Operations Management-II Dr. S.Venkataramanaiah  Assistant Professor OM & QT Area IIM Indore, Pigdamber, Rau Indore- 453 331  Email :  [email_address]
Lean Manufacturing
Lean  Manufacturing Implementation  Source :  Mr.  D.S. Viswanath, AVTEC Indore
Manufacturing flow Product/Quantity assessment Process mapping Routing analysis Takt time calculation Workload balancing Kanban sizing Cell layout Standard work One-piece flow Five Primary elements of Lean Manufacturing or TPS Organisation Product focused, multi-disciplined team Lean manager development Labour cross training skill matrix Training Communication plan Roles and Responsibilities
Metrics On-time delivery Process lead time Total cost Quality yield Inventory turns (flow) Space utilisation Travel distance Productivity Five Primary elements of Lean Manufacturing Logistics Forward plan Mix-model manufacturing Level loading Workable work Kanban pull signal ABC parts handling Service cell arrangements Customer/supplier alignment Operational rules Process Control TPM Poka-yoke (error proofing) SMED Graphical work instructions Visual controls Continuous improvement Line Stop SPC 5S house keeping
Takt time example Month 1   2   3 4   5 Demand  200 280 265 215   245  (total =1205) (daily) Avg demand = 1205/5= 241 units/month Variation coefficient = 0.20 (appr) Designed production rate = Avg *(1+ Var coeff)  = 241*1.2 = 290 Takt time = 7hr *60 min /290 = 1.45 min (is the TT for cell)  Takt time (German, Rhythm or beat) Basis for cell design and represents market consumption rate  Reflective of customer demand, every thing in cell is based on takt time Different from cycle time (CT represents capacity) Takt time depends on projected customer demand (not on the capacity) TT= Total time available (per day)/ Designed daily production rate Ex in an 8 hr shift if 30 min for breaks and 30 min for meetings then time available is 7 hrs
  What is Lean Manufacturing ? MORE LESS INVENTORY MORE LESS LEAD TIME MORE LESS SPACE MORE LESS DEFECTS MORE LESS HUMAN EFFORT MORE LESS BREAK DOWN MORE LESS FOLLOW-UP MORE LESS COST LEAN  MEANS LESS LESS = JUST NEEDED
  Customer requirement in focus Production only on demand (demand pull system) Lowest cost & hence better price Average skill in multi process is sufficient Least WIP & lowest throughput time Better adherence to delivery commitments Lean Manufacturing System
  Lean helps in reducing waste in different areas of business  Lean companies have greater flexibility in responding to changing customer needs They have less expensive cost structure that permits these changes without bankrupting the firm. The result  : The companies can offer more models, can bring them to market faster, and can refresh or replace them more frequently than traditional or non-lean organisations. Advantages of Lean  Manufacturing
  Key Themes of the Lean System The Goal is to reduce uncertainty so that people know what to expect. Also quality and quantity of product should be predictable from one hour to the next. Process stability is a must Demands on factory output must be stable Every step in the process must add value, not simply be the checking or repairing of previous step Continuous important rather than problem identification and “fire fighting” Have a mind set that there is always a better way to do everything
  Lean Production in Factory Management Lean Factory Management Process design Planning & Process Control Techniques Support Routines Analytical Tools & techniques Behavioral & Organizational Underpinnings
  Process Design Product flow Multi-Process/ Multi-Machine Handling Pokayoke - quality at source Value - Added work One - Part Processing through sequential Operations Processing Through Sequential Operations work Place / Work Cell Arrangements Quick Set-Ups Miscellaneous Support elements Process Design for Lean Manufacturing
  Key for Continuous Improvement A Constant focus in internal and external customers.  Continual, uncompromising drive for quality. Commitment to continuously improve the process. Problem solving searches for root causes. Problem resolution flows from orderly and detailed data collection and analysis. Use of “ Seven QC Tools ” and P-D-C-A. Most important, continuous improvement is possible only through the people and their eager  intellectual and emotional involvement in the process that enables the lean system to flourish.
  CHANGE  FORM  OR  QUALITY WORK MACHINING ASSEMBLY ETC TRANSPORT (MOVEMENT STORAGE) INSPECTION ETC VALUE  ADDED  WORK ONLY ADDS COST WASTE YES NO Value Added Work
Implementation- An Example
Lean Manufacturing System (LMS) DEMONSTRATOR CELL : TYPE 54 OUTPUT SHAFT Consists of 23 workstations Undergoes multi-various processing Turning Drilling / reaming Milling Shaping Hobbing Rolling Induction hardening Furnace hardening Grinding Assembly  Riveting (by heating)
1. FACING & CENTERING M/C (NEW) 9. THREAD ROLLING-MTR 15 17. GEAREDMOTOR TABLE 2. STC 25 – II 10. HF1 MILLING M/C 18. AWH GRINDER MKL 3. CNC LATHE STC 20 11. FN 2 EH MILLING M/C 19. K 130 P GRINDER 4. AXLE HOLE SPM –TAURUS 12. HF 1 EH MILLING M/C 20. K 30 P GRINDER 5. FN 3 H MILLING M/C 13. FN 2 EH MILLINGM/C 21. FN 2 EH MILLING M/C   6. FELLOWS – RECONDITIONED 14. INDUCTION HARDENING M/C PILLAR 22. SUB ASSEMBLY TABLE 7. HOBBING M/C PSG 15. TEMPERING FURNACE PYROMASTER 23. INDUCTION RIVETTING M/C 8. TEETH CHAMFERING M/C UBIQUE 16. MAGNAFIELD CRACK DETECTER 2 3 18 19 20 1 16 8 7 11 10 17 21 9 4 13 12 5 6 23 22 14 15
Some statistics before Layout update Components (forging) flows in zig-zag manner from machine 1 to machine 23. Components processed in batch size of 400 numbers 2 machines operated by one operator. Machines are not dedicated for output shaft alone. Mostly process oriented layout.
Problems with existing Layout  Process layout More inventory, space, handling More defects and human effort More follow up  More break downs More time and  More cost
Inventory level is more, problems buried (submerged) & accumulate Production flows in spite of problems because of more inventory Problems are not visible & hence cannot be solved Process layout - problems
More Inventory Only when a batch of components completed at a machine (say M1) and then moved to another machine (say M2), hence more components are available at various stages of processing. At any given time 1000/1200 components are in shop floor as in-process inventory HENCE MORE INVENTORY  !
More Space SPACE FOR MACHINE SPACE FOR STORING INCOMING & OUTGOING COMPONENTS TROLLEY SPACE FOR TROLLEY’S MOVEMENT-WIDER AISLES MORE SPACE MACHINE INCOMING TROLLEY OUTGOING TROLLEY MOVEMENT MOVEMENT
More Defects 1 2 3 4 5 6 7 8 Defect produced  in taper  dia. angle Defect in taper dia. angle affects serration & visibly seen at this stage TIME ELAPSED 950 MINUTES (COMPONENTS PRODUCED – 230) HENCE MORE (230) DEFECTS !
More Human Effort Machines continuously run effort is more since person is fully utilized. Person is used in one type of operation and effort is more since work is monotonous. Components moved in bulk (batch quantity) in trolleys through long distances back and forth. Effort is more in material handling. HENCE MORE HUMAN EFFORT
More Break Downs Machines continuously used and hence  no time for preventive maintenance. Machine cleaning is not done as frequently as required. Machine lubrication is not done as scheduled. Proper tools not used for machine accessories & tooling . HENCE MORE BREAKDOWNS
More follow - up Machines positioned far & away. Components processed in batches. Inspection done by quality. Maintenance done by plant engineering. Toolings provided by tool engineering. HENCE MORE FOLLOW – UP REQUIRED TO KEEP UP SCHEDULE
More Cost More inventory. More lead time. More space. More defects More human effort More breakdowns More follow – ups HENCE MORE COST ! COST INCREASED DUE TO
TAKT - Time AVAILABLE TIME TAKT TIME = --------------------------------- (PER SHFIT) REQUIRED CAPACITY 350 MINUTES = ------------------------- = 7 MINUTES 50 NUMBERS
LMS Layout Product – oriented layout Components processed through sequential operations – unidirectional flow Single part processing – no batch Multi – process operation Multi – machine operation Quality at source – self inspection Productive maintenance – self maintenance Good house keeping / work place arrangement – 5S principle Self analysis & correction -  7 tools of QC Continuous improvement – kaizen / SGA Least follow - up
1. Facing & centering m/c (new) 13. FN 2 eh milling m/c 2. STC 25 – ii 14. Induction hardening m/c pillar 3. CNC lathe STC 20 15. Tempering furnace pyromaster 4. Axle hole SPM-taurus 16. Magnafield crack detector 5. FN 3 h milling m/c 17. Geared motor table 6. Follows – reconditioned 18. AWH grinder  mkl 7. Hobbing M/c PSG 19. K 130 p grinder 8. Teeth chambering m/c Ubique 20. K 130 p grinder 9. Thread rolling – mtr 15 21. FN 2 eh milling m/c 10. HF1 milling m/c 22. Sub assembly table 11. FN 2 eh milling m/c 23. Induction revitting m/c 12. HF 1 milling m/c 1 2 3 4 5 6 7 8 9 10 11 23 22 21 20 19 18 17 16 15 14 13 12
Less Inventory Dedicated machines – sequential layout – single part flow. When one part completed on machine M1, it immediately flows to machine M2 At any time only 1 part available at each machine At any given time, in total 54 components are in the cell as in-process inventory. 1:20 reduction in physical in-process inventory HENCE LESS INVENTORY !
Inventory  level is reduced Problems become visible Problems are solved for production to flow smoothly PROBLEMS ARE OPPORTUNITIES LPS Benefits
Less lead time Takt time of cell – 7 minutes Number of work stations – 23 Lead time – 7 x  23 =  161 minutes 2 hours 41 minutes (one component after every 7 minutes) Earlier 50 pieces produced in 3400 minutes Now 50 pieces produced in 504 minutes Therefore reduction in through put time is 85% HENCE LESS LEAD TIME !
Less space Space only for machine No space for storing incomming & outgoing components / no trolleys. No space for trolley movement – narrow aisle for person to walk . HENCE LESS SPACE
Less defects (components produced – 5/6 ) Hence less (5/6) defects ! Since communication is faster, remedial action is  immediate this will enable ZERO DEFECT 1 2 3 4 5 6 7 8 Defect produced  in taper  dia. angle Defect in taper dia. angle affects serration & visibly seen at this stage time elapsed 35  minutes
Less Human effort Machines not continuously run, only required parts produced.  Multi-process / multi - machine operation meaningful & involved work, breaking monotony. Components moved singly while cell member moves to operate adjacent machines. No bulk material movement through long distances. HENCE HUMAN EFFORT IS LESS !
Less breakdowns Common factors leading to Machine Breakdown Dirty / Rusty Machine Lack of lubrication of moving parts  Leaks Loose parts Neglecting first sign of problem (like noise / heat / vibration, etc.) Not following correct operating procedures. In LPS, Cell members understand  Cleanliness lubrication, etc. are taken care of by cell member himself. HENCE LESS BREAKDOWNS !
Less Follow-ups Machines positioned sequentially Single part flow - No planning Self inspection by cell member Productive (Self) maintenance by cell member HENCE LESS FOLLOW – UPS !
Less Cost Cost  reduced due to Less inventory Less lead time Less space Less defects Less human effort Less break-downs Less follow-ups HENCE LESS COST !
Conclusions Implementation of Lean requires effort from many areas (Cross functional in nature) Helps in streamlining the process and thereby productivity improvement It is continuous process and leads to both tangible and intangible benefits

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  • 1.
    Operations Management-II Dr.S.Venkataramanaiah Assistant Professor OM & QT Area IIM Indore, Pigdamber, Rau Indore- 453 331 Email : [email_address]
  • 2.
  • 3.
    Lean ManufacturingImplementation Source : Mr. D.S. Viswanath, AVTEC Indore
  • 4.
    Manufacturing flow Product/Quantityassessment Process mapping Routing analysis Takt time calculation Workload balancing Kanban sizing Cell layout Standard work One-piece flow Five Primary elements of Lean Manufacturing or TPS Organisation Product focused, multi-disciplined team Lean manager development Labour cross training skill matrix Training Communication plan Roles and Responsibilities
  • 5.
    Metrics On-time deliveryProcess lead time Total cost Quality yield Inventory turns (flow) Space utilisation Travel distance Productivity Five Primary elements of Lean Manufacturing Logistics Forward plan Mix-model manufacturing Level loading Workable work Kanban pull signal ABC parts handling Service cell arrangements Customer/supplier alignment Operational rules Process Control TPM Poka-yoke (error proofing) SMED Graphical work instructions Visual controls Continuous improvement Line Stop SPC 5S house keeping
  • 6.
    Takt time exampleMonth 1 2 3 4 5 Demand 200 280 265 215 245 (total =1205) (daily) Avg demand = 1205/5= 241 units/month Variation coefficient = 0.20 (appr) Designed production rate = Avg *(1+ Var coeff) = 241*1.2 = 290 Takt time = 7hr *60 min /290 = 1.45 min (is the TT for cell) Takt time (German, Rhythm or beat) Basis for cell design and represents market consumption rate Reflective of customer demand, every thing in cell is based on takt time Different from cycle time (CT represents capacity) Takt time depends on projected customer demand (not on the capacity) TT= Total time available (per day)/ Designed daily production rate Ex in an 8 hr shift if 30 min for breaks and 30 min for meetings then time available is 7 hrs
  • 7.
      What isLean Manufacturing ? MORE LESS INVENTORY MORE LESS LEAD TIME MORE LESS SPACE MORE LESS DEFECTS MORE LESS HUMAN EFFORT MORE LESS BREAK DOWN MORE LESS FOLLOW-UP MORE LESS COST LEAN MEANS LESS LESS = JUST NEEDED
  • 8.
      Customer requirementin focus Production only on demand (demand pull system) Lowest cost & hence better price Average skill in multi process is sufficient Least WIP & lowest throughput time Better adherence to delivery commitments Lean Manufacturing System
  • 9.
      Lean helpsin reducing waste in different areas of business Lean companies have greater flexibility in responding to changing customer needs They have less expensive cost structure that permits these changes without bankrupting the firm. The result : The companies can offer more models, can bring them to market faster, and can refresh or replace them more frequently than traditional or non-lean organisations. Advantages of Lean Manufacturing
  • 10.
      Key Themesof the Lean System The Goal is to reduce uncertainty so that people know what to expect. Also quality and quantity of product should be predictable from one hour to the next. Process stability is a must Demands on factory output must be stable Every step in the process must add value, not simply be the checking or repairing of previous step Continuous important rather than problem identification and “fire fighting” Have a mind set that there is always a better way to do everything
  • 11.
      Lean Productionin Factory Management Lean Factory Management Process design Planning & Process Control Techniques Support Routines Analytical Tools & techniques Behavioral & Organizational Underpinnings
  • 12.
      Process DesignProduct flow Multi-Process/ Multi-Machine Handling Pokayoke - quality at source Value - Added work One - Part Processing through sequential Operations Processing Through Sequential Operations work Place / Work Cell Arrangements Quick Set-Ups Miscellaneous Support elements Process Design for Lean Manufacturing
  • 13.
      Key forContinuous Improvement A Constant focus in internal and external customers. Continual, uncompromising drive for quality. Commitment to continuously improve the process. Problem solving searches for root causes. Problem resolution flows from orderly and detailed data collection and analysis. Use of “ Seven QC Tools ” and P-D-C-A. Most important, continuous improvement is possible only through the people and their eager intellectual and emotional involvement in the process that enables the lean system to flourish.
  • 14.
      CHANGE FORM OR QUALITY WORK MACHINING ASSEMBLY ETC TRANSPORT (MOVEMENT STORAGE) INSPECTION ETC VALUE ADDED WORK ONLY ADDS COST WASTE YES NO Value Added Work
  • 15.
  • 16.
    Lean Manufacturing System(LMS) DEMONSTRATOR CELL : TYPE 54 OUTPUT SHAFT Consists of 23 workstations Undergoes multi-various processing Turning Drilling / reaming Milling Shaping Hobbing Rolling Induction hardening Furnace hardening Grinding Assembly Riveting (by heating)
  • 17.
    1. FACING &CENTERING M/C (NEW) 9. THREAD ROLLING-MTR 15 17. GEAREDMOTOR TABLE 2. STC 25 – II 10. HF1 MILLING M/C 18. AWH GRINDER MKL 3. CNC LATHE STC 20 11. FN 2 EH MILLING M/C 19. K 130 P GRINDER 4. AXLE HOLE SPM –TAURUS 12. HF 1 EH MILLING M/C 20. K 30 P GRINDER 5. FN 3 H MILLING M/C 13. FN 2 EH MILLINGM/C 21. FN 2 EH MILLING M/C 6. FELLOWS – RECONDITIONED 14. INDUCTION HARDENING M/C PILLAR 22. SUB ASSEMBLY TABLE 7. HOBBING M/C PSG 15. TEMPERING FURNACE PYROMASTER 23. INDUCTION RIVETTING M/C 8. TEETH CHAMFERING M/C UBIQUE 16. MAGNAFIELD CRACK DETECTER 2 3 18 19 20 1 16 8 7 11 10 17 21 9 4 13 12 5 6 23 22 14 15
  • 18.
    Some statistics beforeLayout update Components (forging) flows in zig-zag manner from machine 1 to machine 23. Components processed in batch size of 400 numbers 2 machines operated by one operator. Machines are not dedicated for output shaft alone. Mostly process oriented layout.
  • 19.
    Problems with existingLayout Process layout More inventory, space, handling More defects and human effort More follow up More break downs More time and More cost
  • 20.
    Inventory level ismore, problems buried (submerged) & accumulate Production flows in spite of problems because of more inventory Problems are not visible & hence cannot be solved Process layout - problems
  • 21.
    More Inventory Onlywhen a batch of components completed at a machine (say M1) and then moved to another machine (say M2), hence more components are available at various stages of processing. At any given time 1000/1200 components are in shop floor as in-process inventory HENCE MORE INVENTORY !
  • 22.
    More Space SPACEFOR MACHINE SPACE FOR STORING INCOMING & OUTGOING COMPONENTS TROLLEY SPACE FOR TROLLEY’S MOVEMENT-WIDER AISLES MORE SPACE MACHINE INCOMING TROLLEY OUTGOING TROLLEY MOVEMENT MOVEMENT
  • 23.
    More Defects 12 3 4 5 6 7 8 Defect produced in taper dia. angle Defect in taper dia. angle affects serration & visibly seen at this stage TIME ELAPSED 950 MINUTES (COMPONENTS PRODUCED – 230) HENCE MORE (230) DEFECTS !
  • 24.
    More Human EffortMachines continuously run effort is more since person is fully utilized. Person is used in one type of operation and effort is more since work is monotonous. Components moved in bulk (batch quantity) in trolleys through long distances back and forth. Effort is more in material handling. HENCE MORE HUMAN EFFORT
  • 25.
    More Break DownsMachines continuously used and hence no time for preventive maintenance. Machine cleaning is not done as frequently as required. Machine lubrication is not done as scheduled. Proper tools not used for machine accessories & tooling . HENCE MORE BREAKDOWNS
  • 26.
    More follow -up Machines positioned far & away. Components processed in batches. Inspection done by quality. Maintenance done by plant engineering. Toolings provided by tool engineering. HENCE MORE FOLLOW – UP REQUIRED TO KEEP UP SCHEDULE
  • 27.
    More Cost Moreinventory. More lead time. More space. More defects More human effort More breakdowns More follow – ups HENCE MORE COST ! COST INCREASED DUE TO
  • 28.
    TAKT - TimeAVAILABLE TIME TAKT TIME = --------------------------------- (PER SHFIT) REQUIRED CAPACITY 350 MINUTES = ------------------------- = 7 MINUTES 50 NUMBERS
  • 29.
    LMS Layout Product– oriented layout Components processed through sequential operations – unidirectional flow Single part processing – no batch Multi – process operation Multi – machine operation Quality at source – self inspection Productive maintenance – self maintenance Good house keeping / work place arrangement – 5S principle Self analysis & correction - 7 tools of QC Continuous improvement – kaizen / SGA Least follow - up
  • 30.
    1. Facing &centering m/c (new) 13. FN 2 eh milling m/c 2. STC 25 – ii 14. Induction hardening m/c pillar 3. CNC lathe STC 20 15. Tempering furnace pyromaster 4. Axle hole SPM-taurus 16. Magnafield crack detector 5. FN 3 h milling m/c 17. Geared motor table 6. Follows – reconditioned 18. AWH grinder mkl 7. Hobbing M/c PSG 19. K 130 p grinder 8. Teeth chambering m/c Ubique 20. K 130 p grinder 9. Thread rolling – mtr 15 21. FN 2 eh milling m/c 10. HF1 milling m/c 22. Sub assembly table 11. FN 2 eh milling m/c 23. Induction revitting m/c 12. HF 1 milling m/c 1 2 3 4 5 6 7 8 9 10 11 23 22 21 20 19 18 17 16 15 14 13 12
  • 31.
    Less Inventory Dedicatedmachines – sequential layout – single part flow. When one part completed on machine M1, it immediately flows to machine M2 At any time only 1 part available at each machine At any given time, in total 54 components are in the cell as in-process inventory. 1:20 reduction in physical in-process inventory HENCE LESS INVENTORY !
  • 32.
    Inventory levelis reduced Problems become visible Problems are solved for production to flow smoothly PROBLEMS ARE OPPORTUNITIES LPS Benefits
  • 33.
    Less lead timeTakt time of cell – 7 minutes Number of work stations – 23 Lead time – 7 x 23 = 161 minutes 2 hours 41 minutes (one component after every 7 minutes) Earlier 50 pieces produced in 3400 minutes Now 50 pieces produced in 504 minutes Therefore reduction in through put time is 85% HENCE LESS LEAD TIME !
  • 34.
    Less space Spaceonly for machine No space for storing incomming & outgoing components / no trolleys. No space for trolley movement – narrow aisle for person to walk . HENCE LESS SPACE
  • 35.
    Less defects (componentsproduced – 5/6 ) Hence less (5/6) defects ! Since communication is faster, remedial action is immediate this will enable ZERO DEFECT 1 2 3 4 5 6 7 8 Defect produced in taper dia. angle Defect in taper dia. angle affects serration & visibly seen at this stage time elapsed 35 minutes
  • 36.
    Less Human effortMachines not continuously run, only required parts produced. Multi-process / multi - machine operation meaningful & involved work, breaking monotony. Components moved singly while cell member moves to operate adjacent machines. No bulk material movement through long distances. HENCE HUMAN EFFORT IS LESS !
  • 37.
    Less breakdowns Commonfactors leading to Machine Breakdown Dirty / Rusty Machine Lack of lubrication of moving parts Leaks Loose parts Neglecting first sign of problem (like noise / heat / vibration, etc.) Not following correct operating procedures. In LPS, Cell members understand Cleanliness lubrication, etc. are taken care of by cell member himself. HENCE LESS BREAKDOWNS !
  • 38.
    Less Follow-ups Machinespositioned sequentially Single part flow - No planning Self inspection by cell member Productive (Self) maintenance by cell member HENCE LESS FOLLOW – UPS !
  • 39.
    Less Cost Cost reduced due to Less inventory Less lead time Less space Less defects Less human effort Less break-downs Less follow-ups HENCE LESS COST !
  • 40.
    Conclusions Implementation ofLean requires effort from many areas (Cross functional in nature) Helps in streamlining the process and thereby productivity improvement It is continuous process and leads to both tangible and intangible benefits