shapes and forms. When approaching work cell optimization, some people
go for a U-shaped or T-shaped layout, or a floating design which may
have an S-shaped or X-shaped layout.
Whatever the work cell layout is, the cell designer
needs to:
– Concentrate on keeping transit times between each work station within the cell to a
minimum.

– Simplify how work and components move from one station and one cell to the next.

– Ensure that the layout is functional – it needs operators who are able to manage,
work, and supervise more than one work station.
WORK CELL EXAMPLES
 Product or line layout: The layout focuses on the
sequence of operations in the development of the
product.
Process or functional layout: This layout is most
practical in areas of low production volume
because of the flexibility it offers. It’s desirable for
non-repetitive jobs.
Fixed-position layout: The significant component
FACTORY LAYOUTS
in the production process remains in a fixed
location. The team must bring other parts,
materials, machinery, tools, and supporting
equipment to the site.
Combination type of layout: The layout is a
compromise of two or more of the above types of
designs, depending on a factory’s requirements.
SECONDARY
TOOLS OF
LEAN
MANUFACTURIN
G
66
 Points to be covered

Objectives and benefits of secondary lean tools,cause effect diagram,

Pareto Chart, Spider Chart, Poka -Yoke, Kanban, Single minute exchange
of die, Design for manufacturing and assembly,Just in Time,Visual
workplace, OEE.
 1. Enhance Process Flow: Ensure that processes flow smoothly and efficiently
without unnecessary stops or delays.
2. Reduce Waste: Identify and eliminate any additional waste that primary lean tools
Objectives of might have missed.
Secondary Tools
3. Increase Flexibility: Make processes more adaptable to changes in demand or
of product variations.
Lean 4. Improve Quality: Address quality issues by focusing on root causes and
Manufacturing implementing preventive measures.
5. Boost Employee Engagement: Involve employees in problem-solving and
continuous improvement activities.
6.Standardization: Establish standardized work procedures to ensure consistency
and predictability.
7. Measure and Monitor: Use performance metrics to track progress and identify
areas for improvement.
Benefits of 1. Cost Reduction: By eliminating waste and improving efficiency, organizations can
Secondary Tools significantly reduce operational costs.

of 2. Improved Lead Times: Streamlined processes lead to faster production and delivery
times.
Lean
3. Enhanced Customer Satisfaction: Better quality and faster delivery times result in
Manufacturing higher customer satisfaction.

4. Increased Profitability: As costs decrease and productivity increases, profitability

often improves.

5. Better Resource Utilization: Utilizing resources more efficiently leads to higher

productivity and less waste.

6. Empowered Employees: Engaging employees in improvement activities leads to a

more motivated and empowered workforce.

7. Competitive Advantage: Lean organizations are often more agile, responsive, and
competitive in the marketplace.

8. Risk Mitigation: By standardizing processes and continuously monitoring

performance, organizations can identify and address potential risks proactively.

9. Cultural Transformation: Implementing secondary lean tools often leads to a

69
cultural shift within the organization, fostering a mindset of continuous improvement
and excellence.
Kaoru Ishikawa
The man who invented
Fishbone diagram

Kaoru Ishikawa is considered the ‘Father of

Japanese Quality’ for his creation of innovative
developments in quality management. He is
famous for creating the fishbone diagram, a type
of ‘root cause analysis’ which we still use in Quality
Improvement (QI) to help make decisions and
create actions. Ishikawa is a hugely respected
figure in Quality Improvement, having been
instrumental in developing quality initiatives in
Japan.
70
What is a “Cause and Effect Diagram”?
Cause-effect diagram is a visual tool used to logically organize
possible causes for a specific problem or effect by graphically
displaying them in increasing detail, suggesting causal relationships
among theories. A popular type is also referred to as a fishbone or
Ishikawa diagram. Cause-Effect can also be diagrammed using a tree
diagram.
When diagnosing the cause of a problem, a cause-effect diagram
helps to organize various theories about root causes and presents
them graphically.
The C-E Diagram is a fundamental tool utilized in the early stages of
an improvement team.

71
 What is a “Fishbone Diagram”?

• As the name implies, fishbone diagrams are shaped like fish—or,

rather, fish skeletons. The parts of the fish represent certain parts of
the cause-and-effect scenario you're exploring.
• Head: The head of the fish is where you record the problem or
outcome you're analyzing.
• Backbone: The straight line of the backbone simply provides a way to
connect all the other bones to the head or main problem.
• Bones: The bones represent all the various causes that could be
leading to the main problem. In most fishbone diagrams, there are a
few main categories of causes with specific details branching off each.
•
72
 Types of “Fishbone Diagram”

• Simple fishbone: This offers a flexible categorization of causes,

depending on factors unique to one organization or business.
• 4S fishbone: Surroundings, Skills, Suppliers, and Systems are the
categories in which the causes are classified.
• 8P fishbone: The 8Ps stand for Price, Promotion, People, Processes,
Plant, Product, Policies, and Procedures. Here, the causes are
grouped into these categories.
• Man Machines Materials fishbone: In this case, the fishbone
diagram cause and effect are categorized into categories, like Man,
Machines, Methods, Measurements, Money, Maintenance, and
Environment.
73
ow to make a fishbone diagram

1.Identify a problem to solve. The problem will form the "head" of your fishbone diagram. In
addition to describing the problem, you can add information regarding where and when it occurred,
if it was a specific event, who was involved, and the impact on your business.
2.Choose the cause categories. Draw the "backbone" of your fishbone diagram and add lines
branching from it to represent your cause categories. Refer to the types of fishbone diagrams
section if you need ideas for cause categories to use.
3.Brainstorm potential causes. Write the specific cause ideas as branches off their corresponding
cause categories.
4.Delve deeper. You may need to create further branches connected to your cause branches to
explore the potential root cause(s) thoroughly. When collaborating with your team, include
everyone's input and ideas.
5.Agree on a root cause. Once you've finished your fishbone diagram, discuss and agree upon a
root cause. There may be more than one.
6.Discuss solutions. After using your fishbone diagram to find your root cause, take the time to
devise solutions to prevent the same problem from recurring.
74
 Benefits of fishbone diagrams
Identifying potential causes of a problem
The main benefit of a fishbone diagram is its ability to help you identify potential causes of a
problem. With the different types of fishbone diagrams available, there is a layout to fit any
type of business problem in any industry. You can use a diagram with predefined categories or
assign your own categories to fit your needs.
Revealing areas of weakness or bottlenecks in current processes
With a fishbone diagram, you can ensure no stone remains unturned as you study the problem.
As you explore potential causes, the fishbone diagram will reveal any areas of weakness or
bottlenecks in your current processes. You'll be able to address these issues, and any other root
causes you uncover along the way.
Accelerating problem-solving
Most people are visual learners, and visual aids are proven to boost memory retention and
recall. The visual format of the fishbone diagram accelerates the problem-solving process,
helping you organize and categorize your thoughts and findings within a logical structure. 75
Cause and Effect Diagram Example: Lost Control of Car

76
77
Vilfredo Pareto (1848 – 1923) was an Italian
engineer, sociologist, economist, scientist and
philosopher. During his career Vilfredo
Pareto made several important contributions to
economics, including a study of national income
distribution and tools to analyse individual choices.
One of his best known theories is the 80-20
rule which was later developed by Joseph M.
Juran.
Applications of Pareto Chart
• Pareto charts are the best chart to do the analysis of the bulk of data. In business
industries, these charts are used very often. Let us see some of its more
applications.
• For the analysis of the revenue growth of the organisation with respect to the time
period.
• To choose for any specific data and work on it, in a broad set of data available.
• To explain to other people the set of data you have.
• For the analysation of population growth in a city or country or all over the world
every year.
• To check the global problems and focus on resolving the major one.
• To check the major complaints coming from the public and resolve them on priority

79
How to Create a Pareto Chart
• Develop a list of problems to be compared.
• Develop a standard measure for comparing the items. For example, how often it occurs: frequency (e.g.,
utilization, complications, errors); how long it takes (time); and how many resources it uses (cost).
• Choose a timeframe for collecting the data.
• For each item, tally how often it occurred (or cost or total time). Then, add these amounts to determine
the grand total for all items.
• Find the percent of each item in the grand total by taking the sum of the item, dividing it by the grand
total, and multiplying by 100.
• List the items being compared in decreasing order of the measure of comparison: e.g., the most
frequent to the least frequent. The cumulative percent for an item is the sum of that item’s percent of
the total and that of all the other items that come before it in the ordering by rank.
• List the items on the horizontal axis of a graph from highest to lowest. Label the left vertical axis with
the numbers (frequency, time, or cost).
• Label the right vertical axis with the cumulative percentages (the cumulative total should equal 100%).
• Draw in the bars for each item.
• Draw a line graph of the cumulative percentages. The first point on the line graph should line up with
80
the top of the first bar.
81
POKA-
Poka-yoke is a Japanese lean manufacturing
strategy that aims to eliminate mistakes and
defects during the manufacturing process – a

YOKE
simple yet effective quality control tool that can be
used to reduce errors in almost any industry. In
other words, poka-yoke is based on preventative
actions that identify and eliminate mistakes and
the causes of variations and defects in
manufacturing operations.
The term poka-yoke originates with the Japanese
baka-yoke, meaning ‘idiot-proofing’ – which was
deemed insulting to staff and changed to poka-
yoke, which means ‘mistake-proofing’.
Poka-yoke is a Japanese lean
manufacturing strategy that aims to
eliminate mistakes and defects during
the manufacturing process – a simple
yet effective quality control tool that can
be used to reduce errors in almost any
industry. In other words, poka-yoke is
based on preventative actions that
identify and eliminate mistakes and the
causes of variations and defects in
manufacturing operations.
The term poka-yoke originates with the
Japanese baka-yoke, meaning ‘idiot-
proofing’ – which was deemed insulting
to staff and changed to poka-yoke,
Who invented poka- Shigeo Shingo, a Japanese industrial
yoke? engineer, is the inventor of the poka-
yoke approach. While visiting a
manufacturing plant in the early 1960s,
he noticed that employees had
overlooked the addition of springs into a
basic on/off switch, resulting in faulty
parts being manufactured and shipped.
From observing that simple human
error, Shingo began looking at ways to
improve and redesign the process to
ensure the operation couldn’t proceed
Shigeo Shingo
until the spring was inserted into the
switch.
Types of poka-yoke?
1. The contact method of poka-yoke

2. The fixed value method of poka-yoke

3. The motion-step method of poka-yoke
 The contact method of poka-yoke identifies
Types of poka-yoke? defects through physical attributes.
This method uses a sensory device that
detects abnormalities in a product’s shape,
size, colour, weight, or dimension.
The device alerts either a person or a machine
to the current state of the product.The contact
method is
useful in situations involving fast repetition,
infrequent production, or environmental
problems like dust, noise or poor lighting – in
other words, anything that distracts workers or
leads to mistakes.Contact method solutions suit
situations where product failure occurs when
1. The contact method of poka-
yoke parts are
incorrectly assembled. Error-proofing includes
measures like ensuring parts are correctly
positioned before assembly starts, and using
 The fixed value method in poka-yoke ensures a
set number of movements are used in
Types of poka-yoke? processes where an activity is repeated several
times.
This method often involves basic techniques
that allow workers to easily track the frequency
with which an activity has been performed, and
ensure quality standards
are met.
For example, if an employee is responsible for placing six screws on
a product before passing it down the production line, the activity of
inserting screws is performed to a fixed value – which is six times.
A fixed value poka-yoke method addresses this by ensuring the exact
quantities to complete the task are provided. By placing the screws
in containers of six, the employee can easily ensure the process is
completed correctly by using up the screws in the container
2. The fixed value method of poka-
yoke
 Motion-step in poka-yoke determines whether
Types of poka-yoke? prescribed steps are completed in order. Much
like the fixed-value method, motion-step is
helpful where several different activities are
performed by an
individual operator. The main difference from
fixed value is that it deals with activities
performed in a set sequence.
Motion-step therefore prevents and detects
errors arising from an incorrect sequence of
events.
Devices detect whether each motion is
performed, alerting workers when a step is
3. The motion-step method of poka-
skipped and enabling them to remedy the
yoke error
Methods of The first, control, prevents mistakes being made. Control aims to
make it
poka-yoke? mechanically impossible for mistakes to occur. This can be as
simple as the spell-check function on computer or mobile devices,
but is often a safety feature such as the mechanisms that stop
automatic doors closing on a person. Another example is when
appliances (e.g. washing machines, microwaves) switch off when
the door is opened.

• The second, warning, alerts workers before an error is made.

Warnings can be a
sound, colour, or message. For example, when deleting an image
from a mobile phone, a message appears asking if you want to
delete the image or send it to the recycle bin
 1. Identify the problem
Steps in Poka-Yoke?
2. Find the source of the problem

3. Determine the poka-yoke method to

use
4. Determine the right type of poka-yoke
to use
5. Train your staff

6. Measure and review performance

 • Automotive safety features. Motor vehicles come equipped with many
poka-yoke
Applications safety features like automatic braking systems, cameras and radars to keep
drivers and
Poka-Yoke? passengers safe on the road.

• Pharmaceutical goods. Tamper-proof packaging and child-safe lids on pill

bottles are
poka-yoke safety measures to prevent product interference or accidental
consumption of
potentially life-threatening medicines.

• Household appliances. Washing machines, dryers, dishwashers,

microwaves, blenders
and many other household electrical appliances all have mechanisms to
prevent unsafe
operation.

• Sporting equipment. Exercise equipment such as treadmills come equipped

with
safety clips that – when pulled – will stop the treadmill if the exerciser trips of
falls.

• Leak-proof drink containers. Travel mugs and water bottles often come
 1. Identify the problem
Steps in Poka-Yoke?
2. Find the source of the problem

3. Determine the poka-yoke method to

use
4. Determine the right type of poka-yoke
to use
5. Train your staff

6. Measure and review performance

 A spider chart, also known as a radar chart, web
What is spider Chart? chart, or star chart, is a graphical method of
displaying multivariate data in the form of a two-
dimensional chart of three or more quantitative
variables represented on axes starting from the
same point. Each variable is plotted as a point
on a radial axis, and the points are connected to
form a polygon or star-like shape.
 Multiple Axes: Each axis typically represents one of the variables,
and the value of that variable is indicated by the distance from the
What is spider Chart?center along the axis.
Data Comparison: Spider charts are useful for comparing the relative
performance or characteristics of different items across multiple
variables. For example, it can be used to compare the performance
of different products based on various criteria such as cost, quality,
and reliability.

Limitations: While spider charts can be useful for visualizing

multivariate data, they can also be complex and potentially
misleading if not used carefully. It can be challenging to interpret the
relative importance or weighting of each variable, especially if the
variables have different scales or units.

Applications: Spider charts are commonly used in various fields such

as business, sports, engineering, and research to analyze and
visualize data across multiple dimensions. They can be particularly
useful in decision-making processes where a comprehensive view of
different factors is required.
 Define Variables:
Determine the variables you want to analyze and display on the spider chart. These
variables should be quantitative and measurable.
Assign each variable to an axis on the chart. Typically, the axes are evenly spaced radially
around a central point.
Steps in spider Chart?
Select Scale:
Decide on the scale for each axis. This scale should be consistent across all variables to
ensure a fair comparison.
Label the axes with the scale values, starting from the central point and extending
outward.
Data Collection:
Gather the data for each variable across the items or entities you want to compare.
Ensure that the data is standardized or normalized if the variables have different units or
scales.
Data Plotting:
For each item or entity, plot the data points on the corresponding axes based on the
values of the variables.
Use different symbols or colors for each item to distinguish them on the chart.
Connect Data Points:
Connect the data points for each item using lines or curves to form a polygon or star
shape.
The shape created by connecting the data points represents the profile or pattern of that
item across the variables.
Label and Legend:
Label each axis with the variable name and scale values to provide context and clarity.
Include a legend or key to explain the symbols or colors used for each item on the chart.
Review and Interpret:
Examine the spider chart to identify patterns, trends, or differences across the items for
each variable.
Interpret the chart in the context of your analysis or decision-making process, considering
the relative positions and shapes of the polygons.
Iterate and Refine:
 Kaizen is a Japanese business philosophy that
continuously aims to improve the operations and
What is Kaizen? employees in the organisation. The ultimate goal
of Kaizen, as its name suggests, is to have
"change for better", whether the change is big or
small or rapid or slow. Even the small changes
happening at a crawling pace can impact the long
run.

The main advantages of Kaizen include

•Waste reduction
•Standardisation of work
•Improved efficiency
•Increased employee satisfaction
•Improved teamwork.
 Get employees involved. Seek the involvement of
employees, including soliciting their help in
identifying issues and problems.. Often, this is
What is Kaizan? organized as specific groups of individuals charged
with gathering and relaying information from a wider
group of employees.

Find problems. Using widespread feedback from all

employees, gather a list of problems and potential
opportunities. Create a list if there are many issues.

Create a solution. Encourage employees to offer

creative solutions, with all manner of ideas
encouraged. Pick a winning solution or solutions from
the ideas presented.

Test the solution. Implement the winning solution

chosen above, with everyone participating in the
rollout. Create pilot programs or take other small
steps to test out the solution.

Analyze the results. At various intervals, check

progress, with specific plans for who will be the point
of contact and how best to keep ground-level
workers engaged. Determine how successful the
change has been.
Advantages of Kaizen?

Improved teamwork
Kaizen builds leadership skills

Improved efficiency
Improved employee satisfaction
Better safety
Waste reduction
Kanba
What Is Kanban?
Kanban is an inventory control system used in just-in-time (JIT) manufacturing. It was
developed by Taiichi Ohno, an industrial engineer at Toyota, and takes its name from
the colored cards that track production and order new shipments of parts or materials
as they run out.
Kanban is a Japanese word that directly translates to "visual card", so the kanban
system simply means to use visual cues to prompt the action needed to keep a process
flowing.
What Is Kanban?
Kanban is a visual work management system that
provides a clear representation of work progression
within a process. It offers a visual depiction of both
the workflow process and the tasks in transit. The
primary aim of Kanban is to pinpoint any possible
obstructions in your process and resolve them,
enabling work to move efficiently at an optimal pace,
thus ensuring cost-effectiveness.
What Is Kanban?
METHODS?

• Visualize the flow of work

• Limit WIP (Work in Progress)
• Manage Flow
• Make Process Policies Explicit
• Implement Feedback Loops
• Improve Collaboratively, Evolve
Experimentally
Visualize the flow
of work
1. This is the fundamental first step to adopting and implementing
the Kanban Method. You need to visualize – either on a physical
board or an electronic Kanban Board, the process steps that you
currently use to deliver your work or your services. Depending on
the complexity of your process and your work-mix (the different
types of work items that you work on and deliver), your Kanban
board can be very simple to very elaborate. Once you visualize your
process, then you can visualize the current work that you and your
team are doing.
This can be in the form of stickies or cards with different colors to
signify either different classes of service or could be simply the
different type of work items.
2. Limit WIP (Work in Progress)

Limiting work-in-progress (WIP) is fundamental to implementing

Kanban – a ‘Pull-system’. By limiting WIP, you encourage your
team to complete work at hand first before taking up new work.
Thus, work currently in progress must be completed and marked
done. This creates capacity in the system, so new work can be
pulled in by the team.
3. Manage Flow
Depending on how well the workflow is defined and WIP Limits
are set, you will observe either a smooth flow within WIP limits
or work piling up as something gets held up and starts to hold
up capacity. All of this affects how quickly work traverses from
start to the end of the workflow (some people call it value
stream). Kanban helps your team analyze the system and make
adjustments to improve flow so as to reduce the time it takes to
complete each piece of work.
4. Make Process
Policies
As part of visualizing your process, it makes sense to also define
and visualize explicitly, your policies (process rules or guidelines)
for how you do the work you do. By formulating explicit process
guidelines, you create a common basis for all participants to
understand how to do any type of work in the system.
5. Implement Feedback
Loops
Feedback loops are an integral part of any good system. The Kanban
Method encourages and helps you implement feedback loops of
various kinds – review stages in your Kanban board workflow, metrics
and reports and a range of visual cues that provide you continuous
feedback on work progress – or the lack of it – in your system.
6. Improve Collaboratively, Evolve
Experimentally

The Kanban Method is an evolutionary improvement process. It

helps you adopt small changes and improve gradually at a pace
and size that your team can handle easily. It encourages the use of
the scientific method – you form a hypothesis, you test it and you
make changes depending on the outcome of your test. As a team
implementing Lean/ Agile principles, your key task is to evaluate
your process constantly and improve continuously as needed and
as possible.
Just-in-time (JIT) is an inventory management approach in which goods
are received from suppliers only as they are required. The main purpose of
this strategy is to decrease inventory holding costs and increase inventory
turnover.
Or
The just-in-time, or JIT, inventory system is a management technique
that minimizes inventory and improves efficiency.
Or
The Just-In-Time or JIT concept is a manufacturing workflow process
aimed at reducing flow times and costs within production systems and the
distribution of materials.
Historical Background
The idea of Just in Time originated with Kiichiro Toyoda (1894–
1952), founder of the Toyota Motor Company. During a trip to
England, Toyoda missed a train. The train was on time, but Toyoda
was slightly late. This had him thinking about analogies for
material. Material arriving too late is obviously bad, as it causes
stops and delays. However, material arriving too early is also bad,
as it increases material. Hence, the material had to arrive just on
time. Combined with a grammatical error, this is now the famous
Just in Time (JIT), first mentioned at Toyota around 1936. Kiichiro
The experience of Ohno and Toyota during World War II probably
Toyoda
helped too. The company was constantly plagued by material
shortages, and having unused material sitting around while they
lacked other materials was especially painful. In combination with
pull, kanban, and many other things, Ohno successfully managed to
reduce inventories. This also included the use of Just in Time.

The Western world became curious about the success of Toyota only
after the 1973 oil crisis, which hurt many Western car makers but
not Toyota. A large study and the resulting bestseller The Machine
That Changed the World showed that Japanese car makers were Taiichi Ohno
 Lower Costs & Better Cash-
Flow
The most profound advantage of a just-in-time inventory model is the
cost-benefit. This comes from a greatly reduced working capital
requirement which results in better profit margins. By eliminating the
stock of materials normally required in a manufacturing or production
process, other expensive items are simultaneously eliminated.

•Reduced storage space requirements (reduced storage costs)

•Reduced capital expense for parts
•Reduced labor costs
Helps Ensure Items are Always
In-Stock
A JIT system ensures that products are available when customers
need them, which helps keep customers happy and keeps businesses
from losing business.
Improved Efficiency

Just-in-time inventory improves efficiency by reducing the time and

money spent on managing inventory. When a business uses just-in-time
inventory, it only orders products when it knows it will need them. This
means that the business is not wasting money on products it doesn’t
need and that it’s not storing products in its warehouse for longer than
necessary.
 Reduced Waste

Waste often comes from over-stocking parts that may go out of

production, or are replaced by a new version before all the stock is used
up. This results in dead stock either for particular parts, or entire
products. Just-in-time inventory helps to increase efficiency and decrease
waste by receiving goods for only what’s needed during that production
period.
As materials are supplied only in smaller batch quantities,
adjustments are easier to make in production runs without wasting
vast quantities of materials or parts.

Because a JIT manufacturing line typically involves shorter

production schedules, the entire production can switch
from one part or assembly to another much faster.
Supply Problems
Because the just-in-time inventory model carries only a small amount of
parts, any supply chain problem is immediately felt.

Suppliers Must Be
Reliable
One of the key reasons why suppliers must be reliable with just-in-time
inventory management is because companies using this system rely on a
constant and uninterrupted flow of materials to produce their products.
If a supplier has a problem and cannot deliver the parts that a just-in-time
company needs, that company will be unable to produce its products.
This will result in a shortage of products and lost sales.
Less Flexibility for Demand
Increases
The same disadvantage that makes supply chain problems felt sooner by a
just-in-time company also affects their response to sudden shifts in
demands. If demand suddenly increases, the JIT system may not have the
flexibility to cope with this demand, leading to stockouts.
Here are 1.Are my suppliers reliable?
some 2.Do I have a good relationship with my
questions to suppliers?
ask yourself 3.Are my processes under control?
when deciding 4.Are my product, industry, and workforce
to implement suitable for JIT inventory?
JIT inventory 5.Am I capable of good forecasting?
management 6.Do I have the technology (software) to
or not: support JIT?
7.Is my company capable of utilizing JIT
technology?
 Famous for its JIT inventory system, Toyota Motor Corporation
1\
orders parts only when it receives new car orders. Although the
company installed this method in the 1970s, it took 20 years to
perfect it.
Sadly, Toyota's JIT inventory system nearly caused the company to
Example of JIT come to a halt in February 1997, after a fire at Japanese-owned
automotive parts supplier Aisin decimated its capacity to produce
P-valves for Toyota's vehicles. Because Aisin is the sole supplier of
this part, its weeks-long shutdown caused Toyota to halt
production for several days.
This caused a ripple effect, where other Toyota parts suppliers
likewise had to temporarily shut down because the automaker had
no need for their parts during that time period. Consequently, this
fire cost Toyota 160 billion yen in revenue.
 At the start of the COVID-19 pandemic and its ripple effect on the
Example of JIT economy and supply chain, things like paper surgical masks, toilet
paper, and hand sanitizer experienced disruption. This was
because inputs from overseas factories and warehouses could not
be delivered in time to meet the surge in demand caused by the
pandemic
WHAT IS

SMED SMED (Single-Minute Exchange of Die) is a system for

dramatically reducing the time it takes to complete
equipment changeovers. The essence of the SMED
system is to convert as many changeover steps as
possible to “external” (performed while the equipment
is running), and to simplify and streamline the
remaining steps. The name Single-Minute Exchange of
Die comes from the goal of reducing changeover
times to the “single” digits (i.e., less than 10 minutes).
D-stands for dies/die.
In manufacturing, a die is a specialized piece of
equipment used to define the size and shape of a product.
A die is best described as a stamp or an industrial cookie-
S
cutter.
M
E- stands for exchange of dies.
Since a die is customized to create a certain size and
shape, the die of one product would be different from the
die of another. Therefore, exchanging dies simply means
E
switching from making one product to making another.
D
SM, stand for single-minute, which is ideally how long it
should take to switch from making one product to another
or “to exchange dies”. However, this can be modified to
mean single-digit minute exchange of dies (less than 10
 BASICS OF SMED
SMED was developed by Shigeo Shingo, a Japanese industrial engineer who was
extraordinarily successful in helping companies dramatically reduce their
changeover times. His pioneering work led to documented reductions in changeover
times averaging 94% (e.g., from 90 minutes to less than 5 minutes) across a wide
range of companies.

Changeover times that improve by a factor of 20 may be hard to imagine, but

consider the simple example of changing a tire:

For many people, changing a single tire can easily take 15 minutes.
For a NASCAR (National association for Stock car auto race) pit crew, changing four
tires takes less than 15 seconds.
Many techniques used by NASCAR pit crews (performing as many steps as possible
before the pit stop begins; using a coordinated team to perform multiple steps in
parallel; creating a standardized and highly optimized process) are also used in
SMED. In fact, the journey from a 15-minute tire changeover to a 15-second tire
What You Can Gain
From Implementing
SMED
S
M
E
D
 Step 1: Separate
The first step in the SMED process is to separate changeover elements
or group them according to their type (internal or external).

S
Changeover elements are the steps taken to complete the equipment
changeover. There are two types of changeover elements:
Internal changeover elements are the steps that can only be done
when the equipment is not processing anything

M
External changeover elements are the steps that can be done while the
equipment
Step is running (or in the middle of processing something)
2: Convert
The second step in the SMED process is to convert internal changeover
elements to external changeover elements. Once you’ve identified an
internal changeover element that could be converted to external,
ensure that the benefit (in terms of time saved) outweighs the cost of
conversion (the resources needed to convert the changeover element
E
to external).
Step 3: Streamline
The third step in the SMED process is to streamline the internal
changeover elements that weren’t converted to external. The
D
fundamental SMED technique for this step is to follow the Lean
principle of “trimming the fat” by removing inefficiencies from
internal changeover elements.
 If you want to improve your shop floor
O- overall performance and eliminate waste, you need to
know how to measure and optimize your overall
E- equipment equipment effectiveness (OEE). OEE is a key
metric that reflects how well your machines,
E- processes, and operators are performing. In this
effectiveness article, you will learn what OEE is, how to
calculate it, and how to use it to drive
continuous improvement in your lean
manufacturing environment.
What is OEE stands for overall equipment effectiveness,
and it is a percentage that measures how
O- overall productively your equipment is used.
It is based on three factors:
E- equipment availability
performance
E- and quality.
effectiveness Availability is the ratio of actual running time to
planned production time. Performance is the
ratio of actual output to maximum possible
output. Quality is the ratio of good products to
total products. OEE is the product of these
three factors, and it ranges from 0% to 100%. A
higher OEE means that your equipment is more
efficient, reliable, and consistent.
 OEE = Availability x Performance x
Quality
For example, suppose you have a machine that runs
for 8 hours a day, but has 1 hour of downtime due to
How to breakdowns, maintenance, and setup. Its availability
is 7/8 or 87.5%. Suppose the machine has a maximum
calcula output of 100 units per hour, but only produces 80
units per hour on average. Its performance is 80/100
te or 80%. Suppose the machine has a defect rate of 5%,
meaning that 5 out of every 100 units are rejected. Its
OEE? quality is 95/100 or 95%. Therefore, its OEE is:
OEE = 0.875 x 0.8 x 0.95
OEE = 0.665 or 66.5%
This means that the machine is only operating at
66.5% of its full potential.
D Y Patil College of Engineering &Technology, KASABA
BAWADA, KOLHAPUR

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