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Transcript of Lean
Parvinder Kaur Lean Manufacturing Outline 1. Lean
Principles Of Lean
The seven wastes
Tools, Process and Benefits
2. Case study- Boeing By Megan
3. Case study- Wipro By Parvinder Specify value from the stand point of the customer ( not from your assets and organization).
Identify the value stream through the steps required to create and deliver each product and remove the waste steps.
Make the process of value creation flow smoothly and quicker to the customer, but only in line with the pull of the consumer.
Pursue perfection by continuously improving the product, process and value stream.
Engage, empower and encourage employee participation, converting their passion and energy into lasting improvement Principles Of Lean Manufacturing Utilization of Space
On time delivery
Productivity improvement Benefits Of Lean Lean thinking continues to spread to every country in the world.
The continued success over the past two decades created an enormous demand for greater knowledge about lean thinking.
There are literally hundreds of books, paper, media articles exploring the subject.
Leaders are adopting the tools and principles beyond manufacturing, to logistics and distribution.
Lean consciousness and methods are only beginning to take root among senior managers and leaders in all sectors today. Lean Today
Lean manufacturing is used to reduce waste in the company’s production line to create more value to the customers using fewer resources.
- Company needs to focus on the production costs, product quality and delivery, and worker involvement History Lean Tools 5s house keeping
JIT- Just in Time
TPM- Total Productive Maintenance
Work cell Going Lean Giant Eagle G E Motorola Boeing Du Pont Coca-Cola GIECO Ford Glaxo Smith Kline Staples Case Study The Boeing History 100 years
Founded in 1916 in Seattle, Washington
William E. Boeing
20 years later
Revolutionary Plane introduced
Boeing 247 considered to be first modern airliner
Operated planes for commercial purposes
World War II focused on military aircraft
Famous B-17 and B-29 were formed Remain main production line 7x7 Series introduced in 1958 The Mission Values
People Working Together
A Diverse and Involved Team
Good Corporate Citizenship
Enhancing Shareholder Value
People working together
Business imperatives Products Aircraft carries – passengers, cargo, and military
Began implementing Lean Manufacturing throughout its Commercial Airplanes division in February 1996.
Lean efforts implemented at the Everett plant Objectives Increase ability to deliver more value to customers
Continuous elimination of waste in the Company’s manufacturing processes Strategies Applying Lean Manufacturing principles and strategies
Based its Lean activities on the principles demonstrated by Toyota production system and identified in Womack & Jones’ Lean Thinking.
Lean principles embraced by Boeing are:
Identify the value stream
Make value flow
Pull value through from the customer
Incorporates these principles in all lean efforts within the company Lean at Boeing Several processes to implement Lean Manufacturing
Conduct a Lean Manufacturing Assessment
Central component: employee participation 5 days long
Workshops focus on individual work areas Implementing Lean projects throughout the Everett plant
Created a Lean Group
Programs invite the group to participate in specific Lean Projects
Different airplane programs and organizations created their Own Lean offices
Five Lean projects at the Everett plant Accelerated Improvement Workshops (AIWs) The Seven Wastes Process Of Lean Manufacturing 777 Floor Grid Component Delivery Improvement Critical Process Re-engineering(CPR) office
Produces parts in Wichita, Kansas and Tulsa, Oklahoma
“Link the Flow” workshop
Shortening the overall value chain
Old Shipping System
New Shipping System Resource productivity gains
8 days of travel and 3 days of receiving and inspection eliminated
Approximately $7,900 saved per ship set or $396,000 in annual transportation costs
Floor grid inventory reduced by 25%
50% less transportation
Handling of materials has been reduced
Adjusted manufacturing schedules Results of the new 777 747 Line Side Supply and Simplified Ordering System Wing Responsibility Center developed 747 Line Side Supply and Simplified Ordering System
Improving inventory and supply chain systems
Inventory and Supply Systems
Old Inventory and Supply System
New Inventory and Supply System Result of the new 747 Resource productivity gains
Inventory reduced from 14 shit sets to 4
Rework due to handling damage eliminated
Approximately 350 cubic feet of cardboard and bubble wrap packaging eliminated per wing ship set
Parts and mechanics travel will be reduced Findings Lean Manufacturing is Mainstream
Lean Manufacturing as a key strategy for remaining competitive
Producing aircraft at a lower cost and greater margin is key
Lean efforts have expanded to the whole company
Lean Produces Significant Resource Productivity Improvements with Important Environmental Improvement and Sustainability Implications
Improve “environmental footprint” per unit of productions
Realized resource productivity improvements ranging from 30% to 70%
Reduced the amount of energy, raw materials, and non-product output
Lean Produces a Robust Waste Elimination Culture
Mirrors pollution prevention cultural elements
Eliminate anything that does not add value to the product Ability to conceive and deliver innovative products faster than the competition
Manufacturing environment subject to constant, on-going change
Modifications to material inputs, product outputs, non-product outputs, equipment configurations, and operating parameters Implications Maximizing its production efficiency
Helping to achieve goals of standard operation.
Employees are doing the right work, the right way,at the right time. Case Study Wipro - Lean in IT WIPRO is one of the largest IT services companies in India.
WIPRO was the first company which marketed the first indigenous homemade PC from India in 1975.
Wipro became the first Indian IT service provider to be awarded gold level status in Microsoft’s windows embedded partner program
Today Wipro is ranked 31 globally in 2011 in the list of IT service providers.According to the 2011 revenue, Wipro is the third largest IT services company in India. Profile Wipro started as a vegetable oil company in 1947 from an old mill founded by Azim Premji's father.
When his father died in 1966, Azim, a graduate in Electrical Engineering from Stanford-University, took on the leadership of the company at the age 21.
He repositioned it and transformed Wipro (Western India Vegetable Products Ltd) into a consumer goods company that produced cooking oils/fat company, laundry soap, wax and tin containers. At that time, it was valued at $2 million.
In 1977, when IBM was asked to leave India, Wipro entered the information technology sector.
In 1979, Wipro began developing its own computers and in 1981, started selling the finished product. This was the first in a string of products that would make Wipro one of India's first computer makers.
In 1980 Wipro moved in software development and started developing customized software packages for their hardware customers. This expanded their IT business History Mission &Vision Mission
“To serve customers with integrity through innovative, value for money solutions, by applying thought day after day “
To offer services based on world-class infrastructure, industry expert skills, proven process-oriented service operations that are backed by principals to ensure the world’s best way of delivering IT infrastructure management solution. Values Red: Life, Dynamism, Auspiciousness
Green: Nature, Freshness, Growth, Prosperity, Youth
Yellow: Sun, Warmth, Vitality, Aspiration
Violet: Intelligence, Innovation, Shrewdness,
Mystery Blue: Sky, Sea, Transparency Colors In Wipro Logo Customers • Company was not able to compete on the basis of low labor costs
• Difficult to compete with other IT Firms on superior quality.
• Could not meet customer expectations Why go in for Lean Management? Lean Management at Wipro Wipro started ‘lean journey ‘ in 2004•
Wipro taught employees to ask ‘5 why’s’ to find the root cause for wastes and eliminate wastes, which can reduce inefficiency•
This technique was implemented in a project which was falling behind the schedule.(Out of 10 projects identified) How Wipro Implemented Lean Management? Wipro identified that most of employees were solving same problems over and over
Wipro identified that no standards existed-
Skilled people were asked to create standards and train the same to other members-
Rotation of people into different function was carried out to ensure employees acquired necessary skills-
Certain wastes like ‘cluttering of unnecessary mails’, ‘unnecessary meetings’, ‘wastage of time due to unavailability of required resource – printer example’ were identified and fixed Implementation In the Project Specify the work
Define who should be communicating,
Address problems quickly -
Problems should be solved where they occur
Engage your managers Lean Management at an Organizational Level Results As of 2010, almost 36% of total Projects are using Lean techniques.•
Each project saves at minimum 20% cost on an average•
Reduction in lead time for projects previously requiring 180 days to 100 days•
Achieves cost reduction for both clients and Wipro•
Defect rate reduced from 18% to 8%
Projects applying lean principles show10 -15 % productivity enhancement and a 20 % higher capability to handle requirements volatility
When applied to very large projects, been able to offset the challenges of complexity and trainee development.
Lean has helped to rein in overruns.
On maintenance engagements - projects which have deployed lean have demonstrated a significantly higher Sustenance Productivity.
Rejection Index and Bug Fix productivity are also favorable in projects where Lean is deployed. Wipro has successfully pioneered the “transcription” of Lean from its manufacturing origins to transform both business process and underlying software engineering
Lean software development is faster, cheaper and higher quality – we have demonstrated some impressive metrics
Our customers benefit from shorter development cycles and greater reliability
The benefits extend to the “green agenda” because all kinds of waste are addressed
The Lean toolkit is also transformational because continuous improvement demands an open mindset welcoming new ways of thinking “We want to bring the next generation of lean thinking into our processes and weave it into our system so that it will lead to a sustainable competitive advantage” - Azim Premji , Lean Experiences at Wipro 1. Employee Benefits
2. Operational Benefits
3. Customer Benefits.
4. Financial Benefits
5. Lean Capabilities Benefits of Lean in IT Recommendations 1) Alignment with the company strategy;
2) The top-down enablement through senior management; and
3) bottom-up employee behavior and engagement. Wipro worked on both the visible and the invisible parts What Is it?