Lean Manufacturing Techniques for Increased Productivity and Efficiency

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Lean Manufacturing Techniques for Increased Productivity and Efficiency

December 19, 2024

Do you know that implementing lean manufacturing techniques can reduce your overall cycle time by 50%, with a 25% increase in customer order accuracy and a 30% reduction in inventory?

The benefits of lean manufacturing techniques extend far beyond the cycle time, order accuracy, and inventory reduction. From increased productivity and efficiency to improved quality and reduced operations cost, lean manufacturing techniques provide an overall solution to optimize your manufacturing operations.

However, the wide range of techniques can be overwhelming to choose and apply effectively. That’s why this article will cover several lean manufacturing techniques in detail along with practical implementation strategies.

What is Lean Thinking?

To effectively implement lean tools and techniques, it is important to understand lean thinking first. Lean thinking starts with the customer and value. Value is defined by the customer. In lean manufacturing, every attribute or step for which the customer pays has value, and everything else is considered waste. At its core, it’s about understanding what the customer values and optimizing the entire process by reducing waste to deliver that value efficiently.

Key Principles of Lean Manufacturing Techniques

Lean manufacturing tools and techniques are based on following key principles which are essential for effectively implementing lean thinking.

Define Value: Start by understanding what the customer truly values, meaning what features of the product the customer is willing to pay for.
Map the Value Stream: Identify all steps in your process and analyze them to eliminate those that don’t add value.
Create Flow: Ensure smooth flow of products through the value-creating steps.
Establish Pull: Produce only what the customer wants and when they want it.
Seek Perfection: Continuously improve processes to enhance efficiency and reduce waste.

Benefits of Lean Manufacturing Tools and Techniques

Following are the benefits associated with lean manufacturing tools and techniques:

Waste Elimination: Lean techniques focus on identifying and removing the seven main types of waste (over production, waiting, transport, inventory, over-processing, motion, and defects) from the process. Eliminating these wastes from the process reduces overall operation costs and optimizes the process.

Flow Optimization: Improving the movement of products and information throughout the value stream is essential for a smooth flow of the process. If the product or information does not flow smoothly, it disrupts production and leads to inefficiency.

Knowledge Management: Lean tools tend to effectively capture and utilize organizational knowledge. This sometimes requires reorganization of all resources around the value stream for efficient utilization.

Continuous Improvement: Due to lean tools, a culture of continuous improvement is developed and prevailed. In lean manufacturing, the improvement cycle is never-ending. In this way, the process is continuously optimized.

The Need for Lean Manufacturing Tools

According to the Lean Enterprise Research Centre at Cardiff University, in most production operations;

5% of activities add value to the process
35% are necessary non-value activities
60% of activities add no value at all

These statistics highlight that there is a huge potential to eliminate waste in manufacturing.

Lean Tools and Techniques

Now, that you understand the key principles and benefits of lean manufacturing, let’s explore the lean tools and techniques that help to implement these principles.

1. Value Stream Mapping (VSM)

Definition and Purpose:

Value Stream Mapping (VSM) is a mapping tool that helps visualize the production process, representing material and information flow. In VSM, all activities are defined as whether they are value-added or non-value-added to transform a product from raw material to finished goods.

The primary purpose of VSM is to:

Form the basis for lean production implementation.
Identify value-adding steps in the value stream and eliminate non-value-adding activities or waste (Muda).
Links ‘Products Planning’ and ‘Demand Forecast’ to ‘Production Scheduling’ and to ‘Flow Shop Control’.

Key Concepts and Principles:

Current State Map: A visual representation of how the process is operating currently.

Source

Future State Map: A depiction of how the process should work after improvements are made.

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Takt Time: The rate at which a product needs to be completed to meet customer demand.

Continuous Flow: The ideal state where products move through the process without stopping.

Implementation Process:

The structured approach to implement VSM is defined by Rother and Shook in the book, “Learning to See: Value Stream Mapping to Create Value and Eliminate Muda” which is as follows:

Choose the product family that shares similar processing steps.
Construct a current state map for the selected product stream, using information from the actual production data.

Map the future state of the process. There are eight questions that must be addressed to construct the future state. The first five questions are basic, the next two are regarding technical implementation details, and the last one is related to improvement opportunities. These eight questions are:

Future-state questions
Basic	What is the takt time?
	Will production produce to a finished goods supermarket or directly to shipping?
	Where can continuous flow processing be utilized?
	Is there a need for a supermarket pull system within the value stream?
	What single point in the production chain will be used to schedule production?

Heijunka	How will the production mix be levelled at the pacemaker process?
Heijunka	What increment of work will be consistently released from the pacemaker process?

Kaizen	What process improvements will be necessary?

Finally, create an implementation plan to implement the future state map.

Waste Reduction and Process Improvement:

Implementing VSM reduces waste and improves processes by:

Differentiating value-added and non-value-added activities allows for the elimination of non-value-added activities.
Visually representing transportation time and inventory levels at different stages of production, making it easier to identify opportunities for reduction.
By visualizing the process, you can improve the process by modifying the existing system for material handling, inventory control, purchasing, and scheduling, to reduce the total throughput times of orders.

Case Studies of VSM Implementation:

Various case studies demonstrate the effectiveness of VSM to improve the overall process. Some of the notable examples are:

A study conducted in the steel industry concluded that after the implementation of VSM:

Production costs could be reduced by 8% of turnover
Capital equivalent to 3.5% of turnover could be released just by removing excess inventory

Another case study of a small manufacturing firm shows that the Implementation of VSM techniques in a small manufacturing firm resulted in significant improvements:

18% reduction in cycle time
5% reduction in changeover time
4% reduction in lead time
41% reduction in value-added time

Moreover, a case study of VSM implementation in an Indian manufacturing industry showed remarkable results:

58% reduction in lead time
17% reduction in processing time
1% reduction in Work in Progress (WIP)
08% reduction in manpower requirement

These examples highlight that VSM can lead to significant reductions in lead time, inventory levels, and production costs while improving overall efficiency and productivity.

2. Kaizen

Definition and Purpose:

Kaizen is a Japanese word that translates to “Continuous Improvement”. It is not only limited to official improvement programs but includes all the efforts and initiatives to improve operations or processes.

The primary purposes of Kaizen are:

To involve every employee, regardless of their role, in the improvement process.
To improve not only the product or process but also enhance the overall work environment.
To incrementally improve productivity, quality, and employee satisfaction over time.

Key Concepts and Principles:

Continuous Improvement: Kaizen is not a one-time practice, but an ongoing, never-ending journey towards quality and efficiency.

Incremental Changes: The focus of Kaizen is typically on small-incremental changes in contrast with the technological innovations or major projects.

Participative Approach: Kaizen involves the entire workforce, utilizing their intelligence and creativity. The participation develops a sense of ownership and responsibility, encouraging them to improve their work areas.

Plan-Do-Check-Act (PDCA): A systematic approach to solve problems and improve the process.

Implementation Process:

The implementation steps of Kaizen involve:

Regularly analyze your process to identify areas for improvement.
You can use Root Cause Analysis (RCA) or process mapping to analyze the process.
Pinpoint specific areas or issues that need improvement based on your analysis.
Once you find the area for improvement, brainstorm the possible solution to mitigate the problem.
Involve another employee when looking for a solution to gather diverse perspectives.
Choose the most promising solution from the brainstormed ideas.
Document the selected improvement solution for efficient implementation.
After the implementation, monitor the improvement made through this Kaizen.
The improvement can be in the form of reduced cost, improved quality, increased productivity, increased efficiency, reduced man-hours, and many more.
If successful, standardize the new process by making it a part of the SOP.
Repeat the cycle of improvement.

Waste Reduction and Process Improvement:

Kaizen contributes to waste reduction and process improvement by:

Facilitating quick implementation of improvement ideas.
Developing a culture where waste reduction becomes everyone’s responsibility.
Fostering a culture of continuous improvement by encouraging employees to identify and eliminate inefficiencies continuously.

Case Studies of Kaizen Implementation:

Numerous examples show the tangible results obtained by implementing Kaizen projects. Some of the case studies are:

A study in the Journal of Engineering, Design, and Technology stated several measured benefits of Kaizen:

Reduction in clamping and de-clamping time for each workpiece by 51.72%.

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Increase in production per hour by 47%.
Reduction in manpower requirement by 50%.
Reduction in lead time by 69.47%.

2. Another study in the International Journal of Lean Enterprise depicts Kaizen implementation in small-scale industry. This study showcased Kaizen implementation in a small-scale industry, addressing issues of disorganization, poor layout, and quality problems. Following improvements were made through Kaizen:

Heating Mantle Equipment:

Problem: Wire melting causing short circuits

Solution: Replaced Teflon wire with insulated copper wire

Benefits: Less equipment failure, increased safety, no short circuiting

Machine Shop Safety:

Problem: Chip spreading causing injuries

Solution: Provided sheet covers on machines

Benefits: Increased worker safety, improved cleanliness

Layout Improvement:

Problem: Excessive worker movement

Solution: Rearranged layout to reduce distances

Results:

Total distance moved reduced from 142 m to 50 m

Total cycle time reduced from 568 sec to 216 sec

These examples emphasize the need and significance of Kaizen to improve and optimize your process continuously.

3. 5S

Definition and Purpose:

5S is a workplace organization technique that uses five lists of words: Sort, Set-in-Order, Shine, Standardize, and Sustain. Implementing 5S can uncover hidden problems that may otherwise remain unnoticed.

The main purposes of 5S are:

To create a clean, organized workplace.
To reduce waste and optimize productivity.
To improve safety by lowering workplace hazards.

Key Concepts and Principles:

The 5S can be defined as:

1S – Sorting:
In the sort step, you have to identify and eliminate unnecessary items from your workplace. These items can be in the form of tools, equipment or unnecessary information.

2S – Set-in-Order:
Set in order means to designate specific location for necessary items. It also includes arranging necessary items.

3S – Shine:
Shine means to clean and inspect the work area, equipment, and tools regularly. It is a necessary step to identify and to eliminate sources of disorder and to maintain clean workplaces.

4S – Standardize:
Establish standards and guidelines to maintain the first three S’s. Standards should not be only implemented in the operational processes but also in the administrative processes.

5S – Sustain:
Develop SOPs (Standard Operating Procedures) to sustain these practices to follow the established process. Remember that 5S is not a one-time practice, it requires constant efforts and attention to sustain 5S regularly.

Implementation Process:

The implementation of 5S is based on the following steps. However, these steps should be repeated on a regular basis for the effective implementation of 5S.

To implement the first S (Sort):

Answer control questions to identify unnecessary items and clutter.
Examine all items, group them, and remove unnecessary ones.
If you are uncertain about any item, create a red tag area and place these items there. If anyone needs an item, they can retrieve it from the red tag area. If an item remains there for an extended period, remove it.

To implement the second S (Set in Order):

Segregate items and mark storage locations.
Organize items based on frequency of use:
1st degree sphere: Items in close access
2nd degree sphere: Accessible items
3rd degree sphere: Items within arm’s reach
Place infrequently used items in the workplace but outside the immediate use area.
Mark storage places for quick identification using colored lines, signs, or tool boards.

To implement the third S (Shine):

Start with a thorough workplace renovation (“the first cleaning”).
Use this initial cleaning to verify the implementation of the first two S’s (Sort and Set in Order).
Establish daily cleaning routines to maintain the cleanliness.

To implement the fourth S (Standardize):

Develop clear, communicative, and easily understandable standards in the form of procedures and instructions.
Involve all workplace participants, especially direct workers, in the preparation and improvement of standards.

To implement the fifth S (Sustain):

Repeat the above practices regularly to maintain the 5S system.
Conduct internal and external 5S audits to assess the effectiveness of 5S implementation.
Assign scores based on these audits to improve employee morale and motivation.

Waste Reduction and Process Improvement:

The 5S technique reduces waste and improves process through the:

Reducing the time wasted in search of tools and other necessary items.
Enhancing safety by clearing the workplace and obstacles to reduce incidents and downtime.
Reducing defects caused by a disorganized work environment.

Case Studies of 5S Implementation:

The implementation of 5S has led to proven significant improvements in various industries. Let’s explore some real examples of effective 5S implementation:

A case study was conducted in the machine industry to implement and evaluate the 5S methodology. The company used a “Check List” once per term to inspect the implementation of 5S rules. The study concluded that 5S implementation reduces cost through process improvements and better use of working areas. Moreover, the machine efficiency was also increased with improved safety.
Another case study of 5S implementation is from the automotive industry in Romania. It was observed that implementing and maintaining 5S standards led to improved performance. The adoption of 5S also resulted in increased organizational productivity. Moreover, machine efficiency was also increased, and safety was improved.

These studies demonstrate that proper implementation of 5S can lead to significant improvements in efficiency, productivity, and safety.

4. Pull Systems

Definition and Purpose:

In a pull system, items are only produced and moved to the next stage when requested by the subsequent process or customer, unlike the traditional push system where items are produced based on forecasts and moved to the next stage regardless of immediate demand.

The main purposes of the pull system are:

To minimize in-process inventory.
To reduce production and inventory costs by eliminating waste to ensure that products meet quality specifications at a minimum cost.

Key Concepts and Principles:

The pull production is based on the principle that: “Minimum numbers of parts should be stocked that are only required to satisfy the final assembly schedule requirements for a given production period.”

Other key concepts that it follows are:

Just-In-Time (JIT): A strategy in which products are produced or delivered only when they are needed.
Kanban: A visual signaling system used to show the movement of material from raw material to final product.
Takt time: The rate at which the product must be produced to meet customer demand.
Heijunka: The leveling of production by volume and variety, helping to ensure a steady and predictable flow of work.
Pull Signal: A mechanism (often a kanban card) that indicates when more parts or materials are needed at a specific point in the production process.

Implementation Process:

The following are the major steps to implement the pull system:

Understand customer value and their idea of quality products. Analyze the features and attributes of the product for which they are willing to pay. Eliminate or reduce any activities that do not add value to the process.
Eliminate bottlenecks, delays, or inefficiencies that can cause interruptions in production.
Optimize the flow of material, information, and workflow throughout the entire production stage.
Implement pull signals that trigger the production or delivery of the product based on customer demand.
Establish pull systems that align the production of the product with the pull signals.
Monitor and evaluate the performance and effectiveness of the pull system.

However, in real manufacturing environments, there is uncertainty in processing time, different workloads among stages, and potential machine breakdowns. The ideal pull system may not be achievable in these scenarios, so it is recommended to maintain a safety stock at each stage of the pull system to reduce the effects of these variations and machine breakdowns.

Waste Reduction and Process Improvement:

Implementing a pull system contributes to waste reduction and process improvement through:

Eliminating overproduction waste by only manufacturing products when it is needed.
Reducing excess inventory and holding costs associated with stocking extra inventory.
Decreasing lead time by improving responsiveness to customer demand.

Case Studies of Pull System Implementation:

Implementing a pull system can effectively reduce inventory and increase efficiency. Various research papers show examples of effective pull system implementation. Some of them are:

In one of the studies, a pull system was implemented in an SME company producing polymeric components for the automotive industry. The benefits of the pull system were demonstrated through future VSM, in the form of a significant reduction in lead time and Work-in-Process (WIP) inventory.
Another case study is of implementing a pull system in a non-repetitive manufacturing setting. The company attempted to implement a modified version of a demand-pull system, adapting it for their job shop environment. The results were shown in the form of simplification to the production scheduling task. Moreover, operators could use simple decision logic to control material flow, making the system easier to implement and maintain.

These examples show that pull systems can be implemented according to specific work environments to maximize benefits.

5. Cellular Manufacturing

Definition and Purpose:

Cellular manufacturing involves grouping equipment in such a way that the flow of materials and components throughout the production system is smooth with no delays. In the traditional approach, the materials are processed in batches on one machine and then taken to another one but cellular manufacturing aims to move products through the manufacturing process one piece at a time.

The main purposes of cellular manufacturing are:

To reduce work-in-process (WIP) inventory and setup time.
To improve response time to customer orders.
To enhance flexibility in production.

Key Concepts and Principles:

The main concepts in cellular manufacturing are:

Product Families: Group of products that use similar processing equipment or have comparable features or attributes.

Group Technology: A philosophy in which similar parts are grouped together to benefit from their similarities in design and production.

Visual Management: Visual cues used in cellular manufacturing to display production status, problems in the line, etc.

Cellular Layout: Arranging machines and workstations in a sequence that allows for a smooth flow of materials with minimal transport, work-in-process, or delays.

Implementation Process:

To implement cellular manufacturing in your industry, follow these steps:

Analyze the current production flow and identify areas for improvement.
Design different layout options (e.g., linear, L-shape, U-shape, S-shape) using simulation software like ARENA.
Evaluate each layout design based on factors such as:
Material traveling cost, production rate (parts/hour), distance between machines, number of operators required, total cost per unit produced
Select the optimal layout design based on the evaluation results.
Arrange machines according to the chosen layout, grouping them by product families or process similarities.
Implement the new layout, starting with a pilot area if possible.
Train employees on the new cellular manufacturing system and its benefits.
Monitor the system’s performance and make adjustments as needed.
Gradually expand the cellular manufacturing system to other areas of production.

Waste Reduction and Process Improvement:

Cellular manufacturing led to process improvement and waste reduction through:

Minimizing transportation and motion waste through the smooth flow of materials.
Improving quality by working on smaller batches to detect and correct quality issues quickly.
Optimizing space utilization by efficiently using floor spaces.

Case Studies of Cellular Manufacturing Implementation:

Cellular manufacturing has proven to be an effective lean manufacturing technique. Various case studies demonstrate the benefits industries gain after implementing cellular manufacturing. Some of the examples are:

An automobile components company conducted a study regarding implementing cellular manufacturing in their factory. They changed the original layout to cellular, which reduced the traveling cost from 0.3 Rs. to 0.02 Rs., it also increased the overall production from 107 parts/hour to 155 parts/hour. Cellular layouts reduce the distance between machines from 900-1000 mm to 500-650 mm, and the total cost per unit decreased from 1.34 Rs to 1.26 Rs in the optimized linear layout.
Another study reported the findings of a survey of 32 U.S. firms involved with cellular manufacturing. The survey concluded that after the implementation of cellular manufacturing, the companies observed on average reductions in throughput time by 45.6%, in WIP inventory by 41.4%, in materials handling by 39.3%, in setup time by 32.0%, and improvement in quality by 29.6%.

These examples illustrate the crucial role of cellular manufacturing in optimizing and improving the process.

6. Total Productive Maintenance (TPM)

Definition and Purpose:

TPM is an innovative approach to maintenance that strives to optimize equipment effectiveness through zero breakdown, defects, small stops, and accidents. The goal is to promote proactive and preventive maintenance rather than reactive maintenance.

The primary purposes of TPM are:

To improve Overall Equipment Effectiveness (OEE).
To involve all employees in equipment maintenance activity.
To eliminate breakdown and unplanned downtime.

Key Concepts and Principles:

Following are the eight pillars of TPM that laid the foundation of TPM implementation:

Autonomous Maintenance: Operators perform routine maintenance tasks on their own equipment.
Planned Maintenance: Scheduling maintenance activities to prevent breakdowns and minimize downtime.
Quality Maintenance: Focusing on eliminating quality defects by addressing equipment-related issues.
Focused Improvement: Continuously working on small, targeted improvements to increase efficiency.
Early Equipment Management: Considering maintenance needs during equipment design and installation.
Training and Education: Continuously developing the skills and knowledge of all employees involved in TPM.
Safety, Health, and Environment: Ensuring a safe and healthy work environment while minimizing environmental impact.
Office TPM: Extending TPM principles to non-production areas to improve overall organizational efficiency.

Implementation Process:

You can follow these simple steps to implement TPM at your workplace:

Analyze the current process to find out the area in which you can implement TPM. It is recommended to start with a pilot area for TPM implementation that gradually shifts to the whole process.
Measure current baseline metrics like OEE, Mean Time Between Failures (MTBF), Mean Time to Repair (MTTR), and downtime to compare after TPM implementation.
Involve other employees in the TPM implementation team from top management to operators.
Implement Key TPM Elements:
a. Autonomous Maintenance: Develop a master plan to train operators to perform daily maintenance activities and introduce daily cleaning checklists.
b. Individual Improvement: Conduct Kaizen activities and use analysis tools like why-why and PM analysis.
c. Planned Maintenance: Move from time-based to condition-based maintenance.
d. Education and Training: Conduct skill improvement programs for operators and technicians.
e. Early Equipment Management: Create a master plan for problem prevention in new equipment.
f. Quality Maintenance: Set benchmarks and apply Deming’s PDCA technique.
g. Office TPM: Form teams to address administrative inefficiencies.
h. Environment, Health, and Safety (EHS): Develop a comprehensive EHS master plan.
Track key metrics and compare them with baseline metrics to evaluate the effectiveness of TPM implementation.
Regularly review and adjust the TPM program based on results and changing needs

Waste Reduction and Process Improvement:

TPM contributes to waste reduction and process improvement through:

Minimizing equipment downtime through regular maintenance activities and involving operators to reduce unexpected failures.
Reducing product defects because of good equipment condition.
Reducing material waste due to better equipment performance.

Case Studies of TPM Implementation:

Various case studies demonstrate the practical application and benefits of TPM. Some of them are as follows:

A case study demonstrates the effective implementation of TPM in an automobile manufacturing organization in India. Because of TPM, the availability of machines was increased from 80% to 85.1%, the efficiency was increased from 76.9% to 83.1%, and the ability of machines to produce quality products was increased from 95% to 99%.
In another case study, the TPM was implemented in the machine shop. It was concluded that TPM implementation reduced the breakdown of the machine from 4 minutes to 0. Also, the average number of non-conforming products in one shift decreased from 5 to 3.

These case studies demonstrate that TPM implementation can lead to significant improvements in equipment reliability, product quality, and overall operational efficiency across various industries.

Conclusion

Lean manufacturing techniques, from Value Stream Mapping to TPM, provide various strategies to optimize your production processes. As demonstrated in the case studies, these tools significantly reduce waste, enhance efficiency, and improve quality across industries. Key improvements include reduced cycle times, increased equipment effectiveness, enhanced product quality, and decreased inventory costs. However, lean manufacturing is more than just tools; it’s a philosophy of continuous improvement requiring a cultural shift.
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