Lean in Bussiness Env.

7/29/2019 Lean in Bussiness Env.

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Lean practices in bussiness

environment

An effort by:

NeelkanthPrashantPrem

Tarun



Introduction

• Lean means streamlining work flow for greaterefficiency to focus on customer needs ratherthan on organizational bureaucracy.



Impact of lean in bussinessenvironment• Many organizations have found that

implementing lean concepts and tools results inimprovements in environmental performance,even when lean activities were not initiated forenvironmental reasons.



5 S



5 s contd..• Sort, the first S, focuses on eliminating unnecessary

items from the workplace that are not needed for

current production operations.• Set In Order: Set In Order focuses on creatingefficient and effective storage methods to arrangeitems so that they are easy to use and to label themso that they are easy to find and put away. Strategies

for effective Set In Order include painting floors,affixing labels and placards to designate properstorage locations and methods, outlining work areasand locations, and installing modular shelving andcabinets.



Contd..• Shine : Working in a clean environment enables

workers to notice malfunctions in equipment such

as leaks, vibrations, breakages, and misalignments.Organizations often establish Shine targets,assignments, methods, and tools.

• Standardize, the method to maintain the first three

pillars, creates a consistent approach with whichtasks and procedures are done. The three steps inthis process are assigning 5S (Sort, Set in Order,Shine) job responsibilities, integrating 5S duties intoregular work duties, and checking on the

maintenance of 5S.



Contd..

The second part of Standardize is prevention -preventing accumulation of unneeded items,

preventing procedures from breaking down, andpreventing equipment and materials from gettingdirty.

• Sustain. Sustain, making a habit of properly

maintaining correct procedures, is often the mostdifficult S to implement and achieve. Sustainfocuses on defining a new status quo and standardof work place organization. Without the Sustainpillar the achievements of the other pillars will not

last long.



Contd..

• Tools for sustaining 5s include signs and posters,newsletters, pocket manuals, team andmanagement check-ins, performance reviews,and department tours.



Value stream mapping

• This technique involves flowcharting the steps,activities, material flows, communications, andother process elements that are involved with aprocess or transformation.

• Value stream mapping helps an organization

identify the non-value-adding elements in atargeted process.



Value Stream Mapping Purpose

• Provide optimum value to the customer

through a complete value creation process withminimum waste in:

– Design (concept to customer)

– Build (order to delivery)

– Sustain (in-use through life cycle to service)



Just in time

• Just in time (JIT) is a production strategy thatstrives to improve a business return on

investment by reducing in-process inventory andassociated carrying costs.

• To meet JIT objectives, the process relies onsignals or Kanban between different points in

the process, which tell production when to makethe next part. Kanban are usually 'tickets' butcan be simple visual signals, such as thepresence or absence of a part on a shelf



Just In time

• JIT leverages the cellular manufacturing layoutto reduce significantly inventory and work-in-process (WIP).

• JIT enables a company to produce the productsits customers want, when they want them, in the

amount they want.



Kaizen

• Kaizen, or rapid improvement processes, often isconsidered to be the "building block" of all lean

production methods . Kaizen focuses oneliminating waste, improving productivity, andachieving sustained continual improvement in

targeted activities and processes of anorganization.



Kaizen contd..

• During the kaizen event, it is typically necessary to collect information on the targeted process,

such as measurements of overall productquality; scrap rate and source of scrap ; totalproduct distance travelled ; total square feet

occupied by necessary equipment; number andfrequency of changeovers; source of bottlenecks;amount of work-in-progress; and amount of staffing for specific tasks.



Five y’s Five Whys. Toyota developed the practice of asking "why"

five times and answering it each time to uncover the rootcause of a problem. An example is shown below. Repeating

"Why" Five Times

• Why did the machine stop? There was an overload, and the fuse blew.

• Why was there an overload? The bearing was not sufficiently lubricated.

• Why was it not lubricated sufficiently? The lubrication pump was not pumping sufficiently.

• Why was it not pumping sufficiently? The shaft of the pump was worn and rattling.

• Why was the shaft worn out? There was no strainer attached, and metal scrap got in.



Contd..

• To fully realize the benefits of the kaizen event,team members should observe and record new

cycle times, and calculate overall savings fromeliminated waste, operator motion, partconveyance, square footage utilized, and

throughput time



TPM• Total Productive Maintenance (TPM) seeks to

engage all levels and functions in an

organization to maximize the overalleffectiveness of production equipment. Thismethod further tunes up existing processes andequipment by reducing mistakes and accidents.

• The ultimate goals of TPM are zero equipment breakdowns and zero product defects, whichlead to improved utilization of production assetsand plant capacity.



• Efficient Equipment : The best way to increaseequipment efficiency is to identify the losses. Theamount of time spent on each of the six big losses,and where most attention needs to be focused, can be determined.(Unexpected breakdown losses, Set-up and adjustment losses, Stoppage losses, Speedlosses, Quality defect losses, Equipment and capitalinvestment losses)

• Effective Maintenance:Typical daily activitiesinclude precision checks, lubrication, partsreplacement, simple repairs, and abnormality detection.



• Mistake-Proofing:• A prevention device is one that makes it impossible

for a machine or machine operator to make amistake.• A detection device signals the user when a mistake

has been made, so that the user can quickly correctthe problem

• Safety Management:The fundamental principle behind TMP safety and environmental managementactivities is addressing potentially dangerousconditions and activities before they causeaccidents, damage, and unanticipated costs.



Focus areas include:-

the development of safety checklists

• the standardization of operations

• coordinating non repetitive maintenance tasks



3P’s

• 3P is viewed as one of the most powerful andtransformative advanced manufacturing tools,

and it is typically only used by organizations thathave experience implementing other leanmethods.

• The Production Preparation Process (3P)focuses on eliminating waste through productand process design.



• Define Product or Process DesignObjectives/Needs: The team seeks to understandthe core customer needs that need to be met. If aproduct or product prototype is available, theproject team breaks it down into component parts.

• Diagraming: A fishbone diagram or other type of illustration is created to demonstrate the flow from

raw material to finish product.• Find and Analyze Examples in Nature: The projectteam then tries to find examples of each processkeyword in the natural world. Here, team membersplace heavy emphasis on how nature works in the

example and why.



• Sketch and Evaluate the Process: Sub-teams areformed and each sub-tea member is required to

draw different ways to accomplish the process inquestion. Each of the sketches is evaluated and the best is chosen for a mock-up.

• Develop Project Implementation plan: If the project

is selected to proceed, the team selects a projectimplementation leader who helps determine theschedule, process, resource requirements, anddistribution of responsibilities for completion.



Types of environmental benefits thatresult from lean implementation Apollo Hardwoods Company

• Uses fewer trees and less energy to produce thesame amount of product

• Designed equipment that can use smaller pieces

of wood, which reduces wood scrap andalleviates the need to harvest large-diameter,mature black cherry tree



• Apollo Hardwood's founders and investors saw the wood products manufacturing industry as an

industry ripe for the successful application of leantechniques.• Wood products manufacturers generally carry large

inventories of wood which requires substantialspace and can result in damage or spoilage toinventories.

• The manufacturing processes typically result insignificant amounts of wood scrap and waste, whichis often burned for energy recovery.



• Apollo Hardwoods recruited a team to assist in aseries of 3P events to design a lean veneer slicing

and drying process and associated equipment.Team members were carefully selected to ensurethat the team did not have too much familiarity with conventional veneer manufacturingmethods, which could limit creativity during the3P events.



General Motors

Kanban Implementation

• Saved 17 tons per year in air emissions• Eliminated 258 tons per year of solid waste• Reduced hazardous waste generation from 9.0 pounds per car

in 1992 to 3.2 pounds per car in 1996• Fairfax Assembly Paint Booth Cleaning

• Reduced purge solvent used by 369 tons in the first year• Lean Supply Chain Development• Eliminated 7 tons per year of volatile organic compound

(VOC) emissions, hazardous wastes, and transportation-related impacts by working with suppliers to eliminate apainting process step



• Saturn Kanban Implementation

• Saturn's Spring Hill, Tennessee automotive

manufacturing plant receives more than 95 percentof its parts in reusable containers. Many of thesereusable containers also serve as kanban, or signalsfor when more parts are needed in a particular

process area. This "kanban"-type system eliminatestons of packaging wastes each year and reduces thespace, cost, and energy needs of managing such wastes.



Baxter Healthcare Corporation

• Over a three-day event, an interdepartmentalteam developed value stream maps (VSM) that

detailed the plant’s use of water and identifiedprocesses with potential for improvement

• Using the VSMs, the team developed animplementation plan that will save 170,000gallons of water per day and over $17,000 overthree months, with little or no capital investment



Baxter’s Key Lesson Learned

• The targeted aspect (energy, water, materials,etc.) should be linked to facility challenges and

the company strategic plan. For example, if thefacility has boilers or uses steam or distilled water, it should find opportunities in water andits associated energy.

• A cross-functional team is essential tosuccessfully identifying and understanding thechallenge. Upper management support is criticalfor the follow-up on implementation.



• If necessary, bring in expertise. If expertise isnot available in-house, then use the many free

resources that states provide, such as energy experts, water engineers, etc.

Lean in Bussiness Env.

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