OPERATIONS MANAGEMENT-II

PRESENTED BY:-

LEAN SYSTEM
Eliminate waste Solve problems

Continuously improve operations

LEAN PRODUCTION
Doing more with ---

Less inventory
Fewer workers Less space

CUSTOMER ORDER

Waste

PRODUCT BUILT & SHIPPED

Time

CUSTOMER ORDER

PRODUCT BUILT & SHIPPED

Waste

Time (Shorter)

JUST IN TIME
Minimizing inventory
Smoothing the flow of material

LEAN PRINCIPLES
Define Value Customer Defined Identify Value Stream Follow the Product Flow the Product Eliminate Waste Pull the Product

Produce Just in Time for Demand

Strive for Perfection Continuous Improvement

ELEMENTS OF LEAN PRODUCTION

The main objective of lean production eliminate waste
ELIMINATE WASTE Increase flexibility Flexible resources Cellular layouts SMOOTH THE FLOW PULL SYSTEM KANBANS SMALL LOTS QUICK SETUPS UNINFORM PRODUCTION CONTINOUSLY IMPROVE QUALITY AT THE SOURCE SUPPLIER NETWORKS

FLEXIBLE RESOURCES
Perform more than one job. TOYOTA Eliminate waste concentrated on worker productivity. What The Effect was?
Reduce time to movement to other machines Reduce setup times for other machines

U-SHAPED DESIGN

PULL SYSTEM
Material is pulled through the system when needed Reversal of traditional push system where material is pushed according to a schedule Forces cooperation Prevent over and underproduction While push systems rely on a predetermined schedule, pull systems rely on customer requests

Push System

Raw material

Parts Manufacture

Assembly

Product

KANBANS
A card that corresponds to a standard quantity of production. The Toyota Production System (TPS) was established based on two concepts: The first is called "jidoka"(which can be loosely translated as "automation with a human touch") which means that when a problem occurs, the equipment stops immediately, preventing defective products from being produced; The second is the concept of "Just-in-Time," in which each process produces only what is needed by the next process in a continuous flow

UNIFORM PRODUCTION LEVELS

Result from smoothing production requirements on final assembly line Reduce variability with more accurate forecasts Smooth demand across planning horizon Mixed-model assembly steadies component production

Uniform Production Levels-- TOYOTA Several different vehicles models on each assembly line. Limited space and resources and lack of sufficient volume Daily production is arranged in the same ratio as monthly demand. Some quantity of even item is produced daily Always have some quantity of item available to respond to variations in demand

MARUTI PLANT

TATA PLANT

KAIZEN
Means continuous improvement. Eliminating all waste. Observation. Understand the problem. Commitment of the management. Poka-yoke or error proofing.

Pre-requisites for kaizen

Discard conventional fixed ideas. Dont make excuses. Correct it right away , if you make a mistake. Seek the wisdom of ten people rather than that of one. Think of how to do it , not why it cannot be done. Ask Why? five times.

JIDOKA
Andon cord Training & development

Physical fitness
Preference to engineers.

Ohnos Seven Wastes

Defects Over Production Waiting Transporting Movement Inappropriate Processing Inventory

TOTAL PRODUCTIVE MAINTENANCE .

GOAL

1. Increase production while, at the same time, increasing employee morale and job satisfaction.
2. Hold emergency & unscheduled maintenance to a minimum.
.

TOTAL PRODUCTIVE MAINTENANCE .

Why we need TPM ?

The major objectives of the TPM are listed as under :
1. 2. 3. 4. Avoid wastage in quickly changing environment. Reduce Cost of Manufacturing. Produce a low batch quantity at the earliest possible time. Goods send to Customers must be non defective

Why Get Lean?

Productivity improvements of

20-50% Set-up time reductions of 60-80% Inventory reductions of 40-75% Floor space reductions of 30-50% Reduced quality defects by 50-100% Improved safety performance of 30-60% More efficient office procedures Survival in the marketplace

The Toyota Production System(TPS)

Collaborative effort of Ohno , Sakichi , Kiichiro and Eiji.
Focus was on Reduction of cost through elimination of the waste. TPS consists of two parts : the hard or the technical part and the soft or people related part

Just In Time (JIT)

JIT was the foundation of the TPS. Underlying Principle :
Produce only the necessary products, at the necessary time and in the necessary quantity.

JIT governed Toyotas buy strategy.

 The concept of JIT was based on the

Reverse Reasoning
DEMAND ASSEMBLY DELIVERY OF PARTS SUPPLY BY SUPPLIER

Based on the PULL system of manufacturing and not on PUSH system.

Complexity of the process gave birth to the Kanban System.

Benefits of JIT
Reduction of direct and direct labor by eliminating non-value
added activities Reduction of floor space and warehouse space per unit of output Reduction of setup time and schedule delays as the factory becomes a continuous production process. Reduction is waste, rejects, and rework by detecting errors at the source. Reduction of lead time due to small lot sizes, so that downstream work centers provide feedback on quality problems. Better utilization of machines and facilities. Better relations with suppliers. Better integration of and communication between functions such as marketing, purchasing, design, and production. Quality control built into the process.

Toyota Production System

Just-in-Case (JIC) Involves the use of buffer or safety stock

Process A

Buffer or Safety Stock

Process B

Process C
Buffer or Safety Stock

Toyota Production System

Process A

Process B

Process C

Toyota Production System

Process A

Process B

Process C

Toyota Production System

Process A

Process B

Process C

Toyota Production System

Process A

Process B

Process C

Toyota Production System

Process A

Defect detected at Process B that actually occurred at Process A Process B

Process C

Toyota Production System

Smooth Flow Processing

Process A

Process B

Process C

Toyota Production System

Smooth Flow Processing

Process A

Process B

Process C

Defect is detected and countermeasures are taken immediately