Lean Production Lean Manufacturing

Slides:



Advertisements
Similar presentations
The Toyota Way How They Became #1 Presented by Adrienne Larson.
Advertisements

Copyright EMS Consulting Group, Inc Creating an Environment for Continuous Improvement Darren Dolcemascolo EMS Consulting Group,
CAPA is Lean p Toyota mantra: People + Brilliant processes = Amazing results Always: Add value Smooth flow Pull not push Make decisions slowly,
Lean Supply Chains Chapter Fourteen McGraw-Hill/Irwin
JIT, TPS, and Lean Operations
Lean Systems Defined Just-in-time (JIT): an older name for lean systems Toyota Production System (TPS): another name for lean systems, specifically as.
6/8/2015 Page 1 © Copyright David Meier & Jeffrey Liker Lessons Learned from the Toyota Way Presented by: Jeffrey K. Liker University of Michigan Western.
Operations Management Just-in-Time Systems Supplement 12
JIT/Lean Production. ©2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield Chapter 15, Slide 2 Some.
Chapter 16 - Lean Systems Focus on operations strategy, process, technology, quality, capacity, layout, supply chains, and inventory. Operations systems.
S12-1 Operations Management Just-in-Time and Lean Production Systems Chapter 16.
JIT/Lean Production Chapter 13.
Lean and Sustainable Supply Chains. 1. Describe how Green and Lean can complement each other. 2. Explain how a production pull system works. 3. Understand.
Copyright 2006 John Wiley & Sons, Inc. Beni Asllani University of Tennessee at Chattanooga Lean Systems Operations Management Chapter 16 Roberta Russell.
Benefits of Lean Manufacturing: To benefit from Lean Manufacturing, the processes must be maintained consistently and correctly. Everyone involved must.
Lean operations and JIT
Basics of Lean How to See and Eliminate Waste Slides courtesy of Doug Fingles, MERC.
Value Stream Mapping.
Operations Management
JIT and Lean Operations
JIT/Lean Production Chapter 13. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Define Just-in-Time.
Toyota Production System (TPS) MGMT- E5060 Operations Management.
Just-in-Time (JIT) and Lean Systems Chapter 7. MGMT 326 Foundations of Operations Introduction Strategy Quality Assurance Facilities Planning & Control.
McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. 15 JIT and Lean Operations.
© 2004 by Prentice Hall, Inc., Upper Saddle River, N.J Operations Management Just-in-Time and Lean Systems Chapter 16.
Manufacturing.  Manufacturing is all about converting raw material into consumer or industrial products.  A firms manufacturing competency is based.
Lean Basics Dewey Warden.
Managing the Toyota Way
Process Improvement An Overview of Lean Agenda: The origin of Lean
JIT – Just-In-Time Production
LeanSigma ® Fundamentals Module 8 –Lean Leadership and Getting Started.
JIT and Lean Operations
XYZ Company 1. XYZ Company 2 Lean Manufacturing Is a way of life. It is a never ending process…… Its tools need to tailored to meet XYZ Company’s needs.
Just-in-Time and Lean Systems
Companies must provide customers with world-class quality, delivery and service. Customers won’t accept anything less. The globalization of markets means.
1 Employability skills (a) Employers value people who: fit well into their team and workplace use initiative to solve routine problems work productively.
Lean Production and the Just-in-Time Philosophy. Lean Production Elimination of All Waste – Waste is Anything that Does Not Add Value to Product. Continuous.
McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. 15 Lean Operations.
JIT and Lean Operations Group Members:. JIT/Lean Production Just-in-time (JIT): A highly coordinated processing system in which goods move through the.
Operations Fall 2015 Bruce Duggan Providence University College.
© The McGraw-Hill Companies, Inc., Just-in-Time and Lean Systems.
Lean Manufacturing. Why do this? Lets look at jobs on Monster.com that refer to Lean - ployer/?WT_srch=1&s_kwcid=job%20ope.
McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Lean Supply Chains Chapter 12.
Lean Manufacturing. Lean Enterprise - A business system for organizing and managing product development, operations, suppliers and customer relations.
Lean Production Strategy Lean Manufacturing Strategy
CHAPTER 9 Lean Manufacturing.
JIT/Lean Production Chapter 13.
Chapter 12 Lean Production. Chapter 12 Lean Production.
Lean Supply Chains Chapter 14
Mel Wendell – Mountain Pointe High School
Lean Manufacturing Series
Lean operations and JIT
IENG 451 / 452 Just In Time Processes: Cells, Stores, Kanban, Demand
McGraw-Hill/Irwin ©2009 The McGraw-Hill Companies, All Rights Reserved
Lean Manufacturing Basic Overview XYZ Company.
Pull Manufacturing and Just In Time
Operations Management
Welcome to my presentation
JIT/Lean Production ©2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield.
Just-In-Time and Lean Production
Introduction to Materials Management
MODERN TRENDS IN PRODUCTION ENGINEERING
The Toyota Way 14 Management Principles
Lean production Müge umut
Japanese Production Methods
Just In Time.
Chapter 12 Lean Production. Chapter 12 Lean Production.
Contemporary Issues in Industrial and Management Engineering
Just in time and Lean are philosophies on how to do work
LEAN PRODUCTION BY Alfredo Moran Johnny Rojas January, 2006.
Presentation transcript:

Lean Production Lean Manufacturing

Lean Production/Lean Manufacturing JIT Production Lean Production Lean Manufacturing Toyota Production System (TPS) Pull system The first implementation - Toyota Motor Company, Mr Taiichi Ohno, 50-ties of last century

Lean Manufacturing Lean Manufacturing – a strategy of manufacturing based on planned elimination of all waste and on continuous improvement of productivity (p = outputs/inputs) Lean Manufacturing allows to produce more using less resources Lean Manufacturing allows to produce more products with less materials, labour, time and energy Comparing performance at Toyota Takaoka facility with GM Framingham facility (late 80 – ties in 20th century) GM FRAMINGHAM TOYOTA TAKAOKA Assembly hours per vehicle 40,7 hours 16 hours Defects per 100 vehicles 130 defects 45 defects Average inventory leveles 2 weeks 2 hours In 80ties and 90 ties, the statistics in Polish plants where much more worse then these in GM factory at the table

Lean Manufacturing dates In early 1950s Toyota Motor Company starts to implement new approach to manufacturing, called today TPS – Toyota Production System In 1970s – some western companies start to recognize the specific of TPS. The new production strategy was called Just In Time (JIT) In 1980s – several successful implementation of JIT systems in western companies. In 1991 „The Machine that Changed the World” was published by Womack, Jones and Roos. They introduced there the term „lean manufacturing” In 1980s and 1990s JIT/Lean Manufacturing was started to be implemented in all automotive companies in the world and is implementing there until now. Also in other industries (electronic industry, home appliances industry) Lean Manufacturing is successfully implementing. In 1995 - foundation of The Lean Enterprise Institute in USA In 1998 „Learning to see. Value Stream Mapping to Create Value and Eliminate Muda” was published by Rother and Shook In 2004 Liker published the book The Toyota Way: 14 Management Principles (it has no connection with anorection)

Lean Production Goals To improve customer service through producing and delivering the right product, in the right quantity, with the right quality, at the right time and at the right place Lean Production goals: Zero inventory Zero defects Zero breakdowns (zero overdue supplies) Zero set up times Zero transportation Zero lead time (value adding time = lead time) Lot size = 1

Principles of Lean/JIT Production (Robert W. Hall – Zero Inventory) Make what customer wants Make how many customer wants Make immediately when requirement appears Make with perfect quality Make without waste Make with people involvement, empowerment and development

Lean Manufacturing perspective on waste A key principle of the Lean Manufacturing philosophy is never ending effort to eliminate waste What is waste? Waste is performing any activity that does not add value to the product. Value is everything for what a customer is ready to pay. Major sources of waste in production process (jap. Muda): Waste of overproduction Waste of waiting Waste of transportation Waste of overprocessing Waste of inventory Waste of motion Waste of defects (making products that require rework or must be scrapped) Wast of underutilization a knowledge of employees

WASTE MUDA Waiting Defects Overproduction Transportation Inventory Inappropriate processing Inventory Unnecessary motion

Overproduction Produce more then the next process needs What is overproduction? Produce more then the next process needs Produce erlier then the next process needs Produce quicker then the next process Overproduction Waiting Inventory Handling Defects Extra work Surface

The Material Flow Cycle Raw materials - Wood Final product - Boards What percentage of lead time (cycle time) has value adding time in a typical enterprise ?! (<1%, 5%, 10%, 20%, 40%, 60%, 80%)? Zero waste in a process means: Value adding time = Total lead time

Process Efficiency Indicator - Adding value activity - Transportation - Inventory - Products control - No action, waiting ( + + + + ) Value adding activities time PEI = ------------------------------- 100% Total inventory time Operations management objective: increase PEI How to increase PEI ? Reduce and eliminate no value adding activities

Traditional and Lean approach in improving productivity Lead time Adding value Waste Traditional approach: - work harder, longer and quicker - add devices and people Lean/Kaizen: improve value stream to eliminate waste

Lean Manufacturing and inventory Inventory level Inappropriate Lay out Machines' breakdown Unsynchronized production Wrong work methods Inflexible employees Long set up times Long set up times Defects

Elements of Lean Manufacturing System/TPS (Toyota House) JUST IN TIME Takt time & One piece flow Kanban SMED Pull system Integrated logistics JIDOKA Andon Poka – yoke TPM 5 WHY CONTINOUS IMPROVEMENT Waste elimination 5 S Problem solving, 5”WHY” Genchi genbutsu PEAPLE & TEAM WORK HEIJUNKA (SMOOTH PRODUCTION) VISUAL MANAGEMENT WORK STANDARISATION THE HIGHEST QUALITY, THE LOWEST COST, THE SHORTEST LEAD TIME, THE HIGHEST WORK SAFETY, THE HIGHEST MORALE VISION OF LEAN PRODUCTION SYSTEM

14 Toyota Way Management Principles

14 Toyota Way Management Principles Section I: Long-Term Philosophy (long term thinking) Principle 1. Base your management decisions on a long-term concept , even at the expense of short- term financial goals. Section II: The right process will produce the right results Principle 2. Create a continuous process flow to bring problems to the surface. Principle 3. Use “pull” systems to avoid overproduction (kanban system) Principle 4. Level out the workload (heijunka) Principle 5. Build a culture of stopping to fix problems, to get quality right the first time (jidoka) Principle 6. Standardized tasks and process are the foundation for continuous improvement and employee empowerment. Principle 7. Use visual control so no problems are hidden. Principle 8. Use only reliable, thoroughly tested technology that serves your people and processes. Section III: Add Value to the Organization by Developing your People Principle 9. Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others. Principle 10. Develop exceptional people and teams who follow your company’s philosophy . Principle 11. Respect your extended network of partners and suppliers by challenging them and helping them improve. Principle 12 . Go and see for yourself to thoroughly understand the situation Section IV : Continuous solving root problems drives organizational learning Principle 13. Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly (nemawashi). Principle 14. Become a learning organization through relentless reflection (hansei) and continuous improvement (kaizen).

Pull system versus push system Push system – an approach to manufacturing control that pushed materials through processing operations based on a schedule and demand forecasts. An planned order of product or component is „launched” into work centres according to the schedule. MRP is a push system. Pull system – an approach to manufacturing control that moves materials based on actual needs at successive work centres. As finished products are made, they pull the appropriate components through processing operations Materials and components are also pulled from suppliers. Kanban is a pull system.

Kanban system Pull control system Kanban system allows to avoid an overproduction Kanban is Japanese word which means – card. In Kanban control system, kanban card is a signal. Kanban System types: Single kanban system – only production kanban card Dual kanban system- production kanban card and transportation kanban As final assembly line works according to final assembly schedule, the cells, lines and work centers supply the final assembly line in response to pull signal - kanban card. The pull signal: a raised hand, a golf ball, an empty box (container) Kanban system creates self regulated circles of customers and suppliers „Two box system” used in inventory control is an example of pull control system. The empty box is a signal (order) to produce, fullfill and supply the next box (container)

Single Kanban System (one card Kanban System) Full container Supplier Customer KP I Cell I Cell II KPII S KPII KPII KP I KP I KPII KPII KPII KPII KPIII KPIII KP I KPII Container with Kanban Card KPII Production Kanban

Dual Kanban System (Two Card Kanban System) Outbound stock point Cell I Inbound stock point Cell II Transportation kanban table Production kanban table KPI Cell II Cell I KPII Production kanban Container with kanban card KTII KT I Transportation kanban 5 6 1 2 3 4 7

Dual card Kanban system Worker at cell II takes the next container, detaches a transportation card T and places it in a transportation box Material handler takes T kanban(s) from transportation box and goes to cell I. Material handler removes the production kanban from a full container and places it in the production kanban box . The transportation kanban is fixed to the full container. The full container with T kanban is taken to cell II The P kanban at cell I authorizes the production and fullfillment the next container. The P kanban is fixed to the container when it is full. The full container with P-card is moved to outbound stock point.

System KANBAN (number of kanban cards calculation) where: K – total number of kanban cards equel to total number containers D – average demand per units of time, planned usage for the parts (units/day) T – time it takes to produce and move a container of parts to the downstream C – capacity of a standard container (in units) G – a safety factor, expressed as a decimal (for example, 0.20 represents a 20% safety factor) The Lean philosophy of always seeking improvement will lead companies to try to decrease inventory. This is done by reducing the number of kanban cards .

Example of kanban card

KANBAN System Assembly work station Subassembly supplier AABCAABCAABCAACB AABCAABCAABCAACB AABCAABCAABCAACB Final products assembly line Assembly work station Kanban System Subassembly supplier Kanban System Components supplier Kanban System Materials supplier

Lean Building Blocks Principles for Implementing Lean Manufacturing KAIZEN Quick Changeover Standardized Work Batch Reduction Teams Quality at Source 5S System Visual Mgmt Plant Layout POUS Cellular/Flow Pull/Kanban TPM Value Stream Mapping

Principles of Lean Implementation Value. Specify value from the standpoint of the end customer. Value stream. Identify all the steps in the value stream for each product family, eliminating whenever possible those steps that do not create value. Flow. Create continuous flow - make the value creating steps occur in tight sequence so the product will flow smoothly toward the customer Pull. As flow is introduced, let customers pull value from the next upstream activity. Perfection. As value is specified, value streams are identified, wasted steps are removed, and flow and pull are introduced, begin the process again and continue it until a state of perfection is reached in which perfect value is created with no waste.

Steps of Lean Manufacturing implementation Principles of Lean The five-step thought process for guiding the implementation of lean techniques is easy to remember, but not always easy to achieve: Specify value from the standpoint of the end customer by product family. Identify all the steps in the value stream for each product family, eliminating whenever possible those steps that do not create value. Make the value-creating steps occur in tight sequence so the product will flow smoothly toward the customer. As flow is introduced, let customers pull value from the next upstream activity. As value is specified, value streams are identified, wasted steps are removed, and flow and pull are introduced, begin the process again and continue it until a state of perfection is reached in which perfect value is created with no waste.

Value stream mapping “Whenever there is a product for a customer, there is a value stream. The challenge lies in seeing it.” -Learning to See, Lean Enterprise Institute

Designing the future value stream: Value stream mapping Value stream mapping is an inherent method of Lean implementation in an enterprise Designing the future value stream: Identify families of products Identify customer value. Create a current state value stream map. Recognition of waste Create a future state value stream map

Current state value stream map

Future state value stream map Kanban system