90
1 Welcome to In-House training Programme on LEAN MANUFACTURING Brought to you by ALLIANCE INDIA www.allianceindia.co.in  Tel.: 022-28592800 Email:[email protected]

Presentation on TPS -JIT Kanban

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842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 193

1

Welcome to In-House training Programmeon

LEAN MANUFACTURING

Brought to you by

ALLIANCE INDIA

wwwallianceindiacoin Tel 022-28592800

Emailreachusallianceindiacoin

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 293

2

Welcome

to

Presentationon

KAIZEN

842019 Presentation on TPS -JIT Kanban

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3

bull Customer orientation

bull TQC (Total Quality

Control)

bull Robotics

bull QC Circles

bull Suggestion system

bull Automation

bull Discipline at work

bull TPM (Total Productive

Maintenance)

bullKANBAN (Card System)

bullQuality Improvement

bullJust - in -time

bullZero defect production

bullSmall group activities

bullCo-operative labour and

management relations

bullProductivity improvement

bullNew product development

KAIZEN UMBRELLA

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4

What is KAIZEN

The Japanese word ldquoKAIZENrdquo means Continuous Improvement

KAI - Change

- Number of

times

ZEN - Good or better

- Self Realisation

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Kaizen - OriginbullKaizen is Kanji word Kanji is Chinese language

bullKai - Change Zen -GoodKaizen = Change for better

( Taiichi Ohno amp Toyoda started in

Toyota - 1960 )

bullIt is proven philosophy used world over for organisationalgrowth and competitive environment ( ToyotaCannon Sony Hyundai Honda Tourism in Mauritius )

bullKaizen emphasises developing culture of continuosimprovement Human being at center

bullKaizen is beneficial in every walk of lifeTo improve is to change To be perfect is to

Change often

Cummins India Limited January 2002

KaizenKaizenA Journey of thousand leagues

Begins with a single step

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Its the constant and determinedeffort that breaks down all resistance

sweeps away all obstacles- Claude M Bristol

Dedicated Resources

+ Concentrated Efforts

= Success of any Activity - Steve Chapman

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Continuous Improvement is the need for survival

in Global competitive environment

- Safety

- Quality

- Productivity

Develop Culture - Everybody can participate in Improvement

activity

Cost Saving - Ultimate benefit to Customer ndash

8 reduction year from suppliers of Toyota

A Total Quality culture for survival ---

bdquoQuality‟ is state of mind

- Why Kaizen

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Waste Elimination is the FOCUS

Anything other than the minimum amount of equipmentmaterial parts and working time absolutely essential to

production

Wastes in a factory Losses in Equipment

1 Over production 1 Breakdown2 Inventory 2 Set up amp adjustment

3 Product defects 3 Reduced speed

4 Rework 4 Defects in process

5 Transportation 5 Tool change

6 Waiting time 6 Start up

7 Search time 7Minor Stoppages

8 Non value activities

- Why Kaizen

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- How to Practice

Kaizen starts from Top Management

bullUnderstand the ldquo Kaizenrdquo Concept

bull Involve everybody in implementation

bull Maintain the improvements

bull Support the ldquoTeamrdquo Concept for developing

the ldquoKaizen Culturerdquo

bull Recognize Appreciate ldquoothersrdquo also bull Be ldquoAdvocaterdquo for Kaizen

bull ldquoPracticerdquo and ldquoTeachrdquo - ie ldquoPreachrdquo Kaizen

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10

Ground RulesKaizen Believes in Team Work

bull Zero investment - Optimize current equipment and

resources Do not plan on spending big moneybull Discard conventional fixed ideas for production

bull Think of how to do it not why it cannot be done

bull Correct mistakes at once for Customer delights

bull Do not make excuses question current practicesbull Do not wait for perfection do it right away

bull Wisdom is brought about when faced with hardship

bull Eliminate or reduce when we can see and feel the bdquowaste‟

bull Ask bdquoWhyrdquo five times and seek root causes

bull Seek the wisdom of ten rather than the knowledge of one

bull Kaizen never stops

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11

KAIZEN

Continuous progress through People Involvement

KAI ndash Change ZEN ndash For Better

KAIZEN ndash Change For Better

ldquoContinual Improvementrdquo

UnsafeAction

Near Misses

Fatal

Accident1

30

300 Problem in bdquoseed‟

stage(Signals

ignored)

Problem in bdquosaplingrsquo stage

Problem in bdquotree‟ stage

(Disasters at workplace)

Problems at the WorkPlace

5 bdquoS‟ F d ti

842019 Presentation on TPS -JIT Kanban

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Kaizen Museum

1 Seiri - Sorting

2 Seiton - Systematic Arrangement

3 Seiso - Spic and Span TPM

(Cleaning with inspection)

4 Seiketsu- Standardized workplace5 Shitsuke- Self Discipline

- 5 bdquoS‟ as Foundation

842019 Presentation on TPS -JIT Kanban

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5 S linked with productivity

Step 1 Awareness revolution

( prerequisite for factory improvement )

Step 2 The 5 S‟s

( foundation for factory improvement )

Step 3 Flow manufacturing

Step 4 Leveling

Step 5 standard operations

Just - in - time

Multi

process

handling

Changeover

Human

automation

Kanban

Quality

assurance

Maintenance

amp Safety

M a n p o w e r o p t i m i z a t i o n V

i s u al M an

a g em en t

5 S - Objectives

G b K i 3 bdquoG‟ I t

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India Limited

Gemba - Work place

eg mc amp surroundings areatable amp surroundings

Assembly Station test cell etc

bull Gembutsu - Problem piece

eg All objectives related to improvement in Gemba

bull Genjitsu - Real time

eg Observe the things

while happening or at the earliest

after happening for getting the facts real information

ldquoGemba Kaizenrdquo means - Improvement at yourwork place Team is important in Gemba Kaizen Look at the work place to find out avenues

for bdquoKaizen‟ through 3 bdquoD‟ approach

- Gemba Kaizen -3 bdquoG‟s Importance

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India Limited

How to start - For initial work Use bdquo3D‟ approach

ndash Dirty - oil coolant air leakages

- chips and burr on floor- Accumulated dust etc

ndash Dangerous - Unsafe working conditions- Movements

ndash Difficult - Difficult to move- lift assembly

- not ergonomical situations

Results in employee satisfaction amp improved morale

Makes job easier simpler safer and faster

Increases efficiency Happier Customer

Overall improvement of organization

- To Start with

I i amp K i

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India Limited

Innovation amp Kaizen

1

30

300

Kaizen is a small improvement carried out by the person in his own workplace

with nil or negligible investment

Kaizen Tools

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Kaizen Tools

1bdquoO‟ ndash

Opportunity

Tag

-Small Improvement - keeping in mind 1-30-300 triangle Avoid major stoppage

by proactive methods

- Structured process for Involvement Registration and tracking of every small

improvement

2 Gemba Kaizen - Focused work station improvement for elimination of waste - Improvementsowned by associates

3 5 S Activities- Seiri Seiton Seiso Seiketsu Shitsuke Disciplined approach for lean

management - Foundation for JIT Develop culture of discipline

4 7 Step Project

-Quality improvement projects taken from PPM chart Customer complaint

-Team work for resolving through 7 step structured process ( 5W1H CEdac

chips 5 Why root cause )

5Kobetsu

Kaizen

-Focused improvement under taken for quality waste elimination ( Kit

improvement )

6Material Feed

System

- Inventory control through 5 S 2 Bin System Movement reduction Linkage

upto supplier order )

7Layout

Modification

-Global layout with assembly at centre amp local layout in form of feeding system

-U shape layouts for synchronization of flow and inventory control Improve

material handling

8 One Piece Flow- Step by step reduction in inventory with final aim of JIT ( Zero - Breakdown

Accident Defect)

9 Model Machine

-Activities include -1S 2S Transparency MISER to improve availability

-OEE improvement through EYE chart 3S 3M chart 5S Before and After

monitoring each week

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10 Eye Chart-7 Step problem Pokayoke etc are sourced from these OEE charts

-Common chart for all BUs to note down quality defect

11 SMED

-Reduction in set up time by study of set up change activities video film

-Separating internal and external activities Modifications in fixtures auto

clamping etc

12 MISER- M-minimize I- improvise S- simplify E- eliminate R- reduce --- Continuous

improvement

13 POKAYOKE

- Failsafing for operator‟s un-intentional mistake and total quality

improvement

- Cost reduction by attacking poor quality kit shortages handling

improvement

14IFC ( Initial

Flow Control)

- Making a list of improvements by reviewing quality problems and customer

complaint

- These points will be used for ordering new machines or making

improvements in new product

15 KANBAN- Consumption based material procurement system Ensures availability of

material with minimum inventory

16bdquoO‟ Tag

Campaign

- To increase awareness for Safety PokaYoke Dirty Difficult Danger and

Deterioration

17 Office Kaizen- Apply kaizen tools for increasing effectiveness and reduce delays ( quick

response )

18 Training-Training for acquiring new skills at Gemba Improves employees on

continuous basis

Th f f f h l f t t ib t d b

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19 PQCD MoP

- These are measures of performance for whole factory contributed by

individual business units

- Review and correction is needed every month in 5S Before After chart

20JOHARI

WINDOW

-This technique is used to identify root causes in human elements while

solving problems using accumulated knowledge skills developed in a

individual This technique is based on communication in two entities in open

environment amp positive attitude towards problem resolution

21

BMT (

Behavioral

Modulation

Technique)

To impart skills leading to increase of productivity of employees and

motivate them

22 Recognition

Recognition is most important for any human being In kaizen activities we

take care of appreciating every improvement either by individual or by team

The theme is ldquoMaking everybody a herordquo There are 44 ways of appreciatingemployees without actual monitory gains or amount

23 Turbo Kaizen

- Idea generation is done through Turbo Kaizen amp implemented using Kaizen

tools

-Kaizen activities help faster implementation of cost saving ideas

24 Ergonomics

Ergonomics was coined from the Greek words ergon (meaning work) and

nomos (meaning rules) ldquo Fit the task to the person not the person to the

taskldquo

A good way to understand what ergonomics means is to think about the term

user-friendly

25 Karakuri

Machine layout is modified in such a manner that flow of material from one

machine to other machine is maintained without energy consumption by

taking advantage gravity

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Welcome

to Presentation

onOFFICE KAIZEN

842019 Presentation on TPS -JIT Kanban

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- Why Office Kaizen What are its‟ benefits

bull To improve productivity efficiency in the administrative functions andidentify and eliminate losses This includes analyzing processes andprocedures towards increased office automation

Benefits

bull Involvement of all people in support functions for focusing on betterplant performance

bull Reduction in administrative costs - Reduced inventory carrying cost

bull Better utilized work area - Reduce repetitive work

bull Motivate people in support areas - Multiskilling in support areas

bull Some evident results are- Reduced inventory levels in all parts of the supply chain

- Reduction in number of files

- Reduction of overhead costs (to include cost of non-productionnoncapital equipment)

- Productivity of people in support functions

- Breakdown of office equipment - Reduced manpower- Customer complaints due to logistics

- Expenses due to emergency dispatchespurchases

- Clean and pleasant work environment

d fi i ffi i16

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- How to define P Q C D S M in Office Kaizen

bull Each company will have to define for themselves looking at all losses which affect plantperformance

These are some examples

bull P ndash Production output lost due to want of material

ndash Manpower productivity

ndash Production output lost due to want of tools

bull Q ndash Mistakes in preparation of cheques bills invoices payroll

ndash Customer returnswarranty attributable to BOPs

ndash Rejectionrework in BOP‟sjob work

ndash Office area rework

bull C ndash Buying costunit produced

ndash Cost of logistics ndash inboundoutbound

ndash Cost of carrying inventory ndash Cost of communication

ndash Demurrage costs

bull D ndash Logistics losses(Delay in loadingunloading)

ndash Delay in delivery due to any of the support functions

ndash Delay in payments to suppliers

ndash Delay in information

bull S ndash Safety in material handlingstoreslogistics

ndash Safety of soft and hard databull M ndash Number of kaizens in office areas

H t t t ffi K i 16

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- How to start office Kaizen

Steps followed are

- Providing awareness about office Kaizen to all support departments

- Helping them to identify P Q C D S M in each function in relation to plantperformance

- Identify the scope for improvement in each function- Collect relevant data

- Help them to solve problems in their Circles Teams

- Make up an activity board where progress is monitored on both sides ndash results andactions along with Kaizens

How to identify losses in office Kaizen

In each functional area identify the losses separately and add them up to build up amaster plan for Office Kaizen For example

- office equipment breakdown

- communication channel breakdown telephone and fax lines

- time spent on retrieval of information

- non availability of correct on line stock status

- customer complaints due to logistics

- expenses on emergency dispatchespurchases- cost reduction on non-productionnon capital items

H t l t K b t K i t i f Offi K i 16

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- How to select Kobetsu Kaizen topics from Office Kaizen

Kobetsu Kaizen topics are selected aiming at --

- Inventory reduction- Lead time reduction of critical processes

- Motion amp space losses

- retrieval time reduction

- reducing or eliminating office work flow stagnation

- equalizing the work load

- analyzing for bdquono material‟ areas and improving them

- Improving the office efficiency

ndash By eliminating the time loss on retrieval of information

ndash By achieving zero breakdown of office equipment like telephoneand fax Lines Xerox machine etc

PPM Ch t IN OFFICE16

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- PPM Chart IN OFFICENov Dec Jan Feb Mar

96667 136667 110000 93333 1366

56 46 153 46

April May June July Aug

58333

90

Defects

Defects Expressed in 5W 1H

Fassion1 2 3 4 5 OF

S U N D A Y

8 9 10 11 12 OF

S U N D A Y

15 16 17 18 19 OF

S U N D A Y

22 23 24 25 26 OF

S U N D A Y

29 30

Total

Defect

s

PPM

1 BILL OF MATERIAL CHANGE 0 0 0 0 0

2 SUPPLIER FAULT 0 1 0 1 0 1 1 0 1 2 1 0 2 0 0 0 6 16 533

3 BUYER FAULT 0 0 0 0 0 0

4ENGINE PREPONED ADDITIONAL ENGINE 0 0 0 0 0 0 0

5 RRP-REQT RPORT PROBLEM 0 0 0 0 0 0 0

6 STOCK DESCRIPANCY 0 0 0 0 0 0 0

7 QUALITY SOURCING ISSUES 0 0 0 0 0 0 0 1 05 1666

8 DELAY GRR POSTING 0 0 0 0 0

9 TRANSPORTATION PROBLEM 0 0 0 1 0 1

Total Defects 0 0 0 0 0 0 0 1 0 1 1 1 0 0 1 0 1 2 1 0 0 0 3 0 0 0 0 0 0 6 0 175 583

0 0 0 0 0 0 0 3 3 3 3

0 3 3 3 3

3 3 3 3

3 3 3 3

0 0 3 3 3 3

0 3 3 3 3

6 6 6 7

3 3 3 3

0 0 0 8 3 3 3

0 0 0 0 0 0 2 0 0 0 0

0

Number of active parts for a month=300 NOS

Defects Per Million

Weekly PPM 0 5 5 6

2 2 2 2

2 2 2 2

0

What Short of material while Pulli Why Various reasons as above

Where In the Store Who Kanban process owener(store person)

When While Kanban Pulling How During routine work

MONTHLY

Sr

no

MONTHLY PP

Month

PPM

Kaizen

DATE

Month

PPM

Kaizen

Daily PPM Value for Feb - 2001

0

4000

8000

12000

16000

20000

24000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30Date

P P M

V a l u e

Weekly PPM Value

0

500

1000

1500

2000

2500

1 2 3 4 5

Week P P M

M P T bl IN OFFICE16

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- MoP Table IN OFFICEHuman Resources MOP summary

May02 Jun 02 Jul02 Aug 02 Sep02 Oct 02 Nov 02 Dec 02 Jan03 Feb03

Productivity (P)

Actual 6915 6546 4989 5806 5645 4879 5056 4746 5308 5158

Desired 50 50 50 50 50 50 50 50 50 50

Actual 300 250 150 250 250 200 150 150 175 225 450

Desired 200 200 200 200 200 200 200 200 200 200 200

Quality (Q)

Actual 76

Desired(Tar et)

80

Actual 12th 10th 12th 12th 10th 10th 10th 10th 9th 8th

Desired 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th

Actual 9th 7th 7th 8th 8th 7th 7th 7th 7th 6th

Desired 8th 7th 6th 6th 6th 6th 6th 6th 6th 6th 6th

Actual 5th 5th 5th 5th 5th 5th 5th 5th 5th 4th 5th

Desired 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th

Actual 0 1 0 1 1 1 0 1 1 1 2

Desired 0 0 0 0 0 0 0 0 0 0 0

BEFORE AFTER 5S

RESULT MONITORActual

DeasiredApr02

AFTER 5S

PeopleEngineDay

HRFE Score (Yearly

measure) (Measured one in a year)

Delivery (D)

Monthly Report Submission

Safety Incidents (S)

No of Accidents Month

CPS Report

Monthly headcount data

No of people involved in

community Welfare

- Kaizen Projects in Offices

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HR

bull Improve employee data adequacy

bull Transfer of old PF accountbull Consolidation of banks for salary payment

bull Safety on road Safety goggles

bull Safety gates on shop floors

bull Pokayokes on accidents ( Radial drills Signs on walkways )

bull Prevention of epidemic diseases

bull Canteen Improvement ndash Kanban for material

- Energy saving

- Improve ventilation and lighting

- Roof cooling by purified drainage

water

- Kaizen Projects in Offices

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HR

bull Improvement in Health awareness ( check up Lectures

De addiction campsbull Bench marking visits to other factories

bull Recognition policy

bull Participation in intra company competition

bull Safety poster competition

bull ldquoOrdquo tag campaign for safety

bull ATM counter bank facility at gate

bull Prize distribution by Union leaders

bull Letter to family for good work

bull Proper lighting and ventilation at workplace

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bull Poka-yoke (pronounced POH-kah YOH-kayldquo ) bull Japanese words poka (inadvertent mistake) and yoke

(prevent) was invented by Shigeo Shingo in the 1960s

bull The essential idea of poka-yoke is to design your process so

that mistakes are impossible or at least easily detected and

corrected

About Shigeo Shingohelliphelliphellip

bull A leading proponent of statistical process control

bull Became frustrated with the statistical approach

bull Statistical sampling implies that some products to gountested with the result that some rate of defects would

always reach the customer

About POKA YOKEhelliphelliphelliphellip

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bull Shingo was communicated of a problem inldquoYamada Electric plantrdquo in 1961

bull A small switch with two push-buttons supported by two

springs occasionally the worker assembling the switch would

forget to insert a spring under each push-button

bull Sometimes the error would not be discovered until the unitreached a customer

bull Factory would have to dispatch an engineer to the customer

site to disassemble the switch insert the missing spring and

re-assemble the switch

bull This problem of the missing spring was both costly andembarrassing

bull Despite everyones best intentions the missing spring problem

would eventually re-appear

Birth of POKA YOKE helliphelliphellip

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Pokayoke ActionError Has

Occurred

Detection

Is Made

Defect

Is

Signaled Control

Feedback

GivenProcess

Is

Stopped

POKA YOKE Action

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bull A system for organising work that prevents the error

bull Excludes any risk of error even by the beginner

bull Allows everyone to operate without mistake

bull Prevents error that are about to occur

bull Inspection time will be minimised

What is ldquoMistake Proofing ldquo Why should we do it

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Mistake -Proof Approach

List of Problems ndash Select

Form a Team

Brain-writing at Gemba

Why-Why Analysis leads to root cause

Kaizens on root cause

Establish Activities to maintain standard

Work Towards Low Cost Automation

Plan

Do

Check

Act

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What - A tool that helps to eliminate inadvertent human errors

- Helps to build quality in product at sourceWhere - Is helpful in highly repetitive situations High Productivity areas

may lead to mistakes sometimes

(Unintentional errors - Forgetting Ignoring Inattentiveness )

eg - Complex processes Repetitive assembly mistakes

When - Sourced from Safety issues Driven by known quality problems

Customer complaints RFT P Tags BIS issues FMEA

Why - Builds quality in the product waste elimination

How - Pokayoke is often LOW COST or NO COST solutions

POKA YOKE helps in case of unintentional mistakes and not mischiefs

Pokayoke - Fail safe in 5 W 1 H

Kaizen

842019 Presentation on TPS -JIT Kanban

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Welcome

Learning Session on

Model Machine

Objectives

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3693

j

To Learn

bull Concept of Model Machine - P - PC Balance

bull Why Model Machine

bull 8 Major losses

bull OEE Calculations

bull How to Develop

bull Documentation

bull Examples

Wh M d l M hi

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Why Model MachineProfit = Sales ndash Cost

Profit = Sales ndash Mfg Cost

To reduce manufacturing cost needs optimumutilization of all assets ie resources

Measurement of effective utilization of all

resources is Overall Equipment Efficiency( OEE)

(09 09 09 = 73)

Why Model Machine

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Profit = Total sales ndash Total cost

Why Model Machine

Profit = Selling Prices - Input Mfg cost up

( competition ) ( Increasing cost of input resources )

To maintain improve profit hellip Solution is ldquo Reduce Mfg costrdquo

Improve Asset Utilization

Improve Overall Equipment ldquoEfficiencyrdquo (OEE)

OEE = Availability x Performance x Quality

Our goal should be to improve OEE gt 85

world class Benchmark = 95

Why Model Machine

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Why Model Machine

If

OEE = Mfg Cost

Mfg cost = profit

eg Consider a MC of cost Rs 5 cr

Utilization in Japan china ndash OEE 90Utilization in India ndash OEE 45 (45 7080)So product cost in India will be 2 times than the cost in

china

Key is improve to OEEAchievement on 8 Model Machines - OEE improved

from 45 to 75 85

P - PC Balance

842019 Presentation on TPS -JIT Kanban

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P PC Balance

Production Vs Production Capability

Engine+Parts Equipment + MC + Test Bed

Model Machine

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Factory Within Factory is BU

BU Within BU is MODEL MC

WHY Model MC

To deliver -Cost Effective Product to ldquoInternalrdquo amp Externalrdquo Customer

Zero - Breakdown

By Achieving - Zero - Accident

Zero - Defect

To Success is ldquoImprove OEErdquo (Overall Equipment Effectiveness)

5 - M‟S OF PRODUCTION

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bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

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NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

842019 Presentation on TPS -JIT Kanban

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Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

842019 Presentation on TPS -JIT Kanban

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Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

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What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

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Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

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TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

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INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

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TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

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What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

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TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

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TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

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Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

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US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

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g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

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TPSLean Principles

Click to proceed

TPSLean Principles

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TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

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Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

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Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

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Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

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Principle 2 Takt time

Takt Time

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bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

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Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

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Principle 3

Non-value added activities

What are Non-value added activities

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bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

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1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

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bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

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bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

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Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

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bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

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bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

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bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

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bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

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Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

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bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

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bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

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ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

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Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

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Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

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bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

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bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

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bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

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Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

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PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

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bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

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bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

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2

Welcome

to

Presentationon

KAIZEN

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3

bull Customer orientation

bull TQC (Total Quality

Control)

bull Robotics

bull QC Circles

bull Suggestion system

bull Automation

bull Discipline at work

bull TPM (Total Productive

Maintenance)

bullKANBAN (Card System)

bullQuality Improvement

bullJust - in -time

bullZero defect production

bullSmall group activities

bullCo-operative labour and

management relations

bullProductivity improvement

bullNew product development

KAIZEN UMBRELLA

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4

What is KAIZEN

The Japanese word ldquoKAIZENrdquo means Continuous Improvement

KAI - Change

- Number of

times

ZEN - Good or better

- Self Realisation

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Kaizen - OriginbullKaizen is Kanji word Kanji is Chinese language

bullKai - Change Zen -GoodKaizen = Change for better

( Taiichi Ohno amp Toyoda started in

Toyota - 1960 )

bullIt is proven philosophy used world over for organisationalgrowth and competitive environment ( ToyotaCannon Sony Hyundai Honda Tourism in Mauritius )

bullKaizen emphasises developing culture of continuosimprovement Human being at center

bullKaizen is beneficial in every walk of lifeTo improve is to change To be perfect is to

Change often

Cummins India Limited January 2002

KaizenKaizenA Journey of thousand leagues

Begins with a single step

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Its the constant and determinedeffort that breaks down all resistance

sweeps away all obstacles- Claude M Bristol

Dedicated Resources

+ Concentrated Efforts

= Success of any Activity - Steve Chapman

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Continuous Improvement is the need for survival

in Global competitive environment

- Safety

- Quality

- Productivity

Develop Culture - Everybody can participate in Improvement

activity

Cost Saving - Ultimate benefit to Customer ndash

8 reduction year from suppliers of Toyota

A Total Quality culture for survival ---

bdquoQuality‟ is state of mind

- Why Kaizen

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Waste Elimination is the FOCUS

Anything other than the minimum amount of equipmentmaterial parts and working time absolutely essential to

production

Wastes in a factory Losses in Equipment

1 Over production 1 Breakdown2 Inventory 2 Set up amp adjustment

3 Product defects 3 Reduced speed

4 Rework 4 Defects in process

5 Transportation 5 Tool change

6 Waiting time 6 Start up

7 Search time 7Minor Stoppages

8 Non value activities

- Why Kaizen

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- How to Practice

Kaizen starts from Top Management

bullUnderstand the ldquo Kaizenrdquo Concept

bull Involve everybody in implementation

bull Maintain the improvements

bull Support the ldquoTeamrdquo Concept for developing

the ldquoKaizen Culturerdquo

bull Recognize Appreciate ldquoothersrdquo also bull Be ldquoAdvocaterdquo for Kaizen

bull ldquoPracticerdquo and ldquoTeachrdquo - ie ldquoPreachrdquo Kaizen

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10

Ground RulesKaizen Believes in Team Work

bull Zero investment - Optimize current equipment and

resources Do not plan on spending big moneybull Discard conventional fixed ideas for production

bull Think of how to do it not why it cannot be done

bull Correct mistakes at once for Customer delights

bull Do not make excuses question current practicesbull Do not wait for perfection do it right away

bull Wisdom is brought about when faced with hardship

bull Eliminate or reduce when we can see and feel the bdquowaste‟

bull Ask bdquoWhyrdquo five times and seek root causes

bull Seek the wisdom of ten rather than the knowledge of one

bull Kaizen never stops

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11

KAIZEN

Continuous progress through People Involvement

KAI ndash Change ZEN ndash For Better

KAIZEN ndash Change For Better

ldquoContinual Improvementrdquo

UnsafeAction

Near Misses

Fatal

Accident1

30

300 Problem in bdquoseed‟

stage(Signals

ignored)

Problem in bdquosaplingrsquo stage

Problem in bdquotree‟ stage

(Disasters at workplace)

Problems at the WorkPlace

5 bdquoS‟ F d ti

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Kaizen Museum

1 Seiri - Sorting

2 Seiton - Systematic Arrangement

3 Seiso - Spic and Span TPM

(Cleaning with inspection)

4 Seiketsu- Standardized workplace5 Shitsuke- Self Discipline

- 5 bdquoS‟ as Foundation

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5 S linked with productivity

Step 1 Awareness revolution

( prerequisite for factory improvement )

Step 2 The 5 S‟s

( foundation for factory improvement )

Step 3 Flow manufacturing

Step 4 Leveling

Step 5 standard operations

Just - in - time

Multi

process

handling

Changeover

Human

automation

Kanban

Quality

assurance

Maintenance

amp Safety

M a n p o w e r o p t i m i z a t i o n V

i s u al M an

a g em en t

5 S - Objectives

G b K i 3 bdquoG‟ I t

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India Limited

Gemba - Work place

eg mc amp surroundings areatable amp surroundings

Assembly Station test cell etc

bull Gembutsu - Problem piece

eg All objectives related to improvement in Gemba

bull Genjitsu - Real time

eg Observe the things

while happening or at the earliest

after happening for getting the facts real information

ldquoGemba Kaizenrdquo means - Improvement at yourwork place Team is important in Gemba Kaizen Look at the work place to find out avenues

for bdquoKaizen‟ through 3 bdquoD‟ approach

- Gemba Kaizen -3 bdquoG‟s Importance

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India Limited

How to start - For initial work Use bdquo3D‟ approach

ndash Dirty - oil coolant air leakages

- chips and burr on floor- Accumulated dust etc

ndash Dangerous - Unsafe working conditions- Movements

ndash Difficult - Difficult to move- lift assembly

- not ergonomical situations

Results in employee satisfaction amp improved morale

Makes job easier simpler safer and faster

Increases efficiency Happier Customer

Overall improvement of organization

- To Start with

I i amp K i

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India Limited

Innovation amp Kaizen

1

30

300

Kaizen is a small improvement carried out by the person in his own workplace

with nil or negligible investment

Kaizen Tools

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Kaizen Tools

1bdquoO‟ ndash

Opportunity

Tag

-Small Improvement - keeping in mind 1-30-300 triangle Avoid major stoppage

by proactive methods

- Structured process for Involvement Registration and tracking of every small

improvement

2 Gemba Kaizen - Focused work station improvement for elimination of waste - Improvementsowned by associates

3 5 S Activities- Seiri Seiton Seiso Seiketsu Shitsuke Disciplined approach for lean

management - Foundation for JIT Develop culture of discipline

4 7 Step Project

-Quality improvement projects taken from PPM chart Customer complaint

-Team work for resolving through 7 step structured process ( 5W1H CEdac

chips 5 Why root cause )

5Kobetsu

Kaizen

-Focused improvement under taken for quality waste elimination ( Kit

improvement )

6Material Feed

System

- Inventory control through 5 S 2 Bin System Movement reduction Linkage

upto supplier order )

7Layout

Modification

-Global layout with assembly at centre amp local layout in form of feeding system

-U shape layouts for synchronization of flow and inventory control Improve

material handling

8 One Piece Flow- Step by step reduction in inventory with final aim of JIT ( Zero - Breakdown

Accident Defect)

9 Model Machine

-Activities include -1S 2S Transparency MISER to improve availability

-OEE improvement through EYE chart 3S 3M chart 5S Before and After

monitoring each week

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10 Eye Chart-7 Step problem Pokayoke etc are sourced from these OEE charts

-Common chart for all BUs to note down quality defect

11 SMED

-Reduction in set up time by study of set up change activities video film

-Separating internal and external activities Modifications in fixtures auto

clamping etc

12 MISER- M-minimize I- improvise S- simplify E- eliminate R- reduce --- Continuous

improvement

13 POKAYOKE

- Failsafing for operator‟s un-intentional mistake and total quality

improvement

- Cost reduction by attacking poor quality kit shortages handling

improvement

14IFC ( Initial

Flow Control)

- Making a list of improvements by reviewing quality problems and customer

complaint

- These points will be used for ordering new machines or making

improvements in new product

15 KANBAN- Consumption based material procurement system Ensures availability of

material with minimum inventory

16bdquoO‟ Tag

Campaign

- To increase awareness for Safety PokaYoke Dirty Difficult Danger and

Deterioration

17 Office Kaizen- Apply kaizen tools for increasing effectiveness and reduce delays ( quick

response )

18 Training-Training for acquiring new skills at Gemba Improves employees on

continuous basis

Th f f f h l f t t ib t d b

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19 PQCD MoP

- These are measures of performance for whole factory contributed by

individual business units

- Review and correction is needed every month in 5S Before After chart

20JOHARI

WINDOW

-This technique is used to identify root causes in human elements while

solving problems using accumulated knowledge skills developed in a

individual This technique is based on communication in two entities in open

environment amp positive attitude towards problem resolution

21

BMT (

Behavioral

Modulation

Technique)

To impart skills leading to increase of productivity of employees and

motivate them

22 Recognition

Recognition is most important for any human being In kaizen activities we

take care of appreciating every improvement either by individual or by team

The theme is ldquoMaking everybody a herordquo There are 44 ways of appreciatingemployees without actual monitory gains or amount

23 Turbo Kaizen

- Idea generation is done through Turbo Kaizen amp implemented using Kaizen

tools

-Kaizen activities help faster implementation of cost saving ideas

24 Ergonomics

Ergonomics was coined from the Greek words ergon (meaning work) and

nomos (meaning rules) ldquo Fit the task to the person not the person to the

taskldquo

A good way to understand what ergonomics means is to think about the term

user-friendly

25 Karakuri

Machine layout is modified in such a manner that flow of material from one

machine to other machine is maintained without energy consumption by

taking advantage gravity

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Welcome

to Presentation

onOFFICE KAIZEN

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- Why Office Kaizen What are its‟ benefits

bull To improve productivity efficiency in the administrative functions andidentify and eliminate losses This includes analyzing processes andprocedures towards increased office automation

Benefits

bull Involvement of all people in support functions for focusing on betterplant performance

bull Reduction in administrative costs - Reduced inventory carrying cost

bull Better utilized work area - Reduce repetitive work

bull Motivate people in support areas - Multiskilling in support areas

bull Some evident results are- Reduced inventory levels in all parts of the supply chain

- Reduction in number of files

- Reduction of overhead costs (to include cost of non-productionnoncapital equipment)

- Productivity of people in support functions

- Breakdown of office equipment - Reduced manpower- Customer complaints due to logistics

- Expenses due to emergency dispatchespurchases

- Clean and pleasant work environment

d fi i ffi i16

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- How to define P Q C D S M in Office Kaizen

bull Each company will have to define for themselves looking at all losses which affect plantperformance

These are some examples

bull P ndash Production output lost due to want of material

ndash Manpower productivity

ndash Production output lost due to want of tools

bull Q ndash Mistakes in preparation of cheques bills invoices payroll

ndash Customer returnswarranty attributable to BOPs

ndash Rejectionrework in BOP‟sjob work

ndash Office area rework

bull C ndash Buying costunit produced

ndash Cost of logistics ndash inboundoutbound

ndash Cost of carrying inventory ndash Cost of communication

ndash Demurrage costs

bull D ndash Logistics losses(Delay in loadingunloading)

ndash Delay in delivery due to any of the support functions

ndash Delay in payments to suppliers

ndash Delay in information

bull S ndash Safety in material handlingstoreslogistics

ndash Safety of soft and hard databull M ndash Number of kaizens in office areas

H t t t ffi K i 16

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- How to start office Kaizen

Steps followed are

- Providing awareness about office Kaizen to all support departments

- Helping them to identify P Q C D S M in each function in relation to plantperformance

- Identify the scope for improvement in each function- Collect relevant data

- Help them to solve problems in their Circles Teams

- Make up an activity board where progress is monitored on both sides ndash results andactions along with Kaizens

How to identify losses in office Kaizen

In each functional area identify the losses separately and add them up to build up amaster plan for Office Kaizen For example

- office equipment breakdown

- communication channel breakdown telephone and fax lines

- time spent on retrieval of information

- non availability of correct on line stock status

- customer complaints due to logistics

- expenses on emergency dispatchespurchases- cost reduction on non-productionnon capital items

H t l t K b t K i t i f Offi K i 16

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- How to select Kobetsu Kaizen topics from Office Kaizen

Kobetsu Kaizen topics are selected aiming at --

- Inventory reduction- Lead time reduction of critical processes

- Motion amp space losses

- retrieval time reduction

- reducing or eliminating office work flow stagnation

- equalizing the work load

- analyzing for bdquono material‟ areas and improving them

- Improving the office efficiency

ndash By eliminating the time loss on retrieval of information

ndash By achieving zero breakdown of office equipment like telephoneand fax Lines Xerox machine etc

PPM Ch t IN OFFICE16

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- PPM Chart IN OFFICENov Dec Jan Feb Mar

96667 136667 110000 93333 1366

56 46 153 46

April May June July Aug

58333

90

Defects

Defects Expressed in 5W 1H

Fassion1 2 3 4 5 OF

S U N D A Y

8 9 10 11 12 OF

S U N D A Y

15 16 17 18 19 OF

S U N D A Y

22 23 24 25 26 OF

S U N D A Y

29 30

Total

Defect

s

PPM

1 BILL OF MATERIAL CHANGE 0 0 0 0 0

2 SUPPLIER FAULT 0 1 0 1 0 1 1 0 1 2 1 0 2 0 0 0 6 16 533

3 BUYER FAULT 0 0 0 0 0 0

4ENGINE PREPONED ADDITIONAL ENGINE 0 0 0 0 0 0 0

5 RRP-REQT RPORT PROBLEM 0 0 0 0 0 0 0

6 STOCK DESCRIPANCY 0 0 0 0 0 0 0

7 QUALITY SOURCING ISSUES 0 0 0 0 0 0 0 1 05 1666

8 DELAY GRR POSTING 0 0 0 0 0

9 TRANSPORTATION PROBLEM 0 0 0 1 0 1

Total Defects 0 0 0 0 0 0 0 1 0 1 1 1 0 0 1 0 1 2 1 0 0 0 3 0 0 0 0 0 0 6 0 175 583

0 0 0 0 0 0 0 3 3 3 3

0 3 3 3 3

3 3 3 3

3 3 3 3

0 0 3 3 3 3

0 3 3 3 3

6 6 6 7

3 3 3 3

0 0 0 8 3 3 3

0 0 0 0 0 0 2 0 0 0 0

0

Number of active parts for a month=300 NOS

Defects Per Million

Weekly PPM 0 5 5 6

2 2 2 2

2 2 2 2

0

What Short of material while Pulli Why Various reasons as above

Where In the Store Who Kanban process owener(store person)

When While Kanban Pulling How During routine work

MONTHLY

Sr

no

MONTHLY PP

Month

PPM

Kaizen

DATE

Month

PPM

Kaizen

Daily PPM Value for Feb - 2001

0

4000

8000

12000

16000

20000

24000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30Date

P P M

V a l u e

Weekly PPM Value

0

500

1000

1500

2000

2500

1 2 3 4 5

Week P P M

M P T bl IN OFFICE16

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- MoP Table IN OFFICEHuman Resources MOP summary

May02 Jun 02 Jul02 Aug 02 Sep02 Oct 02 Nov 02 Dec 02 Jan03 Feb03

Productivity (P)

Actual 6915 6546 4989 5806 5645 4879 5056 4746 5308 5158

Desired 50 50 50 50 50 50 50 50 50 50

Actual 300 250 150 250 250 200 150 150 175 225 450

Desired 200 200 200 200 200 200 200 200 200 200 200

Quality (Q)

Actual 76

Desired(Tar et)

80

Actual 12th 10th 12th 12th 10th 10th 10th 10th 9th 8th

Desired 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th

Actual 9th 7th 7th 8th 8th 7th 7th 7th 7th 6th

Desired 8th 7th 6th 6th 6th 6th 6th 6th 6th 6th 6th

Actual 5th 5th 5th 5th 5th 5th 5th 5th 5th 4th 5th

Desired 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th

Actual 0 1 0 1 1 1 0 1 1 1 2

Desired 0 0 0 0 0 0 0 0 0 0 0

BEFORE AFTER 5S

RESULT MONITORActual

DeasiredApr02

AFTER 5S

PeopleEngineDay

HRFE Score (Yearly

measure) (Measured one in a year)

Delivery (D)

Monthly Report Submission

Safety Incidents (S)

No of Accidents Month

CPS Report

Monthly headcount data

No of people involved in

community Welfare

- Kaizen Projects in Offices

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HR

bull Improve employee data adequacy

bull Transfer of old PF accountbull Consolidation of banks for salary payment

bull Safety on road Safety goggles

bull Safety gates on shop floors

bull Pokayokes on accidents ( Radial drills Signs on walkways )

bull Prevention of epidemic diseases

bull Canteen Improvement ndash Kanban for material

- Energy saving

- Improve ventilation and lighting

- Roof cooling by purified drainage

water

- Kaizen Projects in Offices

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HR

bull Improvement in Health awareness ( check up Lectures

De addiction campsbull Bench marking visits to other factories

bull Recognition policy

bull Participation in intra company competition

bull Safety poster competition

bull ldquoOrdquo tag campaign for safety

bull ATM counter bank facility at gate

bull Prize distribution by Union leaders

bull Letter to family for good work

bull Proper lighting and ventilation at workplace

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bull Poka-yoke (pronounced POH-kah YOH-kayldquo ) bull Japanese words poka (inadvertent mistake) and yoke

(prevent) was invented by Shigeo Shingo in the 1960s

bull The essential idea of poka-yoke is to design your process so

that mistakes are impossible or at least easily detected and

corrected

About Shigeo Shingohelliphelliphellip

bull A leading proponent of statistical process control

bull Became frustrated with the statistical approach

bull Statistical sampling implies that some products to gountested with the result that some rate of defects would

always reach the customer

About POKA YOKEhelliphelliphelliphellip

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bull Shingo was communicated of a problem inldquoYamada Electric plantrdquo in 1961

bull A small switch with two push-buttons supported by two

springs occasionally the worker assembling the switch would

forget to insert a spring under each push-button

bull Sometimes the error would not be discovered until the unitreached a customer

bull Factory would have to dispatch an engineer to the customer

site to disassemble the switch insert the missing spring and

re-assemble the switch

bull This problem of the missing spring was both costly andembarrassing

bull Despite everyones best intentions the missing spring problem

would eventually re-appear

Birth of POKA YOKE helliphelliphellip

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Pokayoke ActionError Has

Occurred

Detection

Is Made

Defect

Is

Signaled Control

Feedback

GivenProcess

Is

Stopped

POKA YOKE Action

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bull A system for organising work that prevents the error

bull Excludes any risk of error even by the beginner

bull Allows everyone to operate without mistake

bull Prevents error that are about to occur

bull Inspection time will be minimised

What is ldquoMistake Proofing ldquo Why should we do it

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Mistake -Proof Approach

List of Problems ndash Select

Form a Team

Brain-writing at Gemba

Why-Why Analysis leads to root cause

Kaizens on root cause

Establish Activities to maintain standard

Work Towards Low Cost Automation

Plan

Do

Check

Act

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What - A tool that helps to eliminate inadvertent human errors

- Helps to build quality in product at sourceWhere - Is helpful in highly repetitive situations High Productivity areas

may lead to mistakes sometimes

(Unintentional errors - Forgetting Ignoring Inattentiveness )

eg - Complex processes Repetitive assembly mistakes

When - Sourced from Safety issues Driven by known quality problems

Customer complaints RFT P Tags BIS issues FMEA

Why - Builds quality in the product waste elimination

How - Pokayoke is often LOW COST or NO COST solutions

POKA YOKE helps in case of unintentional mistakes and not mischiefs

Pokayoke - Fail safe in 5 W 1 H

Kaizen

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Welcome

Learning Session on

Model Machine

Objectives

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j

To Learn

bull Concept of Model Machine - P - PC Balance

bull Why Model Machine

bull 8 Major losses

bull OEE Calculations

bull How to Develop

bull Documentation

bull Examples

Wh M d l M hi

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Why Model MachineProfit = Sales ndash Cost

Profit = Sales ndash Mfg Cost

To reduce manufacturing cost needs optimumutilization of all assets ie resources

Measurement of effective utilization of all

resources is Overall Equipment Efficiency( OEE)

(09 09 09 = 73)

Why Model Machine

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Profit = Total sales ndash Total cost

Why Model Machine

Profit = Selling Prices - Input Mfg cost up

( competition ) ( Increasing cost of input resources )

To maintain improve profit hellip Solution is ldquo Reduce Mfg costrdquo

Improve Asset Utilization

Improve Overall Equipment ldquoEfficiencyrdquo (OEE)

OEE = Availability x Performance x Quality

Our goal should be to improve OEE gt 85

world class Benchmark = 95

Why Model Machine

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Why Model Machine

If

OEE = Mfg Cost

Mfg cost = profit

eg Consider a MC of cost Rs 5 cr

Utilization in Japan china ndash OEE 90Utilization in India ndash OEE 45 (45 7080)So product cost in India will be 2 times than the cost in

china

Key is improve to OEEAchievement on 8 Model Machines - OEE improved

from 45 to 75 85

P - PC Balance

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P PC Balance

Production Vs Production Capability

Engine+Parts Equipment + MC + Test Bed

Model Machine

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Factory Within Factory is BU

BU Within BU is MODEL MC

WHY Model MC

To deliver -Cost Effective Product to ldquoInternalrdquo amp Externalrdquo Customer

Zero - Breakdown

By Achieving - Zero - Accident

Zero - Defect

To Success is ldquoImprove OEErdquo (Overall Equipment Effectiveness)

5 - M‟S OF PRODUCTION

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bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

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NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

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Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

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Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

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What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

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Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

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TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

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INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

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TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

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What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

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TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

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TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

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Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

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US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

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g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

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TPSLean Principles

Click to proceed

TPSLean Principles

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TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

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Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

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Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

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Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

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Principle 2 Takt time

Takt Time

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bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

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Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

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Principle 3

Non-value added activities

What are Non-value added activities

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bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

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1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

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bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

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bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

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Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

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bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

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bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

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bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

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bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

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Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

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bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

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bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

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ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

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bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

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Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

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Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

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bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

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bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

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bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

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Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

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PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

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bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

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bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

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3

bull Customer orientation

bull TQC (Total Quality

Control)

bull Robotics

bull QC Circles

bull Suggestion system

bull Automation

bull Discipline at work

bull TPM (Total Productive

Maintenance)

bullKANBAN (Card System)

bullQuality Improvement

bullJust - in -time

bullZero defect production

bullSmall group activities

bullCo-operative labour and

management relations

bullProductivity improvement

bullNew product development

KAIZEN UMBRELLA

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4

What is KAIZEN

The Japanese word ldquoKAIZENrdquo means Continuous Improvement

KAI - Change

- Number of

times

ZEN - Good or better

- Self Realisation

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Kaizen - OriginbullKaizen is Kanji word Kanji is Chinese language

bullKai - Change Zen -GoodKaizen = Change for better

( Taiichi Ohno amp Toyoda started in

Toyota - 1960 )

bullIt is proven philosophy used world over for organisationalgrowth and competitive environment ( ToyotaCannon Sony Hyundai Honda Tourism in Mauritius )

bullKaizen emphasises developing culture of continuosimprovement Human being at center

bullKaizen is beneficial in every walk of lifeTo improve is to change To be perfect is to

Change often

Cummins India Limited January 2002

KaizenKaizenA Journey of thousand leagues

Begins with a single step

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Its the constant and determinedeffort that breaks down all resistance

sweeps away all obstacles- Claude M Bristol

Dedicated Resources

+ Concentrated Efforts

= Success of any Activity - Steve Chapman

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Continuous Improvement is the need for survival

in Global competitive environment

- Safety

- Quality

- Productivity

Develop Culture - Everybody can participate in Improvement

activity

Cost Saving - Ultimate benefit to Customer ndash

8 reduction year from suppliers of Toyota

A Total Quality culture for survival ---

bdquoQuality‟ is state of mind

- Why Kaizen

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Waste Elimination is the FOCUS

Anything other than the minimum amount of equipmentmaterial parts and working time absolutely essential to

production

Wastes in a factory Losses in Equipment

1 Over production 1 Breakdown2 Inventory 2 Set up amp adjustment

3 Product defects 3 Reduced speed

4 Rework 4 Defects in process

5 Transportation 5 Tool change

6 Waiting time 6 Start up

7 Search time 7Minor Stoppages

8 Non value activities

- Why Kaizen

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- How to Practice

Kaizen starts from Top Management

bullUnderstand the ldquo Kaizenrdquo Concept

bull Involve everybody in implementation

bull Maintain the improvements

bull Support the ldquoTeamrdquo Concept for developing

the ldquoKaizen Culturerdquo

bull Recognize Appreciate ldquoothersrdquo also bull Be ldquoAdvocaterdquo for Kaizen

bull ldquoPracticerdquo and ldquoTeachrdquo - ie ldquoPreachrdquo Kaizen

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10

Ground RulesKaizen Believes in Team Work

bull Zero investment - Optimize current equipment and

resources Do not plan on spending big moneybull Discard conventional fixed ideas for production

bull Think of how to do it not why it cannot be done

bull Correct mistakes at once for Customer delights

bull Do not make excuses question current practicesbull Do not wait for perfection do it right away

bull Wisdom is brought about when faced with hardship

bull Eliminate or reduce when we can see and feel the bdquowaste‟

bull Ask bdquoWhyrdquo five times and seek root causes

bull Seek the wisdom of ten rather than the knowledge of one

bull Kaizen never stops

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11

KAIZEN

Continuous progress through People Involvement

KAI ndash Change ZEN ndash For Better

KAIZEN ndash Change For Better

ldquoContinual Improvementrdquo

UnsafeAction

Near Misses

Fatal

Accident1

30

300 Problem in bdquoseed‟

stage(Signals

ignored)

Problem in bdquosaplingrsquo stage

Problem in bdquotree‟ stage

(Disasters at workplace)

Problems at the WorkPlace

5 bdquoS‟ F d ti

842019 Presentation on TPS -JIT Kanban

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Kaizen Museum

1 Seiri - Sorting

2 Seiton - Systematic Arrangement

3 Seiso - Spic and Span TPM

(Cleaning with inspection)

4 Seiketsu- Standardized workplace5 Shitsuke- Self Discipline

- 5 bdquoS‟ as Foundation

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 1393India Limited

5 S linked with productivity

Step 1 Awareness revolution

( prerequisite for factory improvement )

Step 2 The 5 S‟s

( foundation for factory improvement )

Step 3 Flow manufacturing

Step 4 Leveling

Step 5 standard operations

Just - in - time

Multi

process

handling

Changeover

Human

automation

Kanban

Quality

assurance

Maintenance

amp Safety

M a n p o w e r o p t i m i z a t i o n V

i s u al M an

a g em en t

5 S - Objectives

G b K i 3 bdquoG‟ I t

842019 Presentation on TPS -JIT Kanban

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India Limited

Gemba - Work place

eg mc amp surroundings areatable amp surroundings

Assembly Station test cell etc

bull Gembutsu - Problem piece

eg All objectives related to improvement in Gemba

bull Genjitsu - Real time

eg Observe the things

while happening or at the earliest

after happening for getting the facts real information

ldquoGemba Kaizenrdquo means - Improvement at yourwork place Team is important in Gemba Kaizen Look at the work place to find out avenues

for bdquoKaizen‟ through 3 bdquoD‟ approach

- Gemba Kaizen -3 bdquoG‟s Importance

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India Limited

How to start - For initial work Use bdquo3D‟ approach

ndash Dirty - oil coolant air leakages

- chips and burr on floor- Accumulated dust etc

ndash Dangerous - Unsafe working conditions- Movements

ndash Difficult - Difficult to move- lift assembly

- not ergonomical situations

Results in employee satisfaction amp improved morale

Makes job easier simpler safer and faster

Increases efficiency Happier Customer

Overall improvement of organization

- To Start with

I i amp K i

842019 Presentation on TPS -JIT Kanban

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India Limited

Innovation amp Kaizen

1

30

300

Kaizen is a small improvement carried out by the person in his own workplace

with nil or negligible investment

Kaizen Tools

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Kaizen Tools

1bdquoO‟ ndash

Opportunity

Tag

-Small Improvement - keeping in mind 1-30-300 triangle Avoid major stoppage

by proactive methods

- Structured process for Involvement Registration and tracking of every small

improvement

2 Gemba Kaizen - Focused work station improvement for elimination of waste - Improvementsowned by associates

3 5 S Activities- Seiri Seiton Seiso Seiketsu Shitsuke Disciplined approach for lean

management - Foundation for JIT Develop culture of discipline

4 7 Step Project

-Quality improvement projects taken from PPM chart Customer complaint

-Team work for resolving through 7 step structured process ( 5W1H CEdac

chips 5 Why root cause )

5Kobetsu

Kaizen

-Focused improvement under taken for quality waste elimination ( Kit

improvement )

6Material Feed

System

- Inventory control through 5 S 2 Bin System Movement reduction Linkage

upto supplier order )

7Layout

Modification

-Global layout with assembly at centre amp local layout in form of feeding system

-U shape layouts for synchronization of flow and inventory control Improve

material handling

8 One Piece Flow- Step by step reduction in inventory with final aim of JIT ( Zero - Breakdown

Accident Defect)

9 Model Machine

-Activities include -1S 2S Transparency MISER to improve availability

-OEE improvement through EYE chart 3S 3M chart 5S Before and After

monitoring each week

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10 Eye Chart-7 Step problem Pokayoke etc are sourced from these OEE charts

-Common chart for all BUs to note down quality defect

11 SMED

-Reduction in set up time by study of set up change activities video film

-Separating internal and external activities Modifications in fixtures auto

clamping etc

12 MISER- M-minimize I- improvise S- simplify E- eliminate R- reduce --- Continuous

improvement

13 POKAYOKE

- Failsafing for operator‟s un-intentional mistake and total quality

improvement

- Cost reduction by attacking poor quality kit shortages handling

improvement

14IFC ( Initial

Flow Control)

- Making a list of improvements by reviewing quality problems and customer

complaint

- These points will be used for ordering new machines or making

improvements in new product

15 KANBAN- Consumption based material procurement system Ensures availability of

material with minimum inventory

16bdquoO‟ Tag

Campaign

- To increase awareness for Safety PokaYoke Dirty Difficult Danger and

Deterioration

17 Office Kaizen- Apply kaizen tools for increasing effectiveness and reduce delays ( quick

response )

18 Training-Training for acquiring new skills at Gemba Improves employees on

continuous basis

Th f f f h l f t t ib t d b

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19 PQCD MoP

- These are measures of performance for whole factory contributed by

individual business units

- Review and correction is needed every month in 5S Before After chart

20JOHARI

WINDOW

-This technique is used to identify root causes in human elements while

solving problems using accumulated knowledge skills developed in a

individual This technique is based on communication in two entities in open

environment amp positive attitude towards problem resolution

21

BMT (

Behavioral

Modulation

Technique)

To impart skills leading to increase of productivity of employees and

motivate them

22 Recognition

Recognition is most important for any human being In kaizen activities we

take care of appreciating every improvement either by individual or by team

The theme is ldquoMaking everybody a herordquo There are 44 ways of appreciatingemployees without actual monitory gains or amount

23 Turbo Kaizen

- Idea generation is done through Turbo Kaizen amp implemented using Kaizen

tools

-Kaizen activities help faster implementation of cost saving ideas

24 Ergonomics

Ergonomics was coined from the Greek words ergon (meaning work) and

nomos (meaning rules) ldquo Fit the task to the person not the person to the

taskldquo

A good way to understand what ergonomics means is to think about the term

user-friendly

25 Karakuri

Machine layout is modified in such a manner that flow of material from one

machine to other machine is maintained without energy consumption by

taking advantage gravity

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Welcome

to Presentation

onOFFICE KAIZEN

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- Why Office Kaizen What are its‟ benefits

bull To improve productivity efficiency in the administrative functions andidentify and eliminate losses This includes analyzing processes andprocedures towards increased office automation

Benefits

bull Involvement of all people in support functions for focusing on betterplant performance

bull Reduction in administrative costs - Reduced inventory carrying cost

bull Better utilized work area - Reduce repetitive work

bull Motivate people in support areas - Multiskilling in support areas

bull Some evident results are- Reduced inventory levels in all parts of the supply chain

- Reduction in number of files

- Reduction of overhead costs (to include cost of non-productionnoncapital equipment)

- Productivity of people in support functions

- Breakdown of office equipment - Reduced manpower- Customer complaints due to logistics

- Expenses due to emergency dispatchespurchases

- Clean and pleasant work environment

d fi i ffi i16

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- How to define P Q C D S M in Office Kaizen

bull Each company will have to define for themselves looking at all losses which affect plantperformance

These are some examples

bull P ndash Production output lost due to want of material

ndash Manpower productivity

ndash Production output lost due to want of tools

bull Q ndash Mistakes in preparation of cheques bills invoices payroll

ndash Customer returnswarranty attributable to BOPs

ndash Rejectionrework in BOP‟sjob work

ndash Office area rework

bull C ndash Buying costunit produced

ndash Cost of logistics ndash inboundoutbound

ndash Cost of carrying inventory ndash Cost of communication

ndash Demurrage costs

bull D ndash Logistics losses(Delay in loadingunloading)

ndash Delay in delivery due to any of the support functions

ndash Delay in payments to suppliers

ndash Delay in information

bull S ndash Safety in material handlingstoreslogistics

ndash Safety of soft and hard databull M ndash Number of kaizens in office areas

H t t t ffi K i 16

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- How to start office Kaizen

Steps followed are

- Providing awareness about office Kaizen to all support departments

- Helping them to identify P Q C D S M in each function in relation to plantperformance

- Identify the scope for improvement in each function- Collect relevant data

- Help them to solve problems in their Circles Teams

- Make up an activity board where progress is monitored on both sides ndash results andactions along with Kaizens

How to identify losses in office Kaizen

In each functional area identify the losses separately and add them up to build up amaster plan for Office Kaizen For example

- office equipment breakdown

- communication channel breakdown telephone and fax lines

- time spent on retrieval of information

- non availability of correct on line stock status

- customer complaints due to logistics

- expenses on emergency dispatchespurchases- cost reduction on non-productionnon capital items

H t l t K b t K i t i f Offi K i 16

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- How to select Kobetsu Kaizen topics from Office Kaizen

Kobetsu Kaizen topics are selected aiming at --

- Inventory reduction- Lead time reduction of critical processes

- Motion amp space losses

- retrieval time reduction

- reducing or eliminating office work flow stagnation

- equalizing the work load

- analyzing for bdquono material‟ areas and improving them

- Improving the office efficiency

ndash By eliminating the time loss on retrieval of information

ndash By achieving zero breakdown of office equipment like telephoneand fax Lines Xerox machine etc

PPM Ch t IN OFFICE16

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- PPM Chart IN OFFICENov Dec Jan Feb Mar

96667 136667 110000 93333 1366

56 46 153 46

April May June July Aug

58333

90

Defects

Defects Expressed in 5W 1H

Fassion1 2 3 4 5 OF

S U N D A Y

8 9 10 11 12 OF

S U N D A Y

15 16 17 18 19 OF

S U N D A Y

22 23 24 25 26 OF

S U N D A Y

29 30

Total

Defect

s

PPM

1 BILL OF MATERIAL CHANGE 0 0 0 0 0

2 SUPPLIER FAULT 0 1 0 1 0 1 1 0 1 2 1 0 2 0 0 0 6 16 533

3 BUYER FAULT 0 0 0 0 0 0

4ENGINE PREPONED ADDITIONAL ENGINE 0 0 0 0 0 0 0

5 RRP-REQT RPORT PROBLEM 0 0 0 0 0 0 0

6 STOCK DESCRIPANCY 0 0 0 0 0 0 0

7 QUALITY SOURCING ISSUES 0 0 0 0 0 0 0 1 05 1666

8 DELAY GRR POSTING 0 0 0 0 0

9 TRANSPORTATION PROBLEM 0 0 0 1 0 1

Total Defects 0 0 0 0 0 0 0 1 0 1 1 1 0 0 1 0 1 2 1 0 0 0 3 0 0 0 0 0 0 6 0 175 583

0 0 0 0 0 0 0 3 3 3 3

0 3 3 3 3

3 3 3 3

3 3 3 3

0 0 3 3 3 3

0 3 3 3 3

6 6 6 7

3 3 3 3

0 0 0 8 3 3 3

0 0 0 0 0 0 2 0 0 0 0

0

Number of active parts for a month=300 NOS

Defects Per Million

Weekly PPM 0 5 5 6

2 2 2 2

2 2 2 2

0

What Short of material while Pulli Why Various reasons as above

Where In the Store Who Kanban process owener(store person)

When While Kanban Pulling How During routine work

MONTHLY

Sr

no

MONTHLY PP

Month

PPM

Kaizen

DATE

Month

PPM

Kaizen

Daily PPM Value for Feb - 2001

0

4000

8000

12000

16000

20000

24000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30Date

P P M

V a l u e

Weekly PPM Value

0

500

1000

1500

2000

2500

1 2 3 4 5

Week P P M

M P T bl IN OFFICE16

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- MoP Table IN OFFICEHuman Resources MOP summary

May02 Jun 02 Jul02 Aug 02 Sep02 Oct 02 Nov 02 Dec 02 Jan03 Feb03

Productivity (P)

Actual 6915 6546 4989 5806 5645 4879 5056 4746 5308 5158

Desired 50 50 50 50 50 50 50 50 50 50

Actual 300 250 150 250 250 200 150 150 175 225 450

Desired 200 200 200 200 200 200 200 200 200 200 200

Quality (Q)

Actual 76

Desired(Tar et)

80

Actual 12th 10th 12th 12th 10th 10th 10th 10th 9th 8th

Desired 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th

Actual 9th 7th 7th 8th 8th 7th 7th 7th 7th 6th

Desired 8th 7th 6th 6th 6th 6th 6th 6th 6th 6th 6th

Actual 5th 5th 5th 5th 5th 5th 5th 5th 5th 4th 5th

Desired 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th

Actual 0 1 0 1 1 1 0 1 1 1 2

Desired 0 0 0 0 0 0 0 0 0 0 0

BEFORE AFTER 5S

RESULT MONITORActual

DeasiredApr02

AFTER 5S

PeopleEngineDay

HRFE Score (Yearly

measure) (Measured one in a year)

Delivery (D)

Monthly Report Submission

Safety Incidents (S)

No of Accidents Month

CPS Report

Monthly headcount data

No of people involved in

community Welfare

- Kaizen Projects in Offices

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HR

bull Improve employee data adequacy

bull Transfer of old PF accountbull Consolidation of banks for salary payment

bull Safety on road Safety goggles

bull Safety gates on shop floors

bull Pokayokes on accidents ( Radial drills Signs on walkways )

bull Prevention of epidemic diseases

bull Canteen Improvement ndash Kanban for material

- Energy saving

- Improve ventilation and lighting

- Roof cooling by purified drainage

water

- Kaizen Projects in Offices

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HR

bull Improvement in Health awareness ( check up Lectures

De addiction campsbull Bench marking visits to other factories

bull Recognition policy

bull Participation in intra company competition

bull Safety poster competition

bull ldquoOrdquo tag campaign for safety

bull ATM counter bank facility at gate

bull Prize distribution by Union leaders

bull Letter to family for good work

bull Proper lighting and ventilation at workplace

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bull Poka-yoke (pronounced POH-kah YOH-kayldquo ) bull Japanese words poka (inadvertent mistake) and yoke

(prevent) was invented by Shigeo Shingo in the 1960s

bull The essential idea of poka-yoke is to design your process so

that mistakes are impossible or at least easily detected and

corrected

About Shigeo Shingohelliphelliphellip

bull A leading proponent of statistical process control

bull Became frustrated with the statistical approach

bull Statistical sampling implies that some products to gountested with the result that some rate of defects would

always reach the customer

About POKA YOKEhelliphelliphelliphellip

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bull Shingo was communicated of a problem inldquoYamada Electric plantrdquo in 1961

bull A small switch with two push-buttons supported by two

springs occasionally the worker assembling the switch would

forget to insert a spring under each push-button

bull Sometimes the error would not be discovered until the unitreached a customer

bull Factory would have to dispatch an engineer to the customer

site to disassemble the switch insert the missing spring and

re-assemble the switch

bull This problem of the missing spring was both costly andembarrassing

bull Despite everyones best intentions the missing spring problem

would eventually re-appear

Birth of POKA YOKE helliphelliphellip

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Pokayoke ActionError Has

Occurred

Detection

Is Made

Defect

Is

Signaled Control

Feedback

GivenProcess

Is

Stopped

POKA YOKE Action

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bull A system for organising work that prevents the error

bull Excludes any risk of error even by the beginner

bull Allows everyone to operate without mistake

bull Prevents error that are about to occur

bull Inspection time will be minimised

What is ldquoMistake Proofing ldquo Why should we do it

842019 Presentation on TPS -JIT Kanban

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Mistake -Proof Approach

List of Problems ndash Select

Form a Team

Brain-writing at Gemba

Why-Why Analysis leads to root cause

Kaizens on root cause

Establish Activities to maintain standard

Work Towards Low Cost Automation

Plan

Do

Check

Act

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What - A tool that helps to eliminate inadvertent human errors

- Helps to build quality in product at sourceWhere - Is helpful in highly repetitive situations High Productivity areas

may lead to mistakes sometimes

(Unintentional errors - Forgetting Ignoring Inattentiveness )

eg - Complex processes Repetitive assembly mistakes

When - Sourced from Safety issues Driven by known quality problems

Customer complaints RFT P Tags BIS issues FMEA

Why - Builds quality in the product waste elimination

How - Pokayoke is often LOW COST or NO COST solutions

POKA YOKE helps in case of unintentional mistakes and not mischiefs

Pokayoke - Fail safe in 5 W 1 H

Kaizen

842019 Presentation on TPS -JIT Kanban

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Welcome

Learning Session on

Model Machine

Objectives

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3693

j

To Learn

bull Concept of Model Machine - P - PC Balance

bull Why Model Machine

bull 8 Major losses

bull OEE Calculations

bull How to Develop

bull Documentation

bull Examples

Wh M d l M hi

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3793

Why Model MachineProfit = Sales ndash Cost

Profit = Sales ndash Mfg Cost

To reduce manufacturing cost needs optimumutilization of all assets ie resources

Measurement of effective utilization of all

resources is Overall Equipment Efficiency( OEE)

(09 09 09 = 73)

Why Model Machine

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3893

Profit = Total sales ndash Total cost

Why Model Machine

Profit = Selling Prices - Input Mfg cost up

( competition ) ( Increasing cost of input resources )

To maintain improve profit hellip Solution is ldquo Reduce Mfg costrdquo

Improve Asset Utilization

Improve Overall Equipment ldquoEfficiencyrdquo (OEE)

OEE = Availability x Performance x Quality

Our goal should be to improve OEE gt 85

world class Benchmark = 95

Why Model Machine

842019 Presentation on TPS -JIT Kanban

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Why Model Machine

If

OEE = Mfg Cost

Mfg cost = profit

eg Consider a MC of cost Rs 5 cr

Utilization in Japan china ndash OEE 90Utilization in India ndash OEE 45 (45 7080)So product cost in India will be 2 times than the cost in

china

Key is improve to OEEAchievement on 8 Model Machines - OEE improved

from 45 to 75 85

P - PC Balance

842019 Presentation on TPS -JIT Kanban

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P PC Balance

Production Vs Production Capability

Engine+Parts Equipment + MC + Test Bed

Model Machine

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Factory Within Factory is BU

BU Within BU is MODEL MC

WHY Model MC

To deliver -Cost Effective Product to ldquoInternalrdquo amp Externalrdquo Customer

Zero - Breakdown

By Achieving - Zero - Accident

Zero - Defect

To Success is ldquoImprove OEErdquo (Overall Equipment Effectiveness)

5 - M‟S OF PRODUCTION

842019 Presentation on TPS -JIT Kanban

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bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

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NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

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Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

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Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

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What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

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Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

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TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

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INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

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TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

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What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

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TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

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TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

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Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

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US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

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g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

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TPSLean Principles

Click to proceed

TPSLean Principles

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TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

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Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

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Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

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Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

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Principle 2 Takt time

Takt Time

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bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

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Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

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Principle 3

Non-value added activities

What are Non-value added activities

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bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

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1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

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bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

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bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

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Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

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bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

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bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

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bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

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bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

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Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

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bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

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bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

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ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

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Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

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Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

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bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

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bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

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bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

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Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

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PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

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bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

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bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

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4

What is KAIZEN

The Japanese word ldquoKAIZENrdquo means Continuous Improvement

KAI - Change

- Number of

times

ZEN - Good or better

- Self Realisation

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Kaizen - OriginbullKaizen is Kanji word Kanji is Chinese language

bullKai - Change Zen -GoodKaizen = Change for better

( Taiichi Ohno amp Toyoda started in

Toyota - 1960 )

bullIt is proven philosophy used world over for organisationalgrowth and competitive environment ( ToyotaCannon Sony Hyundai Honda Tourism in Mauritius )

bullKaizen emphasises developing culture of continuosimprovement Human being at center

bullKaizen is beneficial in every walk of lifeTo improve is to change To be perfect is to

Change often

Cummins India Limited January 2002

KaizenKaizenA Journey of thousand leagues

Begins with a single step

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Its the constant and determinedeffort that breaks down all resistance

sweeps away all obstacles- Claude M Bristol

Dedicated Resources

+ Concentrated Efforts

= Success of any Activity - Steve Chapman

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Continuous Improvement is the need for survival

in Global competitive environment

- Safety

- Quality

- Productivity

Develop Culture - Everybody can participate in Improvement

activity

Cost Saving - Ultimate benefit to Customer ndash

8 reduction year from suppliers of Toyota

A Total Quality culture for survival ---

bdquoQuality‟ is state of mind

- Why Kaizen

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Waste Elimination is the FOCUS

Anything other than the minimum amount of equipmentmaterial parts and working time absolutely essential to

production

Wastes in a factory Losses in Equipment

1 Over production 1 Breakdown2 Inventory 2 Set up amp adjustment

3 Product defects 3 Reduced speed

4 Rework 4 Defects in process

5 Transportation 5 Tool change

6 Waiting time 6 Start up

7 Search time 7Minor Stoppages

8 Non value activities

- Why Kaizen

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- How to Practice

Kaizen starts from Top Management

bullUnderstand the ldquo Kaizenrdquo Concept

bull Involve everybody in implementation

bull Maintain the improvements

bull Support the ldquoTeamrdquo Concept for developing

the ldquoKaizen Culturerdquo

bull Recognize Appreciate ldquoothersrdquo also bull Be ldquoAdvocaterdquo for Kaizen

bull ldquoPracticerdquo and ldquoTeachrdquo - ie ldquoPreachrdquo Kaizen

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10

Ground RulesKaizen Believes in Team Work

bull Zero investment - Optimize current equipment and

resources Do not plan on spending big moneybull Discard conventional fixed ideas for production

bull Think of how to do it not why it cannot be done

bull Correct mistakes at once for Customer delights

bull Do not make excuses question current practicesbull Do not wait for perfection do it right away

bull Wisdom is brought about when faced with hardship

bull Eliminate or reduce when we can see and feel the bdquowaste‟

bull Ask bdquoWhyrdquo five times and seek root causes

bull Seek the wisdom of ten rather than the knowledge of one

bull Kaizen never stops

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11

KAIZEN

Continuous progress through People Involvement

KAI ndash Change ZEN ndash For Better

KAIZEN ndash Change For Better

ldquoContinual Improvementrdquo

UnsafeAction

Near Misses

Fatal

Accident1

30

300 Problem in bdquoseed‟

stage(Signals

ignored)

Problem in bdquosaplingrsquo stage

Problem in bdquotree‟ stage

(Disasters at workplace)

Problems at the WorkPlace

5 bdquoS‟ F d ti

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Kaizen Museum

1 Seiri - Sorting

2 Seiton - Systematic Arrangement

3 Seiso - Spic and Span TPM

(Cleaning with inspection)

4 Seiketsu- Standardized workplace5 Shitsuke- Self Discipline

- 5 bdquoS‟ as Foundation

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5 S linked with productivity

Step 1 Awareness revolution

( prerequisite for factory improvement )

Step 2 The 5 S‟s

( foundation for factory improvement )

Step 3 Flow manufacturing

Step 4 Leveling

Step 5 standard operations

Just - in - time

Multi

process

handling

Changeover

Human

automation

Kanban

Quality

assurance

Maintenance

amp Safety

M a n p o w e r o p t i m i z a t i o n V

i s u al M an

a g em en t

5 S - Objectives

G b K i 3 bdquoG‟ I t

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India Limited

Gemba - Work place

eg mc amp surroundings areatable amp surroundings

Assembly Station test cell etc

bull Gembutsu - Problem piece

eg All objectives related to improvement in Gemba

bull Genjitsu - Real time

eg Observe the things

while happening or at the earliest

after happening for getting the facts real information

ldquoGemba Kaizenrdquo means - Improvement at yourwork place Team is important in Gemba Kaizen Look at the work place to find out avenues

for bdquoKaizen‟ through 3 bdquoD‟ approach

- Gemba Kaizen -3 bdquoG‟s Importance

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India Limited

How to start - For initial work Use bdquo3D‟ approach

ndash Dirty - oil coolant air leakages

- chips and burr on floor- Accumulated dust etc

ndash Dangerous - Unsafe working conditions- Movements

ndash Difficult - Difficult to move- lift assembly

- not ergonomical situations

Results in employee satisfaction amp improved morale

Makes job easier simpler safer and faster

Increases efficiency Happier Customer

Overall improvement of organization

- To Start with

I i amp K i

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India Limited

Innovation amp Kaizen

1

30

300

Kaizen is a small improvement carried out by the person in his own workplace

with nil or negligible investment

Kaizen Tools

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Kaizen Tools

1bdquoO‟ ndash

Opportunity

Tag

-Small Improvement - keeping in mind 1-30-300 triangle Avoid major stoppage

by proactive methods

- Structured process for Involvement Registration and tracking of every small

improvement

2 Gemba Kaizen - Focused work station improvement for elimination of waste - Improvementsowned by associates

3 5 S Activities- Seiri Seiton Seiso Seiketsu Shitsuke Disciplined approach for lean

management - Foundation for JIT Develop culture of discipline

4 7 Step Project

-Quality improvement projects taken from PPM chart Customer complaint

-Team work for resolving through 7 step structured process ( 5W1H CEdac

chips 5 Why root cause )

5Kobetsu

Kaizen

-Focused improvement under taken for quality waste elimination ( Kit

improvement )

6Material Feed

System

- Inventory control through 5 S 2 Bin System Movement reduction Linkage

upto supplier order )

7Layout

Modification

-Global layout with assembly at centre amp local layout in form of feeding system

-U shape layouts for synchronization of flow and inventory control Improve

material handling

8 One Piece Flow- Step by step reduction in inventory with final aim of JIT ( Zero - Breakdown

Accident Defect)

9 Model Machine

-Activities include -1S 2S Transparency MISER to improve availability

-OEE improvement through EYE chart 3S 3M chart 5S Before and After

monitoring each week

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10 Eye Chart-7 Step problem Pokayoke etc are sourced from these OEE charts

-Common chart for all BUs to note down quality defect

11 SMED

-Reduction in set up time by study of set up change activities video film

-Separating internal and external activities Modifications in fixtures auto

clamping etc

12 MISER- M-minimize I- improvise S- simplify E- eliminate R- reduce --- Continuous

improvement

13 POKAYOKE

- Failsafing for operator‟s un-intentional mistake and total quality

improvement

- Cost reduction by attacking poor quality kit shortages handling

improvement

14IFC ( Initial

Flow Control)

- Making a list of improvements by reviewing quality problems and customer

complaint

- These points will be used for ordering new machines or making

improvements in new product

15 KANBAN- Consumption based material procurement system Ensures availability of

material with minimum inventory

16bdquoO‟ Tag

Campaign

- To increase awareness for Safety PokaYoke Dirty Difficult Danger and

Deterioration

17 Office Kaizen- Apply kaizen tools for increasing effectiveness and reduce delays ( quick

response )

18 Training-Training for acquiring new skills at Gemba Improves employees on

continuous basis

Th f f f h l f t t ib t d b

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19 PQCD MoP

- These are measures of performance for whole factory contributed by

individual business units

- Review and correction is needed every month in 5S Before After chart

20JOHARI

WINDOW

-This technique is used to identify root causes in human elements while

solving problems using accumulated knowledge skills developed in a

individual This technique is based on communication in two entities in open

environment amp positive attitude towards problem resolution

21

BMT (

Behavioral

Modulation

Technique)

To impart skills leading to increase of productivity of employees and

motivate them

22 Recognition

Recognition is most important for any human being In kaizen activities we

take care of appreciating every improvement either by individual or by team

The theme is ldquoMaking everybody a herordquo There are 44 ways of appreciatingemployees without actual monitory gains or amount

23 Turbo Kaizen

- Idea generation is done through Turbo Kaizen amp implemented using Kaizen

tools

-Kaizen activities help faster implementation of cost saving ideas

24 Ergonomics

Ergonomics was coined from the Greek words ergon (meaning work) and

nomos (meaning rules) ldquo Fit the task to the person not the person to the

taskldquo

A good way to understand what ergonomics means is to think about the term

user-friendly

25 Karakuri

Machine layout is modified in such a manner that flow of material from one

machine to other machine is maintained without energy consumption by

taking advantage gravity

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Welcome

to Presentation

onOFFICE KAIZEN

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- Why Office Kaizen What are its‟ benefits

bull To improve productivity efficiency in the administrative functions andidentify and eliminate losses This includes analyzing processes andprocedures towards increased office automation

Benefits

bull Involvement of all people in support functions for focusing on betterplant performance

bull Reduction in administrative costs - Reduced inventory carrying cost

bull Better utilized work area - Reduce repetitive work

bull Motivate people in support areas - Multiskilling in support areas

bull Some evident results are- Reduced inventory levels in all parts of the supply chain

- Reduction in number of files

- Reduction of overhead costs (to include cost of non-productionnoncapital equipment)

- Productivity of people in support functions

- Breakdown of office equipment - Reduced manpower- Customer complaints due to logistics

- Expenses due to emergency dispatchespurchases

- Clean and pleasant work environment

d fi i ffi i16

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- How to define P Q C D S M in Office Kaizen

bull Each company will have to define for themselves looking at all losses which affect plantperformance

These are some examples

bull P ndash Production output lost due to want of material

ndash Manpower productivity

ndash Production output lost due to want of tools

bull Q ndash Mistakes in preparation of cheques bills invoices payroll

ndash Customer returnswarranty attributable to BOPs

ndash Rejectionrework in BOP‟sjob work

ndash Office area rework

bull C ndash Buying costunit produced

ndash Cost of logistics ndash inboundoutbound

ndash Cost of carrying inventory ndash Cost of communication

ndash Demurrage costs

bull D ndash Logistics losses(Delay in loadingunloading)

ndash Delay in delivery due to any of the support functions

ndash Delay in payments to suppliers

ndash Delay in information

bull S ndash Safety in material handlingstoreslogistics

ndash Safety of soft and hard databull M ndash Number of kaizens in office areas

H t t t ffi K i 16

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- How to start office Kaizen

Steps followed are

- Providing awareness about office Kaizen to all support departments

- Helping them to identify P Q C D S M in each function in relation to plantperformance

- Identify the scope for improvement in each function- Collect relevant data

- Help them to solve problems in their Circles Teams

- Make up an activity board where progress is monitored on both sides ndash results andactions along with Kaizens

How to identify losses in office Kaizen

In each functional area identify the losses separately and add them up to build up amaster plan for Office Kaizen For example

- office equipment breakdown

- communication channel breakdown telephone and fax lines

- time spent on retrieval of information

- non availability of correct on line stock status

- customer complaints due to logistics

- expenses on emergency dispatchespurchases- cost reduction on non-productionnon capital items

H t l t K b t K i t i f Offi K i 16

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- How to select Kobetsu Kaizen topics from Office Kaizen

Kobetsu Kaizen topics are selected aiming at --

- Inventory reduction- Lead time reduction of critical processes

- Motion amp space losses

- retrieval time reduction

- reducing or eliminating office work flow stagnation

- equalizing the work load

- analyzing for bdquono material‟ areas and improving them

- Improving the office efficiency

ndash By eliminating the time loss on retrieval of information

ndash By achieving zero breakdown of office equipment like telephoneand fax Lines Xerox machine etc

PPM Ch t IN OFFICE16

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- PPM Chart IN OFFICENov Dec Jan Feb Mar

96667 136667 110000 93333 1366

56 46 153 46

April May June July Aug

58333

90

Defects

Defects Expressed in 5W 1H

Fassion1 2 3 4 5 OF

S U N D A Y

8 9 10 11 12 OF

S U N D A Y

15 16 17 18 19 OF

S U N D A Y

22 23 24 25 26 OF

S U N D A Y

29 30

Total

Defect

s

PPM

1 BILL OF MATERIAL CHANGE 0 0 0 0 0

2 SUPPLIER FAULT 0 1 0 1 0 1 1 0 1 2 1 0 2 0 0 0 6 16 533

3 BUYER FAULT 0 0 0 0 0 0

4ENGINE PREPONED ADDITIONAL ENGINE 0 0 0 0 0 0 0

5 RRP-REQT RPORT PROBLEM 0 0 0 0 0 0 0

6 STOCK DESCRIPANCY 0 0 0 0 0 0 0

7 QUALITY SOURCING ISSUES 0 0 0 0 0 0 0 1 05 1666

8 DELAY GRR POSTING 0 0 0 0 0

9 TRANSPORTATION PROBLEM 0 0 0 1 0 1

Total Defects 0 0 0 0 0 0 0 1 0 1 1 1 0 0 1 0 1 2 1 0 0 0 3 0 0 0 0 0 0 6 0 175 583

0 0 0 0 0 0 0 3 3 3 3

0 3 3 3 3

3 3 3 3

3 3 3 3

0 0 3 3 3 3

0 3 3 3 3

6 6 6 7

3 3 3 3

0 0 0 8 3 3 3

0 0 0 0 0 0 2 0 0 0 0

0

Number of active parts for a month=300 NOS

Defects Per Million

Weekly PPM 0 5 5 6

2 2 2 2

2 2 2 2

0

What Short of material while Pulli Why Various reasons as above

Where In the Store Who Kanban process owener(store person)

When While Kanban Pulling How During routine work

MONTHLY

Sr

no

MONTHLY PP

Month

PPM

Kaizen

DATE

Month

PPM

Kaizen

Daily PPM Value for Feb - 2001

0

4000

8000

12000

16000

20000

24000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30Date

P P M

V a l u e

Weekly PPM Value

0

500

1000

1500

2000

2500

1 2 3 4 5

Week P P M

M P T bl IN OFFICE16

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- MoP Table IN OFFICEHuman Resources MOP summary

May02 Jun 02 Jul02 Aug 02 Sep02 Oct 02 Nov 02 Dec 02 Jan03 Feb03

Productivity (P)

Actual 6915 6546 4989 5806 5645 4879 5056 4746 5308 5158

Desired 50 50 50 50 50 50 50 50 50 50

Actual 300 250 150 250 250 200 150 150 175 225 450

Desired 200 200 200 200 200 200 200 200 200 200 200

Quality (Q)

Actual 76

Desired(Tar et)

80

Actual 12th 10th 12th 12th 10th 10th 10th 10th 9th 8th

Desired 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th

Actual 9th 7th 7th 8th 8th 7th 7th 7th 7th 6th

Desired 8th 7th 6th 6th 6th 6th 6th 6th 6th 6th 6th

Actual 5th 5th 5th 5th 5th 5th 5th 5th 5th 4th 5th

Desired 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th

Actual 0 1 0 1 1 1 0 1 1 1 2

Desired 0 0 0 0 0 0 0 0 0 0 0

BEFORE AFTER 5S

RESULT MONITORActual

DeasiredApr02

AFTER 5S

PeopleEngineDay

HRFE Score (Yearly

measure) (Measured one in a year)

Delivery (D)

Monthly Report Submission

Safety Incidents (S)

No of Accidents Month

CPS Report

Monthly headcount data

No of people involved in

community Welfare

- Kaizen Projects in Offices

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HR

bull Improve employee data adequacy

bull Transfer of old PF accountbull Consolidation of banks for salary payment

bull Safety on road Safety goggles

bull Safety gates on shop floors

bull Pokayokes on accidents ( Radial drills Signs on walkways )

bull Prevention of epidemic diseases

bull Canteen Improvement ndash Kanban for material

- Energy saving

- Improve ventilation and lighting

- Roof cooling by purified drainage

water

- Kaizen Projects in Offices

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HR

bull Improvement in Health awareness ( check up Lectures

De addiction campsbull Bench marking visits to other factories

bull Recognition policy

bull Participation in intra company competition

bull Safety poster competition

bull ldquoOrdquo tag campaign for safety

bull ATM counter bank facility at gate

bull Prize distribution by Union leaders

bull Letter to family for good work

bull Proper lighting and ventilation at workplace

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bull Poka-yoke (pronounced POH-kah YOH-kayldquo ) bull Japanese words poka (inadvertent mistake) and yoke

(prevent) was invented by Shigeo Shingo in the 1960s

bull The essential idea of poka-yoke is to design your process so

that mistakes are impossible or at least easily detected and

corrected

About Shigeo Shingohelliphelliphellip

bull A leading proponent of statistical process control

bull Became frustrated with the statistical approach

bull Statistical sampling implies that some products to gountested with the result that some rate of defects would

always reach the customer

About POKA YOKEhelliphelliphelliphellip

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bull Shingo was communicated of a problem inldquoYamada Electric plantrdquo in 1961

bull A small switch with two push-buttons supported by two

springs occasionally the worker assembling the switch would

forget to insert a spring under each push-button

bull Sometimes the error would not be discovered until the unitreached a customer

bull Factory would have to dispatch an engineer to the customer

site to disassemble the switch insert the missing spring and

re-assemble the switch

bull This problem of the missing spring was both costly andembarrassing

bull Despite everyones best intentions the missing spring problem

would eventually re-appear

Birth of POKA YOKE helliphelliphellip

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Pokayoke ActionError Has

Occurred

Detection

Is Made

Defect

Is

Signaled Control

Feedback

GivenProcess

Is

Stopped

POKA YOKE Action

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bull A system for organising work that prevents the error

bull Excludes any risk of error even by the beginner

bull Allows everyone to operate without mistake

bull Prevents error that are about to occur

bull Inspection time will be minimised

What is ldquoMistake Proofing ldquo Why should we do it

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Mistake -Proof Approach

List of Problems ndash Select

Form a Team

Brain-writing at Gemba

Why-Why Analysis leads to root cause

Kaizens on root cause

Establish Activities to maintain standard

Work Towards Low Cost Automation

Plan

Do

Check

Act

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What - A tool that helps to eliminate inadvertent human errors

- Helps to build quality in product at sourceWhere - Is helpful in highly repetitive situations High Productivity areas

may lead to mistakes sometimes

(Unintentional errors - Forgetting Ignoring Inattentiveness )

eg - Complex processes Repetitive assembly mistakes

When - Sourced from Safety issues Driven by known quality problems

Customer complaints RFT P Tags BIS issues FMEA

Why - Builds quality in the product waste elimination

How - Pokayoke is often LOW COST or NO COST solutions

POKA YOKE helps in case of unintentional mistakes and not mischiefs

Pokayoke - Fail safe in 5 W 1 H

Kaizen

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Welcome

Learning Session on

Model Machine

Objectives

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j

To Learn

bull Concept of Model Machine - P - PC Balance

bull Why Model Machine

bull 8 Major losses

bull OEE Calculations

bull How to Develop

bull Documentation

bull Examples

Wh M d l M hi

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Why Model MachineProfit = Sales ndash Cost

Profit = Sales ndash Mfg Cost

To reduce manufacturing cost needs optimumutilization of all assets ie resources

Measurement of effective utilization of all

resources is Overall Equipment Efficiency( OEE)

(09 09 09 = 73)

Why Model Machine

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Profit = Total sales ndash Total cost

Why Model Machine

Profit = Selling Prices - Input Mfg cost up

( competition ) ( Increasing cost of input resources )

To maintain improve profit hellip Solution is ldquo Reduce Mfg costrdquo

Improve Asset Utilization

Improve Overall Equipment ldquoEfficiencyrdquo (OEE)

OEE = Availability x Performance x Quality

Our goal should be to improve OEE gt 85

world class Benchmark = 95

Why Model Machine

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Why Model Machine

If

OEE = Mfg Cost

Mfg cost = profit

eg Consider a MC of cost Rs 5 cr

Utilization in Japan china ndash OEE 90Utilization in India ndash OEE 45 (45 7080)So product cost in India will be 2 times than the cost in

china

Key is improve to OEEAchievement on 8 Model Machines - OEE improved

from 45 to 75 85

P - PC Balance

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P PC Balance

Production Vs Production Capability

Engine+Parts Equipment + MC + Test Bed

Model Machine

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Factory Within Factory is BU

BU Within BU is MODEL MC

WHY Model MC

To deliver -Cost Effective Product to ldquoInternalrdquo amp Externalrdquo Customer

Zero - Breakdown

By Achieving - Zero - Accident

Zero - Defect

To Success is ldquoImprove OEErdquo (Overall Equipment Effectiveness)

5 - M‟S OF PRODUCTION

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bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

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NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

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Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

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Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

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What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

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Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

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TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

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INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

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TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

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What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

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TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

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TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

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Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

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US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

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g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

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TPSLean Principles

Click to proceed

TPSLean Principles

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TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

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Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

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Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

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Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

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Principle 2 Takt time

Takt Time

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bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

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Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

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Principle 3

Non-value added activities

What are Non-value added activities

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bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

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1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

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bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

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bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

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Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

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bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

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bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

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bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

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bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

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Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

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bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

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bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

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ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

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bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

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Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

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Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

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bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

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bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

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bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

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Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

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PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

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bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

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bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

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842019 Presentation on TPS -JIT Kanban

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Kaizen - OriginbullKaizen is Kanji word Kanji is Chinese language

bullKai - Change Zen -GoodKaizen = Change for better

( Taiichi Ohno amp Toyoda started in

Toyota - 1960 )

bullIt is proven philosophy used world over for organisationalgrowth and competitive environment ( ToyotaCannon Sony Hyundai Honda Tourism in Mauritius )

bullKaizen emphasises developing culture of continuosimprovement Human being at center

bullKaizen is beneficial in every walk of lifeTo improve is to change To be perfect is to

Change often

Cummins India Limited January 2002

KaizenKaizenA Journey of thousand leagues

Begins with a single step

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Its the constant and determinedeffort that breaks down all resistance

sweeps away all obstacles- Claude M Bristol

Dedicated Resources

+ Concentrated Efforts

= Success of any Activity - Steve Chapman

842019 Presentation on TPS -JIT Kanban

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Continuous Improvement is the need for survival

in Global competitive environment

- Safety

- Quality

- Productivity

Develop Culture - Everybody can participate in Improvement

activity

Cost Saving - Ultimate benefit to Customer ndash

8 reduction year from suppliers of Toyota

A Total Quality culture for survival ---

bdquoQuality‟ is state of mind

- Why Kaizen

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Waste Elimination is the FOCUS

Anything other than the minimum amount of equipmentmaterial parts and working time absolutely essential to

production

Wastes in a factory Losses in Equipment

1 Over production 1 Breakdown2 Inventory 2 Set up amp adjustment

3 Product defects 3 Reduced speed

4 Rework 4 Defects in process

5 Transportation 5 Tool change

6 Waiting time 6 Start up

7 Search time 7Minor Stoppages

8 Non value activities

- Why Kaizen

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- How to Practice

Kaizen starts from Top Management

bullUnderstand the ldquo Kaizenrdquo Concept

bull Involve everybody in implementation

bull Maintain the improvements

bull Support the ldquoTeamrdquo Concept for developing

the ldquoKaizen Culturerdquo

bull Recognize Appreciate ldquoothersrdquo also bull Be ldquoAdvocaterdquo for Kaizen

bull ldquoPracticerdquo and ldquoTeachrdquo - ie ldquoPreachrdquo Kaizen

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10

Ground RulesKaizen Believes in Team Work

bull Zero investment - Optimize current equipment and

resources Do not plan on spending big moneybull Discard conventional fixed ideas for production

bull Think of how to do it not why it cannot be done

bull Correct mistakes at once for Customer delights

bull Do not make excuses question current practicesbull Do not wait for perfection do it right away

bull Wisdom is brought about when faced with hardship

bull Eliminate or reduce when we can see and feel the bdquowaste‟

bull Ask bdquoWhyrdquo five times and seek root causes

bull Seek the wisdom of ten rather than the knowledge of one

bull Kaizen never stops

842019 Presentation on TPS -JIT Kanban

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11

KAIZEN

Continuous progress through People Involvement

KAI ndash Change ZEN ndash For Better

KAIZEN ndash Change For Better

ldquoContinual Improvementrdquo

UnsafeAction

Near Misses

Fatal

Accident1

30

300 Problem in bdquoseed‟

stage(Signals

ignored)

Problem in bdquosaplingrsquo stage

Problem in bdquotree‟ stage

(Disasters at workplace)

Problems at the WorkPlace

5 bdquoS‟ F d ti

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 1293India Limited

Kaizen Museum

1 Seiri - Sorting

2 Seiton - Systematic Arrangement

3 Seiso - Spic and Span TPM

(Cleaning with inspection)

4 Seiketsu- Standardized workplace5 Shitsuke- Self Discipline

- 5 bdquoS‟ as Foundation

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 1393India Limited

5 S linked with productivity

Step 1 Awareness revolution

( prerequisite for factory improvement )

Step 2 The 5 S‟s

( foundation for factory improvement )

Step 3 Flow manufacturing

Step 4 Leveling

Step 5 standard operations

Just - in - time

Multi

process

handling

Changeover

Human

automation

Kanban

Quality

assurance

Maintenance

amp Safety

M a n p o w e r o p t i m i z a t i o n V

i s u al M an

a g em en t

5 S - Objectives

G b K i 3 bdquoG‟ I t

842019 Presentation on TPS -JIT Kanban

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India Limited

Gemba - Work place

eg mc amp surroundings areatable amp surroundings

Assembly Station test cell etc

bull Gembutsu - Problem piece

eg All objectives related to improvement in Gemba

bull Genjitsu - Real time

eg Observe the things

while happening or at the earliest

after happening for getting the facts real information

ldquoGemba Kaizenrdquo means - Improvement at yourwork place Team is important in Gemba Kaizen Look at the work place to find out avenues

for bdquoKaizen‟ through 3 bdquoD‟ approach

- Gemba Kaizen -3 bdquoG‟s Importance

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India Limited

How to start - For initial work Use bdquo3D‟ approach

ndash Dirty - oil coolant air leakages

- chips and burr on floor- Accumulated dust etc

ndash Dangerous - Unsafe working conditions- Movements

ndash Difficult - Difficult to move- lift assembly

- not ergonomical situations

Results in employee satisfaction amp improved morale

Makes job easier simpler safer and faster

Increases efficiency Happier Customer

Overall improvement of organization

- To Start with

I i amp K i

842019 Presentation on TPS -JIT Kanban

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India Limited

Innovation amp Kaizen

1

30

300

Kaizen is a small improvement carried out by the person in his own workplace

with nil or negligible investment

Kaizen Tools

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Kaizen Tools

1bdquoO‟ ndash

Opportunity

Tag

-Small Improvement - keeping in mind 1-30-300 triangle Avoid major stoppage

by proactive methods

- Structured process for Involvement Registration and tracking of every small

improvement

2 Gemba Kaizen - Focused work station improvement for elimination of waste - Improvementsowned by associates

3 5 S Activities- Seiri Seiton Seiso Seiketsu Shitsuke Disciplined approach for lean

management - Foundation for JIT Develop culture of discipline

4 7 Step Project

-Quality improvement projects taken from PPM chart Customer complaint

-Team work for resolving through 7 step structured process ( 5W1H CEdac

chips 5 Why root cause )

5Kobetsu

Kaizen

-Focused improvement under taken for quality waste elimination ( Kit

improvement )

6Material Feed

System

- Inventory control through 5 S 2 Bin System Movement reduction Linkage

upto supplier order )

7Layout

Modification

-Global layout with assembly at centre amp local layout in form of feeding system

-U shape layouts for synchronization of flow and inventory control Improve

material handling

8 One Piece Flow- Step by step reduction in inventory with final aim of JIT ( Zero - Breakdown

Accident Defect)

9 Model Machine

-Activities include -1S 2S Transparency MISER to improve availability

-OEE improvement through EYE chart 3S 3M chart 5S Before and After

monitoring each week

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10 Eye Chart-7 Step problem Pokayoke etc are sourced from these OEE charts

-Common chart for all BUs to note down quality defect

11 SMED

-Reduction in set up time by study of set up change activities video film

-Separating internal and external activities Modifications in fixtures auto

clamping etc

12 MISER- M-minimize I- improvise S- simplify E- eliminate R- reduce --- Continuous

improvement

13 POKAYOKE

- Failsafing for operator‟s un-intentional mistake and total quality

improvement

- Cost reduction by attacking poor quality kit shortages handling

improvement

14IFC ( Initial

Flow Control)

- Making a list of improvements by reviewing quality problems and customer

complaint

- These points will be used for ordering new machines or making

improvements in new product

15 KANBAN- Consumption based material procurement system Ensures availability of

material with minimum inventory

16bdquoO‟ Tag

Campaign

- To increase awareness for Safety PokaYoke Dirty Difficult Danger and

Deterioration

17 Office Kaizen- Apply kaizen tools for increasing effectiveness and reduce delays ( quick

response )

18 Training-Training for acquiring new skills at Gemba Improves employees on

continuous basis

Th f f f h l f t t ib t d b

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19 PQCD MoP

- These are measures of performance for whole factory contributed by

individual business units

- Review and correction is needed every month in 5S Before After chart

20JOHARI

WINDOW

-This technique is used to identify root causes in human elements while

solving problems using accumulated knowledge skills developed in a

individual This technique is based on communication in two entities in open

environment amp positive attitude towards problem resolution

21

BMT (

Behavioral

Modulation

Technique)

To impart skills leading to increase of productivity of employees and

motivate them

22 Recognition

Recognition is most important for any human being In kaizen activities we

take care of appreciating every improvement either by individual or by team

The theme is ldquoMaking everybody a herordquo There are 44 ways of appreciatingemployees without actual monitory gains or amount

23 Turbo Kaizen

- Idea generation is done through Turbo Kaizen amp implemented using Kaizen

tools

-Kaizen activities help faster implementation of cost saving ideas

24 Ergonomics

Ergonomics was coined from the Greek words ergon (meaning work) and

nomos (meaning rules) ldquo Fit the task to the person not the person to the

taskldquo

A good way to understand what ergonomics means is to think about the term

user-friendly

25 Karakuri

Machine layout is modified in such a manner that flow of material from one

machine to other machine is maintained without energy consumption by

taking advantage gravity

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Welcome

to Presentation

onOFFICE KAIZEN

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- Why Office Kaizen What are its‟ benefits

bull To improve productivity efficiency in the administrative functions andidentify and eliminate losses This includes analyzing processes andprocedures towards increased office automation

Benefits

bull Involvement of all people in support functions for focusing on betterplant performance

bull Reduction in administrative costs - Reduced inventory carrying cost

bull Better utilized work area - Reduce repetitive work

bull Motivate people in support areas - Multiskilling in support areas

bull Some evident results are- Reduced inventory levels in all parts of the supply chain

- Reduction in number of files

- Reduction of overhead costs (to include cost of non-productionnoncapital equipment)

- Productivity of people in support functions

- Breakdown of office equipment - Reduced manpower- Customer complaints due to logistics

- Expenses due to emergency dispatchespurchases

- Clean and pleasant work environment

d fi i ffi i16

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- How to define P Q C D S M in Office Kaizen

bull Each company will have to define for themselves looking at all losses which affect plantperformance

These are some examples

bull P ndash Production output lost due to want of material

ndash Manpower productivity

ndash Production output lost due to want of tools

bull Q ndash Mistakes in preparation of cheques bills invoices payroll

ndash Customer returnswarranty attributable to BOPs

ndash Rejectionrework in BOP‟sjob work

ndash Office area rework

bull C ndash Buying costunit produced

ndash Cost of logistics ndash inboundoutbound

ndash Cost of carrying inventory ndash Cost of communication

ndash Demurrage costs

bull D ndash Logistics losses(Delay in loadingunloading)

ndash Delay in delivery due to any of the support functions

ndash Delay in payments to suppliers

ndash Delay in information

bull S ndash Safety in material handlingstoreslogistics

ndash Safety of soft and hard databull M ndash Number of kaizens in office areas

H t t t ffi K i 16

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- How to start office Kaizen

Steps followed are

- Providing awareness about office Kaizen to all support departments

- Helping them to identify P Q C D S M in each function in relation to plantperformance

- Identify the scope for improvement in each function- Collect relevant data

- Help them to solve problems in their Circles Teams

- Make up an activity board where progress is monitored on both sides ndash results andactions along with Kaizens

How to identify losses in office Kaizen

In each functional area identify the losses separately and add them up to build up amaster plan for Office Kaizen For example

- office equipment breakdown

- communication channel breakdown telephone and fax lines

- time spent on retrieval of information

- non availability of correct on line stock status

- customer complaints due to logistics

- expenses on emergency dispatchespurchases- cost reduction on non-productionnon capital items

H t l t K b t K i t i f Offi K i 16

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- How to select Kobetsu Kaizen topics from Office Kaizen

Kobetsu Kaizen topics are selected aiming at --

- Inventory reduction- Lead time reduction of critical processes

- Motion amp space losses

- retrieval time reduction

- reducing or eliminating office work flow stagnation

- equalizing the work load

- analyzing for bdquono material‟ areas and improving them

- Improving the office efficiency

ndash By eliminating the time loss on retrieval of information

ndash By achieving zero breakdown of office equipment like telephoneand fax Lines Xerox machine etc

PPM Ch t IN OFFICE16

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- PPM Chart IN OFFICENov Dec Jan Feb Mar

96667 136667 110000 93333 1366

56 46 153 46

April May June July Aug

58333

90

Defects

Defects Expressed in 5W 1H

Fassion1 2 3 4 5 OF

S U N D A Y

8 9 10 11 12 OF

S U N D A Y

15 16 17 18 19 OF

S U N D A Y

22 23 24 25 26 OF

S U N D A Y

29 30

Total

Defect

s

PPM

1 BILL OF MATERIAL CHANGE 0 0 0 0 0

2 SUPPLIER FAULT 0 1 0 1 0 1 1 0 1 2 1 0 2 0 0 0 6 16 533

3 BUYER FAULT 0 0 0 0 0 0

4ENGINE PREPONED ADDITIONAL ENGINE 0 0 0 0 0 0 0

5 RRP-REQT RPORT PROBLEM 0 0 0 0 0 0 0

6 STOCK DESCRIPANCY 0 0 0 0 0 0 0

7 QUALITY SOURCING ISSUES 0 0 0 0 0 0 0 1 05 1666

8 DELAY GRR POSTING 0 0 0 0 0

9 TRANSPORTATION PROBLEM 0 0 0 1 0 1

Total Defects 0 0 0 0 0 0 0 1 0 1 1 1 0 0 1 0 1 2 1 0 0 0 3 0 0 0 0 0 0 6 0 175 583

0 0 0 0 0 0 0 3 3 3 3

0 3 3 3 3

3 3 3 3

3 3 3 3

0 0 3 3 3 3

0 3 3 3 3

6 6 6 7

3 3 3 3

0 0 0 8 3 3 3

0 0 0 0 0 0 2 0 0 0 0

0

Number of active parts for a month=300 NOS

Defects Per Million

Weekly PPM 0 5 5 6

2 2 2 2

2 2 2 2

0

What Short of material while Pulli Why Various reasons as above

Where In the Store Who Kanban process owener(store person)

When While Kanban Pulling How During routine work

MONTHLY

Sr

no

MONTHLY PP

Month

PPM

Kaizen

DATE

Month

PPM

Kaizen

Daily PPM Value for Feb - 2001

0

4000

8000

12000

16000

20000

24000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30Date

P P M

V a l u e

Weekly PPM Value

0

500

1000

1500

2000

2500

1 2 3 4 5

Week P P M

M P T bl IN OFFICE16

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- MoP Table IN OFFICEHuman Resources MOP summary

May02 Jun 02 Jul02 Aug 02 Sep02 Oct 02 Nov 02 Dec 02 Jan03 Feb03

Productivity (P)

Actual 6915 6546 4989 5806 5645 4879 5056 4746 5308 5158

Desired 50 50 50 50 50 50 50 50 50 50

Actual 300 250 150 250 250 200 150 150 175 225 450

Desired 200 200 200 200 200 200 200 200 200 200 200

Quality (Q)

Actual 76

Desired(Tar et)

80

Actual 12th 10th 12th 12th 10th 10th 10th 10th 9th 8th

Desired 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th

Actual 9th 7th 7th 8th 8th 7th 7th 7th 7th 6th

Desired 8th 7th 6th 6th 6th 6th 6th 6th 6th 6th 6th

Actual 5th 5th 5th 5th 5th 5th 5th 5th 5th 4th 5th

Desired 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th

Actual 0 1 0 1 1 1 0 1 1 1 2

Desired 0 0 0 0 0 0 0 0 0 0 0

BEFORE AFTER 5S

RESULT MONITORActual

DeasiredApr02

AFTER 5S

PeopleEngineDay

HRFE Score (Yearly

measure) (Measured one in a year)

Delivery (D)

Monthly Report Submission

Safety Incidents (S)

No of Accidents Month

CPS Report

Monthly headcount data

No of people involved in

community Welfare

- Kaizen Projects in Offices

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HR

bull Improve employee data adequacy

bull Transfer of old PF accountbull Consolidation of banks for salary payment

bull Safety on road Safety goggles

bull Safety gates on shop floors

bull Pokayokes on accidents ( Radial drills Signs on walkways )

bull Prevention of epidemic diseases

bull Canteen Improvement ndash Kanban for material

- Energy saving

- Improve ventilation and lighting

- Roof cooling by purified drainage

water

- Kaizen Projects in Offices

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httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 2893

HR

bull Improvement in Health awareness ( check up Lectures

De addiction campsbull Bench marking visits to other factories

bull Recognition policy

bull Participation in intra company competition

bull Safety poster competition

bull ldquoOrdquo tag campaign for safety

bull ATM counter bank facility at gate

bull Prize distribution by Union leaders

bull Letter to family for good work

bull Proper lighting and ventilation at workplace

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bull Poka-yoke (pronounced POH-kah YOH-kayldquo ) bull Japanese words poka (inadvertent mistake) and yoke

(prevent) was invented by Shigeo Shingo in the 1960s

bull The essential idea of poka-yoke is to design your process so

that mistakes are impossible or at least easily detected and

corrected

About Shigeo Shingohelliphelliphellip

bull A leading proponent of statistical process control

bull Became frustrated with the statistical approach

bull Statistical sampling implies that some products to gountested with the result that some rate of defects would

always reach the customer

About POKA YOKEhelliphelliphelliphellip

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bull Shingo was communicated of a problem inldquoYamada Electric plantrdquo in 1961

bull A small switch with two push-buttons supported by two

springs occasionally the worker assembling the switch would

forget to insert a spring under each push-button

bull Sometimes the error would not be discovered until the unitreached a customer

bull Factory would have to dispatch an engineer to the customer

site to disassemble the switch insert the missing spring and

re-assemble the switch

bull This problem of the missing spring was both costly andembarrassing

bull Despite everyones best intentions the missing spring problem

would eventually re-appear

Birth of POKA YOKE helliphelliphellip

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Pokayoke ActionError Has

Occurred

Detection

Is Made

Defect

Is

Signaled Control

Feedback

GivenProcess

Is

Stopped

POKA YOKE Action

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bull A system for organising work that prevents the error

bull Excludes any risk of error even by the beginner

bull Allows everyone to operate without mistake

bull Prevents error that are about to occur

bull Inspection time will be minimised

What is ldquoMistake Proofing ldquo Why should we do it

842019 Presentation on TPS -JIT Kanban

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Mistake -Proof Approach

List of Problems ndash Select

Form a Team

Brain-writing at Gemba

Why-Why Analysis leads to root cause

Kaizens on root cause

Establish Activities to maintain standard

Work Towards Low Cost Automation

Plan

Do

Check

Act

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What - A tool that helps to eliminate inadvertent human errors

- Helps to build quality in product at sourceWhere - Is helpful in highly repetitive situations High Productivity areas

may lead to mistakes sometimes

(Unintentional errors - Forgetting Ignoring Inattentiveness )

eg - Complex processes Repetitive assembly mistakes

When - Sourced from Safety issues Driven by known quality problems

Customer complaints RFT P Tags BIS issues FMEA

Why - Builds quality in the product waste elimination

How - Pokayoke is often LOW COST or NO COST solutions

POKA YOKE helps in case of unintentional mistakes and not mischiefs

Pokayoke - Fail safe in 5 W 1 H

Kaizen

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3593

Welcome

Learning Session on

Model Machine

Objectives

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3693

j

To Learn

bull Concept of Model Machine - P - PC Balance

bull Why Model Machine

bull 8 Major losses

bull OEE Calculations

bull How to Develop

bull Documentation

bull Examples

Wh M d l M hi

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3793

Why Model MachineProfit = Sales ndash Cost

Profit = Sales ndash Mfg Cost

To reduce manufacturing cost needs optimumutilization of all assets ie resources

Measurement of effective utilization of all

resources is Overall Equipment Efficiency( OEE)

(09 09 09 = 73)

Why Model Machine

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3893

Profit = Total sales ndash Total cost

Why Model Machine

Profit = Selling Prices - Input Mfg cost up

( competition ) ( Increasing cost of input resources )

To maintain improve profit hellip Solution is ldquo Reduce Mfg costrdquo

Improve Asset Utilization

Improve Overall Equipment ldquoEfficiencyrdquo (OEE)

OEE = Availability x Performance x Quality

Our goal should be to improve OEE gt 85

world class Benchmark = 95

Why Model Machine

842019 Presentation on TPS -JIT Kanban

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Why Model Machine

If

OEE = Mfg Cost

Mfg cost = profit

eg Consider a MC of cost Rs 5 cr

Utilization in Japan china ndash OEE 90Utilization in India ndash OEE 45 (45 7080)So product cost in India will be 2 times than the cost in

china

Key is improve to OEEAchievement on 8 Model Machines - OEE improved

from 45 to 75 85

P - PC Balance

842019 Presentation on TPS -JIT Kanban

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P PC Balance

Production Vs Production Capability

Engine+Parts Equipment + MC + Test Bed

Model Machine

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Factory Within Factory is BU

BU Within BU is MODEL MC

WHY Model MC

To deliver -Cost Effective Product to ldquoInternalrdquo amp Externalrdquo Customer

Zero - Breakdown

By Achieving - Zero - Accident

Zero - Defect

To Success is ldquoImprove OEErdquo (Overall Equipment Effectiveness)

5 - M‟S OF PRODUCTION

842019 Presentation on TPS -JIT Kanban

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bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

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NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

842019 Presentation on TPS -JIT Kanban

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Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

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httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4593

Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

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What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

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Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

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TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

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INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

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TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

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What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

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TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

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TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

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Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

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US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

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g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

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TPSLean Principles

Click to proceed

TPSLean Principles

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TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

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Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

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Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

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Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

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Principle 2 Takt time

Takt Time

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bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

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Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

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Principle 3

Non-value added activities

What are Non-value added activities

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bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

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1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

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bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

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bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

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Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

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bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

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bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

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bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

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bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

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Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

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bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

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bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

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ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

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Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

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Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

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bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

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bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

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bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

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Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

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PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

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bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

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bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

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Its the constant and determinedeffort that breaks down all resistance

sweeps away all obstacles- Claude M Bristol

Dedicated Resources

+ Concentrated Efforts

= Success of any Activity - Steve Chapman

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Continuous Improvement is the need for survival

in Global competitive environment

- Safety

- Quality

- Productivity

Develop Culture - Everybody can participate in Improvement

activity

Cost Saving - Ultimate benefit to Customer ndash

8 reduction year from suppliers of Toyota

A Total Quality culture for survival ---

bdquoQuality‟ is state of mind

- Why Kaizen

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Waste Elimination is the FOCUS

Anything other than the minimum amount of equipmentmaterial parts and working time absolutely essential to

production

Wastes in a factory Losses in Equipment

1 Over production 1 Breakdown2 Inventory 2 Set up amp adjustment

3 Product defects 3 Reduced speed

4 Rework 4 Defects in process

5 Transportation 5 Tool change

6 Waiting time 6 Start up

7 Search time 7Minor Stoppages

8 Non value activities

- Why Kaizen

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- How to Practice

Kaizen starts from Top Management

bullUnderstand the ldquo Kaizenrdquo Concept

bull Involve everybody in implementation

bull Maintain the improvements

bull Support the ldquoTeamrdquo Concept for developing

the ldquoKaizen Culturerdquo

bull Recognize Appreciate ldquoothersrdquo also bull Be ldquoAdvocaterdquo for Kaizen

bull ldquoPracticerdquo and ldquoTeachrdquo - ie ldquoPreachrdquo Kaizen

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10

Ground RulesKaizen Believes in Team Work

bull Zero investment - Optimize current equipment and

resources Do not plan on spending big moneybull Discard conventional fixed ideas for production

bull Think of how to do it not why it cannot be done

bull Correct mistakes at once for Customer delights

bull Do not make excuses question current practicesbull Do not wait for perfection do it right away

bull Wisdom is brought about when faced with hardship

bull Eliminate or reduce when we can see and feel the bdquowaste‟

bull Ask bdquoWhyrdquo five times and seek root causes

bull Seek the wisdom of ten rather than the knowledge of one

bull Kaizen never stops

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11

KAIZEN

Continuous progress through People Involvement

KAI ndash Change ZEN ndash For Better

KAIZEN ndash Change For Better

ldquoContinual Improvementrdquo

UnsafeAction

Near Misses

Fatal

Accident1

30

300 Problem in bdquoseed‟

stage(Signals

ignored)

Problem in bdquosaplingrsquo stage

Problem in bdquotree‟ stage

(Disasters at workplace)

Problems at the WorkPlace

5 bdquoS‟ F d ti

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Kaizen Museum

1 Seiri - Sorting

2 Seiton - Systematic Arrangement

3 Seiso - Spic and Span TPM

(Cleaning with inspection)

4 Seiketsu- Standardized workplace5 Shitsuke- Self Discipline

- 5 bdquoS‟ as Foundation

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5 S linked with productivity

Step 1 Awareness revolution

( prerequisite for factory improvement )

Step 2 The 5 S‟s

( foundation for factory improvement )

Step 3 Flow manufacturing

Step 4 Leveling

Step 5 standard operations

Just - in - time

Multi

process

handling

Changeover

Human

automation

Kanban

Quality

assurance

Maintenance

amp Safety

M a n p o w e r o p t i m i z a t i o n V

i s u al M an

a g em en t

5 S - Objectives

G b K i 3 bdquoG‟ I t

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India Limited

Gemba - Work place

eg mc amp surroundings areatable amp surroundings

Assembly Station test cell etc

bull Gembutsu - Problem piece

eg All objectives related to improvement in Gemba

bull Genjitsu - Real time

eg Observe the things

while happening or at the earliest

after happening for getting the facts real information

ldquoGemba Kaizenrdquo means - Improvement at yourwork place Team is important in Gemba Kaizen Look at the work place to find out avenues

for bdquoKaizen‟ through 3 bdquoD‟ approach

- Gemba Kaizen -3 bdquoG‟s Importance

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India Limited

How to start - For initial work Use bdquo3D‟ approach

ndash Dirty - oil coolant air leakages

- chips and burr on floor- Accumulated dust etc

ndash Dangerous - Unsafe working conditions- Movements

ndash Difficult - Difficult to move- lift assembly

- not ergonomical situations

Results in employee satisfaction amp improved morale

Makes job easier simpler safer and faster

Increases efficiency Happier Customer

Overall improvement of organization

- To Start with

I i amp K i

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India Limited

Innovation amp Kaizen

1

30

300

Kaizen is a small improvement carried out by the person in his own workplace

with nil or negligible investment

Kaizen Tools

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Kaizen Tools

1bdquoO‟ ndash

Opportunity

Tag

-Small Improvement - keeping in mind 1-30-300 triangle Avoid major stoppage

by proactive methods

- Structured process for Involvement Registration and tracking of every small

improvement

2 Gemba Kaizen - Focused work station improvement for elimination of waste - Improvementsowned by associates

3 5 S Activities- Seiri Seiton Seiso Seiketsu Shitsuke Disciplined approach for lean

management - Foundation for JIT Develop culture of discipline

4 7 Step Project

-Quality improvement projects taken from PPM chart Customer complaint

-Team work for resolving through 7 step structured process ( 5W1H CEdac

chips 5 Why root cause )

5Kobetsu

Kaizen

-Focused improvement under taken for quality waste elimination ( Kit

improvement )

6Material Feed

System

- Inventory control through 5 S 2 Bin System Movement reduction Linkage

upto supplier order )

7Layout

Modification

-Global layout with assembly at centre amp local layout in form of feeding system

-U shape layouts for synchronization of flow and inventory control Improve

material handling

8 One Piece Flow- Step by step reduction in inventory with final aim of JIT ( Zero - Breakdown

Accident Defect)

9 Model Machine

-Activities include -1S 2S Transparency MISER to improve availability

-OEE improvement through EYE chart 3S 3M chart 5S Before and After

monitoring each week

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10 Eye Chart-7 Step problem Pokayoke etc are sourced from these OEE charts

-Common chart for all BUs to note down quality defect

11 SMED

-Reduction in set up time by study of set up change activities video film

-Separating internal and external activities Modifications in fixtures auto

clamping etc

12 MISER- M-minimize I- improvise S- simplify E- eliminate R- reduce --- Continuous

improvement

13 POKAYOKE

- Failsafing for operator‟s un-intentional mistake and total quality

improvement

- Cost reduction by attacking poor quality kit shortages handling

improvement

14IFC ( Initial

Flow Control)

- Making a list of improvements by reviewing quality problems and customer

complaint

- These points will be used for ordering new machines or making

improvements in new product

15 KANBAN- Consumption based material procurement system Ensures availability of

material with minimum inventory

16bdquoO‟ Tag

Campaign

- To increase awareness for Safety PokaYoke Dirty Difficult Danger and

Deterioration

17 Office Kaizen- Apply kaizen tools for increasing effectiveness and reduce delays ( quick

response )

18 Training-Training for acquiring new skills at Gemba Improves employees on

continuous basis

Th f f f h l f t t ib t d b

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19 PQCD MoP

- These are measures of performance for whole factory contributed by

individual business units

- Review and correction is needed every month in 5S Before After chart

20JOHARI

WINDOW

-This technique is used to identify root causes in human elements while

solving problems using accumulated knowledge skills developed in a

individual This technique is based on communication in two entities in open

environment amp positive attitude towards problem resolution

21

BMT (

Behavioral

Modulation

Technique)

To impart skills leading to increase of productivity of employees and

motivate them

22 Recognition

Recognition is most important for any human being In kaizen activities we

take care of appreciating every improvement either by individual or by team

The theme is ldquoMaking everybody a herordquo There are 44 ways of appreciatingemployees without actual monitory gains or amount

23 Turbo Kaizen

- Idea generation is done through Turbo Kaizen amp implemented using Kaizen

tools

-Kaizen activities help faster implementation of cost saving ideas

24 Ergonomics

Ergonomics was coined from the Greek words ergon (meaning work) and

nomos (meaning rules) ldquo Fit the task to the person not the person to the

taskldquo

A good way to understand what ergonomics means is to think about the term

user-friendly

25 Karakuri

Machine layout is modified in such a manner that flow of material from one

machine to other machine is maintained without energy consumption by

taking advantage gravity

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Welcome

to Presentation

onOFFICE KAIZEN

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- Why Office Kaizen What are its‟ benefits

bull To improve productivity efficiency in the administrative functions andidentify and eliminate losses This includes analyzing processes andprocedures towards increased office automation

Benefits

bull Involvement of all people in support functions for focusing on betterplant performance

bull Reduction in administrative costs - Reduced inventory carrying cost

bull Better utilized work area - Reduce repetitive work

bull Motivate people in support areas - Multiskilling in support areas

bull Some evident results are- Reduced inventory levels in all parts of the supply chain

- Reduction in number of files

- Reduction of overhead costs (to include cost of non-productionnoncapital equipment)

- Productivity of people in support functions

- Breakdown of office equipment - Reduced manpower- Customer complaints due to logistics

- Expenses due to emergency dispatchespurchases

- Clean and pleasant work environment

d fi i ffi i16

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- How to define P Q C D S M in Office Kaizen

bull Each company will have to define for themselves looking at all losses which affect plantperformance

These are some examples

bull P ndash Production output lost due to want of material

ndash Manpower productivity

ndash Production output lost due to want of tools

bull Q ndash Mistakes in preparation of cheques bills invoices payroll

ndash Customer returnswarranty attributable to BOPs

ndash Rejectionrework in BOP‟sjob work

ndash Office area rework

bull C ndash Buying costunit produced

ndash Cost of logistics ndash inboundoutbound

ndash Cost of carrying inventory ndash Cost of communication

ndash Demurrage costs

bull D ndash Logistics losses(Delay in loadingunloading)

ndash Delay in delivery due to any of the support functions

ndash Delay in payments to suppliers

ndash Delay in information

bull S ndash Safety in material handlingstoreslogistics

ndash Safety of soft and hard databull M ndash Number of kaizens in office areas

H t t t ffi K i 16

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- How to start office Kaizen

Steps followed are

- Providing awareness about office Kaizen to all support departments

- Helping them to identify P Q C D S M in each function in relation to plantperformance

- Identify the scope for improvement in each function- Collect relevant data

- Help them to solve problems in their Circles Teams

- Make up an activity board where progress is monitored on both sides ndash results andactions along with Kaizens

How to identify losses in office Kaizen

In each functional area identify the losses separately and add them up to build up amaster plan for Office Kaizen For example

- office equipment breakdown

- communication channel breakdown telephone and fax lines

- time spent on retrieval of information

- non availability of correct on line stock status

- customer complaints due to logistics

- expenses on emergency dispatchespurchases- cost reduction on non-productionnon capital items

H t l t K b t K i t i f Offi K i 16

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- How to select Kobetsu Kaizen topics from Office Kaizen

Kobetsu Kaizen topics are selected aiming at --

- Inventory reduction- Lead time reduction of critical processes

- Motion amp space losses

- retrieval time reduction

- reducing or eliminating office work flow stagnation

- equalizing the work load

- analyzing for bdquono material‟ areas and improving them

- Improving the office efficiency

ndash By eliminating the time loss on retrieval of information

ndash By achieving zero breakdown of office equipment like telephoneand fax Lines Xerox machine etc

PPM Ch t IN OFFICE16

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- PPM Chart IN OFFICENov Dec Jan Feb Mar

96667 136667 110000 93333 1366

56 46 153 46

April May June July Aug

58333

90

Defects

Defects Expressed in 5W 1H

Fassion1 2 3 4 5 OF

S U N D A Y

8 9 10 11 12 OF

S U N D A Y

15 16 17 18 19 OF

S U N D A Y

22 23 24 25 26 OF

S U N D A Y

29 30

Total

Defect

s

PPM

1 BILL OF MATERIAL CHANGE 0 0 0 0 0

2 SUPPLIER FAULT 0 1 0 1 0 1 1 0 1 2 1 0 2 0 0 0 6 16 533

3 BUYER FAULT 0 0 0 0 0 0

4ENGINE PREPONED ADDITIONAL ENGINE 0 0 0 0 0 0 0

5 RRP-REQT RPORT PROBLEM 0 0 0 0 0 0 0

6 STOCK DESCRIPANCY 0 0 0 0 0 0 0

7 QUALITY SOURCING ISSUES 0 0 0 0 0 0 0 1 05 1666

8 DELAY GRR POSTING 0 0 0 0 0

9 TRANSPORTATION PROBLEM 0 0 0 1 0 1

Total Defects 0 0 0 0 0 0 0 1 0 1 1 1 0 0 1 0 1 2 1 0 0 0 3 0 0 0 0 0 0 6 0 175 583

0 0 0 0 0 0 0 3 3 3 3

0 3 3 3 3

3 3 3 3

3 3 3 3

0 0 3 3 3 3

0 3 3 3 3

6 6 6 7

3 3 3 3

0 0 0 8 3 3 3

0 0 0 0 0 0 2 0 0 0 0

0

Number of active parts for a month=300 NOS

Defects Per Million

Weekly PPM 0 5 5 6

2 2 2 2

2 2 2 2

0

What Short of material while Pulli Why Various reasons as above

Where In the Store Who Kanban process owener(store person)

When While Kanban Pulling How During routine work

MONTHLY

Sr

no

MONTHLY PP

Month

PPM

Kaizen

DATE

Month

PPM

Kaizen

Daily PPM Value for Feb - 2001

0

4000

8000

12000

16000

20000

24000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30Date

P P M

V a l u e

Weekly PPM Value

0

500

1000

1500

2000

2500

1 2 3 4 5

Week P P M

M P T bl IN OFFICE16

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- MoP Table IN OFFICEHuman Resources MOP summary

May02 Jun 02 Jul02 Aug 02 Sep02 Oct 02 Nov 02 Dec 02 Jan03 Feb03

Productivity (P)

Actual 6915 6546 4989 5806 5645 4879 5056 4746 5308 5158

Desired 50 50 50 50 50 50 50 50 50 50

Actual 300 250 150 250 250 200 150 150 175 225 450

Desired 200 200 200 200 200 200 200 200 200 200 200

Quality (Q)

Actual 76

Desired(Tar et)

80

Actual 12th 10th 12th 12th 10th 10th 10th 10th 9th 8th

Desired 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th

Actual 9th 7th 7th 8th 8th 7th 7th 7th 7th 6th

Desired 8th 7th 6th 6th 6th 6th 6th 6th 6th 6th 6th

Actual 5th 5th 5th 5th 5th 5th 5th 5th 5th 4th 5th

Desired 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th

Actual 0 1 0 1 1 1 0 1 1 1 2

Desired 0 0 0 0 0 0 0 0 0 0 0

BEFORE AFTER 5S

RESULT MONITORActual

DeasiredApr02

AFTER 5S

PeopleEngineDay

HRFE Score (Yearly

measure) (Measured one in a year)

Delivery (D)

Monthly Report Submission

Safety Incidents (S)

No of Accidents Month

CPS Report

Monthly headcount data

No of people involved in

community Welfare

- Kaizen Projects in Offices

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HR

bull Improve employee data adequacy

bull Transfer of old PF accountbull Consolidation of banks for salary payment

bull Safety on road Safety goggles

bull Safety gates on shop floors

bull Pokayokes on accidents ( Radial drills Signs on walkways )

bull Prevention of epidemic diseases

bull Canteen Improvement ndash Kanban for material

- Energy saving

- Improve ventilation and lighting

- Roof cooling by purified drainage

water

- Kaizen Projects in Offices

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HR

bull Improvement in Health awareness ( check up Lectures

De addiction campsbull Bench marking visits to other factories

bull Recognition policy

bull Participation in intra company competition

bull Safety poster competition

bull ldquoOrdquo tag campaign for safety

bull ATM counter bank facility at gate

bull Prize distribution by Union leaders

bull Letter to family for good work

bull Proper lighting and ventilation at workplace

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bull Poka-yoke (pronounced POH-kah YOH-kayldquo ) bull Japanese words poka (inadvertent mistake) and yoke

(prevent) was invented by Shigeo Shingo in the 1960s

bull The essential idea of poka-yoke is to design your process so

that mistakes are impossible or at least easily detected and

corrected

About Shigeo Shingohelliphelliphellip

bull A leading proponent of statistical process control

bull Became frustrated with the statistical approach

bull Statistical sampling implies that some products to gountested with the result that some rate of defects would

always reach the customer

About POKA YOKEhelliphelliphelliphellip

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bull Shingo was communicated of a problem inldquoYamada Electric plantrdquo in 1961

bull A small switch with two push-buttons supported by two

springs occasionally the worker assembling the switch would

forget to insert a spring under each push-button

bull Sometimes the error would not be discovered until the unitreached a customer

bull Factory would have to dispatch an engineer to the customer

site to disassemble the switch insert the missing spring and

re-assemble the switch

bull This problem of the missing spring was both costly andembarrassing

bull Despite everyones best intentions the missing spring problem

would eventually re-appear

Birth of POKA YOKE helliphelliphellip

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Pokayoke ActionError Has

Occurred

Detection

Is Made

Defect

Is

Signaled Control

Feedback

GivenProcess

Is

Stopped

POKA YOKE Action

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bull A system for organising work that prevents the error

bull Excludes any risk of error even by the beginner

bull Allows everyone to operate without mistake

bull Prevents error that are about to occur

bull Inspection time will be minimised

What is ldquoMistake Proofing ldquo Why should we do it

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Mistake -Proof Approach

List of Problems ndash Select

Form a Team

Brain-writing at Gemba

Why-Why Analysis leads to root cause

Kaizens on root cause

Establish Activities to maintain standard

Work Towards Low Cost Automation

Plan

Do

Check

Act

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What - A tool that helps to eliminate inadvertent human errors

- Helps to build quality in product at sourceWhere - Is helpful in highly repetitive situations High Productivity areas

may lead to mistakes sometimes

(Unintentional errors - Forgetting Ignoring Inattentiveness )

eg - Complex processes Repetitive assembly mistakes

When - Sourced from Safety issues Driven by known quality problems

Customer complaints RFT P Tags BIS issues FMEA

Why - Builds quality in the product waste elimination

How - Pokayoke is often LOW COST or NO COST solutions

POKA YOKE helps in case of unintentional mistakes and not mischiefs

Pokayoke - Fail safe in 5 W 1 H

Kaizen

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Welcome

Learning Session on

Model Machine

Objectives

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j

To Learn

bull Concept of Model Machine - P - PC Balance

bull Why Model Machine

bull 8 Major losses

bull OEE Calculations

bull How to Develop

bull Documentation

bull Examples

Wh M d l M hi

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Why Model MachineProfit = Sales ndash Cost

Profit = Sales ndash Mfg Cost

To reduce manufacturing cost needs optimumutilization of all assets ie resources

Measurement of effective utilization of all

resources is Overall Equipment Efficiency( OEE)

(09 09 09 = 73)

Why Model Machine

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Profit = Total sales ndash Total cost

Why Model Machine

Profit = Selling Prices - Input Mfg cost up

( competition ) ( Increasing cost of input resources )

To maintain improve profit hellip Solution is ldquo Reduce Mfg costrdquo

Improve Asset Utilization

Improve Overall Equipment ldquoEfficiencyrdquo (OEE)

OEE = Availability x Performance x Quality

Our goal should be to improve OEE gt 85

world class Benchmark = 95

Why Model Machine

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Why Model Machine

If

OEE = Mfg Cost

Mfg cost = profit

eg Consider a MC of cost Rs 5 cr

Utilization in Japan china ndash OEE 90Utilization in India ndash OEE 45 (45 7080)So product cost in India will be 2 times than the cost in

china

Key is improve to OEEAchievement on 8 Model Machines - OEE improved

from 45 to 75 85

P - PC Balance

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P PC Balance

Production Vs Production Capability

Engine+Parts Equipment + MC + Test Bed

Model Machine

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Factory Within Factory is BU

BU Within BU is MODEL MC

WHY Model MC

To deliver -Cost Effective Product to ldquoInternalrdquo amp Externalrdquo Customer

Zero - Breakdown

By Achieving - Zero - Accident

Zero - Defect

To Success is ldquoImprove OEErdquo (Overall Equipment Effectiveness)

5 - M‟S OF PRODUCTION

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bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

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NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

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Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

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Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

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What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

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Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

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TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

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INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

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TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

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What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

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TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

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TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

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Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

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US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

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g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

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TPSLean Principles

Click to proceed

TPSLean Principles

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TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

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Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

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Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

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Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

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Principle 2 Takt time

Takt Time

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bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

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Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

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Principle 3

Non-value added activities

What are Non-value added activities

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bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

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1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

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bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

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bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

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Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

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bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

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bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

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bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

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bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

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Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

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bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

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bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

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ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

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bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

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Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

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Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

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bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

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bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

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bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

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Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

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PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

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bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

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bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

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842019 Presentation on TPS -JIT Kanban

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Continuous Improvement is the need for survival

in Global competitive environment

- Safety

- Quality

- Productivity

Develop Culture - Everybody can participate in Improvement

activity

Cost Saving - Ultimate benefit to Customer ndash

8 reduction year from suppliers of Toyota

A Total Quality culture for survival ---

bdquoQuality‟ is state of mind

- Why Kaizen

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Waste Elimination is the FOCUS

Anything other than the minimum amount of equipmentmaterial parts and working time absolutely essential to

production

Wastes in a factory Losses in Equipment

1 Over production 1 Breakdown2 Inventory 2 Set up amp adjustment

3 Product defects 3 Reduced speed

4 Rework 4 Defects in process

5 Transportation 5 Tool change

6 Waiting time 6 Start up

7 Search time 7Minor Stoppages

8 Non value activities

- Why Kaizen

842019 Presentation on TPS -JIT Kanban

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- How to Practice

Kaizen starts from Top Management

bullUnderstand the ldquo Kaizenrdquo Concept

bull Involve everybody in implementation

bull Maintain the improvements

bull Support the ldquoTeamrdquo Concept for developing

the ldquoKaizen Culturerdquo

bull Recognize Appreciate ldquoothersrdquo also bull Be ldquoAdvocaterdquo for Kaizen

bull ldquoPracticerdquo and ldquoTeachrdquo - ie ldquoPreachrdquo Kaizen

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10

Ground RulesKaizen Believes in Team Work

bull Zero investment - Optimize current equipment and

resources Do not plan on spending big moneybull Discard conventional fixed ideas for production

bull Think of how to do it not why it cannot be done

bull Correct mistakes at once for Customer delights

bull Do not make excuses question current practicesbull Do not wait for perfection do it right away

bull Wisdom is brought about when faced with hardship

bull Eliminate or reduce when we can see and feel the bdquowaste‟

bull Ask bdquoWhyrdquo five times and seek root causes

bull Seek the wisdom of ten rather than the knowledge of one

bull Kaizen never stops

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11

KAIZEN

Continuous progress through People Involvement

KAI ndash Change ZEN ndash For Better

KAIZEN ndash Change For Better

ldquoContinual Improvementrdquo

UnsafeAction

Near Misses

Fatal

Accident1

30

300 Problem in bdquoseed‟

stage(Signals

ignored)

Problem in bdquosaplingrsquo stage

Problem in bdquotree‟ stage

(Disasters at workplace)

Problems at the WorkPlace

5 bdquoS‟ F d ti

842019 Presentation on TPS -JIT Kanban

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Kaizen Museum

1 Seiri - Sorting

2 Seiton - Systematic Arrangement

3 Seiso - Spic and Span TPM

(Cleaning with inspection)

4 Seiketsu- Standardized workplace5 Shitsuke- Self Discipline

- 5 bdquoS‟ as Foundation

842019 Presentation on TPS -JIT Kanban

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5 S linked with productivity

Step 1 Awareness revolution

( prerequisite for factory improvement )

Step 2 The 5 S‟s

( foundation for factory improvement )

Step 3 Flow manufacturing

Step 4 Leveling

Step 5 standard operations

Just - in - time

Multi

process

handling

Changeover

Human

automation

Kanban

Quality

assurance

Maintenance

amp Safety

M a n p o w e r o p t i m i z a t i o n V

i s u al M an

a g em en t

5 S - Objectives

G b K i 3 bdquoG‟ I t

842019 Presentation on TPS -JIT Kanban

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India Limited

Gemba - Work place

eg mc amp surroundings areatable amp surroundings

Assembly Station test cell etc

bull Gembutsu - Problem piece

eg All objectives related to improvement in Gemba

bull Genjitsu - Real time

eg Observe the things

while happening or at the earliest

after happening for getting the facts real information

ldquoGemba Kaizenrdquo means - Improvement at yourwork place Team is important in Gemba Kaizen Look at the work place to find out avenues

for bdquoKaizen‟ through 3 bdquoD‟ approach

- Gemba Kaizen -3 bdquoG‟s Importance

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India Limited

How to start - For initial work Use bdquo3D‟ approach

ndash Dirty - oil coolant air leakages

- chips and burr on floor- Accumulated dust etc

ndash Dangerous - Unsafe working conditions- Movements

ndash Difficult - Difficult to move- lift assembly

- not ergonomical situations

Results in employee satisfaction amp improved morale

Makes job easier simpler safer and faster

Increases efficiency Happier Customer

Overall improvement of organization

- To Start with

I i amp K i

842019 Presentation on TPS -JIT Kanban

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India Limited

Innovation amp Kaizen

1

30

300

Kaizen is a small improvement carried out by the person in his own workplace

with nil or negligible investment

Kaizen Tools

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Kaizen Tools

1bdquoO‟ ndash

Opportunity

Tag

-Small Improvement - keeping in mind 1-30-300 triangle Avoid major stoppage

by proactive methods

- Structured process for Involvement Registration and tracking of every small

improvement

2 Gemba Kaizen - Focused work station improvement for elimination of waste - Improvementsowned by associates

3 5 S Activities- Seiri Seiton Seiso Seiketsu Shitsuke Disciplined approach for lean

management - Foundation for JIT Develop culture of discipline

4 7 Step Project

-Quality improvement projects taken from PPM chart Customer complaint

-Team work for resolving through 7 step structured process ( 5W1H CEdac

chips 5 Why root cause )

5Kobetsu

Kaizen

-Focused improvement under taken for quality waste elimination ( Kit

improvement )

6Material Feed

System

- Inventory control through 5 S 2 Bin System Movement reduction Linkage

upto supplier order )

7Layout

Modification

-Global layout with assembly at centre amp local layout in form of feeding system

-U shape layouts for synchronization of flow and inventory control Improve

material handling

8 One Piece Flow- Step by step reduction in inventory with final aim of JIT ( Zero - Breakdown

Accident Defect)

9 Model Machine

-Activities include -1S 2S Transparency MISER to improve availability

-OEE improvement through EYE chart 3S 3M chart 5S Before and After

monitoring each week

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10 Eye Chart-7 Step problem Pokayoke etc are sourced from these OEE charts

-Common chart for all BUs to note down quality defect

11 SMED

-Reduction in set up time by study of set up change activities video film

-Separating internal and external activities Modifications in fixtures auto

clamping etc

12 MISER- M-minimize I- improvise S- simplify E- eliminate R- reduce --- Continuous

improvement

13 POKAYOKE

- Failsafing for operator‟s un-intentional mistake and total quality

improvement

- Cost reduction by attacking poor quality kit shortages handling

improvement

14IFC ( Initial

Flow Control)

- Making a list of improvements by reviewing quality problems and customer

complaint

- These points will be used for ordering new machines or making

improvements in new product

15 KANBAN- Consumption based material procurement system Ensures availability of

material with minimum inventory

16bdquoO‟ Tag

Campaign

- To increase awareness for Safety PokaYoke Dirty Difficult Danger and

Deterioration

17 Office Kaizen- Apply kaizen tools for increasing effectiveness and reduce delays ( quick

response )

18 Training-Training for acquiring new skills at Gemba Improves employees on

continuous basis

Th f f f h l f t t ib t d b

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19 PQCD MoP

- These are measures of performance for whole factory contributed by

individual business units

- Review and correction is needed every month in 5S Before After chart

20JOHARI

WINDOW

-This technique is used to identify root causes in human elements while

solving problems using accumulated knowledge skills developed in a

individual This technique is based on communication in two entities in open

environment amp positive attitude towards problem resolution

21

BMT (

Behavioral

Modulation

Technique)

To impart skills leading to increase of productivity of employees and

motivate them

22 Recognition

Recognition is most important for any human being In kaizen activities we

take care of appreciating every improvement either by individual or by team

The theme is ldquoMaking everybody a herordquo There are 44 ways of appreciatingemployees without actual monitory gains or amount

23 Turbo Kaizen

- Idea generation is done through Turbo Kaizen amp implemented using Kaizen

tools

-Kaizen activities help faster implementation of cost saving ideas

24 Ergonomics

Ergonomics was coined from the Greek words ergon (meaning work) and

nomos (meaning rules) ldquo Fit the task to the person not the person to the

taskldquo

A good way to understand what ergonomics means is to think about the term

user-friendly

25 Karakuri

Machine layout is modified in such a manner that flow of material from one

machine to other machine is maintained without energy consumption by

taking advantage gravity

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Welcome

to Presentation

onOFFICE KAIZEN

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- Why Office Kaizen What are its‟ benefits

bull To improve productivity efficiency in the administrative functions andidentify and eliminate losses This includes analyzing processes andprocedures towards increased office automation

Benefits

bull Involvement of all people in support functions for focusing on betterplant performance

bull Reduction in administrative costs - Reduced inventory carrying cost

bull Better utilized work area - Reduce repetitive work

bull Motivate people in support areas - Multiskilling in support areas

bull Some evident results are- Reduced inventory levels in all parts of the supply chain

- Reduction in number of files

- Reduction of overhead costs (to include cost of non-productionnoncapital equipment)

- Productivity of people in support functions

- Breakdown of office equipment - Reduced manpower- Customer complaints due to logistics

- Expenses due to emergency dispatchespurchases

- Clean and pleasant work environment

d fi i ffi i16

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- How to define P Q C D S M in Office Kaizen

bull Each company will have to define for themselves looking at all losses which affect plantperformance

These are some examples

bull P ndash Production output lost due to want of material

ndash Manpower productivity

ndash Production output lost due to want of tools

bull Q ndash Mistakes in preparation of cheques bills invoices payroll

ndash Customer returnswarranty attributable to BOPs

ndash Rejectionrework in BOP‟sjob work

ndash Office area rework

bull C ndash Buying costunit produced

ndash Cost of logistics ndash inboundoutbound

ndash Cost of carrying inventory ndash Cost of communication

ndash Demurrage costs

bull D ndash Logistics losses(Delay in loadingunloading)

ndash Delay in delivery due to any of the support functions

ndash Delay in payments to suppliers

ndash Delay in information

bull S ndash Safety in material handlingstoreslogistics

ndash Safety of soft and hard databull M ndash Number of kaizens in office areas

H t t t ffi K i 16

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- How to start office Kaizen

Steps followed are

- Providing awareness about office Kaizen to all support departments

- Helping them to identify P Q C D S M in each function in relation to plantperformance

- Identify the scope for improvement in each function- Collect relevant data

- Help them to solve problems in their Circles Teams

- Make up an activity board where progress is monitored on both sides ndash results andactions along with Kaizens

How to identify losses in office Kaizen

In each functional area identify the losses separately and add them up to build up amaster plan for Office Kaizen For example

- office equipment breakdown

- communication channel breakdown telephone and fax lines

- time spent on retrieval of information

- non availability of correct on line stock status

- customer complaints due to logistics

- expenses on emergency dispatchespurchases- cost reduction on non-productionnon capital items

H t l t K b t K i t i f Offi K i 16

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- How to select Kobetsu Kaizen topics from Office Kaizen

Kobetsu Kaizen topics are selected aiming at --

- Inventory reduction- Lead time reduction of critical processes

- Motion amp space losses

- retrieval time reduction

- reducing or eliminating office work flow stagnation

- equalizing the work load

- analyzing for bdquono material‟ areas and improving them

- Improving the office efficiency

ndash By eliminating the time loss on retrieval of information

ndash By achieving zero breakdown of office equipment like telephoneand fax Lines Xerox machine etc

PPM Ch t IN OFFICE16

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- PPM Chart IN OFFICENov Dec Jan Feb Mar

96667 136667 110000 93333 1366

56 46 153 46

April May June July Aug

58333

90

Defects

Defects Expressed in 5W 1H

Fassion1 2 3 4 5 OF

S U N D A Y

8 9 10 11 12 OF

S U N D A Y

15 16 17 18 19 OF

S U N D A Y

22 23 24 25 26 OF

S U N D A Y

29 30

Total

Defect

s

PPM

1 BILL OF MATERIAL CHANGE 0 0 0 0 0

2 SUPPLIER FAULT 0 1 0 1 0 1 1 0 1 2 1 0 2 0 0 0 6 16 533

3 BUYER FAULT 0 0 0 0 0 0

4ENGINE PREPONED ADDITIONAL ENGINE 0 0 0 0 0 0 0

5 RRP-REQT RPORT PROBLEM 0 0 0 0 0 0 0

6 STOCK DESCRIPANCY 0 0 0 0 0 0 0

7 QUALITY SOURCING ISSUES 0 0 0 0 0 0 0 1 05 1666

8 DELAY GRR POSTING 0 0 0 0 0

9 TRANSPORTATION PROBLEM 0 0 0 1 0 1

Total Defects 0 0 0 0 0 0 0 1 0 1 1 1 0 0 1 0 1 2 1 0 0 0 3 0 0 0 0 0 0 6 0 175 583

0 0 0 0 0 0 0 3 3 3 3

0 3 3 3 3

3 3 3 3

3 3 3 3

0 0 3 3 3 3

0 3 3 3 3

6 6 6 7

3 3 3 3

0 0 0 8 3 3 3

0 0 0 0 0 0 2 0 0 0 0

0

Number of active parts for a month=300 NOS

Defects Per Million

Weekly PPM 0 5 5 6

2 2 2 2

2 2 2 2

0

What Short of material while Pulli Why Various reasons as above

Where In the Store Who Kanban process owener(store person)

When While Kanban Pulling How During routine work

MONTHLY

Sr

no

MONTHLY PP

Month

PPM

Kaizen

DATE

Month

PPM

Kaizen

Daily PPM Value for Feb - 2001

0

4000

8000

12000

16000

20000

24000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30Date

P P M

V a l u e

Weekly PPM Value

0

500

1000

1500

2000

2500

1 2 3 4 5

Week P P M

M P T bl IN OFFICE16

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- MoP Table IN OFFICEHuman Resources MOP summary

May02 Jun 02 Jul02 Aug 02 Sep02 Oct 02 Nov 02 Dec 02 Jan03 Feb03

Productivity (P)

Actual 6915 6546 4989 5806 5645 4879 5056 4746 5308 5158

Desired 50 50 50 50 50 50 50 50 50 50

Actual 300 250 150 250 250 200 150 150 175 225 450

Desired 200 200 200 200 200 200 200 200 200 200 200

Quality (Q)

Actual 76

Desired(Tar et)

80

Actual 12th 10th 12th 12th 10th 10th 10th 10th 9th 8th

Desired 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th

Actual 9th 7th 7th 8th 8th 7th 7th 7th 7th 6th

Desired 8th 7th 6th 6th 6th 6th 6th 6th 6th 6th 6th

Actual 5th 5th 5th 5th 5th 5th 5th 5th 5th 4th 5th

Desired 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th

Actual 0 1 0 1 1 1 0 1 1 1 2

Desired 0 0 0 0 0 0 0 0 0 0 0

BEFORE AFTER 5S

RESULT MONITORActual

DeasiredApr02

AFTER 5S

PeopleEngineDay

HRFE Score (Yearly

measure) (Measured one in a year)

Delivery (D)

Monthly Report Submission

Safety Incidents (S)

No of Accidents Month

CPS Report

Monthly headcount data

No of people involved in

community Welfare

- Kaizen Projects in Offices

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HR

bull Improve employee data adequacy

bull Transfer of old PF accountbull Consolidation of banks for salary payment

bull Safety on road Safety goggles

bull Safety gates on shop floors

bull Pokayokes on accidents ( Radial drills Signs on walkways )

bull Prevention of epidemic diseases

bull Canteen Improvement ndash Kanban for material

- Energy saving

- Improve ventilation and lighting

- Roof cooling by purified drainage

water

- Kaizen Projects in Offices

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HR

bull Improvement in Health awareness ( check up Lectures

De addiction campsbull Bench marking visits to other factories

bull Recognition policy

bull Participation in intra company competition

bull Safety poster competition

bull ldquoOrdquo tag campaign for safety

bull ATM counter bank facility at gate

bull Prize distribution by Union leaders

bull Letter to family for good work

bull Proper lighting and ventilation at workplace

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bull Poka-yoke (pronounced POH-kah YOH-kayldquo ) bull Japanese words poka (inadvertent mistake) and yoke

(prevent) was invented by Shigeo Shingo in the 1960s

bull The essential idea of poka-yoke is to design your process so

that mistakes are impossible or at least easily detected and

corrected

About Shigeo Shingohelliphelliphellip

bull A leading proponent of statistical process control

bull Became frustrated with the statistical approach

bull Statistical sampling implies that some products to gountested with the result that some rate of defects would

always reach the customer

About POKA YOKEhelliphelliphelliphellip

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bull Shingo was communicated of a problem inldquoYamada Electric plantrdquo in 1961

bull A small switch with two push-buttons supported by two

springs occasionally the worker assembling the switch would

forget to insert a spring under each push-button

bull Sometimes the error would not be discovered until the unitreached a customer

bull Factory would have to dispatch an engineer to the customer

site to disassemble the switch insert the missing spring and

re-assemble the switch

bull This problem of the missing spring was both costly andembarrassing

bull Despite everyones best intentions the missing spring problem

would eventually re-appear

Birth of POKA YOKE helliphelliphellip

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Pokayoke ActionError Has

Occurred

Detection

Is Made

Defect

Is

Signaled Control

Feedback

GivenProcess

Is

Stopped

POKA YOKE Action

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bull A system for organising work that prevents the error

bull Excludes any risk of error even by the beginner

bull Allows everyone to operate without mistake

bull Prevents error that are about to occur

bull Inspection time will be minimised

What is ldquoMistake Proofing ldquo Why should we do it

842019 Presentation on TPS -JIT Kanban

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Mistake -Proof Approach

List of Problems ndash Select

Form a Team

Brain-writing at Gemba

Why-Why Analysis leads to root cause

Kaizens on root cause

Establish Activities to maintain standard

Work Towards Low Cost Automation

Plan

Do

Check

Act

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What - A tool that helps to eliminate inadvertent human errors

- Helps to build quality in product at sourceWhere - Is helpful in highly repetitive situations High Productivity areas

may lead to mistakes sometimes

(Unintentional errors - Forgetting Ignoring Inattentiveness )

eg - Complex processes Repetitive assembly mistakes

When - Sourced from Safety issues Driven by known quality problems

Customer complaints RFT P Tags BIS issues FMEA

Why - Builds quality in the product waste elimination

How - Pokayoke is often LOW COST or NO COST solutions

POKA YOKE helps in case of unintentional mistakes and not mischiefs

Pokayoke - Fail safe in 5 W 1 H

Kaizen

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3593

Welcome

Learning Session on

Model Machine

Objectives

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3693

j

To Learn

bull Concept of Model Machine - P - PC Balance

bull Why Model Machine

bull 8 Major losses

bull OEE Calculations

bull How to Develop

bull Documentation

bull Examples

Wh M d l M hi

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3793

Why Model MachineProfit = Sales ndash Cost

Profit = Sales ndash Mfg Cost

To reduce manufacturing cost needs optimumutilization of all assets ie resources

Measurement of effective utilization of all

resources is Overall Equipment Efficiency( OEE)

(09 09 09 = 73)

Why Model Machine

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3893

Profit = Total sales ndash Total cost

Why Model Machine

Profit = Selling Prices - Input Mfg cost up

( competition ) ( Increasing cost of input resources )

To maintain improve profit hellip Solution is ldquo Reduce Mfg costrdquo

Improve Asset Utilization

Improve Overall Equipment ldquoEfficiencyrdquo (OEE)

OEE = Availability x Performance x Quality

Our goal should be to improve OEE gt 85

world class Benchmark = 95

Why Model Machine

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Why Model Machine

If

OEE = Mfg Cost

Mfg cost = profit

eg Consider a MC of cost Rs 5 cr

Utilization in Japan china ndash OEE 90Utilization in India ndash OEE 45 (45 7080)So product cost in India will be 2 times than the cost in

china

Key is improve to OEEAchievement on 8 Model Machines - OEE improved

from 45 to 75 85

P - PC Balance

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P PC Balance

Production Vs Production Capability

Engine+Parts Equipment + MC + Test Bed

Model Machine

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Factory Within Factory is BU

BU Within BU is MODEL MC

WHY Model MC

To deliver -Cost Effective Product to ldquoInternalrdquo amp Externalrdquo Customer

Zero - Breakdown

By Achieving - Zero - Accident

Zero - Defect

To Success is ldquoImprove OEErdquo (Overall Equipment Effectiveness)

5 - M‟S OF PRODUCTION

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bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

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NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

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Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

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Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

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What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

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Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4893

TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

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INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

842019 Presentation on TPS -JIT Kanban

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TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

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What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

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TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

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TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5493

Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

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US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

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g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

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TPSLean Principles

Click to proceed

TPSLean Principles

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TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

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Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

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Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

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Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

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Principle 2 Takt time

Takt Time

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bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

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Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

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Principle 3

Non-value added activities

What are Non-value added activities

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bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

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1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

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bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

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bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

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Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

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bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

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bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

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bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

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bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

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Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

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bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

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bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

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ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

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Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

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Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

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bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

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bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

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bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

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Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

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PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

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bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

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bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

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Waste Elimination is the FOCUS

Anything other than the minimum amount of equipmentmaterial parts and working time absolutely essential to

production

Wastes in a factory Losses in Equipment

1 Over production 1 Breakdown2 Inventory 2 Set up amp adjustment

3 Product defects 3 Reduced speed

4 Rework 4 Defects in process

5 Transportation 5 Tool change

6 Waiting time 6 Start up

7 Search time 7Minor Stoppages

8 Non value activities

- Why Kaizen

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- How to Practice

Kaizen starts from Top Management

bullUnderstand the ldquo Kaizenrdquo Concept

bull Involve everybody in implementation

bull Maintain the improvements

bull Support the ldquoTeamrdquo Concept for developing

the ldquoKaizen Culturerdquo

bull Recognize Appreciate ldquoothersrdquo also bull Be ldquoAdvocaterdquo for Kaizen

bull ldquoPracticerdquo and ldquoTeachrdquo - ie ldquoPreachrdquo Kaizen

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10

Ground RulesKaizen Believes in Team Work

bull Zero investment - Optimize current equipment and

resources Do not plan on spending big moneybull Discard conventional fixed ideas for production

bull Think of how to do it not why it cannot be done

bull Correct mistakes at once for Customer delights

bull Do not make excuses question current practicesbull Do not wait for perfection do it right away

bull Wisdom is brought about when faced with hardship

bull Eliminate or reduce when we can see and feel the bdquowaste‟

bull Ask bdquoWhyrdquo five times and seek root causes

bull Seek the wisdom of ten rather than the knowledge of one

bull Kaizen never stops

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11

KAIZEN

Continuous progress through People Involvement

KAI ndash Change ZEN ndash For Better

KAIZEN ndash Change For Better

ldquoContinual Improvementrdquo

UnsafeAction

Near Misses

Fatal

Accident1

30

300 Problem in bdquoseed‟

stage(Signals

ignored)

Problem in bdquosaplingrsquo stage

Problem in bdquotree‟ stage

(Disasters at workplace)

Problems at the WorkPlace

5 bdquoS‟ F d ti

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Kaizen Museum

1 Seiri - Sorting

2 Seiton - Systematic Arrangement

3 Seiso - Spic and Span TPM

(Cleaning with inspection)

4 Seiketsu- Standardized workplace5 Shitsuke- Self Discipline

- 5 bdquoS‟ as Foundation

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5 S linked with productivity

Step 1 Awareness revolution

( prerequisite for factory improvement )

Step 2 The 5 S‟s

( foundation for factory improvement )

Step 3 Flow manufacturing

Step 4 Leveling

Step 5 standard operations

Just - in - time

Multi

process

handling

Changeover

Human

automation

Kanban

Quality

assurance

Maintenance

amp Safety

M a n p o w e r o p t i m i z a t i o n V

i s u al M an

a g em en t

5 S - Objectives

G b K i 3 bdquoG‟ I t

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India Limited

Gemba - Work place

eg mc amp surroundings areatable amp surroundings

Assembly Station test cell etc

bull Gembutsu - Problem piece

eg All objectives related to improvement in Gemba

bull Genjitsu - Real time

eg Observe the things

while happening or at the earliest

after happening for getting the facts real information

ldquoGemba Kaizenrdquo means - Improvement at yourwork place Team is important in Gemba Kaizen Look at the work place to find out avenues

for bdquoKaizen‟ through 3 bdquoD‟ approach

- Gemba Kaizen -3 bdquoG‟s Importance

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India Limited

How to start - For initial work Use bdquo3D‟ approach

ndash Dirty - oil coolant air leakages

- chips and burr on floor- Accumulated dust etc

ndash Dangerous - Unsafe working conditions- Movements

ndash Difficult - Difficult to move- lift assembly

- not ergonomical situations

Results in employee satisfaction amp improved morale

Makes job easier simpler safer and faster

Increases efficiency Happier Customer

Overall improvement of organization

- To Start with

I i amp K i

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India Limited

Innovation amp Kaizen

1

30

300

Kaizen is a small improvement carried out by the person in his own workplace

with nil or negligible investment

Kaizen Tools

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Kaizen Tools

1bdquoO‟ ndash

Opportunity

Tag

-Small Improvement - keeping in mind 1-30-300 triangle Avoid major stoppage

by proactive methods

- Structured process for Involvement Registration and tracking of every small

improvement

2 Gemba Kaizen - Focused work station improvement for elimination of waste - Improvementsowned by associates

3 5 S Activities- Seiri Seiton Seiso Seiketsu Shitsuke Disciplined approach for lean

management - Foundation for JIT Develop culture of discipline

4 7 Step Project

-Quality improvement projects taken from PPM chart Customer complaint

-Team work for resolving through 7 step structured process ( 5W1H CEdac

chips 5 Why root cause )

5Kobetsu

Kaizen

-Focused improvement under taken for quality waste elimination ( Kit

improvement )

6Material Feed

System

- Inventory control through 5 S 2 Bin System Movement reduction Linkage

upto supplier order )

7Layout

Modification

-Global layout with assembly at centre amp local layout in form of feeding system

-U shape layouts for synchronization of flow and inventory control Improve

material handling

8 One Piece Flow- Step by step reduction in inventory with final aim of JIT ( Zero - Breakdown

Accident Defect)

9 Model Machine

-Activities include -1S 2S Transparency MISER to improve availability

-OEE improvement through EYE chart 3S 3M chart 5S Before and After

monitoring each week

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10 Eye Chart-7 Step problem Pokayoke etc are sourced from these OEE charts

-Common chart for all BUs to note down quality defect

11 SMED

-Reduction in set up time by study of set up change activities video film

-Separating internal and external activities Modifications in fixtures auto

clamping etc

12 MISER- M-minimize I- improvise S- simplify E- eliminate R- reduce --- Continuous

improvement

13 POKAYOKE

- Failsafing for operator‟s un-intentional mistake and total quality

improvement

- Cost reduction by attacking poor quality kit shortages handling

improvement

14IFC ( Initial

Flow Control)

- Making a list of improvements by reviewing quality problems and customer

complaint

- These points will be used for ordering new machines or making

improvements in new product

15 KANBAN- Consumption based material procurement system Ensures availability of

material with minimum inventory

16bdquoO‟ Tag

Campaign

- To increase awareness for Safety PokaYoke Dirty Difficult Danger and

Deterioration

17 Office Kaizen- Apply kaizen tools for increasing effectiveness and reduce delays ( quick

response )

18 Training-Training for acquiring new skills at Gemba Improves employees on

continuous basis

Th f f f h l f t t ib t d b

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19 PQCD MoP

- These are measures of performance for whole factory contributed by

individual business units

- Review and correction is needed every month in 5S Before After chart

20JOHARI

WINDOW

-This technique is used to identify root causes in human elements while

solving problems using accumulated knowledge skills developed in a

individual This technique is based on communication in two entities in open

environment amp positive attitude towards problem resolution

21

BMT (

Behavioral

Modulation

Technique)

To impart skills leading to increase of productivity of employees and

motivate them

22 Recognition

Recognition is most important for any human being In kaizen activities we

take care of appreciating every improvement either by individual or by team

The theme is ldquoMaking everybody a herordquo There are 44 ways of appreciatingemployees without actual monitory gains or amount

23 Turbo Kaizen

- Idea generation is done through Turbo Kaizen amp implemented using Kaizen

tools

-Kaizen activities help faster implementation of cost saving ideas

24 Ergonomics

Ergonomics was coined from the Greek words ergon (meaning work) and

nomos (meaning rules) ldquo Fit the task to the person not the person to the

taskldquo

A good way to understand what ergonomics means is to think about the term

user-friendly

25 Karakuri

Machine layout is modified in such a manner that flow of material from one

machine to other machine is maintained without energy consumption by

taking advantage gravity

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Welcome

to Presentation

onOFFICE KAIZEN

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- Why Office Kaizen What are its‟ benefits

bull To improve productivity efficiency in the administrative functions andidentify and eliminate losses This includes analyzing processes andprocedures towards increased office automation

Benefits

bull Involvement of all people in support functions for focusing on betterplant performance

bull Reduction in administrative costs - Reduced inventory carrying cost

bull Better utilized work area - Reduce repetitive work

bull Motivate people in support areas - Multiskilling in support areas

bull Some evident results are- Reduced inventory levels in all parts of the supply chain

- Reduction in number of files

- Reduction of overhead costs (to include cost of non-productionnoncapital equipment)

- Productivity of people in support functions

- Breakdown of office equipment - Reduced manpower- Customer complaints due to logistics

- Expenses due to emergency dispatchespurchases

- Clean and pleasant work environment

d fi i ffi i16

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- How to define P Q C D S M in Office Kaizen

bull Each company will have to define for themselves looking at all losses which affect plantperformance

These are some examples

bull P ndash Production output lost due to want of material

ndash Manpower productivity

ndash Production output lost due to want of tools

bull Q ndash Mistakes in preparation of cheques bills invoices payroll

ndash Customer returnswarranty attributable to BOPs

ndash Rejectionrework in BOP‟sjob work

ndash Office area rework

bull C ndash Buying costunit produced

ndash Cost of logistics ndash inboundoutbound

ndash Cost of carrying inventory ndash Cost of communication

ndash Demurrage costs

bull D ndash Logistics losses(Delay in loadingunloading)

ndash Delay in delivery due to any of the support functions

ndash Delay in payments to suppliers

ndash Delay in information

bull S ndash Safety in material handlingstoreslogistics

ndash Safety of soft and hard databull M ndash Number of kaizens in office areas

H t t t ffi K i 16

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- How to start office Kaizen

Steps followed are

- Providing awareness about office Kaizen to all support departments

- Helping them to identify P Q C D S M in each function in relation to plantperformance

- Identify the scope for improvement in each function- Collect relevant data

- Help them to solve problems in their Circles Teams

- Make up an activity board where progress is monitored on both sides ndash results andactions along with Kaizens

How to identify losses in office Kaizen

In each functional area identify the losses separately and add them up to build up amaster plan for Office Kaizen For example

- office equipment breakdown

- communication channel breakdown telephone and fax lines

- time spent on retrieval of information

- non availability of correct on line stock status

- customer complaints due to logistics

- expenses on emergency dispatchespurchases- cost reduction on non-productionnon capital items

H t l t K b t K i t i f Offi K i 16

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- How to select Kobetsu Kaizen topics from Office Kaizen

Kobetsu Kaizen topics are selected aiming at --

- Inventory reduction- Lead time reduction of critical processes

- Motion amp space losses

- retrieval time reduction

- reducing or eliminating office work flow stagnation

- equalizing the work load

- analyzing for bdquono material‟ areas and improving them

- Improving the office efficiency

ndash By eliminating the time loss on retrieval of information

ndash By achieving zero breakdown of office equipment like telephoneand fax Lines Xerox machine etc

PPM Ch t IN OFFICE16

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- PPM Chart IN OFFICENov Dec Jan Feb Mar

96667 136667 110000 93333 1366

56 46 153 46

April May June July Aug

58333

90

Defects

Defects Expressed in 5W 1H

Fassion1 2 3 4 5 OF

S U N D A Y

8 9 10 11 12 OF

S U N D A Y

15 16 17 18 19 OF

S U N D A Y

22 23 24 25 26 OF

S U N D A Y

29 30

Total

Defect

s

PPM

1 BILL OF MATERIAL CHANGE 0 0 0 0 0

2 SUPPLIER FAULT 0 1 0 1 0 1 1 0 1 2 1 0 2 0 0 0 6 16 533

3 BUYER FAULT 0 0 0 0 0 0

4ENGINE PREPONED ADDITIONAL ENGINE 0 0 0 0 0 0 0

5 RRP-REQT RPORT PROBLEM 0 0 0 0 0 0 0

6 STOCK DESCRIPANCY 0 0 0 0 0 0 0

7 QUALITY SOURCING ISSUES 0 0 0 0 0 0 0 1 05 1666

8 DELAY GRR POSTING 0 0 0 0 0

9 TRANSPORTATION PROBLEM 0 0 0 1 0 1

Total Defects 0 0 0 0 0 0 0 1 0 1 1 1 0 0 1 0 1 2 1 0 0 0 3 0 0 0 0 0 0 6 0 175 583

0 0 0 0 0 0 0 3 3 3 3

0 3 3 3 3

3 3 3 3

3 3 3 3

0 0 3 3 3 3

0 3 3 3 3

6 6 6 7

3 3 3 3

0 0 0 8 3 3 3

0 0 0 0 0 0 2 0 0 0 0

0

Number of active parts for a month=300 NOS

Defects Per Million

Weekly PPM 0 5 5 6

2 2 2 2

2 2 2 2

0

What Short of material while Pulli Why Various reasons as above

Where In the Store Who Kanban process owener(store person)

When While Kanban Pulling How During routine work

MONTHLY

Sr

no

MONTHLY PP

Month

PPM

Kaizen

DATE

Month

PPM

Kaizen

Daily PPM Value for Feb - 2001

0

4000

8000

12000

16000

20000

24000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30Date

P P M

V a l u e

Weekly PPM Value

0

500

1000

1500

2000

2500

1 2 3 4 5

Week P P M

M P T bl IN OFFICE16

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- MoP Table IN OFFICEHuman Resources MOP summary

May02 Jun 02 Jul02 Aug 02 Sep02 Oct 02 Nov 02 Dec 02 Jan03 Feb03

Productivity (P)

Actual 6915 6546 4989 5806 5645 4879 5056 4746 5308 5158

Desired 50 50 50 50 50 50 50 50 50 50

Actual 300 250 150 250 250 200 150 150 175 225 450

Desired 200 200 200 200 200 200 200 200 200 200 200

Quality (Q)

Actual 76

Desired(Tar et)

80

Actual 12th 10th 12th 12th 10th 10th 10th 10th 9th 8th

Desired 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th

Actual 9th 7th 7th 8th 8th 7th 7th 7th 7th 6th

Desired 8th 7th 6th 6th 6th 6th 6th 6th 6th 6th 6th

Actual 5th 5th 5th 5th 5th 5th 5th 5th 5th 4th 5th

Desired 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th

Actual 0 1 0 1 1 1 0 1 1 1 2

Desired 0 0 0 0 0 0 0 0 0 0 0

BEFORE AFTER 5S

RESULT MONITORActual

DeasiredApr02

AFTER 5S

PeopleEngineDay

HRFE Score (Yearly

measure) (Measured one in a year)

Delivery (D)

Monthly Report Submission

Safety Incidents (S)

No of Accidents Month

CPS Report

Monthly headcount data

No of people involved in

community Welfare

- Kaizen Projects in Offices

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HR

bull Improve employee data adequacy

bull Transfer of old PF accountbull Consolidation of banks for salary payment

bull Safety on road Safety goggles

bull Safety gates on shop floors

bull Pokayokes on accidents ( Radial drills Signs on walkways )

bull Prevention of epidemic diseases

bull Canteen Improvement ndash Kanban for material

- Energy saving

- Improve ventilation and lighting

- Roof cooling by purified drainage

water

- Kaizen Projects in Offices

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HR

bull Improvement in Health awareness ( check up Lectures

De addiction campsbull Bench marking visits to other factories

bull Recognition policy

bull Participation in intra company competition

bull Safety poster competition

bull ldquoOrdquo tag campaign for safety

bull ATM counter bank facility at gate

bull Prize distribution by Union leaders

bull Letter to family for good work

bull Proper lighting and ventilation at workplace

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bull Poka-yoke (pronounced POH-kah YOH-kayldquo ) bull Japanese words poka (inadvertent mistake) and yoke

(prevent) was invented by Shigeo Shingo in the 1960s

bull The essential idea of poka-yoke is to design your process so

that mistakes are impossible or at least easily detected and

corrected

About Shigeo Shingohelliphelliphellip

bull A leading proponent of statistical process control

bull Became frustrated with the statistical approach

bull Statistical sampling implies that some products to gountested with the result that some rate of defects would

always reach the customer

About POKA YOKEhelliphelliphelliphellip

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bull Shingo was communicated of a problem inldquoYamada Electric plantrdquo in 1961

bull A small switch with two push-buttons supported by two

springs occasionally the worker assembling the switch would

forget to insert a spring under each push-button

bull Sometimes the error would not be discovered until the unitreached a customer

bull Factory would have to dispatch an engineer to the customer

site to disassemble the switch insert the missing spring and

re-assemble the switch

bull This problem of the missing spring was both costly andembarrassing

bull Despite everyones best intentions the missing spring problem

would eventually re-appear

Birth of POKA YOKE helliphelliphellip

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Pokayoke ActionError Has

Occurred

Detection

Is Made

Defect

Is

Signaled Control

Feedback

GivenProcess

Is

Stopped

POKA YOKE Action

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bull A system for organising work that prevents the error

bull Excludes any risk of error even by the beginner

bull Allows everyone to operate without mistake

bull Prevents error that are about to occur

bull Inspection time will be minimised

What is ldquoMistake Proofing ldquo Why should we do it

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Mistake -Proof Approach

List of Problems ndash Select

Form a Team

Brain-writing at Gemba

Why-Why Analysis leads to root cause

Kaizens on root cause

Establish Activities to maintain standard

Work Towards Low Cost Automation

Plan

Do

Check

Act

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What - A tool that helps to eliminate inadvertent human errors

- Helps to build quality in product at sourceWhere - Is helpful in highly repetitive situations High Productivity areas

may lead to mistakes sometimes

(Unintentional errors - Forgetting Ignoring Inattentiveness )

eg - Complex processes Repetitive assembly mistakes

When - Sourced from Safety issues Driven by known quality problems

Customer complaints RFT P Tags BIS issues FMEA

Why - Builds quality in the product waste elimination

How - Pokayoke is often LOW COST or NO COST solutions

POKA YOKE helps in case of unintentional mistakes and not mischiefs

Pokayoke - Fail safe in 5 W 1 H

Kaizen

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Welcome

Learning Session on

Model Machine

Objectives

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j

To Learn

bull Concept of Model Machine - P - PC Balance

bull Why Model Machine

bull 8 Major losses

bull OEE Calculations

bull How to Develop

bull Documentation

bull Examples

Wh M d l M hi

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Why Model MachineProfit = Sales ndash Cost

Profit = Sales ndash Mfg Cost

To reduce manufacturing cost needs optimumutilization of all assets ie resources

Measurement of effective utilization of all

resources is Overall Equipment Efficiency( OEE)

(09 09 09 = 73)

Why Model Machine

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Profit = Total sales ndash Total cost

Why Model Machine

Profit = Selling Prices - Input Mfg cost up

( competition ) ( Increasing cost of input resources )

To maintain improve profit hellip Solution is ldquo Reduce Mfg costrdquo

Improve Asset Utilization

Improve Overall Equipment ldquoEfficiencyrdquo (OEE)

OEE = Availability x Performance x Quality

Our goal should be to improve OEE gt 85

world class Benchmark = 95

Why Model Machine

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Why Model Machine

If

OEE = Mfg Cost

Mfg cost = profit

eg Consider a MC of cost Rs 5 cr

Utilization in Japan china ndash OEE 90Utilization in India ndash OEE 45 (45 7080)So product cost in India will be 2 times than the cost in

china

Key is improve to OEEAchievement on 8 Model Machines - OEE improved

from 45 to 75 85

P - PC Balance

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P PC Balance

Production Vs Production Capability

Engine+Parts Equipment + MC + Test Bed

Model Machine

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Factory Within Factory is BU

BU Within BU is MODEL MC

WHY Model MC

To deliver -Cost Effective Product to ldquoInternalrdquo amp Externalrdquo Customer

Zero - Breakdown

By Achieving - Zero - Accident

Zero - Defect

To Success is ldquoImprove OEErdquo (Overall Equipment Effectiveness)

5 - M‟S OF PRODUCTION

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bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

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NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

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Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

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Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

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What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

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Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

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TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

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INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

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TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

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What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

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TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

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TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

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Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

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httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5593

US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

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g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

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TPSLean Principles

Click to proceed

TPSLean Principles

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TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

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Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

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Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

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Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

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Principle 2 Takt time

Takt Time

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bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

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Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

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Principle 3

Non-value added activities

What are Non-value added activities

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bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

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1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

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bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

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bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

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Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

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bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

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bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

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bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

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bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

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Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

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bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

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bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

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ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

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Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

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Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

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bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

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bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

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bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

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Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

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PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

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bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

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bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

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- How to Practice

Kaizen starts from Top Management

bullUnderstand the ldquo Kaizenrdquo Concept

bull Involve everybody in implementation

bull Maintain the improvements

bull Support the ldquoTeamrdquo Concept for developing

the ldquoKaizen Culturerdquo

bull Recognize Appreciate ldquoothersrdquo also bull Be ldquoAdvocaterdquo for Kaizen

bull ldquoPracticerdquo and ldquoTeachrdquo - ie ldquoPreachrdquo Kaizen

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10

Ground RulesKaizen Believes in Team Work

bull Zero investment - Optimize current equipment and

resources Do not plan on spending big moneybull Discard conventional fixed ideas for production

bull Think of how to do it not why it cannot be done

bull Correct mistakes at once for Customer delights

bull Do not make excuses question current practicesbull Do not wait for perfection do it right away

bull Wisdom is brought about when faced with hardship

bull Eliminate or reduce when we can see and feel the bdquowaste‟

bull Ask bdquoWhyrdquo five times and seek root causes

bull Seek the wisdom of ten rather than the knowledge of one

bull Kaizen never stops

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11

KAIZEN

Continuous progress through People Involvement

KAI ndash Change ZEN ndash For Better

KAIZEN ndash Change For Better

ldquoContinual Improvementrdquo

UnsafeAction

Near Misses

Fatal

Accident1

30

300 Problem in bdquoseed‟

stage(Signals

ignored)

Problem in bdquosaplingrsquo stage

Problem in bdquotree‟ stage

(Disasters at workplace)

Problems at the WorkPlace

5 bdquoS‟ F d ti

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Kaizen Museum

1 Seiri - Sorting

2 Seiton - Systematic Arrangement

3 Seiso - Spic and Span TPM

(Cleaning with inspection)

4 Seiketsu- Standardized workplace5 Shitsuke- Self Discipline

- 5 bdquoS‟ as Foundation

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5 S linked with productivity

Step 1 Awareness revolution

( prerequisite for factory improvement )

Step 2 The 5 S‟s

( foundation for factory improvement )

Step 3 Flow manufacturing

Step 4 Leveling

Step 5 standard operations

Just - in - time

Multi

process

handling

Changeover

Human

automation

Kanban

Quality

assurance

Maintenance

amp Safety

M a n p o w e r o p t i m i z a t i o n V

i s u al M an

a g em en t

5 S - Objectives

G b K i 3 bdquoG‟ I t

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India Limited

Gemba - Work place

eg mc amp surroundings areatable amp surroundings

Assembly Station test cell etc

bull Gembutsu - Problem piece

eg All objectives related to improvement in Gemba

bull Genjitsu - Real time

eg Observe the things

while happening or at the earliest

after happening for getting the facts real information

ldquoGemba Kaizenrdquo means - Improvement at yourwork place Team is important in Gemba Kaizen Look at the work place to find out avenues

for bdquoKaizen‟ through 3 bdquoD‟ approach

- Gemba Kaizen -3 bdquoG‟s Importance

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India Limited

How to start - For initial work Use bdquo3D‟ approach

ndash Dirty - oil coolant air leakages

- chips and burr on floor- Accumulated dust etc

ndash Dangerous - Unsafe working conditions- Movements

ndash Difficult - Difficult to move- lift assembly

- not ergonomical situations

Results in employee satisfaction amp improved morale

Makes job easier simpler safer and faster

Increases efficiency Happier Customer

Overall improvement of organization

- To Start with

I i amp K i

842019 Presentation on TPS -JIT Kanban

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India Limited

Innovation amp Kaizen

1

30

300

Kaizen is a small improvement carried out by the person in his own workplace

with nil or negligible investment

Kaizen Tools

842019 Presentation on TPS -JIT Kanban

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Kaizen Tools

1bdquoO‟ ndash

Opportunity

Tag

-Small Improvement - keeping in mind 1-30-300 triangle Avoid major stoppage

by proactive methods

- Structured process for Involvement Registration and tracking of every small

improvement

2 Gemba Kaizen - Focused work station improvement for elimination of waste - Improvementsowned by associates

3 5 S Activities- Seiri Seiton Seiso Seiketsu Shitsuke Disciplined approach for lean

management - Foundation for JIT Develop culture of discipline

4 7 Step Project

-Quality improvement projects taken from PPM chart Customer complaint

-Team work for resolving through 7 step structured process ( 5W1H CEdac

chips 5 Why root cause )

5Kobetsu

Kaizen

-Focused improvement under taken for quality waste elimination ( Kit

improvement )

6Material Feed

System

- Inventory control through 5 S 2 Bin System Movement reduction Linkage

upto supplier order )

7Layout

Modification

-Global layout with assembly at centre amp local layout in form of feeding system

-U shape layouts for synchronization of flow and inventory control Improve

material handling

8 One Piece Flow- Step by step reduction in inventory with final aim of JIT ( Zero - Breakdown

Accident Defect)

9 Model Machine

-Activities include -1S 2S Transparency MISER to improve availability

-OEE improvement through EYE chart 3S 3M chart 5S Before and After

monitoring each week

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10 Eye Chart-7 Step problem Pokayoke etc are sourced from these OEE charts

-Common chart for all BUs to note down quality defect

11 SMED

-Reduction in set up time by study of set up change activities video film

-Separating internal and external activities Modifications in fixtures auto

clamping etc

12 MISER- M-minimize I- improvise S- simplify E- eliminate R- reduce --- Continuous

improvement

13 POKAYOKE

- Failsafing for operator‟s un-intentional mistake and total quality

improvement

- Cost reduction by attacking poor quality kit shortages handling

improvement

14IFC ( Initial

Flow Control)

- Making a list of improvements by reviewing quality problems and customer

complaint

- These points will be used for ordering new machines or making

improvements in new product

15 KANBAN- Consumption based material procurement system Ensures availability of

material with minimum inventory

16bdquoO‟ Tag

Campaign

- To increase awareness for Safety PokaYoke Dirty Difficult Danger and

Deterioration

17 Office Kaizen- Apply kaizen tools for increasing effectiveness and reduce delays ( quick

response )

18 Training-Training for acquiring new skills at Gemba Improves employees on

continuous basis

Th f f f h l f t t ib t d b

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19 PQCD MoP

- These are measures of performance for whole factory contributed by

individual business units

- Review and correction is needed every month in 5S Before After chart

20JOHARI

WINDOW

-This technique is used to identify root causes in human elements while

solving problems using accumulated knowledge skills developed in a

individual This technique is based on communication in two entities in open

environment amp positive attitude towards problem resolution

21

BMT (

Behavioral

Modulation

Technique)

To impart skills leading to increase of productivity of employees and

motivate them

22 Recognition

Recognition is most important for any human being In kaizen activities we

take care of appreciating every improvement either by individual or by team

The theme is ldquoMaking everybody a herordquo There are 44 ways of appreciatingemployees without actual monitory gains or amount

23 Turbo Kaizen

- Idea generation is done through Turbo Kaizen amp implemented using Kaizen

tools

-Kaizen activities help faster implementation of cost saving ideas

24 Ergonomics

Ergonomics was coined from the Greek words ergon (meaning work) and

nomos (meaning rules) ldquo Fit the task to the person not the person to the

taskldquo

A good way to understand what ergonomics means is to think about the term

user-friendly

25 Karakuri

Machine layout is modified in such a manner that flow of material from one

machine to other machine is maintained without energy consumption by

taking advantage gravity

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Welcome

to Presentation

onOFFICE KAIZEN

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httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 2193

- Why Office Kaizen What are its‟ benefits

bull To improve productivity efficiency in the administrative functions andidentify and eliminate losses This includes analyzing processes andprocedures towards increased office automation

Benefits

bull Involvement of all people in support functions for focusing on betterplant performance

bull Reduction in administrative costs - Reduced inventory carrying cost

bull Better utilized work area - Reduce repetitive work

bull Motivate people in support areas - Multiskilling in support areas

bull Some evident results are- Reduced inventory levels in all parts of the supply chain

- Reduction in number of files

- Reduction of overhead costs (to include cost of non-productionnoncapital equipment)

- Productivity of people in support functions

- Breakdown of office equipment - Reduced manpower- Customer complaints due to logistics

- Expenses due to emergency dispatchespurchases

- Clean and pleasant work environment

d fi i ffi i16

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- How to define P Q C D S M in Office Kaizen

bull Each company will have to define for themselves looking at all losses which affect plantperformance

These are some examples

bull P ndash Production output lost due to want of material

ndash Manpower productivity

ndash Production output lost due to want of tools

bull Q ndash Mistakes in preparation of cheques bills invoices payroll

ndash Customer returnswarranty attributable to BOPs

ndash Rejectionrework in BOP‟sjob work

ndash Office area rework

bull C ndash Buying costunit produced

ndash Cost of logistics ndash inboundoutbound

ndash Cost of carrying inventory ndash Cost of communication

ndash Demurrage costs

bull D ndash Logistics losses(Delay in loadingunloading)

ndash Delay in delivery due to any of the support functions

ndash Delay in payments to suppliers

ndash Delay in information

bull S ndash Safety in material handlingstoreslogistics

ndash Safety of soft and hard databull M ndash Number of kaizens in office areas

H t t t ffi K i 16

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- How to start office Kaizen

Steps followed are

- Providing awareness about office Kaizen to all support departments

- Helping them to identify P Q C D S M in each function in relation to plantperformance

- Identify the scope for improvement in each function- Collect relevant data

- Help them to solve problems in their Circles Teams

- Make up an activity board where progress is monitored on both sides ndash results andactions along with Kaizens

How to identify losses in office Kaizen

In each functional area identify the losses separately and add them up to build up amaster plan for Office Kaizen For example

- office equipment breakdown

- communication channel breakdown telephone and fax lines

- time spent on retrieval of information

- non availability of correct on line stock status

- customer complaints due to logistics

- expenses on emergency dispatchespurchases- cost reduction on non-productionnon capital items

H t l t K b t K i t i f Offi K i 16

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- How to select Kobetsu Kaizen topics from Office Kaizen

Kobetsu Kaizen topics are selected aiming at --

- Inventory reduction- Lead time reduction of critical processes

- Motion amp space losses

- retrieval time reduction

- reducing or eliminating office work flow stagnation

- equalizing the work load

- analyzing for bdquono material‟ areas and improving them

- Improving the office efficiency

ndash By eliminating the time loss on retrieval of information

ndash By achieving zero breakdown of office equipment like telephoneand fax Lines Xerox machine etc

PPM Ch t IN OFFICE16

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- PPM Chart IN OFFICENov Dec Jan Feb Mar

96667 136667 110000 93333 1366

56 46 153 46

April May June July Aug

58333

90

Defects

Defects Expressed in 5W 1H

Fassion1 2 3 4 5 OF

S U N D A Y

8 9 10 11 12 OF

S U N D A Y

15 16 17 18 19 OF

S U N D A Y

22 23 24 25 26 OF

S U N D A Y

29 30

Total

Defect

s

PPM

1 BILL OF MATERIAL CHANGE 0 0 0 0 0

2 SUPPLIER FAULT 0 1 0 1 0 1 1 0 1 2 1 0 2 0 0 0 6 16 533

3 BUYER FAULT 0 0 0 0 0 0

4ENGINE PREPONED ADDITIONAL ENGINE 0 0 0 0 0 0 0

5 RRP-REQT RPORT PROBLEM 0 0 0 0 0 0 0

6 STOCK DESCRIPANCY 0 0 0 0 0 0 0

7 QUALITY SOURCING ISSUES 0 0 0 0 0 0 0 1 05 1666

8 DELAY GRR POSTING 0 0 0 0 0

9 TRANSPORTATION PROBLEM 0 0 0 1 0 1

Total Defects 0 0 0 0 0 0 0 1 0 1 1 1 0 0 1 0 1 2 1 0 0 0 3 0 0 0 0 0 0 6 0 175 583

0 0 0 0 0 0 0 3 3 3 3

0 3 3 3 3

3 3 3 3

3 3 3 3

0 0 3 3 3 3

0 3 3 3 3

6 6 6 7

3 3 3 3

0 0 0 8 3 3 3

0 0 0 0 0 0 2 0 0 0 0

0

Number of active parts for a month=300 NOS

Defects Per Million

Weekly PPM 0 5 5 6

2 2 2 2

2 2 2 2

0

What Short of material while Pulli Why Various reasons as above

Where In the Store Who Kanban process owener(store person)

When While Kanban Pulling How During routine work

MONTHLY

Sr

no

MONTHLY PP

Month

PPM

Kaizen

DATE

Month

PPM

Kaizen

Daily PPM Value for Feb - 2001

0

4000

8000

12000

16000

20000

24000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30Date

P P M

V a l u e

Weekly PPM Value

0

500

1000

1500

2000

2500

1 2 3 4 5

Week P P M

M P T bl IN OFFICE16

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- MoP Table IN OFFICEHuman Resources MOP summary

May02 Jun 02 Jul02 Aug 02 Sep02 Oct 02 Nov 02 Dec 02 Jan03 Feb03

Productivity (P)

Actual 6915 6546 4989 5806 5645 4879 5056 4746 5308 5158

Desired 50 50 50 50 50 50 50 50 50 50

Actual 300 250 150 250 250 200 150 150 175 225 450

Desired 200 200 200 200 200 200 200 200 200 200 200

Quality (Q)

Actual 76

Desired(Tar et)

80

Actual 12th 10th 12th 12th 10th 10th 10th 10th 9th 8th

Desired 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th

Actual 9th 7th 7th 8th 8th 7th 7th 7th 7th 6th

Desired 8th 7th 6th 6th 6th 6th 6th 6th 6th 6th 6th

Actual 5th 5th 5th 5th 5th 5th 5th 5th 5th 4th 5th

Desired 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th

Actual 0 1 0 1 1 1 0 1 1 1 2

Desired 0 0 0 0 0 0 0 0 0 0 0

BEFORE AFTER 5S

RESULT MONITORActual

DeasiredApr02

AFTER 5S

PeopleEngineDay

HRFE Score (Yearly

measure) (Measured one in a year)

Delivery (D)

Monthly Report Submission

Safety Incidents (S)

No of Accidents Month

CPS Report

Monthly headcount data

No of people involved in

community Welfare

- Kaizen Projects in Offices

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HR

bull Improve employee data adequacy

bull Transfer of old PF accountbull Consolidation of banks for salary payment

bull Safety on road Safety goggles

bull Safety gates on shop floors

bull Pokayokes on accidents ( Radial drills Signs on walkways )

bull Prevention of epidemic diseases

bull Canteen Improvement ndash Kanban for material

- Energy saving

- Improve ventilation and lighting

- Roof cooling by purified drainage

water

- Kaizen Projects in Offices

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HR

bull Improvement in Health awareness ( check up Lectures

De addiction campsbull Bench marking visits to other factories

bull Recognition policy

bull Participation in intra company competition

bull Safety poster competition

bull ldquoOrdquo tag campaign for safety

bull ATM counter bank facility at gate

bull Prize distribution by Union leaders

bull Letter to family for good work

bull Proper lighting and ventilation at workplace

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bull Poka-yoke (pronounced POH-kah YOH-kayldquo ) bull Japanese words poka (inadvertent mistake) and yoke

(prevent) was invented by Shigeo Shingo in the 1960s

bull The essential idea of poka-yoke is to design your process so

that mistakes are impossible or at least easily detected and

corrected

About Shigeo Shingohelliphelliphellip

bull A leading proponent of statistical process control

bull Became frustrated with the statistical approach

bull Statistical sampling implies that some products to gountested with the result that some rate of defects would

always reach the customer

About POKA YOKEhelliphelliphelliphellip

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bull Shingo was communicated of a problem inldquoYamada Electric plantrdquo in 1961

bull A small switch with two push-buttons supported by two

springs occasionally the worker assembling the switch would

forget to insert a spring under each push-button

bull Sometimes the error would not be discovered until the unitreached a customer

bull Factory would have to dispatch an engineer to the customer

site to disassemble the switch insert the missing spring and

re-assemble the switch

bull This problem of the missing spring was both costly andembarrassing

bull Despite everyones best intentions the missing spring problem

would eventually re-appear

Birth of POKA YOKE helliphelliphellip

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Pokayoke ActionError Has

Occurred

Detection

Is Made

Defect

Is

Signaled Control

Feedback

GivenProcess

Is

Stopped

POKA YOKE Action

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bull A system for organising work that prevents the error

bull Excludes any risk of error even by the beginner

bull Allows everyone to operate without mistake

bull Prevents error that are about to occur

bull Inspection time will be minimised

What is ldquoMistake Proofing ldquo Why should we do it

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Mistake -Proof Approach

List of Problems ndash Select

Form a Team

Brain-writing at Gemba

Why-Why Analysis leads to root cause

Kaizens on root cause

Establish Activities to maintain standard

Work Towards Low Cost Automation

Plan

Do

Check

Act

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What - A tool that helps to eliminate inadvertent human errors

- Helps to build quality in product at sourceWhere - Is helpful in highly repetitive situations High Productivity areas

may lead to mistakes sometimes

(Unintentional errors - Forgetting Ignoring Inattentiveness )

eg - Complex processes Repetitive assembly mistakes

When - Sourced from Safety issues Driven by known quality problems

Customer complaints RFT P Tags BIS issues FMEA

Why - Builds quality in the product waste elimination

How - Pokayoke is often LOW COST or NO COST solutions

POKA YOKE helps in case of unintentional mistakes and not mischiefs

Pokayoke - Fail safe in 5 W 1 H

Kaizen

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Welcome

Learning Session on

Model Machine

Objectives

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j

To Learn

bull Concept of Model Machine - P - PC Balance

bull Why Model Machine

bull 8 Major losses

bull OEE Calculations

bull How to Develop

bull Documentation

bull Examples

Wh M d l M hi

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Why Model MachineProfit = Sales ndash Cost

Profit = Sales ndash Mfg Cost

To reduce manufacturing cost needs optimumutilization of all assets ie resources

Measurement of effective utilization of all

resources is Overall Equipment Efficiency( OEE)

(09 09 09 = 73)

Why Model Machine

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Profit = Total sales ndash Total cost

Why Model Machine

Profit = Selling Prices - Input Mfg cost up

( competition ) ( Increasing cost of input resources )

To maintain improve profit hellip Solution is ldquo Reduce Mfg costrdquo

Improve Asset Utilization

Improve Overall Equipment ldquoEfficiencyrdquo (OEE)

OEE = Availability x Performance x Quality

Our goal should be to improve OEE gt 85

world class Benchmark = 95

Why Model Machine

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Why Model Machine

If

OEE = Mfg Cost

Mfg cost = profit

eg Consider a MC of cost Rs 5 cr

Utilization in Japan china ndash OEE 90Utilization in India ndash OEE 45 (45 7080)So product cost in India will be 2 times than the cost in

china

Key is improve to OEEAchievement on 8 Model Machines - OEE improved

from 45 to 75 85

P - PC Balance

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P PC Balance

Production Vs Production Capability

Engine+Parts Equipment + MC + Test Bed

Model Machine

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Factory Within Factory is BU

BU Within BU is MODEL MC

WHY Model MC

To deliver -Cost Effective Product to ldquoInternalrdquo amp Externalrdquo Customer

Zero - Breakdown

By Achieving - Zero - Accident

Zero - Defect

To Success is ldquoImprove OEErdquo (Overall Equipment Effectiveness)

5 - M‟S OF PRODUCTION

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bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

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NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

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Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

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Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

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What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

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Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

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TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

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INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

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TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

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What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

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TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

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TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

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Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

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US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

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g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

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TPSLean Principles

Click to proceed

TPSLean Principles

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TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

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Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

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Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

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Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

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Principle 2 Takt time

Takt Time

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bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

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Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

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Principle 3

Non-value added activities

What are Non-value added activities

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bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

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1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

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bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

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bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

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Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

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bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

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bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

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bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

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bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

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Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

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bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

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bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

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ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

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Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

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Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

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bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

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bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

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bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

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Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

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PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

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bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

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bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

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10

Ground RulesKaizen Believes in Team Work

bull Zero investment - Optimize current equipment and

resources Do not plan on spending big moneybull Discard conventional fixed ideas for production

bull Think of how to do it not why it cannot be done

bull Correct mistakes at once for Customer delights

bull Do not make excuses question current practicesbull Do not wait for perfection do it right away

bull Wisdom is brought about when faced with hardship

bull Eliminate or reduce when we can see and feel the bdquowaste‟

bull Ask bdquoWhyrdquo five times and seek root causes

bull Seek the wisdom of ten rather than the knowledge of one

bull Kaizen never stops

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11

KAIZEN

Continuous progress through People Involvement

KAI ndash Change ZEN ndash For Better

KAIZEN ndash Change For Better

ldquoContinual Improvementrdquo

UnsafeAction

Near Misses

Fatal

Accident1

30

300 Problem in bdquoseed‟

stage(Signals

ignored)

Problem in bdquosaplingrsquo stage

Problem in bdquotree‟ stage

(Disasters at workplace)

Problems at the WorkPlace

5 bdquoS‟ F d ti

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Kaizen Museum

1 Seiri - Sorting

2 Seiton - Systematic Arrangement

3 Seiso - Spic and Span TPM

(Cleaning with inspection)

4 Seiketsu- Standardized workplace5 Shitsuke- Self Discipline

- 5 bdquoS‟ as Foundation

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5 S linked with productivity

Step 1 Awareness revolution

( prerequisite for factory improvement )

Step 2 The 5 S‟s

( foundation for factory improvement )

Step 3 Flow manufacturing

Step 4 Leveling

Step 5 standard operations

Just - in - time

Multi

process

handling

Changeover

Human

automation

Kanban

Quality

assurance

Maintenance

amp Safety

M a n p o w e r o p t i m i z a t i o n V

i s u al M an

a g em en t

5 S - Objectives

G b K i 3 bdquoG‟ I t

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India Limited

Gemba - Work place

eg mc amp surroundings areatable amp surroundings

Assembly Station test cell etc

bull Gembutsu - Problem piece

eg All objectives related to improvement in Gemba

bull Genjitsu - Real time

eg Observe the things

while happening or at the earliest

after happening for getting the facts real information

ldquoGemba Kaizenrdquo means - Improvement at yourwork place Team is important in Gemba Kaizen Look at the work place to find out avenues

for bdquoKaizen‟ through 3 bdquoD‟ approach

- Gemba Kaizen -3 bdquoG‟s Importance

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India Limited

How to start - For initial work Use bdquo3D‟ approach

ndash Dirty - oil coolant air leakages

- chips and burr on floor- Accumulated dust etc

ndash Dangerous - Unsafe working conditions- Movements

ndash Difficult - Difficult to move- lift assembly

- not ergonomical situations

Results in employee satisfaction amp improved morale

Makes job easier simpler safer and faster

Increases efficiency Happier Customer

Overall improvement of organization

- To Start with

I i amp K i

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India Limited

Innovation amp Kaizen

1

30

300

Kaizen is a small improvement carried out by the person in his own workplace

with nil or negligible investment

Kaizen Tools

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Kaizen Tools

1bdquoO‟ ndash

Opportunity

Tag

-Small Improvement - keeping in mind 1-30-300 triangle Avoid major stoppage

by proactive methods

- Structured process for Involvement Registration and tracking of every small

improvement

2 Gemba Kaizen - Focused work station improvement for elimination of waste - Improvementsowned by associates

3 5 S Activities- Seiri Seiton Seiso Seiketsu Shitsuke Disciplined approach for lean

management - Foundation for JIT Develop culture of discipline

4 7 Step Project

-Quality improvement projects taken from PPM chart Customer complaint

-Team work for resolving through 7 step structured process ( 5W1H CEdac

chips 5 Why root cause )

5Kobetsu

Kaizen

-Focused improvement under taken for quality waste elimination ( Kit

improvement )

6Material Feed

System

- Inventory control through 5 S 2 Bin System Movement reduction Linkage

upto supplier order )

7Layout

Modification

-Global layout with assembly at centre amp local layout in form of feeding system

-U shape layouts for synchronization of flow and inventory control Improve

material handling

8 One Piece Flow- Step by step reduction in inventory with final aim of JIT ( Zero - Breakdown

Accident Defect)

9 Model Machine

-Activities include -1S 2S Transparency MISER to improve availability

-OEE improvement through EYE chart 3S 3M chart 5S Before and After

monitoring each week

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10 Eye Chart-7 Step problem Pokayoke etc are sourced from these OEE charts

-Common chart for all BUs to note down quality defect

11 SMED

-Reduction in set up time by study of set up change activities video film

-Separating internal and external activities Modifications in fixtures auto

clamping etc

12 MISER- M-minimize I- improvise S- simplify E- eliminate R- reduce --- Continuous

improvement

13 POKAYOKE

- Failsafing for operator‟s un-intentional mistake and total quality

improvement

- Cost reduction by attacking poor quality kit shortages handling

improvement

14IFC ( Initial

Flow Control)

- Making a list of improvements by reviewing quality problems and customer

complaint

- These points will be used for ordering new machines or making

improvements in new product

15 KANBAN- Consumption based material procurement system Ensures availability of

material with minimum inventory

16bdquoO‟ Tag

Campaign

- To increase awareness for Safety PokaYoke Dirty Difficult Danger and

Deterioration

17 Office Kaizen- Apply kaizen tools for increasing effectiveness and reduce delays ( quick

response )

18 Training-Training for acquiring new skills at Gemba Improves employees on

continuous basis

Th f f f h l f t t ib t d b

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19 PQCD MoP

- These are measures of performance for whole factory contributed by

individual business units

- Review and correction is needed every month in 5S Before After chart

20JOHARI

WINDOW

-This technique is used to identify root causes in human elements while

solving problems using accumulated knowledge skills developed in a

individual This technique is based on communication in two entities in open

environment amp positive attitude towards problem resolution

21

BMT (

Behavioral

Modulation

Technique)

To impart skills leading to increase of productivity of employees and

motivate them

22 Recognition

Recognition is most important for any human being In kaizen activities we

take care of appreciating every improvement either by individual or by team

The theme is ldquoMaking everybody a herordquo There are 44 ways of appreciatingemployees without actual monitory gains or amount

23 Turbo Kaizen

- Idea generation is done through Turbo Kaizen amp implemented using Kaizen

tools

-Kaizen activities help faster implementation of cost saving ideas

24 Ergonomics

Ergonomics was coined from the Greek words ergon (meaning work) and

nomos (meaning rules) ldquo Fit the task to the person not the person to the

taskldquo

A good way to understand what ergonomics means is to think about the term

user-friendly

25 Karakuri

Machine layout is modified in such a manner that flow of material from one

machine to other machine is maintained without energy consumption by

taking advantage gravity

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Welcome

to Presentation

onOFFICE KAIZEN

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- Why Office Kaizen What are its‟ benefits

bull To improve productivity efficiency in the administrative functions andidentify and eliminate losses This includes analyzing processes andprocedures towards increased office automation

Benefits

bull Involvement of all people in support functions for focusing on betterplant performance

bull Reduction in administrative costs - Reduced inventory carrying cost

bull Better utilized work area - Reduce repetitive work

bull Motivate people in support areas - Multiskilling in support areas

bull Some evident results are- Reduced inventory levels in all parts of the supply chain

- Reduction in number of files

- Reduction of overhead costs (to include cost of non-productionnoncapital equipment)

- Productivity of people in support functions

- Breakdown of office equipment - Reduced manpower- Customer complaints due to logistics

- Expenses due to emergency dispatchespurchases

- Clean and pleasant work environment

d fi i ffi i16

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- How to define P Q C D S M in Office Kaizen

bull Each company will have to define for themselves looking at all losses which affect plantperformance

These are some examples

bull P ndash Production output lost due to want of material

ndash Manpower productivity

ndash Production output lost due to want of tools

bull Q ndash Mistakes in preparation of cheques bills invoices payroll

ndash Customer returnswarranty attributable to BOPs

ndash Rejectionrework in BOP‟sjob work

ndash Office area rework

bull C ndash Buying costunit produced

ndash Cost of logistics ndash inboundoutbound

ndash Cost of carrying inventory ndash Cost of communication

ndash Demurrage costs

bull D ndash Logistics losses(Delay in loadingunloading)

ndash Delay in delivery due to any of the support functions

ndash Delay in payments to suppliers

ndash Delay in information

bull S ndash Safety in material handlingstoreslogistics

ndash Safety of soft and hard databull M ndash Number of kaizens in office areas

H t t t ffi K i 16

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- How to start office Kaizen

Steps followed are

- Providing awareness about office Kaizen to all support departments

- Helping them to identify P Q C D S M in each function in relation to plantperformance

- Identify the scope for improvement in each function- Collect relevant data

- Help them to solve problems in their Circles Teams

- Make up an activity board where progress is monitored on both sides ndash results andactions along with Kaizens

How to identify losses in office Kaizen

In each functional area identify the losses separately and add them up to build up amaster plan for Office Kaizen For example

- office equipment breakdown

- communication channel breakdown telephone and fax lines

- time spent on retrieval of information

- non availability of correct on line stock status

- customer complaints due to logistics

- expenses on emergency dispatchespurchases- cost reduction on non-productionnon capital items

H t l t K b t K i t i f Offi K i 16

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- How to select Kobetsu Kaizen topics from Office Kaizen

Kobetsu Kaizen topics are selected aiming at --

- Inventory reduction- Lead time reduction of critical processes

- Motion amp space losses

- retrieval time reduction

- reducing or eliminating office work flow stagnation

- equalizing the work load

- analyzing for bdquono material‟ areas and improving them

- Improving the office efficiency

ndash By eliminating the time loss on retrieval of information

ndash By achieving zero breakdown of office equipment like telephoneand fax Lines Xerox machine etc

PPM Ch t IN OFFICE16

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- PPM Chart IN OFFICENov Dec Jan Feb Mar

96667 136667 110000 93333 1366

56 46 153 46

April May June July Aug

58333

90

Defects

Defects Expressed in 5W 1H

Fassion1 2 3 4 5 OF

S U N D A Y

8 9 10 11 12 OF

S U N D A Y

15 16 17 18 19 OF

S U N D A Y

22 23 24 25 26 OF

S U N D A Y

29 30

Total

Defect

s

PPM

1 BILL OF MATERIAL CHANGE 0 0 0 0 0

2 SUPPLIER FAULT 0 1 0 1 0 1 1 0 1 2 1 0 2 0 0 0 6 16 533

3 BUYER FAULT 0 0 0 0 0 0

4ENGINE PREPONED ADDITIONAL ENGINE 0 0 0 0 0 0 0

5 RRP-REQT RPORT PROBLEM 0 0 0 0 0 0 0

6 STOCK DESCRIPANCY 0 0 0 0 0 0 0

7 QUALITY SOURCING ISSUES 0 0 0 0 0 0 0 1 05 1666

8 DELAY GRR POSTING 0 0 0 0 0

9 TRANSPORTATION PROBLEM 0 0 0 1 0 1

Total Defects 0 0 0 0 0 0 0 1 0 1 1 1 0 0 1 0 1 2 1 0 0 0 3 0 0 0 0 0 0 6 0 175 583

0 0 0 0 0 0 0 3 3 3 3

0 3 3 3 3

3 3 3 3

3 3 3 3

0 0 3 3 3 3

0 3 3 3 3

6 6 6 7

3 3 3 3

0 0 0 8 3 3 3

0 0 0 0 0 0 2 0 0 0 0

0

Number of active parts for a month=300 NOS

Defects Per Million

Weekly PPM 0 5 5 6

2 2 2 2

2 2 2 2

0

What Short of material while Pulli Why Various reasons as above

Where In the Store Who Kanban process owener(store person)

When While Kanban Pulling How During routine work

MONTHLY

Sr

no

MONTHLY PP

Month

PPM

Kaizen

DATE

Month

PPM

Kaizen

Daily PPM Value for Feb - 2001

0

4000

8000

12000

16000

20000

24000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30Date

P P M

V a l u e

Weekly PPM Value

0

500

1000

1500

2000

2500

1 2 3 4 5

Week P P M

M P T bl IN OFFICE16

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- MoP Table IN OFFICEHuman Resources MOP summary

May02 Jun 02 Jul02 Aug 02 Sep02 Oct 02 Nov 02 Dec 02 Jan03 Feb03

Productivity (P)

Actual 6915 6546 4989 5806 5645 4879 5056 4746 5308 5158

Desired 50 50 50 50 50 50 50 50 50 50

Actual 300 250 150 250 250 200 150 150 175 225 450

Desired 200 200 200 200 200 200 200 200 200 200 200

Quality (Q)

Actual 76

Desired(Tar et)

80

Actual 12th 10th 12th 12th 10th 10th 10th 10th 9th 8th

Desired 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th

Actual 9th 7th 7th 8th 8th 7th 7th 7th 7th 6th

Desired 8th 7th 6th 6th 6th 6th 6th 6th 6th 6th 6th

Actual 5th 5th 5th 5th 5th 5th 5th 5th 5th 4th 5th

Desired 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th

Actual 0 1 0 1 1 1 0 1 1 1 2

Desired 0 0 0 0 0 0 0 0 0 0 0

BEFORE AFTER 5S

RESULT MONITORActual

DeasiredApr02

AFTER 5S

PeopleEngineDay

HRFE Score (Yearly

measure) (Measured one in a year)

Delivery (D)

Monthly Report Submission

Safety Incidents (S)

No of Accidents Month

CPS Report

Monthly headcount data

No of people involved in

community Welfare

- Kaizen Projects in Offices

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HR

bull Improve employee data adequacy

bull Transfer of old PF accountbull Consolidation of banks for salary payment

bull Safety on road Safety goggles

bull Safety gates on shop floors

bull Pokayokes on accidents ( Radial drills Signs on walkways )

bull Prevention of epidemic diseases

bull Canteen Improvement ndash Kanban for material

- Energy saving

- Improve ventilation and lighting

- Roof cooling by purified drainage

water

- Kaizen Projects in Offices

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HR

bull Improvement in Health awareness ( check up Lectures

De addiction campsbull Bench marking visits to other factories

bull Recognition policy

bull Participation in intra company competition

bull Safety poster competition

bull ldquoOrdquo tag campaign for safety

bull ATM counter bank facility at gate

bull Prize distribution by Union leaders

bull Letter to family for good work

bull Proper lighting and ventilation at workplace

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bull Poka-yoke (pronounced POH-kah YOH-kayldquo ) bull Japanese words poka (inadvertent mistake) and yoke

(prevent) was invented by Shigeo Shingo in the 1960s

bull The essential idea of poka-yoke is to design your process so

that mistakes are impossible or at least easily detected and

corrected

About Shigeo Shingohelliphelliphellip

bull A leading proponent of statistical process control

bull Became frustrated with the statistical approach

bull Statistical sampling implies that some products to gountested with the result that some rate of defects would

always reach the customer

About POKA YOKEhelliphelliphelliphellip

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bull Shingo was communicated of a problem inldquoYamada Electric plantrdquo in 1961

bull A small switch with two push-buttons supported by two

springs occasionally the worker assembling the switch would

forget to insert a spring under each push-button

bull Sometimes the error would not be discovered until the unitreached a customer

bull Factory would have to dispatch an engineer to the customer

site to disassemble the switch insert the missing spring and

re-assemble the switch

bull This problem of the missing spring was both costly andembarrassing

bull Despite everyones best intentions the missing spring problem

would eventually re-appear

Birth of POKA YOKE helliphelliphellip

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Pokayoke ActionError Has

Occurred

Detection

Is Made

Defect

Is

Signaled Control

Feedback

GivenProcess

Is

Stopped

POKA YOKE Action

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bull A system for organising work that prevents the error

bull Excludes any risk of error even by the beginner

bull Allows everyone to operate without mistake

bull Prevents error that are about to occur

bull Inspection time will be minimised

What is ldquoMistake Proofing ldquo Why should we do it

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Mistake -Proof Approach

List of Problems ndash Select

Form a Team

Brain-writing at Gemba

Why-Why Analysis leads to root cause

Kaizens on root cause

Establish Activities to maintain standard

Work Towards Low Cost Automation

Plan

Do

Check

Act

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What - A tool that helps to eliminate inadvertent human errors

- Helps to build quality in product at sourceWhere - Is helpful in highly repetitive situations High Productivity areas

may lead to mistakes sometimes

(Unintentional errors - Forgetting Ignoring Inattentiveness )

eg - Complex processes Repetitive assembly mistakes

When - Sourced from Safety issues Driven by known quality problems

Customer complaints RFT P Tags BIS issues FMEA

Why - Builds quality in the product waste elimination

How - Pokayoke is often LOW COST or NO COST solutions

POKA YOKE helps in case of unintentional mistakes and not mischiefs

Pokayoke - Fail safe in 5 W 1 H

Kaizen

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Welcome

Learning Session on

Model Machine

Objectives

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3693

j

To Learn

bull Concept of Model Machine - P - PC Balance

bull Why Model Machine

bull 8 Major losses

bull OEE Calculations

bull How to Develop

bull Documentation

bull Examples

Wh M d l M hi

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Why Model MachineProfit = Sales ndash Cost

Profit = Sales ndash Mfg Cost

To reduce manufacturing cost needs optimumutilization of all assets ie resources

Measurement of effective utilization of all

resources is Overall Equipment Efficiency( OEE)

(09 09 09 = 73)

Why Model Machine

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Profit = Total sales ndash Total cost

Why Model Machine

Profit = Selling Prices - Input Mfg cost up

( competition ) ( Increasing cost of input resources )

To maintain improve profit hellip Solution is ldquo Reduce Mfg costrdquo

Improve Asset Utilization

Improve Overall Equipment ldquoEfficiencyrdquo (OEE)

OEE = Availability x Performance x Quality

Our goal should be to improve OEE gt 85

world class Benchmark = 95

Why Model Machine

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Why Model Machine

If

OEE = Mfg Cost

Mfg cost = profit

eg Consider a MC of cost Rs 5 cr

Utilization in Japan china ndash OEE 90Utilization in India ndash OEE 45 (45 7080)So product cost in India will be 2 times than the cost in

china

Key is improve to OEEAchievement on 8 Model Machines - OEE improved

from 45 to 75 85

P - PC Balance

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P PC Balance

Production Vs Production Capability

Engine+Parts Equipment + MC + Test Bed

Model Machine

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Factory Within Factory is BU

BU Within BU is MODEL MC

WHY Model MC

To deliver -Cost Effective Product to ldquoInternalrdquo amp Externalrdquo Customer

Zero - Breakdown

By Achieving - Zero - Accident

Zero - Defect

To Success is ldquoImprove OEErdquo (Overall Equipment Effectiveness)

5 - M‟S OF PRODUCTION

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bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

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NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

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Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

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Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

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What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

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Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

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TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

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INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

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TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

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What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

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TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

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TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

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Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

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US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

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g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

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TPSLean Principles

Click to proceed

TPSLean Principles

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TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

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Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

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Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

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Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

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Principle 2 Takt time

Takt Time

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bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

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Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

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Principle 3

Non-value added activities

What are Non-value added activities

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bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

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1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

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bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

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bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

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Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

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bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

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bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

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bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

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bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

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Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

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bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

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bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

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ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

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Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

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Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

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bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

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bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

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bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

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Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

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PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

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bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

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bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

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11

KAIZEN

Continuous progress through People Involvement

KAI ndash Change ZEN ndash For Better

KAIZEN ndash Change For Better

ldquoContinual Improvementrdquo

UnsafeAction

Near Misses

Fatal

Accident1

30

300 Problem in bdquoseed‟

stage(Signals

ignored)

Problem in bdquosaplingrsquo stage

Problem in bdquotree‟ stage

(Disasters at workplace)

Problems at the WorkPlace

5 bdquoS‟ F d ti

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Kaizen Museum

1 Seiri - Sorting

2 Seiton - Systematic Arrangement

3 Seiso - Spic and Span TPM

(Cleaning with inspection)

4 Seiketsu- Standardized workplace5 Shitsuke- Self Discipline

- 5 bdquoS‟ as Foundation

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5 S linked with productivity

Step 1 Awareness revolution

( prerequisite for factory improvement )

Step 2 The 5 S‟s

( foundation for factory improvement )

Step 3 Flow manufacturing

Step 4 Leveling

Step 5 standard operations

Just - in - time

Multi

process

handling

Changeover

Human

automation

Kanban

Quality

assurance

Maintenance

amp Safety

M a n p o w e r o p t i m i z a t i o n V

i s u al M an

a g em en t

5 S - Objectives

G b K i 3 bdquoG‟ I t

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India Limited

Gemba - Work place

eg mc amp surroundings areatable amp surroundings

Assembly Station test cell etc

bull Gembutsu - Problem piece

eg All objectives related to improvement in Gemba

bull Genjitsu - Real time

eg Observe the things

while happening or at the earliest

after happening for getting the facts real information

ldquoGemba Kaizenrdquo means - Improvement at yourwork place Team is important in Gemba Kaizen Look at the work place to find out avenues

for bdquoKaizen‟ through 3 bdquoD‟ approach

- Gemba Kaizen -3 bdquoG‟s Importance

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India Limited

How to start - For initial work Use bdquo3D‟ approach

ndash Dirty - oil coolant air leakages

- chips and burr on floor- Accumulated dust etc

ndash Dangerous - Unsafe working conditions- Movements

ndash Difficult - Difficult to move- lift assembly

- not ergonomical situations

Results in employee satisfaction amp improved morale

Makes job easier simpler safer and faster

Increases efficiency Happier Customer

Overall improvement of organization

- To Start with

I i amp K i

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India Limited

Innovation amp Kaizen

1

30

300

Kaizen is a small improvement carried out by the person in his own workplace

with nil or negligible investment

Kaizen Tools

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Kaizen Tools

1bdquoO‟ ndash

Opportunity

Tag

-Small Improvement - keeping in mind 1-30-300 triangle Avoid major stoppage

by proactive methods

- Structured process for Involvement Registration and tracking of every small

improvement

2 Gemba Kaizen - Focused work station improvement for elimination of waste - Improvementsowned by associates

3 5 S Activities- Seiri Seiton Seiso Seiketsu Shitsuke Disciplined approach for lean

management - Foundation for JIT Develop culture of discipline

4 7 Step Project

-Quality improvement projects taken from PPM chart Customer complaint

-Team work for resolving through 7 step structured process ( 5W1H CEdac

chips 5 Why root cause )

5Kobetsu

Kaizen

-Focused improvement under taken for quality waste elimination ( Kit

improvement )

6Material Feed

System

- Inventory control through 5 S 2 Bin System Movement reduction Linkage

upto supplier order )

7Layout

Modification

-Global layout with assembly at centre amp local layout in form of feeding system

-U shape layouts for synchronization of flow and inventory control Improve

material handling

8 One Piece Flow- Step by step reduction in inventory with final aim of JIT ( Zero - Breakdown

Accident Defect)

9 Model Machine

-Activities include -1S 2S Transparency MISER to improve availability

-OEE improvement through EYE chart 3S 3M chart 5S Before and After

monitoring each week

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10 Eye Chart-7 Step problem Pokayoke etc are sourced from these OEE charts

-Common chart for all BUs to note down quality defect

11 SMED

-Reduction in set up time by study of set up change activities video film

-Separating internal and external activities Modifications in fixtures auto

clamping etc

12 MISER- M-minimize I- improvise S- simplify E- eliminate R- reduce --- Continuous

improvement

13 POKAYOKE

- Failsafing for operator‟s un-intentional mistake and total quality

improvement

- Cost reduction by attacking poor quality kit shortages handling

improvement

14IFC ( Initial

Flow Control)

- Making a list of improvements by reviewing quality problems and customer

complaint

- These points will be used for ordering new machines or making

improvements in new product

15 KANBAN- Consumption based material procurement system Ensures availability of

material with minimum inventory

16bdquoO‟ Tag

Campaign

- To increase awareness for Safety PokaYoke Dirty Difficult Danger and

Deterioration

17 Office Kaizen- Apply kaizen tools for increasing effectiveness and reduce delays ( quick

response )

18 Training-Training for acquiring new skills at Gemba Improves employees on

continuous basis

Th f f f h l f t t ib t d b

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19 PQCD MoP

- These are measures of performance for whole factory contributed by

individual business units

- Review and correction is needed every month in 5S Before After chart

20JOHARI

WINDOW

-This technique is used to identify root causes in human elements while

solving problems using accumulated knowledge skills developed in a

individual This technique is based on communication in two entities in open

environment amp positive attitude towards problem resolution

21

BMT (

Behavioral

Modulation

Technique)

To impart skills leading to increase of productivity of employees and

motivate them

22 Recognition

Recognition is most important for any human being In kaizen activities we

take care of appreciating every improvement either by individual or by team

The theme is ldquoMaking everybody a herordquo There are 44 ways of appreciatingemployees without actual monitory gains or amount

23 Turbo Kaizen

- Idea generation is done through Turbo Kaizen amp implemented using Kaizen

tools

-Kaizen activities help faster implementation of cost saving ideas

24 Ergonomics

Ergonomics was coined from the Greek words ergon (meaning work) and

nomos (meaning rules) ldquo Fit the task to the person not the person to the

taskldquo

A good way to understand what ergonomics means is to think about the term

user-friendly

25 Karakuri

Machine layout is modified in such a manner that flow of material from one

machine to other machine is maintained without energy consumption by

taking advantage gravity

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Welcome

to Presentation

onOFFICE KAIZEN

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- Why Office Kaizen What are its‟ benefits

bull To improve productivity efficiency in the administrative functions andidentify and eliminate losses This includes analyzing processes andprocedures towards increased office automation

Benefits

bull Involvement of all people in support functions for focusing on betterplant performance

bull Reduction in administrative costs - Reduced inventory carrying cost

bull Better utilized work area - Reduce repetitive work

bull Motivate people in support areas - Multiskilling in support areas

bull Some evident results are- Reduced inventory levels in all parts of the supply chain

- Reduction in number of files

- Reduction of overhead costs (to include cost of non-productionnoncapital equipment)

- Productivity of people in support functions

- Breakdown of office equipment - Reduced manpower- Customer complaints due to logistics

- Expenses due to emergency dispatchespurchases

- Clean and pleasant work environment

d fi i ffi i16

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- How to define P Q C D S M in Office Kaizen

bull Each company will have to define for themselves looking at all losses which affect plantperformance

These are some examples

bull P ndash Production output lost due to want of material

ndash Manpower productivity

ndash Production output lost due to want of tools

bull Q ndash Mistakes in preparation of cheques bills invoices payroll

ndash Customer returnswarranty attributable to BOPs

ndash Rejectionrework in BOP‟sjob work

ndash Office area rework

bull C ndash Buying costunit produced

ndash Cost of logistics ndash inboundoutbound

ndash Cost of carrying inventory ndash Cost of communication

ndash Demurrage costs

bull D ndash Logistics losses(Delay in loadingunloading)

ndash Delay in delivery due to any of the support functions

ndash Delay in payments to suppliers

ndash Delay in information

bull S ndash Safety in material handlingstoreslogistics

ndash Safety of soft and hard databull M ndash Number of kaizens in office areas

H t t t ffi K i 16

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- How to start office Kaizen

Steps followed are

- Providing awareness about office Kaizen to all support departments

- Helping them to identify P Q C D S M in each function in relation to plantperformance

- Identify the scope for improvement in each function- Collect relevant data

- Help them to solve problems in their Circles Teams

- Make up an activity board where progress is monitored on both sides ndash results andactions along with Kaizens

How to identify losses in office Kaizen

In each functional area identify the losses separately and add them up to build up amaster plan for Office Kaizen For example

- office equipment breakdown

- communication channel breakdown telephone and fax lines

- time spent on retrieval of information

- non availability of correct on line stock status

- customer complaints due to logistics

- expenses on emergency dispatchespurchases- cost reduction on non-productionnon capital items

H t l t K b t K i t i f Offi K i 16

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- How to select Kobetsu Kaizen topics from Office Kaizen

Kobetsu Kaizen topics are selected aiming at --

- Inventory reduction- Lead time reduction of critical processes

- Motion amp space losses

- retrieval time reduction

- reducing or eliminating office work flow stagnation

- equalizing the work load

- analyzing for bdquono material‟ areas and improving them

- Improving the office efficiency

ndash By eliminating the time loss on retrieval of information

ndash By achieving zero breakdown of office equipment like telephoneand fax Lines Xerox machine etc

PPM Ch t IN OFFICE16

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- PPM Chart IN OFFICENov Dec Jan Feb Mar

96667 136667 110000 93333 1366

56 46 153 46

April May June July Aug

58333

90

Defects

Defects Expressed in 5W 1H

Fassion1 2 3 4 5 OF

S U N D A Y

8 9 10 11 12 OF

S U N D A Y

15 16 17 18 19 OF

S U N D A Y

22 23 24 25 26 OF

S U N D A Y

29 30

Total

Defect

s

PPM

1 BILL OF MATERIAL CHANGE 0 0 0 0 0

2 SUPPLIER FAULT 0 1 0 1 0 1 1 0 1 2 1 0 2 0 0 0 6 16 533

3 BUYER FAULT 0 0 0 0 0 0

4ENGINE PREPONED ADDITIONAL ENGINE 0 0 0 0 0 0 0

5 RRP-REQT RPORT PROBLEM 0 0 0 0 0 0 0

6 STOCK DESCRIPANCY 0 0 0 0 0 0 0

7 QUALITY SOURCING ISSUES 0 0 0 0 0 0 0 1 05 1666

8 DELAY GRR POSTING 0 0 0 0 0

9 TRANSPORTATION PROBLEM 0 0 0 1 0 1

Total Defects 0 0 0 0 0 0 0 1 0 1 1 1 0 0 1 0 1 2 1 0 0 0 3 0 0 0 0 0 0 6 0 175 583

0 0 0 0 0 0 0 3 3 3 3

0 3 3 3 3

3 3 3 3

3 3 3 3

0 0 3 3 3 3

0 3 3 3 3

6 6 6 7

3 3 3 3

0 0 0 8 3 3 3

0 0 0 0 0 0 2 0 0 0 0

0

Number of active parts for a month=300 NOS

Defects Per Million

Weekly PPM 0 5 5 6

2 2 2 2

2 2 2 2

0

What Short of material while Pulli Why Various reasons as above

Where In the Store Who Kanban process owener(store person)

When While Kanban Pulling How During routine work

MONTHLY

Sr

no

MONTHLY PP

Month

PPM

Kaizen

DATE

Month

PPM

Kaizen

Daily PPM Value for Feb - 2001

0

4000

8000

12000

16000

20000

24000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30Date

P P M

V a l u e

Weekly PPM Value

0

500

1000

1500

2000

2500

1 2 3 4 5

Week P P M

M P T bl IN OFFICE16

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- MoP Table IN OFFICEHuman Resources MOP summary

May02 Jun 02 Jul02 Aug 02 Sep02 Oct 02 Nov 02 Dec 02 Jan03 Feb03

Productivity (P)

Actual 6915 6546 4989 5806 5645 4879 5056 4746 5308 5158

Desired 50 50 50 50 50 50 50 50 50 50

Actual 300 250 150 250 250 200 150 150 175 225 450

Desired 200 200 200 200 200 200 200 200 200 200 200

Quality (Q)

Actual 76

Desired(Tar et)

80

Actual 12th 10th 12th 12th 10th 10th 10th 10th 9th 8th

Desired 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th

Actual 9th 7th 7th 8th 8th 7th 7th 7th 7th 6th

Desired 8th 7th 6th 6th 6th 6th 6th 6th 6th 6th 6th

Actual 5th 5th 5th 5th 5th 5th 5th 5th 5th 4th 5th

Desired 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th

Actual 0 1 0 1 1 1 0 1 1 1 2

Desired 0 0 0 0 0 0 0 0 0 0 0

BEFORE AFTER 5S

RESULT MONITORActual

DeasiredApr02

AFTER 5S

PeopleEngineDay

HRFE Score (Yearly

measure) (Measured one in a year)

Delivery (D)

Monthly Report Submission

Safety Incidents (S)

No of Accidents Month

CPS Report

Monthly headcount data

No of people involved in

community Welfare

- Kaizen Projects in Offices

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HR

bull Improve employee data adequacy

bull Transfer of old PF accountbull Consolidation of banks for salary payment

bull Safety on road Safety goggles

bull Safety gates on shop floors

bull Pokayokes on accidents ( Radial drills Signs on walkways )

bull Prevention of epidemic diseases

bull Canteen Improvement ndash Kanban for material

- Energy saving

- Improve ventilation and lighting

- Roof cooling by purified drainage

water

- Kaizen Projects in Offices

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HR

bull Improvement in Health awareness ( check up Lectures

De addiction campsbull Bench marking visits to other factories

bull Recognition policy

bull Participation in intra company competition

bull Safety poster competition

bull ldquoOrdquo tag campaign for safety

bull ATM counter bank facility at gate

bull Prize distribution by Union leaders

bull Letter to family for good work

bull Proper lighting and ventilation at workplace

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bull Poka-yoke (pronounced POH-kah YOH-kayldquo ) bull Japanese words poka (inadvertent mistake) and yoke

(prevent) was invented by Shigeo Shingo in the 1960s

bull The essential idea of poka-yoke is to design your process so

that mistakes are impossible or at least easily detected and

corrected

About Shigeo Shingohelliphelliphellip

bull A leading proponent of statistical process control

bull Became frustrated with the statistical approach

bull Statistical sampling implies that some products to gountested with the result that some rate of defects would

always reach the customer

About POKA YOKEhelliphelliphelliphellip

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bull Shingo was communicated of a problem inldquoYamada Electric plantrdquo in 1961

bull A small switch with two push-buttons supported by two

springs occasionally the worker assembling the switch would

forget to insert a spring under each push-button

bull Sometimes the error would not be discovered until the unitreached a customer

bull Factory would have to dispatch an engineer to the customer

site to disassemble the switch insert the missing spring and

re-assemble the switch

bull This problem of the missing spring was both costly andembarrassing

bull Despite everyones best intentions the missing spring problem

would eventually re-appear

Birth of POKA YOKE helliphelliphellip

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Pokayoke ActionError Has

Occurred

Detection

Is Made

Defect

Is

Signaled Control

Feedback

GivenProcess

Is

Stopped

POKA YOKE Action

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bull A system for organising work that prevents the error

bull Excludes any risk of error even by the beginner

bull Allows everyone to operate without mistake

bull Prevents error that are about to occur

bull Inspection time will be minimised

What is ldquoMistake Proofing ldquo Why should we do it

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Mistake -Proof Approach

List of Problems ndash Select

Form a Team

Brain-writing at Gemba

Why-Why Analysis leads to root cause

Kaizens on root cause

Establish Activities to maintain standard

Work Towards Low Cost Automation

Plan

Do

Check

Act

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What - A tool that helps to eliminate inadvertent human errors

- Helps to build quality in product at sourceWhere - Is helpful in highly repetitive situations High Productivity areas

may lead to mistakes sometimes

(Unintentional errors - Forgetting Ignoring Inattentiveness )

eg - Complex processes Repetitive assembly mistakes

When - Sourced from Safety issues Driven by known quality problems

Customer complaints RFT P Tags BIS issues FMEA

Why - Builds quality in the product waste elimination

How - Pokayoke is often LOW COST or NO COST solutions

POKA YOKE helps in case of unintentional mistakes and not mischiefs

Pokayoke - Fail safe in 5 W 1 H

Kaizen

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Welcome

Learning Session on

Model Machine

Objectives

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j

To Learn

bull Concept of Model Machine - P - PC Balance

bull Why Model Machine

bull 8 Major losses

bull OEE Calculations

bull How to Develop

bull Documentation

bull Examples

Wh M d l M hi

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Why Model MachineProfit = Sales ndash Cost

Profit = Sales ndash Mfg Cost

To reduce manufacturing cost needs optimumutilization of all assets ie resources

Measurement of effective utilization of all

resources is Overall Equipment Efficiency( OEE)

(09 09 09 = 73)

Why Model Machine

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Profit = Total sales ndash Total cost

Why Model Machine

Profit = Selling Prices - Input Mfg cost up

( competition ) ( Increasing cost of input resources )

To maintain improve profit hellip Solution is ldquo Reduce Mfg costrdquo

Improve Asset Utilization

Improve Overall Equipment ldquoEfficiencyrdquo (OEE)

OEE = Availability x Performance x Quality

Our goal should be to improve OEE gt 85

world class Benchmark = 95

Why Model Machine

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Why Model Machine

If

OEE = Mfg Cost

Mfg cost = profit

eg Consider a MC of cost Rs 5 cr

Utilization in Japan china ndash OEE 90Utilization in India ndash OEE 45 (45 7080)So product cost in India will be 2 times than the cost in

china

Key is improve to OEEAchievement on 8 Model Machines - OEE improved

from 45 to 75 85

P - PC Balance

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P PC Balance

Production Vs Production Capability

Engine+Parts Equipment + MC + Test Bed

Model Machine

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Factory Within Factory is BU

BU Within BU is MODEL MC

WHY Model MC

To deliver -Cost Effective Product to ldquoInternalrdquo amp Externalrdquo Customer

Zero - Breakdown

By Achieving - Zero - Accident

Zero - Defect

To Success is ldquoImprove OEErdquo (Overall Equipment Effectiveness)

5 - M‟S OF PRODUCTION

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bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

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NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

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Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

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Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

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What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

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Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

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TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

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INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

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TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

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What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

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TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

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TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

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Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

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US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

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g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

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TPSLean Principles

Click to proceed

TPSLean Principles

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TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

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Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

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Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

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Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

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Principle 2 Takt time

Takt Time

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bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

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Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

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Principle 3

Non-value added activities

What are Non-value added activities

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bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

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1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

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bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

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bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

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Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

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bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

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bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

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bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

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bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

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Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

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bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

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bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

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ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

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bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

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Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

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Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

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bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

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bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

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bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

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Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

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PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

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bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

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bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

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842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 1293India Limited

Kaizen Museum

1 Seiri - Sorting

2 Seiton - Systematic Arrangement

3 Seiso - Spic and Span TPM

(Cleaning with inspection)

4 Seiketsu- Standardized workplace5 Shitsuke- Self Discipline

- 5 bdquoS‟ as Foundation

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 1393India Limited

5 S linked with productivity

Step 1 Awareness revolution

( prerequisite for factory improvement )

Step 2 The 5 S‟s

( foundation for factory improvement )

Step 3 Flow manufacturing

Step 4 Leveling

Step 5 standard operations

Just - in - time

Multi

process

handling

Changeover

Human

automation

Kanban

Quality

assurance

Maintenance

amp Safety

M a n p o w e r o p t i m i z a t i o n V

i s u al M an

a g em en t

5 S - Objectives

G b K i 3 bdquoG‟ I t

842019 Presentation on TPS -JIT Kanban

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India Limited

Gemba - Work place

eg mc amp surroundings areatable amp surroundings

Assembly Station test cell etc

bull Gembutsu - Problem piece

eg All objectives related to improvement in Gemba

bull Genjitsu - Real time

eg Observe the things

while happening or at the earliest

after happening for getting the facts real information

ldquoGemba Kaizenrdquo means - Improvement at yourwork place Team is important in Gemba Kaizen Look at the work place to find out avenues

for bdquoKaizen‟ through 3 bdquoD‟ approach

- Gemba Kaizen -3 bdquoG‟s Importance

842019 Presentation on TPS -JIT Kanban

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India Limited

How to start - For initial work Use bdquo3D‟ approach

ndash Dirty - oil coolant air leakages

- chips and burr on floor- Accumulated dust etc

ndash Dangerous - Unsafe working conditions- Movements

ndash Difficult - Difficult to move- lift assembly

- not ergonomical situations

Results in employee satisfaction amp improved morale

Makes job easier simpler safer and faster

Increases efficiency Happier Customer

Overall improvement of organization

- To Start with

I i amp K i

842019 Presentation on TPS -JIT Kanban

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India Limited

Innovation amp Kaizen

1

30

300

Kaizen is a small improvement carried out by the person in his own workplace

with nil or negligible investment

Kaizen Tools

842019 Presentation on TPS -JIT Kanban

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Kaizen Tools

1bdquoO‟ ndash

Opportunity

Tag

-Small Improvement - keeping in mind 1-30-300 triangle Avoid major stoppage

by proactive methods

- Structured process for Involvement Registration and tracking of every small

improvement

2 Gemba Kaizen - Focused work station improvement for elimination of waste - Improvementsowned by associates

3 5 S Activities- Seiri Seiton Seiso Seiketsu Shitsuke Disciplined approach for lean

management - Foundation for JIT Develop culture of discipline

4 7 Step Project

-Quality improvement projects taken from PPM chart Customer complaint

-Team work for resolving through 7 step structured process ( 5W1H CEdac

chips 5 Why root cause )

5Kobetsu

Kaizen

-Focused improvement under taken for quality waste elimination ( Kit

improvement )

6Material Feed

System

- Inventory control through 5 S 2 Bin System Movement reduction Linkage

upto supplier order )

7Layout

Modification

-Global layout with assembly at centre amp local layout in form of feeding system

-U shape layouts for synchronization of flow and inventory control Improve

material handling

8 One Piece Flow- Step by step reduction in inventory with final aim of JIT ( Zero - Breakdown

Accident Defect)

9 Model Machine

-Activities include -1S 2S Transparency MISER to improve availability

-OEE improvement through EYE chart 3S 3M chart 5S Before and After

monitoring each week

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httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 1893

10 Eye Chart-7 Step problem Pokayoke etc are sourced from these OEE charts

-Common chart for all BUs to note down quality defect

11 SMED

-Reduction in set up time by study of set up change activities video film

-Separating internal and external activities Modifications in fixtures auto

clamping etc

12 MISER- M-minimize I- improvise S- simplify E- eliminate R- reduce --- Continuous

improvement

13 POKAYOKE

- Failsafing for operator‟s un-intentional mistake and total quality

improvement

- Cost reduction by attacking poor quality kit shortages handling

improvement

14IFC ( Initial

Flow Control)

- Making a list of improvements by reviewing quality problems and customer

complaint

- These points will be used for ordering new machines or making

improvements in new product

15 KANBAN- Consumption based material procurement system Ensures availability of

material with minimum inventory

16bdquoO‟ Tag

Campaign

- To increase awareness for Safety PokaYoke Dirty Difficult Danger and

Deterioration

17 Office Kaizen- Apply kaizen tools for increasing effectiveness and reduce delays ( quick

response )

18 Training-Training for acquiring new skills at Gemba Improves employees on

continuous basis

Th f f f h l f t t ib t d b

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19 PQCD MoP

- These are measures of performance for whole factory contributed by

individual business units

- Review and correction is needed every month in 5S Before After chart

20JOHARI

WINDOW

-This technique is used to identify root causes in human elements while

solving problems using accumulated knowledge skills developed in a

individual This technique is based on communication in two entities in open

environment amp positive attitude towards problem resolution

21

BMT (

Behavioral

Modulation

Technique)

To impart skills leading to increase of productivity of employees and

motivate them

22 Recognition

Recognition is most important for any human being In kaizen activities we

take care of appreciating every improvement either by individual or by team

The theme is ldquoMaking everybody a herordquo There are 44 ways of appreciatingemployees without actual monitory gains or amount

23 Turbo Kaizen

- Idea generation is done through Turbo Kaizen amp implemented using Kaizen

tools

-Kaizen activities help faster implementation of cost saving ideas

24 Ergonomics

Ergonomics was coined from the Greek words ergon (meaning work) and

nomos (meaning rules) ldquo Fit the task to the person not the person to the

taskldquo

A good way to understand what ergonomics means is to think about the term

user-friendly

25 Karakuri

Machine layout is modified in such a manner that flow of material from one

machine to other machine is maintained without energy consumption by

taking advantage gravity

842019 Presentation on TPS -JIT Kanban

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Welcome

to Presentation

onOFFICE KAIZEN

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- Why Office Kaizen What are its‟ benefits

bull To improve productivity efficiency in the administrative functions andidentify and eliminate losses This includes analyzing processes andprocedures towards increased office automation

Benefits

bull Involvement of all people in support functions for focusing on betterplant performance

bull Reduction in administrative costs - Reduced inventory carrying cost

bull Better utilized work area - Reduce repetitive work

bull Motivate people in support areas - Multiskilling in support areas

bull Some evident results are- Reduced inventory levels in all parts of the supply chain

- Reduction in number of files

- Reduction of overhead costs (to include cost of non-productionnoncapital equipment)

- Productivity of people in support functions

- Breakdown of office equipment - Reduced manpower- Customer complaints due to logistics

- Expenses due to emergency dispatchespurchases

- Clean and pleasant work environment

d fi i ffi i16

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- How to define P Q C D S M in Office Kaizen

bull Each company will have to define for themselves looking at all losses which affect plantperformance

These are some examples

bull P ndash Production output lost due to want of material

ndash Manpower productivity

ndash Production output lost due to want of tools

bull Q ndash Mistakes in preparation of cheques bills invoices payroll

ndash Customer returnswarranty attributable to BOPs

ndash Rejectionrework in BOP‟sjob work

ndash Office area rework

bull C ndash Buying costunit produced

ndash Cost of logistics ndash inboundoutbound

ndash Cost of carrying inventory ndash Cost of communication

ndash Demurrage costs

bull D ndash Logistics losses(Delay in loadingunloading)

ndash Delay in delivery due to any of the support functions

ndash Delay in payments to suppliers

ndash Delay in information

bull S ndash Safety in material handlingstoreslogistics

ndash Safety of soft and hard databull M ndash Number of kaizens in office areas

H t t t ffi K i 16

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- How to start office Kaizen

Steps followed are

- Providing awareness about office Kaizen to all support departments

- Helping them to identify P Q C D S M in each function in relation to plantperformance

- Identify the scope for improvement in each function- Collect relevant data

- Help them to solve problems in their Circles Teams

- Make up an activity board where progress is monitored on both sides ndash results andactions along with Kaizens

How to identify losses in office Kaizen

In each functional area identify the losses separately and add them up to build up amaster plan for Office Kaizen For example

- office equipment breakdown

- communication channel breakdown telephone and fax lines

- time spent on retrieval of information

- non availability of correct on line stock status

- customer complaints due to logistics

- expenses on emergency dispatchespurchases- cost reduction on non-productionnon capital items

H t l t K b t K i t i f Offi K i 16

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- How to select Kobetsu Kaizen topics from Office Kaizen

Kobetsu Kaizen topics are selected aiming at --

- Inventory reduction- Lead time reduction of critical processes

- Motion amp space losses

- retrieval time reduction

- reducing or eliminating office work flow stagnation

- equalizing the work load

- analyzing for bdquono material‟ areas and improving them

- Improving the office efficiency

ndash By eliminating the time loss on retrieval of information

ndash By achieving zero breakdown of office equipment like telephoneand fax Lines Xerox machine etc

PPM Ch t IN OFFICE16

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- PPM Chart IN OFFICENov Dec Jan Feb Mar

96667 136667 110000 93333 1366

56 46 153 46

April May June July Aug

58333

90

Defects

Defects Expressed in 5W 1H

Fassion1 2 3 4 5 OF

S U N D A Y

8 9 10 11 12 OF

S U N D A Y

15 16 17 18 19 OF

S U N D A Y

22 23 24 25 26 OF

S U N D A Y

29 30

Total

Defect

s

PPM

1 BILL OF MATERIAL CHANGE 0 0 0 0 0

2 SUPPLIER FAULT 0 1 0 1 0 1 1 0 1 2 1 0 2 0 0 0 6 16 533

3 BUYER FAULT 0 0 0 0 0 0

4ENGINE PREPONED ADDITIONAL ENGINE 0 0 0 0 0 0 0

5 RRP-REQT RPORT PROBLEM 0 0 0 0 0 0 0

6 STOCK DESCRIPANCY 0 0 0 0 0 0 0

7 QUALITY SOURCING ISSUES 0 0 0 0 0 0 0 1 05 1666

8 DELAY GRR POSTING 0 0 0 0 0

9 TRANSPORTATION PROBLEM 0 0 0 1 0 1

Total Defects 0 0 0 0 0 0 0 1 0 1 1 1 0 0 1 0 1 2 1 0 0 0 3 0 0 0 0 0 0 6 0 175 583

0 0 0 0 0 0 0 3 3 3 3

0 3 3 3 3

3 3 3 3

3 3 3 3

0 0 3 3 3 3

0 3 3 3 3

6 6 6 7

3 3 3 3

0 0 0 8 3 3 3

0 0 0 0 0 0 2 0 0 0 0

0

Number of active parts for a month=300 NOS

Defects Per Million

Weekly PPM 0 5 5 6

2 2 2 2

2 2 2 2

0

What Short of material while Pulli Why Various reasons as above

Where In the Store Who Kanban process owener(store person)

When While Kanban Pulling How During routine work

MONTHLY

Sr

no

MONTHLY PP

Month

PPM

Kaizen

DATE

Month

PPM

Kaizen

Daily PPM Value for Feb - 2001

0

4000

8000

12000

16000

20000

24000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30Date

P P M

V a l u e

Weekly PPM Value

0

500

1000

1500

2000

2500

1 2 3 4 5

Week P P M

M P T bl IN OFFICE16

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- MoP Table IN OFFICEHuman Resources MOP summary

May02 Jun 02 Jul02 Aug 02 Sep02 Oct 02 Nov 02 Dec 02 Jan03 Feb03

Productivity (P)

Actual 6915 6546 4989 5806 5645 4879 5056 4746 5308 5158

Desired 50 50 50 50 50 50 50 50 50 50

Actual 300 250 150 250 250 200 150 150 175 225 450

Desired 200 200 200 200 200 200 200 200 200 200 200

Quality (Q)

Actual 76

Desired(Tar et)

80

Actual 12th 10th 12th 12th 10th 10th 10th 10th 9th 8th

Desired 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th

Actual 9th 7th 7th 8th 8th 7th 7th 7th 7th 6th

Desired 8th 7th 6th 6th 6th 6th 6th 6th 6th 6th 6th

Actual 5th 5th 5th 5th 5th 5th 5th 5th 5th 4th 5th

Desired 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th

Actual 0 1 0 1 1 1 0 1 1 1 2

Desired 0 0 0 0 0 0 0 0 0 0 0

BEFORE AFTER 5S

RESULT MONITORActual

DeasiredApr02

AFTER 5S

PeopleEngineDay

HRFE Score (Yearly

measure) (Measured one in a year)

Delivery (D)

Monthly Report Submission

Safety Incidents (S)

No of Accidents Month

CPS Report

Monthly headcount data

No of people involved in

community Welfare

- Kaizen Projects in Offices

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HR

bull Improve employee data adequacy

bull Transfer of old PF accountbull Consolidation of banks for salary payment

bull Safety on road Safety goggles

bull Safety gates on shop floors

bull Pokayokes on accidents ( Radial drills Signs on walkways )

bull Prevention of epidemic diseases

bull Canteen Improvement ndash Kanban for material

- Energy saving

- Improve ventilation and lighting

- Roof cooling by purified drainage

water

- Kaizen Projects in Offices

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HR

bull Improvement in Health awareness ( check up Lectures

De addiction campsbull Bench marking visits to other factories

bull Recognition policy

bull Participation in intra company competition

bull Safety poster competition

bull ldquoOrdquo tag campaign for safety

bull ATM counter bank facility at gate

bull Prize distribution by Union leaders

bull Letter to family for good work

bull Proper lighting and ventilation at workplace

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bull Poka-yoke (pronounced POH-kah YOH-kayldquo ) bull Japanese words poka (inadvertent mistake) and yoke

(prevent) was invented by Shigeo Shingo in the 1960s

bull The essential idea of poka-yoke is to design your process so

that mistakes are impossible or at least easily detected and

corrected

About Shigeo Shingohelliphelliphellip

bull A leading proponent of statistical process control

bull Became frustrated with the statistical approach

bull Statistical sampling implies that some products to gountested with the result that some rate of defects would

always reach the customer

About POKA YOKEhelliphelliphelliphellip

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bull Shingo was communicated of a problem inldquoYamada Electric plantrdquo in 1961

bull A small switch with two push-buttons supported by two

springs occasionally the worker assembling the switch would

forget to insert a spring under each push-button

bull Sometimes the error would not be discovered until the unitreached a customer

bull Factory would have to dispatch an engineer to the customer

site to disassemble the switch insert the missing spring and

re-assemble the switch

bull This problem of the missing spring was both costly andembarrassing

bull Despite everyones best intentions the missing spring problem

would eventually re-appear

Birth of POKA YOKE helliphelliphellip

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Pokayoke ActionError Has

Occurred

Detection

Is Made

Defect

Is

Signaled Control

Feedback

GivenProcess

Is

Stopped

POKA YOKE Action

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bull A system for organising work that prevents the error

bull Excludes any risk of error even by the beginner

bull Allows everyone to operate without mistake

bull Prevents error that are about to occur

bull Inspection time will be minimised

What is ldquoMistake Proofing ldquo Why should we do it

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Mistake -Proof Approach

List of Problems ndash Select

Form a Team

Brain-writing at Gemba

Why-Why Analysis leads to root cause

Kaizens on root cause

Establish Activities to maintain standard

Work Towards Low Cost Automation

Plan

Do

Check

Act

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What - A tool that helps to eliminate inadvertent human errors

- Helps to build quality in product at sourceWhere - Is helpful in highly repetitive situations High Productivity areas

may lead to mistakes sometimes

(Unintentional errors - Forgetting Ignoring Inattentiveness )

eg - Complex processes Repetitive assembly mistakes

When - Sourced from Safety issues Driven by known quality problems

Customer complaints RFT P Tags BIS issues FMEA

Why - Builds quality in the product waste elimination

How - Pokayoke is often LOW COST or NO COST solutions

POKA YOKE helps in case of unintentional mistakes and not mischiefs

Pokayoke - Fail safe in 5 W 1 H

Kaizen

842019 Presentation on TPS -JIT Kanban

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Welcome

Learning Session on

Model Machine

Objectives

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3693

j

To Learn

bull Concept of Model Machine - P - PC Balance

bull Why Model Machine

bull 8 Major losses

bull OEE Calculations

bull How to Develop

bull Documentation

bull Examples

Wh M d l M hi

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Why Model MachineProfit = Sales ndash Cost

Profit = Sales ndash Mfg Cost

To reduce manufacturing cost needs optimumutilization of all assets ie resources

Measurement of effective utilization of all

resources is Overall Equipment Efficiency( OEE)

(09 09 09 = 73)

Why Model Machine

842019 Presentation on TPS -JIT Kanban

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Profit = Total sales ndash Total cost

Why Model Machine

Profit = Selling Prices - Input Mfg cost up

( competition ) ( Increasing cost of input resources )

To maintain improve profit hellip Solution is ldquo Reduce Mfg costrdquo

Improve Asset Utilization

Improve Overall Equipment ldquoEfficiencyrdquo (OEE)

OEE = Availability x Performance x Quality

Our goal should be to improve OEE gt 85

world class Benchmark = 95

Why Model Machine

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Why Model Machine

If

OEE = Mfg Cost

Mfg cost = profit

eg Consider a MC of cost Rs 5 cr

Utilization in Japan china ndash OEE 90Utilization in India ndash OEE 45 (45 7080)So product cost in India will be 2 times than the cost in

china

Key is improve to OEEAchievement on 8 Model Machines - OEE improved

from 45 to 75 85

P - PC Balance

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P PC Balance

Production Vs Production Capability

Engine+Parts Equipment + MC + Test Bed

Model Machine

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Factory Within Factory is BU

BU Within BU is MODEL MC

WHY Model MC

To deliver -Cost Effective Product to ldquoInternalrdquo amp Externalrdquo Customer

Zero - Breakdown

By Achieving - Zero - Accident

Zero - Defect

To Success is ldquoImprove OEErdquo (Overall Equipment Effectiveness)

5 - M‟S OF PRODUCTION

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bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

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NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

842019 Presentation on TPS -JIT Kanban

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Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

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Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

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What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

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Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4893

TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

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INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

842019 Presentation on TPS -JIT Kanban

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TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

842019 Presentation on TPS -JIT Kanban

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What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

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TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

842019 Presentation on TPS -JIT Kanban

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TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

842019 Presentation on TPS -JIT Kanban

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Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5593

US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

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g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

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TPSLean Principles

Click to proceed

TPSLean Principles

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TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

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Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

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Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

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Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

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Principle 2 Takt time

Takt Time

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bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

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Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

842019 Presentation on TPS -JIT Kanban

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Principle 3

Non-value added activities

What are Non-value added activities

842019 Presentation on TPS -JIT Kanban

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bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

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1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

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bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

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bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

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Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

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bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

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bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

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bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

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bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

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Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

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bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

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Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

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bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

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ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

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bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

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Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

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Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

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bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

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bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

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bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

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Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

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PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

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bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

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bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

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842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 1393India Limited

5 S linked with productivity

Step 1 Awareness revolution

( prerequisite for factory improvement )

Step 2 The 5 S‟s

( foundation for factory improvement )

Step 3 Flow manufacturing

Step 4 Leveling

Step 5 standard operations

Just - in - time

Multi

process

handling

Changeover

Human

automation

Kanban

Quality

assurance

Maintenance

amp Safety

M a n p o w e r o p t i m i z a t i o n V

i s u al M an

a g em en t

5 S - Objectives

G b K i 3 bdquoG‟ I t

842019 Presentation on TPS -JIT Kanban

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India Limited

Gemba - Work place

eg mc amp surroundings areatable amp surroundings

Assembly Station test cell etc

bull Gembutsu - Problem piece

eg All objectives related to improvement in Gemba

bull Genjitsu - Real time

eg Observe the things

while happening or at the earliest

after happening for getting the facts real information

ldquoGemba Kaizenrdquo means - Improvement at yourwork place Team is important in Gemba Kaizen Look at the work place to find out avenues

for bdquoKaizen‟ through 3 bdquoD‟ approach

- Gemba Kaizen -3 bdquoG‟s Importance

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India Limited

How to start - For initial work Use bdquo3D‟ approach

ndash Dirty - oil coolant air leakages

- chips and burr on floor- Accumulated dust etc

ndash Dangerous - Unsafe working conditions- Movements

ndash Difficult - Difficult to move- lift assembly

- not ergonomical situations

Results in employee satisfaction amp improved morale

Makes job easier simpler safer and faster

Increases efficiency Happier Customer

Overall improvement of organization

- To Start with

I i amp K i

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India Limited

Innovation amp Kaizen

1

30

300

Kaizen is a small improvement carried out by the person in his own workplace

with nil or negligible investment

Kaizen Tools

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Kaizen Tools

1bdquoO‟ ndash

Opportunity

Tag

-Small Improvement - keeping in mind 1-30-300 triangle Avoid major stoppage

by proactive methods

- Structured process for Involvement Registration and tracking of every small

improvement

2 Gemba Kaizen - Focused work station improvement for elimination of waste - Improvementsowned by associates

3 5 S Activities- Seiri Seiton Seiso Seiketsu Shitsuke Disciplined approach for lean

management - Foundation for JIT Develop culture of discipline

4 7 Step Project

-Quality improvement projects taken from PPM chart Customer complaint

-Team work for resolving through 7 step structured process ( 5W1H CEdac

chips 5 Why root cause )

5Kobetsu

Kaizen

-Focused improvement under taken for quality waste elimination ( Kit

improvement )

6Material Feed

System

- Inventory control through 5 S 2 Bin System Movement reduction Linkage

upto supplier order )

7Layout

Modification

-Global layout with assembly at centre amp local layout in form of feeding system

-U shape layouts for synchronization of flow and inventory control Improve

material handling

8 One Piece Flow- Step by step reduction in inventory with final aim of JIT ( Zero - Breakdown

Accident Defect)

9 Model Machine

-Activities include -1S 2S Transparency MISER to improve availability

-OEE improvement through EYE chart 3S 3M chart 5S Before and After

monitoring each week

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10 Eye Chart-7 Step problem Pokayoke etc are sourced from these OEE charts

-Common chart for all BUs to note down quality defect

11 SMED

-Reduction in set up time by study of set up change activities video film

-Separating internal and external activities Modifications in fixtures auto

clamping etc

12 MISER- M-minimize I- improvise S- simplify E- eliminate R- reduce --- Continuous

improvement

13 POKAYOKE

- Failsafing for operator‟s un-intentional mistake and total quality

improvement

- Cost reduction by attacking poor quality kit shortages handling

improvement

14IFC ( Initial

Flow Control)

- Making a list of improvements by reviewing quality problems and customer

complaint

- These points will be used for ordering new machines or making

improvements in new product

15 KANBAN- Consumption based material procurement system Ensures availability of

material with minimum inventory

16bdquoO‟ Tag

Campaign

- To increase awareness for Safety PokaYoke Dirty Difficult Danger and

Deterioration

17 Office Kaizen- Apply kaizen tools for increasing effectiveness and reduce delays ( quick

response )

18 Training-Training for acquiring new skills at Gemba Improves employees on

continuous basis

Th f f f h l f t t ib t d b

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19 PQCD MoP

- These are measures of performance for whole factory contributed by

individual business units

- Review and correction is needed every month in 5S Before After chart

20JOHARI

WINDOW

-This technique is used to identify root causes in human elements while

solving problems using accumulated knowledge skills developed in a

individual This technique is based on communication in two entities in open

environment amp positive attitude towards problem resolution

21

BMT (

Behavioral

Modulation

Technique)

To impart skills leading to increase of productivity of employees and

motivate them

22 Recognition

Recognition is most important for any human being In kaizen activities we

take care of appreciating every improvement either by individual or by team

The theme is ldquoMaking everybody a herordquo There are 44 ways of appreciatingemployees without actual monitory gains or amount

23 Turbo Kaizen

- Idea generation is done through Turbo Kaizen amp implemented using Kaizen

tools

-Kaizen activities help faster implementation of cost saving ideas

24 Ergonomics

Ergonomics was coined from the Greek words ergon (meaning work) and

nomos (meaning rules) ldquo Fit the task to the person not the person to the

taskldquo

A good way to understand what ergonomics means is to think about the term

user-friendly

25 Karakuri

Machine layout is modified in such a manner that flow of material from one

machine to other machine is maintained without energy consumption by

taking advantage gravity

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Welcome

to Presentation

onOFFICE KAIZEN

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- Why Office Kaizen What are its‟ benefits

bull To improve productivity efficiency in the administrative functions andidentify and eliminate losses This includes analyzing processes andprocedures towards increased office automation

Benefits

bull Involvement of all people in support functions for focusing on betterplant performance

bull Reduction in administrative costs - Reduced inventory carrying cost

bull Better utilized work area - Reduce repetitive work

bull Motivate people in support areas - Multiskilling in support areas

bull Some evident results are- Reduced inventory levels in all parts of the supply chain

- Reduction in number of files

- Reduction of overhead costs (to include cost of non-productionnoncapital equipment)

- Productivity of people in support functions

- Breakdown of office equipment - Reduced manpower- Customer complaints due to logistics

- Expenses due to emergency dispatchespurchases

- Clean and pleasant work environment

d fi i ffi i16

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- How to define P Q C D S M in Office Kaizen

bull Each company will have to define for themselves looking at all losses which affect plantperformance

These are some examples

bull P ndash Production output lost due to want of material

ndash Manpower productivity

ndash Production output lost due to want of tools

bull Q ndash Mistakes in preparation of cheques bills invoices payroll

ndash Customer returnswarranty attributable to BOPs

ndash Rejectionrework in BOP‟sjob work

ndash Office area rework

bull C ndash Buying costunit produced

ndash Cost of logistics ndash inboundoutbound

ndash Cost of carrying inventory ndash Cost of communication

ndash Demurrage costs

bull D ndash Logistics losses(Delay in loadingunloading)

ndash Delay in delivery due to any of the support functions

ndash Delay in payments to suppliers

ndash Delay in information

bull S ndash Safety in material handlingstoreslogistics

ndash Safety of soft and hard databull M ndash Number of kaizens in office areas

H t t t ffi K i 16

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- How to start office Kaizen

Steps followed are

- Providing awareness about office Kaizen to all support departments

- Helping them to identify P Q C D S M in each function in relation to plantperformance

- Identify the scope for improvement in each function- Collect relevant data

- Help them to solve problems in their Circles Teams

- Make up an activity board where progress is monitored on both sides ndash results andactions along with Kaizens

How to identify losses in office Kaizen

In each functional area identify the losses separately and add them up to build up amaster plan for Office Kaizen For example

- office equipment breakdown

- communication channel breakdown telephone and fax lines

- time spent on retrieval of information

- non availability of correct on line stock status

- customer complaints due to logistics

- expenses on emergency dispatchespurchases- cost reduction on non-productionnon capital items

H t l t K b t K i t i f Offi K i 16

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- How to select Kobetsu Kaizen topics from Office Kaizen

Kobetsu Kaizen topics are selected aiming at --

- Inventory reduction- Lead time reduction of critical processes

- Motion amp space losses

- retrieval time reduction

- reducing or eliminating office work flow stagnation

- equalizing the work load

- analyzing for bdquono material‟ areas and improving them

- Improving the office efficiency

ndash By eliminating the time loss on retrieval of information

ndash By achieving zero breakdown of office equipment like telephoneand fax Lines Xerox machine etc

PPM Ch t IN OFFICE16

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- PPM Chart IN OFFICENov Dec Jan Feb Mar

96667 136667 110000 93333 1366

56 46 153 46

April May June July Aug

58333

90

Defects

Defects Expressed in 5W 1H

Fassion1 2 3 4 5 OF

S U N D A Y

8 9 10 11 12 OF

S U N D A Y

15 16 17 18 19 OF

S U N D A Y

22 23 24 25 26 OF

S U N D A Y

29 30

Total

Defect

s

PPM

1 BILL OF MATERIAL CHANGE 0 0 0 0 0

2 SUPPLIER FAULT 0 1 0 1 0 1 1 0 1 2 1 0 2 0 0 0 6 16 533

3 BUYER FAULT 0 0 0 0 0 0

4ENGINE PREPONED ADDITIONAL ENGINE 0 0 0 0 0 0 0

5 RRP-REQT RPORT PROBLEM 0 0 0 0 0 0 0

6 STOCK DESCRIPANCY 0 0 0 0 0 0 0

7 QUALITY SOURCING ISSUES 0 0 0 0 0 0 0 1 05 1666

8 DELAY GRR POSTING 0 0 0 0 0

9 TRANSPORTATION PROBLEM 0 0 0 1 0 1

Total Defects 0 0 0 0 0 0 0 1 0 1 1 1 0 0 1 0 1 2 1 0 0 0 3 0 0 0 0 0 0 6 0 175 583

0 0 0 0 0 0 0 3 3 3 3

0 3 3 3 3

3 3 3 3

3 3 3 3

0 0 3 3 3 3

0 3 3 3 3

6 6 6 7

3 3 3 3

0 0 0 8 3 3 3

0 0 0 0 0 0 2 0 0 0 0

0

Number of active parts for a month=300 NOS

Defects Per Million

Weekly PPM 0 5 5 6

2 2 2 2

2 2 2 2

0

What Short of material while Pulli Why Various reasons as above

Where In the Store Who Kanban process owener(store person)

When While Kanban Pulling How During routine work

MONTHLY

Sr

no

MONTHLY PP

Month

PPM

Kaizen

DATE

Month

PPM

Kaizen

Daily PPM Value for Feb - 2001

0

4000

8000

12000

16000

20000

24000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30Date

P P M

V a l u e

Weekly PPM Value

0

500

1000

1500

2000

2500

1 2 3 4 5

Week P P M

M P T bl IN OFFICE16

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- MoP Table IN OFFICEHuman Resources MOP summary

May02 Jun 02 Jul02 Aug 02 Sep02 Oct 02 Nov 02 Dec 02 Jan03 Feb03

Productivity (P)

Actual 6915 6546 4989 5806 5645 4879 5056 4746 5308 5158

Desired 50 50 50 50 50 50 50 50 50 50

Actual 300 250 150 250 250 200 150 150 175 225 450

Desired 200 200 200 200 200 200 200 200 200 200 200

Quality (Q)

Actual 76

Desired(Tar et)

80

Actual 12th 10th 12th 12th 10th 10th 10th 10th 9th 8th

Desired 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th

Actual 9th 7th 7th 8th 8th 7th 7th 7th 7th 6th

Desired 8th 7th 6th 6th 6th 6th 6th 6th 6th 6th 6th

Actual 5th 5th 5th 5th 5th 5th 5th 5th 5th 4th 5th

Desired 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th

Actual 0 1 0 1 1 1 0 1 1 1 2

Desired 0 0 0 0 0 0 0 0 0 0 0

BEFORE AFTER 5S

RESULT MONITORActual

DeasiredApr02

AFTER 5S

PeopleEngineDay

HRFE Score (Yearly

measure) (Measured one in a year)

Delivery (D)

Monthly Report Submission

Safety Incidents (S)

No of Accidents Month

CPS Report

Monthly headcount data

No of people involved in

community Welfare

- Kaizen Projects in Offices

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HR

bull Improve employee data adequacy

bull Transfer of old PF accountbull Consolidation of banks for salary payment

bull Safety on road Safety goggles

bull Safety gates on shop floors

bull Pokayokes on accidents ( Radial drills Signs on walkways )

bull Prevention of epidemic diseases

bull Canteen Improvement ndash Kanban for material

- Energy saving

- Improve ventilation and lighting

- Roof cooling by purified drainage

water

- Kaizen Projects in Offices

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HR

bull Improvement in Health awareness ( check up Lectures

De addiction campsbull Bench marking visits to other factories

bull Recognition policy

bull Participation in intra company competition

bull Safety poster competition

bull ldquoOrdquo tag campaign for safety

bull ATM counter bank facility at gate

bull Prize distribution by Union leaders

bull Letter to family for good work

bull Proper lighting and ventilation at workplace

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bull Poka-yoke (pronounced POH-kah YOH-kayldquo ) bull Japanese words poka (inadvertent mistake) and yoke

(prevent) was invented by Shigeo Shingo in the 1960s

bull The essential idea of poka-yoke is to design your process so

that mistakes are impossible or at least easily detected and

corrected

About Shigeo Shingohelliphelliphellip

bull A leading proponent of statistical process control

bull Became frustrated with the statistical approach

bull Statistical sampling implies that some products to gountested with the result that some rate of defects would

always reach the customer

About POKA YOKEhelliphelliphelliphellip

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bull Shingo was communicated of a problem inldquoYamada Electric plantrdquo in 1961

bull A small switch with two push-buttons supported by two

springs occasionally the worker assembling the switch would

forget to insert a spring under each push-button

bull Sometimes the error would not be discovered until the unitreached a customer

bull Factory would have to dispatch an engineer to the customer

site to disassemble the switch insert the missing spring and

re-assemble the switch

bull This problem of the missing spring was both costly andembarrassing

bull Despite everyones best intentions the missing spring problem

would eventually re-appear

Birth of POKA YOKE helliphelliphellip

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Pokayoke ActionError Has

Occurred

Detection

Is Made

Defect

Is

Signaled Control

Feedback

GivenProcess

Is

Stopped

POKA YOKE Action

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bull A system for organising work that prevents the error

bull Excludes any risk of error even by the beginner

bull Allows everyone to operate without mistake

bull Prevents error that are about to occur

bull Inspection time will be minimised

What is ldquoMistake Proofing ldquo Why should we do it

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Mistake -Proof Approach

List of Problems ndash Select

Form a Team

Brain-writing at Gemba

Why-Why Analysis leads to root cause

Kaizens on root cause

Establish Activities to maintain standard

Work Towards Low Cost Automation

Plan

Do

Check

Act

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What - A tool that helps to eliminate inadvertent human errors

- Helps to build quality in product at sourceWhere - Is helpful in highly repetitive situations High Productivity areas

may lead to mistakes sometimes

(Unintentional errors - Forgetting Ignoring Inattentiveness )

eg - Complex processes Repetitive assembly mistakes

When - Sourced from Safety issues Driven by known quality problems

Customer complaints RFT P Tags BIS issues FMEA

Why - Builds quality in the product waste elimination

How - Pokayoke is often LOW COST or NO COST solutions

POKA YOKE helps in case of unintentional mistakes and not mischiefs

Pokayoke - Fail safe in 5 W 1 H

Kaizen

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Welcome

Learning Session on

Model Machine

Objectives

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j

To Learn

bull Concept of Model Machine - P - PC Balance

bull Why Model Machine

bull 8 Major losses

bull OEE Calculations

bull How to Develop

bull Documentation

bull Examples

Wh M d l M hi

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Why Model MachineProfit = Sales ndash Cost

Profit = Sales ndash Mfg Cost

To reduce manufacturing cost needs optimumutilization of all assets ie resources

Measurement of effective utilization of all

resources is Overall Equipment Efficiency( OEE)

(09 09 09 = 73)

Why Model Machine

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Profit = Total sales ndash Total cost

Why Model Machine

Profit = Selling Prices - Input Mfg cost up

( competition ) ( Increasing cost of input resources )

To maintain improve profit hellip Solution is ldquo Reduce Mfg costrdquo

Improve Asset Utilization

Improve Overall Equipment ldquoEfficiencyrdquo (OEE)

OEE = Availability x Performance x Quality

Our goal should be to improve OEE gt 85

world class Benchmark = 95

Why Model Machine

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Why Model Machine

If

OEE = Mfg Cost

Mfg cost = profit

eg Consider a MC of cost Rs 5 cr

Utilization in Japan china ndash OEE 90Utilization in India ndash OEE 45 (45 7080)So product cost in India will be 2 times than the cost in

china

Key is improve to OEEAchievement on 8 Model Machines - OEE improved

from 45 to 75 85

P - PC Balance

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P PC Balance

Production Vs Production Capability

Engine+Parts Equipment + MC + Test Bed

Model Machine

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Factory Within Factory is BU

BU Within BU is MODEL MC

WHY Model MC

To deliver -Cost Effective Product to ldquoInternalrdquo amp Externalrdquo Customer

Zero - Breakdown

By Achieving - Zero - Accident

Zero - Defect

To Success is ldquoImprove OEErdquo (Overall Equipment Effectiveness)

5 - M‟S OF PRODUCTION

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bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

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NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

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Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

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Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

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What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

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Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

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TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

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INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

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TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

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What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

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TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

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TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

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Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

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US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

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g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

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TPSLean Principles

Click to proceed

TPSLean Principles

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TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

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Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

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Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

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Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

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Principle 2 Takt time

Takt Time

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bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

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Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

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Principle 3

Non-value added activities

What are Non-value added activities

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bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

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1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

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bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

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bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

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Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

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bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

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bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

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bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

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bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

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Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

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bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

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bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

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ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

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Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

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Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

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bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

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bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

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bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

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Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

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PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

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bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

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bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

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India Limited

Gemba - Work place

eg mc amp surroundings areatable amp surroundings

Assembly Station test cell etc

bull Gembutsu - Problem piece

eg All objectives related to improvement in Gemba

bull Genjitsu - Real time

eg Observe the things

while happening or at the earliest

after happening for getting the facts real information

ldquoGemba Kaizenrdquo means - Improvement at yourwork place Team is important in Gemba Kaizen Look at the work place to find out avenues

for bdquoKaizen‟ through 3 bdquoD‟ approach

- Gemba Kaizen -3 bdquoG‟s Importance

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India Limited

How to start - For initial work Use bdquo3D‟ approach

ndash Dirty - oil coolant air leakages

- chips and burr on floor- Accumulated dust etc

ndash Dangerous - Unsafe working conditions- Movements

ndash Difficult - Difficult to move- lift assembly

- not ergonomical situations

Results in employee satisfaction amp improved morale

Makes job easier simpler safer and faster

Increases efficiency Happier Customer

Overall improvement of organization

- To Start with

I i amp K i

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India Limited

Innovation amp Kaizen

1

30

300

Kaizen is a small improvement carried out by the person in his own workplace

with nil or negligible investment

Kaizen Tools

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Kaizen Tools

1bdquoO‟ ndash

Opportunity

Tag

-Small Improvement - keeping in mind 1-30-300 triangle Avoid major stoppage

by proactive methods

- Structured process for Involvement Registration and tracking of every small

improvement

2 Gemba Kaizen - Focused work station improvement for elimination of waste - Improvementsowned by associates

3 5 S Activities- Seiri Seiton Seiso Seiketsu Shitsuke Disciplined approach for lean

management - Foundation for JIT Develop culture of discipline

4 7 Step Project

-Quality improvement projects taken from PPM chart Customer complaint

-Team work for resolving through 7 step structured process ( 5W1H CEdac

chips 5 Why root cause )

5Kobetsu

Kaizen

-Focused improvement under taken for quality waste elimination ( Kit

improvement )

6Material Feed

System

- Inventory control through 5 S 2 Bin System Movement reduction Linkage

upto supplier order )

7Layout

Modification

-Global layout with assembly at centre amp local layout in form of feeding system

-U shape layouts for synchronization of flow and inventory control Improve

material handling

8 One Piece Flow- Step by step reduction in inventory with final aim of JIT ( Zero - Breakdown

Accident Defect)

9 Model Machine

-Activities include -1S 2S Transparency MISER to improve availability

-OEE improvement through EYE chart 3S 3M chart 5S Before and After

monitoring each week

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10 Eye Chart-7 Step problem Pokayoke etc are sourced from these OEE charts

-Common chart for all BUs to note down quality defect

11 SMED

-Reduction in set up time by study of set up change activities video film

-Separating internal and external activities Modifications in fixtures auto

clamping etc

12 MISER- M-minimize I- improvise S- simplify E- eliminate R- reduce --- Continuous

improvement

13 POKAYOKE

- Failsafing for operator‟s un-intentional mistake and total quality

improvement

- Cost reduction by attacking poor quality kit shortages handling

improvement

14IFC ( Initial

Flow Control)

- Making a list of improvements by reviewing quality problems and customer

complaint

- These points will be used for ordering new machines or making

improvements in new product

15 KANBAN- Consumption based material procurement system Ensures availability of

material with minimum inventory

16bdquoO‟ Tag

Campaign

- To increase awareness for Safety PokaYoke Dirty Difficult Danger and

Deterioration

17 Office Kaizen- Apply kaizen tools for increasing effectiveness and reduce delays ( quick

response )

18 Training-Training for acquiring new skills at Gemba Improves employees on

continuous basis

Th f f f h l f t t ib t d b

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19 PQCD MoP

- These are measures of performance for whole factory contributed by

individual business units

- Review and correction is needed every month in 5S Before After chart

20JOHARI

WINDOW

-This technique is used to identify root causes in human elements while

solving problems using accumulated knowledge skills developed in a

individual This technique is based on communication in two entities in open

environment amp positive attitude towards problem resolution

21

BMT (

Behavioral

Modulation

Technique)

To impart skills leading to increase of productivity of employees and

motivate them

22 Recognition

Recognition is most important for any human being In kaizen activities we

take care of appreciating every improvement either by individual or by team

The theme is ldquoMaking everybody a herordquo There are 44 ways of appreciatingemployees without actual monitory gains or amount

23 Turbo Kaizen

- Idea generation is done through Turbo Kaizen amp implemented using Kaizen

tools

-Kaizen activities help faster implementation of cost saving ideas

24 Ergonomics

Ergonomics was coined from the Greek words ergon (meaning work) and

nomos (meaning rules) ldquo Fit the task to the person not the person to the

taskldquo

A good way to understand what ergonomics means is to think about the term

user-friendly

25 Karakuri

Machine layout is modified in such a manner that flow of material from one

machine to other machine is maintained without energy consumption by

taking advantage gravity

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Welcome

to Presentation

onOFFICE KAIZEN

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- Why Office Kaizen What are its‟ benefits

bull To improve productivity efficiency in the administrative functions andidentify and eliminate losses This includes analyzing processes andprocedures towards increased office automation

Benefits

bull Involvement of all people in support functions for focusing on betterplant performance

bull Reduction in administrative costs - Reduced inventory carrying cost

bull Better utilized work area - Reduce repetitive work

bull Motivate people in support areas - Multiskilling in support areas

bull Some evident results are- Reduced inventory levels in all parts of the supply chain

- Reduction in number of files

- Reduction of overhead costs (to include cost of non-productionnoncapital equipment)

- Productivity of people in support functions

- Breakdown of office equipment - Reduced manpower- Customer complaints due to logistics

- Expenses due to emergency dispatchespurchases

- Clean and pleasant work environment

d fi i ffi i16

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- How to define P Q C D S M in Office Kaizen

bull Each company will have to define for themselves looking at all losses which affect plantperformance

These are some examples

bull P ndash Production output lost due to want of material

ndash Manpower productivity

ndash Production output lost due to want of tools

bull Q ndash Mistakes in preparation of cheques bills invoices payroll

ndash Customer returnswarranty attributable to BOPs

ndash Rejectionrework in BOP‟sjob work

ndash Office area rework

bull C ndash Buying costunit produced

ndash Cost of logistics ndash inboundoutbound

ndash Cost of carrying inventory ndash Cost of communication

ndash Demurrage costs

bull D ndash Logistics losses(Delay in loadingunloading)

ndash Delay in delivery due to any of the support functions

ndash Delay in payments to suppliers

ndash Delay in information

bull S ndash Safety in material handlingstoreslogistics

ndash Safety of soft and hard databull M ndash Number of kaizens in office areas

H t t t ffi K i 16

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- How to start office Kaizen

Steps followed are

- Providing awareness about office Kaizen to all support departments

- Helping them to identify P Q C D S M in each function in relation to plantperformance

- Identify the scope for improvement in each function- Collect relevant data

- Help them to solve problems in their Circles Teams

- Make up an activity board where progress is monitored on both sides ndash results andactions along with Kaizens

How to identify losses in office Kaizen

In each functional area identify the losses separately and add them up to build up amaster plan for Office Kaizen For example

- office equipment breakdown

- communication channel breakdown telephone and fax lines

- time spent on retrieval of information

- non availability of correct on line stock status

- customer complaints due to logistics

- expenses on emergency dispatchespurchases- cost reduction on non-productionnon capital items

H t l t K b t K i t i f Offi K i 16

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- How to select Kobetsu Kaizen topics from Office Kaizen

Kobetsu Kaizen topics are selected aiming at --

- Inventory reduction- Lead time reduction of critical processes

- Motion amp space losses

- retrieval time reduction

- reducing or eliminating office work flow stagnation

- equalizing the work load

- analyzing for bdquono material‟ areas and improving them

- Improving the office efficiency

ndash By eliminating the time loss on retrieval of information

ndash By achieving zero breakdown of office equipment like telephoneand fax Lines Xerox machine etc

PPM Ch t IN OFFICE16

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- PPM Chart IN OFFICENov Dec Jan Feb Mar

96667 136667 110000 93333 1366

56 46 153 46

April May June July Aug

58333

90

Defects

Defects Expressed in 5W 1H

Fassion1 2 3 4 5 OF

S U N D A Y

8 9 10 11 12 OF

S U N D A Y

15 16 17 18 19 OF

S U N D A Y

22 23 24 25 26 OF

S U N D A Y

29 30

Total

Defect

s

PPM

1 BILL OF MATERIAL CHANGE 0 0 0 0 0

2 SUPPLIER FAULT 0 1 0 1 0 1 1 0 1 2 1 0 2 0 0 0 6 16 533

3 BUYER FAULT 0 0 0 0 0 0

4ENGINE PREPONED ADDITIONAL ENGINE 0 0 0 0 0 0 0

5 RRP-REQT RPORT PROBLEM 0 0 0 0 0 0 0

6 STOCK DESCRIPANCY 0 0 0 0 0 0 0

7 QUALITY SOURCING ISSUES 0 0 0 0 0 0 0 1 05 1666

8 DELAY GRR POSTING 0 0 0 0 0

9 TRANSPORTATION PROBLEM 0 0 0 1 0 1

Total Defects 0 0 0 0 0 0 0 1 0 1 1 1 0 0 1 0 1 2 1 0 0 0 3 0 0 0 0 0 0 6 0 175 583

0 0 0 0 0 0 0 3 3 3 3

0 3 3 3 3

3 3 3 3

3 3 3 3

0 0 3 3 3 3

0 3 3 3 3

6 6 6 7

3 3 3 3

0 0 0 8 3 3 3

0 0 0 0 0 0 2 0 0 0 0

0

Number of active parts for a month=300 NOS

Defects Per Million

Weekly PPM 0 5 5 6

2 2 2 2

2 2 2 2

0

What Short of material while Pulli Why Various reasons as above

Where In the Store Who Kanban process owener(store person)

When While Kanban Pulling How During routine work

MONTHLY

Sr

no

MONTHLY PP

Month

PPM

Kaizen

DATE

Month

PPM

Kaizen

Daily PPM Value for Feb - 2001

0

4000

8000

12000

16000

20000

24000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30Date

P P M

V a l u e

Weekly PPM Value

0

500

1000

1500

2000

2500

1 2 3 4 5

Week P P M

M P T bl IN OFFICE16

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- MoP Table IN OFFICEHuman Resources MOP summary

May02 Jun 02 Jul02 Aug 02 Sep02 Oct 02 Nov 02 Dec 02 Jan03 Feb03

Productivity (P)

Actual 6915 6546 4989 5806 5645 4879 5056 4746 5308 5158

Desired 50 50 50 50 50 50 50 50 50 50

Actual 300 250 150 250 250 200 150 150 175 225 450

Desired 200 200 200 200 200 200 200 200 200 200 200

Quality (Q)

Actual 76

Desired(Tar et)

80

Actual 12th 10th 12th 12th 10th 10th 10th 10th 9th 8th

Desired 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th

Actual 9th 7th 7th 8th 8th 7th 7th 7th 7th 6th

Desired 8th 7th 6th 6th 6th 6th 6th 6th 6th 6th 6th

Actual 5th 5th 5th 5th 5th 5th 5th 5th 5th 4th 5th

Desired 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th

Actual 0 1 0 1 1 1 0 1 1 1 2

Desired 0 0 0 0 0 0 0 0 0 0 0

BEFORE AFTER 5S

RESULT MONITORActual

DeasiredApr02

AFTER 5S

PeopleEngineDay

HRFE Score (Yearly

measure) (Measured one in a year)

Delivery (D)

Monthly Report Submission

Safety Incidents (S)

No of Accidents Month

CPS Report

Monthly headcount data

No of people involved in

community Welfare

- Kaizen Projects in Offices

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HR

bull Improve employee data adequacy

bull Transfer of old PF accountbull Consolidation of banks for salary payment

bull Safety on road Safety goggles

bull Safety gates on shop floors

bull Pokayokes on accidents ( Radial drills Signs on walkways )

bull Prevention of epidemic diseases

bull Canteen Improvement ndash Kanban for material

- Energy saving

- Improve ventilation and lighting

- Roof cooling by purified drainage

water

- Kaizen Projects in Offices

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HR

bull Improvement in Health awareness ( check up Lectures

De addiction campsbull Bench marking visits to other factories

bull Recognition policy

bull Participation in intra company competition

bull Safety poster competition

bull ldquoOrdquo tag campaign for safety

bull ATM counter bank facility at gate

bull Prize distribution by Union leaders

bull Letter to family for good work

bull Proper lighting and ventilation at workplace

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bull Poka-yoke (pronounced POH-kah YOH-kayldquo ) bull Japanese words poka (inadvertent mistake) and yoke

(prevent) was invented by Shigeo Shingo in the 1960s

bull The essential idea of poka-yoke is to design your process so

that mistakes are impossible or at least easily detected and

corrected

About Shigeo Shingohelliphelliphellip

bull A leading proponent of statistical process control

bull Became frustrated with the statistical approach

bull Statistical sampling implies that some products to gountested with the result that some rate of defects would

always reach the customer

About POKA YOKEhelliphelliphelliphellip

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bull Shingo was communicated of a problem inldquoYamada Electric plantrdquo in 1961

bull A small switch with two push-buttons supported by two

springs occasionally the worker assembling the switch would

forget to insert a spring under each push-button

bull Sometimes the error would not be discovered until the unitreached a customer

bull Factory would have to dispatch an engineer to the customer

site to disassemble the switch insert the missing spring and

re-assemble the switch

bull This problem of the missing spring was both costly andembarrassing

bull Despite everyones best intentions the missing spring problem

would eventually re-appear

Birth of POKA YOKE helliphelliphellip

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Pokayoke ActionError Has

Occurred

Detection

Is Made

Defect

Is

Signaled Control

Feedback

GivenProcess

Is

Stopped

POKA YOKE Action

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bull A system for organising work that prevents the error

bull Excludes any risk of error even by the beginner

bull Allows everyone to operate without mistake

bull Prevents error that are about to occur

bull Inspection time will be minimised

What is ldquoMistake Proofing ldquo Why should we do it

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Mistake -Proof Approach

List of Problems ndash Select

Form a Team

Brain-writing at Gemba

Why-Why Analysis leads to root cause

Kaizens on root cause

Establish Activities to maintain standard

Work Towards Low Cost Automation

Plan

Do

Check

Act

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What - A tool that helps to eliminate inadvertent human errors

- Helps to build quality in product at sourceWhere - Is helpful in highly repetitive situations High Productivity areas

may lead to mistakes sometimes

(Unintentional errors - Forgetting Ignoring Inattentiveness )

eg - Complex processes Repetitive assembly mistakes

When - Sourced from Safety issues Driven by known quality problems

Customer complaints RFT P Tags BIS issues FMEA

Why - Builds quality in the product waste elimination

How - Pokayoke is often LOW COST or NO COST solutions

POKA YOKE helps in case of unintentional mistakes and not mischiefs

Pokayoke - Fail safe in 5 W 1 H

Kaizen

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Welcome

Learning Session on

Model Machine

Objectives

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j

To Learn

bull Concept of Model Machine - P - PC Balance

bull Why Model Machine

bull 8 Major losses

bull OEE Calculations

bull How to Develop

bull Documentation

bull Examples

Wh M d l M hi

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Why Model MachineProfit = Sales ndash Cost

Profit = Sales ndash Mfg Cost

To reduce manufacturing cost needs optimumutilization of all assets ie resources

Measurement of effective utilization of all

resources is Overall Equipment Efficiency( OEE)

(09 09 09 = 73)

Why Model Machine

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Profit = Total sales ndash Total cost

Why Model Machine

Profit = Selling Prices - Input Mfg cost up

( competition ) ( Increasing cost of input resources )

To maintain improve profit hellip Solution is ldquo Reduce Mfg costrdquo

Improve Asset Utilization

Improve Overall Equipment ldquoEfficiencyrdquo (OEE)

OEE = Availability x Performance x Quality

Our goal should be to improve OEE gt 85

world class Benchmark = 95

Why Model Machine

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Why Model Machine

If

OEE = Mfg Cost

Mfg cost = profit

eg Consider a MC of cost Rs 5 cr

Utilization in Japan china ndash OEE 90Utilization in India ndash OEE 45 (45 7080)So product cost in India will be 2 times than the cost in

china

Key is improve to OEEAchievement on 8 Model Machines - OEE improved

from 45 to 75 85

P - PC Balance

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P PC Balance

Production Vs Production Capability

Engine+Parts Equipment + MC + Test Bed

Model Machine

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Factory Within Factory is BU

BU Within BU is MODEL MC

WHY Model MC

To deliver -Cost Effective Product to ldquoInternalrdquo amp Externalrdquo Customer

Zero - Breakdown

By Achieving - Zero - Accident

Zero - Defect

To Success is ldquoImprove OEErdquo (Overall Equipment Effectiveness)

5 - M‟S OF PRODUCTION

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bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

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NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

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Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

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Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

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What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

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Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

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TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

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INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

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TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

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What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

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TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

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TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

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Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

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US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

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g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

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TPSLean Principles

Click to proceed

TPSLean Principles

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TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

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Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

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Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

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Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

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Principle 2 Takt time

Takt Time

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bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

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Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

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Principle 3

Non-value added activities

What are Non-value added activities

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bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

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1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

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bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

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bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

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Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

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bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

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bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

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bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

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bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

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Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

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bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

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bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

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ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

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bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

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Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

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Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

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bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

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bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

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bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

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Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

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PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

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bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

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bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

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India Limited

How to start - For initial work Use bdquo3D‟ approach

ndash Dirty - oil coolant air leakages

- chips and burr on floor- Accumulated dust etc

ndash Dangerous - Unsafe working conditions- Movements

ndash Difficult - Difficult to move- lift assembly

- not ergonomical situations

Results in employee satisfaction amp improved morale

Makes job easier simpler safer and faster

Increases efficiency Happier Customer

Overall improvement of organization

- To Start with

I i amp K i

842019 Presentation on TPS -JIT Kanban

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India Limited

Innovation amp Kaizen

1

30

300

Kaizen is a small improvement carried out by the person in his own workplace

with nil or negligible investment

Kaizen Tools

842019 Presentation on TPS -JIT Kanban

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Kaizen Tools

1bdquoO‟ ndash

Opportunity

Tag

-Small Improvement - keeping in mind 1-30-300 triangle Avoid major stoppage

by proactive methods

- Structured process for Involvement Registration and tracking of every small

improvement

2 Gemba Kaizen - Focused work station improvement for elimination of waste - Improvementsowned by associates

3 5 S Activities- Seiri Seiton Seiso Seiketsu Shitsuke Disciplined approach for lean

management - Foundation for JIT Develop culture of discipline

4 7 Step Project

-Quality improvement projects taken from PPM chart Customer complaint

-Team work for resolving through 7 step structured process ( 5W1H CEdac

chips 5 Why root cause )

5Kobetsu

Kaizen

-Focused improvement under taken for quality waste elimination ( Kit

improvement )

6Material Feed

System

- Inventory control through 5 S 2 Bin System Movement reduction Linkage

upto supplier order )

7Layout

Modification

-Global layout with assembly at centre amp local layout in form of feeding system

-U shape layouts for synchronization of flow and inventory control Improve

material handling

8 One Piece Flow- Step by step reduction in inventory with final aim of JIT ( Zero - Breakdown

Accident Defect)

9 Model Machine

-Activities include -1S 2S Transparency MISER to improve availability

-OEE improvement through EYE chart 3S 3M chart 5S Before and After

monitoring each week

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10 Eye Chart-7 Step problem Pokayoke etc are sourced from these OEE charts

-Common chart for all BUs to note down quality defect

11 SMED

-Reduction in set up time by study of set up change activities video film

-Separating internal and external activities Modifications in fixtures auto

clamping etc

12 MISER- M-minimize I- improvise S- simplify E- eliminate R- reduce --- Continuous

improvement

13 POKAYOKE

- Failsafing for operator‟s un-intentional mistake and total quality

improvement

- Cost reduction by attacking poor quality kit shortages handling

improvement

14IFC ( Initial

Flow Control)

- Making a list of improvements by reviewing quality problems and customer

complaint

- These points will be used for ordering new machines or making

improvements in new product

15 KANBAN- Consumption based material procurement system Ensures availability of

material with minimum inventory

16bdquoO‟ Tag

Campaign

- To increase awareness for Safety PokaYoke Dirty Difficult Danger and

Deterioration

17 Office Kaizen- Apply kaizen tools for increasing effectiveness and reduce delays ( quick

response )

18 Training-Training for acquiring new skills at Gemba Improves employees on

continuous basis

Th f f f h l f t t ib t d b

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19 PQCD MoP

- These are measures of performance for whole factory contributed by

individual business units

- Review and correction is needed every month in 5S Before After chart

20JOHARI

WINDOW

-This technique is used to identify root causes in human elements while

solving problems using accumulated knowledge skills developed in a

individual This technique is based on communication in two entities in open

environment amp positive attitude towards problem resolution

21

BMT (

Behavioral

Modulation

Technique)

To impart skills leading to increase of productivity of employees and

motivate them

22 Recognition

Recognition is most important for any human being In kaizen activities we

take care of appreciating every improvement either by individual or by team

The theme is ldquoMaking everybody a herordquo There are 44 ways of appreciatingemployees without actual monitory gains or amount

23 Turbo Kaizen

- Idea generation is done through Turbo Kaizen amp implemented using Kaizen

tools

-Kaizen activities help faster implementation of cost saving ideas

24 Ergonomics

Ergonomics was coined from the Greek words ergon (meaning work) and

nomos (meaning rules) ldquo Fit the task to the person not the person to the

taskldquo

A good way to understand what ergonomics means is to think about the term

user-friendly

25 Karakuri

Machine layout is modified in such a manner that flow of material from one

machine to other machine is maintained without energy consumption by

taking advantage gravity

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Welcome

to Presentation

onOFFICE KAIZEN

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- Why Office Kaizen What are its‟ benefits

bull To improve productivity efficiency in the administrative functions andidentify and eliminate losses This includes analyzing processes andprocedures towards increased office automation

Benefits

bull Involvement of all people in support functions for focusing on betterplant performance

bull Reduction in administrative costs - Reduced inventory carrying cost

bull Better utilized work area - Reduce repetitive work

bull Motivate people in support areas - Multiskilling in support areas

bull Some evident results are- Reduced inventory levels in all parts of the supply chain

- Reduction in number of files

- Reduction of overhead costs (to include cost of non-productionnoncapital equipment)

- Productivity of people in support functions

- Breakdown of office equipment - Reduced manpower- Customer complaints due to logistics

- Expenses due to emergency dispatchespurchases

- Clean and pleasant work environment

d fi i ffi i16

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- How to define P Q C D S M in Office Kaizen

bull Each company will have to define for themselves looking at all losses which affect plantperformance

These are some examples

bull P ndash Production output lost due to want of material

ndash Manpower productivity

ndash Production output lost due to want of tools

bull Q ndash Mistakes in preparation of cheques bills invoices payroll

ndash Customer returnswarranty attributable to BOPs

ndash Rejectionrework in BOP‟sjob work

ndash Office area rework

bull C ndash Buying costunit produced

ndash Cost of logistics ndash inboundoutbound

ndash Cost of carrying inventory ndash Cost of communication

ndash Demurrage costs

bull D ndash Logistics losses(Delay in loadingunloading)

ndash Delay in delivery due to any of the support functions

ndash Delay in payments to suppliers

ndash Delay in information

bull S ndash Safety in material handlingstoreslogistics

ndash Safety of soft and hard databull M ndash Number of kaizens in office areas

H t t t ffi K i 16

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- How to start office Kaizen

Steps followed are

- Providing awareness about office Kaizen to all support departments

- Helping them to identify P Q C D S M in each function in relation to plantperformance

- Identify the scope for improvement in each function- Collect relevant data

- Help them to solve problems in their Circles Teams

- Make up an activity board where progress is monitored on both sides ndash results andactions along with Kaizens

How to identify losses in office Kaizen

In each functional area identify the losses separately and add them up to build up amaster plan for Office Kaizen For example

- office equipment breakdown

- communication channel breakdown telephone and fax lines

- time spent on retrieval of information

- non availability of correct on line stock status

- customer complaints due to logistics

- expenses on emergency dispatchespurchases- cost reduction on non-productionnon capital items

H t l t K b t K i t i f Offi K i 16

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- How to select Kobetsu Kaizen topics from Office Kaizen

Kobetsu Kaizen topics are selected aiming at --

- Inventory reduction- Lead time reduction of critical processes

- Motion amp space losses

- retrieval time reduction

- reducing or eliminating office work flow stagnation

- equalizing the work load

- analyzing for bdquono material‟ areas and improving them

- Improving the office efficiency

ndash By eliminating the time loss on retrieval of information

ndash By achieving zero breakdown of office equipment like telephoneand fax Lines Xerox machine etc

PPM Ch t IN OFFICE16

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- PPM Chart IN OFFICENov Dec Jan Feb Mar

96667 136667 110000 93333 1366

56 46 153 46

April May June July Aug

58333

90

Defects

Defects Expressed in 5W 1H

Fassion1 2 3 4 5 OF

S U N D A Y

8 9 10 11 12 OF

S U N D A Y

15 16 17 18 19 OF

S U N D A Y

22 23 24 25 26 OF

S U N D A Y

29 30

Total

Defect

s

PPM

1 BILL OF MATERIAL CHANGE 0 0 0 0 0

2 SUPPLIER FAULT 0 1 0 1 0 1 1 0 1 2 1 0 2 0 0 0 6 16 533

3 BUYER FAULT 0 0 0 0 0 0

4ENGINE PREPONED ADDITIONAL ENGINE 0 0 0 0 0 0 0

5 RRP-REQT RPORT PROBLEM 0 0 0 0 0 0 0

6 STOCK DESCRIPANCY 0 0 0 0 0 0 0

7 QUALITY SOURCING ISSUES 0 0 0 0 0 0 0 1 05 1666

8 DELAY GRR POSTING 0 0 0 0 0

9 TRANSPORTATION PROBLEM 0 0 0 1 0 1

Total Defects 0 0 0 0 0 0 0 1 0 1 1 1 0 0 1 0 1 2 1 0 0 0 3 0 0 0 0 0 0 6 0 175 583

0 0 0 0 0 0 0 3 3 3 3

0 3 3 3 3

3 3 3 3

3 3 3 3

0 0 3 3 3 3

0 3 3 3 3

6 6 6 7

3 3 3 3

0 0 0 8 3 3 3

0 0 0 0 0 0 2 0 0 0 0

0

Number of active parts for a month=300 NOS

Defects Per Million

Weekly PPM 0 5 5 6

2 2 2 2

2 2 2 2

0

What Short of material while Pulli Why Various reasons as above

Where In the Store Who Kanban process owener(store person)

When While Kanban Pulling How During routine work

MONTHLY

Sr

no

MONTHLY PP

Month

PPM

Kaizen

DATE

Month

PPM

Kaizen

Daily PPM Value for Feb - 2001

0

4000

8000

12000

16000

20000

24000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30Date

P P M

V a l u e

Weekly PPM Value

0

500

1000

1500

2000

2500

1 2 3 4 5

Week P P M

M P T bl IN OFFICE16

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- MoP Table IN OFFICEHuman Resources MOP summary

May02 Jun 02 Jul02 Aug 02 Sep02 Oct 02 Nov 02 Dec 02 Jan03 Feb03

Productivity (P)

Actual 6915 6546 4989 5806 5645 4879 5056 4746 5308 5158

Desired 50 50 50 50 50 50 50 50 50 50

Actual 300 250 150 250 250 200 150 150 175 225 450

Desired 200 200 200 200 200 200 200 200 200 200 200

Quality (Q)

Actual 76

Desired(Tar et)

80

Actual 12th 10th 12th 12th 10th 10th 10th 10th 9th 8th

Desired 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th

Actual 9th 7th 7th 8th 8th 7th 7th 7th 7th 6th

Desired 8th 7th 6th 6th 6th 6th 6th 6th 6th 6th 6th

Actual 5th 5th 5th 5th 5th 5th 5th 5th 5th 4th 5th

Desired 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th

Actual 0 1 0 1 1 1 0 1 1 1 2

Desired 0 0 0 0 0 0 0 0 0 0 0

BEFORE AFTER 5S

RESULT MONITORActual

DeasiredApr02

AFTER 5S

PeopleEngineDay

HRFE Score (Yearly

measure) (Measured one in a year)

Delivery (D)

Monthly Report Submission

Safety Incidents (S)

No of Accidents Month

CPS Report

Monthly headcount data

No of people involved in

community Welfare

- Kaizen Projects in Offices

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HR

bull Improve employee data adequacy

bull Transfer of old PF accountbull Consolidation of banks for salary payment

bull Safety on road Safety goggles

bull Safety gates on shop floors

bull Pokayokes on accidents ( Radial drills Signs on walkways )

bull Prevention of epidemic diseases

bull Canteen Improvement ndash Kanban for material

- Energy saving

- Improve ventilation and lighting

- Roof cooling by purified drainage

water

- Kaizen Projects in Offices

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HR

bull Improvement in Health awareness ( check up Lectures

De addiction campsbull Bench marking visits to other factories

bull Recognition policy

bull Participation in intra company competition

bull Safety poster competition

bull ldquoOrdquo tag campaign for safety

bull ATM counter bank facility at gate

bull Prize distribution by Union leaders

bull Letter to family for good work

bull Proper lighting and ventilation at workplace

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bull Poka-yoke (pronounced POH-kah YOH-kayldquo ) bull Japanese words poka (inadvertent mistake) and yoke

(prevent) was invented by Shigeo Shingo in the 1960s

bull The essential idea of poka-yoke is to design your process so

that mistakes are impossible or at least easily detected and

corrected

About Shigeo Shingohelliphelliphellip

bull A leading proponent of statistical process control

bull Became frustrated with the statistical approach

bull Statistical sampling implies that some products to gountested with the result that some rate of defects would

always reach the customer

About POKA YOKEhelliphelliphelliphellip

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bull Shingo was communicated of a problem inldquoYamada Electric plantrdquo in 1961

bull A small switch with two push-buttons supported by two

springs occasionally the worker assembling the switch would

forget to insert a spring under each push-button

bull Sometimes the error would not be discovered until the unitreached a customer

bull Factory would have to dispatch an engineer to the customer

site to disassemble the switch insert the missing spring and

re-assemble the switch

bull This problem of the missing spring was both costly andembarrassing

bull Despite everyones best intentions the missing spring problem

would eventually re-appear

Birth of POKA YOKE helliphelliphellip

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Pokayoke ActionError Has

Occurred

Detection

Is Made

Defect

Is

Signaled Control

Feedback

GivenProcess

Is

Stopped

POKA YOKE Action

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bull A system for organising work that prevents the error

bull Excludes any risk of error even by the beginner

bull Allows everyone to operate without mistake

bull Prevents error that are about to occur

bull Inspection time will be minimised

What is ldquoMistake Proofing ldquo Why should we do it

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Mistake -Proof Approach

List of Problems ndash Select

Form a Team

Brain-writing at Gemba

Why-Why Analysis leads to root cause

Kaizens on root cause

Establish Activities to maintain standard

Work Towards Low Cost Automation

Plan

Do

Check

Act

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What - A tool that helps to eliminate inadvertent human errors

- Helps to build quality in product at sourceWhere - Is helpful in highly repetitive situations High Productivity areas

may lead to mistakes sometimes

(Unintentional errors - Forgetting Ignoring Inattentiveness )

eg - Complex processes Repetitive assembly mistakes

When - Sourced from Safety issues Driven by known quality problems

Customer complaints RFT P Tags BIS issues FMEA

Why - Builds quality in the product waste elimination

How - Pokayoke is often LOW COST or NO COST solutions

POKA YOKE helps in case of unintentional mistakes and not mischiefs

Pokayoke - Fail safe in 5 W 1 H

Kaizen

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Welcome

Learning Session on

Model Machine

Objectives

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j

To Learn

bull Concept of Model Machine - P - PC Balance

bull Why Model Machine

bull 8 Major losses

bull OEE Calculations

bull How to Develop

bull Documentation

bull Examples

Wh M d l M hi

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Why Model MachineProfit = Sales ndash Cost

Profit = Sales ndash Mfg Cost

To reduce manufacturing cost needs optimumutilization of all assets ie resources

Measurement of effective utilization of all

resources is Overall Equipment Efficiency( OEE)

(09 09 09 = 73)

Why Model Machine

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Profit = Total sales ndash Total cost

Why Model Machine

Profit = Selling Prices - Input Mfg cost up

( competition ) ( Increasing cost of input resources )

To maintain improve profit hellip Solution is ldquo Reduce Mfg costrdquo

Improve Asset Utilization

Improve Overall Equipment ldquoEfficiencyrdquo (OEE)

OEE = Availability x Performance x Quality

Our goal should be to improve OEE gt 85

world class Benchmark = 95

Why Model Machine

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Why Model Machine

If

OEE = Mfg Cost

Mfg cost = profit

eg Consider a MC of cost Rs 5 cr

Utilization in Japan china ndash OEE 90Utilization in India ndash OEE 45 (45 7080)So product cost in India will be 2 times than the cost in

china

Key is improve to OEEAchievement on 8 Model Machines - OEE improved

from 45 to 75 85

P - PC Balance

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P PC Balance

Production Vs Production Capability

Engine+Parts Equipment + MC + Test Bed

Model Machine

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Factory Within Factory is BU

BU Within BU is MODEL MC

WHY Model MC

To deliver -Cost Effective Product to ldquoInternalrdquo amp Externalrdquo Customer

Zero - Breakdown

By Achieving - Zero - Accident

Zero - Defect

To Success is ldquoImprove OEErdquo (Overall Equipment Effectiveness)

5 - M‟S OF PRODUCTION

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bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

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NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

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Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

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Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

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What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

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Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

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TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

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INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

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TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

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What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

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TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

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TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

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Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

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US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

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g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

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TPSLean Principles

Click to proceed

TPSLean Principles

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TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

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Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

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Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

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Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

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Principle 2 Takt time

Takt Time

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bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

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Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

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Principle 3

Non-value added activities

What are Non-value added activities

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bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

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1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

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bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

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bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

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Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

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bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

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bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

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bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

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bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

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Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

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bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

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bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

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ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

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Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

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Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

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bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

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bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

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bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

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Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

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PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

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httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

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bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

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842019 Presentation on TPS -JIT Kanban

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India Limited

Innovation amp Kaizen

1

30

300

Kaizen is a small improvement carried out by the person in his own workplace

with nil or negligible investment

Kaizen Tools

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Kaizen Tools

1bdquoO‟ ndash

Opportunity

Tag

-Small Improvement - keeping in mind 1-30-300 triangle Avoid major stoppage

by proactive methods

- Structured process for Involvement Registration and tracking of every small

improvement

2 Gemba Kaizen - Focused work station improvement for elimination of waste - Improvementsowned by associates

3 5 S Activities- Seiri Seiton Seiso Seiketsu Shitsuke Disciplined approach for lean

management - Foundation for JIT Develop culture of discipline

4 7 Step Project

-Quality improvement projects taken from PPM chart Customer complaint

-Team work for resolving through 7 step structured process ( 5W1H CEdac

chips 5 Why root cause )

5Kobetsu

Kaizen

-Focused improvement under taken for quality waste elimination ( Kit

improvement )

6Material Feed

System

- Inventory control through 5 S 2 Bin System Movement reduction Linkage

upto supplier order )

7Layout

Modification

-Global layout with assembly at centre amp local layout in form of feeding system

-U shape layouts for synchronization of flow and inventory control Improve

material handling

8 One Piece Flow- Step by step reduction in inventory with final aim of JIT ( Zero - Breakdown

Accident Defect)

9 Model Machine

-Activities include -1S 2S Transparency MISER to improve availability

-OEE improvement through EYE chart 3S 3M chart 5S Before and After

monitoring each week

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10 Eye Chart-7 Step problem Pokayoke etc are sourced from these OEE charts

-Common chart for all BUs to note down quality defect

11 SMED

-Reduction in set up time by study of set up change activities video film

-Separating internal and external activities Modifications in fixtures auto

clamping etc

12 MISER- M-minimize I- improvise S- simplify E- eliminate R- reduce --- Continuous

improvement

13 POKAYOKE

- Failsafing for operator‟s un-intentional mistake and total quality

improvement

- Cost reduction by attacking poor quality kit shortages handling

improvement

14IFC ( Initial

Flow Control)

- Making a list of improvements by reviewing quality problems and customer

complaint

- These points will be used for ordering new machines or making

improvements in new product

15 KANBAN- Consumption based material procurement system Ensures availability of

material with minimum inventory

16bdquoO‟ Tag

Campaign

- To increase awareness for Safety PokaYoke Dirty Difficult Danger and

Deterioration

17 Office Kaizen- Apply kaizen tools for increasing effectiveness and reduce delays ( quick

response )

18 Training-Training for acquiring new skills at Gemba Improves employees on

continuous basis

Th f f f h l f t t ib t d b

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19 PQCD MoP

- These are measures of performance for whole factory contributed by

individual business units

- Review and correction is needed every month in 5S Before After chart

20JOHARI

WINDOW

-This technique is used to identify root causes in human elements while

solving problems using accumulated knowledge skills developed in a

individual This technique is based on communication in two entities in open

environment amp positive attitude towards problem resolution

21

BMT (

Behavioral

Modulation

Technique)

To impart skills leading to increase of productivity of employees and

motivate them

22 Recognition

Recognition is most important for any human being In kaizen activities we

take care of appreciating every improvement either by individual or by team

The theme is ldquoMaking everybody a herordquo There are 44 ways of appreciatingemployees without actual monitory gains or amount

23 Turbo Kaizen

- Idea generation is done through Turbo Kaizen amp implemented using Kaizen

tools

-Kaizen activities help faster implementation of cost saving ideas

24 Ergonomics

Ergonomics was coined from the Greek words ergon (meaning work) and

nomos (meaning rules) ldquo Fit the task to the person not the person to the

taskldquo

A good way to understand what ergonomics means is to think about the term

user-friendly

25 Karakuri

Machine layout is modified in such a manner that flow of material from one

machine to other machine is maintained without energy consumption by

taking advantage gravity

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Welcome

to Presentation

onOFFICE KAIZEN

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- Why Office Kaizen What are its‟ benefits

bull To improve productivity efficiency in the administrative functions andidentify and eliminate losses This includes analyzing processes andprocedures towards increased office automation

Benefits

bull Involvement of all people in support functions for focusing on betterplant performance

bull Reduction in administrative costs - Reduced inventory carrying cost

bull Better utilized work area - Reduce repetitive work

bull Motivate people in support areas - Multiskilling in support areas

bull Some evident results are- Reduced inventory levels in all parts of the supply chain

- Reduction in number of files

- Reduction of overhead costs (to include cost of non-productionnoncapital equipment)

- Productivity of people in support functions

- Breakdown of office equipment - Reduced manpower- Customer complaints due to logistics

- Expenses due to emergency dispatchespurchases

- Clean and pleasant work environment

d fi i ffi i16

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- How to define P Q C D S M in Office Kaizen

bull Each company will have to define for themselves looking at all losses which affect plantperformance

These are some examples

bull P ndash Production output lost due to want of material

ndash Manpower productivity

ndash Production output lost due to want of tools

bull Q ndash Mistakes in preparation of cheques bills invoices payroll

ndash Customer returnswarranty attributable to BOPs

ndash Rejectionrework in BOP‟sjob work

ndash Office area rework

bull C ndash Buying costunit produced

ndash Cost of logistics ndash inboundoutbound

ndash Cost of carrying inventory ndash Cost of communication

ndash Demurrage costs

bull D ndash Logistics losses(Delay in loadingunloading)

ndash Delay in delivery due to any of the support functions

ndash Delay in payments to suppliers

ndash Delay in information

bull S ndash Safety in material handlingstoreslogistics

ndash Safety of soft and hard databull M ndash Number of kaizens in office areas

H t t t ffi K i 16

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- How to start office Kaizen

Steps followed are

- Providing awareness about office Kaizen to all support departments

- Helping them to identify P Q C D S M in each function in relation to plantperformance

- Identify the scope for improvement in each function- Collect relevant data

- Help them to solve problems in their Circles Teams

- Make up an activity board where progress is monitored on both sides ndash results andactions along with Kaizens

How to identify losses in office Kaizen

In each functional area identify the losses separately and add them up to build up amaster plan for Office Kaizen For example

- office equipment breakdown

- communication channel breakdown telephone and fax lines

- time spent on retrieval of information

- non availability of correct on line stock status

- customer complaints due to logistics

- expenses on emergency dispatchespurchases- cost reduction on non-productionnon capital items

H t l t K b t K i t i f Offi K i 16

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- How to select Kobetsu Kaizen topics from Office Kaizen

Kobetsu Kaizen topics are selected aiming at --

- Inventory reduction- Lead time reduction of critical processes

- Motion amp space losses

- retrieval time reduction

- reducing or eliminating office work flow stagnation

- equalizing the work load

- analyzing for bdquono material‟ areas and improving them

- Improving the office efficiency

ndash By eliminating the time loss on retrieval of information

ndash By achieving zero breakdown of office equipment like telephoneand fax Lines Xerox machine etc

PPM Ch t IN OFFICE16

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- PPM Chart IN OFFICENov Dec Jan Feb Mar

96667 136667 110000 93333 1366

56 46 153 46

April May June July Aug

58333

90

Defects

Defects Expressed in 5W 1H

Fassion1 2 3 4 5 OF

S U N D A Y

8 9 10 11 12 OF

S U N D A Y

15 16 17 18 19 OF

S U N D A Y

22 23 24 25 26 OF

S U N D A Y

29 30

Total

Defect

s

PPM

1 BILL OF MATERIAL CHANGE 0 0 0 0 0

2 SUPPLIER FAULT 0 1 0 1 0 1 1 0 1 2 1 0 2 0 0 0 6 16 533

3 BUYER FAULT 0 0 0 0 0 0

4ENGINE PREPONED ADDITIONAL ENGINE 0 0 0 0 0 0 0

5 RRP-REQT RPORT PROBLEM 0 0 0 0 0 0 0

6 STOCK DESCRIPANCY 0 0 0 0 0 0 0

7 QUALITY SOURCING ISSUES 0 0 0 0 0 0 0 1 05 1666

8 DELAY GRR POSTING 0 0 0 0 0

9 TRANSPORTATION PROBLEM 0 0 0 1 0 1

Total Defects 0 0 0 0 0 0 0 1 0 1 1 1 0 0 1 0 1 2 1 0 0 0 3 0 0 0 0 0 0 6 0 175 583

0 0 0 0 0 0 0 3 3 3 3

0 3 3 3 3

3 3 3 3

3 3 3 3

0 0 3 3 3 3

0 3 3 3 3

6 6 6 7

3 3 3 3

0 0 0 8 3 3 3

0 0 0 0 0 0 2 0 0 0 0

0

Number of active parts for a month=300 NOS

Defects Per Million

Weekly PPM 0 5 5 6

2 2 2 2

2 2 2 2

0

What Short of material while Pulli Why Various reasons as above

Where In the Store Who Kanban process owener(store person)

When While Kanban Pulling How During routine work

MONTHLY

Sr

no

MONTHLY PP

Month

PPM

Kaizen

DATE

Month

PPM

Kaizen

Daily PPM Value for Feb - 2001

0

4000

8000

12000

16000

20000

24000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30Date

P P M

V a l u e

Weekly PPM Value

0

500

1000

1500

2000

2500

1 2 3 4 5

Week P P M

M P T bl IN OFFICE16

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- MoP Table IN OFFICEHuman Resources MOP summary

May02 Jun 02 Jul02 Aug 02 Sep02 Oct 02 Nov 02 Dec 02 Jan03 Feb03

Productivity (P)

Actual 6915 6546 4989 5806 5645 4879 5056 4746 5308 5158

Desired 50 50 50 50 50 50 50 50 50 50

Actual 300 250 150 250 250 200 150 150 175 225 450

Desired 200 200 200 200 200 200 200 200 200 200 200

Quality (Q)

Actual 76

Desired(Tar et)

80

Actual 12th 10th 12th 12th 10th 10th 10th 10th 9th 8th

Desired 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th

Actual 9th 7th 7th 8th 8th 7th 7th 7th 7th 6th

Desired 8th 7th 6th 6th 6th 6th 6th 6th 6th 6th 6th

Actual 5th 5th 5th 5th 5th 5th 5th 5th 5th 4th 5th

Desired 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th

Actual 0 1 0 1 1 1 0 1 1 1 2

Desired 0 0 0 0 0 0 0 0 0 0 0

BEFORE AFTER 5S

RESULT MONITORActual

DeasiredApr02

AFTER 5S

PeopleEngineDay

HRFE Score (Yearly

measure) (Measured one in a year)

Delivery (D)

Monthly Report Submission

Safety Incidents (S)

No of Accidents Month

CPS Report

Monthly headcount data

No of people involved in

community Welfare

- Kaizen Projects in Offices

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HR

bull Improve employee data adequacy

bull Transfer of old PF accountbull Consolidation of banks for salary payment

bull Safety on road Safety goggles

bull Safety gates on shop floors

bull Pokayokes on accidents ( Radial drills Signs on walkways )

bull Prevention of epidemic diseases

bull Canteen Improvement ndash Kanban for material

- Energy saving

- Improve ventilation and lighting

- Roof cooling by purified drainage

water

- Kaizen Projects in Offices

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HR

bull Improvement in Health awareness ( check up Lectures

De addiction campsbull Bench marking visits to other factories

bull Recognition policy

bull Participation in intra company competition

bull Safety poster competition

bull ldquoOrdquo tag campaign for safety

bull ATM counter bank facility at gate

bull Prize distribution by Union leaders

bull Letter to family for good work

bull Proper lighting and ventilation at workplace

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bull Poka-yoke (pronounced POH-kah YOH-kayldquo ) bull Japanese words poka (inadvertent mistake) and yoke

(prevent) was invented by Shigeo Shingo in the 1960s

bull The essential idea of poka-yoke is to design your process so

that mistakes are impossible or at least easily detected and

corrected

About Shigeo Shingohelliphelliphellip

bull A leading proponent of statistical process control

bull Became frustrated with the statistical approach

bull Statistical sampling implies that some products to gountested with the result that some rate of defects would

always reach the customer

About POKA YOKEhelliphelliphelliphellip

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bull Shingo was communicated of a problem inldquoYamada Electric plantrdquo in 1961

bull A small switch with two push-buttons supported by two

springs occasionally the worker assembling the switch would

forget to insert a spring under each push-button

bull Sometimes the error would not be discovered until the unitreached a customer

bull Factory would have to dispatch an engineer to the customer

site to disassemble the switch insert the missing spring and

re-assemble the switch

bull This problem of the missing spring was both costly andembarrassing

bull Despite everyones best intentions the missing spring problem

would eventually re-appear

Birth of POKA YOKE helliphelliphellip

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Pokayoke ActionError Has

Occurred

Detection

Is Made

Defect

Is

Signaled Control

Feedback

GivenProcess

Is

Stopped

POKA YOKE Action

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bull A system for organising work that prevents the error

bull Excludes any risk of error even by the beginner

bull Allows everyone to operate without mistake

bull Prevents error that are about to occur

bull Inspection time will be minimised

What is ldquoMistake Proofing ldquo Why should we do it

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Mistake -Proof Approach

List of Problems ndash Select

Form a Team

Brain-writing at Gemba

Why-Why Analysis leads to root cause

Kaizens on root cause

Establish Activities to maintain standard

Work Towards Low Cost Automation

Plan

Do

Check

Act

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What - A tool that helps to eliminate inadvertent human errors

- Helps to build quality in product at sourceWhere - Is helpful in highly repetitive situations High Productivity areas

may lead to mistakes sometimes

(Unintentional errors - Forgetting Ignoring Inattentiveness )

eg - Complex processes Repetitive assembly mistakes

When - Sourced from Safety issues Driven by known quality problems

Customer complaints RFT P Tags BIS issues FMEA

Why - Builds quality in the product waste elimination

How - Pokayoke is often LOW COST or NO COST solutions

POKA YOKE helps in case of unintentional mistakes and not mischiefs

Pokayoke - Fail safe in 5 W 1 H

Kaizen

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Welcome

Learning Session on

Model Machine

Objectives

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j

To Learn

bull Concept of Model Machine - P - PC Balance

bull Why Model Machine

bull 8 Major losses

bull OEE Calculations

bull How to Develop

bull Documentation

bull Examples

Wh M d l M hi

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Why Model MachineProfit = Sales ndash Cost

Profit = Sales ndash Mfg Cost

To reduce manufacturing cost needs optimumutilization of all assets ie resources

Measurement of effective utilization of all

resources is Overall Equipment Efficiency( OEE)

(09 09 09 = 73)

Why Model Machine

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Profit = Total sales ndash Total cost

Why Model Machine

Profit = Selling Prices - Input Mfg cost up

( competition ) ( Increasing cost of input resources )

To maintain improve profit hellip Solution is ldquo Reduce Mfg costrdquo

Improve Asset Utilization

Improve Overall Equipment ldquoEfficiencyrdquo (OEE)

OEE = Availability x Performance x Quality

Our goal should be to improve OEE gt 85

world class Benchmark = 95

Why Model Machine

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Why Model Machine

If

OEE = Mfg Cost

Mfg cost = profit

eg Consider a MC of cost Rs 5 cr

Utilization in Japan china ndash OEE 90Utilization in India ndash OEE 45 (45 7080)So product cost in India will be 2 times than the cost in

china

Key is improve to OEEAchievement on 8 Model Machines - OEE improved

from 45 to 75 85

P - PC Balance

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P PC Balance

Production Vs Production Capability

Engine+Parts Equipment + MC + Test Bed

Model Machine

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Factory Within Factory is BU

BU Within BU is MODEL MC

WHY Model MC

To deliver -Cost Effective Product to ldquoInternalrdquo amp Externalrdquo Customer

Zero - Breakdown

By Achieving - Zero - Accident

Zero - Defect

To Success is ldquoImprove OEErdquo (Overall Equipment Effectiveness)

5 - M‟S OF PRODUCTION

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bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

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NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

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Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

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Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

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What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

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Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

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TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

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INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

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TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

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What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

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TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

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TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

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Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

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US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

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g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

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TPSLean Principles

Click to proceed

TPSLean Principles

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TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

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Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

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Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

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Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

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Principle 2 Takt time

Takt Time

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bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

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Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

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Principle 3

Non-value added activities

What are Non-value added activities

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bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

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1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

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bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

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bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

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Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

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bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

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bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

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bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

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bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

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Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

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bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

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bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

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ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

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bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

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Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

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Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

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bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

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bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

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bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

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Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

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PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

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bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

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bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

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Kaizen Tools

1bdquoO‟ ndash

Opportunity

Tag

-Small Improvement - keeping in mind 1-30-300 triangle Avoid major stoppage

by proactive methods

- Structured process for Involvement Registration and tracking of every small

improvement

2 Gemba Kaizen - Focused work station improvement for elimination of waste - Improvementsowned by associates

3 5 S Activities- Seiri Seiton Seiso Seiketsu Shitsuke Disciplined approach for lean

management - Foundation for JIT Develop culture of discipline

4 7 Step Project

-Quality improvement projects taken from PPM chart Customer complaint

-Team work for resolving through 7 step structured process ( 5W1H CEdac

chips 5 Why root cause )

5Kobetsu

Kaizen

-Focused improvement under taken for quality waste elimination ( Kit

improvement )

6Material Feed

System

- Inventory control through 5 S 2 Bin System Movement reduction Linkage

upto supplier order )

7Layout

Modification

-Global layout with assembly at centre amp local layout in form of feeding system

-U shape layouts for synchronization of flow and inventory control Improve

material handling

8 One Piece Flow- Step by step reduction in inventory with final aim of JIT ( Zero - Breakdown

Accident Defect)

9 Model Machine

-Activities include -1S 2S Transparency MISER to improve availability

-OEE improvement through EYE chart 3S 3M chart 5S Before and After

monitoring each week

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10 Eye Chart-7 Step problem Pokayoke etc are sourced from these OEE charts

-Common chart for all BUs to note down quality defect

11 SMED

-Reduction in set up time by study of set up change activities video film

-Separating internal and external activities Modifications in fixtures auto

clamping etc

12 MISER- M-minimize I- improvise S- simplify E- eliminate R- reduce --- Continuous

improvement

13 POKAYOKE

- Failsafing for operator‟s un-intentional mistake and total quality

improvement

- Cost reduction by attacking poor quality kit shortages handling

improvement

14IFC ( Initial

Flow Control)

- Making a list of improvements by reviewing quality problems and customer

complaint

- These points will be used for ordering new machines or making

improvements in new product

15 KANBAN- Consumption based material procurement system Ensures availability of

material with minimum inventory

16bdquoO‟ Tag

Campaign

- To increase awareness for Safety PokaYoke Dirty Difficult Danger and

Deterioration

17 Office Kaizen- Apply kaizen tools for increasing effectiveness and reduce delays ( quick

response )

18 Training-Training for acquiring new skills at Gemba Improves employees on

continuous basis

Th f f f h l f t t ib t d b

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19 PQCD MoP

- These are measures of performance for whole factory contributed by

individual business units

- Review and correction is needed every month in 5S Before After chart

20JOHARI

WINDOW

-This technique is used to identify root causes in human elements while

solving problems using accumulated knowledge skills developed in a

individual This technique is based on communication in two entities in open

environment amp positive attitude towards problem resolution

21

BMT (

Behavioral

Modulation

Technique)

To impart skills leading to increase of productivity of employees and

motivate them

22 Recognition

Recognition is most important for any human being In kaizen activities we

take care of appreciating every improvement either by individual or by team

The theme is ldquoMaking everybody a herordquo There are 44 ways of appreciatingemployees without actual monitory gains or amount

23 Turbo Kaizen

- Idea generation is done through Turbo Kaizen amp implemented using Kaizen

tools

-Kaizen activities help faster implementation of cost saving ideas

24 Ergonomics

Ergonomics was coined from the Greek words ergon (meaning work) and

nomos (meaning rules) ldquo Fit the task to the person not the person to the

taskldquo

A good way to understand what ergonomics means is to think about the term

user-friendly

25 Karakuri

Machine layout is modified in such a manner that flow of material from one

machine to other machine is maintained without energy consumption by

taking advantage gravity

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Welcome

to Presentation

onOFFICE KAIZEN

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- Why Office Kaizen What are its‟ benefits

bull To improve productivity efficiency in the administrative functions andidentify and eliminate losses This includes analyzing processes andprocedures towards increased office automation

Benefits

bull Involvement of all people in support functions for focusing on betterplant performance

bull Reduction in administrative costs - Reduced inventory carrying cost

bull Better utilized work area - Reduce repetitive work

bull Motivate people in support areas - Multiskilling in support areas

bull Some evident results are- Reduced inventory levels in all parts of the supply chain

- Reduction in number of files

- Reduction of overhead costs (to include cost of non-productionnoncapital equipment)

- Productivity of people in support functions

- Breakdown of office equipment - Reduced manpower- Customer complaints due to logistics

- Expenses due to emergency dispatchespurchases

- Clean and pleasant work environment

d fi i ffi i16

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- How to define P Q C D S M in Office Kaizen

bull Each company will have to define for themselves looking at all losses which affect plantperformance

These are some examples

bull P ndash Production output lost due to want of material

ndash Manpower productivity

ndash Production output lost due to want of tools

bull Q ndash Mistakes in preparation of cheques bills invoices payroll

ndash Customer returnswarranty attributable to BOPs

ndash Rejectionrework in BOP‟sjob work

ndash Office area rework

bull C ndash Buying costunit produced

ndash Cost of logistics ndash inboundoutbound

ndash Cost of carrying inventory ndash Cost of communication

ndash Demurrage costs

bull D ndash Logistics losses(Delay in loadingunloading)

ndash Delay in delivery due to any of the support functions

ndash Delay in payments to suppliers

ndash Delay in information

bull S ndash Safety in material handlingstoreslogistics

ndash Safety of soft and hard databull M ndash Number of kaizens in office areas

H t t t ffi K i 16

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- How to start office Kaizen

Steps followed are

- Providing awareness about office Kaizen to all support departments

- Helping them to identify P Q C D S M in each function in relation to plantperformance

- Identify the scope for improvement in each function- Collect relevant data

- Help them to solve problems in their Circles Teams

- Make up an activity board where progress is monitored on both sides ndash results andactions along with Kaizens

How to identify losses in office Kaizen

In each functional area identify the losses separately and add them up to build up amaster plan for Office Kaizen For example

- office equipment breakdown

- communication channel breakdown telephone and fax lines

- time spent on retrieval of information

- non availability of correct on line stock status

- customer complaints due to logistics

- expenses on emergency dispatchespurchases- cost reduction on non-productionnon capital items

H t l t K b t K i t i f Offi K i 16

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- How to select Kobetsu Kaizen topics from Office Kaizen

Kobetsu Kaizen topics are selected aiming at --

- Inventory reduction- Lead time reduction of critical processes

- Motion amp space losses

- retrieval time reduction

- reducing or eliminating office work flow stagnation

- equalizing the work load

- analyzing for bdquono material‟ areas and improving them

- Improving the office efficiency

ndash By eliminating the time loss on retrieval of information

ndash By achieving zero breakdown of office equipment like telephoneand fax Lines Xerox machine etc

PPM Ch t IN OFFICE16

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- PPM Chart IN OFFICENov Dec Jan Feb Mar

96667 136667 110000 93333 1366

56 46 153 46

April May June July Aug

58333

90

Defects

Defects Expressed in 5W 1H

Fassion1 2 3 4 5 OF

S U N D A Y

8 9 10 11 12 OF

S U N D A Y

15 16 17 18 19 OF

S U N D A Y

22 23 24 25 26 OF

S U N D A Y

29 30

Total

Defect

s

PPM

1 BILL OF MATERIAL CHANGE 0 0 0 0 0

2 SUPPLIER FAULT 0 1 0 1 0 1 1 0 1 2 1 0 2 0 0 0 6 16 533

3 BUYER FAULT 0 0 0 0 0 0

4ENGINE PREPONED ADDITIONAL ENGINE 0 0 0 0 0 0 0

5 RRP-REQT RPORT PROBLEM 0 0 0 0 0 0 0

6 STOCK DESCRIPANCY 0 0 0 0 0 0 0

7 QUALITY SOURCING ISSUES 0 0 0 0 0 0 0 1 05 1666

8 DELAY GRR POSTING 0 0 0 0 0

9 TRANSPORTATION PROBLEM 0 0 0 1 0 1

Total Defects 0 0 0 0 0 0 0 1 0 1 1 1 0 0 1 0 1 2 1 0 0 0 3 0 0 0 0 0 0 6 0 175 583

0 0 0 0 0 0 0 3 3 3 3

0 3 3 3 3

3 3 3 3

3 3 3 3

0 0 3 3 3 3

0 3 3 3 3

6 6 6 7

3 3 3 3

0 0 0 8 3 3 3

0 0 0 0 0 0 2 0 0 0 0

0

Number of active parts for a month=300 NOS

Defects Per Million

Weekly PPM 0 5 5 6

2 2 2 2

2 2 2 2

0

What Short of material while Pulli Why Various reasons as above

Where In the Store Who Kanban process owener(store person)

When While Kanban Pulling How During routine work

MONTHLY

Sr

no

MONTHLY PP

Month

PPM

Kaizen

DATE

Month

PPM

Kaizen

Daily PPM Value for Feb - 2001

0

4000

8000

12000

16000

20000

24000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30Date

P P M

V a l u e

Weekly PPM Value

0

500

1000

1500

2000

2500

1 2 3 4 5

Week P P M

M P T bl IN OFFICE16

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- MoP Table IN OFFICEHuman Resources MOP summary

May02 Jun 02 Jul02 Aug 02 Sep02 Oct 02 Nov 02 Dec 02 Jan03 Feb03

Productivity (P)

Actual 6915 6546 4989 5806 5645 4879 5056 4746 5308 5158

Desired 50 50 50 50 50 50 50 50 50 50

Actual 300 250 150 250 250 200 150 150 175 225 450

Desired 200 200 200 200 200 200 200 200 200 200 200

Quality (Q)

Actual 76

Desired(Tar et)

80

Actual 12th 10th 12th 12th 10th 10th 10th 10th 9th 8th

Desired 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th

Actual 9th 7th 7th 8th 8th 7th 7th 7th 7th 6th

Desired 8th 7th 6th 6th 6th 6th 6th 6th 6th 6th 6th

Actual 5th 5th 5th 5th 5th 5th 5th 5th 5th 4th 5th

Desired 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th

Actual 0 1 0 1 1 1 0 1 1 1 2

Desired 0 0 0 0 0 0 0 0 0 0 0

BEFORE AFTER 5S

RESULT MONITORActual

DeasiredApr02

AFTER 5S

PeopleEngineDay

HRFE Score (Yearly

measure) (Measured one in a year)

Delivery (D)

Monthly Report Submission

Safety Incidents (S)

No of Accidents Month

CPS Report

Monthly headcount data

No of people involved in

community Welfare

- Kaizen Projects in Offices

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HR

bull Improve employee data adequacy

bull Transfer of old PF accountbull Consolidation of banks for salary payment

bull Safety on road Safety goggles

bull Safety gates on shop floors

bull Pokayokes on accidents ( Radial drills Signs on walkways )

bull Prevention of epidemic diseases

bull Canteen Improvement ndash Kanban for material

- Energy saving

- Improve ventilation and lighting

- Roof cooling by purified drainage

water

- Kaizen Projects in Offices

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HR

bull Improvement in Health awareness ( check up Lectures

De addiction campsbull Bench marking visits to other factories

bull Recognition policy

bull Participation in intra company competition

bull Safety poster competition

bull ldquoOrdquo tag campaign for safety

bull ATM counter bank facility at gate

bull Prize distribution by Union leaders

bull Letter to family for good work

bull Proper lighting and ventilation at workplace

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bull Poka-yoke (pronounced POH-kah YOH-kayldquo ) bull Japanese words poka (inadvertent mistake) and yoke

(prevent) was invented by Shigeo Shingo in the 1960s

bull The essential idea of poka-yoke is to design your process so

that mistakes are impossible or at least easily detected and

corrected

About Shigeo Shingohelliphelliphellip

bull A leading proponent of statistical process control

bull Became frustrated with the statistical approach

bull Statistical sampling implies that some products to gountested with the result that some rate of defects would

always reach the customer

About POKA YOKEhelliphelliphelliphellip

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bull Shingo was communicated of a problem inldquoYamada Electric plantrdquo in 1961

bull A small switch with two push-buttons supported by two

springs occasionally the worker assembling the switch would

forget to insert a spring under each push-button

bull Sometimes the error would not be discovered until the unitreached a customer

bull Factory would have to dispatch an engineer to the customer

site to disassemble the switch insert the missing spring and

re-assemble the switch

bull This problem of the missing spring was both costly andembarrassing

bull Despite everyones best intentions the missing spring problem

would eventually re-appear

Birth of POKA YOKE helliphelliphellip

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Pokayoke ActionError Has

Occurred

Detection

Is Made

Defect

Is

Signaled Control

Feedback

GivenProcess

Is

Stopped

POKA YOKE Action

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bull A system for organising work that prevents the error

bull Excludes any risk of error even by the beginner

bull Allows everyone to operate without mistake

bull Prevents error that are about to occur

bull Inspection time will be minimised

What is ldquoMistake Proofing ldquo Why should we do it

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Mistake -Proof Approach

List of Problems ndash Select

Form a Team

Brain-writing at Gemba

Why-Why Analysis leads to root cause

Kaizens on root cause

Establish Activities to maintain standard

Work Towards Low Cost Automation

Plan

Do

Check

Act

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What - A tool that helps to eliminate inadvertent human errors

- Helps to build quality in product at sourceWhere - Is helpful in highly repetitive situations High Productivity areas

may lead to mistakes sometimes

(Unintentional errors - Forgetting Ignoring Inattentiveness )

eg - Complex processes Repetitive assembly mistakes

When - Sourced from Safety issues Driven by known quality problems

Customer complaints RFT P Tags BIS issues FMEA

Why - Builds quality in the product waste elimination

How - Pokayoke is often LOW COST or NO COST solutions

POKA YOKE helps in case of unintentional mistakes and not mischiefs

Pokayoke - Fail safe in 5 W 1 H

Kaizen

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Welcome

Learning Session on

Model Machine

Objectives

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j

To Learn

bull Concept of Model Machine - P - PC Balance

bull Why Model Machine

bull 8 Major losses

bull OEE Calculations

bull How to Develop

bull Documentation

bull Examples

Wh M d l M hi

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Why Model MachineProfit = Sales ndash Cost

Profit = Sales ndash Mfg Cost

To reduce manufacturing cost needs optimumutilization of all assets ie resources

Measurement of effective utilization of all

resources is Overall Equipment Efficiency( OEE)

(09 09 09 = 73)

Why Model Machine

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Profit = Total sales ndash Total cost

Why Model Machine

Profit = Selling Prices - Input Mfg cost up

( competition ) ( Increasing cost of input resources )

To maintain improve profit hellip Solution is ldquo Reduce Mfg costrdquo

Improve Asset Utilization

Improve Overall Equipment ldquoEfficiencyrdquo (OEE)

OEE = Availability x Performance x Quality

Our goal should be to improve OEE gt 85

world class Benchmark = 95

Why Model Machine

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Why Model Machine

If

OEE = Mfg Cost

Mfg cost = profit

eg Consider a MC of cost Rs 5 cr

Utilization in Japan china ndash OEE 90Utilization in India ndash OEE 45 (45 7080)So product cost in India will be 2 times than the cost in

china

Key is improve to OEEAchievement on 8 Model Machines - OEE improved

from 45 to 75 85

P - PC Balance

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P PC Balance

Production Vs Production Capability

Engine+Parts Equipment + MC + Test Bed

Model Machine

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Factory Within Factory is BU

BU Within BU is MODEL MC

WHY Model MC

To deliver -Cost Effective Product to ldquoInternalrdquo amp Externalrdquo Customer

Zero - Breakdown

By Achieving - Zero - Accident

Zero - Defect

To Success is ldquoImprove OEErdquo (Overall Equipment Effectiveness)

5 - M‟S OF PRODUCTION

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bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

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NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

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Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

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Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

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What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

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Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

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TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

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INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

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TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

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What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

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TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

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TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

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Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

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US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

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g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

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TPSLean Principles

Click to proceed

TPSLean Principles

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TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

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Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

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Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

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Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

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Principle 2 Takt time

Takt Time

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bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

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Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

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Principle 3

Non-value added activities

What are Non-value added activities

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bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

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1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

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bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

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bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

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Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

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bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

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bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

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bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

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bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

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Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

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bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

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bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

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ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

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Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

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Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

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bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

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bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

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bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

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Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

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PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

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bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

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bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

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10 Eye Chart-7 Step problem Pokayoke etc are sourced from these OEE charts

-Common chart for all BUs to note down quality defect

11 SMED

-Reduction in set up time by study of set up change activities video film

-Separating internal and external activities Modifications in fixtures auto

clamping etc

12 MISER- M-minimize I- improvise S- simplify E- eliminate R- reduce --- Continuous

improvement

13 POKAYOKE

- Failsafing for operator‟s un-intentional mistake and total quality

improvement

- Cost reduction by attacking poor quality kit shortages handling

improvement

14IFC ( Initial

Flow Control)

- Making a list of improvements by reviewing quality problems and customer

complaint

- These points will be used for ordering new machines or making

improvements in new product

15 KANBAN- Consumption based material procurement system Ensures availability of

material with minimum inventory

16bdquoO‟ Tag

Campaign

- To increase awareness for Safety PokaYoke Dirty Difficult Danger and

Deterioration

17 Office Kaizen- Apply kaizen tools for increasing effectiveness and reduce delays ( quick

response )

18 Training-Training for acquiring new skills at Gemba Improves employees on

continuous basis

Th f f f h l f t t ib t d b

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19 PQCD MoP

- These are measures of performance for whole factory contributed by

individual business units

- Review and correction is needed every month in 5S Before After chart

20JOHARI

WINDOW

-This technique is used to identify root causes in human elements while

solving problems using accumulated knowledge skills developed in a

individual This technique is based on communication in two entities in open

environment amp positive attitude towards problem resolution

21

BMT (

Behavioral

Modulation

Technique)

To impart skills leading to increase of productivity of employees and

motivate them

22 Recognition

Recognition is most important for any human being In kaizen activities we

take care of appreciating every improvement either by individual or by team

The theme is ldquoMaking everybody a herordquo There are 44 ways of appreciatingemployees without actual monitory gains or amount

23 Turbo Kaizen

- Idea generation is done through Turbo Kaizen amp implemented using Kaizen

tools

-Kaizen activities help faster implementation of cost saving ideas

24 Ergonomics

Ergonomics was coined from the Greek words ergon (meaning work) and

nomos (meaning rules) ldquo Fit the task to the person not the person to the

taskldquo

A good way to understand what ergonomics means is to think about the term

user-friendly

25 Karakuri

Machine layout is modified in such a manner that flow of material from one

machine to other machine is maintained without energy consumption by

taking advantage gravity

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Welcome

to Presentation

onOFFICE KAIZEN

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- Why Office Kaizen What are its‟ benefits

bull To improve productivity efficiency in the administrative functions andidentify and eliminate losses This includes analyzing processes andprocedures towards increased office automation

Benefits

bull Involvement of all people in support functions for focusing on betterplant performance

bull Reduction in administrative costs - Reduced inventory carrying cost

bull Better utilized work area - Reduce repetitive work

bull Motivate people in support areas - Multiskilling in support areas

bull Some evident results are- Reduced inventory levels in all parts of the supply chain

- Reduction in number of files

- Reduction of overhead costs (to include cost of non-productionnoncapital equipment)

- Productivity of people in support functions

- Breakdown of office equipment - Reduced manpower- Customer complaints due to logistics

- Expenses due to emergency dispatchespurchases

- Clean and pleasant work environment

d fi i ffi i16

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- How to define P Q C D S M in Office Kaizen

bull Each company will have to define for themselves looking at all losses which affect plantperformance

These are some examples

bull P ndash Production output lost due to want of material

ndash Manpower productivity

ndash Production output lost due to want of tools

bull Q ndash Mistakes in preparation of cheques bills invoices payroll

ndash Customer returnswarranty attributable to BOPs

ndash Rejectionrework in BOP‟sjob work

ndash Office area rework

bull C ndash Buying costunit produced

ndash Cost of logistics ndash inboundoutbound

ndash Cost of carrying inventory ndash Cost of communication

ndash Demurrage costs

bull D ndash Logistics losses(Delay in loadingunloading)

ndash Delay in delivery due to any of the support functions

ndash Delay in payments to suppliers

ndash Delay in information

bull S ndash Safety in material handlingstoreslogistics

ndash Safety of soft and hard databull M ndash Number of kaizens in office areas

H t t t ffi K i 16

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- How to start office Kaizen

Steps followed are

- Providing awareness about office Kaizen to all support departments

- Helping them to identify P Q C D S M in each function in relation to plantperformance

- Identify the scope for improvement in each function- Collect relevant data

- Help them to solve problems in their Circles Teams

- Make up an activity board where progress is monitored on both sides ndash results andactions along with Kaizens

How to identify losses in office Kaizen

In each functional area identify the losses separately and add them up to build up amaster plan for Office Kaizen For example

- office equipment breakdown

- communication channel breakdown telephone and fax lines

- time spent on retrieval of information

- non availability of correct on line stock status

- customer complaints due to logistics

- expenses on emergency dispatchespurchases- cost reduction on non-productionnon capital items

H t l t K b t K i t i f Offi K i 16

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- How to select Kobetsu Kaizen topics from Office Kaizen

Kobetsu Kaizen topics are selected aiming at --

- Inventory reduction- Lead time reduction of critical processes

- Motion amp space losses

- retrieval time reduction

- reducing or eliminating office work flow stagnation

- equalizing the work load

- analyzing for bdquono material‟ areas and improving them

- Improving the office efficiency

ndash By eliminating the time loss on retrieval of information

ndash By achieving zero breakdown of office equipment like telephoneand fax Lines Xerox machine etc

PPM Ch t IN OFFICE16

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- PPM Chart IN OFFICENov Dec Jan Feb Mar

96667 136667 110000 93333 1366

56 46 153 46

April May June July Aug

58333

90

Defects

Defects Expressed in 5W 1H

Fassion1 2 3 4 5 OF

S U N D A Y

8 9 10 11 12 OF

S U N D A Y

15 16 17 18 19 OF

S U N D A Y

22 23 24 25 26 OF

S U N D A Y

29 30

Total

Defect

s

PPM

1 BILL OF MATERIAL CHANGE 0 0 0 0 0

2 SUPPLIER FAULT 0 1 0 1 0 1 1 0 1 2 1 0 2 0 0 0 6 16 533

3 BUYER FAULT 0 0 0 0 0 0

4ENGINE PREPONED ADDITIONAL ENGINE 0 0 0 0 0 0 0

5 RRP-REQT RPORT PROBLEM 0 0 0 0 0 0 0

6 STOCK DESCRIPANCY 0 0 0 0 0 0 0

7 QUALITY SOURCING ISSUES 0 0 0 0 0 0 0 1 05 1666

8 DELAY GRR POSTING 0 0 0 0 0

9 TRANSPORTATION PROBLEM 0 0 0 1 0 1

Total Defects 0 0 0 0 0 0 0 1 0 1 1 1 0 0 1 0 1 2 1 0 0 0 3 0 0 0 0 0 0 6 0 175 583

0 0 0 0 0 0 0 3 3 3 3

0 3 3 3 3

3 3 3 3

3 3 3 3

0 0 3 3 3 3

0 3 3 3 3

6 6 6 7

3 3 3 3

0 0 0 8 3 3 3

0 0 0 0 0 0 2 0 0 0 0

0

Number of active parts for a month=300 NOS

Defects Per Million

Weekly PPM 0 5 5 6

2 2 2 2

2 2 2 2

0

What Short of material while Pulli Why Various reasons as above

Where In the Store Who Kanban process owener(store person)

When While Kanban Pulling How During routine work

MONTHLY

Sr

no

MONTHLY PP

Month

PPM

Kaizen

DATE

Month

PPM

Kaizen

Daily PPM Value for Feb - 2001

0

4000

8000

12000

16000

20000

24000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30Date

P P M

V a l u e

Weekly PPM Value

0

500

1000

1500

2000

2500

1 2 3 4 5

Week P P M

M P T bl IN OFFICE16

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- MoP Table IN OFFICEHuman Resources MOP summary

May02 Jun 02 Jul02 Aug 02 Sep02 Oct 02 Nov 02 Dec 02 Jan03 Feb03

Productivity (P)

Actual 6915 6546 4989 5806 5645 4879 5056 4746 5308 5158

Desired 50 50 50 50 50 50 50 50 50 50

Actual 300 250 150 250 250 200 150 150 175 225 450

Desired 200 200 200 200 200 200 200 200 200 200 200

Quality (Q)

Actual 76

Desired(Tar et)

80

Actual 12th 10th 12th 12th 10th 10th 10th 10th 9th 8th

Desired 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th

Actual 9th 7th 7th 8th 8th 7th 7th 7th 7th 6th

Desired 8th 7th 6th 6th 6th 6th 6th 6th 6th 6th 6th

Actual 5th 5th 5th 5th 5th 5th 5th 5th 5th 4th 5th

Desired 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th

Actual 0 1 0 1 1 1 0 1 1 1 2

Desired 0 0 0 0 0 0 0 0 0 0 0

BEFORE AFTER 5S

RESULT MONITORActual

DeasiredApr02

AFTER 5S

PeopleEngineDay

HRFE Score (Yearly

measure) (Measured one in a year)

Delivery (D)

Monthly Report Submission

Safety Incidents (S)

No of Accidents Month

CPS Report

Monthly headcount data

No of people involved in

community Welfare

- Kaizen Projects in Offices

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HR

bull Improve employee data adequacy

bull Transfer of old PF accountbull Consolidation of banks for salary payment

bull Safety on road Safety goggles

bull Safety gates on shop floors

bull Pokayokes on accidents ( Radial drills Signs on walkways )

bull Prevention of epidemic diseases

bull Canteen Improvement ndash Kanban for material

- Energy saving

- Improve ventilation and lighting

- Roof cooling by purified drainage

water

- Kaizen Projects in Offices

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HR

bull Improvement in Health awareness ( check up Lectures

De addiction campsbull Bench marking visits to other factories

bull Recognition policy

bull Participation in intra company competition

bull Safety poster competition

bull ldquoOrdquo tag campaign for safety

bull ATM counter bank facility at gate

bull Prize distribution by Union leaders

bull Letter to family for good work

bull Proper lighting and ventilation at workplace

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bull Poka-yoke (pronounced POH-kah YOH-kayldquo ) bull Japanese words poka (inadvertent mistake) and yoke

(prevent) was invented by Shigeo Shingo in the 1960s

bull The essential idea of poka-yoke is to design your process so

that mistakes are impossible or at least easily detected and

corrected

About Shigeo Shingohelliphelliphellip

bull A leading proponent of statistical process control

bull Became frustrated with the statistical approach

bull Statistical sampling implies that some products to gountested with the result that some rate of defects would

always reach the customer

About POKA YOKEhelliphelliphelliphellip

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bull Shingo was communicated of a problem inldquoYamada Electric plantrdquo in 1961

bull A small switch with two push-buttons supported by two

springs occasionally the worker assembling the switch would

forget to insert a spring under each push-button

bull Sometimes the error would not be discovered until the unitreached a customer

bull Factory would have to dispatch an engineer to the customer

site to disassemble the switch insert the missing spring and

re-assemble the switch

bull This problem of the missing spring was both costly andembarrassing

bull Despite everyones best intentions the missing spring problem

would eventually re-appear

Birth of POKA YOKE helliphelliphellip

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Pokayoke ActionError Has

Occurred

Detection

Is Made

Defect

Is

Signaled Control

Feedback

GivenProcess

Is

Stopped

POKA YOKE Action

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bull A system for organising work that prevents the error

bull Excludes any risk of error even by the beginner

bull Allows everyone to operate without mistake

bull Prevents error that are about to occur

bull Inspection time will be minimised

What is ldquoMistake Proofing ldquo Why should we do it

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Mistake -Proof Approach

List of Problems ndash Select

Form a Team

Brain-writing at Gemba

Why-Why Analysis leads to root cause

Kaizens on root cause

Establish Activities to maintain standard

Work Towards Low Cost Automation

Plan

Do

Check

Act

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What - A tool that helps to eliminate inadvertent human errors

- Helps to build quality in product at sourceWhere - Is helpful in highly repetitive situations High Productivity areas

may lead to mistakes sometimes

(Unintentional errors - Forgetting Ignoring Inattentiveness )

eg - Complex processes Repetitive assembly mistakes

When - Sourced from Safety issues Driven by known quality problems

Customer complaints RFT P Tags BIS issues FMEA

Why - Builds quality in the product waste elimination

How - Pokayoke is often LOW COST or NO COST solutions

POKA YOKE helps in case of unintentional mistakes and not mischiefs

Pokayoke - Fail safe in 5 W 1 H

Kaizen

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Welcome

Learning Session on

Model Machine

Objectives

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j

To Learn

bull Concept of Model Machine - P - PC Balance

bull Why Model Machine

bull 8 Major losses

bull OEE Calculations

bull How to Develop

bull Documentation

bull Examples

Wh M d l M hi

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Why Model MachineProfit = Sales ndash Cost

Profit = Sales ndash Mfg Cost

To reduce manufacturing cost needs optimumutilization of all assets ie resources

Measurement of effective utilization of all

resources is Overall Equipment Efficiency( OEE)

(09 09 09 = 73)

Why Model Machine

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Profit = Total sales ndash Total cost

Why Model Machine

Profit = Selling Prices - Input Mfg cost up

( competition ) ( Increasing cost of input resources )

To maintain improve profit hellip Solution is ldquo Reduce Mfg costrdquo

Improve Asset Utilization

Improve Overall Equipment ldquoEfficiencyrdquo (OEE)

OEE = Availability x Performance x Quality

Our goal should be to improve OEE gt 85

world class Benchmark = 95

Why Model Machine

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Why Model Machine

If

OEE = Mfg Cost

Mfg cost = profit

eg Consider a MC of cost Rs 5 cr

Utilization in Japan china ndash OEE 90Utilization in India ndash OEE 45 (45 7080)So product cost in India will be 2 times than the cost in

china

Key is improve to OEEAchievement on 8 Model Machines - OEE improved

from 45 to 75 85

P - PC Balance

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P PC Balance

Production Vs Production Capability

Engine+Parts Equipment + MC + Test Bed

Model Machine

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Factory Within Factory is BU

BU Within BU is MODEL MC

WHY Model MC

To deliver -Cost Effective Product to ldquoInternalrdquo amp Externalrdquo Customer

Zero - Breakdown

By Achieving - Zero - Accident

Zero - Defect

To Success is ldquoImprove OEErdquo (Overall Equipment Effectiveness)

5 - M‟S OF PRODUCTION

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bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

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NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

842019 Presentation on TPS -JIT Kanban

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Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

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Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

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What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

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Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

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TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

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INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

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TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

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What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

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TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

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TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

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Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

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US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

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g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

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TPSLean Principles

Click to proceed

TPSLean Principles

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TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

842019 Presentation on TPS -JIT Kanban

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Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

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Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

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Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

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Principle 2 Takt time

Takt Time

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bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

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Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

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Principle 3

Non-value added activities

What are Non-value added activities

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bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

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1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

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bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

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bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

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Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

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bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

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bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

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bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

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bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

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Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

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bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

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bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

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ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

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Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

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Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

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bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

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bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

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bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

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Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

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PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

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bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

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bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

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842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 1993

19 PQCD MoP

- These are measures of performance for whole factory contributed by

individual business units

- Review and correction is needed every month in 5S Before After chart

20JOHARI

WINDOW

-This technique is used to identify root causes in human elements while

solving problems using accumulated knowledge skills developed in a

individual This technique is based on communication in two entities in open

environment amp positive attitude towards problem resolution

21

BMT (

Behavioral

Modulation

Technique)

To impart skills leading to increase of productivity of employees and

motivate them

22 Recognition

Recognition is most important for any human being In kaizen activities we

take care of appreciating every improvement either by individual or by team

The theme is ldquoMaking everybody a herordquo There are 44 ways of appreciatingemployees without actual monitory gains or amount

23 Turbo Kaizen

- Idea generation is done through Turbo Kaizen amp implemented using Kaizen

tools

-Kaizen activities help faster implementation of cost saving ideas

24 Ergonomics

Ergonomics was coined from the Greek words ergon (meaning work) and

nomos (meaning rules) ldquo Fit the task to the person not the person to the

taskldquo

A good way to understand what ergonomics means is to think about the term

user-friendly

25 Karakuri

Machine layout is modified in such a manner that flow of material from one

machine to other machine is maintained without energy consumption by

taking advantage gravity

842019 Presentation on TPS -JIT Kanban

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Welcome

to Presentation

onOFFICE KAIZEN

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- Why Office Kaizen What are its‟ benefits

bull To improve productivity efficiency in the administrative functions andidentify and eliminate losses This includes analyzing processes andprocedures towards increased office automation

Benefits

bull Involvement of all people in support functions for focusing on betterplant performance

bull Reduction in administrative costs - Reduced inventory carrying cost

bull Better utilized work area - Reduce repetitive work

bull Motivate people in support areas - Multiskilling in support areas

bull Some evident results are- Reduced inventory levels in all parts of the supply chain

- Reduction in number of files

- Reduction of overhead costs (to include cost of non-productionnoncapital equipment)

- Productivity of people in support functions

- Breakdown of office equipment - Reduced manpower- Customer complaints due to logistics

- Expenses due to emergency dispatchespurchases

- Clean and pleasant work environment

d fi i ffi i16

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- How to define P Q C D S M in Office Kaizen

bull Each company will have to define for themselves looking at all losses which affect plantperformance

These are some examples

bull P ndash Production output lost due to want of material

ndash Manpower productivity

ndash Production output lost due to want of tools

bull Q ndash Mistakes in preparation of cheques bills invoices payroll

ndash Customer returnswarranty attributable to BOPs

ndash Rejectionrework in BOP‟sjob work

ndash Office area rework

bull C ndash Buying costunit produced

ndash Cost of logistics ndash inboundoutbound

ndash Cost of carrying inventory ndash Cost of communication

ndash Demurrage costs

bull D ndash Logistics losses(Delay in loadingunloading)

ndash Delay in delivery due to any of the support functions

ndash Delay in payments to suppliers

ndash Delay in information

bull S ndash Safety in material handlingstoreslogistics

ndash Safety of soft and hard databull M ndash Number of kaizens in office areas

H t t t ffi K i 16

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- How to start office Kaizen

Steps followed are

- Providing awareness about office Kaizen to all support departments

- Helping them to identify P Q C D S M in each function in relation to plantperformance

- Identify the scope for improvement in each function- Collect relevant data

- Help them to solve problems in their Circles Teams

- Make up an activity board where progress is monitored on both sides ndash results andactions along with Kaizens

How to identify losses in office Kaizen

In each functional area identify the losses separately and add them up to build up amaster plan for Office Kaizen For example

- office equipment breakdown

- communication channel breakdown telephone and fax lines

- time spent on retrieval of information

- non availability of correct on line stock status

- customer complaints due to logistics

- expenses on emergency dispatchespurchases- cost reduction on non-productionnon capital items

H t l t K b t K i t i f Offi K i 16

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- How to select Kobetsu Kaizen topics from Office Kaizen

Kobetsu Kaizen topics are selected aiming at --

- Inventory reduction- Lead time reduction of critical processes

- Motion amp space losses

- retrieval time reduction

- reducing or eliminating office work flow stagnation

- equalizing the work load

- analyzing for bdquono material‟ areas and improving them

- Improving the office efficiency

ndash By eliminating the time loss on retrieval of information

ndash By achieving zero breakdown of office equipment like telephoneand fax Lines Xerox machine etc

PPM Ch t IN OFFICE16

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- PPM Chart IN OFFICENov Dec Jan Feb Mar

96667 136667 110000 93333 1366

56 46 153 46

April May June July Aug

58333

90

Defects

Defects Expressed in 5W 1H

Fassion1 2 3 4 5 OF

S U N D A Y

8 9 10 11 12 OF

S U N D A Y

15 16 17 18 19 OF

S U N D A Y

22 23 24 25 26 OF

S U N D A Y

29 30

Total

Defect

s

PPM

1 BILL OF MATERIAL CHANGE 0 0 0 0 0

2 SUPPLIER FAULT 0 1 0 1 0 1 1 0 1 2 1 0 2 0 0 0 6 16 533

3 BUYER FAULT 0 0 0 0 0 0

4ENGINE PREPONED ADDITIONAL ENGINE 0 0 0 0 0 0 0

5 RRP-REQT RPORT PROBLEM 0 0 0 0 0 0 0

6 STOCK DESCRIPANCY 0 0 0 0 0 0 0

7 QUALITY SOURCING ISSUES 0 0 0 0 0 0 0 1 05 1666

8 DELAY GRR POSTING 0 0 0 0 0

9 TRANSPORTATION PROBLEM 0 0 0 1 0 1

Total Defects 0 0 0 0 0 0 0 1 0 1 1 1 0 0 1 0 1 2 1 0 0 0 3 0 0 0 0 0 0 6 0 175 583

0 0 0 0 0 0 0 3 3 3 3

0 3 3 3 3

3 3 3 3

3 3 3 3

0 0 3 3 3 3

0 3 3 3 3

6 6 6 7

3 3 3 3

0 0 0 8 3 3 3

0 0 0 0 0 0 2 0 0 0 0

0

Number of active parts for a month=300 NOS

Defects Per Million

Weekly PPM 0 5 5 6

2 2 2 2

2 2 2 2

0

What Short of material while Pulli Why Various reasons as above

Where In the Store Who Kanban process owener(store person)

When While Kanban Pulling How During routine work

MONTHLY

Sr

no

MONTHLY PP

Month

PPM

Kaizen

DATE

Month

PPM

Kaizen

Daily PPM Value for Feb - 2001

0

4000

8000

12000

16000

20000

24000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30Date

P P M

V a l u e

Weekly PPM Value

0

500

1000

1500

2000

2500

1 2 3 4 5

Week P P M

M P T bl IN OFFICE16

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- MoP Table IN OFFICEHuman Resources MOP summary

May02 Jun 02 Jul02 Aug 02 Sep02 Oct 02 Nov 02 Dec 02 Jan03 Feb03

Productivity (P)

Actual 6915 6546 4989 5806 5645 4879 5056 4746 5308 5158

Desired 50 50 50 50 50 50 50 50 50 50

Actual 300 250 150 250 250 200 150 150 175 225 450

Desired 200 200 200 200 200 200 200 200 200 200 200

Quality (Q)

Actual 76

Desired(Tar et)

80

Actual 12th 10th 12th 12th 10th 10th 10th 10th 9th 8th

Desired 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th

Actual 9th 7th 7th 8th 8th 7th 7th 7th 7th 6th

Desired 8th 7th 6th 6th 6th 6th 6th 6th 6th 6th 6th

Actual 5th 5th 5th 5th 5th 5th 5th 5th 5th 4th 5th

Desired 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th

Actual 0 1 0 1 1 1 0 1 1 1 2

Desired 0 0 0 0 0 0 0 0 0 0 0

BEFORE AFTER 5S

RESULT MONITORActual

DeasiredApr02

AFTER 5S

PeopleEngineDay

HRFE Score (Yearly

measure) (Measured one in a year)

Delivery (D)

Monthly Report Submission

Safety Incidents (S)

No of Accidents Month

CPS Report

Monthly headcount data

No of people involved in

community Welfare

- Kaizen Projects in Offices

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HR

bull Improve employee data adequacy

bull Transfer of old PF accountbull Consolidation of banks for salary payment

bull Safety on road Safety goggles

bull Safety gates on shop floors

bull Pokayokes on accidents ( Radial drills Signs on walkways )

bull Prevention of epidemic diseases

bull Canteen Improvement ndash Kanban for material

- Energy saving

- Improve ventilation and lighting

- Roof cooling by purified drainage

water

- Kaizen Projects in Offices

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HR

bull Improvement in Health awareness ( check up Lectures

De addiction campsbull Bench marking visits to other factories

bull Recognition policy

bull Participation in intra company competition

bull Safety poster competition

bull ldquoOrdquo tag campaign for safety

bull ATM counter bank facility at gate

bull Prize distribution by Union leaders

bull Letter to family for good work

bull Proper lighting and ventilation at workplace

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bull Poka-yoke (pronounced POH-kah YOH-kayldquo ) bull Japanese words poka (inadvertent mistake) and yoke

(prevent) was invented by Shigeo Shingo in the 1960s

bull The essential idea of poka-yoke is to design your process so

that mistakes are impossible or at least easily detected and

corrected

About Shigeo Shingohelliphelliphellip

bull A leading proponent of statistical process control

bull Became frustrated with the statistical approach

bull Statistical sampling implies that some products to gountested with the result that some rate of defects would

always reach the customer

About POKA YOKEhelliphelliphelliphellip

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bull Shingo was communicated of a problem inldquoYamada Electric plantrdquo in 1961

bull A small switch with two push-buttons supported by two

springs occasionally the worker assembling the switch would

forget to insert a spring under each push-button

bull Sometimes the error would not be discovered until the unitreached a customer

bull Factory would have to dispatch an engineer to the customer

site to disassemble the switch insert the missing spring and

re-assemble the switch

bull This problem of the missing spring was both costly andembarrassing

bull Despite everyones best intentions the missing spring problem

would eventually re-appear

Birth of POKA YOKE helliphelliphellip

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Pokayoke ActionError Has

Occurred

Detection

Is Made

Defect

Is

Signaled Control

Feedback

GivenProcess

Is

Stopped

POKA YOKE Action

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bull A system for organising work that prevents the error

bull Excludes any risk of error even by the beginner

bull Allows everyone to operate without mistake

bull Prevents error that are about to occur

bull Inspection time will be minimised

What is ldquoMistake Proofing ldquo Why should we do it

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Mistake -Proof Approach

List of Problems ndash Select

Form a Team

Brain-writing at Gemba

Why-Why Analysis leads to root cause

Kaizens on root cause

Establish Activities to maintain standard

Work Towards Low Cost Automation

Plan

Do

Check

Act

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What - A tool that helps to eliminate inadvertent human errors

- Helps to build quality in product at sourceWhere - Is helpful in highly repetitive situations High Productivity areas

may lead to mistakes sometimes

(Unintentional errors - Forgetting Ignoring Inattentiveness )

eg - Complex processes Repetitive assembly mistakes

When - Sourced from Safety issues Driven by known quality problems

Customer complaints RFT P Tags BIS issues FMEA

Why - Builds quality in the product waste elimination

How - Pokayoke is often LOW COST or NO COST solutions

POKA YOKE helps in case of unintentional mistakes and not mischiefs

Pokayoke - Fail safe in 5 W 1 H

Kaizen

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Welcome

Learning Session on

Model Machine

Objectives

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j

To Learn

bull Concept of Model Machine - P - PC Balance

bull Why Model Machine

bull 8 Major losses

bull OEE Calculations

bull How to Develop

bull Documentation

bull Examples

Wh M d l M hi

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Why Model MachineProfit = Sales ndash Cost

Profit = Sales ndash Mfg Cost

To reduce manufacturing cost needs optimumutilization of all assets ie resources

Measurement of effective utilization of all

resources is Overall Equipment Efficiency( OEE)

(09 09 09 = 73)

Why Model Machine

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Profit = Total sales ndash Total cost

Why Model Machine

Profit = Selling Prices - Input Mfg cost up

( competition ) ( Increasing cost of input resources )

To maintain improve profit hellip Solution is ldquo Reduce Mfg costrdquo

Improve Asset Utilization

Improve Overall Equipment ldquoEfficiencyrdquo (OEE)

OEE = Availability x Performance x Quality

Our goal should be to improve OEE gt 85

world class Benchmark = 95

Why Model Machine

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Why Model Machine

If

OEE = Mfg Cost

Mfg cost = profit

eg Consider a MC of cost Rs 5 cr

Utilization in Japan china ndash OEE 90Utilization in India ndash OEE 45 (45 7080)So product cost in India will be 2 times than the cost in

china

Key is improve to OEEAchievement on 8 Model Machines - OEE improved

from 45 to 75 85

P - PC Balance

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P PC Balance

Production Vs Production Capability

Engine+Parts Equipment + MC + Test Bed

Model Machine

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Factory Within Factory is BU

BU Within BU is MODEL MC

WHY Model MC

To deliver -Cost Effective Product to ldquoInternalrdquo amp Externalrdquo Customer

Zero - Breakdown

By Achieving - Zero - Accident

Zero - Defect

To Success is ldquoImprove OEErdquo (Overall Equipment Effectiveness)

5 - M‟S OF PRODUCTION

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bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

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NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

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Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

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Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

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What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

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Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

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TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

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INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

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TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

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What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

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TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

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TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

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Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

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US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

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g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

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TPSLean Principles

Click to proceed

TPSLean Principles

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TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

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Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

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Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

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Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

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Principle 2 Takt time

Takt Time

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bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

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Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

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Principle 3

Non-value added activities

What are Non-value added activities

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bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

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1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

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bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

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bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

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Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

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bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

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bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

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bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

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bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

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Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

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bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

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bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

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ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

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bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

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bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

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Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

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Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

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bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

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bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

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bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

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Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

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PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

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bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

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bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

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Welcome

to Presentation

onOFFICE KAIZEN

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- Why Office Kaizen What are its‟ benefits

bull To improve productivity efficiency in the administrative functions andidentify and eliminate losses This includes analyzing processes andprocedures towards increased office automation

Benefits

bull Involvement of all people in support functions for focusing on betterplant performance

bull Reduction in administrative costs - Reduced inventory carrying cost

bull Better utilized work area - Reduce repetitive work

bull Motivate people in support areas - Multiskilling in support areas

bull Some evident results are- Reduced inventory levels in all parts of the supply chain

- Reduction in number of files

- Reduction of overhead costs (to include cost of non-productionnoncapital equipment)

- Productivity of people in support functions

- Breakdown of office equipment - Reduced manpower- Customer complaints due to logistics

- Expenses due to emergency dispatchespurchases

- Clean and pleasant work environment

d fi i ffi i16

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- How to define P Q C D S M in Office Kaizen

bull Each company will have to define for themselves looking at all losses which affect plantperformance

These are some examples

bull P ndash Production output lost due to want of material

ndash Manpower productivity

ndash Production output lost due to want of tools

bull Q ndash Mistakes in preparation of cheques bills invoices payroll

ndash Customer returnswarranty attributable to BOPs

ndash Rejectionrework in BOP‟sjob work

ndash Office area rework

bull C ndash Buying costunit produced

ndash Cost of logistics ndash inboundoutbound

ndash Cost of carrying inventory ndash Cost of communication

ndash Demurrage costs

bull D ndash Logistics losses(Delay in loadingunloading)

ndash Delay in delivery due to any of the support functions

ndash Delay in payments to suppliers

ndash Delay in information

bull S ndash Safety in material handlingstoreslogistics

ndash Safety of soft and hard databull M ndash Number of kaizens in office areas

H t t t ffi K i 16

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- How to start office Kaizen

Steps followed are

- Providing awareness about office Kaizen to all support departments

- Helping them to identify P Q C D S M in each function in relation to plantperformance

- Identify the scope for improvement in each function- Collect relevant data

- Help them to solve problems in their Circles Teams

- Make up an activity board where progress is monitored on both sides ndash results andactions along with Kaizens

How to identify losses in office Kaizen

In each functional area identify the losses separately and add them up to build up amaster plan for Office Kaizen For example

- office equipment breakdown

- communication channel breakdown telephone and fax lines

- time spent on retrieval of information

- non availability of correct on line stock status

- customer complaints due to logistics

- expenses on emergency dispatchespurchases- cost reduction on non-productionnon capital items

H t l t K b t K i t i f Offi K i 16

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- How to select Kobetsu Kaizen topics from Office Kaizen

Kobetsu Kaizen topics are selected aiming at --

- Inventory reduction- Lead time reduction of critical processes

- Motion amp space losses

- retrieval time reduction

- reducing or eliminating office work flow stagnation

- equalizing the work load

- analyzing for bdquono material‟ areas and improving them

- Improving the office efficiency

ndash By eliminating the time loss on retrieval of information

ndash By achieving zero breakdown of office equipment like telephoneand fax Lines Xerox machine etc

PPM Ch t IN OFFICE16

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- PPM Chart IN OFFICENov Dec Jan Feb Mar

96667 136667 110000 93333 1366

56 46 153 46

April May June July Aug

58333

90

Defects

Defects Expressed in 5W 1H

Fassion1 2 3 4 5 OF

S U N D A Y

8 9 10 11 12 OF

S U N D A Y

15 16 17 18 19 OF

S U N D A Y

22 23 24 25 26 OF

S U N D A Y

29 30

Total

Defect

s

PPM

1 BILL OF MATERIAL CHANGE 0 0 0 0 0

2 SUPPLIER FAULT 0 1 0 1 0 1 1 0 1 2 1 0 2 0 0 0 6 16 533

3 BUYER FAULT 0 0 0 0 0 0

4ENGINE PREPONED ADDITIONAL ENGINE 0 0 0 0 0 0 0

5 RRP-REQT RPORT PROBLEM 0 0 0 0 0 0 0

6 STOCK DESCRIPANCY 0 0 0 0 0 0 0

7 QUALITY SOURCING ISSUES 0 0 0 0 0 0 0 1 05 1666

8 DELAY GRR POSTING 0 0 0 0 0

9 TRANSPORTATION PROBLEM 0 0 0 1 0 1

Total Defects 0 0 0 0 0 0 0 1 0 1 1 1 0 0 1 0 1 2 1 0 0 0 3 0 0 0 0 0 0 6 0 175 583

0 0 0 0 0 0 0 3 3 3 3

0 3 3 3 3

3 3 3 3

3 3 3 3

0 0 3 3 3 3

0 3 3 3 3

6 6 6 7

3 3 3 3

0 0 0 8 3 3 3

0 0 0 0 0 0 2 0 0 0 0

0

Number of active parts for a month=300 NOS

Defects Per Million

Weekly PPM 0 5 5 6

2 2 2 2

2 2 2 2

0

What Short of material while Pulli Why Various reasons as above

Where In the Store Who Kanban process owener(store person)

When While Kanban Pulling How During routine work

MONTHLY

Sr

no

MONTHLY PP

Month

PPM

Kaizen

DATE

Month

PPM

Kaizen

Daily PPM Value for Feb - 2001

0

4000

8000

12000

16000

20000

24000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30Date

P P M

V a l u e

Weekly PPM Value

0

500

1000

1500

2000

2500

1 2 3 4 5

Week P P M

M P T bl IN OFFICE16

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- MoP Table IN OFFICEHuman Resources MOP summary

May02 Jun 02 Jul02 Aug 02 Sep02 Oct 02 Nov 02 Dec 02 Jan03 Feb03

Productivity (P)

Actual 6915 6546 4989 5806 5645 4879 5056 4746 5308 5158

Desired 50 50 50 50 50 50 50 50 50 50

Actual 300 250 150 250 250 200 150 150 175 225 450

Desired 200 200 200 200 200 200 200 200 200 200 200

Quality (Q)

Actual 76

Desired(Tar et)

80

Actual 12th 10th 12th 12th 10th 10th 10th 10th 9th 8th

Desired 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th

Actual 9th 7th 7th 8th 8th 7th 7th 7th 7th 6th

Desired 8th 7th 6th 6th 6th 6th 6th 6th 6th 6th 6th

Actual 5th 5th 5th 5th 5th 5th 5th 5th 5th 4th 5th

Desired 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th

Actual 0 1 0 1 1 1 0 1 1 1 2

Desired 0 0 0 0 0 0 0 0 0 0 0

BEFORE AFTER 5S

RESULT MONITORActual

DeasiredApr02

AFTER 5S

PeopleEngineDay

HRFE Score (Yearly

measure) (Measured one in a year)

Delivery (D)

Monthly Report Submission

Safety Incidents (S)

No of Accidents Month

CPS Report

Monthly headcount data

No of people involved in

community Welfare

- Kaizen Projects in Offices

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HR

bull Improve employee data adequacy

bull Transfer of old PF accountbull Consolidation of banks for salary payment

bull Safety on road Safety goggles

bull Safety gates on shop floors

bull Pokayokes on accidents ( Radial drills Signs on walkways )

bull Prevention of epidemic diseases

bull Canteen Improvement ndash Kanban for material

- Energy saving

- Improve ventilation and lighting

- Roof cooling by purified drainage

water

- Kaizen Projects in Offices

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HR

bull Improvement in Health awareness ( check up Lectures

De addiction campsbull Bench marking visits to other factories

bull Recognition policy

bull Participation in intra company competition

bull Safety poster competition

bull ldquoOrdquo tag campaign for safety

bull ATM counter bank facility at gate

bull Prize distribution by Union leaders

bull Letter to family for good work

bull Proper lighting and ventilation at workplace

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bull Poka-yoke (pronounced POH-kah YOH-kayldquo ) bull Japanese words poka (inadvertent mistake) and yoke

(prevent) was invented by Shigeo Shingo in the 1960s

bull The essential idea of poka-yoke is to design your process so

that mistakes are impossible or at least easily detected and

corrected

About Shigeo Shingohelliphelliphellip

bull A leading proponent of statistical process control

bull Became frustrated with the statistical approach

bull Statistical sampling implies that some products to gountested with the result that some rate of defects would

always reach the customer

About POKA YOKEhelliphelliphelliphellip

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bull Shingo was communicated of a problem inldquoYamada Electric plantrdquo in 1961

bull A small switch with two push-buttons supported by two

springs occasionally the worker assembling the switch would

forget to insert a spring under each push-button

bull Sometimes the error would not be discovered until the unitreached a customer

bull Factory would have to dispatch an engineer to the customer

site to disassemble the switch insert the missing spring and

re-assemble the switch

bull This problem of the missing spring was both costly andembarrassing

bull Despite everyones best intentions the missing spring problem

would eventually re-appear

Birth of POKA YOKE helliphelliphellip

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Pokayoke ActionError Has

Occurred

Detection

Is Made

Defect

Is

Signaled Control

Feedback

GivenProcess

Is

Stopped

POKA YOKE Action

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bull A system for organising work that prevents the error

bull Excludes any risk of error even by the beginner

bull Allows everyone to operate without mistake

bull Prevents error that are about to occur

bull Inspection time will be minimised

What is ldquoMistake Proofing ldquo Why should we do it

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Mistake -Proof Approach

List of Problems ndash Select

Form a Team

Brain-writing at Gemba

Why-Why Analysis leads to root cause

Kaizens on root cause

Establish Activities to maintain standard

Work Towards Low Cost Automation

Plan

Do

Check

Act

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What - A tool that helps to eliminate inadvertent human errors

- Helps to build quality in product at sourceWhere - Is helpful in highly repetitive situations High Productivity areas

may lead to mistakes sometimes

(Unintentional errors - Forgetting Ignoring Inattentiveness )

eg - Complex processes Repetitive assembly mistakes

When - Sourced from Safety issues Driven by known quality problems

Customer complaints RFT P Tags BIS issues FMEA

Why - Builds quality in the product waste elimination

How - Pokayoke is often LOW COST or NO COST solutions

POKA YOKE helps in case of unintentional mistakes and not mischiefs

Pokayoke - Fail safe in 5 W 1 H

Kaizen

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Welcome

Learning Session on

Model Machine

Objectives

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j

To Learn

bull Concept of Model Machine - P - PC Balance

bull Why Model Machine

bull 8 Major losses

bull OEE Calculations

bull How to Develop

bull Documentation

bull Examples

Wh M d l M hi

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Why Model MachineProfit = Sales ndash Cost

Profit = Sales ndash Mfg Cost

To reduce manufacturing cost needs optimumutilization of all assets ie resources

Measurement of effective utilization of all

resources is Overall Equipment Efficiency( OEE)

(09 09 09 = 73)

Why Model Machine

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Profit = Total sales ndash Total cost

Why Model Machine

Profit = Selling Prices - Input Mfg cost up

( competition ) ( Increasing cost of input resources )

To maintain improve profit hellip Solution is ldquo Reduce Mfg costrdquo

Improve Asset Utilization

Improve Overall Equipment ldquoEfficiencyrdquo (OEE)

OEE = Availability x Performance x Quality

Our goal should be to improve OEE gt 85

world class Benchmark = 95

Why Model Machine

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Why Model Machine

If

OEE = Mfg Cost

Mfg cost = profit

eg Consider a MC of cost Rs 5 cr

Utilization in Japan china ndash OEE 90Utilization in India ndash OEE 45 (45 7080)So product cost in India will be 2 times than the cost in

china

Key is improve to OEEAchievement on 8 Model Machines - OEE improved

from 45 to 75 85

P - PC Balance

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P PC Balance

Production Vs Production Capability

Engine+Parts Equipment + MC + Test Bed

Model Machine

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Factory Within Factory is BU

BU Within BU is MODEL MC

WHY Model MC

To deliver -Cost Effective Product to ldquoInternalrdquo amp Externalrdquo Customer

Zero - Breakdown

By Achieving - Zero - Accident

Zero - Defect

To Success is ldquoImprove OEErdquo (Overall Equipment Effectiveness)

5 - M‟S OF PRODUCTION

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bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

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NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

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Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

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Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

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What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

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Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

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TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

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INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

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TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

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What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

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TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

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TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

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Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

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US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

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g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

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TPSLean Principles

Click to proceed

TPSLean Principles

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TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

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Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

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Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

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Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

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Principle 2 Takt time

Takt Time

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bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

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Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

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Principle 3

Non-value added activities

What are Non-value added activities

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bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

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1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

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bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

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bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

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Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

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bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

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bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

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bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

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bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

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Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

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bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

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bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

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ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

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Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

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Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

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bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

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bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

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bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

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Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

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PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

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bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

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bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

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- Why Office Kaizen What are its‟ benefits

bull To improve productivity efficiency in the administrative functions andidentify and eliminate losses This includes analyzing processes andprocedures towards increased office automation

Benefits

bull Involvement of all people in support functions for focusing on betterplant performance

bull Reduction in administrative costs - Reduced inventory carrying cost

bull Better utilized work area - Reduce repetitive work

bull Motivate people in support areas - Multiskilling in support areas

bull Some evident results are- Reduced inventory levels in all parts of the supply chain

- Reduction in number of files

- Reduction of overhead costs (to include cost of non-productionnoncapital equipment)

- Productivity of people in support functions

- Breakdown of office equipment - Reduced manpower- Customer complaints due to logistics

- Expenses due to emergency dispatchespurchases

- Clean and pleasant work environment

d fi i ffi i16

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- How to define P Q C D S M in Office Kaizen

bull Each company will have to define for themselves looking at all losses which affect plantperformance

These are some examples

bull P ndash Production output lost due to want of material

ndash Manpower productivity

ndash Production output lost due to want of tools

bull Q ndash Mistakes in preparation of cheques bills invoices payroll

ndash Customer returnswarranty attributable to BOPs

ndash Rejectionrework in BOP‟sjob work

ndash Office area rework

bull C ndash Buying costunit produced

ndash Cost of logistics ndash inboundoutbound

ndash Cost of carrying inventory ndash Cost of communication

ndash Demurrage costs

bull D ndash Logistics losses(Delay in loadingunloading)

ndash Delay in delivery due to any of the support functions

ndash Delay in payments to suppliers

ndash Delay in information

bull S ndash Safety in material handlingstoreslogistics

ndash Safety of soft and hard databull M ndash Number of kaizens in office areas

H t t t ffi K i 16

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- How to start office Kaizen

Steps followed are

- Providing awareness about office Kaizen to all support departments

- Helping them to identify P Q C D S M in each function in relation to plantperformance

- Identify the scope for improvement in each function- Collect relevant data

- Help them to solve problems in their Circles Teams

- Make up an activity board where progress is monitored on both sides ndash results andactions along with Kaizens

How to identify losses in office Kaizen

In each functional area identify the losses separately and add them up to build up amaster plan for Office Kaizen For example

- office equipment breakdown

- communication channel breakdown telephone and fax lines

- time spent on retrieval of information

- non availability of correct on line stock status

- customer complaints due to logistics

- expenses on emergency dispatchespurchases- cost reduction on non-productionnon capital items

H t l t K b t K i t i f Offi K i 16

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- How to select Kobetsu Kaizen topics from Office Kaizen

Kobetsu Kaizen topics are selected aiming at --

- Inventory reduction- Lead time reduction of critical processes

- Motion amp space losses

- retrieval time reduction

- reducing or eliminating office work flow stagnation

- equalizing the work load

- analyzing for bdquono material‟ areas and improving them

- Improving the office efficiency

ndash By eliminating the time loss on retrieval of information

ndash By achieving zero breakdown of office equipment like telephoneand fax Lines Xerox machine etc

PPM Ch t IN OFFICE16

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- PPM Chart IN OFFICENov Dec Jan Feb Mar

96667 136667 110000 93333 1366

56 46 153 46

April May June July Aug

58333

90

Defects

Defects Expressed in 5W 1H

Fassion1 2 3 4 5 OF

S U N D A Y

8 9 10 11 12 OF

S U N D A Y

15 16 17 18 19 OF

S U N D A Y

22 23 24 25 26 OF

S U N D A Y

29 30

Total

Defect

s

PPM

1 BILL OF MATERIAL CHANGE 0 0 0 0 0

2 SUPPLIER FAULT 0 1 0 1 0 1 1 0 1 2 1 0 2 0 0 0 6 16 533

3 BUYER FAULT 0 0 0 0 0 0

4ENGINE PREPONED ADDITIONAL ENGINE 0 0 0 0 0 0 0

5 RRP-REQT RPORT PROBLEM 0 0 0 0 0 0 0

6 STOCK DESCRIPANCY 0 0 0 0 0 0 0

7 QUALITY SOURCING ISSUES 0 0 0 0 0 0 0 1 05 1666

8 DELAY GRR POSTING 0 0 0 0 0

9 TRANSPORTATION PROBLEM 0 0 0 1 0 1

Total Defects 0 0 0 0 0 0 0 1 0 1 1 1 0 0 1 0 1 2 1 0 0 0 3 0 0 0 0 0 0 6 0 175 583

0 0 0 0 0 0 0 3 3 3 3

0 3 3 3 3

3 3 3 3

3 3 3 3

0 0 3 3 3 3

0 3 3 3 3

6 6 6 7

3 3 3 3

0 0 0 8 3 3 3

0 0 0 0 0 0 2 0 0 0 0

0

Number of active parts for a month=300 NOS

Defects Per Million

Weekly PPM 0 5 5 6

2 2 2 2

2 2 2 2

0

What Short of material while Pulli Why Various reasons as above

Where In the Store Who Kanban process owener(store person)

When While Kanban Pulling How During routine work

MONTHLY

Sr

no

MONTHLY PP

Month

PPM

Kaizen

DATE

Month

PPM

Kaizen

Daily PPM Value for Feb - 2001

0

4000

8000

12000

16000

20000

24000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30Date

P P M

V a l u e

Weekly PPM Value

0

500

1000

1500

2000

2500

1 2 3 4 5

Week P P M

M P T bl IN OFFICE16

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- MoP Table IN OFFICEHuman Resources MOP summary

May02 Jun 02 Jul02 Aug 02 Sep02 Oct 02 Nov 02 Dec 02 Jan03 Feb03

Productivity (P)

Actual 6915 6546 4989 5806 5645 4879 5056 4746 5308 5158

Desired 50 50 50 50 50 50 50 50 50 50

Actual 300 250 150 250 250 200 150 150 175 225 450

Desired 200 200 200 200 200 200 200 200 200 200 200

Quality (Q)

Actual 76

Desired(Tar et)

80

Actual 12th 10th 12th 12th 10th 10th 10th 10th 9th 8th

Desired 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th

Actual 9th 7th 7th 8th 8th 7th 7th 7th 7th 6th

Desired 8th 7th 6th 6th 6th 6th 6th 6th 6th 6th 6th

Actual 5th 5th 5th 5th 5th 5th 5th 5th 5th 4th 5th

Desired 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th

Actual 0 1 0 1 1 1 0 1 1 1 2

Desired 0 0 0 0 0 0 0 0 0 0 0

BEFORE AFTER 5S

RESULT MONITORActual

DeasiredApr02

AFTER 5S

PeopleEngineDay

HRFE Score (Yearly

measure) (Measured one in a year)

Delivery (D)

Monthly Report Submission

Safety Incidents (S)

No of Accidents Month

CPS Report

Monthly headcount data

No of people involved in

community Welfare

- Kaizen Projects in Offices

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HR

bull Improve employee data adequacy

bull Transfer of old PF accountbull Consolidation of banks for salary payment

bull Safety on road Safety goggles

bull Safety gates on shop floors

bull Pokayokes on accidents ( Radial drills Signs on walkways )

bull Prevention of epidemic diseases

bull Canteen Improvement ndash Kanban for material

- Energy saving

- Improve ventilation and lighting

- Roof cooling by purified drainage

water

- Kaizen Projects in Offices

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HR

bull Improvement in Health awareness ( check up Lectures

De addiction campsbull Bench marking visits to other factories

bull Recognition policy

bull Participation in intra company competition

bull Safety poster competition

bull ldquoOrdquo tag campaign for safety

bull ATM counter bank facility at gate

bull Prize distribution by Union leaders

bull Letter to family for good work

bull Proper lighting and ventilation at workplace

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bull Poka-yoke (pronounced POH-kah YOH-kayldquo ) bull Japanese words poka (inadvertent mistake) and yoke

(prevent) was invented by Shigeo Shingo in the 1960s

bull The essential idea of poka-yoke is to design your process so

that mistakes are impossible or at least easily detected and

corrected

About Shigeo Shingohelliphelliphellip

bull A leading proponent of statistical process control

bull Became frustrated with the statistical approach

bull Statistical sampling implies that some products to gountested with the result that some rate of defects would

always reach the customer

About POKA YOKEhelliphelliphelliphellip

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bull Shingo was communicated of a problem inldquoYamada Electric plantrdquo in 1961

bull A small switch with two push-buttons supported by two

springs occasionally the worker assembling the switch would

forget to insert a spring under each push-button

bull Sometimes the error would not be discovered until the unitreached a customer

bull Factory would have to dispatch an engineer to the customer

site to disassemble the switch insert the missing spring and

re-assemble the switch

bull This problem of the missing spring was both costly andembarrassing

bull Despite everyones best intentions the missing spring problem

would eventually re-appear

Birth of POKA YOKE helliphelliphellip

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Pokayoke ActionError Has

Occurred

Detection

Is Made

Defect

Is

Signaled Control

Feedback

GivenProcess

Is

Stopped

POKA YOKE Action

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bull A system for organising work that prevents the error

bull Excludes any risk of error even by the beginner

bull Allows everyone to operate without mistake

bull Prevents error that are about to occur

bull Inspection time will be minimised

What is ldquoMistake Proofing ldquo Why should we do it

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Mistake -Proof Approach

List of Problems ndash Select

Form a Team

Brain-writing at Gemba

Why-Why Analysis leads to root cause

Kaizens on root cause

Establish Activities to maintain standard

Work Towards Low Cost Automation

Plan

Do

Check

Act

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What - A tool that helps to eliminate inadvertent human errors

- Helps to build quality in product at sourceWhere - Is helpful in highly repetitive situations High Productivity areas

may lead to mistakes sometimes

(Unintentional errors - Forgetting Ignoring Inattentiveness )

eg - Complex processes Repetitive assembly mistakes

When - Sourced from Safety issues Driven by known quality problems

Customer complaints RFT P Tags BIS issues FMEA

Why - Builds quality in the product waste elimination

How - Pokayoke is often LOW COST or NO COST solutions

POKA YOKE helps in case of unintentional mistakes and not mischiefs

Pokayoke - Fail safe in 5 W 1 H

Kaizen

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Welcome

Learning Session on

Model Machine

Objectives

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j

To Learn

bull Concept of Model Machine - P - PC Balance

bull Why Model Machine

bull 8 Major losses

bull OEE Calculations

bull How to Develop

bull Documentation

bull Examples

Wh M d l M hi

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Why Model MachineProfit = Sales ndash Cost

Profit = Sales ndash Mfg Cost

To reduce manufacturing cost needs optimumutilization of all assets ie resources

Measurement of effective utilization of all

resources is Overall Equipment Efficiency( OEE)

(09 09 09 = 73)

Why Model Machine

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Profit = Total sales ndash Total cost

Why Model Machine

Profit = Selling Prices - Input Mfg cost up

( competition ) ( Increasing cost of input resources )

To maintain improve profit hellip Solution is ldquo Reduce Mfg costrdquo

Improve Asset Utilization

Improve Overall Equipment ldquoEfficiencyrdquo (OEE)

OEE = Availability x Performance x Quality

Our goal should be to improve OEE gt 85

world class Benchmark = 95

Why Model Machine

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Why Model Machine

If

OEE = Mfg Cost

Mfg cost = profit

eg Consider a MC of cost Rs 5 cr

Utilization in Japan china ndash OEE 90Utilization in India ndash OEE 45 (45 7080)So product cost in India will be 2 times than the cost in

china

Key is improve to OEEAchievement on 8 Model Machines - OEE improved

from 45 to 75 85

P - PC Balance

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P PC Balance

Production Vs Production Capability

Engine+Parts Equipment + MC + Test Bed

Model Machine

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Factory Within Factory is BU

BU Within BU is MODEL MC

WHY Model MC

To deliver -Cost Effective Product to ldquoInternalrdquo amp Externalrdquo Customer

Zero - Breakdown

By Achieving - Zero - Accident

Zero - Defect

To Success is ldquoImprove OEErdquo (Overall Equipment Effectiveness)

5 - M‟S OF PRODUCTION

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bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

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NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

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Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

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Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

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What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

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Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

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TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

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INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

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TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

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What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

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TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

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TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

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Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

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US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

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g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

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TPSLean Principles

Click to proceed

TPSLean Principles

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TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

842019 Presentation on TPS -JIT Kanban

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Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

842019 Presentation on TPS -JIT Kanban

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Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

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Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

842019 Presentation on TPS -JIT Kanban

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842019 Presentation on TPS -JIT Kanban

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Principle 2 Takt time

Takt Time

842019 Presentation on TPS -JIT Kanban

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bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

842019 Presentation on TPS -JIT Kanban

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Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

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Principle 3

Non-value added activities

What are Non-value added activities

842019 Presentation on TPS -JIT Kanban

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bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

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1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

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bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

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bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

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Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

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bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

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bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

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bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

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bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

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Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

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bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

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Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

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bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

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ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

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bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

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bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

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Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

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Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

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bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

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bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

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bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

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Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

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PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

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bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

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bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

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842019 Presentation on TPS -JIT Kanban

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- How to define P Q C D S M in Office Kaizen

bull Each company will have to define for themselves looking at all losses which affect plantperformance

These are some examples

bull P ndash Production output lost due to want of material

ndash Manpower productivity

ndash Production output lost due to want of tools

bull Q ndash Mistakes in preparation of cheques bills invoices payroll

ndash Customer returnswarranty attributable to BOPs

ndash Rejectionrework in BOP‟sjob work

ndash Office area rework

bull C ndash Buying costunit produced

ndash Cost of logistics ndash inboundoutbound

ndash Cost of carrying inventory ndash Cost of communication

ndash Demurrage costs

bull D ndash Logistics losses(Delay in loadingunloading)

ndash Delay in delivery due to any of the support functions

ndash Delay in payments to suppliers

ndash Delay in information

bull S ndash Safety in material handlingstoreslogistics

ndash Safety of soft and hard databull M ndash Number of kaizens in office areas

H t t t ffi K i 16

842019 Presentation on TPS -JIT Kanban

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- How to start office Kaizen

Steps followed are

- Providing awareness about office Kaizen to all support departments

- Helping them to identify P Q C D S M in each function in relation to plantperformance

- Identify the scope for improvement in each function- Collect relevant data

- Help them to solve problems in their Circles Teams

- Make up an activity board where progress is monitored on both sides ndash results andactions along with Kaizens

How to identify losses in office Kaizen

In each functional area identify the losses separately and add them up to build up amaster plan for Office Kaizen For example

- office equipment breakdown

- communication channel breakdown telephone and fax lines

- time spent on retrieval of information

- non availability of correct on line stock status

- customer complaints due to logistics

- expenses on emergency dispatchespurchases- cost reduction on non-productionnon capital items

H t l t K b t K i t i f Offi K i 16

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- How to select Kobetsu Kaizen topics from Office Kaizen

Kobetsu Kaizen topics are selected aiming at --

- Inventory reduction- Lead time reduction of critical processes

- Motion amp space losses

- retrieval time reduction

- reducing or eliminating office work flow stagnation

- equalizing the work load

- analyzing for bdquono material‟ areas and improving them

- Improving the office efficiency

ndash By eliminating the time loss on retrieval of information

ndash By achieving zero breakdown of office equipment like telephoneand fax Lines Xerox machine etc

PPM Ch t IN OFFICE16

842019 Presentation on TPS -JIT Kanban

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- PPM Chart IN OFFICENov Dec Jan Feb Mar

96667 136667 110000 93333 1366

56 46 153 46

April May June July Aug

58333

90

Defects

Defects Expressed in 5W 1H

Fassion1 2 3 4 5 OF

S U N D A Y

8 9 10 11 12 OF

S U N D A Y

15 16 17 18 19 OF

S U N D A Y

22 23 24 25 26 OF

S U N D A Y

29 30

Total

Defect

s

PPM

1 BILL OF MATERIAL CHANGE 0 0 0 0 0

2 SUPPLIER FAULT 0 1 0 1 0 1 1 0 1 2 1 0 2 0 0 0 6 16 533

3 BUYER FAULT 0 0 0 0 0 0

4ENGINE PREPONED ADDITIONAL ENGINE 0 0 0 0 0 0 0

5 RRP-REQT RPORT PROBLEM 0 0 0 0 0 0 0

6 STOCK DESCRIPANCY 0 0 0 0 0 0 0

7 QUALITY SOURCING ISSUES 0 0 0 0 0 0 0 1 05 1666

8 DELAY GRR POSTING 0 0 0 0 0

9 TRANSPORTATION PROBLEM 0 0 0 1 0 1

Total Defects 0 0 0 0 0 0 0 1 0 1 1 1 0 0 1 0 1 2 1 0 0 0 3 0 0 0 0 0 0 6 0 175 583

0 0 0 0 0 0 0 3 3 3 3

0 3 3 3 3

3 3 3 3

3 3 3 3

0 0 3 3 3 3

0 3 3 3 3

6 6 6 7

3 3 3 3

0 0 0 8 3 3 3

0 0 0 0 0 0 2 0 0 0 0

0

Number of active parts for a month=300 NOS

Defects Per Million

Weekly PPM 0 5 5 6

2 2 2 2

2 2 2 2

0

What Short of material while Pulli Why Various reasons as above

Where In the Store Who Kanban process owener(store person)

When While Kanban Pulling How During routine work

MONTHLY

Sr

no

MONTHLY PP

Month

PPM

Kaizen

DATE

Month

PPM

Kaizen

Daily PPM Value for Feb - 2001

0

4000

8000

12000

16000

20000

24000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30Date

P P M

V a l u e

Weekly PPM Value

0

500

1000

1500

2000

2500

1 2 3 4 5

Week P P M

M P T bl IN OFFICE16

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- MoP Table IN OFFICEHuman Resources MOP summary

May02 Jun 02 Jul02 Aug 02 Sep02 Oct 02 Nov 02 Dec 02 Jan03 Feb03

Productivity (P)

Actual 6915 6546 4989 5806 5645 4879 5056 4746 5308 5158

Desired 50 50 50 50 50 50 50 50 50 50

Actual 300 250 150 250 250 200 150 150 175 225 450

Desired 200 200 200 200 200 200 200 200 200 200 200

Quality (Q)

Actual 76

Desired(Tar et)

80

Actual 12th 10th 12th 12th 10th 10th 10th 10th 9th 8th

Desired 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th

Actual 9th 7th 7th 8th 8th 7th 7th 7th 7th 6th

Desired 8th 7th 6th 6th 6th 6th 6th 6th 6th 6th 6th

Actual 5th 5th 5th 5th 5th 5th 5th 5th 5th 4th 5th

Desired 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th

Actual 0 1 0 1 1 1 0 1 1 1 2

Desired 0 0 0 0 0 0 0 0 0 0 0

BEFORE AFTER 5S

RESULT MONITORActual

DeasiredApr02

AFTER 5S

PeopleEngineDay

HRFE Score (Yearly

measure) (Measured one in a year)

Delivery (D)

Monthly Report Submission

Safety Incidents (S)

No of Accidents Month

CPS Report

Monthly headcount data

No of people involved in

community Welfare

- Kaizen Projects in Offices

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HR

bull Improve employee data adequacy

bull Transfer of old PF accountbull Consolidation of banks for salary payment

bull Safety on road Safety goggles

bull Safety gates on shop floors

bull Pokayokes on accidents ( Radial drills Signs on walkways )

bull Prevention of epidemic diseases

bull Canteen Improvement ndash Kanban for material

- Energy saving

- Improve ventilation and lighting

- Roof cooling by purified drainage

water

- Kaizen Projects in Offices

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HR

bull Improvement in Health awareness ( check up Lectures

De addiction campsbull Bench marking visits to other factories

bull Recognition policy

bull Participation in intra company competition

bull Safety poster competition

bull ldquoOrdquo tag campaign for safety

bull ATM counter bank facility at gate

bull Prize distribution by Union leaders

bull Letter to family for good work

bull Proper lighting and ventilation at workplace

842019 Presentation on TPS -JIT Kanban

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bull Poka-yoke (pronounced POH-kah YOH-kayldquo ) bull Japanese words poka (inadvertent mistake) and yoke

(prevent) was invented by Shigeo Shingo in the 1960s

bull The essential idea of poka-yoke is to design your process so

that mistakes are impossible or at least easily detected and

corrected

About Shigeo Shingohelliphelliphellip

bull A leading proponent of statistical process control

bull Became frustrated with the statistical approach

bull Statistical sampling implies that some products to gountested with the result that some rate of defects would

always reach the customer

About POKA YOKEhelliphelliphelliphellip

842019 Presentation on TPS -JIT Kanban

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bull Shingo was communicated of a problem inldquoYamada Electric plantrdquo in 1961

bull A small switch with two push-buttons supported by two

springs occasionally the worker assembling the switch would

forget to insert a spring under each push-button

bull Sometimes the error would not be discovered until the unitreached a customer

bull Factory would have to dispatch an engineer to the customer

site to disassemble the switch insert the missing spring and

re-assemble the switch

bull This problem of the missing spring was both costly andembarrassing

bull Despite everyones best intentions the missing spring problem

would eventually re-appear

Birth of POKA YOKE helliphelliphellip

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Pokayoke ActionError Has

Occurred

Detection

Is Made

Defect

Is

Signaled Control

Feedback

GivenProcess

Is

Stopped

POKA YOKE Action

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bull A system for organising work that prevents the error

bull Excludes any risk of error even by the beginner

bull Allows everyone to operate without mistake

bull Prevents error that are about to occur

bull Inspection time will be minimised

What is ldquoMistake Proofing ldquo Why should we do it

842019 Presentation on TPS -JIT Kanban

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Mistake -Proof Approach

List of Problems ndash Select

Form a Team

Brain-writing at Gemba

Why-Why Analysis leads to root cause

Kaizens on root cause

Establish Activities to maintain standard

Work Towards Low Cost Automation

Plan

Do

Check

Act

842019 Presentation on TPS -JIT Kanban

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What - A tool that helps to eliminate inadvertent human errors

- Helps to build quality in product at sourceWhere - Is helpful in highly repetitive situations High Productivity areas

may lead to mistakes sometimes

(Unintentional errors - Forgetting Ignoring Inattentiveness )

eg - Complex processes Repetitive assembly mistakes

When - Sourced from Safety issues Driven by known quality problems

Customer complaints RFT P Tags BIS issues FMEA

Why - Builds quality in the product waste elimination

How - Pokayoke is often LOW COST or NO COST solutions

POKA YOKE helps in case of unintentional mistakes and not mischiefs

Pokayoke - Fail safe in 5 W 1 H

Kaizen

842019 Presentation on TPS -JIT Kanban

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Welcome

Learning Session on

Model Machine

Objectives

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j

To Learn

bull Concept of Model Machine - P - PC Balance

bull Why Model Machine

bull 8 Major losses

bull OEE Calculations

bull How to Develop

bull Documentation

bull Examples

Wh M d l M hi

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Why Model MachineProfit = Sales ndash Cost

Profit = Sales ndash Mfg Cost

To reduce manufacturing cost needs optimumutilization of all assets ie resources

Measurement of effective utilization of all

resources is Overall Equipment Efficiency( OEE)

(09 09 09 = 73)

Why Model Machine

842019 Presentation on TPS -JIT Kanban

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Profit = Total sales ndash Total cost

Why Model Machine

Profit = Selling Prices - Input Mfg cost up

( competition ) ( Increasing cost of input resources )

To maintain improve profit hellip Solution is ldquo Reduce Mfg costrdquo

Improve Asset Utilization

Improve Overall Equipment ldquoEfficiencyrdquo (OEE)

OEE = Availability x Performance x Quality

Our goal should be to improve OEE gt 85

world class Benchmark = 95

Why Model Machine

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Why Model Machine

If

OEE = Mfg Cost

Mfg cost = profit

eg Consider a MC of cost Rs 5 cr

Utilization in Japan china ndash OEE 90Utilization in India ndash OEE 45 (45 7080)So product cost in India will be 2 times than the cost in

china

Key is improve to OEEAchievement on 8 Model Machines - OEE improved

from 45 to 75 85

P - PC Balance

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P PC Balance

Production Vs Production Capability

Engine+Parts Equipment + MC + Test Bed

Model Machine

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Factory Within Factory is BU

BU Within BU is MODEL MC

WHY Model MC

To deliver -Cost Effective Product to ldquoInternalrdquo amp Externalrdquo Customer

Zero - Breakdown

By Achieving - Zero - Accident

Zero - Defect

To Success is ldquoImprove OEErdquo (Overall Equipment Effectiveness)

5 - M‟S OF PRODUCTION

842019 Presentation on TPS -JIT Kanban

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bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

842019 Presentation on TPS -JIT Kanban

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NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

842019 Presentation on TPS -JIT Kanban

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Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

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Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

842019 Presentation on TPS -JIT Kanban

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What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

842019 Presentation on TPS -JIT Kanban

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Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

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TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

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INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

842019 Presentation on TPS -JIT Kanban

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TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

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What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

842019 Presentation on TPS -JIT Kanban

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TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

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TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

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Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

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US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

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g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

842019 Presentation on TPS -JIT Kanban

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TPSLean Principles

Click to proceed

TPSLean Principles

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TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

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Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

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Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

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Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

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Principle 2 Takt time

Takt Time

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bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

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Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

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Principle 3

Non-value added activities

What are Non-value added activities

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bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

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1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

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bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

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bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

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Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

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bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

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bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

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bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

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bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

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Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

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bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

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bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

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ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

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Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

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Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

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bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

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bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

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bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

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Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

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PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

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bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

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bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

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- How to start office Kaizen

Steps followed are

- Providing awareness about office Kaizen to all support departments

- Helping them to identify P Q C D S M in each function in relation to plantperformance

- Identify the scope for improvement in each function- Collect relevant data

- Help them to solve problems in their Circles Teams

- Make up an activity board where progress is monitored on both sides ndash results andactions along with Kaizens

How to identify losses in office Kaizen

In each functional area identify the losses separately and add them up to build up amaster plan for Office Kaizen For example

- office equipment breakdown

- communication channel breakdown telephone and fax lines

- time spent on retrieval of information

- non availability of correct on line stock status

- customer complaints due to logistics

- expenses on emergency dispatchespurchases- cost reduction on non-productionnon capital items

H t l t K b t K i t i f Offi K i 16

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- How to select Kobetsu Kaizen topics from Office Kaizen

Kobetsu Kaizen topics are selected aiming at --

- Inventory reduction- Lead time reduction of critical processes

- Motion amp space losses

- retrieval time reduction

- reducing or eliminating office work flow stagnation

- equalizing the work load

- analyzing for bdquono material‟ areas and improving them

- Improving the office efficiency

ndash By eliminating the time loss on retrieval of information

ndash By achieving zero breakdown of office equipment like telephoneand fax Lines Xerox machine etc

PPM Ch t IN OFFICE16

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- PPM Chart IN OFFICENov Dec Jan Feb Mar

96667 136667 110000 93333 1366

56 46 153 46

April May June July Aug

58333

90

Defects

Defects Expressed in 5W 1H

Fassion1 2 3 4 5 OF

S U N D A Y

8 9 10 11 12 OF

S U N D A Y

15 16 17 18 19 OF

S U N D A Y

22 23 24 25 26 OF

S U N D A Y

29 30

Total

Defect

s

PPM

1 BILL OF MATERIAL CHANGE 0 0 0 0 0

2 SUPPLIER FAULT 0 1 0 1 0 1 1 0 1 2 1 0 2 0 0 0 6 16 533

3 BUYER FAULT 0 0 0 0 0 0

4ENGINE PREPONED ADDITIONAL ENGINE 0 0 0 0 0 0 0

5 RRP-REQT RPORT PROBLEM 0 0 0 0 0 0 0

6 STOCK DESCRIPANCY 0 0 0 0 0 0 0

7 QUALITY SOURCING ISSUES 0 0 0 0 0 0 0 1 05 1666

8 DELAY GRR POSTING 0 0 0 0 0

9 TRANSPORTATION PROBLEM 0 0 0 1 0 1

Total Defects 0 0 0 0 0 0 0 1 0 1 1 1 0 0 1 0 1 2 1 0 0 0 3 0 0 0 0 0 0 6 0 175 583

0 0 0 0 0 0 0 3 3 3 3

0 3 3 3 3

3 3 3 3

3 3 3 3

0 0 3 3 3 3

0 3 3 3 3

6 6 6 7

3 3 3 3

0 0 0 8 3 3 3

0 0 0 0 0 0 2 0 0 0 0

0

Number of active parts for a month=300 NOS

Defects Per Million

Weekly PPM 0 5 5 6

2 2 2 2

2 2 2 2

0

What Short of material while Pulli Why Various reasons as above

Where In the Store Who Kanban process owener(store person)

When While Kanban Pulling How During routine work

MONTHLY

Sr

no

MONTHLY PP

Month

PPM

Kaizen

DATE

Month

PPM

Kaizen

Daily PPM Value for Feb - 2001

0

4000

8000

12000

16000

20000

24000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30Date

P P M

V a l u e

Weekly PPM Value

0

500

1000

1500

2000

2500

1 2 3 4 5

Week P P M

M P T bl IN OFFICE16

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- MoP Table IN OFFICEHuman Resources MOP summary

May02 Jun 02 Jul02 Aug 02 Sep02 Oct 02 Nov 02 Dec 02 Jan03 Feb03

Productivity (P)

Actual 6915 6546 4989 5806 5645 4879 5056 4746 5308 5158

Desired 50 50 50 50 50 50 50 50 50 50

Actual 300 250 150 250 250 200 150 150 175 225 450

Desired 200 200 200 200 200 200 200 200 200 200 200

Quality (Q)

Actual 76

Desired(Tar et)

80

Actual 12th 10th 12th 12th 10th 10th 10th 10th 9th 8th

Desired 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th

Actual 9th 7th 7th 8th 8th 7th 7th 7th 7th 6th

Desired 8th 7th 6th 6th 6th 6th 6th 6th 6th 6th 6th

Actual 5th 5th 5th 5th 5th 5th 5th 5th 5th 4th 5th

Desired 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th

Actual 0 1 0 1 1 1 0 1 1 1 2

Desired 0 0 0 0 0 0 0 0 0 0 0

BEFORE AFTER 5S

RESULT MONITORActual

DeasiredApr02

AFTER 5S

PeopleEngineDay

HRFE Score (Yearly

measure) (Measured one in a year)

Delivery (D)

Monthly Report Submission

Safety Incidents (S)

No of Accidents Month

CPS Report

Monthly headcount data

No of people involved in

community Welfare

- Kaizen Projects in Offices

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HR

bull Improve employee data adequacy

bull Transfer of old PF accountbull Consolidation of banks for salary payment

bull Safety on road Safety goggles

bull Safety gates on shop floors

bull Pokayokes on accidents ( Radial drills Signs on walkways )

bull Prevention of epidemic diseases

bull Canteen Improvement ndash Kanban for material

- Energy saving

- Improve ventilation and lighting

- Roof cooling by purified drainage

water

- Kaizen Projects in Offices

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HR

bull Improvement in Health awareness ( check up Lectures

De addiction campsbull Bench marking visits to other factories

bull Recognition policy

bull Participation in intra company competition

bull Safety poster competition

bull ldquoOrdquo tag campaign for safety

bull ATM counter bank facility at gate

bull Prize distribution by Union leaders

bull Letter to family for good work

bull Proper lighting and ventilation at workplace

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bull Poka-yoke (pronounced POH-kah YOH-kayldquo ) bull Japanese words poka (inadvertent mistake) and yoke

(prevent) was invented by Shigeo Shingo in the 1960s

bull The essential idea of poka-yoke is to design your process so

that mistakes are impossible or at least easily detected and

corrected

About Shigeo Shingohelliphelliphellip

bull A leading proponent of statistical process control

bull Became frustrated with the statistical approach

bull Statistical sampling implies that some products to gountested with the result that some rate of defects would

always reach the customer

About POKA YOKEhelliphelliphelliphellip

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bull Shingo was communicated of a problem inldquoYamada Electric plantrdquo in 1961

bull A small switch with two push-buttons supported by two

springs occasionally the worker assembling the switch would

forget to insert a spring under each push-button

bull Sometimes the error would not be discovered until the unitreached a customer

bull Factory would have to dispatch an engineer to the customer

site to disassemble the switch insert the missing spring and

re-assemble the switch

bull This problem of the missing spring was both costly andembarrassing

bull Despite everyones best intentions the missing spring problem

would eventually re-appear

Birth of POKA YOKE helliphelliphellip

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Pokayoke ActionError Has

Occurred

Detection

Is Made

Defect

Is

Signaled Control

Feedback

GivenProcess

Is

Stopped

POKA YOKE Action

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bull A system for organising work that prevents the error

bull Excludes any risk of error even by the beginner

bull Allows everyone to operate without mistake

bull Prevents error that are about to occur

bull Inspection time will be minimised

What is ldquoMistake Proofing ldquo Why should we do it

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Mistake -Proof Approach

List of Problems ndash Select

Form a Team

Brain-writing at Gemba

Why-Why Analysis leads to root cause

Kaizens on root cause

Establish Activities to maintain standard

Work Towards Low Cost Automation

Plan

Do

Check

Act

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What - A tool that helps to eliminate inadvertent human errors

- Helps to build quality in product at sourceWhere - Is helpful in highly repetitive situations High Productivity areas

may lead to mistakes sometimes

(Unintentional errors - Forgetting Ignoring Inattentiveness )

eg - Complex processes Repetitive assembly mistakes

When - Sourced from Safety issues Driven by known quality problems

Customer complaints RFT P Tags BIS issues FMEA

Why - Builds quality in the product waste elimination

How - Pokayoke is often LOW COST or NO COST solutions

POKA YOKE helps in case of unintentional mistakes and not mischiefs

Pokayoke - Fail safe in 5 W 1 H

Kaizen

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Welcome

Learning Session on

Model Machine

Objectives

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j

To Learn

bull Concept of Model Machine - P - PC Balance

bull Why Model Machine

bull 8 Major losses

bull OEE Calculations

bull How to Develop

bull Documentation

bull Examples

Wh M d l M hi

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Why Model MachineProfit = Sales ndash Cost

Profit = Sales ndash Mfg Cost

To reduce manufacturing cost needs optimumutilization of all assets ie resources

Measurement of effective utilization of all

resources is Overall Equipment Efficiency( OEE)

(09 09 09 = 73)

Why Model Machine

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Profit = Total sales ndash Total cost

Why Model Machine

Profit = Selling Prices - Input Mfg cost up

( competition ) ( Increasing cost of input resources )

To maintain improve profit hellip Solution is ldquo Reduce Mfg costrdquo

Improve Asset Utilization

Improve Overall Equipment ldquoEfficiencyrdquo (OEE)

OEE = Availability x Performance x Quality

Our goal should be to improve OEE gt 85

world class Benchmark = 95

Why Model Machine

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Why Model Machine

If

OEE = Mfg Cost

Mfg cost = profit

eg Consider a MC of cost Rs 5 cr

Utilization in Japan china ndash OEE 90Utilization in India ndash OEE 45 (45 7080)So product cost in India will be 2 times than the cost in

china

Key is improve to OEEAchievement on 8 Model Machines - OEE improved

from 45 to 75 85

P - PC Balance

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P PC Balance

Production Vs Production Capability

Engine+Parts Equipment + MC + Test Bed

Model Machine

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Factory Within Factory is BU

BU Within BU is MODEL MC

WHY Model MC

To deliver -Cost Effective Product to ldquoInternalrdquo amp Externalrdquo Customer

Zero - Breakdown

By Achieving - Zero - Accident

Zero - Defect

To Success is ldquoImprove OEErdquo (Overall Equipment Effectiveness)

5 - M‟S OF PRODUCTION

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bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

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NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

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Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

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Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

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What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

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Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

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TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

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INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

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TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

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What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

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TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

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TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

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Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

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US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

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g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

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TPSLean Principles

Click to proceed

TPSLean Principles

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TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

842019 Presentation on TPS -JIT Kanban

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Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

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Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

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Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

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Principle 2 Takt time

Takt Time

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bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

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Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

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Principle 3

Non-value added activities

What are Non-value added activities

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bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

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1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

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bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

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bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

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Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

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bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

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bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

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bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

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bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

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Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

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bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

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bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

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ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

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Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

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Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

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bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

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bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

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bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

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Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

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PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

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bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

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bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

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- How to select Kobetsu Kaizen topics from Office Kaizen

Kobetsu Kaizen topics are selected aiming at --

- Inventory reduction- Lead time reduction of critical processes

- Motion amp space losses

- retrieval time reduction

- reducing or eliminating office work flow stagnation

- equalizing the work load

- analyzing for bdquono material‟ areas and improving them

- Improving the office efficiency

ndash By eliminating the time loss on retrieval of information

ndash By achieving zero breakdown of office equipment like telephoneand fax Lines Xerox machine etc

PPM Ch t IN OFFICE16

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- PPM Chart IN OFFICENov Dec Jan Feb Mar

96667 136667 110000 93333 1366

56 46 153 46

April May June July Aug

58333

90

Defects

Defects Expressed in 5W 1H

Fassion1 2 3 4 5 OF

S U N D A Y

8 9 10 11 12 OF

S U N D A Y

15 16 17 18 19 OF

S U N D A Y

22 23 24 25 26 OF

S U N D A Y

29 30

Total

Defect

s

PPM

1 BILL OF MATERIAL CHANGE 0 0 0 0 0

2 SUPPLIER FAULT 0 1 0 1 0 1 1 0 1 2 1 0 2 0 0 0 6 16 533

3 BUYER FAULT 0 0 0 0 0 0

4ENGINE PREPONED ADDITIONAL ENGINE 0 0 0 0 0 0 0

5 RRP-REQT RPORT PROBLEM 0 0 0 0 0 0 0

6 STOCK DESCRIPANCY 0 0 0 0 0 0 0

7 QUALITY SOURCING ISSUES 0 0 0 0 0 0 0 1 05 1666

8 DELAY GRR POSTING 0 0 0 0 0

9 TRANSPORTATION PROBLEM 0 0 0 1 0 1

Total Defects 0 0 0 0 0 0 0 1 0 1 1 1 0 0 1 0 1 2 1 0 0 0 3 0 0 0 0 0 0 6 0 175 583

0 0 0 0 0 0 0 3 3 3 3

0 3 3 3 3

3 3 3 3

3 3 3 3

0 0 3 3 3 3

0 3 3 3 3

6 6 6 7

3 3 3 3

0 0 0 8 3 3 3

0 0 0 0 0 0 2 0 0 0 0

0

Number of active parts for a month=300 NOS

Defects Per Million

Weekly PPM 0 5 5 6

2 2 2 2

2 2 2 2

0

What Short of material while Pulli Why Various reasons as above

Where In the Store Who Kanban process owener(store person)

When While Kanban Pulling How During routine work

MONTHLY

Sr

no

MONTHLY PP

Month

PPM

Kaizen

DATE

Month

PPM

Kaizen

Daily PPM Value for Feb - 2001

0

4000

8000

12000

16000

20000

24000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30Date

P P M

V a l u e

Weekly PPM Value

0

500

1000

1500

2000

2500

1 2 3 4 5

Week P P M

M P T bl IN OFFICE16

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- MoP Table IN OFFICEHuman Resources MOP summary

May02 Jun 02 Jul02 Aug 02 Sep02 Oct 02 Nov 02 Dec 02 Jan03 Feb03

Productivity (P)

Actual 6915 6546 4989 5806 5645 4879 5056 4746 5308 5158

Desired 50 50 50 50 50 50 50 50 50 50

Actual 300 250 150 250 250 200 150 150 175 225 450

Desired 200 200 200 200 200 200 200 200 200 200 200

Quality (Q)

Actual 76

Desired(Tar et)

80

Actual 12th 10th 12th 12th 10th 10th 10th 10th 9th 8th

Desired 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th

Actual 9th 7th 7th 8th 8th 7th 7th 7th 7th 6th

Desired 8th 7th 6th 6th 6th 6th 6th 6th 6th 6th 6th

Actual 5th 5th 5th 5th 5th 5th 5th 5th 5th 4th 5th

Desired 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th

Actual 0 1 0 1 1 1 0 1 1 1 2

Desired 0 0 0 0 0 0 0 0 0 0 0

BEFORE AFTER 5S

RESULT MONITORActual

DeasiredApr02

AFTER 5S

PeopleEngineDay

HRFE Score (Yearly

measure) (Measured one in a year)

Delivery (D)

Monthly Report Submission

Safety Incidents (S)

No of Accidents Month

CPS Report

Monthly headcount data

No of people involved in

community Welfare

- Kaizen Projects in Offices

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HR

bull Improve employee data adequacy

bull Transfer of old PF accountbull Consolidation of banks for salary payment

bull Safety on road Safety goggles

bull Safety gates on shop floors

bull Pokayokes on accidents ( Radial drills Signs on walkways )

bull Prevention of epidemic diseases

bull Canteen Improvement ndash Kanban for material

- Energy saving

- Improve ventilation and lighting

- Roof cooling by purified drainage

water

- Kaizen Projects in Offices

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HR

bull Improvement in Health awareness ( check up Lectures

De addiction campsbull Bench marking visits to other factories

bull Recognition policy

bull Participation in intra company competition

bull Safety poster competition

bull ldquoOrdquo tag campaign for safety

bull ATM counter bank facility at gate

bull Prize distribution by Union leaders

bull Letter to family for good work

bull Proper lighting and ventilation at workplace

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bull Poka-yoke (pronounced POH-kah YOH-kayldquo ) bull Japanese words poka (inadvertent mistake) and yoke

(prevent) was invented by Shigeo Shingo in the 1960s

bull The essential idea of poka-yoke is to design your process so

that mistakes are impossible or at least easily detected and

corrected

About Shigeo Shingohelliphelliphellip

bull A leading proponent of statistical process control

bull Became frustrated with the statistical approach

bull Statistical sampling implies that some products to gountested with the result that some rate of defects would

always reach the customer

About POKA YOKEhelliphelliphelliphellip

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bull Shingo was communicated of a problem inldquoYamada Electric plantrdquo in 1961

bull A small switch with two push-buttons supported by two

springs occasionally the worker assembling the switch would

forget to insert a spring under each push-button

bull Sometimes the error would not be discovered until the unitreached a customer

bull Factory would have to dispatch an engineer to the customer

site to disassemble the switch insert the missing spring and

re-assemble the switch

bull This problem of the missing spring was both costly andembarrassing

bull Despite everyones best intentions the missing spring problem

would eventually re-appear

Birth of POKA YOKE helliphelliphellip

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Pokayoke ActionError Has

Occurred

Detection

Is Made

Defect

Is

Signaled Control

Feedback

GivenProcess

Is

Stopped

POKA YOKE Action

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bull A system for organising work that prevents the error

bull Excludes any risk of error even by the beginner

bull Allows everyone to operate without mistake

bull Prevents error that are about to occur

bull Inspection time will be minimised

What is ldquoMistake Proofing ldquo Why should we do it

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Mistake -Proof Approach

List of Problems ndash Select

Form a Team

Brain-writing at Gemba

Why-Why Analysis leads to root cause

Kaizens on root cause

Establish Activities to maintain standard

Work Towards Low Cost Automation

Plan

Do

Check

Act

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What - A tool that helps to eliminate inadvertent human errors

- Helps to build quality in product at sourceWhere - Is helpful in highly repetitive situations High Productivity areas

may lead to mistakes sometimes

(Unintentional errors - Forgetting Ignoring Inattentiveness )

eg - Complex processes Repetitive assembly mistakes

When - Sourced from Safety issues Driven by known quality problems

Customer complaints RFT P Tags BIS issues FMEA

Why - Builds quality in the product waste elimination

How - Pokayoke is often LOW COST or NO COST solutions

POKA YOKE helps in case of unintentional mistakes and not mischiefs

Pokayoke - Fail safe in 5 W 1 H

Kaizen

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Welcome

Learning Session on

Model Machine

Objectives

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j

To Learn

bull Concept of Model Machine - P - PC Balance

bull Why Model Machine

bull 8 Major losses

bull OEE Calculations

bull How to Develop

bull Documentation

bull Examples

Wh M d l M hi

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Why Model MachineProfit = Sales ndash Cost

Profit = Sales ndash Mfg Cost

To reduce manufacturing cost needs optimumutilization of all assets ie resources

Measurement of effective utilization of all

resources is Overall Equipment Efficiency( OEE)

(09 09 09 = 73)

Why Model Machine

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Profit = Total sales ndash Total cost

Why Model Machine

Profit = Selling Prices - Input Mfg cost up

( competition ) ( Increasing cost of input resources )

To maintain improve profit hellip Solution is ldquo Reduce Mfg costrdquo

Improve Asset Utilization

Improve Overall Equipment ldquoEfficiencyrdquo (OEE)

OEE = Availability x Performance x Quality

Our goal should be to improve OEE gt 85

world class Benchmark = 95

Why Model Machine

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Why Model Machine

If

OEE = Mfg Cost

Mfg cost = profit

eg Consider a MC of cost Rs 5 cr

Utilization in Japan china ndash OEE 90Utilization in India ndash OEE 45 (45 7080)So product cost in India will be 2 times than the cost in

china

Key is improve to OEEAchievement on 8 Model Machines - OEE improved

from 45 to 75 85

P - PC Balance

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P PC Balance

Production Vs Production Capability

Engine+Parts Equipment + MC + Test Bed

Model Machine

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Factory Within Factory is BU

BU Within BU is MODEL MC

WHY Model MC

To deliver -Cost Effective Product to ldquoInternalrdquo amp Externalrdquo Customer

Zero - Breakdown

By Achieving - Zero - Accident

Zero - Defect

To Success is ldquoImprove OEErdquo (Overall Equipment Effectiveness)

5 - M‟S OF PRODUCTION

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bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

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NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

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Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

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Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

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What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

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Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

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TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

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INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

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TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

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What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

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TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

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TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

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Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

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US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

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g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

842019 Presentation on TPS -JIT Kanban

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TPSLean Principles

Click to proceed

TPSLean Principles

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TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

842019 Presentation on TPS -JIT Kanban

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Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

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Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

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Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

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Principle 2 Takt time

Takt Time

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bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

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Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

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Principle 3

Non-value added activities

What are Non-value added activities

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bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

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1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

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bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

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bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

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Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

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bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

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bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

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bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

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bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

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Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

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bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

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bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

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ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

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Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

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Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

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bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

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bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

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bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

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Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

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PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

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bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

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bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

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- PPM Chart IN OFFICENov Dec Jan Feb Mar

96667 136667 110000 93333 1366

56 46 153 46

April May June July Aug

58333

90

Defects

Defects Expressed in 5W 1H

Fassion1 2 3 4 5 OF

S U N D A Y

8 9 10 11 12 OF

S U N D A Y

15 16 17 18 19 OF

S U N D A Y

22 23 24 25 26 OF

S U N D A Y

29 30

Total

Defect

s

PPM

1 BILL OF MATERIAL CHANGE 0 0 0 0 0

2 SUPPLIER FAULT 0 1 0 1 0 1 1 0 1 2 1 0 2 0 0 0 6 16 533

3 BUYER FAULT 0 0 0 0 0 0

4ENGINE PREPONED ADDITIONAL ENGINE 0 0 0 0 0 0 0

5 RRP-REQT RPORT PROBLEM 0 0 0 0 0 0 0

6 STOCK DESCRIPANCY 0 0 0 0 0 0 0

7 QUALITY SOURCING ISSUES 0 0 0 0 0 0 0 1 05 1666

8 DELAY GRR POSTING 0 0 0 0 0

9 TRANSPORTATION PROBLEM 0 0 0 1 0 1

Total Defects 0 0 0 0 0 0 0 1 0 1 1 1 0 0 1 0 1 2 1 0 0 0 3 0 0 0 0 0 0 6 0 175 583

0 0 0 0 0 0 0 3 3 3 3

0 3 3 3 3

3 3 3 3

3 3 3 3

0 0 3 3 3 3

0 3 3 3 3

6 6 6 7

3 3 3 3

0 0 0 8 3 3 3

0 0 0 0 0 0 2 0 0 0 0

0

Number of active parts for a month=300 NOS

Defects Per Million

Weekly PPM 0 5 5 6

2 2 2 2

2 2 2 2

0

What Short of material while Pulli Why Various reasons as above

Where In the Store Who Kanban process owener(store person)

When While Kanban Pulling How During routine work

MONTHLY

Sr

no

MONTHLY PP

Month

PPM

Kaizen

DATE

Month

PPM

Kaizen

Daily PPM Value for Feb - 2001

0

4000

8000

12000

16000

20000

24000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30Date

P P M

V a l u e

Weekly PPM Value

0

500

1000

1500

2000

2500

1 2 3 4 5

Week P P M

M P T bl IN OFFICE16

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- MoP Table IN OFFICEHuman Resources MOP summary

May02 Jun 02 Jul02 Aug 02 Sep02 Oct 02 Nov 02 Dec 02 Jan03 Feb03

Productivity (P)

Actual 6915 6546 4989 5806 5645 4879 5056 4746 5308 5158

Desired 50 50 50 50 50 50 50 50 50 50

Actual 300 250 150 250 250 200 150 150 175 225 450

Desired 200 200 200 200 200 200 200 200 200 200 200

Quality (Q)

Actual 76

Desired(Tar et)

80

Actual 12th 10th 12th 12th 10th 10th 10th 10th 9th 8th

Desired 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th

Actual 9th 7th 7th 8th 8th 7th 7th 7th 7th 6th

Desired 8th 7th 6th 6th 6th 6th 6th 6th 6th 6th 6th

Actual 5th 5th 5th 5th 5th 5th 5th 5th 5th 4th 5th

Desired 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th

Actual 0 1 0 1 1 1 0 1 1 1 2

Desired 0 0 0 0 0 0 0 0 0 0 0

BEFORE AFTER 5S

RESULT MONITORActual

DeasiredApr02

AFTER 5S

PeopleEngineDay

HRFE Score (Yearly

measure) (Measured one in a year)

Delivery (D)

Monthly Report Submission

Safety Incidents (S)

No of Accidents Month

CPS Report

Monthly headcount data

No of people involved in

community Welfare

- Kaizen Projects in Offices

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HR

bull Improve employee data adequacy

bull Transfer of old PF accountbull Consolidation of banks for salary payment

bull Safety on road Safety goggles

bull Safety gates on shop floors

bull Pokayokes on accidents ( Radial drills Signs on walkways )

bull Prevention of epidemic diseases

bull Canteen Improvement ndash Kanban for material

- Energy saving

- Improve ventilation and lighting

- Roof cooling by purified drainage

water

- Kaizen Projects in Offices

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HR

bull Improvement in Health awareness ( check up Lectures

De addiction campsbull Bench marking visits to other factories

bull Recognition policy

bull Participation in intra company competition

bull Safety poster competition

bull ldquoOrdquo tag campaign for safety

bull ATM counter bank facility at gate

bull Prize distribution by Union leaders

bull Letter to family for good work

bull Proper lighting and ventilation at workplace

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bull Poka-yoke (pronounced POH-kah YOH-kayldquo ) bull Japanese words poka (inadvertent mistake) and yoke

(prevent) was invented by Shigeo Shingo in the 1960s

bull The essential idea of poka-yoke is to design your process so

that mistakes are impossible or at least easily detected and

corrected

About Shigeo Shingohelliphelliphellip

bull A leading proponent of statistical process control

bull Became frustrated with the statistical approach

bull Statistical sampling implies that some products to gountested with the result that some rate of defects would

always reach the customer

About POKA YOKEhelliphelliphelliphellip

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bull Shingo was communicated of a problem inldquoYamada Electric plantrdquo in 1961

bull A small switch with two push-buttons supported by two

springs occasionally the worker assembling the switch would

forget to insert a spring under each push-button

bull Sometimes the error would not be discovered until the unitreached a customer

bull Factory would have to dispatch an engineer to the customer

site to disassemble the switch insert the missing spring and

re-assemble the switch

bull This problem of the missing spring was both costly andembarrassing

bull Despite everyones best intentions the missing spring problem

would eventually re-appear

Birth of POKA YOKE helliphelliphellip

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Pokayoke ActionError Has

Occurred

Detection

Is Made

Defect

Is

Signaled Control

Feedback

GivenProcess

Is

Stopped

POKA YOKE Action

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bull A system for organising work that prevents the error

bull Excludes any risk of error even by the beginner

bull Allows everyone to operate without mistake

bull Prevents error that are about to occur

bull Inspection time will be minimised

What is ldquoMistake Proofing ldquo Why should we do it

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Mistake -Proof Approach

List of Problems ndash Select

Form a Team

Brain-writing at Gemba

Why-Why Analysis leads to root cause

Kaizens on root cause

Establish Activities to maintain standard

Work Towards Low Cost Automation

Plan

Do

Check

Act

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What - A tool that helps to eliminate inadvertent human errors

- Helps to build quality in product at sourceWhere - Is helpful in highly repetitive situations High Productivity areas

may lead to mistakes sometimes

(Unintentional errors - Forgetting Ignoring Inattentiveness )

eg - Complex processes Repetitive assembly mistakes

When - Sourced from Safety issues Driven by known quality problems

Customer complaints RFT P Tags BIS issues FMEA

Why - Builds quality in the product waste elimination

How - Pokayoke is often LOW COST or NO COST solutions

POKA YOKE helps in case of unintentional mistakes and not mischiefs

Pokayoke - Fail safe in 5 W 1 H

Kaizen

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Welcome

Learning Session on

Model Machine

Objectives

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j

To Learn

bull Concept of Model Machine - P - PC Balance

bull Why Model Machine

bull 8 Major losses

bull OEE Calculations

bull How to Develop

bull Documentation

bull Examples

Wh M d l M hi

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Why Model MachineProfit = Sales ndash Cost

Profit = Sales ndash Mfg Cost

To reduce manufacturing cost needs optimumutilization of all assets ie resources

Measurement of effective utilization of all

resources is Overall Equipment Efficiency( OEE)

(09 09 09 = 73)

Why Model Machine

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Profit = Total sales ndash Total cost

Why Model Machine

Profit = Selling Prices - Input Mfg cost up

( competition ) ( Increasing cost of input resources )

To maintain improve profit hellip Solution is ldquo Reduce Mfg costrdquo

Improve Asset Utilization

Improve Overall Equipment ldquoEfficiencyrdquo (OEE)

OEE = Availability x Performance x Quality

Our goal should be to improve OEE gt 85

world class Benchmark = 95

Why Model Machine

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Why Model Machine

If

OEE = Mfg Cost

Mfg cost = profit

eg Consider a MC of cost Rs 5 cr

Utilization in Japan china ndash OEE 90Utilization in India ndash OEE 45 (45 7080)So product cost in India will be 2 times than the cost in

china

Key is improve to OEEAchievement on 8 Model Machines - OEE improved

from 45 to 75 85

P - PC Balance

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P PC Balance

Production Vs Production Capability

Engine+Parts Equipment + MC + Test Bed

Model Machine

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Factory Within Factory is BU

BU Within BU is MODEL MC

WHY Model MC

To deliver -Cost Effective Product to ldquoInternalrdquo amp Externalrdquo Customer

Zero - Breakdown

By Achieving - Zero - Accident

Zero - Defect

To Success is ldquoImprove OEErdquo (Overall Equipment Effectiveness)

5 - M‟S OF PRODUCTION

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bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

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NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

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Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

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Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

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What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

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Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

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TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

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INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

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TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

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What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

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TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

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TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

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Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

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US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

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g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

842019 Presentation on TPS -JIT Kanban

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TPSLean Principles

Click to proceed

TPSLean Principles

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TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

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Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

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Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

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Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

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Principle 2 Takt time

Takt Time

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bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

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Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

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Principle 3

Non-value added activities

What are Non-value added activities

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bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

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1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

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bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

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bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

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Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

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bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

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bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

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bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

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bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

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Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

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bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

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bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

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ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

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Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

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Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

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bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

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bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

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bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

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Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

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PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

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bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

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bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

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- MoP Table IN OFFICEHuman Resources MOP summary

May02 Jun 02 Jul02 Aug 02 Sep02 Oct 02 Nov 02 Dec 02 Jan03 Feb03

Productivity (P)

Actual 6915 6546 4989 5806 5645 4879 5056 4746 5308 5158

Desired 50 50 50 50 50 50 50 50 50 50

Actual 300 250 150 250 250 200 150 150 175 225 450

Desired 200 200 200 200 200 200 200 200 200 200 200

Quality (Q)

Actual 76

Desired(Tar et)

80

Actual 12th 10th 12th 12th 10th 10th 10th 10th 9th 8th

Desired 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th 8th

Actual 9th 7th 7th 8th 8th 7th 7th 7th 7th 6th

Desired 8th 7th 6th 6th 6th 6th 6th 6th 6th 6th 6th

Actual 5th 5th 5th 5th 5th 5th 5th 5th 5th 4th 5th

Desired 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th 7th

Actual 0 1 0 1 1 1 0 1 1 1 2

Desired 0 0 0 0 0 0 0 0 0 0 0

BEFORE AFTER 5S

RESULT MONITORActual

DeasiredApr02

AFTER 5S

PeopleEngineDay

HRFE Score (Yearly

measure) (Measured one in a year)

Delivery (D)

Monthly Report Submission

Safety Incidents (S)

No of Accidents Month

CPS Report

Monthly headcount data

No of people involved in

community Welfare

- Kaizen Projects in Offices

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HR

bull Improve employee data adequacy

bull Transfer of old PF accountbull Consolidation of banks for salary payment

bull Safety on road Safety goggles

bull Safety gates on shop floors

bull Pokayokes on accidents ( Radial drills Signs on walkways )

bull Prevention of epidemic diseases

bull Canteen Improvement ndash Kanban for material

- Energy saving

- Improve ventilation and lighting

- Roof cooling by purified drainage

water

- Kaizen Projects in Offices

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HR

bull Improvement in Health awareness ( check up Lectures

De addiction campsbull Bench marking visits to other factories

bull Recognition policy

bull Participation in intra company competition

bull Safety poster competition

bull ldquoOrdquo tag campaign for safety

bull ATM counter bank facility at gate

bull Prize distribution by Union leaders

bull Letter to family for good work

bull Proper lighting and ventilation at workplace

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bull Poka-yoke (pronounced POH-kah YOH-kayldquo ) bull Japanese words poka (inadvertent mistake) and yoke

(prevent) was invented by Shigeo Shingo in the 1960s

bull The essential idea of poka-yoke is to design your process so

that mistakes are impossible or at least easily detected and

corrected

About Shigeo Shingohelliphelliphellip

bull A leading proponent of statistical process control

bull Became frustrated with the statistical approach

bull Statistical sampling implies that some products to gountested with the result that some rate of defects would

always reach the customer

About POKA YOKEhelliphelliphelliphellip

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bull Shingo was communicated of a problem inldquoYamada Electric plantrdquo in 1961

bull A small switch with two push-buttons supported by two

springs occasionally the worker assembling the switch would

forget to insert a spring under each push-button

bull Sometimes the error would not be discovered until the unitreached a customer

bull Factory would have to dispatch an engineer to the customer

site to disassemble the switch insert the missing spring and

re-assemble the switch

bull This problem of the missing spring was both costly andembarrassing

bull Despite everyones best intentions the missing spring problem

would eventually re-appear

Birth of POKA YOKE helliphelliphellip

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Pokayoke ActionError Has

Occurred

Detection

Is Made

Defect

Is

Signaled Control

Feedback

GivenProcess

Is

Stopped

POKA YOKE Action

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bull A system for organising work that prevents the error

bull Excludes any risk of error even by the beginner

bull Allows everyone to operate without mistake

bull Prevents error that are about to occur

bull Inspection time will be minimised

What is ldquoMistake Proofing ldquo Why should we do it

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Mistake -Proof Approach

List of Problems ndash Select

Form a Team

Brain-writing at Gemba

Why-Why Analysis leads to root cause

Kaizens on root cause

Establish Activities to maintain standard

Work Towards Low Cost Automation

Plan

Do

Check

Act

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What - A tool that helps to eliminate inadvertent human errors

- Helps to build quality in product at sourceWhere - Is helpful in highly repetitive situations High Productivity areas

may lead to mistakes sometimes

(Unintentional errors - Forgetting Ignoring Inattentiveness )

eg - Complex processes Repetitive assembly mistakes

When - Sourced from Safety issues Driven by known quality problems

Customer complaints RFT P Tags BIS issues FMEA

Why - Builds quality in the product waste elimination

How - Pokayoke is often LOW COST or NO COST solutions

POKA YOKE helps in case of unintentional mistakes and not mischiefs

Pokayoke - Fail safe in 5 W 1 H

Kaizen

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Welcome

Learning Session on

Model Machine

Objectives

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j

To Learn

bull Concept of Model Machine - P - PC Balance

bull Why Model Machine

bull 8 Major losses

bull OEE Calculations

bull How to Develop

bull Documentation

bull Examples

Wh M d l M hi

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Why Model MachineProfit = Sales ndash Cost

Profit = Sales ndash Mfg Cost

To reduce manufacturing cost needs optimumutilization of all assets ie resources

Measurement of effective utilization of all

resources is Overall Equipment Efficiency( OEE)

(09 09 09 = 73)

Why Model Machine

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Profit = Total sales ndash Total cost

Why Model Machine

Profit = Selling Prices - Input Mfg cost up

( competition ) ( Increasing cost of input resources )

To maintain improve profit hellip Solution is ldquo Reduce Mfg costrdquo

Improve Asset Utilization

Improve Overall Equipment ldquoEfficiencyrdquo (OEE)

OEE = Availability x Performance x Quality

Our goal should be to improve OEE gt 85

world class Benchmark = 95

Why Model Machine

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Why Model Machine

If

OEE = Mfg Cost

Mfg cost = profit

eg Consider a MC of cost Rs 5 cr

Utilization in Japan china ndash OEE 90Utilization in India ndash OEE 45 (45 7080)So product cost in India will be 2 times than the cost in

china

Key is improve to OEEAchievement on 8 Model Machines - OEE improved

from 45 to 75 85

P - PC Balance

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P PC Balance

Production Vs Production Capability

Engine+Parts Equipment + MC + Test Bed

Model Machine

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Factory Within Factory is BU

BU Within BU is MODEL MC

WHY Model MC

To deliver -Cost Effective Product to ldquoInternalrdquo amp Externalrdquo Customer

Zero - Breakdown

By Achieving - Zero - Accident

Zero - Defect

To Success is ldquoImprove OEErdquo (Overall Equipment Effectiveness)

5 - M‟S OF PRODUCTION

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bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

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NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

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Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

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Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

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What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

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Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

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TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

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INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

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TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

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What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

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TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

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TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

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Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5593

US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

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g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

842019 Presentation on TPS -JIT Kanban

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TPSLean Principles

Click to proceed

TPSLean Principles

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TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

842019 Presentation on TPS -JIT Kanban

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Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

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Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

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Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

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Principle 2 Takt time

Takt Time

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bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

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Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

842019 Presentation on TPS -JIT Kanban

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Principle 3

Non-value added activities

What are Non-value added activities

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bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

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1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

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bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

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bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

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Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

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bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

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bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

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bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

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bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

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Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

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bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

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bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

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ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

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Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

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Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

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bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

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bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

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bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

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Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

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PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

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bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

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bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

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HR

bull Improve employee data adequacy

bull Transfer of old PF accountbull Consolidation of banks for salary payment

bull Safety on road Safety goggles

bull Safety gates on shop floors

bull Pokayokes on accidents ( Radial drills Signs on walkways )

bull Prevention of epidemic diseases

bull Canteen Improvement ndash Kanban for material

- Energy saving

- Improve ventilation and lighting

- Roof cooling by purified drainage

water

- Kaizen Projects in Offices

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HR

bull Improvement in Health awareness ( check up Lectures

De addiction campsbull Bench marking visits to other factories

bull Recognition policy

bull Participation in intra company competition

bull Safety poster competition

bull ldquoOrdquo tag campaign for safety

bull ATM counter bank facility at gate

bull Prize distribution by Union leaders

bull Letter to family for good work

bull Proper lighting and ventilation at workplace

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bull Poka-yoke (pronounced POH-kah YOH-kayldquo ) bull Japanese words poka (inadvertent mistake) and yoke

(prevent) was invented by Shigeo Shingo in the 1960s

bull The essential idea of poka-yoke is to design your process so

that mistakes are impossible or at least easily detected and

corrected

About Shigeo Shingohelliphelliphellip

bull A leading proponent of statistical process control

bull Became frustrated with the statistical approach

bull Statistical sampling implies that some products to gountested with the result that some rate of defects would

always reach the customer

About POKA YOKEhelliphelliphelliphellip

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bull Shingo was communicated of a problem inldquoYamada Electric plantrdquo in 1961

bull A small switch with two push-buttons supported by two

springs occasionally the worker assembling the switch would

forget to insert a spring under each push-button

bull Sometimes the error would not be discovered until the unitreached a customer

bull Factory would have to dispatch an engineer to the customer

site to disassemble the switch insert the missing spring and

re-assemble the switch

bull This problem of the missing spring was both costly andembarrassing

bull Despite everyones best intentions the missing spring problem

would eventually re-appear

Birth of POKA YOKE helliphelliphellip

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Pokayoke ActionError Has

Occurred

Detection

Is Made

Defect

Is

Signaled Control

Feedback

GivenProcess

Is

Stopped

POKA YOKE Action

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bull A system for organising work that prevents the error

bull Excludes any risk of error even by the beginner

bull Allows everyone to operate without mistake

bull Prevents error that are about to occur

bull Inspection time will be minimised

What is ldquoMistake Proofing ldquo Why should we do it

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Mistake -Proof Approach

List of Problems ndash Select

Form a Team

Brain-writing at Gemba

Why-Why Analysis leads to root cause

Kaizens on root cause

Establish Activities to maintain standard

Work Towards Low Cost Automation

Plan

Do

Check

Act

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What - A tool that helps to eliminate inadvertent human errors

- Helps to build quality in product at sourceWhere - Is helpful in highly repetitive situations High Productivity areas

may lead to mistakes sometimes

(Unintentional errors - Forgetting Ignoring Inattentiveness )

eg - Complex processes Repetitive assembly mistakes

When - Sourced from Safety issues Driven by known quality problems

Customer complaints RFT P Tags BIS issues FMEA

Why - Builds quality in the product waste elimination

How - Pokayoke is often LOW COST or NO COST solutions

POKA YOKE helps in case of unintentional mistakes and not mischiefs

Pokayoke - Fail safe in 5 W 1 H

Kaizen

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Welcome

Learning Session on

Model Machine

Objectives

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j

To Learn

bull Concept of Model Machine - P - PC Balance

bull Why Model Machine

bull 8 Major losses

bull OEE Calculations

bull How to Develop

bull Documentation

bull Examples

Wh M d l M hi

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Why Model MachineProfit = Sales ndash Cost

Profit = Sales ndash Mfg Cost

To reduce manufacturing cost needs optimumutilization of all assets ie resources

Measurement of effective utilization of all

resources is Overall Equipment Efficiency( OEE)

(09 09 09 = 73)

Why Model Machine

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Profit = Total sales ndash Total cost

Why Model Machine

Profit = Selling Prices - Input Mfg cost up

( competition ) ( Increasing cost of input resources )

To maintain improve profit hellip Solution is ldquo Reduce Mfg costrdquo

Improve Asset Utilization

Improve Overall Equipment ldquoEfficiencyrdquo (OEE)

OEE = Availability x Performance x Quality

Our goal should be to improve OEE gt 85

world class Benchmark = 95

Why Model Machine

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Why Model Machine

If

OEE = Mfg Cost

Mfg cost = profit

eg Consider a MC of cost Rs 5 cr

Utilization in Japan china ndash OEE 90Utilization in India ndash OEE 45 (45 7080)So product cost in India will be 2 times than the cost in

china

Key is improve to OEEAchievement on 8 Model Machines - OEE improved

from 45 to 75 85

P - PC Balance

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P PC Balance

Production Vs Production Capability

Engine+Parts Equipment + MC + Test Bed

Model Machine

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Factory Within Factory is BU

BU Within BU is MODEL MC

WHY Model MC

To deliver -Cost Effective Product to ldquoInternalrdquo amp Externalrdquo Customer

Zero - Breakdown

By Achieving - Zero - Accident

Zero - Defect

To Success is ldquoImprove OEErdquo (Overall Equipment Effectiveness)

5 - M‟S OF PRODUCTION

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bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

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NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

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Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

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Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

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What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

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Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

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TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

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INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

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TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

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What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

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TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

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TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

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Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

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US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

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g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

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TPSLean Principles

Click to proceed

TPSLean Principles

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TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

842019 Presentation on TPS -JIT Kanban

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Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

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Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

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Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

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Principle 2 Takt time

Takt Time

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bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

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Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

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Principle 3

Non-value added activities

What are Non-value added activities

842019 Presentation on TPS -JIT Kanban

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bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6893

1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

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bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

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bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

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Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

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bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

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bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

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bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

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ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

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bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

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Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

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Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

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bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

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bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

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bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

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Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

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PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

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bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

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bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

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HR

bull Improvement in Health awareness ( check up Lectures

De addiction campsbull Bench marking visits to other factories

bull Recognition policy

bull Participation in intra company competition

bull Safety poster competition

bull ldquoOrdquo tag campaign for safety

bull ATM counter bank facility at gate

bull Prize distribution by Union leaders

bull Letter to family for good work

bull Proper lighting and ventilation at workplace

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bull Poka-yoke (pronounced POH-kah YOH-kayldquo ) bull Japanese words poka (inadvertent mistake) and yoke

(prevent) was invented by Shigeo Shingo in the 1960s

bull The essential idea of poka-yoke is to design your process so

that mistakes are impossible or at least easily detected and

corrected

About Shigeo Shingohelliphelliphellip

bull A leading proponent of statistical process control

bull Became frustrated with the statistical approach

bull Statistical sampling implies that some products to gountested with the result that some rate of defects would

always reach the customer

About POKA YOKEhelliphelliphelliphellip

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bull Shingo was communicated of a problem inldquoYamada Electric plantrdquo in 1961

bull A small switch with two push-buttons supported by two

springs occasionally the worker assembling the switch would

forget to insert a spring under each push-button

bull Sometimes the error would not be discovered until the unitreached a customer

bull Factory would have to dispatch an engineer to the customer

site to disassemble the switch insert the missing spring and

re-assemble the switch

bull This problem of the missing spring was both costly andembarrassing

bull Despite everyones best intentions the missing spring problem

would eventually re-appear

Birth of POKA YOKE helliphelliphellip

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Pokayoke ActionError Has

Occurred

Detection

Is Made

Defect

Is

Signaled Control

Feedback

GivenProcess

Is

Stopped

POKA YOKE Action

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bull A system for organising work that prevents the error

bull Excludes any risk of error even by the beginner

bull Allows everyone to operate without mistake

bull Prevents error that are about to occur

bull Inspection time will be minimised

What is ldquoMistake Proofing ldquo Why should we do it

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Mistake -Proof Approach

List of Problems ndash Select

Form a Team

Brain-writing at Gemba

Why-Why Analysis leads to root cause

Kaizens on root cause

Establish Activities to maintain standard

Work Towards Low Cost Automation

Plan

Do

Check

Act

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What - A tool that helps to eliminate inadvertent human errors

- Helps to build quality in product at sourceWhere - Is helpful in highly repetitive situations High Productivity areas

may lead to mistakes sometimes

(Unintentional errors - Forgetting Ignoring Inattentiveness )

eg - Complex processes Repetitive assembly mistakes

When - Sourced from Safety issues Driven by known quality problems

Customer complaints RFT P Tags BIS issues FMEA

Why - Builds quality in the product waste elimination

How - Pokayoke is often LOW COST or NO COST solutions

POKA YOKE helps in case of unintentional mistakes and not mischiefs

Pokayoke - Fail safe in 5 W 1 H

Kaizen

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Welcome

Learning Session on

Model Machine

Objectives

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j

To Learn

bull Concept of Model Machine - P - PC Balance

bull Why Model Machine

bull 8 Major losses

bull OEE Calculations

bull How to Develop

bull Documentation

bull Examples

Wh M d l M hi

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Why Model MachineProfit = Sales ndash Cost

Profit = Sales ndash Mfg Cost

To reduce manufacturing cost needs optimumutilization of all assets ie resources

Measurement of effective utilization of all

resources is Overall Equipment Efficiency( OEE)

(09 09 09 = 73)

Why Model Machine

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Profit = Total sales ndash Total cost

Why Model Machine

Profit = Selling Prices - Input Mfg cost up

( competition ) ( Increasing cost of input resources )

To maintain improve profit hellip Solution is ldquo Reduce Mfg costrdquo

Improve Asset Utilization

Improve Overall Equipment ldquoEfficiencyrdquo (OEE)

OEE = Availability x Performance x Quality

Our goal should be to improve OEE gt 85

world class Benchmark = 95

Why Model Machine

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Why Model Machine

If

OEE = Mfg Cost

Mfg cost = profit

eg Consider a MC of cost Rs 5 cr

Utilization in Japan china ndash OEE 90Utilization in India ndash OEE 45 (45 7080)So product cost in India will be 2 times than the cost in

china

Key is improve to OEEAchievement on 8 Model Machines - OEE improved

from 45 to 75 85

P - PC Balance

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P PC Balance

Production Vs Production Capability

Engine+Parts Equipment + MC + Test Bed

Model Machine

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Factory Within Factory is BU

BU Within BU is MODEL MC

WHY Model MC

To deliver -Cost Effective Product to ldquoInternalrdquo amp Externalrdquo Customer

Zero - Breakdown

By Achieving - Zero - Accident

Zero - Defect

To Success is ldquoImprove OEErdquo (Overall Equipment Effectiveness)

5 - M‟S OF PRODUCTION

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bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

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NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

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Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

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Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

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What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

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Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

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TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

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INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

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TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

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What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

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TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

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TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

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Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

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US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

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g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

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TPSLean Principles

Click to proceed

TPSLean Principles

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TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

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Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

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Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

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Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

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Principle 2 Takt time

Takt Time

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bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

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Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

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Principle 3

Non-value added activities

What are Non-value added activities

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bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

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1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

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bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

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bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

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Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

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bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

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bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

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bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

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bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

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Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

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bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

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Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

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bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

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ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

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bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

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Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

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Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

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bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

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bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

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bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

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Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

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PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

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bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

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bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

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bull Poka-yoke (pronounced POH-kah YOH-kayldquo ) bull Japanese words poka (inadvertent mistake) and yoke

(prevent) was invented by Shigeo Shingo in the 1960s

bull The essential idea of poka-yoke is to design your process so

that mistakes are impossible or at least easily detected and

corrected

About Shigeo Shingohelliphelliphellip

bull A leading proponent of statistical process control

bull Became frustrated with the statistical approach

bull Statistical sampling implies that some products to gountested with the result that some rate of defects would

always reach the customer

About POKA YOKEhelliphelliphelliphellip

842019 Presentation on TPS -JIT Kanban

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bull Shingo was communicated of a problem inldquoYamada Electric plantrdquo in 1961

bull A small switch with two push-buttons supported by two

springs occasionally the worker assembling the switch would

forget to insert a spring under each push-button

bull Sometimes the error would not be discovered until the unitreached a customer

bull Factory would have to dispatch an engineer to the customer

site to disassemble the switch insert the missing spring and

re-assemble the switch

bull This problem of the missing spring was both costly andembarrassing

bull Despite everyones best intentions the missing spring problem

would eventually re-appear

Birth of POKA YOKE helliphelliphellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3193

Pokayoke ActionError Has

Occurred

Detection

Is Made

Defect

Is

Signaled Control

Feedback

GivenProcess

Is

Stopped

POKA YOKE Action

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3293

bull A system for organising work that prevents the error

bull Excludes any risk of error even by the beginner

bull Allows everyone to operate without mistake

bull Prevents error that are about to occur

bull Inspection time will be minimised

What is ldquoMistake Proofing ldquo Why should we do it

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3393

Mistake -Proof Approach

List of Problems ndash Select

Form a Team

Brain-writing at Gemba

Why-Why Analysis leads to root cause

Kaizens on root cause

Establish Activities to maintain standard

Work Towards Low Cost Automation

Plan

Do

Check

Act

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3493

What - A tool that helps to eliminate inadvertent human errors

- Helps to build quality in product at sourceWhere - Is helpful in highly repetitive situations High Productivity areas

may lead to mistakes sometimes

(Unintentional errors - Forgetting Ignoring Inattentiveness )

eg - Complex processes Repetitive assembly mistakes

When - Sourced from Safety issues Driven by known quality problems

Customer complaints RFT P Tags BIS issues FMEA

Why - Builds quality in the product waste elimination

How - Pokayoke is often LOW COST or NO COST solutions

POKA YOKE helps in case of unintentional mistakes and not mischiefs

Pokayoke - Fail safe in 5 W 1 H

Kaizen

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3593

Welcome

Learning Session on

Model Machine

Objectives

842019 Presentation on TPS -JIT Kanban

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j

To Learn

bull Concept of Model Machine - P - PC Balance

bull Why Model Machine

bull 8 Major losses

bull OEE Calculations

bull How to Develop

bull Documentation

bull Examples

Wh M d l M hi

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3793

Why Model MachineProfit = Sales ndash Cost

Profit = Sales ndash Mfg Cost

To reduce manufacturing cost needs optimumutilization of all assets ie resources

Measurement of effective utilization of all

resources is Overall Equipment Efficiency( OEE)

(09 09 09 = 73)

Why Model Machine

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3893

Profit = Total sales ndash Total cost

Why Model Machine

Profit = Selling Prices - Input Mfg cost up

( competition ) ( Increasing cost of input resources )

To maintain improve profit hellip Solution is ldquo Reduce Mfg costrdquo

Improve Asset Utilization

Improve Overall Equipment ldquoEfficiencyrdquo (OEE)

OEE = Availability x Performance x Quality

Our goal should be to improve OEE gt 85

world class Benchmark = 95

Why Model Machine

842019 Presentation on TPS -JIT Kanban

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Why Model Machine

If

OEE = Mfg Cost

Mfg cost = profit

eg Consider a MC of cost Rs 5 cr

Utilization in Japan china ndash OEE 90Utilization in India ndash OEE 45 (45 7080)So product cost in India will be 2 times than the cost in

china

Key is improve to OEEAchievement on 8 Model Machines - OEE improved

from 45 to 75 85

P - PC Balance

842019 Presentation on TPS -JIT Kanban

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P PC Balance

Production Vs Production Capability

Engine+Parts Equipment + MC + Test Bed

Model Machine

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4193

Factory Within Factory is BU

BU Within BU is MODEL MC

WHY Model MC

To deliver -Cost Effective Product to ldquoInternalrdquo amp Externalrdquo Customer

Zero - Breakdown

By Achieving - Zero - Accident

Zero - Defect

To Success is ldquoImprove OEErdquo (Overall Equipment Effectiveness)

5 - M‟S OF PRODUCTION

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4293

bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4393

NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4493

Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

842019 Presentation on TPS -JIT Kanban

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Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

842019 Presentation on TPS -JIT Kanban

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What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4793

Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

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TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4993

INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

842019 Presentation on TPS -JIT Kanban

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TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

842019 Presentation on TPS -JIT Kanban

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What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

842019 Presentation on TPS -JIT Kanban

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TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

842019 Presentation on TPS -JIT Kanban

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TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

842019 Presentation on TPS -JIT Kanban

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Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5593

US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5693

g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

842019 Presentation on TPS -JIT Kanban

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TPSLean Principles

Click to proceed

TPSLean Principles

842019 Presentation on TPS -JIT Kanban

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TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

842019 Presentation on TPS -JIT Kanban

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Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

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Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6193

Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

842019 Presentation on TPS -JIT Kanban

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842019 Presentation on TPS -JIT Kanban

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Principle 2 Takt time

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6493

bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6593

Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

842019 Presentation on TPS -JIT Kanban

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Principle 3

Non-value added activities

What are Non-value added activities

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6793

bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6893

1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

842019 Presentation on TPS -JIT Kanban

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bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7093

bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

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Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

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bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

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bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

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ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

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842019 Presentation on TPS -JIT Kanban

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bull Shingo was communicated of a problem inldquoYamada Electric plantrdquo in 1961

bull A small switch with two push-buttons supported by two

springs occasionally the worker assembling the switch would

forget to insert a spring under each push-button

bull Sometimes the error would not be discovered until the unitreached a customer

bull Factory would have to dispatch an engineer to the customer

site to disassemble the switch insert the missing spring and

re-assemble the switch

bull This problem of the missing spring was both costly andembarrassing

bull Despite everyones best intentions the missing spring problem

would eventually re-appear

Birth of POKA YOKE helliphelliphellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3193

Pokayoke ActionError Has

Occurred

Detection

Is Made

Defect

Is

Signaled Control

Feedback

GivenProcess

Is

Stopped

POKA YOKE Action

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3293

bull A system for organising work that prevents the error

bull Excludes any risk of error even by the beginner

bull Allows everyone to operate without mistake

bull Prevents error that are about to occur

bull Inspection time will be minimised

What is ldquoMistake Proofing ldquo Why should we do it

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3393

Mistake -Proof Approach

List of Problems ndash Select

Form a Team

Brain-writing at Gemba

Why-Why Analysis leads to root cause

Kaizens on root cause

Establish Activities to maintain standard

Work Towards Low Cost Automation

Plan

Do

Check

Act

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3493

What - A tool that helps to eliminate inadvertent human errors

- Helps to build quality in product at sourceWhere - Is helpful in highly repetitive situations High Productivity areas

may lead to mistakes sometimes

(Unintentional errors - Forgetting Ignoring Inattentiveness )

eg - Complex processes Repetitive assembly mistakes

When - Sourced from Safety issues Driven by known quality problems

Customer complaints RFT P Tags BIS issues FMEA

Why - Builds quality in the product waste elimination

How - Pokayoke is often LOW COST or NO COST solutions

POKA YOKE helps in case of unintentional mistakes and not mischiefs

Pokayoke - Fail safe in 5 W 1 H

Kaizen

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3593

Welcome

Learning Session on

Model Machine

Objectives

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3693

j

To Learn

bull Concept of Model Machine - P - PC Balance

bull Why Model Machine

bull 8 Major losses

bull OEE Calculations

bull How to Develop

bull Documentation

bull Examples

Wh M d l M hi

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3793

Why Model MachineProfit = Sales ndash Cost

Profit = Sales ndash Mfg Cost

To reduce manufacturing cost needs optimumutilization of all assets ie resources

Measurement of effective utilization of all

resources is Overall Equipment Efficiency( OEE)

(09 09 09 = 73)

Why Model Machine

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3893

Profit = Total sales ndash Total cost

Why Model Machine

Profit = Selling Prices - Input Mfg cost up

( competition ) ( Increasing cost of input resources )

To maintain improve profit hellip Solution is ldquo Reduce Mfg costrdquo

Improve Asset Utilization

Improve Overall Equipment ldquoEfficiencyrdquo (OEE)

OEE = Availability x Performance x Quality

Our goal should be to improve OEE gt 85

world class Benchmark = 95

Why Model Machine

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3993

Why Model Machine

If

OEE = Mfg Cost

Mfg cost = profit

eg Consider a MC of cost Rs 5 cr

Utilization in Japan china ndash OEE 90Utilization in India ndash OEE 45 (45 7080)So product cost in India will be 2 times than the cost in

china

Key is improve to OEEAchievement on 8 Model Machines - OEE improved

from 45 to 75 85

P - PC Balance

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4093

P PC Balance

Production Vs Production Capability

Engine+Parts Equipment + MC + Test Bed

Model Machine

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4193

Factory Within Factory is BU

BU Within BU is MODEL MC

WHY Model MC

To deliver -Cost Effective Product to ldquoInternalrdquo amp Externalrdquo Customer

Zero - Breakdown

By Achieving - Zero - Accident

Zero - Defect

To Success is ldquoImprove OEErdquo (Overall Equipment Effectiveness)

5 - M‟S OF PRODUCTION

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4293

bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4393

NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4493

Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4593

Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4693

What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4793

Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4893

TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4993

INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5093

TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5193

What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5293

TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5393

TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5493

Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5593

US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5693

g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5793

TPSLean Principles

Click to proceed

TPSLean Principles

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5893

TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5993

Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6093

Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6193

Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6293

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6393

Principle 2 Takt time

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6493

bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6593

Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6693

Principle 3

Non-value added activities

What are Non-value added activities

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6793

bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6893

1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6993

bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7093

bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7193

Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

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Pokayoke ActionError Has

Occurred

Detection

Is Made

Defect

Is

Signaled Control

Feedback

GivenProcess

Is

Stopped

POKA YOKE Action

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3293

bull A system for organising work that prevents the error

bull Excludes any risk of error even by the beginner

bull Allows everyone to operate without mistake

bull Prevents error that are about to occur

bull Inspection time will be minimised

What is ldquoMistake Proofing ldquo Why should we do it

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3393

Mistake -Proof Approach

List of Problems ndash Select

Form a Team

Brain-writing at Gemba

Why-Why Analysis leads to root cause

Kaizens on root cause

Establish Activities to maintain standard

Work Towards Low Cost Automation

Plan

Do

Check

Act

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3493

What - A tool that helps to eliminate inadvertent human errors

- Helps to build quality in product at sourceWhere - Is helpful in highly repetitive situations High Productivity areas

may lead to mistakes sometimes

(Unintentional errors - Forgetting Ignoring Inattentiveness )

eg - Complex processes Repetitive assembly mistakes

When - Sourced from Safety issues Driven by known quality problems

Customer complaints RFT P Tags BIS issues FMEA

Why - Builds quality in the product waste elimination

How - Pokayoke is often LOW COST or NO COST solutions

POKA YOKE helps in case of unintentional mistakes and not mischiefs

Pokayoke - Fail safe in 5 W 1 H

Kaizen

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3593

Welcome

Learning Session on

Model Machine

Objectives

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3693

j

To Learn

bull Concept of Model Machine - P - PC Balance

bull Why Model Machine

bull 8 Major losses

bull OEE Calculations

bull How to Develop

bull Documentation

bull Examples

Wh M d l M hi

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3793

Why Model MachineProfit = Sales ndash Cost

Profit = Sales ndash Mfg Cost

To reduce manufacturing cost needs optimumutilization of all assets ie resources

Measurement of effective utilization of all

resources is Overall Equipment Efficiency( OEE)

(09 09 09 = 73)

Why Model Machine

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3893

Profit = Total sales ndash Total cost

Why Model Machine

Profit = Selling Prices - Input Mfg cost up

( competition ) ( Increasing cost of input resources )

To maintain improve profit hellip Solution is ldquo Reduce Mfg costrdquo

Improve Asset Utilization

Improve Overall Equipment ldquoEfficiencyrdquo (OEE)

OEE = Availability x Performance x Quality

Our goal should be to improve OEE gt 85

world class Benchmark = 95

Why Model Machine

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3993

Why Model Machine

If

OEE = Mfg Cost

Mfg cost = profit

eg Consider a MC of cost Rs 5 cr

Utilization in Japan china ndash OEE 90Utilization in India ndash OEE 45 (45 7080)So product cost in India will be 2 times than the cost in

china

Key is improve to OEEAchievement on 8 Model Machines - OEE improved

from 45 to 75 85

P - PC Balance

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4093

P PC Balance

Production Vs Production Capability

Engine+Parts Equipment + MC + Test Bed

Model Machine

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4193

Factory Within Factory is BU

BU Within BU is MODEL MC

WHY Model MC

To deliver -Cost Effective Product to ldquoInternalrdquo amp Externalrdquo Customer

Zero - Breakdown

By Achieving - Zero - Accident

Zero - Defect

To Success is ldquoImprove OEErdquo (Overall Equipment Effectiveness)

5 - M‟S OF PRODUCTION

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4293

bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4393

NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4493

Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4593

Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4693

What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4793

Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4893

TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4993

INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5093

TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5193

What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5293

TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5393

TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5493

Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5593

US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5693

g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5793

TPSLean Principles

Click to proceed

TPSLean Principles

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5893

TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5993

Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6093

Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6193

Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6293

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6393

Principle 2 Takt time

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6493

bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

842019 Presentation on TPS -JIT Kanban

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Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6693

Principle 3

Non-value added activities

What are Non-value added activities

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6793

bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6893

1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6993

bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

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bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7193

Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

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ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

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Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

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Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

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PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

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bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

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bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

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842019 Presentation on TPS -JIT Kanban

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bull A system for organising work that prevents the error

bull Excludes any risk of error even by the beginner

bull Allows everyone to operate without mistake

bull Prevents error that are about to occur

bull Inspection time will be minimised

What is ldquoMistake Proofing ldquo Why should we do it

842019 Presentation on TPS -JIT Kanban

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Mistake -Proof Approach

List of Problems ndash Select

Form a Team

Brain-writing at Gemba

Why-Why Analysis leads to root cause

Kaizens on root cause

Establish Activities to maintain standard

Work Towards Low Cost Automation

Plan

Do

Check

Act

842019 Presentation on TPS -JIT Kanban

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What - A tool that helps to eliminate inadvertent human errors

- Helps to build quality in product at sourceWhere - Is helpful in highly repetitive situations High Productivity areas

may lead to mistakes sometimes

(Unintentional errors - Forgetting Ignoring Inattentiveness )

eg - Complex processes Repetitive assembly mistakes

When - Sourced from Safety issues Driven by known quality problems

Customer complaints RFT P Tags BIS issues FMEA

Why - Builds quality in the product waste elimination

How - Pokayoke is often LOW COST or NO COST solutions

POKA YOKE helps in case of unintentional mistakes and not mischiefs

Pokayoke - Fail safe in 5 W 1 H

Kaizen

842019 Presentation on TPS -JIT Kanban

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Welcome

Learning Session on

Model Machine

Objectives

842019 Presentation on TPS -JIT Kanban

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j

To Learn

bull Concept of Model Machine - P - PC Balance

bull Why Model Machine

bull 8 Major losses

bull OEE Calculations

bull How to Develop

bull Documentation

bull Examples

Wh M d l M hi

842019 Presentation on TPS -JIT Kanban

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Why Model MachineProfit = Sales ndash Cost

Profit = Sales ndash Mfg Cost

To reduce manufacturing cost needs optimumutilization of all assets ie resources

Measurement of effective utilization of all

resources is Overall Equipment Efficiency( OEE)

(09 09 09 = 73)

Why Model Machine

842019 Presentation on TPS -JIT Kanban

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Profit = Total sales ndash Total cost

Why Model Machine

Profit = Selling Prices - Input Mfg cost up

( competition ) ( Increasing cost of input resources )

To maintain improve profit hellip Solution is ldquo Reduce Mfg costrdquo

Improve Asset Utilization

Improve Overall Equipment ldquoEfficiencyrdquo (OEE)

OEE = Availability x Performance x Quality

Our goal should be to improve OEE gt 85

world class Benchmark = 95

Why Model Machine

842019 Presentation on TPS -JIT Kanban

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Why Model Machine

If

OEE = Mfg Cost

Mfg cost = profit

eg Consider a MC of cost Rs 5 cr

Utilization in Japan china ndash OEE 90Utilization in India ndash OEE 45 (45 7080)So product cost in India will be 2 times than the cost in

china

Key is improve to OEEAchievement on 8 Model Machines - OEE improved

from 45 to 75 85

P - PC Balance

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P PC Balance

Production Vs Production Capability

Engine+Parts Equipment + MC + Test Bed

Model Machine

842019 Presentation on TPS -JIT Kanban

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Factory Within Factory is BU

BU Within BU is MODEL MC

WHY Model MC

To deliver -Cost Effective Product to ldquoInternalrdquo amp Externalrdquo Customer

Zero - Breakdown

By Achieving - Zero - Accident

Zero - Defect

To Success is ldquoImprove OEErdquo (Overall Equipment Effectiveness)

5 - M‟S OF PRODUCTION

842019 Presentation on TPS -JIT Kanban

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bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

842019 Presentation on TPS -JIT Kanban

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NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

842019 Presentation on TPS -JIT Kanban

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Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

842019 Presentation on TPS -JIT Kanban

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Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

842019 Presentation on TPS -JIT Kanban

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What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

842019 Presentation on TPS -JIT Kanban

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Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

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TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

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INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

842019 Presentation on TPS -JIT Kanban

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TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

842019 Presentation on TPS -JIT Kanban

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What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

842019 Presentation on TPS -JIT Kanban

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TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

842019 Presentation on TPS -JIT Kanban

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TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

842019 Presentation on TPS -JIT Kanban

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Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5593

US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

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g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

842019 Presentation on TPS -JIT Kanban

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TPSLean Principles

Click to proceed

TPSLean Principles

842019 Presentation on TPS -JIT Kanban

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TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

842019 Presentation on TPS -JIT Kanban

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Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

842019 Presentation on TPS -JIT Kanban

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Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6193

Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

842019 Presentation on TPS -JIT Kanban

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842019 Presentation on TPS -JIT Kanban

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Principle 2 Takt time

Takt Time

842019 Presentation on TPS -JIT Kanban

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bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6593

Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6693

Principle 3

Non-value added activities

What are Non-value added activities

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6793

bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6893

1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6993

bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7093

bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7193

Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3393

Mistake -Proof Approach

List of Problems ndash Select

Form a Team

Brain-writing at Gemba

Why-Why Analysis leads to root cause

Kaizens on root cause

Establish Activities to maintain standard

Work Towards Low Cost Automation

Plan

Do

Check

Act

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3493

What - A tool that helps to eliminate inadvertent human errors

- Helps to build quality in product at sourceWhere - Is helpful in highly repetitive situations High Productivity areas

may lead to mistakes sometimes

(Unintentional errors - Forgetting Ignoring Inattentiveness )

eg - Complex processes Repetitive assembly mistakes

When - Sourced from Safety issues Driven by known quality problems

Customer complaints RFT P Tags BIS issues FMEA

Why - Builds quality in the product waste elimination

How - Pokayoke is often LOW COST or NO COST solutions

POKA YOKE helps in case of unintentional mistakes and not mischiefs

Pokayoke - Fail safe in 5 W 1 H

Kaizen

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3593

Welcome

Learning Session on

Model Machine

Objectives

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3693

j

To Learn

bull Concept of Model Machine - P - PC Balance

bull Why Model Machine

bull 8 Major losses

bull OEE Calculations

bull How to Develop

bull Documentation

bull Examples

Wh M d l M hi

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3793

Why Model MachineProfit = Sales ndash Cost

Profit = Sales ndash Mfg Cost

To reduce manufacturing cost needs optimumutilization of all assets ie resources

Measurement of effective utilization of all

resources is Overall Equipment Efficiency( OEE)

(09 09 09 = 73)

Why Model Machine

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3893

Profit = Total sales ndash Total cost

Why Model Machine

Profit = Selling Prices - Input Mfg cost up

( competition ) ( Increasing cost of input resources )

To maintain improve profit hellip Solution is ldquo Reduce Mfg costrdquo

Improve Asset Utilization

Improve Overall Equipment ldquoEfficiencyrdquo (OEE)

OEE = Availability x Performance x Quality

Our goal should be to improve OEE gt 85

world class Benchmark = 95

Why Model Machine

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3993

Why Model Machine

If

OEE = Mfg Cost

Mfg cost = profit

eg Consider a MC of cost Rs 5 cr

Utilization in Japan china ndash OEE 90Utilization in India ndash OEE 45 (45 7080)So product cost in India will be 2 times than the cost in

china

Key is improve to OEEAchievement on 8 Model Machines - OEE improved

from 45 to 75 85

P - PC Balance

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4093

P PC Balance

Production Vs Production Capability

Engine+Parts Equipment + MC + Test Bed

Model Machine

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4193

Factory Within Factory is BU

BU Within BU is MODEL MC

WHY Model MC

To deliver -Cost Effective Product to ldquoInternalrdquo amp Externalrdquo Customer

Zero - Breakdown

By Achieving - Zero - Accident

Zero - Defect

To Success is ldquoImprove OEErdquo (Overall Equipment Effectiveness)

5 - M‟S OF PRODUCTION

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4293

bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4393

NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4493

Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4593

Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4693

What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4793

Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4893

TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4993

INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

842019 Presentation on TPS -JIT Kanban

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TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

842019 Presentation on TPS -JIT Kanban

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What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5293

TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

842019 Presentation on TPS -JIT Kanban

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TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5493

Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5593

US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5693

g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

842019 Presentation on TPS -JIT Kanban

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TPSLean Principles

Click to proceed

TPSLean Principles

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5893

TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5993

Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

842019 Presentation on TPS -JIT Kanban

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Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6193

Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

842019 Presentation on TPS -JIT Kanban

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842019 Presentation on TPS -JIT Kanban

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Principle 2 Takt time

Takt Time

842019 Presentation on TPS -JIT Kanban

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bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6593

Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

842019 Presentation on TPS -JIT Kanban

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Principle 3

Non-value added activities

What are Non-value added activities

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6793

bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6893

1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

842019 Presentation on TPS -JIT Kanban

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bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7093

bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7193

Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3493

What - A tool that helps to eliminate inadvertent human errors

- Helps to build quality in product at sourceWhere - Is helpful in highly repetitive situations High Productivity areas

may lead to mistakes sometimes

(Unintentional errors - Forgetting Ignoring Inattentiveness )

eg - Complex processes Repetitive assembly mistakes

When - Sourced from Safety issues Driven by known quality problems

Customer complaints RFT P Tags BIS issues FMEA

Why - Builds quality in the product waste elimination

How - Pokayoke is often LOW COST or NO COST solutions

POKA YOKE helps in case of unintentional mistakes and not mischiefs

Pokayoke - Fail safe in 5 W 1 H

Kaizen

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3593

Welcome

Learning Session on

Model Machine

Objectives

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3693

j

To Learn

bull Concept of Model Machine - P - PC Balance

bull Why Model Machine

bull 8 Major losses

bull OEE Calculations

bull How to Develop

bull Documentation

bull Examples

Wh M d l M hi

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3793

Why Model MachineProfit = Sales ndash Cost

Profit = Sales ndash Mfg Cost

To reduce manufacturing cost needs optimumutilization of all assets ie resources

Measurement of effective utilization of all

resources is Overall Equipment Efficiency( OEE)

(09 09 09 = 73)

Why Model Machine

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3893

Profit = Total sales ndash Total cost

Why Model Machine

Profit = Selling Prices - Input Mfg cost up

( competition ) ( Increasing cost of input resources )

To maintain improve profit hellip Solution is ldquo Reduce Mfg costrdquo

Improve Asset Utilization

Improve Overall Equipment ldquoEfficiencyrdquo (OEE)

OEE = Availability x Performance x Quality

Our goal should be to improve OEE gt 85

world class Benchmark = 95

Why Model Machine

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3993

Why Model Machine

If

OEE = Mfg Cost

Mfg cost = profit

eg Consider a MC of cost Rs 5 cr

Utilization in Japan china ndash OEE 90Utilization in India ndash OEE 45 (45 7080)So product cost in India will be 2 times than the cost in

china

Key is improve to OEEAchievement on 8 Model Machines - OEE improved

from 45 to 75 85

P - PC Balance

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4093

P PC Balance

Production Vs Production Capability

Engine+Parts Equipment + MC + Test Bed

Model Machine

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4193

Factory Within Factory is BU

BU Within BU is MODEL MC

WHY Model MC

To deliver -Cost Effective Product to ldquoInternalrdquo amp Externalrdquo Customer

Zero - Breakdown

By Achieving - Zero - Accident

Zero - Defect

To Success is ldquoImprove OEErdquo (Overall Equipment Effectiveness)

5 - M‟S OF PRODUCTION

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4293

bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4393

NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4493

Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4593

Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4693

What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4793

Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4893

TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4993

INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5093

TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5193

What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5293

TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5393

TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5493

Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5593

US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5693

g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5793

TPSLean Principles

Click to proceed

TPSLean Principles

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5893

TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5993

Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6093

Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6193

Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6293

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6393

Principle 2 Takt time

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6493

bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6593

Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6693

Principle 3

Non-value added activities

What are Non-value added activities

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6793

bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6893

1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6993

bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7093

bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7193

Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

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bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

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ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

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bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

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Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

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bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

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bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

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Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

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PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

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bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

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bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

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842019 Presentation on TPS -JIT Kanban

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Welcome

Learning Session on

Model Machine

Objectives

842019 Presentation on TPS -JIT Kanban

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j

To Learn

bull Concept of Model Machine - P - PC Balance

bull Why Model Machine

bull 8 Major losses

bull OEE Calculations

bull How to Develop

bull Documentation

bull Examples

Wh M d l M hi

842019 Presentation on TPS -JIT Kanban

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Why Model MachineProfit = Sales ndash Cost

Profit = Sales ndash Mfg Cost

To reduce manufacturing cost needs optimumutilization of all assets ie resources

Measurement of effective utilization of all

resources is Overall Equipment Efficiency( OEE)

(09 09 09 = 73)

Why Model Machine

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3893

Profit = Total sales ndash Total cost

Why Model Machine

Profit = Selling Prices - Input Mfg cost up

( competition ) ( Increasing cost of input resources )

To maintain improve profit hellip Solution is ldquo Reduce Mfg costrdquo

Improve Asset Utilization

Improve Overall Equipment ldquoEfficiencyrdquo (OEE)

OEE = Availability x Performance x Quality

Our goal should be to improve OEE gt 85

world class Benchmark = 95

Why Model Machine

842019 Presentation on TPS -JIT Kanban

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Why Model Machine

If

OEE = Mfg Cost

Mfg cost = profit

eg Consider a MC of cost Rs 5 cr

Utilization in Japan china ndash OEE 90Utilization in India ndash OEE 45 (45 7080)So product cost in India will be 2 times than the cost in

china

Key is improve to OEEAchievement on 8 Model Machines - OEE improved

from 45 to 75 85

P - PC Balance

842019 Presentation on TPS -JIT Kanban

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P PC Balance

Production Vs Production Capability

Engine+Parts Equipment + MC + Test Bed

Model Machine

842019 Presentation on TPS -JIT Kanban

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Factory Within Factory is BU

BU Within BU is MODEL MC

WHY Model MC

To deliver -Cost Effective Product to ldquoInternalrdquo amp Externalrdquo Customer

Zero - Breakdown

By Achieving - Zero - Accident

Zero - Defect

To Success is ldquoImprove OEErdquo (Overall Equipment Effectiveness)

5 - M‟S OF PRODUCTION

842019 Presentation on TPS -JIT Kanban

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bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4393

NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4493

Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

842019 Presentation on TPS -JIT Kanban

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Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4693

What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4793

Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4893

TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4993

INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5093

TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5193

What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5293

TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5393

TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5493

Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5593

US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5693

g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5793

TPSLean Principles

Click to proceed

TPSLean Principles

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5893

TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5993

Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6093

Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6193

Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6293

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6393

Principle 2 Takt time

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6493

bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6593

Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6693

Principle 3

Non-value added activities

What are Non-value added activities

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6793

bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6893

1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6993

bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7093

bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7193

Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

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Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3693

j

To Learn

bull Concept of Model Machine - P - PC Balance

bull Why Model Machine

bull 8 Major losses

bull OEE Calculations

bull How to Develop

bull Documentation

bull Examples

Wh M d l M hi

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3793

Why Model MachineProfit = Sales ndash Cost

Profit = Sales ndash Mfg Cost

To reduce manufacturing cost needs optimumutilization of all assets ie resources

Measurement of effective utilization of all

resources is Overall Equipment Efficiency( OEE)

(09 09 09 = 73)

Why Model Machine

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3893

Profit = Total sales ndash Total cost

Why Model Machine

Profit = Selling Prices - Input Mfg cost up

( competition ) ( Increasing cost of input resources )

To maintain improve profit hellip Solution is ldquo Reduce Mfg costrdquo

Improve Asset Utilization

Improve Overall Equipment ldquoEfficiencyrdquo (OEE)

OEE = Availability x Performance x Quality

Our goal should be to improve OEE gt 85

world class Benchmark = 95

Why Model Machine

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3993

Why Model Machine

If

OEE = Mfg Cost

Mfg cost = profit

eg Consider a MC of cost Rs 5 cr

Utilization in Japan china ndash OEE 90Utilization in India ndash OEE 45 (45 7080)So product cost in India will be 2 times than the cost in

china

Key is improve to OEEAchievement on 8 Model Machines - OEE improved

from 45 to 75 85

P - PC Balance

842019 Presentation on TPS -JIT Kanban

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P PC Balance

Production Vs Production Capability

Engine+Parts Equipment + MC + Test Bed

Model Machine

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4193

Factory Within Factory is BU

BU Within BU is MODEL MC

WHY Model MC

To deliver -Cost Effective Product to ldquoInternalrdquo amp Externalrdquo Customer

Zero - Breakdown

By Achieving - Zero - Accident

Zero - Defect

To Success is ldquoImprove OEErdquo (Overall Equipment Effectiveness)

5 - M‟S OF PRODUCTION

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4293

bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4393

NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4493

Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4593

Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4693

What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

842019 Presentation on TPS -JIT Kanban

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Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

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TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4993

INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

842019 Presentation on TPS -JIT Kanban

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TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

842019 Presentation on TPS -JIT Kanban

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What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5293

TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5393

TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5493

Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5593

US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5693

g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

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TPSLean Principles

Click to proceed

TPSLean Principles

842019 Presentation on TPS -JIT Kanban

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TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

842019 Presentation on TPS -JIT Kanban

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Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

842019 Presentation on TPS -JIT Kanban

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Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6193

Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

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842019 Presentation on TPS -JIT Kanban

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Principle 2 Takt time

Takt Time

842019 Presentation on TPS -JIT Kanban

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bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6593

Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

842019 Presentation on TPS -JIT Kanban

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Principle 3

Non-value added activities

What are Non-value added activities

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6793

bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6893

1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

842019 Presentation on TPS -JIT Kanban

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bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7093

bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7193

Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3793

Why Model MachineProfit = Sales ndash Cost

Profit = Sales ndash Mfg Cost

To reduce manufacturing cost needs optimumutilization of all assets ie resources

Measurement of effective utilization of all

resources is Overall Equipment Efficiency( OEE)

(09 09 09 = 73)

Why Model Machine

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3893

Profit = Total sales ndash Total cost

Why Model Machine

Profit = Selling Prices - Input Mfg cost up

( competition ) ( Increasing cost of input resources )

To maintain improve profit hellip Solution is ldquo Reduce Mfg costrdquo

Improve Asset Utilization

Improve Overall Equipment ldquoEfficiencyrdquo (OEE)

OEE = Availability x Performance x Quality

Our goal should be to improve OEE gt 85

world class Benchmark = 95

Why Model Machine

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3993

Why Model Machine

If

OEE = Mfg Cost

Mfg cost = profit

eg Consider a MC of cost Rs 5 cr

Utilization in Japan china ndash OEE 90Utilization in India ndash OEE 45 (45 7080)So product cost in India will be 2 times than the cost in

china

Key is improve to OEEAchievement on 8 Model Machines - OEE improved

from 45 to 75 85

P - PC Balance

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4093

P PC Balance

Production Vs Production Capability

Engine+Parts Equipment + MC + Test Bed

Model Machine

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4193

Factory Within Factory is BU

BU Within BU is MODEL MC

WHY Model MC

To deliver -Cost Effective Product to ldquoInternalrdquo amp Externalrdquo Customer

Zero - Breakdown

By Achieving - Zero - Accident

Zero - Defect

To Success is ldquoImprove OEErdquo (Overall Equipment Effectiveness)

5 - M‟S OF PRODUCTION

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4293

bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4393

NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4493

Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4593

Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4693

What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4793

Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4893

TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4993

INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5093

TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5193

What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5293

TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5393

TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5493

Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5593

US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5693

g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5793

TPSLean Principles

Click to proceed

TPSLean Principles

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5893

TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5993

Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

842019 Presentation on TPS -JIT Kanban

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Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6193

Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

842019 Presentation on TPS -JIT Kanban

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842019 Presentation on TPS -JIT Kanban

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Principle 2 Takt time

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6493

bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6593

Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6693

Principle 3

Non-value added activities

What are Non-value added activities

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6793

bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6893

1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6993

bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7093

bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7193

Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

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842019 Presentation on TPS -JIT Kanban

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Profit = Total sales ndash Total cost

Why Model Machine

Profit = Selling Prices - Input Mfg cost up

( competition ) ( Increasing cost of input resources )

To maintain improve profit hellip Solution is ldquo Reduce Mfg costrdquo

Improve Asset Utilization

Improve Overall Equipment ldquoEfficiencyrdquo (OEE)

OEE = Availability x Performance x Quality

Our goal should be to improve OEE gt 85

world class Benchmark = 95

Why Model Machine

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 3993

Why Model Machine

If

OEE = Mfg Cost

Mfg cost = profit

eg Consider a MC of cost Rs 5 cr

Utilization in Japan china ndash OEE 90Utilization in India ndash OEE 45 (45 7080)So product cost in India will be 2 times than the cost in

china

Key is improve to OEEAchievement on 8 Model Machines - OEE improved

from 45 to 75 85

P - PC Balance

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4093

P PC Balance

Production Vs Production Capability

Engine+Parts Equipment + MC + Test Bed

Model Machine

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4193

Factory Within Factory is BU

BU Within BU is MODEL MC

WHY Model MC

To deliver -Cost Effective Product to ldquoInternalrdquo amp Externalrdquo Customer

Zero - Breakdown

By Achieving - Zero - Accident

Zero - Defect

To Success is ldquoImprove OEErdquo (Overall Equipment Effectiveness)

5 - M‟S OF PRODUCTION

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4293

bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4393

NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4493

Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4593

Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4693

What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4793

Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4893

TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4993

INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5093

TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5193

What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5293

TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5393

TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5493

Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5593

US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5693

g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5793

TPSLean Principles

Click to proceed

TPSLean Principles

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5893

TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5993

Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6093

Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6193

Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6293

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6393

Principle 2 Takt time

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6493

bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6593

Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6693

Principle 3

Non-value added activities

What are Non-value added activities

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6793

bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6893

1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6993

bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7093

bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7193

Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

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Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

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ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

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bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

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Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

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bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

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bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

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Why Model Machine

If

OEE = Mfg Cost

Mfg cost = profit

eg Consider a MC of cost Rs 5 cr

Utilization in Japan china ndash OEE 90Utilization in India ndash OEE 45 (45 7080)So product cost in India will be 2 times than the cost in

china

Key is improve to OEEAchievement on 8 Model Machines - OEE improved

from 45 to 75 85

P - PC Balance

842019 Presentation on TPS -JIT Kanban

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P PC Balance

Production Vs Production Capability

Engine+Parts Equipment + MC + Test Bed

Model Machine

842019 Presentation on TPS -JIT Kanban

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Factory Within Factory is BU

BU Within BU is MODEL MC

WHY Model MC

To deliver -Cost Effective Product to ldquoInternalrdquo amp Externalrdquo Customer

Zero - Breakdown

By Achieving - Zero - Accident

Zero - Defect

To Success is ldquoImprove OEErdquo (Overall Equipment Effectiveness)

5 - M‟S OF PRODUCTION

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4293

bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4393

NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4493

Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

842019 Presentation on TPS -JIT Kanban

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Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4693

What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4793

Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4893

TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4993

INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

842019 Presentation on TPS -JIT Kanban

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TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

842019 Presentation on TPS -JIT Kanban

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What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

842019 Presentation on TPS -JIT Kanban

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TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5393

TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

842019 Presentation on TPS -JIT Kanban

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Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5593

US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

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g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

842019 Presentation on TPS -JIT Kanban

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TPSLean Principles

Click to proceed

TPSLean Principles

842019 Presentation on TPS -JIT Kanban

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TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

842019 Presentation on TPS -JIT Kanban

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Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

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Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

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Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

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Principle 2 Takt time

Takt Time

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bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

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Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

842019 Presentation on TPS -JIT Kanban

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Principle 3

Non-value added activities

What are Non-value added activities

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6793

bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

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1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

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bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

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bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

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Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

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bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

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P PC Balance

Production Vs Production Capability

Engine+Parts Equipment + MC + Test Bed

Model Machine

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4193

Factory Within Factory is BU

BU Within BU is MODEL MC

WHY Model MC

To deliver -Cost Effective Product to ldquoInternalrdquo amp Externalrdquo Customer

Zero - Breakdown

By Achieving - Zero - Accident

Zero - Defect

To Success is ldquoImprove OEErdquo (Overall Equipment Effectiveness)

5 - M‟S OF PRODUCTION

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4293

bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4393

NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4493

Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4593

Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4693

What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4793

Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4893

TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4993

INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5093

TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5193

What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5293

TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5393

TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5493

Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5593

US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5693

g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5793

TPSLean Principles

Click to proceed

TPSLean Principles

842019 Presentation on TPS -JIT Kanban

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TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

842019 Presentation on TPS -JIT Kanban

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Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

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Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

842019 Presentation on TPS -JIT Kanban

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Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

842019 Presentation on TPS -JIT Kanban

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842019 Presentation on TPS -JIT Kanban

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Principle 2 Takt time

Takt Time

842019 Presentation on TPS -JIT Kanban

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bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

842019 Presentation on TPS -JIT Kanban

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Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6693

Principle 3

Non-value added activities

What are Non-value added activities

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6793

bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6893

1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6993

bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7093

bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7193

Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

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ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

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Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

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bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

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bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

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842019 Presentation on TPS -JIT Kanban

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Factory Within Factory is BU

BU Within BU is MODEL MC

WHY Model MC

To deliver -Cost Effective Product to ldquoInternalrdquo amp Externalrdquo Customer

Zero - Breakdown

By Achieving - Zero - Accident

Zero - Defect

To Success is ldquoImprove OEErdquo (Overall Equipment Effectiveness)

5 - M‟S OF PRODUCTION

842019 Presentation on TPS -JIT Kanban

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bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

842019 Presentation on TPS -JIT Kanban

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NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4493

Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

842019 Presentation on TPS -JIT Kanban

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Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

842019 Presentation on TPS -JIT Kanban

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What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4793

Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4893

TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4993

INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

842019 Presentation on TPS -JIT Kanban

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TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

842019 Presentation on TPS -JIT Kanban

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What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

842019 Presentation on TPS -JIT Kanban

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TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

842019 Presentation on TPS -JIT Kanban

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TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

842019 Presentation on TPS -JIT Kanban

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Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5593

US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5693

g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5793

TPSLean Principles

Click to proceed

TPSLean Principles

842019 Presentation on TPS -JIT Kanban

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TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5993

Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6093

Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6193

Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6293

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6393

Principle 2 Takt time

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6493

bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6593

Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6693

Principle 3

Non-value added activities

What are Non-value added activities

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6793

bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6893

1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6993

bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7093

bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7193

Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4293

bull Manpower Method Materials Machines Money

Absenteism

Violation of SOP

Non Uniformsupply

Non Availability amppoor performance

Lack of funds

To overcome with thisPlant engg Acts upon

Planned Maint BD Maint

No extra care is beingTaken To increase the lifeof machine In spite ofPreventive amp BD Maint

Machine Deterioration

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4393

NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4493

Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4593

Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4693

What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4793

Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4893

TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4993

INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5093

TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5193

What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5293

TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5393

TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5493

Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5593

US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5693

g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5793

TPSLean Principles

Click to proceed

TPSLean Principles

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5893

TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5993

Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6093

Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6193

Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6293

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6393

Principle 2 Takt time

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6493

bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6593

Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6693

Principle 3

Non-value added activities

What are Non-value added activities

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6793

bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6893

1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6993

bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7093

bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7193

Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4393

NATURAL amp FORCE DETERIORATION

M a c

h i n e L i f e

Time

Original condition A B C

A

B

C

Forced deterioration

Natural deterioration

Surpassed Rated life

5 S and Kaizen

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4493

Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4593

Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4693

What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4793

Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4893

TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4993

INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5093

TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5193

What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5293

TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5393

TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5493

Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5593

US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5693

g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5793

TPSLean Principles

Click to proceed

TPSLean Principles

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5893

TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5993

Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6093

Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6193

Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6293

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6393

Principle 2 Takt time

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6493

bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6593

Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6693

Principle 3

Non-value added activities

What are Non-value added activities

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6793

bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6893

1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6993

bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7093

bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7193

Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4493

Unsafe Action

Near Misses

Fatal Accident

1

30

300 Problem in lsquoseedrsquo

stage(Signals ignored)

Problem in lsquosaplingrsquo

stage

Problem in lsquotreersquo stage

(Disasters at workplace)

Problems at the Work

Place

Never make same mistake again- Improve Continuously

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4593

Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4693

What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4793

Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4893

TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4993

INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5093

TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5193

What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5293

TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5393

TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5493

Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5593

US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5693

g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5793

TPSLean Principles

Click to proceed

TPSLean Principles

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5893

TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5993

Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6093

Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6193

Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6293

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6393

Principle 2 Takt time

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6493

bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6593

Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6693

Principle 3

Non-value added activities

What are Non-value added activities

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6793

bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6893

1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6993

bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7093

bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7193

Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4593

Examplebull Motor not rotating ------ motor overload tripped ----

motor taking over current------ motor coolingimproper-----

motor stator fins accumulated with metal chips ampdust

Counter Measure Clean motor stator fins amp provide

daily check

bull By taking extra care of machine and maintaining theoptimum condition we can sustain rather enhance the

life of machine So removal of even minorabnormalities contributes to improve the life ampperformance of the machine

Model Machine

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4693

What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4793

Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4893

TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4993

INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5093

TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5193

What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5293

TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5393

TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5493

Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5593

US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5693

g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5793

TPSLean Principles

Click to proceed

TPSLean Principles

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5893

TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5993

Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6093

Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6193

Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6293

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6393

Principle 2 Takt time

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6493

bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6593

Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6693

Principle 3

Non-value added activities

What are Non-value added activities

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6793

bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6893

1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6993

bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7093

bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7193

Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4693

What is OEE OEE is Overall Equipment Effectiveness

OEE= Availability X Rate of quality products X Performance

ldquoOverallrdquo Means

Performance of bdquoResources‟ MachinesMethodsMan amp

Quality

Losses OEE

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4793

Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4893

TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4993

INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5093

TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5193

What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5293

TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5393

TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5493

Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5593

US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5693

g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5793

TPSLean Principles

Click to proceed

TPSLean Principles

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5893

TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5993

Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6093

Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6193

Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6293

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6393

Principle 2 Takt time

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6493

bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6593

Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6693

Principle 3

Non-value added activities

What are Non-value added activities

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6793

bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6893

1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6993

bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7093

bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7193

Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4793

Day 2

WELCOME TOLean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4893

TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4993

INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5093

TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5193

What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5293

TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5393

TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5493

Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5593

US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5693

g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5793

TPSLean Principles

Click to proceed

TPSLean Principles

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5893

TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5993

Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6093

Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6193

Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6293

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6393

Principle 2 Takt time

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6493

bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6593

Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6693

Principle 3

Non-value added activities

What are Non-value added activities

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6793

bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6893

1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6993

bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7093

bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7193

Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4893

TOYOTA PRODUCTION SYSTEMS

amp LEAN MANUFACTURING

Sybeq

Lean Manufacturing ndash eLearning Program

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4993

INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5093

TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5193

What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5293

TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5393

TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5493

Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5593

US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5693

g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5793

TPSLean Principles

Click to proceed

TPSLean Principles

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5893

TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5993

Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6093

Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6193

Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6293

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6393

Principle 2 Takt time

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6493

bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6593

Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6693

Principle 3

Non-value added activities

What are Non-value added activities

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6793

bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6893

1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6993

bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7093

bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7193

Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 4993

INDEX

1 What is Lean Manufacturing

wwwsybeqcom

2 Lean Principles

3 Steps to implement Lean

4 Lean Tools

5 Kaizen

6 Lean Implementation tips

hellipThank You

7 Conclusion

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5093

TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5193

What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5293

TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5393

TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5493

Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5593

US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5693

g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5793

TPSLean Principles

Click to proceed

TPSLean Principles

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5893

TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5993

Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6093

Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6193

Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6293

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6393

Principle 2 Takt time

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6493

bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6593

Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6693

Principle 3

Non-value added activities

What are Non-value added activities

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6793

bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6893

1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6993

bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7093

bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7193

Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5093

TPSLean Manufacturing Introduction

Click to proceed

What is TPSLean Manufacturing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5193

What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5293

TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5393

TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5493

Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5593

US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5693

g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5793

TPSLean Principles

Click to proceed

TPSLean Principles

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5893

TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5993

Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6093

Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6193

Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6293

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6393

Principle 2 Takt time

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6493

bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6593

Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6693

Principle 3

Non-value added activities

What are Non-value added activities

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6793

bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6893

1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6993

bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7093

bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7193

Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5193

What is TPSLean Manufacturing

bull An approach that minimizes

consumption of resources that add novalue to the product

bull Focus is on eliminating waste

bull Production of goods with less human effort lessequipment less space less time

51

Click to go back

TPSLean Manufacturing Benefits

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5293

TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5393

TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5493

Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5593

US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5693

g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5793

TPSLean Principles

Click to proceed

TPSLean Principles

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5893

TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5993

Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6093

Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6193

Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6293

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6393

Principle 2 Takt time

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6493

bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6593

Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6693

Principle 3

Non-value added activities

What are Non-value added activities

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6793

bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6893

1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6993

bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7093

bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7193

Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5293

TPSLean Manufacturing Benefits

bull Increase in productivity

bull Reduction in throughput time

bull Reduction in inventory WIP

bull Reduction in scrapbull Better space utilization

52

TPSLean Manufacturing Six Sigma and

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5393

TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5493

Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5593

US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5693

g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5793

TPSLean Principles

Click to proceed

TPSLean Principles

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5893

TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5993

Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6093

Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6193

Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6293

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6393

Principle 2 Takt time

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6493

bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6593

Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6693

Principle 3

Non-value added activities

What are Non-value added activities

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6793

bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6893

1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6993

bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7093

bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7193

Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5393

TPSLean Manufacturing Six Sigma and

Theory of Constraints

Before we learn Lean Principles letrsquos

at Lean vs Six Sigma and Theory of Constraints

53

TPSLean Six Sigma and TOC

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5493

Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5593

US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5693

g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5793

TPSLean Principles

Click to proceed

TPSLean Principles

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5893

TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5993

Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6093

Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6193

Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6293

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6393

Principle 2 Takt time

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6493

bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6593

Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6693

Principle 3

Non-value added activities

What are Non-value added activities

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6793

bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6893

1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6993

bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7093

bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7193

Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5493

Program Lean Six Sigma TOC

Goal Removes Waste Reduces Variation Manages constraints

Approach 1 Identify value

2 Identify value

stream

3 Flow

4 Pull5 Perfection

1 Define

2 Measure

3 Analyze

4 Improve

5 Control

1 Identify constraint

2 Exploit constraint

3 Subordinate

processes

4 Elevate constraint5 Repeat cycle

Focus Flow focused Problem focused System constraints

Results Reduced flow

time

Uniform process

output

Fast throughput

TOC ndash Theory of Constraints

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5593

US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5693

g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5793

TPSLean Principles

Click to proceed

TPSLean Principles

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5893

TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5993

Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6093

Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6193

Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6293

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6393

Principle 2 Takt time

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6493

bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6593

Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6693

Principle 3

Non-value added activities

What are Non-value added activities

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6793

bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6893

1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6993

bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7093

bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7193

Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5593

US Manufacturers Japanese Manufacturers

bull Process oriented massproduction manufacturing

methods common before

World War II

bull Shift to the results-oriented

output-focused production

systems that control most of

todays manufacturing

businesses

bull Re-building after World War IIJapan was facing declining

human material and financial

resources

bull The problems they faced were

vastly different from their

Western counterparts

These circumstances led to thedevelopment of new lower cost

manufacturing practices

TPSLean Manufacturing - History

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5693

g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5793

TPSLean Principles

Click to proceed

TPSLean Principles

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5893

TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5993

Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6093

Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6193

Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6293

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6393

Principle 2 Takt time

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6493

bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6593

Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6693

Principle 3

Non-value added activities

What are Non-value added activities

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6793

bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6893

1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6993

bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7093

bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7193

Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5693

g y

Concepts of Lean Manufacturing and Just in time were applied in

the US industries in the 1900s

Taiichi Ohno and Shingeo Shingo of Japan developed a

disciplined process-focused production system known as the

Toyota Production Systemldquo

In 1990 James Womack introduced Lean production to the US

industry with the publication of his book ldquoThe Machine that

changed the worldrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5793

TPSLean Principles

Click to proceed

TPSLean Principles

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5893

TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5993

Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6093

Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6193

Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6293

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6393

Principle 2 Takt time

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6493

bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6593

Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6693

Principle 3

Non-value added activities

What are Non-value added activities

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6793

bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6893

1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6993

bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7093

bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7193

Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5793

TPSLean Principles

Click to proceed

TPSLean Principles

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5893

TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5993

Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6093

Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6193

Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6293

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6393

Principle 2 Takt time

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6493

bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6593

Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6693

Principle 3

Non-value added activities

What are Non-value added activities

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6793

bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6893

1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6993

bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7093

bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7193

Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5893

TPSLean Principles

bull Continuous flow manufacturingbull Takt time

bull Non-value added activities

bullCycle time reduction

Click to go back

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5993

Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6093

Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6193

Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6293

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6393

Principle 2 Takt time

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6493

bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6593

Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6693

Principle 3

Non-value added activities

What are Non-value added activities

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6793

bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6893

1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6993

bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7093

bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7193

Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 5993

Principle 1

Continuous Flow Manufacturing

Continuous Flow Manufacturing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6093

Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6193

Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6293

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6393

Principle 2 Takt time

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6493

bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6593

Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6693

Principle 3

Non-value added activities

What are Non-value added activities

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6793

bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6893

1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6993

bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7093

bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7193

Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6093

Continuous Flow Manufacturing

bull Material should always move one piece at a timeat the rate determined by the customer

bull Flow of product must be smooth and

uninterrupted

Continuous Flow Advantages

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6193

Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6293

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6393

Principle 2 Takt time

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6493

bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6593

Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6693

Principle 3

Non-value added activities

What are Non-value added activities

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6793

bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6893

1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6993

bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7093

bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7193

Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6193

Continuous Flow Advantages

bull Delivers a flow of products to the customer withless delay

bull Requires less storage and transport

bull Lowers the risk of losses through damage

deterioration or obsolescence

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6293

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6393

Principle 2 Takt time

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6493

bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6593

Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6693

Principle 3

Non-value added activities

What are Non-value added activities

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6793

bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6893

1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6993

bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7093

bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7193

Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6293

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6393

Principle 2 Takt time

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6493

bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6593

Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6693

Principle 3

Non-value added activities

What are Non-value added activities

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6793

bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6893

1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6993

bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7093

bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7193

Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6393

Principle 2 Takt time

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6493

bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6593

Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6693

Principle 3

Non-value added activities

What are Non-value added activities

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6793

bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6893

1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6993

bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7093

bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7193

Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6493

bull Time needed to produce as per customer

requirements

bull Used to determine pace of production in

continuous flow manufacturing

Takt Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6593

Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6693

Principle 3

Non-value added activities

What are Non-value added activities

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6793

bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6893

1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6993

bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7093

bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7193

Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6593

Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) ndash (Time for breaks

lunch)

Customer requirements = Products required per day

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6693

Principle 3

Non-value added activities

What are Non-value added activities

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6793

bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6893

1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6993

bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7093

bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7193

Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6693

Principle 3

Non-value added activities

What are Non-value added activities

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6793

bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6893

1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6993

bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7093

bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7193

Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6793

bull Waste that exists in the process

bull Activities not important to the customer

bull Work elements that the customer will not pay for

Non-value added activities Categories

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6893

1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6993

bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7093

bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7193

Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6893

1 Overproduction

2 Inventory

3 Repair Rejects

4 Motion

5 Processing

6 Waiting

7 Transport

Overproduction

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6993

bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7093

bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7193

Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 6993

bull Producing too much

bull Occurs because products are made

earlier or faster or more than is needed by

the next process

bull Uses extra space raw materials utilities

transportation scheduling costs

Inventory

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7093

bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7193

Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7093

bull Raw material parts WIP supplies finished

goods are all inventory

bull Uses extra space transportation labor interest

on materials

bull Inventory sitting around gathers dust

deteriorates becomes obsolete gets damaged in

handling

Repair

P

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7193

Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7193

Process

Conformingproduct

Delivered tocustomer

Non conformingproduct

RepairInspection

Delivered to

customer

OK Not OK

Scrap

Repair- labor

- additional material- normal continuousflow gets affected

Motion

Extra unneeded movements

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7293

bull Design new tools to help with strenuous and tiringmotions

bull Redesign workplace layout to take advantage of

the ergonomics

bull Extra unneeded movements

like excessive walks lift heavy

loads bend awkwardly reach

too far etc are waste

Processing

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7393

bull Additional steps in the manufacturing process

bull Examples

a Removing burr

b Reshaping a piece due to poor diesc Extra handling process due to lack of space

d Maintaining extra copies of information

Waiting

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7493

bull Operator remains idle waiting for the next

operation

bull Some causes for waiting are machine

downtime lack of parts line stoppages longchangeover times batch flow of material

Transport

All forms of transportation are aste

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7593

bull All forms of transportation are waste

bull Some examples are use of forklifts

conveyors trucks

bull Transportation waste is caused by poor plant

layout poor cell design use of batch processes

long lead times large storage areas scheduling

problems

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7693

Principle 4 Cycle-time reduction

Cycle-time reduction

bull The amount of time needed to complete a

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7793

bull The amount of time needed to complete a

single task and move it forward in theprocess

bull To make the line flow all operations must

be completed under the takt time

bull Cycle time reductions improve quality

reduce waste increase capacity simplify

the operation

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7893

Operation 1 Operation 2 Operation 3

Process

Consider a process that has 3 operations

Each operation has a pre determined takt time based on the

customer requirements and net operating time availableCycle time is the total of takt times for all three operations

To reduce cycle time each task must be completed below the

takt time

Cycle-time and Takt time (Example)

Process

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 7993

Operation 1 Operation 2 Operation 3

Process

Operation Takt time

1 52 sec

2 45 sec

3 65 sec

Total 162 sec Cycle Time

Cycle-time reduction

K i t t k l ti d ti j t

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8093

bull Kaizen teams take up cycle time reduction projects

bull The project involves

a Data collection and analysis

b Work sampling pace studies line balancing

elemental analysis motion studies and takt time

calculations

Traditional Approach

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8193

ForecastDemand

Produce DistributeSell

BLISS

hellip a precisely inaccurate forecast Irrational

Customer

Demand

Variance MESS

hellipPush System

bull IN REALITY

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8293

bull Mismatch between inventory and

actual demand

bull Frequent schedule revisions

bull High inventory levels

bull Excessive stock of some stockouts for

some

bull Lost sales loss of production Logistics of Supply Management

Is most important

Fallout of ldquoPushrdquo

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8393

bull Mismatch between inventory and actualdemand

bull Frequent schedule revisions - Bullwhip effect

bull High inventory levels

bull Excessive stock of some items stockouts ofsome

bull Lost sales loss of production

hellip for finished products amp materials

Push Vs Pull

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8493

Push Vs Pull

bull PUSH System

- Driven by Forecasts

bull PULL System

- Driven by actual demand

- Not Driven by Forecast

Materials Scheduling

PULL SYSTEMS

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8593

Production Schedule Driven

PULL SYSTEMS

Consumption Driven

FQVT FTVQ

bull FQVT ndash Fixed Quantity Variable Time

bull FTVQ ndash Fixed Time Variable Quality

Kanban is an FQVT System

What is MRP

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8693

bull MRP (Materials Resource Planning) is a Computerized Inventory Control

bull Production Planning System that

Schedules Component Items as Neededwhich will Track Inventory

Role of MRP

bull MRP a planning tool

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8793

bull MRP - a planning tool

bull Not a Scheduling tool when

demand is unpredictable

bull Use MRP only ndash For gross requirements planning

based on master production plans

ndash To calculate Recalculate BufferLevels

Planning amp Scheduling

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8893

bull Planning horizons typically Quarter

Month

bull Scheduling horizons are shorter

Typically Week or Day

Forecasting amp Planning

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 8993

Forecasting amp Planning

bull Annual Forecast Capacity Planning

bull Quarterly Forecast Resources Planning

(Materials amp Manpower)

bull Month‟s Forecast Resource Commitment

Living with imperfection hellip

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9093

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling

C Cl ifi i

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9193

bull ABC-XYZ Classification

- ABC ndash Analysis based on Price- XYZ ndash Analysis based on Consumption

bull Choice of Scheduling system

ndash Replenishment system ndash Schedule to meet production plan

bull Two types of replenishment systems

ndash FQ-VT (Fixed Quantity-Variable Time -Kanban) ndash FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9293

bull Produce and distribute only what the customer wantsin the

quantity he wants when he wants

bull Do not produce and distribute asper demand forecast

bull A Pull System

THANK YOU

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393

842019 Presentation on TPS -JIT Kanban

httpslidepdfcomreaderfullpresentation-on-tps-jit-kanban 9393