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Heijunka
Product & Production Leveling
Module 9.3
Amy Reyner, Kweku Fleming
Mark Graban, LFM Class of ’99, Internal Lean Consultant, Honeywell
Presentation for:
ESD.60 – Lean/Six Sigma Systems
MIT Leaders for Manufacturing Program (LFM)
Summer 2004
These materials were developed as part of MIT's ESD.60 course on "Lean/Six Sigma Systems." In some cases,
the materials were produced by the lead instructor, Joel Cutcher-Gershenfeld, and in some cases by student teams
working with LFM alumni/ae. Where the materials were developed by student teams, additional inputs from the
faculty and from the technical instructor, Chris Musso, are reflected in some of the text or in an appendix
Overview
 Learning Objectives
 Introduce and demonstrate
the concept of Heijunka –
 Understand the benefits of
Heijunka
 Understand how to apply
Heijunka in a typical
manufacturing process
 Identify how Heijunka
interacts with other Lean
tools.
 Session Design (20-30 min.)
 Part I: Introductions (1-2
min.)
 Part II: Definition of Heijunka
and identification of its role in
Lean manufacturing. (3-5
min.)
 Part III: Study models of
Heijunka in use. Step
through an example of
Heijunka (7-13 min.)
 Part IV: Benefits and Trade-
offs associated with Heijunka
& Common “Disconnects,” ( 5 •
7 min.)
 Part V: Re-Cap and
Concluding Comments (2-3
min.)
© [LFM Students] – ESD.60 Lean/Six Sigma Systems, LFM, MIT 6/9/04 -- 2
Part V: Conclusion
Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects
Heijunka
Key Concepts
 Heijunka is defined as “The distribution of production
volume and mix evenly over time1”
Heijunka converts uneven Customer Pull into even and
predictable manufacturing process
Heijunka is generally used in combination with other key Lean
principles to stabilize value flow
Heijunka is a core concept that helps bring stability to a
manufacturing process
© [LFM Students] – ESD.60 Lean/Six Sigma Systems, LFM, MIT 6/9/04 -- 3
Part V: Conclusion
Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects
1 Lean Production Simplified, Pascal Dennis
Adapted from MIT LFM thesis by Sean Hilbert
The Need for Heijunka
© [LFM Students] – ESD.60 Lean/Six Sigma Systems, LFM, MIT 6/9/04 -- 4
 There are a number of reasons for implementing Heijunka:
 Product Leveling
 large batches of the same product may reduce set-up times and
changeovers, but usually result in:
 long lead times,
 swelling inventories
 greater opportunities for defects.
 excessive idle time and/or overtime.
 An even mix of products is critical to avoiding these impacts
 Production Leveling
 Remember the “Beer Game”? Fluctuations in demand ( Boller or “Bullwhip”
Effect) are often highly amplified and delayed throughout the supply chain.
 Responding to fluctuating customer demand can result in increased overtime
or idle time.
 Variable production schedules can be stressful = Unhappy workers.
 A more level production volume eases these complications
Supplier produces
4500 based on
demand.
Our workers begin to
revolt due to
demanding and
unpredictable work.
Start taking long
lunches at Chotchsky’s
Supplier sees sharp
decline in demand.
so produces far less.
Supplier sees
increase in demand.
Excited to sell more
product, significantly
increases production of inventory.
Supplier goes out of
business due to inventory
and workforce management
costs. Workers for our
company quit to become
construction workers.
© [LFM Students] – ESD.60 Lean/Six Sigma Systems, LFM, MIT 6/9/04 -- 5
last year’s avg.
Has extra inventory,
Supplier notices
steady decrease in
demand. Lowers
production to get rid
Chasing Demand – The “Bullwhip” Effect
What is Production Leveling?
A Simple Example
17,316  4 = 4,329
16,866  4 = 4,217
16,326  4 = 4,082
6/9/04 -- 6
© [LFM Students] – ESD.60 Lean/Six Sigma Systems, LFM, MIT
Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects Part V: Conclusion
JIT vs. Production Leveling
 Predictable work schedules
 Meet customer demand upon
varying customer demand back
upstreams
6/9/04 -- 7
© [LFM Students] – ESD.60 Lean/Six Sigma Systems, LFM, MIT
 Meet customer demand in total over a
given period of level production.
 Finished Goods Inventory to make up
for short periods of higher demand*
 Stability transmitted to Supplier
Reduces Inventory over the entire
Supply Chain.
 Overtime savings
 Happy people Upstream
request (“just in time”)
 Reduced Finished Goods Inventory
 Unpredictable work schedules
 High variability for Supplier Cascade
 Overtime occasionally
 Bullwhip Effect
6/9/04 -- 8
3 4 5 6 7 8
Week
1 2
Batching
Product Leveling
What is Product Leveling?
Customers are happy with
steady and predictable flow
We make A’s, B’s, and C’s: A
A B C
Customer waiting for
product A is tired of
waiting. Goes to another
supplier.
Extended downtime for
machine conversions.
Workers go home early.
Conversion times are
reduced and machines are
flexibly tooled.
© [LFM Students] – ESD.60 Lean/Six Sigma Systems, LFM, MIT
of product. Workers are
happy with even work flow
Challenges for Heijunka
Technical Factors
 Tools needed for large-scale
Heijunka Leveling are often
lacking.
 With Heijunka, there is a need
for larger Finished Goods
Inventory. This can be seen as
antithetical to Lean mission.
 Obsolescence of finished parts
 Can not immediately be
implemented– requires
predictable environment,
customer data.
 Predicting demand is
imperfect. Bad data can ruin
process.
© [LFM Students] – ESD.60 Lean/Six Sigma Systems, LFM, MIT 6/9/04 -- 9
Part V: Conclusion
Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects
Social Factors
 Heijunka depends on Direct
customer contact and accurate
information about projected
(future) events.
 Explaining why it’s important
to do standardized work
before implementing HJ.
 Reduces operator flexibility
which can draw resistance
 Requires discipline and much
more planning
Concluding Comments
 If Takt time is described as the heart beat of Lean implementation,
then Heijunka is the deep breathing exercise of Lean that brings
stability (calm) to the manufacturing process, spreading it upstream to
internal and external suppliers.
 “ Heijunka, You won’t be HAPPY without it!”2
© [LFM Students] – ESD.60 Lean/Six Sigma Systems, LFM, MIT 6/9/04 -- 10
Part V: Conclusion
Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects
2 The Toyota Production System: Leaner Manufacturing for a Greener Planet. Published 1998,
Appendix: Instructor’s Comments and Class
6/9/04 -- 11
© [LFM Students] – ESD.60 Lean/Six Sigma Systems, LFM, MIT
Discussion for 9.3
 Heijunka reveals the limits of the label “lean” and points to a
knowledge-driven process for ensuring stability, flow and pull
 It is still about ensuring the customer has what they want, when
they want it at the price they are willing to pay
 Consider the level at which Heijunka expertise needs to be
established – plant-wide, departments, individual work areas?
 Most lean operations strike a balance between product leveling
and production leveling
 “Good not to have inventory, good to meet demand, but there
really is some balance between the two”
 Worker happiness is an important measure of heijunka success
 Heijunka requires a lot of data, and can be tough to deal with
 Heijunka is not necessarily useful for businesses with level and
dependable demand.
Appendix: Instructor’s Guide
2-3 min
9
1-2 min
01
2-4 min
8
4-7
3
Slide
1-2
Key Concepts
3-5 min
2-3 min
Time
6/9/04 -- 12
Challenges for Heijunka
Conclusion
What is Product Leveling?
The Need for Heijunka
What is Production Leveling?
JIT vs. Heijunka Leveling
7-13 min
Additional Talking Points
•Heijunka is Production Leveling Distributing
production volume or production mix evenly over
time.
•Heijunka converts uneven customer pull into
predictable value flow. Converts inefficient
batching processes into coordinated multi-tasking
•Heijunka levels production, JIT results in level
inventory. Safety stock is a key to Heijunka.
•Heijunka is not implemented in a vacuum. It is
effective when integrated with other lean tools,
reduced set-ups, Takt time, Kanban planning etc.
•Product Leveling: Long Lead times, large
unfinished inventories
•Heijunka Product leveling seeks to break down
batches into smaller interspersed runs
•Imperfect Data, Large Safety Inventory, Increased
Planning Required,
•Heijunka is the Deep Breathing Exercise for the
Manufacturing Process
• You won’t be “happy” without Heijunka
Topic
Introduction, overview and
learning objectives
© [LFM Students] – ESD.60 Lean/Six Sigma Systems, LFM, MIT
Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects Part V: Conclusion

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Heijunka Leveling

  • 1. Heijunka Product & Production Leveling Module 9.3 Amy Reyner, Kweku Fleming Mark Graban, LFM Class of ’99, Internal Lean Consultant, Honeywell Presentation for: ESD.60 – Lean/Six Sigma Systems MIT Leaders for Manufacturing Program (LFM) Summer 2004 These materials were developed as part of MIT's ESD.60 course on "Lean/Six Sigma Systems." In some cases, the materials were produced by the lead instructor, Joel Cutcher-Gershenfeld, and in some cases by student teams working with LFM alumni/ae. Where the materials were developed by student teams, additional inputs from the faculty and from the technical instructor, Chris Musso, are reflected in some of the text or in an appendix
  • 2. Overview  Learning Objectives  Introduce and demonstrate the concept of Heijunka –  Understand the benefits of Heijunka  Understand how to apply Heijunka in a typical manufacturing process  Identify how Heijunka interacts with other Lean tools.  Session Design (20-30 min.)  Part I: Introductions (1-2 min.)  Part II: Definition of Heijunka and identification of its role in Lean manufacturing. (3-5 min.)  Part III: Study models of Heijunka in use. Step through an example of Heijunka (7-13 min.)  Part IV: Benefits and Trade- offs associated with Heijunka & Common “Disconnects,” ( 5 • 7 min.)  Part V: Re-Cap and Concluding Comments (2-3 min.) © [LFM Students] – ESD.60 Lean/Six Sigma Systems, LFM, MIT 6/9/04 -- 2 Part V: Conclusion Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects
  • 3. Heijunka Key Concepts  Heijunka is defined as “The distribution of production volume and mix evenly over time1” Heijunka converts uneven Customer Pull into even and predictable manufacturing process Heijunka is generally used in combination with other key Lean principles to stabilize value flow Heijunka is a core concept that helps bring stability to a manufacturing process © [LFM Students] – ESD.60 Lean/Six Sigma Systems, LFM, MIT 6/9/04 -- 3 Part V: Conclusion Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects 1 Lean Production Simplified, Pascal Dennis Adapted from MIT LFM thesis by Sean Hilbert
  • 4. The Need for Heijunka © [LFM Students] – ESD.60 Lean/Six Sigma Systems, LFM, MIT 6/9/04 -- 4  There are a number of reasons for implementing Heijunka:  Product Leveling  large batches of the same product may reduce set-up times and changeovers, but usually result in:  long lead times,  swelling inventories  greater opportunities for defects.  excessive idle time and/or overtime.  An even mix of products is critical to avoiding these impacts  Production Leveling  Remember the “Beer Game”? Fluctuations in demand ( Boller or “Bullwhip” Effect) are often highly amplified and delayed throughout the supply chain.  Responding to fluctuating customer demand can result in increased overtime or idle time.  Variable production schedules can be stressful = Unhappy workers.  A more level production volume eases these complications
  • 5. Supplier produces 4500 based on demand. Our workers begin to revolt due to demanding and unpredictable work. Start taking long lunches at Chotchsky’s Supplier sees sharp decline in demand. so produces far less. Supplier sees increase in demand. Excited to sell more product, significantly increases production of inventory. Supplier goes out of business due to inventory and workforce management costs. Workers for our company quit to become construction workers. © [LFM Students] – ESD.60 Lean/Six Sigma Systems, LFM, MIT 6/9/04 -- 5 last year’s avg. Has extra inventory, Supplier notices steady decrease in demand. Lowers production to get rid Chasing Demand – The “Bullwhip” Effect
  • 6. What is Production Leveling? A Simple Example 17,316  4 = 4,329 16,866  4 = 4,217 16,326  4 = 4,082 6/9/04 -- 6 © [LFM Students] – ESD.60 Lean/Six Sigma Systems, LFM, MIT Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects Part V: Conclusion
  • 7. JIT vs. Production Leveling  Predictable work schedules  Meet customer demand upon varying customer demand back upstreams 6/9/04 -- 7 © [LFM Students] – ESD.60 Lean/Six Sigma Systems, LFM, MIT  Meet customer demand in total over a given period of level production.  Finished Goods Inventory to make up for short periods of higher demand*  Stability transmitted to Supplier Reduces Inventory over the entire Supply Chain.  Overtime savings  Happy people Upstream request (“just in time”)  Reduced Finished Goods Inventory  Unpredictable work schedules  High variability for Supplier Cascade  Overtime occasionally  Bullwhip Effect
  • 8. 6/9/04 -- 8 3 4 5 6 7 8 Week 1 2 Batching Product Leveling What is Product Leveling? Customers are happy with steady and predictable flow We make A’s, B’s, and C’s: A A B C Customer waiting for product A is tired of waiting. Goes to another supplier. Extended downtime for machine conversions. Workers go home early. Conversion times are reduced and machines are flexibly tooled. © [LFM Students] – ESD.60 Lean/Six Sigma Systems, LFM, MIT of product. Workers are happy with even work flow
  • 9. Challenges for Heijunka Technical Factors  Tools needed for large-scale Heijunka Leveling are often lacking.  With Heijunka, there is a need for larger Finished Goods Inventory. This can be seen as antithetical to Lean mission.  Obsolescence of finished parts  Can not immediately be implemented– requires predictable environment, customer data.  Predicting demand is imperfect. Bad data can ruin process. © [LFM Students] – ESD.60 Lean/Six Sigma Systems, LFM, MIT 6/9/04 -- 9 Part V: Conclusion Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects Social Factors  Heijunka depends on Direct customer contact and accurate information about projected (future) events.  Explaining why it’s important to do standardized work before implementing HJ.  Reduces operator flexibility which can draw resistance  Requires discipline and much more planning
  • 10. Concluding Comments  If Takt time is described as the heart beat of Lean implementation, then Heijunka is the deep breathing exercise of Lean that brings stability (calm) to the manufacturing process, spreading it upstream to internal and external suppliers.  “ Heijunka, You won’t be HAPPY without it!”2 © [LFM Students] – ESD.60 Lean/Six Sigma Systems, LFM, MIT 6/9/04 -- 10 Part V: Conclusion Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects 2 The Toyota Production System: Leaner Manufacturing for a Greener Planet. Published 1998,
  • 11. Appendix: Instructor’s Comments and Class 6/9/04 -- 11 © [LFM Students] – ESD.60 Lean/Six Sigma Systems, LFM, MIT Discussion for 9.3  Heijunka reveals the limits of the label “lean” and points to a knowledge-driven process for ensuring stability, flow and pull  It is still about ensuring the customer has what they want, when they want it at the price they are willing to pay  Consider the level at which Heijunka expertise needs to be established – plant-wide, departments, individual work areas?  Most lean operations strike a balance between product leveling and production leveling  “Good not to have inventory, good to meet demand, but there really is some balance between the two”  Worker happiness is an important measure of heijunka success  Heijunka requires a lot of data, and can be tough to deal with  Heijunka is not necessarily useful for businesses with level and dependable demand.
  • 12. Appendix: Instructor’s Guide 2-3 min 9 1-2 min 01 2-4 min 8 4-7 3 Slide 1-2 Key Concepts 3-5 min 2-3 min Time 6/9/04 -- 12 Challenges for Heijunka Conclusion What is Product Leveling? The Need for Heijunka What is Production Leveling? JIT vs. Heijunka Leveling 7-13 min Additional Talking Points •Heijunka is Production Leveling Distributing production volume or production mix evenly over time. •Heijunka converts uneven customer pull into predictable value flow. Converts inefficient batching processes into coordinated multi-tasking •Heijunka levels production, JIT results in level inventory. Safety stock is a key to Heijunka. •Heijunka is not implemented in a vacuum. It is effective when integrated with other lean tools, reduced set-ups, Takt time, Kanban planning etc. •Product Leveling: Long Lead times, large unfinished inventories •Heijunka Product leveling seeks to break down batches into smaller interspersed runs •Imperfect Data, Large Safety Inventory, Increased Planning Required, •Heijunka is the Deep Breathing Exercise for the Manufacturing Process • You won’t be “happy” without Heijunka Topic Introduction, overview and learning objectives © [LFM Students] – ESD.60 Lean/Six Sigma Systems, LFM, MIT Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects Part V: Conclusion