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Lean Production System

Lean Production System. Simulation 1 & 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.

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Lean Production System

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  1. Lean Production System

  2. Simulation 1 & 2

  3. 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

  4. Lean Production System Lean Production System Just in Time Jidoka • Efficient Use of: • People • Equipment • Materials • Space • Improve process capability • Minimize variation • Manage abnormality Production Smoothing Drives cost reduction

  5. 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

  6. Lean Production System Key Concepts and Tools • Pace to Takt time • One-piece flow • Pull system

  7. Importance of Takt Time • Synchronizes operations to customer demand • Prevents overproduction • Tool for creating flow • Determines optimal staffing • Drives capacity analysis & equipment utilization • Must be updated periodically as demand changes Net operating time Customer requirements

  8. Batch Fake Flow 1-Piece Flow

  9. “A Sea of WIP” “Now You See It!”

  10. One-Piece Flow Supermarket Operation I H G F E A B C D Aisle H I G F E D C B A

  11. Pull System Produce to Actual Customer Demand

  12. Supplier Supermarket LSS Water Spider Pick-up kanban RM FG Drop production kanban Production kanban LSS Schedule board Implement Pull System

  13. 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

  14. Simulation 3 & 4

  15. JIT Benefits • Eliminates waste in production processes • Creates a system which is intolerant of production abnormalities • Reduces lead times Quality… Cost… Delivery!

  16. Lean Production System Just in Time Jidoka • Efficient Use of: • People • Equipment • Materials • Space • Improve process capability • Minimize variation • Manage abnormality Production Smoothing

  17. Jidoka is… A. A method for reducing defects B. Equipment autonomation to improve productivity

  18. 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

  19. Visual Control 5S Andon Abnormality Response/Reaction Roles and responsibilities Line stop guidelines Sigma Kaizen (DMAIC) Basic QC Tools Advanced Statistical Tools Countermeasures Mistake-proofing (Poke-Yoke) Manual Work Automatic machine work New Standard Operations and training Skill matrix and performance Autonomation Separate person from machine Jidoka Elements

  20. Visual Control Jidoka Elements • 5S • Andon Tool presentation Andon Standard work Parts presentation Pack line

  21. Q C D S Measure impact MAN MACHINE EFFECT METHOD MATERIAL Develop and test improvement Alert team Find root cause Gauge4 Check2B Train affected associates in new standard operations Abnormality Response Process React to problem Update standard operations with tested improvement

  22. 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?

  23. Jidoka Benefits • Increases production quality • Increases productivity • Ensures on-time delivery Quality ... Cost ... Delivery!

  24. Lean Production System Just in Time Jidoka • Improve process capability • Minimize variation • Manage abnormality • Efficient Use of • People • Equipment • Materials • Space Production Smoothing

  25. Production Smoothing Is... Adapting production rates to variations in customer demand • Variation in volume • Variation in product mix

  26. Customer Demand Production Smoothing Variation in Volume Average Daily Demand = Target Production Quantity Time

  27. Model A Model B 1600 units 800 units Day Production Smoothing Variation in Mix Monthly Schedule (3200 units) Model C 800 units 5 10 15 20 80 80 80 80 Daily Schedule (160 units) Production pattern AABCAABC 40 40 40 40 40 40 40 40 1 2 3 20 Day

  28. 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!

  29. Lean Production System Just in Time Jidoka • Efficient Use of: • People • Equipment • Materials • Space • Improve process capability • Minimize variation • Manage abnormality Production Smoothing Drives cost reduction

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