Final Report by Sidhartha Singhania
Final Report by Sidhartha Singhania
Final Report by Sidhartha Singhania
ON
“LEAN MANUFACTURING”
By
SIDHARTHA SINGHANIA
1
SEMINAR REPORT
ON
“LEAN MANUFACTURING”
By
SIDHARTHA SINGHANIA
Guided by
2
DEPARTMENT OF MECHANICAL ENGINEERING
CERTIFICATE
This is to certify that the seminar entitled “LEAN MANUFACTURING” has been carried out
by SIDHARTHA SINGHANIA under my guidance in partial fulfillment of the degree of
Bachelor of Technology in MECHANICAL Engineering of Rajasthan Technical University,
Kota during the academic year 2009-2010.To the best of my knowledge and belief this work has
not been submitted elsewhere for the award of any other degree.
3
ACKNOWLEDGEMENT
“All the work is completed because of nice guidance, without proper guidance every work is
looking like freezing a sea and saying it is still water.”
I wish to express my heart-felt appreciation to many who have contributed to this project, both
explicitly and implicit. Finally I shall be failing in my duty, if I do not heartily acknowledge the
depth of gratitude to “My Friends” who encouraged me with their true mission of perception.
SIDHARTHA SINGHANIA
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INDEX
S.No. DETAILS PAGE No.
1
1.4. Main Kind Of Waste 4
2
1.5 Lean Manufacturing Principles And Techniques 4-6
1.6 Lean Manufacturing Implementation In Industry. 7-8
2. METHODOLOGIES. 9-18
2.1 Tools Of Lean Manufacturing. 9-17
2.1. The 3 M’s- Muda, Mura, Muri 9-11
1
2.1. Kaizen. 12
2
2.1. PDCA Cycle 12-13
3
2.1. The 5 S’s 13-15
5
4
2.1. Poka Yoke 16
5
2.1. Six Sigma. 16
6
2.1. Value Stream Mapping. 17
7
2.2 Implementation Stage Of Lean Manufacturing. 17
2.3 Benefits Of Lean Manufacturing. 18
2. Comparison Of Lean Vs Traditional Manufacturing. 18
4
3. CONCLUSION AND RESULTS. 19-20
3. Introduction. 19
1
3.2 Summary Of Work. 19
3.3 Conclusion. 19-20
3.4 Concluding Remarks. 20
ABSTRACT
st
The technology during the 21 century offers a great promise to the people all over the
world. The latest advances in Engineering Science and technology have given engineers
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powerful tools for re-assessing and reorganizing the systems.
In the present business scenario, competitiveness of manufacturing companies is
determined by their ability to meet and respond as swiftly as possible to the changing
environment scenario and to produce and supply high-quality products at lower cost as per
demand of the customer.
All the manufacturing companies are striving too hard to achieve their aims,
objectives and their capabilities by proper planning and skillfulness, through application of
automation and innovative concepts, e.g. lean manufacturing, just-in-time (JIT), and total
quality management (TQM). Among these innovative concepts, lean manufacturing is
recognized by the manufacturing companies as a major driver to achieve world-class
capabilities. Many large and medium-size manufacturing companies have adopted lean
manufacturing concepts, and experienced reduction in manufacturing lead time and material
handling cost, and improvement in quality with other benefits.
It is generally agreed that for a lean manufacturing programme to be effective, it
should include a set of tools and techniques or provisions to ensure management commitment,
employee involvement, identification of wastes, development of controls for wastes and
training and education for employees. These tools and techniques are said to be typical of any
comprehensive lean manufacturing implementation programme. The implementation of
lean manufacturing reduced the waste in the industry and enhances the profit and production.
CHAPTER-1
I NTRODUCTION
1.1 INTRODUCTION
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Lean manufacturing derives it name from the manufacturing systems and processes of the
Toyota production system that are so effective at producing at low cost, and short cycle
times. These systems are highly flexible and responsive to customer requirements. Lean
manufacturing is a multi-dimensional approach that encompasses a wide variety of
management practices, including just-in-time, quality systems, work teams, cellular
manufacturing, supplier management, etc. in an integrated system. The core thrust of lean
production is that these practices can work synergistically to create a streamlined, high
quality system that produces finished products at the pace of customer demand with little or
no waste .
Lean Manufacturing, also called Lean Production, is a set of tools and methodologies that
aims for the continuous elimination of all waste in the production process. The main benefits
of this are lower production costs; increased output and shorter production lead times.
More specifically, some of the goals include:
Defects and wastage - Reduce defects and unnecessary physical wastage, including excess
use of raw material inputs, preventable defects, and costs associated with reprocessing
defective items and unnecessary product characteristics which are not required by customers.
Cycle Times - Reduce manufacturing lead times and production cycle times by reducing
waiting times between processing stages, as well as process preparation times and
product/model conversion times.
Inventory levels - Minimize inventory levels at all stages of production, particularly work-in-
progress between production stages. Lower inventories also mean lower working capital
requirements.
Labor productivity - Improve labor productivity, both by reducing the idle time of workers
and ensuring that when workers are working, they are using their effort as productively as
possible (including not doing unnecessary tasks or unnecessary motions).
Utilization of equipment and space - Use equipment and manufacturing space more
efficiently by eliminating bottlenecks and maximizing the rate of production though existing
equipment, while minimizing machine downtime
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Flexibility - Have the ability to produce a more flexible range of products with
minimum changeover costs and changeover time.
Output - Insofar as reduced cycle times, increased labor productivity and elimination
of bottlenecks and machine downtime can be achieved, companies can, generally increase
output from their existing facilities.
a) Recognition of waste - The first step is to recognize what does and does not create value
from the customer’s perspective. Any material, process or feature, which is not required for
creating value from the customer’s perspective, is waste and should be eliminated. For
example, transporting materials between workstations is waste because it can potentially be
eliminated.
b) Standard processes - Lean requires the implementation of very detailed production
guidelines, called Standard Work, which clearly states the content, sequence, timing and
outcome of all actions by workers. This eliminates variation in the way that workers perform
their tasks.
c) Continuous flow - Lean usually aims for the implementation of a continuous production
flow free of bottlenecks, interruption, detours, backflows or waiting. When this is successfully
implemented, the production cycle time can be reduced by as much as 90%.
d) Pull-production - Also called Just-in-Time (JIT), Pull-production aims to produce only
what is needed, when it is needed. Production is pulled by the downstream workstation so that
each workstation should only produce what is requested by the next workstation.
e) Quality at the Source - Lean aims for defects to be eliminated at the source and for quality
inspection to be done by the workers as part of the in-line production process.
f) Continuous improvement - Lean requires striving for perfection by continually removing
layers of waste, as they are uncovered. This in turn requires a high level of worker
involvement in the continuous improvement process.
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1.4 LEAN MANUFACTURING CONCEPTS
In Lean Manufacturing, the value of a product is defined solely based on what the
customer actually requires and is willing to pay for. Production operations can be grouped
into following three types of activities:
Value-added activities are those activities, which transform the materials into the exact
product that the customer requires.
Non value-added activities are activities, which aren't required for transforming the
materials into the product that the customer wants. Anything, which is non-value-added, may
be defined as waste. Anything that adds unnecessary time, effort or cost is considered non
value-added. Another way of looking at waste is that it is any material or activity for which the
customer is not willing to pay. Testing or inspecting materials is also considered waste since
this can be eliminated insofar as the production process can be improved to eliminate defects
from occurring.
Research at the Lean Enterprise Research Center (LERC) in the United Kingdom indicated
that for a typical manufacturing company the ratio of activities could be broken down as
follows .
• Value –added activity 5%
Originally seven main types of waste were identified as part of the Toyota Production
System
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a) Over produ ct ion - Producing too soon, resulting in poor flow of information or goods and
excess inventory.
b) Defects - Frequent errors in paperwork or material/ product quality problems resulting in
scrap and / or rework, as well as poor delivery performance.
c) Unn ecessary inventory - Excessive storage and delay of information or products,
resulting in
excess inventory and cost, leading to poor customer service.
d) Inapp ropriate processing - Going about work processes using the wrong set of tools,
procedures or systems, often when a simpler approach may be more effective.
e) Excessive tr ansport ation - Excessive movement of people, information or goods, resulting
in wasted time and cost.
f) Waiting - Long periods of inactivity for people, information or goods, resulting in poor
flow and long lead times.
g) Unn ecessary motion - Poor workplace organization, resulting in poor ergonomics, e.g.,
excessive bending or stretching and frequently lost items.
1. Value Definition:
This principle states that quality is what the customer wants. The principle entails specifying
value from end customer's perspective, i.e., product cost, quality, variety, delivery and
response time. The most important tool for defining the value from customer point of view is
QFD: Quality Function Deployment (QFD) is a methodology for building the "Voice of the
Customer" into product and service design. It is a team tool, which captures customer
requirements and translates those needs into characteristics about a product or service
2. Value Stream Analysis:
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concept to market. Value Stream Mapping is a pencil and paper tool that helps you to see
and understand the flow of material and information as a product makes its way through the
value stream. Kalsaa s, (2002) limits the focus of value stream mapping to the” door-to-door”
production flow inside a plant. Both the material and information flows have to be
considered, and the mapping addresses one product family at time. The object of Lean
manufacturing is to get one process to make only what the next process needs when it needs it.
In accordance with the “pull”-thinking the mapping start at the shipping end and
proceed upstream. Each process on the material flow path is object of being mapped. The
point is to uncover the value-adding time and the waste of non value adding time. A central
point is to synchronize pace of production to that of sales, hence it is making efforts to
design work processes with a balanced cycle time to that of customer takt time (available
work time per Shift/customer demand rate per shift).
The future state is created by designing the physical material flow first using a Lean
Manufacturing philosophy and applying the tools from the Lean Enterprise House that fit in
this particular circumstance. After the material flow is complete, the information flow
required to support the Lean operation is designed. The future state then becomes the “road
map” or “blue print” for the activities that must take place for the future state to become
reality .
3. Flow:
One piece production never delays a value adding step by a non –value adding step One-
piece flow or continuous flow processing is a concept which means that items are processed
and moved directly from one processing step to the next, one piece at a time. One- piece
flow helps to maximum utilization of resources, shorten lead times, and identify problems
and communication between operations. Single Minute Exchange of Dies (SMED) is a tool
used for this principle. SMED is an approach to reduce output and quality losses due to
changeovers. SMED is a system that allows the mixing of production without slowing
output or creating higher costs from waste of setup
4. JIT/Pull
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Closely associated with lean manufacturing is the principle of just-in-time, since it is
a management idea that attempts to eliminate sources of manufacturing waste by producing
the right part in the right place at the right time. This addresses waste such as work-in-
process material, defects, and poor scheduling of parts delivered. JIT can be considered as a
method whereby the production lead time is shortened by ‘having all the processes produce
the necessary parts at the needed time and have on hand only the minimum stock necessary
to hold the processes together’ Customer demand is the driving force behind both systems;
the major difference is in how each system handles customer demand. Just-in-time is a tool
that enables the internal process of a company to adapt to sudden changes in the demand
pattern by producing the right product at the right time, and in the right quantities Moreover,
just-in-time is a critical tool to manage the external activities of a company such as
purchasing and distribution. It can be thought of as consisting of three elements: JIT
production, JIT distribution, and JIT purchasing.
5. Perfection:
This principle of Lean Manufacturing Approach involves using perfection in all the four
principles explained so far. The techniques and approaches included here are New seven Q.C.
Tools, Six sigma, Standard work and Preventive Maintenance. Fig. 2.1 pictorially
represents the five principles of Lean Manufacturing and their interdependence.
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Manufacturing systems are classified into two major classes; discrete manufacturing
and continuous manufacturing (also referred to as the process industry). Discrete
manufacturing refers to making discrete products such as an engine, an automobile, a drive
shaft, a coffee maker, or a washing machine. On the other hand, continuous manufacturing
includes making products that are measured or metered rather than being counted. Examples
include paint, steel, textile, flat glass, resin, oil, and flour.
In manufacturing there are three different general classifications in term of production plants:
job- shop production, batch production, and mass production. Job-shop production system
is also known as intermittent production, and is characterized by low-volume, high variety
products
The second type of production system is batch production. In batch production medium
volume and medium variety of products are produced. Medium size lots of the same product
may be produced once or at recurring intervals. General-purpose machines combined
with specially designed jigs and fixtures designed for higher production rates are used in
batch production.
The third type of production system is mass production. High volume low variety
products characterize mass production. It requires expensive and special-purpose machines
to satisfy the high demand rates for a product. Two types, quantity production and flow
production can further distinguish mass production. In quantity production normally standard
machines (e.g., injection molding and punch presses) are devoted for production of one type
of product with high demand rate.
Since the introduction of the Toyota production system, the lean concept has spread all over
the world. The apparent success of Toyota in implementing a lean manufacturing system has
led many of the world’s automotive industries to try to implement this new idea of “lean” at
their own companies. In this new era the application of lean manufacturing is seen in almost
all companies in the automotive industry in Japan, Europe, North America and India.
Most of the lean manufacturing ideas have been applied at the component assembly level,
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especially in discrete manufacturing. In the automotive industry the bulk of the work involved
in making a car is carried out at the assembly level. This is due to the huge number of parts
involved in building a car. These individual parts are first assembled at the component plants
and then the final assembly of these parts is carried out at the assembly plant The success of
the Toyota production system has led the way for many companies in the discrete
manufacturing industry to become lean in order to reduce cost through waste reduction and
continuous improvement. The lean manufacturing concept is now being widely used in
component assembly operations in a variety of industries, e.g., automotive, electronics, and
cameras . In the United States many other companies particularly in thediscrete industry
have adapted lean manufacturing tools and techniques. These include industries like
shipbuilding, telecommunication equipment, office furniture, appliances, and computer part
assembly. Other areas that have implemented lean manufacturing, particularly in Europe,
include motorcycles and scooters, clothing, amusement park equipment, construction of
vacuum pumps, air conditioning systems for cars, and bicycle components.
In a study done in 2001, a survey was conducted on the adoption of lean manufacturing tools
and techniques. The study included 313 telephone interviews and 2,511 responses from mail
surveys. The results of the survey illustrate that 32% of manufacturers use predictive or
preventive maintenance, an increase from 28% in 2000 and 20% in 1999. also 23% of
manufacturers are using continuous-flow production, up from 21% in 2000 and 18% in 1999,
and 19% of manufacturing firms have adopted cellular manufacturing, an increase from 17%
in 2000. Less than 20% of manufacturers adapted other lean tools such as lot-size reductions,
bottleneck/constraint removal, and quick-changeover techniques Another lean manufacturing
tool that has been widely used in the discrete industry is JIT. The automotive industry has
been strongly influenced by the fundamental concept of JIT. Toyota for example led the way
in using JIT where principles have been used with its suppliers .In the fifties, the Japanese
shipyards implemented JIT in their steel deliveries from steel mills. states that JIT
practices have been implemented in industries like electronic/electric, transportation
equipment, health and medical components, and machinery
CHAPTER-2
15
METHODOLOGIES
2.1 Tools
Muda is a traditional Japanese term for an activity that is wasteful and doesn't add value or is
unproductive, etymologically none + trivia or un-useful in practice or others. It is also a key
concept in the Toyota Production System (TPS) and is one of the three types of waste (Muda,
Mura, Muri) that it identifies. Waste reduction is an effective way to increase profitability.
Toyota merely picked up these three words beginning with the prefix mu-,. which in Japan are
widely recognized as a reference to a product improvement program or campaign.
Muda has been given much greater attention as waste than the other two which means that whilst
many Lean practitioners have learned to see muda they fail to see in the same prominence the
wastes of mura (unevenness) and muri (overburden). Thus whilst they are focused on getting
their process under control they do not give enough time to process improvement by redesign.
The expression "Learning to see" comes from an ever developing ability to see waste where it
was not perceived before. Shigeo Shingo, a co-developer of TPS, observed that it's only the last
turn of a bolt that tightens it - the rest is just movement. This level of refined 'seeing' of waste has
enabled him to cut car body die changeover time to less than 3% of its duration in the 1950s as of
2010. Note that this period has allowed all the supporting services to adapt to this new capability
and for the changeover time to undergo multiple improvements. These multiple improvements
were in new technologies, refining value required by 'downstream' processes and by internal
process redesigns.
The following "seven wastes" identify resources which are commonly wasted. They were
identified by Toyota’s Chief Engineer, Taiichi Ohno as part of the Toyota Production System:
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Overproduction
Overproduction happens each time you engage more resources than needed to deliver to your
customer. For instance, large batch production, because of long change over time, exceeds the
strict quantity ordered by the customer. For productivity improvement, operators are required to
produce more than the customer needs. Extra parts will be stored and not sold. Overproduction is
the worst muda because it hides or generates all others, especially inventory. Overproduction
increases the amount of space needed for storing raw material as well as finished goods. It also
requires a preservation system
Unnecessary transportation
Each time a product is moved it stands the risk of being damaged, lost, delayed, etc. as well as
being a cost for no added value. Transportation does not make any transformation to the product
that the consumer is supposed to pay for.
Inventory
Motion
As compared to Transportation, Motion refers to the producer, worker or equipment. This has
significance to damage, wear and safety. It also includes the fixed assets and expenses incurred
in the production process.
Defects
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Whenever defects occur, extra costs are incurred reworking the part, rescheduling production,
etc.
Over-processing
Over-processing occurs any time more work is done on a piece than what is required by the
customer. This also includes using tools that are more precise, complex, or expensive than
absolutely required.
Waiting
Whenever goods are not in transport or being processed, they are waiting. In traditional
processes, a large part of an individual product's life is spent waiting to be worked on.
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2.1.2 Kaizen
Kaizen (Japanese for "improvement" or "change for the better") refers to a philosophy or
practices that focus upon continuous improvement of processes in manufacturing, engineering,
supporting business processes, and management. It has been applied in healthcare, government,
banking, and many other industries. When used in the business sense and applied to the
workplace, kaizen refers to activities that continually improve all functions, and involves all
employees from the CEO to the assembly line workers. It also applies to processes, such as
purchasing and logistics, that cross organizational boundaries into the supply chain. By
improving standardized activities and processes, kaizen aims to eliminate waste. Kaizen was first
implemented in several Japanese businesses after the Second World War, influenced in part by
American business and quality management teachers who visited the country. It has since spread
throughout the world
• Teamwork
• Personal discipline
• Improved morale
• Quality circles
• Suggestions for improvement
The Toyota Production System is known for kaizen, where all line personnel are expected to stop
their moving production line in case of any abnormality and, along with their supervisor, suggest
an improvement to resolve the abnormality which may initiate a kaizen.
• Standardize an operation
• Measure the standardized operation (find cycle time and amount of in-process inventory)
• Gauge measurements against requirements
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• Innovate to meet requirements and increase productivity
• Standardize the new, improved operations
'5S' is the name of a workplace organization methodology that uses a list of five Japanese words
which are seiri, seiton, seiso, seiketsu and shitsuke. Transliterated or translated into English, they
all start with the letter S. The list describes how items are stored and how the new order is
maintained. The decision making process usually comes from a dialogue about standardization
which builds a clear understanding among employees of how work should be done. It also instills
ownership of the process in each employee.
Phase 1 - Sorting:Eliminate all unnecessary tools, parts, instructions. Go through all tools,
materials, etc., in the plant and work area. Keep only essential items. Everything else is stored or
discarded.
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Phase 2 - Straightening or Setting in Order: There should be a place for everything and
everything should be in its place. The place for each item should be clearly labeled or
demarcated. Items should be arranged in a manner that promotes efficient work flow. Workers
should not have to repetitively bend to access materials. Each tool, part, supply, piece of
equipment, etc. should be kept close to where it will be used (i.e. straighten the flow path).
Seiton is one of the features that distinguishes 5S from "standardized cleanup". This phase can
also be referred to as Simplifying.
Phase 3 - Sweeping or Shining or Cleanliness (Systematic Cleaning): Keep the workplace tidy
and organized. At the end of each shift, clean the work area and be sure everything is restored to
its place. This makes it easy to know what goes where and ensures that everything is where it
belongs. A key point is that maintaining cleanliness should be part of the daily work - not an
occasional activity initiated when things get too messy.
Phase 4 - Standardizing: Work practices should be consistent and standardized. Everyone should
know exactly what his or her responsibilities are for adhering to the first 3 S's.
Phase 5 - Sustaining the discipline: Maintain and review standards. Once the previous 4 S's have
been established, they become the new way to operate. Maintain focus on this new way and do
not allow a gradual decline back to the old ways. While thinking about the new way, also be
thinking about yet better ways. When an issue arises such as a suggested improvement, a new
way of working, a new tool or a new output requirement, review the first 4 S's and make changes
as appropriate.
A sixth phase, "Safety,"' 'is sometimes added. It is reasonable to assume that a properly planned
and executed 5S program will inherently improve workplace safety, but some argue that
explicitly including this sixth S ensures that workplace safety is given primary consideration.'
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Before 5 S
After 5 S
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2.1.5 Poka Yoke
Six Sigma seeks to improve the quality of process outputs by identifying and removing the
causes of defects (errors) and minimizing variability in manufacturing and business processes. It
uses a set of quality management methods, including statistical methods, and creates a special
infrastructure of people within the organization ("Black Belts", "Green Belts", etc.) who are
experts in these methods. Each Six Sigma project carried out within an organization follows a
defined sequence of steps and has quantified targets. These targets can be financial (cost
reduction or profit increase) or whatever is critical to the customer of that process (cycle time,
safety, delivery, etc.).
The term six sigma originated from terminology associated with manufacturing, specifically
terms associated with statistical modelling of manufacturing processes. The maturity of a
manufacturing process can be described by a sigma rating indicating its yield, or the percentage
of defect-free products it creates. A six-sigma process is one in which 99.99966% of the products
manufactured are free of defects, compared to a one-sigma process in which only 31% are free of
defects. Motorola set a goal of "six sigmas" for all of its manufacturing operations and this goal
became a byword for the management and engineering practices used to achieve it.
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2.1.7 Value stream mapping
Value stream mapping is a lean manufacturing technique used to analyze the flow of materials
and information currently required to bring a product or service to a consumer. At Toyota, where
the technique originated, it is known as "material and information flow mapping".It can be used
in any process that needs an improvement.
Value stream mapping is a helpful method that can be used in Lean environments to identify
opportunities for improvement in lead time. Although value stream mapping is often associated
with manufacturing, it is also used in logistics, supply chain, service related industries,
healthcare, software development, and product development.
In a build-to-the-standard form Shigeo Shingo suggests that the value-adding steps be drawn
across the centre of the map and the non-value-adding steps be represented in vertical lines at
right angles to the value stream. Thus the activities become easily separated into the value stream
which is the focus of one type of attention and the 'waste' steps another type. He calls the value
stream the process and the non-value streams the operations. The thinking here is that the non-
value-adding steps are often preparatory or tidying up to the value-adding step and are closely
associated with the person or machine/workstation that executes that value-adding step.
Therefore each vertical line is the 'story' of a person or workstation whilst the horizontal line
represents the 'story' of the product being created.
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2.3 Benefits of Lean Manufacturing
• Productivity Improvement
• Total manufacturing time saved
• Less scrap
• Low inventory
• Quality improvement
• Plant space saved
• Better labour utilization
• Safety of operations
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CHAPTER- 3
CONCLUSIONS AND RESULTS
3.1 INTRODUCTION
This chapter covers the summary of the research work, its results and conclusions.
Results of analysis and inferences drawn have been utilized to design a phased approach for
implementation of lean manufacturing in a manufacturing industry. Conclusions have been
drawn and recommendations are made for the use of industry in future. The
limitations along with scope for future work are also covered in this chapter.
3.3 CONCLUSION
1. Defects
2. Inventory
5. Over production
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3. The waste associated with defects and inappropriate processing can be reduced
with a small effort in a short time frame with low cost.
4. Problem related to inventory can be solved by engineering controls. Most of the
control can be implemented in a short period of time and with a small effort and low
cost.
5. The excessive material movement and delay due to waiting can be reduced
by higher cost and small effort in reducing breakdown, absenteeism.
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