Chapters 7 & 8 (JIT /LEAN production & Push/pull systems)

Jidoka

"Automation with a human touch" -Automatically stopping the process when something is wrong and then fixing the problems on the line itself as they occur

Kanzien event (Kaizen blitzes)

"Improvement now" -Immediate and short time frame (1-3 days) focus by all required to address a problem

Poka-yoke

"Mistake-proofing" -Methods aimed at designing fail-safe systems for minimizing human error

Andon

"light" -A system that gives machines and machine operators the ability to signal the occurrence of any abnormal condition such as tool malfunctions, shortage of parts or the product being made outside the desired specification

Kanzien

-"Improvement" -Continuous improvement occurring all the time

Kanban

-"Signboard, billboard" -Method of production authorization and material movement

Gemba

-"The real place" -Place where the work is performed

Takt time

-"rhythm, beat of the music" -The rate that a completed product needs to be finished in order to meet customer demand Or: The cycle time needed to match the rate of production to the rate of sales or consumption

Weakness of push system (MRP)

-Accurate forecast of customer demands and production lead times is essential

Weakness of a pull system (Kanban)

-Each station in the process must be able to respond quickly to requests for more materials -It is essential that the JIT production philosophy is followed (IE short setup times/ small lot sizes)

Muda

-Elimination of waste -Anything that does not contribute to the value of product or service

Kaizen event

-Focusing on specific areas for improvement -Identify and eliminate waste that is otherwise hidden

Cultural fit for Lean/JIT

-Need a cultural that facilitates cooperation and harmony between organizations -Difference between cooperate cultures of Japan/ US

Supplier relationships in LEAN system

-Viewed as the "external factory" -Co location; Frequent deliveries -Fewer suppliers -No inspection (high quality is assumed/ required)

Kanbans and systematic productivity improvements

1. Buffer inventory is used to protect against uncertainty and inefficiencies -Buffer inv. hides process problems -Ideal situation for JIT is no buffer inv. -However, no buffer inv. is not practical in most cases 2. Using Kanbans for improvements -The number of kanbans equates to the maximum buffer inventory size -Minimizing the number of kanbans available will reveal problems that need to be resolved

5 why's technique

Asking why to find the root cause of a problem

Elements of successful JIT/ LEAN organizations

Conceptual elements: 1. The passion for operational efficiency 2. Treating people as valuable assets 3. Designing quality into culture 4. World class supply chain partnerships Strategic elements: -A well conceived plant and equipment strategy -A LEAN manufacturing strategy -A level production strategy

Kaizen

Continuously improving the value of the products and services

Value stream mapping (VSM)

Creates a visual map of every work element involved in the flows of materials/information throughout the supply chain Includes: 1.The current state 2.The future state 3. The implementation plan -An extension of process flowcharting -Includes both value adding AND non value adding activities -Requires gemba -Is a qualitative lean tool for eliminating waste

Lean Systems

Operations systems that maximize the value added by each of a company's activities by removing waste and delays

Supermarket- material location

Removal of material from the Supermarket is triggered by kanban cards, min/max designation, electronic signal, lights, or routine "milk runs" by material handling

Main objective of Lean Production Systems

Satisfy customer needs on the highest possible level through the elimination of waste

The Kanban system

Signals the need for more parts -Uses simple cards, signals, containers etc to control production/ inventory -Each work center receives production order from succeeding work center -The basic idea is that no station is permitted to produce more than is immediately required by the succeeding station -This simple idea prevents the buildup of inventory

Just-in-time (JIT) PHILOSOPHY

The belief that waste can be eliminated by cutting unnecessary capacity or inventory and removing non-value-added acitivities in operations -This PHILOSOPHY is based on 1. Elimination of waste 2. Continuous improvement

Evolution of LEAN

Toyoto Production System (TPS): -Required the change of the entire organization's culture -Developed in Japan -Also know as Just In Time Manufacturing Lean production: -Term coined in late 1980's -Popularized in the 90's by Womack, Jones, and Roos "The Machine that Changed the World"

Hybrid production system

Using both push and pull production systems at different levels -Select different approaches to enhance both material planning and shop floor scheduling efficiencies

Paper kaizen guidelines

Do NOT include: 1. Any walking as a work element 2. Any out of cycle work for operators as work elements 3. Operators waiting for machines to cycle as a work element 4. Time for removing finished parts from machines wherever your automation could be used

Push production planning system

1. material flow is guided by forecasts of demand 2. Specific inputs used to guide material flow -Master schedule, BOM, etc 3. Independently optimized serial operations Objectives: -Minimize inventory investment -Maximize facility and worker utilization

Difference between push/ pull systems

3 general ways to distinguish the two: 1. Order release 2. Information flow 3. Shop floor WIP inventory Pure push system: -The central planning system initiates materials flow -No controlling WIP level

JIT Kanban Production Phasing System (Pull method)

A kanban card is an easily understood, visual signal -The upper bound on the WIP inventory is set by the number of kanban cards

Lean Just in time (JIT) PRODUCTION

A powerful management process based on planned elimination of all waste and on continuous improvement Reduces: 1. Inventory levels 2. Variability 3. Delivery lead times 4. Setup costs

Push system

A production system that focuses on maximizing the use of production capacity, and therefore is based on ESTIMATED customer demand

Pull system

A production system that uses customer demand as the primary driver for production planning

Lean as a set of bundles

A set of several manufacturing practices bundles including: 1. Just-in-time (JIT) 2. Total quality Management (TQM) 3. Total Productive Maintenance (TPM) 4. Human Resource Management (HRM)

Lean production system

A set of several manufacturing practices including: 1. Elimination of waste 2. Continuous improvement 3. World class customer service 4. Worker empowerment 5. Process focus 6. Pull production 7. Set up time reduction

JIT/ LEAN implementation steps

1. Complete commitment from top management is needed 2. Involve the work force 3. Reduce set up time 4. Implement level production 5. Reduce lot sizes throughout the production process 6. Make capacity adjustments in each department 7. Remove WIP inventories from the storage room to the production floor 8. Extend JIT philosophy to suppliers 9. Assist suppliers with quality assurance 10. Negotiate long term supplier contracts 11. Remove purchased inventory from store-room and place it on the shop floor

Kotter's 8 steps of change

1. Create a sense of urgency 2. Put together the guiding team 3. Develop the change visions and strategy 4. Communicate for understanding and buy-in 5. Empower others to act 6. Produce short term wins 7. Dont let up 8. Create a new culture

Lean Tenets

1. Create product/ service value from customer perspective -Reduce waste (MUDA) 2. Identify, study, improve the value stream -Observe the process (GEMBA) 3. Ensure simple, smooth, error-free flow -Determine TAKT TIME 4. Produce only what is pulled by customer -Use KANBANS 5. Strive for perfection -Hold KAIZEN events, 5S, 5 WHYS

Reasons for JIT/ Lean adoption failures

1. Cultural differences 2. Geographical dispersion of suppliers 3. Supplier power 4. Different management styles 5. It's more than just applying the tools

the Kanban system

1. Each container must have a card 2. Assembly always withdraws from fabrication 3. Containers cannot be moved without a kanban 4. Containers should contain the same number of parts 5. Only good parts are passed along 6. Production should not exceed authorization

Reducing setup time

1. Increases available capacity 2. Increases flexibility to meet schedule changes 3. Reduces inventory setup types: 1. Single (Single digit minutes) 2. One touch (Less than 1 min; 2 step process)

Examples of Kanban signals

1. Kanban cards 2. Tags on a board 3. Golf balls 4. Lights 5. Faxes/ phone calls 6. Yelling

Pull production planning system

1. Material flow is determined by the need of the downstream workstation -When/how much is needed, when product should move on to next station 2. Control is transferred from the beginning of the line to the end Objectives: 1. Minimize the number of items pulled at the same time to that only needed to manage natural variation 2. Ideal pull is a single piece flow

Engaging workers

1. Multifunction, cross trained workers -Flexibility to move to busy work centers 2. New pay system to reflect skills variety 3. Workers contribute individually and collaboratively -Perform own maintenance and inspection -Team work/ problem solving -Suggestion systems

Examples of pull production rules

1. Only withdraw in specific quantities at a specific point in time 2. Produce in the quantities withdrawn by the subsequent process 3. Defective products should never be dispatched 4. Minimize the number of kanbans 5. Rebalance and revise the whole system when demand fluctuates with more than 10%

8 types of waste (Muda)

1. Overproduction 2. Time waste (Labor/machines) 3. Transportation waste (Moving items) 4. Underutilization of employees skills 5. Motion waste (Searching for tools) 6. Processing waste (Too many steps) 7. Inventory waste (Extra inventory) 8. Defects

Stabilizing the Master schedule

1. Production horizon set according to demand 2. Production schedule repeated each day 3. Produce planned quantity each day 4. Uniform load: Level work load across all workers/ machines 5. Takt time: Match supply (Production rate) to demand rate

2 types of Kanban

1. Production kanban 2. Withdrawal kanban

Quality in a LEAN system

1. Quality is essential input into lean system 2. Defects are waste 3. No inventory to cover up mistakes 4. System designed to expose errors; correct them at their source (So not repeated) 5. Continuous improvement of the process

JIT purchasing advantages.

1. Reduced inventory levels 2. Improved lead time reliability 3. Scheduling flexibility 4. Improved quality and customer satisfaction 5. Reduced costs of parts 6. Constructive synergies with suppliers

Critical elements of JIT purchasing

1. Reduced order quantities -Small lot sizes for production 2. Reduction in order costs 3. Reduce lean times 4. Frequent/ on time delivery schedule -Narrow delivery windows/ low ordering costs/ small lot sizes 5. high quality of incoming materials -Responsibility of supplier 6. Reliable suppliers -Smaller supplier base

Elements of lean system

1. Stabilizing the master schedule 2. Controlling flow with kanban system 3. Reducing setup time (Quick changeover) 4. Small lot sizes (Lot size one) 5. Efficient layout (Linear flow, low inventories) 6. Preventive maintenance 7. Cross-training, rewarding workers 8. Quality/ continuous improvement 9. Close relationships with suppliers (Frequent deliveries)

Paper kaizen

By design, eliminate waste from the process -Always break down work into work elements

"Just-in-case" (JIC) perspective vs. JIT perspective

JIC: -Inventory provides protection -Adding inventory creates problems JIT: -Inventory hides problems -Inventory should be reduced