What is Lean…?

 Lean is a way of thinking…

 that eliminates waste…
 …and makes life continually
better.

Lean is also;
 a Management System
 a Collection of Tools
 a Culture

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Waste & Loss

WASTE = Excess of input LOSS = Output not Utilized

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Waste & Loss

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Waste & Loss & Cost

Waste &
Loss
and Cost are different

All cost-generating activities which are not adding value to our

product
Waste &
Losses

Cost

VA

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VA / SVA / NVAA

Any activity that costs resources but doesn’t add value to the product, any activity the
customer will not pay for.
(Activities that do not make transformation of the product)
I.e. Walking, searching, moving, waiting…

Any activity that even though it doesn’t add value to the product, it is not removable
I.e. picking

Any activity that lead to an increase in value for the product. These are the activities the
customer is willing to pay for.
I.e. Painting, welding, screwing

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Waste… 8 Common Waste in Manufacturing

Meet TIM Woods

Transportation T O Over Production

Inventory I O Over Processing

Motion M D Defects

Waiting W S Skill

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Ergo Burden : MURI–Concept of Golden Zone & Strike Zone

What is Muri?

Muri = Physical Strain

Bend to work?
Push hard?
Lift weight?
Repeat tiring action?
Wasteful walk?

All this is Muri !

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Mura

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Muda

Training on Waste & Losses

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Muda

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 What is a process ?
Set of interrelated or interacting activities which
transforms inputs into outputs

Procedure
S C
U U
P Inputs Process Outputs S
T
P
O
L
I M
E E
R R
S S
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 Value and Waste
A process transforms inputs into outputs

Any transformation process either; Creates

Value
or
Generates Waste (Muda)

Value

Wast
e
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 Value and Waste
• Value-Added Activity:
– Customers are willing to pay for it.
– It physically changes the product.
– It’s done right the first time.

• Non value-Added Activity ( Waste) :

– Is not essential to produce output.
– Does not add value to the output.
– Consumes more resources than required to produce the
output

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 Waste of Over production
• Supplying the process with
more than what is needed to
meet customer orders

• Produced to compensate loss

in production due to
absenteeism, equipment break
down, higher rejection rate,
Mother of all Wastes !! inconsistency in operation

• Instead of eliminating the

root cause companies go for
overproduction
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 Waste of Over production
We always have excuses for over-producing.

Some of the most common are

• “The setup times are long, and since we’ll use it next
month anyway…”
• “Since I’m doing it anyway, I’ll just finish the forms for
next week…”

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Waste of Over production

It’s true that the setup times are long and we do plan to
use the material soon.
But what is missing in is that over-production costs
Money and time :
▪ We pay to produce items not needed now
▪ We pay to move them to the storage area
▪ We pay to move them from the storage area
▪ We rent warehouse space to store the extra parts
▪ We search for the items when we actually need them
▪ We expedite new production runs or rerun the forms
when we can’t find what we need
▪ The line shuts down because we don’t have what we
need
▪ We scrap the originals because they are obsolete or
damaged when we find them days or months later.
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 Waste of Inventory
• More than the required stock of
finished product, work-in process and
raw materials
• They add to cost of operation by
blocking more money, increased
requirement of transportation,
storage and handling
• In many situations extra inventory
gets scrapped due to limited shelf life
or becomes obsolete due to design
changes

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 Inventory Hides Waste

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 Inventory Hides Waste

© 2016 WIPRO ENTERPRISES (P) LIMITED I WWW.WIPROINFRA.COM

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 Waste of Transport
• Multiple Handling, moving in and
out of warehouse
• It also leads to damage
and handling defects
• Excess inventory, multiple storage
points, improper layout, processes
Transport is an essential part of distant to each other leads to
operations, but moving materials and Muda of transport
products add no value

Use of conveyors, fork lifts, trucks and

other transport system has to be
minimized

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 Waste of Motion
• Any motion of a persons body not

directly related to adding

value is non productive

• Walking without working (Away from

workstation), reaching, Bending,

unnecessary motion of hands etc

• Poor workstation layout, isolated

operations, shared tools, lead to this

type of waste

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 Waste of Defects
• Defects or rejects interrupt
production and require
expensive rework
• More cost due to Rework,

re-inspection, resolving complaints

• Lack of Standard work, training
• Internal rejection and rework
more material handling and
• Customer complaints
improper process / equipment
design , improper raw
materials lead to defects

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 Waste of Waiting

• Muda of waiting occurs when the hands of the

operator are idle

Operator’s work is put on hold because of line

imbalances, lack of parts, or machine downtime or
operator monitoring the machine

Waiting for - Parts , inspection, when machine is adding value to

approval, instructions, decisions
the job
etc

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 Waste of Over processing
• Extra set ups, Over specification, extra
process steps lead to waste
• Sometimes inadequate technology or
design leads to muda in processing
• Unproductive striking of the press, de-
burring of the product, machine idling
cause muda

• Doing more than necessary to

produce a functioning
product

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 Waste of Untapped Human Potential
The purpose of efficient system is “to
create thinking people • Employees are seen as source of
labour- Not as process experts
• People are told What to do , asked
not to think
• Employees are not involved in
problem solving, finding solutions
Not using creative brain power of • It requires a culture of trust and
employees, not listening, thinking
that only managers have idea worth
mutual respect.
pursuing

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 Identify waste

Can you Identify these Wastes in your process

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 VSM Concepts

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 Value Stream Mapping
Value Stream Mapping :

– Special type of flow chart that uses symbols known as "the

language of Lean" to depict and improve the flow of
inventory and information.

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 Why Value Stream Mapping ?
 What’s the big deal in doing a value stream map ?
 Why can’t we just make improvements?
• We know what the problems are !
• Why need to waste our time doing maps.
• We see waste now. Just let us attack it.
 Yes ..Sure, we can make improvements without value stream
maps
 However, we know that not all of our improvement activity led
to “Bottom-line results”.
 What was worse, our improvements did not always “Add value
to our customer”.

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 What is Value ?
. A capability provided to a customer
- of the highest quality,
- at the right time,
- at an appropriate price,
as defined by the customer.

"Value" is what the customer is buying

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 What Flows?

"ITEMS" flow through a value stream

– In manufacturing, materials are the items

– In design & development, designs are the items
– In service, external customer needs are the items
– In admin., internal customer needs are the items

The part of the value stream has customers too

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 What is Value Stream Analysis?

 Planning tool to optimize results of

eliminating waste

Future State VSM

Current State VSM

Lean
+ + Basics =

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 What Is a Value Stream Map (VSM)?

Value Stream
All of the actions …required to bring a product from concept to
launch and from order to delivery…includes actions to process
information from the customer and actions to transform the
product on its way to the customer.

Value Stream Map

 Simple diagram of every step involved in the material and
information flows needed to bring a product or service from
order to delivery.
 Current State VSM follows a product’s path from order to
delivery to determine current conditions.
 Future State VSM deploys opportunities for improvement
identified in the current-state map to achieve a higher level of
performance at some point.
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 Value Stream Mapping - Guiding Principles

“Chase waste” - Helps identify waste and its sources

“Make value flow” - Provides measurements to indicate areas of

improvement

“Take the customer’s view” - Provides an end-to-end view of the

value stream (product, service, or business process), starting
and ending with the customer

“ Make it visual” - Provides a graphical representation used to

create common vision

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 Key Steps

Select a Focus on a single product, process, or service from

product beginning to end.
family

Develop an understanding of what happens today.

Map the  Information
current state  Material
 Interactions

Design the Design a lean value stream to:

 Create a vision of what/where you want to be
future state
 Enable implementation

Plan and Create an implementation plan to achieve future state

implement design

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 Creating an Accurate Map

Do It  Gather your own data; validate data provided by others

Yourself  Do not subdivide the mapping of the value stream, as
you need to understand the end-to-end activity
 Sketch the flow as you go
Use a Pencil  Modify on the fly
 Focus on the flow and interrelationships, not on making it
look pretty
Do a Quick  Walk the value stream to get a sense of the flow and
Review
sequence
 Walk the process from customer requirements back to
Do Detailed
inputs (e.g., from shipping dock back to raw materials).
Analysis
 Capture all relevant process data as you go (e.g., Cycle time,
WIP/wait time, Flow of material & information, Number of
people, Working time)

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 Template

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