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McGraw-Hill/Irwin ©2009 The McGraw-Hill Companies, All Rights Reserved 1-1


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Chapter 12

Lean Manufacturing

McGraw-Hill/Irwin ©2009 The McGraw-Hill Companies, All Rights Reserved 1-2


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Learning Objectives
After completing the chapter you will:
• Learn how a production pull system
works
• Study Toyota Production System
concepts
• Learn about how value stream mapping
can be used to identify wasteful activities
• See how Kanban cards can be used to
control a pull system
• Understand how to accomplish lean
production
• See examples of lean concepts applied
to service systems 1-3
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Lean Production

• Lean Production can be defined as


an integrated set of activities
designed to achieve high-volume
production using minimal
inventories (raw materials, work in
process, and finished goods)
• Lean Production also involves the
elimination of waste in production
effort
• Lean Production also involves the
timing of production resources
(i.e., parts arrive at the next
workstation “just in time”)

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The Toyota Production System

Based on two philosophies:


1. Elimination of waste

2. Respect for people

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Elimination of Waste

1. Focused factory networks


2. Group technology
3. Quality at the source
4. JIT production
5. Uniform plant loading
6. Kanban production control
system
7. Minimized setup times
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Minimizing Waste:
Focused Factory These are small specialized
Networks plants that limit the range
of products produced
(sometimes only one type of
product for an entire
facility)

Some plants in
Japan have as
Coordination few as 30 and as
System Integration many as 1000
employees

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Minimizing Waste: Group Technology (Part 1)

Note how the flow lines are going back and forth
• Using Departmental Specialization for plant layout can cause a
lot of unnecessary material movement

Saw Saw Saw Grinder Grinder

Heat Treat

Lathe Lathe Lathe Press Press Press

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Minimizing Waste:
Group Technology (Part 2)

• Revising by using Group Technology Cells can reduce movement


and improve product flow

Grinder
1 2
Saw Lathe Lathe Press

Heat Treat

Grinder
Saw Lathe A B Lathe Press

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Minimizing Waste:
Uniform Plant Loading (heijunka)

Suppose we operate a production plant that produces a single


product. The schedule of production for this product could be
accomplished using either of the two plant loading schedules
below.

Not uniform Jan. Units Feb. Units Mar. Units Total


1,200 3,500 4,300 9,000
or

Uniform Jan. Units Feb. Units Mar. Units Total


3,000 3,000 3,000 9,000
How does the uniform loading help save labor costs?
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Minimizing Waste: Inventory


Hides Problems

Example: By
identifying defective
Machine
downtime
items from a vendor
early in the
Scrap Vendor production process
Work in delinquencies Change the downstream work
orders
process is saved
queues Engineering design Design
(banks) redundancies backlogs

Example: By
Paperwork Inspection Decision identifying defective
backlog backlogs backlogs work by employees
upstream, the
downstream work is
saved
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Minimizing Waste: Kanban Production Control Systems


This puts the
system back
Once the Production kanban is
Withdrawal were it was
received, the Machine Center
kanban before the item
produces a unit to replace the
was pulled
one taken by the Assembly Line
people in the first place

Storage Storage
Machine Part A Part A Assembly
Center
Line

Production kanban
Material Flow
The process begins by the Assembly Line
people pulling Part A from Storage Card (signal) Flow
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Determining the Number of Kanbans Needed

• Setting up a kanban system


requires determining the number
of kanbans cards (or containers)
needed
• Each container represents the
minimum production lot size
• An accurate estimate of the lead
time required to produce a
container is key to determining
how many kanbans are required

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The Number of Kanban Card Sets

Expected demand during lead time  Safety stock


k
Size of the container

DL (1  S )

C
k = Number of kanban card sets (a set is a card)
D = Average number of units demanded over some time
period
L = lead time to replenish an order (same units of time as
demand)
S = Safety stock expressed as a percentage of demand
during leadtime
C = Container size
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Example of Kanban Card Determination: Problem Data

• A switch assembly is assembled in


batches of 4 units from an
“upstream” assembly area and
delivered in a special container to a
“downstream” control-panel
assembly operation
• The control-panel assembly area
requires 5 switch assemblies per hour
• The switch assembly area can
produce a container of switch
assemblies in 2 hours
• Safety stock has been set at 10% of
needed inventory
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Example of Kanban Card Determination: Calculations

Expected demand during lead time Safety stock


k 
Size of the container

DL(1 S ) 5(2)(1.1)
   2.75, or 3
C 4

Always round up!

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Respect for People

• Level payrolls

• Cooperative employee unions

• Subcontractor networks

• Bottom-round management style

• Quality circles (Small Group


Involvement Activities or SGIA’s)

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Toyota Production System’s Four Rules

1. All work shall be highly specified as to


content, sequence, timing, and
outcome

2. Every customer-supplier connection


must be direct, and there must be an
unambiguous yes-or-no way to send
requests and receive responses

3. The pathway for every product and


service must be simple and direct

4. Any improvement must be made in


accordance with the scientific method,
under the guidance of a teacher, at the
lowest possible level in the
organization 1-18
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Lean Implementation Requirements: Design Flow Process

• Link operations
• Balance workstation capacities
• Redesign layout for flow
• Emphasize preventive maintenance
• Reduce lot sizes
• Reduce setup/changeover time

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Lean Implementation Requirements: Total Quality Control

• Worker responsibility

• Measure SQC

• Enforce compliance

• Fail-safe methods

• Automatic inspection

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Lean Implementation Requirements: Stabilize Schedule

• Level schedule

• Underutilize capacity

• Establish freeze windows

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Lean Implementation Requirements: Kanban-Pull

• Demand pull

• Backflush

• Reduce lot sizes

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Lean Implementation Requirements: Work with Vendors

• Reduce lead times

• Frequent deliveries

• Project usage requirements

• Quality expectations

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Lean Implementation Requirements: Reduce Inventory More

• Look for other areas

• Stores

• Transit

• Carousels

• Conveyors

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Lean Implementation Requirements: Improve Product Design

• Standard product configuration

• Standardize and reduce number


of parts

• Process design with product


design

• Quality expectations
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Lean Implementation Requirements: Concurrently Solve


Problems

• Root cause

• Solve permanently

• Team approach

• Line and specialist responsibility

• Continual education

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Lean Implementation Requirements: Measure Performance

• Emphasize improvement
• Track trends

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Lean in Services (Examples)

• Organize Problem-Solving
Groups

• Upgrade Housekeeping

• Upgrade Quality

• Clarify Process Flows

• Revise Equipment and Process


Technologies

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Lean in Services (Examples)

• Level the Facility Load

• Eliminate Unnecessary Activities

• Reorganize Physical
Configuration

• Introduce Demand-Pull
Scheduling

• Develop Supplier Networks


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End of Chapter 12

McGraw-Hill/Irwin ©2009 The McGraw-Hill Companies, All Rights Reserved 1-30

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