Lean Production Systems

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall

08- 01

What is a Lean System?

Lean Systems Operations systems that maximize the value added by each of a companys activities by

removing waste and delays from them.

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall

08-02

Eight Types of Waste or Muda

1. Overproduction (Making
product before it is needed)

5. Motion (Unnecessary effort)

2. Inappropriate Processing 6. Inventory (Excess

(Using expensive equipment when simple machines would suffice) Inventory)

3. Waiting (Wasted time when

product is not being processed)

7. Defects (Result in rework &

scrap. Add wasteful costs)

4. Transportation (Excessive
handling of product)

8. Underutilization of Employees (Failure to

learn from employees)

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08 - 03

Continuous Improvement Kaizen

Excess capacity or inventory hides underlying problems with the processes

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08 -04

Lean Systems Supply Chain Considerations

Lean systems help to reveal problems by systematically lowering capacities or inventories until the problems are exposed. Look for ways to improve efficiency throughout the supply chain.

Close Supplier Ties

Look for ways to improve efficiency and reduce inventories throughout the supplier chain

Small Lot Sizes

Single-digit setup (A setup time less than 10 minutes)
Lean systems use lot sizes that are as small as possible
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Process Considerations
Pull Method of
WorkflowCustomer demand activates the production of a good or service item.

Push Method Using

forecasts of demand and producing the item before the customer orders it.
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Process Considerations
Quality at the Source
Defects are caught and corrected where they are created

Jidoka
Mistake-proofing methods

Poka-Yoke
(minimize human error)
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Process Considerations
Uniform Workstation Loads
Takt time (Cycle time matching production rate to sales) Heijunka
The leveling of production load by both volume and product mix (same amount made each day)

Mixed-model assembly
(producing a mix of models in smaller lots)

Standardized Components and Work Methods (Standardization of common components)

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Process Considerations
Flexible Workforce
(Perform more than one job)

Automation
(A key to low cost operations)

5S (Methodology for waste

reduction)

Total Preventative Maintenance - TPM

(Reduce machine downtime)
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5S

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08 - 10

Toyota Production System

1. All work should be specified as to content, sequence, timing, and outcome. 2. All customer-supplier connections should be direct and unambiguous. 3. All pathways should be simple and direct. 4. All improvements should be made under the guidance of a teacher using the scientific method.
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House of Toyota

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08- 12

One-Worker, Multiple Machines

Flexibility / Cellular Production

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08- 13

Group Technology
Jumbled Flows without GroupTech.

Lines Flows with 3 Group Technology cells

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What is a Value Stream Mapping?

Value Stream Mapping
A qualitative lean tool for eliminating waste or muda that involves a (1) current state drawing, a (2) future state drawing and an (3) implementation plan.

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08- 15

Value Stream Mapping Metrics

Takt Time
Cycle time needed to match the rate of production to the rate of sales or consumption.
Daily availability/Daily Demand

Cycle Time
The average time between completed units taking into account all resources available at a process step.

Processing Time
The time to complete one unit.
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What is a Kanban?
Kanban
A Japanese word meaning card or visible record that refers to cards used to control the flow of production through a factory
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The Kanban System

Receiving post Kanban card for product 1 Kanban card for product 2
Storage area

Empty containers
O2

Assembly line 1

Fabrication cell
O1 O3

Assembly line 2
O2

Full containers

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08- 18

The Kanban System

Receiving post Kanban card for product 1 Kanban card for product 2 Storage area

Empty containers

O2

Assembly line 1

O1

Fabrication cell

O3

O2

Full containers

Assembly line 2

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall

08- 19

The Kanban System

Receiving post Kanban card for product 1 Kanban card for product 2

Storage area

Empty containers

O2

Assembly line 1

O1

Fabrication cell

O3

O2

Full containers

Assembly line 2

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall

08- 20

The Kanban System

Receiving post Kanban card for product 1 Kanban card for product 2

Storage area

Empty containers Assembly line 1

O2

Fabrication cell
O1 O3 Full containers

Assembly line 2

O2

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall

08- 21

The Kanban System

Receiving post Kanban card for product 1 Kanban card for product 2 Storage area

Empty containers Assembly line 1

O2

O1

Fabrication cell

O3

Assembly line 2
O2

Full containers

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall

08- 22

The Kanban System

Receiving post Kanban card for product 1 Kanban card for product 2 Storage area

Empty containers Assembly line 1

O2

O1

Fabrication cell

O3

Assembly line 2
O2

Full containers

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall

08- 23

The Kanban System

Receiving post Kanban card for product 1 Kanban card for product 2 Storage area

Empty containers Assembly line 1

O2

O1

Fabrication cell

O3

Assembly line 2
O2

Full containers

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08- 24

The Kanban System

1. Each container must have a card.
2. Assembly always withdraws from fabrication (pull system). 3. Containers cannot be moved without a kanban. 4. Containers should contain the same number of parts.

5. Only good parts are passed along.

6. Production should not exceed authorization.
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Number of Containers
Two determinations
1. Number of units to be held by each container 2. Number of containers Littles Law
o Average work-in-process inventory equals the average demand rate multiplied by the average time a unit spends in the manufacturing process

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08 - 26

Other Kanban Signals

Container System
Using the container itself as a signal device. Works well with containers specifically designed for parts.

Containerless System
Using visual means in lieu of containers as a signal device. Examples: a painted square on a workbench = one unit.
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Organizational Considerations
The Human Costs of Lean Systems (When
combined with Statistical Process Control, some systems may make workers feel stressed)

Cooperation and Trust (The workforce and

management must be willing to trust each other and cooperate in order to achieve their goals)

Reward Systems and Labor Classification

(Former reward systems and labor contracts may have to be revamped in order for lean systems to perform effectively)
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Process Considerations
Inventory and Scheduling
Schedule Stability (High-volume lean systems cannot
respond quickly to scheduling changes)

Setups (Lean systems use small lot sizes, but that

requires a large number of setups)

Purchasing and Logistics (Frequent, small shipments

of materials from suppliers must be arranged in order to realize large inventory savings)

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08 - 29