lean manufacturing full report
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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 and implimentation 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.
In mechanical engineering, the process usually begins with a team review of the materials and processes. The team will include a cost accountant, manufacturing and design engineers. Quite often, parts can be combined into a single injection-molded plastic or die-cast part reducing both fabrication and assembly costs. Fasteners are eliminated, reduced or commonized. Tolerances (critical dimensions) are eliminated, widened and adapted to production processes to achieve theoretical 100% yields. Adjustments are eliminated.
The tooling cost and any production machinery costs are estimated, and financial feasibilty established with return on investment. Reuse of existing machinery and capabilities is often essential.
In some cases, the crucial insight is to substitute materials that require less time to form. For example, some products can substitute surfaces sputtered with coatings for heat-treated steel and save money because the production bottleneck of the time-consuming heat-treat is eliminated.
In electrical engineering, the process begins with a team-review of the circuit requirements. Requirements are reduced, and inexpensive electrical or software solutions are substituted for mechanical solutions. The circuit is examined to reduce adjustments and expensive parts. In the circuit design, detailed tolerance studies are performed to maximize the number of circuits that work first time. Mechanical parts and connectors are carefully reviewed to reduce assembly and testing costs. In particular, the printed circuit board is integrated with the mechanical design to eliminate cables between the printed circuit board and the connectors on the case. The printed-circuit board design is carefully scrutinized to use the least-expensive possible materials (such as phenolic paper board), make it solder reliably, and adapt it to automatic assembly.
In software engineering the process begins with a requirements review, to eliminate unnecessary requirements, and substitute software for mechanical and electrical components. Software generally has a lower per-component cost than other disciplines, especially in the large production runs typical of a lean product. The design then attempts to eliminate costly software components, especially those that are purchased.
Lean Manufacturing, simply defined, is a method of doing more with less. Specifically, Lean Manufacturing is producing high quality products with minimal floor space, work-in-process (WIP) inventory, finished goods inventory, material movement, non-value-added activities, and human effort. Lean Manufacturing encompasses elements of total quality management (TQM), just-in-time (JIT), etc. within a system designed for flexibility and maximum customer satisfaction. The lean manufacturing approach is the most comprehensive of the popular production management improvement initiatives because it addresses product, process, and human related issues in the production system. Studies have shown that, while many companies claim that they are "lean" or managing production according to TQM, JIT, etc., few are actually doing so. Further, while many understand the underlying concepts of these different management philosophies, few understand the details and/or the order of operations necessary for successful implementation of these concepts.
Principles of Lean Enterprise:
Â¢ Zero waiting time
Â¢ Zero Inventory
Â¢ Scheduling -- internal customer pull instead of push system
Â¢ Batch to Flow -- cut batch sizes
Â¢ Line Balancing
Â¢ Cut actual process times.
1. Processes and Materials of Manufacture by R.A. LINDBERG
2. SEMINAR TOPIC FROM :: http://www.edufive.com/seminar and presentationtopics.html
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CHAPTER – 1
A BRIEF HISTORY OF LEAN MANUFACTURING
In 1900’s U.S. manufacturers like Henry ford brought the concept of mass production. U.S. manufacturers have always searched for efficiency strategies that help reduce costs, improve output, establish competitive position, and increase market share. Early process oriented mass production manufacturing methods common before World War II shifted afterwards to the results-oriented, output-focused, production systems that control most of today's manufacturing businesses.
Japanese manufacturers re-building after the Second World War were facing declining human, material, and financial resources. The problems they faced in manufacturing were vastly different from their Western counterparts. These circumstances led to the development of new, lower cost, manufacturing practices. Early Japanese leaders such as the Toyota Motor Company's Eiji Toyoda, Taiichi Ohno, and Shingeo Shingo developed a disciplined, process-focused production system now known as the "lean production." The objective of this system was to minimize the consumption of resources that added no value to a product.
The "lean manufacturing" concept was popularized in American factories in large part by the Massachusetts Institute of Technology study of the movement from mass production toward production as described in The Machine That Changed the World, (Womack, Jones & Roos, 1990), which discussed the significant performance gap between Western and Japanese automotive industries. This book described the important elements accounting for superior performance as lean production. The term "lean" was used because Japanese business methods used less human effort, capital investment, floor space, materials, and time in all aspects of operations. The resulting competition among U.S. and Japanese automakers over the last 25 years has lead to the adoption of these principles within all U.S. manufacturing businesses. Now it has got global acceptance and is adopted by industries world over to keep up with the fast moving and competing industrial field.
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WHAT IS LEAN MANUFACTURING?
Lean manufacturing is a manufacturing system and philosophy that was originally developed by Toyota, Japan and is now used by many manufacturers throughout the world.
Lean Manufacturing can be defined as:
"A systematic approach to identifying and eliminating waste (non-value-added activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection."
The term lean manufacturing is a more generic term and refers to the general principles and further developments of becoming lean.
The term lean is very apt because in lean manufacturing the emphasis is on cutting out “FAT” or wastes in manufacturing process. Waste is defined as anything that does not add any value to the product. It could be defined as anything the customer is not willing to pay for.
Manufacturing philosophy is pivoted on designing a manufacturing system that perfectly blends together the fundamentals of minimizing costs and maximizing profit. These fundamentals are Man (labour), Materials and Machines (equipments) called the 3 M’s of manufacturing. A well-balanced 3M is resulted through lean manufacturing.
WASTES IN MANUFACTURING
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:
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
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
3.3 Inventory or Work in Process (WIP)
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
3.4 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
• Extra copies/excessive information
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
Motion of the workers, machines, and transport (e.g. due to the inappropriate location of tools and parts) is waste. Instead of automating wasted motion, the operation itself should be improved.
Causes of motion waste include:
• Poor people/machine effectiveness
• Inconsistent work methods
• Unfavorable facility or cell layout
• Poor workplace organization and housekeeping
• Extra "busy" movements while waiting
3.7 Making defective products
This is pure waste. Prevent the occurrence of defects instead of finding and repairing defects.
Causes of processing waste include:
• Weak process control
• Poor quality
• Unbalanced inventory level
• Deficient planned maintenance
• Inadequate education/training/work instructions
• Product design
• Customer needs not understood
3.8 Underutilizing 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
Nearly every waste in the production process can fit into at least one of these categories. Those that understand the concept deeply view waste as the singular enemy that greatly limits business performance and threatens prosperity unless it is relentlessly eliminated over time. Lean manufacturing is an approach that eliminates waste by reducing costs in the overall production process, in operations within that process, and in the utilization of production labor. The focus is on making the entire process flow, not the improvement of one or more individual operations.
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 5S’s. When these elements are focused in the areas of cost, quality and delivery, this forms the basis for a lean production system.
4.1 Elimination of waste
Waste is anything that doesn’t 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 doesn’t 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
4.2 continuous improvement
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.
According to the level of employees the type of improvements each should focus are as shown below:
In order to achieve continuous improvement the work culture of the workers should be modified. The workers should be aimed at improving their work each time they do it.
4.3 Pull system
Manufacturing system can be divided into two
1) 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.
2)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.
4.4 One-piece flow
One piece flow is one of the important techniques in implementing lean manufacturing. Traditional batch production in mass production is replaced by one piece flow in lean manufacturing. Here batch size is reduced to almost one. This reduces the total lead time and also reduces waiting between operations or queuing.
Following figures show how effective is one piece flow over batch production.
From the above example it is clear that the lead time can be reduced to almost 40% of the lead time when it was batch production. Also it can be noted that it takes about 85% less time for the first part to be produced. Thus product can be produced according to current demand quickly.
4.5 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.
Following figures shows the diagrammatic representation of both forms of floor arrangement.
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
4.6 The 5 S’s
It is the Japanese method of keeping the work place clean and tidy. This helps in reducing many unnecessary movements. The 5S’s 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 3S’s and use visual controls.
•Sustain (Shitsuke) - Ensure adherence to the 5S standards through communication, training, and self-discipline.
KEYS TO LEAN SUCCESS
Following are some considerations to successful lean implementation:
5.1 Prepare and motivate people
• Widespread orientation to Continuous Improvement, quality, training and recruiting workers with appropriate skills
• Create common understanding of need to change to lean
5.2 Employee involvement
• Push decision making and system development down to the "lowest levels"
• Trained and truly empowered people
5.3 Share information and manage expectations
5.4 Identify and empower champions, particularly operations managers
• Remove roadblocks (i.e. people, layout, systems)
• Make it both directive yet empowering
5.5 Atmosphere of experimentation
• Tolerating mistakes, patience, etc.
• Willingness to take risks
5.6 Installing "enlightened" and realistic performance measures,
evaluation, and reward systems
Do away with rigid performance goals during implementation
• Measure results and not number activities/events
• Tie improvements, long term, to key macro level performance targets (i.e. inventory turns, quality, delivery, overall cost reductions)
After early wins in operations, extend across ENTIRE organization.
COMPARISON BETWEEN TRADITIONAL 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.
6.1 OVERALL ORGANIZATIONAL CHARACTERISTICS:
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
Maintenance Maintenance by maintenance specialists Equipment management by production, maintenance and engineering
Engineering "Isolated genius" model, with little input from customers and little respect for production realities. Team-based model, with high input from customers and concurrent development of product and production process design
6.2 MANUFACTURING METHODS:
TRADITIONAL MASS PRODUCTION LEAN PRODUCTON
Production schedules are based on… Forecast — product is pushed through the facility Customer Order — product is pulled through the facility
Products manufactured to… Replenish finished goods inventory Fill customer orders (immediate shipments)
Production cycle times are… Weeks/months Hours/days
Manufacturing lot size quantities are… Large, with large batches moving between operations; product is sent ahead of each operation Small, and based on one-piece flow between operations
Plant and equipment layout is… By department function By product flow, using cells or lines for product families
Quality is assured… Through lot sampling 100% at the production source
Workers are typically assigned… One person per machine With one person handling several machines
Worker empowerment is… Low — little input into how operation is performed High — has responsibility for identifying and implementing improvements
Inventory levels are… High — large warehouse of finished goods, and central storeroom for in-process staging Low — small amounts between operations, ship often
Inventory turns are… Low — 6-9 turns pr year or less High — 20+ turns per year
Flexibility in changing manufacturing schedules is… Low — difficult to handle and adjust to High — easy to adjust to and implement
Manufacturing costs are… Rising and difficult to control Stable/decreasing and under control
BENEFITS OF LEAN MANUFACTURING
According to the study conducted in various industries world over the main benefits achieved by implementation of lean manufacturing is as shown below.
(From ERC staff meeting, march 20,2002,Maryland University)
Establishment and mastering of a lean production system would allow you to achieve the following benefits:
• Lead time is reduced by 90%
• Productivity is increased by 50%
• Work in process is reduced by 80%
• Quality is improved by 80%
• Space utilization is increased by 75%
These are areas in an establishment that directly affects its survival. There are many other benefits also which directly or indirectly affects the performance of the industry.
Reduced scrap and waste
Reduced inventory costs
Reduced cycle time
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
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.
The Parker Hannifin Aircraft Wheel & Brake Division.
Designer and manufacturer of aerospace commercial and military wheel and brake systems.
To reduce high finished goods, spares components and work-in-process inventory levels and the need to reduce long engineering and manufacturing cycle times.
The project and implimentation objectives:
• 1. Reduce total Final Assembly (F-A) cycle time from 30 to 15 days.
• 2. Redesign F-A operations to:
a. Integrate product-lines where feasible;
b. Kit, build, pack & ship in one day;
c. Optimize available floor space;
d. Minimize operational transportation.
• 1. Implemented "one-piece flow" philosophy;
a. Eliminated Build-to-Stock paradigm.
b. Reduced F-A Cycle Time from 30 to 4 days.
• 2. Saved approximately 3,200 sq. ft. of floor space (40 percent of area);
a. Integrated four product-lines into three;
b. Reduced Transportation up to 30 percent.
This case study was provided by FlowCycle, Texas-based lean manufacturing consulting and training firm. (http://www.advancedmanufacturing.com)
“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”
1. Besterfield, Dale H.: “Total quality management”,
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Defining Value and Waste
Defining value - an item or feature for which a customer willing to pay.
Every thing else – waste
Waste - activities that consume time, resource and/or space but do not add value.
Lean - Production of product to meet demand on daily basis with minimum lead time & non value added activities eliminated or minimized
Lean manufacturing is a systems approach
Lean manufacturing is not a collection of best practices from which manufacturers can pick and choose. It is a production philosophy, a way of conceptualizing the manufacturing process from raw material to finished goods and from design concept to customer satisfaction. Lean is truly a different way of thinking about manufacturing
Decrease down time
Raise employee morale
Identify problems more quickly
Develop control through visibility
Establish convenient work practices
Visual controls show
Where items belong?
How many items belong there?
What is the standard procedure for doing something?
Status of work in process.
Many other types of information critical to the flow of work activities.
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What is lean manufacturing?
Lean is a Team Based continuous improvement process designed for long term maximization of company resources.
Lean is an approach to achieving manufacturing excellence based upon the continued elimination of waste. Waste is defined as activities that do not add value to the product.
Lean Manufacturing utilizes techniques and principles that improve efficiencies of value added activities.
Many of the concepts in Lean Manufacturing originate from the Toyota Production System (TPS) and have been implemented gradually throughout Toyota’s operations beginning in the 1950's. By the 1980’s Toyota had increasingly become known for the effectiveness with which it had implemented Just-In-Time (JIT) manufacturing systems5. Today, Toyota is often considered one of the most efficient manufacturing companies in the world and the company that sets the standard for best practices in Lean Manufacturing. The term “Lean Manufacturing” or “Lean Production” first appeared in the 1990 book The Machine that Changed the World6.
Lean Manufacturing has increasingly been applied by leading manufacturing companies throughout the world, lead by the major automobile manufactures and their equipment suppliers. Lean Manufacturing is becoming an increasingly important topic for manufacturing companies in developed countries as they try to find ways to compete more effectively against competition from Asia.
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