Lean Production

Week 4: Standardization

Tran Van Ly
Industrial Engineering & Management
International University
Email: tvly@hcmiu.edu.vn 1
Room: A2-504 21/04/08
 Recall previous week
Key term Operational Definition/Formula
MTBF Total uptime/Number of failures
MTTR Total downtime/Number of failures
OEE OEE = Availability x Performance x Quality
Availability (%) (total time available - down time)/total time available
number of units manufactured/possible number of units
Performance (%)
(Operating Speed Coefficient)*(Net Operating Rate)
Operating Speed
Actual cycle time/Design Cycle time
Coefficient
Net Operating Rate Actual # of units produced/calculated # of units produced
Quality (%) (# of units produced - # of defects)/ # of unit produced
Target of TPM “zero breakdown”, maintain/restore machine to basic
conditions
5S Sort; Set in order; Shine; Standardize & Sustain
2
 Learning Objectives
Standardized work
Takt time/cycle time, work
sequence, in-process stock
Auditing standardized work

3
 What do we have to manage?

Productivity
Man Quality
Machine Cost
Plant
Material Delivery time
Method Safety
Environment
Moral

• Utilization of Machine or People?

• Utilize machine: --> wasteful activities
- Run machines constantly and as fast as possible --> overproduction muda
- Retain extra people to keep machine running
- Increase WIP to cover problems & keep machines running
• Utilize people --> flexibility
- Move from machine to machine to make items
- Load machines and transfer parts easily
- Easily adjust work cycles in response to demand changes
• Standardized work is a tool for developing, confirming, and
improving method (process), which is a set of steps or actions with
clearly defined goal (tell us what, when, how)
 Methods engineering vs. Lean thinking
Unwritten assumptions of IE Toyota
practice (Fred Taylor)
There is a single best way There is no one best
(and the engineers will find it) way to do the work
Workers are not involved in Workers should
designing the work or making design the work
improvements
Standards rarely change (and Improvement is
only the experts can change endless & eternal 
them) The purpose of
standardized work is
to provide a basis for
improvement
 Why Standardization?
• Creation of standardized processes is based on
defining, clarifying (making visual), and consistently
utilizing the methods that will ensure the best possible
result
• If a process is not standardized (random & chaotic) and
improvements are made, what was improved?
• If a person creatively improves the work but it does not
become a standard?
• Standardization is not a set of documents that are
prepared and carefully controlled. It is a means of
creating the most consistent performance possible, the
basic process for stability
• Standardization helps to create a platform from which
to enable teams to continuously improve the process
Why Standardization?
 Why standardization?
• Process stability
• Clear stop and start points for each process
• Organizational learning
• Audit & problem solving
• Employee involvement and error-proofing
(poka-yoke)
• Provides baseline against which we measure
improvement
• Training
Prerequisites for standardized
work
• We cannot work to standards when
there are continuous line stoppages
and slowdowns, due to
- Quality problems with incoming parts Jidoka
- Problems with machinery 5S, TPM
- Part shortages
JIT
- Wait for parts to work on
- Safety problem 5S, TPM
 The elements of standard
operation
• Standard operation routine: Best way to do
process (number of worker, work sequence, no
wasteful motions)
• Takt time: Line balancing among all processes in
terms of production timing
• standard quantity of WIP: Minimum number of
units necessary for the standard operations to be
performed by workers --> eliminate excessive WIP
 Determining the components
of Standard Operation
1. Determine takt time
2. Determine completion time per unit
3. Determine standard operation routine
4. Determine standard quantity of WIP
5. Prepare the standard operation sheet

Performed by Foreman, IE staff?

 1. Determine takt time
• Takt time = Effective daily operation time/required
quantity per day
(doesn’t count rest time and over time)
• Example: Daily order is 890 units and we operate two
445-minute shifts, our takt time would be:
Takt =
We would have to produce one product every ______
minute
• Takt time also allow us to grasp our condition at a
glance
• Takt time differs from cycle time (actual time to
complete a process)  synchronize takt time and
cycle time
 Cycle time

--> Allow to identify bottle neck at a glance

 Takt time, Cycle time, Flow time
 Cycle time = max time spent at any station
 Flow time = time to complete all stations
production time available
Cd (takt)=
desired units of output

1 2 3
4 minutes 4 minutes 4 minutes

Flow time = 4 + 4 + 4 = 12 minutes

Cycle time = max (4, 4, 4) = 4 minutes
Efficiency: Flow time/(#of WS*Cycle time)  Balancing
 2. Determine completion time
per unit
• Completion time per unit (C): Time required for a single unit to be processed
• Production capacity chart:
- Basic time:
+ Manual operation time (determined by the foreman)
+ Machine processing time
+ Completion time per unit
- Tool’s exchange
+ Exchange unit (interval between changes)
+ Exchange time (set up time)
2. Determine completion time
per unit
• Production capacity chart:
- Production capacity
N: Production capacity (unit)
T m: setup time per unit
N (exchange time/ exchange
Cm unit)
C: Completion time per unit
T: Total operation time
Production capacity sheet
 3. Determine standard operation
routine
• Synchronize takt time and cycle time
• Standard operation routine: order of actions
that each worker must perform within a given
cycle time
• The approximate range of processes which
one worker can handle should be determined
• The allocations of various operations among
workers must be such that each worker can
finish all of his assigned operations within the
specified cycle time
• Order of process and operation routine are
not identical in many cases
Allocation of operations and layout of
processes
 Exercise: Production capacity
1. Operational time = 460 min per shift; Process time = 24s/part
Time needed to replace grinding wheel = 30s, Interval = every 1000
parts: Production capacity =?
2. Total 1-shift production time available (excluding break
time) is 7.5 hours. There are 2 shifts per day. Average
downtime per day (not included change over time) is 40
minutes. Determine the available time for changeovers per
day and the desirable number of changeovers per day

Part# Average demand Cycle time per Average change over

per day (pieces) piece (seconds) time (minutes)
A 250 40 50

B 350 45 50

Determine best batch sizes

 Example - Determine
completion time per unit and
standard operation routine
There are 8 working hours per day. Demand per day is 240 units:
Calculate takt rate, fill in the capacity sheet below and draw the layout
of processes for the worker
 3. Determine standard operation
routine
• Standard operations routine sheet
(Standardized work combination table)
shows:
- Work elements and their sequence
- Time per work element
- Operator and machine time
- The interaction between operators and
machines or between different operators
 3. Determine standard operation
routine
1. Get the manual operation and machine processing
times for the first machine
2. Choose the second operation of the worker and so
on to cover all of the estimated number of
processes that a worker can handle
3. If the final wind-up point meets the red-line of cycle
time, the operation routine is an approriate mix
4. The foreman actually try to perform the final
standard operations routine. If ok, teach to the
workers
Standard operation routine
Standard Work analysis Chart Help to rationalize lay
out and to train worker, comprises:
- The work layout
- Process steps and times
- Critical quality and safety items
- Standardized WIP stock
 Example – Waiting time

Too much waiting time at the end of the operation

routines?
+ double cycle time or improvement in the operations
to insert one more operation into the cycle time
+ Insert one more operation
 What if
• If demand increases?
Takt time = daily operation time/ required quantity per
day
 Increase operation time if demand does not increase
too much
-->Determine demand takt time cycle time in
advance
• Select a demand number that will be sufficiently high
enough to meet the need most of the time
• Cycle time: improved based on eliminating more
waste
“No problem” because the pool of waste is large, but
need not to waste effort by falsely inflating the
demand”.
 One shot setup

Example: M1 --> M2 --> M3 --> M4

4 machines are handled by a multi-functional worker. The worker is now processing part A and he
must next process part B.
• When the worker should start to change the setup for production of part B?
• What is the requirement for the setup time?
 4. Determine standard
quantity of work in process
• Minimum number of units necessary for the
standard operations to be performed by workers
--> eliminate excessive WIP
• Required WIP depends on:
o Quality checks require additional work pieces
o Temperatures must fall before next operation
can commence
o Machinery cycles automatically
o Machine operation is in verse order of the
processes
 4. Determine standard
quantity of work in process
• Little’s Law: Lead Time = Cycle Time*WIP
Standard operation sheet
 5. Preparing the standard
operations sheet
• Cycle time
• Operation routine
• Standard quantity of WIP
• Net operating time
• Positions to check product quality
• Positions to pay attention to worker
safety
 Summary/Homework
Takt time: can we measure? What does it mean?
How to get this metric?
What is Little’s Law? What does it mean? Give Examples
and explain
There is a demand 1200
Work elements Precedence Process Time
units. A production line with 8
working hours per day. (minutes)
What is the takt time, flow
A - 0.1
time and cycle time?
B A 0.2
C A 0.4
D B, C 0.3
E D 0.2
F E 0.3