Session on

Lean Manufacturing

M. Ravichandran
Business Excellence
29,30.05.2020, 03,04,06.06.2020 1
 What is LEAN?

Video 1

2
Top 10 companies implemented LEAN
1. Toyota.
2. Ford.
3. John Deere.
- Presence in agricultural, construction, forestry machinery,
technology, services.
4. Parker Hannifin
- Global leader in motion and control technologies. Precision
engineered solutions for Aerospace, Climate Control,
Electromechanical, Filtration.
5. Textron.
- $13.6 billion, multi-industry company employing 35,000
talented makers, thinkers, creators and doers worldwide.
We make things that fly, hover, zoom ... 3
Top 10 companies implemented LEAN

6. Illinois Tool Works.

- Started more than 100 years ago, ITW has become one of
the world’s leading diversified manufacturers of specialized
industrial equipment, consumables and related service
businesses.
7. Intel.
8. Caterpillar Inc.
9. Kimberley-clark corporation
- Indispensable part of life for people in more than 175
countries. Fueled by ingenuity, creativity.
10. Nike
4
 Top Indian companies implemented
LEAN
1. Sundaram Clayton limited
- 2.5~5% cost reduction
2. Bharat Forge
- World’s largest foundry, Became more efficient enterprise after adoption
of LEAN
3. Bajaj Auto, World’s 4th Largest 2 & 3 wheeler manufacturer
– During later 1990s and early 2000s Adopted LEAN to overcome strong
competition & meet growing customer aspiration.
- Company’s topline grown by 100% and bottom line by 10%
- Work force productivity rose by 10 times.
- RM Inventory reduction from one week to half a shift.
- FG inventory was reduced from one month to 3 days
1. - Rejection reduced from 20000 PPM to <2000 PPM.
5
Top Indian companies implemented
LEAN

4. TATA Automobiles
5. Larsen & Toubro
6. Godrej & Boyce, Specialised Engineering
7. Ballarpur industries in paper
8. Pharmaceutical Industries
9. Textile Industries

6
Lean Goals

ELIMINATING NVA8
 LEAN PRINCIPLES

Precisely specify VALUE by specific product from

customer’s point of view, identify the VALUE
STREAM for each product, make VALUE FLOW
without interruptions, let the customer PULL value
from the producer and pursue PERFECTION.

Elimination of Waste, Evolution & Best Example

Video 2 - Boeing
assembly line
9
 LEAN PRINCIPLES

1. VALUE
2. VALUE STREAM
3. FLOW & SMED
4. PULL
5. PERFECTION & STANDARD
WORKS
6. LEAN IMPLEMENTATION
10
What do we do at our Workplace?

• Adding VALUE through Value -Added (VA)

activity
or
• Generating WASTE (MUDA) through Non –
Value-Added activity

11
3M

Required situation

§ Muda

§ Mura

§ Muri

12
 VALUE

☺ Those features or characteristics of

your product or service for which your
customers are willing to pay

☺ Defined by the customer

13
 SEVEN WASTE
The seven (MUDA)
forms of MUDA:

1. Transportation
2. Inventory
3. Motion
4. Waiting
5. Over Production
6. Over Processing
Memory Key Word:
7. Defects TIM WOOD
14
 1. Transportation – Mfg.
Conveyance, Multiple handling and staging of material
all are non-value added activity.
When material moves, shape doesn’t change but cost.

Primary causes Countermeasure

Processes kept too apart. Improve layout to cell. Introduce
Improper design of layout single piece flow.
Fixtures, material kept far away Place the items near point of use.
15
 2. Inventory / WIP – Mfg.
Inventory includes not only finished goods, but also
WIP (Work In Process).

Primary causes Countermeasure

Bulk lot production, inventory Create Flexible production system,
stagnation between work stations, reduce lot sizes, improve set up
lack of flexibility changes
Purchasing of more raw material Place order for commercial terms
than today’s need and buy for consumption 16
 Inventory Turn (IT)
Material Cost of Turn over (Annualized)
ITR =
Current Inventory

Cost of Goods sold (For a defined period)

Or =
Average Inventory for the same period

Eg.: Cost of Goods sold is Rs. 50,00,000

Average Inventory for the year is Rs. 5,00,000 (Beg. Inv – Closing inv.)
IT = 50,00,000/5,00,000 = 10
Ideal inventory turnover ratio is about 4 to 6.
Between 4 and 6 usually means that the rate at which you
restock items is well balanced with your sales. 17
 Inventory Turn – Why important?

Important because total turnover depends on two main

components of performance.
§ The first component is stock purchasing. If larger amounts of
inventory are purchased during the year, the company will
have to sell greater amounts of inventory to improve its
turnover. If the company can’t sell these greater amounts of
inventory, it will incur storage costs and other holding costs.
§ The second component is sales. Sales have to match inventory
purchases otherwise the inventory will not turn effectively.
That’s why the purchasing and sales departments must be in
tune with each other.

18
 Inventory Turn – Why important?

@ 5 % returns, an investment on material of

Rs:100 will earn,
Rs. 5 profit for 1 rotation / year
Rs. 10 profit for 2 rotation / year
Rs. 60 profit for 12 rotation / year

19
0 1 2 3 4 5 6 7 8 9 10 11 12
 3. Motion / Movementmovement
3) Unergonomical – Mfg. and tran
This leads to Risk of injuries (ergonomic), waste of time
& extra resources needed.

No one is paid for

walking.

Primary causes Countermeasure

Difficult access to products / Improve Ergonomics, material
goods, handling / storage devices
Multiple handling Reduce hand offs to minimize
handling
Walking long to get tools and Improve Seiri and Seiton 20
accessories
 4. Waiting 6)
/ Delay-
WaitingMfg.
Making human to wait is a disrespect to them.

Primary causes Countermeasure

Lack of man – machine balance Machine cycle time and operator
manual time to be balanced. Line
balance in assembly areas
Waiting until the line finishes the Go for small lots.
batch product.
Operator not trained in other Provide multi-skill training
processes 21
 5. Over 1)
production – Mfg.
Overproduction
Producing more quantity and ahead of time than
customer / next process needs.
Over production waste will lead to all other wastes

Primary causes Countermeasure

Production to forecast. Batch Produce in small batches. Apply
production & Long set up times. SMED techniques
Traditional productivity measures Adjust to customer requirement
(eg: utilization of the machines than utilization
and operator) 22
 6. Over processing- Mfg.
5) Ineffective Processes
Addition of unneeded steps of work activities, leads
to Waste of time & Extra resources needed.
“There is nothing so useless as doing efficiently that which should not be
done at all.” -Peter Drucker

Primary causes Countermeasure

Complicated / higher capacity Machines with shorter turnaround
machines time
Extra inspections Introduce Poka-Yoke, improve
process capability
Over engineered / extra quality than Precisely define customer values.
23
customer demand Avoid things customer won’t pay for.
 7. Defects
2) /Defects/Bad
Rework – Mfg.
quality
Defective product is a product which does not meet
customer (internal or external) requirements.
Defects are caused

Primary causes Countermeasure

External and Internal customer Use Problem Solving Techniques to
complaints. analyze causes, find out root
causes and take counter measure
Scrap during start-up production Use Poka-Yoke, Create start-up
standards &Train operators
Process rejects / rework Improve process capability 24
 LEAN PRINCIPLES

1. VALUE
2. VALUE STREAM
3. FLOW & SMED
4. PULL
5. PERFECTION & STANDARD
WORKS
6. LEAN IMPLEMENTATION
25
Value Stream Mapping (VSM)

26
What is Value Stream Mapping?
1. Value Stream is the series of activities (the how) creating a flow
of value (realizing the value [product/service] that the customer gets).

2. A way to visualise a product´s flow from the beginning to the end and
draw a map of every process of both the information and material flow
in one map.

3. When a current state map is done, come up with improvements and draw
a future state map.

4. Create an action list where the improvements and responsibilities are

defined.

5. Implement improvements by using PDCA .

27
 Value Stream Mapping (VSM)
Current state map
4 Week- 90
Melte Ltd Forecast Logistics Day Forecast
Parts & Co. Ltd

2000kg container
Weekly Daily 27.600 pcs /Mon
Fax Order 17.600 „Type A
Ship to 10.000 „Type B
order, make 20 pieces box
Weekly Schedule to forecast 2 Shifts
2x Week Daily Ship
Current State Map- Schedule
Including all information and
1x Day
material flows
Too much Isolated
transport Fire-fighting
production Over Scrap and
management
islands production rework
PUSHFinishing
Ingots Die-Casting Assembly Packaging
Shipping
11 days
9600 C/T =15 Sec. 1740
Combine C/T = 30 Sec. 1920 C/T = 50 Sec. 2500 C/T = 18 Sec. 6200
Combine
A C/O = 3 hours A
processes C/O = 0 A C/O = 0 A C/O = 0 A
processes
5450 Avail.=90% 980 Avail.=80% 1080 Avail.=90% 1450 Avail.=95% 3400
PCE=0.005%
B 2 Shifts B 2 Shifts B 2,2 Days3 Shifts
Breakdowns B 1 Shifts B
27.600 Sec. avail. 27.600 Sec. avail. 27.600 Sec. avail.
Value Added
27.600 Sec. avail.
Time = 113 Sec.
11 Days10,9 Days 2,0 Days 2,2 Days 2,9 Days 7,0 Days 28
15 Sec. 30 Sec 50 Sec. 18 Sec Production
Lead Time =36 D
 What for Value Stream Map?

• Value Stream Mapping is a tool for Improvement.

• Allows you to see what is actually happening.

• Gives everyone a clear picture of where

Waste (Muda) is in the Company

• Useful to highlight cost savings, inventory

reductions to help justify investment.

29
 What is a Value Stream?

Value Stream
Finished
Raw
products
material

All the actions currently required to bring

a product through the main flows.

30
 Creating a Value Stream Map

• The current-state map takes multi-dimensional operations

and lays them out in a linear, two dimensional, easy to
interpret picture. The map can be used to
§ Understand and communicate the value-stream
§ Identify opportunities within the value stream
§ To make decision about and plans for the future
• A shortened lead time means less inventory in the
system… less inventory equates to increased flexibility
and decreased obsolescence.
• Shorter lead time increases the number of Inventory
turns.
31
Recap through Quiz1

1. Lean Mfg. Meaning?

2. Lean Mfg. Goal is…

3. ITR=

4. Any 2 causes for Over Production

5. Any 2 causes for Motion waste

6. Future State map is Current State map + _______

32
Where can VSM be applied?
Extended VSM (Seeing the whole)

External Our plant Customer

Supplier

Internal VSM (Learning to see) Cell VSM (Creating Continuous flow)

• Making Material Flow (which ties the above flows together)

• Creating Level Pull (implementing a leveled pull system on
33
facility level)
Mapping steps

Select product family Select one product family

* Understanding of how the

Current state Mapping current flow operates.
(CSM)
* Foundation for the future
state.
Future state Mapping
(FSM) Designing an improved flow.

Plan for implementation of

Action list and
implementation the improvements and the
activities to eliminate waste.
34
Select one product family

Process steps Need to focus on

Pre assy Line Cell Pack at line Pack at FG one product family
before we start our
SAB X X
VSM.
Products

DAB X X
PAB X X A family is a group
of products that
IC X X
pass through
SB X X X
similar processing
steps.

35
 Current state drawing

Select product family Select one product family

Understanding how the current

Current state drawing
flow operates.
• Concentrate on both the material and
information flow.
• Draw using standardised icons.
Future state drawing
• Start drawing the map from customer side
and walk upstream in the flow.
• Walk the flow and collect what you see.
Action list and
implementation ü Do not use standard times
ü Draw by hand using pencil
36
 Map the current state
Preparations for mapping

Select one product family

Check that process data is available for box score

Select a qualified employee that he knows the entire

process
Start in the finished goods warehouse and work
upstream to the raw material warehouse

Consider both material and information flows

Goal: GO TO GEMBA and SPEAK WITH REAL

DATA 37
 Drawing the map
Always draw by hand using a pencil
As you draw you will check the required information
(use data collection form)
Drawing by hand means that you can do it yourself, which
is key to understanding the material and information flows

Drawing by hand means you will focus on understanding

the flow, instead of on how to use the computer

By manually fine tuning your drawing you will improve your

mapping ability. Keep an eraser ready !

38
 Creating a Value Stream Map
(Current State)

1. “Go & See” - a quick walk following the path of

the product from the shipping dock to the
receiving dock.

2. Illustrate Material Movement - draw the

movement and distances traveled on a facility
layout or sketch

3. Identify the Customer Requirements

• Volumes, ship frequency, pack-size etc.
• May have more than 1 customer for a target
product 39
 Creating a Value Stream Map
(Current State)

Example Process Box

4. Record Processes & Inventory
• List major processes - details within
the process would be illustrated using
a process map
• Process is defined as an area through
which materials flow, often separated by
stagnating inventory

• List the key process information in the

process box Inventory
Symbol
550
• Indicate locations and quantities of pcs
inventory accumulations
40
 Creating a Value Stream Map
(Current State)
5. Identify the supplier(s) and illustrate external material flow

– Supplier selection should be based on:

• Common to target product (s)
• High cost & or volume
• e.g. Seatbelts, webbing, micro gas generator, airbags,
cushions, inflators
• Significant potential for improvement in value stream
• Limited to 3, to minimize confusion in map (1-2 best)
– Include supplier name, minimum order requirement,
pack size, delivery frequency, typical order size
– Illustrate material movement from plant to customer(s)
and from supplier(s) to the plant
• Include method & frequency
41
Creating a Value Stream Map
(Current State)

6. Illustrate information flow and

method of material movement
Electronic Information
• Include information to and from internal
Firm
and external sources
• Include method of communication Unfirm
(electronic or manual)
• Illustrate material movement triggers
Push

7. Summarize current state value Grocery

stream Pull Store

– Calculate production lead time

• Inventory in system / daily requirement
– Calculate value added time 42
Creating a Value Stream Map
(Current State)
[Link] the timeline
– Write the lead time on the step for each stagnation point on the
current state map

– Write the value added time beneath each process

– Add the lead times together and the value added times together;
write the totals at the end of the timeline

43
 Symbols
Customer or Supplier

Supermarket / small inventory

Process Step (combine Cells as 1 process unless WIP is

significant.

Process Step shared by other Value Streams. Sub

Assembly or special packaging cell.

Data box. Placed under significant steps in the map

(Process step, customer etc.,.). C/T = Cycle time seconds,
C/O = change over time seconds, Batch = Batch size and
Avail = Up time OEE Availability (%), Process steps can also
hold # of operators or other information which could be
44
useful like # of shifts worked.
 Symbols
Inventory between processes, stores any inventory
accumulation. If 2 locations of inventory close together
use 2 icons.

External Shipments or receipts or between factories.

Pull occurring from supermarket by down stream

process.
Push. Material being pushed to down stream process.
FIFO controlled to maximum number. Used when a
roller conveyor or other physical arrangements controls
both FIFO and max quantity of product between 2
process steps.

Shipments from Suppliers or to Customers or to external

factories or warehouses.
45
 Symbols
Inspection, Quality Control / Assurance Process Step.

Sequencing. Sub assembly produced in sequence without

a supermarket or Kanban in between. Could be computer
link or verbal instruction.

MRP or ERP system. Draw computer terminal for interface

to Value Stream.

Time Line. Value Added time (VA) and wait or non value
add time (NVA).

Kanban posting location.

Important Improvement opportunity. Identified future

Workshops essential to improvement of Value Stream.
46
 Symbols
Inventory safety stock, specifically held in case of
breakdown, material shortage, system failures, workforce
union negotiations, etc.

Electronic Flow of information.

Manual Flow of information.

Production scheduling department, process or person(s).

Production Instruction trigger. (Production Instruction

Kanban). Signals the production of pre determined quantity
for supply downstream or to an inventory buffer.

Withdrawal Kanban signal. Signals it is ok to withdraw a

predetermined quantity of product or components from an
up stream process or inventory.
47
 Kanban system
What is Kanban?
§ Visual signal that's used to trigger an action
§ Japanese word, Roughly translated means “Card Can you See”
§ Toyota Introduced, Refined and used as a Relay system to
standardize the flow of parts in their JIT production lines during
1950’s
Types of Kanban
§ Production Kanban – Basic one
§ Withdrawal or Conveyance Kanban – Concerned with movement of
components
§ Supplier Kanban – Includes supplier as part of the system
§ Emergency Kanban – Deals with unexpected situation that needs
immediate attention
48
 Kanban system
§ Express Kanban – Situations that must be resolved immediately
§ Through Kanban – Combination between Production and
Withdrawal in situations where two different production teams that
work together are also physically close to each other

Conclusion
These different Kanban systems can be
combined and used together to achieve
an organized production environment.
You can pick two types or all six. You
can color-code different cards types, put
them in separate swim lanes…
There are no set rules. Very often
though, it is necessary to use all
Kanban systems to ensure timely
signalization, clear communication
and optimal use of resources.
Especially if your goal is to deliver a
49
product to your customers.
Start drawing

Parts & Co. Ltd

Always start with the customer
27.600 pcs / Month
17.600 „Type A“
10.000 „Type B“
20 Pieces box
2 Shifts

50
 Material flow

Melte Ltd Parts & Co. Ltd

Current State Map,
2000kg container 27.600 pcs /Mon
including all processes, 17.600 „Type A
data boxes, inventory 10.000 „Type B
20 pieces box
and material flows 2 Shifts
2x Week

1x Day

Ingots Die-Casting Finishing Assembly Packaging

Shipping
11 days
9600 C/T =15 Sec. 1740 C/T = 30 Sec. 1920 C/T = 50 Sec. 2500 C/T = 18 Sec. 6200
A C/O = 3 hours A C/O = 0 A C/O = 0 A C/O = 0 A
5450 Avail.=90% 980 Avail.=80% 1080 Avail.=90% 1450 Avail.=95% 3400
B 2 Shifts B 2 Shifts B 3 Shifts B 1 Shifts B
27.600 Sec. avail. 27.600 Sec. avail. 27.600 Sec. avail. 27.600 Sec. avail.

51
 Information flow
4 Week- 90
Melte Ltd Forecast Logistics Day Forecast
Parts & Co. Ltd

2000kg container
Weekly Daily 27.600 pcs /Mon
Fax Order 17.600 „Type A
10.000 „Type B
Weekly Schedule 20 pieces box
2 Shifts
2x Week Daily Ship
Current State Map, Schedule
Including all information 1x Day
and material flows

Ingots Die-Casting Finishing Assembly Packaging

Shipping
11 days
9600 C/T =15 Sec. 1740 C/T = 30 Sec. 1920 C/T = 50 Sec. 2500 C/T = 18 Sec. 6200
A C/O = 3 hours A C/O = 0 A C/O = 0 A C/O = 0 A
5450 Avail.=90% 980 Avail.=80% 1080 Avail.=90% 1450 Avail.=95% 3400
B 2 Shifts B 2 Shifts B 3 Shifts B 1 Shifts B
27.600 Sec. avail. 27.600 Sec. avail. 27.600 Sec. avail. 27.600 Sec. avail.

52
 Create the time line

• Write the lead time between each process on the current state map

• Write the value added time beneath each process

• Sum up the lead times and the value added times; write the totals at the end
of the timeline

53
 Complete map – Current State

4 Week- 90
Melte Ltd Forecast Logistics Day Forecast
Parts & Co. Ltd

2000kg container
Weekly Daily 27.600 pcs /Mon
Fax Order 17.600 „Type A
10.000 „Type B
Weekly Schedule 20 pieces box
2 Shifts
2x Week Daily Ship
Current State Map, Schedule
Including all information 1x Day
and material flows

Ingots Die-Casting Finishing Assembly Packaging

Shipping
11 days
9600 C/T =15 Sec. 1740 C/T = 30 Sec. 1920 C/T = 50 Sec. 2500 C/T = 18 Sec.6200
A C/O = 3 hours A C/O = 0 A C/O = 0 A C/O = 0 A
5450 Avail.=90% 980 Avail.=80% 1080 Avail.=90% 1450 Avail.=95% 3400
B 2 Shifts B 2 Shifts B 3 Shifts B 1 Shifts B
27.600 Sec. avail. 27.600 Sec. avail. 27.600 Sec. avail. 27.600 Sec. avail.
Value Added
11 Days10,9 Days 2,0 Days 2,2 Days 2,9 Days Time
7,0 Days = 113 S
Production
15 Sec. 30 Sec 50 Sec. 18 Sec
Lead54Time =
36 Days
Recap through Quiz 2

7. Extended VSM Meaning

8. Product family in LEAN meaning

9. Symbol Meaning

10. Symbol Meaning

11. Symbol Meaning

12. Symbol Meaning

13. Symbol Meaning

14. How many types of Kanbans we have discussed?

55
 Future state drawing

• Begin with the Current State map

Select product family • Identify waste and improvements
• Calculate Takt Time
• Map Future State (material &
Current state drawing
information flows)
• Gather Future State information to the
Future state drawing Box Score
• Future state map is the base for your
implementation plan
Action list and
implementation FSM Final - Sample
56
 Takt Time
Maximum amount of time in which a product needs to be
produced in order to satisfy customer demand.
Takt is a German word for the baton that an Orchestra conductor
uses to regulate the tempo of the music.
Takt time may be thought of as a measurable beat time,
rate time or heartbeat.
Takt time first was used as a production management tool in the
German aircraft industry during 1930s.
Calculated Available Production time
Units customer demands

57
Takt Time, Cycle time, Lead time

For example, if a customer requires 100 light bulbs in an 8 hour

day, the TAKT time is 8 hours / 100 bulbs (4.8 Min).
The calculation does not take into consideration the number of
operators.
The purpose of takt time is to precisely match production with
demand. It provides the heartbeat of a lean production system.
§ Takt time equals the time between starting to work on one
unit and starting the next.
§ Cycle time equals the average time it takes to finish one unit.
§ Lead time equals the total time it takes from receiving an
order to delivering an item
58
The Objective of Just in Time
& Lean Manufacturing
is the Elimination of Waste.

59
SEVEN
TheWASTE (MUDA)
seven forms of MUDA:

1. Transportation
2. Inventory
Video 3 - TPS
3. Motion
4. Waiting
5. Over Production
6. Over Processing
7. Defects

Memory Key Word: TIM WOOD

60
Identify improvements

Key Questions

Do we PUSH or do we PULL?

Which stock could we remove?

Which operations can we integrate?

What is my target lead time?

61
How to reach the Future state

Key Questions

Which line layout has to be organized?

Which machine has to be improved?

Which planning procedures must be changed?

Which leadership and training has to start?

62
Identify Waste
Current state map
4 Week- 90
Melte Ltd Forecast Logistics Day Forecast
Parts & Co. Ltd

2000kg container
Weekly Daily 27.600 pcs /Mon
Fax Order 17.600 „Type A
Ship to 10.000 „Type B
order, make 20 pieces box
Weekly Schedule to forecast 2 Shifts
2x Week Daily Ship
Current State Map- Schedule
Including all information and
1x Day
material flows
Too much Isolated
transport Fire-fighting
production Over Scrap and
management
islands production rework
PUSHFinishing
Ingots Die-Casting Assembly Packaging
Shipping
11 days
9600 C/T =15 Sec. 1740
Combine C/T = 30 Sec. 1920 C/T = 50 Sec. 2500 6200
C/T = 18 Sec.
Combine
A C/O = 3 hours A
processes C/O = 0 A C/O = 0 A C/O = 0 A
processes
5450 Avail.=90% 980 Avail.=80% 1080 Avail.=90% 1450 Avail.=95% 3400
PCE=0.005%
B 2 Shifts B 2 Shifts B 2,2 Days3 Shifts
Breakdowns B 1 Shifts B
27.600 Sec. avail. 27.600 Sec. avail. 27.600 Sec. avail. 27.600 Sec. avail.
Value Added
11 Days10,9 Days 2,0 Days 2,2 Days 2,9 Days Time
7,0 Days 63= 113 S
Production
15 Sec. 30 Sec 50 Sec. 18 Sec
Lead Time =
 Map the future state

6 Week- 90
Forecast Logistics Parts & Co. Ltd
Melte Ltd Day Forecast
1000kg container
Daily order Daily 27.600 pcs /M
Order 17.600 „Typ
Daily order 10.000 „Ty
Daily
20 pieces bo
(milk run) Recalculate production lead 2 Shifts
time & value added time
1x Day

Containers Die-Casting + Assembly +

Shipping
Finishing Packaging

C/T =20 Sec. C/T = 58 Sec.

C/O = 15 min C/O = 10 min
2 days
Avail.=90%
1 day Avail.=95%
2 Shifts 3 Shifts Value Added
27.600 Sec. avail. 27.600 Sec. avail.
0 Day 1,0 Day 2,0 Days Time = 78 S
Production
20 sec 58 sec 64
Lead Time =
Box score
When you have a
future state
drawing you can
compare how
effective it is
against your
current state.
Compile your data
from the maps and
calculate different
improvement
ratios.
The box score
sheet is used
continuously to
compare different
state maps. 65
Action list and implementation

Plan for implementation of the

Select product family improvements and the activities to
eliminate waste.
1. Tie it to your improvement plan.
Current state drawing
2. Split your future state into small
improvement steps.
3. Make an implementation plan
Future state drawing (PDCA): What to do, by whom and
when.
4. Relate the Future State map to the
Action list and layout.
implementation
5. Conduct Value Streams reviews with
management walking in Gemba. 66
Create the implementation plan
PDCA (example)

67
Benefits from VSM

• Links the information and material flow together in one

map.
• Provides a pictorial representation of entire value chain.
• Provides a structured way of implementing
improvements.
• Ties together LEAN tools and techniques.
• Guides us towards major improvements.

68
 LEAN PRINCIPLES

1. VALUE
2. VALUE STREAM
3. FLOW & SMED
4. PULL
5. PERFECTION & STANDARD
WORKS
6. LEAN IMPLEMENTATION
69
 FLOW

• The continuous movement of material

as it is transformed from raw material to
a finished product…

• Flow is disrupted and waste created,

whenever material stops moving.

70
 SMED - Definition

Video 4 - Pit stop

SMED-Single Minute Exchange of Die is a concept to

reduce changeover time (i.e., minimize the time lost in
changing over from one size to another or one product to
another or one service type to another, etc.)
71
 SMED - Origin

Origin of SMED
Dr. Shigeo Shingo is known as the
father of Single Minute Exchange of
Dies (developed in the late 1950s) and
Poka-Yoke, also known for developing
the Just-in-Time (JIT) concept.
§ Took 19 years for SMED
He used SMED to reduce the lot size of concept development.
Toyota cars and the set-up time of hull § Finishing touches was
given @ Toyoto Motor
assembly on a 65,000 ton super tanker, Company’s 1000T press
set up time reduction from
setting a record in shipbuilding in 1956. 240 Min to 90 Min.
72
 Distribution of time in Set up, Shigeo Shingo

§ Set up procedures are infinitely varied, depends on type

of operation, type of equipment being used.
§ In traditional set up changes the distribution of time is
often as given below.

Operation Proportion of time

1. Preparation, After-process adjustment and checking
30%
of raw material, tools, dies, jigs, gauges etc.,
2. Mounting and removing of blades (tools) 5%
3. Centering, Dimensioning and setting of other
15%
conditions
4. Trial runs and adjustments 50%
73
 Implementation of SMED

Internal Setup
§ Elements that can only be performed while the machine is shut
down.
External setup
§ Elements that can be performed while the machine is running.
SMED Implementation
§ we must clearly understand about I & E setup
§ 4 methods can be used to understand the actual condition.
1. Production analysis with a stop watch
– Best method but need great deal of time with high skill
2. Work sampling method
– Advantage only for great deal of repetition and not for fewer
set ups. 74
 Implementation of SMED

3. Interviewing the operating personnel

4. Videotaping the entire set up operation – Better method
and extremely effective. Need to show the video to the
set up personnel. Brings lot of surprise insights from the
set up personnel for improvement. In may cases these
insights can be applied on the spot.

75
 Approach to SMED Implemention

3 Step Approach
1. Separating Internal and External setup
2. Converting Internal to External setup
3. Streamlining All aspects of the setup Operation

1. Separating Internal and External setup

§ Most important step in implementing SMED.
§ All will agree that preparation of parts/making the input
material ready, tools, gauges & maintenance should not be
done while the machines are stopped.
§ Instead we make a scientific effort to treat as much of the
setup operation as possible as external setup, then the time
needed for internal setup (performed while the machine is in
off) can be usually be cut 30% ~50%.
76
 Approach to SMED Implemention

Mastering the distinction between Internal and External setup is

thus the passport to achieving SMED
2. Converting Internal to External setup
§ 30%~50% (Tremendous) reduction in setup time is
insufficient to achieve SMED objective.
§ Converting Internal to External setup involves 2 important
notions.
• Re-examining operations to see whether any steps are
wrongly assumed to be internal
• Finding ways to convert these steps to external setup
§ Eg. a) Preheating from setup began to previously pre-heating
b) Converting centering to an external procedure by doing
it before set up starts.
Extremely important is to adopt new perspectives that are not
bound by old habits. 77
 Approach to SMED Implemention

3. Streamlining all aspects of the setup operation

This stage calls for detailed analysis of each elemental
operation because Single minute range can occasionally be
reached by converting to external setup, this is not true in
majority of the cases. That’s why we must take a concerted
effort to streamline each elemental Internal to External setup
operation.
Eg. a) Toyota Motor company – Internal set up time for bolt
making, set up time reduced form 8 hours to 58 Seconds.
b) Mitsubishi Heavy Industries – Internal setup time for six
arbor boring machine reduced from 24 hours to 2 Min
and 40 Sec.
§ Stages 2 & 3 need not to be performed sequentially, they may be
nearly simultaneously. 78
 Techniques for applying SMED
Stage 0:
§ Take video of the setup
§ Analyze and list all the activities with time
Stage 1:
§ Identify and separate activities as Internal and
External
§ Apply ECRS concept to all External activities
Stage 2:
§ Consider all Internal activities
§ Apply ECRS concept to all Internal activities
Stage 3:
§ Stream all aspects of the setup
§ Radical Improvement in External setup operation
§ Radical Improvement in Internal setup operation 79
 Constraint?
• The weakest link in your value chain

Individual Link
30 Kgf 10 Kgf 20 Kgf
strength

Chain Strength
30 + 10 + 20 = 60
(Sum of Links)
Chain Strength
(Average of 30 + 10 + 20 : 60/3 = 20
Sum of Links)

Chain Strength 30 10 20 = 10
(Strength of
weakest link) 80
 LEAN PRINCIPLES

1. VALUE
2. VALUE STREAM
3. FLOW & SMED
4. PULL
5. PERFECTION & STANDARD
WORKS
6. LEAN IMPLEMENTATION
81
 PULL

o Ability to design, schedule and make exactly what the

customer wants and just when the customer wants it.

o Sales forecast is for planning the capacity at the plant

and also at the supplier’s end. But the actual production
or flow of material is based on PULL (Kanban)

o No one upstream should produce a good or service

until the customer from downstream asks for it.

82
 LEAN PRINCIPLES

1. VALUE
2. VALUE STREAM
3. FLOW & SMED
4. PULL
5. PERFECTION & STANDARD
WORKS
6. LEAN IMPLEMENTATION
83
 PERFECTION

Ø There will always be waste present in any value stream…

Ø Everyone in the company to identify and remove that
waste.

Ø There is no end to the process of reducing effort, time,

space, cost and mistakes while offering a product.

Ø Perfection is a journey reaching towards achieving “0”

NV activities.

84
Standard Work

Definition
Most efficient method to produce a product (or perform a service)
at a balanced flow to achieve a desired output rate.
It breaks down the work into elements, which are sequenced,
organized and repeatedly followed.
Standardized work
• Standardized work- Not to define only boundaries / Constraints.
• It is to have organized work which is
o Observable
o Measurable
o Improvable ( Kaizen )
85
LEAN Transformation steps

1. Find a change agent

2. Find a Sensei (Guide / consultant)
3. Seize (or create) a crisis to motivate action across
your firm
4. Map the entire value stream for all of your product
families
5. Pick something important and get started removing
waste quickly, to surprise yourself with how much
you can accomplish in a very short period.

86
Lean Tools

5S, Visual controls, Kanban & Super markets,

Andons, Kaizen
Value Stream Mapping
events, Rapid
(VSM)
Changeovers (SMED),
Cell Design / Cellular Standard work, TPM,
Manufacturing Poka-Yoke

87
 Recap through Quiz3

15. Takt time is

16. House of Toyota is focused on stability. Stability is

reached __________, __________, _________.

17. 2 pillars of TPS are ___________, _____________.

18. Jidoka Meaning

19. 2 Benefits of VSM are __________, ___________.

20. Father of SMED?

21. Which activity/operation contributes major in a set up

and how much %? 88
Recap through Quiz3

22. To understand the actual condition 4 methods are

suggested. What are they?

23. 3rd step of SMED approach?

24. ECRS expansion?

25. Standard work breaks the works into ___________.

89
 LEAN PRINCIPLES

1. VALUE
2. VALUE STREAM
3. FLOW & SMED
4. PULL
5. PERFECTION & STANDARD
WORKS
6. LEAN IMPLEMENTATION
90
 BTO - RRKE
(Break Through Output)

Lean Journey at RRKE…

91
Objective : Productivity enhancement in Assembly operations
with current resources by eliminating / reducing wastes in system.

Focus areas:
Ø Addressing the limiting factors on Productivity in Auto Line
Ø Opportunity for Productivity enhancement in Manual line
Ø Revalidate WIP in assembly
Ø Opportunity for enhancing FTA

92
 LEAN House Model - RRKEE
LEAN Transformational Model

What Problems we are trying to solve?

Improve Productivity, Quality, Optimize WIP and
Reduce cost
Process Capability
Improvement development
Flow Learning
Continuous
Improvement Class room
On the Job
Scientific Method
1. Observe a Ideas
phenomenon Daily Practice
2. Formulate ideas
3. Conduct experiments
Creativity
4. Validate & Implement Innovation
Basic way of Thinking, Cooperation, Team work, 5S, Long term
view, Mutual trust & Prosperity, Healthy & Safe work place,
Ethical behavior, Eliminate waste 93
Approach
ü Study the current situation
ü Identify the value stream
ü Consultant, Sponsor, Mentor and Team leader
Planning identification

ü Training on VSM, CSM, FSM, TIMWOOD, SMED, Micro

motion study to LEAN council members.
ü Both Class room / On the Job.
Training ü Retraining given on the above topics and ECRS concept

ü LEAN council formation, Naming

ü Team members identification
ü LEAN projects identification - 56 Projects identified
LEAN Project ü Applied ECRS Technique for shortlisting projects
selection

ü 12 Key Projects shortlisted for implementation

ü Micro Motion Study for Minor Stoppages of the Line
Project ü Finalize solution and implementation under progress
Implementation
94
Steps followed

ü Lean Training & Retraining to Executives

ü Cycle time study & Optimization
ü VSM – Carried out CSM & FSM
ü Preparation of TIMWOOD Matrix
ü 56 Projects identified
ü Application of ECRS in the identified 56 projects and
finalized 12 Key Projects identified
ü 12 Projects Status
§ 7 Projects Completed, 5 Projects Under Progress
ü Line Performance Study & Analysis applying Micro Motion
study – Under Progress
ü C31 Line identified as Model line for LEAN
95
implementation under progress
Projects - Completed

96
Projects – Under Progress

97
SMED Projects Results

ü Applied Shigeo Shingo Methodology and

ü Micro Motion study

Before After
Sl. %
SMED Project time in time in
No. Improvement
Sec Sec
1 Variant to Variant CO 45 20 56%
2 Caliber to Caliber CO 278 90 68%
3 Back Cover Fixing 204 70 66%

98
Minor Stoppages
Sl. No. Identified Minor Stoppages
1 Late start-Line stop
2 Previous day input fed
3 Rework stops line
4 Handling other components when the line is on
5 Wearing Finger stalls after line start
6 Hands unpacking during line is on
7 Rudico preparation after line start
8 No input when line is on
9 Off line work when line is in operation
10 Operator movement to outside work area when line is on
11 Rework when line is on
12 Movement passing without hands fixing due to non availability of hands.
13 Line chocked
14 Slow fixing
15 Avoidable delay
All personnel are always keeping the left hand on the stage on/off switch and stops
16
frequently the stage operation for both required and not required purposes.
17 Receipt without previous operation
18 Line chocked due to sudden input
19 No input - Operator less utilization

Action under progress to eliminate / reduce the above Minor Stoppages 99

Realized Benefits @ Captive Vendor

100
Pl. Share the Post session
feedback & Key learning

Any Clarifications?

101
OTED / STED

Abbreviation for One-Touch Exchange of Die, which is closely

associated to SMED, but a more difficult concept.
Changeovers can and should take less than 100 seconds and
other references mention it is as being less than one minute.
OTED requires the following actions:
– Elimination of adjustments
– Freedom from screw fastenings
– Moving towards strength and precision
– Precis and close fits
– The functional burdens of dies vis-a-vis machines
– The separation of die material and die function
– Insertion methods
– The Least Common Multiple (LCM) method
102