lean production - report.docx

7/24/2019 Lean Production - Report.docx

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University of Panama

College of Engineering

Subject:

Production systems

Topic:Lean production and Agile

Manufacturing

Student:

Agustn A! Carrera A!

Professor:

"ng! Pablo Adames

Presentation day:

Monday# August $%# $&'(


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Introduction

Lean is a continuous improvementp)ilosop)y *)ic) is Synonymous *it)+ai,en or t)e Toyota ProductionSystem! T)e )istory of leanmanagement or lean manufacturing istraced bac- to t)e early years of Toyotaand t)e development of t)e ToyotaProduction System after .apan/s defeatin 00"" *)en t)e company *as loo-ingfor a means to compete *it) t)e US carindustry t)roug) developing and

implementing a range of lo*1costimprovements *it)in t)eir business!


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Lean production and AgileManufacturing

T)e term itself *as coined by M"T researc)ers todescribe t)e collection of e2ciencyimprovements t)at Toyota Motors undertoo- tosurvive in t)e .apanese automobile businessafter 0orld 0ar ""! 3ecause of its origins at

Toyota Motors# t)e same collection ofimprovements )as also been called t)e 4Toyotaproduction system5!

T)ere are t*o de6nitions t)at are important toemp)asi,e:

7ne is a parap)rase of t*o of t)e aut)ors80omac- and .ones9 of t)e boo- 4T)e Mac)inet)at c)anged t)e *orld5 t)e de6ne lean asdoing 4more and more *it) less and less1less)uman e;ort# less e


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are made more >e=ible and e2cient by adoptingmet)ods t)at reduce *aste in all forms!

According to anot)er aut)or of T)e Mac)ine t)at

c)anged t)e *orld# lean production is based onfour principles:

Minimize waste

Perfect rst-time

qualityFlexible

production linesContinuous

improvement

Lean production is going to be compared *it) itspredecessor# mass production in t)e follo*ingde6nitions!

Minimi,e *aste! All four principles of leanproduction are derived from t)e 6rst principle:minimi,e *aste! Taiic)i 7)no/s list of *asteforms can be listed as follo*s:

'!Production of defective parts!$!Production of more t)an t)e number of

items needed!%!Unnecessary inventories!?!Unnecessary processing steps!(!Unnecessary movements of people!@!Unnecessary transport of materials!


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!0or-ers *aiting!

T)e various procedures used in t)e Toyotaplants *ere developed to minimi,e t)eseforms of *aste!

Perfect Birst1Time uality! "n t)e area of


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in a lean system to act as a bu;er! "n massproduction# inventory bu;ers are used just incase t)ese


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average of ''! job classi6cations in .apaneseplants versus an average of @!' in U!S!plants! Be*er job classi6cations mean more

cross1training among *or-ers and greater>e=ibility in t)e *or- force!

"n mass production# t)e Foal is to ma=imi,ee2ciency! T)is is ac)ieved using longproduction runs of identical parts! Longproduction runs tolerate long setupc)angeovers!

"n lean production# procedures are designed tospeed t)e c)angeover! Geduced setup timesallo* for smaller batc) si,es t)us providingt)e production system *it) greater >e=ibility!

Ble=ible production systems *ere needed inToyotaHs comebac- period because of t)e

muc) smaller car mar-et in .apan and t)eneed to be as e2cient as possible!

Continuous improvement! "n mass production#t)ere is a tendency to set up t)e operation#and if it is *or-ing leave it alone! Massproduction lives by t)e motto: 4"f it ainHt

bro-e# donIt 6= it5! 3y contrast# leanproduction supports t)e policy of continuousimprovement! Called -ai,en by t)e .apanese#continuous improvement means constantlysearc)ing for and implementing *ays to


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reduce cost# improve


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dened as!An enterprise levelmanufacturing

strategy of introducing ne*prodcuts intorapidly c)angingmar-ets!

An organi,ationalability to t)rive in a

competitiveenvironmentc)aracteri,ed bycontinuous andsometimesunforeseen c)ange!

"n ''# an industry1led study *asaccomplis)ed under t)e auspices of t)e"acocca "nstitute at Leig) University! T)estudy *as sponsored by t)e United StatesJavy Mantec) Program and involved '%U!S! companies! T)e objective of t)e study

*as to consider *)at t)e c)aracteristics*ill be t)at successful manufacturingcompanies *ill posse in t)e year $&&(!T)is study identi6ed four principles ofagibility! Manufacturing companies t)atare agile competitors tend to e=)ibit t)eseprinciples or c)aracteristics! T)e four

principles are:'!7rgani,e to Master C)ange: An agile

company is organi,ed in a *ay t)at allo*sit to t)rive on c)ange and uncertainly! "n acompany t)at is agile# t)e )uman and


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p)ysical resources can be rapidlyrecon6gured to adapt to c)angingenvironment and mar-et opportunities!

$!Leverage t)e impact of People andinformation: "n an agile company#-no*ledge is valued# innovation isre*arded# aut)ority is distributed to t)eappropriate level of t)e organi,ation!Management provides t)e resources t)atpersonnel need! T)e organi,ation is

entrepreneurial in spirit! T)ere is a4climate of mutual responsibility for jointsuccess!5

%!Cooperate to en)ance competititveness:4Cooperation1internally and *it) ot)ercompanies1is an agile competitorIsoperational strategy of 6rst c)oice5! T)e

objective is to bring products to mar-et asrapidly as possible! T)e re


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problems! Pricing of t)e product can bebased on t)e value of t)e solution to t)ecustomer rat)er t)an on manufacturing

cost!

As t)e de6nition and t)e list of four agilityprinciples indicate# agile manufacturinginvolves more t)an just manufacturing! "tinvolves t)e 6rmHs organi,ationalstructure# it involves t)e *ay t)e 6rm

treats it people# it involves partners)ips*it) ot)er organi,ations# and it involvesrelations)ips *it) customers! "nstead of4agile manufacturing5# it mig)t be moreappropriate to just call t)is ne* system ofdoing business 4agility5!

Mar-et forces and agilityA number of mar-et forces can beidenti6ed t)at are driving t)e evolution ofagility and agile manufacturing inbusiness! T)ese forces include:

"ntensifying competition: Signs of

intensifying competition include:

'!Flobal competition$!Kecreasing cost of information%!Fro*t) in communication

tec)nologies?!Pressure to reduce time1to1mar-et


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(!S)orter product lives@!"ncreasing pressures on costs and

pro6ts

Bragmentation of mass mar-ets: Massproduction *as justi6ed by t)ee=istence of very lare mar-ets formass produced products! T)e signs oft)e trend to*ard fragmented mar-etsinclude:

'!Emergence of nic)e mar-ets# for

e=ample# di;erent snea-ers fordi;erent sports and nonsportsapplications!

$!Dig) rate of model c)anges!%!Keclining barriers to mar-et entry

from global competition!?!S)rin-ing *indo*s of mar-et

opportunity! Producers mustdevelop ne* product styles ins)orter development periods!

Cooperative business relationc)ips: T)ere is

more cooperation occurring amongcooperation in t)e United States! T)ecooperation ta-es many forms# including:

'!"ncreasing inter1enterprise cooperation!$!"ncreased outsourcing!%!Flobal sourcing!?!"mproved labor management

relations)ips!


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(!T)e formation of virtual enterprisesamong companies! 7ne mig)t vie* t)eincreased rate of corporate mergers t)at

occurring at time of *riting as ane=tension of t)ese cooperativerelations)ips!

C)anging customer e=pectations: Mar-et

demands are c)anging! Customers arebecoming more sop)isticated andindividualistic in t)eir purc)ases! Gapid

delivery of t)e product# support t)roug)outt)e product life# and )ig)


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for pro6ting from rapidly c)anging andcontinually fragmenting global mar-ets forcustomi,ed products and services! 3ecoming

agile is certainly not t)e only objective of t)e6rm! T)ere are important ot)er objectives# suc)as ma-ing a pro6t and surviving into t)e future!Do*ever# becoming more agile is entirelycompatible *it) t)ese ot)er objectives! "ndeed#becoming agile represents a *or-ing strategyfor company survival and future pro6tability!

Do* does a company become more agile T*oimportant approac)es are:

'!To reorgani,e t)e companyHs productionsystems to ma-e t)em more agile!

$!To manage relations)ips di;erently andvalue t)e -no*ledge t)at e=ists in t)e

organi,ation!

Reorganizing the production system for

agility

Companies see-ing to be agile must organi,et)eir production operations di;erently t)an t)e

traditional organi,ation! T)e t)ree basic areasfor t)is are:

'!Product design$!Mar-eting%!Production operations


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Product design: Georgani,ing production foragility includes issues related to product design!

As *e )ave noted previously# decisions made inproduct design determine appro=imately &N oft)e manufacturing cost of a product! Bor acompany to be more agile# t)e designengineering department must develop productst)at can be c)aracteri,ed as follo*s:

Customi,able! Products can be customi,edfor individual nic)e mar-ets! "n some cases#t)e product must be customi,able forindividual customers!

Upgradeable! "t s)ould be possible for

customers *)o purc)ased t)e base modelto subse


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redesigned# t)e entire product does notre


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Mar"etin! A companyHs design andmar-eting objectives must be closely lin-ed!T)e best e;orts of design may be lost if t)e

mar-eting plan is >a*ed! 3eing an agilemar-eting company suggests t)e follo*ingobjectives several of *)ic) are relateddirectly to t)e preceding product designattributes:

Aggressive and proactive product

mar-eting! T)e sales and mar-eting

functions of t)e 6rm s)ould ma-e c)ange)appen in t)e mar-etplace! T)e companys)ould be t)e c)ange agent t)at introducest)e ne* models and products!

Cannibali,e successful products! T)e

company s)ould introduce ne* models toreplace and obsolete its most successful

current models! Bre


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E;ective nic)e mar-et competitor! Many

companies )ave become successful bycompeting e;ectively in nic)e mar-ets!

Using t)e same basic product platform# t)eproduct )as been recon6gured to provideo;erings for di;erent mar-ets! T)e snea-erindustry is a good e=ample )ere!

Production operations# A substantial impact

on t)e agility of t)e production system can beac)ieved by reorgani,ing factory operations andt)e procedures and systems t)at support t)eseoperations! 7bjectives in production operationsand procedures t)at are consistent *it) anagility strategy are t)e follo*ing:

3e a cost1e;ective# lo*1volume producer!

T)is is accomplis)ed using >e=ibleproduction systems and lo* set up times!

3e able to produce to customer order!

Producing customer order reducesinventories of unsold 6nis)ed goods!

Master mass customi,ation! T)e agile

company is capable of economicallyproducing a uni


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numerical control mac)ine tools# parametricpart programming# robots t)at arereprogrammed for di;erent jobs#

programmable logic controllers# mi=ed1model production lines and modular 6=tures86=tures designed *it) a group tec)nologyapproac)# *)ic) typically possess acommon base assembly to *)ic) areattac)ed components t)at accommodatet)e di;erent si,es or styles of *or- units9!

3ring customers closer to t)e productionprocess! Provide systems t)at enablecustomers to specify or even design t)eiro*n uni


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Treat production as a system t)at e=tends

from suppliers t)roug) to customers! T)ecompanyHs o*n factory is a component in a

larger production system t)at includessuppliers t)at deliver ra* materials andparts to t)e factory! "t also includes t)esuppliersH suppliers!

Manain $elations%ips for aility

Cooperation s)ould be t)e business strategy of

6rst c)oice 8t)ird principle of agility9! T)egeneral policies and practices t)at promotecooperation in relations)ips and# in general#promote agility in an organi,ation include t)efollo*ing!

Management p)ilosop)y t)at promotes

motivation and support among employees! Trust1based relations)ips!

Empo*ered *or-force!

S)ared responsibility for success or failure!

Pervasive entrepreneurial spirit!

&nablin 'ec%noloies and Manaement

Practices for Aile Manufacturin&nablin tec%noloies Computer numerical

control!Kirect numerical control!Gobotics!


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Programmable logiccontrollers!Froup tec)nology andcellular manufacturing!Ble=ible manufacturingsystems!CAKCAM and C"M!Gapid prototyping!Computer1aided processplanning!

&nablin manaement

practices

Concurrent engineering!

Manufacturing resourceplanning!.ust1in1time productionsystems!Geduced setup andc)angeover times!S)orter productdevelopment time to

increases responsivenessand >e=ibility!Production based onorders rat)er t)anforecasts!Lean production

T)ere are t*o di;erent types of relations)ipst)at s)ould be distinguis)ed in t)e conte=t ofagility:

'!"nternal relations)ips


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$!Gelations)ips bet*een t)e company andot)er organi,ations!

"nternal relations)ips! "nternal relations)ips are

t)ose t)at e=ist *it)in t)e 6rm# bet*eenco*or-ers and bet*een supervisors andsubordinates! Gelations)ips inside t)e 6rm mustbe managed to promote agility! Some of t)eimportant objectives include:

'!Ma-e t)e *or- organi,ation adaptive

$!Provide cross1functional training%!Encourage rapid partners)ip formation?!Provide e;ective electronic

communications capability

E=ternal relations)ips! E=ternal relations)ips aret)ose t)at e=ist bet*een t)e company ande=ternal suppliers# customers# and partners! "t is

desirable to form and cultivate e=ternalrelations)ips for t)e follo*ing reasons:

'!To establis) interactive# proactiverelations)ips *it) customers!

$!To provide rapid identi6cation andcerti6cation of suppliers!

%!To install e;ective electroniccommunications and commercecapability

?!To encourage rapid partners)ipformation for mutual commercialadvantage!


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(aluin )nowlede# "t is t)at t)epeople in an organi,ation# t)eir s-ills

and -no*ledge and t)eir ability to useinformation e;ectively and innovatively#are distinguis)ed c)aracteristics of anagile competitor! To *)atever e=tent t)ispremise applies to a given organi,ation#t)e s-ill and -no*ledge base must beencouraged# developed# and e=ploited

for t)e good of t)e organi,ation!

Aility versus Mass production

Li-e lean production# agility is oftencompared *it) mass production! "n t)iscomparison *e must interpret massproduction to include all of t)e re


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T)e purest form of mass productionprovides )uge volumes of identicalproducts! 7ver t)e years# t)e tec)nology

of mass production )as been re6ned toallo* for minor variations in t)e product8*)ic) is called 4mi=ed1modelproduction59!

Comparison of Mass Production and

Aile Manufacturin

Mass Production Agile ManufacturingStandardi,edproductsLong mar-et lifee=pectedProduce to forecastLo* informationcontent

Single time salesPricing by productioncost

Customi,ed productsS)ort mar-et lifee=pectedProduce to orderDig) informationcontentContinuing relations)ip

Pricing by customervalue

Comparison of Lean and Agile

Four principles of *ean Production and

Aile ManufacturinLean Production Agile Manufacturing


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'! Minimi,e *aste$!Perfect 6rst1time


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Comparison of Lean Productionand Agile ManufacturingAttributes

*ean Production Aile

ManufacturinEn)ancement ofmass productionBle=ible productionfor product varietyBocus on factory

operationsEmp)asis on suppliermanagementEmp)asis on e2cientuse of resourcesGelies on smoot)production sc)edule

3rea- *it) massproduction emp)asison masscustomi,ation!Freater >e=ibility for

customi,ed products!Scope is enterprise*ide!Bormation of virtualenterprises!Emp)asis on t)rivingin environmentmar-et by

continuousunpredictablec)ange!Ac-no*ledge andattempts to beresponsive toc)ange!


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Conclusion

Kuring t)e reali,ation of t)is

report "Ive reali,ed about t)eimportance of lean productionand agile manufacturing in t)egro*t) of t)e companies# due tot)at most companies before t)e

development of t)is met)odsused to )ave a lot of losses asresult of a bad organi,ation ormanagement!


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+ibliorap%y

3oo-: Automation

production systems andcomputer integratedmanufacturing!Aut)or: Mi-ell P! FrooverEdition: $nd

lean production - report.docx

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