1. 1. 1 Production Logistics February, 22 th 2010 Hessel Visser Lecture 4 Course Logistics 10

2. 1. 2 Production Logistics Course Overview Introduction from Production Orientation to Customer Relations Just in time effects film from Push to Pull by Hewlett Packard The way to Lean Manufacturing The case MOBA egg sorters Overview PRoduction Logistics course

3. 1. 3 Brief History of the Model T After 20 years of experimentation, Henry Ford finally saw the fruits of his labour in October of 1908 with the Model T. This was the vehicle he had wanted to build since his first Model A in 1903

4. 1. 4 In October of 1913, mass production of the automobile began. Ford had previously organized workers and components to enhance the production of the Model T, but the moving assembly line quickly improved the speed of chassis assembly from 12 hours and 8 minutes to 1 hour and 33 minutes.

5. 1. 5 In 1914 Ford produced 308,162 cars, which was more than all other auto manufacturers combined. It was also in 1914 that the Model T, in the interest of streamlining the production process, was no longer available in black, red, blue, green or grey; it was now available in "any colour so long as it is black."

6. 1. 6 Mass production did allow for flexibility in the price tag. Henry Ford introduced the Model T at $850 for the Touring Car, but by October of 1924, he was able to offer the Runabout for as low as $260. Few things other than the price ever changed on the Model T time 1909 1926 2.000.000/Year 1.000.000/Year $ 850.- $ 260.- Ford Factory

7. 1. 7 The Vision of “Lean” in the USA Perhaps best stated by James Womack, and Daniel Jones in two popular books… 1The Machine That Changed the World (1990) 2Lean Thinking

8. 1. 8 What has been changed in car industry?

9. 1. 9 SIC MRP MRP II ERP SCM 19601970 1980 2000 1990 Evolution of manufacturing systems Statistic Inventory Control Material Requirement Planning Manufacturing Resources Planning Enterprise Resources Planning Supply Chain Management

10. 1. 10 Stockless Production From Push to Pull At HP there was in 1983 a division which wanted to make a change over from Push to Pull. It was the Greely Colorada Division They made Disc Units Their goal was to get a batch quantity of one piece

11. 1. 11 The Film Stockless Production Be aware of the problems in this simulated production line. Don’t look only to the working procedures. Watch to the people themselves. Write down all what you find remarkable.

12. 1. 12 Produce and Package the Box To sticker To Stitch Tape it To Pack Halve a box Box in the Box Box with sticker Box with wire stich Sticker on box

13. 1. 13 Method Measurement Push 6 pieces Pull 3 pieces Pull 1 piece Space Work on Hand Cycle time Lead time Rework Quality Problems Performance-Indicators 1

14. 1. 14 Results at HP Before 2,8 months 4000 m2 5 days 100% After 1,2 months 2000m2 2,5 days 115% Subject Inventory Space Work on Hand Productivity

15. 1. 15 aimed at customer total quality care robots production circle suggestion box automation work area discipline TPM (total productive maintenance) kanban quality improvement just-in-time 0-fault activities of small groups cooperation of management and employees improving productivity development of new products K A I Z E N The Kaizen umbrella

16. 1. 16 CASE MOBA egg-sorters

17. 1. 17 Moba market position World-wide market leader in egg grading equipment Market share > 60% Export > 90% Major markets: –Europe –Asia & Australia –Japan

18. 1. 18 Company information Founded 1947 Main office Barneveld 43,000 m² Subsidiaries in USA, UK, Asia and Japan 280 employees 50 employees R&D € 60 million revenue PBT > 10%

19. 1. 19 Company information Marketing & Sales Research & Development Engineering Manufacturing Assembly Service

20. 1. 20 Products Automatic graders up to 180,000 eggs/h Auto candling technology Farm packers Container handling Automatic packaging Software for track and trace

21. 1. 21 Auto candling technology Crack (24 hits per egg) Dirt (4 pictures per egg) Blood (Xenon light) Weighing Leaker detection

22. 1. 22 MOBA How did it look in 2000?

23. 1. 23 Why do we have to change? Misfit between market requirements and internal capabilities: –time to market unacceptable (R&D) –customer specific configurations tend to be more complex (from machine to system) –delivery times very long –high warranty costs => Monopolist behaviour <=

24. 1. 24 Situation early 2000 Centralised organisation Responsibilities diffuse Bad mentality and de-motivated crew Outdated production equipment Dirty working places Implementation BaaN very complex and time and labour consuming Inflexible planning and control

25. 1. 25 Seven Categories of Waste 1.Overproduction 2.Waiting and Queues 3.Unnecessary Transport 4.Bad Processes 5.Inventories 6.Unnecessary Personal Movements 7.Lack of Quality

26. 1. 26 What does 5 S mean? The 5 S are translated from Japanese to English and Dutch: 1.Seiri /Sort / Selecteren en Scheiden 2.Seiton /Set in order / Schikken en Sorteren 3.Seiso /Shine / Schoonmaken en Schrobben 4.Seiketsu/ Standardise / Systematiseren, Standaardiseren en structureren 5.Shitsuke /Sustain / Stimuleren en Stijlvol werken/

27. 1. 27 Total results at MOBA Sheet metal lead time 9 weeks tot 1 Less space in stock room from 4200m 2 to 1700m 2 40 % shorter lead time overall Better quality: almost no scrap Easier handling More profit