A PROJECT ON LEAN MANUFACTURING PREPARED BY Kunal Bansal TY-D ROLL NO: 3204

WHAT IS LEAN MANUFACTURING?

Lean Manufacturing is a business initiative to reduce waste in manufactured products. The basic idea is to reduce the cost systematically, throughout the product and production process, by means of a series of engineering reviews. The crucial insight is that most costs are assigned when a product is designed. Often an engineer will specify familiar, safe materials and processes rather than inexpensive, efficient ones. This reduces project risk, that is, the cost to the engineer, while increasing financial risks, and decreasing profits. Good organizations develop and review checklists to review product designs.

At the system engineering level, requirements are reviewed with marketing and customer representatives to eliminate costly requirements. Shared modules may be developed, such as multipurpose power-supplies or shared mechanical components or fasteners. Requirements are assigned to the cheapest discipline. For example, adjustments may be moved into software, and measurements away from a mechanical solution to an electronic solution. Another approach is to choose connection or power-transport methods that are cheap or that used standardized components that become available in a competitive market. Principles of Lean Enterprise: Zero waiting time Zero Inventory Scheduling -- internal customer pull instead of push system Batch to Flow -- cut batch sizes Line Balancing Cut actual process times.

Why is Lean Manufacturing important?

The aim of Lean Manufacturing is the elimination of waste in every area of production 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: 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 Inventory or Work-in-Progress: 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

 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 Redundant approvals

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
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: Unbalanced work load Unplanned maintenance Long process set-up times Misuses of automation Upstream quality problems Unleveled scheduling Under-utilizing 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

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.

Eliminating Waste: 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? If YES If NO 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.
Continuous Improvement(Kaizen):

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.

 Pull and Push System: Push system Here the products are made according to the market forecast and not according to the current demand. So here the information flow is in the same direction as the product flow. So there may chance of piling of finished goods as there are always fluctuation in demand. Thus the product is pushed through the production line.
Pull system- Here the product is made according to the customer demand. So the

information of the quantity and type of product flow in the opposite direction to that of the product. Here no piling of finished products occurs as the production is according to the customer demand. Hence the customer pulls the product through the production line. 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. 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 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. 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 discipline.

Comparison between tradition 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.
TRADITIONAL MASS PRODUCTION LEAN PRODUCTION

Business Strategy Product-out strategy focused on exploiting economies of scale of stable product designs and non-unique technologies Customer focused strategy focused on identifying and exploiting shifting competitive advantage. Customer Satisfaction Makes what engineers want in large quantities at statistically acceptable quality levels; dispose of unused inventory at sale prices Makes what customers want with zero defect, when they want it, and only in the quantities they order Leadership Leadership by executive command Leadership by vision and broad participation Organization Hierarchical structures that encourage following orders and discourage the flow of vital information that highlights defects, operator errors, equipment abnormalities, and organizational deficiencies. Flat structures that encourage initiative and encourage the flow of vital information that highlights defects, operator errors, equipment abnormalities, and organizational deficiencies. External Relations Based on price Based on long-term relationships Information Management Information-weak management based on abstract reports Information-rich management based on visual control systems maintained by all employees Cultural Culture of loyalty and obedience, subculture of alienation and labor strife Harmonious culture of involvement based on long-term development of human resources Production Large-scale machines, functional layout, minimal skills, long production runs, massive inventories Human-scale machines, cell-type layout, multi-skilling, one-piece flow, zero inventories Operational capability Dumb tools that assume an extreme division of labor, the following of orders, and no problem solving skills Smart tools that assume standardized work, strength in problem identification, hypothesis generation, and experimentation.

Benefits of Lean Manufacturing

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. As these words are written, Toyota, the leading lean exemplar in the world, stands poised to become the largest automaker in the world in terms of overall sales. Its dominant success in everything from rising sales and market shares in every global market, not to mention a clear lead in hybrid technology, stands as the strongest proof of the power of lean enterprise. This continued success has over the past two decades created an enormous demand for greater knowledge about lean thinking. There are literally hundreds of books and papers, not to mention thousands of media articles exploring the subject, and numerous other resources available to this growing audience. As lean thinking continues to spread to every country in the world, leaders are also adapting the tools and principles beyond manufacturing, to logistics and distribution, services, retail, healthcare, construction, maintenance, and even government. Indeed, lean consciousness and methods are only beginning to take root among senior managers and leaders in all sectors today.

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.

Contents
1. What Is Lean Manufacturing ? 2. Why Is Lean Maufacturing Important 3.Elements Of Lean Manufacturing 4. Comparision Between Tradition & Lean Manufacturing 5. Benefits Of Lean Manufacturing 6. Conclusion pg 1 pg 2 pg 4 pg 6 Pg 7 pg 8