Lean Manufacturing & Just-in-Time

"The most dangerous kind of waste is

the waste we do not recognize." -
Shigeo Shingo
Reducing Waste: Push versus Pull System

Raw Final
Material Customer
Assembly
Supplier
FGI
PUSH

Raw Final
Material Customer
Assembly
Supplier
FGI

PULL
Information Flow
Material Flow
Push System
 Every worker maximizes own output, making
as many products as possible
 Pros and cons:
 Focuses on keeping individual operators and
workstations busy rather than efficient use of
materials
 Volumes of defective work may be produced
 Throughput time will increase as work-in-process
increases (Little’s Law)
 Line bottlenecks and inventories of unfinished
products will occur
 Hard to respond to special orders and order
changes due to long throughput time
Pull System
 Production line is controlled by the last
operation, Kanban cards control WIP
 Pros and cons
 Controls maximum WIP and eliminates WIP
accumulating at bottlenecks
 Keeps materials busy, not operators. Operators
work only when there is a signal to produce.
 If a problem arises, there is no slack in the system
 Throughput time and WIP are decreased, faster
reaction to defects and less opportunity to create
defects
Features of Lean Production
WHAT IT IS WHAT IT DOES

• Attacks waste
• Management philosophy
• Exposes problems and bottlenecks
• “Pull” system though the plant
• Achieves streamlined production

WHAT IT REQUIRES WHAT IT ASSUMES

• Employee participation
• Stable environment
• Industrial engineering/basics
• Continuing improvement
• Total quality control
• Small lot sizes

Kaizen
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A Little History!
 Ford: Design for manufacturing
 Start with an article that suits and then study to find
some way of eliminating the entirely useless parts.
This applies to everything— a shoe, a dress, a
house, a piece of machinery, a railroad, a
steamship, an airplane. As we cut out useless parts
and simplify necessary ones, we also cut down the
cost of making. ...But also it is to be remembered
that all the parts are designed so that they can be
most easily made."
A Little History!

 Ohno – put ideas into practice systematically

 “When bombarded with questions from our group on
what inspired his thinking, Ohno just laughed and said
he learned it all from Henry Ford's book."
 TPS: Toyota Production System
 A system that continually searches for and
eliminates waste throughout the value chain.

 Views every enterprise activity as an operation and

applies its waste reduction concepts to each activity -
from Customers to the Board of Directors to Support
Staff to Production Plants to Suppliers.
Elimination of Waste Muda
Acronym – CLOSED MITT

 Complexity  Materials
 Labor  Inventory
 Overproduction  Time
 Space  Transportation
 Energy
 Defects
Elimination of Waste
1. 5S
2. Group technology
3. Quality at the source
4. JIT production
5. Kanban production control system
6. Minimized setup times
7. Uniform plant loading
8. Focused factory networks
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Minimizing Waste – 5S
“Good factories develop beginning with the 5S’s.
Bad factories fall apart beginning with the 5 S’s.”
- Hirouki Hirano

Japanese Translation English

Seiri Proper arrangement Sort
Seiton Orderliness Simplify
Seiso Cleanliness Sweep
Seiketsu Cleanup Standardize
Shitsuke Discipline Sustain
 Minimizing Waste – 5S

 A place for everything and everything in its place

 Not just a housekeeping issue
 Critical foundation for
 Setup reduction
 Pull systems
 Maintenance
 Inventory management
Minimizing Waste: Group Technology
Using Departmental Specialization (Job Shop) for plant layout
can cause a lot of unnecessary material movement

Note how the flow lines are going back and forth

Saw Saw Saw Grinder Grinder

Heat Treat

Lathe Lathe Lathe Press Press Press

Minimizing Waste: Group Technology
Revising by using Group Technology Cells can reduce
movement and improve product flow

Grinder
1 2
Saw Lathe Lathe Press

Heat Treat

Grinder
Saw Lathe A B Lathe Press
Minimizing Waste: JIT
 Only produce what’s needed
 The opposite of “Just In Case” philosophy
 Ideal lot size is one
 Minimize transit time
 Frequent small deliveries

Pro’s Con’s ???

•Minimal inventory •Requires discipline
•Less space •Requires good problem solving
•More visual •Suppliers or warehouses must be close
•Easier to spot quality issues •Requires high quality
Minimizing Waste: JIT
Inventory
Hides Problems
Machine
downtime

Scrap Vendor
Work in delinquencies Change
orders
process
queues Engineering design Design
(banks) redundancies backlogs

Paperwork Inspection Decision

backlog backlogs backlogs

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Minimizing Waste – Quality at the
Source
 “Do it right the first time”
 Call for help
Andon
 Immediately stop the process and correct it vs.
passing it on to inspection or repair
Jidoka
 Minimizing Waste – Kanban
Signaling device to control flow of material
•Cards
•Empty containers
•Lights
•Colored golf balls
•Etc
Minimizing Waste – Setup Times
 Long setup times drive:
 Long production runs
 Large lots
 Long lead times
 JIT requires small lots and minimum kanbans
 Setup reduction
 Focused efforts
 Problem solving
 Flexible equipment
Minimizing Waste – Plant LoadingHeijunka

Suppose we operate a production plant that produces a single

product. The schedule of production for this product could be
accomplished using either of the two plant loading schedules below.

Not uniform Jan. Units Feb. Units Mar. Units Total

1,200 3,500 4,300 9,000
or
Uniform Jan. Units Feb. Units Mar. Units Total
3,000 3,000 3,000 9,000

How does the uniform loading help save labor costs?

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Minimizing Waste –
Focused Factory These are small specialized
plants that limit the range of
Networks products produced
(sometimes only one type of
product for an entire facility)

Coordination
System Integration
TPS – Respect for People

 Level payrolls

 Cooperative employee unions

 Subcontractor networks Keiretsu

 Bottom-up management style

 Quality circles (Small Group Problem Solving)

TPS – 4 Rules
1. All work shall be highly specified as to content, sequence,
timing, and outcome

2. Every customer-supplier connection must be direct, and

there must be an unambiguous yes-or-no way to send
requests and receive responses

3. The pathway for every product and service must be simple

and direct

4. Any improvement must be made in accordance with the

scientific method, under the guidance of a teacher, at the
lowest possible level in the organization
 Lean Implementation
Total Quality
Management

Product Flow
Design Process

Empowered Workforce
Problem Solving
Continual Inventory Performance Measurement Stable
Reduction Schedule

Involved Kanban
Suppliers Pull
Summary and Conclusions…
 Lean Production is the set of activities that achieves
quality production at minimum cost and inventory
 The flow of material is pulled through the process by
downstream operations
 Lean originated with the Toyota Production System
and its two philosophies – elimination of waste, and
respect for people
 CLOSED MITT forms of waste