Production and Project Management

Course code: ChEg 5104

Credit Hours: 3

Aregawi G/Eyesus (Assistant Professor)

Email: [email protected] Cellphone: +251968925386

April 30, 2025

Chapter 8 Contemporary issues

8.1 Lean Production

8.2 Lean Six Sigma
8.3 ISO 9000
Learning Outcomes of the Course
On completion of this course, the students will be able to:
 explain the basic concepts & principles of Lean production

 know Lean Six Sigma tools, principles & Certification.

 understand ISO 9000 and ISO 9001 certification for

Manufacturing Industries (Chemical).
8.1 Lean Production (Manufacturing)
Outlines
• Introduction: Lean and Waste Definition
• 3MU’s of Lean
• 7 forms of Wastes
• Features of Lean production
• Principles of Lean
• Workplace Organization
Learning Objectives
When you complete this topic, you should be able to:

Identify or Define: Explain or Describe:

 Lean  Forms of wastes
 Waste  Features of Lean
 3 MUs Production
 5 S System  Principles of Lean
 Seven Wastes
Introduction to Lean Manufacturing
 Waste is broadly defined as anything
that adds cost to the product without
adding value to it.
 The purpose of lean is to remove all
forms of waste from the value stream.
 Waste includes cycle time, labor, materials,
and energy.
 The chief obstacle is the fact that
waste often hides in plain sight, or
is built into activities. E.g.:
Waste is Often Built Into Jobs

Pre-Gilbreth Bricklaying
7
Post-Gilbreth Brick Laying

The solution is obvious (in retrospect), but

first we have to know that we have a
problem!
8
Problem with
Inventory Hides Problems
Inventory
Reduce the Machine
level of downtime
WIP
Defective
inventory Scrap Vendor
productivit materials
y problems
(water) to Work in
Change
delinquencies
Scrap Rework reveal the process
orders
Downtime
operations’ queues Engineering design
Design
problems (banks) redundancies backlogs

Paperwork Inspection Decision

backlog backlogs backlogs
WIP
Defective
materials

Inventory productivit
y problems Scrap Rework
Downtime
Benefits of Lean Manufacturing
(1) Lower production cost  higher profits and
wages
– Cost avoidance flows directly to the bottom
line.
(2) Supports ISO 14001 and "green"
manufacturing
– Reduction of material waste and associated
disposal costs  higher profits
(3) Shorter cycle times: make-to-order vs. make-
to-stock
10
Lean Overview
The 3 MU’s of Lean
• Lean manufacturing is a Japanese method
focused on 3M’s.
• These Ms are:
• muda, the Japanese word for waste,
• mura, the Japanese word for inconsistency,
and
• muri, the Japanese word for
unreasonableness.
• Muda specifically focuses on activities to be
eliminated.
• Within manufacturing, there are categories of
waste.
Finding existing problems by checking 3 “M”s

a. Muda: Production factors that

increase cost, in other words,
1
all non-value-adding things

b. Mura: Variation in work distribution,

production capacity of
machinery, and material
specifications

c. Muri: Mental and physical

overburden on operators, and
overburden on production
machinery

01-13
The Three Mu’s

muda
mura

muri
freeleansite.com
Definition of 3M’s
Mura
Variation in work distribution,
production capacity of work process or
machinery, material specifications, etc.
3Mu Cntd…

Muri
Mental and physical overburden on
operators, and overburden on production
machinery or equipment.
The Seven Types of MUDA(waste)

Motion Over Produced

5S Eliminate 7 Transportation
Waste

Inventory

Defect Making
Over Processed Waiting Correction
01-18
 Storage, inspection, delay, waiting in queues,
and defective products do not add value and
are 100% waste
 Generally, muda (or waste) can be grouped into
the following categories:
8 Wastes of Lean
“OMIT What U DO”
• Overproduction • Waiting
O What
• Motion • Underutilized
M
People
U
• Inventory
I
• Defects
• Transportation Do • Over-processing
T
The Eight Deadly Wastes
5% Value
Added
95% Non-
Value Added

 Overproduction  Excess Inventory

 Waiting  Defects
 Transportation (Moving)  Excess Motion
 Non-Value Added Processing  Underutilized Resources

What is value added activity?

 Tasks that customers recognize as valuable
 Tasks that are done right the first time
 Tasks that transform the product or service
9 Categories of Waste in
Processes
D efects
O verproduction
W aiting
N ot utilizing people’s talent
T ransporting
I nventory
M otion
E xcess Processing
+
A titude
Lean Manufacturing goals

Waller, D.L.,,1999,”Operations Management: A Supply Chain Approach”, (Thompson, London)

• From the above discussion, it should be obvious
that waste is a constant enemy of manufacturing.
• Waste elimination should be an on-going process
that focuses on improving a process regularly.
• Regular reviews and worker input should be
conducted as often as allowable.

• The second “M” is for mura, or inconsistency.

• Inconsistency is a problem that increases the
variability of manufacturing.
• Mura is evidenced in all manufacturing
activities ranging from processing to material
handling to engineering to management.
Figures 18.3 and 18.4 illustrate some
characterization of mura.
Value
• Any process that the customer would
be prepared to pay for that adds
value to the product.
• The customer defines the value of
product in a lean supply chain.
• Value-adding activities transform the
product closer to what the customer
actually wants.
• An activity that does not add value is
considered to be waste.
The value stream
• The value stream is the sequence of processes from
raw material to the customer that create value.
• The value stream can include the complete supply
chain.
• Value stream mapping is an integral aspect of Lean.

Manual
Process
Decision Manual
Manual Manual
Waiting / Waiting / Process
Customer Process Process Manual
Queue Queue
Process

* Indicates inefficiency
Flow:
• Using one piece flow by linking of all
the activities and processes into the
most efficient combinations to
maximize value-added content while
minimizing waste.
• The waiting time of work in progress
between processes is eliminated,
hence adding value more quickly.
Pull
• Pull = response to the customer’s rate of
demand i.e. the actual customer demand that
drives the supply chain.
• Based on a supply chain view from
downstream to upstream activities where
nothing is produced by the upstream supplier
until the downstream customer signals a
need.
Perfection
Lean = Eliminating Non-Value-Added:
Waste
Hold all waste in a
Value-Added “CLOSED MITT”
• Complexity
• Labor
• Overproduction
• Space
• Energy
• Defects

• Materials
• Idle Materials
•Transportation
•Time
Typically 95% of all lead time is non-value-added in US companies.
popularized by Boeing, that expands on the traditional 7 wastes
to encompass 10 categories of waste
Complexity
The waste of doing things the
hard way!
• Excessive paperwork
• Excessive approvals
• Redundancy
• Poor communications
Causes of complexity:
• Multiple “patches” on the process w/o fixing
the root cause.
• The “cool” factor of technology or machinery.
• Failing to look for the simple solutions.
Labor Waste
• Human effort that adds no value to the product or
service from the customers’viewpoint.

• Not using peoples mental, creative, and physical

abilities.

• Causes of labor waste:

– Poor people/machine interface
– Inconsistent work methods
– Unfavorable workstation or cell layout
– Doing unnecessary/unneeded operations
– Poor workplace organization and housekeeping
– Redundant inspections/approvals
– Extra copies/excessive information
Overproduction
• The waste of making too much, too soon, too fast
compared to the needs of the next process.
• Causes of overproduction
– Just-in-case logic
– Misuse of automation
– Long process setup
– Non-level scheduling
– Unbalanced workload
– Misunderstood communications
– Reward system
– Unreliable shipment by suppliers
Space Waste
• Using more space than is required to build the
product to market demand.

• Causes of wasted space

– Poor layout
– Too much inventory, especially work in process
– Poor workplace organization
– Excess equipment
– Oversized equipment
Energy Waste
• Using more energy (people and machine) than is
required to build the product to market demand.

• Causes of wasted energy

– Oversized or poorly maintained equipment
– Idle equipment
– Poor workplace organization
Defects
• Waste of inspection, repair and scrapping of material to
which value has already been added.
• Causes of defects
– Weak process control
– Poor quality system
– Deficient planned maintenance
– Inadequate education/training/work instructions
– Product design
– Customer needs not understood
– Defective information
Materials Waste
 Any use of materials in excess of what is needed
to create value.
• Causes of material waste
– Not understanding the costs
– Inadequate education/training/work instructions
– Lack of standards
– Customer needs not understood
Idle Materials
 The waste of having materials “ sitting around ” in
process without any value being added to them.

• Causes of idle materials waste

– Unbalanced workload
– Unplanned maintenance
– Long process setup times
– Poor suppliers
– Upstream quality problems
– Unlevel scheduling
Transportation Waste

• Transporting parts and materials around the plant,

stacking and un-stacking, etc.

• Causes of transportation waste

– Poor plant layout
– Poor understanding of
production process flow
– Large batch size, long lead
times, large storage areas
Time Waste
Any activity that consumes time without adding
value, especially the waste of waiting (equipment
downtime, waiting for materials, setup, etc.).
• Causes of wasted time:
• Poor machine maintenance.
• Line imbalances.
• Poor setup discipline.
• Poor communication between processes.
Lean Building Blocks

KAIZEN

Pull/Kanban Cellular/Flow TPM

Quality at Source POUS Quick Changeover

Standardized Work Batch Reduction Teams

5S System Visual Plant Layout Value

Stream
Mapping
5S - Workplace Organization
 A safe, clean, neat, arrangement of the workplace
provides a specific location for everything, and
eliminates anything not required.

• In Lean manufacturing, we refer to this as 5S.

Examples: EMT’s, fire department, etc.
Elements of a 5S Program
• Sort/Segregate—Perform “Sort Through and Sort Out,” - red tag all
unneeded items and move them out to an established
“quarantine” area for disposition within a predetermined time.
“When in doubt, move it out!”
• Set in Order/Straighten/Simplify—Identify the best location for
remaining items and label them. “A place for everything & everything
in its place”.
• Shine/Sweep (Systematic Cleaning)—Clean everything, inside and
out. Use visual sweeps to ensure everything is where it should be
and that junk is not accumulating.
• Standardize—Create the rules for maintaining and controlling the
first 3 S’s. Use visual controls.
• Sustain/Self Discipline—Ensure adherence to the 5S standards
through communication, training, self-discipline and rewards.
Two additional Ss
► Safety – built in good practices
Minimizing Waste – 5S
“Good factories develop beginning with the 5S’s.
Bad factories fall apart beginning with the 5 S’s.”
- Hirouki Hirano

Japanese Translation English

Seiri Proper arrangement Sort
Seiton Orderliness Simplify
Seiso Cleanliness Sweep
Seiketsu Cleanup Standardize
Shitsuke Discipline Sustain
Visual Controls
• Simple signals that provide an immediate
understanding of a situation or condition. They
are efficient, self-regulating, and worker-managed.
• Examples:
– Color-coded dies, tools, pallets
– Lines on the floor to delineate storage areas,
walkways, work areas etc.
– Location signs on shop floor and in the office
– Identification labels everywhere
– Andon lights to indicate production status
– Kanban (stock signal) Card
Before 5S
Maintenance Department
After 5S
Maintenance Department
Before 5S
Potato Packing Shed
After 5S Kaizen
Potato Packing Shed
Before 5S
Unorganized, Non-standard Work Station
After 5S Kaizen
Standardized Work
Graphic = Good
• Tools are illustrated
• Parts are pictured and numbered
• Spatial relationships are clearly
shown
• Small items enlarged to show
assembly detail
• All items are either physically
labeled or identified by number in
assembly graphic
Visual Inspection Example
•Specify what to inspect
•Clear inspection criteria
•Don’t overload operator
with complex content or
criteria

•No missing screws

•All screws seated
Standardized Work
Summary
• Lean manufacturing was developed by the
Japanese.
• Lean is a philosophy that seeks to eliminate
waste in all aspects of a firm’s production
activities.
• Lean is principally associated with
manufacturing industries but can be also equally
applicable to both service and administration
processes.
• Works on 5 basic principles.
• Cornerstone of Lean is the Toyota Production
System.
• Considers 7 Wastes (muda).
• Utilises 5S methodology.
8.2 Lean Six Sigma
 Understand the role of Industry 4.0 in a chemical
Industries.
 Define Lean Six Sigma and compare Lean with Six
Sigma in process improvement.
 Listand discuss key elements of Lean Six Sigma
and their importance.
 List the Lean Six Sigma certifications and project
types.
Introduction - Industrial revolution and future view

If a company is going to survive and succeed in business, change is the

way to do it! Change by Implementing cost-saving lean-six sigma
manufacturing techniques. “ In times of rapid change, experience is your
worst enemy” J. Paul Getty
What can Industry 4.0 do for chemicals?
………What can Industry 4.0 do for chemicals?
………What can Industry 4.0 do for chemicals?
What is Lean Six Sigma?

The combination of two globally proven methodologies

…………..What is Lean Six Sigma?

VS
Lean Defined… Six Sigma Defined…
Lean optimizes the process design Six Sigma is a process improvement
methodology addressing defects which arise
 Came from process efficiency due to variability in process execution
practices at
 A defect can be any missed target or
• Toyota
nonconformance to standard
 Addresses the fundamental flow
of a process  Six Sigma seeks the causes of variability
 Is a philosophy of continuous  Six Sigma projects often apply deep
improvement analysis
• that finds and reduces  Solutions are not readily apparent
 Wasteful or unnecessary activities
 Illogical or inefficient process sequencing
 Rework
 Excessive cycle times
 Lean improvements are typically
logical and easy to understand
 Lean addresses problems that are a
Key Elements of Lean Six Sigma
 There are three key elements to Lean Six
Sigma.
 Mindset and culture: A way of thinking that
relies on data and processes to achieve
operational performance goals and
continuously improve.
 Process and methodology: A series of
phases that organize the use of the
problem-solving tools to ensure that the
true root causes are found and that a
solution is fully implemented.
 Tools and techniques: A comprehensive set
of tools and analytical techniques that are
used to identify and solve problems.
Lean Six Sigma Certification Types
Lean Six Sigma Certification Types - Role
Lean Six Sigma Project Types
8.3. ISO 9000 (Quality Management System)
1. Introduction of QMS

76
2. Elements of QMS (The Most critical steps)

77
Elements of QMS (The Most critical steps)

78
Elements of QMS (The Most critical steps)

79
Elements of QMS (The Most critical steps)

80
Elements of QMS (The Most critical steps)

81
82
83
84
3. ISO 9001:2008. The most Critical Steps
1. Quality Policy
2. Quality System
3. Documented Procedures
4. Infrastructure
5. Map all key processes
6. Quality Goals
7. Monitoring + Measurement
8. Purchasing requirements
9. Customer Information
10. Check performance
11. Audit for possible non-conformance 85
4.Quality Audit

86
Quality Audit

87
5. Certification of QMS

88
Certification of QMS

89
6. Industry related Quality Management System

90
91
92
93
End of Chapter Eight 94