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)
1
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)
Base Punch
(scissors)
Roof
Base Form
(scissors)
Base Weld
(stapler)
Final Assembly
(tape)
Quality Control
OPNS 430- Savaskan
Customer
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.
•OPNSRelease
one batch each minute.
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)
Base Punch
(scissors)
Roof
Base Form
(scissors)
(scissors)
Base Weld
(stapler)
Final Assembly
(tape)
Quality Control
Customer
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.
•OPNSAsk
trucker for inputs when needed.
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.
430- Savaskan
•OPNSAsk
trucker for inputs when needed.
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 Standards
Batch 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
Team House # 1
(color) To - Ti = T
OPNS 430- Savaskan
House # 16
To - Ti = T
Input
Ri
Output Inventory Sales Quality
Ro
I
R Q = R/ Ro
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
• 1x1
• production on demand
• defect free
• At lowest possible cost
• Waste = Gap between ideal and actual
How 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
Production
Control
Production
Control
Roof
Cut
FA
QC
Roof
Cut
FA
QC
Production
Control
Roof
Cut
FA
QC
OPNS 430- Savaskan
Base
Cut
Production
Control
Base
Cut
Base Base
Assy Assy
Base
Cut
Base
Assy
Roof
Cut
Base
Cut
FA
Base
Assy
Production
Control
Production
Control
Roof
Cut
Base
Cut
Roof
Cut
Base
Cut
FA
Base
Assy
FA
Base
Assy
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.
OPNS 430- Savaskan
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
OPNS 430- Savaskan
Process Change # 2: Cut Batch Sizes
Machine 1
1unit/min
Machine 2
1 unit/min
Batch Size = 4 units
0
1
2
3
4min
5
8min
4
M1
M2
0
1min
2
3
4
5
4
4
4
4
4
4
4
4
12min
4
OPNS 430- Savaskan
1
1
1
4
M1
4
4
20
M2
1
1
1
1
1
1
M1
4
4
16 min
Batch size = 1 unit
1
1
1
1
1
1
M2
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
Push
Roof Form
Base Cut
Rout
Assembly
Production
Production
No Limit
Base Form
& Weld
Roof Cut
Pull
Limited I
Base Cut
Roof Form
Rout
Rin
Production
Information Flows
Roof Cut
OPNS 430- Savaskan
Product flows
Assembly
Base Form
& Weld
Production
How much I?
What is the role of I?
THE DICE GAME
INPUT
Buffer
OUTPUT
Buffer
Unfair Dice which rolls
into either 3 or 4
6 Face Fair Dice
Average Capacity of
Each Step =
Average Capacity of
Each Stage =
Average Process Capacity
Average Capacity of The Process =
=
Play The Game
OPNS 430- Savaskan
Reducing waste: Increase Problem
Visibility Lower the Water to Expose the
Rocks
Inventory
Missed Due Dates
Late
Deliveries
Too much paperwork
Engineering
Change Orders
Scrap &
Rework
Poor
Quality
OPNS 430- Savaskan
Too Much
Space
100% inspection
Long queues
Machine
Downtime
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
195
2-face die
(s=0.7)
Output after 50 Runs
185
175
Series1
Series2
Series3
6-face die
(s=1.9)
165
Series4
Series5
Average
155
145
135
0
5
10
15
Starting Inventory in each Buffer
OPNS 430- Savaskan
20
25
Time plays the role of Inventory in
Lean Service Operations
TIME
OPNS 430- Savaskan
Take-Aways
Basics 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
• Implementation
Control Inventory by Kanban
OPNS 430- Savaskan
Toyota Production System
OPNS 430- Savaskan
TPS: Best Implementations of Lean Ops
Integrated - Dynamic - Pragmatic
1.
IDEAL PROCESS
Synchronized
1x1
Low Cost
Update the operating procedures
Move closer to the ideal
Mechanisms –
Tools
JIT-Pull (Kanban)
Cellular Layout
Batch size of 1
Heijunka
Discipline
Follow Standard
Operation
Procedures
2. Visibility
River Analogy
3. Improve / Kaizen
Remove waste and Learn
(lower inventory to expose the
problems -- experimentation)
Andon and Jidoka
OPNS 430- Savaskan
How to run Lean Operations:
Managing Variety
• Monthly Production Requirement:
Model
Sedan
Station
Wagon
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
(AAAABBBB..)
Product
Mixed Production Schedule
(ABAB...)
Apr/12.................15...........................30
Apr/12....................15.......................30
A
B
FGI
Change over
FGI
time
OPNS 430- Savaskan
Which one is better for the supplier?
time
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: Heijunka
Uniform 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:
• Costs:
OPNS 430- Savaskan
Good Flow, Low inventory
Must reduce changeover costs
Synchronize: Heijunka
Involve Supplier
Supplier
seats
sequence info
PAINT
SHOP
Batch Process
350 work stations
cycle time 57 secs
takt time
350 x 57 secs = 5.54 hrs
OPNS 430- Savaskan
Seat Installation
What is the cost of pulling the cord?
FINAL
30 members
Cycle time =57 seconds
•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
What is the cost of pulling the cord?
•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-car
30 members = $12.75 /car
3 cars …. $37
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
“Lean” Plant Floor Organization
Superintendent
Group Leaders
Team &
Team
Leader
OPNS 430- Savaskan
Organization in Lean Operations
Empowerment Programs
Involvement
Programs
Human
Resources
Management
Work Systems
QC Circles
Suggestion Programs
Rewards and Recognition
Employee Development
Employees as Citizens
Standardized Work/Kaizen
JIT/JIDOKA
Respect for People
Responsibility pushed down
Examples
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 Toyota
Toyota 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
OPNS 430- Savaskan
OPNS 430- Savaskan
OPNS 430- Savaskan
Reducing Waste by Quality at the
Source
Defects
Own Process Next Process End of Line
Final
Inspection
End User’s
Hand
$
Found at:
Impact to the  Very
Minor
Company
OPNS 430- Savaskan
$
$
$
$
 Minor
Delay
 Rework
 Resched.
of work
 Significant
Rework
 Delay in
Delivery
 Additional
Inspection
 Warranty
costs
 Administra
tive costs
 Reputation
 Loss of
Market
Share
Reducing Waste by Visibility
Quality at the Source
Tools
Fool-proof/Fail-safe design (Poka-Yoke)
Inspection (Jidoka)
– Self
– Automated
– Line-stopping empowerment (Andon)
Human infrastructure
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
OPNS 430- Savaskan