What is Lean?
→
Overview of Lean → Principles of Lean
→Types of Waste →Lean Journey
Overview of Lean
√
Philosophy: To provide perfect value to the customer through a perfect value
creation process that has zero waste
√
Lean reduces cost, improves quality, and speeds delivery by eliminating
non-value-added activity in a process by identifying and eliminating waste
√ Lean is
not a tactic or a cost reduction program, but a way of optimizing end to end
processes
Principles
of Lean
Types of Waste
√
What is waste?
√
Non-value-add activity
√ Some
types of waste with examples
•Anything that could have
been avoided
•Customer is not willing to
pay for it
•Defects/rework
√
The 7 types of waste
√
Muda (Japanese word
for waste)
√ Uncommon
common sense
Lean Journey
√
Lean journey is on the principle “I will believe
it when I see it”
√
Lowering the tide and uncovering more reefs that
can sink the boat
√ Three
stages of Lean journey
•Lean operations
•Lean network
Root of Lean
Lean at Ford
Toyota Production
system
JIT (Just-in-Time)
Lean at Ford
√
Henry Ford (at Highland Park, MI USA) in 1913
√
Car “Model T”
√
Integration of entire production process
√ Flow
production
•Interchangeable parts
•Moving conveyance
•Automated assembly line
•Fabrication steps
•Go/No-Go gauge
√
Model T (one color, one specification)
√ Need
for variety
Toyota Production
System (TPS)
√
Based on Ford’s original thinking
√
Rebuilding Japanese economy after World War II
(1930)
√
Kiichiro Toyoda, Taiichi Ohno, and others at
Toyota
√
Series of simple innovations to improve process
flow and provide variety in product offerings
√
Focus on improving end to end processes rather
than optimizing individual machines
√ Result:
Low cost, high variety, high quality, and very rapid throughput times to meet
customer desires
Just-In-Time (JIT)
√
Introduced by Ford
√
Supply-chain/ production/inventory strategy
√
Demand-pull system
√
Get the right thing at the right time at the
right place
√
Relies on signals between processes to keep
things moving
√
Requires producers to accurately forecast demand
and use integrated production management tools
√ Saves
warehouse space, inventory cost and prevents obsolete inventory, resulting in
higher ROI
Lean Successes and
Benefits
√
“Efficiency” Business Model Fit
√
Cash Flow Improvement
√ Increased
Capacity for Revenue
“Efficiency”
Business Model Fit
√ Business
Model
•Employees
•Customers
•Profits
√ Higher
Efficiency
•Do More with less
•“Just Enough” in
everything
•No more band aid solutions that become future problems
√ From
managing numbers to managing process
Cash
Flow Improvement
√
Reduced inventory
√
No waiting
√
Space reduction
√
Cycle time reduction
√
Reduced waste
√ Reduced
defect
Increased
Capacity for Revenue
√
Attract and retain customer
√
More with less
√
Fewer support calls
√ Lean
increases capacity
•Your process can produce
more with the same number of people
•Your process can produce the same amount with fewer people
Its Challenges
Process Changes
Cause a Rethinking of Process Flow
Disruptions,
Downtime, Design Failures
Low volume/High Mix
High
Variability—Customization, Demand
Process
Changes Cause a Rethinking of Process Flow
√ Process
•Input
•Processing
•Output
√
Process changes
√
Process flow
√
In-process metrics
√ Training
Disruptions,
Downtime, Design Failures
√
Process change
√
Disruptions
√
Downtime
√ Design
failures
Low
Volume/High Mix
√
Toyota production system
√
High volume/low mix manufacturing
√
Low volume/high Mix Needs
√ Example
High
Variability – Customization, Demand
√
Customer demands
√
Customization
√
Made-to-order
√
Variability
√ Support
and maintenance
Summary
√ Lean overview
√ Types of waste
√ History
√ Successes and challenges
To be Continue
Very Informative post :)
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