lean manufacturing techniques (1)

LEAN MANUFACTURING TECHNIQUES

Let’s Talk About Principles, Not About Tools…

Introduction to Lean Manufacturing

Kai = Change

Zen = Good

Change of betterment

Kaizen

Continuous Improvement Continual Improvement

Paradigm :The way you look at things

Shift = Change

Paradigm Shift

Gemba

Gemba – Real Place of work

Restaurant – Kitchen is real place of workManufacturing Company – Shop floor is real

place of workShopkeeper – Shop where exchange of

goods with customer.

Manufacturing

WhereverRaw material is converted

to finished products.

Process of ConversionRaw Material Finished Goods

Request for raw materialPotatoes are transported to gateGate supervisionTransport to quality divisionPotatoes are separated in batches for

supervisionSupervision for qualityTransport to storage areaPotatoes are stored in batchesTransport from Storage to Washing areaPotatoes are washed in batches thoroughly Remove from washing areaTransport to Pealing machine

Potatoes are pealed offTransport to slicing areaSettings are done for slicingPotatoes are slicedTransport to frying areaPotato slices are friedTransport to flavoring areaFlavors are added in proper amountTransport to packaging areaWafers are packed under maintained

conditionsTransport to distribution areasWafers packets are taken out of factory for

distributionFinal distribution

Traditional Cost Vs

Lean approach for Cost

Selling Price for Traditional Business

Cost of raw material +

cost of manufacturing +

Profit =

Selling Price

Selling Price for LEAN Way of Business

Profit =

Selling Price-

Cost of raw material -

cost of manufacturing

Did they add Value or Cost

Value: Wherever Physical or Chemical Property of Product is Changed for which customer is willing to pay

Process of ConversionRaw Material Finished Goods

Request for raw materialPotatoes are transported to gateGate supervisionTransport to quality divisionPotatoes are separated in batches for

supervisionSupervision for qualityTransport to storage areaPotatoes are stored in batchesTransport from Storage to Washing areaPotatoes are washed in batches thoroughly Remove from washing areaTransport to Pealing machine

CC

CC

CCCC

CCC

C

Potatoes are pealed offTransport to slicing areaSettings are done for slicingPotatoes are slicedTransport to frying areaPotato slices are friedTransport to flavoring areaFlavors are added in proper amountTransport to packaging areaWafers are packed under maintained

conditionsTransport to distribution areasWafers packets are taken out of factory for

distributionFinal distribution

VCC

V CV

CVC

VC

CC

Value Adding Ratio [VAR]

Value Adding TimeTotal Throughput Time

Where, throughput time is time taken for whole process

to get completed for single set/unit of product

VAR for different type of Organizations

Type of Organization

VAR (In %)

Traditional Organizations

0.1-1

Companies who have started Lean

(from 1-2 yrs)

5

World class companies

10

Very high level (e.g. Toyota Motors)

30

Japanese Terms

MudaMuraMuri

Any Questions??

Purpose of Kaizen

To identify, reduce and totally eliminate the

3M

Tools 5S (Workplace Management)VSM (Value Stream Mapping) JIT (Just-In-Time)SMED (Single Minute Exchange of Dies)KanbanCellular ManufacturingTPM (total Productive Maintenance.Six SigmaPoka yokeVisual Management (tool for creating

standards)

Any Questions??

Thank You