1 Lean Office - Pull Kanban, Just in Time, Standardized Work

2 Outline Why Pull? Why Pull? The Problem of Inventory The Problem of Inventory Just In Time Just In Time Kanban Kanban One Piece Flow One Piece Flow Standard Work & Takt Time Standard Work & Takt Time Smoothing & Leveling Smoothing & Leveling

3 Push Vs. Pull Scheduling Push Scheduling Push Scheduling traditional approach traditional approach “move the job on when finished” “move the job on when finished” problems - creates excessive inventory problems - creates excessive inventory Pull scheduling Pull scheduling coordinated production coordinated production driven by demand (pulled through system) driven by demand (pulled through system) extensive use of visual triggers extensive use of visual triggers (production/withdrawal kanbans) (production/withdrawal kanbans)

4 Objective of JIT Produce only the products the customer wants Produce only the products the customer wants Produce products only at the rate that the customer wants them Produce products only at the rate that the customer wants them Produce with perfect quality Produce with perfect quality Produce with minimum lead time Produce with minimum lead time Produce products with only those features the customer wants Produce products with only those features the customer wants

5 Japanese word for card Japanese word for card Authorizes downstream operations based on physical consumption Authorizes downstream operations based on physical consumption May be a card, flag, verbal signal etc. May be a card, flag, verbal signal etc. Used often with fixed-size containers Used often with fixed-size containers Kanban quantities are a function of lead-time and consumption rate of the item being replenished (min qty=(demand during lead-time + safety stock)/ container quantity) Kanban quantities are a function of lead-time and consumption rate of the item being replenished (min qty=(demand during lead-time + safety stock)/ container quantity) Kanban

6 Standardized work consists of three elements: Standardized work consists of three elements: Takt time Takt time Matches the time to produce a part or finished product with the rate of consumption. It is the basis for determining workforce size and work allocation Matches the time to produce a part or finished product with the rate of consumption. It is the basis for determining workforce size and work allocation Standard in-process inventory Standard in-process inventory The minimum number of parts, including units in machines, required to keep a cell or process moving The minimum number of parts, including units in machines, required to keep a cell or process moving Standard work sequence Standard work sequence The order in which a worker performs tasks for various processes The order in which a worker performs tasks for various processes Once a standard work is set, performance is measured and continuously improved Once a standard work is set, performance is measured and continuously improved Standardized Work

7 Leveling production also helps to avoid the problem of excess inventory of finished vehicles. The vehicle plants make the different types of cars at about the same pace that customers buy those cars. They can adjust the pace of production as buying patterns change. As the result, dealers only need to maintain a minimal inventory of cars to show and sell. Production Smoothing / Leveling Parts Factory Car FactoryDealer