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Lean Manufacturing

Lean Manufacturing. Introduction Lean Thinking versus Muda. Muda. Muda means “waste” Any human activity which absorbs resources but creates no value Mistakes which require rectification Production of items no one wants so inventories and remaindered goods pile up

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Lean Manufacturing

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  1. Lean Manufacturing IntroductionLean Thinking versus Muda

  2. Muda • Muda means “waste” • Any human activity which absorbs resources but creates no value • Mistakes which require rectification • Production of items no one wants so inventories and remaindered goods pile up • Processing steps which aren’t actually needed • Movement of employees and transport of goods from one place to another without any purpose • Groups of people in a downstream activity standing around waiting because an upstream activity has not delivered on time • Goods and services which don’t meet the needs of the customer

  3. Lean Thinking • Powerful antidote to muda • Provides a way to specify value • Line up value-creating actions in the best sequence • Conduct these activities without interruption whenever someone requests them • Perform them more and more effectively • Lean thinking is lean because it provides a way to do more and more with less and less • Less human effort • Less equipment • Less time • Less space • Coming closer and closer to providing customers with exactly what they want

  4. Lean Thinking • Make work more satisfying by providing immediate feedback on efforts to convert muda into value • Create new work rather than simply destroying jobs in the name of efficiency • Lean thinking steps: • Precisely specify value • Fully map the value stream for a specific product, and eliminate wasteful steps • Make the remaining, value-creating steps flow continuously • Require complete rearrangement of your mental furniture… • Let the customer Pull the product from you as needed • Continuously improve to reach perfection

  5. Step 1 - Specify Value • The critical starting point for lean thinking • Value can only be defined by the ultimate customer • Only meaningful when expressed in terms of a specific product (a good or a service, and often both) which meets the customer’s needs at a specific price at a specific time. • Value is created by the producer • From the customer’s standpoint, this is why the producers exist • Lean thinking must start with an attempt to precisely define value in terms of specific products with specific capabilities offered at specific prices through a dialog with specific customers • Providing the wrong good or service the right way is muda

  6. Step 2 - Identify the Value Stream • The value stream is the set of all specific actions required to bring a specific product (goods, services, or both) • Through the three critical management tasks of any business: • Problem solving task – from concept through detailed design and engineering to production launch • Information management task – from order taking through detailed scheduling to delivery • Physical transformation task – from raw materials to a finished product in the hands of the customer • Identifying the entire value stream for each product (or product family) is the next step in lean thinking

  7. Step 2 - Identify the Value Stream (cont.) • Value stream analysis will almost always show the three types of actions are occurring along the value stream: • Unambiguously create value • Create no value but necessary with current technologies and assets • Create no value and could be removed • Lean enterprise – a continuing conference of all concerned parties to create a channel for the entire value stream, removing all the muda

  8. Flow • Make the remaining, value-creating steps of the process flow • Redefine the work of functions, departments, and firms • Create single piece flow instead of batch processing • Ensure positive contribution to value creation • Speak to the real needs of employees at every point along the stream so it is actually in their interest to make value flow

  9. Pull • Let the customer pull the product from you as needed rather than pushing products, often unwanted, onto the customer • The demands of the customer become more stable when they know they can get what they want right away • Pull system is more responsive to changes than push systems

  10. Perfection • There is no end to the process of reducing effort, time, space, cost, and mistakes while offering a product which is ever more nearly what the customer wants

  11. SPECIFY VALUE 1 IDENTIFY THE VALUE STREAM 2 4 CONVERT PUSH TO PULL 3 FLOW Lean Manufacturing Cycle • Step 5 – CONTINUOUSLY IMPROVE • Getting value to flow faster always exposes hidden muda in the value stream. • The harder you pull, the more the impediments to flow are revealed so they can be removed.

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