presentation- 19 mar 2013
TRANSCRIPT
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Sanjib Biswas
March 19, 2013.
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Lean is about tools that create goods and
services that offer precise customer value,
but with less
Dr James P Womack
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With the opening of world market, the Indian manufacturers can not
afford the luxury of producing products not compatible with that of theforeign products. The presence of globally competitive firms and the
continuous innovations in the market has given a new impetus to the
competition and the quality standards. The Indian manufacturing
industries operating in the states not having good infrastructure, are
suffering on account of high cost of production which is largely attributedto high inventory level, high cycle time and enormous wastage. It is high
time that the manufacturers should try some innovative and new
manufacturing strategies/techniques.
Lean manufacturing can be the answer for those problems. Thispresentation covers the basics of Lean concepts, its applications in Indian
industries, opportunities & challenges.
Objective
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Lesstime,
inventory,
space,
people and
money
Value addition
Doing more with lessEliminating waste
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Lean is about
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Definition of Lean
Half the hours of human effort in the factory
Half the defects in the finished product
One-third the hours of engineering effort
Half the factory space for the same output
A tenth or less of in-process inventories
Source: The Machine that Changed the World
Womack, Jones, Roos 1990
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Lean Management
is a management philosophy which shortens the time line between thecustomer order and the product shipment by eliminating waste.
Customer
Order Waste
Product
Shipment
Time
Customer
OrderProduct
Shipment
Time (Shorter)
Business as Usual
Waste
Lean Management
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Lean History
In 1945, Toyoda challenged Taiichi Ohno to learn how tocompete with US Automakers not on building large volumesof similar models, but many models in low volume.
Ohno was given 3 years to develop a system to achieve thisgoal.
Ohno went to the US and studied Ford mass assemblyprocesses at the Rouge River Plant.
Ohno learned a lot from this experience, but felt Ford stoppedshort of a better system.
Ohno also studied the supermarket concept of ordering andreplenishing stock by a signal system. This resulted in Ohnoapplying the KANBAN concept to the system he woulddevelop
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Cont. Lean History
It took Ohno over 20 years to develop the system that becameknown as The Toyota Production System (TPS)
It took until the 1974 Oil Crisis before outsiders and others in Japanreally took notice of the TPS system that Ohno built and the way it
was allowing Toyota to compete when others were faltering. Lean Manufacturing came to the US with James Womacks Book,
The Machine That Changed The World in 1990.
Focused on Toyota Production System Concepts and Why Toyotawas able to so successful over US Auto Manufacturers.
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What makes a system lean?the 3 Ms of
lean
mudawaste
mura- inconsistency
muri - unreasonableness
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Value- specify what creates value from the customersperspective.
Thevalue streamidentify all the steps along the processchain.
Flow- make the value process flow.
Pull- make only what is needed by the customer (short termresponse to the customers rate of demand).
Perfection- strive for perfection by continually attempting to
produce exactly what the customer wants.
Lean Principles
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Any process that the customer would be prepared to pay forthat adds value to the product.
The customer defines the value of product in a lean supply
chain.
Value-adding activities transform the product closer towhat the customer actually wants.
An activity that does not add value is considered to be
waste.
Value
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The value stream is the sequence of processes from rawmaterial to the customer that create value.
The value stream can include the complete supply chain.
Value stream mapping is an integral aspect of Lean.
The value stream
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Flow
Using one piece flow by linking of all the
activities and processes into the most
efficient combinations to maximize value-
added content while minimizing waste.
The waiting time of work in progressbetween processes is eliminated, hence
adding value more quickly.
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Pull = response to the customers rate of demand i.e. the
actual customer demand that drives the supply chain.
Based on a supply chain view from downstream to upstream
activities where nothing is produced by the upstream supplier
until the downstream customer signals a need.
Pull
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Perfection
The journey of continuous improvement.
Producing exactly what the customer wants, exactly when,
economically.
Perfection is an aspiration, anything and everything is able
to be improved.
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Based on two philosophies: 1. Elimination of waste
2. Respect for people
The origin of Lean
The Toyota Production System
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Definition Of Work Components
wastevalue creationWORK
Increases
costs and reduces
quality
Customers
only want to pay
for this
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Lean = Eliminating the Wastes
Value Added
Anything that adds Cost to the product without addingValue Waste
The Seven Wastes
Defects
Over-production
Waiting
Transportation
Inventory Motion
Over Processing
Under utilized human potential(the eighth waste identified)
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7 Forms of Waste
Types
of
Waste
CORRECTION
WAITING
PROCESSING
MOTION
INVENTORYCONVEYANCE
OVERPRODUCTION
Repair or
Rework Any wasted motion
to pick up parts or
stack parts. Also
wasted walking
Wasted effort to transport
materials, parts, or
finished goods into or
out of storage, or
between
processes.
Producingmore
than is needed
beforeit is needed
Maintaining excess
inventory of raw matls,
parts in process, or
finished goods.
Doing more work than
is necessary
Any non-work time
waiting for tools,
supplies, parts, etc..
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Waste Elimination
Value
AddWaste
Traditional Focus
Work Longer-Harder-Faster
Add People or Equipment
Lean Management
Improve the Value
Stream to Eliminate
Waste
LEAD TIME
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Tools of Lean Management
Waste reduction Full involvement, training, learning
Cellular mfg
Kaikaku (radical change)
Kaizen (continuous improvement) & standard work
5S
Jidoka (autonomation)
Poka-yoke
Shojinka (dynamic optimization of workers)
Teien systems (worker suggestions)
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Tools (cont.)
Continuous Flow
SMED
Andon
Takt time
Line balancing
Nagara (smooth production flow)
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Tools (cont.)
Customer pull
Just-in-time
Kanban
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Visual Factory
Total Productive Maintenance
Other Tools
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Lean Management in India
The lean management revolution in India is still in its nascent stage. Although the
Companies like TVS Motor, Tata Motors , Hero Honda, HAL, WIPRO, Mahindra &
Mahindra, Fiserv India Pvt Ltd. Exide Industries Ltd etc. stand out as shining examples
of the benefits of the adoption of the Lean Management route, but still this concept is
yet to be flourished in different Manufacturing as well as Service sectors.
In the year of 2009 the concept was limited to 10 per cent of the Indian manufacturing
sector.
The first Lean healthcare training course took place in Bangalore on 12th December
2011 and was attended by around 40 participants only.
Beyond healthcare, the demand for Lean management in the manufacturing andcommercial sectors in India is growing as more and more U.S. and European-based
companies look to India to outsource design and manufacturing work.
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Opportunities
50 - 80% Waste reduction
WIP
Inventory
Space Personnel
Product lead times
Travel Quality, costs, delivery
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Challenges
Lean is completely about CULTURE, or the Thinking Way. Thus it isabout change in Mind-set.
Lean is not a part of what we do, it is in everythingthat we do, it is our
way of thinking.
It is an embedded culture of understanding the customers needs,
continually striving to reduce waste and optimising the performance of
process, people and infrastructure.
At all levels there is a strong desire to be better.
A culture of Lean is visibly prioritised and practised from the top to the
bottom of the workforce.
The key is understanding the customer and delivering his
requirements.
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Challenges in India
The barriers in the Indian context of implementing the lean
manufacturing are the following:
- Lack of resources.
- Lack of expertise.
- Initial high cost which includes the cost of resources as well as
expertise.- Poor supply chain structure.
- Ineffective training and development of work force in the
company.
- Absence of continuous assessment of every individual in theorganization.
- Psychological factors such as fear of loosing the job on account
of its implementation.
- Natural calamities.
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Vision without action is merely a dream. Action without vision
just passes the time. Vision with action can change the world.
- Joel Barker
When the winds of change come, some people build
walls, others build windmills.
- Brian Mayne
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Thank you