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The better the question. The better the answer.
The better the world works.
INDUSTRY 4.0
Why it matters?
Page 2
Industrial Evolution
4. Industrial
revolution
Based on cyber-physical-
systems
3. Industrial revolution
Through the use of electronics
and IT further progression in
autonomous production
2. Industrial revolution
Introducing mass production
lines powered by electric
energy
1. Industrial revolution
Introducing mechanical
production machines powered
by water and steam
End of the
18th century.
Beginning of the
20th century
Beginning of the
70th
Industry 1.0 Industry 3.0
Industry 2.0 Industry 4.0
Level
of
complexity
Today
Source: DFKI/Bauer IAO
Industry 4.0:
The Fourth Industrial Revolution
SOURCE: SIEMENS AG
Page 4
Phases of earlier 3 Industrial Revolutions
1. 1760 to 1840 - Ushered in Mechanical production; railways and
steam engine
2. 1870 to 1940 - Mass production; electricity and assembly line
3. 1960 to 2010 - Computers; semi conductors, main frame computing,
personal devices, internet
Industry 4.0
SOURCE: CAPGEMINI
Soon Everything Will Be Smart
SOURCE: PROF. DR. ANDRÉ LUDWIG
Connected Devices Projection
2003 2010 2015 2020
500 Million 12.5 Billion 50 Billion
25 Billion
Connected
Devices
Connected
Devices Per
Person 0.08 1.84 6.58
3.47
World
Population 6.3 Billion 6.8 Billion 7.6 Billion
7.2 Billion
More connected
devices than people
(Conservative)
2008
SOURCE: CISCO
Smart Buildings
Internet
AC power sub-meters
Outdoor temperature
Temp, Hum., Light, CO2
sensors
Relay nodes
Routers
Gas/Water sub-meters
Dashboards
SOURCE: CISCO
Smart Manufacturing
Supply Chain
Distribution Center
Customer
Business
Systems, ERP
Smart Grid
Smart Factory
• Dynamic plant configuration, readiness
• Dynamic product configuration
• Dynamic inventory minimization
SOURCE: ROBERT GRAYBILL
Page 10
Did not exist in 2006
► iPhone
► iPad
► Kindle
► 4G
► Uber
► Airbnb
► Android
► Android
► Oculus
► Instagram
► Snapchat
► Whatsapp
Page 11
Time to reach 100 Million customers
► Telephone 75 Years
► Web 7 Years
► Facebook 4 Years
► Instagram 2 Years
► Pokemon Go 1 Month
Some Industry 4.0 Technologies
Digital workflows
and platforms
End-to-end (E2E)
process
management
Smart,
autonomous
assets
Human
interaction
Logistics systems across the networked industry
Big
data
3D printing &
virtualization
New digital
business
models
SOURCE: PROF. DR. ANDRÉ LUDWIG
Page 13
Industry 4.0
Six Design Principles
► Interoperability: the ability of cyber-physical systems (i.e. work
piece carriers, assembly stations and products), humans and Smart
Factories to connect and communicate with each other via the
Internet of Things and the Internet of Services
► Virtualization: a virtual copy of the Smart Factory which is created by
linking sensor data (from monitoring physical processes) with virtual
plant models and simulation models
► Decentralization: the ability of cyber-physical systems within Smart
Factories to make decisions on their own
► Real-Time Capability: the capability to collect and analyze data and
provide the insights immediately
► Service Orientation: offering of services (of cyber-physical
systems, humans and Smart Factories) via the Internet of Services
► Modularity: flexible adaptation of Smart Factories for changing
requirements of individual modules
Page 14
Building blocks of Industry 4.0
Industry 4.0
Autonomous
Robots
Simulation
Horizontal
and vertical
system
integration
Industrial
Internet of
Things
Cyber
Security
Additive Mfg
Augmented
reality
Big data
analytics
Page 15
Impacting all aspect of value chain
Page 16
Potential Implications
Robot Assisted production
Predictive Maintenance
Additive manufacturing of complex parts
Machines as a service
Big data drive quality control
Production line simulation
Smart supply network
Page 17
Impact
Economy
Business
National
& Global
Society
Individual
Impact
Page 18
Impact
Economy
► Growth
► Ageing
► Productivity
► Employment
► Labour subsititution
► The nature of Work
Page 19
Impact
Business
► Customer expectations
► Data enhanced products
► Collaborative innovation
► New operating models
Combining digital, physical and biological worlds
Page 20
Impact
► National & Global
► Governments
► Countries, regions & cities
► International security
► Society
► Inequality
► Community
► The Individual
► Identity, morality & ethics
► Human connection
BUSINESS MODELS OF INDUSTRY 4.0
From product to service mindset
Manufacturers employing Industry 4.0 are
redefining themselves in the value chain by adding
services to their products. This is allowing them to
evolve from product-specific companies,
competing exclusively on manufacturing costs,
time or quality.
Customer experience
Industry 4.0 enables insight into the entire
production chain in real time, which allows
manufacturers to spot where service levels can be
improved. This, by itself, is enough to make service
the focus in any newly developed business model.
BUSINESS MODELS OF INDUSTRY 4.0
Developing a network
Interoperability, the foundation of Industry 4.0, is the ability of
systems to exchange information. That, coupled with the horizontal
and vertical integration of the value chain, broadens a
manufacturer’s traditional role. Behind this is the stakeholders’
network.
Smarter products
Another way Industry 4.0 is changing business models is in the
products manufacturers produce. Remember Tesla and its free
functionalities with software updates? Here, the manufacturer is
providing a smarter product.
Manufacturers can offer customers products embedded with
aspects of the Internet of Things (IOT) – the very same technology
that allows them to operate smarter. This enables the expansion of
markets or diversification. Going this route would allow
manufacturers to experiment with a new business model before
abandoning the old.
 Lean Management or "Lean" is the optimal way of managing through the
removal of waste and implementing flow.
 It is renowned for its focus on reduction of the original process wastes in
order to improve overall customer value.
 In simple term, more value with less work.
 Lean manufacturing is derived mostly from the Toyota Production System
(TPS) Identified as "Lean" only after 1990s.
 Goal is to eliminate the waste from the process.
LEAN MANAGEMENT
MUDA MURI
MURA
WHAT IS LEAN?
TOYOTA PRODUCTION SYSTEM
 Make what the customer needs, when it is needed, in the right
amount.
 Minimize inventories
 Separate machine work from human work and fully utilize both
 Build quality into the process and prevent errors from happening
 Reduce lead-times to allow for rapid, flexible scheduling
 Produce a high mix of low volume products efficiently
Main goals ofToyota Production System (TPS) are to eliminate:
 Overburden or stress in the system (muri)
 Inconsistency (mura)
 Waste (muda)
Goal is to design a process that runs smoothly, can flex without stress, and
eliminates waste.
UsingTPS,Toyota was able to reduce lead-time and cost, while improving
quality.
LEAN PRODUCTION -TPS
 MUDA (Waste)
 MURI
(Strain / Over burden)
 MURA (Unevenness)
Eliminating 3 M
MUDA
Process-1 V
W
Process-2 V
W
Process-3 V
W
Process-4
W
Product
V
Input
V:Value added product/services
W: Wasteful product / practices/services that does not add value
MUDA is the Waste, work that does not add any value to the product
EconomicValue of Waste
 Every business activity absorbs
resources and every resource has
a cost
 Every waste has a cost, and that
is direct loss to the company.
 Economic value of waste in a
process industry are in the range
of 10 -35% of annual turnover
Unnecessary Motions
Waiting for work and materials
Transportations
Overproduction
Processing
Inventories / Unnecessary WIP
Corrective operation
7 Seven MUDA [Wastes]
MUDA of Motion
MUDA of Motion
Movement that does not add value
 Searching for files
 Extra clicks or key strokes
 Clearing away files on the desk
 Gathering information
 Looking through manuals and catalogs
 Handling paperwork
MUDA of Waiting
MUDA of
Waiting
MUDA ofWaiting
Idle time created when material, information, people or
equipment is not ready.
Waiting for:
 Faxes
 The system to come back
 Copier machine
 Customer response
 A handed off file to come back
MUDA ofTransport
I am more expensive
since raw material is
coming from a far
off place.
MUDA ofTransport
Movement of information that does not add
value:
 Carrying documents to and fro from shared
equipment
 Taking files to another person
 Going to get signatures
“the more, the
merrier
MUDA of Over
production
Generating more information than the customer needs
right now:
 More information than the customer needs
 Creating reports no one reads
 Making extra copies
 More information than the next process needs
MUDA of Process
1. Using more expensive
equipment or tools where
simpler ones would suffice.
2. Having meetings that are not
needed.
3. Having people at meetings
that are not required.
4. Agenda points, not to be
included;
MUDA of
Process
Efforts that create no value from the customer
viewpoint:
 Creating reports
 Repeated manual entry of data
 Excessive paperwork
 Duplicity of work
 Use of outdated standard forms
 Use of inappropriate software
More information, project, material on hand than
the customer needs right now:
 Files waiting to be worked on
 Open projects
 Office supplies
 E-mails waiting to be read
 Unused records in the database
MUDAofCorrection
Work that contains errors, rework, mistakes or
lacks something necessary:
 Data entry error
 Pricing error
 Missing information
 Missed specifications
 Lost records
 Rework
 Rescheduling meetings
Find the Root Cause
- Asking ‘WHY’ for 5 times
- 5W 1H
How to eliminate?
The Five Ws and The One H
Who What Where
1. Who does it?
2. Who is doing it?
3. Who should be doing it?
4. Who else can do it?
5. Who else should do it?
6. Who is doing 3-Mus?
1. What to do?
2. What is being done?
3. What should be done?
4. What else can be done?
5. What else should be done?
6. What 3-MUs are being
done?
1. Where to do it?
2. Where is it done?
3. Where should it be done?
4. Where else can it be done?
5. Where else should it be
done ?
6. Where are 3- MU s being
done?
Muri is the overburden on equipment, facilities & people caused by
mura and muda.
 This is in some respects on the opposite end of the spectrum of
muda.
 Muri is pushing a machine or person beyond natural limits.
 Overburdening people results in safety and quality problems.
 Overburdening equipment causes breakdowns and defects
MURI
Identifying MURI
MURI = Physical Strain, Overbourden
Placing of excessive demands on
People
M/Cs, Production equipment.
Muri is caused by the respect of unsuited standards
Bend to work?
Push hard?
Lift weight?
Repeat tiring action?
Wasteful walk?
MURA
 Mura is the variation in the operation of a process not
caused by the end customer.
 It is the unevenness, unbalanced work on machines.
 Mura results when employees are told to work like crazy
early in the morning only to stand around and do nothing
late in the day.
Result: Excess capacity allocation and increased cost.
Eliminating MURA
MURA is
Inconsistent or
Irregular or
Uneven use of person or M/c.
Happens sometimes?
Happens some places
Happens to some people
One side is ok; the other side is not ok
Quality
Doesn’t happen by
Accident,
It has to be
Planned
CH/57
© Dr. Christian Hicks
Any colour you like provided it is Black! - Standardised
Vertically integrated – even
farmed sheep!
Model T Ford
1909.
1909 Model T Ford
Any colour you like provided it is black!
CH/58
© Dr. Christian Hicks
Taiichi Ohno
(1912 †1990)
Shigeo Shingo
1909 †1990
Founders of the Toyota Production System (TPS)
CH/59
© Dr. Christian Hicks
Waller, D.L.,,1999,”Operations Management: A Supply Chain Approach”, (Thompson, London)
Lean Manufacturing goals
Just-In-Time (JIT) Defined
 JIT can be defined as an integrated set of activities
designed to achieve high-volume production using
minimal inventories (raw materials, work in process,
and finished goods).
 JIT also involves the elimination of waste in
production effort.
 JIT also involves the timing of production resources
(e.g., parts arrive at the next workstation “just in
time”).
Just in Time Manufacturing
Produce according to customer demands:
 What is needed
 When it is needed
 In the quantity it is needed
Minimizing Waste: Just-In-Time
Production
• Management philosophy
• “Pull” system though the plant
WHAT IT IS
• Employee participation
• Industrial engineering/basics
• Continuing improvement
• Total quality control
• Small lot sizes
WHAT IT REQUIRES
• Attacks waste
• Exposes problems and bottlenecks
• Achieves streamlined production
WHAT IT DOES
• Stable environment
WHAT IT ASSUMES
Transparency Masters to accompany Heizer/Render –
Principles of Operations Management, 5e, and Operations
Management, 7e
© 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
16-64
Suppliers
Preventive
Maintenance
Layout
Inventory
Scheduling
Quality
Employee
Empowerment
JIT
Just-in-Time
Success Factors
Lean and Just-in-Time
Lean was generated from the Just-in-time (JIT)
philosophy of continuous and forced problem solving
Just-in-time is supplying customers with exactly
what they want when they want it
With JIT, supplies and components are “pulled”
through a system to arrive where they are needed
when they are needed
Key Lean Manufacturing
Techniques
5S
Single Minute Exchange of Dies
Kanban
Cellular Manufacturing
CH/67
© Dr. Christian Hicks
5Ss Waller, D.L.,,1999,”Operations Management: A Supply Chain Approach”, (Thompson, London)
5S
Strategy for creating a well organized, smoothly
flowing manufacturing process
5S Examples
Before After
Kanban
Manual information system to control production.
Material transportation, and inventory
Literally means “visible record” or card
In the the broad sense it is a communication signal
from a downstream process (customer) to a
upstream process (producer)
 Japanese word for card
 Pronounced ‘kahn-bahn’ (not ‘can-ban’)
 Authorizes production from downstream operations
 ‘Pulls’ material through plant
 May be a card, flag, verbal signal etc.
 Used often with fixed-size containers
 Add or remove containers to change production rate
Kanban
72
Kinds of Kanban
Two most common kanbans
 production kanbans (P- Kanban)
 authorizes a process to produce a fixed amount of product
Kanban continued
Transportation kanban (T- Kanban)
 authorizes transporting a fixed amount of product
downstream
Kanban Signals “Pull” Material
Through the Process
SMED Examples
SMED Examples
Split thread bolts
Handles
Toggle clamps
U-shaped washers
Reduce the
amount of
turns required
in order to
activate the
screw.
05/30/10 26
Cellular Manufacturing
Dividing the manufacture of products into
semi-autonomous and multi-skilled
teams known as work cells
CH/79
© Dr. Christian Hicks
Manufacturing cells
© Siemens Power Generation Systems
CH/80
© Dr. Christian Hicks
Multifunction double gantry mill
© Siemens Power Generation Systems
A single machine acting as a cell
CH/81
© Dr. Christian Hicks
Lean Manufacturing is a way of thinking
Faurecia, Washingtong, Tyne & Wear
CH/82
© Dr. Christian Hicks
The Deming Cycle
Hill, T. 2005, “Operations Management, 2nd Edition”, Palgrave Macmillan
CH/83
© Dr. Christian Hicks
Cause/effect (fishbone) diagram
Hill, T. 2005, “Operations Management, 2nd Edition”, Palgrave Macmillan

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1st Class-PPT.pptx

  • 1. The better the question. The better the answer. The better the world works. INDUSTRY 4.0 Why it matters?
  • 2. Page 2 Industrial Evolution 4. Industrial revolution Based on cyber-physical- systems 3. Industrial revolution Through the use of electronics and IT further progression in autonomous production 2. Industrial revolution Introducing mass production lines powered by electric energy 1. Industrial revolution Introducing mechanical production machines powered by water and steam End of the 18th century. Beginning of the 20th century Beginning of the 70th Industry 1.0 Industry 3.0 Industry 2.0 Industry 4.0 Level of complexity Today Source: DFKI/Bauer IAO
  • 3. Industry 4.0: The Fourth Industrial Revolution SOURCE: SIEMENS AG
  • 4. Page 4 Phases of earlier 3 Industrial Revolutions 1. 1760 to 1840 - Ushered in Mechanical production; railways and steam engine 2. 1870 to 1940 - Mass production; electricity and assembly line 3. 1960 to 2010 - Computers; semi conductors, main frame computing, personal devices, internet
  • 6. Soon Everything Will Be Smart SOURCE: PROF. DR. ANDRÉ LUDWIG
  • 7. Connected Devices Projection 2003 2010 2015 2020 500 Million 12.5 Billion 50 Billion 25 Billion Connected Devices Connected Devices Per Person 0.08 1.84 6.58 3.47 World Population 6.3 Billion 6.8 Billion 7.6 Billion 7.2 Billion More connected devices than people (Conservative) 2008 SOURCE: CISCO
  • 8. Smart Buildings Internet AC power sub-meters Outdoor temperature Temp, Hum., Light, CO2 sensors Relay nodes Routers Gas/Water sub-meters Dashboards SOURCE: CISCO
  • 9. Smart Manufacturing Supply Chain Distribution Center Customer Business Systems, ERP Smart Grid Smart Factory • Dynamic plant configuration, readiness • Dynamic product configuration • Dynamic inventory minimization SOURCE: ROBERT GRAYBILL
  • 10. Page 10 Did not exist in 2006 ► iPhone ► iPad ► Kindle ► 4G ► Uber ► Airbnb ► Android ► Android ► Oculus ► Instagram ► Snapchat ► Whatsapp
  • 11. Page 11 Time to reach 100 Million customers ► Telephone 75 Years ► Web 7 Years ► Facebook 4 Years ► Instagram 2 Years ► Pokemon Go 1 Month
  • 12. Some Industry 4.0 Technologies Digital workflows and platforms End-to-end (E2E) process management Smart, autonomous assets Human interaction Logistics systems across the networked industry Big data 3D printing & virtualization New digital business models SOURCE: PROF. DR. ANDRÉ LUDWIG
  • 13. Page 13 Industry 4.0 Six Design Principles ► Interoperability: the ability of cyber-physical systems (i.e. work piece carriers, assembly stations and products), humans and Smart Factories to connect and communicate with each other via the Internet of Things and the Internet of Services ► Virtualization: a virtual copy of the Smart Factory which is created by linking sensor data (from monitoring physical processes) with virtual plant models and simulation models ► Decentralization: the ability of cyber-physical systems within Smart Factories to make decisions on their own ► Real-Time Capability: the capability to collect and analyze data and provide the insights immediately ► Service Orientation: offering of services (of cyber-physical systems, humans and Smart Factories) via the Internet of Services ► Modularity: flexible adaptation of Smart Factories for changing requirements of individual modules
  • 14. Page 14 Building blocks of Industry 4.0 Industry 4.0 Autonomous Robots Simulation Horizontal and vertical system integration Industrial Internet of Things Cyber Security Additive Mfg Augmented reality Big data analytics
  • 15. Page 15 Impacting all aspect of value chain
  • 16. Page 16 Potential Implications Robot Assisted production Predictive Maintenance Additive manufacturing of complex parts Machines as a service Big data drive quality control Production line simulation Smart supply network
  • 18. Page 18 Impact Economy ► Growth ► Ageing ► Productivity ► Employment ► Labour subsititution ► The nature of Work
  • 19. Page 19 Impact Business ► Customer expectations ► Data enhanced products ► Collaborative innovation ► New operating models Combining digital, physical and biological worlds
  • 20. Page 20 Impact ► National & Global ► Governments ► Countries, regions & cities ► International security ► Society ► Inequality ► Community ► The Individual ► Identity, morality & ethics ► Human connection
  • 21. BUSINESS MODELS OF INDUSTRY 4.0 From product to service mindset Manufacturers employing Industry 4.0 are redefining themselves in the value chain by adding services to their products. This is allowing them to evolve from product-specific companies, competing exclusively on manufacturing costs, time or quality. Customer experience Industry 4.0 enables insight into the entire production chain in real time, which allows manufacturers to spot where service levels can be improved. This, by itself, is enough to make service the focus in any newly developed business model.
  • 22. BUSINESS MODELS OF INDUSTRY 4.0 Developing a network Interoperability, the foundation of Industry 4.0, is the ability of systems to exchange information. That, coupled with the horizontal and vertical integration of the value chain, broadens a manufacturer’s traditional role. Behind this is the stakeholders’ network. Smarter products Another way Industry 4.0 is changing business models is in the products manufacturers produce. Remember Tesla and its free functionalities with software updates? Here, the manufacturer is providing a smarter product. Manufacturers can offer customers products embedded with aspects of the Internet of Things (IOT) – the very same technology that allows them to operate smarter. This enables the expansion of markets or diversification. Going this route would allow manufacturers to experiment with a new business model before abandoning the old.
  • 23.  Lean Management or "Lean" is the optimal way of managing through the removal of waste and implementing flow.  It is renowned for its focus on reduction of the original process wastes in order to improve overall customer value.  In simple term, more value with less work.  Lean manufacturing is derived mostly from the Toyota Production System (TPS) Identified as "Lean" only after 1990s.  Goal is to eliminate the waste from the process. LEAN MANAGEMENT
  • 26. TOYOTA PRODUCTION SYSTEM  Make what the customer needs, when it is needed, in the right amount.  Minimize inventories  Separate machine work from human work and fully utilize both  Build quality into the process and prevent errors from happening  Reduce lead-times to allow for rapid, flexible scheduling  Produce a high mix of low volume products efficiently
  • 27. Main goals ofToyota Production System (TPS) are to eliminate:  Overburden or stress in the system (muri)  Inconsistency (mura)  Waste (muda) Goal is to design a process that runs smoothly, can flex without stress, and eliminates waste. UsingTPS,Toyota was able to reduce lead-time and cost, while improving quality. LEAN PRODUCTION -TPS
  • 28.  MUDA (Waste)  MURI (Strain / Over burden)  MURA (Unevenness) Eliminating 3 M
  • 29. MUDA Process-1 V W Process-2 V W Process-3 V W Process-4 W Product V Input V:Value added product/services W: Wasteful product / practices/services that does not add value MUDA is the Waste, work that does not add any value to the product
  • 30. EconomicValue of Waste  Every business activity absorbs resources and every resource has a cost  Every waste has a cost, and that is direct loss to the company.  Economic value of waste in a process industry are in the range of 10 -35% of annual turnover
  • 31. Unnecessary Motions Waiting for work and materials Transportations Overproduction Processing Inventories / Unnecessary WIP Corrective operation 7 Seven MUDA [Wastes]
  • 33. MUDA of Motion Movement that does not add value  Searching for files  Extra clicks or key strokes  Clearing away files on the desk  Gathering information  Looking through manuals and catalogs  Handling paperwork
  • 36. MUDA ofWaiting Idle time created when material, information, people or equipment is not ready. Waiting for:  Faxes  The system to come back  Copier machine  Customer response  A handed off file to come back
  • 37. MUDA ofTransport I am more expensive since raw material is coming from a far off place.
  • 38. MUDA ofTransport Movement of information that does not add value:  Carrying documents to and fro from shared equipment  Taking files to another person  Going to get signatures
  • 40. MUDA of Over production Generating more information than the customer needs right now:  More information than the customer needs  Creating reports no one reads  Making extra copies  More information than the next process needs
  • 41. MUDA of Process 1. Using more expensive equipment or tools where simpler ones would suffice. 2. Having meetings that are not needed. 3. Having people at meetings that are not required. 4. Agenda points, not to be included;
  • 42. MUDA of Process Efforts that create no value from the customer viewpoint:  Creating reports  Repeated manual entry of data  Excessive paperwork  Duplicity of work  Use of outdated standard forms  Use of inappropriate software
  • 43.
  • 44. More information, project, material on hand than the customer needs right now:  Files waiting to be worked on  Open projects  Office supplies  E-mails waiting to be read  Unused records in the database
  • 46. Work that contains errors, rework, mistakes or lacks something necessary:  Data entry error  Pricing error  Missing information  Missed specifications  Lost records  Rework  Rescheduling meetings
  • 47. Find the Root Cause - Asking ‘WHY’ for 5 times - 5W 1H How to eliminate?
  • 48. The Five Ws and The One H Who What Where 1. Who does it? 2. Who is doing it? 3. Who should be doing it? 4. Who else can do it? 5. Who else should do it? 6. Who is doing 3-Mus? 1. What to do? 2. What is being done? 3. What should be done? 4. What else can be done? 5. What else should be done? 6. What 3-MUs are being done? 1. Where to do it? 2. Where is it done? 3. Where should it be done? 4. Where else can it be done? 5. Where else should it be done ? 6. Where are 3- MU s being done?
  • 49. Muri is the overburden on equipment, facilities & people caused by mura and muda.  This is in some respects on the opposite end of the spectrum of muda.  Muri is pushing a machine or person beyond natural limits.  Overburdening people results in safety and quality problems.  Overburdening equipment causes breakdowns and defects MURI
  • 50.
  • 51.
  • 52. Identifying MURI MURI = Physical Strain, Overbourden Placing of excessive demands on People M/Cs, Production equipment. Muri is caused by the respect of unsuited standards Bend to work? Push hard? Lift weight? Repeat tiring action? Wasteful walk?
  • 53. MURA  Mura is the variation in the operation of a process not caused by the end customer.  It is the unevenness, unbalanced work on machines.  Mura results when employees are told to work like crazy early in the morning only to stand around and do nothing late in the day. Result: Excess capacity allocation and increased cost.
  • 54. Eliminating MURA MURA is Inconsistent or Irregular or Uneven use of person or M/c. Happens sometimes? Happens some places Happens to some people One side is ok; the other side is not ok
  • 56. CH/57 © Dr. Christian Hicks Any colour you like provided it is Black! - Standardised Vertically integrated – even farmed sheep! Model T Ford 1909. 1909 Model T Ford Any colour you like provided it is black!
  • 57. CH/58 © Dr. Christian Hicks Taiichi Ohno (1912 †1990) Shigeo Shingo 1909 †1990 Founders of the Toyota Production System (TPS)
  • 58. CH/59 © Dr. Christian Hicks Waller, D.L.,,1999,”Operations Management: A Supply Chain Approach”, (Thompson, London) Lean Manufacturing goals
  • 59.
  • 60. Just-In-Time (JIT) Defined  JIT can be defined as an integrated set of activities designed to achieve high-volume production using minimal inventories (raw materials, work in process, and finished goods).  JIT also involves the elimination of waste in production effort.  JIT also involves the timing of production resources (e.g., parts arrive at the next workstation “just in time”).
  • 61. Just in Time Manufacturing Produce according to customer demands:  What is needed  When it is needed  In the quantity it is needed
  • 62. Minimizing Waste: Just-In-Time Production • Management philosophy • “Pull” system though the plant WHAT IT IS • Employee participation • Industrial engineering/basics • Continuing improvement • Total quality control • Small lot sizes WHAT IT REQUIRES • Attacks waste • Exposes problems and bottlenecks • Achieves streamlined production WHAT IT DOES • Stable environment WHAT IT ASSUMES
  • 63. Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 16-64 Suppliers Preventive Maintenance Layout Inventory Scheduling Quality Employee Empowerment JIT Just-in-Time Success Factors
  • 64. Lean and Just-in-Time Lean was generated from the Just-in-time (JIT) philosophy of continuous and forced problem solving Just-in-time is supplying customers with exactly what they want when they want it With JIT, supplies and components are “pulled” through a system to arrive where they are needed when they are needed
  • 65. Key Lean Manufacturing Techniques 5S Single Minute Exchange of Dies Kanban Cellular Manufacturing
  • 66. CH/67 © Dr. Christian Hicks 5Ss Waller, D.L.,,1999,”Operations Management: A Supply Chain Approach”, (Thompson, London)
  • 67. 5S Strategy for creating a well organized, smoothly flowing manufacturing process
  • 69. Kanban Manual information system to control production. Material transportation, and inventory Literally means “visible record” or card In the the broad sense it is a communication signal from a downstream process (customer) to a upstream process (producer)
  • 70.  Japanese word for card  Pronounced ‘kahn-bahn’ (not ‘can-ban’)  Authorizes production from downstream operations  ‘Pulls’ material through plant  May be a card, flag, verbal signal etc.  Used often with fixed-size containers  Add or remove containers to change production rate Kanban
  • 71. 72 Kinds of Kanban Two most common kanbans  production kanbans (P- Kanban)  authorizes a process to produce a fixed amount of product
  • 72. Kanban continued Transportation kanban (T- Kanban)  authorizes transporting a fixed amount of product downstream
  • 73. Kanban Signals “Pull” Material Through the Process
  • 75. SMED Examples Split thread bolts Handles Toggle clamps U-shaped washers
  • 76. Reduce the amount of turns required in order to activate the screw. 05/30/10 26
  • 77. Cellular Manufacturing Dividing the manufacture of products into semi-autonomous and multi-skilled teams known as work cells
  • 78. CH/79 © Dr. Christian Hicks Manufacturing cells © Siemens Power Generation Systems
  • 79. CH/80 © Dr. Christian Hicks Multifunction double gantry mill © Siemens Power Generation Systems A single machine acting as a cell
  • 80. CH/81 © Dr. Christian Hicks Lean Manufacturing is a way of thinking Faurecia, Washingtong, Tyne & Wear
  • 81. CH/82 © Dr. Christian Hicks The Deming Cycle Hill, T. 2005, “Operations Management, 2nd Edition”, Palgrave Macmillan
  • 82. CH/83 © Dr. Christian Hicks Cause/effect (fishbone) diagram Hill, T. 2005, “Operations Management, 2nd Edition”, Palgrave Macmillan