LEAN MANAGEMENT

Prepared by: Nabeela Awan

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Lean Management

Lean Management, lean enterprise, or lean production, often simply, "Lean," is a production practice that considers the expenditure of resources for any goal other than the creation of value for the end customer to be wasteful, and thus a target for elimination. Working from the perspective of the customer who consumes a product or service, "value" is defined as any action or process that a customer would be willing to pay for. Essentially, lean is centered on preserving value with less work. Lean management is a management philosophy derived mostly from the Toyota Production System (TPS) (hence the term Toyotism is also prevalent) and identified as "Lean" only in the 1990s. The steady growth of Toyota, from a small company to the world's largest automaker, has focused attention on how it has achieved this.

Overview
Also known as the flexible mass production, the TPS has two pillar concepts: Just-in-time (JIT) or "flow", and "autonomation" (smart automation). Adherents of the Toyota approach would say that the smooth flowing delivery of value achieves all the other improvements as side-effects. If production flows perfectly then there is no inventory; if customer valued features are the only ones produced, then product design is simplified and effort is only expended on features the customer values. "The Value adding activities are simply only those things the customer is willing to pay for, everything else is waste, and should be eliminated, simplified, reduced, or integrated" (Rizzardo, 2003). Improving the flow of material through new ideal system layouts at the customer's required rate would reduce waste in material movement and inventory.

Prepared by: Nabeela Awan

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Lean Management

Prepared by: Nabeela Awan

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Lean Management

1. A brief History of waste reduction thinking

The avoidance of waste has a long history. In fact many of the concepts now seen as key to lean have been discovered and rediscovered over the years by others in their search to reduce waste. Lean builds on their experiences, including learning from their mistakes.

2.1 Pre-20th century

The printer Benjamin Franklin contributed greatly to waste reduction thinking Most of the basic goals of Lean management are common sense, and documented examples can be seen as early as Benjamin Franklin. Poor Richard's Almanac says of wasted time, "He that idly loses 5s. worth of time, loses 5s., and might as prudently throw 5s. into the river." He added that avoiding unnecessary costs could be more profitable than increasing sales: "A penny saved is two pence clear. A pin a-day is a groat a-year. Save and have."

2.2 20th century

Frederick Winslow Taylor, the father of scientific management, introduced what are now called standardization and best practice deployment. In his Principles of Scientific Management, (1911), Taylor said: "And whenever a workman proposes an improvement, it should be the policy of the management to make a careful analysis of the new method, and if necessary conduct a series of experiments to determine accurately the relative merit of the new suggestion and of the old standard. And whenever the new method is found to be markedly superior to the old, it should be adopted as the standard for the whole establishment." Shigeo Shingo, the best-known exponent of single minute exchange of die (SMED) and errorproofing or poka-yoke, cites Principles of Scientific Management as his inspiration.

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Lean Management

2.LEAN PHILOSOPHY OF OPERATIONS MANAGEMENT

The espoused goals of Lean management systems differ between various authors. While some maintain an internal focus, e.g. to increase profit for the organization, others claim that improvements should be done for the sake of the customer. Some commonly mentioned goals are:

Improve quality: To stay competitive in today's marketplace, a company must understand its customers' wants and needs and design processes to meet their expectations and requirements.

Eliminate waste: Waste is any activity that consumes time, resources, or space but does not add any value to the product or service. See Types of waste, above.

Reduce time: Reducing the time it takes to finish an activity from start to finish is one of the most effective ways to eliminate waste and lower costs.

Reduce total costs: To minimize cost, a company must produce only to customer demand. Overproduction increases a companys inventory costs because of storage needs.

Steps to achieve lean systems

The following steps should be implemented to create the ideal Lean management system:[31]: 1. Design a simple manufacturing system 2. Recognize that there is always room for improvement 3. Continuously improve the Lean management system design

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Lean Management

1.1 Design a simple manufacturing system

A fundamental principle of Lean management is demand-based flow manufacturing. In this type of production setting, inventory is only pulled through each production center when it is needed to meet a customer's order. The benefits of this goal include:[31]

decreased cycle time less inventory increased productivity increased capital equipment utilization

1.2 There is always room for improvement

The core of lean is founded on the concept of continuous product and process improvement and the elimination of non-value added activities. "The Value adding activities are simply only those things the customer is willing to pay for, everything else is waste, and should be eliminated, simplified, reduced, or integrated" (Rizzardo, 2003). Improving the flow of material through new ideal system layouts at the customer's required rate would reduce waste in material movement and inventory.[31]

1.3 Continuously improve

A continuous improvement mindset is essential to reach a company's goals. The term "continuous improvement" means incremental improvement of products, processes, or services over time, with the goal of reducing waste to improve workplace functionality, customer service, or product performance (Suzaki, 1987). Stephen Shortell (Professor of Health Services Management and Organisational Behaviour Berkeley University, California) states:"For improvement to flourish it must be carefully cultivated in a rich soil bed (a receptive organisation), given constant attention (sustained leadership), assured the right amounts of light (training and support) and water (measurement and data) and protected from damaging."
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Lean Management

1.4 Measure
Overall equipment effectiveness (OEE) is a set of performance metrics that fit well in a Lean environment.

3.LEAN MANAGEMENT TECHNIQUES

(To Optimize Recycling Processes)

Do Lean management principles have a place is the world of waste and recycling? The concept of Lean management has grown out of Lean Manufacturing, the Toyota Production System, Justin-time (JIT) and Kaizen and is a way of applying waste saving principles to other areas of business beyond traditional manufacturing. It almost seems counter-intuitive to apply waste saving techniques to waste but we are of course referring to waste associated with the process such as excessive time spent double handling material, poor processing yields, waste of energy and so on. For the purpose of this discussion and to avoid confusion. One of the fundamentals of Lean is that by improving efficiency you reduce costs and increase capacity thereby improving profits.

Tools Used in Lean Management

Some of the tools used in Lean include:

Building cells The 5Ss Kanban Design Six Sigma 3P

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Lean Management

Lets discuss some of these techniques in a bit more detail. Building Cells

In the Lean culture another technique for removing inefficiencies is building cells. Many traditional recycling processes are serial lines with specific stations that in some cases are far apart and people have to move material considerable distances from one process to the next. The philosophy behind cells is that you move the process to the people and not the other way around. This obviously yields the greatest benefit in manual intensive processes. As a quick guide to building cells you should: Calculate the process time for the existing process Determine bottlenecks or pacing operations (which steps take the longest) Brainstorm to come up with a new arrangement Move some stations and machines Man it, run it and time it, move it again if necessary Document new process when you are happy

Generally, it is best to arrange equipment and materials in a U-shaped pattern leaving as little room between machines or stations as possible, safety permitting. 5S

5S is a Lean management method used to standardise processes and make problems and opportunities for improvement highly visible. The 5Ss were originally devised in Japan and are translated as follows:

Seiri Seiton Seiso Seiketsu Shitsuke

- Sort and eliminate - Order - Clean - Maintain - Discipline

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Lean Management

So when so that anybody looking at the processing facility can assess the state of the process in 10 seconds or less. Seiketsu (Maintain) this primarily means to implement a 5S standard and maintain it. However, I also believe it extends to getting workers to implement and adhere to regular equipment maintenance and preventative maintenance. Shitsuke (Discipline) Implementing and maintaining 5S principles requires discipline. applied to the workplace the 5Ss can be further explained as follows: Seiri (Sort) sort and remove anything that is not used or needed. It is amazing how much clutter accumulates in factories for no other reason than thats always been there. Seiton (Order) establish a repeatable process and mark out locations for waste including inbound waste/product, WIP staging areas, processed waste/finished goods; tools including hand tools, pump-barrows, shredders, balers, weigh-scales, IT equipment and any other processing equipment. Use paint or tape to mark out locations for these things. Seiso (Clean) clean the workplace and implement a regime of regular cleaning. I know this may seem futile in a waste processing facilities but the whole point is to establish some order and visual management Kanban. Kanban. Often referred to as the "nervous system" of lean production, kanban is a key technique that determines a processes production quantities, and in doing so, facilitates JIT production and ordering systems. Contrary to more traditional "push" methods of mass production which are based on an estimated number of expected sales, kanban's "pull" system creates greater flexibility on the production floor, such that the organization only produces what is ordered. Kanban are a critical part of a JIT system. In implementing a kanban system, organizations typically focus on four important "rules".

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Lean Management

Kanban works from upstream to downstream in the production process (i.e., starting with the customer order). At each step, only as many parts are withdrawn as the kanban instructs, helping ensure that only what is ordered is made. The necessary parts in a given step always accompanies the kanban to ensure visual control.

The upstream processes only produce what has been withdrawn. This includes only producing items in the sequence in which the kanban are received, and only producing the number indicated on the kanban.

Only products that are 100 percent defect-free continue on through the production line. In this way, each step uncovers and then corrects the defects that are found, before any more can be produced.

3P
The Production Preparation Process (3P) focuses on eliminating waste through product and process design. The goal is typically to develop a process or product design that meets customer requirements best in the "least waste way". The typical steps in a 3P event are described below.

Define Product or Process Design Objectives/Needs: The team seeks to understand the core customer needs that need to be met. If a product or product prototype is available, the project team breaks it down into component parts and raw materials to assess the function that each plays.

Diagraming: A fishbone diagram or other type of illustration is created to demonstrate the flow from raw material to finish product. The project team then analyzes each branch of the diagram (or each illustration) and brainstorms key words (e.g., roll, rotate, form, bend) to describe the change (or "transformation") made at each branch.

Sketch and Evaluate the Process: Sub-teams are formed and each sub-tea member is required to draw different ways to accomplish the process in question. Each of the sketches is evaluated and the best is chosen (along with any good features from the sketches that are not chosen) for a mock-up.

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