1. Dr. Ron Lembke SCM 462

2. 1/16” How accurately can you measure? 1 mm = 1/25” 1/32”

3. Calipers 1/64” 0.05mm

4. Micrometer = 0.01mm Calipers

5. “Lord Chancellor” Micrometer Accurate to 1/10,000” Created when? 1805

6. Henry Maudslay 1771-1831 “Powder monkey” at age 12, cabinet shop Joseph Brama’s (hydraulic press) lock shop Invented (or pioneered) slide rest lathe Standardized screws

7. Block making Machines for Marc Brunel, Used for 100 years Waited for “American System”

8. Beginning of Standards Before standardized parts, need Screws 1860s Machine Tool industry: Silicon Valley of its day All screws custom made by tool & die shops according to what they thought best William Sellers: 1864 “On a Uniform System of Screw Threads”

9. Sellers vs. Whitworth 3 cutters & 2 lathes vs. 1 cutter & 1 lathe Simple geometry vs. difficult Rounded top vs. straight: ease of manufacturing, ease of assembly

10. Not Just What you Know Machine tool makers didn’t want to be commoditized like gun makers The standard people expect to win usually does. Navy Board found it superior, asked Singer Sewing Machine, Baldwin Locomotive which would win (already adopted). Pennsylvania RR adopted (Sellers on the Board) British tanks & trucks couldn’t be repaired in WWII because Britain adopted Whitworth

11. Eiji Toyoda’s Ambitious Plans Post-WWII Japanese industry in ruins Early 1950s – toured Rouge plant 2,500 cars in 13 years. Ford: 8,000 per day “Catch up to Americans in 4 years!” Toyoda made delivery trucks and motorcycles, and not many of either

12. , the early years First two Toyotas imported to U.S. 1957

13. Elimination of Waste Knew they wouldn’t beat U.S. with product innovation, concentrated on licensing patents, and producing more efficiently Costs prevented mass-production, volume strategy of American firms. Find ways to reduce waste, cost Shigeo Shingo & Taiichi Ohno, pioneers

14. Ohno & Shingo

15. Couldn’t Emulate GM GM huge batches in huge factories Japan’s area is 10% less than California and 70% agricultural. Put entire population of CA into 30% of state, then add 6 times as many people. (and you thought LA was crowded). Land extremely expensive Sprawling factories not an option

16. Small Batches GM’s large batches require large amounts of storage space. GM produces in large batches because of significant setup costs. If Toyota had the same large setup costs, it could never afford small batches. Reduce setup cost to reduce batch size. GM didn’t think of doing this.

17. Two Pillars of Toyota System Just-in-Time: produce the right parts, at the right time, in the right quantity Autonomation: ‘Automation with a human touch’ (make machine mistake-proof)

18. Just-in-Time Downstream processes take parts from upstream as they need. Like an American Supermarket: Get what you want when you want it in the quantity you want.

19. Kanban Japanese for ‘signboard’ Method for implementing JIT In order to produce, you need both material to work on, and an available kanban. Each work station has a fixed # kanbans.

20. Kanban Worker 2 finishes a part, outbound moves over 2 has a blue tag avaliable, so 2 gets another part to work on: 2 takes off 1’s green tag giving it back to 1, and puts on her blue tag and moves it into position. Flow of work 3 2

21. Kanban When 3 finishes a part, Finished parts move over one spot He has to have a red tag available to put on, He gets a part from 2’s outbound pile, And gives the blue back to 2 Flow of work 3 2

22. Kanban When 3 finishes a part, Finished parts move over one spot He has to have a red tag available to put on, He gets a part from 2’s outbound pile, And gives the blue back to 2 3’s production will be taken by 4, offstage right. Tag goes back into 3’s bin Flow of work 3 2

23. Kanban Red finishes his part next. But 4 hasn’t freed up any of the red kanbans, so there is nothing for 3 to work on now. 3 could maintain his machine, or see if 4 needs help 3 2 3 2

24. How is this Different? Processes can become idled (blocked) or starved This makes you painfully aware of problems in your system. Material moves through the system so quickly no in- process recordkeeping is needed.

25. Total Quality Management Not a lot of parts to sift through to find a good one Can’t afford high defect rates Since low WIP, get quick feedback on errors

26. WIP Level Less WIP means products go through system faster reducing the WIP makes you more sensitive to problems, helps you find problems faster Stream and Rocks analogy: Inventory (WIP) is like water in a stream It hides the rocks Rocks force you to keep a lot of water (WIP) in the stream

27. Lowering Inventory Reduces Waste WIP hides problems

28. Lowering Inventory Reduces Waste WIP hides problems

29. Lowering Inventory Reduces Waste Reducing WIP makes problem very visible STOP

30. Lowering Inventory Reduces Waste Remove problem, run With less WIP

31. Lowering Inventory Reduces Waste Reduce WIP again to find new problems

32. Importance of Flow Ohno was very clear about this: “Kanban is a tool for realizing just-in-time. For this tool to work fairly well, the process must be managed to flow as much as possible. This is really the basic condition. Other important conditions are leveling the product as much as possible, and always working in accordance with standard work methods. -- Ohno, 1988, p. 3

33. Setup Reduction Can’t afford to do huge runs Have to produce in small batches Toyota Die Change: 3 hours down to 3 SMED: under ten minutes Techniques Make internal setups into External Eliminate Adjustments Eliminate the Setup Continuous Process Improvement, anyone?

34. Lot Sizing

35. Takt time = available time (day) / Customer demand rate per day

36. Uniform Plant Loading (heijunka) Any changes to final assembly are magnified throughout production process Smoothing Master production schedule: 10,000 /mo. 500 day, 250 a shift 480 minutes means 1 every 1.92 minutes Sequencing: If mix is 50% A, 25% B, 25% C, produce A-B-A-C-A-B-A-C…