1. Chapter 9: Lean Manufacturing © Holmes Miller 1999

2. Lean Production Lean Production can be defined as an integrated set of activities designed to achieve high-volume production using minimal inventories (raw materials, work in process, and finished goods) äLean Production also involves the elimination of waste in production effort äLean Production also involves the timing of production resources (i.e., parts arrive at the next workstation “just in time”) Adding value

3. The Toyota Production System Based on two philosophies: ä1. Elimination of waste ä2. Respect for people Toyota Production System Video

4. Waste in Operations 1.Waste from overproduction 2.Waste of waiting time 3.Transportation waste 4.Inventory waste 5.Processing waste 6.Waste of motion 7.Waste from product defects As noted a key idea is eliminating waste – the “seven wastes” are:

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

6. Minimizing Waste: Focused Factory Networks Coordination System Integration These are small specialized plants that limit the range of products produced (sometimes only one type of product for an entire facility) Some plants in Japan have as few as 30 and as many as 1000 employees

7. Minimizing Waste: Group Technology (Part 1) Using Departmental Specialization for plant layout can cause a lot of unnecessary material movement Saw LathePress Grinder Lathe Saw Press Heat Treat Grinder Note how the flow lines are going back and forth

8. Minimizing Waste: Group Technology (Part 2) Revising by using Group Technology Cells can reduce movement and improve product flow Press Lathe Grinder A 2 B Saw Heat Treat LatheSaw Lathe Press Lathe 1

9. Minimizing Waste: Uniform Plant Loading (heijunka) Not uniformJan. UnitsFeb. UnitsMar. UnitsTotal 1,2003,5004,3009,000 UniformJan. UnitsFeb. UnitsMar. UnitsTotal 3,0003,0003,0009,000 Suppose we operate a production plant that produces a single product. The schedule of production for this product could be accomplished using either of the two plant loading schedules below. How does the uniform loading help save labor costs? or

10. Minimizing Waste: Inventory Hides Problems Work in process queues (banks) Change orders Engineering design redundancies Vendor delinquencies Scrap Design backlogs Machine downtime Decision backlogs Inspection backlogs Paperwork backlog Example: By identifying defective items from a vendor early in the production process the downstream work is saved Example: By identifying defective work by employees upstream, the downstream work is saved

11. Minimizing Waste: Kanban Production Control Systems Storage Part A Machine Center Assembly Line Material Flow Card (signal) Flow Withdrawal kanban Once the Production kanban is received, the Machine Center produces a unit to replace the one taken by the Assembly Line people in the first place This puts the system back were it was before the item was pulled The process begins by the Assembly Line people pulling Part A from Storage Production kanban

12. Respect for People Level payrolls Cooperative employee unions Subcontractor networks Bottom-round management style Quality circles (Small Group Involvement Activities or SGIA’s)

13. Toyota Production System’s Four 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

14. Lean Implementation Requirements: Design Flow Process Link operations Balance workstation capacities Redesign layout for flow Emphasize preventive maintenance Reduce lot sizes Reduce setup/changeover time

15. Lean Implementation Requirements Total Quality Control äWorker responsibility äMeasure SQC äEnforce compliance äFail-safe methods äAutomatic inspection Stabilize Schedule äLevel schedule äUnderutilize capacity äEstablish freeze windows

16. Lean Implementation Requirements Kanban – Pull äDemand pull äBackflush äReduce lot sizes Work with Vendors äReduce lead times äFrequent deliveries äProject usage requirements äQuality expectations

17. Lean Implementation Requirements: Reduce Inventory More äLook for other areas äStores äTransit äCarousels äConveyors Improve Product Design äStandard product configuration äStandardize and reduce number of parts äProcess design with product design äQuality expectations

18. Lean Implementation Requirements Concurrently Solve Problems äRoot cause äSolve permanently äTeam approach äLine and specialist responsibility äContinual education Measure Performance äEmphasize improvement äTrack trends

19. Lean in Services (Examples) Organize Problem-Solving Groups Upgrade Housekeeping Upgrade Quality Clarify Process Flows Revise Equipment and Process Technologies Level the Facility Load Eliminate Unnecessary Activities Reorganize Physical Configuration Introduce Demand-Pull Scheduling Develop Supplier Networks Exercise: Apply some lean production techniques to some application at Muhlenberg or in a job/internship