ChVIII-LeanProduction-Sp10 - MGMT 460 Operations Management...

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Unformatted text preview: MGMT 460 Operations Management (OM) Lean Manufacturing System** Toyota Manufacturing System Kanban system Pull System Just-InJust-In-Time System Stockless Production System Ch VIII: Lean Production ** Coined in 1990 by James Womack and Daniel Roos Coined in their book, The Machine That Changed the World LeanProduction‐Sp10 1 LeanProduction‐Sp10 2 MGMT 36100 MGMT 36100 Shigeo Shingo (1909 -1990) 1931 – technician in a railway factory 1943 – Manufacturing Section Chief in Amano Manufacturing Plant. Raises productivity by 100% applying flow operations. 1946 – Working at Hitachi, discovers that processes and operations are inseparable. 1950 Furkawa Electric: develops SMED concept (single 1950 – Furkawa Electric: develops SMED concept (single minute minute exchange of die). 1955 – Joined Toyota. Has been responsible for many improvements. Introduced SMED, POKA-YOKE system of POKAmistakemistake-proofing. Dr. Shigeo Shingo has written 14 major books and hundreds of important papers on manufacturing. The Shingo Prize is awarded for excellence in manufacturing as a tribute to Dr. Shingo and his lifelong work. LeanProduction‐Sp10 3 Taiichi Ohno (1912-1990) (1912Considered to be the most influential person in the development of Toyota Manufacturing System. 1. Produce only what the market demands. 2. Visual aids to highlight where action is needed. 3. Small batch sizes. Also incorporated ideas from Shingo and others. others. Pull System: Idea based on visit to grocery stores in the USA. USA. LeanProduction‐Sp10 4 MGMT 36100 MGMT 36100 The Toyota Production System • Part I: Just-in-Time Production Just-in– – – – – – Doing it all for the customer Leveled production Running a Pull system Continuous flow processing Takt Time MultiMulti-skilled operators Pull System • Part II: Jidoka – Building quality into the Production Process • Part III: Standardized work and Kaizen – Standardized work – Basis for kaizen – Kaizen: The Lifeblood of Standardized Production. LeanProduction‐Sp10 5 MGMT 36100 LeanProduction-Sp10 MGMT 36100 6 LeanProduction-Sp10 1 Features of Lean Production WHAT IT IS WHAT IT DOES • Attacks waste Philosophy: • • Waste Elimination. Respect for people. • Management philosophy • Exposes problems and bottlenecks • “Pull” system though the plant • Achieves streamlined production • Forms of waste Waste of over production Waste of waiting time of waiting time Transportation waste Processing waste Inventory waste Waste of motion Waste from product defects • • • • • • WHAT IT REQUIRES Employee participation Industrial engineering/basics Continuing improvement Total quality control Small lot sizes WHAT IT ASSUMES • Stable environment LeanProduction‐Sp10 7 LeanProduction‐Sp10 8 MGMT 36100 MGMT 36100 Companies using Lean Manufacturing 1885: James Trane opens a plumbing store in La Crosse, WI. 1931: First A/C unit, the Trane Unit Cooler, developed. 1984: Acquired by American Standard Inc. 2006: Sales and manufacturing locations around the world. JIT JIT System: Used in all departments Key Objectives: More responsive to customer requirements and market demand. To lower manufacturing costs. Provide all employees with a sense of contribution and self-worth. self- Fundamental Principles: Main Elements: 1.Eliminate 1. Eliminate waste 1. Schedule only when needed. 2.Reduce 2. Reduce Inventory 2. Job / flow design. 3.Meet 3. Meet exact needs at exact time 3. Self – stop. 4. Management / labor focus. LeanProduction‐Sp10 9 LeanProduction‐Sp10 10 MGMT 36100 MGMT 36100 JIT - Fundamental Principles : 1. Eliminate Waste. 1.1 Over production. 1.2 Excess inventory. 1.3 Products waiting in queues. 1.4 Unnecessary moves (poor layout operation layout, operation sequence). sequence). 1.5 Large set-up times. set1.6 Waiting (due to shortage / scheduling). 1.7 Expediting. 2. Reduce Inventory. 2.1 Expose hidden problems. 3. Meet exact needs at exact time. 3.1 Small lot size. 3.2 Pull system. 3.2.1 High degree of planning. 3.2.2 Flexibility. 3.2.3 Level production. 3.2.4 Minimum difference in products 11 JIT – Main elements : 1. Schedule only when needed. 1. Production = sales. Mixed model (small lot) vs. batch production To use mixed model production, we need reduced set-up settime. When set-up times are small, capacities for mixed setmodel and batch production are about the same. Standardize Box A Box B Improved design Box B Using common handles on both boxes, you can achieve overall savings, although cost of handle may be higher on for box B. LeanProduction‐Sp10 12 LeanProduction‐Sp10 MGMT 36100 MGMT 36100 LeanProduction-Sp10 2 JIT – Main elements : 2. Job / flow design. 2. Increase added value. value. Reduce wait and move time. Better layout / small batch 2, 3 60 2 50 2, 3 60 5, 1 50 1, 5 50 1, 4 60 4 40 3, 4 50 5, 6 60 6, 7 50 6, 7 50 60 JIT – Main elements : 3. Self stop 3. When problem arise in production, get help (Andon). Root cause Analysis: Five whys? Machine stopped 1. Why? Fuse blown. 2. Why? Inadequate bearing lubrication. 3. Why? Lubrication pump failed. 4. Why? Worn shaft. Wh 5. Why? Chips entered inlet port (no strainer). Which Which design is better? 7 20 0 Stn. 1 Stn. 2 Stn. 3 Stn. 4 JIT – Main elements : 4. Management-labor focus 4. ManagementTo improve common understanding of business directions. Employee participation: focus groups, quality circles. 13 LeanProduction‐Sp10 14 Mistake proofing: Which manhole design is better? LeanProduction‐Sp10 MGMT 36100 MGMT 36100 Root cause Analysis: Another example 1. Why is our largest customer unhappy? .. Our deliveries of bicycles have been late for the last month. 2. Why have our deliveries been late for the last month? .. Production has been behind schedule. 3. Why has production been behind schedule? .. There is a shortage of wheels. 4. Why are we having a shortage of wheels? .. Incoming are we having shortage of wheels? .. Incoming inspection inspection has rejected a large number of wheels for not being round. 5. Why are we rejecting so many parts? .. Purchasing switched to a cheaper supplier that has inconsistent quality. System: A group of independent but interrelated elements comprising a unified whole. Using best individual components does not guarantee best system. •Focused factory networks. Waste Elimination •Group Technology •Quality at source •JIT production •Uniform plant loading •Kanban production control system •Minimized setup time. Respect for people LeanProduction‐Sp10 15 LeanProduction‐Sp10 16 MGMT 36100 MGMT 36100 Expose Problems Remove the obstacle Reducing Waste: Synchronization with demand PUSH: Inputs availability triggers execution Supplier inputs Process outputs Customer PULL: Outputs need triggers execution Customer demand pulls product WIP reduced Supplier Poor quality Long leadtime MGMT 36100 inputs Process outputs Customer Bad material Poor maintenance 18 LeanProduction‐Sp10 Taiichi Ohno 21 LeanProduction‐Sp10 MGMT 36100 LeanProduction-Sp10 3 Kanban • Card - typically carried in transparent covers. • There are many systems using one or more Kanban cards; Here is an example using two cards - Move (Withdrawal ) Kanban (card), production Kanban. These come in matching sets. Move Kanban Item no. : P447 Box Capacity : Preceding process: Subsequent process: Production Kanban Item no. : P447 Process: Xxx: Yyy: Reducing Batch Size Four products: A B C D 1 Hr. 1 Hr. 1 Hr. Conventional method: Batch of 20 20 40 60 80 100 Lean method: Batch of 1 Conventional TPT CT WIP 60 Hrs 1 Hr/unit 60 units Lean 3 Hrs 1 Hr/unit 3 units 23 • Other systems: Kanban squares, Container system, Colored golf balls. LeanProduction‐Sp10 22 LeanProduction‐Sp10 MGMT 36100 MGMT 36100 1 Hr. 1 Hr. 1 Hr. What if we have to produce different products and there is set- up time involved? set- Time magazine: Nov. 8, 2004 Jim Davis (Boston) bought company in 1972 – 6 employees. Specializes in sports shoes (also makes other accessories). Only company with 5 factories in the USA (some overseas). Pay: 12$/ hour, competes with 0.4$/hr. Market share Nike Reebok Addidas New Balance 1993 2003 32.2% 36.4% 20.9% 12.5% 3.1% 9.1% 1.7% 10.9% Batch of 20 Last summer, re-engineered a factory in, Maine, following Toyota's refamously flexible production system. Batch of 1 Need to reduce setup times! Departments were replaced by cells, saving 40% of floor space. Smaller batches are assembled, and if anyone identifies a faulty stitch, for instance, the problem is fixed before a large batch of defective shoes can pile up. Cut production cycle from 8 days to 8 hours, slashing inventories. LeanProduction‐Sp10 LeanProduction-Sp10 MGMT 36100 24 2006 sales: 1.55 billion dollars. MGMT 36100 25 V L Louis Vuitton tries tries modern methods on factory lines. Monday, October 09, 2006. The Wall Street Journal September 23, 2008. The Wall Street Journal Until a few years ago, most auto plants in North America could make only one vehicle without substantial investment. A year ago, it took 20 to 30 craftsmen to put together each Louis Vuitton "Reade" tote bag. Over the course of about eight days, separate workers would sew together leather panels, glue in linings and attach handles. Then, inspired by car maker Toyota Motor Corp. and egged on by outside management consultants the egged on by outside management consultants, the venerable venerable French luxury-goods house discovered luxuryefficiency. Today, clusters of six to 12 workers, each of them performing several tasks, can assemble the $680 shiny, LV-logo bags in a single day. LVRead Read from the textbook: Jefferson Pilot Financial / BMW LeanProduction‐Sp10 26 Now, many have a few flexible plants. A Ford Motor Co. plant in Oakville, Ontario, for example, makes three different vehicles, and many plants can produce slight variations on one basic car or truck. But switching from one model to a completely different one still can take weeks and millions of dollars. One recent morning, the Honda Motor co.. plant here churned out recent morning the Motor co.. plant here churned out 120 120 Civic compacts. Then the production line came to a halt and workers in white uniforms swept in to install new hand-like parts on handthe giant gray robots that weld steel into the cars' frames. About five minutes later, the line roared back to life, and the robots began zapping together a longer, taller vehicle, the CR-V crossover. CRIn In the automotive world, this is considered quite a feat. LeanProduction‐Sp10 27 MGMT 36100 MGMT 36100 LeanProduction-Sp10 4 ...
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