...Lean Manufacturing “Lean” is a term that was coined in the late 1980s based on a study of the Toyota production system. It is based on the concept of continuous improvement of both the process and the product, while eliminating non-value added aspects of the process. Focusing on the value added parts of the process, a set of principles and tools for reducing waste (“muda”) in production process was developed. Lean also identifies the waste created by overburden (“muri”) and uneven flow (“mura”). Improving the “flow” creates a more efficient process. By creating better flow, problems surface, and waste is eliminated by eliminating inefficiencies. Eliminating waste and creating efficient processes improves quality and reduces production time and cost. Muri can be eliminated in the preparation and planning process. It concentrates on what work can be avoided by designing an efficient process. During implementation, the focus is on eliminating fluctuations in scheduling or operations or mura. Once the process is in place muda is discovered and addressed by determining the root causes of the waste. These are then viewed in the context of the process and tied back to muri and muda and remedies are planned and implemented for the next project and the cycle is repeated. Seven types of waste are identified: 1. Defects The cost of replacing or reworking products is enormous. The goal should be to identify defects before the customer receives the products, thus avoiding...
Words: 2081 - Pages: 9
...MSc IE LEAN MANUFACTURING Profesor Madya Dr. Muhamad Zameri b. Mat Saman FKM Dr Zameri 1 TRANSFORMATION PERIOD EMPHASIS STRATEGY 60’S How to do more Mass Production p 70’s How to do it cheaper Automation 80’s How to do it better QC, TQM, QFD q 90’s How to do it quicker IE 2000’s How to do it with less ???? Dr Zameri 2 Options for Increasing Contribution Marketing Option Current Sales Cost of Goods Gross Margin Finance Costs Subtotal Taxes at 25% Contribution $100,000 $100 000 – 80,000 20,000 – 6 000 6,000 14,000 – 3,500 $ 10,500 Finance/ Accounting Option Increase I Reduce R d Sales Finance Revenue 50% Costs 50% $150,000 $150 000 – 120,000 30,000 – 6 000 6,000 24,000 – 6,000 $ 18,000 $100,000 $100 000 – 80,000 20,000 – 3 000 3,000 17,000 – 4,250 $ 12,750 Dr Zameri Lean Option Reduce R d Production Costs 20% $100,000 $100 000 – 64,000 36,000 – 6 000 6,000 30,000 – 7,500 $ 22,500 3 Changing of Mind Set Selling Price = Cost + Profit Profit = Selling Price – Cost g The focus should be on reducing cost g The best way to reduce cost is to remove the waste Dr Zameri 4 Value Price Price Price Profit Price Profit Cost Cost Traditional thinking T diti l thi ki Cost + Profit = Price Lean thi ki L thinking Price - Cost = Profit Dr Zameri 5 Lean Operations Developed by the Toyota Motor Company p y y p y To compete with...
Words: 2423 - Pages: 10
...performance times in half because he introduced athletic training and much like chapter 3 in our book standardized (organized) practices to the process thus turning crew members into athletes. The introduction of pit crewmembers training as athletes revolutionized the motorsports industry and has made the sport what it is today. When Papa worked at HMS they were known for having one of the most intensive training programs in racing history. In addition to having athletic team members they also sought out motivated individuals who could transition their skills from athleticism into observation and skill under pressure in a competition. The pit crew team is much like the book we are reading in class where a cell in a manufacturing company works like this team to lean out their process and gain throughput but also cut down Muda or waste and improve cycle time. Crews have been known to train hard in the off-season over the winter. Team members lose weight and get physically fitter in the process just to obtain their goals. Some guy’s even train in the gym continuously. Whether it was the person or the machine Papa studied ways to enhance the performance of the overall process. He introduced new improvements one after the other, one improvement might be less dramatic than the first but it may not necessarily be less important in the overall result or...
Words: 2240 - Pages: 9
...LEAN MANUFACTURING Lean manufacturing is a management philosophy focusing on reduction of the seven wastes to improve overall customer value: • Over-production • Transportation • Inventory • Motion • Waiting time • Processing Itself • Defective Product (Scrap in manufactured products or any type of business.) By eliminating waste (muda), quality is improved, production time and costs are reduced. To solve the problem of waste, Lean Manufacturing has several "tools" at its disposal. These include constant process analysis (kaizen), "pull" production (by means of kanban) and mistake- proofing (poka-yoke). Key lean manufacturing principles include: • Pull processing: products are pulled from the consumer end (demand), not pushed from the production end (Supply) • Perfect first-time quality - quest for zero defects, revealing & solving problems at the source • Waste minimization – eliminating all activities that do not add value & safety nets, maximize use of scarce resources (capital, people and land) • Continuous improvement – reducing costs, improving quality, increasing productivity and information sharing • Flexibility – producing different mixes or greater diversity of products quickly, without sacrificing efficiency at lower volumes of production • Building and maintaining a long term relationship with suppliers through collaborative risk sharing, cost sharing and information sharing arrangements. Lean is...
Words: 420 - Pages: 2
...Action Plan – Implementing a Lean Transformation’ LEAN Final Project Alex Scholfield February 29, 2012 Summary Lean manufacturing can add significantly value to an organization by streamlining processes through the identification and elimination of muda or waste. Introduced by Toyota, Lean is more than just a tool, but a philosophy that needs to be adopted and incorporated into the culture of the organization. It is very important that the organization can see that leadership have bought in to the approach and are willing to support Lean. Numerous examples exist that demonstrate failed attempts at implementing Lean. It is important that organizations appreciate that they cannot simply wake up one day and choose to introduce Lean. It took Toyota many years to develop their culture into one of continuous improvement. For organizations that are new to Lean, the effort required will be significant in order to realize the true value associated with Lean principles. Poor planning will almost certainly result in disappointment and leave a strong negative association with any future Lean attempts along with a big investment with little to no return. With a focus on continuous improvement and continuous flow, manufacturing based on pull rather than push demand will assist organizations in becoming Lean. While Lean is a long journey, it can be one that returns significant value to an organization. What follows is a view of the history of Lean, some of the tools such as...
Words: 6409 - Pages: 26
...order to remain competitive, many major businesses around the world have been trying to adopt lean manufacturing system as a one of the initiatives. The focus of the system is on cost reduction by eliminating non-value added activities. Lean is a mindset focusing on the value creation to the customer with the fewest resources. That is to produce products the customer need, whether it is a product or service, using only the essential resources to create value all the time efficiently. (Liker & Meier 2006) This objective seeks to achieve by focusing on those areas that actually add value from the customer's perspective while aiming to remove all the rest excess does not add the value. Toyota Motor Company has seen as the leading practitioner and the main originator of the lean approach. After successful implementations and great outcomes in quality, cost and service sectors, lean is now considered as a business system or as a culture. Toyota has progressively synchronized all its processes simultaneously by developing practices that has largely formed what we now call lean or just-in-time but which Toyota calls the Toyota Production System (TPS). Today, the TPS is one of the most admired lean manufacturing systems exist. Important for the success of lean systems is continuous improvement in an effort to increase efficiency and reduce waste. (Krajewski et al. 2007; Liker & Meier 2006.) Lean production differs from mass production, so that it pursues to eliminate all the weaknesses...
Words: 993 - Pages: 4
...White Paper Lean Manufacturing Lean Manufacturing Table of Contents Executive Summary.......................................................................................................................................................................................2 Introduction .......................................................................................................................................................................................................4 Lean Manufacturing—So What? .................................................................................................................................................4 Objectives .................................................................................................................................................................................................6 The Manufacturing Challenge .................................................................................................................................................................7 Globalization and Competitive Pressure ................................................................................................................................7 Mass Production to Mass Customization ...............................................................................................................................7 Shortening Product Life Cycles........................................................................
Words: 8925 - Pages: 36
...HERRAMIENTAS Y SISTEMAS PARA OPTIMIZAR LA PRODUCCIÓN Y LA LOGÍSTICA. CONCEPTOS LEAN MANUFACTURING ACTIVITY-BASED COSTING Un sistema de contabilidad que asigna costes a los productos basándose en la cantidad de recursos usados (incluso la cantidad de trabajo, materia prima, horas de la máquina y el esfuerzo humano) para diseñar, pedir o producir un producto. Contrasta con el cálculo tradicional de costes sobre estándares. CUADRO DE MANDD (ANDON BORRAD) Un dispositivo visual en una área de la producción, típicamente un despliegue manual o electrónico que muestra el estado actual del sistema de producción a los miembros del equipo, alertando si surgen problemas en el producto o proceso de manufactura. FABRICACIÓN AGIL Y VIRTUAL (AGILE AND VIRTUAL MANUFACTURING) Reúne habilidades y competencias clave de varias empresas con el fin de satisfacer rápidamente nuevas demandas de clientes. También es una forma ajustada de fabricar, mientras no tenga muchos gastos generales permanentes y se pueda incurrir en tales gastos sólo cuando se necesite. Prácticamente se unen varias empresas para satisfacer una necesidad específica y puntual del mercado, disolviendo la unión una vez satisfecha la demanda. CUADRO DE MANDO INTEGRAL (BALANCED SCORECARD) Metodología para un conjunto equilibrado de medidas de rendimiento de operaciones donde las medidas financieras son solamente un elemento más en el conjunto. Según Kaplan y Norton hay cuatro aspectos que cualquier sistema de medidas...
Words: 5365 - Pages: 22
...1.0 INTRODUCTION The requirement is to review a current article or situation relating to lean manufacturing or Toyota production system. 1.1 PURPOSE The purpose of this assignment will provide an opportunity to evaluate the content and quality of an article or situation. 1.2 DEFINITIONS Andon A visual management tool that highlights the status of operations in an area at a single glance and that signals whenever an abnormality occurs. An andon, which is the Japanese term for “lamp,” can indicate production status (for example, which machines are operating), an abnormality (for example, machine downtime, a quality problem, tooling faults, operator delays, and materials shortages), and needed actions, such as change overs. Five Whys The practice of asking why repeatedly whenever a problem is encountered in order to get beyond the obvious symptoms to discover the root cause. The specific number five is not the point. Rather it is to keep asking until the root cause is reached and eliminated. Heijunka Japanese technique of achieving even output flow by coordinated sequencing of very small production batches throughout the manufacturing line in a lean production or just in time (JIT) system. Jidoka Japanese term that provides machines and operators the ability to detect when an abnormal condition has occurred and immediately stop work. This enables operations to build in quality at each process and to separate men and machines for more efficient work. Jidoka...
Words: 1669 - Pages: 7
...Lean manufacturing, lean enterprise, or lean production, often simply, "Lean," 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. Essentially, lean is centered on preserving value with less work. Lean manufacturing is a management philosophy derived mostly from the Toyota Production System (TPS) (hence the term Toyotism is also prevalent) and identified as "Lean" only in the 1990s.[1][2] TPS is renowned for its focus on reduction of the original Toyota seven wastes to improve overall customer value, but there are varying perspectives on how this is best achieved. The steady growth of Toyota, from a small company to the world's largest automaker,[3] has focused attention on how it has achieved this. Lean manufacturing is a variation on the theme of efficiency based on optimizing flow; it is a present-day instance of the recurring theme in human history toward increasing efficiency, decreasing waste, and using empirical methods to decide what matters, rather than uncritically accepting pre-existing ideas. As such, it is a chapter in the larger narrative that also includes such ideas as the folk wisdom of thrift, time and motion study, Taylorism, the Efficiency Movement, and...
Words: 277 - Pages: 2
...Lean Production at Riordan Manufacturing OPS 571 Lean Production According to Chase, Jacobs, & Aquilano (2006), “Lean production is an integrated set of activities designed to achieve high-volume production using minimal inventories of raw materials, work-in-process, and finished goods” (p. 471). According to lean philosophy, parts move quickly through the manufacturing process in a “just in time” method. The logic behind lean is that nothing is produced until it is sold and needed. Currently Riordan’s entire supply chain methodology is responsive and flexible to their customer’s needs, but they are not practicing lean techniques. Riordan assembles and stores finished fans in a finished goods stockroom awaiting sale. In order to improve quality and productivity and focus more on lean production, Riordan must focus on eliminating waste. One way to eliminate waste is through mass customization. “The key to mass-customizing effectively is postponing the task of differentiating a product for a specific customer until the latest possible point in the supply network… By adopting such a comprehensive approach, companies can operate at maximum efficiency and quickly meet customers’ orders with a minimum amount of inventory” (Chase, Jacobs, & Aquilano, 2006, p. 419). By designing their fans so the customization is done at the very end of the manufacturing process, Riordan can still achieve a high level of production while reducing safety stocks and finished goods...
Words: 332 - Pages: 2
...Time (JIT) and the Lean manufacturing models. Both of these manufacturing models have been used for decades in the manufacturing sector since they have been invented in the 1960s. Currently in the global economy most manufacturing is happening in both South and East Asia, while most of the services for the global economy are happening in the Western Europe and North America (Wild, 2002). There are several factors why it is like this in the world company. For manufacturing industry there are manufacturing models that are being used and for the services there are services models that are being used. The basic concept in manufacturing sector to improve the efficiency of the production is by increasing the production output or decreasing the workforce required (Drury, 2008). Whereas the basic concept in the service sector to improve the efficiency of the services is by adding a new worker that improves the value of the service of the company. That is why when new workers want the join any company they may have to do an interview for that company and explain why the company should chose that worker than any of the others and prove he can improve the company’s service. The JIT manufacturing model has been used a lot in manufacturing and has given Japan manufacturing massive success over the last few decades especially for Toyota (Drury, 2008). The JIT approach model involves continuous commitment to the pursuit of excellence in all phases of the manufacturing system design and operation...
Words: 3076 - Pages: 13
...Lean Manufacturing Assignment-2 By: Yuganshu Jain (2012ABPS695P) Background of The Company: Mahindra & Mahindra Group is one of the prestigious automobile manufacturing organizations in India. With the dual objective of industrial and agriculture growth, Mahindra & Mahindra was established in 1970. Mahindra & Mahindra, is India’s first large-scale project based company with a totally indigenous design, know-how and technology. Mahindra & Mahindra is a leading manufacturing organization manufacturing tractors, harvesting combines, fork lifters etc. Till 1998, the organization did not give much attention to the maintenance work. The machines were being checked and repaired only after the breakdown. But with the industrialization, it became necessary to adopt new concepts to survive in the market. The organization decided to adopt “Total Productive Maintenance (TPM) for its survival. Problems Faced Due To Maintenance The importance of maintenance functions has increased due to its role in keeping and improving the availability, product quantity, safety requirements, as maintenance costs constitute an important part of the operating budget of manufacturing firms. The Company operated at less than full capacity, with low productivity, and the cost of producing products are high. Almost 25-30% of total production cost is attributed to maintenance activities in the factory. Hence the quality of maintenance significantly affects business profitability. There was a lot of variation...
Words: 1191 - Pages: 5
...PCB Manufacturing Printed circuit boards are made by etching or ‘printing’ wires on a copper conductive laminated thin fiberglass or other similar material board. This insulated board is also known as substrate. PCB will function as an electronic circuit as conductive connections are created when active electronic components (e.g.: microchips, transistors) and passive components (e.g.: capacitors, fuses) are mounted on a PCB. There are three basic types of printed circuit boards: i ) single sided PCB ii ) double sided PCB iii) multi layered PCB PCB is commonly used in making electronic devices such as computers, home entertainment equipments, telephones, etc. 1.1 Company Background X Electronics (M) Ltd. is a subsidiary company build in north Malaysia during 1990. X Electronics (M) Ltd. headquarters are in Singapore. It started the Malaysian branch operation in 1991. X Electronics specializes in PCB production process from design and development stages to assembly stages. X Electronic caters flexible production whether it is mass volume or low volume production. The Process [pic] Figure 1 : X Electronics (M) Ltd. (Image taken from Google Image for PCB manufacturing plant layout) X Electronics (M) Ltd. facilities have already applied several lean tools in its PCB manufacturing processes. The company is committed to achieve short lead time delivery and low cost production by optimizing...
Words: 2595 - Pages: 11
...TAKT Time (Group 5) Brief Summary: LEAN manufacturing is a global electronics manufacturing services (EMS) provider located in Flextronics de Mexico (FdM). The company is focused on efficiency and optimization of manufacturing flow. The EMS is a tough business that is driven by thin profit margins. EMS manufacturers rely on leveraging huge economies of scale and purchasing power. These companies focus on return on invested capital (ROIC) as a key metric because it provides a sense of how well a company is utilizing its resources to generate returns. FdM's success relies on how well it can optimize its floor space utilization while increasing capacity. In our case analysis we will examine each of the four different organizations of machinery assuming that the optimal level of production was achieved by introducing the U-shaped cell. Case Analysis: The initial design that was implemented (long conveyor-paced straight line) required having 24 operators assigned per line with a Takt time of 15 seconds. The actual output of acceptable units was 135-138 pieces per hour totaling 1080-1104 per eight-hour shift. This is below design capacity with only 56.25-57.5% utilization. Reasons for inefficiency include: * Periodic maintenance of the conveyor belt, defected products and breaks for operators * Conveyor-pace lines have an even rate of movement, therefore, if some workstations are faster or slower in completing their task in the allowed 15 seconds Takt time, a lag of the whole...
Words: 571 - Pages: 3
