You are on page 1of 26

Lean Manufacturing & Just-in-Time

"The most dangerous kind of waste is


the waste we do not recognize." Shigeo Shingo

Reducing Waste: Push versus Pull System

Raw
Material
Supplier

Final
Assembly

Customer
FGI

PUSH

Raw
Material
Supplier

Final
Assembly

Customer
FGI

PULL
Information Flow
Material Flow

Push System
Every worker maximizes own output, making as many
products as possible
Pros and cons:
Focuses on keeping individual operators and workstations
busy rather than efficient use of materials
Volumes of defective work may be produced
Throughput time will increase as work-in-process increases
(Littles Law)
Line bottlenecks and inventories of unfinished products will
occur
Hard to respond to special orders and order changes due to
long throughput time

Pull System
Production line is controlled by the last operation,
Kanban cards control WIP
Pros and cons
Controls maximum WIP and eliminates WIP
accumulating at bottlenecks
Keeps materials busy, not operators. Operators work
only when there is a signal to produce.
If a problem arises, there is no slack in the system
Throughput time and WIP are decreased, faster
reaction to defects and less opportunity to create
defects

Features of Lean Production


WHAT IT IS

WHAT IT DOES
Attacks waste

Management philosophy
Pull system though the plant

Exposes problems and bottlenecks


Achieves streamlined production

WHAT IT ASSUMES

WHAT IT REQUIRES

Employee participation

Stable environment

Industrial engineering/basics
Continuing improvement
Total quality control
Small lot sizes

Kaizen
5

A Little History!
Ford: Design for manufacturing
Start with an article that suits and then study to find
some way of eliminating the entirely useless parts.
This applies to everything a shoe, a dress, a
house, a piece of machinery, a railroad, a
steamship, an airplane. As we cut out useless parts
and simplify necessary ones, we also cut down the
cost of making. ...But also it is to be remembered
that all the parts are designed so that they can be
most easily made."

A Little History!
Ohno put ideas into practice systematically
When bombarded with questions from our group on
what inspired his thinking, Ohno just laughed and said
he learned it all from Henry Ford's book."

TPS: Toyota Production System


A system that continually searches for and eliminates
waste throughout the value chain.
Views every enterprise activity as an operation and
applies its waste reduction concepts to each activity from Customers to the Board of Directors to Support
Staff to Production Plants to Suppliers.

Elimination of Waste

Muda

Acronym CLOSED MITT


Complexity
Labor
Overproduction
Space
Energy
Defects

Materials
Inventory
Time
Transportation

Elimination of Waste
1. 5S
2. Group technology
3. Quality at the source
4. JIT production
5. Kanban production control system
6. Minimized setup times
7. Uniform plant loading
8. Focused factory networks

10

Minimizing Waste 5S
Good factories develop beginning with the 5Ss.
Bad factories fall apart beginning with the 5 Ss.
- Hirouki Hirano

Japanese
Seiri
Seiton
Seiso
Seiketsu
Shitsuke

Translation
Proper arrangement
Orderliness
Cleanliness
Cleanup
Discipline

English
Sort
Simplify
Sweep
Standardize
Sustain

Minimizing Waste 5S
A place for everything and everything in its place
Not just a housekeeping issue
Critical foundation for

Setup reduction
Pull systems
Maintenance
Inventory management

Minimizing Waste: Group Technology


Using
UsingDepartmental
DepartmentalSpecialization
Specialization(Job
(JobShop)
Shop)for
forplant
plantlayout
layout
can
cancause
causeaalot
lotof
ofunnecessary
unnecessarymaterial
materialmovement
movement
Note
Notehow
howthe
theflow
flowlines
linesare
aregoing
goingback
backand
andforth
forth
Saw

Saw

Saw

Grinder

Grinder

Heat Treat

Lathe

Lathe

Lathe

Press

Press

Press

Minimizing Waste: Group Technology


Revising
Revisingby
byusing
usingGroup
GroupTechnology
TechnologyCells
Cellscan
canreduce
reduce
movement
movementand
andimprove
improveproduct
productflow
flow
Grinder
Saw

Lathe

Lathe

Press

Lathe

Press

Heat Treat

Grinder
Saw

Lathe

Minimizing Waste: JIT

Only produce whats needed


The opposite of Just In Case philosophy
Ideal lot size is one
Minimize transit time
Frequent small deliveries

???

Pros

Cons

Minimal inventory

Requires discipline

Less space

Requires good problem solving

More visual

Suppliers or warehouses must be close

Easier to spot quality issues

Requires high quality

Minimizing Waste: JIT


Inventory
Hides Problems
Machine
downtime
Scrap
Work in
process
queues
(banks)

Paperwork
backlog

Vendor
delinquencies Change
orders

Engineering design
redundancies

Inspection
backlogs
16

Design
backlogs
Decision
backlogs

Minimizing Waste Quality at the


Source
Do it right the first time
Call for help
Andon
Immediately stop the process and correct it vs.
passing it on to inspection or repair

Jidoka

Minimizing Waste Kanban


Signaling device to control flow of material
Cards
Empty containers
Lights
Colored golf balls
Etc

Minimizing Waste Setup Times


Long setup times drive:
Long production runs
Large lots
Long lead times

JIT requires small lots and minimum kanbans


Setup reduction
Focused efforts
Problem solving
Flexible equipment

Minimizing Waste Plant LoadingHeijunka


Suppose
Supposewe
weoperate
operateaaproduction
productionplant
plantthat
thatproduces
producesaasingle
single
product.
product. The
Theschedule
scheduleof
ofproduction
productionfor
forthis
thisproduct
productcould
couldbe
be
accomplished
accomplishedusing
usingeither
eitherof
ofthe
thetwo
twoplant
plantloading
loadingschedules
schedulesbelow.
below.
Not uniform

Uniform

Jan. Units

Feb. Units

Mar. Units

Total

1,200

4,300

9,000

Jan. Units

3,500
or
Feb. Units

Mar. Units

Total

3,000

3,000

3,000

9,000

How
help
save
labor
costs?
Howdoes
doesthe
theuniform
uniformloading
loading
help
save
labor
costs?
21

Minimizing Waste
Focused Factory
Networks

Coordination
System Integration

These
Theseare
aresmall
smallspecialized
specialized
plants
plantsthat
thatlimit
limitthe
therange
rangeof
of
products
productsproduced
produced
(sometimes
(sometimesonly
onlyone
onetype
typeof
of
product
productfor
foran
anentire
entirefacility)
facility)

TPS Respect for People


Level payrolls
Cooperative employee unions
Subcontractor networks

Keiretsu

Bottom-up management style


Quality circles (Small Group Problem Solving)

TPS 4 Rules
1.

All work shall be highly specified as to content, sequence,


timing, and outcome

2.

Every customer-supplier connection must be direct, and


there must be an unambiguous yes-or-no way to send
requests and receive responses

3.

The pathway for every product and service must be simple


and direct

4.

Any improvement must be made in accordance with the


scientific method, under the guidance of a teacher, at the
lowest possible level in the organization

Lean Implementation
Total Quality
Management
Product
Design

Flow
Process

Continual Inventory
Reduction

Empowered Workforce
Problem Solving
Performance Measurement

Involved
Suppliers

Stable
Schedule

Kanban
Pull

Summary and Conclusions


Lean Production is the set of activities that achieves
quality production at minimum cost and inventory
The flow of material is pulled through the process by
downstream operations
Lean originated with the Toyota Production System
and its two philosophies elimination of waste, and
respect for people
CLOSED MITT forms of waste