LEAN ENTERPRISE

Article Review

TRIMESTER 5

SUBMITTED TO:
DR. AKSHAY JOSHI

-SUBMITTED BY
Kushagri Bakshi
Prakhar Gupta
Prateek Bagel
Contents
History of Lean & Early Development:.................................................................................................3
Principles of Lean:.................................................................................................................................3
Lean Tools & their application……………………………………………………………….
……………………………………………4

New Trends in Lean & its Future..........................................................................................................4

Future Business Trends.........................................................................................................................7
Lean gets out of Manufacturing Floor...................................................................................................7
Linking Lean Management & Industry 4.0............................................................................................8
History of Lean & Early Development:

Henry Ford was the first one to understand the scope of mass production &standardization.
Ford introduced the world to a concept called as “Flow Production”. The flow approach
involved continuous regulated flow of raw materials through the production process.
He used this approach to assemble the components of vehicles within a few minutes which
was very quick when compared to a few hours or days taken by their competitor companies.
This concept and approach gave ford an edge over its competitors. It was extremely
successful and allowed Ford motors to produce 15 million + Model T cars between 1908 and
1927. Due to its success rate this model was adopted by the US Military in world War II.

Fiji Toyota studied Ford’s production system and thought that this mass production approach
will not be able to help Toyota as the consumers of Japanese market wanted diversity and
exclusive products. Hence, he concluded that mass production as a concept could provide
successful results in a more expanded market compared to what Japan was at that time.
There was immense diversity in the Japanese car consumer market as the clients wanted a
range from the most luxurious vehicles to the most compact cars. Ford’s approach could not
cater to the voice of the customers of the Japanese Market. Toyota and Taiichi Ohno then
collaborated to develop a new production approach.
They realized that through right-sizing machines for the actual required volume and
introducing self-monitoring machines, they can make products faster, lower in cost, higher in
quality, and most importantly higher in variety. They eventually did face the challenge of
trading off between productivity and quality.

Principles of Lean:

In 1991, James P. Womack, Daniel T. Jones and Daniel Roos wrote a book titled – “The
Machine that changed the World”. This book was the first of its kind to introduce the
Principles of Lean.
Womack and Jones tried to draw the attention of the executives of the company and everyone
in a leadership position to think about the below things if they are willing to transform the
functioning of their company:
 The value being added by going ahead with an approach. What value addition was
being made to the lives of its clients while achieving their own organizational goals.
 What can the assessment criteria be for an organization to ensure that each step is
capable, valuable, optimized & flexible.
 How can the employees involved in a company contribute to a business purpose? The
aim was to understand and ensure that everyone was actively engaged in operating the
operations correctly & were making progress.
 Fig: Lean Principles

What are Lean tools?

Muda, which means "uselessness," is the Japanese word for waste. Lean tools are aimed to
minimise Muda and increase quality control in enterprises. In other words, Lean tools aim to
eliminate inefficient processes. Lean tools are used in a variety of industries, from
manufacturing to engineering to finance, and they are frequently combined with Six Sigma
approaches. When the two are combined, the result is Lean Six Sigma, a process for reducing
and managing various sorts of waste in businesses. Though there are a variety of Lean tools
available, this post will focus on seven of them and how they might be used.

Lean Tools and their Application

Some of the Lean tools are as follows:
Bottleneck Analysis:
Bottleneck analysis is a method of assessing the processes and workflows involved in
developing a product or service in a methodical manner. Bottleneck analysis can be used to
solve both present and future challenges by identifying and addressing operational and
process restrictions. Companies may save time, energy, and money by identifying and
eliminating bottlenecks using Lean concepts. For example, bottlenecks generated by
inefficient procedures can be overcome by streamlining and improving those processes; if the
bottleneck is caused by a lack of resources, you may need to hire more people or invest in
technology.
Just-in-Time (JIT):
Just-in-time manufacturing is an on-demand method that allows producers to start producing
a product only when a consumer has ordered it. Professionals that follow Lean concepts
might think about JIT if their company can work on-demand and limit the risk of just
carrying inventory when it's needed. JIT can be a useful framework for inventory
management, but it can also make it more difficult to meet customer demand if the supply
chain breaks down.
Value Stream Mapping:
A technique derived from Lean manufacturing is value stream mapping. It's used by
businesses to build a visual representation of all the components required to deliver a product
or service, with the purpose of assessing and optimising the entire process. Encouraging
continuous improvement in processes, enabling culture change within a company, and other
ways can be used to apply value stream mapping to your organisation.
Overall Equipment Effectiveness (OEE):
The overall equipment effectiveness (OEE) metric assesses how much of the projected
productive time is used for productive purposes. Consider this scenario: You plan to work on
a project for an hour, but you spend 20 minutes of that time answering a client call, resulting
in a 67 percent OEE. Companies use OEE to boost production effectiveness and execute
effectively and efficiently by creating realistic performance baselines—all while maintaining
quality requirements. Companies save money and time because of this efficiency.
Plan-Do-Check-Act (PDCA):
Plan-Do-Check-Act, often known as the Deming Cycle, is a scientific technique for
managing change. Dr. W Edwards Deming created it in the 1950s. There are four parts to the
PDCA cycle: Plan, Do, Check and Act. Lockheed Martin employed PDCA to improve the
efficiency of their material management process. Its capacity to shorten the time it takes to
shift parts from the receiving department to the stock department was one of its award-
winning achievements. Originally, this process took 30 days, but it was cut down to just four
hours.
Error Proofing:
Poka-yoke, or error proofing, is a common process analysis tool that is founded on the
principle of prevention. Poka-yoke, according to Business Map, a project management
software business, focuses on ensuring that the necessary conditions exist before any process
is implemented. Defects and human mistake are less likely to occur as a result of this
procedure.
New Trends in Lean & its Future

While it is critical for lean consultants in organizations to keep up with current trends in lean
manufacturing, it is difficult to keep up with technological advancements and new
opportunities for businesses. For example, new warehouse cart technology is available that
reduces waste while also being more efficient and cost-effective. Here are five new lean
manufacturing trends that we believe you should be aware of:

 Strength based Lean Thinking - The rational approach to lean has a different focus
than the strength-based approach to lean. It teaches how to identify what is already
working efficiently and generates value in existing processes and systems, rather than
focusing on what isn't working or inefficient. The strength-based approach to lean is
easier to work with and more long-term sustainable.
 Lean Labor - Manufacturers can benefit from lean labor by better aligning
employees with production demand. For example, scheduling applications, which are
an important part of a larger workforce management solution, assist shift supervisors
in putting together the right mix of employees and skills for each shift. Not only does
this increase total production and help meet revenue goals, but it also helps reduce
overtime costs for any replacement workers who may be needed to fill a gap.
 3D Printing & Lean - Manufacturers can benefit from lean labor by better aligning
employees with production demand. For example, scheduling applications, which are
an important part of a larger workforce management solution, assist shift supervisors
in putting together the right mix of employees and skills for each shift. Not only does
this increase total production and help meet revenue goals, but it also helps reduce
overtime costs for any replacement workers who may be needed to fill a gap.
 IOT & Lean - This fourth industrial revolution will not see the end of lean
manufacturing, on the contrary. IoT enables a truly lean enterprise by providing better
metrics to drive increased efficiency and productivity, tighter integration with key
clients and suppliers, better coordination between divisions, and both increased
manufacturing safety and reduced downtime.
 Green Manufacturing Driven by Lean - Green manufacturing is a method of
production that uses research and process design to reduce waste and pollution. It's
also a method for promoting a long-term approach to producing products and services
that don't harm the environment or people in general. Goals for green manufacturing
also aim to protect natural resources for future generations. Green manufacturing has
several advantages, including a positive public image, cost savings, and promotion of
research and design.
Future Business Trends

 Integration of AI - AI is everywhere, and the possibilities for its use are endless.
Because AI's implications provide customers with a better experience, many
businesses have begun to restructure their products and services around AI in order to
expand their customer base.
 Virtual Reality - Teaching and training will increasingly incorporate virtual reality
features as a result of increased innovation. From engineering to medical education,
there's a lot to learn. Virtual reality gamification will be the most effective method of
training army and defense personnel in the future.
 Block Chain - Various industries, such as shipping and logistics, financial services,
healthcare, energy, government works, and consumer service companies, are
successfully implementing block chain technology. Banks have begun to adopt digital
transaction methods and block chain patents all over the banking industry.
 Energy Management - Renewable Energy Technology is the next big thing in the
world of technology. Renewable energy development will no longer be limited to
battery charging.
The energy industry will have to provide more flexibility in terms of allowing energy
companies to balance supply and demand. To support the smooth operation of
technology, large amounts of renewable energy will be required.

Lean gets out of Manufacturing Floor

 When Toyota met Amazon, it created a lot of buzz. Lean is no longer limited to the
manufacturing industry.
 It has forayed into the service industries, such as health care, education, hotel and
restaurant finance, and software development, among others.
 The shrinking thought process no longer exists. In any industry, the future of lean has
narrowed the list of possible failures and waste.
 The work line of providing the right service to the right customer at the right time has
broadened the horizons of this Japanese concept and made lean's future bright. 
Linking Lean Management & Industry 4.0

There is a lot of emphasis to link Lean Management & Industry 4.0 as both the ideas have
similar goals which is adding value.
In 1988, Ohno introduced Just in Time (JIT) and autonomy (Jidoka) as supporting tools for
Lean Management. These concepts can also be supported by a digital supply chain.
The process of implementing Lean is not as simple as it is theoretically. Every company is
different and hence so are the implementation processes and approaches taken by leadership.
Some examples which show how simple lean techniques can be adopted to increase
efficiency are as follows:
 A cable manufacturing company wanted to reduce set-up times and shorten lead time
to market. A lean team found ways to streamline machine set-up and changeover
requirements. A scheduling system was installed to enhance just-in-time
manufacturing and upstream balance production of parts with downstream
manufacturing and assembly.
o Results: Machine set-ups that once averaged five hours per machine were
reduced to 35 minutes, adding about five hours of additional up-time per
machine per day.
 A printing company was struggling with late orders and long lead times. Inventory
piled up in its warehouse, with more than 10 percent of the finished product being
thrown away. To improve efficiency, a lean team was assembled to map the value
stream and identify waste that could be removed from the workflow. 5S (visual
workplace) was also used to maximize workflow before deploying cellular
manufacturing systems.
o Results: On-time delivery increased to 95 percent with much-shortened lead
times; improved inventory management resulted in less waste of finished
product.
 A manufacturer used an incoming warehouse for large volumes of raw materials.
Operational costs were high, including three full-time material stagers who unloaded,
stored, and delivered the materials to assembly lines as needed. Management wanted
to eliminate the warehouse without slowing down production. A lean team worked
with suppliers to design point of use Kanban system for just-in-time manufacturing.
Staff was also trained in flow manufacturing and 5S workplace organization.
o Results: The warehouse was no longer needed for raw-material storage and
converted for other value-added activities. The three stagers were trained for
higher-level positions.
References

https://theleanway.net/what-is-lean
https://www.tandfonline.com/doi/full/10.1080/23311975.2020.1781995
https://www.asme.org/topics-resources/content/7-examples-of-lean-manufacturing-in-action
https://www.newcastlesys.com/blog/five-new-trends-in-lean-manufacturing-you-will-want-
to-know-about
https://www.henryharvin.com/blog/future-of-lean/
https://www.purdue.edu/leansixsigmaonline/blog/lean-tools/