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
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