LEAN AND AGILE MANUFACTURING

Prepared By:

Pallavi Joshi

CONTENT• INTRODUCTION• LEAN MANUFACTURING

HistoryLean over TraditionalFeaturesPrinciple and ProcessAdvantages and DisadvantagesLimitations

• AGILE MANUFACTURINGAgile Over TraditionalElementsComponentsAdvantages and DisadvantagesLimitations

• CONCLUSION

INTRODUCTION

• Few decades before the market was totally dependent on companies, as the time passed this power came into the hands of consumer. Previously there were very limited facilities and products available in market, but now there are several companies, which are working on same kind of products, Due to this competition arises. The whole system goes in the favor of consumers (CUSTAMIZATION). For example, telecom sector. Competition leads to better production system than yesterday.

• Up to 1700 BC production system refers to cottage system.• After 1700 industrialization started , machines came in to

existence.• In mid 1800 factory systems came in to existence.• After World War 2 the creation of service industries accelerated

sharply.

LEAN MANUFACTURING

• Lean manufacturing is a production strategy that’s aims at high levels of production using lesser effort, time & materials.

• It is an integrated business approach adopted to eliminate non value added activities from the customer delivery cycle in the operations.

• This approach enables companies to respond quickly in profitability to changes in customer demands.

• The technique of lean manufacturing can be applied to every situation in a company by finding out what the customer wants, eliminating waste from processes and making flow continuously according to customer pull.

• The main idea is to improve the over all productivity & fulfill the costumer demand.

HISTORY

LEAN OVER TRADITIONAL MANUFACTURING SYSTEM

Production Methods Traditional Lean

Production schedules are based on Forecast — product is pushed through the facility

Customer Order — product is pulled through the facility

Products manufactured to Replenish finished goods inventory Fill customer orders (immediate shipments)

Production cycle times are Weeks/months Hours/days

Manufacturing lot size quantities are Large, with large batches moving between operations

Small, and based on one-piece flow between operations

Plant and equipment layout is By department function By product flow, using cells or lines for product families

Quality is assured Through lot sampling 100% at the production source

Workers are typically assigned One person per machine With one person handling several machines

Worker empowerment is Low — little input into how operation is performed

High — has responsibility for identifying and implementing improvements

Inventory levels are High Low

Inventory turns are Low — 6-9 turns pr year or less High — 20+ turns per year

Flexibility in changing manufacturing schedules is

Low — difficult to handle and adjust to High — easy to adjust to and implement

FEATURES

• Lean Production is a management philosophy• It is “pull system” through the plant• It attacks waste [time, inventory, scrap].• It exposes problems and bottleneck operations.• It achieves streamline production.• It requires continuing improvement and total quality

control.

PRINCIPLES

• James Womack and his team published book ”The Machine That Change The World In 1992”

• James Womack and Daniel Jones teamed up again in 1996 and write a book “Lean Thinking". It contains 5 principles o f Lean Production.

1. Specify precisely the value of a certain product.2. Identify how the value is realized by the customer.3. Make the value flow without interruptions. 4. Allow the customer to pull value from the producer.5. Pursue perfection and improve continuously.

LEAN MENUFACTURING PROCESS

EXAMPLES

• Jefferson Pilot Financial(JPF) was to make their assembly line flow with high volume and high quality to meet customer demand.

They adopted:-

1. Placing linked process near one another.2. Standardizing procedure.3. Eliminate loop batch.4. Setting a common tempo.5. Balancing loads.6. Posting performance result.

ADVANTAGESADVANTAGES

• Reduced scrap and waste • Reduced inventory costs • Cross-trained employees • Reduced cycle time • Reduced obsolescence • Lower space/facility requirements • Quality & reliability • Lower overall costs • Self-directed work teams • Lead time reduction • Longer machine life • Improved customer communication • Lower inventories • Improved vendor support and quality • Higher labor efficiency and quality • Improved flexibility in reacting to changes • Allows more strategic management focus • Increased shipping and billing frequencies

DISADVANTAGES

– Natural calamities affect the efficiency of logistics.– We need the skilled labors, so labor cost will be

increased.– Training cost will be increased.– A sound management system is required.– Employee participation is must.– Small lot size.– Transportation cost increased.

LIMITATIONS

• It is not easy to leave existing industrial culture which is primarily based on western and adopt Toyota culture, which has evolved over years.

• In Lean, efforts has to made at all levels.• Lean manufacturing has no standard methodology to

implement it. First we need to study the organization and then we plan the phase of implementation. If enough planning is not, there will be a lot of bottleneck in implementation.

• There will no quick results whenever Lean manufacturing method are implemented.

• Lean manufacture will get success where there will be definite orders of work , But limited one where there will be larger workforce.

AGILE MANUFACTURING

• Agile manufacturing can be defined as the capability of surviving and prospering in a competitive environment of continuous and unpredictable change by reacting quickly and effectively to changing markets, driven by customer-designed products and services.

• Agile manufacturing is the science of business system that integrates management, technology and work force making the system flexible enough for manufacturing to switch over from one product to another product in cost effective manner.

AGILE MANUFACTURING

FOUR ELEMENTS

COMPONENTS

• Delivering value to the customer.

• Being ready for change.

• Valuing human knowledge and skills.

• Forming virtual partnerships.

ADVANTAGES

• It ensuring agility and flexibility in the manufacturing.

• It can quickly respond to change in product demand and customer requirements.

• This is user oriented technology.• Lower overall costs.• Fast market response.• Lower inventories.

DISADVANTAGES

• We need the skilled labors, so labor cost will be increased.

• Training cost will be increased.• Agile development requires a level of

commitment from the business.• It does seem to work best where a product can

be delivered to its customers having its grade enhanced by recurrent releases.

LIMITATIONS

• It is an IT methodology..• Agile cannot be used for all types of “Project Lifecycle”. • It cannot be blindly applied to all projects. It does need to

consider the organization environmental factors.• Its not easy to replace the whole technology from the market in

a one shot.• The old product which is already in the market [people are still

using that product], maintenance is not a piece of cake.• Agile is more intended to be used in projects with some

characteristics such as small team and Small to medium scope and time to delivery the project.

CONCLUSIONCONCLUSION

LEAN• Look towards maximizing the efficiency of resources that

are within control of the organization,In high throughput and stable environment.

• If the supplier has a short lead time, lean production is possible.

AGILE• Concerned with preparing the organization to took

maximum business advantage in turbulent environment of change and unpredictablity.

• It aims to position the organization to adjust quickly and efficiently to issue not in their control.

• If the customer order cycle is short, agile production is beneficial.

• Agile external to IT is more often classified as "Lean". The agile and lean principles can apply to any project.

• We have extended the reach of agile in IT by introducing lean concepts that make agile more rigorous and provide better organizational communication.

• Agile, in the end, is not an IT-based set of methodologies, but small-team based methodologies.

THANK YOU