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    LEAN MANUFACTURING 2012

    Dept. Of Mechanical Engg- S.I.T, TUMKUR Page 1

    ABSTRACT

    In this world of competition without proper production management a company

    cannot survive. Using a manufacturing concept for competitive advantage is relatively a new

    concept.

    Lean manufacturing is a concept actually brought up by Toyota motor company,

    Japan. But it was popularized to the world by the book THE MACHINE THAT CHANGED

    THE WORLD by Womack, Jones and Roos of MIT in 1990.

    Adding value by eliminating waste, being responsive to changes, focusing on quality

    and enhancing effectiveness of workforce is what achieved by lean manufacturing. It needs a

    systematic and continuing search for non value added activities.

    This seminar provides an overview of basic elements, techniques and benefits of lean

    manufacturing.

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    CONTENTS

    CHAPTERS PAGE NUMBER

    1. A brief history of lean manufacturing 01

    2. What is lean manufacturing? 02

    3. Wastes in production 03

    3.1 Over production 03

    3.2 Waiting 03

    3.3Inventory or Work in Process (WIP) 04

    3.4Processing waste 04

    3.5 Transportation 05

    3.6 Motion 05

    3.7 Making defective products 06

    3.8 Underutilizing people 06

    4. Elements of lean manufacturing 07

    4.1 Elimination of wastes 07

    4.2 Continuous improvement 08

    4.3 Pull system 09

    4.4 One-piece flow 10

    4.5 Cellular manufacturing 11

    4.6 5 Ss 12

    5. Key to Lean success 13

    6. Comparison between traditional and lean manufacturing 15

    7. Benefits of lean manufacturing 188. Case study 20

    9. Conclusion 21

    References 22

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    CHAPTER1

    A BRIEF HISTORY OF LEAN MANUFACTURING

    In 1900s U.S. manufacturers like Henry ford brought the concept of mass production.

    U.S. manufacturers have always searched for efficiency strategies that help reduce costs,

    improve output, establish competitive position, and increase market share. Early process

    oriented mass production manufacturing methods common before World War II shifted

    afterwards to the results-oriented, output-focused, production systems that control most of

    today's manufacturing businesses.

    Japanese manufacturers re-building after the Second World War were facing

    declining human, material, and financial resources. The problems they faced in

    manufacturing were vastly different from their Western counterparts. These circumstances

    led to the development of new, lower cost, manufacturing practices. Early Japanese leaders

    such as the Toyota Motor Company's Eiji Toyoda, Taiichi Ohno, and Shingeo Shingo

    developed a disciplined, process-focused production system now known as the "lean

    production." The objective of this system was to minimize the consumption of resources that

    added no value to a product.

    The "lean manufacturing" concept was popularized in American factories in large part

    by the Massachusetts Institute of Technology study of the movement from mass production

    toward production as described in The Machine That Changed the World, (Womack, Jones &

    Roos, 1990), which discussed the significant performance gap between Western and Japanese

    automotive industries. This book described the important elements accounting for superior

    performance as lean production. The term "lean" was used because Japanese business

    methods used less human effort, capital investment, floor space, materials, and time in all

    aspects of operations. The resulting competition among U.S. and Japanese automakers over

    the last 25 years has lead to the adoption of these principles within all U.S. manufacturing

    businesses. Now it has got global acceptance and is adopted by industries world over to keep

    up with the fast moving and competing industrial field.

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    CHAPTER-2

    WHAT IS LEAN MANUFACTURING?

    Lean manufacturing is a manufacturing system and philosophy that was originally developed

    by Toyota, Japan and is now used by many manufacturers throughout the world.

    Lean Manufacturing can be defined as:

    "A systematic approach to identifying and eliminating waste (non-value-added

    activities) through continuous improvement by flowing the product at the pull of the

    customer in pursuit of perfection."

    The term lean manufacturing is a more generic term and refers to the general

    principles and further developments of becoming lean.

    The term lean is very apt because in lean manufacturing the emphasis is on cutting out

    FAT or wastes in manufacturing process. Waste is defined as anything that does not add

    any value to the product. It could be defined as anything the customer is not willing to pay

    for.

    Manufacturing philosophy is pivoted on designing a manufacturing system that

    perfectly blends together the fundamentals of minimizing costs and maximizing profit. These

    fundamentals are Man (labour), Materials and Machines (equipments) called the 3 Ms of

    manufacturing. A well-balanced 3M is resulted through lean manufacturing.

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    CHAPTER-3

    WASTES IN MANUFACTURING

    The aim of Lean Manufacturing is the elimination of waste in every area ofproduction including customer relations, product design, supplier networks, and factory

    management. Its goal is to incorporate less human effort, less inventory, less time to develop

    products, and less space to become highly responsive to customer demand while producing

    top quality products in the most efficient and economical manner possible.

    Essentially, a "waste" is anything that the customer is not willing to pay for.

    Typically the types of waste considered in a lean manufacturing system include:

    3.1 Overproduction

    To produce more than demanded or produce it before it is needed. It is visible as

    storage of material. It is the result of producing to speculative demand. Overproduction

    means making more than is required by the next process, making earlier than is required by

    the next process, or making faster than is required by the next process.

    Causes for overproduction waste include:

    Just-in-case logic

    Misuse of automation

    Long process setup

    Unleveled scheduling

    Unbalanced work load

    Over engineered

    Redundant inspections

    3.2 Waiting

    For a machine to process should be eliminated. The principle is to maximize the

    utilization/efficiency of the worker instead of maximizing the utilization of the machines.

    Causes of waiting waste include:

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    Unbalanced work load

    Unplanned maintenance

    Long process set-up times

    Misuses of automation

    Upstream quality problems

    Unleveled scheduling

    3.3 Inventory or Work in Process (WIP)

    This is material between operations due to large lot production or processes with long

    cycle times.

    Causes of excess inventory include:

    Protecting the company from inefficiencies and unexpected problems

    Product complexity

    Unleveled scheduling

    Poor market forecast

    Unbalanced workload

    Unreliable shipments by suppliers

    Misunderstood communications

    Reward systems

    3.4 Processing waste

    It should be minimized by asking why a specific processing step is needed and why a

    specific product is produced. All unnecessary processing steps should be eliminated.

    Causes for processing waste include:

    Product changes without process changes

    Just-in-case logic

    True customer requirements undefined

    Over processing to accommodate downtime

    Lack of communications

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    Redundant approvals

    Extra copies/excessive information

    3.5 Transportation

    This does not add any value to the product. Instead of improving the transportation, it

    should be minimized or eliminated (e.g. forming cells).

    Causes of transportation waste include:

    Poor plant layout

    Poor understanding of the process flow for production

    Large batch sizes, long lead times, and large storage areas

    3.6 Motion

    Motion of the workers, machines, and transport (e.g. due to the inappropriate location

    of tools and parts) is waste. Instead of automating wasted motion, the operation itself should

    be improved.

    Causes of motion waste include:

    Poor people/machine effectiveness

    Inconsistent work methods

    Unfavorable facility or cell layout

    Poor workplace organization and housekeeping

    Extra "busy" movements while waiting

    3.7 Making defective products

    This is pure waste. Prevent the occurrence of defects instead of finding and repairing

    defects.

    Causes of processing waste include:

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    Weak process control

    Poor quality

    Unbalanced inventory level

    Deficient planned maintenance

    Inadequate education/training/work instructions

    Product design

    Customer needs not understood

    3.8 Underutilizing people

    Not taking advantage of people's abilities.

    Causes of people waste include:

    Old guard thinking, politics, the business culture

    Poor hiring practices

    Low or no investment in training

    Low pay, high turnover strategy

    Nearly every waste in the production process can fit into at least one of these

    categories. Those that understand the concept deeply view waste as the singular enemy

    that greatly limits business performance and threatens prosperity unless it is relentlessly

    eliminated over time. Lean manufacturing is an approach that eliminates waste by

    reducing costs in the overall production process, in operations within that process, and in

    the utilization of production labor. The focus is on making the entire process flow, not the

    improvement of one or more individual operations.

    CHAPTER-4

    ELEMENTS OF LEAN MANUFACTURING

    Those concepts that lead to the implementation of lean manufacturing successfully are

    called elements of lean manufacturing. The basic elements of lean manufacturing are waste

    elimination, continuous improvement, pull system, one-piece workflow, cellular

    manufacturing and 5Ss. When these elements are focused in the areas of cost, quality and

    delivery, this forms the basis for a lean production system.

    4.1 Elimination of waste

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    Waste is anything that doesnt add value to the product. Seeing whether the process is

    adding value to the product or not is the best way to identify wastes.

    Is the activity adding value?IfYES IfNO

    Is this the best way to do it? Can it be eliminated?If not, can it be reduced?

    Out of the complete processes in an industry only about 5 % actually add value to the

    product. Rest of the process does not add any value. Rest 35% activities are such that even

    though this doesnt add any value but still it cannot be eliminated as it is necessary. For eg.

    Inventory cannot be completely reduced, scrap materials cannot be made zero, it may take

    few minutes to load unload and load for next operation etc. So focus should be on complete

    elimination of waste activities and reducing the necessary non-value adding activities

    4.2 continuous improvement

    Japanese looked at improving their work every time they do it. This lead to the

    development of concept called continuous improvement. Japanese rather than maintaining the

    improvement they have achieved they concentrated in continuously improving their work.This improvement can be in any field like quality, error proofing, lead-time reduction etc. So

    the focus should be on how you can improve your work than the same done last time.

    Improvement is classified into innovations and kaizen. Innovations are those

    improvements which cause drastic changes. These occur due to huge technological

    advancements in the field of research and development. These are mostly done by high level

    engineers. Kaizen include small small improvements done by lower order employees.

    According to the level of employees the type of improvements each should focus areas shown below:

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    In order to achieve continuous improvement the work culture of the workers should

    be modified. The workers should be aimed at improving their work each time they do it.

    4.3 Pull systemManufacturing system can be divided into two

    1) Push systemHere the products are made according to the market forecast andnot according to the current demand. So here the information flow is in the same direction asthe product flow. So there may chance of piling of finished goods as there are alwaysfluctuation in demand. Thus the product is pushed through the production line.

    ProcessB

    ProcessA

    Fin.

    RawSupplier Customer

    PartFlow

    ProcessC

    Information Flow

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    2)Pull system- Here the product is made according to the customer demand. So theinformation of the quantity and type of product flow in the opposite direction to that of theproduct. Here no piling of finished products occurs as the production is according to thecustomer demand. Hence the customer pulls the product through the production line.

    4.4 One-piece flow

    One piece flow is one of the important techniques in implementing lean

    manufacturing. Traditional batch production in mass production is replaced by one piece flow

    in lean manufacturing. Here batch size is reduced to almost one. This reduces the total lead

    time and also reduces waiting between operations or queuing.

    Following figures show how effective is one piece flow over batch production.

    ProcessB

    ProcessA

    Fin.Raw

    SupplierCustomer

    PartFlow

    ProcessC

    Information Flow

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    From the above example it is clear that the lead time can be reduced to almost 40% of

    the lead time when it was batch production. Also it can be noted that it takes about 85% less

    time for the first part to be produced. Thus product can be produced according to current

    demand quickly.

    4.5 Cellular manufacturing

    In traditional mass production machines are arranged according to its functions. But

    in cellular manufacturing machines are arranged according to the processes involved in

    production. The plants layout is designed in such a way that transportation between

    machineries is reduced to minimum. For the implementation of such a good plant layout deep

    knowledge of processes as well as proper analysis of processes involved in production is

    necessary.

    10 minutes

    10 minutes

    Batch & Queue

    Lead Time: 30+ minutes for total order21+ minutes for first piece

    10 minutes

    Proces A

    Proces B

    Proces C

    12 min. for total order3 min. for first part

    Proces BProces A Proces C

    One piece

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    Following figures shows the diagrammatic representation of both forms of floor

    arrangement.

    FUNCTIONAL CELLS

    CELL ADVANTAGES OVER FUNCTIONAL DEPARTMENT

    1. Shorter Lead Time

    2. Improved Quality - Quicker problem identification

    3. Improved Quality - Less potential rework or scrap

    4. Less Material Handling

    5. Improved Coordination

    6. Reduced Inventory

    7. Departmental conflicts eliminated

    8. Simplified Scheduling

    9. Less Space Required

    4.6 The 5 Ss

    It is the Japanese method of keeping the work place clean and tidy. This helps in

    reducing many unnecessary movements. The 5Ss are:

    Sort (Seiri) - Perform Sort Through and Sort Out, by placing a red tag on all unneeded

    items and moving them to a temporary holding area. Within a predetermined time the red tag

    items are disposed, sold, moved or given away.

    Set in Order (Seiton) - Identify the best location for remaining items, relocate out of place

    items, set inventory limits, and install temporary location indicators.

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    Shine (Seiso) -Clean everything, inside and out.

    Standardize (Seiketsu) -Create the rules for maintaining and controlling the first 3Ss and

    use visual controls.

    Sustain (Shitsuke) - Ensure adherence to the 5S standards through communication, training,

    and self-discipline.

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    CHAPTER-5

    KEYS TO LEAN SUCCESS

    Following are some considerations to successful lean implementation:

    5.1 Prepare and motivate people

    Widespread orientation to Continuous Improvement, quality, training and recruiting

    workers with appropriate skills

    Create common understanding of need to change to lean

    5.2 Employee involvement

    Push decision making and system development down to the "lowest levels"

    Trained and truly empowered people

    5.3 Share information and manage expectations

    5.4 Identify and empower champions, particularly operationsmanagers

    Remove roadblocks (i.e. people, layout, systems)

    Make it both directive yet empowering

    5.5 Atmosphere of experimentation

    Tolerating mistakes, patience, etc.

    Willingness to take risks

    5.6 Installing "enlightened" and realistic performance measures,

    evaluation, and reward systems

    Do away with rigid performance goals during implementation

    Measure results and not number activities/events

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    Tie improvements, long term, to key macro level performance targets (i.e. inventory

    turns, quality, delivery, overall cost reductions)

    After early wins in operations, extend across ENTIRE organization.

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    CHAPTER-6

    COMPARISON BETWEEN TRADITIONAL AND LEAN

    MANUFACTURING

    For years manufacturers have created products in anticipation of having a market for them.

    Operations have traditionally been driven by sales forecasts and firms tended to stockpile inventories

    in case they were needed. A key difference in Lean Manufacturing is that it is based on the concept

    that production can and should be driven by real customer demand. Instead of producing what you

    hope to sell, Lean Manufacturing can produce what your customer wants with shorter lead times.Instead of pushing product to market, it's pulled there through a system that's set up to quickly

    respond to customer demand.

    Lean organizations are capable of producing high-quality products economically in lower

    volumes and bringing them to market faster than mass producers. A lean organization can make

    twice as much product with twice the quality and half the time and space, at half the cost, with a

    fraction of the normal work-in-process inventory. Lean management is about operating the most

    efficient and effective organization possible, with the least cost and zero waste.

    6.1 OVERALL ORGANIZATIONAL CHARACTERISTICS:

    TRADITIONAL MASS PRODUCTION LEAN PRODUCTION

    Business Strategy Product-out strategy focused onexploiting economies of scale of stableproduct designs and non-uniquetechnologies

    Customer focused strategy focused onidentifying and exploiting shiftingcompetitive advantage.

    CustomerSatisfaction

    Makes what engineers want in largequantities at statistically acceptablequality levels; dispose of unusedinventory at sale prices

    Makes what customers want with zerodefect, when they want it, and only inthe quantities they order

    Leadership Leadership by executive command Leadership by vision and broadparticipation

    Organization Hierarchical structures that encouragefollowing orders and discourage theflow of vital information that highlightsdefects, operator errors, equipmentabnormalities, and organizationaldeficiencies.

    Flat structures that encourage initiativeand encourage the flow of vitalinformation that highlights defects,operator errors, equipmentabnormalities, and organizationaldeficiencies.

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    6.2 MANUFACTURING METHODS:

    TRADITIONAL MASSPRODUCTION

    LEAN PRODUCTON

    Production schedules arebased on

    Forecast product is pushedthrough the facility

    Customer Order product is pulledthrough the facility

    Products manufacturedto Replenish finished goodsinventory Fill customer orders (immediateshipments)

    Production cycle timesare

    Weeks/months Hours/days

    Manufacturing lot sizequantities are

    Large, with large batchesmoving between operations;product is sent ahead of eachoperation

    Small, and based on one-piece flowbetween operations

    Plant and equipmentlayout is

    By department function By product flow, using cells or lines forproduct families

    Quality is assured Through lot sampling 100% at the production source

    External Relations Based on price Based on long-term relationships

    Information Management Information-weakmanagement based onabstract reports

    Information-rich management based onvisual control systems maintained by allemployees

    Cultural Culture of loyalty andobedience, subculture ofalienation and labor strife

    Harmonious culture of involvement basedon long-term development of humanresources

    Production Large-scale machines,functional layout, minimalskills, long production runs,massive inventories

    Human-scale machines, cell-type layout,multi-skilling, one-piece flow, zeroinventories

    Operational capability Dumb tools that assume anextreme division of labor,the following of orders, andno problem solving skills

    Smart tools that assume standardizedwork, strength in problem identification,hypothesis generation, andexperimentation

    Maintenance Maintenance bymaintenance specialists

    Equipment management by production,maintenance and engineering

    Engineering "Isolated genius" model,with little input fromcustomers and little respectfor production realities.

    Team-based model, with high input fromcustomers and concurrent development ofproduct and production process design

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    Workers are typicallyassigned

    One person per machine With one person handling severalmachines

    Worker empowermentis

    Low little input into howoperation is performed

    High has responsibility for identifyingand implementing improvements

    Inventory levels are High large warehouse offinished goods, and centralstoreroom for in-processstaging

    Low small amounts betweenoperations, ship often

    Inventory turns are Low 6-9 turns pr year orless

    High 20+ turns per year

    Flexibility in changingmanufacturing schedulesis

    Low difficult to handle andadjust to

    High easy to adjust to and implement

    Manufacturing costs are Rising and difficult to control Stable/decreasing and under control

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    CHAPTER-7

    BENEFITS OF LEAN MANUFACTURING

    According to the study conducted in various industries world over the main benefits

    achieved by implementation of lean manufacturing is as shown below.

    (From ERC staff meeting, march 20,2002,Maryland University)

    Establishment and mastering of a lean production system would allow you to achieve

    the following benefits:

    Lead time is reduced by 90%

    Productivity is increased by 50%

    Work in process is reduced by 80%

    Quality is improved by 80%

    Space utilization is increased by 75%

    These are areas in an establishment that directly affects its survival. There are many

    other benefits also which directly or indirectly affects the performance of the industry.

    OTHER BENEFITS

    Lead Time Reduction

    Productivity Increase

    WIP Reduction

    Quality Improvement

    Space Utilization

    0 25 50 75 100

    Percentage of Benefits

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    Reduced scrap and waste

    Reduced inventory costs

    Cross-trained employees

    Reduced cycle time

    Reduced obsolescence

    Lower space/facility requirements

    High quality & reliability

    Lower overall costs

    Self-directed work teams

    Lead time reduction

    Fast market response

    Longer machine life

    Improved customer communication

    Lower inventories

    Improved vendor support and quality

    Higher labor efficiency and quality

    Improved flexibility in reacting to changes

    Allows more strategic management focus Increased shipping and billing frequencies

    However, by continually focusing on waste reduction, there are truly no ends to the

    benefits that can be achieved.

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    CHAPTER-8

    CASE STUDY

    SIX SIGMA AT MOTOROLA

    In 1986, Motorola invented Six Sigma, a quality and business improvement methodology

    that is revolutionizing industry.Two decades and two Malcolm Baldridge Quality Awards

    later, Motorola is still finding new ways to reinvent itself using this techniques.

    -Dan Tegel,Global Director, Digital Six Sigma Business Improvement, Motorola.

    INTRODUCTION

    In 2002, the US based Motorola Inc. achieved the unique distinction of receiving theMalcolm Baldrige National Quality Award for the second time.Motorola became the onlycompany in the world to have received this award twice, having won it earlier in 1988.ForMotorola, quality improvement leading to total customer satisfaction is the key.In 1981, thecompany launched an ambitious and innovative quality drive for a ten-fold improvement inthe quality of its products and services, after the company lost business to its Japanesecompetitors.Motorolas Six Sigma quality target aimed at achieving not more than 3.4 defectsper million producyts.Between 1986 and 1988 alone, Motorola rweceived 50 qualityawards.Motorola Senior Corporate, Vice President and Quality Director,said Six Sigma isnot a product you can buy. Its a commitment.

    THE SIX SIGMA INITIATIVE AT MOTOROLA

    The term Six Sigma comes from the field ofStatistics.Six Sigma is a measurement standardin product variation.Looking at the initiation of Six Sigma ; the US economy wasexperiencing a downtrend in the 1980s.As a technology-based company, Motorola facedseveral problems.Most worrying of all, the company started receiving an increasing numberof complaints about warranty claims for defective products.Motorola was strongly criticizedby the US media when it sold its TV division, Quasar,to Matsushita, a Japanese consumerelectronic company.Under Japanese management, the factory began to produce TV sets with1\20thnumber of defects that were made under Motorolas management.

    Later, when Motorola executives toured the Quasar factory, they were surprised to observethese changes.They focused on preventing errors at the source, there by dramatically reducing

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    the defects and costs for rectifying them.This correlation between cost and quality-that thebest quality resulted in lowest cost, surprised Motorola executives.Eventually, Motorolarealized that its quality standards were very poor compared to its Japanese peers.

    Smith and Dr. Mikel Harry, a senior staff engineering at Motorolas Government Electronics

    Group(GEG),developed a four-stage problem-solving-approach-Measure,Analyse,Improveand control (MAIC).Later, the MAIC discipline became the road map for achieving SixSigma quality standards.

    FOUR STAGE PROBLEM SOLVING APPROACH-MAIC

    MEASURE PHASE : Measure the existing systems.

    ANALYZE PHASE : Analyze the system to identify ways to eliminate the gapbetween the current performance and the desired goal.

    IMPROVE PHASE : In this phase, project teams seek the optimal solution anddevelop and test a plan of action for implementing and conforming the solution.

    CONTROL PHASE : Control the new systems.

    THE IMPLEMENTATION

    On January 15,1987,Galvin launched a long-term quality program, called The Six SigmaQuality Program, with the goal of achieving not more 3.4 defective parts per million.He

    said, There is only one ultimate goal: zero defects in everything we do.

    Motorola followed a six step program to achieve Six Sigma standards :

    1. Identify the product you create or the service that you provide.[What do you do?]2. Identify the customers(s) for your product or services, and determine what they

    consider important.[Who uses your product and services and why?]3. Identify your needs (to provide a product/service that satisfies the customer).[What do

    you need to do in your work?]4. Define the process for doing the work.[How do you do your work?]5. Mistake-proof the process and eliminate wasted effort.[How can you do your work

    better?]6. Ensure continuous improvement by measuring, analyzing and controlling the

    improved process.[How perfectly are you doing your customer-focused work?]

    Other measures for implementing Six Sigma are :1. All departments of Motorola were taught benchmarking techniques to analyze

    competitors products and assess their manufacturing process, reliability, manufacturing

    cost and performance.Then, the employees were asked to exceed the competitors

    standards.

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    2. Motorola managers carried with them printed cards bearing the corporate objectivetotal customer satisfaction3. Corporate executives and business managers carried pagers to make themselvesavailable to customers all the time.4. They regularly visited customers to find out their likes and dislikes regarding

    Motorolas products and services.5. Based on feedback, along with the information collected through extensive customerssurveys, complaint hotlines and field appraisals, new action plans designed forimprovement.

    However, by 1992, Motorola aimed to achieve the overall quality level of 5.4 defects

    per million, a little less than Six Sigma.

    EMPLOYEES TRAINING IN SIX SIGMA TOOLS

    Training the employees in statistical tools of quality control was the most important partof Six Sigma implementation at Motorola. Six Sigma training program was designatedwith Karate-related titles :

    a) GREEN BELTS:

    This was the basic level training program.

    performing These candidates were employees at all levels who served as high-team members.

    Their role was to assist the black belts in more effective and quick completion ofthe projects.

    Green belt training took only six days.

    b) BLACK BELTS : The black belt holders were technically oriented employees, responsible for

    defining the organizational goals and looking after change management.

    They were expected to master a wide variety of technical tools in a relativelyshort period of time.

    c) MASTER BLACK BELT :

    This was the highest level of technical proficiency.

    The master provided technical leadership of the Six Sigma program.

    These were individuals who had a few years of experience as black belt.

    They received additional training in advanced statistical tools, business skills andteam\leadership skills.

    d) CHAMPIONS :

    Champions were high-level individuals like Vice Presidents who had a high levelof accountability and responsibility for the implementation of Six Sigma projects.

    e) LEADERSHIP :

    The leadership program was intended for the top-most personnel like the CEO.

    The training program was conducted for two days.

    THE BENEFITS

    After implementing Six Sigma, Motorola reaped the following benefits between 1987 and1994 :

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    Reduced in- process defect levels by a factor of 200.

    Reduced manufacturing costs by $ 1.4 bn.

    Increased employee production on a dollar basis by 126%.

    Four-fold increase in stockholders share value.

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    CHAPTER-9

    CONCLUSION

    LEAN can be said as adding value by eliminating waste being responsive to

    change, focusing on quality and enhancing the effectiveness of the work force. Although lean has its origin in the automobile industry it is being successfully used in

    other production industries. Lean manufacturing is now extended to fields like I.T, service etc

    in order to reduce production cost and meet changing customer needs.

    Since lean is completely customer oriented it is here to stay. It is also important as it

    emphasis customer satisfaction.

    Lean has made its way into curriculum of major universities around the world. In

    universities like MIT, Maryland university etc Lean manufacturing is included into the

    syllabus and it is given importance to new entrepreneurs. Many consulting firms are also

    functioning for proper guidance to those who are interested in lean.

    Lean manufacturing cannot be attained in one day or one week or one month or in a

    year. It needs lot of commitment and hard work. Also there is no end in lean manufacturing.

    The more you eliminate waste the more you become lean. That is why it is said that:

    lean is a journey

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    REFERENCES

    1. Besterfield, Dale H.: Total quality management,

    (Pearson education)

    2. www.advancedmanufacturing.com

    3. www.1000ventures.com

    4. www.mamtc.com

    http://www.1000ventures.com/http://www.mamtc.com/http://www.mamtc.com/http://www.1000ventures.com/