LEAN
MANUFACTURING
The Toyota Way
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http://www.youtube.com/watch?v=YTQ
toeP_1oU
Danielle Voros
Mark Kunitz
Johan Mahmood
OM 521
Culture Changes
JIT Implementation Phases
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“Cleaning up” the operations
Effecting a company-wide culture
change
Preparing logistics for JIT
Implementing the program
Reviewing and monitoring the system
after implementation
Issue
Conventional Thinking
JIT Thinking
Bottom Line
Cost Reduction
Margin maximization
Quality vs. Cost
Least cost, with
acceptable quality
Top quality, zero defects
Inventories
Large, with safety stock
Low, with continuous flow
Flexibility
Long leadtimes
Short leadtimes
Suppliers
Many, with adversarial
relationship
Few, with long-term, open
relationship
General
Cost driven
Customer service driven
*Key Ingredients for Successful Implementation of Just-in-Time: A System for All Business Sizes, Business Horizons, May-June 1993
Taiichi Ohno
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Joined Toyota in 1932
Worked up from Shop Manager to Vice
President
Father of Lean Manufacturing
Initially had no knowledge of
automobile manufacturing
Challenged employees to learn and
grow
Toyota Production System
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Also known as
- Lean Manufacturing
- Lean Production
- Just-In-Time (JIT)
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Toyota shared methodologies and
philosophies of operations
No other company can match the
production prowess of Toyota
1
Toyota Factories
Emulating Toyota’s Success
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Crux of Just-In-Time is continuous
improvement
Their managers and employees
are rigorous problem solvers
By the time other companies have
reached Toyota’s achievement
level, Toyota has moved on.
The Four Rules
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Rule 1: How People Work
Rule 2: How People Connect
Rule 3: How the Production Line is
Constructed
Rule 4: How to Improve
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Toyota’s Notion of the Ideal
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*Decoding the DNA of the Toyota Production System, Harvard Business Review, September-October 1999
Other Applications
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Lean Office
Lean Retailing
Lean Banking
Lean Health Care
6 or more different vehicle models can
be produced on 1 assembly line
Production can be switched from one
plant to another location
May not require new facility for new
platforms (saves billions of $)
Technology has been copied by Ford
and GM, but is 4 years behind
Defect free
Delivery of one request at a time
Supply on demand
Deliver immediately
Produce without waste
Produce in a safe environment
*Decoding the DNA of the Toyota Production System, Harvard Business Review, September-October 1999
Section II. Tools & Techniques
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Value Stream Mapping
PUSH -versus- PULL
In-class Demonstration
Operational Metrics
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Value Stream Mapping
Definition:
 Value Stream: All actions contained in a process
from receipt of order to the shipment/delivery of a
finished good.
 Value Stream Map: A pictorial representation, or
MAP of a value stream, using symbols and process
data to show inputs, outputs and movements along
the TOTAL process
Value Stream Mapping, cont’d
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Value Stream Maps Illustrate:
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Current State Process
Future State Design
Operational Metrics such as:
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Cycle Time, Takt Time, Inventory Levels, etc
Current State Map, example:
Future State Map, example
Push -versus- Pull
Push -versus- Pull, cont’d
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A product or service that is manufactured to a set
schedule, independent of the needs of other
downstream processes are referred to as “Push”
processing.
Typical problems associated with “Push” processing:
 High inventory levels, resulting in:
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CONVERSELY
Increased Manufacturing Costs:
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A product or service that is manufactured in
response to a downstream need is referred to as
“Pull” processing.
Excessive “Process Lead-Time” or “Throughput Time”
Low inventory “turns”
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Longer business cycle (i.e., cash-to-cash)
Potentially higher defect rates
Expanded facility and/or warehouse requirements
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In-Class Demonstration
Develop Paper Airplane Assembly Line to:
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Demonstrate the concept of “Push -versus- Pull” in
a linear manufacturing process
Demonstrate the usefulness of 1 & 3 unit Kanban
scheduling
Develop operational metrics
Value Stream Map the three processes
Operational Metrics
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DIRECTIONS FOR PRODUCING
A PAPER AIRPLANE
Task Time: time required to complete a task
in a given work cell
WIP: “Work-in-process”- inventory between
work cells
Throughput Time: “Production Lead Time”
is the time for 1-unit to move through the
entire Value Stream
Cycle Time: is the average time to produce
1 completely finished product
Lean Manufacturing
CENTER 1
Fold up in half long way
Long Fold
Fold first corner on
each side.
Fold down each side
Long fold
Second fold of wing on
each side.
Fold down each side
Draw a star with a color marker
on one side.
Thrid fold of wing on
each side.
Fold down each side
Place in Finished Goods Inventory
CENTER 2
CENTER 3
Questions?????
CENTER 4
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