Upload
dick
View
126
Download
1
Tags:
Embed Size (px)
DESCRIPTION
Lean Operations Module. House Building Game The transition to Lean Ops The Paradigm of Lean Operations: The ideal Basic philosophy of Lean Ops Methods for synchronization & waste reduction Managing variety & flexibiltiy Approaching the ideal : TPS Continuous improvement - PowerPoint PPT Presentation
Citation preview
Lin/Operations/Lean Ops 1
Lean Operations Module House Building Game
» The transition to Lean Ops
The Paradigm of Lean Operations: The ideal» Basic philosophy of Lean Ops
» Methods for synchronization & waste reduction
» Managing variety & flexibiltiy
Approaching the ideal : TPS» Continuous improvement
» Toyota Production System (TPS)
Lin/Operations/Lean Ops 2
Paradigm of Lean Operations:In Search for the Holy Grail
= The ideal Process Synchronization of all flows
» 1 x 1
» production on demand
» defect free
At lowest possible cost Waste = Gap between ideal and actual How do we set up a system to continually reduce
waste ?1. Improving synchronization
2. Visibility for continuous improvement
Lin/Operations/Lean Ops 3
Toyota’s waste elimination in Operations
1. Overproduction
2. Waiting
3. Inessential handling
4. Non-value adding processing
5. Inventory in excess of immediate needs
6. Inessential motion
7. Correction necessitated by defects
Lin/Operations/Lean Ops 4
House Game Improvements:What did your team do?
Lin/Operations/Lean Ops 5
Lean Tool #1: Cut Batch SizesA Simple Example
What is the theoretical flow time of the process? What is the capacity of the process? What does that imply for the amount of inventory
needed in the process?
1 min/job
A B C D
1 min/job 1 min/job 1 min/job
Lin/Operations/Lean Ops 6
Synchronize: Cut Batch Sizes
Batch Mfg (Batch size = 4)Flow Mfg (Batch size = 1)
Example: A
1 min/job
B
1 min/job
C
1 min/job
D
1 min/job
Ela
psed
Tim
e
11
1
1
1
0
4
Ela
psed
Tim
e
8
22
22
2
33
3
3
12
44
4
B C DA1-4
0
4
8
5-8
9-12
12
13-16
16
20
A B C D
556
17-20
5-8
5-8
5-8
1-4
1-4
1-49-12
9-12 1-413-16
Lin/Operations/Lean Ops 7
Lean Tool #2: customer demand pulls product -- Synchronization with demand
Supplierinputs outputs
Process Customer
PUSH: Inputs availability triggers execution
Supplierinputs outputs
Process Customer
PULL: Outputs need triggers execution
Lin/Operations/Lean Ops 8
Implementation: Kanban Production Control Systems
Kanban
Processing center i
Processing center i + 1
WIP
Job
Lin/Operations/Lean Ops 9
Synchronize: Just-In-Time operations
JIT = have exactly what is needed, in the quantity it is needed, when it is needed, where it is needed.
Reduce transfer batches Pull rather than push work Set up cells
Lin/Operations/Lean Ops 10
Lean Tool #3: From Functional Layout to Cells
ProductionControl
ProductionControl
ProductionControl
RoofCut
RoofCut
RoofCut
BaseCut
BaseCut
BaseCut
FA BaseAssyFA FA Base
AssyBaseAssy
QC QC QC
ProductionControl
FA
BaseCut
RoofCut
BaseAssy
ProductionControl
FA
BaseCut
RoofCut
BaseAssy
ProductionControl
FA
BaseCut
RoofCut
BaseAssy
Lin/Operations/Lean Ops 11
Managing Flows: the Process View & product cells
Recall: “By rethinking the IBM Austin assembly plant and introducing cells, distance traveled by a card was cut from 1.5 miles to 200 yards. Floor space was reduced to half and production tripled with about the same number of workers.”
Pro’s of cells:
Con’s of cells:
Lin/Operations/Lean Ops 12
Teams in Cells and Lean Ops: Human Resources issues
Advantages– Consistent with the moral ideal of “autonomy.”– Empowers the workforce through participation and autonomy in managing
daily activities– Gives unprecedented responsibility to workers:
» Immediate and impartial feedback of problems» Investigation of process improvements» Monitoring quality» They also gain better understanding of the process
Challenges:– Less WIP means more tight coupling and less autonomy
» Rigid procedures and interdependence of cells– Team dynamics: incentives, team pressure, …– From monthly 30-day goals before to 3-minute goals now
» Does not leave much room for variability
Lin/Operations/Lean Ops 13
Lean Tool #4:Quality at the Source
Defects Found at:
Own Process Next Process End of Line Final Inspection
End User’s Hand
$ $ $ $ $
Impact to the Company
Very Minor
Minor Delay
Rework Resched.
of work
Significant Rework
Delay in Delivery
Additional Inspection
Warranty costs
Administrative costs
Reputation Loss of
Market Share
Lin/Operations/Lean Ops 14
Quality at the Source
Fool-proof/Fail-safe design (Poka-Yoke) Inspection
– Self
– Automated (Jidoka)
Line-stopping empowerment (Andon)
Human infrastructure
Lin/Operations/Lean Ops 15
How to run Lean Operations:Managing Variety
Monthly Production Requirement:
Model Sedan StationWagon
Quantity 10,000 10,000
How should production be scheduled for the month?
Lin/Operations/Lean Ops 16
Synchronize: Heijunka Mixed Level/Balanced Production
Batch Production Schedule Mixed Production Schedule
(AAAABBBB..) (ABAB...)
Product Apr/12.................15...........................30 Apr/12....................15.......................30
A
B
time
FGI
time
FGI
Lin/Operations/Lean Ops 17
Reducing Waste: Reduced Setup Times
What happens if we have long setup/changeover times?
How do synchronized production with variety (product mix)?
Lin/Operations/Lean Ops 18
Synchronize: HeijunkaUniform Plant Loading
This does not mean building a single product.
Rather: – maintain a stable mix of products,
– and firm frozen schedules based on actual orders
Benefits:
Costs: Must reduce scale economies
Lin/Operations/Lean Ops 19
Reducing Waste:Mixed-Load Pickup and Delivery
Part A Plant
Part B Plant
Part C Plant
AssemblyLine
Part A Plant
Part B Plant
Part C Plant
AssemblyLine
IndividualPickup
Mixed-LoadPickup
Lin/Operations/Lean Ops 20
THE DICE GAME
Average Capacity of Each Stage =
OUTPUTBuffer
INPUTBuffer
6 Face Fair Dice
Average Process Capacity =
Play The Game
Unfair Dice which rolls into either 3 or 4
Average Capacity of Each Step =
Average Capacity of The Process =
Lin/Operations/Lean Ops 21
The impact of inventory and variability:Output of Match Game
135
145
155
165
175
185
195
0 5 10 15 20 25
Starting Inventory in each Buffer
Ou
tpu
t af
ter
50 R
un
s
Series1
Series2
Series3
Series4
Series5
Average
6-face die (=1.9)
2-face die (=0.7)
Lin/Operations/Lean Ops 22
Reducing waste: Increase Problem VisibilityLower the Water to Expose the Rocks
Scrap &Rework
Missed Due DatesToo Much Space
Late Deliveries
Poor Quality
Machine Downtime
Engineering Change Orders
Long queues
Too much paperwork
100% inspection
Inve
ntor
y
Lin/Operations/Lean Ops 23
Time plays the role of Inventory in Lean Service Operations
TIME
Lin/Operations/Lean Ops 24
Toyota Motor Manufacturing, USA
Lin/Operations/Lean Ops 25
Toyota financial performance
Fig 1: The Economist, 2005. Fig 2: Barron’s 2004.
Lin/Operations/Lean Ops 26
Impact of Toyota Name on Resale Value
2002 ModelYear MSRP
2005 ResaleValue w/45K miles
Resale/MSRP
Corolla
CE $ 12,568 $ 10,050 80%
S $ 12,793 $ 10,800 84%
LE $ 13,383 $ 10,500 78%
Prizm
Base $ 14,330 $ 8,725 61%
Lsi $ 16,395 $ 9,580 58%
Resale values taken from Cars.com for average condition January, 2005.
Lin/Operations/Lean Ops 27
The Changing Cost of Warranty Management
Warranty Problems YR2001
100
110
120
130
140
150
160
170
Toyota Honda Nissan GM DC Ford
Prob
lem
s pe
r 10
0 V
ehic
les
Warranty Cost Comparison
0100200300
400500600700
Toyota GM FordW
arra
nty
Cos
t per
Veh
icle
Warranty Problems per Vehicle vs. Warranty Costs
(*) (**)
(*)JD Power 1QS, May 2001 (**) Business Week Article, June 25, 2001.
Lin/Operations/Lean Ops 28
Continuous Improvement: Kaizen
Increase visibility of waste Targeted improvements
– Active worker involvement
– Time for experimentation
– Supplier involvement
Exploratory stress
Human infrastructure
Lin/Operations/Lean Ops 29....
Lean Operations:Best Implementation is TPS
TPS is a production management system that aims for the “ideal” through continuous improvement
Includes, but goes way beyond JIT. Pillars:– Synchronization
– Quality at Source
– Continuous Improvement (Kaizen): through visibility & empowerment
Lin/Operations/Lean Ops 30
Learning ObjectivesLean Operations
Paradigm of Lean Operations: Strive for the ideal by eliminating waste
Flow Synchronization– Reduced batch sizes
» Level Mixed Production: Heijunka
– Pull production control systems (vs. push)» Implementation: Kanban
– Layout: Cellular operations– Quality at the source
Continuous Improvement– Increase problem visibility (river analogy)– Kaizen