Introduction & Origin of Lean Manufacturing Concepts

Lean manufacturing is a production practice that envisages that the expenditure of resources for any goal other than the creation of value for the end customer to be wasteful, and thus a target for their elimination. Working from the perspective of the customer who consumes a product or service, "value" is defined as any action or process that a customer would be willing to pay for. Lean manufacturing is a generic process management philosophy derived mostly from The Toyota Production System (TPS) (hence the term Toyotism is also prevalent) and identified as "Lean" only in the 1990s designed by Sakichi Toyoda. The term was first coined by John Krafcik in a Fall 1988 article, "Triumph of the Lean Production System," published in the Sloan Management Review and based on his master's thesis at the MIT Sloan School of Management

OriginAlso known as the flexible mass production, the TPS has two pillar concepts: Just-intime (JIT) or "flow", and "autonomation" (smart automation). Adherents of the Toyota approach would say that the smooth flowing delivery of value achieves all the other improvements as sideeffects. If production flows perfectly then there is no inventory; if customer valued features are the only ones produced, then product design is simplified and effort is only expended on features the customer values. The other of the two TPS pillars is the very human aspect of autonomation, whereby automation is achieved with a human touch. The "human touch" here meaning to automate so that the machines/systems are designed to aid humans in focusing on what the humans do best. This aims, for example, to give the machines enough intelligence. Lean implementation is therefore focused on getting the right things to the right place at the right time in the right quantity to achieve perfect work flow, while minimizing waste and being flexible and able to change. These concepts of flexibility and change are principally required to allow production leveling, using tools like Single Minute Exchange of Die, but have their analogues in other processes such as research and development. The flexibility and ability to change are within bounds and not open-ended and therefore often not expensive capability requirements. More importantly, all of these concepts have to be understood, appreciated, and embraced by the actual employees who build the products and therefore own the processes that deliver the value. There are many examples of Lean tool implementation without sustained benefit, and these are often blamed on weak understanding of Lean throughout the whole organization. Lean aims to make the work simple enough to understand, do and manage. To achieve these three goals at once there is a belief held by some that Toyota's mentoring process senior and junior method, is one of the best ways to foster Lean Thinking up and down the organizational structure. This is the process undertaken by Toyota as it helps its suppliers improve their own production. There have been recent attempts to link Lean to Service Management, perhaps one of the most recent and spectacular of which was London Heathrow Airport's Terminal 5. This particular case provides a graphic example of how care should be taken in translating successful practices from one context (production) to another (services), expecting the same results. In this case the public perception is more of a spectacular failure, than a spectacular success, resulting in potentially an unfair tainting of the lean manufacturing philosophies

Literary Survey
Lean is the set of "tools" that assist in the identification and steady elimination of waste (muda). As waste is eliminated quality improves while production time and cost are reduced. Examples of such "tools" are Value Stream Mapping, Five S, kanban (pull systems), and poka-yoke (errorproofing). There is a second approach to Lean Manufacturing, which is promoted by Toyota, in which the focus is upon improving the "flow" or smoothness of work, thereby steadily eliminating mura ("unevenness") through the system and not upon 'waste reduction' per se. Techniques to improve flow include production leveling, "pull" production (by means of kanban) and the Heijunka box. This is a fundamentally different approach from most improvement methodologies, which may partially account for its lack of popularity. The difference between these two approaches is not the goal itself, but rather the prime approach to achieving it. The implementation of smooth flow exposes quality problems that already existed, and thus waste reduction naturally happens as a consequence. The advantage claimed for this approach is that it naturally takes a system-wide perspective, whereas a waste focus sometimes wrongly assumes this perspective. Both Lean and TPS can be seen as a loosely connected set of potentially competing principles whose goal is cost reduction by the elimination of waste. These principles include: Pull processing, perfect first-time quality, Waste minimization, Continuous improvement, Flexibility, Building and maintaining a long term relationship with suppliers, Autonomation, Load leveling and Production flow and Visual control. The disconnected nature of some of these principles perhaps springs from the fact that the TPS has grown pragmatically since 1948 as it responded to the problems it saw within its own production facilities. Thus what one sees today is the result of a 'need' driven learning to improve where each step has built on previous ideas and not something based upon a theoretical framework. Toyota's view is that the main method of Lean is not the tools, but the reduction of three types of waste: muda ("non-value-adding work"), muri ("overburden"), and mura ("unevenness"), to expose problems systematically and to use the tools where the ideal cannot be achieved. From this perspective, the tools are workarounds adapted to different situations, which explains any apparent incoherence of the principles above. In addition to eliminating waste, lean manufacturing seeks to provide optimum quality by building in a method whereby each part is examined immediately after manufacture, and if there is a defect, the production line stops so that the problem can be detected at the earliest possible time. The lean manufacturing method has much in common with the Total Quality Management (TQM) strategy. Both strategies empower workers on the assembly line, in the belief that those closest to production have the greatest knowledge of how the production system should work.

Lean Goals and Strategy The espoused goals of Lean manufacturing systems differ between various authors. While some maintain an internal focus, e.g. to increase profit for the organization, others claim that improvements should be done for the sake of the customer. Some commonly mentioned goals are:

Improve quality: To stay competitive in todays marketplace, a company must understand its customers' wants and needs and design processes to meet their expectations and requirements. Eliminate waste: Waste is any activity that consumes time, resources, or space but does not add any value to the product or service.

Taking the first letter of each waste, the acronym "TIM WOOD" is formed. This is a common way to remember the wastes.

Reduce time: Reducing the time it takes to finish an activity from start to finish is one of the most effective ways to eliminate waste and lower costs. Reduce total costs: To minimize cost, a company must produce only to customer demand. Overproduction increases a companys inventory costs because of storage needs.

The strategic elements of Lean can be quite complex, and comprise multiple elements. Four different notions of Lean have been identified: 1. 2. 3. 4. Lean as a fixed state or goal (Being Lean) Lean as a continuous change process (Becoming Lean) Lean as a set of tools or methods (Doing Lean/Toolbox Lean) Lean as a philosophy (Lean thinking)

Lean Methodology
The various branches of lean manufacturing methods can be broadly classified as follows:1. Workcells

Cellular Manufacturing and workcells are at the heart of Lean Manufacturing. Their benefits are many and varied. They increase productivity and quality. Cells simplify material flow, management and even accounting systems. Cellular Manufacturing seems simple. But beneath this deceptive simplicity are sophisticated Socio-Technical Systems. Proper functioning depends on subtle interactions of people and equipment. Each element must fit with the others in a smoothly functioning, self-regulating and self-improving operation. A workcell is a work unit larger than an individual machine or workstation but smaller than the usual department. Typically, it has 3-12 people and 5-15 workstations in a compact arrangement. An ideal cell manufactures a narrow range of highly similar products. Such an ideal cell is selfcontained with all necessary equipment and resources. Cellular layouts organize departments around a product or a narrow range of similar products. Materials sit in an initial queue when they enter the department. Once processing begins, they move directly from process to process (or sit in mini-queues). The result is very fast throughput. Communication is easy since every operator is close to the others. This improves quality and coordination. Proximity and a common mission enhance teamwork. Simplicity is an underlying theme throughout cellular design. Notice the simplicity of material flow. Scheduling, supervision and many other elements also reflect this underlying simplicity. The example is from an electronics plant. In the functional configuration, departmental organization is by function (or process). Since each board requires all (or most) processes, it travels to every department. In each department, it sits in queue waiting for processing. Ten process steps require ten queues and ten waits. Travel distances are long, communication is difficult and coordination is messy

2. Kanban: Kanban scheduling systems operate like supermarkets. A small stock of every item sits in a dedicated location with a fixed space allocation. Customers come to the store and visually select items. An electronic signal goes to the supermarket's regional warehouse detailing which items have sold. The warehouse prepares a (usually) daily replenishment of the exact items sold. In modern supermarkets Kanban signals come from checkout scanners. They travel electronically (usually once a day) to the warehouse. Smaller stores still use visual systems. Here, a clerk walks the aisles daily. From empty spaces he deduces what sold and orders replacements.

Another variation is the bread truck. Here drivers follow a fixed route from store to store. They have a supply of bakery items in their truck. At each stop, they examine the stock and replenish what has been sold. Kanban scheduling in manufacturing works in the same way. The essential elements of a system are:

Stockpoint(s) A Withdrawal Signal Immediate Feedback Frequent Replenishment

In the manufacturing kanban system, a machine shop supplies components to final assembly. Assembly is a manual operation with little setup and produces in lot sizes of one, to customer requirements. Machining is more automated and has significant setup costs. Machining produces in batches to amortize the setup and sequence parts to minimize tool changes. A small quantity of each part is maintained at machining. By observing the quantities, the machinists know what products need to be made.

3. Single Minute Exchange of Die

Single-Minute Exchange of Die (SMED) is one of the many lean production methods for reducing waste in a manufacturing process. It provides a rapid and efficient way of converting a manufacturing process from running the current product to running the next product. This rapid changeover is key to reducing production lot sizes and thereby improving flow (Mura). The phrase "single minute" does not mean that all changeovers and startups should take only one minute, but that they should take less than 10 minutes (in other words, "singledigit minute").Closely associated is a yet more difficult concept, One-Touch Exchange of Die, (OTED), which says changeovers can and should take less than 100 seconds. Shigeo Shingo (one of the proponents of SMED) recognizes eight techniques that should be considered in implementing SMED. 1. 2. 3. 4. 5. 6. 7. 8. Separate internal from external setup operations Convert internal to external setup Standardize function, not shape Use functional clamps or eliminate fasteners altogether Use intermediate jigs Adopt parallel operations (see image below) Eliminate adjustments Mechanization

Example Toyota found that the most difficult tools to change were the dies on the large transfer-stamping machines that produce car vehicle bodies. The dies which must be changed for each model weigh many tons, and must be assembled in the stamping machines with tolerances of less than a millimeter; otherwise the stamped metal will wrinkle, if not melt, under the intense heat and pressure. When Toyota engineers examined the change-over, they discovered that the established procedure was to stop the line, let down the dies by an overhead crane, position the dies in the machine by human eyesight, and then adjust their position with crowbars while making individual test stampings. The existing process took from twelve hours to almost three days to complete. Toyota's first improvement was to place precision measurement devices on the transfer stamping machines, and record the necessary measurements for each model's die. Installing the die against these measurements, rather than by human eyesight, immediately cut the change-over to a mere hour and a half.

Further observations led to further improvements scheduling the die changes in a standard sequence (as part of Fixed Repeating Schedule) as a new model moved through the factory, dedicating tools to the die-change process so that all needed tools were nearby, and scheduling use of the overhead cranes so that the new die would be waiting as the old die was removed. Using these processes, Toyota engineers cut the change-over time to less than 10 minutes per die, and thereby reduced the economic lot size below one vehicle. The success of this program contributed directly to just-in-time manufacturing which is part of the Toyota Production System. SMED makes Load balancing much more achievable by reducing economic lot size and thus stock levels.

4. Total Quality Management (TQM) Total Quality Management (or TQM) is a management concept coined by W. Edwards Deming. The basis of TQM is to reduce the errors produced during the manufacturing or service process, increase customer satisfaction, streamline supply chain management, aim for modernization of equipment and ensure workers have the highest level of training. One of the principal aims of TQM is to limit errors to 1 per 1 million units produced. Total Quality Management is often associated with the development, deployment, and maintenance of organizational systems that are required for various business processes. A core concept in implementing TQM is Demings 14 points, a set of management practices to help companies increase their quality and productivity: 1. 2. 3. 4. Create constancy of purpose for improving products and services. Adopt the new philosophy. Cease dependence on inspection to achieve quality. End the practice of awarding business on price alone; instead, minimize total cost by working with a single supplier. 5. Improve constantly and forever every process for planning, production and service. 6. Institute training on the job. 7. Adopt and institute leadership. 8. Drive out fear. 9. Break down barriers between staff areas. 10. Eliminate slogans, exhortations and targets for the workforce. 11. Eliminate numerical quotas for the workforce and numerical goals for management. 12. Remove barriers that rob people of pride of workmanship, and eliminate the annual rating or merit system. 13. Institute a vigorous program of education and self-improvement for everyone. 14. Put everybody in the company to work accomplishing the transformation.

5. Six Sigma Six Sigma is a business management strategy originally developed by Motorola, USA in 1981. As of 2010, it is widely used in many sectors of industry, although its use is not without controversy. Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes. It uses a set of quality management methods, including statistical methods, and creates a special infrastructure of people within the organization ("Black Belts", "Green Belts", etc.) who are experts in these methods. Each Six Sigma project carried out within an organization follows a defined sequence of steps and has quantified financial targets (cost reduction or profit increase). The term six sigma originated from terminology associated with manufacturing, specifically terms associated with statistical modelling of manufacturing processes. The maturity of a manufacturing process can be described by a sigma rating indicating its yield, or the percentage of defect-free products it creates. A six-sigma process is one in which 99.99966% of the products manufactured are statistically expected to be free of defects (3.4 defects per million). Motorola set a goal of "six sigmas" for all of its manufacturing operations, and this goal became a byword for the management and engineering practices used to achieve it. Six Sigma mainly uses the DMAIC approach which is: Define, Measure, Analyze, Improve & Control, i.e:

Define the problem, the voice of the customer, and the project goals, specifically. Measure key aspects of the current process and collect relevant data. Analyze the data to investigate and verify cause-and-effect relationships. Determine what the relationships are, and attempt to ensure that all factors have been considered. Seek out root cause of the defect under investigation. Improve or optimize the current process based upon data analysis using techniques such as design of experiments, poka yoke or mistake proofing, and standard work to create a new, future state process. Set up pilot runs to establish process capability. Control the future state process to ensure that any deviations from target are corrected before they result in defects. Implement control systems such as statistical process control, production boards, and visual workplaces, and continuously monitor the process.

6. Team Building Team Building refers to a wide range of activities, presented to businesses, schools, sports teams, religious or nonprofit organizations designed for improving team performance. Team building is pursued via a variety of practices, and can range from simple bonding exercises to complex simulations and multi-day team building retreats designed to develop a team (including group assessment and group-dynamic games), usually falling somewhere in between. It generally sits within the theory and practice of organizational development, but can also be applied to sports teams, school groups, and other contexts. Team building is not to be confused with "team recreation" that consists of activities for teams that are strictly recreational. Teambuilding is an important factor in any environment, its focus is to specialize in bringing out the best in a team to ensure self development, positive communication, leadership skills and the ability to work closely together as a team to problem solve. Work environments tend to focus on individuals and personal goals, with reward & recognition singling out the achievements of individual employees. "How to create effective teams is a challenge in every organization ". Team building can also refer to the process of selecting or creating a team from scratch.

Results & Conclusions

Successful implementation of lean manufacturing methods has shown a lot of benefits. As a company reduces the 7 wastes (Labour, overproduction, space, defects, inventory, transportation, unnecessary human motion) and strives for single piece flow, many other benefits will follow. Some of these benefits include (1) improved quality and fewer defects (2) reduced inventory (3) less space required to build product, (4) enhancement to overall manufacturing flexibility, (5) identification of future kaizen workshops, (6) ensures a safer work environment and (7) improves employee morale.

Thus on lean manufacturing principles, the following conclusions can be drawn:

(1) Improved quality and fewer defects: When batching and lot production are eliminated, there is less opportunity to manufacture defects. Since the batch size will be just 1, there will not be mountains of inventory to count, move, store and pick. Furthermore, single piece flow ensures that if there is a quality problem, we know that the defect has affected only that single part. We do not need to dedicate hours isolating and testing other material in the same production run to determine if it meets quality standards. Of course, if a defect is caught in a single piece flow environment, this should not mean that we do not take the appropriate corrective actions to ensure that the problem will not reoccur. In this case, the manager or supervisor must determine if standard work was followed and if so, what changes need to be made to the standard in order to ensure that the problem will never resurface again (Kaizen). (2) Reduced Inventory: Implementing single piece flow will require each operation to only produce what is needed by the next operation (in Lean jargon, we call this individual the surgeon). When followed properly, the process will eliminate any opportunity to build ahead. Consequently, inventories will not be allowed to build up. (3) Requires less space: As inventory levels are reduced, less space and manpower will be required to manage (receive, count, stock, store, pick and deliver) it. In addition, single piece flow usually results in manufacturing cells which squeeze machines close together so that a single operator can oversee many pieces of equipment with the least amount of walking motion. (4) Enhances overall manufacturing flexibility: We know from our value steam maps that the less inventory in a value steam, the shorter the lead-time will be from customer order to product delivery. In a single piece flow environment, since we operate with less inventory, lead-times will also drop, thereby giving us more time to react to customer orders (unless the strategic decision is made to pass off the lead-time gains to the customer in order to beat competitors!).

(5) Makes identifying future kaizens simpler: We have already discussed that in a single piece flow environment, defects and WIP inventories fall. As this happens, the shop floor will open up and it will become easier to see production problems. For example, if a particular process can not keep up with takt time and WIP is not allowed to be incurred, it will quickly become apparent to even the casual observer that something is wrong. In this case, it will be easy to decide where to focus the next improvement activity. (6) Ensures a safer work environment: Less inventory means less clutter, more light in the darkest corners of the factory and the opportunity to better lay out equipment and tools. Also, since manufacturing cells are occupied by a set number of employees who each know their repeating tasks (as defined by standard work), there is less opportunity for unexpected movements, which increase the chances of accidents. (7) Improves employee morale: Since single piece flow results in production problems being identified and (hopefully) solved right away, team members will receive immediate feedback on their work. This in turn will give everybody more ownership in their production area. Also, provided they lead problem solving efforts by focusing on processes and not individuals, more trust will be gained in managers.

CONTENTS

1. Introduction..1

2. Literary Survey..2-3

3. Lean Methodologies..4-9 Workcells.4 Kanban.5 Single Minute Exchange of Die......6 Total Quality Management....7 Six Sigma..8 Team Building..9

4. Results & Conclusions....10-11

M S RAMAIAH INSTITUTE OF TECHNOLOGY (AUTONOMOUS) DEPARTMENT OF MECHANICAL ENGINEERING NANOTECHNOLOGY ASSIGNMENT

Topic: Lean Manufacturing

Submitted To: Mr. Sridhar B.S

By: Name: Abhinand USN: 1MS07ME001 Section: 7th Semester A Section, A1 Batch

DATE: 09th November 2010