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1
© 2004 Superfactory™. All Rights Reserved.
Why Pull Manufacturing
2
© 2004 Superfactory™. All Rights Reserved.
Outline
 Why Pull Manufacturing?
 The Problem of Inventory
 Just In Time
 Kanban
 One Piece Flow
 Demand / Pull
 Standard Work & Takt Time
 Production Smoothing
3
© 2004 Superfactory™. All Rights Reserved.
Why Pull Manufacturing?
Lean manufacturing is really about minimizing the
need for overhead
 which is about concentrating precisely on only what
is necessary
 which is about linking interdependent supply
system decisions, and actions
 which needs to be visual, responsive and simple to
manage
4
© 2004 Superfactory™. All Rights Reserved.
Push Vs. Pull Scheduling
 Push Scheduling
• traditional approach
• “move the job on when finished”
• problems - creates excessive inventory
 Pull scheduling
• coordinated production
• driven by demand (pulled through system)
• extensive use of visual triggers
(production/withdrawal kanbans)
5
© 2004 Superfactory™. All Rights Reserved.
Scrap
Work in process inventory level
(hides problems)
Unreliable
Vendors
Capacity
Imbalances
Inventory Hides Problems
6
© 2004 Superfactory™. All Rights Reserved.
Scrap
Unreliable
Vendors
Capacity
Imbalances
WIP
Lowering Inventory Reveals Problems
Accommodate lower inventory levels by:
•Reducing variability
•Eliminating waste
•Streamlining production and material flows
•Accurate information
7
© 2004 Superfactory™. All Rights Reserved.
 Management philosophy of continuous and forced problem
solving (forced by driving inventory out of the production
system)
 Supplies and components are ‘pulled’ through system to
arrive where they are needed when they are needed.
What is Just-in-Time?
Goal: Achieve the minimal level of resources required to
add the necessary value in the production system.
8
© 2004 Superfactory™. All Rights Reserved.
Objective of JIT
 Produce only the products the customer wants
 Produce products only at the rate that the customer
wants them
 Produce with perfect quality
 Produce with minimum lead time
 Produce products with only those features the customer
wants
9
© 2004 Superfactory™. All Rights Reserved.
JIT Principles
 Create flow production
• one piece flow
• machines in order of processes
• small and inexpensive equipment
• U cell layout, counter clockwise
• multi-process handling workers
• easy moving/standing operations
• standard operations defined
10
© 2004 Superfactory™. All Rights Reserved.
 Processes are easy to understand—visible
 Quality issues are apparent immediately
 Scope of problems are limited because of lower
inventory levels
 TQM management methods are very important
Quality enables JIT
Quality of execution typically determines how
low inventories can be reduced!
11
© 2004 Superfactory™. All Rights Reserved.
How to accomplish JIT production
Concurrently
Solve Problems
-Root Cause
-Solve permanently
-Team approach
-Line and specialist
responsibiity
-Continual education
Measure Performance
-Emphasize
improvement
-Track trends
1) Design Flow Process
-Link operations
-Balance workstation
capacities
-Re-layout for flow
-Emphasize preventive
maintenance
-Reduce lot size
-Reduce setup/changeover time
7) Improve Product Design
-Standard product configuration
-Standardize and reduce
number of parts
-Process design with
product design
-Quality expectations
2) Total Quality Control
-Worker responsibility
-Measure: SQC
-Enforce compliance
-Fail-safe methods
-Automatic inspection
3) Stabilize Schedule
-Level schedule
-Underutilize capacity
-Establish freeze
windows
4) Kanban Pull
-Demand pull
-Backflush
-Reduce lot sizes
5) Work with Vendors
-Reduce lead times
-Frequent deliveries
-Project usage
requirements
-Quality expectations
6) Reduce Inventory More
-Look for other areas
-Stores
-Transit
-Carousels
-Conveyors
12
© 2004 Superfactory™. All Rights Reserved.
 Japanese word for card
 Authorizes production from downstream operations based
on physical consumption
 May be a card, flag, verbal signal, etc.
 Used often with fixed-size containers
 Kanban quantities are a function of lead-time and
consumption rate of the item being replenished (min
qty=(demand during lead-time + safety stock)/ container
quantity)
Kanban
13
© 2004 Superfactory™. All Rights Reserved.
Kanban Squares
X X X
X
X
X
Flow of work
Flow of information
14
© 2004 Superfactory™. All Rights Reserved.
Kanban Card
46-281247p1
27” Al Rim
Qty
23
Stock Loc:
RIP 1
Line Loc:
Asm. 1
Unique Part #
Description
Kanban Qty
Where to find
part when bin
is empty Where to return
filled Kanban
15
© 2004 Superfactory™. All Rights Reserved.
 For JIT & Kanban to work, quality must be high
 There can be no extra inventory to buffer against
the production or use of defective units
 Producing poor-quality items, and reworking or rejecting
them is wasteful
 The workers must be responsible for inspection &
production quality
 The philosophy is, “NEVER pass along defective item”
Quality at the Source
16
© 2004 Superfactory™. All Rights Reserved.
 A philosophy that rejects batch, lot or mass processing as
wasteful.
 States that product should move (flow) from operation to
operation, only when it is needed, in the smallest
increment.
 One piece is the ultimate (one-piece-flow)
One Piece Flow
17
© 2004 Superfactory™. All Rights Reserved.
Continuous Flow
• Line up all of the steps that truly create value so they occur
in a rapid sequence
• Require that every step in the process be:
• Capable – right every time (6 Sigma)
• Available – always able to run (TPM)
• Adequate – with capacity to avoid bottlenecks
(right-sized tools)
18
© 2004 Superfactory™. All Rights Reserved.
 Actual customer demand drives the manufacturing process.
 It creates a system of cascading production and delivery
instructions from downstream demand to upstream production in
which nothing is produced by the upstream supplier until the
downstream customer signals a need.
 The rate of production for each product is equal to the rate of
customer consumption.
Pull Production
19
© 2004 Superfactory™. All Rights Reserved.
Pull Production
• Through lead time compression & correct value
specification, let customers get exactly what’s wanted
exactly when it’s wanted:
• For the short term: Smooth pull loops to reduce
inventory
• For the near term: Make-to-order with rapid response
time
• For the long term: Diagnostics and prognostics in a
stable relationship to take out the surprises for
consumers and producers
20
© 2004 Superfactory™. All Rights Reserved.
Pull System
Sub
Sub
Fab
Fab
Fab
Fab
Customers Final Assy
Vendor
Vendor
Vendor
Vendor
....
Production
Schedule
Leveled assembly
instructions
A
A
C
A
B
Vendor

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Why Pull Manufacturing.ppt

  • 1. 1 © 2004 Superfactory™. All Rights Reserved. Why Pull Manufacturing
  • 2. 2 © 2004 Superfactory™. All Rights Reserved. Outline  Why Pull Manufacturing?  The Problem of Inventory  Just In Time  Kanban  One Piece Flow  Demand / Pull  Standard Work & Takt Time  Production Smoothing
  • 3. 3 © 2004 Superfactory™. All Rights Reserved. Why Pull Manufacturing? Lean manufacturing is really about minimizing the need for overhead  which is about concentrating precisely on only what is necessary  which is about linking interdependent supply system decisions, and actions  which needs to be visual, responsive and simple to manage
  • 4. 4 © 2004 Superfactory™. All Rights Reserved. Push Vs. Pull Scheduling  Push Scheduling • traditional approach • “move the job on when finished” • problems - creates excessive inventory  Pull scheduling • coordinated production • driven by demand (pulled through system) • extensive use of visual triggers (production/withdrawal kanbans)
  • 5. 5 © 2004 Superfactory™. All Rights Reserved. Scrap Work in process inventory level (hides problems) Unreliable Vendors Capacity Imbalances Inventory Hides Problems
  • 6. 6 © 2004 Superfactory™. All Rights Reserved. Scrap Unreliable Vendors Capacity Imbalances WIP Lowering Inventory Reveals Problems Accommodate lower inventory levels by: •Reducing variability •Eliminating waste •Streamlining production and material flows •Accurate information
  • 7. 7 © 2004 Superfactory™. All Rights Reserved.  Management philosophy of continuous and forced problem solving (forced by driving inventory out of the production system)  Supplies and components are ‘pulled’ through system to arrive where they are needed when they are needed. What is Just-in-Time? Goal: Achieve the minimal level of resources required to add the necessary value in the production system.
  • 8. 8 © 2004 Superfactory™. All Rights Reserved. Objective of JIT  Produce only the products the customer wants  Produce products only at the rate that the customer wants them  Produce with perfect quality  Produce with minimum lead time  Produce products with only those features the customer wants
  • 9. 9 © 2004 Superfactory™. All Rights Reserved. JIT Principles  Create flow production • one piece flow • machines in order of processes • small and inexpensive equipment • U cell layout, counter clockwise • multi-process handling workers • easy moving/standing operations • standard operations defined
  • 10. 10 © 2004 Superfactory™. All Rights Reserved.  Processes are easy to understand—visible  Quality issues are apparent immediately  Scope of problems are limited because of lower inventory levels  TQM management methods are very important Quality enables JIT Quality of execution typically determines how low inventories can be reduced!
  • 11. 11 © 2004 Superfactory™. All Rights Reserved. How to accomplish JIT production Concurrently Solve Problems -Root Cause -Solve permanently -Team approach -Line and specialist responsibiity -Continual education Measure Performance -Emphasize improvement -Track trends 1) Design Flow Process -Link operations -Balance workstation capacities -Re-layout for flow -Emphasize preventive maintenance -Reduce lot size -Reduce setup/changeover time 7) Improve Product Design -Standard product configuration -Standardize and reduce number of parts -Process design with product design -Quality expectations 2) Total Quality Control -Worker responsibility -Measure: SQC -Enforce compliance -Fail-safe methods -Automatic inspection 3) Stabilize Schedule -Level schedule -Underutilize capacity -Establish freeze windows 4) Kanban Pull -Demand pull -Backflush -Reduce lot sizes 5) Work with Vendors -Reduce lead times -Frequent deliveries -Project usage requirements -Quality expectations 6) Reduce Inventory More -Look for other areas -Stores -Transit -Carousels -Conveyors
  • 12. 12 © 2004 Superfactory™. All Rights Reserved.  Japanese word for card  Authorizes production from downstream operations based on physical consumption  May be a card, flag, verbal signal, etc.  Used often with fixed-size containers  Kanban quantities are a function of lead-time and consumption rate of the item being replenished (min qty=(demand during lead-time + safety stock)/ container quantity) Kanban
  • 13. 13 © 2004 Superfactory™. All Rights Reserved. Kanban Squares X X X X X X Flow of work Flow of information
  • 14. 14 © 2004 Superfactory™. All Rights Reserved. Kanban Card 46-281247p1 27” Al Rim Qty 23 Stock Loc: RIP 1 Line Loc: Asm. 1 Unique Part # Description Kanban Qty Where to find part when bin is empty Where to return filled Kanban
  • 15. 15 © 2004 Superfactory™. All Rights Reserved.  For JIT & Kanban to work, quality must be high  There can be no extra inventory to buffer against the production or use of defective units  Producing poor-quality items, and reworking or rejecting them is wasteful  The workers must be responsible for inspection & production quality  The philosophy is, “NEVER pass along defective item” Quality at the Source
  • 16. 16 © 2004 Superfactory™. All Rights Reserved.  A philosophy that rejects batch, lot or mass processing as wasteful.  States that product should move (flow) from operation to operation, only when it is needed, in the smallest increment.  One piece is the ultimate (one-piece-flow) One Piece Flow
  • 17. 17 © 2004 Superfactory™. All Rights Reserved. Continuous Flow • Line up all of the steps that truly create value so they occur in a rapid sequence • Require that every step in the process be: • Capable – right every time (6 Sigma) • Available – always able to run (TPM) • Adequate – with capacity to avoid bottlenecks (right-sized tools)
  • 18. 18 © 2004 Superfactory™. All Rights Reserved.  Actual customer demand drives the manufacturing process.  It creates a system of cascading production and delivery instructions from downstream demand to upstream production in which nothing is produced by the upstream supplier until the downstream customer signals a need.  The rate of production for each product is equal to the rate of customer consumption. Pull Production
  • 19. 19 © 2004 Superfactory™. All Rights Reserved. Pull Production • Through lead time compression & correct value specification, let customers get exactly what’s wanted exactly when it’s wanted: • For the short term: Smooth pull loops to reduce inventory • For the near term: Make-to-order with rapid response time • For the long term: Diagnostics and prognostics in a stable relationship to take out the surprises for consumers and producers
  • 20. 20 © 2004 Superfactory™. All Rights Reserved. Pull System Sub Sub Fab Fab Fab Fab Customers Final Assy Vendor Vendor Vendor Vendor .... Production Schedule Leveled assembly instructions A A C A B Vendor