PR517 LEAN MANUFACTURING

LEAN MANUFACTURING TECHNIQUES – LECTURES 5&6

DR . R . A .EK ANAYAK E
DE PA RTMENT OF M A N U FAC TU RING A N D I N DU STRI AL E N GI NEER ING
Refe ren ce – Le a n i n Pra ct ice by Le a n S i x S i gma Comp a ny
Section 3 - Lean Manufacturing Techniques
– Value Stream Mapping
– Production smoothing concepts
– Just in Time Production (JIT), Kanban systems
– Single piece flow concept
– Single Minute Exchange of Dies (SMED)
– Process visualization
– Standard Work
– A3 Thinking for Problem Solving
Production smoothing concepts

• Production in Accordance with Market Demand.

• To minimize idle times of workforce and equipment and
work-in-process
• “Production smoothing is the cornerstone of the Toyota
Production System”
Takt Time
Takt comes from the German word for beat or pace.
The pace with which we need to produce in order to meet customer demand.

𝑻𝒊𝒎𝒆 𝒂𝒗𝒂𝒊𝒍𝒂𝒃𝒍𝒆
𝑻𝒂𝒌𝒕 𝑻𝒊𝒎𝒆 =
𝑪𝒖𝒔𝒕𝒐𝒎𝒆𝒓 𝑫𝒆𝒎𝒂𝒏𝒅

Example:
A shift lasts 7½ hours, including a 45-minute lunch break. During a shift, 920 units are ordered. A
shift consists of 5 employees.
Line Balancing – Yamazumi

Step -01
 All the process times of the work cells are below the Takt time, and there is flow.
 Every 30 seconds, the work cell will pass on the unfinished product to the next work
cell for further processing.
 As long as customer demand is constant, there will be no queues. The lead time of
this process will be 210 seconds (30 seconds * 7 work cells).
 Spaghetti Diagram
• A spaghetti diagram is a visual analysis of the route of a product, a document or the
employees. Various angles can be selected, depending on the starting point.
• The focus is on the physical movement of products or
people, in particular on the logical sequence from a
logistical perspective.
• For that reason, a workplace is selected as a starting
point, with a focus on unnecessary movements in order
to identify waste (Transport, Motion, Process complexity
(Over-processing). It can be a department, warehouse,
operating-theatre or an entire floor.
The next step is to determine how the workplace can be organized in such a way
as to ensure that the routes are limited to a minimum and represent a logical
order.
Flow
• There is 'Flow' when all the steps in a production process follow one another
without waiting periods, defects or having to redo things – every step adds
value.

• One piece flow (Make one move one)

• No inventories in between process
• Shortest lead time
• Perfection at every process (continuous improvement)
Create Flow
Specialization
We chop the process into smaller bits, buy large machines,
give people specialist tasks,
organize those specialist tasks in departments,
appoint managers to lead the departments, who we then judge based on local
efficiency and
we start producing large batches

Specialization is not a bad thing – often, it is the only way we can work efficiently.
Example
Suppose that 300 letters have to be mailed. There are 4 process steps that need to be carried
out;
(1) folding the letter,
(2) putting the letter in the envelope,
(3) closing the envelope, and
(4) stamping the envelope.
How do you organize the process?
Solution 1: Specialization:
Create a production line:
(a) 1 person folds, (b) 1 person puts them in envelopes, (c) 1 person paste the
envelope and (4) 1 person puts the stamp on the envelope.

Solution 2: Multi-skilled operators - One piece ‘Flow’:

Everyone does everything (say 4 people – give them each 75 letters, envelopes
and stamps)

Drawbacks of specialization?
Specialization can lead to the following
wastes;
 Large machines, large batches
 Large inventory of raw materials, work in progress and finished products
 A lot of transportation of materials and products
 Departments operating within an island culture (often with conflicting CPI's)
 Defects are often passed on to the next step in the process
One piece ‘Flow’
When process steps are connected,
 teamwork improves,
 problems become clear immediately,
 feedback about hick-ups in the process and the pressure to solve problems increases.
 it makes problems visible in the process chain

Lean aims for “One Piece 'Flow'” or “Single Piece 'Flow'”, in which all attention is
focused on the production of one product or service – a batch of 1
(in practice, there is a gradual development towards smaller batches).
If 'Flow' is not possible, minimal buffers are used (supermarkets)
 Advantages of ‘Flow’
 Lower (intermediate) inventory
 Higher quality (fewer defects) – defects are identified immediately and may not be passed on to the next step in the process
 Multi-skilled & motivated employees
 Shorter conversion times (SMED)
 Production based on customer demand (Takt time)
 Higher predictability
 Bird's eye view of the process, without complex tracking & tracing
 Higher flexibility, process is easier to adjust
 Less turbulence
 Faster delivery to the customer!
 Improved cash flow because customers can be billed more quickly
Single Piece Flow

• The concept of having things flow smoothly through the system

one by one, like water, without any holdups

• Also termed as one piece flow / production

Batch Production Vs. Single Piece Flow Production
Requirements for Single Piece Flow

1. Working standing up: in order to manage multiple processes, the

workers must work standing up.
2. Multi-process handling by multi-skilled workers: since multi-
process handling means operating several different machines, the
workers must be multi-skilled.
3. Autonomation: this means autonomation in the sense of
decoupling the workers from their machines.
Benefits of Single Piece Flow
 Builds in Quality
 Creates Real Flexibility
 Creates Higher Productivity
 Frees up Floor Space
 Improves Safety
 Improves Morale
 Reduces Cost of Inventory
Challenges
• Does not work without reducing the set-up time.
• There is a limit to how small the lot size can be.
Where to Start?
• Calculating the takt time for our products or services and ensure
that all cycle times are either less than, or equal to, the takt time.
• Base the process capacity or equipment capacity on the takt time.
• Introduce a pull system of working.
• Ensure that the layout of our organization supports one-piece flow.
LEAN Tools used to create ‘Flow’
•VSM
•Theory of Constraints
•Little's Law – work-in-progress analysis
•Takt time
•Line balancing
•Standardised work
•Single Minute Exchange of Die
•Jidoka (halting the line whenever there is a defect or when the flow is in danger)
•Heijunka – Workload Levelling
PULL System
The pull system works like the shelves in a supermarket.

As soon as a product is taken off the shelf and scanned at the check-out counter, the product is
ordered from the supplier, making sure that it can be back on the shelf the next day.
This means that inventory is minimal and directly connected to customer demand.
EXIT INITIATES START
Advantages of PULL
• Substantial reduction in inventory (both the finished product and work-in-
progress, WIP):
No inventory of products that may never be sold
No “fire sale” promotions with large discounts that reduce profit margins and upset the
market
 Reduction of warehouse capacity
Fewer actions to manage the inventory (counting, moving, etc.)
Less capital being tied up

• No rush jobs to process backed-up orders

• No unclear polluted systems and transactions that are on hold
LEAN Tools used to create PULL
• Kanban
• Supermarkets, Just in Time
• Visual management
• Two-bin principle
Compare the PUSH and PULL system
 PULL System in Toyota
• Only the final assembly line can accurately know the necessary timing and
quantity of parts required, the final assembly line goes to the preceding process
to obtain the necessary parts in the necessary quantity at the necessary time for
vehicle assembly.
• The preceding process then produces the parts withdrawn by the subsequent
process.
• Further, each part-producing process withdraws the necessary parts or
materials from preceding processes further down the line.
• It is not required during a month to issue simultaneous production schedules to
all the processes. Instead, only the final assembly line can be informed of its
changed production schedule when assembling each vehicle one by one.
Takt Time
Takt comes from the German word for beat or pace.
The pace with which we need to produce in order to meet customer demand.

𝑻𝒊𝒎𝒆 𝒂𝒗𝒂𝒊𝒍𝒂𝒃𝒍𝒆
𝑻𝒂𝒌𝒕 𝑻𝒊𝒎𝒆 =
𝑪𝒖𝒔𝒕𝒐𝒎𝒆𝒓 𝑫𝒆𝒎𝒂𝒏𝒅

Example:
A shift lasts 7½ hours, including a 45-minute lunch break. During a shift, 920 units are ordered. A
shift consists of 5 employees.
Process Cycle Efficiency (PCE)
Used to measure the efficiency of a process.

𝑪𝒖𝒔𝒕𝒐𝒎𝒆𝒓 𝑽𝒂𝒍𝒖𝒆 𝑨𝒅𝒅𝒆𝒅 𝑻𝒊𝒎𝒆

𝑷𝑪𝑬 = ∗ 𝟏𝟎𝟎%
𝑷𝒓𝒐𝒄𝒆𝒔𝒔 𝑳𝒆𝒂𝒅 𝑻𝒊𝒎𝒆

Example
Processing a municipal permit for a building extension takes 10 weeks, while only 9 hours are spent
adding value.
The PCE of this process is ?
Little’s Law
A much-used calculation in Lean projects is Little's Law (first described by Professor John Little in
1952).
w𝒐𝒓𝒌 𝑰𝒏 𝑷𝒓𝒐𝒈𝒓𝒆𝒔𝒔 W𝑰𝑷
𝑷𝑳𝑻 = =
𝑶𝒖𝒕𝒑𝒖𝒕 𝑬𝒙𝒊𝒕 𝑹𝒂𝒕𝒆

Examples:
1. The work in progress is 40 quotations, the back office makes 4 quotations per day. How long
does the customer have to wait for the quotation? What is the PLT / lead time of this
process?
2. Quotation department of a large bank, the customer wants to receive a quotation within 3
days. The exit rate of the back office is 15 per day. What is the maximum amount of work in
progress for the bank to meet the customer’s requirement – a lead time of 3 days?
 Examples
Given the following Information:
A process has an exit rate of 10 units/day, the current WIP is 200 units and the Value Add Time =
8 hours. It is a 1 shift operation of effectively 8 hours working time.
If I install a generic pull system?
i. What should WIP cap (in units) ultimately be, when they aim is to realize a PCE of 10%?
ii. How much WIP should I let flow from the process, before allowing new work in the process?
 JUST –IN-TIME (JIT)
• A ‘pull’ system of providing the different processes in the assembly sequence
with only the kinds and quantities of items that they need and only when it
needs them.
• Production and transport take place simultaneously throughout the
production sequence – inside and between all the processes.

• The primary objectives of just-in-time production are to save warehouse

space and unnecessary cost-carrying to improve efficiency, which means
organizing the delivery of component parts to individual workstations just
before they are physically required.
In order to inform all processes about necessary
timing and quantity of parts production, Toyota
uses the KANBAN.