Lean assignmenLean assignment t -1-1

Summary:Summary:

This document will give a good view of manufacturing via lean. Most manufacturingThis document will give a good view of manufacturing via lean. Most manufacturing

companies have already started approaching lean manufacturing system. The maincompanies have already started approaching lean manufacturing system. The main

objective of lean methodology is to reduce waste and aims at supplier integration forobjective of lean methodology is to reduce waste and aims at supplier integration for

the common the common achievable goal in manufacturing by reducing the non value achievable goal in manufacturing by reducing the non value added time. i.e,added time. i.e,

raising ratio of value added time to non value added time and waste. Here the case of araising ratio of value added time to non value added time and waste. Here the case of a

automotive manufactures is considered after some serious trouble in business. Theautomotive manufactures is considered after some serious trouble in business. The

manufacturer after losing few successive business and with some serious issues, look manufacturer after losing few successive business and with some serious issues, look 

forward for forward for lean implementationlean implementation..

The current state mapping analysis gives the current process flow and the level of The current state mapping analysis gives the current process flow and the level of 

inventory at various product families. And with this the future mapping is to be drawninventory at various product families. And with this the future mapping is to be drawn

for some serious implementation which will focus and resolve all the current state map.for some serious implementation which will focus and resolve all the current state map.

Introduction of the Organisation:Introduction of the Organisation:

M Automotive parts (MAP) is one leading manufacturing company, located at Midlands.M Automotive parts (MAP) is one leading manufacturing company, located at Midlands.

They are first tier supplier to automotive industries. With the current trend of massThey are first tier supplier to automotive industries. With the current trend of mass

production, they lost two major orders to overseas competitors, along with employeeproduction, they lost two major orders to overseas competitors, along with employee

redundant of 20%.redundant of 20%.

Lean Introduction:Lean Introduction:

Lean manufacturing is a variation on the theme of efficiency; it is a present-day instanceLean manufacturing is a variation on the theme of efficiency; it is a present-day instance

of the larger recurring theme in human life of increasing efficiency, decreasing waste,of the larger recurring theme in human life of increasing efficiency, decreasing waste,

and using empirical methodsand using empirical methods

Lean principles come from tLean principles come from the Japanese he Japanese manufacturmanufacturing industry.ing industry.

Lean is nothing but is set of tools that elimination of waste. As waste is eliminatedLean is nothing but is set of tools that elimination of waste. As waste is eliminated

quality improves while production time and cost are reduced.quality improves while production time and cost are reduced.

Examples:Examples:

Value Stream MappingValue Stream Mapping

Pull systemsPull systems

Poka-yokePoka-yoke

Toyota production system follows the lean operation principles. Whose goal is cost Toyota production system follows the lean operation principles. Whose goal is cost 

reduction by the elimination of waste these principle is nothing but pull processing,reduction by the elimination of waste these principle is nothing but pull processing,

Pull processing:Pull processing:

a)a) Perfect first-time quality,Perfect first-time quality,

b)b) Waste minimizationWaste minimization

c)c) Continues improvement Continues improvement 

d)d) FlexibilityFlexibility

e)e) Building and maintaining a long term relationship with suppliersBuilding and maintaining a long term relationship with suppliers

f)f) Automation load levelling and production flow and visual controlAutomation load levelling and production flow and visual control

Lean implementation is mainly focused on getting the right things, to the Lean implementation is mainly focused on getting the right things, to the right place, at right place, at 

the right time, in the right quantity and minimizing waste.the right time, in the right quantity and minimizing waste.

Seven Wastes of Lean:Seven Wastes of Lean:

As learned, lean is a tool eliminate waste in any form in chosen sector. Waste meanAs learned, lean is a tool eliminate waste in any form in chosen sector. Waste mean

performances that consume time, capital and space, but do not contribute to fulfillingperformances that consume time, capital and space, but do not contribute to fulfilling

customer needs. They are classified under the following categories.customer needs. They are classified under the following categories.

1.1. Over productionOver production : Considered as greater source of waste: Considered as greater source of waste

22.. WaWaiting timeiting time: : This is time This is time spend waiting by labour or equipment waiting to add value to thespend waiting by labour or equipment waiting to add value to the

productproduct..

33.. TTrraansportnsportaationtion: Unnecessary transportation of WIP is another waste: Unnecessary transportation of WIP is another waste ..

44.. PProcessrocess: Operations that do not add value, but are done just due to some poor work (i: Operations that do not add value, but are done just due to some poor work (i ..ee.. rere--

work)work)

55.. IInventorynventory: Inventory of all types: Inventory of all types..

66.. MMotionotion: Unnecessary movement of man and material: Unnecessary movement of man and material..

77.. DDefective goodsefective goods: Total cost of poor quality could be high, includes poor quality and scrap: Total cost of poor quality could be high, includes poor quality and scrap

material, waste of labour time, and time expecting ordersmaterial, waste of labour time, and time expecting orders

TTools andools and TTechniques of Lean:echniques of Lean:

Lean aim is to reduce the waste, mean if we do any work it is simple sufficient toLean aim is to reduce the waste, mean if we do any work it is simple sufficient to

recognize, to do and to manage. Lean is help to short methods to produce the product inrecognize, to do and to manage. Lean is help to short methods to produce the product in

right way and reduce waste and cost reduce more with less time, inventory, space,right way and reduce waste and cost reduce more with less time, inventory, space,

people, and money.people, and money.

The manufacturing process is depended on the lean techniques that are being used toThe manufacturing process is depended on the lean techniques that are being used to

improve the production process. Those techniques are based on the followingimprove the production process. Those techniques are based on the following

applications:applications:

yy Value: the main information is taken from what and up to what amount theValue: the main information is taken from what and up to what amount the

customer is willing to afford to buy that object.customer is willing to afford to buy that object.

yy The value stream: this gives us the information about the processing steps that The value stream: this gives us the information about the processing steps that 

are used to remove the non-value work processes from the designing process toare used to remove the non-value work processes from the designing process to

the usage of the customer.the usage of the customer.

yy Flow: this removes the wastage from the Flow: this removes the wastage from the process without any obstacles. The flowprocess without any obstacles. The flow

can be reduced for inventory and expertise.can be reduced for inventory and expertise.

yy Pull: it is the way in which we can make the lining of the products as well as thePull: it is the way in which we can make the lining of the products as well as the

processes from the production process based on processes from the production process based on the usage of the cthe usage of the customer.ustomer.

yy Perfection: it is the way of motivating to get the things done right the in the first Perfection: it is the way of motivating to get the things done right the in the first 

time by using the application of continuous improvement.time by using the application of continuous improvement.

By following lean techniques we can easily identify the places of Non-value added timeBy following lean techniques we can easily identify the places of Non-value added time

and then accordingly the yamazumi board is drawn and from which, we can calculateand then accordingly the yamazumi board is drawn and from which, we can calculate

the takt time.the takt time.

The most commonly accepted and used few tThe most commonly accepted and used few tools are,ools are,

VValue Mappingalue Mapping : Value stream mapping is tool typically used during lean initiatives to: Value stream mapping is tool typically used during lean initiatives to

present pictorially the flow of material and information as a product or service makespresent pictorially the flow of material and information as a product or service makes

its way through the value stream. A its way through the value stream. A value stream map is value stream map is often used to identify where tooften used to identify where to

focus future improfocus future improvement efforts vement efforts to reduce or elito reduce or eliminate non value added aminate non value added activities,ctivities,

cycle time and costs.cycle time and costs.

55 S HousekeepingS Housekeeping: Work place are well organised by using Japanese plan, which: Work place are well organised by using Japanese plan, which

directly reduces the waste of looking and searching for equipment. It consists of 5 steps,directly reduces the waste of looking and searching for equipment. It consists of 5 steps,

each starting with the letter S, hence the name 5 S housekeeping are Sort, Straighten,each starting with the letter S, hence the name 5 S housekeeping are Sort, Straighten,

Sweep, Standardise, Self DisciplineSweep, Standardise, Self Discipline

Poka-yokePoka-yoke is otherwise known as mistake proofing concept.is otherwise known as mistake proofing concept. The important view of thisThe important view of this

concept is to stop the process whenever a defect occurs, and explain concept is to stop the process whenever a defect occurs, and explain the cause as the cause as well aswell as

prevent it from reoccurring and also provides source of the defect. Alternatively on-prevent it from reoccurring and also provides source of the defect. Alternatively on-

line adjustment can be made to the product or process, which enables the continuousline adjustment can be made to the product or process, which enables the continuous

process improvement. As production lot sizes are constantly reduced which results inprocess improvement. As production lot sizes are constantly reduced which results in

defect free parts. This system avoids the defects to happen in manufacturing work flow.defect free parts. This system avoids the defects to happen in manufacturing work flow.

Although this concept developed for manufacturing systems (Shingo, .S. 1986,Although this concept developed for manufacturing systems (Shingo, .S. 1986, ZeroZero

Quality Control Quality Control ))

SMEDSMED Single Minute Exchange of Dies, a concept by Shigeo Shingo at Toyota, objective isSingle Minute Exchange of Dies, a concept by Shigeo Shingo at Toyota, objective is

to reduce all factory setups by 59/60ths. In other words, a seto reduce all factory setups by 59/60ths. In other words, a se tup of one hour should taketup of one hour should take

one minute. The adoption of SMED to the traditional mass production system is a toughone minute. The adoption of SMED to the traditional mass production system is a tough

job. This method also used to reduce waste the main objective is to reduce thejob. This method also used to reduce waste the main objective is to reduce the

changeover time. Two elements for set up time is Internal (machine need to stop) andchangeover time. Two elements for set up time is Internal (machine need to stop) and

external (machine need not to stop). Improvement can be made in simplified methods:external (machine need not to stop). Improvement can be made in simplified methods:

jigs, clamps, and quick-release. (Shingo, .S. 1986,jigs, clamps, and quick-release. (Shingo, .S. 1986, Zero Quality Control Zero Quality Control ))

K K an Banan Ban: Kan Ban is otherwise defined as the two bin system. It is material control: Kan Ban is otherwise defined as the two bin system. It is material control

system wsystem which only calls for materials which only calls for materials when required. Inventoriehen required. Inventories s are not maintained upare not maintained up

at line side or in part of finished goods.at line side or in part of finished goods.

Performance MeasuresPerformance Measures: Measures will influence the objective of the company, as what : Measures will influence the objective of the company, as what 

we measure is what we achieve. Performance measures are such as:we measure is what we achieve. Performance measures are such as:

yy Dock to Dock (DTD)Dock to Dock (DTD)

yy First Time Through (FTT)First Time Through (FTT)

yy Build to Schedule (BTS)Build to Schedule (BTS)

yy OOverall Equipment Efficiency (verall Equipment Efficiency (OOEE)EE)

Visual Management: Visual Management should enable the manufacturing time at theVisual Management: Visual Management should enable the manufacturing time at the

production facilities within 3 minutes. With reference to the Machine availability,production facilities within 3 minutes. With reference to the Machine availability,

Production targets, Buffers etc.Production targets, Buffers etc.

Y Y amazumi:amazumi: A Yamazumi chart is a stacked bar chart that shows the balance of cycleA Yamazumi chart is a stacked bar chart that shows the balance of cycle

time workloads between a number of operators typically in an assembly line or work time workloads between a number of operators typically in an assembly line or work 

cell. The Yamazumi chart can be either for a single product or multi product assemblycell. The Yamazumi chart can be either for a single product or multi product assembly

line. line. Y Y amazumi is a Japanese word that literally means to stack upamazumi is a Japanese word that literally means to stack up . Toyota uses. Toyota uses

Yamazumi work balance charts to visually present the work content of a series of tasksYamazumi work balance charts to visually present the work content of a series of tasks

and facilitate work balancing and the isolation and elimination of non value added work and facilitate work balancing and the isolation and elimination of non value added work 

content.content.

TTakt time:akt time: It isIt is the ratio between the time available and the customer demand.the ratio between the time available and the customer demand.

Takt time = time available / customer demandTakt time = time available / customer demand

VValue Stream Mapping:alue Stream Mapping:

Its the most commonly used lean techniques to analyse the flow of material to theIts the most commonly used lean techniques to analyse the flow of material to the

customer. This is highly advantages in visually showing the current flow and delay andcustomer. This is highly advantages in visually showing the current flow and delay and

identifies the part family. Also helps in drawing future state mapping by analysing theidentifies the part family. Also helps in drawing future state mapping by analysing the

current state.current state.

Current State of MAP:Current State of MAP:

MAP availability:MAP availability:

yy 20 days a month.20 days a month.

yy 2 Shif2 Shifts a dts a day (6AM-2PM and 2PM-10PM) = ay (6AM-2PM and 2PM-10PM) = 16 Hours.16 Hours.

yy 30 mints lunch and30 mints lunch and twotwo 15 mints break = 30+ (2*15) = 60Mints = 1Hour break 15 mints break = 30+ (2*15) = 60Mints = 1Hour break 

per shift.per shift.

yy Available time per day = 2 shifts * (8-1) hour = 14 Hours.Available time per day = 2 shifts * (8-1) hour = 14 Hours.

Customer Requirement:Customer Requirement:

yy 1400 car parts per month = (1400/20days) = 70 sets per day1400 car parts per month = (1400/20days) = 70 sets per day

yy Single set comprises of 4 parts (AZ123, AZ124, AZ223 and AZ224) = HenceSingle set comprises of 4 parts (AZ123, AZ124, AZ223 and AZ224) = Hence

(70*4) 280 parts are to flow in line to meet requirement.(70*4) 280 parts are to flow in line to meet requirement.

yy And BZ111 is assembled to AZ123A and And BZ111 is assembled to AZ123A and AZ124A; hence its flow is to be twice theAZ124A; hence its flow is to be twice the

required sets. (2*70) = 140 components.required sets. (2*70) = 140 components.

TTakt akt TTime Calculation:ime Calculation:

Takt Takt time time = = time time available/cuavailable/customer stomer demanddemand

= (2shifts * 7 hours * 60 mints * 60 secs)/(70 sets * 4 parts)= (2shifts * 7 hours * 60 mints * 60 secs)/(70 sets * 4 parts)

= 180 Secs= 180 Secs

Inventory days calculation:Inventory days calculation:

Invent Invent days days = = Summation Summation of inventory/ of inventory/ Demand Demand for for next next operationoperation

(i.e, AZ operation one)= (1800 AZ123A + 2600 AZ124A + 2400 AZ223 + 1700 AZ224)/(i.e, AZ operation one)= (1800 AZ123A + 2600 AZ124A + 2400 AZ223 + 1700 AZ224)/

280280

= 30.357 Days= 30.357 Days

VValue Addedalue Added TTime calculation (ime calculation (VVAAT)T)::

All operations, that change the physical shape of the product and helps in gettingAll operations, that change the physical shape of the product and helps in getting

the final requirement of customer.the final requirement of customer.

NonNon VValue Addedalue Added TTime calculation (Nime calculation (NVVAAT)T)::

Any operations, that support the value added process, and supports it without Any operations, that support the value added process, and supports it without 

taking part in direct operation. Ie setting up machine, tools.taking part in direct operation. Ie setting up machine, tools.

Lead time Lead time calculatiocalculation:n:

Its the time taken by the product to reach customer, right from the reach of rawIts the time taken by the product to reach customer, right from the reach of raw

materials.materials.

Critical Path:Critical Path:

It is the path of higher time in a parallel flow process. In here, the BZ processIt is the path of higher time in a parallel flow process. In here, the BZ process

holds the high value added time and this path of process is critical path of the product holds the high value added time and this path of process is critical path of the product 

family.family.

Critical Analysis:Critical Analysis:

AnalysinAnalysing under 7 g under 7 wastes of Lean:wastes of Lean:

1,1, OOver production:ver production:

Its very clear from the Its very clear from the current state mapping that the operatiocurrent state mapping that the operation 1 of AZ family does n 1 of AZ family does overover

production and there is very high inventory, if this could be controlled then major part production and there is very high inventory, if this could be controlled then major part 

of the non-value added time would be saved for the process. This area has lots of roomof the non-value added time would be saved for the process. This area has lots of room

for improvement.for improvement.

2, Waiting time:2, Waiting time:

Due to the heavy production at operation 1 of AZ family, the waiting time of product isDue to the heavy production at operation 1 of AZ family, the waiting time of product is

more than 30days for operation 2. This waiting time in sense increases the highmore than 30days for operation 2. This waiting time in sense increases the high

investment of inveninvestment of inventory. And until assembly tory. And until assembly 1 there is 1 there is huge amount of inventory takinghuge amount of inventory taking

place, which consumes more time than that of the critical path.place, which consumes more time than that of the critical path.

3, Transport:3, Transport:

There isnt much transport other than moving from department to department, thoughThere isnt much transport other than moving from department to department, though

this isnt quite high can be looked as a option for improvement.this isnt quite high can be looked as a option for improvement.

4, Process:4, Process:

There is no much of process delay, still SMED tools could probably drop the setup timesThere is no much of process delay, still SMED tools could probably drop the setup times

and other process delays.and other process delays.

5, Inventory:5, Inventory:

Investments over inventory is significantly quite higher in all levels of process, theInvestments over inventory is significantly quite higher in all levels of process, the

change over the push to pull and JIT could help in dropping inventory totally and Kanchange over the push to pull and JIT could help in dropping inventory totally and Kan

Ban also could be used as a Ban also could be used as a tool in dropptool in droppinin g inventory.g inventory.

6, Motion:6, Motion:

This doesnt show the motion between cells, but the other tools of lean could beThis doesnt show the motion between cells, but the other tools of lean could be

employed to find the motion and controlled.employed to find the motion and controlled.

7, Defective Goods:7, Defective Goods:

Defective goods are common everywhere, but the way of control defers. The easy andDefective goods are common everywhere, but the way of control defers. The easy and

better way of controlling is to stop the poor quality material there itself and stopbetter way of controlling is to stop the poor quality material there itself and stop

passing it to next departments.passing it to next departments. OOnce this is followed there isnt need for a thoroughnce this is followed there isnt need for a thorough

check at final assembly, where some critical parts could hide from text just because of check at final assembly, where some critical parts could hide from text just because of 

pre assembly.pre assembly.

Conclusion:Conclusion:

This current state gives a clear view for future and good improvements for future. TheThis current state gives a clear view for future and good improvements for future. The

current system has lots of inventory and high lead time, which takes most part of thecurrent system has lots of inventory and high lead time, which takes most part of the

assets, reducing inventory turnover. There is also a unnoticed problem of sharingassets, reducing inventory turnover. There is also a unnoticed problem of sharing

informatiinformation, while the customer produces orders on daily basis, it easy to adopt to on, while the customer produces orders on daily basis, it easy to adopt to a JITa JIT

manufacturimanufacturing system, for ng system, for which they need to get their suppliers ready for JIT. And alsowhich they need to get their suppliers ready for JIT. And also

redesigning cells will give good utilisation of machinredesigning cells will give good utilisation of machin es.es.

References:References:

yy Jeffrey P. Wincel (2003) Lean Suppy Chain Management. New York: ProductivityJeffrey P. Wincel (2003) Lean Suppy Chain Management. New York: Productivity

yy Michael A. LewMichael A. Lewis (2000) is (2000) 'Lean production and 'Lean production and sustainable competitivsustainable competitive advantage'. e advantage'. UnivUniv

of Warwick 20 (8), 1-20of Warwick 20 (8), 1-20

yy Peter Hines, Matthias Holweg and Nick Rich (2004) Peter Hines, Matthias Holweg and Nick Rich (2004) 'Learnin'Learning to g to evolve'. Emeraldinsight evolve'. Emeraldinsight 

24 (10), 1-824 (10), 1-8

yy Paul D. Ericksen, Nathan J. Stoflet, and Rajan Suri (2007) 'Manufacturing CriticalPaul D. Ericksen, Nathan J. Stoflet, and Rajan Suri (2007) 'Manufacturing Critical OOathath

Time (MCT)Time (MCT)'. Technical report 1 1'. Technical report 1 1 -4-4

yy Andrew Greasley (1992)Andrew Greasley (1992) OOperation Management peration Management 

yy Windey Garner (2010) LeanWindey Garner (2010) Lean OOperations, perations, Lecture notes. Coventry: CovenLecture notes. Coventry: Coventry Universitytry University

yy Liker, Jeffrey Liker, Jeffrey (1998) Becoming Lean. Productivity.(1998) Becoming Lean. Productivity.

RReference /eference /

SourceSource

WhWhy y implement implement Benefits Benefits of of leleaann TTools usedools used PPeople issueseople issues

encounteredencountered

OperationOperation

Management byManagement by

Andrew GreasleyAndrew Greasley

yy EElimination of limination of 

wastewaste

yy ContinuousContinuous

improvementimprovement

yy CellularCellular

manufacturingmanufacturing

EEliminatingliminating

wasteswastes

Drop inDrop in

movements of movements of 

men, material andmen, material and

toolstools..

ContinuousContinuous

progress andprogress and

achievable targetachievable target

5S5S

KaizenKaizen

kanbankanban

MassMass

customisation /customisation /

ProductionProduction

yy Customise massCustomise mass

productionproduction

Varity of productsVarity of products

and high flexiblyand high flexibly..

Product processProduct process

matrix usedmatrix used..

MC systemsMC systems

Value streemValue streem

mapping in makemapping in make

to orderto order

environmentenvironment

yy Get continuousGet continuous

flow in highflow in high

variety processvariety process

yy

High customerHigh customer

satisfactionsatisfaction

VarietyVariety

continuous flowcontinuous flow

Critical analysisCritical analysis

of bottle neckof bottle neck

operationoperation

ManufacturingManufacturing

Critical path timeCritical path time

yy Q Q uick responseuick response

to marketto market

yy AdvancedAdvanced

manufacturingmanufacturing

Reduce lead timeReduce lead time

Reduced setupReduced setup

timetime

Q Q RM RM Q Q uickuick

ResponseResponse

ManufacturingManufacturing

A New view toA New view to

Lean by JohnstonLean by Johnston

DavidDavid

yy CompoundingCompounding

factors such asfactors such as

logistics costslogistics costs

droppeddropped

Capability toCapability to

compete in thecompete in the

next generationnext generation

Four phaseFour phase

methodologymethodology

Lean supply chainLean supply chain

by Jeffrey Pby Jeffrey P..

WincelWincel

yy Taking lean toTaking lean to

supplier basesupplier base

yy ContinuousContinuous

improvementimprovement

EEffective supplierffective supplier

base, and goodbase, and good

understandingunderstanding

Improves processImproves process

by eliminatingby eliminating

wastewaste..

Two waveTwo wave

methodologymethodology

KaizenKaizen

Case studiesCase studies