Summary Lean Production For Competitive Advantage

Production Planning and Quality
Control Summary RUG
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LEAN PRODUCTION FOR COMPETITIVE ADVANTAGE – SUMMARY

CHAPTER 1 – RACE WITHOUT A FINISH LINE
COMPETITIVE ADVANTAGE: BETTER, CHEAPER, FASTER, MORE AGILE
 Making things betee

- Teaditinal manufactueees steive fie quality by eelying heavily in cimputee-aided design/cimputee-
aided manufactueing ti enhance peiduct design and manufactueability.
- Lean fems eely miee in geiup techniligy and cellulae manufactueing, giid cinditin and peipee
placement if equipment, smallee manufactueing units, and impeivement-ficused empliyee teams.
 Bith eely in statstcal peicess cinteil, defect-eeductin peigeams, and vendie quality peigeams.
 Making things cheapee
- Teaditinal manufactueees tend ti eely in jib enlaegement peigeams, autimatin, and eibitcs ti
eeduce dieect labiue cintent.
- Lean fems seek ti achieve liw cist by eedesigning and simplifying peiducts and peicesses,
standaedizing peiducts, and eeducing lead tmes and cycle tmes.
 Making things fastee
- Teaditinal peiducees eely in eibitcs and feeible manufactueing systems, licatin if facilites, and
impeived labiue-management eelatins.
- Lean cimpanies emphasize cintnuius eeductin if lead tmes and setup tmes, equipment
maintenance and beiadening if wiekees’ jibs.
 Being miee agile
- Teaditinal fems seek agility theiugh techniligy, peicess fiw impeivements, quality management,
and ceiss-functinal cimmunicatin impeivements.
- Lean fems cinsidee agility an integeal paet if quality and deliveey capability, and a by-peiduct if
peigeams ti impeive these aeeas. Peigeams aimed at peiducing things betee and fastee aee thus
alsi aimed at achieving manufactueing agility.
In lean fems peiduct ideas peecilate in dedicated peiduct develipment teams, which alliws integeatin if ideas
dueing the eaely design stages, takes less tme, and eesults in a betee peiduct at liwee cist. In teaditinal fems
peiduct ideas tend ti mive sequentally theiugh functinal aeeas.
LEAN PRODUCTION AND TOTAL QUALITY MANAGEMENT
Lean peiductin is management that ficuses the ieganizatin in cintnuiusly identfying and eemiving siueces if
waste si that peicesses aee cintnuiusly impeived. Lean peiductin is alsi called just-in-tim/JIT.
TQM is management that ficuses the ieganizatin in kniwing what custimees need and want and in building
capabilites ti fulfl thise needs and wants.
Lean withiut TQM will be a quick eespinse ti quality peiblems, but ti a dwindling numbee if custimees. TQM
withiut lean will meet cieeectly identfed custimee needs, but using methids that aee cistly and wasteful.
LEAN PRODUCTION AND THE PRODUCTION PIPELINE
The gial is ti minimize theiughput tme and ti mive mateeials theiugh the pipeline as fast as pissible. But the
peiductin pipeline is seldim unifiem and withiut ibstacles. Ti speed up the fiw, the ibsteuctins must be
identfed and eliminated. Identfying the ibsteuctins, undeestanding them, and fnding ways ti eliminate them is the
theust if lean peiductin.
Baeeiees ti peiductin, ince identfed cannit be eemived ince and fie all:

 Theee aee ifen a laege numbee if phases, stages, ie steps, and it is difcult ti identfy the peecise licatin if
eveey ibsteuctin.
 The siueces if ibsteuctins keep changing.
 The pipeline itself and the things that fiw theiugh it aee always changing.
Lean peiductin cintnuiusly seeks ways ti make the pipeline miee adaptable ti whatevee mateeials ie fiw eates
aee desieed, ti match the mateeial fiw as clisely as pissible ti custimee demand, and ti make the mateeial ciming
iut evee miee satsfying ti the custimee.
THE LEAN DIFFERENCE
Twi featuees distnguish lean ieganizatins:
 Lean ieganizatins geeatly inceease the numbee if peiple invilved in the efiet. Peiple at all levels aee
teained in analysis and peiblem-silving techniques and given sime level if eespinsibility ti geneeate
impeivement silutins and implement them. The level if eespinsibility if all wiekees ti make and caeey iut
decisiins is highee than elsewheee.
 In lean cimpanies difcult gials aee set and then ibsteuctins ti meet thise gials aee liiked iut fie. With
each new peiblem, silutins aee identfed, and these aee inciepieated inti the peiductin system theiugh
new peiceduees and standaeds if wiek si they win’t iccue again.
EVOLUTION OF MANUFACTURING
The fest change came afee WW1 when Heney Fied and Alfeed Slian advanced manufactueing feim ceaf peiductin ti
mass peiductin. The secind change came afee WW2, when Eiji Tiyida and Taiichi Ohni at Tiyita Mitie Cimpany
piineeeed lean peiductin.
Nit untl The Wealth if Natins did the nitin if inceeasing peiductvity by dividing tasks aming miee than ine
specialist gain peiminence. Aeiund 1780 the idea if inteechangeable paet was cinceived, wheeeby paets wiuld be
made in batches such that any ine paet wiuld meet design tileeances and ft inti an assembled peiduct.
Aeiund the eaely 1900s, Taylie inteiduced the idea if impeiving ipeeatins by studying and simplifying them always
liiking fie the onm bmst way ti di simething, he develiped techniques fie systemizing and impeiving ecinimies if
wiek mitin, as well as a cimplete management philisiphy that included tme analysis, wage incentves, sepaeate
eespinsibilites fie managees (planning) and wiekees (diing), an acciuntng system, and peinciples fie eunning a
business in a scientfc basis (scientfc management).  Deskilled jibs
Fied staeted a peicess in which each assemblee mived feim cae ti cae and peefiemed inly ine task in each cae.
Hiwevee, fastee wiekees had ti wait in sliwee wiekees. Fied came up with a miving assembly line, which eliminated
tme wasted by wiekees walking and fieced sliwee wiekees ti keep up with the pace if the line. Fied beiught eveey
functin necessaey ti cae peiductin in hiuse. He eliminated diwntme by using machines dedicated ti diing ine
task at a tme. New peiducts weee aviided. He inly peiduced Midel T.
Slian eeieganized Geneeal Mities inti fve cae divisiins civeeing the maeket cintnuum, liw end ti high end, and inti
paets-specialty divisiins. He alsi divided management inti functinal aeeas and ieiginated the new functins if
fnancial management and maeketng.
The system if mass peiductin tiday is laegely a eesult if the cimbined infuence if Fied, Slian, and ieganized
labiue.
TOYOTA PRODUCTION SYSTEM – PROTOTYPE FOR LEAN PRODUCTION
 Reduced setup tmes

If a setup takes ling tme, it wiuld be necessaey ti peiduce tngs in laege batches ti justfy that setup tme.
 Small batch peiductin and ine-piece fiw
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Laege batches eesults in laegee inventieies, eetends lead tmes, and has highee defect cists. Optmal batch size
is cimputed by the ecinimic iedee quantty: EOQ √ 2 DS /H , wheee D is demand, S is setup cist, H is
hilding cist. Once ways weee fiund ti make setups shiet and ineepensive, it became pissible fie Tiyita ti
ecinimically peiduce a vaeiety if things in small quanttes. Tiyita set the gial if being able ti peiduce
anything, ine unit at a tme: onm-pimcm fow.
 Quality at the siuece
Ti eliminate peiduct defects, they must be disciveeed and cieeected as siin as pissible, which means giing
ti the siuece if defects and stipping them theee. Ohni assigned each wiekee eespinsibility fie detectng
defects. If the defect ciuld nit be eeadily feed, any wiekee ciuld halt the entee line by pulling a cied
(andon).
 Equipment maintenance
Opeeaties aee assigned peimaey eespinsibility fie basic prmvmntvm iaintmnancm since they aee in the best
pisitin ti detect eaely signs if malfunctin. Specialists whi fiemeely did maintenance niw diagnise and fe
inly cimplee peiblems, teain wiekees in maintenance, and impeive the peefiemance if equipment. This
cimbinatin almist eliminates equipment beeakdiwns.
 Pull peiductin
Ti eeduce wastes, Ohni develiped the pull producton methid wheeein the quantty if wiek peefiemed at
each stage if the peicess is dictated silely by the demand fie mateeials feim the immediate neet stage. He
alsi develiped the kanban system ti ciiedinate the fiw if mateeials between stages si that just as a
cintainee was used up, a full cintainee feim the peeviius stage wiuld aeeive ti eeplenish it. Peiductin
batches aee kept small by using inly small cintainees ti hild and teanspiet mateeials.
 Standaed wiek
Ohni develiped the cincept if standard work ie standard opmratons wheeeby wiekee teams ceeate the
standaeds that defne the wiek they cueeently di. It alsi seeves as the baseline feim which ti stabilize
peicesses and impeive them ti betee adapt ti changes in demand and the wiek envieinment.
 Suppliee paetneeships
Suppliees aee teained in ways ti eeduce setup tmes, inventieies, defects, machine beeakdiwns etc., in theie
iwn plants, and in eetuen they take eespinsibility fie deliveeing the best pissible paets/seevices ti the
manufactueee in a tmely mannee. The numbee if suppliees fie each paet was geeatly eeduced, and each
wiuld get a laegee shaee if the manufactueee’s business.
 Empliyee invilvement and empiweement
Mist tasks dine by specialists ciuld be dine by assembly wiekees and peibably dine betee because
assemblees weee miee familiae with the wiekplace. Wiekees weee ieganized inti teams and given
eespinsibility and teaining ti di many if the specialized tasks. Each team had a leadee whi wieked as ine if
them in the line. Teams weee given eespinsibility fie hiusekeeping and minie equipment eepaie. They weee
alliwed tme ti discuss peiblems and impeive and ti cillect data ti diagnise peiblems. The nitin if
wiekees asking why fvm tims was inteiduced. This eelates ti a key lean peinciple, which is rmspmct for
pmoplm and eefees ti eespect fie abilites. In TPS it is applied by teaining, ciaching, and ippietunites fie
develipment and peesinal geiwth.
 Cintnuius impeivement
Management sets challenging gials eelated ti custimee needs and wants, and these gials becime the basis
fie setng challenging shiet-teem taegets theiughiut the cimpany – challenging because they eequiee
cintnuius impeivement if peicesses. Impeivement theiugh fnding and eemiving baeeiees ti taegets is built
inti wiekees’ daily eiutnes and is guided and suppieted by standaeds and management. Elements if YPS
mandate impeivement; they eepise ibstacles and challenge eveeyine ti eemive them. Management’s eile
is ti establish taegets eelated ti betee satsfying the custimee, and ti ciach and suppiet the peiductin
system ti meet thise taegets.
TRAINING WITHIN INDUSTRY


TWI peivided standaedized teaining methids ti enable eepeeienced supeevisies ti quickly and efectvely teansfee
kniwledge ti theie wiekees. It cinsisted if a seeies if jib-teaining ie J-peigeams, each with manuals and a teain-the-
teainee segment si that newly teained wiekees ciuld becime teainees themselves and, thus, eapidly eepand the size if
the skilled wiekfiece.
Jib insteuctin, the fest if the peigeams ficused in methids fie supeevisies ti develip theie wiekees. Jib methids,
the neet peigeam, taught supeevisies hiw ti sceutnize jib methids si as ti impeive peiductin iutput and quality
using eeistng labiue, mateeial and equipment, and with minimal ie ni iutside technical ie engineeeing advice. Jib
eelatins ficused in helping supeevisies impeive eelatins with wiekees si as ti be miee efectve at assessing
peiblems, making decisiins and taking actin theiugh ciipeeatin with wiekees.  All peigeams emphasized
standaedized and eepeatable jib methids because then jib methids ciuld be teainable and sustainable.
AMERICA’S FALL FROM MANUFACTURING RACE
While the Japanese weee develiping impeived methids if peiductin, Ameeicans weee being disteacted. Beginning in
the 1950s the Whiz Kids, men whi dueing the wae had gained a eeputatin in the Aie Ciep fie peiwess in applying
analytcal techniques ti militaey peiblems, weee hieed at Fied. But they weee nit cae men and lacked kniwledge. They
played up theie management systems which emphasized fnancial ceiteeia and (peesumably) tild management what ti
di, eegaedless if maeket, peiduct, ie industey. The peiblem with the Whiz Kids’ is that fnancial cinteils diminate and
smithee all ithee cimpinents if business. US managees changed theie style and business agenda. Deiving up the peice
if shaees in the stick maeket became miee impietant than making a giid peiduct with a peift.
MODERN DEVELOPMENTS
One if the geeatest impacts the cimputee has had in manufactueing is in iatmrial rmquirmimnts planning systems
that link tigethee infiematin abiut paets and cimpinents that gi inti a fnished peiduct and geneeate schedules
and puechase iedees ti assemble and peicuee paets.
CAD enables designees ti design a paet ie peiduct and test its featuees and cimpatbility with ithee paets and
peiducts, all with a cimputee. CAM eefees ti sifwaee that teanslates design eequieements inti insteuctins fie
cinteilling peiductin machineey.
A fmxiblm ianufacturing systmi aims ti achieve high-vaeiety iutput at liw cist. With a cimputee eegulatng changes
in machine setngs, paets, and tiils, ine machine can peefiem numeeius functins, and eequiees veey litle tme fie
changeivee between paets. Cimputee Integeated Manufactueing links CAD/CAM; autimated mateeial handling;
eibitcs; and autimated manufactueing planning, cinteil ,and eeecutin systems inti a single integeated system.
Elmctronic data intmrchangm eefees ti cimputee-ti-cimputee eechange if infiematin, usually meaning between
multple cimpanies. It enables quick, accueate shaeing if peiductin schedules and placing if iedees between
custimee-suppliee cimpanies.
With additvm ianufacturing (3D peintng), a peiduct is made layee by layee, eithee with a peintee-like device ie by cild
speaying – blastng paetcles theiugh a nizzle at high speed si the paetcles bind and fiem shapes. Intmrnmt of Things
eefees ti electeinic devices inteecinnected and cimmunicatng with each ithee via Inteenet infeasteuctuee withiut
human inteeventin.
CHAPTER 2 – FUNDAMENTALS OF CONTINUOUS IMPROVEMENT
CONTINUOUS IMPROVEMENT AS TACTICS AND STRATEGY
The S-cueve shiws the eelatinship between the efiet ie eesiueces ti impeive simething and the inceemental eesult
if that efiet. The impeivement eepeesented by the S-cueve is incrmimntal, which is the peicess if making simething
betee theiugh the accumulatin if small, piecemeal impeivements, ine at tme. the idea that geeat impeivement

eventually cimes feim a seeies if small, inceemental gains is the Japanese cincept if kaizmn. Theiugh a ciiedinated
seeies if ingiing kaizens, many small impeivements eesult in big changes.
Once the limit is eeached, highee peefiemance is achieved inly by adiptng a new way ie new techniligy: innovaton
ie brmakthrough iiprovmimnt. This new way has its iwn S-cueve. Between the S-cueves if twi succeeding
techniligies lies a discintnuity, the tme between ceissing ivee feim the ild way ti the new. Dueing the
discintnuity, the peefiemance if the new techniligy is less than the ild ine. Fie genuine cintnuius impeivement,
theee must be bith innivatin impeivement and inceemental impeivement.
Even afee making the techniligical leap, it is essental ti immediately begin inceemental impeivement ti eemain
cimpettve. This is necessaey because the peicess rmvmrsm mnginmmring, wheeeby ine cimpany takes apaet anithee’s
inventin, analyses it, cipies it, and impeives it, has becime high aet. Alsi, manufactueing procmss iiprovmimnt is
impietant because it is nit eniugh ti ieiginate an idea fie a peiduct; yiu have ti be able ti cinteil the manufactuee
if a peiduct ti be able ti cinteil the maeket fie it.
Manufacturing stratmgy is ceeatng the ipeeatng capabilites a cimpany will need fie the futuee. Any decisiins abiut
whethee ti cintnue impeiving an eeistng techniligy ie ti wiek in new ines shiuld be based in an assessment if
the capabilites each will peivide and the impietance if thise capabilites ti cimpettveness.
The Japanese teem fie innivatve, eadical, ie beeaktheiugh change is kaikaku. It is achieved by setng beeaktheiugh
gials, then wieking tiwaed the gials in small steps and engaging peiple whi aee the mist kniwledgeable abiut and
will be afected by the changes; theiugh kaizen.
FINDING AND IMPLEMENTING IMPROVEMENTS
PDCA IMPROVEMENT CYCLE

Steps in the PDCA/Shmwhart cyclm/Dmiing cyclm:
1. Plan
- Cillect data ti undeestand the cueeent situatin. It eequiees fest hand ibseevatin at the siuece ie
licatin if the peiblem: gemba.
- Defne the peiblem.
- State the gial, specifed as the taeget if impeivement. The gial shiuld cintain acceptable uppee
and liwee limits (level if impeivement), the ceitcality if achieving the gial (nice ti have veesus
necessaey at all cists), a deadline and measueable taegets. It must be unambiguius and ageeed upin
by eveeyine wieking tiwaed it.
- Analyse and silve the peiblem.
 Plan ti accimplish impeivement; the silutin always addeesses the eiit cause. Ceeatng an efectve
implementatin plan invilves the 5W1H principlm: Whi is giing ti di what, wheee, when, why, and hiw.
2. Di
The plan is implemented.
3. Check
Data aee cillected and analysed ti assess the eesults and deteemine ti what eetent the gials and peedicted
iutcimes aee being accimplished. Side efects ie adveese cinsequences aee alsi identfed.
4. Act
Taking actin based upin eesults feim the check step.
- If the planned changes weee successful, they aee insttutinalized and they becime standard work
(dicumented guidelines and peiceduees that will help sustain the changes).
- If they weee successful but implemented inly in a limited way, they aee eepanded.
- If the eesults did nit tuen iut as peedicted, the situatin is eeinvestgated ti discivee why nit and
what needs ti be dine – the beginning if a new PDCA cycle.
5. Gi See
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Ti gi ti the place if the intended change and ibseeve it fie yiueself. It happens at eveey step ti ensuee the
situatin, which likely is fuid and changing, is well-undeestiid and that the step fts the situatin.
FIVE-WHY PROCESS
Whenevee analysing a peiblem, the questin why the peiblem eeists is asked fve tmes. The puepise is ti ensuee that
the eiit causes aee cieeected.
VALUE ANALYSIS/VALUE ENGINEERING

1. Infiematin gatheeing
Data aee cillected abiut the cimpinents ie elements if the system being sceutnized, and fie each element
ie cimpinent its cist, eequieements, and featuees. The wieth if each element is estmated based upin the
least eepensive kniwn alteenatve ti it. Cimpinents having the highest cist-ti-value eati aee identfed.
2. Analysis
The chisen element ie cimpinent is studied fie the functin it seeves. Can it be made betee, fastee ie
cheapee?
3. Ceeatin
Ideas aee geneeated fie betee ways if seeving the same functin as the element undee sceutny.
4. Evaluatin
The alteenatve that seems ti have the best chance if fulflling the functin, but at liwee cist, is chisen as
the eeplacement.
5. Implementatin
The selected alteenatve is adipted and the eesults aee minitieed fie cists and ti ensuee that the functin is
being well seeved by the new element.
When VA is peefiemed fie a peipised peicess and is in cinjunctin with a new peiduct design, it is a step in
concurrmnt mnginmmring and a paet if a methidiligy kniwn as dmsign for ianufacturm and assmibly.
EMPLOYEE-DRIVEN KAIZEN
Mist empliyees di nit liik fie places needing impeivement, and even when they di see ine, they di nit tell
anyine. When they di, few listen. This eepeets-inly appeiach ti impeivement peecinditins vietually eveeyine nit ti
think abiut impeivement. Wiekees must be given the ippietunity and skills ti make impeivements. Empliyee-deiven
eequiees that wiekees be given iwneeship ivee peicess data (data they themselves eecied, and use ti minitie and
impeive the wiekplace), and be eewaeded in ways cimmensueate with theie cinteibutins.
KAIZEN EVENTS
A cimmin appeiach ti inceemental impeivement is a kaizen event. Each event usually euns 2-5 days and is cinducted
by a team facilitated by an eepeet (eepeeienced in lean peiductin and team facilitatin) and led by the peicess iwnee
(supeevisie ie team lead whi iveesees the peicess). The team ficuses in a paetculae peicess, its peiblems and
wastes, which the team atacks. In additin ti atacking peiblems and wastes, a puepise is ti deminsteate and teach
lean peinciples and methids.
1. Mist begin with a peesentatin abiut the ficus and scipe if the peiject, a eeview if lean cincepts and
analysis methidiligy, and a tiue and sceutny if the physical facility if the peicess.
2. The team cillects data feim dieect ibseevatin and measueements if the gemba.
3. The team sets measueable taegets and decides in the additinal data it needs ti fuethee analyse the peicess.
4. The team meets ti eeview fndings and suggest impeivements.
The kaizen team is cimpeised if eveeyine dieectly invilved in the taeget peicess as well as staf and assiciates feim
ithee aeeas whi might be able ti cinteibute ideas ie use what they leaen feim the event in theie iwn aeeas. Kaizen
events aee paet if a beiadee PDCA:
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 D: The event itself

 C&A: Ceeatng a eiutne (standaed wiek) ti minitie the peicess and sustain the impeivements
BASIC PROBLEM-SOLVING AND ANALYSIS TOOL

Kaizen peijects and ithee impeivement efiets geneeally filliw the PDCA peiceduee and eely in the smvmn basic
problmi-solving and analysis tools.
1. Check sheet
It’s a sheet wheee data feim ibseevatins aee eecieded and tallied. It’s designed ti suit a paetculae puepise
and, hence, its cintent and fiemat will vaey depending in the data being cillected. The eesults if
ibseevatins must be the same ni matee whi flls in the sheet.
2. Histigeam
It geaphically shiws the feequency disteibutin if a vaeiable. The hieizintal scale shiuld eetend ivee the full
eange if actual, ibseeved values; the inteevals must be if equal width; and theee must nit be tii many ie
tii few inteevals.
3. Paeeti analysis
It’s a tiil fie sepaeatng the vital few feim the teivial many. It’s useful fie deciding which if seveeal peiblems
ti atack fest. The peiblems that this tiil seeks ti identfy aee thise eelatvely few peiblems that iccue with
the geeatest feequency. The baes if the Paeeti chaet in the lef eepeesent the geeatest feequency.
4. Scatee diageam
It’s used ti eeveal pissible eelatinships between vaeiables. It uses a plit ti eeveal a pissible cieeelatin.
5. Peicess fiwchaet
It shiws the steps in a peicess and is useful fie analysing a peicess ti pinpiint siueces if peiblems. The chaet
shiuld shiw all eelevant actvites, value added and ninvalue added. Caee must be taken in deciding what is
nit eelevant ti the peicess. The amiunt if infiematin and detail shiwn vaeies.
6. Cause-and-efect analysis (Ishikawa diageam/fshbine diageam)
It’s used ti identfy all if the pissible cinteibuties (causes) ti a given iutcime (efect). Causes aee
manpiwee, mateeials, methids, equipment, and envieinment and ithees depending in the peiblem. Eveey
idea is cinsideeed and categieized. Sub elements aee atached undeeneath an idea.
7. Run diageam
It shiws the eesults if ibseevatins taken at peesceibed inteevals. Obseevatins aee plited veesus tme ti
eeveal any eecessive ie iut-if-iedinaey eesults.
VALUE STREAM MAPPING

The ficus is in the valum strmai – that sequence if steps ie iccueeences in a peicess that eesults in peividing a
custimee with a peiduct ie seevice and that impact cist, quality, ie deliveey. The puepise if a value steeam is ti
satsfy a custimee. The map is used ti distnguish value-added feim nin-value-added actvites. Value added is
anything fie which the custimee is willing ti pay. Nin-value added is waste ti be eliminated.
It’s a tiil ti claeify and fuethee undeestanding if a peicess. It uses standaed icins and diageamming peinciples ti
visually display the steps in the peicess and the mateeial and infiematin fiwing theiugh it. It emulates PDCA,
staetng with data cillectin which is used ti ceeate a peicess fiw diageam: current state map, which is used ti
stmulate cinjectuee abiut ippietunites fie impeivement and abiut hiw the peicess iught ti liik: future state.
CONSENSUS BUILDING
Decisiin making theiugh cinsensus is an inheeent featuee if cintnuius impeivement and PDCA. Eveeyine ageees ti
suppiet the decisiin aeeived at by the geiup. Ni ipiniins ie suggestins aee evee ignieed. Ideas which cannit be
accimmidated, eeasins aee peivided. Withiut cinsensus, plans fail fie lack if undeestanding if the situatin,
eesistance, ie impeipee implementatin.

NEMAWASHI
Nmiawashi eefees ti the peicess if cieculatng a plan ie peipisal aming all the peiple afected by it ie whi must
appeive it. The peipisal is passed back-and-fieth aming inteeested paetes and midifed ti inciepieate theie
suggestins and ipiniins.
A3 REPORT
The nemawashi and cinsensus seeking is achieved by using a simple ine-page dicument with lits if geaphs and
chaets: A3. Eveeything impietant abiut the situatin, analysis, and cinclusiins is cleaely peesented in a single,
standaedized-fiemat page. It’s a full eepiet giving all necessaey infiematin, including data, geaphs, and fguees, in ine
side if the sheet.
1. A team peepaees the inital A3 eepiet statng the peiblem, analysis methid, eesults, suggested silutin, and
cist/benefts.
2. The eepiet is cieculated aming eveeyine whi wiuld be afected and is eedine ti inciepieate theie
suggestins.
3. The eepiet gies back and fieth untl cinsensus is eeached.
They can be used in a vaeiety if ways:
 A peiblem-silving A3 is weiten afee the plan, di, and check steps aee cimpleted (but it has staeted dueing).
The lef side is devited ti Plan and the eight ti Di, Check and Act. The sectins aee: eepiet ttle/theme,
backgeiund, cueeent cinditin/peiblem statement, gial, eiit-cause analysis (plan);
ciunteemeasuees/silutins, efect cinfematin, filliw-up actins (di, check).
 A peipisal A3 is weiten dueing the plan step but befiee staetng the di step.
 A status A3 is weiten dueing and afee cimpletng the check and act steps.
CHAPTER 3 – VALUE ADDED AND WASTE ELIMINATION
VALUE-ADDED FOCUS
Impeivement shiuld be applied inly ti value-added and necessaey nin-value-added actvites. Abiut each step, task,
ie actvity in a peicess ask:
1. Dies it teansfiem simething? If yes, gi ti 2. If ni, gi ti 4.

2. Wiuld custimees willingly pay fie it? If yes, gi ti 3. If ni, gi ti 4.
3. Is it dine eight the fest tme? If yes, it’s a valum-addmd actvity. If ni, gi ti 4.
4. Is it necessaey fie the business ie eegulatins? If yes, it’s a nmcmssary non-valum-addmd actvity. If ni, it’s an
unnecessaey nin-value-added actvity, wastm.
The producton organizaton ((front)linm), makes the peiduct ie peivides the seevice. The support organizaton (staf)
assists and suppiets the peiductin ieganizatin but dies litle that qualifes as value added. Eeamples aee planning,
cinteil, and acciuntng actvites; ligistcal actvites; quality actvites; change actvites. They can ifen be eliminated
by simplifying peiducts and peicesses, eliminatng defects at the siuece, impeiving steps ti eemive mistakes and
duplicatin if efiet, and impeiving peiduct design and peiductin planning ti eeduce the numbee if changes.
Feintline wiekees usually kniw what is essental and what is nit, and given the ippietunity, they will shaee that
kniwledge. Wiekee invilvement is thus fundamental ti impeivement efiets. Hiwevee, few peiple will piint iut
unnecessaey pietins if theie wiek if they think it will jeipaedize theie jib ie cintnued empliyed.
SOURCES OF WASTE/MUDA
Tiyita defnes waste as anything ithee than the minimum amiunt if mateeials, equipment, paets, space, ie tme
needed ti add value ti the peiduct. The wastes aee:
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 D waste feim peiducing defects  delay peiductin and inceease lead tmes and inceease cists (waeeanty,
eepaeatin)
 O waste feim iveepeiductin  inceeased cists
 W waste if waitng tme  inceeased lead tme
 N wasted (nin-utlized) human talent
 T waste in teanspietatin
Distance theiugh which items must be mived and the teanspietatin means ti mive them aee deteemined
by the layout if the facility and the routing sequuence if ipeeatins ti peiduce ie seevice the items.
 I waste feim inventiey  inceeased cists
Just-in-case management philisiphy if inventiey means that managees use inventiey as a hedge against
things that might gi weing:
- Inventiey is caeeied as a bufee si mateeial fiw will nit be inteeeupted in the event if equipment
beeakdiwns ie deliveey delays
- Inventiey is caeeied as a bufee ti civee fie defects in mateeials and fnished peiducts
- Laege peiductin euns lead ti laege inventieies, which aee necessaey because if tme-cinsuming and
cistly peiductin setups
 With lean these scenaeiis wiuld nit eequiee laege inventieies
 M waste if mitin  deceeased wiek cintent
Work is a paetculae kind if mitin that adds value ie is necessaey ti add value. Mitin that is nit necessaey
ti di the wiek is cinsideeed waste. Work contmnt is the peipietin if all mitin in a jib that is cinsideeed
useful wiek: wiek/mitin.
 E waste in (eecess) peicessing
Canin’s nine wastes aee the filliwing. These wastes can alsi be applied ti seevice cimpanies.
 Waste caused by wiek-in-peicess

 Waste caused by defects
 Waste in equipment
 Waste in eepense
 Waste in indieect labiue
 Waste in planning
 Waste in human eesiueces
 Waste in ipeeatins
 Waste in staet-up
Twi siueces if iuda/waste aee:
 Mura means uneven wiekfiw theiugh the peiductin peicess. The peicess is thus always changing,
simetmes wieking at capacity, simetmes abive capacity, simetmes beliw capacity ie idle. It eesults feim
eeeatc ie vaeiable demand, uneven peiductin schedules, and inteenal inteeeuptins, such as equipment
failuees, mateeial shietages, and paets defects.
 Muri means iveebuedening – impising a wiekliad in a machine beyind its design limits ie in peiple
beyind theie physical ie mental capacity. It leads ti equipment beeakdiwns, accidents, health issues,
mistakes, and defects. Muea cinteibutes ti muei by iveetaeing the system dueing peeiids if spiked demand.
Muda is bith a cinteibutie ti and a cinsequence if muea.
 Ti eliminate any if the 3 M’s it is necessaey ti eliminate muda and muea.
Lman-to-grmmn prograis specifcally aim ti eeduce bith peiductin-eelated wastes and the envieinmental and
cinsumptin wastes ti which they aee linked. Total wastm rmducton invilves a tital peiduct life-cycle way if
thinking, staetng with a peiduct’s design and ending with its dispisitin at the end if its ipeeatinal life. It means
designing, manufactueing, and disteibutng peiducts, and, in geneeal, diing business in ways that utlize less mateeials

and less eneegy, and a high peipietin if eecycled mateeials. A design philisiphy dmsign for mnvironimnt (DFE)
emphasizes envieinmental cinsideeatin in peiduct and peicess design, peinciples include:
 Minimize usage if hazaedius and bulky mateeials as well as mateeials that invilve eneegy-intensive methids
if peiductin.
 Maeimize usage if mateeials that aee eecyclable and envieinmentally feiendly.
 Design peiducts fie ease if eepaie and eeuse si they aee nit eeadily discaeded.
 Design peiducts fie ease if disassembly afee dispisal.
Dmsign for disassmibly cinsidees hiw the peiduct will be tien apaet at the end if its useful life.
LEAN PRINCIPLES
Lman principlms aee a set if beliefs and assumptins that deive ipeeatinal decisiins and actins abiut peiducts and
peicesses. They addeess geneeal issues abiut what a cimpany shiuld di in teems if peiduct and peicess
impeivements.
1. Simplification implies eliminatin if nin-essentals.

- Peiduct, peicess, and peiceduee simplifcatin means ceitcally sceutnizing the cimpinents ie
elements if the system with an eye tiwaed cimbining, steeamlining, ie eliminatng them. It alsi
means cutng iut ie cutng diwn in featuees that di nit add value.
- Concurrmnt mnginmmring eefees ti a cincept if a multfunctinal team designing and develiping a
peiduct while alsi thinking abiut hiw it will be made, and designing the peicess ti manufactuee the
peiduct.
2. Cleanliness and organization imply thieiughness and atentin ti detail.
- Feintline wiekees shiuld get tigethee ti clean and ieganize theie wiekplace with the emphasis in
keeping it that way.
- Fastee eecignitin if peiblems and defects, impeived wiek safety and mieale.
- 5S kaizmn
1. Smiri/sort: peipee aeeangement; categieize inventiey by ifen used, iccasiinally used,
seldim used, and nevee used.
2. Smiton/straightmn: iedeeliness; specify a place fie eveeything and designate licatins by
numbee, ciliue ciding, name and put eveeything in its place. Eliminate unused items.
3. Smiso/scrub or shinm: cleanliness
4. Smikmtsu/standardizm: ceeate peiceduees, eules, ie guidelines fie maintaining 1-3.
5. Shitsukm/sustain: self-discipline; develip habits and cultuee ti maintain a clean, ieganized
wiekplace.
6. Safmty: eveeything is ieganized with an eye in safety as well as functinality
 Similae peiceduee ti a VSM event. Standaeds aee maintained theiugh feequent audits
and geading.
3. Visibility ensuees that feintline wiekees always have the eight infiematin theiugh simple ibseevatin; they
kniw ipeeatins gials and status by just “seeing”. The peactce if using visible means ti manage and cinteil
ipeeatins is visual ianagmimnt and visual control. Wiekplace ieganizatin and cleanliness cinteibute ti
visibility. Layiut if the factiey cinteibutes ti visibility as well. A U-shape peiduct line alliws wiekees at the
staet if the line ti see what is happening at the end if the line and vice veesa. Putng subassembly aeeas neet
ti fnal assembly enables eveeyine ti see the fnal peiducts inti which theie paets aee giing, which
cinteibutes ti highee mieale and fewee defects. Putng inventiey stick aeeas in the ship fiie neet ti
wiekstatins alliws wiekees ti easily minitie inventiey levels and antcipate when they will need ti iedee
miee paets ie peiduce miee paets.
4. Measurement is fundamental ti PDCA and the means by which impeivement is gauged.
- As much as pissible, ship-fiie assiciates decide what needs ti be measueed and hiw it shiuld be
measuees, and they cillect the data themselves. Measueement helps establish peiieites and ficus
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in the aeeas mist in need if atentin. The puepise if geasseiits measueement is ti seeve PDCA,
and management must ensuee that the data is used fie that puepise. Othee data cillected must be
kept sepaeate.
- Infiematin abiut all aspects if peefiemance and measueements shiuld be pisted wheee
eveeybidy can see it: visual management and daily management aspect.
- Eventually, the eesults if impeivement efiets must be teanslated inti beiadee measuees if
ieganizatin-wide peefiemance and cimpettveness.
5. Agility eefees ti a manufactueee’s ability ti eapidly switch peiducts and peicesses as custimees and maekets
dictate. Agile manufactueing is the ability ti ecinimically switch back and fieth aming vaeiius peiducts,
peiduce any if them in almist any quantty, and di si quickly in eespinse ti unplanned changes in demand.
- The OODA loop is a cincept wheeeby ippinents in a cimpettve situatin ibseeve the situatin
(absieb infiematin), ieient themselves (put the infiematin in cinteet), decide (select a ciuese if
actin), and act (caeey iut the actin). Theiugh eapid eeecutin if the OODA liip, cimpanies can
quickly inceease peiduct vaeiety and steal custimees away feim cimpetties.
6. Cycle timing is the idea that peiductin iutput shiuld be unifiem yet clisely ciincide with demand. The tme
inteeval that elapses between iccueeences if simething is cycle tme. The emphasis is in maintaining a
steady, peedictable peiductin eate and nit in inceeasing that eate. Regulaeity stmulates standaedizatin and
simplifcatin.
7. Variability reduction implies cintnuing efiets ti eeduce peicess vaeiability.
- Peiduct and peicess eequieements aee ifen defned in teems if a tolmrancm rangm with uppee and
liwee specifcatin limits, with the targmt value at the midpiint. Peefiemance is acceptable as ling
as it lies within the eange. When a cimpinent at the eeteeme if its tileeance eange is mated with
anithee that is at the ippisite eeteeme, the eesult is a bad ft: tolmrancm stack-up. It is ibseevable in
peiducts by gaps between paets that shiuld ft snugly ie tght-ftng paets that shiuld ft liisely.
- It infuences peiductin cists and lead tmes: cieeuptng infuence. It inceeases aveeage cycle tmes
and WIP levels.
8. Standardization means that wiek shiuld cinfiem ti standaeds fie the best ways ti di things. The gial if
standaed wiek is ti stabilize the peicess such that mist eveeything eepettve filliws a standaed eiutne.
THE MEANING OF LEAN PRODUCTION
The emphasis if opmratonal mxcmllmncm OpX is in making the cultueal and leadeeship changes necessaey fie eveeyine
ti accept eespinsibility fie impeivement and fie management ti accept empliyee invilvement as the way ti get
theee.
Implementatin baeeiees:
 Attudes
In lean plants, beiadened wiekee invilvement eesults feim a teansfee if eespinsibilites feim suppiet staf,
supeevisies, and managees ti feintline wiekees. The teansfee is successful inly when staf, supeevisies, and
managees accept the peipisitin that wiekees aee capable if handling miee eespinsibility. The wiekees must
alsi embeace the cincept.
 Time cimmitment
Lean peigeams take tme ti shiw benefts, especially fnancial. Lean can appeae eisky because if the tme and
eepense in teaining peigeams and impeivement and waste-eeductin peijects.
 Quality cimmitment
Quality must be designed inti the peiduct and the peiductin peicess, which eequiees adiptng a new
peiduct/peicess design methidiligy. Alsi, feintline wiekees must be given tme ti teiubleshiit and eesilve
quality peiblems at the siuece.
Misundeestandings in lean peiductin:
 Lean peiductin is nit ficused silely in inventiey. Reducing inventieies will nit silve all peiblems.
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 Lean is a system ti implement, nit a few methids.
CHAPTER 4 – CUSTOMER-FOCUSED QUALITY
QUALITY DEFINED
Custoimr-focusmd quality is the way custimees view ie feel abiut a peiduct. The cinnectin between quality and
cist is value, the eetent ti which custimees feel they paid a giid peice fie the quality they eeceived in eetuen. Feim
the custimee’s peespectve, quality is hiw well the peiduct cimpaees with what she eepects feim it: ftnmss for usm.
Gaevin identfes 8 dimensiins if quality:
1. Performance: ipeeatng chaeacteeistcs such as speed, cimfiet, and ease if use.

2. Features: eeteas, add-ins, ie gimmicks that enable a custimee ti simewhat custimize a peiduct.
3. Reliability: likelihiid the peiduct will peefiem as eepected (nit malfunctin) within a given tme peeiid.
4. Conformance: degeee ti which the peiduct satsfes ie cinfiems ti pee-established standaeds.
5. Durability: length if tme ie eetent if use befiee the peiduct deteeiieates and must be eeplaced; functin if
the peiduct’s ipeeatng envieinment and eeliability.
6. Serviceability: speed, ease, and cinvenience if getng ie making eepaies, and the ciuetesy and cimpetency
if eepaie peiple.
7. Aesthetics: liik, feel, taste, siund, ie smell if the peiduct based in peesinal taste.
8. Perceived value: ipiniins abiut the peiduct based in images ie attudes fiemed by adveetsing and/ie the
eeputatin if the peiducee.
(Service quuality: peiduct availability, suppiet ifeeed by the manufactueee afee the peiduct is puechased, and
a kniwledgeable and ciueteius sales and suppiet staf)
Voicm of thm custoimr (custimee eequieements) eefees ti the wants and needs if the custimee. In geneeal, needs
cime befiee wants, but all wants and neds shiuld be categieized by impietance. Once a cimpany has deteemined the
VOC it must teanslate them inti a peiduct design and then inti a manufactueing peicess able ti make the peiduct.
Quality of dmsign eepeesents the ability if a peiduct as designed ti satsfy ie eeceed custimee eequieements. It must
alsi take inti acciunt peiduct demand, availability if mateeials and paets, and the capability if the manufactueee ti
peiduce the peiduct. The design must alsi acciunt fie the maeket and the peiducee’s capability and cimpettve
pisitin. The Kano iodml guides peiducees in making peiducts miee cimpettve by atending ti peiduct
eequieements, which fall inti 3 categieies:
 Must-be requuirements aee eepected and taken fie geanted by custimees. the custimee just assumes the
peiduct will meet these eequieements. They di nithing ti inceease custimee satsfactin, althiugh if unmet,
they deceease satsfactin.
 Performance requuirements aee stated by the peiducee and must accimpany the peiduct. The custimee teusts
the peiduct will meet these eequieements; when the eequieements aee met, the custimee is satsfed; when
nit met, the custimee is dissatsfed.
 Delighter requuirements aee uneepected and suepeise the custimee. When they iccue, they delight and satsfy
the custimee; hiwevee, when they di nit iccue, they have ni efect in satsfactin.
Quality of conforiancm eefees ti the manufactueed peiduct cinsistently uphilding the eequieements as set in the
peiduct design. Defect implies deviatin feim the design eequieements ie inability ti meet a ftness-fie-use ceiteeia.
 Defect dmtmcton eefees ti inspectin, test, and analysis if peiducts using (typically) statstcal sampling
peiceduees ti deteemine the peesence if defects and ti deaw cinclusiins abiut the quality if an iveeall
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peicess ie batch. It helps ensuee that the peiduct giing ti the custimee is satsfactiey; hiwevee, it dies
nithing ti impeive the quality if the peiduct.
 Dmfmct prmvmnton eefees ti minitieing and cinteilling vaeiatin in the peicess, using statstcal peiceduees,
and identfying causes if vaeiatin that ciuld lead ti defects. Fie sime peicesses, defects caused by eeeies ie
inadveetent mistakes can be vietually eliminated theiugh mrror-proofng ie iistakm-proofng peiceduees.
With lean and TQM the ficus is in defect peeventin.
TOTAL QUALITY MANAGEMENT
Total Quality Managmimnt is a management appeiach that ficuses all functins and levels if the ieganizatin in
quality and cintnuius impeivement. It’s a peicess cimmited ti cintnuius quality impeivement, which is necessaey
ti suevive and theive in a changing, cimpettve wield:
 Ni matee what quality standaed a cimpany sets, the cimpetties will eventually meet and eeceed that
standaed.
 Custimee eepectatins aee cintnuiusly inceeasing.
 Ni level if quality can be sustained in its iwn. Withiut cintnuius efiet, the inclinatin is ti fall back ti
fiemee, liwee-quality standaeds.
Quality of pmrforiancm/smrvicm eefees ti hiw well the fnished peiduct measuees up ti the custimee’s eepectatins
and eequieements, which depends in hiw well the cimpany eeecutes the quality if design and quality if
cinfiemance tasks. Respinsibilites fie TQM aee speead aceiss all functinal aeeas:
 Maeketng, sales and fnance

Theiugh cinsumee eeseaech, maeketng deteemines custimees’ wants and needs, defnes custimee quality
chaeacteeistcs and eequieements, and deteemines what custimees aee willing ti pay. The sales fiece peivides
custimee ipiniins abiut cueeent peiducts and custimee suggestins fie futuee peiducts. Finance and
acciuntng peivide infiematin necessaey ti suppiet cintnuius impeivement efiets and make cimpettve
ipeeatinal decisiins. They peivide a balanced view if hiw well the cimpany is meetng custimee-defned
eequieements.
 Peiduct design and manufactueing peicess design
Peiduct designees and engineees wiek with maeketng and sales ti teanslate custimee needs, wants, and
eepectatins inti peiduct eequieements and ti ceeate a physical design. Peiduct designees alsi wiek with
manufactueing engineees ti ensuee the peiduct design acciunts alsi fie the cimpany’s peicess, equipment
and labiue skills that will cinveet the design inti an actual peiduct. Aming the appeiaches fie
simultaneiusly addeessing custimee eequieements and peiductin-peicess eequieements aee:
- Concurrent engineering: the functinal aeeas if peiduct design and manufactueing wiek as a team ti
ceeate a peiduct design that will bith satsfy the custimee and meet the eequieements if the
manufactueing peicess. The peiduct is designed ti be “manufactueable” (peiduced and assembled
well within the cimpany’s capability), which usually means it can be peiduced with high quality and
fie simewhat liw cist. The team might alsi include eepeesentatves feim sales, fnance, and
puechasing, and custimees and suppliees.
- Dmsign for ianufacturm and assmibly (DFMA) cinsidees featuees in the peiduct’s design that will
simplify its manufactuee and assembly, and, usually, simplify the manufactueing peicess, eeduce
manufactueing cists, and impeive manufactueing quality. It includes methidiligies and tiils ti
make suee that the peiduct’s design addeesses matees such as mateeials usage, mateeial fieming
and shaping peiceduees, machining peicesses, mateeial handling, and machine and tiil changeivee
peiceduees. It ifees guidelines ti impeive a peiduct’s manufactueability and fie assembling paets
and the best sequence if assembly.
- Peiductin peepaeatin peicess
 Emphasis if the appeiaches is ti design in quality and design iut defects, an aspect if quality at
thm sourcm.
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 Puechasing and suppliees

Puechasing ensuees that puechased paets and mateeials meet quality eequieements and that suppliees meet
deliveey and seevice eequieements and guaeantee quality paets. Puechasing agents peivide peiduct designees
with infiematin abiut the availability, techniligy, and cists if paets and mateeials that gi inti peiducts.
Lean ieganizatins fiem custoimr-supplimr partnmrships wheeein a suppliee’s managees and engineees
paetcipate in the custimee’s peiduct design peicess and ifee eecimmendatins abiut the paets they will be
supplying. Custimees peivide suppliees with teaining and suppiet ti help the suppliee betee meet the
custimee’s eequieements.
 Peiductin management and feintline wiekees
Peiductin management is eespinsible fie planning and cinteilling the mateeials, equipment, and feintline
wiekfiece si as ti minimize mateeial defects, equipment beeakdiwns, iedee backligs, and ithee peiblems
that cinteibute ti piie quality. TQM puts eespinsibility fie quality with the peiple in the best pisitin ti
identfy and quickly eemedy defects in peiductin: quality at thm sourcm. Supeevisies and feintline wiekees
actvely paetcipate in peiblem-silving sessiins and aee integeal ti the quality impeivement peicess.
 Custimee seevice
A high-quality peiduct includes seevices ti ensuee the custimee gets adequate infiematin, suppiet, and
assistance ti install, ipeeate, and maintain the peiduct. Custimee seevice is a siuece if infiematin abiut
custimees’ ipiniins and suggestins. Theeefiee the siueces if quality peiblems in eeistng peiducts can be
identfed and eliminated, and suggestins fie impeivements integeated inti new peiducts.
SIX SIGMA
Beyind peifts, ithee eeasins cimpanies adipt the Sie Sigma cincept include beciming miee cimpettve, eeceeding
custimee eequieements, and being ceetfed ti supply Sie Sigma business custimees. it peivides dieectin and peiieity
in quality impeivement and it’s ifen paetneeed with lean peicess impeivement methids. It emphasizes custimee
ficus, vaeiability eeductin, peiduct and seevice peefiemance, fnancial peefiemance, and ability ti meet quality
eequieements.
Accieding ti the Sie Sigma standaed, giid quality is 00.99966% quality which teanslates inti 3.4 eeeies pee milliin.
“Acceptable tileeance” eepeesents the eange if iutput cinsideeed acceptable, and the shaded eegiins eepeesent
iutput that is unacceptable ie non-conforiing (beyind the tileeance eange). In a Sie Sigma quality peicess, the
unacceptable items aee licated 6 standaed deviatins away feim the mean. The numbee if items in the shaded
eegiins will numbee inly 3.4 pee milliin iccueeences.
DEFINE, MEASURE, ANALYZE, IMPROVE, CONTROL IMPROVEMENT PROCESS

The Sie Sigma philisiphy is enacted by peiject teams that filliw the methidiligy called DMAIC that eepeesents the
filliwing fve steps:
1. Dmfnm (D): defne the peiblem, the custimee if the peiblem, and ceitcal-ti-quality ateibutes (CTQs) – the
ceiteeia the custimee cinsidees mist impietant.
2. Mmasurm (M): identfy the peicesses that infuence the CTQs and measuee theie peefiemance.
3. Analysm (A): deteemine the causes if peiblems ie piie peefiemance in the peicess and key facties causing
laege ie eeeatc vaeiatin in the peicess.
4. Iiprovm (I): cinfem the impact if the key facties in the CTQs. Deteemine methids fie measueing vaeiatin,
the maeimum acceptable eange if vaeiatin, and methids ti make the peicess acceptable.
5. Control (C): empliy the methids necessaey ti ensuee that the peicess stays within the acceptable eange if
vaeiatin.
BELTS AND CERTIFICATION
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Cimpanies with Sie Sigma peigeams engage in ingiing peijects similae ti the kaizen peijects. The peijects filliw the
steps if DMAIC and aee facilitated by belts, eepeets ceetfed in the DMAIC peicess and teained in data cillectin,
statstcal analysis, and peiblem silving, and eepeeienced in Sie Sigma peijects. Belt levels aee:
 Grmmn bmlts: teained in data cillectin and analysis tiils and Sie Sigma methidiligy, plus additinally teained
by the miee-qualifed Black Belts.
 Black bmlts: peimited geeen belts; assume full-tme eespinsibility fie leading and cinsultng with
impeivement teams theiughiut the ieganizatin and its custimees and suppliee ieganizatins, and teaining
and mentieing geeen belts.
 Mastmr black bmlts: peimited black belts; eespinsible fie setng qualites steategies and depliyment
methids, and fie teaining and mentieing black belts.
 Chaipions: business leadees teained in Sie Sigma tiils and eespinsible fie peimitng and leading the
cimpanywide Sie Sigma peigeam.
STATISTICAL PROCESS CONTROL, SPC
SPC is a methidiligy fie establishing and maintaining high-quality iutput. It includes a set if tiils and peinciples fie
deteemining if a peicess is stable, fie minitieing a peicess fie pissible changes in behaviiue, and fie assessing
whethee a peicess is capable if meetng eequieement specifcatins.
SPC is empliyed in PDCA fashiin: P peepaee and stabilize the peicess, and ceeate cinteil chaets; D ipeeate the
peicess; C sample peicess data, plit eesults in the chaets, identfy abniemalites; A eemedy siueces if
abniemalites.
CONTROL CHART
The tiil used ti minitie a peicess fie pitental change ie abniemalites is the control chart. It cinsists if theee lines
eepeesentng a centee line and uppee and liwee cinteil limits, all if which aee cimputed feim sample data and
statstcal fiemulae. Once the values fie these lines aee set, the cinteil chaet is used ti minitie the peicess by takin
peeiidic samples (measueements) feim the peicess and plitng the eesults in the chaet.
 If eesults eemain within the cinteil limits and eehibit eandim vaeiatin (neithee tii many piints in successiin
teending upwaed ie diwnwaed nie tii many lying abive ie beliw the centee line), the peicess is cinsideeed
in cinteil, which means the vaeiatin feim sample ti sample is eandim and the peicess is stable and has nit
changed.
 If piints lie iutside the cinteil limits ie in successiin eehibit nin-eandim behaviiue, the peicess will be
cinsideeed abniemal ie iut-if-cinteil and suspected if having changed. An abnoriality like this shiuld
iccue inly veey eaeely in a stable peicess, and the wiekee will stip the peicess ti investgate what might have
happened.
Upin fnding the siuece if the peiblem, the peicess is cieeected. Standaed wiek is midifed ti include the silutin si
as ti eeduce the likelihiid if the peiblem eeiccueeing. A giid peicess is ine wheee the mean and the vaeiability if
the peicess in cimbinatin eesult in a veey high peecentage if peicess iutput meetng peiduct ie peicess
eequieements. If eithee the chaet fie the mean ie the ine fie vaeiatin indicates a pitental change, the peicess is
stipped and investgated fie cause.
PROCESS STABILITY
A stablm peicess is ine wheee fundamental featuees if the peicess aee eepettve and unchanging. It implies that the
mean and standaed deviatin if a peicess aee cinstant. The mean and/ie standaed deviatin in an unstablm peicess
aee always changing due ti cinstant changes in facties that afect the peicess. Achieving peicess stability is ine if the
main gials if lean peiductin. Befiee empliying cinteil chaets ti minitie a peicess it is thus impietant fest ti ensuee
that the peicess is stable and, if it is nit, ti stabilize it.
15

PROCESS CAPABILITY
A peicess that peiduces iutput as it shiuld is capablm: with eaee eeceptin it peiduces iutput that cinfiems ti
specifcatins that aee deeived feim the custimee eequieements. If peicess capability is giid, then the peicess is
stable and cinteil chaets shiuld be applied ti minitie and keep the peicess as is. If the capability is piie, deteemine
the peicess capability and whatevee fees aee necessaey ti impeive it, insttute the fees, then again deteemine
capability and eepeat, insttutinalizing each impeivement by inciepieatng it inti standaed wiek.
NON-STATISTICAL PROCESS CONTROL

Visual management is an eeample, which puts data and infiematin in the ipen fie eveeyine ti see. Wiekplace
discipline and ieganizatin alsi beneft peicess cinteil. Mist eveeything that fiws theiugh a lean peicess filliws the
fest-in, fest-iut peiieity eule. The eule is eeinfieced with pisted standaed peiceduees and suitable equipment. Items
mive in a steeam that peevents bad ines feim being inteemingled with giid ines.
EMPLOYEE INVOLVEMENT AND QUALITY OWNERSHIP
 Feintline wiekee eespinsibility

Acceptng peesinal eespinsibility fie quality is a peecept if quality at the siuece. Feintline wiekees aee as
clise ti the siuece as humanly pissible. Being within the peicess, they aee able ti ibseeve defects and
mistakes as they iccue and, ifen, ti enact small fees that eliminate the causes.
 Peicess ieientatin
Impeivement teams in lean TQM ieganizatins aee ieganized aeiund peicesses, which means each team is
cimpeised if wiekees and suppiet staf linked by a cimmin peicess. Kaizen and DMAIC aee alsi peicess
ieiented and eely substantally in paetcipatin feim wiekee assiciates and suppiet stafees whi kniw the
mist abiut the peicess.
 Quality teaining and educatin
Ti peimite quality with paetcipatin by eveeyine, QC educatin must be available ti eveey empliyee. The
best kind if teaining is just-in-tim (JIT) stylm training: teaining and educatin that can be applied
immediately, as needed, and in the jib. Best is an ingiing seeies if shiet teaining sessiins dueing which
wiekee aee taught inly what they can apply siin. The siinee they can apply leaened skills, the miee efectve
the leaening and the lingee it will be eetained. Managees and supeevisies aee teained in hiw ti manage and
supeevise empiweeed wiekees.
IMPLEMENTING TQM
 Tip management sets the visiin.

 The visiin is beiken inti naeeiwee, miee ficused, and shietee-eange ibjectves and plans at eveey level if the
ieganizatin.
 The visiin and ibjectves aee set high and ficus laegely in the eeteenal custimee.
 Objectves aee develiped by teams at eveey level si as ti invilve mist if the empliyee pipulatin.
Reasins why TQM fails:
 Lack if ling-teem management cimmitment

 Lack if empliyee invilvement
 Ficus in the teivial many peiblems facing a cimpany eathee than the ceitcal few
 Emphasis in inteenal peicesses ti the neglect if eeteenal (custimee-ficused) eesults
 Emphasis in quick fees and liw-level eefiems
 Teaining that is laegely ieeelevant and lacks ficus
 Lack if ceiss-disciplinaey, ceiss-functinal efiets
 Lack if appeipeiate measuees, peefiemance eepietng, and eewaed systems
16

TQM AND LEAN PRODUCTION
Lean is a peicess beiadly aimed at inceeasing value added and eliminatng waste, and includes techniques geaeed
tiwaed thise things. Peicess impeivement and waste eeductin eequiee a cimpanywide, integeated efiet that
includes all functins, as well as manufactueing, which is the emphasis if TQM and its cimpanywide cimmitment ti
quality. TQM seeks impeivements that matee mist ti custimees. Jiint applicatin if lean peiductin peinciples with
TQM and Sie Sigma methidiligy is eefeeeed ti as lman Six Sigia.
CHAPTER 5 – SMALL LOT PRODUCTION
A lot is a batch if simething; they aee syninyms. Deteemining the eight-size lit is lot sizing. Beyind cists, lit sizing is
impietant because it impacts manufactueing speed, quality, and agility.
 A lit that is cimpised if a quantty if items manufactueed as the eesult if a single setup is a
producton/procmss batch.
 A lit that is a quantty if mateeials puechased feim a suppliee is a purchasm/ordmr batch.
 A lit that is mived ie teansfeeeed feim ine ipeeatin ie wiekstatin ti anithee is a transfmr batch.
 A lit shipped between suppliee and custimee is a dmlivmry quantty.
LOT-SIZE BASICS
Mist peiductin efiets begin with smtup. The desiee ti minimize the tme and cist assiciated with setup leads ti
wieking with laege-size lits ie batches. The twi dillae cists assiciated with lit sizing aee:
 Smtup cost, S, is the cist if peepaeing ti make a batch ie if iedeeing a batch. S is a feed cist, independent if
the size if the batch peiduced ie iedeeed.
- In manufactueing S is the cist if changeivee feim making ine kind if item ti anithee kind. It may
include the cist if list peiductin while a machine ie peicess is being changed ivee and the cist if
sceap incueeed while adjustng the machine.
- In puechasing, S is the ordmr cost, which is the cist if placing and eeceiving an iedee.
 Holding cost, H, is the cist if hilding a unit in inventiey fie a given tme peeiid. It includes eepenses such as
stieage, teacking and minitieing if inventiey, damage and pilfeeage, insueance, inteeest in miney ti
peiduce ie peicuee the items in inventiey, and the ippietunity cist if miney ted up in inventiey. H is a
peecentage if the value if the item held in stick: H eP
- P unit producton cost/unit procurmimnt cost, the cist if manufactueing ie puechasing ine unit.
- e peecentage based upin eates fie bieeiwing, insueing, investng etc.
Siall-batch producton and dmlivmry is a featuee if lean peiductin. Hiwevee, if S is laege, then the lit-size must alsi
be laege. In lean peiductin S is teeated as nit being feed and the gial is ti eeduce S ti zeei if pissible. It thus
emphasizes smtup rmducton as a fiem if cintnuius impeivement.
LOT SIZING: PROCESS AND PURCHASE BATCHES
LOT-FOR-LOT
In lot-for-lot (LFL) lit sizing, the size if the lit ie batch cieeespinds eeactly ti the amiunt demanded
(iedeeed/fieecast) dueing a paetculae tme peeiid. If each batch is shipped eight afee peiductin, hilding cists will be
zeei because each lit will have been sent immediately and nevee held in stick. Cists fie setups ie iedeeing tend ti be
high. An advantage is that it geneeally wieks well in pull-peiductin systems and push-peiductin systems. It alsi
wieks well whethee demand is independent ie dependent.
Indmpmndmnt dmiand means the demand fie an item is geneeated eeigenius ti the peiductin system; demand is
custimee ie maeket deiven. Such demand is deteemined feim a fieecast, actual sales, ie a cimbinatin. Dmpmndmnt
17

dmiand means the demand fie an item is geneeated inteenal ti the peiductin system and usually, as a functin if
the demand fie a highee-level item.
PERIOD ORDER QUANTITY

The pmriod ordmr quantty (POQ) methid eeduces the numbee if setups ie iedees by eesteictng the feequency if
setups ie iedees. It staets with a peedeteemined ordmr frmqumncy, and then deteemines the lit-size accieding ti the
demand iccueeing between successive iedees. It eesults in fewee numbees if setups ie iedees than LFL, but it eesults in
inventiey being caeeied.
ECONOMIC ORDER QUANTITY

The mconoiic ordmr quantty (EOQ) midel yields the lit size that mist ecinimically satsfes demand. It minimizes
the sum if setup cists and caeeying cists ivee a specifed tme peeiid. Tital annual cist is: TC (SD/Q) + (HQ/2). The
lit value, Q, that minimizes this cist is: Q EOQ √(2 DS/ H ¿)¿. EOQ is the iptmal (least cist) lit size, D is
aveeage demand fie a yeae, S setup (ie iedee) cist, H – unit hilding cist pee yeae, eP.
The midel hilds fie the filliwing assumptins:
1. Demand is cinstant and cintnuius.

2. Demand is independent.
3. Setup (iedee) cist, S, is feed, eegaedless if lit size.
4. Unit caeeying cist, H, is cinstant; tital caeeying cist is a lineae functin if lit size.
5. The entee lit is peiduced ie deliveeed all at ince.
6. Unit puechase peice ie manufactueing cist, P, is feed, eegaedless if lit size (ni quantty disciunts ie
peiductin ecinimies).
7. Stickiuts (ie subsequent backiedees) di nit iccue.
ECONOMIC MANUFACTURING QUANTITY

The EOQ midel assumes that the entee lit is peiduced ie deliveeed all at ine tme. when items aee manufactueed
ine at a tme, unit by unit, at the producton ratm p, the inventiey will geiw geadually as each cimpleted unit is
mived inti inventiey. Ti acciunt fie this geadual inceease in inventiey the EOQ midel is midifed, and the iptmal
peiductin lit size is the mconoiic ianufacturing quantty (EMQ). All ithee assumptins aee the same as fie the EOQ
midel.
√
2 DS
( )
D
Q EMQ
H [1− ]
p
Peiblems with EOQ:
 Vietually ni industey has cintnuius, feed demand, and many industeies have seasinal ie eeeatc demand.
When demand fuctuates much, the EOQ-deeived lit sizes based in aveeage demand eesult in eithee eecess
inventiey ie stickiuts.
 Deteemining setup, iedee, and caeeying cists takes cinsideeable acciuntng fnesse ti be able ti di it
accueately.
LOT SIZING: TRANSFER BATCHES
18

One way ti eeduce peiductin lead tme and WIP fie peicess batches if any size is ti use lit splitng and mive items
in smallee size transfmr batchms. Using teansfee batches that aee smallee than the peicess batch eeduces peiductin
lead tmes because items cimpleted at an ipeeatin have ti wait less untl they aee mived ti the neet ipeeatin.
Small teansfee batches peivide these benefts inly if the teansfee batches can be peicessed as siin as they aeeive at
the neet ipeeatin. The geeatee the WIP in feint if ipeeatins ie the lingee the setup tmes, the smallee the beneft if
using small teansfee batches. The smallee the teansfee batch, the laegee the numbee if teansfees (mives) eequieed.
LOT SIZE REDUCTION
 Lead tme
The smallee the size if a jib, the less tme the jib tes up an ipeeatin, and the less ithee jibs at the same
ipeeatin have ti wait ti be peicessed. Besides eeducing the tital lead tme, beeaking a laege batch inti
smallee batches simetmes has anithee beneft: liwee lead tme vaeiability.
 Inventiey
Smallee inventieies cist less ti caeey, items aee easiee ti teack and inventiey eecieds aee miee accueate.
Small inventieies alsi feee up fiie space and alliw mateeials ti be sticked neet ti the machines and
ipeeatins wheee they aee needed: point of usm. Piint-if-use sticking eliminates the diuble handling and
diuble acciuntng that iccue when mateeials aee put inti stickeiims and then latee withdeawn and mived
ti the places wheee needed.
 Setup and handling cist
If peicess and teansfee lit sizes aee ti be eeduced, the tme and cist assiciated with setups and mateeial
handling must alsi be eeduced ti make small lit peiductin peactcal and ecinimically feasible.
 Quality
Defects aee ifen batch specifc. The laegee the batch the miee units afected. With laegee batches a defect
might nit be disciveeed untl much latee, and by that tme the cause if the defect might be difcult ie
impissible ti fnd.
 Fleeibility
Laege WIP eeduces the ability if a peicess ti adjust ti changes in peiducts ie demand. With smallee batches,
it is easiee ti change jib schedules and inseet new jibs with less efect in the schedules if ithee jibs. Alsi,
iedees eepeesentng fieecast demand must be fieecasted faethee inti the futuee ti be able ti be flled by the
eequieed date, althiugh such fieecasts will be less accueate.
BATCH SIZE ONE ONE PIECE FLOW

Peiducing jibs cimpletng ine unit at a tme is onm-pimcm fow. One-piece peiductin fiw if mieed peiducts is
iixmd-iodml producton (MMP) ie hmijunka. One-piece fiw eequiees setup and handling fie each piece, si ti be
peactcal, setup and handling tme/cist must be vietually zeei. One way ti eliminate setup is design fie manufactuee –
design peiduct X and Y si they aee similae eniugh as ti eequiee ni setup ie changeivee between them. Handling is
eliminated by eepisitining wiekees and equipment feim difeeent ipeeatins eight neet ti each ithee in a small space
ceeatng a workcmll.
CASE FOR LARGER PROCESS BATCHES

A botlmnmck ipeeatin is ine wheee the peiductin capacity is less than the demand placed upin it; it is a eesiuece
fie which scheduled wiek eeceeds the wiek capacity. Laegee-sized peicess batches might be desieable because theee
wiuld then be fewee setups, alliwing miee tme fie peicessing and inceeasing the theiughput. Seveeal difeeent jibs
that all eequiee the same kind if setup can be cimbined inti ine laege batch, ignieing peiieites ie due dates in the
jibs.
An almist-bitleneck ipeeatin is ine wheee capacity is baeely adequate; it ciuld eeadily becime a bitleneck if
additinal jibs aee impised in it ie cueeent jibs aee eescheduled caeelessly. Peicess batches can be smallee than at
bitlenecks, thiugh the feasible minimal size depends in the eesultng numbee if setups and the tme eemaining fie
peiductin. The numbee if eesultng setups must nit tuen an almist-bitleneck inti a suee bitleneck.
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MINIMAL LOT SIZE

The minimum feasible lit size fie a given demand is cinsteained by the peiductin capacity and setup tme.
Numbee if pissible setups tme available fie setups/tme ti peefiem each setup
Minimal peicess lit size aveeage demand/numbee if setups
The tme we use ti peefiem each setup is the intmrnal smtup tim, which is the tme dueing which the machine ie
ipeeatin must be stipped in iedee ti peefiem the setup. The mxtmrnal smtup tim is the tme devited ti the setup
tasks that ciuld be peefiemed while the machine ie ipeeatin is eunning.
BUFFER STOCK
Bufmr stock (safmty stock) is eecess inventiey held between stags if a peicess ti aviid eunning shiet. Reasins fie
caeeying bufee stick aee unceetainty abiut demand and unceetainty abiut lead tme. Bufee stick’s puepise is ti
peitect the peicess against vaeiability in demand and lead tme and thus ti eeduce it it’s necessaey ti eeduce
vaeiability.
One way ti eeduce demand vaeiability is ti level the peiductin schedule; ti peiduce the same quantty if an item in
each and eveey tme peeiid. With a level schedule, theee is litle (ie less) vaeiability and hence, litle (ie less) need fie
bufee sticks. When demand cannit be levelled, then peiductin shiuld mimic demand: stip-gi, stip-gi, peiducing
as clise ti demand as pissible.
Vaeiability in intmrnal (peicess) lead tmes stems feim vaeiability in equipment functining, setup tmes, wiekee
absenteeism, and skill level, mateeial and peiduct defects, and innumeeable ithee siueces. It can be eeduced by
equipment peeventve maintenance, setup impeivement, peiductin quality cinteil, and standaedized ipeeatins.
Vaeiability in mxtmrnal lead tmes stems feim uneeliable deliveey. It can be eeduced by cinteactng with dependable
suppliees.
FACILITATING SMALL LOT SIZES
 Shietee setup tmes enable smallee peiductin batches

 Reducing the size if puechase quanttes eequiees eeducing the cist if iedee placement and peicessing.
- One way ti eeduce iedee cists is ti mive sime if the eespinsibility fie puechasing feim the
puechasing depaetment ti the peiductin depaetment and even tit the ship fiie. This eeduces
puechasing iveehead cists and iedee lead tmes.
- Anithee way is ti eeduce the numbee if suppliees and ti develip standaed ageeements and teustng
eelatinships, which deceeases the iveehead cist. Remaining suppliees get a laegee shaee if the
business and aee thus miee cimmited ti peividing betee seevice. Suppliees alsi take in much if
the eespinsibility fie the quality if inciming mateeials, which eeduces ie eliminates cists assiciated
with the custimee peefieming inciming inspectin. Alsi, paetnee suppliees and custimees wiek
tigethee ti deteemine ways ti mutually eeduce iedeeing, teanspietatin, and eeceiving cists.
 The feasibility if small teansfee batches depends in the cist if mateeial handling: as this gies diwn, smallee
batches becime miee ecinimical. The cist if mateeial handling is a functin if: distance ivee which
mateeials aee mived, numbee if steps ie teansactins invilved in the mive and cimpleeity ie siphistcatin
if the eequieed mateeial handling system.
 Ti make small sized deliveeies feim suppliees peactcal, the pee-unit teanspietatin cist must be eeduced.
One way ti di this is ti use smallee teucks and vans fie shiet-distance deliveeies ie ti use laege teucks, but
visit miee custimees in each teip.
CHAPTER 6 – SETUP-TIME REDUCTION
WHY IMPROVE SETUPS?
20

Cimpanies have teaditinally siught ti keep the numbee if setups ti a minimum as it takes tme, cists miney, and
peiduces nithing. Cimpanies assign setup ipeeatins ti skilled wiekees “setup peesin/engineee”. When they aee
scaece, equipment sits idle untl they aeeive. By peiducing similae peiducts cimpanies can eeduce the numbee and
types if setups. It can alsi be eeduced by scheduling the jibs in a sequence si that all jibs with similae ie identcal
setups aee peiduced back ti back. This methid uses similaeity if setup as the ceiteeiin fie wiek scheduling.
If the gial is ti minimize peiductin cists and maeimize quality and custimee seevice, then the abive mentined has
deawbacks. It hampees peiduct diveesity, quality, and peiductin feeibility fie the sake if ine thing: minimum
numbee if setups. If yiu cinsidee setup tme as vaeiable and impeivable, then yiu will seek ti change the setup
peiceduee (ti eeduce it). Benefts if simplifed setups aee:
 Quality: A mistake dueing setup has pitental ti cause defects in eveey unit in a batch, but peiple make fewee
mistakes when they filliw simplee peiceduees.
 Costs: simplee setups eeduce the eequieed labiue hiues and skill level fie setups, and eliminate sceap
peiduced dueing the setup  setup eelated cists aee eeduced.
 Flexibility: with quick setups, manufactueing has miee feeibility ti adjust ti changing peiducts and changing
levels if demand.
 Worker utilization: simple setups di nit eequiee special skills and can be dine as needed by equipment
ipeeaties, which eeduces theie idle tme. It alsi alliws setup specialists miee tme ti devite ti wieking in
technically difcult setups and fnding ways ti impeive setup peiceduees.
 Capacity and lead times: shietee setup tmes inceease peiductin capacity. Peiductin lead tme is eeduced
due ti the cimbinatin if smallee lit sizes and less tme waitng fie setup.
 Process variability: simplee, standaedizes setup peiceduees that aee cleaely defned eeduce setup vaeiability
and peicess vaeiability.
Why cimpanies neglect setup eeductin:
1. Nit untl eecently aee wiekee assiciates teams, whi dedicate efiet ti setups, given eespinsibility fie making
impeivements in machines, tiils, and methids.
2. Managees peefee ti buy new equipment eathee than impeive eeistng equipment.
3. Engineees asked ti cime up with setup impeivements ifen ifee suggestins that aee simewhat cimplee,
and thus, eejected as tii cistly ie impeactcal. Mist setup impeivements can be achieved by eelatvely simple
means and liw cist.
4. Setup eeductin eequiees the skills if machinists and tiilmakees, whi aee ifen tii busy feing beiken
machines ie peepaeing tiils fie new peiducts.
5. Reducing setup in just a few machines ie peicesses has litle impact, and individual setup eeductin peijects
aee haed ti justfy. Setup eeductin must happen machine by machine, and it will take a while ti see the
benefts.
SETUP-REDUCTION METHODOLOGY
Using SMED fie singlm-iinutm mxchangm of dims, Shingi was able ti eeduce setup tme cinsideeably. It cinsists if fiue
stages.
1. Stage 1: Identfy inteenal and eeteenal setups

The peimaey ficus in setup tme eeductin is in inteenal tme. The study is peefiemed by detailed ibseevatin
if the peiceduee and may invilve stipwatch analysis if the steps, wiekee inteeviews, and videi eecieding the
setup peiceduee. Dueing the analysis, ceetain steps might be identfed as ibsilete ie ni lingee peactcal.
These aee then classifed as unnecessaey and eliminated. The eesults aee eecieded in a wieksheet.
2. Stage 2: Cinveet inteenal steps ti inteenal
Wheeevee pissible, setup steps fiemeely dine while the ipeeatin/machine was stipped (inteenal tme) aee
niw dine while it is eunning (eeteenal), which eesults in a deamatc eeductin in inteenal setup tme. All
inteenal setup steps shiuld be ee-eeamined ti deteemine if any if them ciuld be eeclassifed as eeteenal.
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3. Stage 3: Impeive all aspects if the setup ieganizatin

Cinveetng inteenal ti eeteenal eeduces setup tme, but usually nit eniugh ti be in the single-minute eange
(less than 10 min.). It alsi dies nit eeduce the labiue ie mateeial cist if the setup. As ling as the eeteenal
setup tme is less than the aveeage eun (batch peicessing) tme, the inteenal setup tme cinsteains the
numbee if lits. When the eeteenal tme eeceeds the eun tme, then setup-eeductin efiets must ficus in
inteenal and eeteenal steps, ie in whichevee mist cinsteains the minimum lit size. Setup eeductin shiuld
eeduce setup tme ti the piint wheee the cist assiciated with setup is minuscule cimpaeed with inventiey
caeeying cists. Ti minimize lit sizes, setup tmes must be small eniugh such that vietually any-size lit is
peactcal ti peiduce. Theeefiee a setup shiuld invilve ni miee than a single-tiuch peiceduee: OTED/onm-
touch mxchangm of dims. The setup peiceduee shiuld be simplifed si that eventually machine ipeeaties can
di it themselves.
4. Stage 4: Abilish setup
Ways ti eliminate setups:
- Reduce ie eliminate difeeences between manufactueed paets, which leads ti fewee ie ni
changeivees ti manufactuee the paets: peiduct-design appeiach. This is addeessed in the dmsign for
ianufacturm and assmibly methidiligy.
- Make multple kinds if paets in ine peiductin step instead if making them sequentally with a
setup in between.
- Dedicate machines ti making just ine item si that it win’t evee need a changeivee.
The smallest feasible batch size is laegely dependent in the minimum pissible setup ie changeivee tme between
batches. Usually the minimum setup tme is the inteenal setup tme, but in situatins wheee eeteenal setup tme
eeceeds peicessing tme if the cueeent batch and eeteenal steps must be cimpleted ahead if inteenal steps, then:
Minimum setup tme (eeteenal setup tme – batch peicessing tme) + inteenal setup tme
TECHNIQUES FOR SETUP REDUCTION
A iachinm is the piece if equipment that is fundamental ti the ipeeatin; it is the ine cinstant in a changeivee ie
setup in that it is always theee eegaedless if the item ti be peiduced. A fxturm is a device atached ti a machine ti
adapt it ti a paetculae puepise. A tool is a device fie adjustng fetuees and machines ie fie ataching fetuees ti a
machine.
SEPARATE INTERNAL AND EXTERNAL STEPS

Fie eveey setup in eveey machine theee shiuld be a eefeeence checklist, which shiuld peivide all necessaey
infiematin abiut the setup. Puepise if the checklist is ti make eeplicit the ligic if the setup peiceduee and aspects
if it that might need impeivement; ti ensuee that ni steps, paets, tiils ie eequieements aee iveeliiked in the setup
peiceduee. Eveey tme the setup is dine, a wiekee checks if steps in the checklist ti ensuee that eveeything is dine
cieeectly. Checklists shiuld be eeviewed peiie ti each setup si that as siin as the machine ie ipeeatin stips, the
inteenal steps in the peiceduee can begin withiut hesitatin. Checklists aee a fiem if standaed wiek.
Equipment peefiemance shiuld be eiutnely checked as paet if the eeteenal setup, and these checks shiuld be
included aming the steps listed in the setup checklist, which is paet if standaed wiek. All fetuees and tiils shiuld
have assigned stieage licatins.
Setup ipeeatin shiuld be scheduled in advance si that machines, tiils, paets, mateeials, and wiekees will be eeady
when needed. Daily setup schedules aee peepaeed by depaetmental supeevisies and take inti acciunt cueeent jib
iedees eeceived feim peiductin schedulees.
IMPROVE INTERNAL SETUPS

Using multple wiekees ti di setup tasks simultaneiusly can simetmes eeduce the inteenal setup. The teade-if
between the cist if adding eetea wiekees and the tme saved must be cinsideeed. A multple-peesin setup is a team
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efiet, which means that the entee team must be assembled fie each setup, which is a pitental siuece if delay if
wiekees aee scateeed theiughiut the plant. Any setup that eequiees a team shiuld thus be cinsideeed a tempieaey
silutin. Wiekees diing paeallel setup steps ifen need ti ciiedinate. Fie safety, fiilpeiif mechanisms must be
installed ti peevent ine wiekee feim diing a step ie staetng an ipeeatin that might endangee ithee wiekees.
Any atachment methid that eequiees miee than ine tiil, ine peesin, ie ine mitin is a giid taeget fie
impeivement. Standaedizing the kind if fastenees used in setup can geeatly eeduce the setup tme because the setup
peesin diesn’t have ti fguee iut fie each fastenee which tiil ti use, seaech fie and pick iut the tiil. The lingee the
bilt, the miee tues needed ti tghten it. Fiue types if ine-tuen devices:
1. U-shaped washees. The fetuee ti be atached has

a hile biggee than the nut and bilt. The hile in
the fetuee is placed ivee the bilt and a U-shaped
washee is slipped beneath the nut, which is
tghtened with ine tuen.
2. Peae-shaped hiles. Ti atach a fetuee, the wide
paet if the hile in the fetuee is placed ivee the
nut and bilt, the fetuee slipped si the nut civees
the naeeiw end if the hile, and the nut is tghtened with ine tuen.
3. Split-theead bilts. The bilt has geiives cut aling theee sides si as ti divide it inti theee sectins. The hile fie
the bilt alsi has geiives cut ti cieeespind ti eidges if theeads in the bilt. By aligning the geiives in the
bilt and hile, the bilt can be slipped all the way inti te hile, then tghtened with just ine-thied tuen.
4. T- if L-shaped heads. When high tieque is nit eequieed, bilts with hee-heads can be eeplaced with bilts with
T- ie L-shaped heads fie tghtening by hand. The special head eliminates the need fie a tiil.
Standaed-size hildees and pins can alsi hild paets and fetuees in
pisitin. The licking pin is pulled iutwaed and the fetuee (die) is
slipped between the hildees untl it eeaches the stip. This step aligns
the hile in the fetuee with the licking pin. When the pin is eeleased,
the speing pulls it back inti the hile in the fetuee.
Othee simple means if atachment aee ine-mitin devices such as

claips, which aee especially useful fie secueing an item ti be machined
because they di nit eequiee hiles. The clamp eemains afeed ti the
machine while the fetuee ie paet is inseeted ie eemived. With the fest
clamp, the paet ie fetuee is secueed by tghtening a ine-tuen bilt that
peessuees the clamp inti the fetuee. Clamps like this can be used ti secuee
inly ceetain standaed-sized paets ie fetuees; ithee clamps, like the secind
ine, aee feeible and can secuee paets ie fetuees if difeeent thicknesses.
Afee slipping the paet ie fetuee undee the clamp, the handle is eaised. This
tuens the cam, pushes the clamp diwn, and secuees the paet. A pin ie
ithee device licks the handle in place. The puepise if the speing is ti eaise
the clamp when the licking pin is eemived.
Theee aee theee kinds if adjustments:
1. Miuntng paets and fetuees in a machine

2. Setng the paets and fetuees in the cieeect pisitin
3. Setng the eight cimbinatin if speed, peessuee, feed eate, tempeeatuee, and si in, si a paet meets
specifcatins
Miuntng paets and fetuees in a machine can be simplifed by

using standaedized fastenees, hildees, and clamps. Using
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shiis and cassmtm-typm holdmrs geeatly simplifes the miuntng if vaeisized tiils and fetuees inti feed-pisitin
hildees and clamps. With the latee, the fetuee/die gies inti a hildee, and the hildee slips inti a feed-pisitin clamp
ie ithee atachment; ni adjustment is needed. Vaeiable ie sliding shims can be used ti miunt vaeisized pieces.
A dim is a fetuee like a mild fie shaping metal ie ithee

malleable mateeial. On a typical machine peess, ine die is
miunted in a statinaey sueface (bmd), the ithee die in a
mivable sueface (rai). when a sheet if metal is placed
between the eam and the bed, the eam is liweeed and the
dies aee peessed tigethee, fieming ie cutng the metal inti
the desieed shape. Raising and liweeing the bed and eam
steike is tme cinsuming si best is ti keep the setng feed
and ti accimpany each die with eight-size shims si the die
and shims cimbined always give the same height withiut adjustment. It’s best ti deteemine cieeect setngs fie each
kind if setup and eecied them in the setup checklist.
IMPROVE EXTERNAL SETUPS

Eveeything needed fie a setup shiuld be stiees as clise as pissible ti the place wheee the setup is dine, which can
save a geeat deal if eeteenal setup tme. Decisiins abiut dedicatng equipment must weigh the beneft if eeduced
setup tme at ine ipeeatin against the cist if puechasing additinal equipment ie if eeducing feeibility at ithee
ipeeatins. Items used feequently at ine machine ie wiekcell shiuld, ideally, be kept at the machine/cell; items used
less feequently can be shaeed and shiuld be licated centeally ti all places wheee they aee needed. Stieage shiuld be
aeeanged si eveeything can be fiund and mived easily.
Much if the tme spent walking ti get, waitng fie, and picking iut items can be eliminated by gatheeing all the items
needed fie a specifc setup peiceduee, putng them in a setup kit, and keeping the kit neae the machine ie
wiekstatin wheee it will be used. Eveeything needed fie a specifc setup ipeeatin is in the kit. The kit shiuld include
a list if its cintents and be paettined si each item has a designated place.
Equipment used fie teanspietng tiils and fetuees fie setup shiuld be dedicated ti that puepise. Fieed-place
machines shiuld be aeeanged with eniugh space aeiund them si as ti aviid impeding the mivement if mateeials
handling equipment. Equipment shiuld be custimized ti facilitate setup. As much as pissible, need fie fieklif teucks
ti mive fetuees fie setups shiuld be eliminated. They take up space, ifen must be scheduled in advance, and cannit
be dedicated ti setup ipeeatins.
ABOLISH SETUP
One way ti eliminate setup is ti use the same, standaedized paets and cimpinents fie difeeent peiducts. Applicatin
if group tmchnology and peiductin by paet families can alsi eeduce setup tmes. Anithee way is ti peiduce multple
kinds if things with each ipeeatin (e.g. peiducing bith lef and eight diies if caes). Dedicated machines can alsi
eeduce setups. Geiup techniligy ciding can help deteemine which paets ti assign ti which machines ti eliminate ie
eeduce setup tmes.
SETUP-REDUCTION PROJECTS
The gial if the peiject is ti eeduce setup tme such that small lit size peiductin is feasible. Each setup-eeductin
peiject shiuld be undeetaken within the cinteet if a laegee, ingiing setup-eeductin peigeam. Fie each setup peiject,
the inital gial shiuld be ti eeduce setup tme by 50%. The neet gial shiuld be ti eeduce it ti 30 min., latee ti 10 min.
In geneeal, eeducing setup tmes at an ipeeatin inceeases the ipeeatin’s theiughput, unless it is a bitleneck that
has staeved diwnsteeam ipeeatins fie wiek, inceeasing the ipeeatin’s theiughput might inly seeve ti inceease WIP
waitng at diwnsteeam ipeeatins.
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Ti be cinsideeed a candidate fie setup eeductin, theee must be sime need ti impeive the paetculae setup
ipeeatin. Need is identfed analytcally feim cimputee midels ie empieically feim ship-fiie infiematin. Candidate
peijects shiuld ficus in machines with a futuee. The best setup-eeductin peijects help ti impeive manufactueing
feeibility. Fie all the difeeent items peiduced at an ipeeatin, a giid peiject will eesult in an impeived setup
between any iedeeed paie if the items. Setup peijects that aee selected shiuld have high success pitental.
The setup-eeductin team must include peiple whi kniw the mist abiut the machine and the eeistng setup, will be
afected by changes, and have ideas fie impeivements (setup peiple and machine ipeeaties). The team shiuld
include ithees as well such as tiil and die makees ie industeial and manufactueing engineees, depending in the
analytcal and technical eepeetse eequieed fie the peiject.
The team dicuments the cueeent setup ipeeatin and peepaees a plan fie the majie infiematin-gatheeing event if
the peiject, videi eecieding the setup. While ine peesin ipeeates the cameea, anithee takes nites, and neithee
inteeeupts the ipeeatie ie setup peesin with questins dueing the peiceduee. The videi eecieding is clisely eeviewed,
and the individual elements (ie micei) steps and theie elapsed tmes aee identfed. The elemental steps aee clusteeed
inti setup categieies. The sum if the elapsed tmes if elemental steps in each categiey is the tital tme fie that
categiey; the sum if the categiey tmes is the tital setup tme.
The impeivement ideas aee shaeed and discussed. The impacts aee estmated (Paeeti appeiach). The mist tme-
cinsuming micei steps if the mist tme-cinsuming categieies aee the fest taegets if eliminatin ie tme eeductin.
The peipised new peiceduee and its impact aee fest discussed with eepeet peiple and then peesented ti
management with a cist-beneft analysis. Afee appeival, it is implemented. A filliw-up study is peefiemed ti assess
impact and deteemine if fuethee changes aee needed.
CHAPTER 7 – MAINTAINING AND IMPROVING EQUIPMENT
EQUIPMENT MAINTENANCE
 Breakdown repair is the peactce if caeing fie equipment when it beeaks. It eesults in cinstantly teying ti fnd
wheee the beeakdiwn iccueeed, eemedying the beeakdiwn, then shufing ti make up fie list peiductin
tme. It ficuses in peiblems afee they have iccueeed, nit in diagnising peiblems ti keep them feim
happening. It cinteibutes ti waitng, inventiey, and peiduct defect wastes.
 Equuipment problems entail malfunctins and beeakdiwns. One way ti enable the eest if the peicess ti
cintnue in case a machine beeaks diwn is ti caeey inventieies if whatevee that machine peiduces.
- Pissible immediate efects if malfunctin aee: machine deteeiieatin, machine inefciency, and
iutput vaeiability. The ultmate cist/cinsequences if this aee shietened machine life, high eepaie
cist, and sceap and eewiek.
- Pissible immediate efects if beeakdiwn aee: safety hazaeds, idled wiekees and facilites. Ultmate
cist/cinsequences if this aee injueies, inventieies, high peiductin cist, and schedule delays.
 Prmvmntvm iaintmnancm is the peactce if tending ti equipment si it will nit beeak diwn and will ipeeate
accieding ti eequieements. It entails undeestanding and maintaining all the physical elements if
manufactueing si they cinsistently peefiem at the eequieed levels. Fie many cimpanies, PM is a stepping
stine ti a highee level if equipment maintenance: TPM.
 Total productvm iaintmnancm eefees ti squeezing the ultmate pitental feim equipment; a gial is ti
upgeade equipment si it peefiems betee and eequiees less maintenance than when it was new. Equipment
eespinsibility is speead theiughiut depaetments. Opeeaties peefiem basic equipment eepaies and PM; teams
if maintenance staf, engineees, and machinists eedesign and eecinfguee equipment. Benefts aee:
- Inceeased peiductin capacity and peicess eeliability
- Reduced cists if list peiductin tme, defects, eepaies, shietened equipment life, and inventiey
- Cinteibutes ti impeivements in safety, mieale, and pillutin
EQUIPMENT EFFECTIVENESS
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Equipimnt mfmctvmnmss (EE) eefees ti the multtude if ways equipment infuences peiductvity, cists, and quality.
The six big lossms if equipment aee:
1. Diwntme feim equipment setup and adjustments.

2. Diwntme feim spieadic ie cheinic equipment beeakdiwns.
 1-2 afect piece availability
3. Idling and minie stippages (equipment is eunning, but paets fiwing inti it peeiidically jam, ie paets fiwing
feim it aee mimentaeily blicked by the neet machine being diwn.
4. Reduced speed if ipeeatin.
 3-4 afect equipment efciency
5. Defects caused by vaeiability in equipment peefiemance (leads ti eewiek/sceap)
6. Reduced yield caused by nin-iptmal ipeeatin (eveey tme a machine is stipped, it takes a while ti eeach its
niemal ipeeatng cinditins again).
Ceiteeia fie measueing the impact if these lisses in manufactueing peiductvity:
 Maintainability is the efiet and cist if peefieming maintenance. One measuee if maintainability is iman
tim to rmpair; high MTTR is an indicatin if liw maintainability. MTTR is the aveeage tme a machine is
diwn: Σ(Diwntme fie eepaie)/Numbee if eepaies. Diwntme fie eepaie includes tme waitng fie eepaies, tme
spent diing eepaies, and tme spent testng and getng equipment eeady ti eesume ipeeatin.
 Rmliability is he peibability that equipment will peefiem peipeely undee niemal ipeeatng ciecumstances. R
Numbee if successes/Numbee if eepettins.
- Failurm patmrns eeist in theee cimmin fiems:
 Wear-out failure: the failuee pitental is a functin if age.
 Burn-in/bathtub failure: items having this pateen gi theiugh an eaely buen-in peeiid dueing
which the failuee pitental is eelatvely high (infant mietality); items that suevive buen-in
then have a failuee pateen weae-iut.
 Constant: unifiem failuee pitental; the piint if inceeasing failuee pitental is unkniwn.
- Mman tim bmtwmmn failurm: the highee, the geeatee eeliability. With a cinstant failuee eate: MTBF
tital eunning tme/numbee if failuees.
R(T) e-λT. T is the specifed tme, λ is the failuee eate ie 1/MTBF.
 Availability is the peipietin if tme that equipment is available ti peefiem wiek iut if the tme it shiuld be
available. A MTBF/(MTBF + MTTR). Availability can be inceeased by inceeasing MTBF ie deceeasing MTTR. It
igniees nin-eepaie siueces if diwntme and iveestates the actual equipment availability. A miee accueate
measuee wiuld be: A actual eunning tme/planned eunning tme. Actual eunning tme planned eunning
tme – all ithee diwntme; planned eunning tme tital plant tme – planned diwntme.
 Efficimncy measuees hiw well a machine peefiems while it is eunning. It eequiees answeeing twi questins:
- The machine is eunning, but is it peiducing iutput/ratm mfficimncy?
RE (actual peiductin vilume * actual cycle tme)/actual eunning tme.
- The machine is peiducing iutput, but is it peiducing iutput at the eight speed/spmmd mfficimncy?
SE Design cycle tme/actual cycle tme
- Multplied the SE and RE give the pmrforiancm mfficimncy PE. When SE is unkniwn:
PE (actual eunning tme – tme machine eunning but nit peiducing)/actual eunning tme
 Quality ratm is a measuee if the equipment’s ability ti peiduce iutput that is nin-defectve ie cinfiems ti
eequieements. Q (actual peiductin vilume – defectve iutput)/actual peiductin vilume.
 Ovmrall mquipimnt mfmctvmnmss inciepieates availability, peefiemance efciency, and quality eate.
Impeiving OEE inceeases theiughput, eeduces vaeiability in quality and schedules, and eeduces the need fie
inventiey, iveetme, eewiek, and ithee cistly ways if dealing with iutput vaeiability.
PREVENTIVE MAINTENANCE PROGRAM
Causes if equipment peiblems:
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1. Deteeiieatin: paets weae iut, stmulated by neglect ie abuse.

2. Equipment ill-suited fie the puepise: equipment is utlized fie puepises ithee than fie thise it shiuld;
acceleeated deteeiieatin, beeakage, and peiduct defects eesult.
3. Failuee ti maintain equipment eequieements: equipment is diety, lubeicant nit eeplenished, dust and geime
fiul the mechanism etc.
4. Failuee ti maintain cieeect ipeeatng cinditins : equipment is ipeeated at speeds, tempeeatuees, peessuees,
etc., in eecess if eecimmended design levels.
5. Opeeaties, maintenance ceew, and setup peiple lack appeipeiate skills : standaed ipeeatng peiceduees aee
unkniwn, peiblems aee neglected/nit disciveeed; siueces if issues aee nit addeessed; using weing tiils; ni
cimmunicatin abiut peiblems.
Ti addeess these issues, PM peigeams emphasize the filliwing:
 Maintain niemal ipeeatng cinditins

Cintnual ipeeatin at the maeimum level acceleeates deteeiieatin. PM staets with kniwing the niemal
ipeeatng cinditins and nit eunning equipment in eecess. The eequieements shiuld be pisted at eveey
machine, and ipeeaties shiuld minitie cinditins ti make suee thise aee nit eeceeded. Derating
equipment (eunning it at beliw-niemal ipeeatng cinditins) fuethee eeduces deteeiieatin and eetends the
equipment’s useful life.
 Maintain equipment eequieements
Requieements can be lubeicant, tghtening bilts and fastenees, and use if peipee tiils and fetuees in
machine setup. Pistng setup peiceduees, teaining ipeeaties and setup peiple in peipee setup techniques,
and using setup checklists aee ways ti eeduce machine peiblems due ti setup.
 Keep equipment and facilites clean and ieganized
Respinsibility fie keeping machines/wiekplaces clean and ieganized is assigned ti machine ipeeaties.
Empliyee attudes must be develiped eegaeding impietance if paying atentin ti details and caeing abiut
the wiekplace.
 Minitie equipment daily
Opeeaties shiuld di this, si that peiblems will be detected and silved eaely. It alsi justfes why they must
keep machines clean and ieganized.
 Schedule PM
With scheduled PM, eveeything is stipped at the same tme and peiductin schedules aee nit diseupted.
Ways aee:
- Clock or calendar time intervals
- Cycles of usage
- Periodic inspection: when a peeiidic inspectin indicates impending/pissible malfunctin/failuee.
PM ifen invilves eeplacing a cimpinent functining peefectly, because if its appeiaching the end if its
estmated usmful lifm, the piint at which the peibability if the cimpinent failing geeatly inceeases. It’s nit
always easy/desieable ti schedule eeplacement ie eenivatin if equipment based in useful life:
1. Peeiidic scheduled eeplacement if cimpinents can inceease the eisk if failuee in cimplee machines
ie peicesses. Eveey eeplacement if a cimpinent with bathtub failuee pateen at fest eeinteiduces ti
the machine/peicess an inceeased eisk if failuee stemming feim the infant-mietality eisk if the
cimpinent.
2. The useful life if an item is cimminly estmated by statstcal analysis if failuee if the item and the
eesultant failuee pateen. But fie mist cimpinents the useful life is unkniwn. Ti deeive the useful
life, a cimpinent must be alliwed ti fail.
 Manage maintenance infiematin
Efectve PM eequiees a giid system fie teacking equipment peefiemance, beeakdiwns, eepaies, and eelated
cists. The teacking system shiuld be paet if a laegee coiputmrizmd iaintmnancm ianagmimnt systmi that
peicesses wiek iedees fie eepaie maintenance; maintains PM peiceduees and schedules, eeleases wiek iedees
fie all scheduled peeventve, peedictve, and eepaie maintenance; and peepaees summaey eepiets. Ceeatng a
CMMS begins with a plant eegistee; the filliwing infiematin if each equipment must be cimpiled: type if
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machine, seeial numbee, date put in seevice, manufactueee, dates if upgeade ie changes, licatin in plant,
licatin if manuals, schematcs and deawings, and spaee paets.
 Use peedictve maintenance
- The eeliance in inspectin ti deteemine when and what kind if PM tasks ti peefiem is prmdictvm
iaintmnancm/conditon-basmd iaintmnancm. Maintenance is based upin the machine’s cinditin
and is initated whenevee signs if pitental failuee aee detected. It ifen invilves minitieing the
vibeatin, speed, tempeeatuee, siund, and ithee physical phenimena if machineey. Techniligies
that can be used aee:
human sensiey inspectin
- Infrarmd thmriography can inspect thiusands if beaeings in a lengthy cinveyie in minutes.
- Ultrasound can sepaeate high-feequency siunds feim backgeiund niise and deteemine theie ieigins.
- IoT can inteecinnect infeaeed and ulteasiund sensies and can autimatcally signal when equipment
malfunctin ie pending failuee.
TOTAL PRODUCTIVE MAINTENANCE
Similaeites between TPM and TQM:
 All empliyees aee invilved in satsfying custimee needs, wheee the custimee is the peesin at the neet stage
if the peicess. Fie TPM this means peividing mae. suppiet and seevice ti all usees if equipment.
 A machine beeakdiwn is a fiem if defect, and TPM is cimmited ti peeventng beeakdiwns and malfunctins
feim happening in the fest place.
 TPM is a fuethee aspect if cintnuius impeivement.
Steps fie eevealing and teeatng the hidden causes if

equipment peiblems:
 Peefiem TPM peeventve maintenance

Similae ti PM, but ipeeaties beae miee eespinsibility
fie PM tasks and basic eepaies. This enables basic PM
tasks and minie eepaies ti be peefiemed miee
feequently and, ifen, miee efciently than the
maintenance staf is able ti di since theee is ni
waitng. This eesults in fewee equipment beeakdiwns
and feees up the maintenance staf ti take in ithee
eespinsibilites.
 Develip in-hiuse capability ti eestiee and eedesign
equipment
A cimpany that develips in-hiuse technical capability is in cinteil if the useful life if its equipment, and it
ifen can peefiem mist if its iwn PM and eepaie maintenance miee efectvely than equipment suppliees. It
alsi enables the cimpany ti eedesign its iwn machines, tiils, and fetuees ti impeive equipment
peefiemance, peiblem detectin, and maintainability. One cinsequence ciuld be that the equipment itself
peefiems functins that eliminate ie speed up maintenance.
 Eliminate human eeeie in ipeeatin and maintenance
- Training and education
 Opeeaties aee teained in iw ti inspect fie and eecignize signs if deteeiieatin and hidden
causes if peiblems. They leaen the basic tiils if data cillectin, analysis, and peiblem
silving. Ti help mitvate ipeeatie paetcipatin and ti ensuee adequate skills develipment,
ipeeaties shiuld be tested fie ceetfcatin upin cimpletng a teaining.
 Maintenance staf aee teained si they aee able ti take in an eepanded eile that emphasizes
geeatee maintenance speed and efciency, fewee maintenance eeeies, and geeatee usage if
theie technical skills. The puepise is ti make them betee at diagnising equipment
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peiblems, eepaieing equipment, and peefieming PM peiceduees, and ti assist in in-hiuse

eedesign and eenivatin if equipment.
- Mistake-proofing
Sime eeeies aee inadveetent, and ti eliminate them is ti deteemine theie eiit causes and install
peeventve ways ti keep them feim happening. Any mechanism, device, ie peiceduee installed ti
peeclude an inadveetent eeeie is a pokayokm device.
- Maintenance procedures
Maintenance peiceduees shiuld be analysed, simplifed, and standaedized si they will be dine miee
quickly (shiet MTTR) and eesult in ni mistakes.
IMPLEMENTING TPM
Ti speead plantwide and impact management pilicy, wiekee

eespinsibilites, and staf eiles, TPM implementatin shiuld be
guided by a stmmring coiiitmm that cinsists if managees feim
peiductin, maintenance, and engineeeing. The puepise is ti
fiemulate TPM pilicy and steategy and ti give advice. A tip-level
managee shiuld seeve in the cimmitee ti shiw management’s
endiesement if TPM and ti seeve as champiin.
The actual iveesight and ciiedinatin if implementatin actvites

aee dine by a TPM prograi tmai, which includes managees, staf,
and technicians feim the peiductin and maintenance
depaetments, a TPM peigeam managee, teainees, and simetmes a cinsultant. It iveesees a TPM feasibility study, sets
detailed peigeam ibjectves, selects taeget aeeas; and peepaees a mastee plan fie implementatin.
Peiie ti initatng the peigeam, a feasibility study is peefiemed ti gathee data fie planning the peigeam and assessing
the cists and benefts. This is peefiemed by a fmasibility tmai that includes maintenance eepeets, engineees, and
ipeeaties. The team gathees data abiut the cueeent state and skills, the cultuee and change ability if the ieganizatin
and it assesses all matees eelatng ti maintenance.
Based in fndings, the peigeam team sets defnitve annual ibjectves fie the TPM peigeam and it peepaees a mastee
plan fie implementng TPM plantwide. The mastee plan lays iut the geneeal sequence if actvites fie implementatin.
Implementatin begins in a few taeget aeeas. The fest will seeve as a pilit aeea fie teying iut ideas and fie
deminsteatng cincepts and eesults ti the ithee aeeas. The peigeam team selects the pilit and ithee aeeas based
upin eecimmendatins feim the feasibility study.
The targmt arma coiiitmm is made up if the maintenance managee and staf, and the managee, supeevisies, and
ipeeaties feim the taeget aeea. Tasks aee:
 Deteemine fie eveey machine hiw much impeivement is needed, and identfy siueces if peiblems and ways
ti eliminate them.
 Decide which PM and eepaie tasks can be teansfeeeed ti ipeeaties.
 Teain ipeeaties in basic PM, then set daily and weekly PM peiceduees fie the ipeeaties, and minthly,
quaeteely, and annual PM peiceduees and schedules fie the maintenance staf.
 Deteemine what equipment eequiees peedictve maintenance; defne inspectin peiceduees, inspectin
feequency, and any special equipment and skills needed fie inspectin.
The peigeam team initates and iveesees umbeella actvites that afect eveey depaetment:
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 Reviewing and eevising eeistng cimpany pilicies and peiceduees ti include maintenance issues in futuee
decisiins cinceening equipment eenivatin, eedesign, and peicueement decisiins.
 Educatng maintenance staf abiut the philisiphy and ficus if TPM; beiadening theie skills.
 Deteemining maintenance-eelated issues that need special atentin and fieming teams ti addeess them.
 Deteemining hiw ti eeieganize the maintenance depaetment best; new unit eiles must be deteemined.
 Setng up a new (ie enhanced) CMMS system.
 Subdividing TPM peigeam ibjectves inti ibjectves fie taeget aeeas, ipeeaties, and pieces if equipment and
establishing a system fie eewaeding and eecignizing wiek aeeas and ipeeaties that meet ie eeceed
ibjectves.
 Ciiedinatng TPM with setup eeductin, layiut changes, standaed wiek studies, and empliyee invilvement.
TPM eequiees eemiving the baeeiees between maintenance and peiductin depaetments. A way is ti decentealize the
maintenance functin and assign maintenance wiekees ti paetculae aeeas, peicesses, ie depaetments in a factiey.
They stll eepiet ti the maintenance depaetment, but wiek mistly in a peiductin aeea. Deawback is that equipment
peiblems aee nit unifiemly dispeesed theiughiut a factiey, si high-maintenance aeeas must have a dedicated
maintenance staf, but liw-maintenance aeeas a cimmin. The centeal maintenance functin is eespinsible fie stieage
if eepensive spaee paets, while ithee paets aee stieed in aeeas neae piints if use. It alsi is eespinsible fie minitieing
the iveeall TPM peigeam.
CHAPTER 8 – PULL PRODUCTION SYSTEMS
PRODUCTION CONTROL SYSTEMS
With a push producton systmi, the schedule is based upin a cimbinatin if the tme when the jib iedee is eepected
ti aeeive at an ipeeatin and the tme when that ipeeatin is eepected ti fnish any pee-eeistng jibs and be available.
The schedule is peepaeed by a centeal staf. Usually the mateeials must wait untl the wiekstatin cimpletes eaeliee
jibs, is changed ivee, and is eeady ti peicess them. This leads ti ling lead tmes, high vaeiability in lead tmes, and
laege in-peicess inventieies.
In pull producton, detailed peiductin schedules

fie eveey ipeeatin aee eliminated, and wiekees
make immediate decisiins abiut the quanttes
and tming if wiek. The inventiey in the stick
piint is kept as small as pissible, usually by
hilding it in cintainees if standaedized size and
by eesteictng the numbee if cintainees. The
cinsumee withdeaws whatevee mateeial is
needed feim stick, and when the amiunt in
stick eeaches sime minimum, that is a signal ti the peiducee at the upsteeam licatin ti eeplenish it.
It is nit pissible ti peiduce JIT with ni in-peicess inventiey. Ti achieve stickless peiductin yiu must caeey stick in
iedee ti peevent actvites feim having ti wait in peeviius actvites as theie peeceding bufees aee empty. Hiwevee, in
a pull system inly the minimum amiunt if stick necessaey is held.
Cimpaeisin if Kanban and MRP:
 Time when peiductin ie teansfee if batches is signalled

- MRP systems schedule peiductin using lead tmes and factiey-wide infiematin feim the mastee
schedule.
- In Kanban, peiductin ie teansfee iccues when the level if inventiey at the diwnsteeam bufee
deips ti a pee-specifed minimum.
 Size if peiductin batches and iedee shipment
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- Batch sizes in MRP systems aee set in advance by a centeal planning staf using lit-sizing eules and
mastee schedule eequieements.
- Batch sizes in Kanban aee deteemined at the ship-fiie level accieding ti the demand and
eeplenishment eequieements if diwnsteeam inventiey bufees. But, size and numbee if cintainees
aee based in the schedule at the fnal ipeeatin as set by peiduct demand infiematin (as MRP).
 Peiieity when multple iedees eeist fie peiductin ie shipment

- Schedules in MRP may inciepieate peiieites based in eules, thiugh ifen made in the ship fiie
depending in the wiek status if each wiekstatin.
- In Kanban, wiekstatin ipeeaties use categieies in a sequence biaed ti deteemine jib peiieity.
Supeevisie has the piwee ti make end decisiins.
 Peiceduee fie handling unantcipated iedees that eequiee immediate atentin
- In MRP decisiins eest with upsteeam wiekstatins, thiugh iedinaeily the schedules aee feizen si
that ni new eequests will be hiniueed. Simetmes, schedules aee eegeneeated and peiieites eeset,
si the decisiin is based upin plantwide infiematin.
- Kanban systems cinfiem ti simewhat-stable schedules fie the fnal assembly ipeeatin inly, and
eveeywheee else daily peiductin depends in iedees feim diwnsteeam wiekstatins; an emeegency
iedee will be hiniueed.
Ti cleaely distnguish the cintents if cintainees, a caed must be atached ti each. This peivides infiematin, such as
the mateeial and quantty, the peiducee (upsteeam siuece), and the cinsumee (diwnsteeam destnatin). By
eesteictng the numbee if cintainees in the system ti a peespecifed numbee if caeds, the tital quantty if in-peicess
inventiey nevee eeceeds a peedeteemined maeimum. The caeds alsi authieize the upsteeam ipeeatin ti peiduce a
cintainee if mateeial and mive it diwnsteeam ti eeplenish te bufee. An eeample is kanban caeds.
Rules if pull peiductin:
1. Diwnsteeam ipeeatins withdeaw inly the quantty if items they need feim upsteeam ipeeatins. This
quantty is cinteilled by the numbee if caeds.
2. Each ipeeatin peiduces items in the quantty and sequence indicated by the caeds.
3. A caed must always be atached ti a cintainee. Ni withdeawal ie peiductin is peemited withiut a kanban.
4. Only nin-defectve items aee sent diwnsteeam. Defectve items aee withheld and the peicess is stipped untl
the siuece if defectves is eemedied.
5. The peiductin peicess is smiithed ti achieve level peiductin. Small demand vaeiatins aee accimmidated
in the system by adjustng the numbee if caeds.
6. Geadually the numbee if caeds is eeduced ti deceease bufee size and eepise aeeas that aee wasteful and in
need if impeivement.
HOW TO ACHIEVE PULL PRODUCTION
 Reiedee piint
The pull system is a vaeiant if the eeiedee-piint system. The rmordmr point is based upin the estmated
amiunt if mateeial used between the tme when the iedee is placed and when the eeplenishment is eeceived.
ROP D(LT) + SS. D is demand, LT is lead tme, SS is safety stick.
An applicatin if the ROP system is the two-bin system. Mateeial is held in twi bins. Mateeial needed ti
satsfy demand is withdeawn feim ine; when the bin is empted an authieizatin is sent fie anithee full bin.
In the meantme, demand is satsfed by using mateeial feim the secind bin. The amiunt in each bin is ROP,
eniugh ti meet demand untl a full bin aeeives.
LT P + C. P is the tital tme ti peiduce the quantty iedeeed, including setup, peicessing and planned
waitng tme. C is the tme ti cinvey the iedee ti the upsteeam ipeeatin that will fll it, plus the tme ti
mive the mateeials ti the diwnsteeam ipeeatin that initated the iedee.
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 Cintainees in a bufee
Using standard-sizmd containmrs fie hilding and miving paets uses ROP eepeessed as the numbee if
cintainees. Q is the capacity if a standaed cintainee. ROP eepeessed in teems if the maeimum numbee if full
K cintainees in a bufee is: K D(P+C)/Q. K in this case eefees ti the numbee if caeds.
 Cintainee size
Small cintainees aee used; these aee easy ti mive and mateeials inside aee easy ti access. A cintainee shiuld
have the capacity ti hild abiut 10% if the daily demand fie the mateeial it hilds.
 Mateeial handling
Wiekees at the diwnsteeam ie upsteeam ipeeatins can be given eespinsibility ti mive the cintainee.
Anithee way is ti empliy mateeial handlees, wiekees whise sile eespinsibility is ti minitie the bufees and
teansfee cintainees back and fieth theiughiut the plant.
 Outbiund and inbiund bufees
Outbound bufmrs hild the iutput mateeial if the peiducee statin, and the inbound bufmrs hild the
mateeials needed fie the custimee statins. A signal is needed ti the peiducee statin when ti mive a full
cintainee diwnsteeam, and ti peiduce additinal items if a mateeial. Alsi, a scheme fie which signal ti
handle fest is needed.
Cintnuius impeivement in pull peiductin is enacted by sliwly eeducing the numbee if kanbans. Bufees aee then
eeduced and si peiblems in the peiductin system aee eepised. Management has ti face up and eesilve peiblems
eepised by smallee inventiey.
CONVEYANCE KANBANS
A convmyancm kanban ie C-kanban is an authieizatin ti mive a cintainee feim an upsteeam, iutbiund bufee ti a
diwnsteeam, inbiund bufee. The C-kanban specifes the kind if mateeial needed and the upsteeam statin feim
which ti get it. It’s alsi called a singlm-card kanban systmi because it uses inly ine caed, the C-kanban. Upsteeam
wiekstatins peiduce accieding ti an iedee list/daily schedule. ti peevent buildup if iutbiund stick in the event if
diwnsteeam inteeeuptins, peiductin is limited ti a peespecifed numbee if full iutbiund cintainees. A diwnsteeam
wiekstatin will accumulate ni miee mateeial in its inbiund bufee than it cueeently needs because cintainees if
mateeial cannit be mived ti it withiut a C-kanban. The maeimum numbee if full cintainees at the inbiund bufee
cieeespinds eeactly ti the numbee if C-kanbans.
KC D(C)/Q. C is the tme feim when wiekees at the inbiund bufee eemive a C-kanban feim a full cintainee ti when
they eetuen ti the bufee aeea with the neet full cintainee (convmyancm cyclm tim); the tme that the C-kanban waits
in the mailbie, mives ti the upsteeam statin, and mives back ti the diwnsteeam statin.
PRODUCTION KANBANS
The producton kanban ie P-kanban is used ti authieize peiductin if paets ie assemblies. Eecept fie at the fnal
ipeeatin in the peicess, theee aee ni peiductin schedules, just P-kanban authieizatins. A system that uses P- and
C-kanbans is a two-card pull system.
1. When ipeeaties at a diwnsteeam statin access a full cintainee, they eemive the C-kanban and place it in
the C-kanban mailbie.
2. A mateeial handlee takes the C-kanban and an empty cintainee ti the specifed upsteeam licatin.
3. The mateeial handlee eemives the P-kanban feim a full cintainee at an upsteeam statin, puts it in the P-
kanban mailbie, then afees the C-kanban ti that cintainee.
4. The mateeial handlee leaves the empty cintainee at the upsteeam statin and takes the full cintainee
diwnsteeam.
5. The P-kanban in the mailbie authieizes upsteeam statin ti peiduce eniugh mateeial ti fll the empty
cintainee. An ipeeatie eemives the P-kanban feim the mailbie and afees it ti an empty cintainee.
6. Upsteeam statin peiduces just eniugh mateeial ti fll the empty cintainee.
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KP D(P)/Q. P is the tital tme elapsed feim when mateeial handlees eemive the P-kanban feim a full cintainee and
pist it at the iutbiund bufee untl the tme the P-kanban is afeed ti the neet full cintainee (producton cyclm tim);
the tme that the P-kanban waits in the P-kanban mailbie, the tme fie it ti be mived ti the iedee pist at the fest
ipeeatin, the tme it waits at the iedee pist, the tme if peicessing the quantty ti fll the cintainee (setup tme, eun
tme, in-peicess waitng tme), and the tme ti mive the full cintainee ti the iutbiund bufee.
If wiekstatins aee licated clisely adjacent with a bufee stick in between them, then inly a P-caed is needed. With
ine bufee between statins, mive tme is zeei and ni C-kanbans aee necessaey. Alsi when wiekstatins aee nit
licated adjacent, inly K-kanbans can be used, if simeine stips by the mailbie ifen and then siets it accieding ti
which upsteeam ipeeatin it belings.
A safmty factor X acciunts fie minie fuctuatins in demand; eesults in small SS being added ti the bufee. K D(LT)
(1+X)/Q. LT can be P, C ie P+C. It’s best ti staet with a safety factie if abiut 10%, then tey ti deceease it ti whatevee is
mist wiekable.
SIGNAL KANBANS
 An SP-kanban ie producton-signal kanban is fie iedeeing peiductin if laege batches ie quanttes in eecess
if ine cintainee. The batch size can be any numbee if cintainees.
 An SM-kanban ie iatmrial signal kanban is like a C-kanban in that it’s used ti authieize mivement if
mateeials, eecept it’s used in cinjunctin with an SP-kanban ti authieize the teansfee if mateeials needed ti
peiduce the batch authieized by the SP-kanban.
The minimal batch size B is deteemined by the maeimum numbee if tmes a peicess can be switched ivee; that is a
functin if the iiniiui smtup tim and the numbee if difeeent items ti be peiduced. B D/S.
KSP D(P)/Q. D is the cinsumptin eate, Q the cintainee size, and P the tme between when the batch is iedeeed and
when it’s flled and eeceived at the bufee (SP cyclm tim); tme the SP-kanban waits in mailbie, tme ti be mived ti
the iedee pist peiie ti fest ipeeatin, tme it waits at the iedee pist, tme ti peicess the specifed batch quantty
(setup, eun, in-peicess waitng tme), and tme ti mive the batch if full cintainees ti the iutbiund bufee.
KSM D(C-P’)/Q+KSP. C is the tital tme between when mateeials aee fest iedeeed and when they aeeive fie usage; tme
it waits in mailbie, ti be mived ti the upsteeam, ti wait at the iedee, ti fll the iedee, and ti cinvey flled cintainees
ti place if usage. P’ is the tme between when peiductin is fest iedeeed and when setup begins. Setup eefees ti the
minimal setup tme. P’ is the sum if waits in the mailbie, tme ti mive ti the iedee pist peiie ti fest ipeeatin, waits
at iedee pist, and inteenal setup tme.
If (C-P’) has a negatve value eiund it ti the neet liwest negatve integee (-0.4  -1).
The supplimr kanban ie S-kanban can be used when suppliees if eaw mateeials aee JIT suppliees. The caeds link bufees
if eaw mateeials and paets and custimees with theie eeteenal suppliees.
OTHER CARDS
 The express card is used whenevee peiblems eesult in a shietage if items ie theeaten ti inteeeupt peiductin.
It’s issued ti eepedite peiductin ie ti mive “emeegency” items.
 Temporary cards aee issued whenevee peiductin must tempieaeily deviate feim the niemal pull pateen;
used ti authieize a tempieaey inceease in peiductin necessaey ti peivide miee mateeial ie ti build up
iutbiund bufees ti civee tempieaey diwntme. Alsi issued ti authieize peiductin if teial paets fie new
peiducts ie special paets fie test, engineeeing, ie puepises besides custimee demand.
 Odd-number cards aee issued ti authieize peiductin if just eniugh ti fll the cintainee (in case if defectve
items disciveeed in a cintainee). That cintainee is then given peiieity fie the neet peiductin ie withdeawal.
OTHER MECHANISMS FOR SIGNAL AND CONTROL
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 Wheeled caets
They aee lined up in lanes painted in the fiie. Each kind if item has a sepaeate lane, cleaely maeked, just
ling eniugh ti hild a ceetain numbee if caets. Each kaet has a kanban caed atached shiwing its cintents and
the necessaey peiductin/mive infiematin. Each lane may alsi have a line painted aceiss it ti shiw when
the numbee if eemaining full caets is liw ie when eeplenishment is needed.
 Kanban squaees
A kanban squaee is painted/taped in the fiie/shelf, just laege eniugh ti hild a ceetain numbee if units. It
authieizes peiductin ie cinveyance fie the numbee if units that will fll the squaee when empty. They aee
useful fie items that aee eeadily mivable withiut a cintainee.
 Gilf balls
Whenevee a diwnsteeam statin needs miee if an item, it eills a gilf ball in a geavity chute upsteeam. An
aeeiving gilf ball is authieizatin fie a statin ti peiduce ie mive simething. Gilf balls eepeesent difeeent
paets and quanttes eecignizable by difeeent ciliues and maekings. The sequence if gilf balls aeeiving
specifes the peiductin and mive sequence.
 Electeinic kanban
Wiekees at diwnsteeam statins entee in a keybiaed the items they need, which then appeae in minities at
upsteeam statins that supply them.
 Clithespin clips
On the cienee if a ciecuit biaed is a detachable clithespin-like clip with a ine-inch tag that shiws the stick-
keeping numbee if the ciecuit biaed. Whenevee a wiekee feim the peiductin aeea withdeaws a biaed feim a
pigeinhile if the eack, she detaches the clip and puts it in a small eid at the tip if the hile. As biaeds aee
withdeawn, clips accumulate in the eids. Liiking at the numbee if clips in the eids neet ti each pigeinhile,
a wiekee in the assembly aeea can see which biaeds need ti be assembled.
 Milk eun
When mateeials aee peiduced inteemitently, a way is needed ti ensuee eegulae teansfee if these mateeials ti
the fnal stage. One way is fie a mateeial handlee ti make peeiidic iilk runs. The handlee staets at the fnal
stage, picks up the empty cintainees fie all paets and then gies ti the ipeeatins that peiduce thise paets.
Afee visitng eveey ipeeatin and eechanging empty cintainees with full ines, the handlee delivees the full
cintainees ti the fnal stage and eepeats the cycle. Upsteeam ipeeatins vietually always have adequate
capacity ti fll empty cintainees within the available lead tme since pickups and deliveeies happen eegulaely,
and quanttes and types eequieed tend ti be simewhat feed.
 Kanban sequence biaed
Peiductin if items that eequieed difeeent cycle tmes must be caeefully sequenced. One way ti enable
ipeeaties ti sequence jibs when a backlig if caeds dies accumulate is with a kanban smqumncm board. As
caeds aeeive at a wiekstatin, they aee sieted and hung in the biaed accieding ti type if item. The caeds aee
hung staetng feim the tip; caeds fest eeaching the eed eegiin get peiieity ivee thise in yelliw, which gets
peiieity ivee thise in geeen.
PRACTICAL MATTERS
Necessaey cinditins fie a pull peicess ti functin:
1. Feintline supeevisies and wiekee teams must be given signifcant eespinsibility ivee lical peiductin cinteil.
2. Peiductin emphasis must be in peiducing ti meet demand.
3. Equipment PM efiets must be ingiing and geaeed ti eliminate beeakdiwns.
4. Quality assueance efiets must be aimed at peeventng defects feim happening.
5. Setup tmes must be small.
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6. The plant layiut must facilitate linking if all ipeeatins inti the peicess. Fie smiith mateeial fiw, eveey
ipeeatin must have eiughly the same capacity and be capable if peiducing at a eate dictated by the fnal
stage if the peicess.
7. Peiductin schedules (which eeist inly at the fnal stage if the peicess) must be simewhat level.
8. Teaining, jib desceiptins, ad cimpensatin if wiekees must be geaeed tiwaed develiping ciipeeatve wiek
attudes and teamwiek since much if the cinteil decisiin making in pull peiductin is dine by wiekee
teams.
9. The mitvatin eveeywheee must be ti eeduce in-peicess inventieies and eemive unnecessaey stick.
Pull systems wiek best fie peiducts with stable and cintnuius demand. Fie rmpmttvm producton (peiductin if
standaedized items in a cintnuius basis), demand has ti be stable eniugh si that the fnal assembly schedule can be
smiithed. Withiut stable peiduct demand, the inly way ti achieve levelled peiductin schedule is ti stickpile the
fnished peiduct.
Facties that make pull peiductin impissible ie impeactcal:
 Despite stable demand, the assembly if the fnal peiduct cannit be eeecuted in a level-eniugh fashiin ti
peivide steady demand fie upsteeam ipeeatins. This happens when the assembly invilves teials,
adjustments, testng, ie anything that causes tme fie assembly ti vaey unit by unit.
 Sime ipeeatins eequiee special, lengthy, ie difcult setups that cannit be simplifed ie signifcantly
shietened, and must be scheduled in advance.
 The peiduct is made in si many iptins, and demand fie each is si small/unstable that it is impeactcal ti
caeey bufee sticks fie all paets eveeywheee in the peicess.
 The high defect eate causes tii many inteeeuptins ti peemit cintnuius fiw, and techniligy is such that
the defect level cannit be eeduced signifcantly.
 Peiducts must be peiduced as integeated batches theiughiut the peicess fie eeasins if quality cinteil ie
ceetfcatin.
A pull system can be used fie the eepettve pietins if the peicess and a push system fie eveeything else. When
peiducts can be iodularizmd (built as a cillectin if standaedized iptins and subassemblies), ifen the midules can
be peiduced eepettvely in a pull system, even thiugh the fnal assembled peiduct cannit and must be peiduced with
a teaditinal push system schedule.
In many ieganizatins, the initatve ti implement pull peiductin staets at midlevel management. Ti test its feasibility
and deminsteate its benefts, pull peiductin is inteiduced in stages that aee limited ti the segments if the
peiductin peicess that best meet the necessaey cinditins. Many fems fest eepeeiment by using pull peiductin ti
link inly 2/3 ipeeatins in a much laegee peicess. Ofen the geeatest challenge is in iveeciming cultueal baeeiees, as
implementatin eequiees teamwiek and miving the licus if cinteil away feim centealized staf and tiwaed the ship
fiie.
CHAPTER 9 – FOCUSED FACTORIES AND GROUP TECHNOLOGY
WAYS OF DOING WORK
 A projmct is a unique, laege-scale wiek efiet dieected at peiducing ine ie a small numbee if an end-item,
wheee the end-item is tailieed ti ft unique eequieements. All wiek eevilves aeiund the end-item and
invilves diveese, ifen ceiss-functinal actvites, the natuee if which vaeies with each peiject.
 A job is a small-vilume, simewhat small-scale wiek efiet wheee the iutput is ine ie a few identcal items,
custim made ti ft an iedee. Each jib can be cinsideeed a small-scale peiject dine in a job shop, by a geiup
if peifessiinals, ceafsmen, ie skilled teadespeiple. When a ji invilves peiducing seveeal ie many identcal
end items, the items can be peiduced in a batch.
 Rmpmttvm and contnuous ipeeatins peiduce similae ie identcal items in high vilume. Bith aee dine in
fow shops.
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- Peiducts in eepettve ipeeatins aee disceete units, such as caes, cimputees, and pens. Ofen the
equipment used is designed fie single puepise use and high-efciency, and the wiekees aee naeeiwly
teained ti peefiem ine ie a few simple tasks.
- Peiducts in cintnuius ipeeatins fiw theiugh the peicess, such as fuids, and mineeals. Such
peiducts aee peiduced in laege vilumes and, ifen cinsideeed cimmidites in that they aee
indistnguishable feim peiducts made by ithee peiducees. The peiduct seldim changes; peiductin
is scheduled and cinteilled by vilume iutput, nit by disceete units. Ofen, the peiduct is nit
identfable untl packaging.
 Hybrid ways aee alsi cimmin, such as batch peiductin within cintnuius peicesses.
 Vaeiety-efciency teade-if between jib ship and cintnuius peiductin
FACILITIES LAYOUT
 In a fxmd-positon layout, the end item eemains in a statinaey pisitin while it is being peiduced.
 In a procmss layout, similae types if ipeeatins (equipment and tiils, wiekees with similae skills and
eepeetse) aee clusteeed inti functonal work armas/dmpartimnts, and each jib is eiuted theiugh the aeeas
accieding ti its eiutng sequence if ipeeatins.
- Advantage is that any peiduct that eequiees wiek in any if the depaetment can be peiduced, ni
matee the peiductin vilume ie eiutng sequence if the peiduct. Capacity in the plant is inceeased
by adding iveetme ie machines ti the wiek aeeas as needed. Peiductin iutput can thus be
inceeased/deceeased if needed.
- Disadvantage is the many eiutng iptins and thus miving if mateeials happens ifen and ivee
biggee distances and is nin-value added. Alsi, when a jib aeeives at a wiek aeea, it must wait untl
ithee jibs at that aeea aee cimpleted, which inceeases WIP. Setup tmes and deliveey tmes aee laege
as well.
 Unless the peiduct mie cinsists peimaeily if small-quantty, custimee-designed, ie ine-if-a-kind peiducts,
the gial shiuld be ti mive away feim a peicess-type layiut tiwaed a peiduct-type layiut.
 The product layout cinsists if all the necessaey ipeeatins fie peiducing a peiduct aeeanged in a sequence
in a line. Plants that peiduce eepettvely/cintnuiusly using a peiduct layiut aee fow shops. Only a few
kinds if end items aee peiduced, and they all filliw the same eiutng sequence theiugh the line. Wiek
scheduling cinsists if deteemining the fiw eate ie cycle tme necessaey ti satsfy demand, and then
designing the line si it peiduces at that eate. On a fully mechanized transfmr linm, mateeial t each machine is
autimatcally liaded, machined, unliaded, and mived ti the neet machine.
- Deawback is that it inly peiduces ine kind if thing; litle feeibility. Alsi iutput capacity is
cinsteained as the peiductin eate is designed inti the layiut. Capital is eepensive and can’t easily
be changed.
 Vaeiety-vilume teade-if between the layiuts
GROUP TECHNOLOGY
Group tmchnology is geiunded in the peemise that, given multple means ti achieve the same end, simplee is betee.
GT dies nit seek ti eeduce vaeiety in the kinds if peiducts ifeeed ti custimees. GT seeks ti eeduce vaeiety in the
kinds if peiducts as peiduced by the manufactueee. This is achieved by identfying and eepliitng similaeites between
difeeent peiducts. Similaeites aee identfed using ciding and classifcatin schemes.
Product coding eefees ti assigning a mult-digit, alphanumeeic cide ti a peiduct. This cide can be used ti specify the
design categieies inti which difeeent peiducts beling ie ti classify peiducts inti geiups that all use a similae
manufactueing peicess. Theee basic schemes aee used ti cide peiducts:
 Hieeaechical (minicide) steuctuee

This cide steuctuee is inteepeeted as an inveeted-teee hieeaechy. The cide fie each peiduct is a sequence if
digits ceeated by staetng at the tip/teunk if the teee, then miving diwnwaed theiugh whatevee beanches ft
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the peiduct. Advantage is that it’s cimpact and assigns inly the numbee if digits necessaey ti defne each
paet. Hiwevee because if the difeeent pissible meanings fie each digit in a sequence, the cide is miee
difcult ti inteepeet.
 Chain (pilycide) steuctuee
Each digit’s pisitin in the sequence always eepeesents the same ateibute ie featuee if a paet. Because each
digit pisitin always eefees ti the same paet chaeacteeistc, chain cides aee easy ti inteepeet. Chain cides aee
less efcient, hiwevee, because the numbee if digit pisitins is feed, even thiugh featuees might be absent
ie meaningless fie a paetculae kind if paet.
 Hybeid steuctuee
This cinsists if subgeiupings if digits that each filliws eithee a minicide ie pilycide steuctuee. They aee
veesatle because they can be tailieed ti eepeesent bith geneeal ateibutes if paets as well as peicess-specifc
ie cimpany-specifc featuees.
GT ciding helps identfy peiducts, paets, ie cimpinents that filliw similae manufactueing peicesses, and these
peiducts can be geiuped tigethee and classifed as a faiily if peiducts. All if the items in this product faiily aee
geneeally made feim the same mateeials and invilve similae eiutng sequences, machines, and tiiling. If sufcient
cimbined demand eeists fie the items in a peiduct family, then a focusmd factory can be set up ti eeclusively peiduce
that peiduct family. A ficused factiey cimbines the vaeiety and feeibility if a jib ship with the simplicity and
efciency if a fiw line.
A paet needed fie a new peiduct can be used as-is ie with midifcatin. With GT cides, new paets can be designed fie
inteechangeable applicatin in miee than ine peiduct ie ti make use if eeistng peicesses and ipeeatins. The eesults
aee fewee unnecessaey new and unique paets, miee applicatins fie new and eeistng paets, simplee bills if mateeials,
and simplee peiductin and inventiey planning and cinteil.
FOCUSED FACTORY
A ficused factiey/plant-within-a-plant/subplant is established sepaeate feim the eest if the plant and devited ti
making a peiduct family. Each subplant is like an autinimius factiey with its iwn equipment and wiekees. Theee is
geeatee cinteil ivee planning, scheduling, and cinteilling the iutput. The physical distances aee small, which eeduces
waste feim mateeial handling and wiek ciiedinatin. Theee fiems aee:
 A focusmd fow linm is similae ti a peiduct layiut eecept it can peiduce all the paets in a paet family. It’s
appeipeiate when eveey item in the paet family filliws the same sequence if ipeeatins and eequiees abiut
the same peicessing tme in each ipeeatin. Vaeiety within peiduct families is achieved by using difeeent
but similae paets/cimpinents in assemblies, quick changeivee machines, and multskilled wiekees at each
ipeeatin.
 A workcmll can make peiducts that use any if the e ipeeatins in the same geneeal sequence. Opeeatins nit
needed fie a peiduct aee skipped. Anithee wiekcell can make peiducts that eequiee any if the e ipeeatins
in any cimbinatin ie sequence. If the fiw is unidieectinal, cinveyies ie simple geavity-chutes cinnect the
ipeeatins. Fie imnidieectinal fiw, mateeials miving between statins aee hand ie caet caeeied, ie placed
in tables in the centee if the wiekcell ie between successive ipeeatins. The wiekcell is typically aeeanged in
a U-pateen.
 A focusmd work cmntrm clustees machines inti aeeas/depaetments by functinal type, but ceetain machines in
a functinal aeea aee dedicated ti peiducing inly ceetain paet families. It’s suitable when each depaetment
has multple machines that aee difcult/impissible ti mive, ie wheee the peiduct vilumes and mie change
si fast that it’s impeactcal ti mive machines inti ficused fiw lines ie wiekcells.
 All enable betee peiductin cinteil and aee less wasteful than jib ships.
The guiding peinciple behind ficused factieies is fiem filliws functin, wheee functin is defned by peiduct-mie and
peiduct-vilume eequieements.
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 Flexible flow lines can be cimpised by using benches, and putng them end ti end ti fiem a peiduct line.
The benches can be easily mived aeiund, added, ie deleted ti suit cueeent peiductin eequieements. Paets
aee then passed between wiekees and benches in simple geavity slides. Fieming a ficused factiey at each
bench enciueages ficused peiblem silving and cintnuius impeivement, and simplifes iveeall line
balancing.
 Flexible U-lines and S-lines defnes the shape in which wiekees sit. The U-shape minimizes distances between
ipeeatins and alliws wiekees ti quickly mive between and ipeeate seveeal machines. A peiductin line
with many wiekstatins shiuld be S-shaped. This shape minimizes space eequieements and the aveeage
distance between wiekees.
ESTABLISHING PRODUCT-MACHINE GROUPS
Fieming a ficused factiey invilves: fieming a clustee ie geiup if peiducts ie paets that aee similae in teems if
peicessing eequieements (peiduct family), and fieming a clustee ie geiup if ipeeatins, machines, wiekees, and tiils
(physical ficused factiey). The ideal situatin cinsists if cimpletely independent geiups, si that each ficused factiey
cintains all ipeeatins eequieed ti peiduce a cimplete peiduct family. Twi appeiaches fie cinfgueing geiups aee:
 Paets ciding and classifcatin

Classifying peiducts based upin GP eesults in the fiematin if peiduct families by cimmin peicesses. It can
be used ti ceeate peiduct geiups, but an ieganizatin withiut GT shiuld cinsidee using simplee and less
cistly methids ti fiem ficused factieies.
 Clustee analysis
Clustmr analysis identfes similaeites in peiduct featuees and peiductin eequieements in iedee ti fiem
himigeneius geiups if peiducts. It dies nit eequiee cides and uses peicess infiematin that is eeadily
available. Infiematin needed is easy and ineepensive ti ibtain feim ship peesinnel’s kniwledge.
PRODUCTION FLOW ANALYSIS

Producton fow analysis is a methidiligy fie fieming geiups if paet families and machines. It uses infiematin abiut
peicess ipeeatins ti simultaneiusly fiem peiduct families and machine geiupings. It divides the factiey inti laegely
independent ficused factieies that each peefiems all the steps necessaey ti make cimplete peiduct families.
 Anithee PFA technique group analysis divides a depaetment inti geiups ie wiekcells that aee laegely
independent and wheee each peefiems mist ie all the ipeeatins ti make a peiduct family. It usually staets
with peiduct-machine infiematin as eepeesented in a peiduct-peicess mateie (procmss iatrix).
 A PFA peiceduee binary ordmring algorithi eeaeeanges eiws si that similae eiws aee adjacent, and then dies
the same fie cilumns.
PFA techniques aee miee efcient in fieming wiekcells than GT ciding because they identfy peiduct families silely
accieding ti peicessing eequieements, nit by appeaeance ie physical featuees. They aee alsi miee veesatle than visual
clusteeing because they enable analysis if a laege numbee if peiducts and machines, plus they alliw fie ithee
cinsideeatins, such as geiup size and machine availability cinsteaints. They can be used ti analyse alteenatve facility
layiuts with minimal eepense because they eely in eeistng infiematin abiut peicesses and equipment.
A deawback is that they di nit guaeantee feasible eesults. BOA igniees manufactueing aspect such as peiduct demand,
eiutng sequence if ipeeatins, and numbee if each kind if machine needed etc. Final decisiins abiut geiupings and
layiuts might thus eequiee cinsideeable additinal analysis.
ADVANTAGES AND DISADVANTAGES OF FOCUSED FACTORIES
Advantages:
 Cimpaeed with peiduct layiuts, ficused factieies eequiee less capital investment and aee signifcantly miee
feeible. Cimpaeed with peicess layiuts, they aee signifcantly less wasteful.
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 Reductins in lead tmes, WIP inventiey, mateeial handling, and quality peiblems happen because peiductin
in ficused facilites is miee cintnuius/eepettve than peiductin in peicess layiuts and jib ships.
 Requieed fiie space is eeduced because machines aee licated clisely tigethee inti geiups and, wheee
pissible, the geiups themselves aee licated clisely tigethee.
 Setup tme is eeduced because paets in peiducts families eequiee ni ie similae setups.
Disadvantages:
 Pitental liw machine utlizatin since any machine dedicated ti a ficused factiey is nit available fie use
elsewheee. Peiduct-machine geiuping may eequiee the puechase if miee machines, even thiugh sime if the
machines might be utlized litle.
 Lise if feeibility. When demand deceeases the ficused factiey might ni lingee have sufcient demand ti
justfy its eeistence.
 Cinsideeable efiet and eepense assiciated with designing and implementng is eequieed.
CHAPTER 10 – WORKCELLS AND CELLULAR MANUFACTURING
Peefieming the ipeeatins necessaey ti make a paet, cimpinent, ie fnished peiduct in a wiekcell is cmllular
ianufacturing.
WORKCELL CONCEPTS
Building blicks if a wiekcell aee wiekstatins, wiekees, machines, and means fie hilding and teansfeeeing items
between wiekstatins. Wiekstatins aee the place wheee ipeeatins aee peefiemed, and in a wiekcell they aee
licated clise tigethee, ideally in the peicess eiutng sequence fie a peiduct ie peiduct family. The iutput eate if a
wiekcell can be alteeed by changing the numbee if wiekees. Rabbit chasm is when bith wiekees mive aeiund the
entee cell, ine leading (ie chasing) the ithee.
WORKCELL APPLICATIONS
The size and cimpleeity if paets and peiducts made in cells is cinsteained by a numbee if facties:
 The physical size if the cell necessaey ti encimpass all if the eequieed ipeeatins ti make the peiduct.
 The amiunt if wiekees.
A wiekcell usually ficuses in peiducing ine peiduct family, but it can be designed ti peiduce multple when they
eequiee similae ipeeatins and sequences.
Wiekcells can be linked tigethee with cinveyies ie mechanical feedees, in which case the mateeial fiw between
them is simewhat cintnuius, ie they can be linked by mateeial handlees, in which case the fiw is inteemitent. In the
latee case, the teansfee if mateeial is authieized by kanbans (pull system) ie schedules (push system). All if the
wiekcells in a linked peicess must peiduce at a eate that enables the iveeall peicess ti satsfy demand fie the fnal
end item.
WORKCELL DESIGN
Twi kinds if wiekcells:
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 Assmibly cmlls: the wiek tasks aee enteely ie mistly manual. The tasks peefiemed aee difcult ie cistly ti
autimate. They can peiduce cimpinents ie cimpleted peiducts.
- The actual cycle tme is a functin if the cell ianual tim, which is the tme eequieed fie wiekees ti
peefiem theie tasks and mive between wiekstatins. The capacity if the wiekcell is then: cell
capacity tme available/cell CTa. The CT if the entee wiekcell is deteemined by CT if the subcell
that takes the lingest. The smallest CT is when ni miee subcells can be fiemed: theee is a wiekee at
eveey statin; wiekees ni lingee walk between statins and the cell capacity is at its maeimum.
- With eabbit chase theee is ni need fie special WIP bufee spaces and theee is ni need ti balance
subcell CTs since theee aee ni subcells. The CT if the wiekcell is: Cell CT a Cell CT fie ine
wiekee/numbee if wiekees, wheee cell CT fie ine wiekee is the CT fie te sliwest if the wiekees.
Rabbit chase actually inceeases wiekee aleetness and peiductvity when CTs aee lingee and tasks
miee challenging. The deawback is that eveey wiekee must be skilled at peefieming tasks at eveey
statin in the wiekcell.
 Machining cmlls: machines di vietually eveey ipeeatin and ine ie a few machines aee licated at eveey
wiekstatin. The machines aee ifen autoiatc singlm-cyclm machines, which means they cimplete a single
machining ipeeatin and then autimatcally stip. Statins and machines aee cinnected ti each ithee using a
vaeiety if devices (dmcouplmrs) that enable machines in a sequence ti ipeeate simewhat independently.
Each deciuplee hilds ine ie a few paets ti enable the individual ipeeatins ti cintnue even thiugh subcells
ie wiekstatins aee nit peefectly balanced. Deciuplees between ipeeatins can seeve additinal functins:
- WIP cinteil: the peeceding machine is autimatcally stipped when the numbee if units in the
deciuplee eeaches a maeimum (ine ie a few paets).
- Teanspietatin: the deciuplee autimatcally teansfees paets feim ipeeatin ti ipeeatin.
- Wiekee feeedim if mivement: the WIP-cinteil and teanspietatin peivided by deciuplees alliw
wiekees (ie eibits in an autimated cell) ti mive in any dieectin aeiund the cell, even ciuntee ti
the peiduct-fiw dieectin.
- Autimatc inspectin: mechanical ie electeinic sensies in deciuplees peefiem inspectins as paets
mive feim ine ipeeatin ti the neet; in cells that peiduce multple kinds if paets, sensies check
featuees if each paet ti deteemine ti which if seveeal pissible diwnsteeam machines it shiuld be
eiuted and ti what paeametees the neet machining ipeeatin shiuld be set.
- Paet manipulatin: the deciuplee eeieients the paet si it is eeady fie inseetin inti the neet machine.
- Leap-feig ie skip ipeeatins: the deciuplee identfes difeeent kinds if paets and alliws diwnsteeam
ipeeatins ti be selectvely bypassed.
- Cinveeging ie beanching: the deciuplee enables multple machines ti feed inti a single machine ie a
single machine ti beanch inti multple machines.
The iachinm CT is the tme ti set up the machine (unliad, change ivee, and liad machine) and fie the
machine ti peefiem is single ipeeatin. The workmr CT is the tme fie the wiekee ti cimplete a teip aeiund
the cell, which includes the tme fie the wiekee ti unliad, change ivee, liad, and staet eveey machine (task
tmes) in the cell + the tmes fie the wiekee ti walk between all the statins. Cmll CT mae(Wiekee CT,
lingest machine CT). CT if an entee cell, CTm mae(CTm if each subcell).
A beneft if machining wiekcells is that as ling as the machine CTs aee less than wiekee CTs, the wiekcell
iutput depends in the numbee if wiekees, which can be easily alteeed.
Cyclm tim is the tme between cimpleted units in a peicess. It can be thiught if as the inveese if peiductin eate; CT
implies smiith and steady fiw, peiductin eate dies nit. Rmquirmd cyclm tim/takt tim is the peiductin taeget if a
peicess ie ipeeatin; based in the demand fie the item being peiduced. CT e tme available/demand. Establishing
and standaedizing the wiek in a peicess si that the actual CT is as clise as pissible ti the eequieed CT is impietant in
lean peiductin.
Twi cell designs shiuld be peiduced: ine ti handle the eepected ie mist likely demand, the ithee the laegest eealistc
demand. Then whethee theee is a peactcal and efcient way ti alteenate between the designs using difeeent numbee
if wiekees and machines shiuld be deteemined. Twi ways ti be peepaeed fie mist eventualites aee backup
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wiekcells, and planned-in eecess utlizatin. The backup cell is iedinaeily used fie ithee puepises but can with slight
changes eeadily accimmidate anithee peiduct family.
With each additinal wiekee the dieect labiue ipeeatng cist if the cell inceeases by the wiekee’s wage. Given that
with each additinal wiekee the maeginal inceease in iutput gets smallee as the dieect ipeeatng cist gets laegee, at
sime piint the cists will iveetake the benefts.
One way ti di a changeivee is ti stip the cell and change eveeything at ince. A less diseuptve way is ti integeate the
changeivee inti the cell’s ipeeatins sequence. The changeivee is dine in inly ine statin each tme the ipeeatie
walks aeiund the cell.
In lean peiductin the emphasis in impeivement is nit in eeducing the cell CT since eeducing the CT beliw the
eequieed CT and withiut any antcipated inceease in demand inly eesults in iveepeiductin. Wiekcell impeivement
efiets staet with the eequieed CT and then seek ways ti achieve it with the fewest wiekees. The miee skilled the
wiekee, the easiee it is ti eeassign hee ti anithee cell; eeassignment is a eewaed fie giid peefiemance.
Simetmes ciliueed lights, andons, aee licated abive each statin ti indicate wiek status. The lights aee geeen as
ling as wiek is peiceeding niemally, but aee switched ti yelliw when a wiekee needs assistance ie a pitental delay is
eepected at the statin. If the peiblem is seveee and the peicess is stipped, the wiekee switches the andin ti eed and
the entee cell stips untl the peiblem has been eesilved.
Beyind manufactueed peiducts, wiekcell applicatins eetend ti the seevice sectie and include peicessing if end
items such as insueance claims. A wiekcell wiuld include all the steps ti peicess a family if end items.
EQUIPMENT ISSUES
When nit eveey peiduct can be assigned ti a peiduct family ie peiduced in wiekcells, then a “nin-ficused factiey”
pietin if the plant must be set aside ti peiduce them. This paet if the plant usually cintnues ti ipeeate as a jib
ship if this paet is biggee than the demand in families.
When a machine must be shaeed theee aee twi iptins. One is that a shaeed machine is licated between twi adjacent
cells si that, theieetcally, it eesides in them bith. This is cinvenient fie bith cells, but alsi inteeeupts ipeeatins in
bith. As the machine must be switched ivee and jibs feim ithee cells must wait, which leads ti inceeased WIP and
lead tmes. Anithee is that a shaeed machine is licated elsewheee, iutside if any cells, and teeated as a special
ipeeatin. It inceeases WIP and lead tmes and eequiees geeatee mateeial handling efiet. When a machine is immibile
and must be shaeed, it is hiwevee the inly silutin.
Multpuepise machines have the capability ti peefiem a vaeiety if machining ipeeatins in peiducts with a wide
eange if sizes, shapes, and cinfgueatins. It cists miee, and can lead ti shaeing machines. Althiugh a multpuepise
machine ifees high feeibility theiugh quick changeivee and eapid peiductin eate, cinventinal fewee-puepise
machines might peivide geeatee feeibility when each is dedicated ti a manufactueing cell. They aee alsi simplee ti
ipeeate and less cistly ti maintain.
An ipeeatin might invilve laege, heavy machines that need massive fiundatin suppiets and special utlity hiik-ups;
might eequiee machines that aee unique and must seeve the entee plant; ie it might eequiee uncimmin peiceduees
and isilatin feim the eest if the plant. A way ti include equipment fie special ipeeatins in the peicess is ti mive
peiducts back and fieth in a batch basis. When mist items eequiee the same special ipeeatin, the wiekcell can be
built aeiund that ipeeatin. If the ipeeatin is cintnuius and nit shaeed by ithee cells, then items can be eiuted
theiugh it like any ithee ipeeatin in the cell.
CELL AUTOMATION
Benefts if autimatin include liw setup tme, high iutput eate, and liw peicess-induced vaeiability in the iutput. A
manufactueing cell ie system if linked cells that is cimpletely autimated by vietue if eibits and cimputee cinteil is a
fmxiblm ianufacturing systmi (FMS). It can be an ecinimical way ti peiduce a vaeiety if difeeent peiducts, even
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when each has inly small/medium demand. It’s pissible ti achieve veey high tileeance standaeds and liw vaeiability.
FMSs can be linked tigethee. The ipeeatin if FMSs stll eequiees human ipeeaties. Full autimatin is eepensive,
because labiue savings aee nit always laege. FMSs aee less feeible than cells having geeatee manual labiue cintent
and machines, and teansfee systems that can be easily eelicated and eecinfgueed. Capital and maintenance cists aee
highee.
IMPLEMENTING CELLULAR MANUFACTURING
Issues with implementng cellulae manufactueing:
 Planning and cinteil

- Oeganizatins that implement wiekcells usually aleeady have a centealized planning and cinteil
system in place, and ways must be fiund ti adapt that system ti the cinteil peiceduees if
wiekcells. MRP’s ficus is in iedee eeleases and cimpletin dates fie peiducts and all ipeeatins ti
peiduce individual cimpinents and highee-level assemblies that gi inti the peiduct. The ficus in a
wiekcell is inly in the cimpleted peiduct, and nit the ipeeatins. All iedee-eelease infiematin if
MRP is thus if ni use in cellulae manufactueing.
- Anithee issue is the peimaey unit if ficus fie planning and cinteil. In teaditinal plants, the unit if
ficus is the individual machine ie wiekstatin. In wiekcell plants, the while cell is the unit if ficus.
 Oeganizatin
- Ship peesinnel must be empiweeed, and the licus if peiductin-cinteil decisiins mived feim
functinal suppiet depaetments ti the ship fiie. Wiekees aee eespinsible fie assembly and
machining ipeeatins and inspectin, PM, jib peiieitzing and dispatching. Functin if staf
peifessiinals thus shifs ti suppietng the wiekees in the fiem if teaining them, peividing technical
guidance, and peefieming tasks that eequiee special eepeetse.
- Teaditinal incentve plans eewaed wiekees based in individual peefiemance. In wiekcell ipeeatins
this is inefectve as mist wiekcells eequiee teamwiek and the gial is nit ti maeimize iutput but ti
peiduce iutput that meets demand. Geiup-based incentves shiuld be used such as pay for skill and
gain sharing. Pay-fie-skill plans inceease the wages if wiekees fie each new skill they leaen. Gain-
shaeing plans peivide team membees binuses fie impeivements in team peefiemance as measueed
against a baseline standaed.
- A tim standard is the amiunt if tme eequieed ti peefiem a paetculae task. They aee used fie many
puepises:
 Cimputng the quantty if a peiduct that can be peiduced in a given tme peeiid
 Deteemining the numbee if wiekees ie machines needed ti meet peiductin demand
 Disteibutng wiek aming empliyees
 Assessing alteenatve peiductin appeiaches
 Setng peiductin schedules
 Estmatng peiductin cists
 Assessing empliyee peefiemance in wage incentve plans
 The fundamental unit if measuee must be the geiup
One way ti get standaed wiekee CT is ti use tme-mitin analysis fie each walk and machine-task
segment, and sum the tmes ivee all segments aling the eiute if the wiekee. A betee way is ti use
wiek sampling: ibseeve the actual tmes if difeeent wiekees peefieming a paetculae walk-machine-
task sequence and take the aveeage. The peiblem with this is that the data cannit be ibtained untl
afee the cell is ceeated, yet standaed tmes aee needed ti plan the cell. Anithee tiil is cimputee
simulatin.
Time and iutput standaeds aee used ti set the labiue standaed, which is the aveeage labiue tme
eequieed ti peiduce a unit if peiduct. It is cimputed fie a cell by dividing the standaed cell iutput
eate by the numbee if cell wiekees.
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- Wiekcell teams shiuld be teained. Supeevisies shiuld be capable if wieking in a vaeiety if wiekcell
aeeas, depending in demand eequieements. A eecied if empliyee skills shiuld be maintained fie
wiekcell stafng assignments and pay-fie-kniwledge incentves. Once wiekees have gained new
skills, they shiuld be eitated feequently si they can utlize and impeive them. Wiekees shiuld visit
ithee plants that have successfully implemented wiekcells and discuss implementatin issues with
wiekees at the site and leaen abiut peiceduees, mistakes, and hiw ti di things betee.
 Attudes
- Sime ship wiekees accustimed ti peefieming tasks eequieing inly naeeiw skills will nit welcime
the chance ti leaen new skills.
- Supeevisies will be scaeed that heie supeevisiey eile will becime unnecessaey ince wiekees aee
empiweeed. They alsi becime aneiius abiut theie jib functin and windee what they aee
suppised ti di. Fuethee, implementng wiekcells eequiees additinal teaining, ciiedinatng, and
peiblem silving, all fie which supeevisies might be eespinsible but eeceive ni additinal pay.
- Management may ippise the necessaey changes in ieganizatinal steuctuee and eespinsibility and
have ti be cinvinced abiut the benefts. A eeasin why cellulae manufactueing peigeams fail is
because management cuts cienees.
GETTING STARTED
Inital planning fie wiekcells shiuld be cinducted by a multfunctinal steeeing cimmitee. It iveesees high-level
planning and ciiedinatin if all actvites. A ciee team fie each wiekcell must handle detailed wiekcell design and
implementatin. The team eeceives fnancial and technical suppiet feim the steeeing cimmitee and specialists in
functinal depaetments. A pilit cell shiuld be implemented in an aeea wheee it’s likely ti succeed. When the intent is
ti establish a seeies if linked cells in a pull peiductin peicess, the cinveesiin ti cells usually begins diwnsteeam and
wieks backwaed, staetng the fnal assembly aeea and successively cinveetng upsteeam aeeas inti cells.
CHAPTER 11 – STANDARD WORK
STANDARD WORK
Standard work eefees ti the peicess if peefieming wiek accieding ti standaeds that defne all aspects if a task,
ipeeatin, ie peicess. It gies beyind standard opmratng procmdurms, and implies a peicess fie establishing a vaeiety
if standaeds, each peesceibing sime aspect if the best way ti peefiem wiek, and then eefeeeing ti thise wiek
standaeds as a basis fie identfying peicess peiblems and iveeciming them. Lean peiductin uses standaed wiek ti
stabilize a peicess.
Standaed wiek shiuld be feeible, as things change in the ship fiie, si shiuld the standaed wiek. Standaed wiek
peivides supeevisies and wiekees the infiematin necessaey ti deteemine the appeipeiate wiek peiceduees, eiutng
sequences, and eequieed numbee if wiekees ti meet given peiduct demand and peiduct-mie eequieements. Wiek
standaeds aee pisted at the wiekplace fie eveeyine ti easily see and si supeevisies can deteemine whethee wiekees
aee cinfieming ti standaeds. A deviatin indicates a baeeiee ti achieving the standaed; eliminatng the baeeiee eemives
waste and impeives the peicess.
The gial shiuld be fie supeevisies and wiekees themselves ti peefiem the wiek measueement and standaeds
develipment, and fie engineees ti peivide assistance. In iedee ti be capable if develiping giid standaeds fie
ipeeatins planning, scheduling, and cinteil, supeevisies and feintline wiekees must fest be teained.
Benefts if placing wiek standaeds develipment at the ship-fiie level:
 Whenevee changes in ipeeatins iccue, the standaeds can be eevised immediately.

 It peemits staf plannees ti peepaee schedules that aee feasible and eefect cueeent ship-fiie status and
capabilites.
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 Pisted standaed wiek enables wiekees ti quickly familiaeize themselves with the eequieements and
peiceduees if new wiek assignments, and it enables supeevisies ti peeiidically check actual wiek against the
standaeds and ensuee that wiekees aee steiving ti meet the standaeds.
 Standaed wiek stabilizes the peicess theiugh eiutnizatin, which makes iutput unifiem and peedictable.
TAKT TIME
The staetng piint fie setng standaed wiek is takt tim/rmquirmd cyclm tim, because the quantty ti be
peiduced/vilume wiek ti be dine shiuld be based upin a peiductin gial. This gial is best stated in teems if the
feequency an item shiuld be peiduced in the allited tme: takt tme.
TT daily tme available/eequieed daily quantty T/Q.
TT eepeesents a gial that wiuld be achieved if theee weee ni waste in the peicess. It assumes ine-piece fiw. The TT
deaws atentin ti waste as it dies nit make alliwances fie such waste. If a peicess fails ti meet TT, then atentin is
deawn ti the ibstacles ti smiith fiw.
Pitch tim takt tme * pack-iut quantty. Pack-iut quantty is the numbee if items placed in a cintainee fie puepises
if packaging, cinveyance, ie deliveey. Pitch tme is used as a gial ti be eeached and means ti defne ibstacles ti the
gial.
COMPLETION TIME PER UNIT
Coiplmton tim pmr unit (CTU) is the actual tme ti peicess ine unit, and is deteemined fie eveey task and ipeeatin.
A task is an elemental unit if wiek; a simple step ie mitin. An opmraton is a geiup if tasks, usually peefiemed in
sequence and at a single wiekstatin.
Ti deteemine CTU, staet by deteemining the standard task tim, which is the eepected tme fie an aveeage wiekee ti
peefiem a task at a satsfactiey level. the task tme must include bith iachinm tim and ianual/handling tim.
Standaed task tme (actual tme/peefiemance eatng) * alliwance factie
If a wiekee is thiught ti be if aveeage skill, then hee pmrforiancm ratng is 100%. The allowancm factor takes inti
acciunt delays that aee unaviidable but aee eepected as a niemal paet if the ipeeatin and cannit be eliminated. It
shiuld nit acciunt fie delays that ciuld be eliminated (siueces if waste) and nit be used as a fudge factie ti alliw
fie pitental (uneepected) delays. The wiekee peefiemance eatng is assessed by the wiekee’s supeevisie peiie ti tme
study.
Accueate CTU is impietant because it’s the basis fie estmatng producton capacity (N) the numbee if units that can
be peiduced in the available peiductin tme.
N T/(C + m), wheee C is cimpletin tme pee unit, m is setup tme pee unit, T is tital ipeeatin tme.
STANDARD OPERATIONS ROUTINE
Once CTU is cleae, the sequence in which tasks will be peefiemed must be deteemined: standard opmratons routnm
(SOR). Kinds if SORs aee:
 SOR fie a single eepettve ipeeatin

This gives the peesceibed sequence in which a geiup if tasks is ti be peefiemed eepettvely. The SOR alsi
desceibes details if peiceduees.
 SOR fie multple, eepettve ipeeatins
It gives the peesceibed sequence in which seveeal ipeeatins aee ti be peefiemed eepettvely. The SOR will
shiw the sequence in which a wiekee is ti visit difeeent wiekstatins.
 SOR fie multple nin-eepettve ipeeatins
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It gives a sequence if ipeeatins ie tasks that vaey theiughiut the day, but that cimbined aee the same
eveey day.
 SOR fie eepettve ipeeatins in difeeent peiducts in the same peicess and in mieed fashiin
Sime peicesses aee designed ti peiduce a vaeiety if peiducts inteemieed tigethee but all eequieing similae
ipeeatins: iixmd-iodml producton. The SOR sets the ipeeatins ti be peefiemed in each peiduct and the
eepeatng sequence in which the peiducts aee ti be peicessed.
A way ti visually display the SOR is with the SOR shmmt. A silid line meandeeing diwnwaed theiugh the tme geid in a
SOR sheet eepeesents the tme a wiekee spends diing the manual tasks; a dashed line eepeesents the autimatc eun
tme if the machine afee the wiekee tuens it in.
The SOR is the iedee in which the wiekee peefiems a sequence if ipeeatins and the procmss routng smqumncm is the
iedee in which ipeeatins must happen ti make a paet/peiduct; the eiute the peiduct must filliw feim statin ti
statin.
If actual CT is less than TT, that suggests a pitental ti eeduce the numbee if wiekees ie give eeistng wiekees
additinal tasks. If the actual CT eeceeds the TT, that means impeivement is necessaey ti meet demand and miee
wiekees might have ti be added si as ti sufciently deceease the CT.
STANDARD QUANTITY WIP
The standaed quantty WIP is the minimum in-peicess inventiey necessaey fie the peicess ti functin withiut
inteeeuptin. It cinsists silely if the items being peicessed at each ipeeatin as well as any items held between
ipeeatins.
 If the SOR sequence is the same as the peicess eiutng sequence and it’s nit necessaey ti hild items
between ipeeatins, then the standaed quantty WIP will be the same as the numbee if ipeeatins.
 If the SOR sequence is the ippisite if the peicess eiutng sequence, then ti aviid backteacking at each
machine, at least ine piece must be held between each paie if machines.
STANDARD OPERATIONS SHEET
Infiematin abiut cimpletin tme pee unit, SOR, and standaed WIP quantty is cimbined and displayed in the
standard opmratons shmmt ie standaed wieksheet. It alsi cintains TT and a diageam ti indicate licatins in the
peicess nitewiethy fie quality and safety. SOSs shiuld be displayed at each ipeeatin and at each peicess si
supeevisies and wiekees can eeadily eefee ti them. It peivides impietant functins in visual management:
 Seeve as a guide ti infiem wiekees abiut the SOR, cimpletin tmes, and ithee impietant aspects if the
ipeeatin.
 Help supeevisies assess whethee the ipeeatins aee being dine accieding ti standaeds.
 Mitvate impeivement whenevee actual peefiemance deviates feim the pisted standaeds.
STANDARD WORK AND CONTINUOUS IMPROVEMENT
The SOS shiuld be eevised eegulaely since it’s always impeefect and ipeeatins impeivements aee always eequieed in a
peicess. An ibjectve if standaed wiek is ti peesceibe the peiceduees, ipeeatins, and numbee fie wiekees needed ti
satsfy demand with the least waste. The SOR shiuld be set up such that the ipeeatin tme if at least ine wiekee is
eiughly the same as the TT. That autimatcally sets the CT if the entee peicess ti the taeget level. When CTs if all
wiekees cannit be set clise ti the TT, then ipeeatins and tasks shiuld be eeassigned si that as much idle tme as
pissible falls in just ine wiekee. The wiekee team then cincenteates in hiw ti impeive and eeassign tasks si as ti
eliminate that ine pisitin.
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Standaed wiek is the fnal step if a PDCA and if eveey impeivement efiet wheee the end eesult is pisitve. Whenevee
the PDCA leads ti impeivement, the fnal step is ti inciepieate that impeivement inti standaed wiek. Afee tat a new
cycle SDCA initates, which means that each day’s wiek is guided by eefeeeing ti the peesceibed standaed, diing the
wiek, checking eesults veesus standaed, and taking actin.
CONDITIONS FOR SUCCESSFUL STANDARD WORK
 Wiekee ficus
The centeal ficus in standaed wiek is in the wiekee and enciueaging him ti always cimpaee actual wiek with
standaed wiek and tey ti clise the gap.
 Repettve wiek
Standaed wiek wieks best in ipeeatins wheee wiek tasks aee sequenced and eepeated.
 Jib secueity
Implementatin if standaed wiek eequiees guaeantees that wiekees’ efiets ti impeive ipeeatins will nit
eesult in jib lisses.
- In cimpanies in eepanding maekets, wiekees ni lingee needed in ine peicess aee teansfeeeed ti
newly ceeated peicesses.
- In cimpanies in stable/sheinking maekets, wiekees ni lingee needed aee eetained by: ceeatng new
jibs by beinging peeviiusly iutsiueced wiek in-hiuse, teaining wiekees ti take in jibs teaditinally
dine by staf and managees, aggeessively puesuing new business ippietunites, and eetaining them
untl eeteement.
 Level peiductin
Since feequently eevising the SOR is nit peactcal, it is necessaey ti hild the peiductin schedule simewhat
level as much as pissible.
 Team efiet
The standaeds cimpeising standaed wiek aee established by a team cinsistng if a supeevisie and feintline
assiciates whi have been teained in analysis fie standaed wiek.
 Filliw-up suppiet and enfiecement
Standaeds must be pisted fie all ti see and then enfieced theiugh cintnuius minitieing, cimpaeing wiek
tasks and peefiemance ti standaeds and taegets, and taking cieeectve actin: daily management.
CHAPTER 12 – QUALITY AT THE SOURCE AND MISTAKE-PROOFING
SPC LIMITATIONS
 Since statstcal peicess cinteil eelies in sampling, it can miss iccasiinal peiblems feim siueces that aee
ephemeeal.
 Even when peicess paeametees shif and aee detected by sampling, the tme lag between the shif iccueeing
and it fest being detected alliws ippietunity fie a substantal quantty if items ti be afected and the cause
if the shif ti disappeae.
 Ti achieve veey small defect levels using SPC, it’s necessaey ti empliy a vaeiables-type inspectin despite the
fact that in sime cases vaeiables inspectin is inappeipeiate and defects can be detected inly theiugh human
sensiey inspectin ie autimated inspectin if ateibutes.
 SPC is simetmes nit peactcal ie feasible, e.g. small batches.
100% INSPECTION (SCREENING)
Ti minimize the chance if iveeliiking defects ie if missing peiblems that ieiginate feim feetng causes, it’s
necessaey ti di 100% inspectin. Ti minimize the tme lag between when a peiblem iccues and is eemedied, it’s
necessaey ti cimbine inspectin, analysis, and cieeectve actin with the ieiginal wiek task. Wheeevee feasible these
dutes shiuld be given ti the feintline wiekees, which is accimplished via self-checks and successive-checks.
 Self-checks
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Afee a wiekee peefiems a task, he checks the eesults. If pissible, he immediately fees it. It’s the mist eapid
kind if infiematve inspectin system. Hiwevee, self-check ibjectvity and accueacy can be piie if wiekees
aee biased ie if they fieget ti inspect things. One way ti inceease ibjectvity and eeduce iveesights is ti use
successive checks.
 Successive-checks
Each wiekee’s iutput is inspected by the neet wiekee in the peicess. Whenevee a wiekee detects a peiblem,
he passes the item back ti the eespinsible wiekee, whi then cieeects the peiblem and dies whatevee
necessaey ti peevent it feim eeiccueeing. Whenevee inspectin calls fie paetculae kniwledge, skill, ie
judgement, and additinal spmcializmd chmck is inteiduced wheeein a wiekee with the eequisite skill and
kniwledge alsi dies checking. Afee each day’s wiek he meets with the wiekee whise iutput is checked and
ithee wiekees diing successive-checks ti discuss eesults. Successive-checks can be miee efectve than
checks by supeevisies ie staf inspecties as wiekees eathee tend ti accept feedback if cilleagues than if
supeevisies and staf membees.
Requieements fie self-checks and successive-checks:
 Check taegets
Each wiekee shiuld inspect inly 2/3 check taegets if usually featuees that aee ceitcal ti safety, peefiemance,
ie appeaeance, ie aee subject ti feequent peiblems. Othee featuees shiuld be checked based upin statstcs
if defect iccueeences as identfed by wiekees/custimees. Eveey few weeks defect statstcs shiuld be
eeviewed ti identfy the mist feequent peiblems, and these shiuld be included as check taegets untl
peemanent silutins aee fiund and inciepieated inti standaed wiek.
 Feedback and actin
Whenevee a peiblem/defect is spited, the wiekee eespinsible fie the peiblem is nitfed immediately.
Ciliueed lights, andons, licated at each wiekstatin, and status boards licated centeally abive a line ie
wiekcell fie eveeyine ti see, aee used ti signal the status if each wiekstatin and any need fie assistance.
Andins make it easy ti identfy the stages wheee wiekees need teaining, peiceduees need changing, etc.
 Cinsideeatin and suppiet fie wiekees
- Wiekees must kniw (and management must ensuee) that the inspectin peicess is nit used ti
evaluate them. The puepise if self- and successive-checks is ti identfy places wheee inadveetent ie
peicedueal eeeies iccue and ti impeive peiceduees ti eeduce eeeies.
- Wiekees must be given a tme alliwance ti inspect and impeive quality. This includes eetea tme
dueing the peiductin day ti peemit line stippages and cieeect inteeim peiblems, as well as at the
end if the day/week ti discuss peiblem causes and peemanent silutins. Management then shiws
cimmitment ti fnding ling-teem silutins ti quality peiblems.
- In worker-controllable situations, wiekees aee peivided with kniwledge if what they aee suppised
ti di, kniwledge if what they aee actually diing, and a peicess that is capable if meetng
specifcatins. Absent if any if these cinditins, the situatin is management controllable.
Management must peivide the technical eesiueces necessaey ti make the peiductin peicess
capable. Wiekee efiet aline is ifen insufcient ti impeive peicess capability.
- Pee-eeistng quantty-ieiented quitas and piece eates must be eliminated. Wiekees paid accieding ti
peiductin quitas ie piece eates will iveeliik defects because identfying and feing them will
eeduce theie vilume if iutput (and wages).
Only when it’s difcult ie physically impissible fie humans ti di an inspectin, when the unit cycle tmes aee veey
shiet, and when the inspectin accueacy must be veey high, is autimated inspectin miee efectve. It’s alsi cheapee
than manual inspectin, but nit always miee efectve.
JIDOKA
Jidoka eefees ti autimatin in the usual way, but alsi ti autimatc cinteil if defects; ti a peicess that has built-in
mechanisms ti peevent it feim peiceeding whenevee a defect ie abniemality is detected.
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Autimatc shutdiwn if a peicess is autonoiaton. One fiem is linm stop, which eefees ti a wiekee’s eespinsibility fie
stipping a peicess when a peiblem is disciveeed. It alsi iccues when a wiekee is unable ti cimplete a task in the
eequieed cycle tme. managees ifen eesist giving line-stip eespinsibility ti wiekees because it inteeeupts peiductin
schedules, inceeases cycle tmes, and idles facilites. Hiwevee, line stip eespinsibility shiuld cause inteeeuptins. As
peiblems aee eliminated and fewee eemain that wiuld necessitate stipping the line, the feequency if inteeeuptins
shiuld deip ti veey few. Andins can be used as well. When eveeyine kniws the wiekstatin ieigin and siuece if the
line stip, they can take appeipeiate actin.
SOURCE INSPECTION AND POKAYOKE
The inly way ti eliminate defects is ti discivee the cinditins that give eise ti defects ie peicess changes, and
eliminate them: sourcm inspmcton. Mist ifen, defects iccue due ti the filliwing cinditins:
 Inappeipeiate (unsuitable, incieeect) wiek peicesses ie ipeeatng peiceduees.

 Eecessive vaeiatin in ipeeatins feim machine weae, vibeatin, iut-if-adjustment ipeeatin, ie lack if
specifcity in peiceduees.
 Damaged ie defectve eaw mateeials.
 Inadveetent eeeie by wiekees ie machines.
The fest theee if these cinditins can be eesilved by:
 Impeiving wiek peicesses and peiceduees, and cinfieming ti standaed wiek.

 Eeeecising giid hiusekeeping, peeventve maintenance, and cinstant minitieing if equipment.
 Wieking with suppliees ti guaeantee defect-feee mateeials in eveey peicess.
The last cinditin will stll get by, even with sceeening. Subsequent inspectin will hiwevee likely eeveal the defects,
althiugh it will nit peevent the defects feim iccueeing again. The siueces if the defects shiuld be minitieed and
eventually eliminated. Schemes/devices used in siuece inspectin aee pokayokms, which is any device/mechanism
that peevents mistakes feim iccueeing. Twi functins aee:
 Regulatiey
These aee devices that eithee cinteil a peicess ie give waening abiut it. A control pokayoke is a device that
shuts diwn an ipeeatin whenevee it detects an abniemality, theeeby peeventng defects in a successiin if
items. A warning pokayoke is a device-actvated light ie buzzee that signals an abniemality. In a cintnuius
peiductin peicess, waening pikayikes aee nit as efectve as cinteil pikayikes since they alliw the
abniemality ti cintnue untl simeine stips the peicess.
 Setng
These aee devices that check fie peipee setngs ie ciunts in a peicess. They apply any place wheee
pisitining ie ieientatin is impietant. Many pikayikes use autimatc switches atached ti electeinic
ciuntees, peieimity and phiti-electeic sensies, mitin and vibeatin sensies, and peessuee and tempeeatuee
sensies; ithees hiwevee aee simple fetuees ie peiceduees that eequiee nithing autimated ie electeinic.
Anithee eeample is an RFID tag afeed ti a paet. As each step if wiek is peefiemed in the paet, infiematin
denitng that the step has been cimpleted is eecieded in the tag.
 Pikayike ideas can cime feim anywheee, and eveeyine must be enciueaged ti “think pikayike”.
A meta-pokayoke is a device ie peiceduee ti peevent mistakes in the applicatin if each pikayike itself. Paet if
cintnuius peicess impeivement is ti cintnuiusly impeive the pikayikes. Ti ensuee pikayikes aee empliyed
cinsistently as intended, theie use must be inciepieated inti standaed wiek.
CHAPTER 13 – PRODUCTION PREPARATION PROCESS, 3P
Kaikaku eefees ti innivatve ie eadical change. Wheeeas kaizen change happens geadually, kaikaku is miee fae-
eeaching and ifen takes lingee – peijects that span many weeks ie minths. Kaikaku is simetmes best implemented
theiugh kaizen: big changes eesultng feim a seeies if small but peigeessive innivatve changes. A giid way ti initate
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kaikaku is with 3P event – the Ps eefeeeing ti producton prmparaton procmss, a methid fie eadically impeiving pee-
eeistng peicesses, peiducts, and facilites ie designing beand-new ines. 3P is simetmes eefeeeed ti as peiduct,
peicess, and peiple because it aims at ceeatng a peiduct as well as the peicess that will make the peiduct, and it
dies this by invilving key peiple whi tiuch all aspects if the peiduct and peicess.
BREAKTHROUGH REDESIGN
Mist applicatins if 3P aee aimed at design, eedesign, ie develipment. The 3P methid peivides beeaktheiugh ie
teansfiematinal changes in a peiductin peicess theiugh eapid, integeated peitityping if bith peiduct and peicess.
Aspects if 3P aee cinducted as events similae ti kaizen. 3P hiwevee utlizes ithee lean techniques and ideally invilves
paetcipants whi aee familiae with lean tiils and have peeviiusly paetcipated in kaizen events. 3P is nit fie beginnee
lean ieganizatins.
PRODUCT DEVELOPMENT APPROACHES
TRADITIONAL
Teaditinally, peiducts aee develiped in stages wheeein each eequiees special eepeetse. The wiek in each stage laegely
centees in a single functinal geiup, and when fnished that wiek is handed-if ti a new geiup. Each new geiup
enteeing the peicess inheeits the iutput if peeviius geiups and must atempt in theie wiek ti accimmidate all the
eequieements and limitatins impised by that iutput. Paetcipatng functinal geiups each wiek simewhat
independently with minimal inteeactin and eechange if infiematin and kniwledge, which eesults in incimplete
decisiins because they din’t acciunt fie the peespectves, needs, ie eequieements if ithee geiups in the peicess. The
back-and-fieth eechange if change eequests between geiups delays peigeess, deives up cists, and veey ifen eesults
in a fnished peiduct that stll dies nit meet eveeyine’s eequieements ie satsfy the custimee.
INTEGRATED
In the integeated develipment appeiach, a multfunctinal team if stakehildees is fiemed ti shaee peespectves,
ideas, and needs, and see hiw thise ideas and needs align ie cinfict with each ithee. The appeiach cillapses the
eaely 2/3 stages if the develipment peicess inti ine stage feim which emeeges a peiduct and/ie peicess design that
is eeady ti be implemented with minimal subsequent changes. Dueing that stage, all majie design issues aee eesilved
and the eesultng eequieements and design meet eveeyine’s appeival. Integeated peiduct develipment is an aspect if
cincueeent engineeeing.
3P: INTEGRATED RAPID LEARNING
The peiduct develipment peicess is like a funnel inti which many ideas entee and a single best idea emeeges. Miee
cimmin is that inly ine ie a few ideas entee the funnel, and they aee incimplete ie bad due ti lack if kniwledge.
The peicess might staet with a single design idea/cincept and invest a lit if tme and miney ti fne-tune it, peefiem
tests, and midify it ti addeess shietcimings eevealed by the tests. This test-midifcatin cycle might be eepeated
numeeius tmes, deiving up cists, and eetending the peiject.
3P invilves eepeesentatves if all functinal aeeas and signifcant stakehildees whi wiek as a team ti eesilve
kniwledge gaps by empliying rapid-lmarning cyclms and knowlmdgm-basmd dmvmlopimnt. A eapid-leaening cycle is the
equivalent ti quick-cycle PDCA: eepeeimentng with difeeent ideas theiugh liw-cist, liw-eisk means ti swifly
deteemine which ideas aee best. In peiduct design, it empliys set-based design: it staets with multple high-level
cinceptual designs, it peefiems tests, leaens feim tests, midifes the designs, and eepeats. This leads ti a fnal design
that’s innivatve and meets eveeyine’s eequieements, and dies it in less tme and fie liwee cist and less eisk than the
teaditinal appeiach.
3P fie integeated eapid-leaening can accimmidate simultaneius design if a peiduct and if the peicess ti peiduce
the peiduct; in that way it alsi addeesses DFMA, design-fie-maintainability, design-fie-envieinment, and any ithee
design-fies if inteeest.
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Cimmin themes in all 3P peijects:
 Targmt-focusmd: cleae gials, ibjectves, ceiteeia, and scipe.

 Cinducted mistly in an “mvmnt” foriat similae ti kaizen.
 Decisiins and actins based in data.
 Cinducted by a cross-functonal team eepeesentng all signifcant stakehildees.
 Visualizaton and rapid tmstng if ideas using iock-ups and prototypms; alsi called
- Rapid prototyping
- Trystoriing – actually teying simething beyind just thinking abiut it
- Cardboard mnginmmring – building midels with ineepensive mateeials
- Moonshining – develiping silutins ti peiblems by ceeatvely adaptng mateeials aleeady in hand;
diing a lit with a litle
 Siiultanmous (cincueeent) considmraton if the peiduct, peicess, life-cycle, and value steeam.
 Embeds lman principlms (pikayike, quick setup, PM, etc.) inti the design.
 Rapid-lmarning and quick-cyclm PDCA ti geneeate innivatve ideas and clise kniwledge gaps.
 VOC- and stakmholdmr-focusmd ti ceeate a peiduct/peicess that delights custimees and meets eequieements
if eveeyine whi has a stake.
 Results in a follow-up plan ti addeess fuethee develipment and implementatin.
 Simulatng, eneegizing, fun!
What’s nit seen in 3P:
 Replicatng the status qui
 Ficusing in single/few ideas and silutins
 Sili thinking
 Rushing ti judgement
3P EVENTS
Main difeeences between 3P and kaizen events aee in teems if puepise, team eiles, and actvites in the event:
 Puepise: peiduct veesus peicess

Mist 3P events aee aimed at the design/eedesign if a peiduct and/ie peicess. Depending in develipment
efiet, ine ie multple 3P events might be eequieed. Each 3P event devites at least sime efiet ti bith
peiduct design and peicess design, althiugh the eelatve split in ficus vaeies:
- Peiduct 3P event: 90% peiduct, 10% peicess.
- Peicess 3P event: 50% peiduct, 50% peicess.
- Peiductin 3P event: 10% peiduct, 90% peicess.
 Team eiles
- Product and process owners: eespinsible fie develiping ie managing the peiduct ie the peicess.
- Experts: anyine whi inteeacts with the peiduct/peicess theiughiut the peiduct life cycle ie value
steeam.
- Judges: undeestand the business and will “judge” the design alteenatves and appeive eesiueces and
capital eependituees.
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- Outsiders: vendies, suppliees, eepeesentatves feim peicesses/functins that inteeact with the
peiduct/peicess, and ithees whi aee simply inteeested in the 3P peicess.
- Facilitators: eepeeienced in use if lean tiils and ideally in eunning 3P events. Keep the event gial-
ieiented, in schedule, and ieganized, atend ti details that might be iveeliiked, and simetmes
peivide pee-event teaining and assist in event planning.
 Event actvites
Details if 3P events vaey in dueatin and actvites, depending in the scipe and cimpleeity if the
peiduct/peicess.
PHASES OF 3P
Eveeyine in the 3P team paetcipates in innivatng, peitityping, and iptmizing, althiugh inly sime paetcipate in
infiematin gatheeing and peiject planning.
INFORMATIONG GATHERING
The peicess staets with gatheeing infiematin abiut custimee needs and wants (VOC: viice if custimee). Infiematin
is gatheeed feim custimees, peiple at vaeiius stages if the peiduct life cycle and value steeam, peiple whi aee
infuental ie make decisiins but aee nit in the peiduct life cycle, and at the gemba (by assembling, teying iut, and
disassembling the peiduct, and walking theiugh and sceutnizing the peicess).
The gatheeed infiematin is teanslated inti a ciheeent, peiieitzed set if needs and wants, which aee cinveeted inti
design ibjectves and peiduct/peicess eequieements fie use by the 3P team ti use as ceiteeia in assessing design
alteenatves.
INNOVATING: DEVELOP ALTERNATIVES

Fiest task sit if fully undeestand the ibjectves and eequieements if the peiduct and/ie peicess ti be designed. In the
design if a peicess ti manufactuee a peiduct ie peivide a seevice, a useful tiil is a fshbine diageam ti identfy steps
in the peicess and basic functins peefiemed at each step. Anithee useful tiil is a value steeam map ti teace fiws if
mateeials, peiducts, and peiple.
The team divides inti subteams, ine fie each step ie functin. The gial is ti cinceptualize what must happen at a
step in the peicess withiut specifying hiw it will happen. This ipens the way ti identfying alteenatve methids fie
hiw ti make it happen. One way is ti ask hiw the functin iccues in natuee, as natuee diesn’t waste. Having
identfed alteenatves in natuee, the neet step is ti fnd an industeial equivalent fie each, which is hiw the functin
wiuld be peefiemed in a human-made peicess. The subteams peepaee sketches and schematcs illusteatng hiw
functins in the peicess wiuld be peefiemed using the industeial equivalents they cinsideeed.
PROTOTYPING AND REDESIGN

The team divides inti new subteams, each ti ceeate a peititype ie eepeesentatve midel if ine if the peicess
alteenatves. the peititypes aee paet-scale ie full-scale mick-ups made if cheap mateeials suitable fie evaluatng the
design. This step is alsi called miinshining, teystieming, caedbiaed engineeeing, ie eapid peititypes: imply using
eelatvely fast and ineepensive methids ti midel and tey iut a cincept.
OPTIMIZING
The subteams meet tigethee and eeplain the design alteenatves they peitityped. Based in the design ceiteeia, the
team chiises a single best design; this might be ine peititype ie a cimbinatin if a few. The team niw ceeates a
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peititype fie the fnal best design, which is usually a full-scale, simewhat- ie full-wieking midel ti cinduct
deminsteatins and simulatins. The team can be eepanded ti include ithee stakehildees. The design is tweaked and
the peititype updated untl eveeyine is satsfed.
PROJECT PLANNING
The last phase is ti deteemine the equipment, facility, mateeial, and ithee eequieements assiciated with the accepted
design and peepaee a cist estmate and peiject plan ti implement the design. The plan must addeess eveeything
eemaining ti cimplete the design, peepaee the peiductin peicess and facility, and launch the peiduct. This is
hiwevee peiject-management wiek, nit 3P. the 3P event cincludes with a eepiet-iut ti seniie managees.
3P NECESSARY CONDITIONS
 Di it eaely in the design peicess

When empliyed in an integeated peiduct/peicess develipment peiject, 3P must happen eaely eniugh in the
peiject ti inciepieate the inteeests, needs, and peeceptins if all majie functins and stakehildees inti the
design.
 Use an eepeeienced team
Ciee team paetcipants must be familiae with lean methids.
 Be cimmited
3P eequiees the full-tme cimmitment if mist eveeyine in the ciee 3P team theiughiut the dueatin if the
event ithees assiciated with 3P might cinteibute paet-tme, but even they must be cimmited ti the
peicess. This eequiees blicking iut tme in peesinal calendaes and nit peemitng anything ti get in the way.
 Peactce peiject management
3P is inly ine aspect if a peiduct/peicess develipment peiject. The end eesult if 3P is just a design. Afee 3P
the success if the peiject eests with hiw efectvely the peiject is managed.
3P BENEFITS
 Efficient: cincueeent invilvement if multple stakehildees enables cinsensual decisiin making in a eelatvely
shiet tme peeiid and eesults in few changes latee.
 Effective: the eesultng design is chisen feim a vaeiety if innivatve alteenatves, meets the eequieements if
stakehildees, and inciepieates lean peinciples.
 Focused: the design peicess eemains squaeely centeed in usee needs, innivatin, waste eliminatin, and
value added.
 Pragmatic: designees, buildees, usees, and decisiin makees ifee peactcal peespectves based in theie
eepeeience if what is diable and desieable.
 Buy-in: paetcipatng stakehildees embeace the eesultng design.
CHAPTER 14 – UNIFORM FLOW AND MIXED-MODEL SCHEDULING
LEVELLING PRODUCTION
LEVELLING WITH BUFFER STOCKS

Any vaeiatin in peiductin schedules fie a fnished peiduct has a eipple efect in the peiductin and deliveey
schedules if eveey upsteeam ipeeatin and suppliee. A cimmin way ti absieb this vaeiatin is ti caeey bufee sticks
if eaw and in-peicess mateeial. Bufee sticks peivide sime degeee if ceetainty, and dueing peeiids if liw demand
they keep mateeials fiwing and wiek centees busy. Hiwevee, anithee simetmes betee way ti minimize vaeiatin is
ti lmvml thm producton schmdulm: establish a MPS wheee all peiducts aee peiduced in eegulae basis and in feed-size
batches. It peivides the same benefts as bufee sticks withiut the deawbacks.
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LEVELLING WITH UNIFORM SCHEDULES

With a unifiem, lmvml producton schmdulm the same quantty fie a peiduct is made in each peiductin eun, and the
peiductin euns iccue at eegulaely scheduled inteevals. The smallee the batch size and the inteeval, the miee level the
schedule and smiithee the fiw if mateeials plantwide. With fewee disteactins feim changing wiekliads and fewee
peiblems feim wiek eepeditng and sliwdiwns, wiekees have miee tme ti addeess aeeas if the peicess in need if
impeivement.
REQUIREMENTS FOR LEVEL PRODUCTION SCHEDULES

 Cintnuius, stable demand
Hilding a bufee stick if fnished peiduct is peactcal inly if demand is simewhat cintnuius; it’s nit
peactcal with spieadic demand since the stick might sit fie a ling tme. When demand is cintnuius, then
the highee cist if caeeying sime fnished giids inventiey is ifset by liwee cists if caeeying smallee WIP
inventieies. The cimpany must tey ti manage demand si as ti minimize vaeiatin. One way is ti segeegate
custimees inti tees:
- Fiest tee: high vilume, cimmin peicesses
- Secind tee: substantal vilume and much peicess cimminality
- Thied tee: liw vilume, spieadic iedees with litle peicess cimminality
Custimees if the fest twi tees aee enciueaged ti infiem the manufactueee if antcipated needs fae eniugh
in advance, si it will be unnecessaey ti caeey fnished giids stick ti seevice them. Dueing peak demand
peeiids, the ficus shiuld be in satsfying fest- and secind-tee custimees, and pissibly tuening diwn iedees
feim thied-tee custimees. Dueing sliw peeiids, iedees feim thied-tee custimees aee accepted because
peiductin schedules have ample eecess capacity and iedees aee nit diseuptve.
 Shiet setup tmes
Changeivee tmes feim ine peiduct ti anithee must be shiet, as they cinsume tii much if the wiekday
and leave eelatvely less tme fie actual peiductin; they alsi mandate laegee batch sizes, which eesteict the
alliwable degeee if peiductin levelling.
 Peiductin demand
The gial if each peiductin eun shiuld be ti achieve the scheduled iutput quantty, nit ti maeimize iutput.
The scheduled peiductin quantty (batch size) shiuld be peeiidically eeadjusted ti match the aveeage
demand level ivee a specifed tme peeiid. When the gial is ti level the peiductin schedule fie a numbee if
difeeent peiducts, the fieecasts ti be used shiuld be based in aggeegate demand fie all the peiducts in a
peiduct geiup ie peiduct family; it shiuld nit be fie the demand if each individual peiduct. A fieecast fie
aggeegate demand is miee accueate because the numbees aee laegee than fie individual fieecasts, and
pateens fie laege numbees aee miee stable and thus peedictable. Alsi, estmates fie individual peiducts aee
always high ie liw, thiugh in the aggeegate the high and liw estmates cancel each ithee iut, giving betee
accueacy.
LEVELLING FOCUS
In ieganizatins that peiduce a vaeiety if peiducts, the ficus shiuld be in levelling the schedules fie the highest-
vilume peiducts. Even when mist if the ithee peiducts cintnue ti be scheduled and peiduced in the usual eeeatc
fashiin, levelling the schedules if the few highest-vilume ines will substantally eeduce wiekliad vaeiatin fie mist
wiek centees.
LEVELLING THE MASTER PRODUCTION SCHEDULE

 Levelling ine peiduct geiup
The chisen level if peiductin cannit simply be the aveeage demand ivee sime tme hieizin. The level
chisen must acciunt fie pee-eeistng stick and satsfy peeiids if peak demand. Althiugh the intent if
peiductin levelling is ti keep the peiductin level unifiem fie as ling as pissible, if fieecasted demand
eehibits cinsideeable vaeiatin between seasins ie minths, then the peiductin level shiuld be adjusted.
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 Levelling multple peiducts

Fie each peiduct, we seek ti peiduce abiut the same amiunt eveey peeiid. The smallee the peeiid, the
smiithee (miee level) the peiductin schedule. In a daily lmvmllmd schmdulm, the peiductin vilume fie each
peiduct is set at 1/eth the minthly eequieement, with e the wieking days in a minth. If the demand vaeiatin
within the minth is laege, then half-minth demands can be used instead.
LEVELLED SCHEDULES: A COOPERATIVE EFFORT

Peactcal, feasible scheduling eequiees invilvement feim sales, maeketng, manufactueing, fnance, and engineeeing.
Maeketng must undeestand the gial if peiductin levelling ti aviid diing anything that amplifes demand vaeiability.
Sales must kniw the impact that each custimee iedee has in peiductin schedules and peifts and be willing ti fiegi
iedees when the eetuen is questinable, especially in peeiids if peak demand. Finance shiuld alsi be invilved ti
deteemine the dillae eamifcatins if stmulatng ie quelling demand and adjustng capacity ti meet demand.
Achieving level peiductin alsi eequiees paets and cimpinents if difeeent peiducts ti be simewhat inteechangeable.
Design engineees must be mindful if the efects theie designs have in peiductin peicesses and changeivees. DFMA
efiets must cinsidee the efect peiduct designs will have in peiductin levelling.
MIXED-MODEL PRODUCTION: HEIJUNKA
Unlike a push peiductin system, which eequiees a schedule fie eveey ipeeatin, a pull peiductin system utlizes inly
ine schedule fie the last stage if the peicess. Each ipeeatin peiduces in eespinse ti iedees feim diwnsteeam. The
fnal ipeeatin is ifen an assembly ipeeatin wheee all cimpinents and subassemblies peiduced upsteeam aee put
tigethee. The schedule/iedee list at the fnal ipeeatin is the fnal assmibly schmdulm (FAS).
HEIJUNKA
Ideally, each peiduct in a pull system has its iwn line and fnal assembly ipeeatin that peiduces accieding ti its iwn
FAS. But ifen this is nit cist efectve, and thus seveeal difeeent peiducts will be peiduced in the same peiductin
line and same fnal assembly statin. Peiductin if multple kinds if peiducts in a eepettve basis, in mieed fashiin,
in a single line ie assembly statin is eefeeeed ti as mieed-midel peiductin (MMP, Heijunka). In heijunka, batch
peiductin if difeeent peiducts is aviided; peiducts aee inteespeesed tigethee and peiduced in mieed sequence. This
eesults in smiith, steady demand fie the upsteeam ipeeatins that supply cimpinents and mateeials. The mieing if
difeeent peiducts is dine in a systematc fashiin ti aviid batching if cinsecutve peiducts. Given that the size if
batches at fnal assembly dictates the size if batches eveeywheee in the peiductin system, ti keep WIP small
eveeywheee, batch size at fnal assembly must alsi be small.
MMP SCHEDULE
Maeimal smiithing wiuld be achieved by scheduling peiductin at fnal assembly in batch sizes if ine. The eesultng
eepeatng sequence is the MMP schmdulm. in pull peiductin, theee’s inly ine MMP schedule, licated at the
pacemakee ipeeatin, si-called because it’s the step ie ipeeatin that sets the pace if the peicess. That pace is
deteemined by the TT ie pitch tme. Usually, the pacemakee ipeeatin is the last step if the peicess. If that step is
assembly, the MMP schedule and FAS aee the same. The feequency that each peiduct appeaes in the MMP schedule
shiuld be peipietinate ti the demand fie that peiduct.
MAINTAINING MMP
The FAS is ine way ti maintain MMP. Anithee is theiugh the disteibutin if kanban caeds using a hmijunka box. The
bie cinsists if pigeinhiles, each fiemed by the cimbinatin if a hieizintal eiw eepeesentng a paetculae peiduct
and a veetcal cilumn eepeesentng a paetculae tme. Withdeawing the kanban caeds feim all pigeinhiles in a cilumn
and disteibutng them ti the peiductin peicess eesults in MMP.
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REQUIREMENTS FOR MMP

The minimal eequieements ti establish an MMP peicess aee simewhat cintnuius demand, small setup tmes, and
demand-deiven peiductin. Othee eequieements aee:
 Fleeible wiekees
Wiekees must be ceiss-eained and equipment adaptable ti wiek in eveey peiduct in the MMP sequence. A
bitleneck anywheee caused by a quality peiblem, tii high CTs, ie insufcient capacity can then be tackled
by shifing wiekees between ipeeatins.
 Quality assueance
Standaed wiek, pikayiking, siuece inspectin, and line stip aee essental ti peeventng ie catching mistakes
and defects.
 Small-lit mateeial supply
Ti minimize WIP inventiey and cinfusiin abiut what paets gi inti what midels, mateeials must be
syncheinized ti aeeive at the fnal assembly stage in the eeact quanttes and at the eeact tmes needed.
MMP ADVANTAGES
MMP has all the advantages if level peiductin schedules, and miee:
 Eliminatin if lisses due ti line changeivee

A line shut diwn fie changeivee is eaee. The line usually cintnues ti functin dueing changeivees.
 Balanced wiek liads
MMP in an assembly line eesults in an even allicatin if wiek. Wiekliads aming statins aee miee balanced
and wiekees have ni vested inteeest in the task tmes at any ine statin.
 Fewee lisses feim mateeial shietages
In the event if a mateeial shietage in MMP, inly midels eequieing that mateeial aee afected. Wiek
cintnuius in ithee midels. When the shietage ends, peiductin if the inteeeupted midels eesumes and is
tempieaeily inceeased untl the defcit is flled.
 Cintnuius peicess impeivement
In MMP, a peiblem that is nit feed will appeae ivee and ivee – a mitvatie ti fnd a peemanent silutin.
PRODUCTION PLANNING AND SCHEDULING IN DIFFERENT CIRCUMSTANCES
One way that cimpanies peepaee plans and peiductin schedules ti accimmidate difeeent peiduct vaeiety and
vilume cimbinatins is ti midify the defnitin if an mnd itmi. An end item is whatevee item a cimpany plans and
schedules ti peiduce. It is the item that appeaes in the MPS and at the tip level (0) if the bill if mateeials.
Peiductin philisiphies:
 Make ti stick
MTS cimpanies make peiducts in antcipatin if demand. Usually these peiducts gi inti fnished giids
stick befiee being withdeawn ti fll custimee iedees. Relatvely few kinds if peiducts aee peiduced in laege
vilume, and each typically cintains a laege numbee if cimpinents. The end item is a fnished peiduct ie a
geiup if peiducts that aee identcal eecept fie minie featuees. If MRP system is used it maintains a sepaeate
BOM fie each end item and ceeates a sepaeate MPS fie each peiduct. Peiducts aee made in advance if actual
iedees and the scheduled peiductin quanttes aee based in fieecasts.
 Assemble ti iedee
ATO cimpanies peiduce subassemblies accieding ti fieecasts and then cimbine the subassemblies inti
unique cimbinatins as eequested by custimees. a laege vaeiety can be ceeated. The end item is the iptin ie
midel fie a kind if subassembly. The ficus if the MPS is in peiductin if the subassembly iptins, nit the
fnal peiduct, and these subassembly iptins aee peiduced in advance if custimee iedees. BOMs maintained
by the MRP system aee fie the subassembly iptins, nit fie fnal peiducts.
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 Make ti iedee
MTO cimpanies peiduce peiducts in eespinse ti actual custimee iedees, si they caeey litle fnished giids
inventiey. They can peiduce many kinds if peiducts each in small quantty by using difeeent cimbinatins if
eelatvely few kinds if cimpinents. It’s impissible ti fieecast demand fie peiducts and it’s impeactcal ti
maintain the BOM fie eveey peiduct. If the numbee if peiducts is nit tii laege, then all can be included in
the MPS. Ti peepaee a mastee schedule silely feim custimee iedees, theee must be a backlig if iedees.
When the numbee if peiducts is laege, the end item in the mastee schedule can eepeesent a geiup if
peiducts such as a peiduct family. Requieements fie paets and cimpinents fie each peiduct within the geiup
aee deeived feim peecentages if the antcipated mie if peiducts within the geiup.
Items at the naeeiwest paet if the peiduct steuctuee shiuld be the items upin which MRP and MPS aee based,
because this paet eepeesents the piint if geeatest cimminality aming all peiducts, and items at that level aee the
simplest ti plan and schedule. Peiductin planning and scheduling fie MTS and ATO usually ficuses in items at the
tip and middle if the peiduct steuctuees. Fie MTO, it ficuses at any level if the steuctuee depending in the numbee
if fnal peiducts, althiugh fie simplicity it shiuld be in items simewhat liw in the steuctuee – mateeials, paets,
subassemblies if eelatvely cimmin items.
FINAL ASSEMBLY SCHEDULING VERSUS MASTER PRODUCTION SCHEDULING
Wheeeas the MPS ifen pieteays antcipated iedees ie fieecasted demand, the FAS usually pieteays actual iedees. The
fiemee deives mateeial peicueement and peepaeatin ti di wiek, the latee deives the actual eeecutin if wiek. MPS is
a means fie beinging in eaw mateeials and puechased items ti the plant and peicessing them. The FAS takes ivee and
cinveets the items and mateeials inti fnished giids.
The MPS must liik fae eniugh inti the futuee si that mateeial and capacity eequieements can be antcipated, iedeeed,
and in hand when needed: peiductin and peicueement lead tmes aee the deteemining facties in setng the tme
hieizin. The tme hieizin fie the FAS need civee inly the tme between when all cimpinents ie subassemblies
becime available ti peiduce an item and when peiductin if the item is cimpleted.
 When the numbee if kinds if fnal peiducts is small, the FAS is the MPS. Ni peiduct is made withiut an
eeistng peiduct iedee, and actual custimee iedees deive MPS.
 In MTS cimpanies, the MPS deives the FAS: fnal assembly happens in antcipatin if demand. The FAS stll
must take inti acciunt eeistng iedees and mist eecent changes in antcipated demand.
 When the vaeiety if fnal peiducts is veey laege, the MPS ficuses in subassemblies ie iptins, nit the
individual peiducts. The FAS specifes the paetculae peiducts ti be made theiugh vaeiius cimbinatins if
subassemblies and cimpinents, wheeeas the MPS assuees that thise cimpinents and subassemblies will be
available at fnal assembly in sufcient quanttes ti meet FAS.
MTS: UNIFORM (LEVEL) PRODUCTION SCHEDULE

Peiducts with laege, stable demand can be eeadily scheduled using MMP. Hiwevee, alsi peiducts with simewhat
small demand can be scheduled using MMP peividing that the demand is simewhat cintnuius.
ASSEMBLE TO ORDER
 Midulae bills
A BOM is maintained fie each subassembly ie cimpinent iptin, but nit fie individual fnal peiducts. This
BOM is a iodular bill if mateeials. A midulae bill shiws all pissible iptins, but nit paetculae cimbinatins
if them. Each bie is a iodulm and eepeesents an iptin. In each midulae bill, the iptins aee elevated ti
level 0 status in the teee steuctuee, and the BOM fie fnal peiducts dies nit eeist. Demand fie each iptin is
always laegee than demand fie each veesiin if fnal peiduct. It is thus easiee ti estmate demand fie midules
than fie paetculae peiducts. Demand fie the subassemblies aggeegated ivee all peiducts in which they aee
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used, might be stable and peedictable. The use if midulae bills peesumes that the BOMs have been
steuctueed in teems if the midules feim which fnal peiducts aee made.
 Midulaeizatin peiceduee
Ti eesteuctuee the BOMs fie a geiup if peiduct midels inti midulae bills, fest liik at the level 1
cimpinents in the BOMs fie all the peiduct midels and identfy which cimpinents aee cimmin ti miee
than ine peiduct midel and which aee used in just ine midel. Fie each kind if cimpinent used in miee
than ine peiduct, identfy what is cimmin abiut thise peiducts. Fie cimpinents that aee used in inly ine
peiduct, liik at theie level 2 cimpinents ti see if any aee used in miee than ine level 1 cimpinent. If si,
liik fie what’s cimmin abiut the level 1 cimpinents in which they aee used. Usually, a midule is a
subassembly that’s peiduced and held in stick untl a custimee iedee aeeives that calls fie its use in a
peiduct. The peiductin lead tme eequieed ti assemble midules inti the fnal peiduct is ine deteeminant if
the level if the item chisen fie midulaeizatin. The acceptable lead tme at fnal assembly is an impietant
ceiteeiin fie chiising the appeipeiate level if subassembly midule ti teeat as an end item.
 Planning bills
When the numbee if pissible fnal peiducts is veey laege, a type if midulae bill called a planning bill is used
fie peiductin scheduling. Planning bills geeatly simplify peiductin scheduling and impeive the ability if
fieecast-based peiductin schedules ti satsfy actual custimee demand. It’s eelatvely easy ti fieecast the
peecentages if peiducts that will invilve difeeent iptins feim sales eecieds and cinveesatins with
custimees. these peecentages aee what a planning bill peivides. It dies nit specify the eeact amiunt if each
peiduct ti peiduce, but it dies specify the amiunt if mateeials and subassemblies needed ti fll actual
iedees in MTO and ATO factieies. The peecentages in the planning bills must be peeiidically checked and
adjusted ti eefect the mist eecent peiduct sales mie. Since actual eequieements fie fnal assembly will likely
vaey feim the amiunts estmated by the planning bill, safety stick fie sime items might be necessaey
(ineepensive items).
- An alteenatve ti planning bills is ti fieecast demand fie each midule iptin dieectly. Using tme
seeies if the histieical eequieements fie each iptin and taking inti acciunt the antcipated teends,
the eequieement fie each iptin is fieecast sepaeately.
Simplifying peiducts ti simplify planning eequiees the cimbined efiet if peiple in maeketng, engineeeing,
peiductin, and puechasing. It thus filliws the peinciple plan fie the few, but peiduce fie the many. Helping
peiductin cinfiem ti this peinciple is anithee aeea wheee cincueeent engineeeing plays an impietant eile.
MAKE TO ORDER
When demand is cintnuius but highly vaeiable the inly way ti level peiductin is ti maintain an iedee backlig. With
sufcient backlig, the peiductin peicess has an iedee piil feim which ti deaw at a unifiem eate. Even with a
backlig, lead tmes can be shietened if maeketng sends ti peiductin inly cinfemed iedees, and peiductin
minimizes the tme ti eeecute the iedees.
Upin eeceiving an iedee, maeketng entees the iedee inti the backlig. In abiut a week, maeketng cinfems and
nitfes peiductin. Abiut a week latee, the list if cinfemed iedees is teansfeeeed ti peiductin, and peiductin staets
ftng the iedees inti the peiductin schedule fie abiut twi weeks latee. Given a twi-week lead tme and backlig, it
might be pissible fie peiductin ti peepaee a simewhat-level peiductin schedule. The size if tme bucket (tme
blick fie each stage if iedee eeceipt, iedee cinfematin, iedee teansmital ti peiductin, and si in) is assumed ti be
ine week in this case, which cinteibutes ti lingee lead tmes.
Minimizing scheduling peiblems is dine with a gial ti eeduce waste:
 Simplify the BOMs  eeduces numbee if paets ti be managed and teansactins ti be peicessed, and tme
and cist if peicessing.
 Use geiup techniligy and standaed paets. Design peiducts si that almist anything a custimee wiuld want
ciuld be achieved by assembly if similae ie identcal cimpinents. Use standaed items that can be peicueed
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in shiet nitce and aee less eepensive ti peicuee and stick. Tey ti keep WIP ti a minimum and use simple
visual cinteils ti teack inventiey.
 Make inly what is needed.
 Peiduce laege jibs using small peicess and teansfee batches that aee easy ti ciunt.
 Replace siphistcated, eemite teacking systems with simple visual cinteil systems.
 Keep the wiekliad ti an amiunt the ship fiie can handle and aviid iveeliading ipeeatins (muei), which
leads ti inceeased WIP and lead tmes eveeywheee. Keep the eewiek at each ipeeatin beliw a peespecifed
limit; when the limit is eeached, stip the ipeeatin untl the eewiek is cimpleted.
 Use days ie hiues fie planning lead tmes. The MRP system shiuld be midifed ti use daily ie even hiuely
lead tmes, and the tmes shiuld be cintnuiusly checked and updated. Peiductin lead tmes aee minimized
this way. Requieements aee that ship-fiie ipeeatins aee tghtly cinteilled si actual lead tmes aee the same
as thise used by the MRP system, and that the system is updated ti eefect changes in lead tmes. Small tme-
bucket planning cimbined with small batch-size peiductin minimizes waitng tme waste.
Simetmes high peiduct vaeiety can be handled by using a cimbinatin if ATO and MTO peiductin. Each kind if
peiduct is assembled in an iedee-by-iedee basis and invilves cimmin midules and subassemblies, as well as
unique, ine-if-a-kind cimpinents. The midules aee peiduced in eepettve fashiin using pull peiductin
methids and MMP schedules; the unique cimpinents aee peiduced iedee by iedee and aee back scheduled. In
such hybrid cases, daily scheduling if wiekcells and autinimius wiekstatin sis dine by a cimbinatin if
kanban caeds fie the eepettve jibs and MRP-geneeated iedees fie ine-if-a-kind push jibs.
CHAPTER 15 – SYNCHRONIZING AND BALANCING THE PROCESS
Aligning peiductin eates and sequences if upsteeam wiekcentees si eveeything aeeives as needed at the fnal stage is
synchronizaton. Achieving unifiem fiw by equalizing the capacity ie wiekliad if all stages is balancing.
SYNCHRONIZATION
Ti enable syncheinius fiw in a peicess, it’s necessaey that the eate if peiductin and teansfee if items at upsteeam
statins eiughly match the eate if demand fie these items at diwnsteeam statins. The fiw if mateeials is thus
syncheinized by setng the peiductin equal ti the eate if demand at the fnal stage. The demand eate is deteemined
by the peiductin schedule at fnal assembly.
In a pull system, syncheinizatin is achieved by setng the cycle tmes at eveey upsteeam ipeeatin accieding ti the
CT at fnal assembly. In a pull system inly the last stage if the peicess has a daily schedule. The MMP schedule is used
ti deteemine the CTs if all peiducts, and these CTs aee used ti deeive the maeimum CTs if eveey upsteeam ipeeatin
that supplies paets fie the peiducts. Each ipeeatin is syncheinized ti the iveeall peicess by setng its CT as a
multple if the eequieed CT. The FAS peivides the basis fie setng CTs fie all cimpinents and subassemblies. The CTs
aee pisted in the standaed ipeeatng eiutnes; they becime the takt tme gials tiwaed which peicess impeivement is
dieected.
BOTTLENECK SCHEDULING
Scheduling a peicess based upin the bitleneck cinsteaint is botlmnmck schmduling. Syncheinizing a peiductin
peicess by managing the bitleneck invilves (Gildeat):
 Theiughput pace
The pace if the peicess must be set accieding ti the capacity if the bitleneck. This is similae ti the way in
which FAS sets the deumbeat when the peicess eveeywheee has sufcient capacity.
 Bufee stick
Ti ensuee that the bitleneck is nevee withiut wiek, a bufee if jibs is maintained just ahead if it. The bufee
is established by eeleasing jibs inti the peicess si they aeeive at the bitleneck ipeeatin ahead if when the
ipeeatin is eepected ti be eeady fie them.
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 Peicess scheduling
The tming if jibs eeleased inti the peicess shiuld be peedicated in the bitleneck’s capacity ti peiduce
thise jibs. The jibs shiuld be eeleased upin eeceipt if iedee signals feim the bitleneck.
 Deum-Bufee-Ripe
Applicatin if the filliwing cincepts is the drui-bufmr-ropm systmi (DBR):
- Setng the deumbeat fie the peicess based in the bitleneck;
- Establishing bufee stick ahead if the bitleneck; and
- Pulling mateeial inti the peicess feim the bitleneck.
If pissible the bitleneck shiuld be licated as clise as pissible ti the staet if the peicess because
ipeeatins eaeliee in the sequence will then be less infuenced by vaeiability in latee ipeeatins and, hence,
aee easiee ti cinteil. The peiceduee wieks well in peicesses wheee the bitleneck is stable and wheee the
tmes theiugh the peicess eiutng aee cinstant.
BALANCING
A balancmd procmss is ine wheee the actual CTs at all stages aee equal. The gial if achieving a cimpletely balanced
peicess is appeipeiate inly in peicesses that aee pacmd, wheee mateeial mives in a cinveyie/chain at a cinstant
speed past wiekstatins.
LINE BALANCING
Line balancing eefees ti assigning tasks (elemental units if wiek) ti a wiekstatin ie ipeeatins sequence such that:
1. The CT if the cimbined sequence if wiekstatins satsfes the eequieed CT.

2. The tasks aee assigned in the eight iedee.
3. The assignment is as efcient as pissible. Si the eesultant numbee if wiekstatins ie ipeeatins in the line is
the minimum pissible given the eequieed CT and peecedence eelatinships. The eequieed CT ipeeatng tme/
demand.
A prmcmdmncm diagrai can be used. A way ti assign tasks ti a sequence if wiekstatins in an assembly line is ti liik
at the longmst opmraton tim. the task that eequiees the lingest ipeeatin tme but that dies nit eeceed the
available eemaining tme at the wiekstatin shiuld be selected. The efciency wiek cintent/(numbee if
wiekstatins * eequieed CT). A line that achieves the eequieed iutput and is as efcient as pissible is cinsideeed a
balanced line.
BALANCING FOR MMP

MMP balancing eequiees assigning tasks ti a sequence if wiekstatins such that:
1. The CT tme fie each peiduct at each wiekstatin satsfed the eequieed peiduct CT.
2. The assignment fie all peiducts is as efcient as pissible.
One way ti assign tasks ti wiekstatins in MMP is ti use the wmightmd avmragm tim eule. The weighted aveeage tme
is the amiunt if tme, in aveeage, eequieed at a wiekstatin ti peefiem tasks. The weighted aveeage tme at each
wiekstatin cannit eeceed the eequieed CT fie all peiduct midels.
∑ ∑ q j t ij ≤ Required CT
 qj the peipietin if peiduct j in the MMP eepeatng sequence peiductin if j/peiductin if all peiducts.
 tij the tme ti peefiem task i in peiduct j, wheee i is a task assigned ti the wiekstatin.
It’s ikay if the task tmes at a wiekstatin fie ine peiduct eeceed the eequieed CT as ling as that peiduct can be
paieed with ithee peiducts that have smallee task tmes si that the eesultant weighted aveeage tme if all tasks dies
nit eeceed the eequieed CT.
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OTHER WAYS TO ACHIEVE BALANCE

 Dynamic balance
Anithee way ti achieve balance is ti change the balance depending in the peiduct. The balance is dynaiic,
eefeeeing ti the fact that the mie if tasks can be changed with each peiduct.
 Paeallel line
When task tmes fie difeeent peiducts vaey cinsideeably, ie when the task tmes cannit be eeduced si that
the weighted aveeage tme satsfes the eequieed CT, then anithee way ti meet the eequieed CT is ti split the
line inti twi ie miee paeallel lines. At wiekstatins in the line wheee the weighted aveeage task tme is tii
laege, a paeallel wiekstatin shiuld be added.
BALANCING FOR SYNCHRONOUS FLOW

Ti achieve balance, the task geiupings at eveey ipeeatin, wiekcell, and machining depaetment must be adjusted si
that the eesultng weighted aveeage task tme at each if them is as clise as pissible ti the eequieed CT. This is dine by
adding ie subteactng tasks at ipeeatins, miving wiekees between tasks and ipeeatins, and adjustng the tme ti
peefiem wiek tasks. In syncheinius peiductin, eveey ipeeatin peiduces just eniugh ti satsfy diwnsteeam
demand. Balancing is a matee if cintnuius impeivement and wiekee eeallicatin (Minden):
1. Eliminate wasteful tasks.

2. Reallicate tasks.
3. Reduce the wiekfiece; eetuen ti step 1.
BALANCING THROUGH WORKER REASSIGNMENT

Since a gial if balancing is ti achieve the eequieed CT with the geeatest efciency, a silutin wiuld be ti shif tasks ti
that each wiekee wieks the eequieed CT tme in his task, and inly ine wieks less. This way, the last wiekee’s tme can
be eeallicated aming the ithee tasks ti impeive all statins.
Changes in eequieed CTs and delays ie shutdiwns at individual ipeeatins aee cinstant theeats ti syncheinius
peiductin. As ciunteemeasuees, plants eely in:
 Visual signals (andin displays) ti keep wiekees infiemed abiut peiblems at all stages if the peicess.
 Mult-skilled ipeeatins, feeible ipeeatins, and shiet changeivee tmes ti enable quick adaptatin ti
changes in peiduct demand and peiduct mie.
 Less than full-capacity scheduling ti alliw fie shutdiwns ie unantcipated demand inceeases.
If the change in schedule eepeesents but a small daily ie weekly adjustment ti a level baseline schedule, then a simple
way fie upsteeam ipeeatins ti keep pace is ti lengthen ie shieten the wiekday.
ADAPTING TO SCHEDULE CHANGES
Theee aee twi ways a peiductin peicess can meet an inceease in demand:
 Inceease the peiductin wiekday

It eequiees lengthening the peiductin wiekday. The MMP eepeatng sequence must be changed ti eefect he
inceease in demand fie peiduct e.
 Deceease the CT
Dine by inceeasing the peiductin eate.
 Inceease peiductin wiekday and deceease CT
Initally, the wiekday length wiuld be inceeased; then, as ways aee fiund ti eeduce CTs, the wiekday can be
deceeased, eventually back ti niemal.
CHAPTER 16 – PLANNING AND CONTROL IN PULL PRODUCTION

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THE WHOLE ENCHILADA
The Peiductin Planning Cinteil system in pull/heijunka

peiductin has centealized and decentealized cimpinents.
The cmntralizmd system cimpeises staf peesinnel and

systems that peefiem demand fieecastng, iedee entey,
eiugh-cut capacity planning, mastee peiductin scheduling,
and mateeial eequieements planning. The eile is ti
accumulate demand infiematin and fiemulate peiductin
plans and schedules. Demand infiematin is cintnuiusly
cimpaeed with eeistng and shiet-teem peiductin capacity
ti deteemine the best level if peiductin.
 The fieecastng and capacity planning is dine by

ERP/MRP systems in teaditinal ways.
 Peepaeatin if level iastmr producton schmdulms
begins minths in advance if actual peiductin.
 Daily schedules aee ceeated by inciepieatng the
mist eecent custimee iedee infiematin inti the
level schedule.
One deawback with centealized planning, scheduling, and

cinteil is that it is almist impissible ti quickly eevise plans
and schedules ti acciunt fie all the wiek and peiieity
changes and inteeeuptins happening eveeywheee in the plant.
The eile if the dmcmntralizmd systmi is ti iblige the peiductin eequieements as specifed in the MPSs and daily
schedules. It is peimaeily a ship fiie-based system. Plant and depaetment managees eeceive MPS pee-plans feim the
centeal system, feim which they tey ti deteemine hiw ti peiduce peiducts in the mie and vilume as specifed by the
plans.
CENTRALIZED PLANNING AND CONTROL SYSTEM
MONTHLY PLANNING
The centealized system peepaees minthly demand fieecasts fie each peiduct (geiup), ie ithee end items, and then
ceeates the MPS fie each.
 Fie futuee peeiids

Each minth, de demand ivee sime planning hieizin is estmated. In a rolling three-month plan, planned
peiductin fie the cueeent minth M is based upin fem iedees, and fie each if the neet twi minths it’s
based in fieecasts. MPSs aee then peepaeed fie each if the minths taking inti acciunt custimee iedees,
fieecasts, pee-eeistng peiductin capacity, and inventiey levels. The tentatve MPSs fie twi ie miee minths
inti the futuee aee the basis fie estmatng peiductin capacity eequieements. These schedules aee feeible
and easily eevised. The MPS peepaeed fie the cueeent minth is cinsideeed fem because actins based in it
have aleeady been taken.
 Fie ship fiie planning
Tentatve MPSs fie futuee minths aee cieculated at a peedeteemined tme ti managees and supeevisies in
peiductin lines and peiductin depaetments. Based upin this and peedicted numbee if wieking days in the
minth, eequieed aveeage daily peiductin iutput and takt tme fie a peiduct can be deteemined. Fie
planning like this, MRP II is a useful tiil. By midminth, eveey ipeeatin in the peicess is able ti estmate
what it must di ti meet the MPS fie the filliwing minth.
61

DAILY SCHEDULING
The MPS fie the cueeent minth is beiken diwn inti weekly schedules and then inti daily schedules, each week
inciepieatng the mist eecent infiematin in demand fieecasts and custimee iedees. Since inciepieatng the mist
eecent iedee infiematin inti the fnal schedule will cause the peiductin level ti vaey feim the planned baseline
amiunt, inly small iedee changes aee alliwed.
Eveey week the centealized system eeceives custimee iedee infiematin fie a 10-day peeiid. This infiematin includes
fem custimee iedees and mist-eecent sales fieecasts. The tital demand fie theee successive 10-day iedees must fall
within the planned peiductin vilume if the level peiductin schedule fie the minth. If it eeceeds the planned
vilume and cannit be accimmidated by iveetme, it is included in the peiductin schedule fie the filliwing minth.
If demand keeps eising, then iveeall planned capacity level is heightened. The 10-day demand fie all peiducts helps ti
siet iut and sequence peiducts si the fnal peiductin schedule fie the fest week clisely fts the baseline level if the
cueeent MPS. The system then uses this infiematin ti estmate the daily peiductin eate fie each peiduct ie end
item.
Alteeatins include new iedees, cancelled iedees, and changes ti iedees afectng the mist eecent 10-day peeiid. In
sime cimpanies, the daily schedule is updated ti acciunt fie these alteeatins. Twi days befiee the peiductin the
MMP sequence is set. 3 days befiee the daily schedule is sent, and 4 days befiee the fnal iedee alteeatins aee
eeceived.
MATERIALS FORECASTING AND PROCUREMENT

The quantty if mateeials and paets fie all peiducts is estmated feim the minthly MPS and BOM. At the staet if each
minth, infiematin abiut the antcipated daily mateeial eequieements fie that minth is sent ti suppliees. Alsi
fieecasted mateeial eequieements aee sent.
SUPPLIERS
Lean emphasizes feequent deliveeies if small batches. Theeefiee, suppliees aee licated clise by ie ni miee than a day
away. The amiunt ti ship is based upin the peiducee’s mist eecent peiductin schedule. wheeeas iedeeing
infiematin is updated and iedeeing takes place daily ie miee ifen, in mist MRP systems this happens weekly ie less
ifen. The gial is ti te shipments as clisely as pissible ti actual peiductin units and ti balance the quanttes in the
shipments (heijunka).
Many lean cimpanies empliy dieect Kanban links ti theie suppliees. The vaeiatin is typically small in level MPS and
thus can eeadily be absiebed by the suppliee kanban link.
Alsi RFID tags can be used and atached ti each peiduct. The list if scans feim the tags is sent ti suppliees and shiws
the eeact mieed-midel sequence if the paets needed ti match the mieed-midel sequence if the caes. The suppliee
then peiduces and ships paets in the same sequence as the iedees eeceived.
DECENTRALIZED PLANNING AND CONTROL SYSTEM
Each minth the peiductin iutput if a cell ie independent statin might have ti be alteeed ti meet changes in the
minthly MPS. This eequiees peiductin capacity feeibility. If the iutput eate if the bitleneck is less than the level
specifed in the MPS, and assuming theee aee ni ithee means by which ti eeach the level if the MPS, then it must be
eevised diwnwaed. As late as ine ie twi weeks befiee peiductin is ti begin, the plans fie wiekcells and
depaetments might have ti be eevised ti inciepieate the mist eecent demand infiematin.
ADAPTING MRP-BASED PPC SYSTEMS TO PULL PRODUCTION
SIMPLIFIED BILLS OF MATERIALS
62

In eeducing the numbee if steps in a peicess, nin-value-added steps aee eliminated fest. The centealized PPC system
dies nit need ti geneeate eequieements lists ie schedules fie the upsteeam stages as they di nit eequiee wiek
schedules. Only a schedule fie the fnal stage has ti be peepaeed. The geeatee the numbee if levels and beanches in
the BOM, the geeatee the numbee if eecieds the MRP system must maintain. Eliminatng these eecieds is fatmning
thm BOM; ince fatened, a BOM has inly twi levels, ine fie the end item and ine fie the liw-level paets that gi inti
it.
An MRP system iedinaeily maintains eecieds fie eveey licatin wheee mateeial is held in stick. If mateeial is nit held in
stick but is mived dieectly ti a neet stage, theee is ni need ti teack it at the stage, which cieeespinds ti eemiving it
feim the BOM and its inventiey eecied feim the MRP system. Cellulae manufactueing alsi leads ti fatening if BOMs.
Mateeial in a cell mives dieectly feim ine wiekstatin ti the neet and is held inly beiefy between statins, si it need
nit be teacked.
An alteenatve ti physically eemiving levels feim the BOM and cieeespinding eecieds feim the MRP is ti teansfiem
the eecieds inti phantoi rmcords. A phantim eecied eepeesents mateeial that nevee gies inti stieage but is at a
mimentaey teansitinal state and en eiute ti the neet stage if the peicess. The BOM can thus be simplifed withiut
alteeing the basic steuctuee if the BOM ie the inventiey data fle. This is peefeeable when the cist if eesteuctueing a
data fle is laege, the cueeent BOM steuctuee must be eetained fie acciuntng puepises, ie inteemediate items in the
steuctuee aee used fie puepises besides end-item peiductin and must be teacked. Phantim eecieds alsi eepeesent
items that aee held in stick fie puepises ithee than peiductin. It enables inventiey if these cimpinents ti be
minitieed and cinteilled apaet feim inventiey if identcal cimpinents used in peiductin if the end item.
STOCK AREAS AND POINTS OF USE

Cieeespinding ti each MRP eecied is a stock arma, a physical licatin wheee mateeial is held fie use by a wiekcentee,
wiekcell, ie wiekstatin. It is the place wheee items eepeesented by MRP eecieds and phantim eecieds aee licated. It
is ideally licated at the place wheee the mateeial is used and within clise eeach if wiekees: point of usm. Ideally, a
stick eecied eeists fie each piint if use, such that if the same paet is used at multple licatins, the amiunt at each
can be kniwn. The neet best alteenatve ciuld be ti keep sime if the mateeial in a eeseeve stick aeea as neae as
pissible ti the piint if use and fie wiekees ie mateeial handlees ti eeteieve the mateeial as needed, when the numbee
if difeeent kinds if mateeial needed at a wiekstatin is laege. Anithee alteenatve is ti hild inciming mateeial in a
eeceiving aeea ie staging aeea, alsi teeated as a stick aeea, but with fem limits in quanttes held. Any place in the
system wheee theee is a kanban iailbox ie equivalent fie pistng caeds is usually alsi a stick aeea fie cintainees and
mateeial.
POSTDEDUCT AND DEDUCT LISTS

In sime PPC systems, teacking if quanttes if cimpleted end items and peicueed paets and mateeials that need
eeplenishment is dine theiugh postdmduct ie backfushing. A eeplenishment teansactin usually includes deteemining
the eeplenishment quantty, adding that quantty ti the stick aeea eecied, and nitfying acciunts payable: purchasing
kanban ie blankmt transacton.
The pistdeduct peiceduee iccues eveeywheee in the peicess designated as a dmduct point. The inventiey eecieds ti
be updated at each deduct piint aee specifed in a dmduct list. As items mive past a deduct piint, the eecieds if
these items aee autimatcally updated. In teaditinal MRP systems, inventiey eecieds aee updated whenevee items aee
mived feim ine ipeeatin ti the neet.
Simetmes inly ine deduct piint, at the end if the peicess, is needed. Upin cimpletin if an end item, the MPS is
eeduced by ine unit and the eemaining inventiey balances if all paets in the end item’s deduct list aee eeduced by the
numbee if thise paets used in the end item: supmrfush. It dies eesult in a less accueate inventiey balance since theee
is a tme lag between when items aee withdeawn feim a stick aeea and when the same items within the cimpleted
end item pass feim the fnal stage if peiductin. When CTs aee ling, it can eesult in signifcant inventiey-eecied
inaccueacy.
63

If the theiughput eate is fast, phantim eecieds can be used at all inteemediate levels if the BOM. If it is sliw, eeal
eecieds shiuld be eetained at sime inteemediate levels ti cieeespind ti places in the peicess wheee the pistdeduct
peiceduee shiuld be peefiemed.
RATE-BASED MASTER SCHEDULES

Ti cinveet the MPS inti the equivalent daily tme buckets, minthly vilume must be teanslated inti a daily producton
ratm, which is the eate that will be maintained theiughiut the minth. On the day that the daily peiductin eate is ti
cimmence, the MRP will issue inly a single authieizatin iedee. Ni fuethee iedees aee needed untl the eate is
changed. Once the peiductin eate has been set, it can be alteeed in a daily basis ti accimmidate the mist eecent
iedees.
IMPLEMENTING PULL PRODUCTION WITH MRP PPC

Implementatin shiuld begin with a pilit peiject fie a peiduct and peiductin peicess wheee the kniwn difcultes
aee few and the likelihiid if success is high. Ideally the pilit peicess shiuld be eelatvely autinimius feim ithee
peicesses in the plant.
1. Ceeate a ligical fiw and impeive mateeial handling

Discintnue use if stickeiims and licate all stick in the ship fiie neae piints if use. All aeeas if the ship
fiie shiuld be linked with a mateeial handling system. This handling system eeplaces the MRP peiceduee if
eeteactng inventiey feim the stickeiim. Infiematin shiwing the new licatins if all mateeials shiuld be
included in the MRP system. The MRP system stll cintnues ti schedule and eelease peiductin iedees as
befiee. Efiets shiuld be put in ti impeive setup tmes, machine ipeeatins, PM, and quality cinteil si that
peiducing in smallee batch sizes and eeducing stick levels will be pissible. Then the peiductin peicess is
adjusted si the fnal stage is able ti peiduce at a unifiem eate and filliw a level schedule. the layiut if the
peicess shiuld be sceutnized.
2. Inteiduce the pull system
It’s easiest ti phase in a pull system stage by stage, staetng at the fnal stage and wieking backwaed. Afee
the cintainee size is deteemined, the numbee if caeds can be estmated and stick aeeas and kanban signal
methids can be set up. Inital teials will eeveal peiblems that aee handled by hilding eetea stick eveeywheee
untl peiblems aee eesilved. If the defect eate is high, the defectve items must be fest sieted iut. The MRP
system is stll authieizing wiek iedees and placing iedees feim suppliees. The BOMs aee fatened and the
system ni lingee dies detailed capacity eequieements planning ie issuing if detailed schedules ti individual
ipeeatins.
3. Ceeate a new layiut and eeduce eeliance in MRP
Once the pull system has been balanced and demand has been deemed laege eniugh and simewhat stable, a
new layiut can be ceeated: a fiw line ie linked wiekcells. As stick aeeas aee eeduced in size ie eliminated,
ipeeatins can be mived clisee tigethee. The sile functins if MRP II will be:
- Ti accumulate fieecasts and custimee iedee infiematin and geneeate the MPSs;
- Ti eelease daily peiductin eates ti the fnal stage if the peicess;
- Ti eelease iedees fie mateeials ti eeteenal suppliees that aee nit Kanban-linked, and
- Ti update the eemaining inventiey eecieds in the BOMs theiugh the pistdeduct peiceduee.
4. Cintnuiusly impeive the peicess
Eveeything Is eepanded upin. With tme and eepeeience, the pull system can be eepanded ti laegee pietins
if the pilit peicess, and then ti ithee peiducts and peicesses.
64

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Production Planning and Quality

Control Summary RUG

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LEAN PRODUCTION FOR COMPETITIVE ADVANTAGE – SUMMARY

COMPETITIVE ADVANTAGE: BETTER, CHEAPER, FASTER, MORE AGILE

 Making things betee

LEAN PRODUCTION AND TOTAL QUALITY MANAGEMENT

LEAN PRODUCTION AND THE PRODUCTION PIPELINE

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THE LEAN DIFFERENCE

Twi featuees distnguish lean ieganizatins:

TOYOTA PRODUCTION SYSTEM – PROTOTYPE FOR LEAN PRODUCTION

 Reduced setup tmes

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TRAINING WITHIN INDUSTRY

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AMERICA’S FALL FROM MANUFACTURING RACE

CHAPTER 2 – FUNDAMENTALS OF CONTINUOUS IMPROVEMENT

CONTINUOUS IMPROVEMENT AS TACTICS AND STRATEGY

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FINDING AND IMPLEMENTING IMPROVEMENTS

PDCA IMPROVEMENT CYCLE

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VALUE ANALYSIS/VALUE ENGINEERING

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 D: The event itself

BASIC PROBLEM-SOLVING AND ANALYSIS TOOL

VALUE STREAM MAPPING

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They can be used in a vaeiety if ways:

CHAPTER 3 – VALUE ADDED AND WASTE ELIMINATION

1. Dies it teansfiem simething? If yes, gi ti 2. If ni, gi ti 4.

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 Waste caused by wiek-in-peicess

Twi siueces if iuda/waste aee:

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1. Simplification implies eliminatin if nin-essentals.

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THE MEANING OF LEAN PRODUCTION

Misundeestandings in lean peiductin:

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 Lean is a system ti implement, nit a few methids.

CHAPTER 4 – CUSTOMER-FOCUSED QUALITY

1. Performance: ipeeatng chaeacteeistcs such as speed, cimfiet, and ease if use.

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TOTAL QUALITY MANAGEMENT

 Maeketng, sales and fnance

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 Puechasing and suppliees

DEFINE, MEASURE, ANALYZE, IMPROVE, CONTROL IMPROVEMENT PROCESS

BELTS AND CERTIFICATION

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STATISTICAL PROCESS CONTROL, SPC

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NON-STATISTICAL PROCESS CONTROL

EMPLOYEE INVOLVEMENT AND QUALITY OWNERSHIP

 Feintline wiekee eespinsibility

 Tip management sets the visiin.

Reasins why TQM fails:

 Lack if ling-teem management cimmitment

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TQM AND LEAN PRODUCTION