Production & materials management
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This document discusses production management techniques for controlling waste and inventory, including Just-in-Time (JIT) and Material Requirements Planning (MRP). It provides overviews of JIT principles and advantages/disadvantages. Key JIT tools covered are Kanban, SMED, Jidoka, Pokayoke. The document also explains concepts of Kaizen, Gemba Kaizen, PDCA cycle and provides a case study comparison of JIT versus MRP.
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Production & materials management
- 1. Production & Materials Management Recent Methods To Control Waste & MRP
- 3. Just In Time • Developed By Kiichiro Toyoda • This Is a Technique From TQM Process • It is a waste control Method Not A Inventory Control Technique • Strives for reduced Setup time and Small Lot sizes • Includes Zero defect, worker centric quality control
- 4. Advantages Of JIT 1. Investment is reduced 2.Quality is Improved 3. Reduces the non-value added activities, hence reduces overall process time 4. Administrative efficiency 5. Reduction in Buffer Inventories
- 5. Disadvantages Of JIT • There is little room for mistakes as minimal stock is kept for re-working faulty product • Production is very reliant on suppliers and if stock is not delivered on time, the whole production schedule can be delayed • There is no spare finished product available to meet unexpected orders, because all product is made to meet actual orders.
- 6. Waste Reduction Using JIT
- 7. Techniques Used In JIT 1. Kanban 2. Grouping Technology 3. SMED(Single Digit Minute Exchange Die) 4. Jidoka(automation) 5. TPM(Total Productive Maintenance) 6. Pokayoke
- 8. Kanban • Developed By Taiichi Ohno at TOYOTA • Kanban cards-signals the need for movement of materials • A Red Card Lying in an empty part conveys that more parts are needed • Three Bin System
- 9. SMED
- 10. Jidoka The term JIDOKA is simply applied to a machine that moves on its own Jidoka refers to "automation with a human touch," as opposed to a machine that simply moves under the monitoring and supervision of an operator Since the loom stops when a problem arises, no defective products are produced.
- 11. Pokayoke The concept was formalized and adopted by Shigeo Shingo as part of the Toyota production System A simple distraction to worker can lead to a work being done wrong The basic principle of Pokayoke is developing techniques which makes it difficult for people to make mistakes.
- 12. Case Study • Larry Ficarra an engineer with Varian Ion Implant Systems, was assembling a vacuum chamber for a 10,000-component particle accelerator used in microprocessor production. • A guide pin near an O-ring surface was supposed to go into a hole to ensure proper alignment of critical components. The part with the pin was so bulky it required a little juggling before the pin found the hole. • Everything seemed to be working well, but on start up, the critical assembly would not hold a vacuum.
- 13. Case Study • Ficarra discovered that while trying to get the pin into the hole, he had inadvertently scratched the O-ring surface which prevented the chamber from holding a vacuum. • He discovered that Japanese refer to mistake proofing as poka-yoke and think of it as their first defense against defects. • The pin may contact the elastomer O-ring, but the complaint O-ring resists damage. • Ficarra says the scratched –surface error has not happened since.
- 14. KAIZEN • Kai - to modify or change • Zen - to think about making good or better • Masaaki Imai: Kaizen - “a means of continuing improvements in personal life, home life, social life, and working life” • Focus on gradual and continuous improvement
- 15. PDCA CYCLE • In the beginning, any new workplace is unstable. • PDCA is followed during improvement activities in management • The Plan-Do-Check -Act is the first step in the kaizen process. • Plan: Establish a target for improvement and the way to achieve the required result after improvement • Do: Implement the plan • Check: Determine whether the implementation is still on track and is on its course to bring about the desired improvement • • Act: perform and standardize the new procedures to eliminate reversal of the improvement process.
- 16. Kaizen Case Study • Nissan introduced Welding Robots in 1973 • After Implementation of kaizen their work time per unit had been cut by 60 percent and increased overall production efficiency by 20 percent • It was achieved through a series of kaizen programs that cut time by as little as half a second
- 17. Gemba Kaizen • Gemba means work place • Gemba-kaizen is a process of continuous improvement at workplace • The emphasis is on improvement on shop floor • This can be achieved only if Group works in good Coordination.
- 19. Material Requirement Planning • Material requirements planning (MRP) is a production planning and inventory control system used to manage manufacturing processes. Most MRP systems are software-based.
- 20. MRP Structure Output Reports Purchase Request Management Reports Production Orders Purchase advice Exception reports Order early or late or not needed Order quantity too small or too large BOM Management Policy Inventory data
- 21. Inputs Of MRP • Master Scheduling • Bill Of Materials • Inventory Records
- 22. Bill Of Material • Structured list of all the materials required for producing finished product • On the basis of production requirement Bill Of Material extrapolates the requirement for raw materials and components
- 23. Bill Of material
- 24. Advantages Of MRP 1. Better response to customer orders 2. Faster response to market changes 3. Improved utilization of facilities and labor 4. Reduced inventory levels
- 25. Problems In MRP Implementation • Need of high level of Discipline • No manual Intervention is allowed • The procedures in the company have to be clear • Cost of software is high
- 26. Hubbell Lighting Case Study • Manufactures Industrial Lighting Products • Good-Quality Products • Poor at Meeting Due Dates • Work is specialized for Each customer • Complex Products
- 27. Hubbell Lighting Case Study Before MRP Implementation • Less Than 75% of Orders completed on time After MRP Implementation • 97% of orders completed on time • 2% of orders completed with 1 or 2 days after due date
- 28. Conclusion MRP focuses on the future, while JIT does not provide for forward-thinking. The JIT system is a dynamically linked system, that is better applied for short lead times, while MRP is not linked, and is suited for long lead times. The JIT system enhances the value of processes, MRP will give you more control
Editor's Notes
- Animated 3-D cube with changing pictures(Basic)Tip: This example uses six pictures grouped in four sets of three, so that during the animation, various pictures appear on the cube.To reproduce the effects on this slide, do the following:On the Home tab, in the Slides group, click Layout, and then click Blank.On the Insert tab, in the Illustrations group, clickPicture. In the Insert Picture dialog box, select a picture, and then click Insert.Select the picture. Under PictureTools, on the Format tab, in the Size group, click the Size and Position dialog box launcher. In the Format Picture dialog box, resize or crop the image so that the height is set to 3.42” and the widthis set to 3.42”. To crop the picture, click Crop in the left pane, and in the Crop pane, under Crop position, enter values into the Height, Width, Left, and Top boxes. To resize the picture, click Size in the left pane, and in the right pane, under Size and rotate, enter values into the Height and Width boxes.Under PictureTools , on the Format tab, in the Picture Styles group, in the bottom right corner click the Format Shape dialog box launcher. In theFormat Picture dialog box, in the left pane, click 3-D Format, and then in the 3-D Format pane, under Bevel, in the Top section, do the following:Click the button next to Top and then selectConvex (second row, third from the left)In the Width box, enter6 pt.In the Height box, enter6 pt.Also in the Format Shape dialog box, in the left pane, click Line Color, and then in the Line Color pane, do the following:ClickSolid line.Click the button next to Color, and then click MoreColors. In the Colors dialog box, on the Custom tab, enter Red:8, Green: 18, Blue:31.Alsoin theFormat Shape dialog box, in the left pane, click Line Style, and then in the Line Style pane, in Width box, enter0.75 pt.To reproduce two additional pictures and the cube, do the following:Select the picture on the slide. On the Home tab, in the Clipboard group, click the arrow next to Copy, and then click Duplicate.Repeat this step again for a total of three pictures. Position the pictures on the slide so that each one is visible.Select one of the duplicate pictures.Under Picture Tools, on the Format tab, in the Adjust group, click Change Picture. In the Insert Picture dialog box, select a picture, and then click Insert.Select the picture. Under PictureTools, on the Format tab, in the Size group, click the Size and Position dialog box launcher. In the Format Picture dialog box, resize or crop the image so that the height is set to 3.42” and the widthis set to 3.42”. To crop the picture, click Crop in the left pane, and in the Crop pane, under Crop position, enter values into the Height, Width, Left, and Top boxes. To resize the picture, click Size in the left pane, and in the right pane, under Size and rotate, enter values into the Height and Width boxes.Repeat steps 1 -3 to reproduce another picture. Select the picture that will appear on the top of the cube. Under Picture Tools, on the Format tab, in the Picture Styles group, click Picture Effects, point to 3-D Rotation, and then under Parallel, click Off Axis 1 Top (second row, third option from the left).Select the picture that will appear on the left side of the cube. Under Picture Tools, on the Format tab, in the Picture Styles group, click Picture Effects, point to 3-D Rotation, and then under Parallel, click Off Axis 1 Left (second row, first option from the left).Select the picture that will appear on the right side of the cube. Under Picture Tools, on the Format tab, in the Picture Styles group, click Picture Effects, point to 3-D Rotation, and then under Parallel, click Off Axis 1 Right (second row, second option from the left).Drag the pictures on the slide to create a cube. The edges of each picture may not line up exactly. To align the pictures as closely as possible, on the View tab, click Zoom. In the Zoom dialog box, click 400%, and then drag the pictures on the slide. Tip: To help more precisely place the pictures, select the picture that you want to move, then hold down the CTRL key and use the keyboard direction arrow keys.Press and hold SHIFT and select all three pictures on the slide. On the Home tab, in the Drawing group, click Arrange, and then click Group. On the Home tab, in the Editing group, click Select, and then click Selection Pane. Edit the name of the group in the Selection and Visibility pane, by double-clicking the group and then entering Cube Group.To reproduce the shadow effects on this slide, do the following:On the Home tab, in the Drawing group, click Shapes, and then under Rectangles click Rectangle (first option from the left). On the slide, drag to draw a rectangle. Select the rectangle. Under DrawingTools, on theFormat tab, in the Size group, do the following:In the Shape Height box, enter 3.42”.In the Shape Width box, enter 3.42”.On the Home tab, in the Drawing group, click the arrow next to Shape Fill, and then under Theme Colors click White, Text 1 (first row, second option from the left).On the Home tab, in the Drawing group, click the arrow next to Shape Outline, and then click No Outline. On the Home tab, in the bottom right corner of the Drawing group, click the Format Shape dialog box launcher. In the Format Shape dialog box, click 3-D Rotation in the left pane. In the 3-D Rotation pane, click the button next to Presets, and then under Parallel click Off Axis 1 Top (second row, third option from the left).Also in the Format Shape dialog box, click Shadow in the left pane, and then do the following in the Shadow pane: Click the button next to Presets, and then under Perspective click Below (first row, third option from the left).In the Transparency box, enter 72%.In the Size box, enter 110%.In the Blur box, enter 41 pt. In the Angle box, enter 115°.In the Distance box, enter 111 pt. On the Home tab, in the Drawing group, click Arrange, and then click Send to Back. Drag the rectangle under the cube so that it looks like the cube is floating.On the Home tab, in the Editing group, click Select, and then click Selection Pane. In the Selection and Visibility pane, press and hold CTRL and select both Cube Group and the rectangle. On the Home tab, in the Drawing group, click Arrange, and then do the following:Click Group.Point to Align, and then click Align to Slide.Point to Align, and then click Align Center.Point to Align, and then click Align Middle.To reproducethe animation effects on this slide, do the following:Select the cube.On the Home tab, in the Drawing group, Clipboard group, click the arrow next to Copy, and then click Duplicate.Clickone of the pictures in the new group of pictures and under Picture Tools, on the Format tab, in the group, click ChangePicture. In the Insert Picture dialog box, select another picture and click Insert. If necessary resize the picture – under PictureTools, on the Format tab, in the Size group, click the Size and Position dialog box launcher. In the Format Picture dialog box, resize or crop the image so that the height is set to 3.42” and the widthis set to 3.42”. To crop the picture, click Crop in the left pane, and in the Crop pane, under Crop position, enter values into the Height, Width, Left, and Top boxes. To resize the picture, click Size in the left pane, and in the right pane, under Size and rotate, enter values into the Height and Width boxes.Right-clickanother picture in the new group of pictures and repeat step 2.Note: If necessary, reposition the new pictures so they form a cube.Select the second cube. On the Animations tab, in the Animations group gallery of animation effects, under Entrance,click Fade.In the Animation Pane, click the arrow next to the animation, and then click Timing. In the Fade dialog box, on the Timing tab, in the Delay box, enter 0.5 seconds, and then click OK.Select both cubes. On the Home tab, in the Drawing group, click the arrow below Arrange, and under PositionObjects, point toAlign, and do the following:SelectAlignCenter.SelectAlignMiddle.Repeat steps 1 through 6 two more times to reproduce the third and fourth cube, which improves the animation effect.To reproduce the background effects on this slide, do the following:On the Design tab, in the Background group, click BackgroundStyles, and then select Style 8 (second row, fourth from the left). Note: If this action is taken in a PowerPoint presentation containing more than one slide, the background style will be applied to all of the slides.
- A real business example: Dell Computer CorporationIn this company an order for a customized personal computer that comes in over the internet at 9 am, can be on a delivery truck to the customer by 9 p.m. In addition, Dell’s low cost production system allows it to under price its rivals by 10% to 15%. How does the company’s just in time system deliver lower costs? While machines from Compaq and IBM can languish on dealer shelves for two months Dell does not start ordering components and assembling computers until an order is booked. By ordering right before assembly, Dell figures it s parts, on average, are 60 days newer than those in an IBM or Compaq machine. That can translate into a 6% profit advantage in components alone.
- Just-in-time manufacturing system is vulnerable to unexpected disruptions in supply chain. A production line can quickly come to a halt if essential parts are unavailable. Toyota, the developer of JIT, found this out the hard way. One Saturday, a fire at Aisin Seiki Company’s plant stopped the delivery of all break parts to Toyota. By Tuesday, Toyota had to close down all of its Japanese assembly line. By the time the supply of break parts had been restored, Toyota had lost an estimated $15 billion in sales.
- This diagram shows four successive runs with learning from each run and improvements applied before the next. Run 1 illustrates the original situation. Run 2 shows what would happen if more changeovers were included. Run 3 shows the impact of the improvements in changeover times that come from doing more of them and building learning into their execution. Run 4 shows how these improvements can get you back to the same production time but now with more flexibility in production capacity. Run N (not illustrated) would have changeovers that take 1.5 minutes (97% reduction) and whole shift time reduced from 420 minutes to 368 minutes a productivity improvement of 12%
- Plan to improve your operations first by finding out what things are going wrong (that is identify the problems faced), and come up with ideas for solving these problems.Do changes designed to solve the problems on a small or experimental scale first. This minimises disruption to routine activity while testing whether the changes will work or not.Check whether the small scale or experimental changes are achieving the desired result or not. Also, continuously Check nominated key activities (regardless of any experimentation going on) to ensure that you know what the quality of the output is at all times to identify any new problems when they crop up.Act to implement changes on a larger scale if the experiment is successful. This means making the changes a routine part of your activity.
- An example of kaizen's effectiveness is Nissan's experience with welding robots. First introduced in 1973, within a decade their use had cut work time per unit by 60 percent and increased overall production efficiency by 20 percent. These gains were achieved through a series of kaizen programs that searched out improvements that cut time by as little as half a second. The programs, initiated within three to six months of one another, formed a staircase, each step occasioning a brief period of stability before the next rose, inexpensively, a little above it.The logic of kaizen is that breakthroughs result not from massive reorganizations or large-scale investment projects but from the cumulative effects of successive incremental improvements.
- An MRP system is intended to simultaneously meet three objectives: Ensure materials are available for production and products are available for delivery to customers. Improve plant operating Efficiency Plan manufacturing activities, delivery schedules and purchasing activities.
- A bill of materials (BoM) is a list of the parts or components that are required to build a product. The BoM provides the manufacturer's part number (MPN) and the quantity needed for each component.At its most complex, a BoM is a multi-level document that provides build data for multiple sub-assemblies (products within products) and includes for each item: part number, approved manufacturers list (AML), mechanical characteristics and a whole range of component descriptors.
- MRP takes forecasts for end product demand into account. In an environment in which substantial variation of sales are anticipatedMRP has a substantial advantageJIT reduces inventories to a minimum. In addition to reducing inventory cost, there are substantial side benefits, such as improvement in quality and plant efficiency