Recap Lecture 6

Goal Policy Deployment

Kaizen
6 Sigma
Triz
ELIMINATE
WASTE
SPEED
ELIMINATE
VARIATION
QUALITY
CUSTOMERSATISFACTION
SMED
Lean Manufacturing/Operations
Establishing Flow
SMED
S.M.E.D. was developed nearly a half a century ago, by
Shigeo Shingo.

His philosophy was that all Stamping Dies could be
changed over in less than 10 minutes, (9:59 or less);
hence the term, Single Minute, or Single Digit
Minute.

Today, Assembly Fixtures, CNC Machinery, Stamping
Machines, etc. are all benefiting from this concept.
Origin
Lean Manufacturing/Operations
Establishing Flow
SMED
The traditional solution to overcome long set up times was
to run larger batches.
eg. The process takes 4 hours to set up:
Batch size 1,000
Time/piece 0.24min
Batch size 10,000
Time/piece 0.024min
eg. one eg. two
Why
Lean Manufacturing/Operations
Establishing Flow
SMED
Unfortunately this increases warehouse stocks and
increased the overall product cost
EBQ
Set Up
Cost
Stock
Cost
Batch Size
Cost
Why
Lean Manufacturing/Operations
Establishing Flow
SMED
We therefore resorted to calculating the batch size that gave us
the lowest overall cost. EBQ (Economical Batch Quantity).
The problem with this approach was that it ignored the quantity
required by our customers.
This problem has been further complicated by our customers
demanding a larger variety of products supplied more
frequently in smaller quantities.
What was once an order for a quantity of 10,000 component A,
has now become;

2,000 part A1 - 2,000 part A2 - 2,000 part A3 - 2,000 part A4

Why
Lean Manufacturing/Operations
Establishing Flow
SMED
If we are not to spend all our time setting up, the only way to
respond to our customers needs is to drastically reduce set up
time.
If we could reduce our set up time from 4 hours to 15 minutes
what would happen:
Batch size A 10,000
Original set up time 4 hours
Batch A1 2,000 15min
A2 2,000 15min
A3 2,000 15min
A4 2,000 15min

New set up time 15 minutes
Change
Time/piece = 0.024 mins. Time/piece = 0.006 mins.
Not only have we satisfied our customers new requirements
we have also reduced the cost of each component.
Why
Lean Manufacturing/Operations
Establishing Flow
SMED
Our new lower set up time is also not very sensitive to batch
size changes. eg.
4 hours set up
5,000 batch time/piece .048
10,000 .024
saving .024min
15 minutes set up
1,000 batch time/piece .015
500 .030
saving .015 min

With our new setup time we can produce a batch of 500
pieces at a lower cost than a batch of 5,000 pieces using the
old method.
But the most important change is we can now run the
batch sizes that our customer requires
Why
Lean Manufacturing/Operations
Establishing Flow
SMED
Why
Another example illustrates how this affects our delivery
times to our customers.
Lets assume.
We have 10 customers (A,B,C,D,E,F,G,H,I,J)
Each of them uses 1,000 parts/week
Our delivery time to customer is 5 weeks
Each customer orders in batches of 5,000
Our production capacity is 10,000/week
Lean Manufacturing/Operations
Establishing Flow
SMED
Why
Batches of 5,000
OLD SYSTEM FACTORY
Production We deliver
Week 1 customer A 5,000
customer B 5,000
Week 2 customer C 5,000
customer D 5,000
Week 3 customer E 5,000
customer F 5,000
Week 4 customer G 5,000
customer H 5,000
Week 5 customer I 5,000
customer J 5,000
Week 6 customer A 5,000
customer B 5,000
Batches of 1,000
NEW SYSTEM FACTORY
Production We deliver
Week 1 customer A 1,000
customer B 1,000
customer C 1,000
customer D 1,000
customer E 1,000
customer F 1,000
customer G 1,000
customer H 1,000
customer I 1,000
customer J 1,000
Week 2 customer A 1,000
customer B 1,000
Lean Manufacturing/Operations
Establishing Flow
SMED
Why
In the second situation all our customers receive their
products every week.
If you were one of these customers, which factory would
you choose as your supplier
Another beneficial effect is the smoothing effect it has on
our activities
Lean Manufacturing/Operations
Establishing Flow
SMED
Why
A
B
D
E
F
G
H
I
J
K
Week 1 Week 2 Week 3 Week 4 Week 5
Old system every week is different
S
u
p
p
l
i
e
r
s
Lean Manufacturing/Operations
Establishing Flow
SMED
A
B
D
E
F
G
H
I
J
K
New system every week is the same
Why
S
u
p
p
l
i
e
r
s
Weekly output
Mon Tue Wed Thu Fri
Lean Manufacturing/Operations
Establishing Flow
SMED
Whilst the smoothing effect is a major advantage to our
factory, the main benefit is that we can now respond to our
customers on a weekly basis. Instead of the 5 weekly cycle
Why
Lean Manufacturing/Operations
Establishing Flow
SMED
Select the team, (experts & technicians)
Make the set up changeover visible, map or flow chart
the process supplemented with a video of the process.
Method
STEP DESCRIPTION
TIME
elapsed step
Bar chart individual steps
10 20 30 40 50 60 70 80 90
Lean Manufacturing/Operations
Establishing Flow
SMED
Use a checklist to establish and Identify which elements
of the process are worked on whilst the machine tool is
stopped (internal set up) from elements that can be
done whilst the machine is operating (external set up).
Perform function checks on all parts to avoid delays
during set up.
Improve equipment transportation of Fixtures, Dies etc.
Separate Internal from External Elements
Method
Lean Manufacturing/Operations
Establishing Flow
SMED
By analysis and brainstorming.
Eliminating adjustments.
Simplifying attachments.
Palletisation.
Pre-heating.
Standardisation.
Convert Internal Elements to External Elements
Method
ELIMINATE COMBINE SIMPLIFY
5 WHYS
Lean Manufacturing/Operations
Establishing Flow
SMED
Look for additional improvements:

Method
Is everything available when its needed. (5s)
Is everything working correctly. (TPM)
Clamping without screws

ELIMINATE COMBINE SIMPLIFY
5 WHYS
Lean Manufacturing/Operations
Establishing Flow
SMED
Ordinary bolt versus interrupted thread

Lean Manufacturing/Operations
Establishing Flow
SMED
Industry Equipment Before After %
Assembly Adhesive Applicator 12:09:00 0:21:00 97%
Assembly Air Cleaner Assembly 2:00:00 0:00:00 100%
Brake Mfg Briquette Press 1:05:00 0:12:00 82%
Brake Mfg Drill Machine 0:35:00 0:05:00 86%
Brake Mfg Segment Drill 12:00:00 1:12:00 90%
Cosmetics Capper Machine 0:09:36 0:03:21 65%
Electronics PCB Inserion-ICs 0:13:30 0:05:56 56%
Electronics PCB Insertion-Axial 0:05:18 0:04:18 19%
Electronics PCB Insertion-Radial 0:54:12 0:05:06 91%
Foundry Molding Machine 0:10:00 0:06:12 38%
Metal Cutting Casting Drill 1:00:00 0:09:00 85%
Metal Cutting CNC MILLING 2:00:00 0:00:00 100%
Metal Cutting FADAL HMC 1:45:00 0:15:20 85%
Metal Fab 40 Ton Press 0:48:00 0:04:00 92%
Metal Fab 750 Ton Hyd Press 2:10:00 0:42:00 68%
Lean Manufacturing/Operations
Establishing Flow
SMED
Metal Fab 800 Ton Press 6:00:00 0:10:00 97%
Metal Fab Aluminum Extruder 1:09:00 0:02:12 97%
Metal Fab Brake Press 0:37:00 0:04:00 89%
Metal Fab Draw Press 1:30:00 1:00:00 33%
Metal Fab Edge Trim Press 0:24:00 0:04:00 83%
Metal Fab Pilot Change-Muffler Press 0:07:00 0:00:15 96%
Packaging Flex Packaging Line 3:00:00 0:10:00 94%
Paper Sheeting 0:03:00 0:00:36 80%
Pharmaceutical Centrifuge 0:12:00 0:02:12 82%
Plastics 250 Ton Injection Molder 1:06:00 0:09:12 86%
Plastics Injection Molder 2:30:00 0:06:00 96%
Plastics Injection Molder 2:00:00 0:03:00 98%
Printing Kidder 6-Color Web Press 4:20:00 1:10:00 73%
Printing Press Make Ready 9:30:00 4:20:00 54%
Wood Router 0:09:00 0:01:18 86%
Industry Equipment Before After %
Lean Manufacturing/Operations
Establishing Flow
SMED
Benefits
Reduced inventory levels
Increased productivity
Increased agility to more rapid response to demand
changes
Increased machine capacity
Reduced non-conformance due to standardisation
Lower setting skills required
Kan Ban
Lean Manufacturing/Operations
Establishing Flow
KanBan
The literal translation of KanBan is visible record or visual
plate, but in general this is now taken to mean a card.
It is a method of synchronising a production system and
controlling inventory using standard containers for parts,
each of which has a card detailing what to produce and
when.
It is often associated with The Toyota Motor Company whose
production system, developed by Taichi Ohno, incorporates
these methods. However, it is generally recognised that these
principles were first used by companies in the USA & UK, in
the form of single & dual card pull systems.

Lean Manufacturing/Operations
Establishing Flow
Schedule Flow
The pull system is customer focused
Promotes process improvement
Leads to a decrease in stock levels
Regulates product flow
Promotes information flow
Benefits
Lean Manufacturing/Operations
Establishing Flow
Schedule Flow
Drawbacks ?
A basic premise of JIT pull mechanisms is to expose
problems & inefficiencies. Requiring immediate action
to address them.
Machine
Breakdowns
Set up Time
Problems
Rework
Volumes
Work-Load
Imbalances
Inventory
Reduction
Lean Manufacturing/Operations
Establishing Flow
Schedule Flow
The Toyota Production System is:

80% Waste elimination
15% Production system
5% KanBan Quote: Production Manager
Toyota, Burneston
Health Warning
You must eliminate most of the waste and make
fundamental improvements in your production system
before techniques like KanBan can be of any help
A KanBan system will magnify existing problems
KanBan is a means to achieve just in time manufacture
Lean Manufacturing/Operations
Establishing Flow
Schedule Flow
KanBan Signal
Work / Job
KanBan Signal
Work / Job
The KanBan Railway
Lean Manufacturing/Operations
Establishing Flow
Schedule Flow
Supplier Cell 1 Cell 2 Cell 3
Final
Assembly
Customer
Material Flow
KanBan Signal
Lean Manufacturing/Operations
Establishing Flow
Kan Ban
A Kanban is a display card containing all
the information required to be done on a
product at each stage along its path to
completion and which parts are needed at
subsequent processes. These cards are
used to control work-in-progress (W.I.P.),
production, and inventory flow.
TAKT Time
Lean Manufacturing/Operations
Establishing Flow
TAKT Time
"Takt" is the German word for the baton that an orchestra
conductor uses to regulate the speed, beat or timing at
which musicians play.
So Takt Time is "Beat Time"? "Rate Time" or Heart Beat"
Lean Production uses Takt Time as the rate or time that a
completed product is finished.
If you have a Takt Time of two minutes that means every two
minutes a complete product, assembly or machine is
produced off the line. Every two hours, two days or two
weeks, whatever your customer requirement rate, is your
Takt Time.

Definition
Lean Manufacturing/Operations
Establishing Flow
TAKT Time
Takt time is nothing to do with how long a
task takes.
Takt time is how long you have
If you dont meet the TAKT time, you will fail
your customer
Definition
TAKT time =
Time available
Customer requirement
Lean Manufacturing/Operations
Establishing Flow
TAKT Time
Calculation e.g.
Time available, (Ace Manufacturing Co Ltd)
Monday start time 07- 00am to Friday 10- 00pm (3 shifts) = 111hrs
The 111 hrs is reduced by :
Meal Breaks
Shift changeover
Personal needs
Meetings etc.
The industry
accepted norm is
25% reduction.
However, if you have
access to the real
data then use it
Add current / proposed overtime, e.g. 15%
111hrs 25% + 15% x 60 (mins) = 5745mins / week
Total time available is 5745mins / week
25%
Lean Manufacturing/Operations
Establishing Flow
TAKT Time
Calculation e.g. (cont.)
To find resource TAKT time =
Schedule of orders x visits to a machine or resource
AB12345, with a schedule of 20 / 4 week period (5/wk- 1/day)
Each part visits a V.D.F. lathe 3 times during manufacture
Time available
Customer requirement
5745 x 4 weeks
20 x 3
22980 mins
60
= =
TAKT time for AB12345 = 383 minutes
Lean Manufacturing/Operations
Establishing Flow
TAKT Time
Calculation e.g. (cont.)
Now lets assume:
ABC12345 20 / 4 week period x 3 visits to V.D.F. = 60 parts
ADX12358 20 / 4 week period x 1 visit to V.D.F. = 20 parts
BCT78733 20 / 4 week period x 2 visits to V.D.F. = 40 parts
CXY19999 20 / 4 week period x 4 visits to V.D.F. = 80 parts
BAR20000 32 / 4 week period x 5 visits to V.D.F. = 160 parts
BBB33353 127 / 4 week period x 3 visits to V.D.F. = 381 parts
Total = 741 parts
5745 x 4
741
TAKT time 31 minutes = =
Lean Manufacturing/Operations
Establishing Flow
TAKT Time
Calculation e.g. (cont.)
In the absence of real data on time taken to machine the parts,
Standard Time Hour (STH) will have to be used to calculate the
average machining time
Assume ave. machining time is 2hr. 20mins. for the range of
parts.
To calculate average machining time / shift:
Average machining time
TAKT time
140 mins.
31
= =
4.5 machines
required / shift
If one man one machine then 4.5 men/shift also required
Lean Manufacturing/Operations
Establishing Flow
TAKT Time
Calculation e.g. (cont.)
10
5
15
25
20
30
35
0
M
i
n
u
t
e
s

x

1
0
0
0

V.D.F. Reciept Mill Grind Inspect
4 week period
(using actual data)
TAKT time
ABC12345
ADX12358
Set up
Set up
ABC12345
ADX12358
Set up
Set up
Plot
Actual
Times
?
Lean Manufacturing/Operations
Establishing Flow
TAKT Time
Benefits
No over make fields full of cars, warehouses waiting
for customers
Satisfied customer he gets what he wants when he
wants it with no arrears
Reduced non-conformance - hidden in large batches
Production stability - prevents build up of inventory
and the subsequent stops and starts.
Lean Manufacturing/Operations
Establishing Flow
TAKT Time
Psychological - immediate feedback of performance is a
powerful motivator. When a workcell team tracks takt
time, they have a heightened awareness of output rates
and potential problems.
Workcell Design- Takt time helps cell designers. In an
ideal workcell, all tasks are balanced.
Benefits (cont)
Lean Manufacturing/Operations
Establishing Flow
TAKT Time
Special cause variation - Takt-times do not take tooling
changes and machine breakdowns etc. into consideration
Should be applied across the whole value stream
Applying Takt time and One Piece Flow to a mix that is
unsuitable.
Limitations !
Lean Manufacturing/Operations
Understanding the Process
C
G. Robinson
Reading materials:
The New Manufacturing Challenge
Kyioshi Suzaki isbn 0-02-932040-2
Chapter 3 pages 32 to 44

KanBan is often seen as a central element of Lean manufacturing and is probably the
most widely used type of Pull signaling system. Kanban stands for Kan = card, Ban =
signal and as you probably guessed, is of Japanese origin.
Simply described a pull production system it controls the flow of work through a factory
by only releasing materials into production as the customer demands them i.e. only when
they are needed. A push system on the other hand would release material into production
as customer orders are processed and material becomes available, MRP (Material
Requirement Planning / Manufacturing Resource Planning) systems are typically push
systems. What must be made clear at this point is that Kanban is not a scheduling system
but rather a production control system.
The concept of Kanban cards (or other indicators) have been around for many years, in fact
the two bin system was used in the UK long before Japanese manufacturing
methodologies started to be come popular in the 1970s. Whatever the origins, or who the
inventors, a Kanban system is generally easy to understand, simple to visualise and
comparatively easy to set-up. Kanban systems are commonly used within the automotive
industry where there is a stable demand and flow. Other such stable manufacturing
environments will also likely benefit from a Kanban system.
Many companies we visit would not describe themselves as having a stable demand of any
particular product, in fact the opposite is quite often the case, high product variety and low
volumes. In these circumstances a Kanban system may not be suitable for the entire
production process but there are probably sub areas where a Kanban system of one form
or another will aid production planning and material control. Ideally the work carried out by
the operations covered by the Kanban should also be as well balanced as possible.
There are a number of different Kanban flavours or variants, we will concentrate on one of
the the simplest forms.
Kan Ban
What is Takt Time?
"Takt" is the German word for the baton that an orchestra conductor uses to regulate the speed, beat or timing at
which musicians play. So Takt Time is "Beat Time"? "Rate Time" or Heart Beat" Lean Production uses Takt Time as
the rate or time that a completed product is finished. If you have a Takt Time of two minutes that means every two
minutes a complete product, assembly or machine is produced off the line. Every two hours, two days or two weeks,
whatever your sell rate is that is your Takt Time.

How is Takt Time established?
The customers buying rate establishes Takt Time. It's the rate at which the customer buys your product. So this
means that over the course of a day, week, month, or year the customers you sell to are buying at a rate of one every
two minutes.

What happens if the customers buy fewer products?
You can't predict when and how much a customer will buy. But if customer demand falls for an extended period of
time then the Takt time should change. This means that if your producing at a Takt Time of one every two minutes
and the customers demand fall to a rate of one every 3 minutes. Then your takt Time should increase or become
more. Your Takt Time should increase to 3 minutes and production staffing should be set accordingly.

What happens if the customers buy more?
Then your Takt Time will decrease. You would lower your Takt Time to make more products in a shorter amount of
time. This means if your customers buy more than your 2 minute Takt Time. Then you would lower your Takt Time to
match the sell rate and increase capacity accordingly.

Producing to Takt Time with optimal staffing is where you wan t to be. Where you have the right amount of people to
produce your product within your established Takt Time. The Operators cycle times are loaded to Takt Time.

Imbalances in Takt Time, especially in older facilities, drive security inventories and buffer space. If you manage such
a facility, one step on "the Lean Journey" is to monitor Summed Takt in order to move toward preventive (rather than
reactive) quality measures. That is, if you can detect, contain, and correct a problem within Takt + Buffer Time
(Summed Takt) then you have taken a step toward Error Proofing. This is no substitute for continuously improving a
balanced Takt Time (thereby eliminating security inventory / buffering) but, rather, it is a first step which you can
institute quickly and economically and which will help the people begin to "see" Lean.

TAKT TIME