MEM692

Lean
Manufacturing
Chapter 1: Introduction to
Lean Manufacturing
 Lession Outcomes

• Upon Completion of this chapter, the students are able to discuss and
analyse:
• 1.1 The history of Lean Manufacturing (CO1)
• 1.2 The implementation of Lean Manufacturing in various
companies (CO2).
 1.1 The History of Lean Manufacturing
• Lean manufacturing is a
production process based on
an ideology of maximising
productivity while
simultaneously minimising
waste within a manufacturing
operation.
• The lean principle sees waste
is anything that doesn't add
value that the customers are
willing to pay for.
1.1 The History of Lean Manufacturing
1.1 The History of Lean Manufacturing
• Frederick Taylor
• Frederick Taylor, the father of scientific management, was a pioneer in
studying the work practices and workers on the factory floor in the early
1890s.
• He developed concepts such as standardization of work and time studies as
well as motion studies to improve efficiency in work processes, operations,
and work methods.
• The Principles of Scientific Management: Provides the foundation for modern
organization and decision theory. This is done by describing the dilemma:
Workers fear that higher productivity will lead to fewer jobs.
• Taylor suggests that workers be encouraged to work and that the relationship
between the worker, shareholder, and consumer is reframed. This is a great
read for anyone who is interested in effective management practices.
1.1 The History of Lean Manufacturing
• Henry Ford
• Henry Ford, a pioneer in manufacturing, created the manufacturing strategy
in 1910. This involves all resources at the manufacturing site, including
people, machines, tools, and equipment. It allows for continuous production.
• The first American to advocate waste reduction (LEAN) resources. This was
how he made the Model T automobile and became the richest man.
• Ford couldn’t change its work methods as the world changed and was
unable to meet the market demand for new models, colors, and a variety of
products. Finally, in the 1920s, the rise of product proliferation and labor
unions took away Ford’s success. General Motors was the dominant
automobile manufacturer by the 1930s.
 1.1 The History of Lean Manufacturing
• Sakichi Toyoda
• In 1918, Sakichi Toyoda founded the Toyoda spinning-weaving company.
The Jidoka concept was the first to promote the TPS - The Toyota Production
System which aims to eliminate all waste.
• Jidoka- “automation with a human touch” means to improve quality at the source. In
1896, he invented the automatic loom. This machine not only replaced manual labor
but also allowed for the ability to make judgments about the machine.
• This system improved the efficiency and effectiveness of work by reducing
product defects and the associated wasteful work practices. Jidoka is a widely
adopted Lean method that allows for early detection and prompt stopping of
machinery or processes upon detection. This helps to fix the problem immediately. It
also assists in investigating the root cause of lean resources.
1.1 The History of Lean Manufacturing
• Kiichiro Toyota
• Kiichiro Toyota, the founder and second president of Toyota Motor Corporation
was his father. Sakichi Toyoda was his son. Later, in 1937, he founded Toyota
Motor Corporation.
• Kiichiro Toyoda’s Jidoka concept was passed on to him and he developed his
philosophy regarding just-in-time (JIT) manufacturing.
• To understand the flow of the assembly line concept, he visited the Ford plant in
Michigan and proposed the Toyota Production System. This new system was
designed to accurately size the machines according to their actual volume.
• It also introduced mistake proofing to ensure quality and correct sequencing of
work.
 1.1 The History of Lean Manufacturing
• Taichi Ohno
• Taichi Ohno’s greatest achievement was to combine the Just-in-Time and Jidoka
Systems. He was inspired by Ford’s 1953 methods and realized the future needs of
consumers.
• He visited America in 1953 to learn more about them. He was inspired to create the
kanban program.
• Even he practiced Dr. Edwards Deming’s method to ensure quality throughout the
entire process, from design to after-sales service to consumers.
• Ohno, who combined this philosophy with the Kiirocho’s just-in-time concept and
principle Kaizen, was able to practice it and bring it down to the floor. He is therefore
the true architect of the Toyota Production System.
 1.2 Implementation of Lean
Manufacturing in various companies
Examples of Companies That Using Lean Manufacturing Today
• Toyota – Automobile manufacturer
• Nike – Shoe and athletic clothing producer
• Caterpillar Inc. – World's leading manufacturer of construction and mining equipment,
• Kimberley-Clark Corporation – Manufacturer of sanitary paper products and surgical &
medical instruments
• Intel – One of the world’s largest producers of computer chips manufacturer.
• Parker Hannifin – One of the world’s largest producers of motion control technology
• John Deere – Manufacturer of agricultural machinery, heavy equipment, forestry
machinery, diesel engines, etc.
 1.2 Implementation of Lean
Manufacturing in various companies
Five Lean Principles
• The implementation of Lean Manufacturing is based on the five lean principles.
 1.2 Implementation of Lean
Manufacturing in various companies
Five Lean Principles
• According to Womack and Jones, there are five key lean principles: value, value
stream, flow, pull, and perfection.

1. Define Value
Value is always defined by the customer’s needs for a specific product. For
example:
•What is the timeline for manufacturing and delivery?
•What is the price point?
•What are other important requirements or expectations that must be met?
This information is vital for defining value.
 1.2 Implementation of Lean
Manufacturing in various companies
2. Value Stream Mapping (VSM)
• Once the value (end goal) has been determined, the next step is mapping the “value
stream.” This includes all the steps and processes involved in taking a specific
product from raw materials and delivering the final product to the customer.
• Value-stream mapping (VSM)is a simple but eye-opening experience that identifies
all the actions that take a product or service through any process—design,
production, procurement, HR, administration, delivery, or customer service. The idea
is to draw a "map" of the flow of material/product through the process, with a goal
of identifying every step that does not create value and then finding ways to
eliminate those wasteful steps.
• VSM is sometimes referred to as process re-engineering. Ultimately, this exercise
also results in a better understanding of the entire business operation.
 1.2 Implementation of Lean
Manufacturing in various companies
3. Create Flow
• After the waste has been removed from the value stream, the next step is to be
sure the remaining steps flow smoothly with no interruptions, delays, or
bottlenecks.
• In another words: “Make the value-creating steps occur in tight sequence so
that the product or service will flow smoothly toward the customer.”
• This may require breaking down silo thinking and making the effort to become
cross-functional across all departments, which can be one of the greatest
challenges for lean programs to overcome.
• However, studies show that this will also lead to huge gains in productivity and
efficiency—sometimes as high as 50% improvement or more.
 1.2 Implementation of Lean
Manufacturing in various companies
4. Establish Pull System
• With improved flow, time to market (or time to customer) can be dramatically
improved. This makes it much easier to deliver products as needed, as it means
the customer can “pull” the product from you as needed (often in weeks,
instead of months).
• As a result, products don’t need to be built in advance or materials stockpiled.
This reduces the need for an expensive inventory that needs to be managed,
saving money for both the manufacturer/provider and the customer.
 1.2 Implementation of Lean
Manufacturing in various companies
5. Pursue Perfection
• Accomplishing steps 1-4 is a great start, but the fifth step is perhaps the most
important: making lean thinking and process improvement part of your
corporate culture.
• Every employee should be involved in implementing lean.
• As gains continue to pile up, it is important to remember that lean is not a
static system and requires constant effort and vigilance to perfect.
• Lean experts often say that a process is not truly lean until it has been through
value-stream mapping at least half a dozen times.
 1.2 Implementation of Lean
Manufacturing in various companies
Toyota Production System
• The Toyota Production System relies on a number of
concepts: pull system, elimination of waste, Quick
Die changes (SMED), non-value added work, U-
shaped cells, and one-piece flow.
• The pull system defines the flow of the material
between different processes as determined by the
needs of the customers. The company practices the
pull system by using a Kanban system, which
provides a signal to the customer that the tools are
available for shipment to the next process in the
sequence.
1.2 Implementation of Lean
Manufacturing in various companies
Toyota Production System
• The Toyota Production System also identifies the waste, termed
as Muda. Additionally, it recognizes that waste is anything that
does not add value to the customers.
• There are seven types of waste: over-production, inventory
waste, defects, waiting, motion, over-processing and
transportation, and handling. The system aims at identifying and
eliminating these wastes to foster efficiency and effectiveness in
the production system.
 1.2 Implementation of Lean
Manufacturing in various companies
SMED
• Another method adopted by the company is
the Quick die changes (Single Minute
Exchange of Dies). The aim is to improve the
flow (Mura) of production. In other words, the
tools and changeovers should take less than
one minute (single digit) at the maximum.
• During the 1950s and 1960s, the company
suffered from bottlenecks at the car body
molding presses. The root cause was identified
as the high changeover times, which increased
the lot size of the production process and
drove up production costs.
 1.2 Implementation of Lean
Manufacturing in various companies
SMED
• This was especially true for the transfer of
heavy-weight dies on large transfer stamping
machines used to produce the body of the
vehicles.
• Toyota implemented the SMED by placing the
precision measurement devices.
 1.2 Implementation of Lean
Manufacturing in various companies
• U-Shaped Cells
• Further, the long production lines at Toyota were
wrapped using a U-shaped cell layout that
facilitates Lean manufacturing. This increases the
efficiency of the workers operating multiple
machines at a time.
• TPS practices the one–piece flow. It produces
one piece at a time instead of mass production.
Toyota places a single piece between different
workstations with the advantage of the least
variance in cycle time and minimum waiting
time. This helps to facilitate an optimum balance
between different operations and mitigates over-
production.
 1.2 Implementation of Lean
Manufacturing in various companies
• U-Shaped Cells
• In factories around the world, Toyota
consistently makes the highest-quality cars with
the fewest defects of any competing
manufacturer while using fewer labor hours,
less on-hand inventory, and half the floor space
of its competitors.
• The Toyota Way is the first book for a general
audience that explains the management
principles and business philosophy behind
Toyota’s worldwide reputation for quality and
reliability.
1.2 Implementation of Lean
Manufacturing in various companies
Zero Quality Control: Source Inspection and the Poke-Yoke system
• A combination of source inspection and mistake-proofing devices is the only
method to get to the zero defects.
• Shigeo Shingo shows how this proven system for reducing errors turns out
the highest quality products in the shortest period of time.
• Dr. Shingo provides 112 specific examples of poka-yoke development
devices. He also discusses inspection systems, quality control circles, and the
function of management concerning inspection.
1.2 Implementation of Lean
Manufacturing in various companies
Zero Quality Control: Source Inspection and the Poke-Yoke system
• Dr. Shingo’s classic industrial engineering rationale for prioritizing
process-based improvements over operational improvements in
manufacturing.
• He explains the basic mechanisms of TPS and examines production as a
functional network of processes and operations. Then, he discusses the
mechanism necessary to make JIT possible in any manufacturing plant.
1.2 Implementation of Lean
Manufacturing in various companies
Kaizen and the Art of Creative Thinking
• Dr. Shingo reveals how he taught Toyota and other Japanese companies the art
of identifying and solving problems.
• Furthermore, many companies in the West are trying to emulate Lean, but few
can do it. Many organization in the West do not recognize the creative potential
of every worker in solving problems.
• However, Lean Manufacturing is one of the most preferable industrial
management model in now day's globalization economic and especially
suitable for a broad range of manufacturing industries.