Introduction to Lean

Manufacturing

Dr K K Sharma 1
One Page Overview

• 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.

Dr K K Sharma 2
Contents
• Benefits of Lean Manufacturing
• The Origins of Lean
Manufacturing
• What Is Lean Manufacturing?
• Waste, Friction, or Muda
• Lean Manufacturing and Green
Manufacturing/ ISO 14001
• Some Lean Manufacturing
Techniques
• Conclusion

Dr K K Sharma 3
Benefits of Lean
Manufacturing

• Lean manufacturing
delivers an insurmountable
competitive advantage
over competitors who don't
use it effectively.

Dr K K Sharma 4
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

Dr K K Sharma 5
Bottom Line and the
Language of Money
• The first comprehensive
implementation of lean
manufacturing yielded:
• Stock appreciation of 63 percent
per year, for 16 years (not
counting dividends)
• 7.2 percent annual wage growth
• The next section will discuss
lean manufacturing's origins.

Dr K K Sharma 6
The Origin of Lean
Manufacturing

Discussion question:
Who created the Toyota
Production System?

Dr K K Sharma 7
The Creator of the Toyota
Production System

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Origin of the Toyota
Production System
• Taiichi Ohno said openly that
he got the idea from Henry
Ford's books and the American
supermarket.
• Ford's My Life and Work (1922)
describes just-in-time (JIT) and
other lean concepts explicitly.
• Depletion of supermarket shelf
stock triggers replenishment; it is
a "pull" system like kanban or
Drum-Buffer-Rope.

Dr K K Sharma 9
Bottom Line Results of
the TPS
• The Ford Motor Company's
original stock grew 63% per
year (not counting dividends)
and 7.2% annual wage growth.
• Toyota recently superseded
General Motors as the world's
largest automobile company.
• The next section will show how
the TPS delivers these results.

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What is Lean
Manufacturing?
A systematic approach to
the identification and
elimination all forms of
waste from the value
stream.

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Concept of Friction,
Waste, or Muda
Understanding of friction,
waste, or muda is the
foundation of the lean
Manufacturing.

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The First Step is to
Recognize the Waste
• This principle has been
stressed by:
• Henry Ford
• Taiichi Ohno (Toyota
production system)
• Tom Peters (Thriving On
Chaos)
• Shigeo Shingo
• J. F. Halpin (Zero Defects)

Dr K K Sharma 13
Waste Often Hides in
Plain View
• We cannot eliminate the waste
of material, labor, or other
resources until we recognize it
as waste.
• A job can consist of 75 percent
waste (or even more).
• Classic example: brick laying in
the late 19th century

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Waste is Often Built
Into Jobs

Pre-Gilbreth Bricklaying
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This is a Real Example
• Top: "The usual
method of providing
the bricklayer with
material" (Gilbreth,
Motion Study,
1911).
• Bottom:
"Non-stooping
scaffold designed
so that uprights are
out of the
bricklayer's way
whenever reaching
for brick and mortar
at the same time."

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Post-Gilbreth Brick
Laying

The solution is obvious (in

retrospect), but first we have to
know that we have a problem!
Dr K K Sharma 17
Another Example:
Fabric Folding

Redesign of this job to eliminate

the need to walk doubled its
productivity. We will see that
material waste also hides in
plain sight.

Dr K K Sharma 18
Material Waste Hides in
Plain Sight
Dirty parts Clean parts

Clean Clean
Water Water
Cleaning Cleaning
Tank 1 Tank 2

Discard water

The parts get clean, so no one

questions this. What is wrong with
this picture?

Dr K K Sharma 19
Why Not Make the
Water Work Twice?
Dirty parts Clean parts

Clean
Water
Cleaning Cleaning
Tank 1 Tank 2

Discard water

The almost clean water from the

second tank is good enough for use in
the first tank. Water usage can be cut
50 percent.
Dr K K Sharma 20
Spin Coating of
Semiconductor Wafers

The product is the coated wafer,

and "the job has always been
done this way" in the
semiconductor industry. This is
how waste hides in plain view.

Dr K K Sharma 21
Lessons so far
• Waste often hides in plain
view.
• People become used to "living
with it" or "working around it."
• Definition for employees at all
levels: If it's frustrating, a
chronic annoyance, or a
chronic inefficiency, it's
friction. (Levinson and
Tumbelty, 1997, SPC Essentials
and Productivity Improvement,
ASQ Quality Press)

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TPS Definitions of
Waste
1. Overproduction
2. Waiting, including time in queue
3. Transportation (between
workstations, or between supplier
and customer)
4. Non-value-adding activities
5. Inventory
6. Waste motion
7. Cost of poor quality: scrap,
rework, and inspection

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Waste (notes page)

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Waiting as a Form of
Waste
• Of the total cycle time or
lead time, how much
involves value-adding
work?
• How much consists of
waiting?

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The Value-Adding
"Bang!"
• Masaaki Imai uses "Bang!"
to illustrate that the value-
adding moment may
consist of a literal "Bang!"
• Contact between tool and
work
• Contact between golf club
and ball

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Imai's Golf Analogy
• In a four hour golf game, the
golf club is in contact with the
ball for less than two seconds.
• The same proportion of value-
adding to non-value-adding time
prevails in many factories.
• Additional analogies:
• Waiting for other players =
waiting for tools
• Walking = transportation
• Selecting a club and addressing
the ball = setup

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The Value-Adding
"Bang," Continued
• In a factory, the value-adding
"Bang!" takes place when, for
example, a stamping machine
makes contact with the part.
• All other time, such as waiting,
transportation, and setup, is non-
value-adding.
• The proportion of value-adding
to non-value-adding time may in
fact be similar to that in a typical
golf game!

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Cycle Time Accounting
• The basic idea is to attach
a "stopwatch" to each job
(or sample jobs) to
determine exactly how the
work spends its time.
• In practice, the production
control system should
handle this.
• The Gantt Chart may be
modified to display the times
by category.

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Cycle Time Accounting,
Continued

• The clock starts the instant a

job begins an activity and stops
the instant it ends.
• If the work waits for a tool or
operator, this is a delay and not
processing.
• When work is gated out of an
operation, it usually waits for
transportation (delay) or is in
transit (transportation).
• Placement of the work in the tool
is handling, not processing.
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Gantt Chart
Modification
WORKSTATION 1
Waiting for operator
Waiting for setup
Machining
Waiting to form transfer batch
Waiting for cart
Transportation
Waiting for tool (unbatching)
WORKSTATION 2
Machining
Waiting to form transfer batch
Waiting for cart
Transportation

0 50 100 150 200 250

Only machining is value-adding time.

This Gantt format of the cycle time makes
non-value-adding time highly visible.

Dr K K Sharma 31
Waste: Summary

• This section has shown how

wastes of material, labor, and
cycle time can hide in plain
view.
• Cycle time reduction can yield
decisive competitive
advantages, including make to
order as opposed to make to
forecast.
• The next section will cover
"Green" manufacturing.

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Green is the Color of
Money
"…we will not so lightly waste
material simply because we
can reclaim it—for salvage
involves labour. The ideal is to
have nothing to salvage."
—Henry Ford, Today and
Tomorrow

Dr K K Sharma 33
The Birth of Green
Manufacturing
• Henry Ford could probably
have met ISO 14001
requirements in an era when
he could have legally thrown
into the river whatever wouldn't
go up the smokestack.
• "He perfected new processes—
the very smoke which had once
poured from his chimneys was
now made into automobile
parts." Upton Sinclair, The
Flivver King

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Ford's Green
Manufacturing
• Recovery and reuse of
solvents
• Distillation of waste wood for
chemicals yielded enough
money to pay 2000 workers.
• Kingsford charcoal
• Design of parts and processes
to minimize machining waste
• Reuse of packaging materials
• Slag  paving materials and
cement
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Identification of Material
and Energy Wastes
• Material and energy waste can
easily be built into a job.
• Elimination of these wastes is
central to "green"
manufacturing and the ISO
14001 standard and, more
importantly, very profitable.
• We cannot, however, remove
this waste before we identify it.

Dr K K Sharma 36
Control Surface
Approach

Material Inputs Material Outputs

Process

Energy Inputs Energy Outputs

Control Surface

The material and energy balance is

standard practice for chemical process
design. Outputs must equal inputs.
Material outputs, for example,
include everything that is thrown
away, as well as the product.
Dr K K Sharma 37
Example: Spin Coating of
Semiconductor Wafers
Photoresist
Wafers and
Photoresist

Process
Coated
Wafers
Control Surface

The control surface analysis

forces the waste to become
visible, and causes people to
ask if there is a practical way to
avoid it.
Dr K K Sharma 38
Example: Machining

Metal billets Metal turnings

and cutting and cutting
fluid fluid
Process
Product

Control Surface

The waste that is usually taken

for granted (metal chips and
used cutting fluid) suggests
product or process redesign to
reduce machining.
Dr K K Sharma 39
Discussion Question
• Do you know of processes in
which materials are thrown
away (or recycled)?
• If so, can the process or product
be redesigned to reduce the
waste?
• Could the discarded materials be
reused or recycled in some
manner?
• Can energy-intensive
processes be made more
efficient?

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Lean Manufacturing
Techniques

Some principles and

activities for lean
manufacturing

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Design for Manufacture
• Synergistic with ISO
9000:2000 7.3, Design Control.
• Involve manufacturing,
customers, and other related
departments in the design
process.
• Don't "throw the design over the
wall" to manufacturing. The
design must be manufacturable
by the equipment in the factory.
• Process capability: Design for
Six Sigma

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5S-CANDO
• 5S-CANDO, a systematic approach
to cleaning and organizing the
workplace, suppresses friction.
• Seiri = Clearing up
• "When in doubt, throw it out."
• Seitori = Organizing (Arranging)
• "A place for everything and everything
in its place."
• Seiso = Cleaning (Neatness)
• Shitsuke = Discipline
• Seiketsu = Standardization
(Ongoing improvement, holding the
gains)

Dr K K Sharma 43
Visual Controls
• "Basically, the intent is to make
the status of the operation
clearly visible to anyone
observing that operation"
(Wayne Smith, 1998).
• Visual controls are like a
nervous system (Suzaki, 1987)
• "Visual controls identify waste,
abnormalities, or departures
from standards" (Caravaggio,
in Levinson, 1998)

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Examples of Visual
Controls
• 5S-CANDO (arranging)
• Jidoka or autonomation
• Andon lights and buzzers announce
tool status.
• JIT: kanban squares, cards,
containers.
• Lines on the floor to mark reorder
points
• Safety: colored labels for materials
• Statistical process control charts:
should be clearly visible.

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Visible Management
• A visible production
management system should
indicate:
(1)What the operation is trying to
make
• Measure the takt rate, or desired
production per unit time.
(2)What the operation is achieving
(3)What problems hinder the
production goal?
• American workplaces used
such controls prior to 1911.

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"Pull" Production
Control Systems
• Just-In-Time (JIT)
• First described by Henry Ford in
My Life and Work (1922)
• Kanban
• Drum-Buffer-Rope (Goldratt)

• All reduce inventory and its

carrying costs, along with cycle
time.
• Tie-in with small lot and single
unit processing
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Drawbacks of Batch
Processing
• Running equipment (e.g. a heat
treatment furnace) at less than full
load wastes capacity. Waiting for a
full load wastes time.
• Waste of capacity is not a problem
except at a constraint operation
(Goldratt's Theory of Constraints).
• Batches introduce waiting time
when they arrive at single-unit tools
en masse.
• Batch-and-queue forces extra cycle
time (waiting) into the operation.

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Single-Unit Processing
Reduces Cycle Time
• Wayne Smith (1998) defines
manufacturing cycle efficiency
as (Value-adding time)÷(Total
cycle time)
• This is often less than 1 percent.
• Remember Masaaki Imai's
"value-adding Bang!" concept
• Golf analogy: the club head is in
contact with the ball for less than
two seconds in a typical game.

Dr K K Sharma 49
Single-Minute Exchange
of Die (SMED)

• Left column: non-value-adding

setup and load/unload activities
• Right column: value-adding
machining activities

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SMED Principles and
Benefits
1. Internal setup requires the
tool to stop.
• Reduce internal setup time, or
convert internal to external
setup.
2. External setup can be
performed while the tool is
working on another job.
3. SMED reduces cycle time by
facilitating smaller lot sizes,
mixed model production,
and/or single-unit flow
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Error-Proofing
(Poka-Yoke)
• Error-proofing makes it difficult
or impossible to do the job the
wrong way.
• Slots and keys, for example,
prevent parts from being
assembled the wrong way.
• Process recipes and data entry
also can be error-proofed.

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Summary and
Conclusion

Most of lean
manufacturing is
common sense!

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Summary
• Business activities can contain
enormous quantities of built-in
waste (muda, friction).
• The greatest obstacle to the
waste's removal is usually
failure to recognize it.
• Lean manufacturing includes
techniques for recognition and
removal of the waste.
• This delivers an overwhelming
competitive advantage.

Dr K K Sharma 54