The processes and methods used to transform tangible inputs (raw materials, semi-finished goods, subassemblies) and intangible inputs (ideas, information, knowledge) into goods or services. Resources are used in this process to create an output that is suitable for use or has exchange value.

Before the introduction of machines manufacturing was mainly done by individuals

Crossbows made of bronze were mass produced in China during the Warring States Period. The Qin Emperor unified China at least in part by equipping large armies with these weapons, which were equipped with a sophisticated trigger mechanism made of interchangeable parts

Ships of war were mass produced at a moderate cost by the Carthaginians in their excellent harbours, allowing them to efficiently maintain their control of the Mediterranean

Venice themselves also mass produced ships using prefabricated parts and assembly lines many centuries later

The spinning jenny is a multi-spool spinning frame. It was invented in 1764 by James Hargreaves in Stanhill, Oswaldtwistle, Lancashire in England.

In 1775 Samuel Crompton produced his Spinning Mule, so called because it was a hybrid that combined features of two earlier inventions, the Spinning Jenny and the Water Frame. The mule produced a strong, fine and soft yarn which could be used in all kinds of textiles, but was particularly suited to the production of muslins

The Watt steam engine was the first type of

steam engine to make use of steam at a

pressure just above atmospheric to drive the

piston helped by a partial vacuum. Improving

on the design of the 1712 Newcomen engine,

the Watt steam

engine, developed sporadically from

1763 to 1775, was the next great

step in the development of the

steam engine

Prerequisites of a world filled with mass production were interchangeable parts, machine tools and power, especially in the form of electricity

Electrification of factories began very gradually in the 1890s after the introduction of a practical DC motor by Frank J. Sprague and accelerated after the AC motor was developed by Nikola Tesla (Westinghouse) and others. Electrification of factories was fastest between 1900 and 1930, aided by the establishment of electric utilities with central stations and the lowering of electricity prices from 1914 to 1917

Mass production was popularized in the 1910s and 1920sby Henry Ford's Ford Motor Company, which introduced electric motors to the then-well-known technique of chain or sequential production. Ford also bought or designed and built special purpose machine tools

Mass production improved productivity, which was a contributing factor to economic growth and the decline in work week hours, alongside other factors such as transportation infrastructures (canals, railroads and highways) and agricultural mechanization. These factors caused the typical work week to decline from 70 hours in the early 19th century to 60 hours late in the century, then to 50 hours in the early 20th century and finally to 40 hours in the mid 1930s.

Assembly lines are designed for the sequential organization of workers, tools or machines, and parts. The motion of workers is minimized to the extent possible. All parts or assemblies are handled either by conveyors or motorized vehicles such as fork lifts, or gravity, with no manual trucking. Heavy lifting is done by machines such as overhead cranes or fork lifts. Each worker typically performs one simple operation.

the parts to be assembled are delivered at convenient distances

According to Henry Ford: The principles of assembly are these: (1) Place the tools and the men in the sequence of the

operation so that each component part shall travel the least possible distance while in the process of finishing.

(2) Use work slides or some other form of carrier so that when a workman completes his operation, he drops the part always in the same place—which place must always be the most convenient place to his hand—and if possible have gravity carry the part to the next workman for his operation.

(3) Use sliding assembling lines by which the parts to be assembled are delivered at convenient distances

The strike began on 7 June, 1968, when women sewing machinists at Ford Motor Company Limited's Dagenham plant in Essex walked out, followed later by the machinists at Ford's Halewood Body & Assembly plant. The women made car seat covers and as stock ran out the strike eventually resulted in a halt to all car production.

Gross domestic product (GDP) is the market value of all officially recognized final goods and services produced within a country in a given period of time. GDP per capita is often considered an indicator of a country's standard of living

Pension security pension funds invest money in company shares which depend on the company making a profit.

The Pension Protection Fund (PPF) was set up April 2005 to protect you if your employer goes bust and its pension scheme can no longer afford to pay you your promised pension.

A lead time is the latency (delay) between the initiation and execution of a process. For example, the lead time between the placement of an order and delivery of a new car from a manufacturer may be anywhere from 2 weeks to 6 months. In industry, lead time reduction is an important part of lean manufacturing.

The cycle of kaizen activity can be defined as:

Standardize an operation and activities.

Measure the standardized operation (find cycle time and amount of in-process inventory)

Gauge measurements against requirements

Innovate to meet requirements and increase productivity

Standardize the new, improved operations

Continue cycle ad infinitum

Establish the objectives and processes necessary to deliver results in accordance with the expected output (the target or goals). By establishing output expectations, the completeness and accuracy of the specification is also a part of the targeted improvement. When possible start on a small scale to test possible effects.

Implement the plan, execute the process, make the product. Collect data for charting and analysis in the following "CHECK" and "ACT" steps

Study the actual results (measured and collected in "DO" above) and compare against the expected results (targets or goals from the "PLAN") to ascertain any differences. Look for deviation in implementation from the plan and also look for the appropriateness and completeness of the plan to enable the execution, i.e., "Do". Charting data can make this much easier to see trends over several PDCA cycles and in order to convert the collected data into information. Information is what you need for the next step "ACT".

Request corrective actions on significant differences between actual and planned results. Analyse the differences to determine their root causes. Determine where to apply changes that will include improvement of the process or product. When a pass through these four steps does not result in the need to improve, the scope to which PDCA is applied may be refined to plan and improve with more detail in the next iteration of the cycle, or attention needs to be placed in a different stage of the process.

Just in time is a ‘pull’ system of production, so actual orders provide a signal for when a product should be manufactured. Demand-pull enables a firm to produce only what is required, in the correct quantity and at the correct time.

Lower stock holding means a reduction in storage space which saves rent and insurance costs

As stock is only obtained when it is needed, less working capital is tied up in stock

There is less likelihood of stock perishing, becoming obsolete or out of date

Avoids the build-up of unsold finished product that can occur with sudden changes in demand

Less time is spent on checking and re-working the product of others as the emphasis is on getting the work right first time

There is little room for mistakes as minimal stock is kept for re-working faulty product

Production is very reliant on suppliers and if stock is not delivered on time, the whole production schedule can be delayed

There is no spare finished product available to meet unexpected orders, because all product is made to meet actual orders –however, JIT is a very responsive method of production

Basically a system where only what is needed to do the job is supplied

Basically a ‘Pull’ type of production,

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What is Kanban?

• Card system that controls production & inventory

• Visual “pull” system vs. a “black box” push system (ie

- MRP)

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Kanbans are All Around Us

Kanbans are Inventory

Inventory Is waste (costly!)

Goal Is To Minimize Inventory In Kanbans And Eliminate If Possible

Basic Kanban (Pull signal)

Ultimate Goal of Kanban is to not have a KANBAN !

One-Piece Flow is the Answer !

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Primary◦ Eliminate over-production, the #1 waste◦ Produce only what is ordered, when ordered, & quantity

ordered

Secondary◦ Increase flexibility to meet customer demand◦ Reduction in scheduling by Production Control &

Manufacturing◦ Competitive advantage by sequencing shipments to

customers (what they want, when they want it, in the order they want it!)

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No Cards◦ Visual (Tape On Floor)◦ Two-Bin or Bin Systems◦ Supplier Containers◦ Painted floors, i.e. squares, circles

Card Systems◦ Electronic Kanbans - Fax or Emails◦ Warehouse Or Parts Racks◦ Kanban Boards – Magnetic or Cards◦ Containers◦ Flow Thru Racks◦ Supplier Boxes

Kanban Options

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Categories of Kanban

Instruction

Withdrawal

Kanban

Production Kanban (non lot production)

Triangle Kanban (for lot production)

Interprocess Kanban

Supplier Kanban

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Production or (In-Process)-Kanban◦ Provides production instructions for the work centre◦ Tells the workers exactly the quantity and the type

of part to produce◦ Used for work centers that produce only one part

number or have minimal setups in spite of multiple part number production Rectangular – one piece flow production Triangular – for small lot production

Withdrawal-Kanban◦ Inter-Process Kanban

Delivers order for parts from a preceding process Specifies quantity and type of parts to deliver from Location A to Location B

Later replenishment system – kanban are filled from suppliers finished goods shelf

Sequenced withdrawal – supplier sequences parts in reverse order for truck loading

◦ Supplier Kanban Same as an inter-process Kanban, except it signals conveyance of part from an outside supplier

Kanban Types

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Job order-Kanban◦ Issued for each job order

Through-Kanban◦ When two processes are very close, it doesn’t make sense

to issue two Kanbans. Used where one process directly feeds (conveyor) the next process.

Common-Kanban◦ Where a withdrawal kanban is used as a production

ordering kanban if the distance between two processes is very short and share the same supervisor.

◦

Emergency-Kanban◦ Temporary, when there is a defect or problem, can be

withdrawal or production

Other Kanban Types

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Never Pass on A Bad Part The Parts Are Always Withdrawn From The Prior

Process Produce Only What Is Necessary To Replenish The

Quantity Withdrawn Level Load Production, Rapid Changeover, Small

Lot Production, Zero Defects Kanban Is Used To Fine Tune (Not Provide For

Major Changes) The Process Must Be Capable Of Producing Good

Parts (Rational And Stable) Need Efficient Methods Of Transportation,

Shortest Routes Possible Disciplined Organization Nothing Is Made or Transported Without A

Kanban. Kanban Cards Always Accompany the Parts

Themselves. The Number of Kanbans Should Decrease over

time.

Rules of the Kanban

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Kanban– An Information System That Signals the

Need To Start An Event

– Name For Each Individual Signal (Card

Or Otherwise)

Purpose– Control The Flow of Production by

Providing Information Which

Interconnects Upstream And Downstream

Processes At Every Level

Implementation– Usually A Piece Of Paper in a Vinyl

Envelope Or Container

– Outline Markings On The Floor

– Most Common Is Two - Bin System

Summary Definition

When the bin on the factory floor becomes empty (i.e., there is demand for parts), the empty bin and kanban cards are returned to the factory store. The factory store then replaces the bin on the factory floor with a full bin, which also contains a kanbancard. The factory store then contacts the supplier’s store and returns the now-empty bin with its kanbancard. The supplier's inbound product bin with its kanban card is then delivered into the factory store, completing the final step in the system. Thus, the process will never run out of product and could be described as a loop, providing the exact amount required, with only one spare so that there will never be an oversupply

Do not send defective products to the subsequent process

The subsequent process comes to withdraw only what is needed

Produce only the exact quantity withdrawn by the subsequent process

Level the production

Kanban is a means to fine tuning

Stabilize and rationalize the process.

NCMA World Congress 2006:Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management37

We are as strong as the weakest link in our value chain.

NCMA World Congress 2006:Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management38

The Toyota Way

Respect for PeopleContinuous

Improvement

Challenge Kaizen Genchi

GenbutsuRespectTeamwork

NCMA World Congress 2006:Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management39

Relationship with SuppliersHelp Suppliers Become Stronger

Focus on Collaboration

Work with Suppliers to increase Capabilityand Competitiveness

Better quality products

Making quality a responsibility of every worker, not just the quality inspectors

Reduced scrap and rework

Reduced cycle times

Lower set up times

Smoother production flow

Less inventory of raw materials, work in progress and finished goods

Cost savings

Higher productivity

Higher worker participation

More skilled work force, able to switch roles e.g. multi skilling and flexible workforce

Reduced space requirements

Improved relationships with supplier

Improved safety

Team work

T together

E everyone

A achieves more

M more

Team working may be defined as a work practice based on the use of teams, or groups of limited numbers of people, who have shared objectives at work and who co-operate, on a permanent or temporary basis, to achieve those objectives in a way that allows each individual to make a distinctive contribution.

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Learning ObjectivesAs a result of this session you will:

Develop the ability to recognize the stages of

development associated with a team

Understand the characteristics of each of the

four stages of team development

Understand the concepts of skill level and

enthusiasm, and how they relate to the four

stages of team development

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Develop the ability to recognize the stages of development associated with a team

Understand the characteristics of each of the four stages of team development

Understand the concepts of skill level and enthusiasm, and how they relate to the four stages of team development

As a result of this session you will:

NE-II-17746

•Forming

• Storming

• Norming

• Performing

Bruce W. Tuchman suggested in 1965 that as teams develop they progress through four common stages

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Stages of Team DevelopmentForming

Most team members eager to be on the team – Enthusiasm is high

Clarity of norms, roles, goals and timelines is lacking

Anxiety about trusting other team members

High dependence on leadership figure for purpose and direction

Primary Issues: personal well being, acceptance and trust

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Stages of Team Development

Forming StormingTeam discovers discrepancy between initial expectation and reality

Negative reaction to each other; Subgroups polarize team

Trust is lowered with breakdown of communication

Primary issues: power, control and conflict

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Stages of Team DevelopmentForming Storming Norming

As issues are addressed, enthusiasm begins to riseProductivity and technical skills increase

leading to positive, even euphoric feelingsTrust and cohesion grow

as communication becomes more open and task orientedIncreased clarity and commitment to

purpose, values, norms, roles and goalsNew issues are sharing of control and avoidance of conflict

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Stages of Team DevelopmentForming Storming Norming Performing

Skill level and enthusiasm are high and reinforce each other

Pride and excitement come from being part of a high-performing team

Performance is the primary focus - Standards are high

there is a commitment to continuous improvement

Clarity exists for purpose, roles and goals

Trust and mutual respect are the norm

Communication is open, leadership is shared

Issues include continued refinements and growth

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Variables of Team Development

Enthusiasm (morale)

Skill Level (productivity)

Starts out high then dips as reality sets in

Rises as the team works through its problems

Starts out low

Rises as the team becomes productive

Skill Level and Enthusiasm are both high when a team becomes a

HIGH PERFORMING TEAM.

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Here are some examples from

“Remember the Titans”Walt Disney Pictures, 2000

•Year is 1971

•High School is being integrated

•New coach appointed to take over football team

•Successful and popular former coach demoted to assistant

•Two coaches are as opposite as can be

•How did this team form ?

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Enthusiasm is high, skill level is low

Watch the team for:◦ Eagerness◦ High and unrealistic expectations◦ Anxiety about how players will fit in◦ What demands will be placed on them

*

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Clip #2: “Storming”

Enthusiasm has dropped, skill level

continues to be low.

Watch the team for:

Difficulty working together

Frustration

Negativity

Communication breakdowns

Dissatisfaction with leadership

*

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Clip #3: “Norming”

Enthusiasm and skill level are rising.

Things to watch for in this clip:Euphoric, positive feelingsTeam members valuing their differencesTeam members start thinking “we” rather than “I” *

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Clip #4: “Performing”

Enthusiasm and skill level are

high.

Things to watch for in this clip:Pride and confidencePurpose and goals are clearCommunication is openLeadership is shared

*

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Now for a Story of Yours

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Understanding the Stages of Team Development

◦ Enables us to anticipate what a team is likely to

go through

◦ Enables us to use appropriate strategies to

smooth the progress of the team through each

stage

◦ Suggests suitable leadership and behaviors

during each stage

It’s Not Set in Stone

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Learning Objectives ReviewYou should be able to:

1. Recognize the stages of development associated with a

team

Forming

Storming

Norming

Performing

Transition processes (between periods of action)◦ Mission analysis

◦ Goal specification

◦ Strategy formulation

Action processes (when the team attempts to accomplish its goals and objectives)◦ Monitoring progress toward goals

◦ Systems monitoring

◦ Team monitoring and backup behavior

◦ Coordination

Interpersonal processes (present in both action periods and transition periods)◦ Conflict management

◦ Motivation and confidence building

◦ Affect management