Lean Production and Agile

Manufacturing

7th Sem
 Lean Production
 Doing more with less inventory, fewer
workers, less space
 Just-in-time (JIT)
 smoothing the flow of material to arrive
just as it is needed
 “JIT” and “Lean Production” are used
interchangeably
 Muda
 waste, anything other than that which
adds value to the product or service
Waste in Operations
Waste in Operations (cont.)
Waste in Operations (cont.)
 Basic Elements

1. Flexible resources
2. Cellular layouts
3. Pull production system
4. Kanban production control
5. Small lot production
6. Quick setups
7. Uniform production levels
8. Total productive
maintenance
9. Supplier networks
 Flexible Resources
 Multifunctional workers
 perform more than one job
 general-purpose machines perform
several basic functions
 Cycle time
 time required for the worker to complete
one pass through the operations
assigned
 Takt time
 paces production to customer demand
Standard Operating
Routine for a Worker
 Cellular Layouts

 Manufacturing cells
 comprised of dissimilar machines brought
together to manufacture a family of parts
 Cycle time is adjusted to match takt time
by changing worker paths
Cells with Worker Routes
Worker Routes Lengthen as
Volume Decreases
 Pull System

 Material is pulled through the system when

needed
 Reversal of traditional push system where
material is pushed according to a schedule
 Forces cooperation
 Prevent over and underproduction
 While push systems rely on a predetermined
schedule, pull systems rely on customer
requests
 Kanbans

 Card which indicates standard quantity

of production
 Derived from two-bin inventory system
 Maintain discipline of pull production
 Authorize production and movement of
goods
Sample Kanban
 Origin of Kanban
a) Two-bin inventory system b) Kanban inventory system

Bin 1
Kanban
Bin 2
Reorder
card Q-R
R R

Q = order quantity
R = reorder point - demand during lead time
 Types of Kanban

 Production kanban  Signal kanban

 authorizes production of  a triangular kanban
goods used to signal
 Withdrawal kanban production at the
previous workstation
 authorizes movement of
goods  Material kanban
 Kanban square  used to order material in
 a marked area designated advance of a process
to hold items  Supplier kanban
 rotates between the
factory and suppliers
 Small Lots

 Require less space and capital

investment
 Move processes closer together
 Make quality problems easier to
detect
 Make processes more dependent
on each other
Inventory Hides Problems
Less Inventory Exposes Problems
 Components of Lead Time

 Processing time
 Reduce number of items or improve efficiency
 Move time
 Reduce distances, simplify movements, standardize
routings
 Waiting time
 Better scheduling, sufficient capacity
 Setup time
 Generally the biggest bottleneck
 Quick Setups

 Internal setup  SMED Principles

 Separate internal setup from
 Can be performed
external setup
only when a
process is stopped  Convert internal setup to external
setup
 External setup
 Streamline all aspects of setup
 Can be performed
 Perform setup activities in
in advance
parallel or eliminate them entirely
Common Techniques for Reducing
Setup Time
Common Techniques for Reducing
Setup Time (cont.)
Common Techniques for Reducing
Setup Time (cont.)
Uniform Production Levels

 Result from smoothing production

requirements
 Kanban systems can handle +/- 10%
demand changes
 Smooth demand across planning
horizon
 Mixed-model assembly steadies
component production
Mixed-Model Sequencing
 Quality at the Source

 Visual control  Jidoka

 makes problems visible  authority to stop the
production line

 Poka-yokes  Andons
 call lights that signal
 prevent defects from
quality problems
occurring
 Kaizen  Under-capacity
 a system of continuous
scheduling
improvement; “change for  leaves time for planning,
the good of all” problem solving, and
maintenance
Examples of Visual
Control
Examples of Visual
Control (cont.)
Examples of Visual
Control (cont.)
 Total Productive
Maintenance (TPM)

 Breakdown maintenance
 Repairs to make failed machine operational
 Preventive maintenance
 System of periodic inspection and
maintenance to keep machines operating
 TPM combines preventive maintenance
and total quality concepts
 TPM Requirements

 Design products that can be easily produced

on existing machines
 Design machines for easier operation,
changeover, maintenance
 Train and retrain workers to operate machines
 Purchase machines that maximize productive
potential
 Design preventive maintenance plan spanning
life of machine
 5S Scan Goal Eliminate or Correct
 Seiri  Keep only what you  Unneeded equipment, tools, furniture;
(sort) need unneeded items on walls, bulletins; items
blocking aisles or stacked in corners;
unneeded inventory, supplies, parts; safety
hazards
 A place for  Items not in their correct places; correct
everything and places not obvious; aisles, workstations, &
 Seiton everything in its equipment locations not indicated; items not
(set in order) place put away immediately after use
 Cleaning, and  Floors, walls, stairs, equipment, & surfaces
 Seisou looking for ways to not lines, clean; cleaning materials not easily
(shine) keep clean and accessible; labels, signs broken or unclean;
organized other cleaning problems
 Necessary information not visible; standards
 Maintaining and not known; checklists missing; quantities and
 Seiketsu monitoring the first limits not easily recognizable; items can’t be
(standardize) three categories located within 30 seconds
 Sticking to the rules  Number of workers without 5S training;
 Shisuke number of daily 5S inspections not performed;
(sustain) number of personal items not stored; number
of times job aids not available or up-to-date
 Supplier Networks

 Long-term supplier contracts

 Synchronized production
 Supplier certification
 Mixed loads and frequent deliveries
 Precise delivery schedules
 Standardized, sequenced delivery
 Locating in close proximity to the customer
Benefits of Lean
Production
 Reduced inventory
 Improved quality
 Lower costs
 Reduced space requirements
 Shorter lead time
 Increased productivity
Benefits of Lean
Production (cont.)
 Greater flexibility
 Better relations with suppliers
 Simplified scheduling and control activities
 Increased capacity
 Better use of human resources
 More product variety
 Implementing Lean Production

 Use lean production to finely tune an

operating system
 Somewhat different in USA than Japan
 Lean production is still evolving
 Lean production isn’t for everyone
Lean Services

 Basic elements of lean

production apply equally to
services
 Most prevalent applications
 lean retailing
 lean banking
 lean health care
 The concept of Agility

 Market sensitive
 Supply chain is capable
of reading and
responding to real
demand
 Virtual
 Information-based
supply chain, rather
than inventory-based.
Agile supply chain
 The concept of Agility
 Network based
 EDI and internet enable
partners in the supply
chain to act upon the real
demand
 Process integration
 Collaborative working
between buyers and
suppliers, joint product
development, common
systems and shared
information Agile supply chain
 The concept of Agility

 Demand characteristics and supply

capabilities
end-customers Efficiency, cost
Lean supply chain1980’s
become more
knowledgeable Focus
about product Agile supply chain1990’sResponsiveness
Comparison of characteristics of lean
and agile supply
Application of leagility: the de-
coupling point approach