Lean System and Innovation – SEBI Grade A Exam Tips 2020

SEBI Grade A has released notice to extend the online application date till 31st October 2020. This is the fourth time that SEBI has extended the last date to apply for Grade A Officer Recruitment 2020. Before this, the last date to for Fee Payment, Apply Date was 31st July. The revised exam date will also be notified to the candidates in due course of time. In this blog we will discuss one of the very important topics of SEBI Grade A Exam which is Lean System & Innovation.

Download the Mock Test Preparation App for Free

What is Lean System & Innovation?

A Lean system describes a business or business unit that holistically applies Lean principles to the way it plans, prioritizes, manages, and measures work.The goal for any Lean system is to maximize customer value and greatly improve productivity. Lean systems use a Lean approach to identify and eliminate waste.
These are two of the fundamental concepts of Lean:
❖ Eliminate anything that does not add value to the customer, and
❖ Work systematically and continuously to create more value for the customer.

What are the 5 Basic Lean Principles?

The 5 Core Principles: Value, the Value stream, Flow, Pull & Perfection, are now used as the basis for lean implementation.
1. Identify value from the customer’s perspective.
Value is created by the producer, but it is defined by the customer. Companies need to understand the value the customer places on their products and services, which, in turn, can help them determine how much money the customer is willing to pay.The company must strive to eliminate waste and cost from its business processes so that the customer’s optimal price can be achieved — at the highest profit to the company.

2. Map the value stream.
This principle involves recording and analysing the flow of information or materials required to produce a specific product or service with the intent of identifying waste and methods of improvement. Value stream mapping encompasses the product’s entire lifecycle, from raw materials through to disposal.Companies must examine each stage of the cycle for waste. Anything that does not add value must be eliminated. Lean thinking recommends supply chain alignment as part of this effort.

3. Create flow.

Eliminate functional barriers and identify ways to improve lead time. This aids in ensuring the processes are smooth from the time an order is received through to delivery. Flow is critical to the elimination of waste. Lean manufacturing relies on preventing interruptions in the production process and enabling a harmonized and integrated set of processes in which activities move in a constant stream.

4. Establish a pull system.
This means you only start new work when there is demand for it. Lean manufacturing uses a pull system instead of a push system. Push systems are used in manufacturing resource planning (MRP) systems. With a push system, inventory needs are determined in advance, and the product is manufactured to meet that forecast. However, forecasts are typically inaccurate, which can result in swings between too much inventory and not enough, as well as subsequent disrupted schedules and poor customer service. In contrast to MRP, lean manufacturing is based on a pull system in which nothing is bought or made until there is demand. Pull relies on flexibility and communication.

5. Pursue perfection with continual process improvement, or Kaizen.
Lean manufacturing rests on the concept of continually striving for perfection, which entails targeting the root causes of quality issues and ferreting out and eliminating waste across the
value stream.

Download the Mock Test Preparation App for Free

The Eight Wastes of Lean Production

❖ Unnecessary transportation
❖ Excess inventory
❖ Unnecessary motion of people, equipment, or machinery
❖ Waiting, whether it is people waiting or idle equipment
❖ Over-production of a product
❖ Over-processing or putting more time into a product than a customer needs, such as designs that require high-tech machinery for unnecessary features and
❖ Defects, which require effort and cost for corrections.

Benefits of Lean System/Management

The growing popularity of the Lean principles comes from the fact that they actually focus on improving every aspect of a work process and involve all levels of a company’s hierarchy. There are a few major advantages that managers can benefit from

❖ Focus – By applying Lean, you will be able to reduce waste activities. Therefore, your workforce will be focused on activities that bring value.
❖ Improving productivity & efficiency – When employees are focused on delivering value, they will be more productive and efficient, because they would not be distracted by unclear tasks.
❖ Smarter process (pull system) – By establishing a pull system, you will able to deliver work only if there is actual demand. Which leads to the next one.
❖ Better use of resources – When your production is based on actual demand, you will be able to use only as many resources as needed.

Techniques of Lean System

❖ Just-in-Time (JIT)
❖ Kaizan Costing
❖ 5S
❖ Total Productive Management (TPM)
❖ Cellular Manufacturing/ One-Piece Flow Production Systems
❖ Six Sigma (SS)

Characteristics of Lean System

❖ Zero Waiting Time
❖ Zero Inventory
❖ Pull Processing
❖ Continuous flow of Production
❖ Continuous finding ways of reducing process time

Why Practice from Entri?

• Always provides you up to date materials that are created by Entri’s Top Experts.
• Mock tests available in bilingual and other regional languages
• Download Entri to access the unlimited mock test.

Navigating through Entri

• Open your Entri App go to the Bank Tab and check the mock tests.
• You can check courses and Mock test for other examinations as well
• Subscribe to our Mock Test and clear your examination with flying colors.

Ace your preparation. That is where Entri comes in. It helps you to prepare effectively for your Exam.

Download the Mock Test Preparation App for Free