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Just-in-Time and Lean Systems

OBJECTIVES

Lean Production Defined The Toyota Production System Lean Implementation Requirements Lean Services

Lean Production

Lean Production can be defined as an integrated set of activities designed to achieve high-volume production using minimal inventories (raw materials, work in process, and finished goods) Lean Production also involves the elimination of waste in production effort Lean Production also involves the timing of production resources (i.e., parts arrive at the next workstation just in time)

Here the customer starts Here the customer starts the process, pulling an the process, pulling an inventory item from Final inventory item from Final Assembly Assembly Then sub-assembly Then sub-assembly work is pulled work is pulled forward by that forward by that demand demand
Customers

Pull System
Mfg. Sub Mfg. Vendor Vendor

Final Assembly
Sub

The process continues The process continues throughout the entire throughout the entire production process and production process and supply chain supply chain

Mfg.

Vendor

Mfg.

Vendor

The Toyota Production System

Based on two philosophies: 1. Elimination of waste 2. Respect for people

The Seven Wastes

Overproduction: Producing more than the demand for customers resulting in unnecessary inventory, handling, paperwork, and warehouse space. Waiting Time: Operators and machines waiting for parts or work to arrive from suppliers or other operations. Transportation: Double or triple movement of materials due to poor layouts, lack of coordination and workplace organization. Processing: Poor design or inadequate maintenance or processes requiring additional labor or machine time. Inventory: Excess inventory due to large lot sizes, obsolete items, poor forecasts or improper production planning. Motion: Wasted movements of people or extra walking to get materials. Defects: Use of materials, labor and capacity for production of defects, sorting out bad parts or warranty costs with customers.

Elimination of Waste
1. 2. 3. 4. 5. 6.

Focused factory networks Group technology (Cellular) Quality at the source JIT production Uniform plant loading Kanban production control system Minimized setup times

7.

Minimizing Waste: Focused Factory Networks

These are small specialized These are small specialized plants that limit the range of plants that limit the range of products produced products produced (sometimes only one type of (sometimes only one type of product for an entire product for an entire facility) facility) Some plants in Some plants in Japan have as Japan have as few as 30 and as few as 30 and as many as 1000 many as 1000 employees employees

Coordination System Integration

Minimizing Waste: Group Technology (Part 9 1)

Note how the flow lines are going back and forth Note how the flow lines are going back and forth

Using Departmental Specialization for plant layout can cause a Using Departmental Specialization for plant layout can cause a lot of unnecessary material movement lot of unnecessary material movement
Saw Saw Saw Grinder Grinder

Heat Treat

Lathe

Lathe

Lathe

Press

Press

Press

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Minimizing Waste: Group Technology (Part 2)

Revising by using Group Technology Cells can reduce movement Revising by using Group Technology Cells can reduce movement and improve product flow and improve product flow

Grinder Saw Lathe

Lathe

Press

Heat Treat

Grinder Saw Lathe

Lathe

Press

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Minimizing Waste: Uniform Plant Loading (heijunka)

Suppose we operate a production plant that produces a single Suppose we operate a production plant that produces a single product. The schedule of production for this product could be product. The schedule of production for this product could be accomplished using either of the two plant loading schedules accomplished using either of the two plant loading schedules below. below.

Not uniform

Jan. Units 1,200

Feb. Units 3,500 or

Mar. Units 4,300

Total 9,000

Uniform

Jan. Units 3,000

Feb. Units 3,000

Mar. Units 3,000

Total 9,000

How does the uniform loading help save labor costs? How does the uniform loading help save labor costs?

Minimizing Waste: Inventory Hides Problems

Machine downtime Scrap Work in process queues (banks) Vendor delinquencies Change orders Design backlogs Decision backlogs

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Engineering design redundancies

Example: By identifying defective items from a vendor early in the production process the downstream work is saved

Paperwork backlog

Inspection backlogs

Example: By identifying defective work by employees upstream, the downstream work is saved

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Minimizing Waste: Kanban Production Control Systems

Once the Production kanban is received, the Machine Center produces a unit to replace the one taken by the Assembly Line people in the first place
Storage Part A

Withdrawal kanban

This puts the system back where it was before the item was pulled

Machine Center

Storage Part A

Assembly Line

Production kanban
The process begins by the Assembly Line people pulling Part A from Storage

Material Flow Card (signal) Flow

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Respect for People

Level payrolls Cooperative employee unions Subcontractor networks Bottom-round management style Quality circles (Small Group

Involvement Activities or SGIAs)

Toyota Production Systems Four Rules

1.

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All work shall be highly specified as to content, sequence, timing, and outcome Every customer-supplier connection must be direct, and there must be an unambiguous yesor-no way to send requests and receive responses The pathway for every product and service must be simple and direct Any improvement must be made in accordance with the scientific method, under the guidance of a teacher, at the lowest possible level in the organization

2.

3.

4.

Lean Implementation Requirements: Design Flow Process

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Link operations Balance workstation capacities Redesign layout for flow Emphasize preventive maintenance Reduce lot sizes Reduce setup / changeover time

Lean Implementation Requirements: Total Quality Control

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Worker responsibility Measure SQC Enforce compliance Fail-safe methods Automatic inspection

Lean Implementation Requirements: Stabilize Schedule

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Level schedule Underutilize capacity Establish freeze windows

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Lean Implementation Requirements: Kanban-Pull

Demand pull Backflush Reduce lot sizes

Lean Implementation Requirements: Work with Vendors

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Reduce lead times Frequent deliveries Project usage requirements Quality expectations

Lean Implementation Requirements: Reduce Inventory

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Look for other areas Stores Transit Carousels Conveyors

Lean Implementation Requirements: Improve Product Design

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Standard product configuration Standardize and reduce number of parts Process design with product design Quality expectations

Lean Implementation Requirements: Concurrently Solve Problems

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Root cause Solve permanently Team approach Line and specialist responsibility Continual education

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Lean Implementation Requirements: Measure Performance

Emphasize improvement Track trends

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Value Stream Mapping

A method of visually mapping a product's

production path (materials and information) from "door to door".

Value stream is all the actions (both value added

and non-value added) currently required to bring a product through the main flows essential to every product:

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Value Stream Mapping;

Value Stream Mapping( Contd)

helps to visualize more than just the single-process level

more than waste helps seeyour value stream - it helps see the sources of waste in

provides a common language for talking about manufacturing processes

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ties together lean concepts and techniques forms the basis of an implementation plan shows the linkage between the information flow
and the material flow

Value Stream Mapping (contd.)

is much more useful than quantitative tools and

layout diagrams that produce a tally of non-value added steps, lead time, distance traveled, the amount of inventory, and so on.

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Lean in Services (Examples)

Organize Problem-Solving Groups Upgrade Housekeeping Upgrade Quality Clarify Process Flows Revise Equipment and Process
Technologies

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Lean in Services (Examples)

Level the Facility Load Eliminate Unnecessary Activities Reorganize Physical Configuration Introduce Demand-Pull Scheduling Develop Supplier Networks

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Question Bowl
Lean Production seeks to achieve high volume production using which of the following?
a. b. c. d. e.

Minimal inventory of raw materials Minimal inventory of work-in-process Minimal inventory of finished goods All of the above None of the above

Answer: d. All of the above

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Question Bowl
In the Toyota Production System, the elimination of waste involves which of the following?
a. b. c. d. e.

Overproduction Waiting time Transportation All of the above None of the above

Answer: d. All of the above

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Question Bowl
In the Pull System the partner that begins the process of pulling is which of the following?
a. b. c. d. e.

Customers Vendors Fabrication personnel CEO All of the above

Answer: a. Customer

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Question Bowl
A Lean Production program requires which of the following?
a. b. c. d. e.

Employee participation Total quality control Small lot sizes Continuing improvement All of the above

Answer: e. All of the above (Also included in Industrial engineering/basics)

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Question Bowl
Inventory has been known to hide which of the following production problems?
a. b. c. d. e.

Scrap Vendor delinquencies Decision backlogs All of the above None of the above

Answer: d. All of the above

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Question Bowl
You want to determine how many kanban card sets you need for an operation. You find that average number of units demanded is 1,000 per hour, the lead time to replenish the order for this item is 10 hours, the container size is 10 units, and the safety stock is estimated to be 5% of the expected demand. Which of the following is the desired number of kanban card sets?
a. b. c. d. e.

1050 1000 605 500 None of the above

Answer: a. 1050 ([1000x10](1+0.05)/10=1050)

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Question Bowl
When trying to implement Lean system a stabilized schedule includes which of the following?
a. b. c. d. e.

Demand pull Backflush Fail-safe methods All of the above None of the above

Answer: e. None of the above (These include: level schedule, underutilization capacity, and establish freeze windows.)