The cooperate on a daily basis with

The
origin of Lean Manufacturing comes from Japan, in order to industrialized the
country after WW II Japanese industrialists had to develop the quality of
goods, and deal with other issues like export and selling finished goods. To
speed up industrial development, in a country like Japan with low level of
natural resources, with inability to get foreign currency, and without chance
to buy needed material, quality culture became essential. As a result, increase
quality, reduce cost and meet customer requirements Japanese companies have
changed the way they do business. All of this happen due to the revolutionary
approach to the production which was pioneered by Eiji Toyoda and Taiichi Ohno
named Lean Manufacturing. The rise of Japan to its current position fully rely
on this.

Innovative lean production methods
are far away from the craft production and mass production from the 3rd
industrial revolution, which were usually applied for automobile industry.
Craft producers made exactly what the customer wants with skilled workers and
flexible but simple equipment. Mass producers made standardized goods in high
volume with low or semi-skilled workers. In turn of LM, in contrast, it
benefits from the advantages of craft and mass producers but avoids high costs
and rigidity of previous examples. Lean producers, use team of multiskilled
workers, and automated, very flexible machines at every level of production. That’s
why many western companies understand the effectiveness of lean and have
already introduced it into production. In Lean production we use half less resources,
energy than in mass production because of the concept and philosophy of it. The
aim of lean producer is: explicitly on perfection, zero waste and zero defects,
continually reducing costs, zero inventory, and product variety. Lean
production calls for continual learning and applying achieved skills in a team
rather than individually. This philosophy means more dependence on people even
more than a set of tools and improvement techniques. It depends upon the
workers to reduce

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inventory, identify hidden problems,
and fix them. The workers, quality specialists are able to cooperate on a daily
basis with each other, and most importantly they become involved in solving
problems and Kaizen. It also refers to avoid rework in the production line, which
is the major difference from mass production. In mass production, if error
occurs, production line never has stopped, they keep to running line and at the
end, multiply the errors. Every worker could think errors would be caught in
the end of the line where is rework area located. For lean companies this works
in a completely different way. At every work station worker had to stop the
line if he detects error. Instead of hope that it will never occur again the
whole team together with problem-solving system “the five why’s” should uncover
the reasons of the problem. The problem solved when identified, not at the end
of line. Thus, lean manufacturing companies, like Toyota does not have rework
area and perform no rework at all. Relations with suppliers shift to the new
level with LM. Well-known JIT system enables supply on a day-to-day basis
called Kanban in Toyota. It was very difficult practice to implement at first,
because it eliminates all inventory, and every member of team focus on the vast
of production rather than safety nets. It took from Toyoda and Ohno about 20
years to fully implement this and other ideas. Nowadays, lean supply chain
became a major strength of lean production system. The adoption of lean supply
chains one of the most significant developments in supply chain strategy.
(Womack and Jones, 2003; 2005; Hines,2004).  Lean methods are spreading to all the nations across
from Japan. Mass-production from the previous industrial era is in the path of
lean thinking. For companies that adopt lean thinking, 4th
industrial revolution, which is coming now, can be an accelerated technological
and networking step to provide maximum value to customers with minimal waste
and in the shortest time possible. We’re now in the beginning of the fourth
industrial revolution and lean will not fade with Industry 4.0, quite opposite I4.0
will enable the true lean enterprises.

 Womack and Jones define 5 main principles of
Lean Manufacturing; (“The Machine That Changed the World ” Womack and Jones in
1990)

1.    Define Value as Perceived by the Customer

2.    Identify the Value Stream

3.    Make the Value Stream Flow

4.    Flow at the Pull of the Customer

5.    Strive for Perfection

The
concept of value most essential part in Lean Manufacturing, thus the companies
that implement lean define it from the customer point of view. In Toyota even
when started to apply lean practices, customers were treated as a member of the
“Toyota family” and brand loyalty became Toyota’s biggest strengths. The
question “does this activity add value to the customer or not” is key element
to divide all activities into 2 group:

1.       Value added activities

2.       Non- value-added activities.

Only
small part of operations add value to the product. Toyota has identified seven main
types of non-value-adding activities in business or manufacturing processes.

The
Seven Wastes of Lean Manufacturing are:

1.         Transport

2.         Inventory

3.         Motion

4.         Waiting

5.         Over-Processing

6.         Overproduction

7.         Defects

 The waste of transport can be a very high cost
to business, it includes the movement of material, moving people, product,
information from one location to another, this is a waste as it adds zero value
to the product. Excessive movement and handling cause damage and are an
opportunity for quality to deteriorate.

 Excess inventory is another problem that
creates huge cost, increases lead times. Every company should cut down on
unnecessary inventory.

Unnecessary
motions are those movements of man or machine which are not as small or as easy
to achieve as possible they cost companies time, money and cause stress on your
employees and machines as well. This is one of the most serious of seven
wastes.

But
the most serious waste is overproduction. Overproduction leads to high levels
of inventory, which create the problems I mentioned above.

Waiting
includes time worker waits for information or material from another department.
He just idles his time, not doing anything value added action.

Over-processing
wastes occur when we use inappropriate techniques, equipment and this cost us
money and time. It is clear-cut that waste defects should be prevented where
possible because it can lead to lost customers.

The
worst of all the 7 wastes is overproduction because it includes in essence all
others and was the main driving force for the Toyota JIT system, they were
smart enough to tackle this one to eliminate the rest. According to
Altekar(2005), establishment and mastering of a lean production system would
allow  companies  to 
achieve  the  following 
benefits:  waste  reduction 
by  80%,  production 
cost reduction  by  50%, 
manufacturing  cycles  time 
decreased  by  50%,  labor  reduced 
by  50% while  maintaining 
or  increasing  throughout, 
inventory  reduction  by 
80%  while  increasing customer  service 
levels,  capacity  in current 
facilities  increase  by 
50%,  higher  quality, higher  profits, 
higher  system  flexibility 
in  reacting  to 
changes  in  requirements 
improved. Whilst Lean Manufacturing has a huge toolbox of tools and
techniques we cannot define Lean Manufacturing from those tools. Lean is more
than the sum of all of those tools, applying tools in isolation will not
necessarily give company the benefits that they would expect and want to see. There are some of the common
lean tools:

 Value Stream Mapping (VSM): is a visual
representation of the whole production process in order to eliminate all
non-value-added activities, which emphasizes on the value-added activities in
the process and identifies the waste. Value-Stream is defined as “the set of
all the specific actions required to bring a specific product through the three
critical management tasks of any business: Problem Solving, Information
Management and Physical Transformation”. One of the things that differentiates
a VSM from most other mapping tools is the inclusion of the information flows
into the map. In the VSM need to include how the customer order product,
frequency and method, and how we translate that back to our supplier. We also
include how we then communicate requirements to our processes to ensure that we
produce what the customer wants.

Standard Work: To eliminate unnecessary
inventory by the first line supervisors.

5S visual management: It eliminates
waste that results from a poorly organized work area. 5S steps are sorting (to
eliminate useless items), shining (to keep workplace clean), setting in order
(to keep everything in place), standardizing and sustaining (to assure
continuity).

One-piece flow production: concept of
moving one part at a time between operations within a cell. It is necessary to
ensure that all value creating steps can flow smoothly. (Caldwell et. al.,
2009)

Just in Time Production -Together with
Kanban JIT will enable every organization to set clear flow without excessive
amount of money and other resources.

Kanban: It is a subsystem of the LM
system which was created to control inventory levels, the production and supply
of component. It states all the information of the current stage and which
parts are needed for the next stage in order to respond quickly to the changes
in the process for a better coordination.

FMEA: Failure Mode and Effects Analysis
(FMEA) technique is applied to analyze the possible failures.

 

Steps
of implementation of LM

Method
of LM

 

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