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Historical Development of Quality Concept: Lean
Manufacturing (Lm) - Today & Tomorrow

ISSN 2319-9725

Abhishek Dwivedi
Assistant Professor
Department Of Mechanical Engineering
Integral University,
Lucknow, Uttar Pradesh, India

Abstract: Quality has grown from being an attribute of a commodity to a way of managing an organisation
and making the organization effective from the viewpoint of creating something of value for customers, thus
the impact of quality on manufacturing is well known and well documented. However, it’s true impact is yet to
be felt in the field of running businesses, education, government and health care. Quality has grown to
become a profession by itself- we have been fortunate to witness the title of director of quality being bestowed
on certain individuals in the world.
Lean is a term used to describe a continuous commitment to improve a manufacturing or business process by
preserving value with less effort. Lean Manufacturing (LM) is the most familiar name given to Lean
Methodology. The constant in any Lean activity is the discovery of, and removal of waste like Material,
Motion, Time and Space. LM is the latest buzzword in manufacturing circles. It derives from the Toyota
Production System or Just in Time Production, Henry Ford and other predecessors.
This paper provides an overview of LM, highlighting the associate’s competitive advantages. The bottom-line
benefits to be addressed include lower production costs, higher profit, superior quality, shorter order-to-
delivery time, greater flexibility, and improved response to changing client demand. Guidelines for achieving
these benefits are provided. Keeping all these views in mind, this paper is written in such a way that provides
a comprehensive coverage of the subject from basic principles to state-of-the-art concepts and applications by
exploring the modern use of LM Tools and other Quality parameters, with quality control tools as TQM, JIT,
FMS, and WCM etc. The lineage of LM and JIT production goes back to Eli Whitney and the concept of
interchangeable parts. This article traces the high points of that long history.
This paper explains why LM works and clarifies the underlying philosophy. By focusing on strategy rather
than imitation, participants are able to apply LM appropriately to their own companies. Factory physics is
introduced as the scientific basis allowing participants to approach implementation with confidence.

Keywords: Lean manufacturing system (lms), green lean (gl), just in time (jit), total quality management
(tqm), world class manufacturing (wcm), waste
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1. Introduction:

Quality of product, process or services is a vital ingredient of a successful enterprise. In


today’s highly competitive business and industrial environment, it is mandatory that
everybody, including top managements, in an organization is fully conversant with new
thoughts, techniques, and development in the field. This enables them to take a competitive
lead that demands for implementation of total quality control in an effective system for
integrating the quality development, quality maintenance, & quality improvement efforts of
the various groups in the organization so as to enable production and service at the most
economical level. This is the secret of full customer satisfaction.

Basically, lean is centered on preserving value with less work. Simply, lean means creating
more value for customers with fewer resources. Lean Manufacturing (LM) or Lean
Production, often simply, "Lean," is the process or production practice of analyzing the flow
of information and materials in a manufacturing environment or expenditure of resources for
any goal and continuously improving the process to achieve enhanced value to the customer
to be wasteful, and thus a target for elimination.

A. What is Lean Manufacturing (LM)?


LM can be defined as: "A systematic approach to identifying and eliminating waste (non-
value-added activities) through continuous improvement by flowing the product through flow
processes based on a signal from the customer." The core idea is to maximize customer value
while minimizing waste. LM analyzes the flow of information and materials in an
environment for continuous improvement. It uses the building blocks of: standardized work,
workplace organization, visual controls, effective plant layout, quality at the source, batch
reduction, teams, customer demand-based manufacturing, point-of-use storage, quick
changeover, one-piece flow, cellular manufacturing, and Takt-time to use modern
technologies of scrap reduction, process improvements in machining and tool selection as
well as material selection, set-up reduction, Just-In-Time, Kaizan, world class manufacturing,
synchronous manufacturing, and inventory management. The basic scheme is to reduce the
costs methodically and eliminating waste along entire value streams, instead of at isolated
points, creates processes that need “less- human effort, space, capital, and time” to make
products and services at far less costs and with much fewer defects, compared with traditional
business systems.

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A LM enterprise thinks more about its customers (internal & external) than it does about
running machines fast to absorb labor and overhead. A lean organization understands
customer value and focuses its key processes to continuously increase it. The ultimate goal is
to provide perfect value to the customer through & creation process that has zero waste.
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.

Finally Lean is about doing more with less: less time, inventory, space, labour, and money.

B. Quality of a product may be defined as:


i. Conformance to specification.
ii. Meeting or Exceeding customer’s expectations.
iii. The ability of product or service to meet customers need

C. Quality Management according to Juran consists of:


i. Quality planning
ii. Quality Control
iii. Quality Improvement
D. Benchmark is a systematic search for best ways to improve company performance,
which includes:
i. Start-up organization
ii. Select benchmark targets
iii. Information collection and sharing
iv. Key process identification and analysis
v. Search for best competitor in the business
vi. Adaptation for continuous improvement
E. Seven phases of Quality or Dimensions of Product quality: (How to decide that
product is of good quality?)
i. Performance
ii. Feature
iii. Reliability
iv. Conformance
v. Durability
vi. Serviceability
vii. Aesthetics

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F. Total Quality Management (TQM):


The quality is defined as “fitness for use”. Quality assurance is concerned with all those
functions in an organization which affects quality and with ensure that the product attain the
increasingly high level of quality demanded by the customer. This resulted in JIT production
system and total quality crusade. The strategic course is:
i. Customer
ii. Company
iii. Competitors
TQM is a concept to install quality in business. It is a philosophy in the sense it demands a
way of life in an organisation while conducting business operations. It is not a project or a
program with a life cycle but a process and has a set of element that is generic. The element
“Commitment and Leadership” is the driving force for the TQM process in any organisation.
Planning and Organising, System, Development and training, People Involvement, Team
work, Measurement Analysis and Cultural Change are other elements which make up the
management system for installing the TQM process.

G. Just In Time (JIT):

“A philosophy of manufacturing based on planned elimination of waste and continuous


improvement of productivity ……”

It refers to the concept of producing and delivering finished goods just in time to be sold,
making sub-assemblies just in time to be assemble into finished goods, fabricating/
purchasing parts just in time to go into sub assemblies and procuring raw materials just in
time to be transformed into fabricated parts.

The primary elements of Just-in-Time are:

i. Required inventory when needed


ii. Improved zero defects quality
iii. Incrementally revising of the operations
iv. Work at minimum cost
v. Reduce lead times by reducing setup times, queue lengths, and lot sizes
JIT Quality at source involves eight basic principles:
i. Selecting suppliers based on their capability for quality assurance.

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ii. Training suppliers with quality requirements, selection of measuring tools, and
methods of inspection.
iii. Working closely and establishing regular supplies through the vendor development
stage, to increase assessing their technical and sampling capability.
iv. Lending them special gauges and tools.
v. Encouraging suppliers to introduce a pre-shipment quality audit.
vi. Providing feedback on the nature of defect and helping to reduce / eliminate
rejection.
vii. Encouraging supplier to improve the productivity and quality by adopting the JIT
concept.
viii. Adopting TQM as the philosophy of control and an error-prevention based system.
H. World Class Manufacturing (WCM):
WCM is the collective term for the most effective methodologies and techniques to realize
these objectives. WCM is a different set of concepts, principles, policies and techniques for
managing and operating a manufacturing company. It primarily focuses on continual
improvement in quality, cost, lead time, flexibility and customer service.
The keys to success are:
i. Reduce lead times
ii. Speed time-to-market
iii. Exceed customer expectations
iv. Cut operations costs
v. Manage the global enterprise
vi. Streamline outsourcing process
vii. Improve business performance visibility

Flexible Manufacturing System (FMS):


A flexible manufacturing system (FMS) is a manufacturing system in which there is some
amount of flexibility that allows the system to react in the case of changes, whether predicted
or unpredicted. A FMS is one that can be changed or adapted rapidly to manufacture
different products or components at different volumes of production.

FMS are usually seen at their most efficient when manufacturing components rather than
finished products. An Industrial FMS consists of Computers, Robots, NC’s & CNC’s,
Instrumentation Devices, Sensors, and other stand alone systems such as Inspection
Machines.
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A FMS makes it possible to automate production with machine tools and thus enable
unmanned production for manufacturing several types of parts simultaneously and help Lean
Manufacturing while preserving the benefits of mass production, production capacity and
utilization rate of the machine tools.

I. Green Lean (GL):


Green Technology is advance use of Nanotechnology by minimizing the environmental and
human health risk associated with the manufacture and use of nanotechnology products and
replaces that product with nanotechnology products which will be more environmental
friendly in their life cycle. Current Research in Green Manufacturing is solar energy form.

2. Waste

Definition: Essentially, "waste" is anything that the customer is not willing to pay for.

A brief of waste reduction thinking:

The avoidance and then lateral removal of waste has a long history, and as such this history
forms much of the basis of the philosophy now known as "Lean". 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. The concept of waste being built into jobs and then
taken for granted was noticed by motion efficiency expert Frank Gilbreth, who saw that
masons bent over to pick up bricks from the ground. The bricklayer was therefore lowering
and raising his entire upper body to pick up a 2.3 kg (5 lb.) brick, and this inefficiency had
been built into the job through long practice. Introduction of a non-stooping scaffold, which
delivered the bricks at waist level, allowed masons to work about three times as quickly, and
with less effort. The printer Benjamin Franklin contributed greatly to waste reduction
thinking

Waste Overview: While the elimination of waste may seem like a simple and clear subject it
is noticeable that waste is often very conservatively identified. This then hugely reduces the
potential of such an aim. The elimination of waste is the goal of Lean, and Toyota defined
three broad types of waste:

MUDA: discovered after the process is in place and is dealt with reactively.

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MURI: focuses on the preparation and planning process or what work can be avoided
proactively by design.

MURA: focuses on how the work design is implemented and the elimination of fluctuation at
the scheduling or operations level, such as quality and volume.

A typical example of the interplay of these wastes is the corporate behaviour of "making the
numbers" as the end of a reporting period approaches.

Eight other Types of Waste

i. TRANSPORTATION  Poor plant layout


WASTE: Causes  Poor understanding of the process flow
for production
 Large batch sizes, long lead times, and
large storage areas
ii. WASTED MOTIONS:  Poor people/machine effectiveness
Causes  Inconsistent work methods
 Poor facility or cell layout
 Poor workplace organization and
housekeeping
 Extra "busy" movements while waiting
iii. EXCESS INVENTORY:  Product complexity
Causes  Unleveled scheduling
 Poor market forecast
 Unbalanced workload
 Reward systems
iv. WAIT TIME: Causes  Unbalanced work load
 Unplanned maintenance
 Long process set-up times
 Unleveled scheduling
 Poor Communication
v. SCRAP OR REWORK:  Little or no process control
Causes  Poor quality standards or inconsistent
quality standards

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 Lack of or little planned equipment


preventive maintenance
 Customer needs not understood
vi. OVER-PROCESSING:  Product changes without process
Causes changes
 Just-in-case logic
 Over processing to accommodate
expected downtime
 Lack of communication
 Extra copies/excessive information
vii. OVER-PRODUCTION:  Misuse of automation
Causes  Long process setup
 Unleveled scheduling
 Redundant inspection
viii. UNDERUTILIZED HUMAN  Old guard thinking, politics, the
RESOURCES: Causes business culture
 Poor hiring practices
 Low or no investment in training
 Low pay, high turnover strategy

3. Overview And Historical Development Of Quality To Lean Implementation:

Technologically, transformation takes place at end of each era. A slow age transformation
and technological achievement was adopted in all the previous ages, so the relatively slow
development and impact on society was gradual and diffused. So as the revolution in quality
as single type of work in agriculture age transformed to machine age with mass production
and then system age with quality objects and knowledge age as quality improvement with
Flexible Manufacturing System (FMS). Now moving forwards to Knowledge age created by
the industrial revolution.

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Figure 1: the basic model of overview of historical development of quality system

All the relevant improvement in system/quality does not occurs suddenly but comes from the
study of characteristic of the problem of the previous age while using the tools, techniques
and practices of the past culture and helps in improving the quality parameters. The Quality
movement started from medieval Europe. Craftsmen organized union called guilds in the 13th
century.

In year 1750: Great Britain started product inspection in early 19th century for the Industrial
Revolution

In year 1798: The concept of producing interchangeable parts to simplify assembly.


In year 1799: Eli Whitney, an inventor of the cotton gin. [Gin was a minor accomplishment
compared to his perfection of interchangeable parts]

For the next 100 years manufacturers primarily concerned themselves with individual
technologies.

As products moved from one discrete process to the next through the logistics system and
within factories, few people concerned themselves with:

What happened between processes?

How each worker went about a task?

How the chain of processes functioned as a system?

How multiple processes were arranged within the factory?

In year 1883: Introduction to Pareto’s Law of Quality control.

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In year 1890-1911: Frederick W. Taylor’s- Scientific Management. (Time Study and


Standardized Work)

In year 1904: Cadillar begins using interchangeable part.

In year 1908: Introduced Henery Ford’s T Model

In year 1909: Frank Gilbreth’s study of bricklaying first motion study (Cheaper By The
Dozen). Lillian Gilbreth brought psychology into the study of the motivations of workers
and effect of attitude on outcomes of process. They mix originated the idea of "eliminating
waste", a key tenet of JIT and Lean Manufacturing.

In year 1910: Henry Ford’s and Charles E. Sorensen’s, the first comprehensive
Manufacturing Strategy.

In year 1913: Ford Introduced Moving automobile assembly line called “Ford’s highland
park moving line”

In year 1915: Wilson’s EOQ formula

Year 1920: Product proliferation also put strains on the Ford system.

In year 1922: Henry Gantt introduced Gantt Chart works on project scheduling.

In year 1924: The basic idea of statistical quality control.

In year 1927- 1930: Mayo & Roethlisberger study Weston electric Toyota Motors

Year 1930: Alfred P. Sloan [General Motors] took a more pragmatic approach to develop
business and manufacturing strategies for managing very large enterprises and dealing with
variety.

Ford methods were a deciding factor in the Allied victory of World War II.

In year 1931: Shewhart’s books on SPC

In year 1934: Maynard coins term Method study

In year 1945: Shingo concept on Production networks & ID’s “batches” as source of delays.

In year 1945: Toyota JIT concept

In year 1950: William Edwards Deming (Study of Japanese Management) & PDCA cycle.
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Ishikawa- Ohno begins work on TPS

Ejii Toyota visited ford’s river range plant

In year 1951: Deming awarded by Japan

Juran’s handbook of QC

In year 1961: -Taguchi awarded Deming award for DOE

Ishikawa’s Quality circle

Feigenbawm’s TQC

Forrester’s Industrial dynamics

In year 1962: TPS kanban company wide (Japan)

In year 1969: First microchip by T. Hoft of Intel

In year 1970: World War II made Japanese manufacturer leader in quality.

In year 1971: Mudge’s Val Engaged-a system approach

Walmart begins point of sale a forerunner to EDI, or & FMCG

In year 1974: Skinner’s the focused factory

In year 1975: Shingo’s non stock production system

Orlicky’s MRP concept

Burbidge’s the introduction of Group Technology

In year 1977: Apple’s plant layout & Group Technology

In year 1979: First article on JIT appears in US magazine.

In year 1980: NBC ask if Japan can, Why can’t we.

In year 1982: Schonberger’s Japanese manufacturing technologies.

Demings quality, productivity & competitive edge, out of erisis

In year 1984: Goldrati’s the Goad Hayes & Wheelwright Kestoring competitive edge.

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Kalpan’s yesterday’s accounting undermines production

In year 1985: Shingo’s SMED NUMMI plant

In year 1987: TQM introduced with several quality standards followed as ISO-9000 quality
system.

In year 1990: Lean Manufacturing came to the US with James P. Womack’s Book (co-
authored by Daniel T. Jones, and Daniel Roos), “The Machine That Changed The World”
which gives straightforward account of the historical study of Japanese, American, and
European automotive assembly plants and based on Concepts of TPS and success story of
Toyota over US Auto Manufacturers. Krafcik; (Toyota-GM NUMMI), researched during
MBA studies from MIT, and the result was about Lean, is not the tools, but the reduction of
three types of waste: muda ("non-value-adding work"), muri ("overburden"), and mura
("unevenness"), to expose problems systematically and to use the tools where the ideal cannot
be achieved.

4. Glossary Of Lean Manufacturing Terms:

Basic Lean Tool:

Figure 5: the basic model of tools used in success of Lean Manufacturing


Following is a short list of terms often used in explaining lean manufacturing techniques.

Cellular Manufacturing: It works as an integral part of lean manufacturing systems. It is


based upon the principals of Group Technology. It gives a model for workplace design, and,
takes standardization and common processing to provide full advantage of the similarity
between parts for linking of manual and machine operations, to maximize value-added
activities while minimizing waste.

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Figure 6: the basic model of Cellular Manufacturing

Kanban System: It is a scheduling system for lean and JIT production. It is not an inventory
control system but a system to control the logistical chain from a production point of view. It
is a pull system that uses color-coded cards attached to parts or part containers to regulate the
upstream production and delivery flow.

Figure 7: the basic model of Kanban System

Push System: In this type of manufacturing system, production is based on forecasts or


schedules or information’s flows from management to the market, in the same direction of
materials flow, and as per consumer’s requirement. (Lean manufacturing encourages the
elimination of push systems.)

Pull System: It is a production or service process which is designed to deliver goods or


services as they are required by the customer or, within the production process, when
required by the next step. It is a method of controlling the flow of resources by replacing only
what has been consumed. A pull system relies on customer demand.

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Figure 8: the basic model of Push & Pull System

Value Added: Value added / adding refers to a process or step within a process which
transforms raw materials or work in progress into much more valuable goods and services to
customers downstream. It aims at increasing its value per unit of material. Any activity that
increases the market form or function of the product or service. (These are things the
customer is willing to pay for.)

Non-Value Added: Any activity that does not add market form or function or is not
necessary. (These activities should be eliminated, simplified, reduced or integrated.)

Figure 9: the basic model of Value Added & Non Value Added System

Takt Time: customer demand rate. Takt time sets the pace of production to match the rate of
customer demand and becomes the heartbeat of any lean system. It is calculated by taking the
work time available and dividing it by the number of units sold.

Why? Simple But Effective Lean Tool:

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Just like any good mechanic, a good lean expert should have many tools to help them do
their job.

The 5 whys is a systematic technique of asking 5 questions successively and to get to the
bottom of the situation. The aim is to probe the causes of a problem and thus hopefully get to
the heart of the problem. It was first used in the early 1970’s by the Toyota Company, who is
often credited with being the pioneer of modern quality. If used correctly, it can provide a
way to help identify the true root cause of the problem by using a feedback system.

An added benefit is that it can be used both on an individual basis as well as a part of a group
attack. By asking the question “why?”, most will simply come up with another symptom
instead of working their way back to the root cause.

The 5 why technique is a great tool when used in conjunction with other tools as an aide in
finding the root cause of a problem. Like any other tool, it should be wielded by someone
who understands how to thoroughly investigate problems and conduct a solid root cause
analysis.

Application: The 5 why is a technique that is widely used to analyse problem in both
manufacturing and service operations. It is a variation on the classic work study approach of
Critical Examination, involving six questions: Why, What, Where, Who and How?

The objective is to eliminate the root cause rather than patch up the effect.

Basic Steps:

i. Select the problem for analysis.


ii. Ask five close questions, one after another, starting with why.
iii. Do not defend the answer or point the finger of blame at others.
iv. Determine the root cause of the problem.

So the result shows that 5 whys is an uncomplicated but very effective tool that can be used
to identify the root cause of the problem.

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Figure 11: the basic model of typical conduct of solving answer “Why does the pump leak”.

5. Lean For Production And Services:

Seeking lean only suited for manufacturing, in not true. Lean applies in every business and
every process. It is not a tactic or a cost reduction program, but a way of thinking and acting
for an entire organization.

The lean principles play role in Businesses all industries and services, including healthcare
and governments. Many organizations choose not to use the word lean, but to label what they
do as their own system, such as the Toyota Production System or the Danaher Business
System.

The word transformation or lean transformation is often used to characterize a company


moving from an old way of thinking to lean thinking. It requires a complete transformation
on how a company conducts business. This takes a long-term perspective and perseverance.

Just as mass production is recognized as the production system of the 20th century, lean
production is viewed as the production system of the 21st century.

Five areas drive lean manufacturing/production:

i. Cost
ii. Quality
iii. Delivery
iv. Safety
v. Moral

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6. Lean Leadership:

Lean Enterprise is an organization that has geared up, adopted or incorporated Lean
philosophy implementing processes focused toward continuous improvement. The role of the
leaders within the organization is the fundamental element of sustaining the progress of lean
thinking.
Experienced kaizen members at Toyota, for example, often bring up the concepts of Senpai,
Kohai, and Sensei, because they strongly feel that transferring of Toyota culture down and
across Toyota can only happen when more experienced Toyota Sensei continuously coach
and guide the less experienced lean champions. Unfortunately, most lean practitioners in
North America focus on the tools and methodologies of lean, versus the philosophy and
culture of lean. Some exceptions include Shingijitsu Consulting out of Japan, which is made
up of ex-Toyota managers, and Lean Sensei International based in North America, which
coaches lean through Toyota-style cultural experience.
One of the dislocative effects of Lean is in the area of key performance indicators (KPI). The
KPIs by which plant/facility are judged will often be driving behaviour, because the KPIs
themselves assume a particular approach to the work being done. This can be an issue where,
for example a truly Lean, Fixed Repeating Schedule (FRS) and JIT approach is adopted,
because these KPIs will no longer reflect performance, as the assumptions on which they are
based become invalid. It is a key leadership challenge to manage the impact of this KPI chaos
within the organization.

Similarly, commonly used accounting systems developed to support mass production are no
longer appropriate for companies pursuing Lean. Lean Accounting provides truly Lean
approaches to business management and financial reporting.

Continuous Improvement breaks down into three basic principles:

i. Challenge: What we need to learn rather than what we want to do ? and then having
the spirit to face that challenge if we are achieving our goals.
ii. Kaizen: Operations must be improved continuously, striving for innovation and
evolution.
iii. Genchi Genbutsu: Make the right decisions, create consensus, and sure goals are
attained at the best possible speed.
Respect for People is less known outside of Toyota, and essentially involves two defining
principles:
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i. Respect: Taking a responsibility of every stakeholders' problems seriously and to


make other people reaching their objectives and to making every effort to build
mutual trust
ii. Teamwork: Developing individuals through team problem-solving.

7. 4 Step Problem Solving Formula:

Lean follows below 4 simple steps to solve problems. This is true for any case. Here are the 4
steps right from the lean for life eBook.

Step1. Find out the problem: -

 I have a problem of reading the books completely.


 I have a pile of uncompleted books in the queue to be read. So let's find out what
creates this problem.
Step2. Find out what creates the problem:

 I have little time to complete reading my books. Why?


 I am working on the computer mostly, and I am use to reading online.
 Books sometimes are way too long. They repeat the same thing over and over again.
OK, now we know why we do not read the books, despite the fact that they can add great
value to our lives. So what is the solution?

Step3. Finding the solution and planning the implementation:

 Think about how to overcome the problem and focus on a solution and plan the
implementation.
 What shall I do to complete reading the books? How can I eliminate this problem in
future?
 As it is more comfortable in reading online, I am going to look for the "e" versions of
the books. I save lots of time and fair bit of money because the e versions of the books
are less costly than the normal books.
 I will give special attention to the length of the book before I buy them. If they are too
long, I will try other options.
Step4. Implement the solution:

Now I have a clear plan as to what to be done. Now I will simply follow my plan.

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 I am sorting the books as per the plan. I selected the book to be read first. Then I will
give myself a half an hour a day to complete reading this book
 In future, when I buy a book, I will look for the e-Version of the book first.
This way it can simply save lots of time, just to relax and/ or for useful effort. A simple lean
technique saved us time and effort and some money almost instantly.

8. Lean Management Vs Traditional Management:

Lean Management Traditional Management


i. Production is made to order Production is based on a forecast
ii. Products are made to fill customer orders Products are made to replenish the
inventory
iii. Cycle times are in hours and days Cycle times are in weeks and months
iv. Inventory levels are based on one-piece Inventory levels are based on large
flow batches
v. Stations are set up by product flow Stations are set up by department function
vi. Quality is tested at each station Quality is done through random sampling
vii. Workers are empowered for identifying Workers have little or no input
improvements
viii. Manufacturing schedule is flexible and Manufacturing schedule is rigid and hard
easy to adjust to adjust
ix. Manufacturing costs are controlled and Manufacturing costs are rising and
decreasing uncontrolled
Table 1
9. Lean Goals And Strategy:

The espoused goals of Lean manufacturing 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:

i. 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.

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ii. 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.Taking
the first letter of each waste, the acronym "TIM WOOD" is formed. This is a common
way to remember the wastes.
iii. 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.
iv. Reduce total costs: Overproduction increases a company’s inventory costs by storage
needs, so production must be of customer’s demand only.
The strategic elements of Lean can be quite complex, and comprise multiple elements. Four
different notions of Lean have been identified:

i. Lean as a philosophy (Lean thinking)


ii. Lean as a set of tools or methods (Doing Lean/Toolbox Lean)
iii. Lean as a fixed state or goal (Being Lean)
iv. Lean as a continuous change process (Becoming Lean)

10. Steps To Achieve Lean Systems:

The following steps should be implemented to create the ideal lean manufacturing system:

i. Design a simple manufacturing system


ii. Recognize that there is always room for improvement
iii. Continuously improve the lean manufacturing system design

11. Design A Simple Manufacturing System:

A fundamental principle of lean manufacturing is demand-based flow manufacturing. In this


type of production setting, inventory is only pulled through each production centre when it is
needed to meet a customer’s order. The benefits of this goal include:
i. Decreased cycle time
ii. less inventory
iii. increased productivity
iv. increased capital equipment utilization

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12. The Five Elements Of Enabling A Lean Approach:

i. Specify Value
ii. Flows
iii. Pull
iv. Perfection
v. Identify and Map the Value Stream

13. Benefits Of Lean Production:

Establishment and mastering of a lean production system would allow you to achieve the
following benefits:

i. Waste reduction
ii. Higher quality
iii. Defect reduction
iv. More strategic focus
v. Higher profits
vi. Continuous flow
vii. Process capability
viii. Lead time reduction
ix. Equipment reliability
x. Error proofing
xi. Production cost reduction
xii. Material flows one part at a time
xiii. Capacity in current facilities increase
xiv. Manufacturing cycle times decreased
xv. Inventory reduction while increasing customer service levels
xvi. Labour reduction while maintaining or increasing throughput
xvii. Improved cash flow through increasing shipping and billing frequencies
xviii. Higher system flexibility in reacting to changes in requirements improved
xix. Less inventory required throughout the production process, raw material,WIP, &
finished goods

However, by continually focusing on waste reduction, there are truly no ends to the benefits
that can be achieved.

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14. Characteristics Of A Lean Enterprise:


i. Integrated single piece continuous workflow
ii. Layout is based on product flow
iii. Minimal inventories at each stage of the production process
iv. Total quality control for problem solving to improve quality and eliminate wastes.
v. Close integration of the whole value chain from raw material to finished product
through partnership oriented relations with suppliers and distributors.
vi. Just-in-time processing: a part moves to a production operation, is processed
immediately, and moves immediately to the next operation
vii. Production is based on orders rather than forecasts; production planning is driven by
customer demand or "pull" and not to suit machine loading or inflexible work flows
on the shop floor.
viii. Quick changeovers of machines and equipment allow different products to be
produced with one-piece flow in small batches
ix. Implementing real time quality feedback for defect prevention rather than inspection
and rework.

15. Applications:

Lean techniques are applicable not only in manufacturing, but also in service-oriented
industry and service environment. Every system contains waste, i.e. something that does not
provide value to your customer. Whether you are producing a product, processing a
material, or providing a service, there are elements which are considered 'waste'. The
techniques for analyzing systems, identifying and reducing waste and focusing on the
customer are applicable in any system, and in any industry.

Lean thinking may also be applied for getting rid of bureaucracy in your home office. To
run your home office more effectively and faster you may need just as little as 10% of its
current staff. Only executives who have a direct involvement with finding, keeping, or
growing customers as well as key support staff - accountants, tax, legal and human
resources people – should stay. Others can be rehabilitated by sending to an operating unit.

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16. Future Of Lean:

The above recommendations of implementation should be carried out and verified with
additional experiments. Any insight or observation gained from these experiments should be
integrated into the successive studies to perfect the lean training program.

Lean services:

Lean, as a concept or brand, has captured the imagination of many in different spheres of
activity. Examples of these from many sectors are listed below.

Lean principles have been successfully applied to call centre services to improve live agent
call handling. By combining Agent-assisted Voice solutions and Lean's waste reduction
practices, a company reduced handle time, reduced between agent variability, reduced accent
barriers, and attained near perfect process adherence.

Lean principles have also found application in software application development and
maintenance and other areas of information technology (IT). More generally, the use of Lean
in IT has become known as Lean IT.

A study conducted on behalf of the Scottish Executive, by Warwick University, in 2005/06


found that Lean methods were applicable to the public sector, but that most results had been
achieved using a much more restricted range of techniques than Lean provides.

The challenge in moving Lean to services is the lack of widely available reference
implementations to allow people to see how directly applying lean manufacturing tools and
practices can work and the impact it does have. This makes it more difficult to build the level
of belief seen as necessary for strong implementation. However, some research does relate
widely recognized examples of success in retail and even airlines to the underlying principles
of lean. Despite this, it remains the case that the direct manufacturing examples of
'techniques' or 'tools' need to be better 'translated' into a service context to support the more
prominent approaches of implementation, which has not yet received the level of work or
publicity that would give starting points for implementers. The upshot of this is that each
implementation often 'feels its way' along as must the early industrial engineers of Toyota.
This places huge importance upon sponsorship to encourage and protect these experimental
developments.

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17. Case Study

Toyota is in trouble. Is lean the cause?

Toyota, the father of lean manufacturing is facing a critical issue. As most of you may know
they are recalling large number of vehicles across the word due to a problem with their
accelerator. According to the media, the faulty accelerator or the gas pedal has a tendency of
sticking. Obviously this is risky. I certainly do not want to drive at full speed all the time.

A wall street journal article on this regard caught my attention. This article focuses not only
on Toyota’s recent issues but also issues faced by other manufacturers like Ford, Sony etc. It
is true to say we have been hearing about problems of this nature in the recent past a lot. But
what is the cause?

According to this WSJ article, it is the risk of using common parts across models. For an
example, you may use the same sensor across few car models, unlike early days where you
may have several unique sensors for each model. Using common items across models has its
advantages. But according to this article in WSJ, it increases the risk. I agree to a certain
extend. When you use the same sensor in ten models as opposed to just one model, if that
sensor fails, it will affect all the ten models not just one model. So you will have a bigger
problem. This is common sense isn’t it? But why manufacturers are taking such a risk,
sometimes a risk which can cost them few Billion dollars?

Using standard parts reduces the cost of manufacturing. This is one of the main advantages
of using common parts. It is easy and less costly to produce one design than manufacturing
ten designs in small quantities. It is that simple. On the other hand using common parts makes
it easier to design stuff. It also reduces the lead time in manufacturing the part and the overall
lead time of the vehicle. It will make it easier to have spares available in the market in long
term. Reduced number of parts makes it easy to rationalize the supplier base, which is one of
the aims of lean manufacturing.

This seems like a problem with lean isn’t it? Yes it certainly looks like.

So the problem is with using common parts, then the solution is not having common parts.
Isn’t it? Let’s think in that line for a moment.

When you have unique designs of the same product for each model this will increase the cost
of manufacturing. This is simple enough to understand. Having too many models will lead to

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additional amount of testing. So your testing resources will be shared among many models.
This will reduce the focus on one single model and will increase the risk of passing a
defective product. Having too many products and suppliers will complicate the logistics
handling. This will make it required to have a complex systems and large amounts of
resources to handle this system.

This for me is a net increase of cost and risk. But even if the risk is higher per model it will
only affect one model at a time. So the recalls will be frequent but not in large quantities.
This will prevent huge media attention and hence will happen behind the scene. So my gas
paddle might stick to the floor, but nobody will know.

My conclusion is using common parts reduces risks from the users point of view. User gets
better product for a better price. Even if there is a problem there is a higher chance of taking
it to the spotlight.

Toyota Recalls Vehicles Again:

Toyota, the father of lean manufacturing is facing some serious quality issues recently. In the
latest of these, they are recalling around 270,000 vehicles globally. This is another setback
for the giant vehicle manufacturer. Recall is due to faulty engine valves according to media
and has affected the luxury Toyota brands Lexus and Crown.

From a lean manufacturing point of view, these quality problems are very serious
concerns. Lean methodology is about driving out waste and offer the customer want they
want at a lower price wit highest quality. When it comes to Toyota, they have huge number
of outsourced manufacturers and vendors from whom Toyota get their parts and assemble.
Even a failure of a single vendor and failure of Toyota to find the problem before the stuff hit
the market; can really drive you to results like these.

In lean mindset quality inspection can be considered as a non value added activity. But with
the problems Toyota facing today, it will be a very valuable to go for an intense quality
inspection together with the high end quality assurance methods

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18. Conclusion:

This paper started with a claim that one of the reasons for not achieving the true benefits of
LM by the organization is that the managers and employees do not understand clearly what
constitute LM.

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

Work cell is a very important building block of lean. A work cell is a part of the
manufacturing chain, which will perform a certain duty to its completion. For an example, a
work cell would assemble a power belt for a motor completely within itself.

We all are multi skilled as our life demands and commands in our personal lives. We have to
perform the duties of the worker when we are working as mother or the father at home, cook
while cooking, a role of house keeper and the role of a driver and so on. So how we become
happier, efficient and effective at what we do or perform our day to day duties.

The golden rule of the work cell is being self sufficient. Let's say about reading Lean for Life
on a computer. It is an important function to perform an important set of skills for one’s
personal life. To take the full advantages of the tools and techniques of lean for life it is
necessary to read the book completely without any problem. Now, while reading in a work
place, the necessary tools needed for reading the book effectively, are a computer, a desk,
good lighting and a silent room. In fact this is what needed to read anything. While reading a
printed book, it would be needed the book on the table. So this is the reading work cell.

You already have acquired the skill to read already. So you are competent in the skills area.
Now you have to make sure you have only what you need to perform your function. So you
have to arrange your desk in the perfect manner to perform your work effectively. You have
to remove all the unnecessary things from your desk. If you have used your desk as a store to
store magazines and books, you may need to empty your desktop. Keep the things in right
order. You may need to get a writing pad near you with a pen, in case you want to take notes
in the old way. When you are done, you will feel the difference. You focus will be in what
you read. You will spend less time in searching for things. Everything you need will be at

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your disposal. You will feel the joy of learning the skills, in this case skills of lean for life. So
the same exercise can be done for the kitchen, bathroom etc.

In lean for life, I discuss very effective lean tools and techniques in the context of your
personal lives. You will find them interesting for sure. These tools and techniques will open
up a new ways to save money, time and energy. So you would have more money to spend,
more time to relax while working less.

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References:

1. Czarnecki, Hank, Nicholas Loyd, 2002, “Simulation of Lean Assembly Line for High
Volume Manufacturing.” PP-1-6, Published at University of Alabama
2. G. Anand, R.Kodali, 2010, “Analysis of Lean Manufacturing Frameworks” Vol.-9,
PP.-1-30, ISSN: 124.30.5.130, Journal of Advanced Manufacturing Systems.
3. Harrell, Charles R., Biman K. Ghosh, and Royce Bowden, 2002, “Simulation Using
ProModel, Boston: McGraw-Hill,
4. James P. Womack, Daniel T. Jones, Daniel Roos, 2007, A book on “The Machine that
Changed the World”, ISBN: 1-4165-5452-1, Published by Free Press
5. Jhamb L.C., Gandhi Madhup, 2009, A book on Materials Management, Vol.1,
Published by Symbosis Centre for Distance Learning Pune.
6. Jog Ramesh, 2009, A book on Total Quality Management, Vol.1, Published by
Symbosis Centre for Distance Learning Pune.
7. Kulkarni V.A., Bewoor A.K., 2009, A book on Quality Control, ISBN: 978-81-265-
1907-1, Vol.-1, Published by Wiley India
8. Khan M.I., 2004, A book on Industrial Engineering, ISBN: 81-224-1509-1, Vol.-1,
Published by New Age International (p) Ltd.
9. Monden, Yashuhiro, 1993, Toyota Production System: An Integrated Approach to
Just-In-Time, Norcross: Industrial Engineering and Management Press.
10. Pandey O.P., Aneja Bhupesh, 2012, A book on Quality Management, ISBN: 978-93-
5014-163-2, Edition-2nd, Published by S.K.Kataria & Sons.
11. Verma, Alok K., October 19, 2003, Simulation Tools and Training Programs in Lean
Manufacturing – Current Status, Final Report Submitted to NSRP-ASE Program.
12. MEP-NIST, “MEP Source for Manufacturers” November 17, 2004,
<http://www.mep.nist.gov/lean/lean.html>, 2002.
13. NIST/MEP, Principles of Lean Manufacturing with Live Simulation, Gaithersburg:
National Institute of Standards and Technology Manufacturing Extension Partnership,
1998.
14. WWW.LEAN.ORG Jim Womack's E-letters 10/11/02 The “Right Sequence” for
Implementing Lean,
<http://www.lean.org/Community/Registered/ShowEmail.cfm?JimsEmailId=2> 2000.

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