Lean Manufacturing & Just-in-Time

"The most dangerous kind of waste is the waste we do not recognize." Shigeo Shingo

Reducing Waste: Push versus Pull System

Raw Material Supplier

Final Assembly FGI

Customer

PUSH

Raw Material Supplier

Final Assembly FGI

Customer

PULL
Information Flow
Material Flow

Push System
Every worker maximizes own output, making as many products as possible Pros and cons:
Focuses on keeping individual operators and workstations busy rather than efficient use of materials Volumes of defective work may be produced Throughput time will increase as work-in-process increases (Littles Law) Line bottlenecks and inventories of unfinished products will occur Hard to respond to special orders and order changes due to long throughput time

Pull System
Production line is controlled by the last operation, Kanban cards control WIP Pros and cons
Controls maximum WIP and eliminates WIP accumulating at bottlenecks Keeps materials busy, not operators. Operators work only when there is a signal to produce. If a problem arises, there is no slack in the system Throughput time and WIP are decreased, faster reaction to defects and less opportunity to create defects

Features of Lean Production

WHAT IT IS Management philosophy Pull system though the plant WHAT IT DOES Attacks waste
Exposes problems and bottlenecks Achieves streamlined production

WHAT IT REQUIRES

WHAT IT ASSUMES
Stable environment

Employee participation
Industrial engineering/basics Continuing improvement Total quality control Small lot sizes
5

Kaizen

A Little History!
Ford: Design for manufacturing
Start with an article that suits and then study to find some way of eliminating the entirely useless parts. This applies to everything a shoe, a dress, a house, a piece of machinery, a railroad, a steamship, an airplane. As we cut out useless parts and simplify necessary ones, we also cut down the cost of making. ...But also it is to be remembered that all the parts are designed so that they can be most easily made."

A Little History!
Ohno put ideas into practice systematically
When bombarded with questions from our group on what inspired his thinking, Ohno just laughed and said he learned it all from Henry Ford's book."

TPS: Toyota Production System

A system that continually searches for and eliminates waste throughout the value chain. Views every enterprise activity as an operation and applies its waste reduction concepts to each activity from Customers to the Board of Directors to Support Staff to Production Plants to Suppliers.

Elimination of Waste

Muda

Acronym CLOSED MITT Complexity Labor Overproduction Space Energy Defects

Materials Inventory Time Transportation

Elimination of Waste
1. 5S 2. Group technology

3. Quality at the source

4. JIT production

5. Kanban production control system

6. Minimized setup times 7. Uniform plant loading 8. Focused factory networks
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Minimizing Waste 5S
Good factories develop beginning with the 5Ss. Bad factories fall apart beginning with the 5 Ss. - Hirouki Hirano

Japanese Seiri Seiton Seiso Seiketsu Shitsuke

Translation Proper arrangement Orderliness Cleanliness Cleanup Discipline

English Sort Simplify Sweep Standardize Sustain

Minimizing Waste 5S
A place for everything and everything in its place Not just a housekeeping issue Critical foundation for
Setup reduction Pull systems Maintenance Inventory management

Minimizing Waste: Group Technology

Using Departmental Specialization (Job Shop) for plant layout can cause a lot of unnecessary material movement

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

Heat Treat

Lathe

Lathe

Lathe

Press

Press

Press

Minimizing Waste: Group Technology

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

Lathe

Press

Heat Treat

Grinder Saw Lathe

Lathe

Press

Minimizing Waste: JIT

Only produce whats needed The opposite of Just In Case philosophy Ideal lot size is one Minimize transit time Frequent small deliveries
Pros
Minimal inventory Less space More visual Easier to spot quality issues

Cons

???

Requires discipline Requires good problem solving Suppliers or warehouses must be close Requires high quality

Minimizing Waste: JIT

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

Engineering design redundancies

Paperwork backlog

Inspection backlogs

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Minimizing Waste Quality at the Source

Do it right the first time Call for help Andon Immediately stop the process and correct it vs. passing it on to inspection or repair

Jidoka

Minimizing Waste Kanban

Signaling device to control flow of material Cards Empty containers Lights Colored golf balls Etc

Minimizing Waste Setup Times

Long setup times drive:
Long production runs Large lots Long lead times

JIT requires small lots and minimum kanbans Setup reduction

Focused efforts Problem solving Flexible equipment

Heijunka Minimizing Waste Plant Loading

Suppose we operate a production plant that produces a single product. The schedule of production for this product could be accomplished using either of the two plant loading schedules below. Not uniform Jan. Units Feb. Units Mar. Units Total

1,200
Uniform Jan. Units

3,500 or Feb. Units 3,000

4,300
Mar. Units

9,000
Total

3,000

3,000

9,000

How does the uniform loading help save labor costs?

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Minimizing Waste Focused Factory Networks

These are small specialized plants that limit the range of products produced (sometimes only one type of product for an entire facility)

Coordination System Integration

TPS Respect for People

Level payrolls Cooperative employee unions Subcontractor networks

Keiretsu

Bottom-up management style Quality circles (Small Group Problem Solving)

TPS 4 Rules
1. 2. 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 yes-or-no way to send requests and receive responses

3. The pathway for every product and service must be simple and direct
4. 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

Lean Implementation
Total Quality Management Product Design Flow Process

Continual Inventory Reduction

Empowered Workforce Problem Solving Performance Measurement

Stable Schedule

Involved Suppliers

Kanban Pull

Summary and Conclusions

Lean Production is the set of activities that achieves quality production at minimum cost and inventory The flow of material is pulled through the process by downstream operations Lean originated with the Toyota Production System and its two philosophies elimination of waste, and respect for people CLOSED MITT forms of waste