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Jeddy J.

Sardjono

Session 13
Lean Production (JIT Concept)

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc. 2008

Jeddy J. Sardjono - MMUI

20 - 2

Objectives

Lean Production Defined


The Toyota Production System

Waste of Operation
Respect for the People Lean Services

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc. 2009

Jeddy J. Sardjono - MMUI

20 - 3

Lean Production
Defined

Lean Production can be defined as an integrated set of activities designed to achieve high-volume production using minimal inventories (raw materials, work in process, and finished goods) Lean Production also involves the elimination of waste in production effort Lean Production also involves the timing of production resources (i.e., parts arrive at the next workstation just in time)

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc. 2009

Jeddy J. Sardjono - MMUI

20 - 4

PRODUCTION SYSTEM
Based on two philosophies:
A) Elimination of waste

B) Respect for people

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc. 2009

Jeddy J. Sardjono - MMUI

20 - 5

A) Waste in Operations
1.

Waste from overproduction

2.
3.

Waste of waiting time


Transportation waste

4.
5. 6. 7.

Inventory waste
Processing waste Waste of motion Waste from product defects
The McGraw-Hill Companies, Inc. 2009

Irwin/McGraw-Hill

Jeddy J. Sardjono - MMUI

Elimination of Waste
1. 2. 3. 4. 5.

Focused factory networks


Group technology Quality at the source JIT production Uniform plant loading

6.
7.
Irwin/McGraw-Hill

Kanban production control system


Minimized setup times
The McGraw-Hill Companies, Inc. 2009

Jeddy J. Sardjono - MMUI

(1) Minimizing Waste: Focused Factory Networks


These are small specialized plants that limit the range of products produced (sometimes only one type of product for an entire facility)

Coordination System Integration

Some plants in Japan have as few as 30 and as many as 1000 employees

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc. 2009

Jeddy J. Sardjono - MMUI

20 - 8

(2) Minimizing Waste: Group Technology

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc. 2009

Jeddy J. Sardjono - MMUI

20 - 9

(4) Minimizing Waste: JIT Production

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc. 2009

Jeddy J. Sardjono - MMUI

(6) Minimizing Waste: Kanban Production Control Systems


Once the Production kanban is received, the Machine Center produces a unit to replace the one taken by the Assembly Line people in the first place

Withdrawal kanban

This puts the system back were it was before the item was pulled

Machine Center

Storage Part A

Storage Part A

Assembly Line

Production kanban
The process begins by the Assembly Line people pulling Part A from Storage
Irwin/McGraw-Hill

Material Flow Card (signal) Flow


The McGraw-Hill Companies, Inc. 2009

Jeddy J. Sardjono - MMUI

Determining the Number of Kanbans Needed

Setting up a kanban system requires determining the number of kanbans cards (or containers) needed Each container represents the minimum production lot size An accurate estimate of the lead time required to produce a container is key to determining how many kanbans are required

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc. 2009

Jeddy J. Sardjono - MMUI

The Number of Kanban Card Sets


Expected demand during lead time Safety stock k Size of the container DL(1 S ) C
k = Number of kanban card sets (a set is a card) D = Average number of units demanded over some time period L = lead time to replenish an order (same units of time as demand) S = Safety stock expressed as a percentage of demand during leadtime C = Container size
Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc. 2009

Jeddy J. Sardjono - MMUI

Example of Kanban Card Determination: Problem Data

A switch assembly is assembled in batches of 4 units from an upstream assembly area and delivered in a special container to a downstream control-panel assembly operation The control-panel assembly area requires 5 switch assemblies per hour The switch assembly area can produce a container of switch assemblies in 2 hours Safety stock has been set at 10% of needed inventory
The McGraw-Hill Companies, Inc. 2009

Irwin/McGraw-Hill

Jeddy J. Sardjono - MMUI

Example of Kanban Card Determination: Calculations


Expecteddem andduring lead tim eSafety stock k Size of the container DL(1 S ) 5(2)(1.1) 2.75, or 3 C 4
Always round up!
Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc. 2009

Jeddy J. Sardjono - MMUI

20 - 15

Lean Implementation Requirements

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc. 2009

Jeddy J. Sardjono - MMUI

20 - 16

B) Respect for People


Level payrolls Cooperative employee unions Subcontractor networks Bottom-round management style

Quality circles (Small Group Involvement Activities or SGIAs)


The McGraw-Hill Companies, Inc. 2009

Irwin/McGraw-Hill

Jeddy J. Sardjono - MMUI

20 - 17

Can lean system be implemented in a Service Industry? (1)


Organize Problem-Solving Groups


Upgrade Housekeeping Upgrade Quality Clarify Process Flows Revise Equipment and Process Technologies
The McGraw-Hill Companies, Inc. 2009

Irwin/McGraw-Hill

Jeddy J. Sardjono - MMUI

20 - 18

Can lean system be implemented in a Service Industry? (2)

Level the Facility Load


Eliminate Unnecessary Activities Reorganize Physical Configuration Introduce Demand-Pull Scheduling Develop Supplier Networks
The McGraw-Hill Companies, Inc. 2009

Irwin/McGraw-Hill