Presented

by:
Nitish Garg
Pranay
Kaparwan
Rachna Kralia
Ruhi Beri
Sakshi
Rangaroo

Lean Management
A systematic approach to identifying and
eliminating waste (non-value added
activities) through continuous
improvement by flowing the product at
the pull of the customer in pursuit of
perfection.

Origin
Started by Japanese manufacturers in
automobile industry.
Replicated in other sectors all over the
world.

Underlying Principle:
Less is more productive
i.e. in order to stay competitive, organizations
are required to deliver better quality products
and services using fewer resources.

Key Principals of
Lean Thinking
Value - what customers are willing to pay for;
Value Stream the sequence of processes to deliver
value;
Flow organizing Value Stream to be continuous;
Pulls responding to downstream customer demand;
Perfection relentless continuous improvement
(culture);

VIDEO!!!

Accrued Benefits

Tools and
Techniques used

Less is more Productive

Process
mapping, nonvalue added
analysis
Continuous
improvement
Kaizens, small
group
improvement
Benchmarking
Quality Circles

Manufacturing
architectural
changes
Set-up time
reduction
Small lot size
processing
Pull scheduling
Simplified
operation
control(kanban)

Basic enabling
mechanism

Total Quality
Management

Basic premise

Eliminating waste and creating value

stream for product & services

JIT

Just-In-Time (JIT)
Powerful strategy for improving operations
Materials arrive where they
are needed when they are
needed
Identifying problems and
driving out waste reduces
costs and variability and
improves throughput
Requires a meaningful
buyer-supplier relationship

JIT Concepts
Eliminate waste
Remove variability
Improve throughput

1. Eliminate Waste
Waste is anything that does not add
value from the customer point of view
Storage, inspection, delay, waiting in
queues, and defective products do not
add value and are 100% waste

Ohnos Seven
Wastes

Overproduction
Queues
Transportation
Inventory
Motion
Overprocessing
Defective products

2. Remove
Variability
Variability is any deviation from the
optimum process
Lean systems require managers to
reduce variability caused by both
internal and external factors
Inventory hides variability
Less variability results in less waste

2. Remove
Variability
Lean systems require managers to
reduce variability caused by both
internal and external factors
Variability is any deviation from the
optimum process
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3. Improve
Throughput
Push systems dump orders on the
downstream stations regardless of the
need
By pulling material in small lots,
inventory cushions are removed,
exposing problems and emphasizing
continual improvement
The time it takes to move an order from
receipt to delivery is reduced.

Core Logic of JIT

Inventory level

Scrap
Setup
time

Process
downtim
e

Quality
problem
s
Late deliveries

Core Logic of JIT

Inventor
y level

Scrap
Setup
time

Process
downtim
e

Quality
problem
s
Late deliveries

Core Logic of JIT

Inventor
y level

No scrap

Quality
problem
s
removed
Process

Setup
time
reduce
d
Late
deliveri
es

downtim
e
removed

JIT and Competitive

Advantage

JIT and Competitive

Advantage

JIT Layout
Reduce waste due to movement

JIT Inventory
Inventory is at the minimum
level necessary to keep
operations running

JIT Quality
JIT cuts the cost of obtaining good
quality because
JIT exposes poor
quality very soon
JIT
Quality
Tactics
Use
statistical
process control
Empower employees
Build fail-safe methods (poka-yoke, checklists,
etc.)
Expose poor quality with small lot JIT
Provide immediate feedback

JIT planning & control JIT

scheduling
Kanban system, push & pull
scheduling.

Push Scheduling
Forecasts drive the entire production.
Detailed forecasts of demand are made and then refined further on the
basis of recent information to provide the input for an MPS/MRP system to
derive the detailed week-by-week schedule for each work centre in the
manufacturing System.
The actual off take by the customer (or the market) is not taken directly
into consideration.
Instead, it needs to be factored into the forecasting/demand management
module well in advance.
Once the planning is finalized and released to the production shop, raw
material is issued from the stores to respective work centres and the
finished goods stores.
As a result of this method, planning drives production and determines the
availability of finished goods.
It is generally assumed that the planning premise is good. Therefore, when
the customer order arrives, the item is picked up from the finished goods
stores and shipped.

Pull scheduling
A pull-type scheduling works with the supermarket logic.
A customer order triggers production in a pull-scheduling system.
Assume that customer demand for 50 units of an item is met with
available finished goods in the stores.
Since 50 units are dispatched, an order will be placed with the final
assembly shop to assemble 50 units of product so that stocks are
replenished.
In the process of assembling 50 units, the final assembly would have
consumed the required number of sub-assemblies as specified by the
product structure.
Therefore, respective orders will be placed to the feeder shops to
manufacture the sub-assemblies to the extent of replenishing the stock
of sub-assemblies consumed.
The information passes in this manner up to the raw material stores.
At each stage of manufacturing, the shop pulls a certain quantity of
input material and the preceding shop responds to the pull.

The choice between a pull-type

system and a push type system
The choice between a pull-type system and a push type system is
dictated by several factors governing the operation of a
manufacturing system.
Pull-type scheduling cannot be implemented in all manufacturing
systems.
It requires that the manufacturing system have sufficient flexibility
to respond swiftly to changes.
Moreover, it implies that the organization is customer-focused and
has low demand variations.
On the other hand, if the manufacturing system works with long
lead time and a greater emphasis on utilization-based measures of
performance, the push method of scheduling may be appropriate.
However, since the actual customer demand is not directly
incorporated into the scheduling exercise, build-up of inventory may
take place in a push system.
Moreover, an organization practising push-scheduling tends to be
internally focused

KANBAN
Production control is primarily achieved by
passing information pertaining to
production to the respective work centers.
The information typically consists of an
authorization to produce a certain
quantity of items begining at a particular
time.
Although this appears to be simple task ,
traditional manufacturing have
experienced difficulties in performing this
task.
This is partly due to bad structures
emphasizing functional orientation.

 JIT system make architectural changes and

simplify the planning and control process
to a large extent.
Therefore, it is possible to devise
alternative methods for production control.
Typically, JIT manufacturers utilize a
concept known as kanban.
Kanban is a Japanese word which denotes
a card or a visual signal.
The logic of kanban as a production
control tool based on the stock
replenishment process an a supermarket.

The working of the dual-card kanban

system
In dual-card kanban, two are used for planning and control
purposes.
These are production kanban (P-kanban) and conveyance
kanban (C-kanban).
Irrespective of the type of Kanban, each of them have basic
information about the item, its specifications, details about
the preceding and succeeding process and the quantity of
items associated with each such Kanban.
A P-Kanban basically serves as the authorization for
production of the number of items indicated in the Kanban.
For example, if a P-Kanban has the indicated quantity to be
40 units, then each such P-Kanban serves as an
authorization for the work centre to manufacture 40 units.
In a similar fashion, a C-Kanban serves as the authorization
to move that many units from the preceding process to the
succeeding process, where it is used for processing.

structural features of the

manufacturing system
Preceding and Succeeding Processes:
The basic element of material flow in a JIT
system is between a pair of processes.
The preceding process feeds the required
components to the succeeding process.
A pair-wise relationship of such preceding
and succeeding process is primarily
responsible for cascading the pull effect
from the final customer down to the raw
material stores, as we have already seen.

Inbound bufer
Every process has a designated space for
inbound buffer.
The inbound buffer has provisions for storing
the components moved from a preceding
process using a C-Kanban.
Therefore, each full container of inbound
buffer will have a C-Kanban attached to it.
However after utilizing the components for
processing, the empty container is usually
returned to the inbound buffer and the
associated C-Kanban to a Kanban post (or
holder).

Kanban Post
The number of C-Kanbans and the P-Kanbans
and the quantity of each Kanban associated
with each item of inventory in a
manufacturing system is a design issue.
However, since more than one P-Kanban and
C-Kanban may be there for each item of
inventory, and since several items may be
produced in a particular work centre, it is
typical to have a Kanban post to hold these
Kanbans systematically.
Moreover, the Kanban post also serves as a
visual control aid to production control.

Outbound bufer
Just as in inbound buffer, each process in an
outbound buffer has a designated place to store
the components after processing is completed.
Since processing is always authorized only by a PKanban, we would expect every full container to
have a P-Kanban attached to it.
The succeeding process would have left empty
containers in the outbound area, which need to be
subsequently replenished by the process.
The associated P-Kanban will be deposited in a
Kanban post (or holder).

Step 1:
The succeeding process begins one cycle of
production as soon as P-Kanbans (which
authorize the production) and empty
containers are available.
One P-Kanban is drawn from the Kanban post
and an empty container is picked up from the
outbound buffer.
Step 2 :
In order to begin production, one full container
with an attached C-Kanban is moved from the
inbound buffer area to the processing area.
The C-Kanban is detached from the container
and displayed at the Kanban post.
Production of components begins.

 Step 3:
As production is completed, the P-Kanban is
attached to the full container of finished item and
the container is moved to the outbound area.
Similarly, the empty container (since all
components are used up for manufacturing) is
moved back to the inbound buffer area.
Since the succeeding process pulled out one full
container of components from the inbound buffer
area, used it for manufacture and returned back
the empty container, it will trigger action in the
preceding process to replenish what the
succeeding process consumed.
The remaining steps describe this process.

Step 4:
One empty container from the input
buffer area of a succeeding process and
a C-Kanban from the Kanban post of the
succeeding process will be taken to the
outbound buffer area of the preceding
process for replenishment.
Step 5:
Swapping of Kanban cards between
containers takes place at the outbound
buffer area of the preceding process.
What this means is that the P-Kanban
attached to the full container will be

Step 6:
As a result of this swapping operation,
the full container and C-Kanban will
return to the inbound buffer area of
the succeeding process.
Step 7:
The empty container will be placed in
the outbound buffer area of the
preceding process.
The P-Kanban will be displayed at the
Kanban post of the preceding process.

 It may be noted that using this 7step process, we have ensured that
empty containers and P- Kanbans are
available at the preceding process.
Therefore, we can return to step 1
above and perform one more
iteration of moving empty containers
and P-Kanbans to an earlier process.
This how the pull effect cascades
through the system.

Design of kanban
quantities
Follow FOQ fixed order quantity system
Oder is placed for an item when stock
level reaches the reorder point.
The quantity order is a fixed number
arrived on the basis of some
considerations.
Two bin system : Implementation of FOQ
Material is stocked in two bins
One large bin and other small bin.

 As soon as the larger bin is empty , an

order is placed and items from the small
bin are consumed.
The quantity in the small bin corresponds
to the demand to the demand during the
lead time for replenishment of the item,
plus some safety stock.
Therefore at about he time the smaller
bin gets empty, the orders arrives.
These inputs are used for computing the
container size and the number of
kanbans required in a JIT system.

Standard containers
In a JIT system material, flow control is obtained
through the use of predetermined quantities
stored in standard containers.
Generally container of small quantities are
recommended.
Smaller containers are easy to move between
station , require lesser space to store, provide
better methods of access and material handling
and permit the build-up of lesser buffer quantities
in the system.
The thumb rule is to have about 10 percent of
daily demand as per the quantity of the container.

Numbers of kanban

Demand rate = D
Number of kanbans = K
Production lead time = P
Conveyance lead time = C
Safety factor =
Container size = Q
K =D(P+C) (1+ )/Q

Operations: Improvement
Options???

1970s precedence The Japan story

Cost cutting and lead time reduction

Continuous improvement methods
In 1976, 49% in 30 mins, by 1981, 62% within 100
secs !!!
Continuous Improvement of operations (Step, Ramp n
Hybrid)
Radical Improvement (Technology, capacity
Upgradation and addition of new plants)

RI

Innovation
Sporadic but
Substantial
change
Investments
required
High
productivity
Quality
Low production
cost
Economies of
scales
Steel and
Petrochemical
processes.

CI

Systematic
Optimizes
available
resources,
technology and
capacity
Reduces wastage
Operational
efficiency
Iterative
increments
Business,
Manufacturing,
Business
processes like
marketing
finance and
CRM.

The Continuous Improvement

Process
Measure
Improveme
nt

Create a
Context

Monitor
improvemen
ts

Parapherna
lia for
employees
Organizatio
nal
Structure

Context: Provides perspective and meaningful application of tools

and techniques. Include benchmarking exercises, TPM, TQM initiatives,
preparing the organization for intl awards like TPM Prize, Shingo Prize.

Measurement Methodology: Assesses improvement efforts,

quantifies improvements. E.g. set of lead time measures may be used
for a no. of processes, schedule adherence and on-time delivery index.

Application of tools and techniques: Quality circle tools like PokaYoke and the mistake-proofing method enables defect elimination and
production improvement.

Organizational Structures: calls for large no. of small groups of

employees from same or different functional areas or skills.

Monitor and recognize eforts: Identifies opportunities, establishes

checks and balances, ensures role and goal congruence among
various teams.

Tools for Continuous

Improvement
Kaizen (Change
for the better5s)
Seiri, or sort
Seiton or set in
order
Seiso or scrub
Seiketsu or
standardize
Shitsuki or
sustain

Process
Mapping
Business
process
reengineerin
g

Nonvalueadded
analysis
QC Tools

Kaizen

Quality
Circles
Task
Force

Organizat
ion for
continuou
s
improvem
ent

SGIA
Visual
Control
Aids

 Task Force:
Create a team of managers who implement continuous
improvement culture, and act as change agents.
Gets constant support from top management.
Talk to various groups of the workforce, the union, support
functions.
Communicate the need for changes and solicit employees
support.
Prepare project proposal outlining steps for change
implementation (Budgeting, chronological ordering, resource
identification, monitoring and controlling of the project).

 Quality Circles:
Small group of employees provided with paraphernalia to
identify and solve problems by implementing required changes
in the business processes.
Typically, 8-12 employees, either from the same or different
work areas, meet at regular intervals for about 90 mins a week,
to discuss various problems and possible solutions to eliminate
them.
Instead of focusing on several issues at the same time, they
work with one problem at a time.
Quality Circles are allowed to meet during working hours at predesignated time.

 Project-based Small Group

Improvement Activities (SGIA)
Alternative term to describe Quality Circles, used for
any business process improvement including quality
improvements.
Based on Quality Circles experience, certain
improvements were made for directing SGIA
activities.
Done on a project-by-project basis.

 Visual Control Aids for Improvement:

Triggers improvement initiatives, motivates
employees.
Convince management to support such projects
and provide them with verifiable and direct results.
Serve as formal mechanism for employees to
perform SGIA.
Involves:
Identifying core operational measures
Creating visual information system
Setting up a visual control display board (3 sets of
measures, operational, improvement and performance).
Facilitates employees for conducing SGIA.

Lean Operations
Lean operations are externally focused
on the customer
Starts with understanding what the
customer wants
Optimize the entire process from the
customers perspective

Main Principals
Identify the customer
Map the flow
Make a product or service flow
Create polls based on customer
demands
Continually find ways to improve

Organizational Challenges
in Lean Management
JIT
Implementati
on Issues

Cultural and
Human
Issues

Resistance to
change

Incentives
and reward
systems

Tangibility of
improvement
s

 Bottlenecks in attaining Lean Management:

Mindsets, people and culture issues
Varying role of top management in transformation process
Lack of top management vision
Practice preach gap
Reluctance to empower people at the lower levels
Oblivion in bringing about improvements, where and how.

JIT Implementation:
Thinkers vs. doers
Process industries vs. automobile (manufacturing) industries
Lack of internalization, varying degrees of conviction and clarity.

Lean in Services
Overview

What is Lean really?

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 the product or services, value is defined
as any action or process that a customer would be willing to pay for .

Lean, whether in Services or

manufacturing

is based on the premise that anywhere work is being done, waste is

being generated and should be minimized or removed
is about doing more (customer value) with less (resources)
is about removing complexity
is about reducing inventory and WIP
is about improving flow, pull instead of push
is about doing things faster
is about reducing costs
Is about increasing capacity
is not about eliminating people

LEAN IS ABOUT A
RELENTLESS
FOCUS ON THE
IDENTIFICATION
AND
ELIMINATION OF
WASTE.
It can be used at any level of the organization and
applied to any process or work area, services,
transactional, or manufacturing
It is a mentality, a way of thinking, as well as a tool set
It can quickly help a team (or individual) understand any
business process in a way that allows waste to be
identified and removed to reduce costs, improve cycle
time, and improve quality.

Manufacturing or Services
There are Common Elements

Goal is to Drive Performance whether in mfg or

services. It is Systems thinking irrespective of
deliverable and improvement tools.
Driving Performance improvement isnt a Lean
initiative, its a business initiative.
Significant improvements in both services and
manufacturing can be realized through Lean
thinking, and recognizing opportunities to
improve through Lean lenses

Unique Aspects of
Services
Examples of Types of
Work
Service - Installation & Integration Of

Hardware or HR Recruiting
Transactional - Mortgage Operations or
Credit Review
Analytical - Finance Department
Creative - Designing Published Content
for Mobile Devices, software development

Unique Aspects of
Services
There is typically greater involvement of

customers in the production process. In many

cases, the customer is a supplier to the
process.
Sometimes the involvement is so ingrained
in the process that you really end up with
co-production with the customer.
Since services processes are often very
people-centric (vs. machine-centric), it is very
difficult to get to real standardization.
Quality is an experience, not just a
measurement against specifications. The
inability to standardize the process makes it
very difficult to standardize quality. The

Unique Aspects of
Services
There is much less visibility to what is actually
happening. Information is flowing, not product, and
that information can be digital, paper, or even verbal.
And, HOW it flows often has little or no standardization
IT systems play a much bigger role. They enable the
process, but can also be a rigid constraint on the
process. There may be multiple and often unintegrated systems. Workarounds persist in the form
of excel spreadsheets, word docs, etc
WIP and inventory are often hidden and ignored, but
they are there and can have the same negative
impacts as in a manufacturing environment (e.g.
wasted resources, longer lead times, more variation

Leans fundamental focus of eliminating

waste aligns well with the concept of
preserving value with less work and
doing more with less. Lean thinking
provides specific lenses for looking for
different types of waste in your services
or backoffice processes

Examples of Waste in
Services
Transportation (Handling). Movement of paperwork,

multiple hand-offs of electronic data, approvals, excessive

email attachments and distributing unnecessary cc copies
to people who don't really need to know
Inventory. Purchasing or making things before they are
needed (e.g. office supplies, literature...). Things waiting in
an in-box, unread email and all forms of batch processing
create inventory
Human Motion. Walking to copier, printer, fax... Walking
between offices. Central filing. Unnecessary meetings
Waiting. Slow computer speed. System downtime
(computer, fax, phone...). Waiting for approvals, waiting
for customer information or waiting for clarification or
correction of work received from upstream process create
much waste in office and business systems.

Examples of Waste in
Services
Overproduction. Printing paperwork or processing an
order before it is needed. (things can change) Any
processing that is done on a routine schedule regardless of current demand
Over-processing. Relying on inspections, rather than
designing the process to eliminate errors. Re-entering
data into multiple information systems, making extra
copies, generating unused reports, and unnecessarily
cumbersome processes are overprocessing. Demandside waste can create over-processing
Defects. Data entry errors or invoice errors.
Engineering change orders, design flaws, employee
turnover and miscommunication are all defects in
office processes

Examples Constraints
1. Physical constraint People, tools,
systems, etc.
2. Managerial constraint Policies that
require levels of sign off or work hour
requirements that do not match well
with the arrival of work.
3. Behavioral constraint Worker or
supervisor tendencies to: get the
easy ones out of the way first, or Ive
done my part, its too bad that the

Diferences in Application
Example - Material &
Information Flow
Manufacturing

Service

What is flowing

Various stages of
manufacturing inputs
ranging from raw materials
to shipped finished goods.
It is all VERY visible.

Various forms of
information, documents,
etc in paper, digital, or
even verbal form. Flows in
many cases are not
visible.

Information Flow

Highly structured with

formalized IT systems. Very
specific instructions for
operators

Multiple and often

unintegrated systems.
Workarounds persist in
the form of excel
spreadsheets, word docs,
etc

Schedule Notification

Multiple points around VSM

Work is loosely scheduled

or unscheduled

Material Flow

Yes

Sometimes

The Practical Challenge Project Selection

Give me six hours to chop down

a tree and I will spend the first
four sharpening the axe

Abraham Lincoln

TOYOTA PRODUCTION
SYSTEM
Improvements must be Made!!!!!!!!!

TPS CONCEPT.
A production system which is steeped in the philosophy of "the
complete elimination of all waste" imbuing all aspects of production in
pursuit of the most efficient methods.
Toyota Motor Corporation's vehicle production system is a way of
"making things" that is sometimes referred to as a "lean
manufacturing system" or a "Just-in-Time (JIT) system," and has come
to be well known and studied worldwide.
The Toyota Production System (TPS) was established based on two
concepts:
The first is called "jidoka" (which can be loosely translated as
"automation with a human touch") which means that when a problem
occurs, the equipment stops immediately, preventing defective
products from being produced;
The second is the concept of "Just-in-Time, in which each process
produces only what is needed by the next process in a continuous flow.

JIDOKA
Highlighting/visualization of problems
Quality must be built in during the manufacturing process!
If equipment malfunction or a defective part is discovered, the affected machine
automatically stops, and operators cease production and correct the problem.
For the Just-in-Time system to function, all of the parts that are made and supplied
must meet predetermined quality standards. This is achieved through jidoka.
Jidoka means that a machine safely stops when the normal processing is completed. It
also means that, should a quality / equipment problem arise, the machine detects the
problem on its own and stops, preventing defective products from being produced. As
a result, only products satisfying quality standards will be passed on to the following
processes on the production line.
Since a machine automatically stops when processing is completed or when a
problem arises and is communicated via the "andon" (problem display board),
operators can confidently continue performing work at another machine, as well as
easily identify the problem's cause to prevent its recurrence. This means that each
operator can be in charge of many machines, resulting in higher productivity, while
continuous improvements lead to greater processing capacity.

JIT
Productivity improvement
- Making only "what is needed, when it is needed, and in the amount
needed!"
Producing quality products efficiently through the complete
elimination of waste, inconsistencies, and unreasonable
requirements on the production line.
In order to deliver a vehicle ordered by a customer as quickly as
possible, the vehicle is efficiently built within the shortest possible
period of time by adhering to the following:

When a vehicle order is received, a production instruction must be

issued to the beginning of the vehicle production line as soon as
possible.

The assembly line must be stocked with required number of all

needed parts so that any type of ordered vehicle can be assembled.

The assembly line must replace the parts used by retrieving the
same number of parts from the parts-producing process (the
preceding process).

The preceding process must be stocked with small numbers of all

JIT-Philosophy of complete elimination of waste

"Just-in-Time" means making "only what

is needed, when it is needed, and in the
amount needed."
For example, to efficiently produce a
large number of automobiles, which
can consist of around 30,000 parts, it
is necessary to create a detailed production
plan that includes parts procurement.
Supplying "what is needed, when it is needed, and in the
amount needed" according to this production plan can eliminate
waste, inconsistencies, and unreasonable requirements,
resulting in improved productivity.

KANBAN SYSTEM...

In the TPS, a unique production control method called the "kanban

system" plays an integral role.
Also called the "Supermarket method" because the idea behind it
was borrowed from supermarkets.
Such mass merchandizing stores use product control cards upon
which product-related information, such as a product's name, code
and storage location, are entered.
Because Toyota employed kanban signs for use in their production
processes, the method came to be called the "kanban system."
At Toyota, when a process refers to a preceding process to retrieve
parts, it uses a kanban to communicate which parts have been used.

SUPERMARKET concept ???

A supermarket stocks the items needed by its customers

when they are needed in the quantity needed, and has all
of these items available for sale at any given time.
Taiichi Ohno (a former Toyota vice president), who
promoted the idea of Just-in-Time, applied this concept,
equating the supermarket and the customer with the
preceding process and the next process, respectively.
By having the next process (the customer) go to the
preceding process (the supermarket) to retrieve the
necessary parts when they are needed and in the amount
needed, it was possible to improve upon the existing
inefficient production system.
No longer were the preceding processes making excess
parts and delivering them to the next process.

Conceptual diagram of the

Kanban System

Illustration Of the Toyota

production System
Illustration Of the Toyota production
System

HARLEY DAVIDSON!!!

If you're only going to get a few parts, they all have to b

good ones(Reid)

History .
A US-based motorcycle manufacturing company
It faced fierce competition from Japanese automobile
companies Suzuki , Yamaha , Kawasaki , and Honda in
the 1960s
It tried to understand the different processes and
practices of these companies because of which their
operating costs were 30% less than its own(Dumping
Case)
3 practices were noticed:

JIT manufacturing
Employee involvement
The use of statistical process control

History Contd.
Harley-Davidson successfully adopted
Japanese manufacturing principles
which many considered were
impossible for US manufacturers to
achieve because of cultural and
political reasons.
After implementing these Japanese
techniques, Harley-Davidson
succeeded in manufacturing high
quality motorcycles at lower cost.

JIT Environment at HARLEY

DAVIDSON!!!!!
Some of Harley-Davidsons specific JIT goals
are:
Reduction of inventory within the entire supply
chain
Greater flexibility of supply chain
Improved product quality
Reduction of overall costs within the supply chain
Reduction in overall procurement lead time
Reduction in delivery lead time for HarleyDavidson customers
Improved competitive position in the market

JIT Manufacturing
Harley-Davidson relies heavily upon its
suppliers to produce the right products,
at the right quality level, delivered in the
exact quantity precisely when they are
needed, and in the manner HarleyDavidson requires them to be delivered.
The JIT Environment begins with
involvement in the Supplier Selection
Process: the ability to meet quality, cost,
and delivery expectations
Emphasis continues during Product

JIT Manufacturing
Harley-Davidson and the supplier work together
simplify and standardize, as much as possible,
the product and processes utilized to
manufacture the product: Reduces the overall
lead time for the product
Philosophy- Working on potential issues early in
the product life cycle, minimizes the chance that
suppliers will be unable to provide products
when they are needed during the normal
production cycle.
The focus of Harley-Davidsons JIT environment
is providing an efficient supply chain that
minimizes waste, increases flexibility, reduces

Employee Involvement
Successful implementation of any company
program occurs when there is a commitment
at all levels of the organization.
Top management not only directs but takes
direction from the lower level employees.
Top management encourages education for
employees of company objectives and
develops a trust that employees will execute
the right decisions.
Employees in return also learn techniques
to continuously improve the quality of
Harley's manufacturing processes.

Statistical Operator Control

SOC involves using simple statistical techniques and
control charts to monitor the variation in a work process
Harley decided to hand the SOC approach down to its
employees on the floor.
With statistical methods , the operator was now able to
answer two crucial questions :
Is the process in control (operating in a stable, predictable
range of variation)?
Is the process capable (able, consistently, to remain with in the
specifications
Combination of Employee Involvement and Statistical
Operator Control lead to an improved quality in Harley
motorcycles