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Lesson 1 - Introduction

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26 views27 pages

Lesson 1 - Introduction

Uploaded by

inagantiadithya
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Lean Management

Introduction
Agenda

Introduction

What is Lean

Its Roots

Success and Benefits

Challenges
What Is Lean?

4
Overview of Lean

• Creating more value for customer with fewer resources

• Philosophy: To provide perfect value to the customer through a perfect value creation
process that has zero waste

• Lean reduces cost, improves quality, and speeds delivery by eliminating non-value-added
activity in a process by identifying and eliminating waste

• Lean is not a tactic or a cost reduction program, but a way of optimizing end to end
processes
Principles of Lean

5. Seek
Perfection 1. Identify Value

4. Establish Pull 2. Map Value


Stream

3. Create Flow
Types of Waste

• What is waste?

• Non-value-add activity

• Some types of waste with examples

o Anything that could have been avoided


o Customer is not willing to pay for it
o Defects/rework

• The 7 types of waste

• Muda (Japanese word for waste)

• Uncommon common sense


Lean Journey

• Lean journey is on the principle “I will believe it 1

when I see it”

• Lowering the tide and uncovering more reefs that


can sink the boat

• Three stages of Lean journey


2
o Lean operations
o Lean enterprise
o Lean network
Roots of Lean
Lean at Ford

• Henry Ford (at Highland Park, MI USA) in 1913

• Car “Model T”

• Integration of entire production process

• Flow production
o Interchangeable parts
o Moving conveyance
o Automated assembly line
o Fabrication steps
o Go/No-Go gauge
• Model T (one color, one specification)

• Need for variety


Toyota Production System (TPS)

• Based on Ford’s original thinking

• Rebuilding Japanese economy after World War II (1930)

• Kiichiro Toyoda, Taiichi Ohno, and others at Toyota

• Series of simple innovations to improve process flow and provide variety


in product offerings

• Focus on improving end to end processes rather than optimizing


individual machines

• Result: Low cost, high variety, high quality, and very rapid throughput
times to meet customer desires
Just-In-Time (JIT)

• Introduced by Ford

• Supply-chain/ production/inventory strategy

• Demand-pull system

• Get the right thing at the right time at the right place

• Relies on signals between processes to keep things moving

• Requires producers to accurately forecast demand and use


integrated production management tools

• Saves warehouse space, inventory cost and prevents


obsolete inventory, resulting in higher ROI
Lean Successes and Benefits

Profit
• “Efficiency” Business Model Fit

• Cash Flow Improvement Attract & Retain


Customers
• Increased Capacity for Revenue
Employees
Engagement & Morale
“Efficiency” Business Model

• Business Model

o Employees
o Customers
o Profits

• Higher Efficiency

o Do More with less


o “Just Enough” in everything
o No more band aid solutions that become future problems

• From managing numbers to managing process


Cash Flow Improvement

• Reduced inventory

• No waiting

• Space reduction

• Cycle time reduction

• Reduced waste

• Reduced defect
Increased Capacity for Revenue

• Attract and retain customer

• More with less

• Fewer support calls

• Lean increases capacity

o Your process can produce more with the same number of people
o Your process can produce the same amount with fewer people
Challenges
Process Changes Cause a Rethinking of Process Flow

• Process

o Input
o Processing
o Output

• Process changes

• Process flow

• In-process metrics

• Training
Disruptions, Downtime, Design Failures

• Process change

• Disruptions

• Downtime

• Design failures
Low Volume/High Mix

• Toyota production system

• High volume/low mix manufacturing

• Low volume/high Mix Needs

• Example
High Variable: Customization, Demand

• Customer demands
• Customization
• Made-to-order
• Variability
• Support and maintenance
Summary

Lean overview

Types of waste

History

Successes and challenges

© Simplilearn Solutions
Knowledge Check
Knowledge
Check
Lean manufacturing is a:
1

A. Method for reducing labor cost

B. Means to improve responsiveness to the customer

C. Efficiency improvement technique

D. Set of tools designed to improve productivity


Knowledge
Check
Lean manufacturing is a:
1

A. Method for reducing labor cost

B. Means to improve responsiveness to the customer

C. Efficiency improvement technique

D. Set of tools designed to improve productivity

The correct answer is C

Lean manufacturing is efficiency improvement technique, once this is achieved, it will help in improving productivity,
becoming more responsive to customers and reduce cost.
Knowledge
Check
The main objective of Lean manufacturing is to:
2

A. Produce goods using less resources

B. Keep labor costs as low as possible by using more of other resources

C. Produce products with fewer options to simplify consumer choices

D. Outsource much of manufacturing in order to focus on final assembly


Knowledge
Check
The main objective of Lean manufacturing is to:
2

A. Produce goods using less resources

B. Keep labor costs as low as possible by using more of other resources

C. Produce products with fewer options to simplify consumer choices

D. Outsource much of manufacturing in order to focus on final assembly

The correct answer is A

The main objective of Lean manufacturing is to produce goods using less resources.

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