Lesson 01 Introduction

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lean management

Text of Lesson 01 Introduction

  • Lean Management - Introduction

    1

  • 2

    Agenda

    Introduction What is Lean? Its Roots Success and Benefits Challenges

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  • 4

    Overview of Lean Principles of Lean

    Types of Waste Lean Journey

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  • 5

    Overview of Lean

    Creating more value for customer with fewer resources 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

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  • 6

    Principles of Lean

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    1. Identify Value

    2. Map Value

    Stream

    3. Create Flow

    4. Establish

    Pull

    5. Seek Perfection

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  • 7

    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

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  • 8

    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 enterprise Lean network

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    1 2

  • 9

    Lean at Ford Toyota Production system

    JIT (Just-in-Time)

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  • 10

    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

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  • 11

    Toyota Production System (TPS)

    Based on Fords 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

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  • 12

    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

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  • 13

    Lean Successes and Benefits

    Efficiency Business Model Fit Cash Flow Improvement Increased Capacity for Revenue

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    Profit

    Attract & Retain Customers

    Employees

    Engagement & Morale

  • 14

    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

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  • 14

    Cash Flow Improvement

    Reduced inventory No waiting Space reduction Cycle time reduction Reduced waste Reduced defect

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  • 15

    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

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  • 16 Simplilearn Solutions

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    Process Changes Cause a Rethinking of Process Flow Disruptions, Downtime, Design Failures

    Low volume/High Mix High VariabilityCustomization, Demand

  • 17

    Process Changes Cause a Rethinking of Process Flow

    Process Input Processing Output

    Process changes Process flow In-process metrics Training

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  • 18

    Disruptions, Downtime, Design Failures

    Process change Disruptions Downtime Design failures

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  • 19

    Low Volume/High Mix

    Toyota production system High volume/low mix manufacturing Low volume/high Mix Needs Example

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  • 20

    High Variability Customization, Demand

    Customer demands Customization Made-to-order Variability Support and maintenance

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  • 21

    Summary

    Lean overview Types of waste History Successes and challenges

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  • 22

    Quiz-1

    1. Lean manufacturing is a: A. Method for reducing labor cost B. Means to improve responsiveness to the customer C. Efficiency improvement technique D. Set of tools designed to improve productivity

    2. The main objective of Lean manufacturing is to:

    A. Produce goods using less resources B. Keep labor costs as low as possible by using more of other resources C. Produce products with fewer options to simplify consumer choices D. Outsource much of manufacturing in order to focus on final assembly

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  • 23

    Answers-1

    Answer 1: The more appropriate right answer is C. Lean manufacturing is efficiency improvement technique, once this is achieved, it will help in improving productivity, becoming more responsive to customers and reduce cost. Answer 2: The right answer is A. The main objective of Lean manufacturing is to produce goods using less resources.

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  • 24 Simplilearn Solutions

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