Production Management – PRDH20-2

Session 14 → Lean Manufacturing (Concepts +

TPM)
What is Value Added?

◼ A step is value-added if
◼ The Customer recognizes the value
◼ It changes the Fit, Form, or Function of the product
◼ It is done right at the first time

◼ A Value Adding Activity transforms or shapes raw material

or information to meet customer requirements
◼ All three of these conditions must be met

◼ Types of processes
◼ Value added/ Non-value added/ Necessary, but non-
value added
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Push Vs. Pull Approach

◼ Push approach
◼ Forecast based
◼ “Move the job on when finished”
◼ Problem → Creates excessive inventory

◼ Pull approach
◼ Coordinated production
◼ Demand pulled through system
◼ Extensive use of visual order triggers
◼ Production/Withdrawal kanban
◼ Problem → Cannot manage high demand uncertainty

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Waste

◼ ‘Reducing’ Employee ≠ ‘Increasing’ Productivity

◼ ‘Reducing’ Waste = ‘Increasing’ Productivity

◼ Seven types of waste (Muda/TIMWOOD) – Taiichi Ohno

◼ Transportation
◼ Inventory
◼ Motion/Movement
◼ Waiting
◼ Over-processing
◼ Over-production
◼ Defects

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Muda in Service – A Hospital Example

◼ Transportation
◼ Moving patients unnecessarily from one hospital unit to
another
◼ Inventories
◼ Inputs to the process that are waiting to be used (e.g.,
stock of aspirin)
◼ Motion/Movement
◼ Staff walking to various places around the work area to
obtain supplies
◼ Waiting
◼ A radiologist waiting for a patient to be brought into
the exam room
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Muda in Service – A Hospital Example
– Continued
◼ Over-processing
◼ Continuing to care for patients in the hospital when
they could be discharged
◼ Over-production
◼ Performing unnecessary tests to prevent a lawsuit for
malpractice
◼ Defects
◼ Rebilling the insurance company because the first bill
contained an error

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Flow Process Chart

Job Requisition of petty cash

Details of Method
Requisition made by department head
Put in “pick-up” basket
To accounting department
Account and signature verified
Amount approved by treasurer
Amount counted by cashier
Amount recorded by bookkeeper
Petty cash sealed in envelope
Petty cash carried to department
Petty cash checked against requisition
Receipt signed
Petty cash stored in safety box
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Some Important Terms

◼ Muri/Mura/Muda
◼ Jidoka – Automation with human touch (Autonomation)
◼ Poka-yoke
◼ Andon
◼ Kanban
◼ One piece flow
◼ Level production
◼ Heijunka
◼ SMED (Single Minute Exchange of Dies)
◼ Milk run logistics
◼ Kaizen

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Topic: Total Productive Maintenance
(TPM)

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What is TPM?

◼ TPM is a
◼ Lean tool
◼ To optimize the effectiveness of manufacturing
equipment and tooling

◼ Starts with 5S
◼ Builds a comprehensive Downtime Database by
◼ Cause/ Frequency/ Duration
◼ Predicts and prevents downtime by PM system
◼ Expands role of Operator
◼ First point of early warning and prevention
◼ Total Employee Involvement (TEI)
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5S

◼ Seiri → Sort
◼ Seiton → Set in order
◼ Seiso → Shine
◼ Seiketsu → Standardize
◼ Shitsuke → Self-discipline

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8 Pillars of TPM

◼ Initial Control
◼ 5S

◼ Pillars
◼ Autonomous Maintenance – Jishu Hozen
◼ Planned Maintenance
◼ Quality Maintenance – Hinshitsu Hozen
◼ Focused Improvement – Kobetsu Kaizen
◼ Early Equipment Management
◼ Education & Training
◼ Safety, Hygiene & Environment
◼ Office TPM
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