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More profits with lean manufacturing
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More profits with lean manufacturing
Are you looking for: “Improved production, reduced waste, empowered workforce, reduced stock, more space, committed suppliers and – as never before – more profit!” This is not far-fetched hype. These are exactly the improvements that your organisation could reap through the deployment of lean manufacturing. This strategy seeks to produce a high level of throughput with a minimum of inventory in the manufacturing industry as well as the service industry.
The ultimate aim of this tool is to completely eliminate waste from the process. In a lean enterprise, the aim of eliminating waste is extended to all the other companies involved in the supply of a product to a customer. It is often argued that eliminating waste is the greatest potential source of improvement in corporate performance and customer service.
Lean manufacturing is a holistic approach that enables process improvement and improves business profitability. Many businesses carry an unnecessary burden of waste. For organisations working in today’s harsh economic environment, lean manufacturing could make the difference between success and complete failure.
Analyzing business processes under lean manufacturing aims at discovering flaws in the system and helps to identify non-value adding elements i.e. waste, such as activities, steps, physical resources like environment and equipment, soft resources, competency and experience. Activities can thus be categorized into 3 types: Those that are value adding; those that add no value but are necessary; those that add no value and are avoidable.
There are 7 forms of waste, which are any activity that does not add value but only time and cost:
1. Waste of overproduction</B>
This occurs because production is more than, sooner than or faster than needed. E.g. Generating more information than the customer or the process needs; creating reports no one reads.
<B>2. Waste of inventory</B>
This occurs when supply is in excess of one piece flow. Waste of inventory has symptoms like: extra space required; extra people required; extra handling required; extra interest charges are obtained.
<B>3. Waste or repair/rejects</B>
This occurs when a product or a service is being inspected or repaired so as to fulfill customer requirements. E.g. Work that contains errors, rework, mistakes or lacks something important (data entry error, pricing error, missing information, missed specifications, lost records, etc).
<B>4. Waste of motion</B>
This occurs when any movement (on the part of the operator) that does not add value to the product takes place. Simply moving hands, feet and body does not necessarily add value to the product. E.g.: Searching for files; extra clicks or key strokes; clearing away files on the desk; gathering information; looking through manuals and catalogues; handling paperwork
5. Waste of processing</B>
These are efforts that add no additional customer value to a piece of work. E.g.: creating reports; repeated manual entry of data; use of inappropriate software
<B>6. Waste of waiting</B>
Waste is characterized by workers being idle between operations. Idle time is created when material, information, people or equipment are not ready. Waiting for faxes, customer response, get approval for reports or get documents signed are for example considered as waste of waiting.
<B>7. Waste of transport</B>
Any movement of material that is not required for ‘Just-In-Time production’ is a waste of transportation.
These wastes are often accepted as typical and necessary costs in carrying out the everyday functions of the business; however, they should all be viewed as opportunities for improvement. In competitive environments where several companies are dealing in similar products, only the most efficient ones, those adopting lean manufacturing will succeed at the expense of their competitors. In non-competitive markets, the benefit of lean manufacturing will be represented by significant improvements to the bottom line. Lean manufacturing strategies can save millions and produce excellent results. Advantages are numerous; it all depends on commitment.
<B> Prya BAUMY-RUGHOO</B>
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