Jit Combine

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JUST-IN-TIME AND LEAN PRODUCTION

Contents

1 ABSTRACT

2 INTRODUCTION

3 LIST OF FIGURE

4 LEAN MANUFACTURING

4.1 What is Lean Manufacturing

4.2 Definition

4.3 The 3 Ms of Lean

4.4 The 5 Ss of Lean

4.5 Who Uses Lean Manufacturing?

4.6 Why do organizations want to use lean manufacturing techniques?

4.7 Lean manufacturing techniques focus on:

4.8 How do you sustain lean manufacturing techniques?

4.9 The Five Steps of Lean Implementation

5 TOYOTA PRODUCTION SYSTEM (TPS)

5.1 Brief History

5.2 What is TPS?-Quick Definition

5.3 Expanded Definition

5.4 How Can TPS Help Organization?

5.5 Problems of Toyota Production System

5.6 Conclusion


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6 JUST-IN-TIME (JIT)

6.1 What is Just-In-Time? (JIT)

6.2 Planning for JIT

6.3 Defining the Planning

6.4 Basic objectives

6.4.1 Integrating and optimizing every step of the manufacturing process

6.4.2 Producing quality product

6.4.3 Reducing manufacturing cost

6.4.4 Producing product on demand

6.4.5 Developing manufacturing flexibility

6.4.6 Keeping commitments and links made between customers and

suppliers

6.5 What Just-In-Time means to materials management

6.6 Push and Pull Manufacturing

6.7 Kanban

6.7.1 How to implement kanban

6.7.2 Responsive of Kanban to customers

6.7.3 Continual Improvement of Just In Time

6.7.4 Benefits of implementation of Kanban

6.8 Time Waste and Just-In-Time

6.9 Machine Setup Time and the SMED System

6.10 Conclusion
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AUTONOMATION

What is Autonomation

Purpose and implementation

The Role of Autonomation

7 AGILE MANUFACTRING

7.1 What is Agile Manufacturing?

7.2 Market Forces

7.3 Reorganizing the Production System for Agility

7.4 Managing Relationship for Agility

7.5 Agility versus Mass Production

7.6 Issues and Problems of Agile Manufacturing

7.7 Future Development of Agile Manufacturing

7.8 Conclusion

8 LITERATURE REVIEW

9 METHODOLOGY

10 RESULT AND DISCUSSION

11 CONCLUSION

12 REFERENCE

13 APPENDICES

1. ABSTRACT


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This report is discussed about the Just-In-Time (JIT), lean production and agile

manufacturing that applied in the manufacturing industries. We have search from the

internet and book about the history and the origin place of JIT, lean production and

agile manufacturing. Besides, what this manufacturing system is all about also had

been search from internet and book. We have done some search from internet and

book why industries are using this manufacturing system and its pro and con to the

companies that using that system. After searching all this information; we have

understood these three titles. Then, we have a discussion to discuss what we have

found and understood.

In general, the first production system that been used is Mass production. It is the

production of large amounts of standardized products onproduction lines and it was

popularized by Henry Ford in the early 20th century, notably in his Ford Model T.

Then, the Japanese manufacturing industry introduced Lean manufacturing after spent

years analyzing a system that eliminate unnecessary waste. Lean Manufacturing is an

operational strategy oriented toward achieving the shortest possible cycle time by

eliminating waste.The US industry enters to a new manufacturing system, which is

called Agile manufacturing to restore their competitiveness after Japanese introduced

Lean. Agile is a term applied to an organization that has created the processes, tools,

and training to enable it to respond quickly to customer needs and market changes

while still controlling costs and quality.

2. LIST OF FIGURE
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Figure Title Page

4.1 Early definition of Lean.

4.2

6.1 Global view of the Just-In-Time system

6.2 Build schedule and materials flow in a push system.

6.3 Build schedule and materials flow in a pull system.

6.4 Production Kanban

6.5 Withdrawal Kanban

3. INTRODUCTION

Since the 1950s the manufacturing industries have been dominated by the

paradigm of mass production, which has led to enormous wealth creation and

supported an ever increasing standard of living. But there has been a price to pay for

this prosperity. As the US factories became geared up to producing large volumes of

low variety and low cost product, they became inflexible and lost the capability to

respond to rapid shifts in market conditions. This was not a problem, as long as

everyone was playing the same mass production game, but it is now clear that

Japanese competitors were not playing this game. Over an extended period the

Japanese developed own manufacturing paradigm, what today we call lean

manufacturing. Lean manufacturing is a comprehensive term referring to

manufacturing methodologies based on maximizing value and minimizing waste in

the manufacturing process.


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Lean manufacturing was not developed overnight. The Japanese gradually

worked away at the development of their manufacturing paradigm, with companies

like Toyota acting as pioneers, in much the same way that Ford pioneered mass

production. As the lean manufacturing paradigm became established in Japan, it was

generating competitive edge for the US and European industry, which still using mass

production. If US and European industry want to adopt lean manufacturing, it can

only be a short term measure aimed at doing something to close the competitive gap

with Japanese industry.

Then, the US and European industry introduce the agile manufacturing to catch

up with and overtake the Japanese. Agile manufacturing is primarily a business

concept. Its aim is quite simple-to put the US enterprises way out in front of the

Japanese industry, the US industry competitors. In agile manufacturing, the aim is to

combine the organization, people and technology into an integrated and coordinated

whole.

4. LEAN MANUFACTURING

Lean manufacturing or lean production are reasonably new terms that can be traced to

Jim Womack, Daniel Jones and Daniel Roos book, The Machine that changed the

world [1991]. In the book, the authors examined the manufacturing activities

exemplified by the Toyota Production System. Lean manufacturing is the systematic


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elimination of waste. As the name implies, lean is focused at cutting fat from

production activities. It has also been successfully applied to administrative and

engineering activities as well. Although lean manufacturing is a relatively new term,

many of the tools used in lean can be traced back to Fredrick Taylor and the

Gilbreaths at the turn of the 20th century. What Lean has done is to package some

well-respected industrial/manufacturing engineering practices into a system that can

work in virtually any environment.

4.1 What is Lean Manufacturing?

In its most basic form, lean manufacturing is the systematic elimination of waste from

all aspects of an organizations operations, where waste is viewed as any use or loss of

resources that does not lead directly to creating the product or service a customer

wants when they want it. In many industrial processes, such non-value added activity

can comprise more than 90 percent of a factorys total activity. Nationwide, numerous

companies of varying size across multiple industry sectors, primarily in the

manufacturing and service sectors are implementing such lean production systems,

and experts report that the rate of lean adoption is accelerating. Companies primarily

choose to engage in lean manufacturing for three reasons: to reduce production

resource requirements and costs; to increase customer responsiveness; and to improve

product quality, all which combine to boost company profits and competitiveness. To

help accomplish these improvements and associated waste reduction, lean involves a

fundamental paradigm shift from conventional batch and queue mass production to


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product-aligned one-piece flow pull production. Whereas batch and queue

involves mass production of large lots of products in advance based on potential or

predicted customer demands, a one-piece flow system rearranges production

activities in a way that processing steps of different types are conducted immediately

adjacent to each other in a continuous flow.

4.2 Definition

Lean production is an assembly-line manufacturing methodology developed originally

for Toyota and the manufacture of automobiles. It is also known as the Toyota

Production System. The goal of lean production is described as "to get the right things

to the right place at the right time, the first time, while minimizing waste and being

open to change". Engineer Ohno, who is credited with developing the principles of

lean production, discovered that in addition to eliminating waste, his methodology led

to improved product flow and better quality.

Instead of devoting resources to planning what would be required for future

manufacturing, Toyota focused on reducing system response time so that the

production system was capable of immediately changing and adapting to market

demands. In effect, their automobiles became made-to-order. The principles of lean

production enabled the company to deliver on demand, minimize inventory, maximize

the use of multi-skilled employees, flatten the management structure, and focus

resources where they were needed.


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During the 1980s, the set of practices summarized in the ten rules of lean production

were adopted by many manufacturing plants in the U.S. and Europe. The management

style was tried out with varying degrees of success by service organizations, logistics

organizations and supply chains. Since the demise of many dot.coms, there has been a

renewed interest in the principles of lean production, particularly since the philosophy

encourages the reduction of inventory. Dell Computers and Boeing Aircraft have

embraced the philosophy of lean production with great success.

The ten rules of lean production can be summarized:

1. Eliminate waste

2. Minimize inventory

3. Maximize flow

4. Pull production from customer demand

5. Meet customer requirements

6. Do it right the first time

7. Empower workers

8. Design for rapid changeover

9. Partner with suppliers

10. Create a culture of continuous improvement

Figure 1 provides a definition of lean as a function of the outcomes that one realizes.

The definition comes from Womack and it identifies the results rather than the method

of lean. In the following sections, the procedures and specifics of lean will be


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introduced.

Figure 4.1 Early definition of Lean.

4.3 The 3 Ms of Lean

Lean manufacturing is a Japanese method focused on 3Ms. These Ms are: muda, the

Japanese word for waste, Mura, the Japanese word for inconsistency, and muri, the

Japanese word for unreasonableness. Muda specifically focuses on activities to be

eliminated. Within manufacturing, there are categories of waste. Waste is broadly

defined as anything that adds cost to the product without adding value to it.

Generally, muda (or waste) can be grouped into the following categories:

1. Excess production and early production

2. Delays

4. Poor process design

5. Inventory

6. Inefficient performance of a process

7. Making defective items

These wastes are illustrated in Figure 2

Definition of Lean

Half the hours of human effort in the factoryHalf the defects in the finished productOne-third the hours of engineering effortHalf the factory space for the same outputA tenth or less of in-process inventoriesSource: The Machine that Changed the World Womack, Jones, Roos 1990


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Figure 4.2

Excess production results in waste because it captures resources too early and retains

the value that is added until the product can be used (sold). In todays highly changing

society, many items produced before they can are sold to a specific customer often go

obsolete before demand is realized. This means that a perfectly good product is often

scrapped because it is obsolete. Producing a product simply to keep a production

resource busy (either machine, operator or both) is a practice that should be avoided.

Delays, such as waiting for raw material, also result in the poor use of capacity and

increased delivery time. Raw materials and component parts should be completed at

approximately the time that they will be required by downstream resources. Too early

is not good, but late is even worse. Movement and transportation should always be

kept to a minimum. Material handling is a non-value added process that can result in

three outcomes: 1) the product ends up at the right place at the right time and in good


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condition, 2) the part ends up in the wrong place, and 3) the part is damaged in transit

and requires rework or scrap. Two of the three outcomes are no desirable, which

further leads to minimizing handling. Because material handling occurs between all

operations, when possible, the handling should be integrated into the process, and the

transport distances minimized.

A poorly designed process results in overuse of manufacturing resources (men and

machines). There are no perfect processes in manufacturing. Generally, process

improvements are made regularly with new efficiencies embedded within the process.

Continuous process improvement is a critical part of Lean Manufacturing.

Excess inventory reduces profitability. Today, it is not uncommon for a manufacturer

to store a suppliers product at the production site. The supplier, right up until the time

that they are drawn from inventory, owns the materials. In many ways this is

advantageous to both the user and supplier. The supplier warehouses his material

offsite, and the user does need to commit capital to a large safety stock of material.

Insufficient (or poor) process performance always results in the over utilization of

manufacturing resources and a more costly product. There is no optimal process in

that improvements can always be made; however, many processes operate far below

the desired efficiency. Continuous process improvement is necessary for a

manufacturing firm to remain competitive. Excess movement or unnecessary part

handling should be the first targets of waste elimination.

Poor quality (making defects) is never desirable. Labor and material waste results

from producing any defect. Furthermore, the cost of mitigating poor quality (rework)


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can often exceed the price of the product. A critical balance between processing speed

and quality exists. A process should be run as fast as possible without sacrificing

acceptable quality.

From the above discussion, it should be obvious that waste is a constant enemy of

manufacturing. Waste elimination should be an on-going process that focuses on

improving a process regularly. Regular reviews and worker input should be conducted

as often as allowable.

The second M is for mura, or inconsistency. Inconsistency is a problem that

increases the variability of manufacturing. Mura is evidenced in all manufacturing

activities ranging from processing to material handling to engineering to management.

Figures 18.3 and 18.4 illustrate some characterization of mura.

4.4 The 5 Ss of Lean

Much of Lean manufacturing is applying common sense to manufacturing

environments. In implementing Lean, 5 Ss are frequently used to assist in the

organization of manufacturing. The 5 Ss are from Japanese and are:

Seiri (sort, necessary items)

Seiton (set-in-order, efficient placement)

Seison (sweep, cleanliness)

Seiketsu (standardize, cont. improvement)

Shitsuke (sustain, discipline)

4.5 Who Uses Lean Manufacturing?


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Lean manufacturing processes are being used predominantly in the automotive

industry. Toyota Motor Company, considered the leader in lean manufacturing

techniques, started using the techniques during the 1950s and 1960s. They have since

built their reputation as quality leaders and boast one of the fastest growing market

shares in the automotive industry.

4.6 Why do organizations want to use lean manufacturing techniques?

To significantly improve overall productivity

To increase market share

To improve speed-to-market with new products

To reduce manufacturing and engineering labor costs

To eliminate non-value-added operations and processes

4.7 Lean manufacturing techniques focus on:

Equipment reliability

Balanced or level production

Just-in-time material control techniques

Stop-the-line to correct the problem and in-station process control

Continuous improvement processes

Statistical Process Control techniques for quality consistency

Developing human systems to support the technical processes

4.8 How do you sustain lean manufacturing techniques?


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Create a solid business case

Align systems and processes

Share the vision

Empower the workforce

Ensure the use of proper measurement systems

4.9 The Five Steps of Lean Implementation

The process used to implement lean manufacturing is a straightforward one. However

it is critical that lean is implemented in a logical manner. The steps associated in

implementing lean follow:

Step 1: Specify Value

Define value from the perspective of the final customer. Express value in terms of a

specific product, which meets the customer's needs at a specific price and at a specific

time.

Step 2: Map

Identify the value stream, the set of all specific actions required to bring a specific

product through the three critical management tasks of any business: the problem-

solving task, the information management task, and the physical transformation task.

Create a map of the Current State and the Future State of the value stream. Identify

and categorize waste in the Current State, and eliminate it!

Step 3: Flow

Make the remaining steps in the value stream flow. Eliminate functional barriers and

develop a product-focused organization that dramatically improves lead-time.


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Step 4: Pull

Let the customer pull products as needed, eliminating the need for a sales forecast.

Step 5: Perfection

There is no end to the process of reducing effort, time, space, cost, and mistakes.

Return to the first step and begin the next lean transformation, offering a product that

is ever more nearly what the customer wants.

5 TOYOTA PRODUCTION SYSTEM (TPS)

5.1 Brief History

Also known as the Toyota Production System (TPS), the Lean Manufacturing

principles was adopted when Japan started rebuilding after World War II.

Faced with daunting material and financial resource problems, Toyota Motor

Company developed a highly-disciplined and process-focused production system with

the sole objective of minimizing the consumption of resources that do not have any

added value to the product.

The word lean is being used to reflect the Japanese business approach in employing

less human resource, less money/capital, less materials, etc. in all aspects of

business operations.

The Lean Manufacturing, or Lean Production principles, is the reason why Toyota has

been very successful in their chosen industry for several decades now. It is also the


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reason why manufacturing industries all over the world are adopting the same

Japanese production disciplineto varying scale and styleto achieve the same

success.

5.2What is TPS?- Quick Definition

Synonymous with Lean Manufacturing and Lean Production, the Toyota Production

System is a manufacturing methodology developed over a 20 year period by Toyota of

Japan. In the most simplistic definition of TPS all manufacturing activities are divided

into adding value or creating waste. The goal of TPS is to maximize value by

eliminating waste.

5.3 Expanded Definition

Taiichi Ohno is generally credited as being the father of TPS. Mr. Ohno was the Vice

President of manufacturing for Toyota and the driving force behind the creation of

Toyota Production Systems. The first documentation of TPS was a paper presented in

August 1977. TPS has since been codified in several books.

TPS is a system that was developed initially to account for the specific issues facing

one company. The revolutionary ideas and concepts pioneered at Toyota have been


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used in many other organizations and industries throughout the world. Value is truly

the central focus of TPS. By defining and understanding value, TPS has evolved to

help companies maximize value. In this system all activities relating to the

manufacturing process are classified as adding value or waste.

The goal of companies using TPS is to provide the exact quantity, with the exact

quality, exactly when the customer wants it. The tools used to identify and minimize

non-value adding activities make up TPS. However TPS is not a static system, rather

it allows for continued change and improvement. Perhaps the true brilliance in TPS is

not the tools and techniques in existence, but the underlying system that allows for

new techniques to be understood and created.

Defining value can be one of the most difficult tasks a company can undertake. TPS

has addressed this issue with a very elegant solution; value is an item or feature for

which a customer is willing to pay. When this metric of value is implemented it

allows companies using TPS to have an exceedingly clear vision when analyzing an

activity or process. No organization likes waste; however it is difficult to eliminate

waste if it cannot be identified. The Toyota Production System forces companies to

ask, Would someone pay for this? If the answer is no, then its waste.

Once waste has been identified, it can then be eliminated. Tools to eliminate waste

have evolved around the most common areas of waste or muda as it is called in

TPS. The Toyota Production System further defines waste as activities that consume


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time, resource and/or space but do not add value. The seven categories of muda are

identified as:

Overproduction - producing more than, faster than or sooner than is required

Waiting - idle time that could be used productively

Transporting - unnecessary transport of parts or materials

Inappropriate processing - operations that add no value from the customer's

perspective

Unnecessary inventory - exceeding one-piece flow

Unnecessary/excess motion - any movement by people or equipment that does

not add value

Defects - rework, repair or waste in its simplest form

Poka Yoke, or error proofing, is a technique to eliminate the waste of defective

product by not producing it in the first place. As defective product is identified, the

root cause of how the product was made defective is determined, and then a poka

yoke is created to insure that cause can not occur again. Excess inventory is typically

minimized by manufacturing from a pull system. As product is sold to the end

customer a Kan-Ban system pulls replacement product through the system. By

building as a direct result of customer activity, waste in the form of excess inventory

is minimized or eliminated. Wasted time typically refers to set up and die change

applications. SMED (Single Minute Exchange of Die) techniques are used to

minimize time lost to production changeovers.


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Although techniques such as Poka Yoke, Kanban, and SMED are concrete well

understood techniques to minimize waste and eliminate errors, they are components

of the overall TPS. These techniques are not the definition of TPS rather they are a

result of TPS. By codifying and understanding the relationship of manufacturing

practices and end customer value TPS allowed Toyota to grow into a world class

manufacturing company.

5.4How Can TPS Help Organization?

Companies that pursue and emulate TPS best practices have seen much success as a

result of this highly effective manufacturing philosophy. Some of the benefits include:

Identify and enhance customer perceived value

Decrease waste and cost in the manufacturing process

Improve product quality and on-time delivery

Develop a competitive world class manufacturing operation

The TPS is a system that has given companies a blueprint for manufacturing

excellence.

5.5 Problems of Toyota Production System


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The Toyota production system may bring good benefit for companies, but the system

may induce new issues too because the system does not always think about workers.

In fact, Toyota has issues of Karoshi/major depression, etc.

5.6 Conclusion

Lean manufacturing raises the threshold of acceptable quality to a level that mass

production cannot easily match. It offers ever-expanding product variety and rapid

responses to changing consumer tastes. It lowers the amount of high-wage effort

needed to produce a product, and it keeps reducing it through continuous incremental

improvement.

6. JUST-IN-TIME (JIT)

Manufacturing is no longer a local matter. Advances in communication and

transportation have greatly reduced the worlds size and manufacturing should now be

considered a world affair. The consequent varieties of choices make decisions

regarding manufacturing strategy very difficult and risky. To maintain the competitive

edge, companies engaged in manufacturing products face the difficulty of reducing

costs and improving their quality levels. Then, struggling to define their strategies,

many of these companies followed the cheap-labor-and-materials route.


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Unfortunately, companies were unable or unwilling to commit the requisite large

capital investment.

What is of most importance is to use the correct strategy in manufacturing. Most

companies have a product strategy and a marketing and sales strategy, but they do

very poorly in developing a manufacturing strategy. When these companies develop a

product and introduce it in the market against the competition, they fail because the

cost is too high, they cannot product the volume required or their quality levels are

unacceptable.

Without all three strategies, any company would be handicapped in its quest for

market dominance and would probably be doomed to failure. It is necessary to

develop a commitment to manufacturing earlier in the products development phase. It

is important to use common sense in studying the different choices and to carry out

decisions that will make the manufacturing process effective, fast and burdened with

very low overhead. That is what Just-In-Time manufacturing is all about.

6.1 What is JIT?

Just-In-Time (JIT) is an approach to production that was developed by Toyota Motors

in Japan to minimize inventories. Work-in-process and other inventories are viewed

by the Japanese as waste that should be eliminated. Inventory ties up investment funds

and takes up space (space is much more dear in Japan than in the United States).To

reduce this form of waste, the JIT approach includes a number of principles and

procedures aimed at reducing inventories, either directly or indirectly. Indeed, the


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scope of JIT is so broad that it is often referred to as a philosophy. IT is an important

component of Lean Production, a principal goal of which is to reduce waste in

production operation. Lean production can be defined as an adaptation of mass

production in which workers and work cells are made more flexible and efficient by

adopting methods that reduce waste in all forms.

In recent years, the JIT philosophy has been embraced by U.S. manufacturing

companies. Other terms have sometimes been adopted to give it an American flavor or

to indicate slight differences with the Japanese practice of JIT. These terms include

zero inventories, continuous flow manufacturing and zero inventory production

system.

Just-in-time procedures have proven most effective in high-volume repetitive

manufacturing, such as the automobile industry. The potential for in-process inventory

accumulation in this type of manufacturing is significant because both the quantities

of products and the number of components per product are large. A just-in-time

system produces exactly the right number of each component required to satisfy the

next operation in the manufacturing sequence just when that component is needed. To

the Japanese, the ideal batch size is one part. As a practical matter, more than one part

is produced at a time, but the batch size is kept small. Under JIT, producing too many

units is to be avoided as much as producing too few units. This is a production

discipline that contrasts sharply with traditional U.S. practice, which has promoted

use of large in-process inventories to deal with problems such as machine

breakdowns, defective components and other obstacles to smooth production. The


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U.S. approach might be described as a just-in-case philosophy.

6.2 Planning for JIT

It is impossible to establish a new JIT system that can be used successfully without

modification. Since each manufacturing process is different (e.g. in terms of

Goals, Product requirements, Customer requirements etc.), it is up to the

individual company to determine the degree of appropriateness and the final

Engineering

Suppliers

MaterialsManagement

Factory Process

CustomerField Service

Just-In-Timestrategy

T.Q.C. strategy

Figure 6.1 Global view of the Just-In-Time system


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application of JIT. However, it is very important to define the plan and

objectives before setting up a JIT manufacturing system.

6.3 Defining the Planning

Defining the planning process for a JIT manufacturing system requires an

understanding of the objectives of JIT, and the goals and objectives of the JIT system.

After the objectives are established for the manufacturing, the process of planning

becomes one of determining what is required to meet those objectives.

6.4 Basic Objectives

The goal of a JIT approach is to develop a system that allows a manufacturer to have

only the materials equipment and people on hand required to do the job. Achieving

this goal requires six basic objectives:

Integrating and optimizing every step of the manufacturing process

Producing quality product

Reducing manufacturing cost

Producing product on demand

Developing manufacturing flexibility

Keeping commitments and links made between Customers and Suppliers

It should be noted that obtaining these objectives does not automatically make a

company a JIT manufacturer, on the other hand failing to achieve even one of these

objectives will prevent a manufacturer from establishing a successful JIT system.
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6.4.1 Integrating and Optimizing

The manufacturing system is a continual process of reducing the number of discrete

steps required to complete a particular process rather than plateaus of steps. Removal

ofbottlenecksin the manufacturing process is a critical step in integration. One of the

best ways to accomplish this objective is to plan for 100 % defect free quality.

Integrating and optimizing will involve reducing the need for unnecessary functions

and systems such as inspection rework loops and inventory.

6.4.2Producing a Quality Product

"Total Quality Control" is one of the fundamental goals in JIT manufacturing. Total

Quality Control (TQC) emphasizes the quality at every stage of manufacture

including product design down to the purchase of raw materials. Quality control is

carried out at every stage of the manufacturing steps; from the source to the final step

rather than relying on a single processing stage which implements quality control on

the final product. Each individual and function involved in the manufacturing system

must, therefore, accept the responsibility for the quality level of its products. This

concept introduces the correction of the problem before many other defective units

have been completed.

6.4.3Reducing Manufacturing Cost

Designing products that facilitate and ease manufacturing processes helps to reduce

the cost of manufacturing and building the product to specifications. One aspect in
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designing products for manufacturability is the need to establish a good employer and

employee relationship. This is to cultivate and tap the resources of the production

experts (production floor employee), and the line employees to develop cost saving

solutions. Participatory quality programs utilize employee knowledge about their job

functions and review the department performance, encouraging with rewards for

suggested cost saving solutions.

6.4.4Producing product on demand

The fundamental principle of JIT is the concept of producing product only as needed

or on demand. This implies that product is not held in inventory, and production is

only initiated by demand. Adopting the produce-on-demand concept will ensure that

only materials that are needed are processed and that labor will be expended only on

goods that will be shipped to a customer. At the end of the production cycle, there

would be no excess inventory.

6.4.5 Developing Manufacturing Flexibility

Manufacturing flexibility is the ability to start new projects or the rate at which the

production mix can be adjusted to meet customer demand. Planning for

manufacturing flexibility requires the understanding of the elements in the

manufacturing process and identifying elements in the process that restrict flexibility

and improving on these areas. The unique feature of JIT is the change from a PUSH

to a PULL system. The idea behind this concept is that work should not be pushed on

to the next worker until that worker is ready for it.

6.4.6 Keeping Commitments and Links made between Customers and Suppliers
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The corporate commitment to developing the internal structures and the customer and

supplier bases to support JIT manufacturing is the primary requirement for developing

the JIT system. Trust and commitment between the supplier and the customer is a

must, because every Just-in-Time operation relies on it. Failure to keep the

commitments is a serious form of break-down in a JIT system.

6.5 What Just-In-Time means to materials management

Inventory is one of the most important assets that a company owns. Normally, as a

companys sales increase, the demand for cash to finance inventory follows the same

growth pattern. A Just-In-Time system dedicates a major portion of its attention to

manage the inventories throughout the manufacturing organization. It should be

pointed out that Just-In-Time doesnt mean zero inventories. Just-In-Time is a set of

procedures that are used by the materials department in working with suppliers and

with the quality, engineering and manufacturing department to reduce as much as

possible the use of buffer inventories. Just-In-Time calls for synchronizing the

movement of materials throughout the production process in such a fashion that there

are short waits between the different sub processes. Just-In-Time also moves the

materials in the factory based on consumption rather than top-down planning.

6.6 Push and Pull Manufacturing

Push system and pull systems are two broad categories of manufacturing planning

and execution systems. At the heart of the planning portion of either system lie several


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common features. Traditional push systems are typically supported by manufacturing

resource planning (MRP II), which encompasses a full range of both planning and

execution function. These include the production plan, master schedule, rough cut

capacity analysis, materials requirements planning (MRP), detail capacity

requirements planning, production scheduling and control and feedback. Pull systems

may use the same MRP II features for planning (production plan, master schedule,

rough cut capacity analysis and material requirements planning for raw material and

purchased components only), but have no formal equivalent to perform detailed

capacity requirements planning. Furthermore, in pull systems, the execution activities

of production scheduling and control are decoupled from the MRP activities and

replaced by replenishment methodologies that tend to be more visual and signal-

based.

It is primarily in the execution portions that push and pull systems diverge.

Material requirements planning not only plan, but are also the execution driver for a

typical push system. MRP analyzes the master schedule and available inventory and

yields a list of net requirements. Order policies and lead times are then applied to

provide a delivery schedule for purchased material and due dates for manufactured

parts, both supporting the master schedule timing. MRP will plan material availability

throughout the purchase and manufacture lead time horizon and generate a push

schedule. Feedback from executing the schedule is then used for replanning.

While the execution portion of a push system is tied to its planning portion

(via order launch start dates derived from a comparatively static master schedule), a


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pull system draws material through the manufacturing process when signaled by the

consumption of material at downstream operations or the need for replenishment of

buffer stocks. Common signals include kanban cards, light boards, buzzers and visual

triggers, such as empty and full containers or empty and full designated spaces. In

some cases, material handling is the carrier of the signal and where material handling

must respond to a pull signal, an immediate response is required. Because pull

schedule represent current production, they typically do not provide the lead time to

procure raw material or the reaction time to adjust future capacity. Consequently, pull

systems generally use the same planning features as push systems to plan purchased

material and perform rough-cut capacity analysis. The weakness of a push system

(MRP) is that customer demand must be forecast and production lead times must be

estimated. Bad guesses (forecasts or estimates) result in excess inventory and the

longer the lead time, the more room for error. Moreover, the weakness of a pull

system (kanban) is that following the JIT production philosophy is essential,

especially concerning the elements of short setup times and small lot sizes, because

each station in the process must be able to respond quickly to requests for more

materials.


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Sales Forecast

Demand Forecast

Master Production Schedule

MRP

Stockroom Work Orders Release

Factory Process

Finished Goods Inventories

Customers

Suppliers

Ship

Purchase Releases

Figure 6.2 Build schedule and materials flow in a push system.


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6.7 Kanban

A kanban which is one way of implementation of pull production control

system uses simple and visual signals to control the movement of materials between

work centers as well as the production of new materials to replenish those sent

downstream to the next work center.

Sales Forecast

Demand Forecast

Master Production Schedule

MRP

Stock Location

Kanban Material Releases

Factory Process

Finished Goods Inventories

Customers

Suppliers

Figure 6.3 Build schedule and materials flow in a pull system.

Forecast

Forecast

Kanban Pull

Kanban Pull

Production

Rate Required


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A kanban system is referred to as a pull-system, because the kanban is used to

pull parts to the next production stage only when they are needed. In contrast, an

MRP system or other schedule-based system is a push system, in which a detailed

production schedule for each part is used to push parts to the next production stage

when scheduled. Thus, in a pull system, material movement occurs only when the

work station needing more material asks for it to be sent, while in a push system the

station producing the material initiates its movement to the receiving station,

assuming that it is needed because it was scheduled for production.

Originally, the name kanban (translated as card or visible record) referred to

a Japanese shop sign that communicated the type of product sold at the shop through

the visual image on the sign (for example, using circles of various colors to indicate a

shop that sells paint). As implemented in the Toyota Production System, a kanban is a

card that is attached to a storage and transport container. It identifies the part number

and container capacity, along with other information, and is used to provide an easily

understood, visual signal that a specific activity is required.

In Toyotas dual-card kanban system, there are two main types of kanban:

1. Production Kanban

It is specifies the kind and quantity of product which the preceding process must

produce. The one illustrated (figure 4) shows that the machining process SB-8 must

produce the crankshaft for the car type SX50BC-150. The crankshaft produced should


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be placed at store F26-18. The production Kanban is often called an in-process

Kanban or simply a production-ordering Kanban.

2. Withdrawal Kanban (also called a "move" or a "conveyance kanban)

It is specifies the kind and quantity of product which a manufacturing process should

withdraw from one work center and deliver them to the next work center for

proceeding process. The withdrawal Kanban illustrated at figure 5 shows that the

preceding process which makes this part is forging, and the person carrying this

Kanban from the subsequent process must go to position B-2 of the forging

department to withdraw drive pinions. Each box of drive pinions contains 20 units and

the shape of the box is `B'. This Kanban is the 4th of 8 issued. The item back number

is an abbreviation of the item.

Figure 6.4 Production Kanban Figure 6.5 Withdrawal Kanban

In some pull systems, other signaling approaches are used in place of kanban

cards. For example, an empty container alone (with appropriate identification on the

container) could serve as a signal for replenishment. Similarly, a labeled, pallet-sized

square painted on the shop floor, if uncovered and visible, could indicate the need to


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go get another pallet of materials from its point of production and move it on top of

the empty square at its point of use.

The Dual-card Kanban Rule is no parts are made unless there is a production

kanban to authorize production. If no production kanban are in the in box at a work

center, the process remains idle, and workers perform other assigned activities. This

rule enforces the pull nature of the process control. There is exactly one kanban per

container. Containers for each specific part are standardized, and they are always

filled with the same (ideally, small) quantity.

Decisions regarding the number of kanban (and containers) at each stage of the

process are carefully considered, because this number sets an upper bound on the

work-in-process inventory at that stage. For example, if 10 containers holding 12 units

each are used to move materials between two work centers, the maximum inventory

possible is 120 units, occurring only when all 10 containers are full. At this point, all

kanban will be attached to full containers but no additional units will be produced.

This is because there are no unattached production kanban to authorize production.

This feature of a dual-card kanban system enables systematic productivity

improvement to take place. By deliberately removing one or more kanban together

with the containers from the system, a manager will also reduce the maximum level of

work-in-process inventory. This reduction can be done until a shortage of materials

occurs. This shortage is an indication of problems, such as accidents, machine

breakdowns, production delays, defective products, which were previously hidden by

excessive inventory. Once the problem is observed and a solution is identified,


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corrective action is taken so that the system can function at the lower level of buffer

inventory. This simple, systematic method of inventory reduction is a key benefit of a

dual card kanban system.

6.7.1 How to implement kanban

Before implementing kanbans, there are some important warnings. Kanbans are an

execution tool, but they are essentially backward looking, replacing what was used.

Kanbans provide no forward visibility about the need for people, material and

equipment. In a simple company, kanbans can be supported by sales and operations

planning using rough cut capacity planning to provide the resource plan. The material

has to be provided either by good kanban arrangements with suppliers or safety

stocks. In larger and more complex situations a full MRP II or material planning

system is essential to support kanbans. Therefore, unless the company has a very

simple product and a steady and predictable order book and has a good material

planning system, kanbans should only be implemented.

When implementing kanbans, the first step is to educate everyone involved in the

use of kanbans. Because kanbans are different from the way most people are used to

working, everyone using kanbans must understand the rules otherwise they are very

likely to undermine the kanbans. The rules are simple:

Make or move materials and products when, but only when, there is a kanban

signal

Never pass on a known defect but pass it back to the person who passed it to

you.


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All work in kanban areas must be under kanban control, no "squirrel" stores.

Start with internal kanbans where appropriate. Kanbans work best where there is

the same or similar products being manufactured repetitively. Kanbans also work

where components are the same or similar and can be replenished by kanbans.

Once the internal kanbans have started, the suppliers need to already have kanban

arrangements. Thus, use these to get a quick start with supplier kanbans.

Once kanbans have been established, start to educate customers in the use of kanbans

and form kanban partnerships with them.

6.7.2 Responsive of Kanban to customers

Kanban results in a production system that is highly responsive to customers.

When the time goes on, the production of widgets will vary depending on customer

demand. And as the widget demand varies, so will the internal demand for widget

components. Instead of trying to anticipate the future, Kanban reacts to the needs.

This is because in the reality, predicting the future is difficult.

Kanban does not necessarily replace all existing material flow systems within a

facility. Other systems such as Materials Requirement Planning (MRP) and Reorder

Point (ROP) may remain in operation. In practice, Kanban scheduling systems are

often a good choice. They can be a transition between MRP and ROP approaches.

Kanban is most beneficial when high volumes with low value components are

involved. For low volume and high value components, other materials management

system may be a better option.


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6.7.3 Continual Improvement of Just In Time

Kanban is directly associated with Just-In-Time (JIT) delivery. However, Kanban

is not another name for just-in-time delivery. It is a part of a larger JIT system. There

is more to managing a JIT system than just Kanban and there is more to Kanban than

just inventory management. Besides that, Kanban is not a system indented to be used

by itself. It is an integral part ofKaizen .

For example, Kanban also involves industrial re-engineering. This means that

production areas might be changed from locating machines by function, to creating

"cells" of equipment and employees. The cells allow related products to be

manufactured in a continuous flow.

Kanban involves employees as team members who are responsible for specific

work activities. Teams and individuals are encouraged participate in continuously

improving the Kanban processes and the overall production process.

6.7.4 Benefits of implementation of Kanban

Reduce inventory and product obsolescence.

Since component parts are not delivered until just before they are needed, there is a

reduced need for storage space. There is no inventory of products or components that

become obsolete. This fits well with the Kaizen system on continual improvement.

Product designs can be upgraded in small increments on a continual basis, and those
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upgrades are immediately incorporated into the product with no waste from obsolete

components or parts.

Reduces waste and scrap

With Kanban, products and components are only manufactured when they are needed.

This eliminates overproduction. Raw materials are not delivered until they are needed,

reducing waste and cutting storage costs.

Provides flexibility in production

If there is a sudden drop in demand for a product, Kanban ensures the factory is not

stuck with excess inventory. This gives them the flexibility to rapidly respond to a

changing demand. Kanban also provides flexibility in how the production lines are

used. Production areas are not locked in by their supply chain. They can quickly be

switched to different products as demand for various products changes. There are still

limits imposed by the types of machines and equipment, and employee skills.

However, the supply of raw materials and components is eliminated as a bottleneck.

Increases Output with zero defect

The flow of Kanban such as cards, pallets and so on, will stop if there is a production

problem. This makes problems visible quickly, allowing them to be corrected. Kanban

reduces wait times by making supplies more accessible and breaking down

administrative barriers. This results in an increase in production using the same

resources.


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Reduces Total Cost

The Kanban system reduces your total costs by:

Preventing over Production

Developing Flexible Work Stations

Reducing Waste and Scrap

Minimizing Wait Times and Logistics Costs

Reducing Stock Levels and Overhead Costs

Saving Resources by Streamlining Production

Reducing Inventory Costs

6.8 Time Waste and Just-In-Time

In a factory, time waste is related to the labor required to build a product, for

every product is associated with standard labor hours. These labor hours determine

not only the direct labor cost but also the overhead associated with the product. In

general, the cost of every hour that a worker uses to assemble a product is magnified

by the overhead rate of the department.

Just-In-Time broadens the concept of time waste to include more than the labor

hours invested in building a product. Material traveling from one work center to

another is a simple example. In a non-Just-In-Time factory, material travel time is less

critical. The process has plenty of buffer inventories which relaxes the need for a fast

delivery of material to work centers. In a Just-In-Time system, material travel time is

of more concern. There are no buffer inventories and worker depends on material


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from upstream processes to continue work. The material travel in smaller quantities

more frequently; thus the time it takes to go from one work center to another must be

minimized.

Another important area of time waste consists of the setup times for machinery.

In Just-In-Time, a production lot has a small number of units, which presents the

problem of frequent tooling setup changes needed to process different parts. The same

problem arises when a multiple product production line switches from one job stream

to another. The Japanese have mastered the reduction of setup time by means of the

single-minute- exchange of die (SMED).Shigeo Shingo created the SMED concept in

Japan during the 1950s.

6.9 Machine Setup Time and the SMED System

Just-In-Time calls for small lots and frequent production runs. This operation

mode helps to control excess materials in the process, but it creates the problem of

wasting additional setup time for machines. In a normal operating environment, the

time wasted in machine setup becomes more evident when frequent small lots are

processed. The single-minute exchange of die (SMED) system is a collection of

techniques used to reduce machine setup time. As the Just-In-Time idea of using small

lots evolved, SMED became associated with the system.

The SMED system is a process of systematic machine setup analysis that clearly

distinguishes every step in order to introduce time saving changes. The goal of SMED

is to crease the productivity of machines by reducing their idle time and to reduce


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machine setup from hours to minutes.

The first step in applying SMED to a particular machine is to analyze the setup

time for that machine. This analysis must clearly identify two types of setup. The

internal setup requires the machine to stop operating. During this setup, the machine

is not productive. The other is the external setup, which can be done with the machine

operating.

After this step, the goal becomes to convert internal setup tasks into external

ones. The conversion of setup tasks is an iterative process. The final step is to reduce

the time required for the tasks by using new production methods. After many

iterations, SMED will increase the productive time of a machine and reduce the idle

time required for a new setup.

6.10 Conclusions

Hence we can see that to have a Total JIT manufacturing system, a company-wide

commitment, proper materials, quality, people and equipments must always be made

available when needed. In addition; the policies and procedures developed for an

internal JIT structure should also be extended into the company's supplier and

customer base to establish the identification of duplication of effort and performance

feedback review to continuously reduced wastage and improve quality. By integrating

the production process; the supplier, manufacturers and customers become an

extension of the manufacturing production process instead of independently isolated


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processes where in fact in clear sense these three sets of manufacturing stages are

inter-related and dependent on one another. Once functioning as individual stages and

operating accordingly in isolated perspective; the suppliers, manufacturers and

customers can no longer choose to operate in ignorance. The rules of productivity

standards have changed to shape the economy and the markets today; every company

must be receptive to changes and be dynamically responsive to demand. In general, it

can be said that there is no such thing as a KEY in achieving a JIT success; only a

LADDER; where a series of continuous steps of dedication in doing the job right

every time is all it takes. The use of kanbans can made huge improvements to a

company such as dramatically reduced lead times, lower inventory and reduced

administration costs.

7. AUTONOMATION

7.1 What is Autonomation


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Autonomation transfers a level of human intelligence to automated machinery.

Machines thus detect even a single defective part and immediately stop while asking

for help.

The concept was pioneered by Sakichi Toyoda at the turn of the twentieth century. He

invented automatic looms that stopped instantly when any thread broke. This

permitted one operator to oversee many machines without risk of producing large

amounts of defective cloth.

Taiichi Ohno considered Jidoka (Autonomation is one variant) as one of the two

pillars of the Toyota Production System.

7.2 Purpose and implementation

Autonomation is called by Shigeo Shingo pre-automation. It separates workers from

machines through mechanisms that detect production abnormalities (many machines

in Toyota have these). He says there are twenty-three stages between purely manual

and fully automated work. To be fully automated machines must be able to detect and

correct their own operating problems which is currently not cost-effective. However,

ninety percent of the benefits of full automation can be gained by autonomation.

The purpose of autonomation is that it makes possible the rapid or immediate address,

identification and correction of mistakes that occur in a process. Autonomation

relieves the worker of the need to continuously judge whether the operation of the

machine is normal; their efforts are now only engaged when there is a problem alerted


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by the machine. As well as making the work more interesting this is a necessary step

if the worker is to be asked later to supervise several machines. The first example of

this at Toyota was the auto-activated loom of Sakichi Toyoda that automatically and

immediately stopped the loom if the vertical or lateral threads broke or ran out.

For instance rather than waiting until the end of a production line to inspect a finished

product, autonomation may be employed at early steps in the process to reduce the

amount of work that is added to a defective product. A worker who is self-inspecting

their own work, or source-inspecting the work produced immediately before their

work station is encouraged to stop the line when a defect is found. This detection is

the first step in Jidoka. A machine performing the same defect detection process is

engaged in autonomation.

Once the line is stopped a supervisor or person designated to help correct problems

gives immediate attention to the problem the worker or machine has discovered. To

complete Jidoka, not only is the defect corrected in the product where discovered, but

the process is evaluated and changed to remove the possibility of making the same

mistake again. This "mistake-proofing" of the production line is called Poka-Yoke.

7.3 The Role of Autonomation


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Autonomation is an important component of Lean Manufacturing Strategy forhigh-

production, low- variety operations, particularly where product life cycles are

measured in years or decades.

In high-variety, low-volume situations, the time and effort required is prohibitive.

This is another example of how lean principles must be tailored to each

situation.

8. AGILE MANUFACTURING

8.1 What is Agile Manufacturing?

Agile manufacturing is an enterprise level manufacturing strategy of

introducing new products into rapidly changing markets and an organizational ability

to thrive in a competitive environment characterized by continuous and sometimes

unforeseen change. In 21st Century Manufacturing Enterprise Study, agile

manufacturing used to describe a new manufacturing paradigm that was recognized as

emerging to replace mass production .Agility is a strategy for profiting from rapidly

changing and continually fragmenting global markets for customized products and

services.

There are consist of four principles of agility, that include organize to master

change, leverage the impact of people and information, cooperate to enhance

competitiveness, and enrich the customer. In organize to master change, it allows


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thrive on change and uncertainty. The human and physical resources also can rapidly

reconfigure to adapt to changing environment and market opportunity. For leverage

the impact of people and information, knowledge is valued, innovation is rewarded,

and authority is distributed to the appropriate level of the organization. Management

provides resources that personnel need and organization is entrepreneurial in spirit.

There is a climate of mutual responsibility for joint success. In addition, cooperate to

enhance competitiveness is cooperation internally and with other companies to form

virtual enterprises to bring products to market rapidly. Besides that, in enrich the

customer, pricing of product based on value of solution to customers problem rather

than manufacturing cost. Agility also has four underlying components that are

delivering value to the customer, being ready for change, valuing human knowledge

and skills, and forming virtual partnerships.

8.2 Market Forces

The market forces can be divided into five to evaluate the agile manufacturing.

Firstly, intensifying competition that include global competition, decreasing cost of

information, growth in communication technologies, pressure to reduce time-to-

market, shorter product lives, and increasing pressures on costs and profits. Secondly,

fragmentation of mass markets that include emergence of niche markets, high rate of

model changes, declining barriers to market entry from global competition, and

shrinking windows of market opportunity. Thirdly, cooperative business relationships

that include increasing inter-enterprise cooperation, increased outsourcing, global


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souring, improved labor management relationships, and the formation of virtual

enterprises among companies. Fourth is changing customer expectations because

customers become more sophisticated and individualistic in purchases including rapid

delivery, high quality, product life and increased information content of product. Fifth

is increasing societal pressures that include workforce training and education, legal

pressures, environment impact issues, gender issues, and civil rights issues.

In brief, companies must have organization management include inter-

organization cooperative extent, speed of the team building, network connection

extensiveness. Besides that, product design include design period, proportion of

design period in product periods. Then, processing manufacture includes time and

space organizational form of production process, and supplement tool displacement.

Next, partnership formation capability includes the form of institutional framework,

the degree of cooperating with other enterprises and the institutional framework

agility. Furthermore, integration of information system includes perfect degree of

information system, customer demand information agile to get.

8.3 Reorganizing the Production System for Agility

To reorganize production system for agility, it consist of three basic areas

include product design, marketing, and production operations .In product design, the

products should have the characteristic of customizable for individual niche markets

or individual customers, upgradeable, reconfigurable with unique features from

previous model without drastic and time-consuming redesign effort, design


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modularity where other modules redesigned will remain same, frequent model

changes within stable market families that is introduce new versions of product to

remain competition, and platforms for information and services depend on type of

product offering .The development of new products must rapid, cost-effective and

have a life cycle design philosophy from initial concept through production,

distribution, purchase, disposal and recovery.

Besides that, in marketing areas, company should has an aggressive and

proactive product marketing that change sales and marketing functions, cannibalize

successful products to replace obsolete products, frequent new product introductions

to maintain high rate of new product introductions, life cycle product support, pricing

by customer value, and effective niche market competitor that used same basic

product platform for different markets.

In addition, the objectives of production operations including be a cost-

effective, low volume producer use flexible production system and low setup times,

be able to produce to customer order to reduce inventory of unsold finished goods,

master mass customization that capable of economically producing unique product for

individual customer, use reconfigurable and reusable processes, tooling and resources,

bring customers closer to the production process by design their own, integrate

business procures with production, and treat production as a system that extends from

suppliers through to customers.

8.4 Managing Relationship for Agility

To manage relationships for agility, organization should have management


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philosophy that promotes motivation and support among employees, trust-based

relationships, empowered workforce, shared responsibility for success or failure, and

pervasive entrepreneurial spirit.

There are consists of two types of relationships, that are internal and external.

Internal relationships exist within firm, between coworkers and between supervisors

and subordinates to make work organization adaptive, provide cross-functional

training, encourage rapid partnership formation and provide effective electronic

communications capability. On the other hand, external relationships exist between

company and external suppliers, customers and partners to establish interactive,

proactive relationships with customers, to provide rapid identification and

certification of suppliers, install effective electronic communications and commerce

capability, and to encourage rapid partnership formation for mutual commercial

advantage.

Virtual Enterprise (Virtual Organization or Virtual Corporation) is a temporary

partnership of independent resources intended to exploit a temporary market

opportunity. Besides that, it may provide access to resources and technology not

available in-house or to new markets and distribution channels, reduce product

development time and accelerates technology transfer.

Valuing knowledge important to open communication and information access,

openness to learning is pervasive in organization, learning and knowledge are basic

attributes of an organizations ability to adapt to change, organization provides and

encourages continuous education and training for all employees, and effective


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management of competency on skills and knowledge of its employees.

8.5 Agility versus Mass Production

In mass production, companies produce large quantity of standardized products

with huge volumes of identical products. Besides that, mass production is a long

market life expected, produce to forecast, low information content, single time sales

and pricing by production cost.

On the other hand, in agile manufacturing, the term mass customization is

used which means produce large quantity of products with unique individual features.

Mass customization is a short market life expected, produce to order, high information

content, continuing relationship and pricing by customer value.

Refer to PQ model of production which means that P is product variety

(number of models) and Q is production quantity (units of each model per year). P is

very small but Q is very large in mass production whereas P is very large but Q is

very small (in the extreme Q=1) in mass customization.

There are many reasons to cause the manufacturing paradigm is changing

from mass production to agile manufacturing (mass customization). This including

global competition is intensifying, mass markets are fragmenting into niche markets,

cooperation among companies is becoming necessary, customers expect low volume,

high quality, custom products, very short product life-cycles, development time, and

production lead times are required, customers want to be treated as individuals. In

mass production, it does not apply to produce small quantities of highly custom,


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design-to-order products, and where additional services and value-added benefits like

product upgrades and future reconfigurations.

8.6 Issues and Problems of Agile Manufacturing

The big issue in agile manufacturing is what extent our existing beliefs, goals,

objectives and methods will continue to be shaped by the old manufacturing

paradigms. There is a danger that agile manufacturing interpreted technological

concept and lead to the generation of more technology, but not to the development of

the capability to deploy the technologies. Overcoming the legacy of the Taylor Model

is a major barrier to progress.

The development of agile manufacturing requires an integrated approach which

replaces piecemeal and fragmented research. For integrated approach, the key words

being empowerment, simultaneous activities, coordination, cooperation, sharing and

team work. The research issues should interdisciplinary and not monodisciplinary. As

a result, the barriers that exist between monoprofessionals need to be broken down

and eliminated.

Education and training are crucial to the success of agile manufacturing. This

is because agile manufacturing is not just a question of addressing issues such as

organizational aspects and psychological topics in isolation but have an impact on

technology development which should be now be addressed in an interdisciplinary

way. Besides that, the success of agile manufacturing depends to a large extent on the

availability of well educated and trained, highly skilled people throughout the


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enterprise. As a result, new knowledge and new methods of working are needed.

Management competence also needs to improve because we need multi-skilled,

computer competent people.

In strategies issues, strategies tend to shift in the area of decision support

technologies towards the development of skill and knowledge enhancing

technologies. Besides that, it needs to develop a broader approach to technology

development and deployment.

In specific research issues, the consideration includes the concept of agile

manufacturing enterprise design so we need to develop tools to support a spiral

approach. Besides that, research into manufacturing needs to focus on manufacturing

as a whole not individual part. Furthermore, we need to develop and deploy

technologies to support development of linkages within agile manufacturing and to

support experimentation and learning.

Besides that, issues and problems for agile manufacturing include identifying

the agile dimension of different industries, and suitable strategies, methods and

technologies with the objective developing a framework for agility. Study the role of

top management knowledge would help set budget priorities and strategic alliances.

Since the requirement of the type of agile technologies depends upon the

business process structure, there is a need to study the alignment between business

process and agile technologies so that effective enterprise integration can be achieved

for improved organizational competitiveness. The impact of organizational

infrastructure, systems and technologies on the partnership selection and supplier


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development should be studied.

8.7 Future Development of Agile Manufacturing

Other than constitute skill and knowledge enhancing technologies, artificial

intelligence (AI) technologies and in the area of cooperative working also important

in further development.

AI is a rather unfortunate term for it conjures up emotive issues of intelligent

machine taking over intelligent work that has hitherto been immune from automation.

It also generates philosophical discussions which center around the possibility of

developing computers that think, which leads to endless speculations largely based on

opinions.

We adopt AI based on the concept of programming paradigms to support people.

Logic-based paradigm involves dealing with logical predicates and assertions. Besides

that, frame-based paradigm use structured knowledge for capturing regularly

occurring circumstances. Each frame includes a number of slots with inheritance,

predicate attachments and active values. In addition, rule based paradigm involves

representing knowledge by the means of if-then rules with logical premises and

conclusions.

In computer supported cooperative work (CSCW), concurrent engineering

support dialogue and cooperation between designers and those involved at the sharp

end of manufacturing on the shop floor. We should tap into every ounce of

intelligence available and use it to bridge the gaps between thinking and doing, and


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designing and making. Besides that, CSCW support cooperation between offices

based programmers and skilled machinists working on the shop floor.

Future generations of computer based technologies will process task oriented

with additional technologies to support experimentation and learning activities and

support the linkages within the human networking organization. In experimentation

and learning technologies, it concerned with support the process of continuing

improvement, help users to extend understanding of problems, provide advice in

adjacent areas of expertise, support experimentation and learning activities, inform

users about consequences of proposals and decisions, and help to identify potential

problems and failures.

In the linkage technologies, it concerned with support the identification and

formation of critical linkages, help empowered people to contribute to team activities,

support inter-group and intra-group activities, identify core competencies, and support

inter-enterprise and intra-enterprise innovation networks.

8.8 Conclusion

Agile manufacturing consist of four principles of agility, that include organize

to master change, leverage the impact of people and information, cooperate to

enhance competitiveness, and enrich the customer. To evaluate agile manufacturing, a

number of market forces are identified. Besides that, company must reorganizing the

production system and managing relationship for agility. We also make the

comparison between agility and mass production. In addition, we discuss the issues


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and problems, and the future development for agile manufacturing.

Reference

Book

1 Nigel Slack, Stuart Chambers, Robert Johnston, Operation Management, Fourth

Edition, 2004, from page 517 to page 550

2 Agile Manufacturing, Forging New Frontiers, Paul T. Kidd, Addison-Wesley

Publishing Company Inc, 1994, from page 353 to page 367.

3 Groover, M.P., Automation, Production Systems and Computer-Integrated

Manufacturing, 2nd Edition, Prentice Hall International Edition, 2001, from page

835 to page 843.

4

Internet

1. http://books.google.com.my/books?

hl=en&id=TxJNaPkuc4oC&dq=just+in+time&printsec=frontcover&source=web

&ots=BlxuPNF6fJ&sig=pws6PM3PgAYwKAu35cdKEDbcXsY&sa=X&oi=book

_result&resnum=10&ct=result#PPP1,M1

5 http://books.google.com.my/books?

hl=en&id=zM_qqlrHKJ8C&dq=lean+manufacturing&printsec=frontcover&sour

ce=web&ots=zgEAKpfDqh&sig=Iaa0KNn5MkGAqiiphKRzWCcfQKo&sa=X&

oi=book_result&resnum=5&ct=result

6 http://kernow.curtin.edu.au/www/jit/jit.htm
http://books.google.com.my/books?hl=en&id=TxJNaPkuc4oC&dq=just+in+time&printsec=frontcover&source=web&ots=BlxuPNF6fJ&sig=pws6PM3PgAYwKAu35cdKEDbcXsY&sa=X&oi=book_result&resnum=10&ct=result#PPP1,M1http://books.google.com.my/books?hl=en&id=TxJNaPkuc4oC&dq=just+in+time&printsec=frontcover&source=web&ots=BlxuPNF6fJ&sig=pws6PM3PgAYwKAu35cdKEDbcXsY&sa=X&oi=book_result&resnum=10&ct=result#PPP1,M1http://books.google.com.my/books?hl=en&id=TxJNaPkuc4oC&dq=just+in+time&printsec=frontcover&source=web&ots=BlxuPNF6fJ&sig=pws6PM3PgAYwKAu35cdKEDbcXsY&sa=X&oi=book_result&resnum=10&ct=result#PPP1,M1http://books.google.com.my/books?hl=en&id=TxJNaPkuc4oC&dq=just+in+time&printsec=frontcover&source=web&ots=BlxuPNF6fJ&sig=pws6PM3PgAYwKAu35cdKEDbcXsY&sa=X&oi=book_result&resnum=10&ct=result#PPP1,M1http://books.google.com.my/books?hl=en&id=zM_qqlrHKJ8C&dq=lean+manufacturing&printsec=frontcover&source=web&ots=zgEAKpfDqh&sig=Iaa0KNn5MkGAqiiphKRzWCcfQKo&sa=X&oi=book_result&resnum=5&ct=resulthttp://books.google.com.my/books?hl=en&id=zM_qqlrHKJ8C&dq=lean+manufacturing&printsec=frontcover&source=web&ots=zgEAKpfDqh&sig=Iaa0KNn5MkGAqiiphKRzWCcfQKo&sa=X&oi=book_result&resnum=5&ct=resulthttp://books.google.com.my/books?hl=en&id=zM_qqlrHKJ8C&dq=lean+manufacturing&printsec=frontcover&source=web&ots=zgEAKpfDqh&sig=Iaa0KNn5MkGAqiiphKRzWCcfQKo&sa=X&oi=book_result&resnum=5&ct=resulthttp://books.google.com.my/books?hl=en&id=zM_qqlrHKJ8C&dq=lean+manufacturing&printsec=frontcover&source=web&ots=zgEAKpfDqh&sig=Iaa0KNn5MkGAqiiphKRzWCcfQKo&sa=X&oi=book_result&resnum=5&ct=resulthttp://books.google.com.my/books?hl=en&id=TxJNaPkuc4oC&dq=just+in+time&printsec=frontcover&source=web&ots=BlxuPNF6fJ&sig=pws6PM3PgAYwKAu35cdKEDbcXsY&sa=X&oi=book_result&resnum=10&ct=result#PPP1,M1http://books.google.com.my/books?hl=en&id=TxJNaPkuc4oC&dq=just+in+time&printsec=frontcover&source=web&ots=BlxuPNF6fJ&sig=pws6PM3PgAYwKAu35cdKEDbcXsY&sa=X&oi=book_result&resnum=10&ct=result#PPP1,M1http://books.google.com.my/books?hl=en&id=TxJNaPkuc4oC&dq=just+in+time&printsec=frontcover&source=web&ots=BlxuPNF6fJ&sig=pws6PM3PgAYwKAu35cdKEDbcXsY&sa=X&oi=book_result&resnum=10&ct=result#PPP1,M1http://books.google.com.my/books?hl=en&id=zM_qqlrHKJ8C&dq=lean+manufacturing&printsec=frontcover&source=web&ots=zgEAKpfDqh&sig=Iaa0KNn5MkGAqiiphKRzWCcfQKo&sa=X&oi=book_result&resnum=5&ct=resulthttp://books.google.com.my/books?hl=en&id=zM_qqlrHKJ8C&dq=lean+manufacturing&printsec=frontcover&source=web&ots=zgEAKpfDqh&sig=Iaa0KNn5MkGAqiiphKRzWCcfQKo&sa=X&oi=book_result&resnum=5&ct=resulthttp://books.google.com.my/books?hl=en&id=zM_qqlrHKJ8C&dq=lean+manufacturing&printsec=frontcover&source=web&ots=zgEAKpfDqh&sig=Iaa0KNn5MkGAqiiphKRzWCcfQKo&sa=X&oi=book_result&resnum=5&ct=result


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7 http://www.strategosinc.com/kanban_2.htm

8 http://www.ifm.eng.cam.ac.uk/dstools/process/kanban.html

9 http://www.msc-inc.net/Documents/Kanban_Integrated_JIT_System.htm

10 http://www.umassd.edu/charlton/birc/am_taxonomy.pdf

11 http://www.umassd.edu/charlton/birc/am_1998.pdf

12 http://www.technet.pnl.gov/dme/agile/index.stm

13 http://en.wikipedia.org/wiki/Autonomation

14 http://www.engr.psu.edu/cim/ie450/ie450ho1.pdf

15 http://www.ddiworld.com/pdf/ddi_leanmanufacturingtechniques_wp.pdf

16 http://wcm.nu/lean.html

Key Words and definitions

1 Autonomation - in Toyota parlance, automation with a human touch.

Autonomation normally referes to semi-automatic processes where a machine

and human work as a well planned system. Literally, the English translation of

jidoka.

2Cycle time - the normal time to complete an operation on a product. This in NOT

the same as takt time, which is the allowable time to produce one product at the

rate customers are demanding it.

3 Lean manufacturing or lean production - the philosophy of continually

reducing waste in all areas and in all forms; an English phrase coined to

summarize Japanese manufacturing techniques (specifically, the Toyota
http://www.strategosinc.com/kanban_2.htmhttp://www.ifm.eng.cam.ac.uk/dstools/process/kanban.htmlhttp://www.msc-inc.net/Documents/Kanban_Integrated_JIT_System.htmhttp://www.strategosinc.com/kanban_2.htmhttp://www.ifm.eng.cam.ac.uk/dstools/process/kanban.htmlhttp://www.msc-inc.net/Documents/Kanban_Integrated_JIT_System.htm


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Production System).

4 mixed-model production - capability to produce a variety of models, that in fact

differ in labor and material content, on the same production line; allows for

efficient utilization of resources while providing rapid response to marketplace

demands.

5 muda (waste) - activities and results to be eliminated; within manufacturing,

categories of waste, according to Shigeo Shingo, include: .

5.1 Excess production and early production 2.Delays

5.2 Movement and transport

5.3 Poor process design

5.4 Inventory

5.5 Inefficient performance of a process

5.6 Making defective items

6 mura - inconsistency

7 muri - unreasonableness

8 jidoka - a Japanese word which translates as autonomation; a form of automation

in which machinery automatically inspects each item after producing it, ceasi