Ron Lembke Operations Management Waste Waste is anything other than the minimum amount of equipment materials parts space and workers time which are absolutely essential to add value ID: 588617
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Slide1
Lean Production
Ron Lembke
Operations ManagementSlide2
Waste
Waste is ‘anything other than the minimum
amount of equipment, materials, parts, space, and workers’ time which are absolutely essential to
add value
to the product.
--
Shoichiro
Toyoda, Chairman, Toyota Motor Co., 1992-99
If you put your mind to it, you can squeeze water from a dry towel.
--
Eiji
Toyoda, President 1967-1982Slide3
Toyota Motor Corp.
Kiichiro Toyoda,
founder, 1936
Toyoda
Motor Co.
Only 1936 known Toyoda AASlide4
Lexus -- the early years
First two Toyotas imported to U.S. 1957Toyopet CrownsSlide5
Eiji Toyoda’s Ambitious Plans
Post-WWII Japanese industry in ruinsEarly 1950s – toured Rouge plant
2,500 cars in 13 years. Ford: 8,000 per day
“Catch up to Americans in 4 years
!”
Kiirchiro
, 1947Toyoda made delivery trucks and motorcycles, and not many of either
Sakichi
Toyoda, Automatic Loom Works, 1926 Slide6
Elimination of Waste
Knew they wouldn’t beat U.S. with product innovation, concentrated on licensing patents, and producing
more efficiently
Costs prevented mass-production, volume strategy of American firms.
Find ways to reduce waste, cost
Shigeo Shingo (at right)
& Taiichi Ohno, pioneersSlide7
Just-in-Time
Downstream processes take parts from upstream as they need.Like an American Supermarket:
Get
what
you want
when
you want itin the quantity you want.Taaichi Ohno, 1956 US visit
Oxfam St.Albans
, abebooks.comSlide8
7 Types of Waste (Ohno 1988)
OverproductionTime on Hand (waiting time)
Transportation
Stock on Hand - Inventory
Waste of Processing itself
Movement
Making Defective ProductsSlide9
Seven Elements to Eliminate Waste
Focused Factories
Group Technology
Quality at the Source
JIT production
Uniform Plant Loading
Kanban production control systemMinimized setup timesSlide10
1. Focused Factories
Small, specialized plantsNo huge, vertically integrated plantsSmall plants easier, cheaper to build
Tom Peters, “The Pursuit of Wow.”
Group size of 150
Know everyone else in the groupSlide11
2. Group Technology – Work Cell
Products grouped into families
Work cell can produce whole family
Cellular layout, not functional, U-shaped,
flows
through the work cell
BenefitsMuch less inventory sitting aroundLess material movement, fewer workersQuality – facilitated by lower inv levels, cross-training
Cross-trainingKeep skills sharp
Managers, too – respect abilitiesReduce
boredom & fatigue
Understand overall picture,
More
new ideas
velaction.comSlide12
3. Quality at the Source
Do it right the first time
Stop process, correct errors immediately
Not a lot of parts to sift through to find a good one
Can’t afford high defect rates
Since low WIP, get quick feedback on errors
Andon lightswerma.com
Andon cord
autonews.comSlide13
Lowering Inventory Reduces Waste
WIP hides problemsSlide14
Lowering Inventory Reduces Waste
WIP hides problemsSlide15
Lowering Inventory Reduces Waste
Reducing WIP makes
problem very visible
STOPSlide16
Lowering Inventory Reduces Waste
Remove problem, run
With less WIPSlide17
Lowering Inventory Reduces Waste
Reduce WIP again to find
new problemsSlide18
Performance and WIP Level
Less WIP means products go through system fasterreducing the WIP makes you more sensitive to problems, helps you find problems faster
Stream and Rocks analogy:
Inventory (WIP) is like water in a stream
It hides the rocks
Rocks force you to keep a lot of water (WIP) in the streamSlide19
4. Just In Time-- What is It?
Just-in-Time: produce the right parts, at the right time, in the right quantity
Requires repetitive, not big volume
Batch size of one
Short transit times, keep 0.1 days of supplySlide20
5. Uniform Plant Loading (heijunka)
Any changes to final assembly are magnified throughout production process
Sequencing:
If mix is 50% A, 25% B, 25% C, produce
A-B-A-C-A-B-A-C…
Andon board showing status of each station
GM Corvette plant, Bowling Green, autoblog.comSlide21
Takt Time
Takt time:Beat or cycle
Master production schedule: 10,000 /mo.
500 day, 250 a shift
480 minutes means 1 every 1.92 minutesSlide22
6. Kanban
Japanese for ‘signboard’Method for implementing JIT
In order to produce, you need both:
material to work on, and
an available kanban.
Each work station has a fixed # kanbans.Slide23
6. Kanban
Worker 2 finishes a part, outbound moves over2 has a brown triangle tag available, so 2 gets another part to work on:
2 takes off 1’s blue circle tag giving it back to 1, and
puts on her brown triangle tag and moves it into position.
Flow of work
3
2
1Slide24
6. Kanban
When 3 finishes a part, Finished parts move over one spot
He has to have a yellow square tag to put on,
He gets a part from 2’s outbound pile,
And gives the brown triangle back to 2
Flow of work
3
2
1Slide25
6. Kanban – “Pull” Production
When 3 finishes a part,
Finished parts move over one spot
He has to have a yellow square tag available to put on,
He gets a part from 2’s outbound pile,
And gives the brown triangle back to 2
3’s production will be taken by 4, offstage right.
Tag goes back into 3’s bin
End customers
pull
products through the factory
Flow of work
3
2
1Slide26
6. Kanban – “Blocking”
Worker #3 finishes his part next.
But customers haven’t freed up any of the yellow square
kanbans
, so there is nothing for 3 to work on now.
3 could maintain his machine, or see anyone needs help
3
2
3
2Slide27
How is this Different?
Processes can become idled (blocked) or starvedStarved: authorization (
kanban
card) but no
material
to work on
Blocked: material to work on, but no authorizationPainfully aware of problems in your system.Orange County Toyota– cleanest DC I’ve ever seenMaterial moves through the system so quickly no in-process recordkeeping is needed.3M consultant: if we thought computers would be better than paper, we would have used them. But we didn’t.Slide28
Importance of Flow
Ohno was very clear about this:
“Kanban is a tool for realizing just-in-time. For this tool to work fairly well, the process must be managed to flow as much as possible. This is really the basic condition. Other important conditions are leveling the product as much as possible, and always working in accordance with standard work methods.
-- Ohno, 1988, p. 3Slide29
Couldn’t Emulate GM
GM huge batches in huge factories
Land
extremely expensive
¥
223,000/m
2 = $186.52/SF = $8.1m/Acre (2011 Stats-Japan.com, conversion 2016)Tahoe-Regional Industrial Center (TRIC), 2016 $1.75/SFSprawling factories not an option
Internationaltravellermag.com
TeslaSlide30
7. Setup Reduction
Can’t afford to do huge runsHave to produce in small batches
Toyota Die Change: 3 hours down to 3
SMED: Single Minute Exchange of Dies
under ten minutes
Make Internal setups into External
Internal – process has to be stopped, ExternalExternal – process can still be runningEliminate Adjustments, Eliminate the Setup?Some setups bigger than others – printing dye colors
Continuous Process Improvement, anyone?Slide31
A contrasting opinion
“Inventory is not the root of all evil, inventory is the
flower
of all evil.
- Robert Inman,
General MotorsSlide32
Ask ‘Why’ 5 Times
5W = 1H1.
Why did the machine stop? Overload and fuse blew
2. Why the overload? Not lubricated
3. Why not lubricated? Oil pump not pumping?
4. Why not pumping? Pump shaft worn out.
5. Why worn out? No screen, scrap got inSlide33
5 WhysSlide34
All the Animals
Bage
l
Guster
Wade
HollySlide35
Preventative Maintenance
Unexpected loss of production is fatal to system and must be preventedAdditional maintenance can prevent downtime, or minimize length of interruptions, when they do occurSlide36
Capacity Buffers
System is inflexible, no inventory buffers, so to respond, need excess capacitySchedule less than 24 hours per day
‘Two-Shifting’ 4-8-4-8
Cross TrainingSlide37
Characteristics of JIT Partnershps
Few, nearby suppliersSupplier just like in-house upstream process
Long-term contract agreements
Steady supply rate
Frequent deliveries in small lots
Buyer helps suppliers meet quality
Suppliers use process control chartsBuyer schedules inbound freightSlide38
Supplier Relationships
American model: keep your nose out of my plant.
Gain info to force price cuts
Lack of trust between suppliers
Firm encourages suppliers to share knowledge, because they don’t worry about competing
Firm helps supplier increase quality, reduce costsSlide39
Summary
The environment can be a control - don’t take setups for granted
Operational details are very important (Ford, Carnegie)
Controlling WIP is important
Flexibility is an asset
Quality can come first
Continual improvement is necessary for survival