Lean Manufacturing

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• LEAN MANUFACTURING COMPETITIVENESS PROGRAMME

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WHAT IS LEAN MANUFACTURING ?

• It is the production of goods, using less of
  everything, i.e
• - less human effort
• - less manufacturing space
• - less investment in tools
• - less engineering time etc.
• It is a business initiative to reduce waste in
  manufactured products.
• Lean is one of the latest management tools in
  cost reduction .

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HOW DOES LEAN MANUFACTURING WORK ?

• It reduces cost by
• Improving labour use.
• Decreasing inventories.
• Reducing manufacturing order to shipment cycle
  time.
• Increasing capacities, without substantial
  capital inputs

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WHAT DOES LEAN MANUFACTURING DO ?

• Helps firms produce more with the same resources
  by eliminating the
  non-value added activities.
• Applies simple techniques to identify / eliminate
  the wastage and streamline systems.
• Focuses on improving the entire process flow.
• Emphasizes worker empowerment throughout Decent
  Work

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TECHNIQUES OF LEAN MANUFACTURING

• 5S System
• Visual Control
• Standard Operation Procedures (SOPs)
• Just in Time (JIT)
• KANBAN System
• Cellular Layout
• Value Stream Mapping
• POKA YOKE or Mistake Proofing
• SMED (Single Minutes Exchange of Dies or Quick
  Changeover)
• TPM (Total Productive Maintenance)
• KAIZEN BLITZ-Rapid Improvement Process

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DELIVERABLES

• Unit level Deliverables
• - Reduction of Costs.
• - Reduction of Cycle Time.
• - Lowering of Defects / Rework Cost.
• - Reduction of System related Wastes.

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DELIVERABLES (Contd)

• Expected externals
• - Skill up-gradation of Labour.
• - Improvement of Techniques.
• - Increase in Labour Productivity.
• - Lowering in-put cost of other industries.
• - Introducing of new production equipments /
  methods.
• - Betterment of work culture in society.
• - Development of a large pool of Lean
  Consultants.
• - Trigger competitiveness as a chain
  reaction.
• - Build a strong structure in private
  sector to sustain
• continuity of market driven
  requirements.

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RETURN ON INVESTMENT ROI

• Industries norm for wastage
• - Developed countries 10 - 20 of turnover.
• - Developing countries 20 30 of turnover.

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KAIZEN Management System
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