LEAN MANAGEMENT-1.pptxLEAN MANAGEMENT-1.

Leaning

1. PRESENTED BY MUTHU SELVAM.C 1 ST MBA.

2. Introduction to Lean Management: Lean management is a business methodology that's designed to increase quality and efficiency by eliminating wasted resources like time, money, and effort. It also is sometimes referred to as lean production or lean manufacturing. The idea is to produce only the best and most valuable services or products for customers and clients at the right price.

3. History of Lean Management: The concept of lean management originated in the Japanese manufacturing industry in the 1990s, beginning with the Toyota Production System (TPS). Because Toyota was initially a small automobile manufacturer that eventually became successful on a global scale, it's business, and operational process quickly caught on. Today, lean management is widely used by leading businesses around the world, including Intel, Nike and etc.

4. Identify the value: Creating value is fundamental for business and is why customers are willing to pay for products. If your product does not produce enough value, then customers will be less willing to buy the product. Value stream mapping: Value stream mapping involves figuring out the business workflow. You must identify the exact production system and who is involved. By identifying and clarifying every step in your business process, you can then begin to identify any steps that are not contributing any value to the end customer.

5. Create workflows: Once the value stream has been mapped, it can be turned into continuous workflows. A typical production process involves several different teams, materials and steps that occur in a rigid sequence; therefore, it is crucial these steps are all coordinated. If the flow stops moving, then it is inevitable that mass wastage will happen, whether this is materials or time. Create a ‘pull system’: A pull system involves creating output based on actual demand for a product, instead of relying on forecasts. For flow to operate smoothly, things should not be manufactured ahead of time because, if unused, this creates waste. Seek perfection with continuous improvements: The first four steps will help you create a Lean management system, but the final step allows you to improve and thrive continuously. Once you are at the final stage, you revisit any part of the business process that has opportunities for further improvement. Striving for continuous improvement results in continual efficiency increases, with productivity consistently improving in harmony with customer satisfaction

6. Transport: Long, unnecessary transport routes within a production hall can generate expenses. Inefficient material flows can also occur during storage, retrieval and transfer. Inventory: Excessive material and inventory levels tie up space and thus capital. This can mean manufacturing products as well as raw materials and supplies. Motion: Long walking distances, search times, and inefficiently set up work stations where employees have to awkwardly reach around or walk around machines fall under waste due to motion.

7. Waiting: Waiting times mean downtime in production. Machine downtime, long setup times, and the previously mentioned types of waste can lead to long, non-value-added waiting periods. Overproduction: Overproduction occurs mainly due to poor planning. However, quality deficiencies can also lead to surplus. In this case, more is produced "as a precaution". Overprocessing: In this case, one also speaks of "over engineering". Processes are artificially inflated or too complex and thus lead to unnecessary resource commitment.

8. Defects: Production errors lead to scrap production. This type of waste is the most obvious and, of course, to be avoided. But often it is not immediately obvious at first glance where the fault lies.