session v%2ctwo revolutions
TRANSCRIPT
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The First Revolution
Taylorism
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You can make a pin
Adam Smith observes that a pin can be made by:
• 0ne person: to perform all the operations himself with all the basic tools
• Through ten persons
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Ten persons are deployed • Worker one: Draws out a wire• Worker 2: straightens it• Worker 3: cuts it to size• Worker 4: points it at one end• Worker 5: grinds it at top to receive head• Worker 6: Put the head on( stroke one)• Worker 7: Put the head on( stroke two)• Worker 8: Deburr• Worker 9: Whiten it• Worker 10. Pack( on paper)Ten persons can make close to 40,000 to 48,000 pins per day
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Advantages to use ten persons• Productivity per person • Low cost• Dexterity• Time saved • Invention of tools, machines, working
procedure• Uniformity
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Taylor-Ford Philosophy(Sorensen Ford’s first president: My 40 years with Ford )
Principles of Taylorism• Simplification• Division of work• Division of labour• Standardization• Sequential process
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Later day perfection by
• Alfred Sloan at GM• One division each for Chevrolet, Pontiac,
Buick, Oldsmobile, Cadillac• Pushed GM to the top.
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First revolution Resulted in birth of :
• Mass production( vast production)• Automation• Mechanisation• Large batch sizes without change of tools/dies• Assembly line flow• Vertical integration• Centralized controls• Strong Systems and procedures
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Advantages
• Low cost• Standardisation of products and services• Birth of brand• Birth of multiple units• Recognition to the company( against craftsmanship)• Specialization• Perfection of skills• Better customer service in delivery, repairs
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Problems?
• Planning• Inventories• Warehouses• Internal coordination• Integration with suppliers• Low variety• Low flexibility• Delayed reaction to market
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The second Revolution
• Toyota Production System
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Toyota Production System( Taiichi Ohno, VP Toyota Motor Company 30 years)
Absolute Elimination of Waste through Leveling of production
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7 Wastes of Ohno
• - waste from over production,• -waste of waiting time , • -transportation waste, • -processing waste,• -inventory waste, • -waste of motion, and • -waste from product defects
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Waste Elimination MethodsSr. No
Waste type Elimination methods
1 Overproduction Reduce batch size, improve forecast,
2 waiting Smooth workflow, even loads
3 transportation Redesign layouts, FTL, near to markets
4 Process Assess product and process needs
5 Stocks, inventories Reduce set-up times, reduce lead times, reduce bullwhip effect
6. Motion Work study,
7 Product defects, parts defects
Create skills ,capabilities, competencies
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Two Pillars of Waste Elimination
• JIT• Autonomation
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JIT : the OriginJIT has origins in Japanese word HIT
H: Hit suyo na mono O (What is needed) I : Iru toki iru dake (When it is needed and in what quantity) T: Tsukuru ( Make)• Elements of JIT were being used by Japanese industry since 1930’s. • However, the same got refined only in 1970s when Tai-ichi Ohno V P ( Production) Toyota Motors used JIT to take Toyota cars to the
heights of delivery time and quality
Right parts reach assembly when these are needed with Flow to approach zero inventory
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JIT: The Essence of Toyota System
JIt Is Both A Philosophy And A Production Management System.
• As philosophy key issues are- simplicity, - Baka Yoke - Waste elimination - total involvement ( Quality Circles), - continuous improvement(Kaizen) - Visibility ( Andon)
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JIT as a System
• As a system, it becomes a collection of techniques and methods for
- small batch production, - quality management,( CWTQ) - Total Productive Maintenance ( TPM), and - Production planning
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JIT Production
a. Backward Flow• Subsequent process withdraws from the
preceding process exactly what it needs when it needs it
• The preceding process produces exactly the same quantity as it is withdrawn
• We climb further and further up the production flow, ultimately the flow is reversed, not cut off.
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b. Information flow; It begins in the market place. Source of the information is always the customer and not the plant. Kanban is information and is a signaling system to regulate JIT flows
c. Responding individually to individual orders:• Customer preferences are becoming more
diverse, more personalized and more rigid. Customers differ and base their products on personality.
• Supplying the same product in same way will only generate useless inventory
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c. Pull system: Pull system throughout the plant. Producing what is needed and no more
• When all queues are driven to zero, inventory is minimized, lead times are shortened
• Under JIT, ideal lot size is One• Typically one –tenth of a day’s production is a lot
size• Exposes hidden problems of production
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d. Zero inventory is non-sense• Elimination of inventories means shortages of
goods and poor customer service• The goal at Toyota is to level the flow. Toyota
strives to have needed quantities at needed time
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Pre-requisites of JIT1. A strong, reliable, dedicated, quality
and delivery conscious vendor support2. A highly committed, motivated, flexible,
multi-skilled efficient workforce3. A developed logistics support4. Decentralized system of authority,
transparency and visibility of systems, procedures, performance-orientation through established performance evaluation
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1. An advanced communication system
2. Readiness of the organization at all levels to go for change
3. Stable demand4. Active use of other instruments:
Kanban , Andon, Kaizen, Poka Yoke, SMED, TQM(CWQC),TPM.
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Limitations of JIT
• Cannot respond rapidly to major changes in product, process, technology
• Not suitable for customized products or engineered products calling for new designs
• Suitable when materials and components are available in quality and quantity and on time delivery
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• Small vendors for better coordination and controls• Responsible, flexible, committed
work force• Established work culture• Large set up to support small lot
sizes
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Autonomation
• Bring the human touch to the machine so as to prevent the problem
• Automatic stoppages• Boka yoke- fool proofing system
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Autonomation
Resulted in concepts of:• Have a worker when you need a worker.• Multi-skills operators• One operator multi-machines• Andon• Safe operations