Lean Production System
SKB
Simulation 1 & 2
SKB
2-2
Lean Transformation
Focus on lead-time reduction to:
Increase customer loyalty and market share
Achieve growth in sales & earnings
Sustain the competitive advantages
Improve stakeholder value
Lean Production System
Six Sigma Process Capability
Kaizen Breakthrough Methodology
SKB
2-3
Lean Production System
Lean
Production System
Efficient Use of:
Just
in
Time
 People
 Equipment
 Materials
 Space
 Improve process
capability
 Minimize variation
 Manage abnormality
Jidoka
Production Smoothing
Drives cost reduction
SKB
2-4
Just-In-Time Is...
 A manufacturing system which produces:
 What the customer wants
 In the quantity the customer wants
 When the customer wants it
 While using the minimum:
 Raw materials
 Equipment
 Labor
 Space
SKB
2-5
Lean Production System
Key Concepts and Tools
 Pace to Takt time
 One-piece flow
 Pull system
SKB
2-6
Importance of Takt Time
 Synchronizes operations to
customer demand
 Prevents overproduction
 Tool for creating flow
 Determines optimal staffing
Net operating time
Customer requirements
SKB
 Drives capacity analysis &
equipment utilization
 Must be updated periodically
as demand changes
2-7
Batch
Fake Flow
1-Piece Flow
SKB
2-8
“A Sea of WIP”
“Now You See It!”
SKB
2-9
One-Piece Flow
Supermarket Operation
I
H
G
F
E
A
I
SKB
H
G
F
E
D
C
B
B
A
C
D
Aisle
2 - 10
Pull System
Produce to Actual Customer Demand
SKB
2 - 11
Implement Pull System
Supplier
Production
kanban
Water Spider
RM
Pick-up
kanban
Drop
production
kanban
LSS
FG
LSS
Supermarket
Schedule
board
SKB
2 - 12
JIT Elements
 Small, inexpensive machines in process order
 One-piece flow production, counterclockwise
 Ergonomically-correct operations
 Standing operations, moving while working
 Pull system discipline
 “Standard operations” defined and implemented
SKB
2 - 13
Simulation 3 & 4
SKB
2 - 14
JIT Benefits
 Creates a system which is intolerant
of production abnormalities
 Eliminates waste in production processes
 Reduces lead times
Quality…
Cost…
Delivery!
SKB
2 - 15
Lean
Production System
Efficient Use of:
Just
in
Time
 People
 Equipment
 Materials
 Space
 Improve process
capability
 Minimize variation
 Manage abnormality
Jidoka
Production Smoothing
SKB
2 - 16
Jidoka is…
A.
A method for reducing defects
B.
Equipment autonomation
to improve productivity
SKB
2 - 17
Jidoka
A. Tools or Methods to Reduce Defects
 Detect defects when they occur
 Prevent defects from passing to next operation
 Identify root causes of defects
 Eliminate root causes
 Reduce or eliminate defects
SKB
2 - 18
Jidoka Elements
 Visual Control
 Mistake-proofing (Poke-Yoke)
 5S
 Manual Work
 Andon
 Automatic machine work
 Abnormality
Response/Reaction
 Roles and responsibilities
 Line stop guidelines
 Sigma Kaizen (DMAIC)
 Basic QC Tools
 New Standard Operations and
training
 Skill matrix and performance
 Autonomation
 Separate person from
machine
 Advanced Statistical Tools
 Countermeasures
SKB
2 - 19
Jidoka Elements
Visual Control
 5S
 Andon
Parts
presentation
Standard
work
Tool
presentation
Andon
Pack line
SKB
2 - 20
Abnormality Response Process
Q
C
D
S
React to problem
Measure impact
MAN
MACHINE
EFFECT
METHOD
Alert team
Develop and test
improvement
MATERIAL
Find root cause
Gauge 4
Check 2B
Train affected associates in new
standard operations
SKB
Update standard operations with
tested improvement
2 - 21
Jidoka
B. Equipment autonomation
Separate operator work from machine work
Before: Operator watches machine run
After: Operator loads and moves
 Auto shut-off
 “Hanedashi” auto unload
 Operator moves to next operation
Question: Do you watch your dishwasher run?
SKB
2 - 22
Jidoka Benefits
 Increases production quality
 Increases productivity
 Ensures on-time delivery
Quality ... Cost ... Delivery!
SKB
2 - 23
Lean
Production System
Just
in
Time
Efficient Use of
 People
 Equipment
 Materials
 Improve process
capability
 Minimize variation
 Manage abnormality
Jidoka
 Space
Production Smoothing
SKB
2 - 24
Production Smoothing Is...
Adapting production rates to variations
in customer demand
 Variation in volume
 Variation in product mix
SKB
2 - 25
Production Smoothing
Variation in Volume
Customer Demand
Average Daily
Demand = Target
Production
Quantity
Time
SKB
2 - 26
Production Smoothing
Variation in Mix
Monthly
Schedule
(3200 units)
Model
A
Model
B
Model
C
1600
units
800
units
800
units
5
10
15
20
Day
Daily
Schedule
(160 units)
Production
pattern
AABCAABC
80
80
40 40
1
80
40 40
2
80
40 40
3
40 40
20
Day
SKB
2 - 27
Production Smoothing Benefits
 Maintains a consistent, high product quality
 Reduces the requirements for capital investment
 Reduces staffing costs
 Ensures on-time delivery
Quality ... Cost ... Delivery!
SKB
2 - 28
Lean
Production System
Efficient Use of:
Just
in
Time
 People
 Equipment
 Materials
 Space
 Improve process
capability
 Minimize variation
 Manage abnormality
Jidoka
Production Smoothing
Drives cost reduction
SKB
2 - 29