lean manufacturing
TRANSCRIPT
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Lean Manufacturing
Pankaj PathakAshutosh Vatsa
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What is Lean Manufacturing?
An overall strategy to improve a production process that focuses on:• Eliminating wastes• Enhancing quality• Reducing production time and cost• Promoting a “Lean Culture” in the company
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History and EvolutionEli Whitney (Interchangeable parts)
Drawing conventions, TolerancesModern machine tool development
1850
1900Fredrick Taylor (Standardized work, time study & work standards)
Frank Gilbreth (Process charts, motion study)
Henry Ford (Assembly lines, flow lines, manufacturing strategy)
Deming & Juran (SPC, TQM)
1990
1950Eiji Toyoda, Taiichi Ohno, Shigeo Shingo Toyota production system, JITStockless production, World class manufacture
Lean Manufacture
American Civil War
World War I
World War II
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Industry’s Concerns
Govt. PoliciesGlobal Competition
Accountability to shareholders & financers
Rising Cost of Input(Raw material,
Energy)
Competency of employees
Above all SUSTAINABLE Improvement
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Preparing for Lean Manufacturing
• Disorganised • Organised
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Survival Strategies
• Create Precise Customer Value o goods and services with higher quality and fewer
defectso with less human effort, less space, less capital, and less
time than the traditional system of mass production. • Remove ‘Waste’
o Consume ‘just enough’ recourseso Do more with less
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‘Value’ and ‘Waste’
• Value - an item or feature for which a customer willing to pay. Every thing else – waste
• Waste - activities that consume time, resource and/or space but do not add value.
• Lean - Production of product to meet demand on daily basis with minimum lead time & non value added activities eliminated or minimized
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Value Addition & No Value Addition
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Value Addition Activities
Test for value added activities
Transforms product in some wayCustomer sees & willing to payWill the customer know if eliminated
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Overproduction
Waiting
Inventory
TransportationMotion
Over Processing
Rework
1
6
7
5 4
3
2
To produce sooner,fasteror in greater quantitiesthan customer demand.
Raw material,work in progress
or finished goods which is not havingvalue added to it.
People or partsthat wait for
a work cycle tobe completed.
Unnecessary movementof people, parts ormachines within
a process.
Unnecessary movement of peopleor parts between processes.
Non rightfirst time.Repetitionor correctionof a process.
Processing beyondthe standardrequired by thecustomer.
Seek it out and get rid!
1
2
34
5
6
7
An 8th wasteis the wasted
potentialof people
MUDA
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7 Steps Of Waste Elimination
• Reduce lead time• Cut operations costs• Improve business performance visibility• Speed time to market• Exceed customer expectations• Streamline outsourcing processes• Manage global operations
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Lean Manufacturing- A System Approach
“Lean manufacturing is not a collection of best practices from which manufacturers can pick and choose. It is a production philosophy, a way of conceptualizing the manufacturing process from raw material to finished goods and from design concept to customer satisfaction. Lean is truly a different way of thinking about manufacturing.”
- Running Today’s Factory: A Proven Strategy for Lean Manufacturing, Charles
Standard.
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5 Principles of Lean Manufacturing
• Value - specify what creates value from the customer’s perspective.
• The value stream – identify all the steps along the process chain.
• Flow - make the value process flow. • Pull - make only what is needed by the
customer (short term response to the customer’s rate of demand).
• Perfection - strive for perfection by continually attempting to produce exactly what the customer wants.
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Value
• Any process that the customer would be prepared to pay for that adds value to the product.
The customer defines the value of product in a lean supply chain.
Value-adding activities transform the product closer to what the customer actually wants.
An activity that does not add value is considered to be waste.
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Quality Flexibility Service Variety
Variability Response-Time Cost
- - - - V A L U E - - - -
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Value Stream
• The value stream is the sequence of processes from raw material to the customer that create value.
• The value stream can include the complete supply chain.
• Value stream mapping is an integral aspect of Lean.
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Value-add time (Hours)
Inventory Waiting
Typical value-add to lead-time ratio ~ 1%
Waste
Value-add activity
Setup Transportation Waiting Inspect
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Flow
• Using one piece flow by linking of all the activities and processes into the most efficient combinations to maximize value-added content while minimizing waste.
• The waiting time of work in progress between processes is eliminated, hence adding value more quickly.
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Pull
• Pull = response to the customer’s rate of demand i.e. the actual customer demand that drives the supply chain.
• Based on a supply chain view from downstream to upstream activities where nothing is produced by the upstream supplier until the downstream customer signals a need.
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Perfection
• The journey of continuous improvement.• Producing exactly what the customer
wants, exactly when, economically.• Perfection is an aspiration, anything and
everything is able to be improved.
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TYPES OF LEAN MANUFACTURING
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Pull Production• Minimum Inventory• Supplying the right part, at the right time, in the
right amount• Each sub-process draws its needs from the
preceding sub-processes, and ultimately from an outside supplier.
• When a preceding process does not receive a request or withdrawal it does not make more parts.
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Automation
Intelligent Automation:
• Detect the abnormality.• Stop.• Fix or correct the immediate
condition.• Investigate the root cause and
install a countermeasure.
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Fixed Repeating SchedulesRed Stream/Green
Stream
Green Stream: Continuously produces products for which there is a stable demand
Red Stream: Flexible work schedules and factory layouts allow products to be produced only when ordered
Shortening FRS
• Reduces amount of stock needed
• Improves efficiency of sub processes
• Leads to lower lot sizes and enhanced flexibility
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Kaizen (Continuous Improvement)
• Identify a problem• Collect input from employees• Make a change• Monitor results• Adjust• Apply across the board
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Lean Manufacturing - Pros
• Minimizes the overhead fixed cost; reduces operational cost
• Implementing manufacturing techniques and strategies reduce manufacturing time
• Targets to eliminate most of the wastes that were mentioned on the previous slides
• Use of energy will be significantly reduced• Tries to eliminate wasted space since it is very important
for the company to run smoothly
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Lean Manufacturing - Cons• Support of employees and upper management
throughout the overall org chart is necessary to make the lean techniques implement in the company and make them successful.
• Proper leaders should be trained to direct teams about lean manufacturing and how it works.
• Leaders should be employee friendly since there can be personality clashes and it is difficult to get people to follow and take orders from co-workers.
• Training is an on-going process and it is a long time process to completely adopt “lean manufacturing” for the overall company.
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Lead Time Comparison
CustomerOrder
Waste ProductShipment
Time
CustomerOrder
ProductShipment
Time (Shorter)
Business as Usual
Waste
Lean Manufacturing
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Features of Lean Manufacturing:
• Greater Product Variety• Fast Response (Flexibility)• Stable Production Schedules• Supply Chain Integration• Demand Management• Broader jobs, highly skilled workers, proud of
product• Excellent quality• Reduced costs• Ability to meet global market & competition
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Graph Representing Benefits of Waste Reduction Techniques
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BOEING MANUFACTURING BUSINESS UNIT
Case Study
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Issues• Average job moved to 30 different stations• Pieces travelled miles throughout the shop• Most space was used for storage of work in
progress• Large inventory
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Changes and Results
• Product based cells• Wheels on equipment for flexibility• Storage spaces stocked to max/min• Overall travel was reduced between 1 and
3 miles• Reduced need for forklifts and trucks
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Changes and Results
• Reductions of bulk purchasing• Manufacturing occurs in ship sets• Just-in-time scheduling• 100,000 square feet of storage space
reduced• Off-site storage no loner needed
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Overall results• Reduced total cost of 30%• Productivity improved by 39%• Defects reduced from 12% to 3%• Production flexibility increased 40-50%
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Stages Of Lean
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Curtail Down the Waste
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How People Benefit From LEAN?
Elements Traditional Lean Improvement
Communication Slow & Uncertain Fast & Positive Quality & Coordination
Teamwork Inhibited Enhanced Effective Teams
Motivation Negative, Extrinsic Positive, Intrinsic Strong Motivation
Skill Range Narrow Broad Job Enrichment
Supervision Difficult and Fragmented
Easy & Localized Fewer Supervisors
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How Customers Benefit from LEAN?
Elements Traditional Lean Improvement
Response Weeks Hours 70-90%
Customization
Difficult Easy Competitive Advantage
Delivery Speed
Weeks-Months Days 70-90%
Delivery Reliability
Erratic Consistent & High Up to 90%
Delivery Quantities
Large Shipments JIT as Required Locks in JIT Customers
Quality Erratic Consistent & High Delighted Customers
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What do we want to measure?
• Productivity o Units produced per day per employee (all employees
in the building).
• Throughput Time (Dock to Dock)o Time (in days or hours) it takes for units to move from
first dock (receiving raw materials) to the last dock (finished goods shipping area).
• Total Cost / unito Must include all costs in the garment. Overhead,
variable cost, labor, materials, etc.
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What do we want to measure?
• WIP Cost for the systemo Number of units inside the process times the value of
the materials in the process.
• First time througho Quality level at each step accumulated across all
steps. % of the total that make it to the end with no re-work.
• Productive time, Non-productive time, Waiting timeo Start by removing non-productive time into waiting
time. It then moves from waiting to productive time.
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Lean Pilot Results
Productivity 25 pr/person 40 pr/person 60% Improvement
Quality 4.6% defects at final audit
2.1% defects at final audit
58% less defects
Space 102 sq. ft. per person
36 sq. ft. per person 64% less sq. ft. per person
WIP 4 units of WIP per unit produced.
0.3 units of WIP per unit produced
13 times less units in inventory
Lead Time 3.7 days 0.27 days 93% reduction
Absenteeism 3.2% daily 2.1% daily 33% reduction
Variation in Process
(Daily Schedule attainment)
+/- 45% variation (Daily Schedule attainment)
+/- 10% variation(Daily Schedule attainment)
88% more reliable process
(Daily Schedule attainment)
BEFORE PILOT IMPACT
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House of LEAN
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LEAN TOOLS AND SUPPORTING STRATEGY
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Lean Tools & Supporting Strategies
• 5S • Visual control• Team building• Problem solving• Standardised processes • Value stream mapping
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Lean Tools & Supporting Strategies
• Pull system• Kanban• Takt time – rate of customer demand• Manufacturing Cells • Heijunka• 5Ws & 1H
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Lean Tools & Supporting Strategies
• Kaizen• Total Productive Maintenance• SMED (setup reduction)• Poka-Yoke or mistake-proofing• Cycle time reduction• Andon – signalling system to stop
line
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5SA method for organizing a workplace, and keeping it organized.
Benefits:• Improve safety• Decrease down time• Raise employee morale• Identify problems more quickly• Develop control through visibility• Establish convenient work practices
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Unneeded equipment, tools, furniture; unneeded items on walls, bulletins; items blocking aisles or stacked in corners; unneeded inventory, supplies, parts; safety hazardsItems not in their correct places; correct places not obvious; aisles, workstations, & equipment locations not indicated; items not put away immediately after useFloors, walls, stairs, equipment, & surfaces not lines, clean; cleaning materials not easily accessible; labels, signs broken or unclean; other cleaning problemsNecessary information not visible; standards not known; checklists missing; quantities and limits not easily recognizable; items can’t be located within 30 secondsNumber of workers without 5S training; number of daily 5S inspections not performed; number of personal items not stored; number of times job aids not available or up-to-date
Keep only what you need
A place for everything and everything in its place Cleaning, and looking for ways to keep clean and organized
Maintaining and monitoring the first three categoriesSticking to the rules
Seiri(sort)
Seiton(set in order)
Seisou(shine)
Seiketsu(standardize)
Shisuke(sustain)
5S Scan Goal Eliminate or Correct
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Visual Control
Any communication device used in the work environment that tells us at a glance how work should be done and whether it is deviating from the standard Benefits
1. Increase productivity2. Improve quality3. On-time delivery4. Reduce inventory 5. Increase equipment reliability6. Boosts bottom-line profits
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Visual management
• Visual management maintains an orderly work environment.
• Employees have quicker and safer access to items that are needed.
• Colour-coding is often used to remind employees of where items belong.
• If order is not continually stressed, disorder will result and create an unfriendly work atmosphere.
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Lean Tool Introduction Benefits
Team Building
An active process by which a group of individuals with a common purpose are focused and aligned to achieve a specific task or set of outcomes
1. Improves morale and leadership skills.
2. Finds the barriers that thwart creativity
3. Clearly defines objectives and goals
4. Improves processes and procedures
5. Improves organizational productivity
6. Identifies a team’s strengths and weaknesses·
7. Improves the ability to problem solve
Team Building
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Lean Tool Introduction Benefits
Problem Solving
The Problem Solving is a systematic approach with a sequence of sections that fit together depending on the type of problem to be solved. These are: 1. Problem Definition• Problem Analysis• Generating possible Solutions• Analyzing the Solutions • Selecting the best Solution(s)• Sustaining the gains
1. Leads to identify root cause(s) of chronicle problems
Problem Solving
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Lean Tool Introduction Benefits
Standardized Process
Standardization is the process of developing and agreeing upon technical standards.
1. Better decision making 2. Cost reduction and increase in
efficiency3. Effective information sharing4. Easier international transfer of
marketing skills5. Simplifying the coordination and
control between subsidiaries and business functions
Value stream Mapping
A tool for guiding improvements by identifying waste & isolated processes
1. Enable Visualizing the production process
2. Identifies waste in each step of the production process.
3. Provides a plan for implementing improvements to the production process to reduce costs.
Standardized Process & Value stream Mapping
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Lean Tool Introduction Benefits
Pull system
A method of controlling the flow of resources by replacing only what has been consumed
1. Reduce lead times2. Minimize work in process3. optimize floor space usage4. Simplify production signals and
improve on-time delivery to customers.
Pull system
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Lean Tool Introduction Benefits
Kanban
A system of continuous supply of components, parts and supplies, such that workers have what they need, where they need it, when they need it
1. Reduces waste and scrap 2. Provides flexibility in production 3. Increases Output 4. Reduce Preventing Over
Production 5. Minimizing Wait Times and
Logistics Costs 6. Reduce Stock Levels and
Overhead Costs 7. Save Resources by Streamlining
Production 8. Reduce Inventory Costs
Kanban
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Lean Tool Introduction Benefits
Takt time – rate of customer demand
The rate that a completed product needs to be finished in order to meet customer demand
1. Gives the rhythm at which system should operate
2. Smooth production planning & reduced interruptions in operations
3. System synchronization with customer requirement
4. Enable pull scheduling5. No over production6. No rush hours in work7. WIP reduced
Manufacturing Cells
Comprises a group of equipment, that is dedicated to the complete production of a family of similar parts
1. Flexible Operation 2. Setup Time Reduction 3. Process Simplification 4. Schedule Variety
Takt time – Rate of customer demand & Manufacturing Cells
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Lean Tool Introduction Benefits
Heijunkathe leveling of production by both volume and product mix
1. Stability of manpower 2. Reduction of unnecessary overtime 3. Reduction in inventory levels 4. Reduction of stress levels in the
production area
5Ws & 1 H
It is a method of questioning that leads to the identification of the root cause(s) of a problem
1. Identify root cause2. Identify current and future needs for
organizational improvement.3. Develop a logical approach to
problem solving; using data that already exists in most operations.
Heijunka & 5Ws & 1 H
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Lean Tool Introduction Benefits
Kaizen Continuous Improvement
1. Increased Space utilization2. Increased product quality3. Better Use of capital4. Communications5. Production capacity 6. Employee retention
Total Productive Maintenance
A maintenance philosophy designed to integrate equipment maintenance into the manufacturing process. The goal is to keep equipment producing only good product, as fast as possible with no unplanned downtime.
1. Improve Productivity2. Reduce breakdown leading to
Zero breakdown concept3. Leads to multi-skilling of workers4. Better safety5. Improve quality of products
Kaizen & Total Productive Maintenance
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Lean Tool Introduction Benefits
SMED (Set up reduction)
The practice of reducing the time it takes to change a line or machine from running one product to the next
1. WIP and lot size reduction2. Finished goods inventory
reduction3. Improved equipment
utilization/yield4. Increased profitability without
new capital equipment purchase
Poka-yoke or mistake proofing
A techniques that help operators avoid mistakes in their work caused by choosing the wrong part, leaving out a part, installing a part backwards, etc.
1. Better safety2. Reduce breakdown3. Improve Productivity
SMED (Set up reduction) & Poka-yoke or mistake proofing
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Lean Tool Introduction Benefits
Cycle Time reduction
Reduction of total time taken from start of the production or service to its completion. It includes processing time, move time, wait time, and inspection time
1. Reduced costs 2. Increased throughput3. Streamlined processes4. Improved communications 5. Reduced process variability6. Schedule integrity7. Improved on-time delivery
Cycle Time reduction
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Lean Tool Introduction Benefits
Andon – Signaling system to stop line
A Japanese term refers to the warning lights on an assembly line that light up when a defect occurs. When the lights go on, the assembly line is usually stopped until the problem is diagnosed and corrected.
1. Bring immediate attention to problems as they occur in the manufacturing process.
2. Provide a simple and consistent mechanism for communicating information on the plant floor.
3. Encourage immediate reaction to quality, down time, and safety problems.
4. Improve accountability of operators by increasing their responsibility for “good” production and empowering them to take action when problems occur.
5. Improve the ability of supervisors to quickly identify and resolve manufacturing issues.
Andon–Signaling system to stop line
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Lean Maintenance
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A Simultaneous Approach
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Cellular Manufacturing
Dividing the manufacture of products into semi-autonomous and multi-skilled teams
known as work cells
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Cellular Manufacturing Example
Functional Layout Cellular Layout
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Cells with Worker Routes
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Worker Routes Lengthen as Volume Decreases
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Pull System
• Material is pulled through the system when needed
• Reversal of traditional push system where material is pushed according to a schedule
• Forces cooperation• Prevent over and underproduction• While push systems rely on a predetermined
schedule, pull systems rely on customer requests
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Kanbans
• Card which indicates standard quantity of production
• Derived from two-bin inventory system• Maintain discipline of pull production• Authorize production and movement of
goods
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Sample Kanban
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Origin of Kanban
a) Two-bin inventory system b) Kanban inventory system
Reorder card
Bin 1
Bin 2
Q - R
Kanban
RR
Q = order quantityR = reorder point - demand during lead time
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Types of Kanban
• Production kanbano authorizes production of
goods• Withdrawal kanban
o authorizes movement of goods
• Kanban squareo a marked area designated
to hold items
• Signal kanbano a triangular kanban used
to signal production at the previous workstation
• Material kanbano used to order material in
advance of a process• Supplier kanban
o rotates between the factory and suppliers
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Determining Number of Kanbans
where
N = number of kanbans or containersd = average demand over some time periodL = lead time to replenish an orderS = safety stockC = container size
No. of Kanbans =average demand during lead time + safety stock
container size
N =dL + S
C
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Determining Number of Kanbans: Example
d = 150 bottles per hourL = 30 minutes = 0.5 hoursS = 0.10(150 x 0.5) = 7.5C = 25 bottles
Round up to 4 (to allow some slack) or down to 3 (to force improvement)
N = =
= = 3.3 kanbans or containers
dL + SC
(150 x 0.5) + 7.525
75 + 7.525
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Small Lots
• Require less space and capital investment
• Move processes closer together• Make quality problems easier to
detect• Make processes more
dependent on each other
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Inventory Hides Problems
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Less Inventory Exposes Problems
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Components of Lead Time
• Processing timeo Reduce number of items or improve efficiency
• Move timeo Reduce distances, simplify movements, standardize
routings• Waiting time
o Better scheduling, sufficient capacity• Setup time
o Generally the biggest bottleneck
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Quick Setups
• Internal setupo Can be performed
only when a process is stopped
• External setupo Can be performed
in advance
• SMED Principleso Separate internal setup from
external setupo Convert internal setup to external
setupo Streamline all aspects of setupo Perform setup activities in parallel
or eliminate them entirely
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Common Techniques for Reducing Setup Time
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Common Techniques for Reducing Setup Time (cont.)
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Common Techniques for Reducing Setup Time (cont.)
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Uniform Production Levels
• Result from smoothing production requirements
• Kanban systems can handle +/- 10% demand changes
• Smooth demand across planning horizon
• Mixed-model assembly steadies component production
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Mixed-Model Sequencing
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Quality at the Source• Visual control
o makes problems visible
• Poka-yokeso prevent defects from
occurring• Kaizen
o a system of continuous improvement; “change for the good of all”
• Jidokao authority to stop the
production line• Andons
o call lights that signal quality problems
• Under-capacity schedulingo leaves time for planning,
problem solving, and maintenance
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Examples of Visual Control
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Examples of Visual Control (cont.)
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Examples of Visual Control (cont.)
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Total Productive Maintenance (TPM)
• Breakdown maintenanceo Repairs to make failed machine operational
• Preventive maintenanceo System of periodic inspection and
maintenance to keep machines operating• TPM combines preventive maintenance
and total quality concepts
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TPM Requirements
• Design products that can be easily produced on existing machines
• Design machines for easier operation, changeover, maintenance
• Train and retrain workers to operate machines• Purchase machines that maximize productive
potential• Design preventive maintenance plan spanning
life of machine
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Supplier Networks• Long-term supplier contracts• Synchronized production• Supplier certification• Mixed loads and frequent deliveries• Precise delivery schedules• Standardized, sequenced delivery• Locating in close proximity to the customer
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Thank you.