LEAN MANAGEMENT

WHY LEAN MANAGEMENT?

Economic slowdown Mounting costs of crude oil and competition Need to improve productivity, response time and cut costs

So Japanese manufacturers developed a set of tools and techniques that addressed many of these requirements- collectively known as Lean Management techniques.

WHAT IS LEAN MANAGEMENT?

It is the process by which the continuous efforts of all concerned parties enable an organization to create a value stream by eliminating waste from the system.

JIT (waste elimination)Highly effective in reducing inventory levels. Improves cash flow and reduces space requirements.

KANBANmethod of regulating the flow of goods based on automatic replenishment through signal cards that indicate when more goods are needed.

WASTE ELIMINATION AS A CORE LOGIC OF JIT

UNREALISTIC SCHEDULES

LACK OF TRAINING

MACHINE BREAKDOWN

BEHAVIOURAL CONSTRAINTSDEFECTIVE MATERIAL

POOR QUALITYBOTTLENECKS

INADEQUATE INFORMATION

WATER-FLOW ANALOGY OF A MANUFACTURING SYSTEM

PULL LOGIC OF LEAN MANAGEMENT

Pull-type manufacturing means “make to order”. Actual demand is a trigger for pull manufacturing. It works with the supermarket logic, as

Nothing will be produced until it is needed

Need is created by an actual demand

When an item is sold the market pulls a replacement from the last position in the system

This triggers an order to the production line

Hence production starts.

KANBAN

In the traditional Kanban method, operators use visual signals to determine how much they run, and when to stop or change over, informs staff of problems and who they can help.

The process replaces forecasted usage with actual usage so that there is very little work-in-progress (WIP) material.

TWO TYPES OF CARDS:

1. P-KANBAN-

serves as the authorization for production of the no. of item indicated in the kanban.

2. C-KANBAN-

serves as the authorization to move from one process to another.

LEAN MANUFATURINGIn JAGUAR ( foRd cAR )

CASE STUDY

INTRODUCTION

Case study focuses on the way in which Jaguar(ford), one of the world’s most prestigious car manufacturers ,

has employed lean manufacturing of Jaguar S-Type production line at its Castle Bromwich factory in Birmingham.

The existing system included:

A hierarchical approach with one supervisor taking responsibility of 30 production line workers.‘Tell and do’ approach

NEW SYSTEM

VISUAL FACTORY / VISIBLE MANGEMENT

VISBLE MANAGEMENT / VISUAL FACTORY

A system of ‘visible management’ has been introduced at Castle Bromwich to enable everyone involved in the process to understand how individual parts

of the plant are performing so they can contribute to meeting performance requirements.

CONTROL BOARDS

reveals the daily production target for each production line and the performance against this target

At any one time anyone on the production line can see where they are in relation to target

each line worker completes their specialist tasks to the highest quality before the car moves to the next position on the line.

If a worker is having a problem they pull a cord which alerts their team leader who will provide assistance

However, if the problem cannot be immediately solved the whole line will halt and then wait while the problem is solved.

The running total is recorded on Control boards indicating the performance of each line.

OPEN INFORMATION CENTERS

OWNERSHIP OF WORK

The responsibility of each worker is outlined in a series of work elements which areShown in a vertical column on a Yamazumi board which is a flat white screen

The value added activities of each employee are shown in green and non-value added activities in red

The height of each vertical element represents the amount of time needed to carry out the element e.g. nine seconds.

Matching supply to demand

JUST IN TIME

groups of employees had focused on set

processes in the production of Jaguar cars using batches of

components.

Traditional way

cramped working environment and less floor space.

cut down stocks of components in the workspace to the

numbers required to keep production

flowing smoothly

New wayTeams press a signal button to call for fresh stocks when they are required.

A quick response from a central store enables new parts to arrive at work stations ‘just-in-time’ for them to be used

BENEFITS OF JIT

CONCLUSION

Lean production has enabled Jaguar to cut out waste in the production of the Jaguar S-type at Castle Bromwich. This involves working more effectively with TAKT time (the time available to produce each car).It has enabled jaguar to effectively develop cars with less resources, time and wastes.

THANK YOU

RACHITA KOCHHAR12BBS0061