Lean Production

Topics
Lean logic
The Toyota Production System
Lean Implementation Requirements
Lean Services
 Lean Production
an integrated set of activities designed to achieve
high-volume production using minimal
inventories (raw materials, work in process &
finished goods)
involves the elimination of waste in production
effort
also involves the timing of production resources
(i.e., parts arrive at the next workstation “just in
time”)
 Here
Herethe
thecustomer
customerstarts
startsthe
the
process,
process,pulling
from
fromFinal
pullingan
aninventory
FinalAssembly…
inventoryitem
Assembly…
item Pull System

Then
Thensub-assembly
sub-assemblywork
work
isispulled
pulledforward
forwardby
bythat
that Fab Vendor
demand…
demand…

Sub
Fab Vendor
Final
Customers Assembly

The
Theprocess
processcontinues
continuesthroughout
throughout Sub Fab Vendor
the
theentire
entireproduction
productionprocess
processand
and
supply
supplychain
chain

Fab Vendor
 Features of Lean Production
WHAT IT IS WHAT IT DOES

• Management philosophy • Attacks waste

• Exposes problems and bottlenecks
• “Pull” system though the plant
• Achieves streamlined production

WHAT IT REQUIRES WHAT IT ASSUMES

• Employee participation
• Industrial engineering/basics • Stable environment
• Continuing improvement
• Total quality control
• Small lot sizes
Just-In-Time, TPS &
Lean Production
JIT isa philosophy of continuous & forced
problem solving via a focus on throughput and
reduced inventory
TPS emphasizes continuous improvement,
respect for people, and standard work practices
Lean production supplies the customer with their
exact wants when the customer wants it without
waste
 Just-In-Time, TPS &
Lean Production

JIT emphasizes forced problem solving

TPS emphasizes employee learning and
empowerment in an assembly-line environment
Lean operations emphasize understanding the
customer
The Toyota Production System

Based on two philosophies:

1. Elimination of waste
2. Respect for people
Waste
Anything that does not add value from the
customer point of view
Includesanything other than the minimum
amount of equipment, materials, parts & workers
which are absolutely essential for production
Storage,inspection, delay, waiting in queues,
and defective products do not add value and are
100% waste
Ohno’s Seven Wastes
Overproduction

Queues

Transportation

Inventory

Motion

Overprocessing

Defective products
Eliminate Waste
Other resources such as energy, water, and air are
often wasted
Efficient,
ethical, and socially responsible
production minimizes inputs, reduces waste
Traditional “housekeeping” has been expanded
to the 5 Ss
The 5 Ss
Seiri (Sort/segregate)
◦ throw away rubbish & unrelated material
Seiton (Straighten/ set in order)
◦ keep everything in proper place for quick retrieval &
storage
Seiso (Shine/sweep)
◦ clean the workplace daily
Seiketsu (Standardize)
◦ Standardized work practices
Shitsuke (Sustain/self-discipline)
◦ commitment to maintain & practice 1st 4S as a way of
life
Elimination of Waste
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
 These
Theseare
aresmall
smallspecialized
specializedplants
Focused Factory that
thatlimit
limitthe
therange
rangeof
plants
ofproducts
products
produced
produced(sometimes
(sometimesonly
onlyone
onetype
typeofof
Networks product
productfor
foran
anentire
entirefacility)
facility)

Some
Someplants
plantsininJapan
Japan
have
haveas
asfew
fewas
as3030and
and
as
asmany
manyas as1000
1000
Coordination employees
employees
System Integration
 Group Technology (Part 1)
Note
Notehow
howthe
theflow
flowlines
linesare
aregoing
goingback
backand
andforth
forth

Using

UsingDepartmental
DepartmentalSpecialization
Specializationfor
forplant
plantlayout
layoutcan
cancause
causeaalot
lotofofunnecessary
unnecessary
material
materialmovement
movement

Saw Saw Saw Grinder Grinder

Heat Treat

Lathe Lathe Lathe Press Press Press

 Group Technology (Part 2)
Revising

Revisingby
byusing
usingGroup
GroupTechnology
TechnologyCells
Cellscan
canreduce
reducemovement
movementand
andimprove
improve
product
productflow
flow

Grinder 1 2
Saw Lathe Lathe Press

Heat Treat

Grinder
Saw Lathe A B Lathe Press
 Uniform Plant Loading (heijunka)
Suppose
Supposeweweoperate
operateaaproduction
productionplant
plantthat
thatproduces
producesaasingle
single
product.
product. The
Theschedule
scheduleofofproduction
productionfor
forthis
thisproduct
productcould
couldbe
be
accomplished
accomplishedusing
usingeither
eitherof
ofthe
thetwo
twoplant
plantloading
loadingschedules
schedules
below.
below.

Not uniform Jan. Units Feb. Units Mar. Units Total

1,200 3,500 4,300 9,000

or

Uniform Jan. Units Feb. Units Mar. Units Total

3,000 3,000 3,000 9,000

How
Howdoes
doesthe
theuniform
uniformloading
loadinghelp
helpsave
savelabor
laborcosts?
costs?
 Inventory Hides Problems
Example: By
identifying defective
Machine
downtime items from a vendor
early in the
Scrap Vendor production process
Work in delinquencies Change the downstream work
orders
process is saved
queues Engineering design Design
(banks) redundancies backlogs

Example: By
Paperwork Inspection Decision identifying defective
backlog backlogs backlogs work by employees
upstream, the
downstream work is
saved
 Kanban Production Control Systems
This puts the
Once the Production kanban is
system back
received, the Machine Center Withdrawal were it was
produces a unit to replace the kanban before the item
one taken by the Assembly Line
was pulled
people in the first place

Storage Storage
Machine Part A Part A Assembly
Center
Line

Production kanban
Material Flow
The process begins by the Assembly Line
people pulling Part A from Storage Card (signal) Flow
Determining number of Kanbans needed
Settingup a kanban system requires
determining the number of kanbans cards (or
containers) needed
Each container represents the minimum
production lot size
An accurate estimate of the lead time required
to produce a container is key to determining
how many kanbans are required
Number of Kanban Card Sets
Expected demand during lead time  Safety stock
k
Size of the container

DL (1  S )

C
k = Number of kanban card sets (a set is a card)
D = Average number of units demanded over some time
period
L = lead time to replenish an order (same units of time as
demand)
S = Safety stock expressed as a percentage of demand
during leadtime
C = Container size
Example of Kanban Card Determination:
Problem Data
A switch assembly is assembled in batches of 4
units from an “upstream” assembly area and
delivered in a special container to a
“downstream” control-panel assembly operation
The control-panel assembly area requires 5 switch
assemblies per hour
The switch assembly area can produce a container
of switch assemblies in 2 hours
Safety stock has been set at 10% of needed
inventory
 Example of Kanban Card
Determination: Calculations
Expected demand during lead timeSafety stock
k 
Size of the container

DL (1 S ) 5(2)(1.1)
   2.75, or 3
C 4

Always round up!

Respect for People
Level payrolls
Cooperative employee unions
Subcontractor networks
Bottom-round management style
Quality circles (Small Group Involvement
Activities or SGIA’s)
Four Rules of TPS
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
Lean Implementation Requirements
Design Flow Process
Total Quality Control
Stabilize Schedule
Kanban-Pull

Work with Vendors

Reduce Inventory More
Improve Product Design
Concurrently Solve Problems
Measure Performance
Design Flow Process
Link operations
Balance workstation capacities
Redesign layout for flow
Emphasize preventive maintenance
Reduce lot sizes
Reduce setup/changeover time
Total Quality Control
Worker responsibility
Measure SQC
Enforce compliance
Fail-safe methods
Automatic inspection
Stabilize Schedule
Level schedule
Underutilize capacity
Establish freeze windows
Kanban-Pull
Demand pull
Backflush

Reduce lot sizes

Work with Vendors
Reduce lead times
Frequent deliveries
Project usage requirements
Quality expectations
Reduce Inventory More
Look for other areas
Stores

Transit

Carousels

Conveyors
Improve Product Design

Standard product configuration

Standardize and reduce number of parts
Process design with product design
Quality expectations
Concurrently Solve Problems
Root cause
Solve permanently
Team approach
Line and specialist responsibility
Continual education
Measure Performance

Emphasize improvement
Track trends
Lean in Services (Examples)
Organize Problem-Solving Groups
Upgrade Housekeeping
Upgrade Quality
Clarify Process Flows
Revise Equipment and Process Technologies
Lean in Services (Examples)
Level the Facility Load
Eliminate Unnecessary Activities
Reorganize Physical Configuration
Introduce Demand-Pull Scheduling
Develop Supplier Networks