Lean operations

Lean management
principles

• High volume production with

minimising:
– Inventory of raw material – Work in
Progress (WIP) – Finished goods
• Parts arrive at work stations Just in
Time (JIT) and are completed and
move through the system quickly.
• Nothing will be produced until it is
needed (Pull)
• High levels of Quality, Supplier
integration, fairly predictable demand.
What Lean Does?

1. Attacks ‘Waste’. 2. Exposes

problems and bottlenecks. 3.
Achieves streamlined
production.

• JIT & TQM are the two

fundamental pillars of a lean

management system
Waste

• Anything other than the

minimum amount of equipment,
materials, parts, workers and
working time which is absolutely
essential for production is an
operational waste
• Any process or a set of
activities that do not add value
as perceived by the customer
Operational Seven
Wastes

1. Waste from over

production 2. Waste of
waiting time 3.
Transportation waste 4.
Inventory waste 5.
Processing waste 6. Waste
of motion 7. Waste from
Product defects
Seven Elements that
address elimination of
waste 1. Focused factory
networks 2. Group technology 3.
Quality at source 4. JIT production
5. Uniform plant loading - Heijunka
6. Kanban production control 7.
Minimised setup times

Value Stream Mapping as method

of identifying and eliminating

wastes in processes
VA, NVA, NNVA
• Value added (VA): Activities are
classified as value added as long

as the customer is willing to pay

for that activity

• Non-value added (NVA): All
those activities for which the

customer may not want to pay

are classified as non-value

added activities
• Necessary but non-value
added (NNVA): the set of
activities that are to be

eventually eliminated as and

when better systems are

developed in an organization
Value stream

• All activities that need to be

performed (VA and NNVA) from
the time the customer order is
received to the time the order is
fulfilled will make up the value
stream
Value stream mapping
• Value stream mapping is a lean
manufacturing technique used to

analyze the flow of materials and

information currently required to

bring a product or service. It is a

helpful method that can be used in

Lean environments to identify

opportunities for improvement in

lead time.
Less is more Productive !
• Manufacturing Architectural
Changes
• Set-up time Reduction
• Small Lot size processing
• Pull Scheduling
• Simplified Operation Control
(Kanban)

Just in Time (JIT)

Elimination of waste & creating a

value stream for products & services
Just In Time
Manufacturing Water Flow
Analogy
Unrealistic Variable Defective Poor schedules Lack
Processing Material Quality
of Times training Machine Inadequate Bottleneck
Breakdown Information
Behavioural/Managerial constraints

JIT Logic JIT Overall Impact

• Withdraw buffer “deliberately” • Faster feedback on Quality
• Thereby expose hidden problems, implement and
problems in the system attain smooth production
• Quality Improvement rates
• Tightly linking preceding
• Identify solutions to the and subsequent processes

• Repeat the above steps • Increased responsibility effects

JIT Manufacturing
• Manufacturing system should conform to a
process
• Total Quality Management to be deployed
• Kanban based scheduling
• Standard Containers
• Constantly eliminate waste
– Setup time reduction – Lot size reduction – Inven
reduction – Removing Kanbans – Quality improvem
Small group improvements – Defect free supplies –
Supplier collaborations
Kaizen - continuous process
improvement

• Kaizen is small improvements carried out o

continual basis and involves all people in the
organization. Kaizen requires no or little
investment.
• The principle behind Kaizen is that a large
number of small improvements are more effe
in an organizational environment than a few l
scale improvements.
• Kaizen begins with an up-front planning act
that focuses its application where it will have
greatest effect within a business and defines
project that analyses machine operations
information, uncovers waste, uses a form of r
cause analysis.
Requires a change in attitud
......

• “It is not my job”

• It is nothing to do with me
• What is the point?
• They don’t, so why should we?
• It will do
• Just get it going
• Don’t tell me

A safe, clean, orderly workplace is

fundamental to quality, efficiency, and
teams

❑Sort (organize) - Seri ❑Shine (clean) - Sei

❑Set in order (make orderly and neat) - Seito
❑Standardize (visual place for everything) -
Seiketsu ❑Sustain (maintain the system) -
Shitsuke
5S Workplace
Characteristics of a LEAN process
Does each step add Can we Changeover without
value to customer or compromising Capability availability and adequacy?
Valuable(Is it adding value to the
some steps can be left out customer? ) Ability To be flexible is the is the hallm
Flexible(Can it shift
Capable (Can it be from making green
conducted with the ones to red ones
quickly? ) PDCA
same good result every t
To promote a problem- solving Culture
Available(Can it be Adequate(Do we have
performed when capacity to do it exactly
needed, say, no whenever required? Or a is
breakdown or there a bottleneck? )
varying cycle times? )

VCAAF is the Mnemonic to remember characteristics of a LEAN pro

Source : Gemba Walks, Jim Womack

Famous Lean Quotes

• The most dangerous kind of waste is the waste that we do not recognize. -Shi
Shingo
• All we are doing is looking at the time line, from the moment the customer give
order to the point when we collect the cash. And we are reducing the time line b
reducing the non-value adding wastes. - Taiichi Ohno

• Why not make the work easier and more interesting so that people do no
sweat? The Toyota style is not to create results by working hard. It is a system
there is no limit to people’s creativity. People don’t go to Toyota to ‘work’, they g
‘think’. - Taiichi Ohno

• I say an hour lost at a bottleneck is an hour out of the entire system. I say an h
saved at a non-bottleneck is worthless. Bottlenecks govern both throughput and
inventory. – Eliyahu Goldratt

• In God we trust. All others bring data - Edward Deming

Lean and Green

• Green Operations
– reductions in energy consumption – less waste generat
and hazardous materials used – building the companies’
as socially responsible organizations
• Lean and Green Systems share many of the sam
best practices to reduce their respective waste
• Yet, these two systems tend to operate independ

administered by distinctly different personnel,

within the same manufacturing plant.

• progressive companies applied advanced
management practices (e.g. management

commitment, teams, new process technology

innovative product design, supply chain

management) toward minimizing environment

waste. – these techniques are associated with both Lea

Green manufacturing systems.