Advantages And Disadvantages Of Lean Manufacturing

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INTRODUCTION Companies aim to improve their efficiency, as manufacturing sector is becoming more competitive by each day. Increasing labor costs and operating costs, have forced companies to move or outsource their operations. Typically a majority of companies outsource to countries where wages are low and production costs are lower. One of the main methods to reduce cost and remain competitive is called “lean manufacturing.” Lean manufacturing basically tries to reduce any type of waste in an operation. One of the main drawbacks of the various lean tools is absence of visual description, i.e. the ability of the tool to convey the current state and also communicate the possible future actions. Value stream mapping is capable of doing this task. Value stream maps (VSM) are used to evaluate current manufacturing processes …show more content…

Then the process is mapped using the standard VSM symbols. A data box is created under each process step and all the process data collected as we walk on the shop floor are entered in the data boxes. An example of a process data box is given below • The points where inventory accumulates at the beginning and end of each process step is identified. • Communication, both electronic and manual, are identified between departments and processes. Information and material flow along with timing is captured. • Cycle time, which is the average time between completed products coming out of a process, is calculated. • Lead time, the time taken for a unit to go through all the steps of a process from start to finish, is computed. Processing time, which is sum of all cycle times, and lead time, which is sum of all processing time and queues times, are calculated. The maximum value added percentage is calculated as Max. Value add % = (processing time/lead time) x

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