Lean Management

Prof. Vivek Kumar FIIB

Production Optimization Techniques

 Kaizen  Poka-Yoke  Lean Manufacturing  Kanban

Production Management

Production Management : Managing production of product in cost effective manner meeting customer needs and organizational objectives.

Toyota Production System

 Philosophy of complete elimination of waste, imbibing all aspects of production to get most efficient output.  It is integrated socio-technical system  Based on the concepts of  Jidoka Automation with a human touch  Just in Time Production as per demand

Toyota Production System

 Developed by Toyota founders and the engineer Ohno along with Deming and Juran  Reduces lead time and cost with improvement in quality  Diversification and risk reduction strategy  Emphasis on human strength and ergonomics rather than process automation  Continuous experimentation and measurement strategy

Production The Toyota Way

 Long term philosophy (Ford and Shingo)  Right process to produce right results with involvement of everyone  Value addition by developing people and partners (organizational commitments)  Continuously solving root problems through education and training and job empowerment

Innovation for Competitive Advantage

 Individual innovation  Motivation  Technology application  Creativity  Analysis and application of results  Innovation teams  Innovation Organization

Human Development Strategy

 Human Assets Management  Selection and Recruitment as per QR  Training Cultural & Job Specific  Motivation Monetary & Recognition  Job Description / Empowerment / Ownership  Synergy at work

Kaizen
Everyday and in every way, we should get better and better - Tiger Woods Do the right thing right, the first time and every time - Dr. Deming Hence, Kaizen (Continuous improvement should be the way of doing business)

Developing Kaizen Culture

 Management oriented improvement projects and resource allocations  Group oriented method and process design and monitoring systems  Individual oriented job description, job empowerment and job ownership

Purpose of Kaizen
 Customer satisfaction i.e. right product, at right place, at right time, at right cost  Supplier relations vendor partnership, base rationalization and constant evaluation  Getting workers acceptance and overcoming their resistance to change  Waste elimination

Kaizen Components
 Perceptiveness problem identification  Idea development brain storming by focused team to develop innovative ideas (Quality Circles)  Decision implementation and effect developing alternate solutions with their costing and implementation of Appears to be the best solution. Evaluation of effect on the process such as flexibility, cost and safety as prime parameters

Kaizen Tools
 Five S methodology (house keeping)  Suggestion system & PDCA cycle  Kanban system  Poka Yoke  TPM  SMED  TAKT time analysis

Value Stream Mapping

A lean technique for analysis of flow of materials and information, currently required to bring a product or service to a customer It is also called Material and Information Flow Mapping at Toyota Commonly used in Lean environment to identify opportunities for improvement in lead time It can be used in logistics, SC or any service

VSM Implementation
 Identify target product or service  Draw a current state value stream map, showing current steps, delays and information flow for product delivery  It can be a production flow or design flow  Assess the current state value stream map for eliminating waste  Draw a future state value stream map and implement the decided course of action

Poka - Yoke
A Japanese word for Prevention of Inadvertent errors The basic principle of poka-yoke is prevention of defects, rather than eliminating them It is a zero defect control program Mistakes can result from forgetfulness, misunderstanding, errors in identification, lack of skill, absent mindedness, lack of standards or equipment malfunctions

Poka - Yoke
Increase in Productivity and Quality

 An approach for mistake proofing processes using methods to avoid simple human errors  With fewer or no mistakes, more units are available for use/sales  The time consumed on products is less due to standard method of work, hence, higher productivity  With mistakes reduction, quality improves

Implementation of Poka - Yoke

 Use check lists for operations and design sequences  Brain storm for all possible sources of errors and cater for their elimination during design/production  Use limit switches/warning lights for mistake identification  Use of computer based technology to minimize mistakes

Various methods for Poka - Yoke

 Check lists  BPR  Color code for easy identification  JIT Kanban system  Templates for product differentiation  Optical scanners and bar codes  Distinct packaging  Guide notches for correct matching etc

Identification of Losses/Wastes
 Losses due to over production  Losses due to waiting (including WIP)  Losses due to transportation  Losses due to inventory  Losses due to poor processing  Losses due to bad design/improper motion  Losses due to defective production

Elimination of Losses
 Focused factory networks  Group technology  Quality at the source  JIT production/delivery  Uniform plant loading and minimum set up time  Kanban production control system  Optimal use of all resources

Lean Production (Lean Factory)

Concept of JIT developed by Japanese

 Little JIT  Production Scheduling and inventory

management  Production just when needed  Materials just when required for next stage

 Big JIT  Full range of organizational & operational

improvements

Principles of Lean Production

 Only one type of product with demand constant and firm  All resources for production available  Quality materials delivered just when needed  Processing time and sequence of operations for one unit is fixed and known  Machines well maintained and employees committed  Avoid waste of time, investment and ideal workers

Accomplishment of Lean Production

 Design flow processes  Establish quality control systems  Stabilize schedules and material flow  Vendor partnerships with reduced lead time  Reduced inventories  Improved product design continuously (standardization, high volume, discrete units and automation)

Kanban
Meaning of Kanban It is a card or a sign through which we develop a scheduling system for communicating the demand to the delivery system. It replaces all written work orders, move tickets and routing sheets It authorizes movement of parts/materials through the production system, hence a physical control

Kanban

Part Number & Name

Proceed ing Process A12 Subsequ ent Process B6

Part Number Part Name Stock Location Container Capacity

Process A 12

Box capacity 20

Box Type B

Issue No. 4 of 8

Withdrawal Kanban

Production Kanban

Kanban on Shopfloor

Input Area

Work Station A

Output Area

Input Area

Work Station B

Output Area

Pull and Push System

Pull System
1
IN

A
OUT

13

12

11

10

Mizusumashi
 JIT uses Kanban and Mizusumashi system  It is fixed, course pickup production when needed  Workers move between assembly lines and storage and bring the material to the line. Such workers are called Mizusumashi  System was used in 1950s for raw materials and components between the factories

Mizusumashi
 Manual movement to the shop floor as per WIP, through human carts/hands  Simulation can be tried for development design  Heuristic approach to work out minimum number of containers  Present system is AGV and Conveyors among processes and storages  Periodic review

Mizusumashi
 Parts are kept in the containers for handling / counting  Mizusumashi picks up only empty containers, goes to the storage area and fills up the empty containers. Then supply these containers to the work place  Worker (Technician) goes to the staging area to wait until the next review

Electronic Kanban between mill locations

In the present day set up, electronic Kanban signaling is utilized between, division plant location instead of manual Kanban system. This has been developed to be compatible with the present ERP system, hence implementation can be done in conjunction with installation of ERP system, across various locations. A system has been created as a stepping stone to the future ERP Kanban functionality.

The Essence

JOYCE BROTHERS