Lean fundamentals
- 1. Topics • WHAT IS LEAN • HISTORY OF LEAN • LEAN PRINCIPLES • TYPES OF WASTES • LEAN SUCCESS AND BENEFITS • LEAN CHALLENGES
- 2. WHAT IS LEAN Lean is set of principles to perform certain activities that reduces waste to add/increase customer value. Motto behind Lean was “Offer higher quality, and more affordable products in less time”
- 3. LEAN HISTORY Roots of the lean are derived from Toyota Production System After world war, Japanese economy was rebuilding and based on Ford’s original thinking, series of simple innovation steps we implemented. These innovation steps were focused on improving end to end process rather than optimizing individual machines. The steady growth of Toyota, from a small company to the world's largest automaker, made world think how it has achieved this success. From this success, Lean principles came into picture.
- 4. Lean Principles Identify Value Map Value Stream Create Flow Establish Pull Strive Perfection
- 5. Lean Principles Identify Value :Define value from customer’s perspective and express in terms of specific product or service Identify Value Map Value Stream Create Flow Establish Pull Strive Perfectio n
- 6. Lean Principles Map Value Stream :Map all the step: value added and non-value added activities that bring product or service to the customer. Identify Value Map Value Stream Create Flow Establish Pull Strive Perfectio n
- 7. Lean Principles Create Flow : The continuous flow of products, services and information from end to end, through the process. Identify Value Map Value Stream Create Flow Establish Pull Strive Perfectio n
- 8. Lean Principles Establish Pull : Nothing is possible by upstream Process until downstream customer signals a need. Identify Value Map Value Stream Create Flow Establish Pull Strive Perfectio n
- 9. Lean Principles Strive Perfection : The complete elimination of waste ensuring all activities create value For customer through innovation and Continuous improvement projects. Identify Value Map Value Stream Create Flow Establish Pull Strive Perfectio n
- 10. Lean –types of wastes Underutilized skills Wrong Automation Transportation Motion Waiting Defect Over Production Over Processing LEAN WASTES
- 11. Lean –types of wastes Underutilize d skills Wrong Automatio n Transportatio n Motion Waiting Defect Over Production Over Processing LEAN WASTES Any movement of materials, suppliers or resources that doesn’t add value to internal/external customer needs like extra carts, multiple storage locations etc. Any movement of people, resources or machine which doesn’t contribute/add value to product/service like human/machine motion, lack of visual controls Long period of inactivity for people, machine or material waiting for each other leads to waste like late deliveries, people waiting for machine and resources. Producing faster/excess quantity than customer needs leads to waste like improper planning, producing earlier. Investment(money/time) that doesn’t add any value to product/customer are considered as waste like Redundant approvals/Endless refinement. Any work done to rectify defects is considered as waste like testing/Re-testing and bug fixes. In today’s world, every organization is moving towards automation but if investment(time/effort/money) is more than that of manual then this is considered as waste. Any skill that is not used up to its full potential leads to waste like over/under qualification, low employee morale.
- 12. LEAN – SUCCESS and BENEFITS Profit Increased Customer Collaboration Increased Employee Morale
- 13. LEAN Challenges Disruptions, Downtime and Design Failure People might not be ready to take new process, this could cause delay in delivery or even design failure because it was designed as per older process. Process changes causes rethinking of process flow Process require input/output and processing. If process changes it will alter any of these things.