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What’s most difficult in production often isn’t making the product but organizing all the parts and materials that go into it, notes LEI CEO John Shook in the presentation “Learning To See:

What’s most difficult in production often isn’t making the product but organizing all the parts and materials that go into it, notes LEI CEO John Shook in the presentation “Learning To See:
Making Value Flow From End to End.” He covers how lean management developed to solve this problem from Henry’s Ford Highlight Park, MI, assembly line to the development of the Toyota Production System. He covers key TPS elements and methods such as value-stream mapping, built-in quality, one piece flow, waste elimination, total system efficiency, and developing people as problem solvers.

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  • This is Henry Ford in 1913. He created flow for a product that was complex in number of processes but simple in variety. Flow is not so difficult when you only make one type of product. Enablers: Huge market need, Observation and reverse engineering of Chicago meat disassembly Interchangeable parts
  • This is Alfred Sloan product variety – a car for every wallet – imposed on Ford’s flow production. Result: mass production, lack of flow, must waste.
  • Not all cars all the same. This is an example from a Toyota plant in the 1980s. One month production volume about 150,000 units 20,000 specification sets 10,000 unique examples (accounting for 6% of volume 1280 specification sets occur more than 50 times (doesn’t show, but the pareto 80-20 rule applies, so you would see a Mathew Stewart whale, a classic glenday sieve example)
  • Toyota solved the problem with experiments starting after 1950, producing high-variety with low volume, by switching from push to pull.
  • This slide shows the basic rationale of the principle of quality at the source, comparing the cost and ability to find root cause if identifying a defect in-process, next process, final inspection or at the customer. Toyota turned the Ford approach to quality versus production on its head, swapping the roles of production versus quality inspection.
  • The basic, powerful logic of one-piece flow.
  • An old Toyota cartoon, pre-dating NUMMI. Illustrating the responsibility of leaders to develop their people. Two responsibilities: accomplish the mission and develop people.
  • Ohno’s emphasis on shortening the lead time. Shorten the time line from getting an order and converting it into cash. Shorten any lead time. To shorten lead times focuses efforts on eliminating waste and barriers to flow.
  • Conventional thinking was to focus efforts on individual processes. Optimizing individual processes can be technically difficult and costly. To shorten lead time, focus on the space between processes. Three value streams: Raw Material to Delivery Order to Cash Concept to Launch Lifecycle maintenance
  • Eliminate overproduction and you will shorten lead time, improve customer response, reduce cost.
  • Another old Toyota cartoon. It doesn’t‘ help for the one rower to try to row harder or faster. In fact, it hurts.
  • A University of Michigan Japan Technology Management Program slide. Lean or TPS is a system – you can’t just pick and choose the tools you like. To implement it as a system, focus on creating flow. Learn the think through doing.
  • The famous, influential, somewhat controversial five principles of Womack & Jones from Lean Thinking…
  • Most mapping tools either plot material or information flow but not both. A value stream map does both and also includes time. It is thus a system design tool, the only user-friendly system design tool we know. VSM is called M&I Flow at Toyota, where it was developed and used by specialists to plan model production system improvements.
  • A complete VS CS map. Customer – process flow – process characteristics/data – inventory locations and amounts – information flow – time (value-creating and non-value creating) – overall Production Lead Time versus Value Added Time. It is a snapshot, verified through direct observation at the gemba.
  • Important: the process kaizen question comes last. It’s the last question to ask in analysis but defines the first things to do. This set of questions is just slightly different from the book.
  • The aim of the system must be clear to everyone in the system. The aim must include plans for the future. The aim is a value judgment.”
  • The aim of the system must be clear to everyone in the system. The aim must include plans for the future. The aim is a value judgment.”

Learning To See Introduction Learning To See Introduction Presentation Transcript

  • Learning To See:Making Value Flow …From End to EndJohn ShookApril 2012
  • What is “LEAN”?MIT International Motor Vehicle Program – Toyota Production System as “LEANProduction”  Flow production from Ford  PDSA from Deming  Toyota’s JIT system dynamics and supply chain design  Toyota’s engagement of people to build in quality and solve problems for continuous kaizen  Management System o A highly developed socio-technical system • With focus on system and people development
  • Lean Thinking, Lean Practice, Lean Value StreamsA simple definition:Develop people, process, and systems to meet customer need while consuming the fewest possible resources.
  • Automobiles: A Century of Value Stream Challenges• Reliable, affordable personal mobility • Ford Model T and Highland Park• Transportation fashion • GM: a car for every wallet• Transportation fashion and affordability • Toyota flow with variety• Globalization • Diffusion of TPS and TMS• Environmental sustainability • The next frontier – Toyota with a slight lead…
  • The Problem of Production• What’s most difficult often isn’t making the product.• It’s organizing all the parts and materials that go into it.
  • The Problem of ProductionIn the case of cars:• 20-30,000 parts must come together at exactly the right time once per minute.• Almost all parts are engineered specifically for each model of car.• Most cars are unique.
  • End-to-End FlowThe Ford Model T Value Stream
  • A Value Stream as One Giant Conveyor
  • Ford Production at the River RougeGiant Conveyors for “Ore to Assembly”
  • 15 million sq. ft.100,000 workers100 miles of railroad track15 miles of roads120 miles of conveyors.6000 suppliers
  • The Rouge 1932 – Choked by Complexity
  • MASS PRODUCTION “B ” Body Paint AssemblyStamping B B B B B B B B B B B Sub-Assy B = Storage Supplier Supplier Supplier = Push Suppliers
  • MASS PRODUCTION with Diverse Customers C? A! Body Paint AssemblyStamping C C A A B B B B B B B Sub-Assy B = Storage Supplier Supplier Supplier = Push Suppliers
  • The Problem of Production - Cars 6.2% 9,544 SPECIFICATION SETS1,280 SPECIFICATION SETS 76,745 VEHICLES (50%) 51 - 50-31 30-11 10-4 2-3 1 VEHICLE / 1 SPECIFICATION ONE TYPICAL MONTH’S TOTAL SPECIFICATION SETS: 19,349
  • LEAN PRODUCTION Customer Pr. Control Requirements LEVELING “B? ” A Stamping Body Paint Assembly C B A B B C A B B C B A Sub-Assy C (sequenced) Suppliers =Pull= “Supermarkets”
  • Built-In QualityHigh Cost Ability to findLow root cause In-Process Next Process Final Inspection Customer Location of Defect Detection
  • To produce an order of ten products that is processedthrough three steps, batch & queue versus one piece flow Process A Process B Process C Lead Time: 30 ++ minutes for total orderCONTINUOUS FLOW “make one, move one” Lead Time: 12 minutes for total order
  • People DevelopmentCapability development in solving problems and making improvements Problem-solving Problem-solving Problem-solving
  • Short Lead Time – Get each process to produce only what the next process needs when it needs it. – Orchestrate (control, manage, regulate) operations to get ever closer to this ideal, ever shortening the lead time.ORDER CASH “All we’re trying to do is shorten the time line…” Taiichi Ohno
  • Value Stream Improvement and Process-step Improvement VALUE STREAM PROCESS PROCESS PROCESS Stamping Welding Assembly CellRaw FinishedMaterial ProductThe Three Value Streams: Order to Delivery Concept to Launch Lifecycle Maintenance
  • WASTE 21
  • Total System Efficiency 22
  • Lean Transformation Some Lessons Learned Techniques System Thinking•Selecting the tools we like is not enough•The tools comprise a system•A way of thinking underlies the tools and the system cartoon copyright © U of M Learn the thinking through doing
  • Lean ThinkingWomack and Jones:• Specify value from the standpoint of the customer.• Identify the value stream for each product/family – from concept to launch & order to delivery – and remove the wasted steps (the muda).• Make value flow.• At the pull of the customer.• Strive continually for perfection.
  • What is Value Stream Mapping? – A tool to display flow of material and information of a business process through all the steps (value creating and not) as it moves from beginning to end. – A process to align a team around a target condition, a Future State, for that value stream and plan to achieve it.
  • Current State Map 26 john shook
  • Future State Questions VALUE STREAM VISION •What is the Takt Time? (How do you understand customer demand?) • Where can you flow? • Where should you pull? • At what single point in the production chain do you trigger production? • How much work do you trigger and take away? • How do you level the production mix?PROCESS KAIZEN to Support the Value Stream Vision • What process improvements are necessary? (reliability, quick changeover, etc.)
  • Takt Time Matches Pace of Production with Pace of Sales Operating Time per ShiftTakt Time = Production Requirement per Shift450 minutes 59 sec. = 59 sec460 pieces 59 sec. 59 sec.
  • Set the Pacemaker Process
  • Pull SystemRules:Following processes go to preceding processes andwithdraw the amount need when they need it.Preceding processes replenish exactly what is taken away. Withdrawal Production Kanban Kanban Preceding Following Process Process New Needed Product Product Supermarket
  • Pull SystemAssumptions:• Production schedules will always change• Production will never go according toschedule, anyway Withdrawal Production Kanban Kanban Preceding Following Process Process New Needed Product Product Supermarket
  • What is Your EPEX? Every Part Every Week Monday 400A Tuesday 100A, 300B Wednesday 200B, 200C Thursday 400C Friday 200C, 200A DANGER: Every Part Every Day Kanban Tsunami Monday: 140 A, 100 B, 160 C Monday Every Part Every X (EPEX)20 A 10 C 20 A 10 C 20 A 10 C 20 B 10 A20B 20 A 20 B 20 A 20 B 20 A 20 C 20 B10 C 20 C 10 C 20 C 10 C 20 C 10 A 20 C How do you want to run your operations? Why?
  • Frequent Movement of Small Quantities
  • Future State Map Takt Time = 58 <5d
  • Future State Questions VALUE STREAM VISION •What is the Takt Time? (How do you understand customer demand?) • Where can you flow? • Where should you pull? • At what single point in the production chain do you trigger production? • How much work do you trigger and take away? • How do you level the production mix?PROCESS KAIZEN to Support the Value Stream Vision • What process improvements are necessary? (reliability, quick changeover, etc.)
  • Lean Transformation Some Lessons Learned Techniques System Thinking•Selecting the tools we like is not enough•The tools comprise a system•A way of thinking underlies the tools and the system cartoon copyright © U of M Learn the thinking through doing
  • Fujio Cho of Toyota:“Production Control”“When you try to apply TPS, the first thing you have to do is to “even out” or level the production flow. And that is the responsibility primarily of production control.”
  • Role of Production Control1. Interface between customer requirements and company capability .2. Must satisfy both sales and manufacturing.3. Must be very strong.
  • The challenge of any business: Matching capability with demand MUDA (Excess)Capability Demand MURI (Overburden) MURA (Instability) •Know your demand •Know your true capability (capacity) Management •Create flexibility to get them to match TIME 39
  • System Design to Control the 3 M’sMUDA = WasteMURI = OverburdenMURA = Variation, fluctuation1. Design the system with sufficient capacity to fulfill customer requirements without overburdening people, equipment, or methods.
  • System Design to Control the 3 M’sMUDA = WasteMURI = OverburdenMURA = Variation, fluctuation1. Design the system with sufficient capacity to fulfill customer requirements without overburdening people, equipment, or methods.2. Reduce controllable variation/fluctuation to a bare minimum.
  • System Design to Control the 3 M’sMUDA = WasteMURI = OverburdenMURA = Variation, fluctuation1. Design the system with sufficient capacity to fulfill customer requirements without overburdening people, equipment, or methods.2. Reduce variation/fluctuation to a bare minimum.3. Eliminate sources of waste!
  • MURI - OverburdenLeadTime 0 % Utilization 100
  • MURA – Fluctuation, Variation “Variability will be buffered by somecombination of inventory, capacity and time.” - Hopp and Spearman, Factory Physics  This is true for any kind of capacity, not just factory equipment, e.g. people in product development.
  • What is a system?• “A network of interdependent components that work together to try to accomplish the aim of the system.” - W.E. Deming 45
  • What is a system?•A process (or network of processes) withinputs, outputs and a feedback loop thatenables adaptation. That’s what an Material& Information Flow system is.•Value Stream Mapping, used fully andproperly, does much more than simplyidentify waste to eliminate. VSM is a tool &process to design lean value creatingsystems. 46
  • Lean Thinking, Lean Practice, Lean Value StreamsA simple definition:Develop people, process, and systems to meet customer need while consuming the fewest possible resources.