Solutions Manual: Ch20-Lean Production-s

Review Questions
20.1 Define lean production.
Answer: As defined in the text, lean production means doing more and more work with
fewer and fewer resources. It also means giving customers what they want and satisfying
or surpassing their expectations.
20.2 Name the two pillars of the Toyota production system.
Answer: The two pillars of the Toyota production system are (1) just-in-time production
and (2) autonomation (automation with a human touch).
20.3 What is the Japanese word for waste?
Answer: Muda.
20.4 Name the seven forms of waste in production, as identified by Taiichi Ohno.
Answer: Taiichi Ohno’s seven forms of waste are (1) production of defective parts, (2)
production of more than the number of items needed (overproduction), (3) excessive
inventories, (4) unnecessary processing steps, (5) unnecessary movement of people, (6)
unnecessary transport and handling of materials, and (7) workers waiting.
20.5 What is meant by the term just-in-time production system?
Answer: A just-in-time production system produces and delivers exactly the required
number of each component to the downstream operation in the manufacturing sequence just
at the time when that component is needed. Each component is delivered "just in time."
20.6 What is the objective of a just-in-time production system?
Answer: As indicated in the text, the primary objective of a just-in-time production system
is to minimize inventories, especially work-in-process inventories.
20.7 What is the difference between a push system and a pull system in production control?
Answer: In a pull system of production control, the order to make and deliver parts at each
workstation in the production sequence comes from the downstream station that uses those
parts. When the supply of parts at a given workstation is about to be exhausted, that station
orders the upstream station to replenish the supply. When this procedure is used throughout
the plant, it has the effect of pulling parts through the production system. In a push system,
parts at each workstation are produced irrespective of the immediate need for those parts at
their respective downstream station. In effect, this production discipline pushes parts through
the plant.
20.8 What is a kanban? What are the two types of kanban?
Answer: Kanban means “card” in Japanese. The kanban system of production control used
in the Toyota JIT system is based on the use of cards that authorize (1) parts production and
(2) parts delivery in the plant. Accordingly, the two types of kanbans are (1) production
kanbans, which authorize the upstream station to produce a batch of parts and (2) transport
kanbans, which authorize transport of the parts to the downstream station.
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20.9 What is the basic starting point in a study to reduce setup time?
Answer: The starting point in setup time reduction is to recognize that there are two types
of work elements in the task of setting up a machine: (1) internal elements, which can only
be accomplished while the production machine is stopped, and (2) external elements, which
do not require that the machine be stopped. External elements can be accomplished while the
previous job is running on the machine.
20.10 What does production leveling mean?
Answer: Production leveling means distributing the changes in product mix and quantity as
evenly as possible over time when it is necessary for the production system to adjust to the
ups and downs in demand for the final product.
20.11 How is production leveling accomplished?
Answer: The approaches mentioned in the text are (1) authorizing overtime during busy
periods, (2) using finished product inventories to absorb daily ups and downs in demand, (3)
adjusting the cycle times of the production operations, and (4) producing in small batch sizes
that are enabled by setup time reduction techniques. In the ideal, the batch size is reduced to
one.
20.12 What does autonomation mean?
Answer: Taiichi Ohno referred to autonomation as “automation with a human touch.” The
notion is that the machines operate autonomously as long as they are functioning properly.
When they do not function properly (e.g., when they produce a defective part), they are
designed to stop immediately. Autonomation also includes the notion of mistake-proofing
the process.
20.13 What does total productive maintenance mean?
Answer: Total productive maintenance (TPM) is a coordinated group of activities whose
objective is to minimize production losses due to equipment failures, malfunctions, and
low utilization through the participation of workers at all levels of the organization. TPM
involves the integration of preventive maintenance and predictive maintenance to avoid
emergency maintenance.
20.14 What is availability as a reliability measure and how is it determined?
Answer: Availability is the proportion of the total desired operating time that a machine is
actually available and operating. Availability is defined in terms of two other reliability
measures: mean time between failure (MTBF), which is the average length of time the
equipment runs between breakdowns, and mean time to repair (MTTR), which is the average
time required to service and put the equipment back into operation after a breakdown occurs.
Using these terms, availability is defined as follows:

A=

20.15 What does the Japanese word “kaizen” mean?

Answer: Kaizen means continuous improvement.
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20.16 What is a quality circle?

Answer: A quality circle is a worker team that is organized to address specific problems
that have been identified in the workplace. The problems are not limited to quality. They
include problems relating to productivity, cost, safety, maintenance, and other areas of
interest to the organization.
20.17 What is visual management?
Answer: Visual management refers to a way of managing and organizing operations so
that the status of the work situation is evident just by looking at it. If something is wrong,
this condition should be obvious to the observer, so that corrective action can be taken
immediately. Also called the visual workplace, the principle applies to the entire plant
environment.
20.18 What is an andon board?
Answer: An andon board is a light panel positioned above a workstation or production line
that is used to indicate its operating status. If a problem occurs, such as a line stoppage, the
andon board identifies where the problem is and the nature of the problem.
20.19 What is the 5S system?
Answer: The 5S system is a set of procedures that is used to organize work areas in the
plant. It is also a means of involving workers in the visual management of the factory. The
five S’s stand for (1) sort things in the workplace and discard things that are not needed,
(2) set in order the things that remain after sorting, (3) shine or clean the workplace, (4)
standardize locations for items in the workplace, and (5) self-discipline to sustain the order
that has been created.
20.20 What is takt time?
Answer: Takt time is defined as the effective daily operating time divided by the daily
quantity of units demanded.
20.21 What are standardized work procedures in the Toyota production system?
Answer: Standardized work procedures in the Toyota production system consist of
determining the following factors for each task: (1) cycle time, which becomes matched to
the takt time for the task, (2) work sequence or standard operations routine, which is the
order of work elements performed in the task, and (3) standard work-in-process quantity,
which refers to the minimum number of WIP parts needed to avoid workers waiting.
Problems
Setup Time Reduction
20.1 A stamping plant supplies sheet metal parts to a final assembly plant in the automotive
industry. The following data are values representative of the parts made at the plant.
Annual demand is 150,000 pc (for each part produced). Average cost per piece is $18 and
holding cost is 20% of piece cost. Changeover (setup) time for the presses is 5 hours and
the cost of downtime on any given press is $200/hr. Determine (a) the economic batch size

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and (b) the total annual inventory cost for the data. If the changeover time for the presses
could be reduced to 10 minutes, determine (c) the economic batch size and (d) the total
annual inventory cost.
Solution: (a) hC = 0.20($18) = $3.60/pc and Csu = 5($200) = $1000 per setup
EOQ = = = 9,128.7 rounded to 9129 pc

(b) TIC = 0.5(9129)(3.60) + 150,000(1,000)/9129 = $32,863

(c) If Tsu = 10 min, Csu = (10/60)($200) = $33.33
EOQ = = = 1,666.67 rounded to 1667 pc

(d) TIC = 0.5(1667)(3.60) + 150,000(33.33)/1667 = $6,000

20.2 A supplier of parts to an assembly plant in the household appliance industry is required to
make deliveries on a just-in-time basis (daily). For one of the parts that must be delivered,
the daily requirement is 200 parts, five days per week, 52 weeks per year. However, the
supplier cannot afford to make just 200 parts each day; it must produce in larger batch
sizes and maintain an inventory the parts from which 200 units are withdrawn for shipment
each day. Cost per piece is $20 and holding cost is 24% of piece cost. Changeover time for
the production machine used to produce the part is 2 hours and the cost of downtime on
this machine is $250/hr. Determine (a) the economic batch size and (b) the total annual
inventory cost for the data. It is desired to reduce the batch size from the value determined
in part (a) to 200 units, consistent with the daily quantity delivered to the appliance
assembly plant. (c) Determine the changeover time that would allow the economic batch
size in stamping to be 200 pieces. (d) What is the corresponding total annual inventory cost
for this batch size, assuming the changeover time in part (c) can be realized?
Solution: (a) hC = 0.24($20) = $4.80/pc and Csu = 2($250) = $500 per setup
EOQ = = = 3,291.4 rounded to 3291 pc

(b) TIC = 0.5(3291)(4.80) + 52,000(500)/3291 = $15,799

(c) If EOQ = 200 pc, find the corresponding setup time.

EOQ = 200 =

(200)2 = 40,000 = 2(52,000)Csu/4.80 = 21,667 Csu

Csu = 40,000/21,667 = 1.846 = 250 Tsu
Tsu = 1.846/250 = 0.00738 hr = 0.44 min
(d) TIC = 0.5(200)(4.80) + 52,000(1.846)/200 = 480 + 480 = $960
One might argue that the first term (carrying cost) is irrelevant because the parts are
shipped daily and are not held in inventory.
20.3 Monthly usage rate for a certain part is 15,000 units. The part is produced in batches and
its manufacturing costs are estimated to be $7.40. Holding cost is 20% of piece cost.
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Currently the production equipment used to produce this part is also used to produce 19
other parts with similar usage and cost data (assume the data to be identical for purposes of
this problem). Changeover time between batches of the different parts is now 4.0 hours,
and cost of downtime on the equipment is $275/hr. A proposal has been submitted to
fabricate a fast-acting slide mechanism that will permit the changeovers to be completed in
just 5.0 minutes. Cost to fabricate and install the slide mechanism is $150,000. (a) Is this
cost justified by the savings in total annual inventory cost that would be achieved by
reducing the economic batch quantity from its current value based on a 4-hour setup to the
new value based on a 5-minute setup? (b) How many months of savings are required to pay
off the $150,000 investment?
Solution: (a) hC = 0.20($7.40) = $1.48/pc and Csu = 4($275) = $1100 per setup
EOQ = = = 16,357.7 rounded to 16,358 pc
TIC = 0.5(16,358)(1.48) + 12(15,000)(1100)/16,358 = $24,209/yr
For 20 parts, TIC = 20($24,209) = $484,182/yr
If Tsu = 5.0 min, Csu = (5/60)($275) = $22.92
EOQ = = = 2,361.2 rounded to 2361 pc
TIC = 0.5(2361)(1.48) + 12(15,000)(22.92)/2361 = $3495/yr
For 20 parts, TIC = 20($3495) = $69,891/yr
Annual savings = 484,182 – 69,891 = $414,291
The $150,000 investment is justified.
(b) Monthly savings = 414, 291/12 = $34,524
Payback period = 150,000/34,524 = 4.34 months
20.4 An injection-molding machine used to produce 25 different plastic molded parts in a
typical year. Annual demand for a typical part is 20,000 units. Each part is made out of a
different plastic (the differences are in type of plastic and color). Because of the
differences, changeover time between parts is significant, averaging 5 hours to (1) change
molds and (2) purge the previous plastic from the injection barrel. One setup person
normally does these two activities sequentially. A proposal has been made to separate the
tasks and use two setup persons working simultaneously. In that case, the mold can be
changed in 1.5 hours and purging takes 3.5 hours. Thus, the total downtime per changeover
will be reduced to 3.5 hours from the previous 5 hours. Downtime on the injection-
molding machine is $200/hr. Labor cost for setup time is $20/hr. Average cost of a plastic
molded part is $2.50, and holding cost is 24% annually. For the 5-hour setup, determine (a)
the economic batch quantity, (b) the total number of hours per year that the injection-
molding machine is down for changeovers, and (c) the annual inventory cost. For the 3.5-
hour setup, determine (d) the economic batch quantity, (e) the total number of hours per
year that the injection-molding machine is down for changeovers, and (f) the annual
inventory cost.
Solution: For Tsu = 5.0 hr, Csu = 5($200) + 5($20) = $1100/setup
hC = 0.24(2.50) = $0.60/pc

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EOQ = = = 8,563.5 rounded to 8564 pc

(b) Number of changeovers/yr per part = 20,000/8564 = 2.335 changeovers/yr

For 25 parts, number of changeovers = 25(2.335) = 58.4 changeovers/yr
At 5 hr/changeover, total time down = 58.4(5.0) = 292 hr
(c) TIC = 0.5(8564)(0.60) + 20,000(1,100)/8564 = $5,138
For 25 parts, TIC = 25(5,138) = $128,450
(d) For Tsu = 3.6 hr, Csu = 3.5($200) + (1.5 + 3.5)($20) = $800/setup
EOQ = = = 7303 pc

(e) Number of changeovers/yr per part = 20,000/7303 = 2.739 changeovers/yr

For 25 parts, number of changeovers = 25(2.739) = 68.5 changeovers/yr
At 3.5 hr/changeover, total time down = 68.5(3.5) = 239.6 hr
(f) TIC = 0.5(7303)(0.60) + 20,000(800)/7303 = $4382
For 25 parts, TIC = 25(4382) = $109,550
20.5 In the previous problem, a second proposal has been made to reduce the purging time of
3.5 hours during a changeover to less than 1.5 hours by sequencing the batches of parts so
as to reduce the differences in plastic type and color between one part and the next. In the
ideal, the same plastic can be used for all parts, thus eliminating the necessity to purge the
injection barrel between batches. Thus, the limiting task in changing over the machine is
the mold change time, which is 1.5 hours. For the 1.5-hour setup, determine (a) the
economic batch quantity, (b) the total number of hours per year that the injection-molding
machine is down for changeovers, and (c) the annual inventory cost.
Solution: (a) For Tsu = 1.5 hr, Csu = 1.5($200) + 2(1.5)($20) = $360/setup
EOQ = = = 4,899 pc

(b) Number of changeovers/yr per part = 20,000/4899 = 4.082 changeovers/yr

For 25 parts, number of changeovers = 25(4.082) = 102.06 changeovers/yr
At 5 hr/changeover, total time down = 102.06(1.5) = 153.1 hr
(c) TIC = 0.5(4899)(0.60) + 20,000(360)/4899 = $2,939.40
For 25 parts, TIC = 25(2,939.40) = $73,485
Availability, Utilization, and Fraction Defect Rate
20.6 Data has been collected on the malfunctions and breakdowns that have caused line
stoppages on a certain automated production line. Based on these data, the mean time
between failures is 4.37 hr, and the mean time to repair is 24.1 min. Determine the
availability of this line.
Solution: MTBF = 4.37(60) 262.2 min
A = (262.2 – 24.1)/262.1 = 0.908 = 90.8%

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20.7 An automated guided vehicle system (AGVS) has been installed recently in a production
warehouse. The company that supplied the AGVS claims that its system is very reliable
and has an availability of 95%. In the first week of operation, the mean time between
malfunctions that caused downtime averaged 12.3 hours per vehicle. On average, how long
was each vehicle out of service if the supplier’s claim of 95% availability is correct?
Solution: 0.95 = (12.3 – MTTR)/12.3
0.95(12.3) = 12.3 - MTTR
MTTR = 12.3(1 – 0.95) = 12.3(0.05) = 0.615 hr = 36.9 min
20.8 Three automatic screw machines are dedicated to the production of a certain high-demand
fastener. The machines operate 40 hours per week and each machine produces at a rate of
73.2 parts per hour when producing. (a) How many parts can the three machines produce
each week at full capacity? (b) If, during a particular week of interest, the three machines
actually produced 7514 parts, how many hours of downtime did the three machines
experience? (c) In part (b), if 9.25 hours are known to have been due to equipment
malfunctions, what was the utilization of the three machines (due to reasons other than
reliability problems)?
Solution: (a) Production capacity PC = 3(40)(73.2) = 8784 pc/wk
(b) Given actual Q = 7514 pc/wk, proportion uptime = 7514/8784 = 0.8554
Proportion downtime = 1 – 0.8554 = 0.1446
Hours of downtime = 3(40)(0.1446) = 17.35 hr
(c) Downtime due to reliability = 9.25 hr
Downtime due to utilization = 17.35 – 9.25 = 8.1 hr
Uptime = 120 – 9.25 = 110.75 hr
Utilization U = (110.75 – 8.1)/110.75 = 0.927 = 92.7%
20.9 A certain production machine has an availability of 97%. Its utilization is 92%. The
fraction defect rate of the parts made on the machine is 0.025, and it operates at only 85%
of its rated speed. What is the overall equipment effectiveness of this machine?
Solution: OEE = 0.97(0.92)(1 – 0.025)(0.85) = 0.7396 = 73.96%
Takt Time and Cycle Time
20.10 The weekly demand for a certain part is 950 units. The plant operates 5 days per week,
with an effective operating time of 440 min per day. Determine the takt time for this part.
Solution: Daily demand Qdd = 950/5 = 190 pc/day
Takt time Ttakt = 440/190 = 2.316 min/pc
20.11 The monthly usage for a component supplied to an appliance assembly plant is 5,000 parts.
There are 21 working days in the month and the effective operating time of the plant is 450
min per day. Currently, the defect rate for the component is 2.2%, and the equipment used
to produce the part is down for repairs an average of 22 min per day. Determine the takt
time for this part.
Solution: Daily demand Qdd = 5000/21 = 238.1 pc/day
Takt time Ttakt = 450/238.1 = 1.89 min/pc
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Defect rate and downtime are ignored to force defect rate and downtime to be zero.
20.12 The monthly demand for a part produced for an automotive final assembly plant is 16,000
units. There are 20 working days in February and the effective operating time of the plant
is 900 min per day (two shifts). The fraction defect rate for the component is 0.017, and the
automated machine that produces the part has an availability of 96%. Determine the takt
time for this part.
Solution: Daily demand Qdd = 16,000/20 = 800 pc/day
Takt time Ttakt = 900/800 = 1.125 min/pc
Defect rate and downtime are ignored to force defect rate and downtime to be zero.