Japanese principles of

Production Management

A&D / KW / SGR Prepared by : Shailesh P Oak

 Japanese principles of Production Management

No Problem Thinking

It is imp to make Workplace with

We have no
workplace with no problem is Bad
Problem
Problem
There is no
Every Thing is OK
(Workplace with Problem at Good
everything OK ) Working place

Kaizen / Improvement Mindset

We Have Problems There is always

We are It is important to
Problem at any
experiencing make workplace in
workplace
Problems which PROBLEM
We will improve IS
No problem
upon them Visible
means we are just
not aware of it.
Japanese principles of Production Management

USA JAPAN
SQC SQC
TQM
TQM (TQC) TQM
Pre Main Pre Main
TPM
TPM TPM PM
IE / FP IE / FP
TPS
TPS / JIT TPS
 Japanese principles of Production Management

TQM
TPM
& TPM
TPS
TQM
Pr M Gemba Kaizen
(5S, VM, Muda Elimination)
SQC

IE
FP

TPS
 Japanese principles of Production Management

Inductive Inductive Approach of Japanese Companies :

Approach

Fact
What is the reason ?
Fact Fact

Experience Based

Deductive Method of other countries

Theory A Theory B

Theory C

Mathematics / Logical Based

 Japanese principles of Production Management

P Productivity

Q Quality
The
Management C Cost
Items of
a
D Delivery
Workplace

S Safety

M Morale
 Japanese principles of Production Management

EFFECT Q C D
QCD
&
4M

CAUSE 4M
Man, machine, Material & method

One of the 4 M’s is the cause of error in Q / C / D problem/s

 Japanese principles of Production Management

Man
QCD
& Machine / Equipment
Material Product
4M
Method

Q
C
D
 Japanese principles of Production Management

QCD & PQCDSM & The 4M

W/P 1 W/P 2 W/P N

Man Man Man
Material Product
Machine Machine Machine

Method Method Method

P P P
Q
Q Q Q C
C C C D
D D D
S S S
M M M
 Japanese principles of Production Management

The
Production Profit
Pyramid

QUALITY COST Delivery Time

QCD

Man Machine Material Method 4Ms

Visual management /
Improvement through 3 Mu’s

5 “S” Activities

Gemba
Production Base Kaizen
 Japanese principles of Production Management

5“S”

5S 5S

This is experienced Globally and is common at all companies.

To avoid this :
3S
5S
2S

First 3S are Kaizen itself and the 2S is about “Sustain”

 Japanese principles of Production Management

5“S” VM

3S
2S

3S
2S

3S

PDCA / Kaizen

After certain level P of PDCA can be replaced by S for Standardize

 Japanese principles of Production Management

Functional 5S combines 3 different elements very clearly,

5“S”
viz: 5S, VM & Muda

5S

VM
Muda

For success, good relationship must be established

between these 3 elements
 Japanese principles of Production Management

VM
Principles Basics of VM
&
Example At the workplace :

1. By observing the actual objects (Products, wip, materials, parts,

equipments, jigs, worktable etc.)

2. And by studying the usage conditions of notice boards, electric

signs, Kanban tags, card and stickers, labels etc.

Normal and abnormal conditions, problems and improper

conditions,

Can be readily identified and understood at a glance.

For this purpose, Colour ( colour schemes), signs, letters, numeric

characters, pictures, graphs, charts, etc should be used extensively.
 Japanese principles of Production Management

VM Test : After VM marking every body should clearly understand

Principles normal and abnormal conditions.
& Hence if there are difference of opinions about these, there is
no standardization.
Example
Apply standard markings & notify everybody about it.

At the gemba VM should be applied by simple applications w/o

giving much explanations.

Small example
Plant A Plant B

Plant B marking makes the direction of the forks also clear to

the driver w/o any ambiguity.
Production Management
An Overview

Prepared by : Shailesh P Oak

 Production And Production Management

Control

ADD VALUE

Defined Desired,
Inputs Conversion Tangible O/p
Processes

Feed Back
 Types of Production Systems

Operator Skill

LEAN
Production Volume

Continuous
Production
CT
Mass
Production TPT

Batch
Production

Job-Shop
Production

Product Variety
 Production Management
•Forecasting
•Plant Location Layout planning
• Planning •Capacity Planning
•Manufacturing
Methods, strategies

•Facilities Layout
•Equipment selection
• Organizing •Process Planning
•Materials
Management

•Capacity Planning:Takt
•Line layout & Balancing
• Directing •Work and Time study
•Inventory Management
•TPM - TQM

•PPC
•Quality Control
• Controlling •Inventory Control
•Motivation
 Manufacturing Processes
Forming Processes
• Casting
• Forging
•
•
Extrusion
• Stamping
• Plastic Moulding

Machining Processes
• Turning
• Drilling
• Boring
• Milling
• Grinding
• Press Metal Working

Assembly Processes
• Welding
• Brazing
• Soldering
• Riveting
• Ultrasonic Plastic Welding
 Manufacturing Processes

Heat Treatment
• Annealing
• Normalising
• Hardening
• Tempering
 PLANT LAYOUT

“A floor plant for determining and

arranging the desired machinery and
equipment of plant, in one best place, to
permit the quickest flow of materials at
the lowest cost and with the least
amount of handling in processing the
product from the receipt of raw
materials to the shipment of finished
products.”
 Plant layout involves:

1) Planning and arranging manufacturing

machinery, equipment and services for
the first time in completely new plants.
2) The improvements in layouts already in
use in order to introduce new methods
and improvements in manufacturing
procedures.
 Objectives of Plant Layout

• To facilitate manufacturing process

• To minimize material handling
• To maintain high turnover of semi-
finished goods
• Effective utilization of space
• To provide employees comfort and job
satisfaction
• To provide effective utilization of labor
 Principles of Plant Layout

• Principle of overall integration

• Principle of minimum distance
• Principle of flow
• Principle of cubic space
• Principle of satisfaction and safety
• Principle of flexibility
 Types of Plant Layout

• Product Line Layout

• Process or Functional layout
• Combination of product and process
layout; and
• Fixed position layout
 Process Layout – small shop

Principles for Implementing

Lean Manufacturing
 Process Layout - factory

QC Ship
Raw Stock Rec

QC
Screw
Shear Stamp Machine

Lathe Drill
Brake Assembly
Mill

Weld Grind Finish Parts Stock

Principles for Implementing

Lean Manufacturing
 Product Layout
•Products typically ride
along on conveyor
belts or chains.

•This layout may have

several parallel lines of
processes combining
at one node.

•This arrangement is
relatively inflexible
compared to a Process
Layout.
Principles for Implementing
Lean Manufacturing
 Fixed Position Layout
In this layout, the product’s position is fixed due to its
size or weights such as a jetliner. Equipment,
components, and labor is brought to the product for the
operations. When the product is complete , it is then
moved.

Principles for Implementing

Lean Manufacturing
 Cellular Layout
Linking of manual and machine operations into the
most efficient combination to maximize value-
added content while minimizing waste.

Punch
De-burr
Cut to size

Package Form

Sand

Principles for Implementing

Lean Manufacturing
 Lean = Eliminating Waste
Non-Value-Added:
Value-Added Hold all waste in a
“CLOSED MITT”
• Complexity
• Labor
• Overproduction
• Space
• Energy
• Defects

• Materials
• Idle Materials
• Transportation
• Time
Typically 95% of all lead time is non-value-added
Principles for Implementing
Lean Manufacturing
 Lean Building Blocks

KAIZEN

Pull/Kanban Cellular/Flow TPM

Quality at Source POUS Quick Changeover

Standardized Work Batch Reduction Teams

Value
5S System Visual Plant Layout Stream
Mapping

Principles for Implementing

Lean Manufacturing
 Difference b/w Product layout & Process
layout
• Duplication of • Accumulation of
equipment work in process
• Production control • Floor area occupied
• Adaptability in the • Greater utilization
case of breakdown of
individual machines of machines
• Material handling • Flexibility
cost • Application
• Production time
involved
• COMBINATION OF PRODUCT AND
PROCESS LAYOUT

• FIXED POSITION LAYOUT OR STATIC

PRODUCT LAYOUT
 TOOLS & TECHNIQUES FOR PLANT LAYOUT

TOOLS
 Process charts and flow diagrams
 Machine data cards

TECHNIQUES
 Templates
 Model of equipment
 Layout of drawings
 Plot plans
 Takt Time
Capacity Planning
And
Line Balancing
Prepared by : Shailesh P Oak
Takt time / Capacity Planning / Line Balancing
Takt is the German word for Rythm.

In lean manufacturing, takt gives the rythm of the customer demand.

It is a simple mathematical calculation: the daily available production

time divided by the daily average customer demand for that product.

Takt Tme determines the speed at which parts must be manufactured in

order to satissfy customer demand. It is the heartbeat of a lean system.

Takt Time must be distinguished from Cycle Time and from Lead Time.

Cycle Time is the actual time to accomplish a task within a process. All
tasks should be synchronized to takt time, so that the waste of
overproduction is eliminated.

Lead time is the time that is required from receipt of order until
shipment to the customer
Takt time / Capacity Planning / Line Balancing

Lets take a Case

A Manufacturing plant produces 3 different models of

Cars on three different Conveyor Production Lines.

The Plant works 277 days a year in two shifts a day, each
shift having 8 hours or 480 Minutes of productive time.

Demand for Model A is 20000, Model B is 50000 and

Model C is 90000 units annually.

Calculate the Takt Times for all Models

Takt time / Capacity Planning / Line Balancing

Daily available time = 480 * 2 = 960 min

Daily average demand

Model A = 20000/277 = 72
Model B = 50000/277 = 181
Model C = 90000/277 = 325

Takt Times are :

Model A = 960/72 = 13.29

Model B = 960/181 = 5.31
Model C = 960/325 = 2.95
 TAKT Time calculation for Production

TAKT time is the precise time interval between Output of 2 units,

TAKT is always based on customer delivery demand . .

Net Available Production Time

TAKT TIME=
Customer Demand

For Example:

 Net available production time/ shift = 8 hours = 480 minutes per shift

 Customer Demand = 120 units / in given shift

 TAKT Time = 480 / 120 = 4 minutes / unit / for that shift

 TAKT for Assembly Line

Net Available Production Time

TAKT
=
TIME Customer Demand (Cmax)

Year Year 1 Year 2 Year 3

Forecast Parts / year 55,000 60,000 68,000

Seasonality % 30% 30% 30%

Rejection Rate % 2% 2% 2%

Gross Demand (Cmax) Parts / year 70,000 80,000 90,000

Net Time Available for

hours /
Production 4880 4880 4880
year
(2 shift basis)
TAKT Time Minutes 4.18 3.66 3.25

Line Output Planned for . . Parts / shift 115 130 150

 Line Balancing

• Line balancing is, arranging a production line so

that, there is an even flow of production from
one work station to the next, i.e. so that there
are no delays at any work station that will leave
the next work station with idle time.
• It is defined as “ the appointment of sequential
work activities into work stations in order the
gain a high utilization of labor and equipment
and therefore minimize idle time.”
 Analysis of Line Balancing
Problems
• Determine the number of work stations and
time available at each work station.
• Group the individual tasks into approximately
equal amounts of work at each work station.
• Evaluate the efficiency of grouping.
When the available work time at any station
exceeds that, which can be done by one
worker, additional workers must be added at
that work station.
 Analysis of Line Balancing
Problems
Operation time

Processes / Operations
 Line Balancing

1 Break down in basic operation 2 Delete all wastes between operations

60
60 se
Operation time

Takt c Takt
time 30 time
30
Work sec Wastes
sec
data can be
deleted
0 1 2 3 4 5 6 7 8 9 10 0 1 2 3 4 5 6 7 8 9 10

Operators Operators
3 Redefine New Operation 4 Balance Basic Operations and Operators
60 60
Operation time

Takt
se Takt se
time
c. time c.
30 30 Balance
Staying data
sec sec d data

0 1 2 3 4 5 6 7 8 9 10
1 2 3 4 5 6 7 8 9 10
0

Operators Operators
Case Study

Prepared by : Shailesh P Oak

 Case Study
M/s ABC Ltd wants to introduce a new switch in the market, After market
survey they have forecasted the annual demand of the said switch to be 1000000
pieces, The process planning and work study results are as follows.

1. Please plan the capacity and Layout on 1 shift basis, if the company has
alternate working Saturday, all Sundays are closed and there are 10 other
paid holidays.
2. Considering there are 5 Basic versions of the switch where only design of pre
screwed contacts and Assembly of Sliders and their quantity varies, Suggest a
Lean Layout.
Base
Opp Sequence of Operations Qty UN SMM BOM
10 Pre-screwing. 400 PC 75.73 4
20 Holder assly ( NO/NC ). 100 PC 35.84 2
30 Slider Assly. 100 PC 47.22 1
40 Ultrasonic welding of slider. 100 PC 15.72 1
50 Assly of Contact Block. 100 PC 81.81 1
60 Ultrasonic weld Assly (1/15 checking). 100 PC 20.4 1
70 Unscrewing. 100 PC 29.06 1
80 Teca printing of Assly ( 1/10 checking). 100 PC 13.41 1
90 Testing of Assly. 100 PC 54.72 1
100 Packing 10x1 in 71-32. 100 PC 38.1 1
 Sequence of operations with materials requirement
at every stage :

No Sequence of Operations
Pre-screwing : Fix Contact + Combi Screw : Types Fix Contact Compl NO
10 and NC
20 Holder assly ( NO/NC ).
30 Slider Assly.
40 Ultrasonic welding of slider.
50 Assly of Contact Block.
60 Ultrasonic weld Assly (1/15 checking).
70 Unscrewing.
80 Teca printing of Assly ( 1/10 checking).
90 Testing of Assly.
100 Packing 10x1 Caton + Label fixing
 Toyota Production System /
JIT / Lean Production

A&D / KW / SGR Prepared by : Shailesh P Oak

 Toyota Production System / JIT / Lean Production

Month
A
B
C

High ½ Month
Cycle
A Month
Production
B
C ½ Month

Week
Week
Day
A
B Hour
C
 Toyota Production System / JIT / Lean Production

U Line A B C D E F 600 pcs / day

Or
Cell
A B C D E F 300 pcs / day
Concept

A B C D E F 200 pcs / day

Steps of the workmen / distance travelled becomes more and is Muda.

This can be reduced by arranging the line in U format
 Toyota Production System / JIT / Lean Production

A B
C

D
F E
U Line
Muda of steps is reduced.
Or
Cell A B Also by making same w/m responsible for
Concept C first and last w/p (I/P & O/P) :

D Helps in -- Reduction of WIP

-- Improved quality responsibility.
F E
Muda of WIP is eliminated
 Toyota Production System / JIT / Lean Production
Material Flow Work flow Information flow FIFO

TOYOTA
PRODUCTION Central Control
SYSTEM
C/C

Assembly
Supplier 1

Welding Painting

Supplier 2

Make to KanBan Order Supplier N

 Toyota Production System / JIT / Lean Production

TOYOTA
Surface the problems and solve them
PRODUCTION
SYSTEM

Material Material
availability availability

Parts Quality
Jigs / fixture Changeovers M/c
maintenance
 Toyota Production System / JIT / Lean Production

TOYOTA
PRODUCTION
SYSTEM Customer Focus :
High Quality, Lowest Cost, shortest LT by
continually eliminating MUDA

JIT Jidoka
Involvement
Flexible motivated team
members continually seeking a
new way.

Standardization
Stability
 Toyota Production System / JIT / Lean Production

1. Don’t produce something unless customer has ordered it.

JIT 2. Level demand so that work may proceed smoothly throughout.
3. Link all processes to customer demand
through simple visual tool called Kanban (PULL)
4. Maximise the flexibility of people and machinery.

JIT

Kanban
Visual tools to synchronize and
provide instructions to supplier
and customers both internal &
external
Heijunka
Production leveling
Standardised work and kaizen
 Toyota Production System / JIT / Lean Production
JIT
Kanban Production
Kanbans
Withdrawal
Process 1; Part A Kanbans

A
Process 2; Part B
A, B, C
B
Process 3; Part C
Assembly Line

C
 Definition of Lean
“A systematic approach to identifying and eliminating waste
(non-value-added activities) in a company’s operations.
Lean emphasizes flowing the product at the pull of the
customer.”
Lean is implemented through both rapid and continuous
improvement.
Kaizen- “kai’ means “little” or “ongoing”. “Zen” means “for
the better” or “good.” Small continuous improvements on
everyone’s part leads to world class manufacturing.

Principles for Implementing

Lean Manufacturing
 Concept of Value-Added Activity
Value-Added Time
• Any activity that increases the market form
or function of the product or service. (These
are things the customer is willing to pay for.)
Non-Value Added Time (Waste or muda)
• Any activity or use of resources that does not add
market form or function or is not necessary.
(These activities should be reduced, integrated,
simplified, or eliminated.)

Principles for Implementing

Lean Manufacturing
 Batches Order of Operations

Inventory Work in Progress (WIP)

Fixturing Set-Up Time

Inspection Plant Layout

Manufacturing Lead Time (MLT)

Principles for Implementing

Lean Manufacturing
Lean defines “Waste” as all activities which do not
add value to the customer and tries to eliminate or minimise it
There are 7 Types of Wastes in Production System

Transport/Transfer Waiting
Overproduction

Inventory

Seven Wastes

Motion
Overprocessing Defects
 Toyota Production System / JIT / Lean Production
Value-adding : 5%

Knowledge
disconnection MOTION

Over-Production Waiting / Delay

MUDA
Inventory Transport

Over – Correction
Processing / Rework

MUDA : 95%
ELIMINATION OF ‘MUDA’

IDENTIFY MINIMISE ELIMINATE

 Structured Practices in Different
Japanese Organizations

A&D / KW / SGR Prepared by : Shailesh P Oak

Structured Practices in Different Japanese Organizations

1. Andon Boards and signs

2. “Overproduction is a MUDA” culture throughout.

3. TEI : Total employee involvement

4. Kaizen culture

5. High cycle production

6. Mixed production system

7. Good blend of TPM, TQM and TPS to evolve one’s

own Production system
Structured Practices in Different Japanese Organizations

8. Very good relations with first tier suppliers

9. Functional 5 S and win-win JIT & Kanban

10. Very good visual markings for all small things on

shop floor

11. Very clear gangways even outside the factory

12. Every where the dirtiest things are stored in the most
visible area.

13.Passport system for workmen training and VM

 Structured Practices in Different Japanese Organizations

14. Barcodes and ID tags with products to carry important

information on conveyor assembly lines.

15.Poka Yoke : e.g. Torque testing on assembly line.

16. SMED, very good VM for SMED.

17.Good use of U and Cell concepts.

18. AGVs for JIT material supply to work places.

19. Poka Yoke signals in Kit Preparation.

20.Jidoka to take care of fatigue and strain.

Structured Practices in Different Japanese Organizations

21. Time management throughout.

22. Creative suggestion schemes

23. EMS activities.

 Toyota-Way Principles
Section I – Long-term philosophy
• Principle 1: Base your management decisions on a long-
term philosophy, even at the expense of short-term
financial goals.

Section II – The Right processes will produce the right results

• Principle 2: Create continuous process flow to bring
problem to the surface.
• Principle 3: Use “pull” system to avoid overproduction.
• Principle 4: Level out the workload (heijunka). (work like a
tortoise not the hare.)
• Principle 5: Build the culture of stopping to fix problems to
get quality right the first time.
 Toyota-Way Principles

• Principle 6: Standardize tasks are the foundation for

continuous improvement and employee empowerment.
• Principle 7: Use visual control so no problems are
hidden.
• Principle 8: Use only reliable, thoroughly tested
technology that serves your people and processes.

Section III – Add value to the organization by developing

your people and partners
• Principle 9: Grow leaders who thoroughly understand
the work, live the philosophy, and teach it to others.
 Toyota-Way Principles

• Principle 10: Develop exceptional people and teams who

follow your company’s philosophy.
• Principle 11: Respect your extended network of partners
and suppliers by challenging them and helping them
improve.

Section IV – Continuously solving root problem drives

organizational learning
• Principle 12: Go and see for yourself to thoroughly
understand the situation (genchi genbutsu).
• Principle 13: Make decisions slowly by consensus,
thoroughly considering all options, implement decisions
rapidly.
 Toyota-Way Principles

• Principle 14: Become a learning organization through

relentless reflection (hensei) and continuous
improvement (kaizen).
 5 principles of Lean
• Value - specify what creates value from the customer’s
perspective.

• The value stream – identify all the steps along the process
chain.

• Flow - make the value process flow.

• Pull - make only what is needed by the customer (short term

response to the customer’s rate of demand).

• Continuous Improvement - strive for perfection by

continually attempting to produce exactly what the
customer wants.
 Change does not mean

“Today Is BAD”,

it only means that

“Tomorrow can be BETTER”