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- 2. 2 OBJECTIVES Lean Production Defined TheToyota Production System Lean Implementation Requirements Lean Services
- 3. 3 Lean Production Lean Productioncan 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) Lean Production also involves the elimination of waste in production effort Lean Production also involves the timing of production resources (i.e., parts arrive at the next workstation “just in time”)
- 4. 4 Here the customerstarts Here the customer starts the process, pulling an the process, pulling an inventory item from inventory item from Final Assembly… Final Assembly… Then subThen subassembly work is assembly work is pulled forward by pulled forward by that demand… that demand… Customers Pull System Mfg. Mfg. Vendor Mfg. Vendor Mfg. Vendor Sub Final Assembly The process continues The process continues throughout the entire throughout the entire production process and production process and supply chain supply chain Vendor Sub
- 5. The Toyota Production System Basedon two philosophies: 1. Elimination of waste 2. Respect for people 5
- 6. 6 The Seven Wastes Overproduction:Producing more than the demand for customers resulting in unnecessary inventory, handling, paperwork, and warehouse space. Waiting Time: Operators and machines waiting for parts or work to arrive from suppliers or other operations. Transportation: Double or triple movement of materials due to poor layouts, lack of coordination and workplace organization. Processing: Poor design or inadequate maintenance or processes requiring additional labor or machine time. Inventory: Excess inventory due to large lot sizes, obsolete items, poor forecasts or improper production planning. Motion: Wasted movements of people or extra walking to get materials. Defects: Use of materials, labor and capacity for production of defects, sorting out bad parts or warranty costs with customers.
- 7. Elimination of Waste 1. Focusedfactory networks 2. Group technology (Cellular) 3. Quality at the source 4. JIT production 5. Uniform plant loading 6. Kanban production control system 7. Minimized setup times 7
- 8. Minimizing Waste: Focused Factory Networks Coordination System Integration 8 Theseare small specialized These are small specialized plants that limit the range plants that limit the range of products produced of products produced (sometimes only one type of (sometimes only one type of product for an entire product for an entire facility) facility) Some plants in Some plants in Japan have as Japan have as few as 30 and as few as 30 and as many as 1000 many as 1000 employees employees
- 9. Minimizing Waste: GroupTechnology (Part 9 1) Note how the flow lines are going back and forth Note how the flow lines are going back and forth Using Departmental Specialization for plant layout can cause a Using Departmental Specialization for plant layout can cause a lot of unnecessary material movement lot of unnecessary material movement Saw Saw Saw Grinder Grinder Heat Treat Lathe Lathe Lathe Press Press Press
- 10. 10 Minimizing Waste: Group Technology(Part 2) Revising by using Group Technology Cells can reduce movement Revising by using Group Technology Cells can reduce movement and improve product flow and improve product flow Grinder Saw 1 2 Lathe Lathe Press Lathe Press Heat Treat Grinder Saw Lathe A B
- 11. 11 Minimizing Waste: Uniform PlantLoading (heijunka) Suppose we operate a production plant that produces a single Suppose we operate a production plant that produces a single product. The schedule of production for this product could be product. The schedule of production for this product could be accomplished using either of the two plant loading schedules accomplished using either of the two plant loading schedules below. below. Not uniform Jan. Units Feb. Units Mar. Units Total 1,200 3,500 4,300 9,000 or Uniform Jan. Units Feb. Units Mar. Units Total 3,000 3,000 3,000 9,000 How does the uniform loading help save labor costs? How does the uniform loading help save labor costs?
- 12. Minimizing Waste: Inventory HidesProblems Machine downtime Scrap Work in process queues (banks) Paperwork backlog Vendor delinquencies Change orders Engineering design redundancies Inspection backlogs Example: By identifying defective items from a vendor early in the production process the downstream work is saved Design backlogs Decision backlogs 12 Example: By identifying defective work by employees upstream, the downstream work is saved
- 13. 13 Minimizing Waste: Kanban ProductionControl Systems Once the Production kanban is received, the Machine Center produces a unit to replace the one taken by the Assembly Line people in the first place Machine Center Withdrawal kanban Storage Part A Production kanban The process begins by the Assembly Line people pulling Part A from Storage Storage Part A This puts the system back where it was before the item was pulled Assembly Line Material Flow Card (signal) Flow
- 14. 14 Respect for People •Level payrolls • Cooperative employee unions • Subcontractor networks • Bottom-round management style • Quality circles (Small Group Involvement Activities or SGIA’s)
- 15. Toyota Production System’s FourRules 1. All work shall be highly specified as to content, sequence, timing, and outcome 2. Every customer-supplier connection must be direct, and there must be an unambiguous yesor-no way to send requests and receive responses 3. The pathway for every product and service must be simple and direct 4. Any improvement must be made in accordance with the scientific method, under the guidance of a teacher, at the lowest possible level in the organization 15
- 16. Lean Implementation Requirements: DesignFlow Process • Link operations • Balance workstation capacities • Redesign layout for flow • Emphasize preventive maintenance • Reduce lot sizes • Reduce setup / changeover time 16
- 17. Lean Implementation Requirements: TotalQuality Control • Worker responsibility • Measure SQC • Enforce compliance • Fail-safe methods • Automatic inspection 17
- 18. Lean Implementation Requirements: Stabilize Schedule •Level schedule • Underutilize capacity • Establish freeze windows 18
- 19. 19 Lean Implementation Requirements: Kanban-Pull •Demand pull • Backflush • Reduce lot sizes
- 20. Lean Implementation Requirements: Workwith Vendors • Reduce lead times • Frequent deliveries • Project usage requirements • Quality expectations 20
- 21. Lean Implementation Requirements: Reduce Inventory •Look for other areas • Stores • Transit • Carousels • Conveyors 21
- 22. Lean Implementation Requirements: ImproveProduct Design • Standard product configuration • Standardize and reduce number of parts • Process design with product design • Quality expectations 22
- 23. Lean Implementation Requirements: Concurrently SolveProblems • Root cause • Solve permanently • Team approach • Line and specialist responsibility • Continual education 23
- 24. 24 Lean Implementation Requirements: Measure Performance •Emphasize improvement • Track trends
- 25. 25 Value Stream Mapping •A method of visually mapping a product's production path (materials and information) from "door to door". • Value stream is all the actions (both value added and non-value added) currently required to bring a product through the main flows essential to every product:
- 26. 26 Value Stream Mapping( Contd) ValueStream Mapping; • helps to visualize more than just the single-process level more than waste • helps seeyour value stream - it helps see the sources of waste in • provides a common language for talking about manufacturing processes
- 27. 27 Value Stream Mapping (contd.) •ties together lean concepts and techniques • forms the basis of an implementation plan • shows the linkage between the information flow and the material flow • is much more useful than quantitative tools and layout diagrams that produce a tally of non-value added steps, lead time, distance traveled, the amount of inventory, and so on.
- 28. Lean in Services (Examples) •Organize Problem-Solving Groups • Upgrade Housekeeping • Upgrade Quality • Clarify Process Flows • Revise Equipment and Process Technologies 28
- 29. Lean in Services (Examples) •Level the Facility Load • Eliminate Unnecessary Activities • Reorganize Physical Configuration • Introduce Demand-Pull Scheduling • Develop Supplier Networks 29
- 30. 30 Question Bowl Lean Productionseeks to achieve high volume production using which of the following? a. Minimal inventory of raw materials b. Minimal inventory of work-in-process c. Minimal inventory of finished goods d. All of the above e. None of the above Answer: d. All of the above
- 31. 31 Question Bowl In theToyota Production System, the “elimination of waste” involves which of the following? a. Overproduction b. Waiting time c. Transportation d. All of the above e. None of the above Answer: d. All of the above
- 32. 32 Question Bowl In thePull System the partner that begins the process of “pulling” is which of the following? a. Customers b. Vendors c. Fabrication personnel d. CEO e. All of the above Answer: a. Customer
- 33. 33 Question Bowl A LeanProduction program requires which of the following? a. Employee participation b. Total quality control c. Small lot sizes d. Continuing improvement e. All of the above Answer: e. All of the above (Also included in Industrial engineering/basics)
- 34. 34 Question Bowl Inventory hasbeen known to hide which of the following production problems? a. Scrap b. Vendor delinquencies c. Decision backlogs d. All of the above e. None of the above Answer: d. All of the above
- 35. 35 Question Bowl You wantto determine how many kanban card sets you need for an operation. You find that average number of units demanded is 1,000 per hour, the lead time to replenish the order for this item is 10 hours, the container size is 10 units, and the safety stock is estimated to be 5% of the expected demand. Which of the following is the desired number of kanban card sets? a. 1050 b. 1000 c. 605 d. 500 e. None of the above Answer: a. 1050 ([1000x10](1+0.05)/10=1050)
- 36. 36 Question Bowl When tryingto implement Lean system a “stabilized schedule” includes which of the following? a. Demand pull b. Backflush c. Fail-safe methods d. All of the above e. None of the above Answer: e. None of the above (These include: level schedule, underutilization capacity, and establish freeze windows.)