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history y of lean manufacturing g Just in time Toyota systems Pioneers Pi of fl lean manufacturing f i - Ohno Oh and d Shi Shingo Benefits of lean manufacturing Theory of constraints Reduction of wastes


Henry y Ford was the first p person to truly y integrate an entire production process. In 1913, he integrated consistently interchangeable parts with standard work and moving conveyance to create what he called flow production. Ford lined up fabrication steps in process order wherever possible possible. This was a revolutionary break from shop practices of the American system, that usually consisted of generalgeneralpurpose machines grouped by process. process Ford’s problem is that he could not provide the variety needed.


The American Production and Inventory Control Society (APICS) defines JIT as “A philosophy of manufacturing based on

A system for highhigh-volume production with minimal inventory (raw materials, WIP, finished goods). involves i l – timed arrivals @ workstation – reduced ‘buffer’ stocks – no waste in production system – a “Pull” system thru the plant

planned elimination of waste and continuous improvement of productivity.”

A management philosophy – Expose problems & bottlenecks – Take away ‘security blanket” production – Streamlined p – factory & warehouse networks

Lean Manufacturing Motorola .Continuous Flow Manufacturing HP .JIT Synonyms IBM .The Toyota System 4 .Management by Sight Boeing .Stockless Production R Repetitive titi Manufacturing M f t i System S t GE .Short Cycle Manufacturing Japanese .

5 .Objective of JIT Produce only the products the customer wants. Produce with perfect quality Produce with minimum lead time. Produce products with only those features the customer wants. Produce P d products d t only l at t th the rate t th that t the customer wants them.

incrementally revise the operations themselves themselves. and lot sizes.Contd… Produce with no waste of labor. 6 .every movement must have a purpose so that there is zero idle inventory inventory. Produce with methods that allow for the development of people have only the required inventory when needed. and accomplish these things at minimum cost”. reduce lead times by reducing setup times. queue lengths. improve quality to zero defects. material or equipment -.

counter clockwise • Multi Multi-p process handling g workers • Easy moving/standing operations • Standard operations defined 7 .JIT Principles Create flow production • One piece flow • Machines M hi in i order d of f processes • Small and inexpensive equipment • U cell layout.

Contd… Contd Establish “TAKT” TAKT time • rate at which the customer buys a product Build Pull Product • use of kanban system 8 .

S ll Smaller. manufacturing. but operations have been changed so that they behave somewhat like repetitive manufacturing manufacturing.Successful JIT Applications Most successful JIT applications have been in repetitive manufacturing. 9 . where batches of standard products are produced at high speeds and in high volumes. Successful use of JIT is rare in large. less l complex l job b shops h have h used d JIT. highly complex job shops where production planning and control is extremely complicated.

Changes Required for JIT JIT requires certain changes to the factory and the way it is managed: – Stabilize production schedules – Make the factories more focused – Increase work center capacities – Improve product quality – Cross C Cross-train t i workers k – Reduce equipment breakdowns – Develop D l longlong l -term supplier li relations l i 10 .

Elements of JIT Manufacturing Eliminating waste Enforced problem solving and continuous improvement People make JIT work Total Quality Management (TQM) Parallel processing Kanban production control JIT purchasing Reducing inventories Working toward repetitive manufacturing 11 .

.. or it won’t work! 12 .Benefits of JIT Inventory levels are drastically reduced: – frees up working capital for other projects – less space is needed – customer responsiveness increases T t l product Total d t cycle l time ti drops d Product quality is improved Scrap and rework costs go down Forces managers to fix problems and eliminate waste ..

cont’d… Increased c eased equ equipment p e t ut utilization at o Reduced scrap and rework P Pressure f for good d vendor d relationships l ti hi Reduced need for indirect labor 13 .

Advantages of JIT Manufacturing f Materials Cost Savings Manufacturing Cost Savings Sales Cost Savings 14 .

Toyota . Toyota. – Meanwhile. them. and limited capital availability are few of them. 15 . Japanese manufacturers faced many problems. . They could not compete with the already existing (Although declining) forces of west. when they y shifted from textile equipment manufacturing to Automobile manufacturing.TOYOTA SYSTEMS The first step of the manufacturing revolution began in Japan. – Pioneers of lean mfg. problems . By y late 1940 1940’s ’s Japan p industry y was collapsed p and economy was badly affected by the World War II II. p . west. with Toyoda y family. problem. – Limited sources of raw materials. Especially players like Ford simply out performed small manufacturers like Ford. manufacturing . In addition. automobile manufacturers faced another problem. y. – labor movements.

Challenged by these demands Toyota gave the task of making a system which will stand in these conditions to Taichii Ohno Ohno. markets. k . decades which is known as Toyota Production System (TPS) (TPS). Ohno with his colleague Shingo created a manufacturing system for next three decades. .Contd… – Therefore they could not compete on the overseas markets markets. 16 . – This made Japanese manufacturers to produce for their local markets. .

Contd… Today. is its Toyota Production System (TPS) (TPS). A key reason behind this and the carmaker’s success. Toyota y is the world’s number one car maker. Toyota’s reputation for producing quality cars remains strong strong. . The TPS is based on a number of key principles 17 . y. an unnecessary process step or defective products products. This has as its central philosophy the aim of ‘the complete elimination of all waste’. . whether that waste is in the form of excess stock. maker . .

TPS Principles: The Toyota Production System is based on a number of key principles: Just in time: The production process delivers what is needed for the next process when it is needed. assessing the problem bl directly d l is more effective ff than h hearing h about b it through a third party. Jidoka : Embodies the idea that machines will stop production as soon as any problem or defect is identified. Genchi genbutsu: If a problem arises. 18 . i improve efficiency ffi i and d product d t quality. needed rather than simply aiming for mass production to achieve economies of scale. Kaizen: Continuous improvement to eliminate waste.

19 . Respect also extends t th to the external t l environment i ti in which hi h the th company operates.Contd… Challenge: g Challenge g the status quo. Respect: TPS recognizes the intelligence and ability of all staff and gives them responsibility. q For example. Teamwork: The causes of problems can arise in areas beyond an individual’s domain. p . to try y and improve service levels or create more efficient budgets. MultiMulti -skilling enables personnel to help colleagues in other teams at busy periods periods.

It notifies management immediately if a worker has identified a fault. fault precisely identifying its location location. lines . Standardization: Another key element for quality Standardization: assurance is a focus on standardisation. Developing and relying on standardised work tasks not only ensures consistently high levels of quality. 20 . improvement. quality but also maintains production pace and provides a benchmark for implementing continuous improvement. standardisation.Contd… Andon Board: Board: The andon board is a simple p but highly g y visible electronic sign displaying the status of production lines. .

The Toyota Production System (TPS) and L Lean P Production d ti Toyota invented Lean Production in the 1940s and 50s. The company focused on eliminating wasted time and material from every step of the production process. The result was a fast and flexible process Customers got what they want. 21 . when they want it They got it at highest quality and most affordable cost.

– Building a learning culture for continuous improvement. 22 .Contd… Toyota improved production by: – Eliminating wasted time and resources. – Perfecting business processes. – Building quality into workplace systems – Finding low low-cost and yet reliable alternatives to expensive new technology technology.

Overproduction. 7. 4. 2. Excess inventory. Unused employee creativity. 23 . Over processing or incorrect processing. Waiting or time on hand. Unnecessary y movement. The Major types of nonnon-value adding waste in business or production process are: 1. 3 3. Unnecessary transport or conveyance conveyance.Contd… The Heart of the Toyota Production System: Eliminating Waste The h point of f the h TPS is to minimize time spent on nonnon-value adding activities by Positioning the materials and tools as close as p possible to the point of assembly. 5. Defects. 8. 6.


Work on productivity and profitability Improving the bottom line by reducing production costs. improved return on investment. p 25 .BENEFITS OF LEAN MANUFACTURING Financial benefits of Lean Manufacturing: Reduction of circulating assets (stock and ininprocess materials) Reduction of capital used Increase in cashcash-in in-hand.

Commercial benefits of Lean Manufacturing: Production in phase with customer demand Reduction of delivery times Greater customer satisfaction. 26 . t t Ecological production. I Increased d production d ti at t constant t ti investment.Industrial benefits of Lean Manufacturing: Less investment for same level of production. more compact plants. Improved quality.

l 27 . (5) makes the identification of future kaizens simpler. y. Some of these benefits include (1) improved quality and fewer defects. (2) reduced inventory inventory. (4) ( ) enhancement of overall manufacturing g flexibility. (3) less space required. (7) improves i employee l morale. (6) ensures a safer work environment.As a company reduces the wastes and strives for Single piece flow. many other benefits follow.

in any complex system at any point in time. For that system to attain any significant improvement that constraint must be identified and the whole system must be managed g with it in mind. Goldratt .THEORY OF CONSTRAINTS The Theory y of Constraints (TOC) ( ) is a philosophy p p y of management and improvement originally developed by Eliyahu M. like a chain with its weakest link. It is based on the fact that. there is most often only one aspect of that system that is limiting its ability to achieve more of its goal. 28 .

TOC recognizes i two t types t of f constraints t i t th that t can exist i ti in any business physical h l constraints . Machine h capacity Non Non-physical constraints – eg. The Theory of Constraints provides a practical framework for managing enterprises with a holistic and focused approach. A constraint is anything in an organization that limits it from moving toward or achieving its goal. Product demand 29 .Eg. TOC does a away a with ith conflicts between bet een local operating ope ating level decisions and global company objectives and goals.

30 . Since the constraints are keeping us from moving toward our goal goal. O Once it is i decided d id d how h to t manage the th constraints t i t within ithi the th system t Find out “ What about the majority of the resources that are not constraints?” The answer is to manage them so that they just provide what is needed to match the output of the constrained resources.Five focusing step' methodology to identify the constraint The e steps in app applying y g TOC OC a are e as follows: o o s 1. Identify the system's constraints. 3. 2. all the resources are applied that can assist in breaking them. Decide how to exploit the system's constraints. Subordinate everything else to the above decision in Step 2.

5. Elevate the system's system s constraints. 31 . When that happens. there will be another constraint. If we continue to work toward breaking a constraint (also called elevating a constraint) at some point i the h constraint i will ill no longer l be b a constraint. If the constraint is broken. return to Step 1. The constraint will be broken.4. somewhere else in the system that is limiting progress to the goal.

Do you have any one or more of the following issues in your organization? Severe Cash Shortage Vendors not delivering material on time Not meeting customer schedules Falling Sales Shrinking Profits 32 .

. 33 .would you like to Understand the root cause for all these issues? Significantly improve cash availability Improve Vendor reliability Improve On Time delivery Increase sales significantly I Increase profits fit Theory y of Constraints brings g in the p powerful methodology to identify the constraint in the company and systematically attack the associated problems problems.

CRM 34 . Besides creating an excellent work environment and motivating employees.Benefits of TOC Industry derives a host of advantages while implementing TOC. TPM. SCM and d CRM. It also l f focuses th the company's ' i investment t t in initiatives such as TQM. ERP.

8.REDUCTION OF WASTES Waste is defined as anything that does not add value to the final product. 6. 5 5. g 1. 2 2. 7. Over production W iti Waiting Work In Progress (WIP) Transportation I Inappropriate i t processing i Excess motion or ergonomic problems Defective products Underutilization of employees 35 . 3. 4. Following g are the waste categories.

Lot of learning. experimenting and thinking g has to go g into this process p 36 . All the wastes in the organization will fall in to the one of the following two categories. wastes that are avoidable wastes that are unavoidable Deciding what are the avoidable and what are unavoidable will require some good decision making.

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