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PRODUCTIVITY IMPROVEMENT VIA
LEAN MANAGEMENT
Being Fast, Flexible, Economic
Presentation By
Syed Zeeshan Arshad
BE – Industrial & Manufacturing Engineering
NED UET
Mobile +923322178212
E-mail syedzeeshan.imengg@gmail.com
Session Plan
 What is Lean Management?
 How does Lean Management work?
 5 principles of Lean Management
 Types of Activities
 Taiichi Ohno’s 7 Wastes
 7 Service Wastes
 5 S’s
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Syed Zeeshan Arshad - BE Industrial & Manufacturing

4/26/2015
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What is Lean Management?
 Lean Management is a philosophy that seeks to eliminate
waste in all aspects of a firm’s production activities:
human relations, vendor relations, technology, and the
management of materials and inventory.
 Lean Management was developed by the Japanese
automotive industry, with a lead from Toyota and utilising
the Toyota Production System (TPS), following the
challenge to re-build the Japanese economy after World
War II.
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How does Lean Management work?
 Considers an ‘end to end’ value stream that delivers
competitive advantage.
 Seeks fast flexible flow.
 Eliminates/prevents wastes (Muda).
 Improve Quality.
 Helps in reducing costs.
 Increased Productivity.
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5 Principles of Lean Management
 Value - specify what creates value from the customer’s
perspective.
 The value stream – identify all the steps along the
process chain.
 Flow - make the value process flow.
 Pull - make only what is needed by the customer (short
term response to the customer’s rate of demand).
 Perfection - strive for perfection by continually attempting
to produce exactly what the customer wants.
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Types of Activities
Production operations - can be grouped into following three
types of activities
 Value-added activities - Activities that changes the size,
shape, fit, form or function of material or information as to
satisfy customers’ demands and requirements.
 Non value-added activities - That consume resources but
do not meet the customers’ demands or requirements
 Necessary non value-added activities - Don’t add value
from the perspective of the customer but are necessary to
produce the product unless the existing supply or
production process is radically changed.
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Taiichi Ohno’s 7 Wastes
Waste
“Anything that adds costs
to the product without
adding value”
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Ohno Defined Seven types of Waste (MUDA)
 Over-Production
 Defects
 Inventory
 Motion (Man/Machine)
 Over-Processing
 Transportation (Material)
 Idle Time
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Over-production
Producing
What is unnecessary
When it is unnecessary
And in an unnecessary amount
Worst of All Types of Wastes as it hides other
wastes (Waiting, Movement, Transportation)
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Defects
Physical defects which directly add to the costs of goods sold:
 Inspection
 Customer complaints
 Scrap/Rework
Also Includes:
 Errors in paperwork
 provision of incorrect information about the product
 late delivery
 production to incorrect specifications
Results in Disruptions to the smooth flow and generates
bottlenecks
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Inventory
Unnecessarily high levels of:
 Raw materials
 Works-in-Progress(WIP)
 Finished Goods
Symptoms of a Sick Factory
Extra inventory leads to:
 higher inventory financing costs
 higher storage costs
 higher defect rates
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Motion
Major part of a typical worker’s work Includes
unnecessary physical motions
Too fast or slow movements
Difficult physical movements, due to poorly designed
ergonomics, which slow down/strain the workers
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Over-processing
Unintentionally doing more processing work than
required
Typically performed in the name of Quality May also
include setup and Changeover
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Transportation
Any movement of materials such as
 Moving materials between workstations
 Picking up/ setting down items
Ideally, output of one process should be immediately
used as the input for the next process
Transportation between processing stages results in:
 Prolonging production cycle times
 Inefficient use of labor and space (source of minor
production stoppages)
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Idle Time
Time spent waiting for something by:
 Operator (Material, Tooling)
 Machine (Previous Operation, Inspection, Monitoring)
Bottlenecks or inefficient production flow on the
factory floor
Results in a significant cost as it increases labor costs and
depreciation costs per unit of output
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Sources of Waste
 Layout (distance)
 Long setup time
 Incapable processes
 Poor maintenance
 Poor working methods
 Lack of training
 Lack of adherence
 Ineffective scheduling
 Poor supervisory skills
 Inconsistent performance
measures
 Functional organization
 Excessive controls
 No back-up / cross
training
 Unbalanced workload
 No decision rules
 No visual control
 Supplier quality
 Lack of workplace
organization
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7 Service Wastes
 Delay – customers waiting for service.
 Duplication – having to re-enter data, repeat details
etc.
 Unnecessary movement - poor ergonomics in the
service encounter.
 Unclear communication – having to seek clarification,
confusion over use of product/service.
 Incorrect inventory – out of stock.
 Opportunity lost – to retain or win customers.
 Errors – in the transaction, lost/damaged goods
Source – John Bicheno, Lean Toolbox 2003
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5 S’s
 The most widely adopted lean manufacturing technique
 A management philosophy focused on:
 Reducing Waste
 Optimizing Productivity
 Improving Quality
 Establishing the operational stability
 Sustaining continuous improvement
 Ensuring adherence to standards
 Embeds the values of organization, neatness, cleaning,
standardization and discipline
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5 S’s : Pillars
 Se-iri: Sort, Structurize, Cleanup
 Se-iton: Straighten, Simplify, Set in order
 Se-iso: Sanitize, Scrub, Shine
 Se-iketsu: Standardized, Systemized, Conform
 Shi-tsuke: Sustain, Self Discipline, Custom
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 Sort (Seiri)
“To sort and systematically discard items that are not
needed at the workplace”
5 S’s : Pillars
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Sort (Seiri)
Elimination of unnecessary items (or waste)
Reduction of wastes of resources, materials, shelves,
storage
Reduced WIP
5 S’s : Guidelines for Practicing
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Straighten (Seiton)
“To arrange necessary items in a neat and systematic
manner so that they can be easily retrieved for use and
return after use”
A place for every thing and everything in its place
5 S’s : Pillars
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Straighten (Seiton)
No more searching
Place for everything
Reduced setting up time and searching time
Prevent misplacing, wasting energy, materials and
resources
Improved space utilization
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Sanitise (Seiso)
“To clean and inspect the workplace thoroughly so that
there is no dirt on the floor, machines and
equipments”
5 S’s : Pillars
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Sanitise (Seiso)
Clean the work area
Clean, shiny (new-like) work environment
Higher quality work and products
Safer and comfortable work environment
Positive impression on customers
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Standardize (Seiketsu)
“To maintain a high standard of workplace
organization by keeping everything clean and orderly
at all times”
5 S’s : Pillars
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Standardize (Seiketsu)
Best practices
Job responsibilities
Better workplace standards
Better visual control systems
Information sharing/Improvement in workflow
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Sustain (Shitsuke)
“To train people to practice the 5S system continuously so
that it becomes habitual and ingrained in the culture of
the organization.”
5 S’s : Pillars
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Sustain (Shitsuke)
Habit of 5S
Reduction of wastes of resources, materials, shelves,
storage
Team spirit and discipline are developed
Enhanced operation and workplace rules
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 1st S (Sort)
 Stock decreasing
 Better usage of working area
 Prevention of loosing tools
 Cost reduction
 2nd S (Straighten)
 Increased efficiency and effectiveness
 Process Improvement
 Improved workplace safety
 Right item, Right Place, Right Quantity and Right Method
(4Rs) are in place
5 S’s : Advantages
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 3rd S (Shine)
 Increased machine’s efficiency
 Clean and easy to maintain workplace
 Quick information about possible sources of damages
 Improvement of the work environment/product quality
 4th S (Standardize)
 Standard procedures (SOPs)
 Visual control system
 Improvement in operations, workflow and information
flow
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 5th S (Sustain)
 Increased awareness and morale of employees
 Team spirit and discipline are developed
 “Continuous Improvement” mentality is developed
 Adaptation of best practices
 Strong foundation of waste elimination and lean
implementation
 Improved company image
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Remember…!
The Lean Tools & Techniques will not give you
money.
It will stop wasting money!
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THANK YOU..
Syed Zeeshan
Arshad
Mobile +923322178212
E-mail syedzeeshan.imengg@gmail.com

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