1. This module is part #2 of the Lean introduction
This module is part #2 of the Lean introduction. Although no formal course background is required, a bit of production control, layout and methods engineering is very beneficial.
9/18/2018

2. Readings
“Even in a topsy-turvy world, just-in-time supply works,” by James P. Womack and Daniel T. Jones. Automotive News, Oct. 29, 2001.
“Lean Time, Lean Measures,” by Michael San Filippo, January/February 2002 Interview.
“Building the Lean Machine,” Advanced Manufacturing, January 2000.
Chapter 18 of Computer Aided Manufacturing, Wang, H.P., Chang, T.C. and Wysk, R. A., 3rd Edition (2004 expected)
There is no good reference here. The web site is not operational at this time. Hopefully by August 2002, the introductory chapter will be available.
9/18/2018

3. Exercise Readiness Assessment Test A.K.A. RAT
AS A INDIVIDUAL, look at the detailed requirements for a production process. We will look at the Case Study and Key holder.
What is the operation time for the Key holder at each workstation in a production system?
How is this time related to the time required to produce a key holder?
What is the difference between production time and setup time?
Open Book / Open Notes
9/18/2018

4. Exercise Readiness Assessment Test A.K.A. RAT
AS A TEAM, take 3 minutes to provide a written to answer the following questions:
Did all operations require the same time?
What is best operation to focus attention of for the key holder?
Why?
Closed Book / Closed Notes
9/18/2018

5. Objectives
To apply the principles of flow to a complex manufacturing system
To design the layout of process, product and cellular manufacturing systems
To implement a pull system in a manufacturing environment
To analyze efficiencies of reduced batch sizes
The flow of this presentation is some basic background of factory flow and layout. The advantages of the basic layout are presented and then some characteristics of these systems are provided, I.e., you can not “pull” with a process layout. Cells simplify things by reducing the problem size. There is no detail on how to form cells or organize production control. These will come later.
9/18/2018

6. Exercise (3 – 5 minutes) Individually answer the following questions
What percent of time does a part spend having “value added” to it while the part is on the shop floor?
What are the top 5 causes of “non-value added” times?
9/18/2018

7. Quick Change Over QCO is used to:
Reduce time needed to change over from one set-up to another.
Improve first time capability.
Improve repeatability of change over operations
9/18/2018

8. Total Productive Maintenance
TPM is a structured approach to maintaining equipment and insuring stable manufacturing processes.
Everybody gets involved.
9/18/2018

9. What to Expect in the Future
Training
Communication
Elimination of Waste (NVA)
Continuous Improvement
Visual Factory
More efficient layouts
Roles & Responsibilities
More involvement / ownership
Long term GROWTH!!
9/18/2018

10. Types of Manufacturing Layout
Process Layout
Product Layout
Cellular Layout
9/18/2018

11. FUNCTIONAL LAYOUTS ARE INEFFICIENT
Lathe
Milling
Drilling L L M M D D D D L L M M
Grinding L L M M G G
Assembly L L G G A A
Receiving and
Shipping A G G A
PROCESS-TYPE LAYOUT
9/18/2018

12. Process Layout Characteristics
Advantages
Deep knowledge of the process
Common tooling and fixtures
Most Flexible -- can produce many different part types
Disadvantages
Spaghetti flow -- everything gets all tangled up (can not “pull” materials with this layout)
Lots of in-process materials
Hard to control inter-department activities
Can be difficult to automate
9/18/2018

13. PRODUCT LAYOUT Part #1 L L M D G A A Receiving L M G Part #2 L M D
Shipping
Part #3
9/18/2018

14. Product Layout Characteristics
Advantages
Easy to control -- input control
Minimum material handling -- frequently linked to the next process
Minimal in-process materials
Can be more easily automated
Disadvantages
Inflexible -- can only produce one or two parts
Large setup
Duplicate tooling is required for all cells
9/18/2018

15. CELLULAR LAYOUT Cell #2 Cell #1 D D M I D I L Cell #3 M M L L D M I
9/18/2018

16. Cellular Layout Characteristics
Advantages
Control is simplified
Common tooling and fixtures
Flexible -- can produce many different part types - a part family??
Disadvantages
Setup ??
Need to know about many different processes
9/18/2018

17. Evidence of Progress toward Lean
Smaller lot sizes
Increased capacity / throughput
Higher inventory turns
More available floor space
Improved workplace organization
Improved quality : reduced scrap / re-work
Reduced inventories : raw, WIP, FG
Reduced lead times
Greater gross margin
Improved participation & morale
9/18/2018

18. Lean Mfg Implementation Timeline
LMA – 6 to 12 weeks
(Prototype line/experimentation?)
Management commitment – 4 to 6 months
Prep for implementation – 6 to 8 months
Model line development – 6 months to 1 year
Program expansion – 1 to 3 yrs
Beginnings of the ‘Lean Enterprise’ – 3 to 5 yrs
9/18/2018

19. Price Increase Bigger Profit Cost + Profit = Price Some Profit 3
Price to Sell 1 2 3
Bigger Profit 2
Some Profit
Cost to Produce 1
Show left hand side first,
1. Determine Cost to produce an item
2. Add profit you want
3. This gives you Price to the customer
If you want to increase your profit under this system, how do you do it? >>> Raise the price to the customer. reveal right hand side
This is what most companies operated in the 60’s and 70’s, just pass the cost along to the customer.
But as the markets get more and more competitive, do you think this strategy will still work?? NO!!
So if Cascade wants to increase their profits now a days, how could they do it??
Discussion
Transition to next slide......
Cost + Profit = Price
9/18/2018

20. Cost Reduction Bigger Profit Price - Cost = Profit Some Profit
Price to Sell 1 1
Some Profit 3
Bigger Profit 3
Cost to Produce 2 2
Show left hand side first,
1. Determine Price customer is willing to pay
2. Subtract the Cost to produce an item
3. This leaves your profit
Under this system if you want to increase your profit, how do you do it? >>> Lower Cost.
How do you suppose you lower Cost??
Elimination of Non-Value Added Activity.
Elimination of Waste !!
What exactly is waste? Discussion
Price - Cost = Profit
9/18/2018

21. What value is Added by: Storing Counting Sorting Moving
Acknowledgments
Invoices
What value is
Added by:
Expediting
Rework
Inspecting
Discussion
None of these activities adds Value.
Some are important or necessary, but None add value.
Loading / Unloading
Scrap
Returns to Suppliers
Receiving Report
Repackaging
9/18/2018

22. Toyota Production System
Best Quality - Lowest Cost - Shortest Lead Time Through shortening the Production Flow by Eliminating Waste
Just in Time “The right part at the right time in the right amount”
Jidoka “Built in Quality”
Manual / Automatic Line Stop
Labor-Machine Efficiency
Error Proofing
Visual Control
Continuous Flow
Pull System
Level Production (Heijunka)
Flexible, Capable, Highly Motivated
People
Operational Stability
Standardized Work
Total Productive Maintenance
Robust Products & Processes
Supplier Involvement
9/18/2018

23. Just in Time Manufacturing
Produce according to customer demands:
What is needed
When it is needed
In the quantity it is needed
Utilize - Continuous flow processing
- Pull system
9/18/2018

24. Push System Example: MRP Lot arrival triggers production Material
Information
MRP Schedule triggers Production
Example: MRP
9/18/2018

25. Pull Systems
Material
Withdrawal of
material triggers
production
Information
Production schedule is issued only to final assembly line.
Production schedule for each of the preceding process is
determined by transfer of parts
Parts are pulled through the system from the end of the line
to the start
9/18/2018

26. Parts are produced only when needed (or just in time)
less delay or lead time, lower inventory
KANBAN - is the manual system to implement the pull system
JIT - refers to the whole system, the material flow and management philosophy
9/18/2018

27. JIT Systems
Combines both the production control component and a management philosophy
4 basic tenets for the success of JIT
Elimination of waste
Employee Involvement
Supplier Participation
Total Quality Management
9/18/2018

28. Kanban
Manual information system to control production. Material transportation, and inventory
Literally means “visible record” or card
In the the broad sense it is a communication signal from a downstream process (customer) to a upstream process (producer)
9/18/2018

29. Kinds of Kanban Two most common kanbans production kanbans (P- Kanban)
authorizes a process to produce a fixed amount of product
9/18/2018

30. Kanban continued Transportation kanban (T- Kanban)
authorizes transporting a fixed amount of product downstream
9/18/2018

31. JIT Element - Continuous Flow Processing
Batch Processing
10 minutes
10 minutes
10 minutes
Total Batch A processing time : 30 minutes
Continuous Flow Processing
Total Batch A processing time : 12 minutes Only 3 minutes for 1st part
Product requires three processes that take one minute each
Processing first batch in batches of 10 requires 30 minutes
Processing first “batch” one-at-a-time requires only 12 minutes
9/18/2018

32. JIT Element - Pull System
Following processes withdraw what they need when they need it.
Preceding processes replenish what is taken away.
Production Kanban
Withdrawal Kanban
Store A B C D E F G H I J K L M N O P Q
Upstream
Processes
Downstream
Processes
Pull
New
Product
Needed
Product
9/18/2018

33. Production Scheduling Assumptions
Production Schedules will always change
Production will never go according to schedule.
9/18/2018

34. Takt time
Takt time - takt, is a German term for rhythm. Takt time is the allowable time to produce one product at the rate customers are demanding it. This is NOT the same as cycle time, which is the normal time to complete an operation on a product (which should be less than or equal to takt time).
9/18/2018

35. Sets pace of production to
Takt Time
Time (Available seconds per working day)
Takt Time =
Volume (Daily production requirement)
Sets pace of production to
match pace of sales.
Actual time required for a worker to
complete one cycle of his process
Cycle Time =
9/18/2018

36. Balanced Cycle Times A D E C B Operators 9/18/2018 Takt Time (1 min.)

37. Very Frequent Change-over
Right Hand
Left Hand
Left Hand
change over
Right Hand
8 hours
9/18/2018

38. Building in Quality JIDOKA
Machines intelligence to be self-operating and self-stopping
People served by machines, not vice versa
Quality built-in, not inspected-in
Efficiency human work separated from machine work, people freed to do value-added work
9/18/2018

39. Quality Processes Yield Quality Results
Inconsistent
Process
Inconsistent
Results
Traditional = People doing whatever they can to get results
Consistent
Process
Desired
Results
Lean = People using standard process to get results
9/18/2018

40. Impact on You!! First Time Quality People Just in Time
Standardized Work
Error Proofing
Root Cause Analysis
Problem Solving
Change Request Forms
Predictable Processes
Machine Reliability
Total Productive Maintenance
Improved up-time
Reduced scrap & repairs
People
Skilled, multi-function workers
Training
Employee development
Small Group Activity
Quality
Safety
Productivity
Cost
Structured feedback meetings
Empowerment
Involvement
Accountability
Responsibility
Authority
Safety & Ergonomics
Just in Time
Kanban production
Min / Max levels
Smaller Lots
Quick Change Over
Less inventory
Less reliance on schedules
9/18/2018

41. Exercise – (3 – 5 minutes)
As a group, discuss a situation that you are familiar with where continuous flow would improve a systems performance.
Is this flow limited to manufacturing?
Prepare to respond to the entire class?
9/18/2018

42. Questions? There are no stupid questions!
9/18/2018