What is Lean Manufacturing?
→ It is all about optimizing processes and eliminating waste and we will become more efficient.
→ This is a Japanese concept and in this concept, we have to find waste in our process and cut it out and the process will become lean.
→ It is a systematic approach to identifying and eliminating waste through continuous improvement in our process.
→ It is a methodology that focuses on minimizing waste within production systems and simultaneously it maximizes productivity.
→ This kind of production of goods using less of everything as compared to traditional mass production like less waste, less human effort, less manufacturing space, less investment in tools, less inventory, less engineering time to develop a new product, etc.
History:
History of Lean Manufacturing
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Goals of Lean Production:
→ Cost Reduction
→ Creating Conditions for Improving Product Quality
→ Quality First Time Through
→ Customer Satisfaction
→ Building In Quality at Each Stage
→ The Added Value of Repairs
→ Motivate all workers towards continuous improvement
→ Streamline or smooth operation flow etc....
8 Wastes of Lean:
[1] Transportation:
→ Transportation is the movement of goods from one location to another in the case of production or it also refers to information flow in case of service.
→ In manufacturing, unnecessary transportation during product assembly is a waste.
→ In easy language, we can say that performing different tasks in different locations.
→ For example, we are producing child parts in China and shipping them to India to assemble.
→ This process doesn’t add value to the end product, it doesn’t change the end result and it adds more cost.
→ If we take an example of Toyota, Tata, Ford’s manufacturing setup, many of their
suppliers are near their production plants.
[2] Inventory:
→ If our finished goods are not moving as per the forecast then it is called inventory waste.
→ Inventory has is a physical cost while the overproduction is assumed waste based on the forecast.
[3] Motion:
→ It is the unnecessary movement of people, machines, or items that do not add value in the final product and it decreases productivity.
→ Motion waste is usually caused by not following the 5S Methodology.
→ Some examples are employees looking for materials or equipment, poorly designed workspaces, SOP not defined for the process of operation, etc.
[4] Waiting:
→ Waiting is any type of delays in information flow or material flow which leads to decrease efficiency and increases the manufacturing or operation cost.
→ Some examples of delay are machine failure, the truck is not available for delivery, the semi-finish part is not available for assembly, the child part is not available, inspection pending, etc.
[5] Over Production:
→ If we produce products in bulk based on the forecast so we have to maintain more inventory and for the storage of finished goods we have to pay for space.
→ However, forecasts are commonly imperfect or it changes based on the market condition which leads to too much inventory and which is not good for the organization.
[6] Over Processing:
→ Over Processing refers to additional work in a process that isn’t required.
→ It costs us in the form of the time of our employees, materials used and wear & tear of equipment,
→ It also makes your production less efficient.
[7] Defects:
→ Defects are the most dangerous things for the organization.
→ It is the most visible type of waste and it is also referred to as not meeting customer's specification so it is scrap.
→ We have to bear the cost of the defects and scraps and it impacts our profitability.
→ In some cases, the organization has to bear rework or repair costs in case of defect.
[8] Skills sets (non-utilized talent):
→ If we are not using our employees to their full potential, talents or skills then it is a loss for us.
→ We can have a big effect on our organization's bottom line.
→ Examples of skill-set waste are Poor teamwork, minimal training, bad communication, and unnecessary administrative tasks.
Key Points:
→ Teamwork: Team Formation, people are used to doing the work
→ Observe: Analyses the current situation
→ Ideas: The team develops ideas by brainstorming - Ideas related to eliminate the waste.
→ Communication: By any mode of communication, the team is informed about the goals, any changes, the progress of the project, etc.
→ Culture: Create a continuous improvement culture surround the workplace.
Lean Manufacturing Principles
→ Five Fundamental Principles are mentioned below:
1. Identify Value
2. Map Value Stream
3. Create Flow
4. Establish Pull
5. Seek Performance
[1] Identify Value:
→ The manufacturer is the only person who creates value in product or service but it is defined by the customer.
→ In other words, the organization needs to understand the value that is defined by the customer in their products and services and they are willing to pay.
→ As a manufacturer or service provider, we have to focus on eliminating waste and optimize the cost of our product or service so that we can easily meet the customer's required price and we can have a business.
[2] Map Value Stream (VSM Study):
→ Value Stream Mapping is related to analyze and improve the flow of information in the case of the service provider and it refers to the flow of material in case of a manufacturer of a product.
→ In this method, we have to identify the wastes related to material or information flow and eliminate it from the system.
→ The VSM Study includes the product's entire lifecycle, from raw materials to disposal of the final product.
→ As an organization, we have to analyze each stage of the process and identify all non-value added activities and eliminate them from the system.
[3] Create Flow:
→ By eliminating wastes and non-value added activity we can improve our lead time for our material or information flow so we can get smooth process flow.
→ Lean Production depends on preventing interruptions in the production process.
[4] Establish Pull:
→ Establish pull means if we have a new order in the pipeline then and then we have to produce the products. This is a pull system instead of a push system.
→ With a push system, we manufacture the products based on the forecast and we have to maintain more inventory and we have to bear more cost for that.
→ However, forecasts are commonly imperfect, which leads to too much inventory and which is not good for the organization.
[5] Seek Perfection:
→ By following the above practices we can get the improved performance of our organization.
→ It also helps us to eliminate wastes from our value stream.
Benefits of Lean Manufacturing:
→ Improve Quality and Visual Management
→ Increase efficiency and easy to manage any process
→ Manpower and space Optimization
→ Continuous improvement
→ Problem Elimination and on-time delivery
→ Safer Work Environment
→ Improved employee morale
→ Empowerment of employees
Lean Manufacturing Examples:
→ Some of the very common examples of lean manufacturing are cut the waste in all processes, identify the optimum solution for the transportation of products or any information, follow the efficient process, try to do the first time through, eliminate 8 wastes from the system and process.
Lean Manufacturing Tools
Very commonly used tools are listed below..
⇢ 5S Methodology
⇢ Kaizen (Continuous Improvement)
⇢ Jidoka
⇢ Single piece flow (One Piece Flow)
⇢ Poka-yoke (error-proofing)
⇢ Pull System/Kanban (Just In Time - JIT)
⇢ Heijunka (leveling or balancing)
⇢ Takt Time
⇢ Andon
⇢ Hoshin Kanri
⇢ Overall Equipment Effectiveness (OEE)
⇢ Cellular Manufacturing
⇢ Total Productive Maintenance (TPM)
⇢ Total Quality Management (TQM)
⇢ SMART Goals
⇢ Key Process Indicators (KPIs)
⇢ Single-Minute Exchange of Die (SMED)
⇢ 5 Whys | Why Why Analysis
⇢ Quality At Source
⇢ Process Standardization
⇢ Six Big Losses Analysis
⇢ Bottleneck Analysis
⇢ Gemba
⇢ VSM Study
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