10.2 Lean Production

• Lean Production



  It aims to eliminate waste and maximize the value of a product based on the perspective of the consumer.

  
• Lean advantages

  • Increased productivity because of focus on continuous improvement and waste reduction 
  • Increased quality of product because of focus on improvement and reduction of defects
  • Cost reduction because manufacturer is able to pass on cost savings to the customer
  • Increased profits through cost reduction and increased customer satisfaction
  • Improved working conditions for employees
  • Competitive advantage because of focus on cost reduction and productivity
  • Reduced environmental impact due to reduction of waste  of materials and resources
• Lean disadvantages

  • High capital costs due to the need to invest in JIT systems and IT systems.
  • Difficult to introduce to existing workforce as some workers and managers may resist the change in manufacturing approach (change can be scary!)
  • Dependent on a highly integrated system. If there is a breakdown in communication, deliveries, or production, the whole manufacturing system can come to a halt.
  • No inventory can make it difficult to respond to sudden increases in demand or create a buffer in case of a production slowdown.
• Characteristics of Lean Production

  • JIT supplies/system
  • Highly trained, multi-skilled workforce
  • Zero inventory
  • Zero defects
  • Quality control and continuous improvement
• JIT supplies/system

  The correct amount of material and parts delivered at the right time to eliminate inventory
• Highly trained, multi-skilled workforce:

  Using experts in production engineering and to ensure no time and materials are wasted
• Zero inventory:

  ----

  Manufactured products are shipped immediately, avoiding the need for managing inventory.
• Zero defects: 

  Avoid defects by ensuring no substandard materials and production practices are used.
• Quality control and continuous improvement: 

  ----

  An active approach to improvement; Quality control and checks happen at all stages of the production
• Principles of Lean Production

  • Minimizing inventory 
  • Elimination of waste
  • Designing for rapid production changeover
  • Pulling production from customer demand
  • Partnering with suppliers
  • Doing it right the first time 
  • Maximizing production flow
  • Empowering workers
  • Focus on Kaizen
  • Meeting customer requirements
• Minimizing inventory to reduce inventory management costs
• Elimination of waste: Wasted time, wasted material, reduction of errors and defects, etc.
• Designing for rapid production changeover to allow for efficient retooling and changes in production goals
• Pulling production from customer demand: a JIT system is used to drive production rather than a JIC system
• Partnering with suppliers in order to operate a successful and efficient JIT system
• Doing it right the first time emphasizes quality and reduces waste 
• Maximizing production flow in order to take advantage of economies of scale 
• Empowering workers as they are the most valuable resource in the company
• Focus on Kaizen – A philosophy of continuous improvement by all involved (managers, designers, workers, etc.)
• Meeting customer requirements and taking seriously every single customer complaint and opinion of the product or service; the flexibility of the lean production system determines the degree to which a company can meet each individual customer’s needs.
• Value Stream Mapping and Work Flow Analysis


  Both are essential tools for lean production processes and work in tandem with each other.
• Value stream mapping


  
  

  It is concerned with the big picture of the production process. The goal is to identify areas for improvement and to optimize the overall process. It is a lean production management tool used to analyse current and future processes for the production of a product through to delivery to the consumer.
• Workflow analysis


  It is concerned with the details of the production line. It considers the sequence, tools and even worker movement to ensure the highest possible efficiency in the system.
• Product Family


  It is a group of products that have common components or elements.

  By creating a family of products that share common components, manufacturers can create a competitive advantage. Products in it share common parts, manufacturing processes and architecture.
• Product Family advantages

  • Reduced manufacturing costs because products use similar parts, techniques, suppliers
  • reduced R&D costs as changes are typically incremental and made to the architecture of the design; There is no need to design a new product from the ground up. 
  • Attract a range of customers as each product in a product family can be targeted to the slightly different needs
  • Easily adapt to market demand 
  • Waste is reduced as waste from one product can be used to manufacture parts for another 
• Kaizen


  It is a philosophy of continual improvement. It has played a significant role in the success of many Japanese companies, ex. Toyota.

  Lean Production depends on the workforce as its most valuable aspect in the manufacturing process. This is founded in the belief that no system is perfect, and thus the workers are best situated for improvements.

  Training a highly skilled workforce develops deep understanding of the production process and empowers for improvement.

  This characteristic of lean production systems can make it difficult to introduce to existing non-lean production systems.
• Lead Time


  It refers to the time between the customer placing an order and the item being delivered to the customer. Depending on the type of product lead time can be measured in days or weeks.
• The 5 S's 


  They are developed from Six Sigma methods and are a method for organizing the workspace with the goal improving the efficiency of production.

  • Sort
  • Set in order
  • Shine
  • Standardize
  • Sustain

  
• Sort

  Keep only the necessary items in the workplace. 

  • reduce time looking for items
  • reduce distractions, 
  • increase safety
  • simplify inspection
• Set in order

  Organize the workplace or workstation to optimize and streamline efficiency

  • increase efficiency of workflow; completed items are removed as soon as possible
  • Fixed and labelled locations for tools and materials
• Shine

  Keep the workplace clean and organize in order to eliminate waste and maintain efficiency 

  • keeping workspace clear, clean, and organized to improve safety and eliminate waste or spoilage
• Standardize

  Set standards for a consistently organized workspace

  • ensure workers know their responsibilities
• Sustain

  Maintain and review standards

  • perform regular audits and provide time for review and improvement
• 7 Wastes in Lean Manufacturing

  The 7 (sometimes 8) wastes in lean manufacturing identify the areas where waste can happen and negatively affect a lean production system. These areas also present opportunities to improve the manufacturing system.