Lean Enterprise Academy 2005

Ian Glenday and Rick Sather

Lean Enterprise Academy 2005

Breaking ThroughTo Flow

Lean Enterprise Academy 2005

What is

LEAN?

Lean Enterprise Academy 2005

LEAN =

• Creating flow in the value stream

• Eliminating waste (=muda)

Lean Enterprise Academy 2005

Toyota Lean Model

Lean Enterprise Academy 2005

Production Levelling or Heijunka

mixed sequence one piece flow matched to market pullthroughTAKT time

= PERFECT FLOW

Lean Enterprise Academy 2005

Production Levelling or Heijunka

= Foundation of Lean

Therefore essential to beinga truly Lean Enterprise

BUT HOW TO DO IT ?

Lean Enterprise Academy 2005

• Final step in the process, not how Toyota started

• What you see is different to how it was achieved

• Need to know the “secret” of how it was done

Lean Enterprise Academy 2005

Supply Chain Logic IssueBuffer Tank

Lean Enterprise Academy 2005

Supply Chain Logic Issue

Result:

• A different plan every time

Lean Enterprise Academy 2005

Supply Chain Logic IssueConsequences:

• Increased fixed costs• Increased communication • Increased risk

High chance somethingwill go wrong resulting in:

Lean Enterprise Academy 2005

Lean Enterprise Academy 2005

Does your businessesever make

short term plan changes?

Lean Enterprise Academy 2005

What impact do short term plan changes have on:

- People- Continuous improvement- Customer service- Efficiencies & costs

Lean Enterprise Academy 2005

Supply Chain Logic IssueDifferent

plansThings

go wrong

More

wasteMore

Change-overs

Finish Good

shortages

Unplanned

changes

Loss of

capacity

Lean Enterprise Academy 2005

Current supply chain logic:• Creates peaks & troughs

Also responsible for creating:• Different plans• Short term plan changes

Yet still the fundamental supply chain Yet still the fundamental supply chain logic used in many (most?) logic used in many (most?)

companiescompanies

Summary

Lean Enterprise Academy 2005

• Real buffer tank

• Same logic as:– SPC– SQC

Alternative logic

Lean Enterprise Academy 2005

• Continuously produce all products• Not see level in buffer tank

Implications?

Clearly RIDICULOUS !

Alternative logic

Lean Enterprise Academy 2005

PARADIGM

What today seems impossible to do

but

if it could be done

would fundamentally change what you do.

Lean Enterprise Academy 2005

PARADIGM SHIFT

A change from one of thinking to another.

It’s a revolution, a transformation,a sort of metamorphosis.

It doesn’t just happen but is driven byagents of change.

Lean Enterprise Academy 2005

• Understanding levelled production– Steps of heijunka

Lean Enterprise Academy 2005

Steps for implementing Heijunka

- starting point Monthly Production

• One batch per month per product

• Min. change overs• Max. batch sizes

Lean Enterprise Academy 2005

Steps for implementing Heijunka

- step 1 Twice Monthly Production

• Halve batch sizes• Identical sequence• Two cycles• Every Product

Every Cycle

Lean Enterprise Academy 2005

Steps for implementing Heijunka

- step 2 Weekly Production

• Halve batch sizes• Identical sequence• Every Product

Every Week

Lean Enterprise Academy 2005

Steps for implementing Heijunka

- step 3 Daily Production• One batch per day• Identical sequence• Every product

every day

Lean Enterprise Academy 2005

Steps for implementing Heijunka

- step 3 Daily Production• One batch per day• Identical sequence• Every product

every day

Continuous production of all products

Lean Enterprise Academy 2005

SUSPEND YOUR SCEPTICISM !!

• That’s all very well for Toyota

• Wonderful in theory but not practical

• It would never work in our business

• Every Product Every Cycle – ridiculous when we make over a thousand SKU’s

Lean Enterprise Academy 2005

Steps for implementing Heijunka

Remainingsteps of heijunka

Lean Enterprise Academy 2005

Steps for implementing Heijunka

- step 4 Fixed Volume Production

• Daily multiple batches of same product at a fixed size

• Fixed sequence broken

Lean Enterprise Academy 2005

Steps for implementing Heijunka

- step 5 Synchronised Production• Batch sizes of one =

One piece flow• Mixed stream • Synchronised to

market pull through takt time

Lean Enterprise Academy 2005

mixed sequence one piece flow matched tomarket pull through TAKT time

However:

Every Product Every Cycle=

Supporting structure to achieve it

Objective of Levelled Production is:

Summary

Lean Enterprise Academy 2005

EVERY PRODUCTEVERY CYCLE

- Counter-intuitive

- In conflict with “traditional” views of efficiency

Lean Enterprise Academy 2005

ECONOMIES

OF

REPETITION

Making the apparently impossible

POSSIBLE !

Lean Enterprise Academy 2005

Economies of Repetition

• Repetitive Flexible Supply game

• Happens in actual implementation

• Reason why EPEC has to be EVERY

• Three separate aspects

Lean Enterprise Academy 2005

Economies of Repetition

• Learning Curve

• Routines

• Clear objective– Stimulate skills & inventiveness – Clear goals are motivating – “Just do better” is de-motivating

Lean Enterprise Academy 2005

Consequences & BenefitsEconomies of repetition• Higher efficiencies• Better product quality• Less waste• Greater teamwork• Clearer responsibilities• Less fixed costs

EPEC• Routine JIT deliveries• Lower stocks• Creating mtl flows easier• Reduced lead-time• Better TPM• Greater flexibility• Increase customer

service

Lean Enterprise Academy 2005

Economies of RepetitionFasterEPEC

- Learning curve- Routines- Clear objectives

Economiesof

Repetition

NaturalContinuous

improvement

AboveExpectation

results

Lean Enterprise Academy 2005

Economies of Repetitionfine in theory, but………

can’t do Every Product Every Cycle with current plant & equipment

therefore…….

won’t get Economies of Repetition !

Lean Enterprise Academy 2005

Getting started with

Every Product Every Cycleand

Levelled Production