Welcome to In-House training Programme on

LEAN MANUFACTURING

Brought to you by

ALLIANCE INDIA
www.allianceindia.co.in Tel.: 022-28592800 Email:reachus@allianceindia.co.in
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Welcome to Presentation on KAIZEN

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KAIZEN UMBRELLA

Customer orientation TQC (Total Quality Control)

KANBAN (Card System) Quality Improvement Just - in -time Zero defect production Small group activities

Robotics
QC Circles Suggestion system Automation Discipline at work TPM (Total Productive Maintenance)

Co-operative labour and

management relations. Productivity improvement

New product development

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What is KAIZEN ?
The Japanese word KAIZEN means Continuous Improvement

KAI - Change
- Number of

times

ZEN - Good or better

- Self Realisation

Kaizen - Origin
Kaizen is Kanji word. Kanji is Chinese language. Kai - Change , Zen -Good Kaizen = Change for better ( Taiichi Ohno & Toyoda started in Toyota - 1960 )
Cummins India Limited

Kaizen A Journey of thousand leagues Begins with a single step

January 2002

It is proven philosophy used world over for organisational growth and competitive environment ( Toyota, Cannon, Sony, Hyundai, Honda, Tourism in Mauritius ) Kaizen emphasises developing culture of continuos improvement. Human being at center Kaizen is beneficial in every walk of life. "To improve is to change. To be perfect is to Change often."
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" It's the constant and determined effort that breaks down all resistance, sweeps away all obstacles." - Claude M. Bristol Dedicated Resources + Concentrated Efforts = Success of any Activity - Steve Chapman
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- Why Kaizen?
Continuous Improvement is the need for survival in Global competitive environment - Safety - Quality, - Productivity Develop Culture - Everybody can participate in Improvement activity. Cost Saving - Ultimate benefit to Customer 8% reduction /year from suppliers of Toyota A Total Quality culture for survival ---

Quality is state of mind!

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- Why Kaizen ?
Waste Elimination is the FOCUS Anything other than the minimum amount of equipment, material, parts and working time absolutely essential to production.
Wastes in a factory 1. Over production 2. Inventory 3. Product defects 4. Rework 5. Transportation 6. Waiting time 7. Search time 8. Non value activities Losses in Equipment 1. Breakdown 2. Set up & adjustment 3. Reduced speed 4. Defects in process 5. Tool change 6. Start up 7.Minor Stoppages
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- How to Practice
Kaizen starts from Top Management

Understand the Kaizen Concept

Involve everybody in implementation

Maintain the improvements

Support the Team Concept for developing the Kaizen Culture Recognize / Appreciate others also Be Advocate for Kaizen

Practice and Teach - i.e. Preach Kaizen

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Ground Rules
Kaizen Believes in Team Work Zero investment - Optimize current equipment and resources. Do not plan on spending big money. Discard conventional fixed ideas for production Think of how to do it, not why it cannot be done. Correct mistakes at once for Customer delights. Do not make excuses, question current practices. Do not wait for perfection, do it right away. Wisdom is brought about when faced with hardship, Eliminate or reduce when we can see and feel the waste. Ask Why five times and seek root causes. Seek the wisdom of ten rather than the knowledge of one. Kaizen never stops.
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KAI Change ZEN For Better KAIZEN Change For Better

KAIZEN

Continual Improvement
Problem in tree stage (Disasters at workplace)

1 30 300

Problem in sapling stage Problem in seed stage.(Signals ignored)

Fatal Accident Near Misses Unsafe Action

Problems at the Work Place

Continuous progress through People Involvement

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- 5 S as Foundation
Kaizen Museum

1. Seiri

Sorting

2. Seiton 3. Seiso -

Systematic Arrangement
Spic and Span / TPM

(Cleaning with inspection)

4. SeiketsuStandardized workplace

5. ShitsukeIndia Limited

Self Discipline

5 S linked with productivity

5 S - Objectives
Just - in - time Manpower optimization Visual Management Human automation Changeover Multi process handling

Step 5 standard operations Step 4. Leveling Step 3. Flow manufacturing

Maintenance & Safety Quality assurance Kanban

Step 2. The 5 Ss

( foundation for factory improvement )

Step 1. Awareness revolution ( prerequisite for factory improvement )

India Limited

- Gemba Kaizen -3 Gs Importance

Gemba - Work place e.g. m/c & surroundings area,table & surroundings Assembly Station, test cell etc. Gembutsu - Problem piece e.g. All objectives related to improvement in Gemba Genjitsu - Real time

e.g. Observe the things

while happening or at the earliest after happening for getting the facts / real information.

Gemba Kaizen means - Improvement at your work place. Team is important in Gemba Kaizen. Look at the work place to find out avenues for Kaizen through 3 D approach.
India Limited

- To Start with...
How to start? - For initial work Use 3D approach

Dirty :

Dangerous : Difficult :

oil / coolant / air .... leakages , chips and burr on floor Accumulated dust, etc. Unsafe working conditions Movements

- Difficult to move, - lift assembly - not ergonomical situations

* Results in employee satisfaction & improved morale * Makes job easier, simpler, safer and faster * Increases efficiency * Happier Customer * Overall improvement of organization
India Limited

Innovation & Kaizen

1
30 300

Kaizen is a small improvement carried out by the person in his own workplace with nil or negligible investment.
India Limited

Kaizen Tools
1 O Opportunity Tag Gemba Kaizen 5 S Activities 7 Step Project Kobetsu Kaizen Material Feed System Layout Modification -Small Improvement - keeping in mind 1-30-300 triangle. Avoid major stoppage by proactive methods - Structured process for Involvement, Registration and tracking of every small improvement - Focused work station improvement for elimination of waste - Improvements owned by associates - Seiri, Seiton, Seiso, Seiketsu, Shitsuke. Disciplined approach for lean management . - Foundation for JIT. Develop culture of discipline

2 3 4 5 6 7

-Quality improvement projects taken from PPM chart / Customer complaint -Team work for resolving through 7 step structured process ( 5W1H, CEdac chips, 5 Why, root cause )
-Focused improvement under taken for quality / waste elimination ( Kit improvement )

- Inventory control through 5 S, 2 Bin System, Movement reduction / Linkage upto supplier order ) -Global layout with assembly at centre & local layout in form of feeding system -U shape layouts for synchronization of flow and inventory control.. Improve material handling - Step by step reduction in inventory with final aim of JIT. ( Zero - Breakdown, Accident, Defect)

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One Piece Flow

-Activities include -1S 2S, Transparency, MISER , to improve availability Model Machine -OEE improvement through EYE chart, 3S 3M chart, 5S Before and After monitoring each week

10 11 12

Eye Chart SMED MISER

-7 Step problem, Pokayoke etc. are sourced from these OEE charts -Common chart for all BUs to note down quality defect. -Reduction in set up time by study of set up change activities video film -Separating internal and external activities. Modifications in fixtures, auto clamping, etc - M-minimize, I- improvise, S- simplify, E- eliminate, R- reduce --- Continuous improvement - Failsafing for operators un-intentional mistake and total quality improvement - Cost reduction by attacking poor quality, kit shortages, handling improvement - Making a list of improvements by reviewing quality problems and customer complaint - These points will be used for ordering new machines or making improvements in new product - Consumption based material procurement system. Ensures availability of material with minimum inventory

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POKAYOKE

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IFC ( Initial Flow Control) KANBAN O Tag Campaign Office Kaizen

15 16 17

- To increase awareness for Safety, PokaYoke, Dirty, Difficult , Danger and Deterioration
- Apply kaizen tools for increasing effectiveness and reduce delays ( quick response ) -Training for acquiring new skills at Gemba.. Improves employees on continuous basis.

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Training

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PQCD / MoP

- These are measures of performance for whole factory contributed by individual business units - Review and correction is needed every month in 5S Before After chart -This technique is used to identify root causes in human elements while solving problems using accumulated knowledge / skills developed in a individual. This technique is based on communication in two entities in open environment & positive attitude towards problem resolution. To impart skills leading to increase of productivity of employees and motivate them

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JOHARI WINDOW BMT ( Behavioral Modulation Technique) Recognition

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Recognition is most important for any human being. In kaizen activities we take care of appreciating every improvement either by individual or by team. The theme is Making everybody a hero. There are 44 ways of appreciating employees without actual monitory gains or amount. - Idea generation is done through Turbo Kaizen & implemented using Kaizen tools. -Kaizen activities help faster implementation of cost saving ideas. Ergonomics was coined from the Greek words ergon (meaning "work") and nomos (meaning "rules). Fit the task to the person, not the person to the task. A good way to understand what ergonomics means is to think about the term "user-friendly." Machine layout is modified in such a manner that flow of material from one machine to other machine is maintained without energy consumption by taking advantage gravity.

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Turbo Kaizen

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Ergonomics

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Karakuri

Welcome to Presentation on OFFICE KAIZEN

- Why Office Kaizen? What are its benefits? To improve productivity, efficiency in the administrative functions and identify and eliminate losses. This includes analyzing processes and procedures towards increased office automation. Benefits: Involvement of all people in support functions for focusing on better plant performance Reduction in administrative costs - Reduced inventory carrying cost Better utilized work area - Reduce repetitive work Motivate people in support areas - Multiskilling in support areas Some evident results are: - Reduced inventory levels in all parts of the supply chain - Reduction in number of files - Reduction of overhead costs (to include cost of non-production/non capital equipment) - Productivity of people in support functions - Breakdown of office equipment - Reduced manpower - Customer complaints due to logistics - Expenses due to emergency dispatches/purchases - Clean and pleasant work environment.

- How to define P Q C D S M in Office Kaizen?

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Each company will have to define for themselves, looking at all losses, which affect plant performance: These are some examples: P Production output lost due to want of material Manpower productivity Production output lost due to want of tools Q Mistakes in preparation of cheques, bills, invoices, payroll Customer returns/warranty attributable to BOPs Rejection/rework in BOPs/job work Office area rework C Buying cost/unit produced Cost of logistics inbound/outbound Cost of carrying inventory Cost of communication Demurrage costs D Logistics losses(Delay in loading/unloading) Delay in delivery due to any of the support functions Delay in payments to suppliers Delay in information S Safety in material handling/stores/logistics Safety of soft and hard data M Number of kaizens in office areas

- How to start office Kaizen ?

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Steps followed are: - Providing awareness about office Kaizen to all support departments - Helping them to identify P, Q, C, D, S, M in each function in relation to plant performance. - Identify the scope for improvement in each function - Collect relevant data - Help them to solve problems in their Circles / Teams - Make up an activity board where progress is monitored on both sides results and actions along with Kaizens. How to identify losses in office Kaizen? In each functional area identify the losses separately and add them up to build up a master plan for Office Kaizen. For example: - office equipment breakdown - communication channel breakdown, telephone and fax lines - time spent on retrieval of information - non availability of correct on line stock status - customer complaints due to logistics - expenses on emergency dispatches/purchases - cost reduction on non-production/non capital items

- How to select Kobetsu Kaizen topics from Office Kaizen? Kobetsu Kaizen topics are selected aiming at: --

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Inventory reduction Lead time reduction of critical processes Motion & space losses retrieval time reduction. reducing or eliminating office work flow stagnation equalizing the work load analyzing for no material areas and improving them Improving the office efficiency By eliminating the time loss on retrieval of information By achieving zero breakdown of office equipment like telephone and fax Lines, Xerox machine etc

- PPM Chart IN OFFICE

Weekly PPM Value
2500 2000 1500 24000 20000

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Month PPM Kaizen Month PPM Kaizen Nov 96667 Dec Jan Feb 93333

Daily PPM Value for Feb. - 2001

Mar.
136667

136667 110000

56
April 58333 May

46

153
June July

46 Aug

29

PPM Value

1000 500 0

16000 12000 8000 4000 0

90

PPM

2 Week

Date

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

Defects DATE
SUNDAY SUNDAY SUNDAY SUNDAY

MONTHLY Total Defect s 0 16 0

Sr. no

Defects Expressed in 5W 1H Fassion

3 4 5

OFF

8 9 10 11 12 OFF 0 0 0 1 0 1 0 1 0 0 0

15 16 17 18 19 OFF 0 1 0 1 2 1 0 0 0 0 0

22 23 24 25 26 OFF

29

30

PPM 0 53333 0

1 BILL OF MATERIAL CHANGE 2 SUPPLIER FAULT 3 BUYER FAULT ENGINE PREPONED / 4 ADDITIONAL ENGINE 5 RRP-REQT RPORT PROBLEM 6 STOCK DESCRIPANCY 7 QUALITY / SOURCING ISSUES 8 DELAY GRR POSTING 9 TRANSPORTATION PROBLEM Total Defects

0 0

0 2 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 0 1 1 1 0 0 1 0 1 2
3333 3333 3333 3333 3333 3333 6667 0 0 0 0 0 0 0 0 0 0 0

0 1

1 0 0 0 3 0 0 0 0 0
3333 8333 0 0 0 0 0 0 0 0 0

0
20000

6
0

0 0 0 0 0 0 0.5 1666.7 0 0 1 17.5 58333

Number of active parts for a month=300 NOS Defects Per Million

2222 2222

MONTHLY PPM

Weekly PPM

556

What : Short of material while Pulling Why : Various reasons as above Where : In the Store Who : Kanban process owener(store person) When : While Kanban Pulling How : During routine work

- MoP Table IN OFFICE

RESULT MONITOR Actual / Deasired Apr.02 Human Resources : MOP summary BEFORE / AFTER 5S AFTER 5S May.02 Jun. 02 Jul.02 Aug. 02 Sep.02 Oct 02 Nov 02

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Dec 02

Jan.03

Feb.03

Productivity (P) People/Engine/Day No of people involved in community Welfare Quality (Q) HRFE Score (Yearly measure) Delivery (D) CPS Report Monthly Report Submission Monthly headcount data Safety Incidents (S) No. of Accidents / Month Actual Desired 0 0 1 0 0 0 1 0 1 0 1 0 0 0 1 0 1 0 1 0 2 0 Actual Desired Actual Desired Actual Desired 12th 8th 9th 8th 5th 7th 10th 8th 7th 7th 5th 7th 12th 8th 7th 6th 5th 7th 12th 8th 8th 6th 5th 7th 10th 8th 8th 6th 5th 7th 10th 8th 7th 6th 5th 7th 10th 8th 7th 6th 5th 7th 10th 8th 7th 6th 5th 7th 9th 8th 7th 6th 5th 7th 8th 8th 6th 6th 4th 7th 8th 6th 5th 7th Actual Desired(T arget) 76 80 (Measured one in a year) Actual Desired Actual Desired 69.15 50 300 200 65.46 50 250 200 49.89 50 150 200 58.06 50 250 200 56.45 50 250 200 48.79 50 200 200 50.56 50 150 200 47.46 50 150 200 53.08 50 175 200 51.58 50 225 200 450 200

- Kaizen Projects in Offices

HR
Improve employee data adequacy Transfer of old PF account Consolidation of banks for salary payment Safety on road, Safety goggles Safety gates on shop floors Pokayokes on accidents ( Radial drills, Signs on walkways ) Prevention of epidemic diseases Canteen Improvement Kanban for material, - Energy saving - Improve ventilation and lighting - Roof cooling by purified drainage water

- Kaizen Projects in Offices

HR
Improvement in Health awareness ( check up, Lectures, De addiction camps, Bench marking visits to other factories, Recognition policy Participation in intra company competition Safety poster competition O tag campaign for safety ATM counter / bank facility at gate Prize distribution by Union leaders Letter to family for good work Proper lighting and ventilation at workplace

About POKA YOKE

Poka-yoke (pronounced "POH-kah YOH-kay ) Japanese words "poka" (inadvertent mistake) and "yoke" (prevent) was invented by Shigeo Shingo in the 1960s. The essential idea of poka-yoke is to design your process so that mistakes are impossible or at least easily detected and corrected.
About Shigeo Shingo.. A leading proponent of statistical process control. Became frustrated with the statistical approach. Statistical sampling implies that some products to go untested, with the result that some rate of defects would always reach the customer.

Birth of POKA YOKE

Shingo was communicated of a problem in

Yamada Electric plant in 1961. A small switch with two push-buttons supported by two springs, occasionally, the worker assembling the switch would forget to insert a spring under each push-button. Sometimes the error would not be discovered until the unit reached a customer. Factory would have to dispatch an engineer to the customer site to disassemble the switch, insert the missing spring, and re-assemble the switch. This problem of the missing spring was both costly and embarrassing. Despite everyone's best intentions, the missing spring problem would eventually re-appear.

Error Has Occurred Detection Is Made

Pokayoke Action

Defect Is Signaled

Control / Feedback Given

Process Is Stopped

POKA YOKE Action

What is Mistake Proofing ? Why should we do it ?

A system for organising work that prevents the error.

Excludes any risk of error even by the beginner.

Allows everyone to operate without mistake.

Prevents error that are about to occur.

Inspection time will be minimised.

Mistake -Proof Approach

List of Problems Select Form a Team Brain-writing at Gemba Why-Why Analysis leads to root cause Kaizens on root cause Work Towards Low Cost Automation Establish Activities to maintain standard

Plan Do Check Act

Pokayoke - Fail safe in 5 W 1 H

What Where - A tool that helps to eliminate inadvertent human errors. - Helps to build quality in product at source. - Is helpful in highly repetitive situations. High Productivity areas may lead to mistakes sometimes. (Unintentional errors - Forgetting, Ignoring, Inattentiveness ) e.g. - Complex processes / Repetitive assembly mistakes When Why How - Sourced from Safety issues / Driven by known quality problems / Customer complaints / RFT / P Tags / BIS issues / FMEA - Builds quality in the product, waste elimination - Pokayoke is often LOW COST or NO COST solutions

POKA YOKE helps in case of unintentional mistakes and not mischiefs

Kaizen

Welcome

Learning Session on Model Machine

Objectives

To Learn Concept of Model Machine - P - PC Balance Why Model Machine? 8 Major losses

OEE Calculations
How to Develop Documentation Examples

Why Model Machine

Profit = Sales Cost Profit = Sales Mfg. Cost

To reduce manufacturing cost , needs optimum utilization of all assets i.e. resources . Measurement of effective utilization of all resources is Overall Equipment Efficiency( OEE) . (0.9 * 0.9 * 0.9 = 73%)

Why Model Machine

Profit = Total sales Total cost Profit = Selling Prices - Input Mfg. cost
( competition )

up

( Increasing cost of input resources )

To maintain / improve profit Solution is Reduce Mfg. cost

Improve Asset Utilization Improve Overall Equipment Efficiency (OEE) OEE = %Availability x %Performance x %Quality

Our goal should be to improve OEE > 85%

world class Benchmark = 95%

Why Model Machine

If ,
OEE = Mfg. Cost Mfg cost = profit e.g. Consider a M/C of cost Rs. 5 cr. Utilization in Japan/ china OEE 90% Utilization in India OEE 45% (45% 70/80%) So product cost in India will be 2 times than the cost in china.

Key is improve to OEE

Achievement on 8 Model Machines - OEE improved from 45% to 75 / 85%

P - PC Balance
Production Vs Production Capability

Engine+Parts

Equipment + M/C + Test Bed

Model Machine
Factory Within Factory is BU MODEL M/C

BU Within BU is WHY Model M/C ?

To deliver Cost Effective Product to Internal & External Customer * Zero - Breakdown * Zero - Accident * Zero - Defect
(Overall Equipment Effectiveness)

By Achieving -

To Success is Improve OEE

5 - MS OF PRODUCTION

Manpower, Method, Materials, Machines, Money

Non Uniform supply

Absenteism

Lack of funds Non Availability & poor performance

Violation of SOP
No extra care is being Taken To increase the life of machine In spite of Preventive & B/D Maint.

To overcome with this, Plant engg. Acts upon

Planned Maint.

B/D Maint.

Machine Deterioration
NATURAL & FORCE DETERIORATION
Original condition

Machine Life

Time

A
B C

Forced deterioration Natural deterioration Surpassed Rated life

5 S and Kaizen Never make same mistake again- Improve Continuously

Problem in tree stage (Disasters at workplace) Problem in sapling stage Fatal Accident

1 30
Near Misses

Problem in seed stage.(Signals ignored)

300

Unsafe Action

Problems at the Work Place

 Motor not rotating ------ motor overload tripped ---motor taking over current------ motor cooling improper----motor stator fins accumulated with metal chips & dust. Counter Measure: Clean motor stator fins & provide daily check. By taking extra care of machine and maintaining the optimum condition we can sustain rather enhance the life of machine. So removal of even minor abnormalities contributes to improve the life & performance of the machine.

Example

Model Machine
What is OEE OEE is Overall Equipment Effectiveness
% OEE=% Availability X % Rate of quality products X% Performance

Overall Means, Performance of Resources Machines Methods Man &

Quality

Losses

% OEE

Day 2

WELCOME TO

Lean Manufacturing eLearning Program

TOYOTA PRODUCTION SYSTEMS

& LEAN MANUFACTURING

Lean Manufacturing eLearning Program

Sybeq
www.sybeq.com

INDEX
1. What is Lean Manufacturing?

2. Lean Principles
3. Steps to implement Lean 4. Lean Tools 5. Kaizen

6. Lean Implementation tips

7. Conclusion

Thank You!!

TPS/Lean Manufacturing: Introduction

Click to proceed

What is TPS/Lean Manufacturing?

An approach that minimizes consumption of resources that add no value to the product.
Focus is on eliminating waste. Production of goods with less human effort, less equipment, less space, less time.

Click to go back
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TPS/Lean Manufacturing: Benefits

Increase in productivity
Reduction in throughput time Reduction in inventory, WIP Reduction in scrap Better space utilization

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TPS/Lean Manufacturing, Six Sigma and

Theory of Constraints
Before we learn Lean Principles, lets at Lean v/s Six Sigma and Theory of Constraints.

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TPS/Lean, Six Sigma and TOC

Program Goal Approach Lean Removes Waste 1. Identify value 2. Identify value stream 3. Flow 4. Pull 5. Perfection Flow focused Reduced flow time Six Sigma Reduces Variation 1. Define 2. Measure 3. Analyze 4. Improve 5. Control Problem focused Uniform process output TOC* Manages constraints 1. Identify constraint 2. Exploit constraint 3. Subordinate processes 4. Elevate constraint 5. Repeat cycle System constraints Fast throughput

Focus Results

* TOC Theory of Constraints

TPS/Lean Manufacturing - History

US Manufacturers
Process oriented, mass production manufacturing methods common before World War II Shift to the results-oriented,

Japanese Manufacturers
Re-building after World War II, Japan was facing declining human, material, and financial resources. The problems they faced were vastly different from their Western counterparts. These circumstances led to the development of new, lower cost, manufacturing practices.

output-focused, production
systems that control most of today's manufacturing

businesses.

TPS/Lean Manufacturing - History

Concepts of Lean Manufacturing and Just in time were applied in the US industries in the 1900s Taiichi Ohno and Shingeo Shingo of Japan developed a disciplined, process-focused production system known as the

"Toyota Production System.

In 1990, James Womack introduced Lean production to the US

industry with the publication of his book The Machine that

changed the world.

TPS/Lean Principles

Click to proceed

TPS/Lean Principles
Continuous flow manufacturing

Takt time
Non-value added activities Cycle time reduction

Click to go back

Principle 1: Continuous Flow Manufacturing

Continuous Flow Manufacturing

Material should always move one piece at a time

at the rate determined by the customer.

Flow of product must be smooth and uninterrupted.

Continuous Flow : Advantages

Delivers a flow of products to the customer with

less delay.
Requires less storage and transport. Lowers the risk of losses through damage, deterioration or obsolescence.

Continuous Flow Layout

Production steps arranged in a straight line or U shaped cell. No WIP. Use of single piece flow. Each operator and station work with complete reliability.

Principle 2: Takt time

Takt Time
Time needed to produce as per customer requirements. Used to determine pace of production in

continuous flow manufacturing.

Takt Time
Takt time = Net operating time per period

Customer requirements per period

where

Net operating time = (Time per shift) (Time for breaks,

lunch)

Customer requirements = Products required per day

Principle 3: Non-value added activities

What are Non-value added activities?

Waste that exists in the process.
Activities not important to the customer. Work elements that the customer will not pay for.

Non-value added activities: Categories

1. Overproduction
2. Inventory 3. Repair / Rejects 4. Motion 5. Processing

6. Waiting
7. Transport

Overproduction
Producing too much. Occurs because products are made earlier or faster or more than is needed by the next process. Uses extra space, raw materials, utilities,

transportation, scheduling costs.

Inventory
Raw material, parts, WIP, supplies, finished goods are all inventory. Uses extra space, transportation, labor, interest on materials. Inventory sitting around gathers dust, deteriorates, becomes obsolete, gets damaged in handling.

Repair
Process
Repair - labor Conforming product Non conforming product
- additional material - normal continuous flow gets affected.

Repair

Delivered to customer

Inspection

OK
Delivered to customer

Not OK Scrap

Motion
Extra unneeded movements

like excessive walks, lift heavy

loads, bend awkwardly, reach too far, etc. are waste.

Design new tools to help with strenuous and tiring motions. Redesign workplace layout to take advantage of
the ergonomics.

Processing
Additional steps in the manufacturing process. Examples

a. Removing burr
b. Reshaping a piece due to poor dies c. Extra handling process due to lack of space d. Maintaining extra copies of information

Waiting
Operator remains idle waiting for the next operation.

Some causes for waiting are machine

downtime, lack of parts, line stoppages, long changeover times, batch flow of material.

Transport
All forms of transportation are waste.

Some examples are use of forklifts,

conveyors, trucks.

Transportation waste is caused by poor plant

layout, poor cell design, use of batch processes, long lead times, large storage areas, scheduling problems.

Principle 4: Cycle-time reduction

Cycle-time reduction
The amount of time needed to complete a single task and move it forward in the process. To make the line flow, all operations must be completed under the takt time. Cycle time reductions improve quality, reduce waste, increase capacity, simplify the operation.

Cycle-time and Takt time (Example)

Process
Operation 1 Operation 2 Operation 3

Consider a process that has 3 operations. Each operation has a pre determined takt time based on the customer requirements and net operating time available. Cycle time is the total of takt times for all three operations.

To reduce cycle time, each task must be completed below the takt time.

Cycle-time and Takt time (Example)

Process
Operation 1 Operation 2 Operation 3

Operation 1 2 3 Total

Takt time 52 sec 45 sec 65 sec 162 sec

Cycle Time

Cycle-time reduction
Kaizen teams take up cycle time reduction projects. The project involves.. a. Data collection and analysis. b. Work sampling, pace studies, line balancing, elemental analysis, motion studies and takt time

calculations.

Traditional Approach
Forecast Demand

Produce

Distribute Sell

BLISS

IN REALITY
Irrational Customer Demand Variance

MESS

. a precisely inaccurate forecast

..Push System

Fallout of Push
Mismatch between inventory and actual demand Frequent schedule revisions High inventory levels Excessive stock of some; stockouts for some Lost sales; loss of production

Logistics of Supply Management Is most important

Fallout of Push
Mismatch between inventory and actual demand Frequent schedule revisions - Bullwhip effect High inventory levels Excessive stock of some items; stockouts of some Lost sales; loss of production

.. for finished products & materials

Push Vs Pull
PUSH System - Driven by Forecasts PULL System - Driven by actual demand - Not Driven by Forecast

Materials Scheduling
PULL SYSTEMS
Production Schedule Driven Consumption Driven

FQVT

FTVQ

FQVT Fixed Quantity, Variable Time FTVQ Fixed Time, Variable Quality Kanban is an FQVT System

What is MRP?
MRP (Materials Resource Planning) is a .... Computerized Inventory Control Production Planning System that Schedules Component Items as Needed which will Track Inventory.

Role of MRP
MRP - a planning tool Not a Scheduling tool, when demand is unpredictable Use MRP only For gross requirements planning based on master production plans To calculate / Recalculate Buffer Levels

Planning & Scheduling

Planning horizons typically Quarter, Month

Scheduling horizons are shorter. Typically Week or Day

Forecasting & Planning

Annual Forecast: Capacity Planning

Quarterly Forecast: Resources Planning (Materials & Manpower) Months Forecast: Resource Commitment

Living with imperfection

PLAN AS PER FORECAST

DELIVERY AS PER ACTUAL DEMAND

Materials Scheduling
ABC-XYZ Classification - ABC Analysis based on Price - XYZ Analysis based on Consumption Choice of Scheduling system Replenishment system Schedule to meet production plan

Two types of replenishment systems FQ-VT (Fixed Quantity-Variable Time -Kanban) FT-VQ ( Fixed Time- Variable Quantity)

Just-In-Time
Produce and distribute only what the customer wants,in the quantity he wants, when he wants. Do not produce and distribute as per demand forecast A Pull System

THANK YOU