1OPNS 430- Savaskan

Lean Operations (JIT) Module

• House Building Game• The transition to Lean Ops

• The Paradigm of Lean Operations: The ideal• Basic philosophy of Lean Ops

• Methods for synchronization & waste reduction

• Approaching the ideal with Product Variety: TPS• Managing variety & flexibiltiy

• Toyota Production System (TPS)

OPNS 430- Savaskan

KEEP DESKS CLEAR!

• Only need a pen or pencil.

• Please keep desks and aisles clear of notebooks, PCs, backpacks etc.

• Please do not disturb materials!

OPNS 430- Savaskan

HouseBuilding.com:Manufacturing Operations

Production Control(color sheets, log sheets, scissors)

(scissors)

Base Punch(scissors)

Final Assembly(tape)

Base Weld(stapler)

Quality Control

Customer

Roof Base Form

OPNS 430- Savaskan

Production Control Operating Procedures

• Prepare a batch of 4 units.– Cut each sheet (one at a time) into two: roof and base.– Write the batch number on the roof and the base. All items in the same batch

have the same number. The numbers have to match in assembly.– Repeat 4 times, which yields one batch

• When 4 units (one batch) are complete, “release” the batch.– Put the batch in your out-basket: it’s ready for pickup by the trucker.– Record release time for each batch.

• Release one batch each minute.

OPNS 430- Savaskan

Truckers Operating Procedures

• Truckers are responsible for transporting work in process inventory between production steps.

• You can carry only one batch of 4 roofs or 4 bases at a time. Not both!

Production Control(color sheets, log sheets, scissors)

(scissors)

Base Punch(scissors)

Final Assembly(tape)

Base Weld(stapler)

Quality Control

Customer

Roof Base Form(scissors)

OPNS 430- Savaskan

Roof Operating Procedures

• Cut the roof along double lines, one at a time. • Fold roof along dotted line at top. Think quality!• Work in batches of 4 units.• When a batch is ready, call the trucker and send to Final

Assembly.• Ask trucker for inputs when needed.

OPNS 430- Savaskan

Base Cut Operating Procedures

• Cut the base along double lines, one at a time. Think quality!• Work in batches of 4 units• When a batch is ready, call the trucker and send to Base

Form.• Ask trucker for inputs when needed.

OPNS 430- Savaskan

Base Form Operating Procedures

• Fold the lines on the base (4 folds).• Work in batches of 4 units• When a batch is ready, call the trucker to send them to Base

Weld.• Ask trucker for inputs when needed

OPNS 430- Savaskan

Base Weld Operating Procedures

• Staple base on top and bottom about ¼ inch from the edge.• Work in batches of 4 units.• When a batch is ready, call the trucker to send them to Final

Assembly.• Ask trucker for inputs when needed.

OPNS 430- Savaskan

Final Assembly Operating Procedures

• Tape the roof to the base (2 tapes).• Work in batches of 4 units.• When a batch is ready, send them to QA. (No trucker

required.)• Ask trucker for inputs when needed.

OPNS 430- Savaskan

Quality Assurance Operating Procedures

• Check each batch if they conform to quality standards!

• If the house conforms to quality standards, put it on the market. Once on the market no more rework!

• Customers can reject houses

Quality StandardsBatch numbers must match.

• Folds and cuts should be along appropriate lines.

– Folds should be crisp and cuts should be straight.

• Roof should be centered and door should be visible.

– Top of base should be flush with roof.

• Staples and tape should be centered and parallel to the ground.

– Not too much tape. About one inch.

– Staples about ¼ inch from edge.

OPNS 430- Savaskan

HouseBuilding.com:Improved Operational Performance

Flow time T

House # 1To - Ti = T

QualityQ = R/ Ro

InventoryI

OutputRo

InputRiHouse # 16

To - Ti = T

SalesR

Team(color)

OPNS 430- Savaskan

Lean Operations (JIT) Module• House Building Game

• The transition to Lean Ops

• The Paradigm of Lean Operations: The ideal

• Basic philosophy of Lean Ops

• Methods for synchronization & waste reduction

• Approaching the ideal with Product Variety: TPS

• Managing variety & flexibiltiy

• Toyota Production System (TPS)

OPNS 430- Savaskan

Paradigm of Lean Operations:In Search for the Holy Grail

= The ideal Process

• Synchronization of all flows• 1 x 1

• production on demand

• defect free

• At lowest possible cost

• Waste = Gap between ideal and actualHow do we set up a system to continually

reduce waste ?

OPNS 430- Savaskan

Toyota’s waste elimination in Operations

1. Overproduction

2. Waiting

3. Inessential handling

4. Non-value adding processing

5. Inventory in excess of immediate needs

6. Inessential motion

7. Correction necessitated by defects

OPNS 430- Savaskan

Process Change # 1: Functional vs. Cell Layout

ProductionControl

ProductionControl

ProductionControl

RoofCut

RoofCut

RoofCut

BaseCut

BaseCut

BaseCut

FA BaseAssyFA FA Base

AssyBaseAssy

QC QC QC

ProductionControl

FA

BaseCut

RoofCut

BaseAssy

ProductionControl

FA

BaseCut

RoofCut

BaseAssy

ProductionControl

FA

BaseCut

RoofCut

BaseAssy

OPNS 430- Savaskan

Managing Flows: the Process View• By rethinking the IBM Austin assembly plant

and introducing cells, distance traveled by a card was cut from 1.5 miles to 200 yards. Floor space was reduced to half and production tripled with about the same number of workers.

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Teams in Cells and Lean Ops• Advantages

– Consistent with the moral ideal of “autonomy.”– Empowers the workforce through participation and autonomy in

managing daily activities– Gives unprecedented responsibility to workers:

• Immediate and impartial feedback of problems• Investigation of process improvements• Monitoring quality• They also gain better understanding of the process

• Challenges:– Less WIP means more tight coupling and less autonomy

• Rigid procedures and interdependence of cells

– From monthly 30-day goals before to 3-minute goals now• Does not leave much room for variability

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Process Change # 2: Cut Batch Sizes

Machine 11unit/min

Machine 21 unit/min

Batch Size = 4 units Batch size = 1 unit

16 min

20

M1

01min2345

1

M2

11

01234min5

8min

12min

4

4

4

4

4

44

4

4

11

111

1

M1 M2 M1 M2

4

44

44

4

1

11 1

11

OPNS 430- Savaskan

Process Change #3: Push vs. Pull (Just-In-Time operations)

JIT = have exactly what is needed, in the quantity it is needed, when it is needed, where it is needed.

• “hand-to-mouth” material flow• needed by whom?

OPNS 430- Savaskan

Process Change #3 : Push vs. Pull

Production

Roof Cut

Base Cut Roof Form

Base Form & Weld

Assembly Production

Production

Roof Cut

Base Cut Roof Form

Base Form & Weld

Assembly Production

Limited I

No Limit

Push Rout

RinRout

Pull

How much I?What is the role of I?

Product flowsInformation Flows

OPNS 430- Savaskan

THE DICE GAME

Average Capacity of Each Stage =

OUTPUTBuffer

INPUTBuffer

6 Face Fair Dice

Average Process Capacity =

Play The Game

Unfair Dice which rolls into either 3 or 4

Average Capacity of Each Step =

Average Capacity of The Process =

OPNS 430- Savaskan

Reducing waste: Increase Problem Visibility Lower the Water to Expose the

Rocks

Scrap &Rework

Missed Due DatesToo Much Space

Late Deliveries

Poor Quality

Machine Downtime

Engineering Change Orders

Long queues

Too much paperwork

100% inspection

Inve

ntor

y

OPNS 430- Savaskan

Sample results from Match Game

Initial buffer levels

Standard die

Die that only rolls 3

or 4

0 3.24 3.38

10 3.37 3.48

20 3.46 3.54

Reporting average output per round after 200 rounds given that system starts with given inventory in every buffer.

OPNS 430- Savaskan

The impact of inventory and variability:Output of Match Game

135

145

155

165

175

185

195

0 5 10 15 20 25

Starting Inventory in each Buffer

Ou

tpu

t af

ter

50 R

un

s

Series1

Series2

Series3

Series4

Series5

Average

6-face die (=1.9)

2-face die (=0.7)

OPNS 430- Savaskan

Time plays the role of Inventory in Lean Service Operations

TIME

OPNS 430- Savaskan

Take-AwaysBasics of Lean Operations

• Paradigm of Lean Operations:Strive for the ideal by eliminating waste

• Synchronize– Layout: Cellular operations– Reduced batch sizes 1x1– JIT– Pull production control systems (vs. push)

• Improve– Increase problem visibility (river analogy) : Reduce buffering gradually

• ImplementationControl Inventory by Kanban

OPNS 430- Savaskan

Toyota Production System

OPNS 430- Savaskan

IDEAL PROCESSSynchronized

1x1Low Cost

1. Mechanisms – Tools

JIT-Pull (Kanban)Cellular LayoutBatch size of 1

Heijunka

2. Visibility

River Analogy(lower inventory to expose the problems -- experimentation)

Andon and Jidoka

3. Improve / Kaizen Remove waste and Learn

TPS: Best Implementations of Lean OpsIntegrated - Dynamic - Pragmatic

Discipline Follow Standard

Operation Procedures

Update the operating proceduresMove closer to the ideal

OPNS 430- Savaskan

How to run Lean Operations:Managing Variety

• Monthly Production Requirement:

Model Sedan StationWagon

Quantity 10,000 5,000

How should production be scheduled for the month?

OPNS 430- Savaskan

Synchronize: Heijunka Mixed Level/Balanced Production

Batch Production Schedule Mixed Production Schedule

(AAAABBBB..) (ABAB...)

Product Apr/12.................15...........................30 Apr/12....................15.......................30

A

B

time

FGI

time

FGI Change over

Which one is better for the supplier?

OPNS 430- Savaskan

Reducing Waste: Reduced Setup Times

• What happens if we have long setup/changeover times?

• How do synchronized production with variety (product mix)?

OPNS 430- Savaskan

Synchronize: HeijunkaUniform Plant Loading/Planning

• This does not mean building a single product.

• Rather: – maintain a stable mix of products– and firm frozen schedules based on actual orders

from the dealers

• Benefits: Good Flow, Low inventory

• Costs: Must reduce changeover costs

OPNS 430- Savaskan

Synchronize: HeijunkaInvolve Supplier

PAINT SHOP

Batch Process

Seat Installation350 work stationscycle time 57 secs

takt time

350 x 57 secs = 5.54 hrs

Supplier

sequence info

seats

OPNS 430- Savaskan

What is the cost of pulling the cord?

Cycle time =57 seconds

FINAL30 members

•12 pulls / member-shift •1 stop /member-shift•30 stops/ shift

Min %85 – max %95 run ratio Out of 450minutes/shift 450*0.15 = 67.5 minutes (mx. stopping time)

450*0.05=22.5 minutes (min. stopping time)

22.5 minutes / 30 = 0.75 min/stop 67.5/30 = 2.25 min/stop

OPNS 430- Savaskan

• 1 to 3 cars… Are we loosing this production?

• Overtime costs per cycle (57 secs/car)$17/hr * 1.5 (overtime) * 57secs/(60min*60sec)

= $0.425/member-car30 members = $12.75 /car 3 cars …. $37

What is the cost of pulling the cord?

Is it expensive ? Depends!! 1 station or the whole production line!

OPNS 430- Savaskan

TMM Inc.

What is the real problem at Kentucky?

The circle is broken! Time between the occurrence of the problem and the awareness of the problem separated!

No jidoka tool in place to create visibility to determine the root cause for the seat problem.

OPNS 430- Savaskan

Team &Team Leader

Superintendent

“Lean” Plant Floor Organization

Group Leaders

OPNS 430- Savaskan

Involvement

Human Resources

Management

Work Systems

Programs Suggestion Programs

Employees as Citizens

Standardized Work/Kaizen

Responsibility pushed down

QC Circles

Employee Development

Rewards and Recognition

Examples

Empowerment Programs

JIT/JIDOKA Respect for People

Organization in Lean Operations

OPNS 430- Savaskan

Leadership: Three Models

Old “ Dictator” Style : “Do it my way”

Empowerment Style: “ Do it your way”

Lean Style: “Follow me”

OPNS 430- Savaskan

Knowledge Dissemination at ToyotaToyota Global Production Center

•Facility opened (GPC) opened in July 2003 with the mission of rapidly training large number of mid-level plant managers from overseas and Japan in best practices.

•New facility trains experts to support Toyota’s expanding scale of global manufacturing.

•Traditional approach was use a mother plant to spread out best practices. This approach leads to variability in skill levels.

•Goal is to use a global manufacturing network that can produce high quality products consistently and can easily handle model shifts at far flung factories.

OPNS 430- Savaskan

Training for New Models

OPNS 430- Savaskan

Training for New Models

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OPNS 430- Savaskan

OPNS 430- Savaskan

Reducing Waste by Quality at the Source

Defects

Found at:Own Process Next Process End of Line Final

InspectionEnd User’sHand

$ $ $ $ $

Impact to the

Company

VeryMinor

MinorDelay

Rework Resched.

of work

SignificantRework

Delay inDelivery

AdditionalInspection

Warrantycosts

Administrative costs

Reputation Loss of

MarketShare

OPNS 430- Savaskan

Reducing Waste by Visibility Quality at the Source

Fool-proof/Fail-safe design (Poka-Yoke)

Inspection (Jidoka)– Self – Automated

– Line-stopping empowerment (Andon)

Human infrastructure

Tools

OPNS 430- Savaskan ....

Final words on TPS

• TPS is a dynamic production management system that aims for the “ideal” through continuous improvement.

• Includes, but goes way beyond JIT.

• Pillars:– Synchronization: through JIT + Heijunka– Quality at Source: through Jidoka– Continuous Improvement (Kaizen): through

empowerment, visibility & stress

OPNS 430- Savaskan

Learning Objectives:Lean Operations

• Lean Operations A methodogical way to approaching the Ideal and reduce waste

• Tools

– Efficient Workflow: Cellular Layout

– Pull system: JIT (by using KANBANS)

– 1X1

– Level Mixed Production: Heijunka

• Quality at the Source: by using Jidoka Tools

• Continuous Improvement: Kaizen through Change Management and Empowerment