Lean Manufacturing & JIT

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    Lean Manufacturing &JIT Production

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    Just-in-time- A philosophy for optimizing performance of amanufacturing system.

    - Originated from work of Taiichi Ohno at Toyota.

    - After WWII, U.S needed large mass production tosatisfy demand for products.

    - Japanese market was much smaller, so moreflexible systems were needed to produce smaller quantities of different items in the same equipment.

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    Just-in-time After many years, Toyota established the followingstrategy:

    1. Kanban based pull production.

    2. Waste elimination is guide philosophy.3. Faith in importance and value of quality.4. Kaizen or continuous improvement as a daily

    strategy.

    5. Emphasis on setup reduction on all machines.6. Integrate suppliers and material acquisition intothe planning process.

    7. Cellular layouts with balanced flow.

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    Comments about Kanban - JIT

    Note that Kanban systems are not the same as JIT.

    The pull approach is only one aspect of the JITphilosophy.

    The combination of the above factors transforms theshop into a lean facility.

    They factors depend on one another.

    A Kanban system without high quality or low setups

    will not achieve expected benefits.

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    B asic Tenets of Lean, JIT Production

    CategoriesImp roving Production Environ ment

    Quality Engineering

    Imp roving Material Flow

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    I. Improving Production Environment

    1. Eliminate Waste

    2. Employee Cross-Training and Job Rotation

    3. Employee Empowerment and Involvement

    4. JIT Purchasing

    5. Reduction of Variability

    6. Mistake-Proof Processes

    7. Reduce Setup Times

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    Some Terminology

    Muda: Japanese term for any human activity which

    abosrbs resources but creates no real value.

    K aizen: process of continuous incremental improvementthrough the identification /elimination of m uda.

    K aizen blitz: an event where a team of managers,

    engineers and line workers coordinated by a facilitator

    come together for three days to focus on improvements

    on an area of a plant.

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    Some Terminology

    Typical strategy in Kaizen Event is asking why five

    times until the root cause or motivation for an action is

    discovered.

    Golden Rule: Use everyones knowledge to identify and

    implement improvements quickly and cost effectively.

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    1. Eliminate Waste

    Original scientific approach was to dissect a large system

    into small pieces and make each piece optimal.

    Japanese approach: develop a system that connects the

    pieces.

    Ex. Instead of tracking production statistics and

    inspecting out defective products, eliminate any

    production of defective items.

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    Seven Types of Wastecommonly found in industry.

    A . Waste fro m Overproduction

    Why make products that wont be sold?

    Before, supervisors were evaluated through quotas.

    Machine utilization needed to be maximized.

    New idea: machines and humans should only be busy

    when they have useful tasks to accomplish.

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    Seven Types of Wastecommonly found in industry.

    B. Waste of Motion

    Eliminate motions that do not add value.

    Look at workplace design, process planning,

    detailed job procedures, material handling.

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    Seven Types of Wastecommonly found in industry.

    C . Transportation Waste

    Position work and storage areas such that

    material moves are short.

    Keep tooling near its point-of use.

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    Seven Types of Wastecommonly found in industry.

    D . Processing Waste

    Eliminate non-value added operations.

    May need to go back to product design and

    revise features and tolerances.

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    Seven Types of Wastecommonly found in industry.

    E . Wasted Ti m e (queuing)

    Plan for:

    Small lot sizes

    Ordered production and release of dependent Items

    Good coordination will achieve small WIP and

    throughput time.

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    Seven Types of Wastecommonly found in industry.

    G . Ex cess Inventory yields added costs due to

    Space, obsolescence, opportunity costs, handling, among

    others.

    Avoid excess inventory.

    Can achieve via modular components.

    Negotiate long term contracts with suppliers to ensure a

    steady stream of high-quality parts.

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    2. Employee Cross-Training and Job Rotation

    Can train over time to do variety of tasks in their work

    area.

    Can then rotate through different positions.B enefits:

    Enhances worker flexibility and enthusiasm.

    Prevents boredom, fresh perspectives and ideas for improvements.

    Gives context of communication between workers on

    same team.

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    2. Employee Cross-Training and Job Rotation

    B enefits (continued):

    Minimizes fatigue and repetitive stress injuries.

    Can move workers around to eliminate temporary

    bottlenecks.

    In U-shaped cells, workers can operate more than onemachine at a time.

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    3. Employee Empowerment andInvolvement

    Why hire a body when it comes with a brain?

    Employees are a great source of ideas for

    improvement.

    Employees must be allowed and encouraged to

    do so.

    This includes authority to stop production andcorrect a problem in production.

    The goal is to identify problems early.

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    3. Employee Empowerment andInvolvement

    A usual approach to empower is via a switch to stop

    production.

    This warning system is called J ikoda .

    The warning light system is called andon .

    Usually a bank of three lights is used: green , yellow and

    red .

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    3. Employee Empowerment andInvolvement

    One light is always on, indicating station status.

    Red light signals a line stoppage and location of

    problem to other workers. Nearby workers assist with the problem, get

    additional help if necessary.

    Identifier and solver of problemare rewarded.

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    3. Employee Empowerment andInvolvement

    Employees should be involved in developing

    procedures.

    Workers take pride in job if they know they arehelping meet customer expectations.

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    3. Employee Empowerment andInvolvement

    Worker area should also be kept clean and organized.

    This helps in pride and dedication.

    5Ss:

    Sort, Straighten, Sanitize, Sweep and Sustain.

    Organized workplace reduces:

    Misplacing

    Contamination

    Brightens up atmosphere

    Gives feeling system is under control.

    Conveys that sloppiness is not tolerated.

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    4. JIT Purchasing

    Changes that can be implemented

    1. Sole source vs. multiple supply sources.

    - Idea: better negotiate long-term contracts with single

    supplier.

    - This encourages cooperation instead of competing over

    terms.

    - Suppliers long term interest is now to provide high

    quality on time at a fair price to ensure customers

    success.

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    4. JIT Purchasing

    Changes that can be implemented

    2. Frequent delivery of small lots vs quantity discounts.

    - Traditional approach: occasional deliveries of large

    quantities of parts.

    - Parts were inspected via sampling.

    -Now, no inspection is needed since vendor product

    quality has been certified and meets requirements. (If

    not, get a new supplier).

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    4. JIT Purchasing

    Changes that can be implemented

    3. Flexible ordering vs. paperwork.

    - Contracts usually call for steady flow of product +/-

    10%

    - Customer can change order quantity on short notice

    with little hassle.

    - Requires some reserve capacity by vendor.

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    4. JIT Purchasing

    Changes that can be implemented

    4. Vendor owns and manages inventories.

    -Vendor can hold inventory on customers site.

    - Customer gets billed only when extracting parts.

    - Supplier has responsibility to keep enough inventory

    level.

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    5. Reduction of Variability

    Variability reduces efficiency.

    If supplies, yields or machine availability are

    unpredictable, the tendency is to have large safety stocks

    of inventory.

    Idea:

    Eliminate variability from production processes.

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    6. Mistake-Proof Processes

    This involves eliminating opportunities for errors.

    Idea:

    Design processes to avoid producing defective items.

    Be able to detect defects before more production steps

    are done.

    Poka-Yoke: mistake proofing a process.

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    6. Mistake-Proof Processes

    Basic ideas:

    100% of units should be inspected.

    Identify defects as close to the source as possible.

    Stop production immediately and take corrective action

    right after a defect is detected.

    Design processes to avoid producing defects.

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    6. Mistake-Proof Processes

    Some Poka-Yoke Techniques

    Checklists and worker source inspection.

    Worker checks his own work.

    Problem: humans tend to approve their own work.

    Checklists help ensure all steps have been completed

    in station.

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    6. Mistake-Proof Processes

    Some Poka-Yoke Techniques

    Successive check systems

    Worker checks incoming parts from previous station

    before starting his own operation.

    Worker must approve work by previous worker or

    defects must be communicated to previous worker

    right away.

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    6. Mistake-Proof Processes

    Some Poka-Yoke Techniques

    Mistake-proof part and fixture design.

    Design parts so that they can only fit in a tooling

    fixture in proper orientation.

    Reshape symmetrical parts to exaggerate

    asymmetries easier to detect misalignments.

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    7. Reduce Setup Times

    Usually the MOST productive investment that can be made toimprove production system performance.

    Techniques (*):

    - Design parts for manufacturability

    - Design parts for standard tools.

    - Develop standard methods for setups.

    - Divide setup activities into external/internal tasks.

    - Design procedures to perform setup tasks in parallel.

    - Modular fixturing

    - Eliminate adjustments.

    - Use power clamps.

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    Transitioning from Traditional to Lean

    1900s Philosophy

    Worker was immigrant, uneducated, spoke little English.

    Worker is like a machine designed to perform a limited set of

    tasks well.

    Product customization was not an issue for customers (all model

    Ts were the same).

    2000 Lean Philosophy

    Worker: most flexible machine.

    If properly educated, worker can solve problems and adapt to

    new situation.

    The customer expects customization.

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    Transitioning from Traditional to Lean

    Old Production Mentality:

    Process-Based Organization

    Economic Order Quantities

    Large Unit Handling Loads

    Receiving Inspection

    Maximize Equipment Use

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    Transitioning from Traditional to Lean

    New Lean Thinking

    Product Cell Layouts

    Single-Unit mixed model production

    Continuous material flow

    Mistake proofing

    Balanced production line

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    Problems in Implementing Lean

    Cannot make it happen without the support of floor operators.

    Culture change needs to happen.

    Old philosophy: run large batches to amortize setup costs of the

    largest number of parts and products.

    New philosophy: demand based production.

    Management not fully involved.

    Loss of interest by top management and workers.

    After initial implementation, no hard benefits seen in bottom

    line.

    Might have implemented Lean in wrong areas.

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    Pros & Cons of Cell Manufacturing

    ProsShorter Lead times

    Reduced WIP

    Space Savings

    Higher Quality End Product

    B etter team

    communications

    Employee ownership and

    can do attitude

    Supports pull operation

    ConsLower equipment utilization of non-bottleneck cells.One piece of the cell breaksdown, the whole cell is out (noredundancy of equipmentwithin a cell)Loss of employee dedicatedexpertiseIf demand falls and cell outputis below cell capacity, per unitcosts are higher.Multi-product cells may not besuitable for higher volumeorders, becoming thebottleneck.

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    Transition Stages in Lean Thinking(Ford Motor Company)

    Phase 1: Process Stabilization

    Improve production environment; predictable/reliable processes; total

    productive maintenance, total quality, poka-yoke, setup time reduction,

    standard procedures, clean & organize the workplace. Train employees

    in lean thinking.

    Phase 2: Continuous FlowReduce WIP and batch sizes. No need to run machines at full capacity.

    Unit parts can plow in small or single quantities between workstations.

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    Transition Stages in Lean Thinking(Ford Motor Company)

    Phase 3: Synchronous production.Follow weekly production schedules.

    Phase 4: Pull authorizationTo authorize production, parts must be pulled by successive

    workstations. Kanbans dictate production.

    Phase 5: Balanced productionAll process produce at a constant level and continuous rate.

    Every part type is made daily; parts flow continuously.

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    Short Articles on Lean Implementations

    www.sme.org

    Manufacturing Engineering Magazine

    September 2003 Issue

    Lean by Design and by Necessity

    http://www.sme.org/cgi-bin/get-

    mag.pl?&&03sem002&000007&2003/03sem002&ARTME&SME&

    Lean pays Off at Ariens

    http://www.sme.org/cgi-bin/get-

    mag.pl?&&03sem005&000007&2003/03sem005&ARTME&SME&