Based on (Black, 2007.

Design rules for

implementing the Toyota Production System).

Prepared by Dr. ule Itr SATOLU

Purpose

So far, we have seen several tools and techniques for

making a company more lean.

Now, lets see how these tools, techniques or principles
must be implemented in an integrated way and how
they serve.

Prepared by Dr. ule Itr SATOLU

Preliminary Steps

All levels in the plant, from the production
workers to the president, must be educated in lean
production philosophy and concepts and
understand how lean is different from mass.

Top down commitment and involvement is critical.

Top management must understand that lean
design will lead to financial decisions that are
opposite to current management accounting
practices.

Prepared by Dr. ule Itr SATOLU

Preliminary Steps

The selection of measurable parameters that will track

the change is critical.

Everyone must be committed to the elimination of
waste.

The internal customer must be trained to find waste
and think about ways to eliminate waste and do this
continuously.

Prepared by Dr. ule Itr SATOLU

Preliminary Steps

The company must spread the success and reward the

teams.

The company must spread the success and reward the
teams. The company must share the gains with those
who contributed. Many companies feel that bonus
payments are the best way to reward people.

Prepared by Dr. ule Itr SATOLU

Prepared by Dr. ule Itr SATOLU

Design Rule 1
Level and balance the
manufacturing system,
Smooth the material flow
(Monden 1983):

Leveling involves the
development of mixed
model final assembly.

Balancing is getting the

output from the cells to

match the needs of final
assembly.

Establish the daily demand

Develop mixed model final

assembly; takt time

Balance the output from
the suppliers

Develop single-piece flow
in subassemblies

Sequence subassemblies
with order of assembly

Prepared by Dr. ule Itr SATOLU

Design Rule 2
Design or reconfigure the manufacturing system

Design/implement manufacturing cells (Black 1991)

Standard work for operators in cells

Prepared by Dr. ule Itr SATOLU

Design Rule 3

Setup reduction,

Teach everyone SMED

changing methods and

designs to reduce setup
time (Shingo 1985):

Setup time is delay time.
Affects lot size.

Optimum lot size is one.
Use SMED because it
permits small lots and
creates flexibility.

Develop one touch setups

in the cells

Operators perform
changeovers

Prepared by Dr. ule Itr SATOLU

Design Rule 4

Integrate quality

Inspect to prevent

control into the

manufacturing system
(Shingo 1986):

Inspection to prevent the
defect from occurring
(pokayokes).

defects.

Use the seven (7) tools
for quality control and
line stop

Teach everyone quality

Zero defects via Design
Rule 3

Prepared by Dr. ule Itr SATOLU

10

Design Rule 5

Integrate preventive

maintenance (Nakajima
1988):

Do the machines and
people behave reliably?

Design equipment to be
reliable.

Design methods to check
people and methods for
people to check machines,
identify and solve
problems.

Machines designed for

reliability using TPM

(Nakajima 1990)

Operators solve problems

Operators perform daily
maintenance

Prepared by Dr. ule Itr SATOLU

11

Design Rule 6

Integrate production

control, link the cells,

pull material to final
assembly:

Control the where,
when, and how much
material.

This is integrated
production control or
kanban.

Link the cells

Pull material to final

assembly

Kanban drives the
production

Prepared by Dr. ule Itr SATOLU

12

Design Rule 7

Integrated inventory

Gradually decrease

control:

Reduce the WIP in the
links that connect the
cells.

inventory from links

Expose problems

Solve problem, improve
system throughput time.

Prepared by Dr. ule Itr SATOLU

13

Design Rule 8

Integrate the suppliers: make them JIT

manufacturers just like you:

Suppliers become partners. Relationship built on trust.

Teach suppliers steps (rules) 1 to 7

Prepared by Dr. ule Itr SATOLU

14

Design Rule 9

Autonomation: autonomous control of quality

and quantity within the manufacturing system:

Automate the integrated pull manufacturing system.

Design/implement lean manufacturing cells

Apply computers, robots,automation.

Prepared by Dr. ule Itr SATOLU

15

Design Rule 10

Design the lean enterprise

Design new products concurrently with customers in

mind.

Design/implement lean manufacturing with lean
machine tools.

Prepared by Dr. ule Itr SATOLU

16

Source: Feld, W., 2001. Lean Manufacturing: Tools,

techniques, and how to use them. CRC Press.

Prepared by Dr. ule Itr SATOLU

17

Lean Conversion Roadmap

We talked about the design rules above.

What are the steps that must be taken by a company

that decided to make a lean conversion?

What tools and techniques must be implemented?

Prepared by Dr. ule Itr SATOLU

18

Phase-1: Lean Self Assessment

The first step required on this lean journey is to

recognize where we are currently.

In order to understand the current situation, a selfassessment that will provide a sounding board or
reflective mirror for our operating condition.

It is this story line that must be communicated to the
organization in order to win support for a change
program.

Leaders need to inform the entire organization as to the
scope of what they are changing and why.
Prepared by Dr. ule Itr SATOLU

19

Phase-1: Lean Self Assessment

After having gone through the self-assessment and

reaching agreement that there is a need for change, the

next step is to assemble a team to design, develop, and
deploy the lean manufacturing program.

The team will need to generate two key documents: a
project charter and project milestone plan.

The charter defines the projects purpose, objectives,

and outcomes.

The milestone plan: major events of the project and their
sequence, and the time frame for completion.
Prepared by Dr. ule Itr SATOLU

20

Lean Conversion Roadmap

Prepared by Dr. ule Itr SATOLU

21

Phase-1: Lean Self Assessment

In this phase, the team tries to understand where areas

of opportunity and leverage points exist within the

business.

They begin building the story line for not only why the

business needs to change but also where and how
much.

This assessment looks at process performance issues
by identifying waste or muda opportunities that exist
within the business.
Prepared by Dr. ule Itr SATOLU

22

Phase-2: Current State Gap

Then, a second debriefing is conducted with executive

management to report the findings and gain approval

to move on to the phase of Current State Gap.

The Current State Gap provides the baseline measure
of where the company is today.
In this phase, the team:

Receives training in process value analysis (PVA), lean
manufacturing principles, and lean analysis tools

Establishes process linkages through material and
information flow mapping

Quantifies where opportunities exist for waste
elimination Prepared by Dr. ule Itr SATOLU

23

Phase-2: Current State Gap

Generates design criteria based on the marketplace

Creates a SIPOC (supplier-input-process-output-

customer) map of all the major operational processes in

order to understand customer/supplier relationships and
required inputs and outputs that trigger these processes

Analyzes current performance levels in production loss
function and waste elimination opportunities in order to
prioritize implementation sequence

Develops a quick hit list for short-term improvements
and establishes a baseline for demonstrated
improvement
Prepared by Dr. ule Itr SATOLU

24

Phase-2: Current State Gap

Prepared by Dr. ule Itr SATOLU

25

Phase-3:Future State Design

After investing 3 to 6 weeks to gain an understanding of

the current state, a management debriefing is conducted

to inform executive management as to what was
discovered.

Executive management approval allows passage to the
third phase, which is focused on the Future State Design.

In this phase, the project team puts together an overall
concept design of how the site should operate.
This phase will take appr. 2 to 3 weeks and includes:

Determining what product groupings exist and how they
should be produced
Prepared by Dr. ule Itr SATOLU

26

Phase-3:Future State Design

Producing a block layout for the plant

Analyzing product demand behaviors and material/

information flow

Providing team training for the overall operations
management structure (possibly site visits) and exposure
to different manufacturing architectures

Confirming the concept design with major process
owners

Developing a new demand management process for
logistics
Prepared by Dr. ule Itr SATOLU

27

Phase-3:Future State Design

Prepared by Dr. ule Itr SATOLU

28

Phase-3:Future State Design

At the second half of phase-3, the a detailed design

conducted, concerning:

Shopfloor staffing plans

Cell workload analysis

Transition strategy

Implementation plan

Defined exit criteria

Shopfloor organization roles and responsibilities

Confirmation of the detail design with major process

owners

Shopfloor training program

Communication program

Prepared by Dr. ule Itr SATOLU

29

Phase-4: Implementation

Now that the team has spent the last 9 to 15 weeks on

assessment, analysis, design, and planning, it is time

for the real action to begin.

Implementation phase carried out through a series of
Kaizen events.

Once the cell is performing at the desired level (first
stage completed) and has passed the audit, the cell
team is allowed to pursue the second stage.

Prepared by Dr. ule Itr SATOLU

30

Phase-4: Implementation

Prepared by Dr. ule Itr SATOLU

31

Phase-4: Implementation

For example Stage-1 implementation includes:

Establishing the baseline cell design

Balancing the cell to takt time

Documenting the standard work content

Establishing visual controls

Creating the operating rules

Introducing intra-cell material pull

Defining team roles and responsibilities

Prepared by Dr. ule Itr SATOLU

32

Expected Benefits

Prepared by Dr. ule Itr SATOLU

33

Implementation of Lean Techniques

Prepared by Dr. ule Itr SATOLU

34

Conclusion

We have seen the tools and the techniques This is an

endless journey.

There is always chances of improvement for the
production system to become more lean.

Continuous improvement: Kaizen

Prepared by Dr. ule Itr SATOLU

35