LEAD TIME

1)

Total time required to manufacture an item, including order preparation time, queue time, setup
time, run time, move time, inspection time, and put-away time. For make-to-order products, it is
the time taken from release of an order to production and shipment. For make-to-stock products,
it is the time taken from the release of an order to production and receipt into finished goods
inventory.
2)
Lead Time = Cycle Time * WIP
3)
The PLT represents the total time value added and non value added it takes a product to make
it through an entire value stream.
This is often called the call to cash time since it helps us understand the time between taking
the order and receiving payment for the delivered goods.

1)Read more: http://www.businessdictionary.com/definition/manufacturing-leadtime.html#ixzz3urXqYT1S

2)http://www.isixsigma.com/community/blogs/lead-time-vs-cycle-time/
3) http://blog.gembaacademy.com/2010/07/20/how-to-determine-cycle-time-takt-time-lead-time/

TAKT TIME
4)
Takt Time is the rate at which products or services should be produced to meet the customer
demand. It is derived from the German word, Taktzeit, which is often referred to as the heartbeat
or drumbeat of production in Lean Manufacturing.
The value, in conjunction with current loading (production) rates, is used to analyze process
loads, bottlenecks, and excess capacity. The study will indicate which operations are ahead of the
demand rate and others that are not, both indicating opportunities for improvement. This is

strictly a formula and calculation. Use it to compare the measured "loading" to quantify whether
an operation meets, exceeds, and by how much.

The unit of time in the numerator & denominator must be the same.
The numerator, Available Work Time, is often expressed as Minutes/Shift, Seconds/Day,
Minutes/Day and so on.
The denominator, Customer Demand Rate, is often expressed as Parts/Min, Units/Shift,
Pieces/Day, and so on.
Below is an example calculation. It is labeled PROCESS 1 because if the amount of work time
available OR the demand on that particular machine or group of machines varies from one
process to another then each process will have its own takt time.

Takt Time and Loading Calculator

A Takt Time calculator (along with other templates and calculators) with an example is available
here.
Takt time values are rarely the same across the entire value stream of a part or service if the
layout is departmentalized. Chances are these machines (processes or services) share demand.
However, in many workcells, all the machines require have the same customer demand rate and
the same available work time making the line balancing activity an easier task.
Example:
If Customer A wants 55,000 units/day that require Process 1 (from above) and these units also
require downstream Process 2
AND
Customer B now places an order and wants 55,000 units/day that require Process A and NOT
Process 2 then the takt time for each process is different.
Given the work available is the same for each process at 22 hours/day = 1,320 minutes per day =
79,200 sec/day.
CALCULATION:
Process 1: Takt Time= 79,200 sec/day / 110,000 units/day = 0.72 SEC/UNIT
Process 2: Takt Time = 79,200 sec/day / 55,000 units/day = 1.44 SEC/PART
Conclusion
The load rate (production rate) must be twice as fast on Process 1 than Process 2 to keep up with
customer demand.
Those operations that are performing better than takt time also have opportunity for
improvement; often the load from a process that is behind can be offloaded and shared. The
amount is determined by the differences in the current load and takt time studies for each
process.
Leveling the workload, line balancing, across the processes by studying these values is the team's
work.
The study is normally depicted using bar graphs and will not only show bottlenecks or excess
capacity but will quantify the amount and show relativity between all operations.
4)http://www.six-sigma-material.com/Takt-Time.html

Heijunka: The Art of Leveling Production

5)
Heijunka (pronounced hi-JUNE-kuh) is a Japanese word that means leveling. When
implemented correctly, heijunka elegantly and without haste helps organizations meet
demand while reducing while reducing wastes in production and interpersonal processes.
According to many Lean experts, heijunka is better achieved as a later-stage implementation in a
Lean organization, long after value streams have been identified and solidified and refined, when
Lean philosophy and legacy are already deeply embedded into process and materials cycles.
What Is Heijunka?
Here is how Lean Lexicon, 4th Edition defines heijunka: Leveling the type and quantity of
production over a fixed period of time. This enables production to efficiently meet customer
demands while avoiding batching and results in minimum inventories, capital costs, manpower,
and production lead time through the whole value stream.
Batching is what mass producers do. For example, Ford Motor Company when it first started
was a mass producer. Company founder Henry Ford was fond of saying that customers could
have any color Model A they wanted, as long as it was black.
Daniel T. Jones, founder and chairman of the Lean Enterprise Academy, writes: Years ago,
Toyota reached the counter-intuitive conclusion that this [batching] is a bad idea. Its reasoning
was that no production system can be continuously responsive to gyrating orders without
suffering from mura (unevenness in productivity and quality), and muri (overburden of
machines, managers, and production associates). And mura and muri together create muda
(waste).

Leveling by Volume or Type

Lets look at leveling volume. Say a hat producer receives orders for 500 of the same hat per
week: 200 orders on Monday, 100 on Tuesday, 50 on Wednesday, 100 on Thursday, and 50 on
Friday. Instead of trying to meet demand in sequence of the orders, the hat producer would use
heijunka to level demand by producing an inventory of 100 hats near shipping to fulfill
Mondays orders. Every Monday, 100 hats will be in inventory. The rest of the week, production
will make a 100 hats per day a level amount. The inventory might look a little suspicious to
Lean purists, but it has its fans it is the method the Toyota Production System uses today.
What if the situation involves multiple types of hats? Consider that orders are being placed for
hat models A, B, C and D. A mass producer will want to minimize waste around equipment
changeovers. Its production schedule will look something like this: AAAAABBBCCDD.

But what if a buyer decides at the last minute that orders of A need to be B instead? What if order
volumes for A suddenly drop off the map and orders for C begin to increase? A mass producer
might be desperate to find capacity to make more C while its A capacity sits. To avoid such
waste, a heijunka production schedule might look like AABCDAABCDAB, with emphasis
placed on efficient changeover times and buffer inventories that meet demand for more popular
items.
5) http://www.isixsigma.com/methodology/lean-methodology/heijunka-the-art-of-levelingproduction/