Manufacturing Management Assignment

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Lean Manufacturing Assignment

Submitted by:

Apal TY C 3121

Introduction

The concept of Lean Manufacturing can be understood by this simple illustration:


No Value Addition= Unproductive Use of Resources

Waste Creation(Muda)

Waste Elimination

Lean Manufacturing

Lean manufacturing is a production practice that considers the expenditure of resources for any goal other than the creation of value for the end customer to be wasteful, and thus a target for elimination. Working from the perspective of the customer who consumes a product or service, "value" is defined as any action or process that a customer would be willing to pay for. Lean manufacturing, also known as lean production, got its start in the mass production era. Specifically, Henry Fords standardization of tools and parts was the basis for what we call Lean Manufacturing today. Fords system utilized the principles of Scientific Management, it was these founding principles that were used as a basis for lean. Taiichi Ohno, the father of the Toyota Production System, was the visionary responsible for refining Fords system and taking it to the next level. Ohnos system was based around eliminating waste (known in Japan as Muda). Ohno considered anything that did not add value, waste. TPS was solely focused on eliminating waste, or non-value adding activities. The term Lean Manufacturing was coined by a team of MIT researchers in the book The Machine that changed the world published in the 90s. There is a second approach to Lean Manufacturing, which is promoted by Toyota, in which the focus is upon improving the "flow" or smoothness of work, thereby steadily eliminating mura ("unevenness") through the system and not upon 'waste reduction' per se. Techniques to

improve flow include production levelling, "pull" production (by means of kanban) and the Heijunka box.

Principles

The Five Simple Principles for Lean Manufacturing 1. Identify and understand what creates value for the customer: By accepting that only a fraction of the total time and effort expended in the organisation actually adds value for the customer; understanding what the customer wants is the first step towards identifying all the non-value added activities or waste within the organisation. 2. Identify, understand and map all the process steps required to fulfil the customer: By documenting the entire set of activities across all parts of the organisation involved in delivering products or services to the customer allows for an understanding how value is delivered to the customer in the current state makes it possible to identify the wasteful activities that can then be targeted for elimination. 3. Make the value-added actions within processes flow: Flow is about creating value for the customer with the minimum number of process steps with the minimum number of delays between those process steps and the minimum number diversions along the way. The value stream is used to identify wasteful activities to be eliminated; flow concerns the rethinking or reorganisation of the remaining activities to further eliminate waste. 4. Only make what the customer wants or Pull: If one objective for creating flow within processes is to minimize their throughput time. A clear second is to ensure that processes are only initiated when customer demand requires it. Essentially, this may mean only making

products or delivering services at the point the customer demands; just-in-time. As such as many process steps in the value stream should be triggered when there is a firm customer requirement. 5. Pursue Perfection through Continuous Improvement: Creating flow and pull begins with often radical changes to individual process steps, but the gains delivered by Lean principles really become significant as they are applied with increasing scrutiny. As this happens more and more layers of waste become visible and the cycle continues towards a theoretical end point of perfection; where every asset and every action adds value for the customer. Through continuous improvement the organisation should strive for incremental improvements in the value stream every single day. Go here for more information on Continuous Improvement In applying the five principles of Lean your organisation will encourage a culture of continuous improvement; it will become the way things are done instead of thats the way we've always done it. You will be ensuring that every asset and activity are driving towards the overall organisational strategy through constant review of processes and the targeted elimination of waste to ensure that they constantly and consistently deliver value to the customer.

Goals of Lean Manufacturing


Improve quality: To stay competitive in today's marketplace, a company must understand its customers' wants and needs and design processes to meet their expectations and requirements. Eliminate waste: Waste is any activity that consumes time, resources, or space but does not add any value to the product or service. Reduce time: Reducing the time it takes to finish an activity from start to finish is one of the most effective ways to eliminate waste and lower costs. Reduce total costs: To minimize cost, a company must produce only to customer demand. Overproduction increases a companys inventory costs because of storage needs.

Differences from TPS


Whilst Lean is seen by many as a generalization of the Toyota Production System into other industries and contexts there are some acknowledged differences that seem to have developed in implementation. Seeking profit is a relentless focus for Toyota exemplified by the profit maximization principle (Price Cost = Profit) and the need, therefore, to practice systematic cost reduction (through TPS or otherwise) to realize benefit. Lean implementations can tend to deemphasise this key measure and thus become fixated with the implementation of improvement concepts of "flow" or "pull". However, the emergence of the "value curve analysis" promises to directly tie lean improvements to bottom-line performance measuments.20 Tool orientation is a tendency in many programs to elevate mere tools (standardized work, value stream mapping, visual control, etc.) to an unhealthy status beyond their pragmatic intent. The tools are just different ways to work around certain types of problems but they do not solve them for you or always highlight the underlying cause of many types of problems. The tools employed at Toyota are often used to expose particular problems that are then dealt with, as each tool's limitations or blindspots are perhaps better understood. So, for example, Value Stream Mapping focuses upon material and information flow problems (a title built into the Toyota title for this activity) but is not strong on Metrics, Man or Method. Internally they well know the limits of the tool and understood that it was never intended as the best way to see and analyze every waste or every problem related to quality, downtime, personnel development, cross training related issues, capacity bottlenecks, or anything to do with profits, safety, metrics or morale, etc. No one tool can do all of that. For surfacing these issues other tools are much more widely and effectively used.

Management technique rather than change agents has been a principle in Toyota from the early 1950s when they started emphasizing the development of the production manager's and supervisors' skills set in guiding natural work teams and did not rely upon staff-level change agents to drive improvements. This can manifest itself as a "Push" implementation of Lean rather than "Pull" by the team itself. This area of skills development is not that of the change agent specialist, but that of the natural operations work team leader. Although less prestigious than the TPS specialists, development of work team supervisors in Toyota is considered an equally, if not more important, topic merely because there are tens of thousands of these individuals. Specifically, it is these manufacturing leaders that are the main focus of training efforts in Toyota since they lead the daily work areas, and they directly and dramatically affect quality, cost, productivity, safety, and morale of the team environment. In many companies implementing Lean the reverse set of priorities is true. Emphasis is put on developing the specialist, while the supervisor skill level is expected to somehow develop over time on its own.

Lean Manufacturing Processes


5S : Probably one of the easiest lean manufacturing processes to implement. It gets everyones attention, provides immediate benefits and "makes sense" to almost anyone. 5S does not require a lot of training, you might not even need a consultant to get started. There is a great deal of training material available online, such as powerpoint presentations, videos, ebooks, and software to provide methods and examples. Kaizen: This is Toyota's famous tool for continuous improvement. The idea is that everyone in the organization re-examines their work and improves it in small ways within their control. Mini-Kaizens are like raindrops that add up to make a flood. This lean concept is quite useful and easy for management to implement. Value Stream Mapping: Learn how to identify those areas that are producing waste and develop a map to improve, using lean manufacturing methods. Once learned, this becomes an internal process that changes the work environment permanently. Many companies have used this concept to learn just where they currently are, and how to get where they want to be. A great solution that can get people involved. Six Sigma: This is a method that enables you to measure your processes in order to improve your bottom line. Once you get things organized, decide to continuously improve your processes, and identify areas of waste, you need a way to monitor your progress. This engineering system keeps you on-track by monitoring your processes. You use real-time examples from your own company to create track your programs.

How do you begin the lean manufacturing process?


Everyone in the organization will require significant training. You will need to develop an overall strategy and training plan and recognize that this is a major commitment from the

management down to the lowliest employee. The following steps can be followed by the organization which wants to practice Lean Manufacturing: Determine which aspects of lean manufacturing apply to you, prioritize according to your needs and abilities Categorize your people into groups according to similar training needs Identify your programs and make a matrix, or chart Decide whether you will hire an consultant or do it in-house Develop a time frame or schedule according to work area or personnel Prepare an immediate schedule and begin!

Benefits of Lean
Lean essentially aims to compress time required to deliver value to the customer. Typically, if you quarter lead-times, you will double productivity and reduce costs by 20%. This is known as the :2:20 rule. Typical results are as follows:

Halving of lead-times; doubling of stock turnover 30% to 50% reduction in floor space requirements 20% to 40% increase in Overall Equipment Effectiveness (OEE) 20% to 25% labour productivity gains Reduction in administration and co-ordination roles

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