lean production systems

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    Lean Production

    Systems

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    Lean Production

    An integrated set of activities designedto achieve high-volume productionusing minimal inventories (rawmaterials, work in process, and finished

    goods)

    Involves the elimination of waste inproduction effort

    Involves the timing of productionresources (i.e., parts arrive at the nextworkstation just in time)

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    Lean is based on the logic thatnothing will be produced until it isneeded.

    E.g. Machineries like Grindingmachines, Lathe CNC machines (costof final product will be high so it is

    economically desirable to maintainlow inventories of such products aswell as of the raw material.)

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    Pull SystemHere the customer startsthe process, pulling aninventory item from FinalAssembly

    Here the customer startsthe process, pulling aninventory item from FinalAssembly

    Then sub-assemblywork is pulledforward by that

    demand

    Then sub-assemblywork is pulledforward by thatdemand

    The process continuesthroughout the entireproduction process andsupply chain

    The process continuesthroughout the entireproduction process andsupply chain

    Customers

    Sub

    Sub

    Fab

    Fab

    Fab

    Fab

    Vendor

    Vendor

    Vendor

    Vendor

    FinalAssembly

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    Features of Lean Production

    Management philosophy Pull system though the plant

    WHAT IT IS

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

    WHAT IT REQUIRES

    Attacks waste Exposes problems or difficulties. Achieves streamlined production

    WHAT IT DOES

    Stable environment

    WHAT IT ASSUMES

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    The Toyota Production System

    Based on two philosophies:

    1. Elimination of waste

    2. Respect for people

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    Seven Types of Waste (Fujio Cho)

    1. Waste from Overproduction

    2. Waste of Waiting Time

    3. Transportation Waste

    4. Inventory Waste

    5. Processing Waste

    6. Waste of Motion7. Waste from Product Defects

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    Elements to Address Elimination of

    Waste

    1. Focused factory networks

    2. Group technology

    3. Quality at the source

    4. JIT production

    5. Uniform plant loading

    6. Kanban production controlsystem

    7. Minimized setup times

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    Minimizing Waste:

    Focused Factory

    Networks

    CoordinationSystem Integration

    These are small specializedplants that limit the rangeof products produced(sometimes only one type ofproduct for an entirefacility)

    These are small specializedplants that limit the rangeof products produced(sometimes only one type of

    product for an entirefacility)

    Some plants inJapan have asfew as 30 andas many as1000 employees

    Some plants inJapan have asfew as 30 andas many as1000 employees

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    Minimizing Waste: Group Technology (Part 1)

    Saw Saw

    Lathe PressPress

    Grinder

    LatheLathe

    Saw

    Press

    Heat Treat

    Grinder

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

    Using Departmental Specialization for plant layout

    can cause a lot of unnecessary material movement

    Using Departmental Specialization for plant layout

    can cause a lot of unnecessary material movement

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    Minimizing Waste:

    Group Technology (Part 2)

    Revising by using Group Technology Cells can reducemovement and improve product flow

    Revising by using Group Technology Cells can reducemovement and improve product flow

    Press

    Lathe

    Grinder

    Grinder

    A

    2

    BSaw

    Heat Treat

    LatheSaw Lathe

    PressLathe

    1

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    Do it right the first time

    When something goes

    wrong, stop the processimmediately and address

    Workers are trained and

    empowered to control theirown process

    Minimizing Waste:

    Quality at the Source

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    Produce what is neededwhen it is needed

    Intended for repetitivemanufacturing

    Low inventory, ordered only

    as needed

    Minimizing Waste:

    JIT Production

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    Minimizing Waste: Inventory

    Hides Problems

    Work in

    process

    queues

    (banks)

    Changeorders

    Engineering design

    redundancies

    Vendor

    delinquencies

    Scrap

    Design

    backlogs

    Machine

    downtime

    Decision

    backlogsInspection

    backlogs

    Paperwork

    backlog

    Inventory

    Productivity

    Problems

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    Work in

    process

    queues

    (banks)

    Changeorders

    Engineering design

    redundancies

    Vendor

    delinquencies

    Scrap

    Design

    backlogs

    Machine

    downtime

    Decision

    backlogsInspection

    backlogs

    Paperwork

    backlog

    Inventory

    Minimizing Waste: Inventory

    Hides ProblemsExample: By identifyingdefective items from a

    vendor early in the

    production process the

    downstream work is

    saved

    Example: By identifying

    defective work by

    employees upstream, the

    downstream work is

    saved

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    Minimizing Waste:

    Uniform Plant Loading (heijunka)

    Not uniform Jan. Units Feb. Units Mar. Units Total

    1,200 3,500 4,300 9,000

    Uniform Jan. Units Feb. Units Mar. Units Total

    3,000 3,000 3,000 9,000

    Suppose we operate a production plant that produces a singleproduct. The schedule of production for this product could be

    accomplished using either of the two plant loading schedules

    below.

    Suppose we operate a production plant that produces a singleproduct. The schedule of production for this product could be

    accomplished using either of the two plant loading schedules

    below.

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

    or

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    What is KANBAN

    A system of continuous supply ofcomponents and parts such that workershave what they need, where they need it

    and when they need it. KAN CARD

    BAN SIGNAL

    Therefore KAN + BAN = Signal cards

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    Why consider Kanban control?

    Lower Inventory investment

    Better customer service

    Reduce administrative cost

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    Manual Kanban

    Communication signal from downstream process(customer) to an upstream process (producer)

    Visible record (The card is an authorizationThe card is an authorizationfor the next container of material to befor the next container of material to be

    produced)produced) Cards indicate standard quantity of production

    Maintain discipline of Pull production (AAsequence of kanbans pulls materialsequence of kanbans pulls material

    through the process)through the process)

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    Kanban

    1.1. User removes aUser removes astandard sizedstandard sizedcontainercontainer

    2.2. Signal is seen bySignal is seen bythe producingthe producingdepartment asdepartment asauthorization toauthorization toreplenishreplenish

    Part numbersPart numbers

    mark locationmark location

    Signal markerSignal markeron boxeson boxes

    Figure 16.8Figure 16.8

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    Advantages of Kanban

    Allow only limited amount of faulty orAllow only limited amount of faulty ordelayed materialdelayed material

    Problems are immediately evidentProblems are immediately evident Puts downward pressure on badPuts downward pressure on bad

    aspects of inventoryaspects of inventory

    Standardized containers reduceStandardized containers reduceweight, disposal costs, wasted space,weight, disposal costs, wasted space,and laborand labor