LEAN THINKING
By SUNETH JAYAWARDENE
Learning objectives
• Understand lean as a Manufacturing strategy
• Understand the different production strategies
• Highlight the different types of waste
• Highlight the benefits of Lean-to producers and
customers
What is Lean
• Lean Manufacturing – A way to eliminate waste and
improve efficiency in a manufacturing environment
• Lean focuses on flow, the value stream and eliminating muda,
the Japanese word for waste
• Lean manufacturing is the production of goods using less of
everything compared to traditional mass production: less
waste, human effort, manufacturing space, investment in
tools, inventory, and engineering time to develop a new
product
Therefore
It is “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.”
LEAN Principles
Simply, lean means creating more value for customers
with fewer resources. Lean is a common-sense hands
on approach. 5 Key things done together is lean
1. Identify Value from the customers perspective
2. Improve Flow by identifying and eliminating
bottlenecks
3. Use the Pull Method
4. Drive for continuous improvement.
5. Involvement of people
https://www.youtube.com/watch?v=wfsRAZUnonI
https://www.youtube.com/watch?v=d31RXl9mOO4&
feature=emb_rel_end
Lean and Just-in-Time
• Lean was generated from the Just-in-time
(JIT) philosophy of continuous and forced
problem solving
• Just-in-time is supplying customers with
exactly what they want when they want it
• With JIT, supplies and components are
“pulled” through a system to arrive where
they are needed, when they are needed
Origins
Lean Manufacturing is
sometimes called the
Toyota Production
System (TPS) because
Toyota Motor
Company’s Eiji Toyoda
and Taiichui Ohno are
given credit for its
approach and
innovations
https://www.youtube.com/
watch?v=F5vtCRFRAK0
Lean production
• Eliminating waste in a pull based value
stream of activities with level production (i.e.
even production runs with neither idle time
nor surges in demand) and just-in-time
inventory management
Gemba Kaizen
Gemba - going to the shop floor where the
work actually happens.
Kaizen - constantly look for small ways to
change the workplace for the better
https://www.youtube.com/watch?v=wot9DFzFRLU
https://www.youtube.com/watch?v=U6YXAQANfHc
Muda + Mura + Muri
The concepts of muda, mura, and muri are another
lens through which you can look for waste in your
facility while on a gemba walk
• Muda refers to waste in the most basic sense
• Mura mean unevenness in process or production
caused by wasteful allocations of materials or
people.
• Muri means overburden of assets.
What is the Total
time to produce
one unit?
3 Min 6 Min 3 Min How many units
can they produce
per hour?
What is the Total
time to produce
one unit?
How many units
can they produce
4 Min 4 Min 4 Min per hour?
https://www.youtube.com/watch?v=HZ5HrkN52j8
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https://www.youtube.com/watch?v=HZ5HrkN52j8
Lead time/Total Processing time is the total time of working
TAKT is the drumbeat of production/target rate of production
TAKT =Available time
target Units count
Bottleneck is something that slows down the process.
Eliminating bottleneck is key.
11
Bottleneck <=TAKT
What is Waste?
• Waste is anything that
happens to a product
that does not add
value from the
customer’s perspective
• Products being stored,
inspected or delayed,
products waiting in
queues, and defective
products do not add
value
Seven Wastes
• Overproduction – producing more than the customer
orders or producing early. Inventory of any kind is
usually waste.
• Queues – idle time, storage, and waiting are wastes
• Transportation – moving material between plants,
between work centers, and handling more than once is
waste
• Inventory – unnecessary raw material, work-in-process
(WIP), finished goods, and excess operating supplies
• Motion – unnecessary movement of equipment or
people
• Over-processing – work performed on product that
adds no value
• Defective product – returns, warranty claims, rework
and scrap
Identify the waste….
Lean Manufacturing
Advantages and Disadvantages
• Advantages: • Disadvantages:
• Increased overall • Difficulty involved with
productivity changing processes to
• Reduced amount of floor implement lean principals
space required • Long term commitment
• Reduced manufacturing required
lead time • Very risky process - expect
• Improved flexibility to supply chain issues while
react to changes changing over to lean
• Improved quality
People
• Transition to Lean is
difficult since a company
must build a culture where
learning and continuous
improvement are the norm.
• Success of lean requires the
full commitment and
involvement of all
employees and of the
company’s suppliers.
How People Benefit from Lean
Element Traditional Lean Improvement
Communication Slow & Uncertain Fast & Positive Quality &
Coordination
Teamwork Inhibited Enhanced Effective Teams
Motivation Negative, Extrinsic Positive, Intrinsic Strong Motivation
Skill Range Narrow Broad Job Enrichment
Supervision Difficult and Easy & Localized Fewer Supervisors
Fragmented
How Customer’s Benefit from
Lean
Element Traditional Lean Improvement
Response Weeks Hours 70-90%
Customization Difficult Easy Competitive
Advantage
Delivery Speed Weeks-Months Days 70-90%
Delivery Erratic Consistent & High Up to 90%
Reliability
Delivery Large Shipments JIT as Required Locks in JIT
Quantities Customers
Quality Erratic Consistent & High Delighted
Customers
Summary
• Most of lean manufacturing is common sense!
• Business activities can contain enormous
quantities of built-in waste (muda, friction).
• The greatest obstacle to the waste's removal is
usually failure to recognize it.
• People are the key factor to drive waste
• Lean manufacturing includes techniques for
recognition and removal of the waste.
• This delivers an overwhelming competitive
advantage.
