toyota production system lean

8/6/2019 Toyota Production System Lean

http://slidepdf.com/reader/full/toyota-production-system-lean 1/96

Lean Manufacturing

Mahesh Ghanekar



2

Toyota, Nagoya, Japan : Pioneers in modern Lean Management

Lean Manufacturing



3

ABC of Lean Manufacturing

• Customer is not dependent on us, we are

dependent on him.

• He is the purpose of it. He is not an outsider in

our business.

• We are not doing him a favor by serving him,

but he is doing us a favor.

- Mahatma Gandhi



4

Changeover

Changeover

M o n d

a y

T u e s d a y

T h u r s d

a yW e d n

e s d a

y

F r i d a

y



6

Toyota’s Dramatic Business Success

Toyota’s annual profit at the end of fiscal year in March 2003 was $8.13

billion – Larger than the combined earnings of GM, FORD and

CHRYSLER.

Market capitalization of $105 billion as of 2003 – Higher than combined

market capitalization of GM, FORD and CHRYSLER.

In Aug 2003 Toyota sold more vehicles than Chrysler to become worldsthird largest Auto manufacturer. Camry was the top selling passenger car

in US and corolla is top selling small car in world. Lexus was introduced in

1989 and outsold BMW, Cadillac and Mercedes-Benz in 2002.

Toyota best in its class for high quality, high productivity, flexibility and is

top of quality ranking by J.D. Powers and Consumer reports.

Invented “Lean production which has triggered global transformation”.



Sakichi Toyoda, learned Carpentry and applied that skill to design

wooden spinning machines.In 1926 stated ‘Toyota Automatic Loom Works’ (Mistake proof

looms) which became popular model.

Toyoda’s son Kiichiro, negotiated patent rights to Platt Brothers

and build a capital of 100,000 English Pounds for building the

Toyota Motor Corporation, 1st car built in 1936.

Visit to US automobile plants and Development of ‘One piece

flow’, a core principle

In 1948 Toyota’s debt was eight times higher than its total capital

value, they created system that changed the world.

At Toyota Motor Company, Taichii Ohno and Shigeo Shingo,

began to incorporate Ford production and other techniques into

an approach called Toyota Production System

Toyota Flashback

http://www.strategosinc.com/nbodek.htm






Objective of enterprise

Increase Profit…

Conventional equation….

Selling price = Cost + Profit

Redesigned equation….

Profit = Selling price – Cost



General Cost Cutting initiatives (reactive)

Cut costs on…..

Training

Travel

Telephones

Perks

Etc..

Does it serve the purpose?

Answer is simply NO

These methods don’t attack the root cause.These methods don’t attack the root cause.



Cost Matrix

Processing – Useful job from

customer pointof view. (VA)

Conveyance Do not

Inspection add value

Stagnation to customer.

(NVA’s)

Remove waste

Actual movement for reducing cost.



Concept of 3MMUDA – Waste

MURA – Inconsistency/ Imbalance

MURI – Strain

MURA

MUDA

MURI

The Heart Of Toyota Production System

(Eliminate Waste)



Work

MUDA

Elimination of MUDA (waste)

What is MUDA ?

Operation = Work + MUDA

Work = VA activities (Increases Value of product.)

MUDA = NVA activities (Increases Cost of Product.)

MUDA

Work

KAIZEN =(Improvement)

Efforts Density Effectiveness = Work

Work + MUDA

To 100%



MURA = Unevenness

Will add cost of Variation in Quality.

Unbalanced Capacities of Various Machines.

People are too busy in one area and too idle in

another. Uneven Training & Instructions.

Irregularity in Tooling Quality.

Using Equipment unreasonably or wastefully.



MURI = Strain

Will add cost of Trying to use low precision equipment for high

precision processing.

Running machines beyond its designed capabilities.

Strained postures for working.

Doing a work manually that ought to be done bymachines.

Strain due to poor designs.

Increased workload due wastages.



MUDA (Waste)

MUDA of OverproductionMUDA of Stock. (Inventory)

MUDA of Conveyance. (Transport)

MUDA of Waiting. MUDA of Operation Itself.

MUDA of Undesired Movement of worker.

MUDA of Production of inferior goods.



Raw

materials

Time Finished

Parts

Time

Casting

Transportation

StagingSetup

Machining

Inspection Assembly Staging

Value addingactivities

Non Value

adding activities

Reduce time of

Value addingprocessReduce time of

Non Value adding

process to improve

productivity

Traditional vs. Lean improvement



4 P Model

Toyota Production System

TPS House

TPS : 14 Principles



18

Principle 1 : Take Management Decisions On Long Term

Philosophy, Even At The Expense Of Short Term Financial Goals

Mission statement comparison



19

Principle 2 : Right Process Will Produce the Right Results

Create continuous work flow (One piece flow) to bring the problems

to surface

Faster means better flow

Importance of TAKT TIME

Blow up “process islands” andcreate work cells that aregrouped by product, rather thanprocess.

Make One Move One



20

Principle 3 : Use Pull System To Avoid Overproduction

Inventory is necessary to allow for smooth flow of material, but can

lead to overproduction and create large banks of inventory

Origination of KANBAN

‘Scheduling systems’ are to be replaced with ‘pull-replenishment

systems’



21

Eliminate : Muda, Mura, Muri

Work to the customer demand

Principle 4 : Level Out the Workload (Heijunka)



22

M o n d

a y

T u e s d a y

T h u r s d

a yW e d n

e s d a

y

F r i d a y

A Typical manufacturing schedule of work to customer demand



23

Principle 5 : Build a Culture of Stopping to Fix Problems, to Get

Quality Right the First Time

Philosophy of Stopping or Slowing Down

Andon (Signaling System)

Modern Quality Assurance Methods

Jidoka (Equipments with Human Intelligence)

Stopping

Or

Slowing Down

High RFT Increased

Productivity

Counter Measures and Error Proofing

Poka Yoke

Simple Quality Control with Involvement of Team Members

Go & See, Analyze the Situation

Ask ‘WHY’ 5 Times.



24

Principle 6 : Standardized Tasks are Foundation for Continuous

Improvement & Employee Empowerment

F. W. Taylor’s Initiation of Standardization

Role of Industrial Engineer

Three Elements of Toyota’s Standardization

TAKT Time

Sequence of Processes

Inventory to be Maintained

Involvement at the root level,

Empowerment of the workforce

Team work for better morale



25

Principle 7 : Use Visual Control So No Problems are Hidden

Crisis Management Mentality

‘Hear no problems until the hidden problems jumped up and

bit you in the face’ Clean it Up and Make Visual

5 S - Seiri, Seiton, Seiso, Seiketsu, Shitsuke

Simple Visual Indicators to Show Deviations

One-paper Reports to online reports



26

Principle 8 : Use Only Reliable, Thoroughly Tested Technology that

Serves Your People and Processes

Use Technology to Support People and Not to Replace Them

Use Human Technology and Systems Instead of New,

Unproven Systems

Reject or Modify Technologies that Conflict with Organization

Culture

Test the System Thoroughly, Plan it well and Implement it

QuicklyShoes Cleaning machine



27

Principle 9 : Grow Leaders Who Thoroughly Understand the Work,

Live Philosophy, and Teach it to others

Growing your leader rather than purchasing them.

“Constancy Of Purpose”

Gary Convis: The first American President of Toyota Motor Manufacturing.



28

Toyota Leadership Model

Group Facilitator

“You’re

empowered!”

Bureaucratic

Manager

“Follow The Rules!”

Task Manager

“Here is what to do

and how – do it!”

Builder of LearningOrganizations

“Here is our purpose

and direction – I will

guide and coach.”

General Mgt. Expertise In-Depth Understanding of work

Bottom-Up

(Development)

To

p-Do

wn

(Directiv

es)

Toyota Leaders



29

Principle 10 : Develop Exceptional People and Teams Who Follow

Your Company’s Philosophy

Developing excellent individual work while promoting

effective team work. Increase job satisfaction

Developing Teams at Toyota: Not a One- Minute

proposition

Work Groups are the focal point for solving problems.Motivation theories : Internal motivation

Satisfy lower level needs : Job security, good pay, safe working

conditions, etc.

Eliminate “dissatisfiers” and design work to create motivators (5S,

ergonomics, HR policies, job rotation, continuous improvement).

Motivation theories : External motivation – Reward, Scientific

Management, Rapid feedback, Goal setting ,etc.

P i i l 11 R t Y E t d d N t k f P t d



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Principle 11: Respect Your Extended Network of Partners and

Suppliers by Challenging Them and Helping Them Improve

Find Solid partners and Grow together to Mutual Benefit in the

Long Term

Cross Docking

Partnering with suppliers while maintaining internal capability

Working with suppliers for mutual learning of TPS.

Jishuken : Voluntary study groups

Operations Mgt. Consulting Division (OMCD)

Toyota Supplier Support Center (TSSC)

Saving “Sick” Suppliers Through TPS

Supplier ratings from 1 to 5

“Supplier Improvement Committee”

Developing Extended Learning Enterprise Means Enabling Others



31

Fair and Honorable Business Relations

Stable, Reliable Process

Enabling Systems

Clear Expectations

Learning

Enterprise

P r o

g r e

s s i n

g N e e d

S a t i s

f a c t i o

nR e g r e s s i n

g N

e e d S a t i s f a

c t i o n

Stability

Next Level of

Improvement

Supply Chain Need Hierarchy

Identify and develop suppliers which will enable JIT. This will help site selection

P i i l 12 G d S f Y lf t Th hl U d t d



32

Principle 12: Go and See for Yourself to Thoroughly Understand

the Situation (Genchi Genbutsu)

‘Data is of course important in manufacturing, but I place thegreatest emphasis on facts.

- Taiichi Ohno

‘Without data all everyone has is an opinion’

- - Edward Deming

Deeply understanding and reporting what you see

Ohno Circle : Watch and Think for yourselfThink and speak based on personally verified data.



33

Principle 13 :Make Decisions Slowly By Consensus, Thoroughly

Considering All Options; Implement Rapidly

Thorough Consideration In Decision Making

Decision making- A major re-education process

How you arrive at a decision is just as important as the

quality of the decision.

“Leave no stone unturned; in fact inspect each stone

under a microscope”



34

Broadly Consider Alternative Solutions With A Set Based Approach,contingency planning

Managers are trained to think in sets of alternative solutions

‘Set Based Concurrent Engineering’

Design of ‘Prius’

Competition of Design of Suspension System

Competition of Styling of Prius

Delaying Decisions– One of the hardest lessons



35

Principle 14 : Becoming a Learning Organization- Hansei & Kaizen

LEARNING- Have capacity to build on your past and move forward

incrementally rather than reinventing the wheel with new personnel

with each new project

View errors as opportunities for learning

Innovations with standardization

Hansei: Self Reflection and Organizational Learning (Resp)

Being honest about your own weaknesses & Focus on the negatives

Directing and Motivating Organizational Learning- Hoshin Kanri

“You get what you measure”A process of Cascading Company’s objectives down to root

Establishing Target Matrix and evaluating against it.

Updating the performance DAILY



36

Problem resolution funnel



37

Canada Post Corporation: (Lean in Repetitive Service Corporations)

Mail lead time- 26hrs, distance traveled -167 mts.

Value added time- 12secs!!

Reduction by going lean-

28% travel time

37% lead time

27% storage

Ship builder: Macro value stream map

Genie Industries: From 5 inventory turns to 45 inventory turns

Borrowing from the Toyota Way



38

Borrowing from the Toyota WayThe 13 tips:

1. Start with action in the technical system; follow quickly with cultural change

2. Learn by doing first and training second

3. Start with value stream pilots to demonstrate lean and provide a “go see” model

4. Use value stream mapping and help “learn to see”

5. Use Kaizen workshops

6. Organize around value streams

7. Make it Mandatory

8. A crisis may prompt a lean movement, but may not be necessary for turn around.

9. Be opportunistic in identifying opportunities

10. Realign metrics with a value stream perspective

11. Build on your company’s roots to develop your own way

12. Hire or develop lean leaders and develop a succession system

13. Use experts for teaching and getting quick results



39

Myth

What TPS is Not

Reality

What TPS Is

A tangible recipe for success.

A management project or program

A set of tools for implementation

A system for production floor only

Implementable in a short or mid term

period

A consistent way of thinking

A total management philosophy

Focus on total customer satisfaction

An environment of teamwork and

improvement

A never ending search for a better way

Quality built in processOrganized, disciplined work place

Evolutionary

S



40

Summary

“Continuous Improvement” & “Respect for People”- Two supporting

pillars of TPS

Focus on imbibing the value system and culture in the people

rather than imposing it.

Focus on quality; monetary gains, a derivative of it.

Unique and nurtured approach to Lean Management.

Emphasis on cultivation of the Talent Pool.



41

Waste Reduction throughValue Stream Mapping.

TPS Principle 1 to principle 6 : Value stream mappingTPS Principle 1 to principle 6 : Value stream mapping

Current state Future stateCurrent state Future state



42

VALUE

Product worth for which the customer pays.

VALUE STREAM MAPPING

LEAN MANUFACTURING

STREAM

Flow of material and information from RM to FP.

MAPPING

Pictorial representation of material and information flow

USE VSM as a tool to drive all types of improvements.

Value Stream Mapping



43

Value Stream Mapping

Mapping of all actions (VA & NVA) required to bring aMapping of all actions (VA & NVA) required to bring a

product throughproduct through

- Supplier to customer (Manufacturing)- Supplier to customer (Manufacturing)

- Concept to Launch (R & E)- Concept to Launch (R & E)

- Order to Cash (Marketing)- Order to Cash (Marketing)



44

Basic contents of VSM

Process flow

Information flow

Lead Time

For charting VSM, effective icons are used.



45

Value Stream Mapping.

Helps you visualize more than the single process level.

Links the material and information flows.

Provides a common language.

Li it ti f V l St M i



46

Limitations of Value Stream Mapping.

Fails to handle multiple products that do not have identical

maps. Fails to relate transporting and queuing delays.

Lacks conversion into economic measure i.e. value of theproduct.

Fails to consider allocation and utilization of importantresource like floor space.

Fails to show criss-cross movements and non-sequentialflow.

7 steps to Value Stream Mapping



47

7 steps to Value Stream Mapping

1. Select a product or product family:

2. Evaluate material/ information flow : Macro and Micro

3. Study layout/ flow for optimization.

4. Process Analysis: Method Time Study of every operation or

process step in detail.5. Data Collection : Process, Information flow & Inventory (Raw

material, WIP & F.G.)

6. Map current value stream with ICONS.

7. Evaluate Capacity by C/T and Effective C/T

1a) Select Product family/ processes to improve



48

1a) Select Product family/ processes to improve

1)Identify improvement priorities w.r.t. goal tree

20% processes in your company which brings 80% revenue,

resources, cost increase, time increase, etc

20% of the customers mean 80% to you in terms of satisfaction

Top 20% project types/ processes having long lead time (order to

delivery, concept to launch, delivery to payment receipt. etc)

2) Carry out product and process route analysis.

3) Regroup products and process according to the process flow

1b) P t l i



49

1b) Process route analysis.

1 2 3 4 5 6 7 8

A X X X X X

B X X X X X X

C X X X X X X

D X X X X X

E X X X X X

F X X X X X

G X X X X X

Process Steps & Equipment

P R O D U C T E S

A Product

Family

2) Evaluate material/ information Flow



50

1 Day

Supplier

xxxx

Avg.Inventory=

Build rate - xx/day

Storage

Dock (Shop height)

Waiting - 1 hrs

Unloading

Receipt

Batch size -xx

Replenishment - Daily

XX Machining

Build Rate -xxdayForklift No. 3

Distance - 140 feet Forklift No. 2

Distance - 670 feet

Forklift No. 1

Distance - 75 feet

Total Travel - 885 ft

Swim Lane Process Mapping – Purchase Order



51

User 1

User 2

User 3

User 4

User 5

Manager 1

Store

Head

Supplier

PlantMachinebreakdown

pp g

MaterialRequirement

Material issuerequest

Material requestreceived

Material issued

Material used forMachine

MaterialRequirement

Material issuerequest

PRraised

PRraised

PRApproved

PO Received& Materialsent

Materialreceived &Stored

CentralT

eam

3) St d l t / I f ti fl f ti i ti



52

3) Study layout / Information flow for optimization.

Space wastages/

Unnecessary facilities/ machines / workstations/ counters

Identify time-space wasters, etc.

4) Process Study (manufacturing or non-manufacturing)



53

4) Process Study (manufacturing or non-manufacturing)

Actual Utilization of machines.

VA/NVA activities during machining cycle.

Operator utilization during Cycle Time

Bottleneck analysis

4 ) A t l hi tili ti



54

4a) Actual machines utilization

NVA Activities shown includes queue wait times, waitingtimes, unnecessary information fill-up, etc which are to beminimized to maximum possible extent.

Operationwise VA-NVA activities for one shif t

0%

20%

40%

60%

80%

100%

10 20 30 40 50 60 70 80 90 100

Op no

Non Value

added time

Value added

time

NVA Activities shown includes set-up time, tool change time,which are to be minimized to maximum possible extent.

4b) VA NVA A ti iti ithi th l ti



55

VA-NVA Activitie

0%

20%

40%

60%

80%

100%

Op #10 Op #20 Op #30 Op #40 Op #50

Operation n

T i m e %

Non Value

added activitie

Value Added

activities

4b) VA-NVA Activities within the cycle time

NVA activities : Dwell, Index, Tool change, etc.

4 )4 ) O t tili ti d i lO

t tili ti d i l



56

4c)4c) Operator utilization during cycleOperator utilization during cycle

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170

Operations

T i m e

( m i n )

MA

OL

OF

Man Time(OL+OF) =

Machine Time (MA) =

min

min

41.048

58.317

Machine Auto

Machine Auto

On Line

Offline

Online – offline processes

4d) Bottleneck Analysis



57

4d) Bottleneck Analysis

0

20

40

60

80

100

120

140

160

180

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Operat ion

C a p a c i ty a s p e r F /F c y c l

R e q u i r e d c a p a c i ty

Cycle Time (C/T)Effective Cycle =Time (RFT) x (U/T)



Manual Information Flow 6) Mapping Icons



59

Electronic Information Flow

Schedule

Signal Kanban

Withdrawal Kanban

Production Kanban

Kanban Arriving in Batches

Kanban Post

Load Leveling

) pp g

Material Flow Icons

Process Outside Sources

Data

Box

Truck ShipmentPUSH Arrow

Finished Goods

to Customers

Inventory

First-In-First-Out

Sequence Flow Supermarket

Withdrawal

General Icons

“Go See”

Scheduling

Sequence-Pull Ball

Buffer or Safety Stock

Operator

UPTIME

CHANGEOVER

Kaizen

Lightening Burst

AssemblyXYZ

Corporation

I…../day

F I F

O

MAX 50 PCS

Kanban Path

Kanban

arriving

in batches

C/T = .. sec

C/O = .. min

… shifts% scrap

Uptime

=

Opn.

Information Flow Icons

PPC6 week

F t90/60/30 day



60

State Street

Assembly

-12,000 L

- 6,400 R

Tray – 20 pcs

2 Shifts

18400 pcs/month

Staging

I

2700 L

1400 R

C/T = 39 sec

C/O = 0 min

2 shifts

RFT 90%

U/T 100%

= 1

Assy. II

I

1200 L

600 R

C/T = 61 sec

C/O = 0 min

2 shifts

RFT 90%

U/T 100%

= 1

Assy. I

I

1600 L

850 R

C/T = 45 sec

C/O = 10

min2 shifts

RFT 75%

U/T 80%

= 1

Weld II

I

1100 L

600 R

C/T = 38 sec

C/O = 10

min2 shifts

RFT 80%

U/T 100%

= 1

Weld I

I

4600 L

2400 R

Daily

I

5 days

C/T = 1 sec

C/O = 60 min

2 shifts

200 Ton

U/T 100%

= 1

Stamping

Shared m/c

Tues/

Thurs

Michigan

PPC

MRP

Weekly

ScheduleDaily Ship

Schedule

Forecast

Weekly Fax

90/60/30 day

Forecast

Daily

Order

7.6 days38 sec 45 sec

1.8 days61 sec

2 days39 sec

4.5 days2.6 days1 sec

5 days

Lead

Time : 23.

daysValue Adde

– 183sec

Current State VSM (dd/mm/yy)

PPC6 week

Forecast90/60/30 day



61

State Street

Assembly

-12,000 L

- 6,400 R

Tray – 20 pcs

2 Shifts

18400 pcs/month

Staging

I

2700 L

1400 R

C/T = 39 sec

C/O = 0 min

2 shifts

RFT 90%

U/T 100%

= 1

Assy. II

I

1200 L

600 R

C/T = 61 sec

C/O = 0 min

2 shifts

RFT 90%

U/T 100%

= 1

Assy. I

I

1600 L

850 R

C/T = 45 sec

C/O = 10

min2 shifts

RFT 75%

U/T 80%

= 1

Weld II

I

1100 L

600 R

C/T = 38 sec

C/O = 10

min2 shifts

RFT 800%

U/T 100%

= 1

Weld I

I

4600 L

2400 R

Daily

I

5 days

C/T = 1 sec

C/O = 60 min

2 shifts

200 Ton

U/T 100%

= 1

Stamping

Shared m/c

Tues/

Thurs

Michigan

Assembly

MRP

Weekly Schedule

Daily Ship

Schedule

Forecast

Weekly Fax

Forecast

Daily

Order

7.6 days38 sec 45 sec

1.8 days61 sec

2 days39 sec

4.5 days2.6 days1 sec

5 days

Lead

Time : 23.

daysValue Adde

– 183 sec

Information

ManufacturingSup

ply

Mat

eria

lfee

d

14 days 4.5 days5 days

Supply Chain

Find out Root causes for problems



62

d out oot causes o p ob e s

In Case of ACME Possible Causes….

Information delay.

Unnecessary controls.

No produce to customer demand.

Shared facility.

Setup time high on shared facility.

No group working (TBWS)

Value Stream Map Improvement



63

Points to note :

1) Equal thrust required on all areas of Supply Chain for improvement.

2) Group working doesn’t necessarily mean reduction of manpower .

It’s a by-product of inventory reduction projects.

3) 80-20 analysis for inventory reduction projects for deciding the

priority of implementation.

4) Categorization of project into “Management Control” and “Group

working”

5) Further categorization of projects into “Investment” Vs “Zero

investment” projects can be done.

6) Emphasis should be on Single Piece Flow from supplier to

customer and waste reduction (in any form)

7) Simple Focused kaizen initiatives could increase productivity.

8) Senior management can focus on Value Stream Map with a global

perspective where as Frontline Leadership can focus on Process

Kaizen for internal processes.



64

Inventory Hides Problems

Poor

Quality

Unreliable

Supplier

Machine

BreakdownInefficient

Layout

Bad

Design

Lengthy

Setups

Evolution of Super-Market concept for manufacturing



65

Evolution of Super-Market concept for manufacturing.

Originated in USA

Taichi Ohno observed this system and adapted the principles to

manufacturing.

Supermarket

a) Just in time availability of all products as per customer

demand.

b) Inventory level Controlled within Super Market.

c) Replenishment supported by KANBAN.

Supermarket & Pull system.Sup

ermarket & Pull system.



66

Customer goes to supermarket

and withdraws whatever he needs.And whenever he wants.

Super Market systematically replenishes whatever is withdrawn

p yp y

Purpose: - •JIT/ Pull System / Inventory control supported byKANBAN•This KANBAN pull acts as a way of controlling

production at supplying process.

SupplyingProcess

NewProduct

“PRODUCTION” Kanban

WithdrawnProduct

CustomerProcess

“WITHDRAWAL” Kanban

Supermarket

Concept of Supermarket



67

Supermarket is a physical place where customer can get

What he needs.

At the time he needs.

In the quantity he needs. ---- JIT

Issues to address in management of the supermarket..

Where to keep supermarket?What to keep in the supermarket?

What should be the issue system?

What should be the re-order points? ---- KANBAN/ Pull

System

Same concept is applied to manufacturing activity.



KANBAN concept



69

KANBAN concept

What is KANBAN?

A simple visual tool which communicates the needs ofcustomer.

Carries information

What to produce.

How much to produce.

When required.

Where required.



70

Kanban Production Control System

A Kanban is a card that indicates a standard quantity of

production (Production KANBAN, Withdrawal KANBAN)Kanbans maintain the discipline of pull production

- A production kanban authorizes production

- A withdrawal kanban authorizes the movement

of goods

KANBAN issue Systems

Two bin

Card KANBAN

Signal Kanban

How KANBAN works



71

Customer

Assembly line Finish Goods Storage.

M

Sub-assembly line finish parts storage.

P

Assembly Parts Storage.

Purchase

d parts

Storage

M

Assembly

LineM

Manufactured Parts Storages

P

Sub-Assembly

LineSub-Assembly Parts

Storage.M

Raw Material and purchased parts storage.

P Manufacturing Shops

Suppliers

M

M

M

M



72

A Sample Kanban

Machining

M-2

Assembly

A-4

Part no.: 7412

Description: Slip rings

From : To:

Box capacity 25

Box Type A

Issue No. 3/5



73

Future Value Stream Map

(Target Date : dd/mm/yyyy)

Deriving Future State Map



74

Step by step approach.

a) Decide TACT Time.b) Decide location of supermarkets.

c) Decide batch quantity & Kanban Quantity.

d) Define inventory levels in supermarkets.

e) Define start point of Continuous flow “Make one – Move one.” Define the

scheduling point.

f) Integrated Maintenance Management

g) List out and categorize Improvements Projects for developing value stream

map.

a) Define TACT : Time Available to Complete Task



75

Time Available / shift

TACT =

Customer Demand / Shift

TACT for ACME

Available Time = 510-30-10-10

( per shift) = 460 min

Production rate required per shift

= 460 units/shift

460 min

TACT =460

= 1 min

= 60 sec

TACT = Takt (Japanese word for Rhythm)

TACT synchronizes pace of productionTACT synchronizes pace of production

59 sec.

59 sec.

59 sec.

59 secExample : .

b) Decide Supermarket location



76

Determining the Supermarket Locations

Check where continuous flow part is disturbed.

Check where is the variability in the output or where are the shared facilities.Then based on the present scenario put supermarkets.

In Case of ACME

After Stamping there is continuous flow. This flow is disturbed at the shipmentarea since only one shipment / day.

Before Stamping also there is no continuous flow.So supermarkets are required at ..

i) At material receipt.

ii) After Stamping

iii) At Shipping

c) Decide batch quantity.



77

Determining the Batch Quantity.

Check what is unit load transport.

Check what is customer requirement of batch.Check what is economic batch quantity for production purposes from setups pointof view.

In Case of ACME

Since customer requirement is in multiples of 20-bracket trays, this is the choice

for KANBAN size.Since 10 trays go on one pallet it’s a batch quantity.

Setup problem exists at stamping machine but it is then resolved by putting up asupermarket.

d) Inventory levels in supermarket.



78

Determining size for supermarketsThis decision is more of a strategic type & with some logic.

Lets consider case of ACME

Supermarket 1 – Before stamping consider 0.5 day safety stock

(till we reduce the changeover time) +1 day rolling = 1.5 days.Supermarket 2 – After Stamping

Stamping is a shared facility, and setup time high. Also difference in

Stamping cycle time and TACT is very high.

So lets consider 1.5 day stock after stamping. (till we reduce changeover

time.)

Supermarket 3 – At Shipping area

Customer accepts the parts in a batch of 200 and as a requirement 920

brackets/day. For the next day there should be enough quantity so lets

consider 1.5 days stock at shipping.

e1) Single piece flow – Stage working I



79

Stage working : Present

1

3938

6145

0

10

20

30

40

50

60

70

Stamp Weld I Weld II Assy. I Assy. II

C/T (sec)

Manpower = Total Time/ TACT

= 183 sec/60sec

= 3.05 (4 Persons)

TACT = 60 sec

TACT Line = 60 sec

Identify pacemaker

process.

e2) Single piece flow – Stage Working II



80

Stage Work : Concept of effective C/T

1 1 38 394561

4875 68 44

0

20

40

60

80


C/T (sec)

Ef fective C/T


= 183 sec /60 sec

= 3.05 (4 persons)

TACT Line = 60 sec.

Cycle Time (C/T)Effective Cycle =Time (RFT) x (U/T)

e3) Single piece flow – Stage Working III



81

Stage working : Before

139

6138 45

0

10

20

30

40

50

60

70


Group working : Phase I

138 5045 50

0

10

20

30

40

50

60



= 183 sec/60sec

= 3.05 (4 Persons)

TACT = 60 sec


= 183 sec /60 sec

= 3.05 (4 persons)

TACT Line

TACT Line

Aim : Define group working.

e4) Single piece flow – Stage Working IV



82

Aim: Productivity Improvement

How : Identify Kaizen’s in that would

help in this direction.

How much:

1) Total time 183 min (excluding

Stamping)

2) Manpower requirement – 3.06

3) Plan for Kaizen's to reduce 4 work

stations to 3 to be manned by 3

operators.

Kaizen's Required :

1) Total work <180 sec.

2) Weld change over time reduction.

3) Welder uptime increase.

KaizenBurst

Manpower Required

= Total Work content

TACT= 170 = 3 persons

60

Group working : Phase I

1 56 57560

10

20

30

40

50

60

Stamp Station1 Station2 Station3

TACT Line

e5) Group working and Single piece flow.



83

Four welding and assembly process boxes to

be combined into one process box.

It indicates continuous flow.

A small schematic sketch shows cellular

manufacturing idea.

C/T = 57 sec

C/O = 0 min

2 shifts

0% scrap

Uptime 100%

= 3

LH

RH

Stamping

f) Integrated Maintenance Management



84

Maintenance Types

Planned Maintenance

Unplanned or breakdown Maintenance

TPM

Essentials of Plant Maintenance

Spares Management

Skilled manpower availability

Capable Equipments availability (Short term / long term)

MIS for MTTR and MTBF

Factors affecting maintenance management

Line Vs Batch production

Service level (MTTR and MTBF)

Planned Vs unplanned maintenance strategy, TPM

Capital expenditure, revenue budgets

In-house Vs External maintenance

Why Maintenance Management

Why maintenance management



85

Why maintenance management

Productivity

Quality

Cost

Delivery

Maintenance Types



86

1. Planned Maintenance Strategies

Proactive approach

Scheduled maintenance

Online and Offline maintenance concept

Costs

1. Unplanned or breakdown Maintenance

As breakdown happens, reactive

Make Available right people at right time

Spares management becomes critical

Administration & costs

1. TPM

Active involvement of the associate/ worker w orking on the particular machine

Work as a team with Maintenance

Autonomous maintenance by associate

Essentials of Plant Maintenance



87

1. Spares Management

History Management

On time, Right time, Right quantity, Right Place

Optimized Inventory,

Spares Life Management, spares disposal

MRP for spares management

1. Skilled manpower availability Skilled manpower to be available at right time

Multi-skilling is the key

Can be hired but at additional cost

1. Capable Equipments availability (Short term / long term)2. MIS for MTTR and MTBF

Evaluate and track MTTR/ MTBF

Monitor and Launch improvement projects to improve

Kano Diagram : Spares Management



88

DissatisfiedFeeling

SatisfiedFeeling

PhysicallyFulfilled

Condition(Need is met)

(Need is not met)

" O n e

D i m

e n s i o

n a l " Q u a

l i t y

Kano Diagram : Spares Management

•Reduction in spares inventory.•Reduction in obsolete spares

inventory.• Auto requisition generation based on MRP• Access to spare master from any desktop• Disposal of spares associated with machine in

case of any machine disposal.

• Machine wise Spares consumption tracking.• Centralized Spares purchasing cell.

• Decision support for what / when and how much toprocure..

• Machine wise critical spares list availability.

• Various MIS reports.

Factors affecting maintenance management

1



89

1. Line Vs Batch production

Different resources for line Vs Batch production

Different strategies for improvement

1. Service level (MTTR and MTBF)

Zero Breakdown - What is service level expected

How critical – define before establishing processes

Decide internal and external Support

1. Planned Vs unplanned maintenance strategy, TPM Planned maintenance is desirable always

TPM improves MTBF

Its proactive

1. Capital expenditure, revenue budgets : Need to decide first

2. In-house Vs External maintenance

Outsourcing is the strategy, or need of the hour.

May outsource if In-house capability is unavailable, Less capacity

problem can be solved by improvements.

Based on Value Stream Map priority complete uptime improvement projects



PPC

Michigan

Steel Co.Daily Order

6 week forecast

State Street

Assembly

90/60/30 dayForecast

D il



91

Stamping

Daily

Coils

I

Daily Order

LH

RH

LH

RH

C/T =180 sec

C/O = 0 min

2 shifts

0% scrap

Uptime 100%

= 3

Weld+Assy

20

Staging

Shipping

tote

1 sec1.5 days

Lead Time :

4.5 days

Value Added

– 180 sec

1.5 day180 sec

1.5 days

Assembly

-12,400 L

- 6,400 R

Tray – 20 pcs2 Shifts

18400 pcs/month

Daily

Daily

Order

20

Daily Order

Load Leveling

20Batch

SMED

ACME Improvement Summary



92

(Days) Coils Stamped

parts

Weld/

Assembly

Finished

Goods

Production

Lead Time

Total

InventTurns

Before 5 7.6 6.5 4.5 23.5

After 1.5 1.5 0 1.5 4.5

ACME stamping Lead Time Improvement

"If you can reduce your lead time by 75%, your productivity will

be doubled and your cost per unit will go down by 20%." - Rick

He calls this the 75/2/20 Rule.

- X’ Manager in assembly at Toyota Motor, Georgetown, KY.



94

Advantages of Value Stream Mapping.

1. Relates to supply chain.

2. Links all the resources to customer requirements.

3. Provides blueprint for strategic planning.

4. More useful than quantitative tools

5. Ties together lean concepts and techniques.

6. Uses Basic IE techniques for analysis.

Misunderstanding about VSM



95

1. VSM does not equal “flow analysis” or the process of designing

and creating optimum product flows

2. VSM, or Takt time, or “lean flow,” is only useful in highly

repetitive, high volume, low variety manufacturing

3. People tend to confuse between Pacemaker process and

bottleneck.



It becomes our

“Next Current State Map”

Once we achieve Future State Map

toyota production system lean

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