JUST-IN-TIME AND LEAN PRODUCTION

Contents 1 2 3 4 ABSTRACT INTRODUCTION LIST OF FIGURE LEAN MANUFACTURING 4.1 4.2 4.3 4.4 4.5
4.6

What is Lean Manufacturing Definition The 3 Ms of Lean The 5 Ss of Lean Who Uses Lean Manufacturing? Why do organizations want to use lean manufacturing techniques? Lean manufacturing techniques focus on: How do you sustain lean manufacturing techniques? The Five Steps of Lean Implementation

4.7
4.8

4.9
5

TOYOTA PRODUCTION SYSTEM (TPS) 5.1

5.2

Brief History
What is TPS?-Quick Definition

5.3
5.4 5.5 5.6

Expanded Definition
How Can TPS Help Organization?

Problems of Toyota Production System Conclusion

JUST-IN-TIME (JIT) 6.1 6.2 6.3 6.4 What is Just-In-Time? (JIT) Planning for JIT Defining the Planning Basic objectives 6.4.1 Integrating and optimizing every step of the manufacturing process 6.4.2 6.4.3 6.4.4 6.4.5 Producing quality product Reducing manufacturing cost Producing product on demand Developing manufacturing flexibility

6.4.6 Keeping commitments and links made between customers and suppliers 6.5 6.6 6.7 What Just-In-Time means to materials management Push and Pull Manufacturing Kanban 6.7.1 How to implement kanban 6.7.2 Responsive of Kanban to customers
6.7.3 Continual Improvement of Just In Time 6.7.4 Benefits of implementation of Kanban

6.8 6.9

Time Waste and Just-In-Time Machine Setup Time and the SMED System

6.10 Conclusion

AUTONOMATION What is Autonomation Purpose and implementation The Role of Autonomation 7 AGILE MANUFACTRING 7.1
7.2

What is Agile Manufacturing? Market Forces Reorganizing the Production System for Agility Managing Relationship for Agility Agility versus Mass Production Issues and Problems of Agile Manufacturing Future Development of Agile Manufacturing Conclusion

7.3 7.4 7.5 7.6 7.7 7.8 8 9

LITERATURE REVIEW METHODOLOGY

10 RESULT AND DISCUSSION 11 CONCLUSION 12 REFERENCE 13 APPENDICES

1. ABSTRACT

This report is discussed about the Just-In-Time (JIT), lean production and agile manufacturing that applied in the manufacturing industries. We have search from the internet and book about the history and the origin place of JIT, lean production and agile manufacturing. Besides, what this manufacturing system is all about also had been search from internet and book. We have done some search from internet and book why industries are using this manufacturing system and its pro and con to the companies that using that system. After searching all this information; we have understood these three titles. Then, we have a discussion to discuss what we have found and understood. In general, the first production system that been used is Mass production. It is the production of large amounts of standardized products on production lines and it was popularized by Henry Ford in the early 20th century, notably in his Ford Model T. Then, the Japanese manufacturing industry introduced Lean manufacturing after spent years analyzing a system that eliminate unnecessary waste. Lean Manufacturing is an operational strategy oriented toward achieving the shortest possible cycle time by eliminating waste.The US industry enters to a new manufacturing system, which is called Agile manufacturing to restore their competitiveness after Japanese introduced Lean. Agile is a term applied to an organization that has created the processes, tools, and training to enable it to respond quickly to customer needs and market changes while still controlling costs and quality.

2. LIST OF FIGURE

Figure 4.1 4.2 6.1 6.2 6.3 6.4 6.5

Title Early definition of Lean.

Page

Global view of the Just-In-Time system Build schedule and materials flow in a push system. Build schedule and materials flow in a pull system. Production Kanban Withdrawal Kanban

3. INTRODUCTION Since the 1950s the manufacturing industries have been dominated by the paradigm of mass production, which has led to enormous wealth creation and supported an ever increasing standard of living. But there has been a price to pay for this prosperity. As the US factories became geared up to producing large volumes of low variety and low cost product, they became inflexible and lost the capability to respond to rapid shifts in market conditions. This was not a problem, as long as everyone was playing the same mass production game, but it is now clear that Japanese competitors were not playing this game. Over an extended period the Japanese developed own manufacturing paradigm, what today we call lean manufacturing. Lean manufacturing is a comprehensive term referring to manufacturing methodologies based on maximizing value and minimizing waste in the manufacturing process.

Lean manufacturing was not developed overnight. The Japanese gradually worked away at the development of their manufacturing paradigm, with companies like Toyota acting as pioneers, in much the same way that Ford pioneered mass production. As the lean manufacturing paradigm became established in Japan, it was generating competitive edge for the US and European industry, which still using mass production. If US and European industry want to adopt lean manufacturing, it can only be a short term measure aimed at doing something to close the competitive gap with Japanese industry. Then, the US and European industry introduce the agile manufacturing to catch up with and overtake the Japanese. Agile manufacturing is primarily a business concept. Its aim is quite simple-to put the US enterprises way out in front of the Japanese industry, the US industry competitors. In agile manufacturing, the aim is to combine the organization, people and technology into an integrated and coordinated whole.

4. LEAN MANUFACTURING Lean manufacturing or lean production are reasonably new terms that can be traced to Jim Womack, Daniel Jones and Daniel Roos book, The Machine that changed the world [1991]. In the book, the authors examined the manufacturing activities exemplified by the Toyota Production System. Lean manufacturing is the systematic

elimination of waste. As the name implies, lean is focused at cutting fat from production activities. It has also been successfully applied to administrative and engineering activities as well. Although lean manufacturing is a relatively new term, many of the tools used in lean can be traced back to Fredrick Taylor and the Gilbreaths at the turn of the 20th century. What Lean has done is to package some well-respected industrial/manufacturing engineering practices into a system that can work in virtually any environment.

4.1 What is Lean Manufacturing? In its most basic form, lean manufacturing is the systematic elimination of waste from all aspects of an organizations operations, where waste is viewed as any use or loss of resources that does not lead directly to creating the product or service a customer wants when they want it. In many industrial processes, such non-value added activity can comprise more than 90 percent of a factorys total activity. Nationwide, numerous companies of varying size across multiple industry sectors, primarily in the manufacturing and service sectors are implementing such lean production systems, and experts report that the rate of lean adoption is accelerating. Companies primarily choose to engage in lean manufacturing for three reasons: to reduce production resource requirements and costs; to increase customer responsiveness; and to improve product quality, all which combine to boost company profits and competitiveness. To help accomplish these improvements and associated waste reduction, lean involves a fundamental paradigm shift from conventional batch and queue mass production to

product-aligned one-piece flow pull production. Whereas batch and queue involves mass production of large lots of products in advance based on potential or predicted customer demands, a one-piece flow system rearranges production activities in a way that processing steps of different types are conducted immediately adjacent to each other in a continuous flow.

4.2 Definition Lean production is an assembly-line manufacturing methodology developed originally for Toyota and the manufacture of automobiles. It is also known as the Toyota Production System. The goal of lean production is described as "to get the right things to the right place at the right time, the first time, while minimizing waste and being open to change". Engineer Ohno, who is credited with developing the principles of lean production, discovered that in addition to eliminating waste, his methodology led to improved product flow and better quality. Instead of devoting resources to planning what would be required for future manufacturing, Toyota focused on reducing system response time so that the production system was capable of immediately changing and adapting to market demands. In effect, their automobiles became made-to-order. The principles of lean production enabled the company to deliver on demand, minimize inventory, maximize the use of multi-skilled employees, flatten the management structure, and focus resources where they were needed.

During the 1980s, the set of practices summarized in the ten rules of lean production were adopted by many manufacturing plants in the U.S. and Europe. The management style was tried out with varying degrees of success by service organizations, logistics organizations and supply chains. Since the demise of many dot.coms, there has been a renewed interest in the principles of lean production, particularly since the philosophy encourages the reduction of inventory. Dell Computers and Boeing Aircraft have embraced the philosophy of lean production with great success. The ten rules of lean production can be summarized: 1. Eliminate waste 2. Minimize inventory 3. Maximize flow 4. Pull production from customer demand 5. Meet customer requirements 6. Do it right the first time 7. Empower workers 8. Design for rapid changeover 9. Partner with suppliers 10. Create a culture of continuous improvement Figure 1 provides a definition of lean as a function of the outcomes that one realizes. The definition comes from Womack and it identifies the results rather than the method of lean. In the following sections, the procedures and specifics of lean will be

introduced.

Definition of Lean Half the hours of human effort in the factory Half the defects in the finished product One-third the hours of engineering effort Half the factory space for the same output A tenth or less of in-process inventories
Source: The Machine that Changed the World Womack, Jones, Roos 1990

Figure 4.1 Early definition of Lean.

4.3 The 3 Ms of Lean Lean manufacturing is a Japanese method focused on 3Ms. These Ms are: muda, the Japanese word for waste, Mura, the Japanese word for inconsistency, and muri, the Japanese word for unreasonableness. Muda specifically focuses on activities to be eliminated. Within manufacturing, there are categories of waste. Waste is broadly defined as anything that adds cost to the product without adding value to it. Generally, muda (or waste) can be grouped into the following categories: 1. Excess production and early production 2. Delays 4. Poor process design 5. Inventory 6. Inefficient performance of a process 7. Making defective items These wastes are illustrated in Figure 2

Figure 4.2 Excess production results in waste because it captures resources too early and retains the value that is added until the product can be used (sold). In todays highly changing society, many items produced before they can are sold to a specific customer often go obsolete before demand is realized. This means that a perfectly good product is often scrapped because it is obsolete. Producing a product simply to keep a production resource busy (either machine, operator or both) is a practice that should be avoided. Delays, such as waiting for raw material, also result in the poor use of capacity and increased delivery time. Raw materials and component parts should be completed at approximately the time that they will be required by downstream resources. Too early is not good, but late is even worse. Movement and transportation should always be kept to a minimum. Material handling is a non-value added process that can result in three outcomes: 1) the product ends up at the right place at the right time and in good

condition, 2) the part ends up in the wrong place, and 3) the part is damaged in transit and requires rework or scrap. Two of the three outcomes are no desirable, which further leads to minimizing handling. Because material handling occurs between all operations, when possible, the handling should be integrated into the process, and the transport distances minimized. A poorly designed process results in overuse of manufacturing resources (men and machines). There are no perfect processes in manufacturing. Generally, process improvements are made regularly with new efficiencies embedded within the process. Continuous process improvement is a critical part of Lean Manufacturing. Excess inventory reduces profitability. Today, it is not uncommon for a manufacturer to store a suppliers product at the production site. The supplier, right up until the time that they are drawn from inventory, owns the materials. In many ways this is advantageous to both the user and supplier. The supplier warehouses his material offsite, and the user does need to commit capital to a large safety stock of material. Insufficient (or poor) process performance always results in the over utilization of manufacturing resources and a more costly product. There is no optimal process in that improvements can always be made; however, many processes operate far below the desired efficiency. Continuous process improvement is necessary for a manufacturing firm to remain competitive. Excess movement or unnecessary part handling should be the first targets of waste elimination. Poor quality (making defects) is never desirable. Labor and material waste results from producing any defect. Furthermore, the cost of mitigating poor quality (rework)

can often exceed the price of the product. A critical balance between processing speed and quality exists. A process should be run as fast as possible without sacrificing acceptable quality. From the above discussion, it should be obvious that waste is a constant enemy of manufacturing. Waste elimination should be an on-going process that focuses on improving a process regularly. Regular reviews and worker input should be conducted as often as allowable. The second M is for mura, or inconsistency. Inconsistency is a problem that increases the variability of manufacturing. Mura is evidenced in all manufacturing activities ranging from processing to material handling to engineering to management. Figures 18.3 and 18.4 illustrate some characterization of mura.

4.4 The 5 Ss of Lean Much of Lean manufacturing is applying common sense to manufacturing environments. In implementing Lean, 5 Ss are frequently used to assist in the organization of manufacturing. The 5 Ss are from Japanese and are: Seiri (sort, necessary items) Seiton (set-in-order, efficient placement) Seison (sweep, cleanliness) Seiketsu (standardize, cont. improvement) Shitsuke (sustain, discipline)

4.5 Who Uses Lean Manufacturing?

Lean manufacturing processes are being used predominantly in the automotive industry. Toyota Motor Company, considered the leader in lean manufacturing techniques, started using the techniques during the 1950s and 1960s. They have since built their reputation as quality leaders and boast one of the fastest growing market shares in the automotive industry.

4.6 Why do organizations want to use lean manufacturing techniques? To significantly improve overall productivity To increase market share To improve speed-to-market with new products To reduce manufacturing and engineering labor costs To eliminate non-value-added operations and processes

4.7 Lean manufacturing techniques focus on: Equipment reliability Balanced or level production Just-in-time material control techniques Stop-the-line to correct the problem and in-station process control Continuous improvement processes Statistical Process Control techniques for quality consistency Developing human systems to support the technical processes 4.8 How do you sustain lean manufacturing techniques?

Create a solid business case Align systems and processes Share the vision Empower the workforce Ensure the use of proper measurement systems

4.9 The Five Steps of Lean Implementation The process used to implement lean manufacturing is a straightforward one. However it is critical that lean is implemented in a logical manner. The steps associated in implementing lean follow: Step 1: Specify Value Define value from the perspective of the final customer. Express value in terms of a specific product, which meets the customer's needs at a specific price and at a specific time. Step 2: Map Identify the value stream, the set of all specific actions required to bring a specific product through the three critical management tasks of any business: the problemsolving task, the information management task, and the physical transformation task. Create a map of the Current State and the Future State of the value stream. Identify and categorize waste in the Current State, and eliminate it! Step 3: Flow Make the remaining steps in the value stream flow. Eliminate functional barriers and develop a product-focused organization that dramatically improves lead-time.

Step 4: Pull Let the customer pull products as needed, eliminating the need for a sales forecast. Step 5: Perfection There is no end to the process of reducing effort, time, space, cost, and mistakes. Return to the first step and begin the next lean transformation, offering a product that is ever more nearly what the customer wants.

5 TOYOTA PRODUCTION SYSTEM (TPS) 5.1 Brief History Also known as the Toyota Production System (TPS), the Lean Manufacturing principles was adopted when Japan started rebuilding after World War II. Faced with daunting material and financial resource problems, Toyota Motor Company developed a highly-disciplined and process-focused production system with the sole objective of minimizing the consumption of resources that do not have any added value to the product. The word lean is being used to reflect the Japanese business approach in employing less human resource, less money/capital, less materials, etc. in all aspects of business operations. The Lean Manufacturing, or Lean Production principles, is the reason why Toyota has been very successful in their chosen industry for several decades now. It is also the

reason why manufacturing industries all over the world are adopting the same Japanese production disciplineto varying scale and styleto achieve the same success.

5.2What is TPS?-Quick Definition Synonymous with Lean Manufacturing and Lean Production, the Toyota Production System is a manufacturing methodology developed over a 20 year period by Toyota of Japan. In the most simplistic definition of TPS all manufacturing activities are divided into adding value or creating waste. The goal of TPS is to maximize value by eliminating waste.

5.3 Expanded Definition Taiichi Ohno is generally credited as being the father of TPS. Mr. Ohno was the Vice President of manufacturing for Toyota and the driving force behind the creation of Toyota Production Systems. The first documentation of TPS was a paper presented in August 1977. TPS has since been codified in several books. TPS is a system that was developed initially to account for the specific issues facing one company. The revolutionary ideas and concepts pioneered at Toyota have been

used in many other organizations and industries throughout the world. Value is truly the central focus of TPS. By defining and understanding value, TPS has evolved to help companies maximize value. In this system all activities relating to the manufacturing process are classified as adding value or waste. The goal of companies using TPS is to provide the exact quantity, with the exact quality, exactly when the customer wants it. The tools used to identify and minimize non-value adding activities make up TPS. However TPS is not a static system, rather it allows for continued change and improvement. Perhaps the true brilliance in TPS is not the tools and techniques in existence, but the underlying system that allows for new techniques to be understood and created. Defining value can be one of the most difficult tasks a company can undertake. TPS has addressed this issue with a very elegant solution; value is an item or feature for which a customer is willing to pay. When this metric of value is implemented it allows companies using TPS to have an exceedingly clear vision when analyzing an activity or process. No organization likes waste; however it is difficult to eliminate waste if it cannot be identified. The Toyota Production System forces companies to ask, Would someone pay for this? If the answer is no, then its waste. Once waste has been identified, it can then be eliminated. Tools to eliminate waste have evolved around the most common areas of waste or muda as it is called in TPS. The Toyota Production System further defines waste as activities that consume

time, resource and/or space but do not add value. The seven categories of muda are identified as: Overproduction - producing more than, faster than or sooner than is required Waiting - idle time that could be used productively Transporting - unnecessary transport of parts or materials Inappropriate processing - operations that add no value from the customer's perspective Unnecessary inventory - exceeding one-piece flow Unnecessary/excess motion - any movement by people or equipment that does not add value Defects - rework, repair or waste in its simplest form Poka Yoke, or error proofing, is a technique to eliminate the waste of defective product by not producing it in the first place. As defective product is identified, the root cause of how the product was made defective is determined, and then a poka yoke is created to insure that cause can not occur again. Excess inventory is typically minimized by manufacturing from a pull system. As product is sold to the end customer a Kan-Ban system pulls replacement product through the system. By building as a direct result of customer activity, waste in the form of excess inventory is minimized or eliminated. Wasted time typically refers to set up and die change applications. SMED (Single Minute Exchange of Die) techniques are used to minimize time lost to production changeovers.

Although techniques such as Poka Yoke, Kanban, and SMED are concrete well understood techniques to minimize waste and eliminate errors, they are components of the overall TPS. These techniques are not the definition of TPS rather they are a result of TPS. By codifying and understanding the relationship of manufacturing practices and end customer value TPS allowed Toyota to grow into a world class manufacturing company.

5.4How Can TPS Help Organization? Companies that pursue and emulate TPS best practices have seen much success as a result of this highly effective manufacturing philosophy. Some of the benefits include: Identify and enhance customer perceived value Decrease waste and cost in the manufacturing process Improve product quality and on-time delivery Develop a competitive world class manufacturing operation The TPS is a system that has given companies a blueprint for manufacturing excellence.

5.5 Problems of Toyota Production System

The Toyota production system may bring good benefit for companies, but the system may induce new issues too because the system does not always think about workers. In fact, Toyota has issues of Karoshi/major depression, etc.

5.6 Conclusion Lean manufacturing raises the threshold of acceptable quality to a level that mass production cannot easily match. It offers ever-expanding product variety and rapid responses to changing consumer tastes. It lowers the amount of high-wage effort needed to produce a product, and it keeps reducing it through continuous incremental improvement.

6. JUST-IN-TIME (JIT) Manufacturing is no longer a local matter. Advances in communication and transportation have greatly reduced the worlds size and manufacturing should now be considered a world affair. The consequent varieties of choices make decisions regarding manufacturing strategy very difficult and risky. To maintain the competitive edge, companies engaged in manufacturing products face the difficulty of reducing costs and improving their quality levels. Then, struggling to define their strategies, many of these companies followed the cheap-labor-and-materials route.

Unfortunately, companies were unable or unwilling to commit the requisite large capital investment. What is of most importance is to use the correct strategy in manufacturing. Most companies have a product strategy and a marketing and sales strategy, but they do very poorly in developing a manufacturing strategy. When these companies develop a product and introduce it in the market against the competition, they fail because the cost is too high, they cannot product the volume required or their quality levels are unacceptable. Without all three strategies, any company would be handicapped in its quest for market dominance and would probably be doomed to failure. It is necessary to develop a commitment to manufacturing earlier in the products development phase. It is important to use common sense in studying the different choices and to carry out decisions that will make the manufacturing process effective, fast and burdened with very low overhead. That is what Just-In-Time manufacturing is all about.

6.1 What is JIT? Just-In-Time (JIT) is an approach to production that was developed by Toyota Motors in Japan to minimize inventories. Work-in-process and other inventories are viewed by the Japanese as waste that should be eliminated. Inventory ties up investment funds and takes up space (space is much more dear in Japan than in the United States).To reduce this form of waste, the JIT approach includes a number of principles and procedures aimed at reducing inventories, either directly or indirectly. Indeed, the

scope of JIT is so broad that it is often referred to as a philosophy. IT is an important component of Lean Production, a principal goal of which is to reduce waste in production operation. Lean production can be defined as an adaptation of mass production in which workers and work cells are made more flexible and efficient by adopting methods that reduce waste in all forms. In recent years, the JIT philosophy has been embraced by U.S. manufacturing companies. Other terms have sometimes been adopted to give it an American flavor or to indicate slight differences with the Japanese practice of JIT. These terms include zero inventories, continuous flow manufacturing and zero inventory production system. Just-in-time procedures have proven most effective in high-volume repetitive manufacturing, such as the automobile industry. The potential for in-process inventory accumulation in this type of manufacturing is significant because both the quantities of products and the number of components per product are large. A just-in-time system produces exactly the right number of each component required to satisfy the next operation in the manufacturing sequence just when that component is needed. To the Japanese, the ideal batch size is one part. As a practical matter, more than one part is produced at a time, but the batch size is kept small. Under JIT, producing too many units is to be avoided as much as producing too few units. This is a production discipline that contrasts sharply with traditional U.S. practice, which has promoted use of large in-process inventories to deal with problems such as machine breakdowns, defective components and other obstacles to smooth production. The

U.S. approach might be described as a just-in-case philosophy.

Suppliers

Engineering

Materials Management T.Q.C. strategy Just-In-Time strategy

Factory Process

Customer Figure 6.1 Global view of the Just-In-Time system

Field Service

6.2 Planning for JIT It is impossible to establish a new JIT system that can be used successfully without modification. Since each manufacturing process is different (e.g. in terms of Goals, Product requirements, Customer requirements etc.), it is up to the individual company to determine the degree of appropriateness and the final

application of JIT. However, it is very important to define the plan and objectives before setting up a JIT manufacturing system. 6.3 Defining the Planning Defining the planning process for a JIT manufacturing system requires an understanding of the objectives of JIT, and the goals and objectives of the JIT system. After the objectives are established for the manufacturing, the process of planning becomes one of determining what is required to meet those objectives.

6.4 Basic Objectives The goal of a JIT approach is to develop a system that allows a manufacturer to have only the materials equipment and people on hand required to do the job. Achieving this goal requires six basic objectives:

Integrating and optimizing every step of the manufacturing process

Producing quality product Reducing manufacturing cost

Producing product on demand Developing manufacturing flexibility Keeping commitments and links made between Customers and Suppliers

It should be noted that obtaining these objectives does not automatically make a company a JIT manufacturer, on the other hand failing to achieve even one of these objectives will prevent a manufacturer from establishing a successful JIT system.

6.4.1 Integrating and Optimizing The manufacturing system is a continual process of reducing the number of discrete steps required to complete a particular process rather than plateaus of steps. Removal of bottlenecks in the manufacturing process is a critical step in integration. One of the best ways to accomplish this objective is to plan for 100 % defect free quality. Integrating and optimizing will involve reducing the need for unnecessary functions and systems such as inspection rework loops and inventory. 6.4.2Producing a Quality Product "Total Quality Control" is one of the fundamental goals in JIT manufacturing. Total Quality Control (TQC) emphasizes the quality at every stage of manufacture including product design down to the purchase of raw materials. Quality control is carried out at every stage of the manufacturing steps; from the source to the final step rather than relying on a single processing stage which implements quality control on the final product. Each individual and function involved in the manufacturing system must, therefore, accept the responsibility for the quality level of its products. This concept introduces the correction of the problem before many other defective units have been completed. 6.4.3Reducing Manufacturing Cost Designing products that facilitate and ease manufacturing processes helps to reduce the cost of manufacturing and building the product to specifications. One aspect in

designing products for manufacturability is the need to establish a good employer and employee relationship. This is to cultivate and tap the resources of the production experts (production floor employee), and the line employees to develop cost saving solutions. Participatory quality programs utilize employee knowledge about their job functions and review the department performance, encouraging with rewards for suggested cost saving solutions. 6.4.4Producing product on demand The fundamental principle of JIT is the concept of producing product only as needed or on demand. This implies that product is not held in inventory, and production is only initiated by demand. Adopting the produce-on-demand concept will ensure that only materials that are needed are processed and that labor will be expended only on goods that will be shipped to a customer. At the end of the production cycle, there would be no excess inventory. 6.4.5 Developing Manufacturing Flexibility Manufacturing flexibility is the ability to start new projects or the rate at which the production mix can be adjusted to meet customer demand. Planning for manufacturing flexibility requires the understanding of the elements in the manufacturing process and identifying elements in the process that restrict flexibility and improving on these areas. The unique feature of JIT is the change from a PUSH to a PULL system. The idea behind this concept is that work should not be pushed on to the next worker until that worker is ready for it. 6.4.6 Keeping Commitments and Links made between Customers and Suppliers

The corporate commitment to developing the internal structures and the customer and supplier bases to support JIT manufacturing is the primary requirement for developing the JIT system. Trust and commitment between the supplier and the customer is a must, because every Just-in-Time operation relies on it. Failure to keep the commitments is a serious form of break-down in a JIT system.

6.5 What Just-In-Time means to materials management Inventory is one of the most important assets that a company owns. Normally, as a companys sales increase, the demand for cash to finance inventory follows the same growth pattern. A Just-In-Time system dedicates a major portion of its attention to manage the inventories throughout the manufacturing organization. It should be pointed out that Just-In-Time doesnt mean zero inventories. Just-In-Time is a set of procedures that are used by the materials department in working with suppliers and with the quality, engineering and manufacturing department to reduce as much as possible the use of buffer inventories. Just-In-Time calls for synchronizing the movement of materials throughout the production process in such a fashion that there are short waits between the different sub processes. Just-In-Time also moves the materials in the factory based on consumption rather than top-down planning.

6.6 Push and Pull Manufacturing Push system and pull systems are two broad categories of manufacturing planning and execution systems. At the heart of the planning portion of either system lie several

common features. Traditional push systems are typically supported by manufacturing resource planning (MRP II), which encompasses a full range of both planning and execution function. These include the production plan, master schedule, rough cut capacity analysis, materials requirements planning (MRP), detail capacity requirements planning, production scheduling and control and feedback. Pull systems may use the same MRP II features for planning (production plan, master schedule, rough cut capacity analysis and material requirements planning for raw material and purchased components only), but have no formal equivalent to perform detailed capacity requirements planning. Furthermore, in pull systems, the execution activities of production scheduling and control are decoupled from the MRP activities and replaced by replenishment methodologies that tend to be more visual and signalbased. It is primarily in the execution portions that push and pull systems diverge. Material requirements planning not only plan, but are also the execution driver for a typical push system. MRP analyzes the master schedule and available inventory and yields a list of net requirements. Order policies and lead times are then applied to provide a delivery schedule for purchased material and due dates for manufactured parts, both supporting the master schedule timing. MRP will plan material availability throughout the purchase and manufacture lead time horizon and generate a push schedule. Feedback from executing the schedule is then used for replanning. While the execution portion of a push system is tied to its planning portion (via order launch start dates derived from a comparatively static master schedule), a

pull system draws material through the manufacturing process when signaled by the consumption of material at downstream operations or the need for replenishment of buffer stocks. Common signals include kanban cards, light boards, buzzers and visual triggers, such as empty and full containers or empty and full designated spaces. In some cases, material handling is the carrier of the signal and where material handling must respond to a pull signal, an immediate response is required. Because pull schedule represent current production, they typically do not provide the lead time to procure raw material or the reaction time to adjust future capacity. Consequently, pull systems generally use the same planning features as push systems to plan purchased material and perform rough-cut capacity analysis. The weakness of a push system (MRP) is that customer demand must be forecast and production lead times must be estimated. Bad guesses (forecasts or estimates) result in excess inventory and the longer the lead time, the more room for error. Moreover, the weakness of a pull system (kanban) is that following the JIT production philosophy is essential, especially concerning the elements of short setup times and small lot sizes, because each station in the process must be able to respond quickly to requests for more materials.

Sales Forecast

Demand Forecast Purchase Releases Master Production Schedule

MRP

Suppliers

Stockroom Work Orders Release

Ship

Factory Process

Finished Goods Inventories

Customers

Figure 6.2 Build schedule and materials flow in a push system.

Sales Forecast

Demand Forecast

Master Production Schedule Forecast MRP Production Rate Required Forecast Kanban Pull Stock Location Kanban Material Releases Kanban Pull Suppliers

Factory Process

Finished Goods Inventories

Customers

Figure 6.3 Build schedule and materials flow in a pull system.

6.7 Kanban A kanban which is one way of implementation of pull production control system uses simple and visual signals to control the movement of materials between work centers as well as the production of new materials to replenish those sent downstream to the next work center.

A kanban system is referred to as a pull-system, because the kanban is used to pull parts to the next production stage only when they are needed. In contrast, an MRP system or other schedule-based system is a push system, in which a detailed production schedule for each part is used to push parts to the next production stage when scheduled. Thus, in a pull system, material movement occurs only when the work station needing more material asks for it to be sent, while in a push system the station producing the material initiates its movement to the receiving station, assuming that it is needed because it was scheduled for production. Originally, the name kanban (translated as card or visible record) referred to a Japanese shop sign that communicated the type of product sold at the shop through the visual image on the sign (for example, using circles of various colors to indicate a shop that sells paint). As implemented in the Toyota Production System, a kanban is a card that is attached to a storage and transport container. It identifies the part number and container capacity, along with other information, and is used to provide an easily understood, visual signal that a specific activity is required. In Toyotas dual-card kanban system, there are two main types of kanban: 1. Production Kanban

It is specifies the kind and quantity of product which the preceding process must produce. The one illustrated (figure 4) shows that the machining process SB-8 must produce the crankshaft for the car type SX50BC-150. The crankshaft produced should

be placed at store F26-18. The production Kanban is often called an in-process Kanban or simply a production-ordering Kanban. 2. Withdrawal Kanban (also called a "move" or a "conveyance kanban)

It is specifies the kind and quantity of product which a manufacturing process should withdraw from one work center and deliver them to the next work center for proceeding process. The withdrawal Kanban illustrated at figure 5 shows that the preceding process which makes this part is forging, and the person carrying this Kanban from the subsequent process must go to position B-2 of the forging department to withdraw drive pinions. Each box of drive pinions contains 20 units and the shape of the box is `B'. This Kanban is the 4th of 8 issued. The item back number is an abbreviation of the item.

Figure 6.4 Production Kanban

Figure 6.5 Withdrawal Kanban

In some pull systems, other signaling approaches are used in place of kanban cards. For example, an empty container alone (with appropriate identification on the container) could serve as a signal for replenishment. Similarly, a labeled, pallet-sized square painted on the shop floor, if uncovered and visible, could indicate the need to

go get another pallet of materials from its point of production and move it on top of the empty square at its point of use. The Dual-card Kanban Rule is no parts are made unless there is a production kanban to authorize production. If no production kanban are in the in box at a work center, the process remains idle, and workers perform other assigned activities. This rule enforces the pull nature of the process control. There is exactly one kanban per container. Containers for each specific part are standardized, and they are always filled with the same (ideally, small) quantity. Decisions regarding the number of kanban (and containers) at each stage of the process are carefully considered, because this number sets an upper bound on the work-in-process inventory at that stage. For example, if 10 containers holding 12 units each are used to move materials between two work centers, the maximum inventory possible is 120 units, occurring only when all 10 containers are full. At this point, all kanban will be attached to full containers but no additional units will be produced. This is because there are no unattached production kanban to authorize production. This feature of a dual-card kanban system enables systematic productivity improvement to take place. By deliberately removing one or more kanban together with the containers from the system, a manager will also reduce the maximum level of work-in-process inventory. This reduction can be done until a shortage of materials occurs. This shortage is an indication of problems, such as accidents, machine breakdowns, production delays, defective products, which were previously hidden by excessive inventory. Once the problem is observed and a solution is identified,

corrective action is taken so that the system can function at the lower level of buffer inventory. This simple, systematic method of inventory reduction is a key benefit of a dual card kanban system. 6.7.1 How to implement kanban Before implementing kanbans, there are some important warnings. Kanbans are an execution tool, but they are essentially backward looking, replacing what was used. Kanbans provide no forward visibility about the need for people, material and equipment. In a simple company, kanbans can be supported by sales and operations planning using rough cut capacity planning to provide the resource plan. The material has to be provided either by good kanban arrangements with suppliers or safety stocks. In larger and more complex situations a full MRP II or material planning system is essential to support kanbans. Therefore, unless the company has a very simple product and a steady and predictable order book and has a good material planning system, kanbans should only be implemented. When implementing kanbans, the first step is to educate everyone involved in the use of kanbans. Because kanbans are different from the way most people are used to working, everyone using kanbans must understand the rules otherwise they are very likely to undermine the kanbans. The rules are simple: Make or move materials and products when, but only when, there is a kanban signal Never pass on a known defect but pass it back to the person who passed it to you.

 All work in kanban areas must be under kanban control, no "squirrel" stores. Start with internal kanbans where appropriate. Kanbans work best where there is the same or similar products being manufactured repetitively. Kanbans also work where components are the same or similar and can be replenished by kanbans. Once the internal kanbans have started, the suppliers need to already have kanban arrangements. Thus, use these to get a quick start with supplier kanbans. Once kanbans have been established, start to educate customers in the use of kanbans and form kanban partnerships with them. 6.7.2 Responsive of Kanban to customers Kanban results in a production system that is highly responsive to customers. When the time goes on, the production of widgets will vary depending on customer demand. And as the widget demand varies, so will the internal demand for widget components. Instead of trying to anticipate the future, Kanban reacts to the needs. This is because in the reality, predicting the future is difficult. Kanban does not necessarily replace all existing material flow systems within a facility. Other systems such as Materials Requirement Planning (MRP) and Reorder Point (ROP) may remain in operation. In practice, Kanban scheduling systems are often a good choice. They can be a transition between MRP and ROP approaches. Kanban is most beneficial when high volumes with low value components are involved. For low volume and high value components, other materials management system may be a better option.

6.7.3 Continual Improvement of Just In Time Kanban is directly associated with Just-In-Time (JIT) delivery. However, Kanban is not another name for just-in-time delivery. It is a part of a larger JIT system. There is more to managing a JIT system than just Kanban and there is more to Kanban than just inventory management. Besides that, Kanban is not a system indented to be used by itself. It is an integral part of Kaizen . For example, Kanban also involves industrial re-engineering. This means that production areas might be changed from locating machines by function, to creating "cells" of equipment and employees. The cells allow related products to be manufactured in a continuous flow. Kanban involves employees as team members who are responsible for specific work activities. Teams and individuals are encouraged participate in continuously improving the Kanban processes and the overall production process. 6.7.4 Benefits of implementation of Kanban Reduce inventory and product obsolescence. Since component parts are not delivered until just before they are needed, there is a reduced need for storage space. There is no inventory of products or components that become obsolete. This fits well with the Kaizen system on continual improvement. Product designs can be upgraded in small increments on a continual basis, and those

upgrades are immediately incorporated into the product with no waste from obsolete components or parts. Reduces waste and scrap With Kanban, products and components are only manufactured when they are needed. This eliminates overproduction. Raw materials are not delivered until they are needed, reducing waste and cutting storage costs. Provides flexibility in production If there is a sudden drop in demand for a product, Kanban ensures the factory is not stuck with excess inventory. This gives them the flexibility to rapidly respond to a changing demand. Kanban also provides flexibility in how the production lines are used. Production areas are not locked in by their supply chain. They can quickly be switched to different products as demand for various products changes. There are still limits imposed by the types of machines and equipment, and employee skills. However, the supply of raw materials and components is eliminated as a bottleneck. Increases Output with zero defect The flow of Kanban such as cards, pallets and so on, will stop if there is a production problem. This makes problems visible quickly, allowing them to be corrected. Kanban reduces wait times by making supplies more accessible and breaking down administrative barriers. This results in an increase in production using the same resources.

 Reduces Total Cost The Kanban system reduces your total costs by: Preventing over Production Developing Flexible Work Stations Reducing Waste and Scrap Minimizing Wait Times and Logistics Costs Reducing Stock Levels and Overhead Costs Saving Resources by Streamlining Production Reducing Inventory Costs

6.8 Time Waste and Just-In-Time In a factory, time waste is related to the labor required to build a product, for every product is associated with standard labor hours. These labor hours determine not only the direct labor cost but also the overhead associated with the product. In general, the cost of every hour that a worker uses to assemble a product is magnified by the overhead rate of the department. Just-In-Time broadens the concept of time waste to include more than the labor hours invested in building a product. Material traveling from one work center to another is a simple example. In a non-Just-In-Time factory, material travel time is less critical. The process has plenty of buffer inventories which relaxes the need for a fast delivery of material to work centers. In a Just-In-Time system, material travel time is of more concern. There are no buffer inventories and worker depends on material

from upstream processes to continue work. The material travel in smaller quantities more frequently; thus the time it takes to go from one work center to another must be minimized. Another important area of time waste consists of the setup times for machinery. In Just-In-Time, a production lot has a small number of units, which presents the problem of frequent tooling setup changes needed to process different parts. The same problem arises when a multiple product production line switches from one job stream to another. The Japanese have mastered the reduction of setup time by means of the single-minute- exchange of die (SMED).Shigeo Shingo created the SMED concept in Japan during the 1950s.

6.9 Machine Setup Time and the SMED System Just-In-Time calls for small lots and frequent production runs. This operation mode helps to control excess materials in the process, but it creates the problem of wasting additional setup time for machines. In a normal operating environment, the time wasted in machine setup becomes more evident when frequent small lots are processed. The single-minute exchange of die (SMED) system is a collection of techniques used to reduce machine setup time. As the Just-In-Time idea of using small lots evolved, SMED became associated with the system. The SMED system is a process of systematic machine setup analysis that clearly distinguishes every step in order to introduce time saving changes. The goal of SMED is to crease the productivity of machines by reducing their idle time and to reduce

machine setup from hours to minutes. The first step in applying SMED to a particular machine is to analyze the setup time for that machine. This analysis must clearly identify two types of setup. The internal setup requires the machine to stop operating. During this setup, the machine is not productive. The other is the external setup, which can be done with the machine operating. After this step, the goal becomes to convert internal setup tasks into external ones. The conversion of setup tasks is an iterative process. The final step is to reduce the time required for the tasks by using new production methods. After many iterations, SMED will increase the productive time of a machine and reduce the idle time required for a new setup.

6.10 Conclusions Hence we can see that to have a Total JIT manufacturing system, a company-wide commitment, proper materials, quality, people and equipments must always be made available when needed. In addition; the policies and procedures developed for an internal JIT structure should also be extended into the company's supplier and customer base to establish the identification of duplication of effort and performance feedback review to continuously reduced wastage and improve quality. By integrating the production process; the supplier, manufacturers and customers become an extension of the manufacturing production process instead of independently isolated

processes where in fact in clear sense these three sets of manufacturing stages are inter-related and dependent on one another. Once functioning as individual stages and operating accordingly in isolated perspective; the suppliers, manufacturers and customers can no longer choose to operate in ignorance. The rules of productivity standards have changed to shape the economy and the markets today; every company must be receptive to changes and be dynamically responsive to demand. In general, it can be said that there is no such thing as a KEY in achieving a JIT success; only a LADDER; where a series of continuous steps of dedication in doing the job right every time is all it takes. The use of kanbans can made huge improvements to a company such as dramatically reduced lead times, lower inventory and reduced administration costs.

7. AUTONOMATION 7.1 What is Autonomation

Autonomation transfers a level of human intelligence to automated machinery. Machines thus detect even a single defective part and immediately stop while asking for help. The concept was pioneered by Sakichi Toyoda at the turn of the twentieth century. He invented automatic looms that stopped instantly when any thread broke. This permitted one operator to oversee many machines without risk of producing large amounts of defective cloth. Taiichi Ohno considered Jidoka (Autonomation is one variant) as one of the two pillars of the Toyota Production System.

7.2 Purpose and implementation Autonomation is called by Shigeo Shingo pre-automation. It separates workers from machines through mechanisms that detect production abnormalities (many machines in Toyota have these). He says there are twenty-three stages between purely manual and fully automated work. To be fully automated machines must be able to detect and correct their own operating problems which is currently not cost-effective. However, ninety percent of the benefits of full automation can be gained by autonomation. The purpose of autonomation is that it makes possible the rapid or immediate address, identification and correction of mistakes that occur in a process. Autonomation relieves the worker of the need to continuously judge whether the operation of the machine is normal; their efforts are now only engaged when there is a problem alerted

by the machine. As well as making the work more interesting this is a necessary step if the worker is to be asked later to supervise several machines. The first example of this at Toyota was the auto-activated loom of Sakichi Toyoda that automatically and immediately stopped the loom if the vertical or lateral threads broke or ran out. For instance rather than waiting until the end of a production line to inspect a finished product, autonomation may be employed at early steps in the process to reduce the amount of work that is added to a defective product. A worker who is self-inspecting their own work, or source-inspecting the work produced immediately before their work station is encouraged to stop the line when a defect is found. This detection is the first step in Jidoka. A machine performing the same defect detection process is engaged in autonomation. Once the line is stopped a supervisor or person designated to help correct problems gives immediate attention to the problem the worker or machine has discovered. To complete Jidoka, not only is the defect corrected in the product where discovered, but the process is evaluated and changed to remove the possibility of making the same mistake again. This "mistake-proofing" of the production line is called Poka-Yoke.

7.3 The Role of Autonomation

Autonomation is an important component of Lean Manufacturing Strategy for highproduction, low- variety operations, particularly where product life cycles are measured in years or decades. In high-variety, low-volume situations, the time and effort required is prohibitive. This is another example of how lean principles must be tailored to each situation.

8. AGILE MANUFACTURING 8.1 What is Agile Manufacturing? Agile manufacturing is an enterprise level manufacturing strategy of introducing new products into rapidly changing markets and an organizational ability to thrive in a competitive environment characterized by continuous and sometimes unforeseen change. In 21st Century Manufacturing Enterprise Study, agile manufacturing used to describe a new manufacturing paradigm that was recognized as emerging to replace mass production .Agility is a strategy for profiting from rapidly changing and continually fragmenting global markets for customized products and services. There are consist of four principles of agility, that include organize to master change, leverage the impact of people and information, cooperate to enhance competitiveness, and enrich the customer. In organize to master change, it allows

thrive on change and uncertainty. The human and physical resources also can rapidly reconfigure to adapt to changing environment and market opportunity. For leverage the impact of people and information, knowledge is valued, innovation is rewarded, and authority is distributed to the appropriate level of the organization. Management provides resources that personnel need and organization is entrepreneurial in spirit. There is a climate of mutual responsibility for joint success. In addition, cooperate to enhance competitiveness is cooperation internally and with other companies to form virtual enterprises to bring products to market rapidly. Besides that, in enrich the customer, pricing of product based on value of solution to customers problem rather than manufacturing cost. Agility also has four underlying components that are delivering value to the customer, being ready for change, valuing human knowledge and skills, and forming virtual partnerships.

8.2 Market Forces The market forces can be divided into five to evaluate the agile manufacturing. Firstly, intensifying competition that include global competition, decreasing cost of information, growth in communication technologies, pressure to reduce time-tomarket, shorter product lives, and increasing pressures on costs and profits. Secondly, fragmentation of mass markets that include emergence of niche markets, high rate of model changes, declining barriers to market entry from global competition, and shrinking windows of market opportunity. Thirdly, cooperative business relationships that include increasing inter-enterprise cooperation, increased outsourcing, global

souring, improved labor management relationships, and the formation of virtual enterprises among companies. Fourth is changing customer expectations because customers become more sophisticated and individualistic in purchases including rapid delivery, high quality, product life and increased information content of product. Fifth is increasing societal pressures that include workforce training and education, legal pressures, environment impact issues, gender issues, and civil rights issues. In brief, companies must have organization management include interorganization cooperative extent, speed of the team building, network connection extensiveness. Besides that, product design include design period, proportion of design period in product periods. Then, processing manufacture includes time and space organizational form of production process, and supplement tool displacement. Next, partnership formation capability includes the form of institutional framework, the degree of cooperating with other enterprises and the institutional framework agility. Furthermore, integration of information system includes perfect degree of information system, customer demand information agile to get.

8.3 Reorganizing the Production System for Agility To reorganize production system for agility, it consist of three basic areas include product design, marketing, and production operations .In product design, the products should have the characteristic of customizable for individual niche markets or individual customers, upgradeable, reconfigurable with unique features from previous model without drastic and time-consuming redesign effort, design

modularity where other modules redesigned will remain same, frequent model changes within stable market families that is introduce new versions of product to remain competition, and platforms for information and services depend on type of product offering .The development of new products must rapid, cost-effective and have a life cycle design philosophy from initial concept through production, distribution, purchase, disposal and recovery. Besides that, in marketing areas, company should has an aggressive and proactive product marketing that change sales and marketing functions, cannibalize successful products to replace obsolete products, frequent new product introductions to maintain high rate of new product introductions, life cycle product support, pricing by customer value, and effective niche market competitor that used same basic product platform for different markets. In addition, the objectives of production operations including be a costeffective, low volume producer use flexible production system and low setup times, be able to produce to customer order to reduce inventory of unsold finished goods, master mass customization that capable of economically producing unique product for individual customer, use reconfigurable and reusable processes, tooling and resources, bring customers closer to the production process by design their own, integrate business procures with production, and treat production as a system that extends from suppliers through to customers. 8.4 Managing Relationship for Agility To manage relationships for agility, organization should have management

philosophy that promotes motivation and support among employees, trust-based relationships, empowered workforce, shared responsibility for success or failure, and pervasive entrepreneurial spirit. There are consists of two types of relationships, that are internal and external. Internal relationships exist within firm, between coworkers and between supervisors and subordinates to make work organization adaptive, provide cross-functional training, encourage rapid partnership formation and provide effective electronic communications capability. On the other hand, external relationships exist between company and external suppliers, customers and partners to establish interactive, proactive relationships with customers, to provide rapid identification and certification of suppliers, install effective electronic communications and commerce capability, and to encourage rapid partnership formation for mutual commercial advantage. Virtual Enterprise (Virtual Organization or Virtual Corporation) is a temporary partnership of independent resources intended to exploit a temporary market opportunity. Besides that, it may provide access to resources and technology not available in-house or to new markets and distribution channels, reduce product development time and accelerates technology transfer. Valuing knowledge important to open communication and information access, openness to learning is pervasive in organization, learning and knowledge are basic attributes of an organizations ability to adapt to change, organization provides and encourages continuous education and training for all employees, and effective

management of competency on skills and knowledge of its employees.

8.5 Agility versus Mass Production In mass production, companies produce large quantity of standardized products with huge volumes of identical products. Besides that, mass production is a long market life expected, produce to forecast, low information content, single time sales and pricing by production cost. On the other hand, in agile manufacturing, the term mass customization is used which means produce large quantity of products with unique individual features. Mass customization is a short market life expected, produce to order, high information content, continuing relationship and pricing by customer value. Refer to PQ model of production which means that P is product variety (number of models) and Q is production quantity (units of each model per year). P is very small but Q is very large in mass production whereas P is very large but Q is very small (in the extreme Q=1) in mass customization. There are many reasons to cause the manufacturing paradigm is changing from mass production to agile manufacturing (mass customization). This including global competition is intensifying, mass markets are fragmenting into niche markets, cooperation among companies is becoming necessary, customers expect low volume, high quality, custom products, very short product life-cycles, development time, and production lead times are required, customers want to be treated as individuals. In mass production, it does not apply to produce small quantities of highly custom,

design-to-order products, and where additional services and value-added benefits like product upgrades and future reconfigurations.

8.6 Issues and Problems of Agile Manufacturing The big issue in agile manufacturing is what extent our existing beliefs, goals, objectives and methods will continue to be shaped by the old manufacturing paradigms. There is a danger that agile manufacturing interpreted technological concept and lead to the generation of more technology, but not to the development of the capability to deploy the technologies. Overcoming the legacy of the Taylor Model is a major barrier to progress. The development of agile manufacturing requires an integrated approach which replaces piecemeal and fragmented research. For integrated approach, the key words being empowerment, simultaneous activities, coordination, cooperation, sharing and team work. The research issues should interdisciplinary and not monodisciplinary. As a result, the barriers that exist between monoprofessionals need to be broken down and eliminated. Education and training are crucial to the success of agile manufacturing. This is because agile manufacturing is not just a question of addressing issues such as organizational aspects and psychological topics in isolation but have an impact on technology development which should be now be addressed in an interdisciplinary way. Besides that, the success of agile manufacturing depends to a large extent on the availability of well educated and trained, highly skilled people throughout the

enterprise. As a result, new knowledge and new methods of working are needed. Management competence also needs to improve because we need multi-skilled, computer competent people. In strategies issues, strategies tend to shift in the area of decision support technologies towards the development of skill and knowledge enhancing technologies. Besides that, it needs to develop a broader approach to technology development and deployment. In specific research issues, the consideration includes the concept of agile manufacturing enterprise design so we need to develop tools to support a spiral approach. Besides that, research into manufacturing needs to focus on manufacturing as a whole not individual part. Furthermore, we need to develop and deploy technologies to support development of linkages within agile manufacturing and to support experimentation and learning. Besides that, issues and problems for agile manufacturing include identifying the agile dimension of different industries, and suitable strategies, methods and technologies with the objective developing a framework for agility. Study the role of top management knowledge would help set budget priorities and strategic alliances. Since the requirement of the type of agile technologies depends upon the business process structure, there is a need to study the alignment between business process and agile technologies so that effective enterprise integration can be achieved for improved organizational competitiveness. The impact of organizational infrastructure, systems and technologies on the partnership selection and supplier

development should be studied.

8.7 Future Development of Agile Manufacturing Other than constitute skill and knowledge enhancing technologies, artificial intelligence (AI) technologies and in the area of cooperative working also important in further development. AI is a rather unfortunate term for it conjures up emotive issues of intelligent machine taking over intelligent work that has hitherto been immune from automation. It also generates philosophical discussions which center around the possibility of developing computers that think, which leads to endless speculations largely based on opinions. We adopt AI based on the concept of programming paradigms to support people. Logic-based paradigm involves dealing with logical predicates and assertions. Besides that, frame-based paradigm use structured knowledge for capturing regularly occurring circumstances. Each frame includes a number of slots with inheritance, predicate attachments and active values. In addition, rule based paradigm involves representing knowledge by the means of if-then rules with logical premises and conclusions. In computer supported cooperative work (CSCW), concurrent engineering support dialogue and cooperation between designers and those involved at the sharp end of manufacturing on the shop floor. We should tap into every ounce of intelligence available and use it to bridge the gaps between thinking and doing, and

designing and making. Besides that, CSCW support cooperation between offices based programmers and skilled machinists working on the shop floor. Future generations of computer based technologies will process task oriented with additional technologies to support experimentation and learning activities and support the linkages within the human networking organization. In experimentation and learning technologies, it concerned with support the process of continuing improvement, help users to extend understanding of problems, provide advice in adjacent areas of expertise, support experimentation and learning activities, inform users about consequences of proposals and decisions, and help to identify potential problems and failures. In the linkage technologies, it concerned with support the identification and formation of critical linkages, help empowered people to contribute to team activities, support inter-group and intra-group activities, identify core competencies, and support inter-enterprise and intra-enterprise innovation networks.

8.8 Conclusion Agile manufacturing consist of four principles of agility, that include organize to master change, leverage the impact of people and information, cooperate to enhance competitiveness, and enrich the customer. To evaluate agile manufacturing, a number of market forces are identified. Besides that, company must reorganizing the production system and managing relationship for agility. We also make the comparison between agility and mass production. In addition, we discuss the issues

and problems, and the future development for agile manufacturing.

Reference Book 1 Nigel Slack, Stuart Chambers, Robert Johnston, Operation Management, Fourth Edition, 2004, from page 517 to page 550 2 Agile Manufacturing, Forging New Frontiers, Paul T. Kidd, Addison-Wesley Publishing Company Inc, 1994, from page 353 to page 367.
3

Groover, M.P., Automation, Production Systems and Computer-Integrated Manufacturing, 2nd Edition, Prentice Hall International Edition, 2001, from page 835 to page 843.

4 Internet
1. http://books.google.com.my/books?

hl=en&id=TxJNaPkuc4oC&dq=just+in+time&printsec=frontcover&source=web &ots=BlxuPNF6fJ&sig=pws6PM3PgAYwKAu35cdKEDbcXsY&sa=X&oi=book _result&resnum=10&ct=result#PPP1,M1

5

http://books.google.com.my/books? hl=en&id=zM_qqlrHKJ8C&dq=lean+manufacturing&printsec=frontcover&sour ce=web&ots=zgEAKpfDqh&sig=Iaa0KNn5MkGAqiiphKRzWCcfQKo&sa=X& oi=book_result&resnum=5&ct=result

http://kernow.curtin.edu.au/www/jit/jit.htm

7 8 9

http://www.strategosinc.com/kanban_2.htm http://www.ifm.eng.cam.ac.uk/dstools/process/kanban.html http://www.msc-inc.net/Documents/Kanban_Integrated_JIT_System.htm

10 http://www.umassd.edu/charlton/birc/am_taxonomy.pdf 11 http://www.umassd.edu/charlton/birc/am_1998.pdf 12 http://www.technet.pnl.gov/dme/agile/index.stm 13 http://en.wikipedia.org/wiki/Autonomation 14 http://www.engr.psu.edu/cim/ie450/ie450ho1.pdf 15 http://www.ddiworld.com/pdf/ddi_leanmanufacturingtechniques_wp.pdf 16 http://wcm.nu/lean.html

Key Words and definitions

1

Autonomation - in Toyota parlance, automation with a human touch. Autonomation normally referes to semi-automatic processes where a machine and human work as a well planned system. Literally, the English translation of jidoka.

Cycle time - the normal time to complete an operation on a product. This in NOT the same as takt time, which is the allowable time to produce one product at the rate customers are demanding it.

Lean manufacturing or lean production - the philosophy of continually reducing waste in all areas and in all forms; an English phrase coined to summarize Japanese manufacturing techniques (specifically, the Toyota

Production System).
4

mixed-model production - capability to produce a variety of models, that in fact differ in labor and material content, on the same production line; allows for efficient utilization of resources while providing rapid response to marketplace demands.

muda (waste) - activities and results to be eliminated; within manufacturing, categories of waste, according to Shigeo Shingo, include: .
5.1

Excess production and early production 2.Delays Movement and transport Poor process design Inventory Inefficient performance of a process Making defective items

5.2 5.3 5.4 5.5 5.6

6 7 8

mura - inconsistency muri - unreasonableness jidoka - a Japanese word which translates as autonomation; a form of automation in which machinery automatically inspects each item after producing it, ceasing production and notifying humans if a defect is detected; Toyota expands the meaning of jidoka to include the responsibility of all workers to function similarly, i.e. to check every item produced and to make no more if a defect is detected, until the cause of the defect has been identified and corrected.

just-in-time - a production scheduling concept that calls for any item needed at a production operation - whether raw material, finished item, or anything in

between, to be produced and available precisely when needed, neither a moment earlier nor a moment later.
10

Kaizen - the philosophy of continual improvement that every process can and should be continually evaluated and improved in terms of time required, resources used resultant quality, and other aspects relevant to the process.

11

kanban - a card or sheet used to authorize production or movement of an item