manufacturing systems: emp-5179 module #2: introduction to lean manufacturing & jit

Kenneth J. Andrews EMP-5179-2-1

Manufacturing Systems: EMP-5179

Module #2: Introduction to Lean Manufacturing & JIT

Dr. Ken AndrewsHigh Impact Facilitation

Fall 2010


Program Overview (Modules & Weeks)7. Quality at Source

8. Customer Ints.

9. QFD & DFM

10. Teams & Change

11. Term Papers

1. Intro. ToManuf. Systems

2. Lean & JIT

3. Push vs. PullProcess Impr.

4. TQ Tools & Techs.

5. Value Stream Maps

6. Manuf. Metrics 12. Final Exam (Dec 13)

No Class on Nov 8?

No Class on October 11


EMP-5179: Module #2

Critical Elements of Lean Manufacturing

Just in Time (JIT)

Manufacturing Layouts


The Gestation of TPS

Eiji Toyoda visit to Henry Ford’s factory in 1950.

The SMED (Single-digit in Minutes Exchange of Dies) program at the stamping plant.

Deming’s quality movement in Japan.

The Engineers: Taiichi Ohno and Shigeo Shingo

“Japanese” Manufacturing hits America in 1970


The Toyota Production System (TPS)

5S Programme &

Standardisation

Increase Profits By Eliminating Waste

JI

T JIT

Just In TimeProcessing

Jido

ka Jidoka

Jidoka:No Defects Passed on

Flexibility to Make Only What Customer Wants

WasteElimination

“Production Smoothing” Foundation


TheLean Factory

•Increased Productivity•Reduced WIP

•Customer Focus•Reduced Lead-Time

Kanban / Demand Pull Cellular / Flow / TAKT Time

Visual Systems/5S Quick Changeover

Quality at the source

Batch Reduction

TeamWork

Low Variability

Contin. Improvement

Value Stream MappingCustomer Driven

Waste Reduction

JIT

Total Quality

Right MetricsQFD

Critical Elements of the Lean Enterprise


“A systematic approach to identifying and eliminating waste (non-value-added activities)

through continuous improvement by flowing the product at the pull of the customer in pursuit of

perfection.”

-- The Lean Network

Lean Defined


The Wheels

Lean Manufacturing Techniques

Total Organizational Buy-in

Sales-Production-Inventory Management

Vision

Quality Management System


The Spokes

Key Indicators

0123456789

10


Sales, Production, Inventory Planning

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10P.Q.R. analysis

Forecasting

Production smoothing

Kanban

Supermarket

Visual Pull SignalsCapacity Planning

Standard W.I.P.

Inventory Turns

Product Introduction

Delivery Performance


Total Quality Management

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10SPC

Best Practices

Process Control

Poka-Yoke

Waste Reduction

5-S

ISO 9000 StructureQuality Assurance

Problem-solving Tools

Supplier Quality

Information Flow

First-pass Quality

Prevention vs. Detection


Lean Manufacturing Techniques

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10

Value Stream Mapping™

Takt Time

One-piece Flow

Pull System

SMED (Setup)

O.E.E.

Flow Velocity

Productivity (Labor Cost)

Facility LayoutStandard Work

Jidoka (Autonomation)

Machine Reliability

TPM

Value-added Ratio

Line Balancing

Handling Reduction

Sustainment of Gains

Right-sized Equipment


Total Organizational Buy-in

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10Vision

Action Plan

Policy Deployment

Enfranchisement

Performance based pay

Skills Training

C.I. Culture

Kaizen Promotion Office

MoraleVisuals

Lean Training

Change Management

W.I.I.F.M. (Incentives)

Safety Focus

Profitability

Team Building

Effective Leadership


The Not So Perfect Vehicle


Did you know? That Toyota has probably the most efficient

supply base in the world 300 1st tier suppliers - 2-3 per part Co-located and tightly synchronised by

2-4 hourly milk rounds from Toyota Conducting joint process analysis together for 30

years As a result each supplier delivers each part

99.9995% right first time on time!


Toyota’s Success

Is based on a different business logic: -

Organised to manage the whole value stream for each product family – rather than to manage and optimise each asset and firm in isolation

Pulling the right products through the system quickly as required by the customer – rather than making to forecast and selling from stock to strangers

Based on operational capability and joint process analysis - rather than relying on supplier auctions and big centralised information systems


Where to Start?

The starting point is to learn to distinguish value creation from waste in your whole value stream

By putting on Muda glasses! By choosing a product family By assembling the team and taking a walk together

up the value stream And drawing a map of what you find!


Non - Value Added: 95%

Are Customers willing to pay for this????

Value Added: 5% • Overproduction• Excess Inventory• Product Defects• Non-value added

processing• Wait time• Underutilized labor• Excess motion• Unnecessary

Transportation

Waste

Waste = Elements of production that add time, effort and cost but no value


Percent of lead time5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100

Typical Approach

VA

Preferred Approach

NVA

NVA

NVA

VA

VA

Typical vs. Preferred Approach


Identify the Customer

Value added is always determined from the Customer’s perspective.

Who is the Customer? Every process should be focused on adding value to the Customer. Anything that does not add value is waste. Some non-valued added activity is necessary waste (“NVA-R”)

– Regulatory

– Legal


Summary: Mass vs. Lean

Make as much as possible

Overproduction is good

Look after your own job

If process is good, don’t change

Don’t stop the production line

Band-aid problems

Front-line people are responsible for the production output

?????????Mass Prodn. Lean Mfg.


Basic Elements of

Lean Production


ERP-5179: Module #2

Critical Elements of Lean Manufacturing

Just in Time (JIT)

Manufacturing Layouts


Time-Based Competition

It is no longer good enough for firms to be high-quality and low-cost producers.

To succeed today, they must also be first in getting products and services to the customer fast.

To compete in this new environment, the order-to-delivery cycle must be drastically reduced.

JIT is the weapon of choice today in reducing the elapsed time of this cycle.


Distri- bution and Customer

Service

Custo-mer

PlacesOrder

OrderEntry

Engi-neeringDesign

Sched-uling

ManufacturingLead Times

PurchasingLead Times

ManufacturingCumulative Lead Time

Order-to-Delivery Cycle

Order-to-Delivery Cycle

Mfg. Lead Time = Time in the mfg system


JIT Manufacturing Philosophy

The main objective of JIT manufacturing is to reduce manufacturing lead times.

100% capacity utilization is not the predominant objective.

The result is a smooth, uninterrupted flow of small lots of products throughout production.


JIT: Pull System The downstream process takes the product they need and

pulls it from the producer. This customers pull is a signal to the producer that the product has been ordered.


JIT: Pull System

Benefits:– Eliminate waste.– Eliminate over production.– Reduce inventory and warehousing costs.

Restrains.– Higher shipping costs per unit.– Needs extensive supplier and system integration.


Eliminating Waste in Manufacturing

Make only what is needed now. Reduce waiting by coordinating flows and balancing

loads. Reduce or eliminate material handling and shipping. Eliminate all unneeded production steps. Reduce setup times and increase production rates. Eliminate unnecessary human motions. Eliminate defects and inspection.


10 minutes10 minutes

Batch & Queue Processing

Lead Time30+ minutes for total order21+ minutes for first piece

10 minutes

ProcessA

ProcessB

ProcessC

ProcessB

ProcessA

ProcessC

Continuous Flow Processing

12 min. for total order3 min. for first part

Batch = 10 units; Each Process = 1 minute


Reducing Inventoriesthrough Setup Time Reduction

Central to JIT is the reduction of production lot sizes so that inventory levels are reduced.

Smaller lot sizes result in more machine setups More machine setups, if they are lengthy,

result in:– Increased production costs

– Lost capacity (idle machines during setup)

The answer is: REDUCE MACHINE SETUP TIMES


Benefits of JIT

Inventory levels are drastically reduced:– frees up working capital for other projects

– less space is needed

Total product cycle time drops Product quality is improved Customer responsiveness increases Scrap and rework costs go down Forces managers to fix problems and eliminate waste

.... or it won’t work!


Lathe Milling Drilling

Grinding

Assembly

Receiving andShipping

L

L L

L

L

L

L

L M

MM

M M

M

A A

A A

D

D D

D

G

G

G

G G

G

Functional (Process) Layouts are Inefficient


Process Layout Characteristics

Advantages– Deep knowledge of the process– Common tooling and fixtures– Most flexible -- can produce many different part

types

Disadvantages– Spaghetti flow -- everything gets all tangled up– Lots of in-process materials– Hard to control inter-department activities– Can be difficult to automate


Shipping

L L M D

L M D

G

L M GGA A

Receiving

Part #1

Part #3

Part #2

Product Layout


Product Layout Characteristics

Advantages– Easy to control -- input control– Minimum material handling -- frequently linked

to the next process– Minimal in-process materials– Can be more easily automated

Disadvantages– Inflexible -- can only produce one or two parts– Large setup– Duplicate tooling is required for all cells


Cell #2

Cell #3

Cell #1

D D M A

D ML L A

D

M

LM

A

Cellular Layout


Cellular Layout Characteristics

Advantages– Control is simplified– Common tooling and fixtures– Flexible -- can produce many different part

types - a part family??

Disadvantages– Setup ??– Need to know about many different processes– Requires “single-piece” (continuous) flow


Cells with Worker Routes


Worker Routes Lengthen as Volume Decreases


Cellular Manufacturing

A product- centered series of operations.

Layout: U-shape or semi-circle.

Equipment is movable and placed in close proximity.

Enables quick feedback between operators.

Workers within the cells are cross-trained to perform multiple tasks.


Essential Elements of JIT Purchasing

Cooperative and long-term relationship between customer and supplier.

Supplier selection based not only on price, but also delivery schedules, product quality, and mutual trust.

Suppliers are usually located near the buyer’s factory.

Shipments are delivered directly to the customer’s production line.

Parts are delivered in small, standard-size containers with a minimum of paperwork and in exact quantities.

Delivered material is of near-perfect quality.


Problem Solving and Continuous Improvement

JIT is a system of enforced problem solving. One approach is to lower inventory gradually to

expose problems and force their solution. With no buffer inventories to rely on in times of

production interruptions, problems are highly visible and cannot be ignored.

The job of eliminating production problems is never finished.

Continuous improvement - a practice the Japanese call kaizen - is central to the philosophy of JIT.


Hybrid Approach to Lean (Example)

Specials CellsStandard Cells J.I.T. Cells15% Sales 25% Sales 60% Sales

Prototypes

Untested CNCprograms

One of a kindSpecial Tooling

Engineered toorder

Proven CNCprograms

Parts that will runagain

Set-ups are welldocumented

Quality needs aredefined

All the conditions of thestandard cell apply plus:

Customer forecasts fairlyaccurate

Customers buying into JITprograms

Vendors support the requiredlead times


People Make JIT Work JIT has a strong element of training and involvement of

workers.

A culture of mutual trust and teamwork must be developed.

An attitude of loyalty to the team and self-discipline must be developed.

Another crucial element of JIT is empowerment of workers, giving them the authority to solve production problems.


Typical Benefits of Applying Lean Thinking

Percentage of Benefits Achieved

0 20 40 60 80 100

Lead time reduction

Productivity increase

WIP reduction

Quality improvements

Space utilization

Sour

ce:

NIS

T


Lean: Summary

Lean manufacturing is a conscious strategy

Lean manufacturing is an organization-wide, cross-functional change process

Successful implementation of Lean Manufacturing requires commitment and involvement across all organizational levels.

World Class companies are implementing Lean Manufacturing concepts in addition to Supply Chain Management and Six Sigma.

manufacturing systems: emp-5179 module #2: introduction to lean manufacturing & jit

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