LM Day 6 Notes

7/29/2019 LM Day 6 Notes

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Part Time MBA Program

Operation & Decision Science - 3rd

Year Trimester IX

Faculty Prof. Shashank Tilak

Lean Manufacturing

Session 6

Covered On 06.02.2013

Visual Factory, 3P, Poka Yoke, Automation, Continuous Improvement &

Inventory Management for lean

Notes Prepared By

Malik M. Samnani C044

Abhijit J. Udani C048

Notes Reviewed By


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Year Trimester IX

Page 2 of13 Faculty Prof. Shashank Tilak

Note:

These notes shall be read in conjunction with Slides provided by Prof. Shashank Tilak; hence, in

order to avoid repetitiveness, certain points are referred to as Slides numbers.

Abstract:

In our earlier sessions we have in depth discussions on the macro aspects pertaining to

achieving lean, namely; Push/Pull Systems, Layouts, Value Stream, 5S, Workplace

Organizations, etc.

As the above aspects our clear we move on to some of the micro aspects to achieve lean.

These aspects are purely dedicated at operational level. It mainly involves Preparedness,

Implementation on day-to-day basis and also the Practices under taken inorder to achieve

lean.

1.0 Visual Factory (Slide no. 4 - 7):

Visual Factory concepts basically mean making the complete factory visible. Main motive

of any business is to make maximum Money. In this competitive world were the selling price is

always the constrained, company had to really cut down the cost incurred inorder to maximise

the money.

Managing the complete show, from scratch, to achieve lean objectives is the key motive of

visual factory. The underlying key features of Visual Factory are as under;

OutputMone

Operations Customer

Input Delivery

Visual Factory To understand the pulse of the business to maximise the Profits


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i. Teamwork:

Teamwork is the key parameter in any task/operation. Every individual is assigned a job

based on his qualification, experience and capability. Executing the assigned work with

responsibility and ownership adds value to the teamwork.

Further the processes involved are very complex, hence the responsible work of individuals

along with effective Co-Ordination and Synchronization enhances the teamwork. This

reduces Time and Efforts required in executing the complete process as a whole. Teamwork

basically deals with people (mindset) and without people (mindset) things are not possible.

Hence, an efficient and effective teamwork is the perfect start required in achieving lean.

ii. Methods, Systems & Infrastructure Sharing Information:

Information sharing is the most important requirement in any organization and workplace.

High quality Teamwork backed by spontaneous and accurate information sharing is what the

organizations crave for to achieve lean.

Information sharing signals the status of the task/operation and accordingly reflects what

needs to be done as per the planning. Non-conformity of the products or certain processes

should be shared immediately at all levels inorder to avoid assembling of an undesirable

product and repeating the same.

Example (covering teamwork & information sharing)

Movie Chakde brings out a very classic example of teamwork and information sharing. It

clearly shows that how teamwork and sharing of information, in terms of handling the game,

have helped the girls to achieve the impossible.

The Visual Factory concept helps in advance know how of the future performance and creates

the room for continuous progress.

a) Effectiveness ( best utilization of outputs)

b) Efficiency ( dependent on optimum usage of inputs)


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Cost

Reduction

Efficiency

Payment

Meeting each

demand

Faster andaccurate

updates

Coordinatio

Vendor

Larger

capacity/Cost

Effectiveness

Monitoring


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Efficiency is nothing buty optimum use of inputs and services and the companys commitment

toward achieving the ultimate goal of Cost reduction. Some o the methods are as follo0ws

a) Coordination :

b) Vendor management

c) Large capacity/ Cost distribution

Effectiveness is best deployment of the outputs which are manufactureds on basis of inputs.

Some of the methods are as follows

a) Payment

b) Meeting Each others Demand

c) Faster and accurate updates

Both of the principles when used in a synchronous manner together along with proper

monitoring and control can result in benefits for the company.

Manufacturing Planning - Push system emergence

APICS definition: Production of items at times (& in Quantities) required by a given scheduled

planned in advance

In short

Manufacturing system in which production is based on a projected production plan and

where information flows from management to the market, the same direction in which

the materials flow.

E.g.: when items are served by the caterer it is typically push. If we notice all that is pushed on

to the plate would be get wasted, because the person serving is not aware of the consumers

taste and also the consumer doesn't feel guilty of wasting food, because it was forced on to him

or her. Though the purpose of push system followed by the caterer is to restrict consumption of

high cost item, typically more of such food would get wasted.

Its basis for the same was milestones for plans so that it could be benchmarked for each of the

manufacturing / Project works
http://www.businessdictionary.com/definition/manufacturing-system.htmlhttp://www.businessdictionary.com/definition/production.htmlhttp://www.businessdictionary.com/definition/plan.htmlhttp://www.businessdictionary.com/definition/information-flow.htmlhttp://www.businessdictionary.com/definition/management.htmlhttp://www.businessdictionary.com/definition/market.htmlhttp://www.businessdictionary.com/definition/material.htmlhttp://www.businessdictionary.com/definition/flow.htmlhttp://www.businessdictionary.com/definition/flow.htmlhttp://www.businessdictionary.com/definition/material.htmlhttp://www.businessdictionary.com/definition/market.htmlhttp://www.businessdictionary.com/definition/management.htmlhttp://www.businessdictionary.com/definition/information-flow.htmlhttp://www.businessdictionary.com/definition/plan.htmlhttp://www.businessdictionary.com/definition/production.htmlhttp://www.businessdictionary.com/definition/manufacturing-system.html


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It basically focused on

a) Efficiency

b) Utilization

c) Productivity

E.g.: A factory manufacturing roller bearings and Shafts for reputed company like Hero Honda

and so on drives maximum efficiency but continuous production and tremendous pressure on

the personnel. But manufacturing happens 17 hours without taking into consideration the

material requirement by customer and leading to high inventory at site.

A Complex Project like power plant set up for the RRVUNL (Chabra) the vendors list in India is

to be followed.

The requirement is such that the valves and pumps selected such that the material is always

available in the market a. Thats when you that vendor like Audco has placed millions of

products worth crores in the market that too at a discounted price. Also pumps manufacturers

like KBL have kept a certain model of pumps in market so that the same can be used to

dispatch.

This is an example of Push type system

Characteristics of the Push system is explained in Slide no 6 of 31

Some of the problems associated with there as per shown in the diagram below and also

explain in the slides mentioned by the professor (slide 5 of 31)

Job shop/

Customer orders

MRP schedules

Mfg orders Purchase Orders


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Execution through a Push system: (explanation on slide no 8 of 31)

Example

As parts in a car are many if manufactured through a push system, on a monthly production of

min 20000 vehicles we require the following No of assemblies., No of quality documents ,

Keeping track of each of the system and its incoming details, which part is assembled on which

a car. Which one is faulty, what happens happens if place not in time when it is to be required.

Suppose if color change is required. How fast can it change its paint cans and set up time for

assembly. What can be done to reduce? The no of the workers that he is to put in to get thatplant running through out, where the order is to be provided, which supplier should be answered

first and so on.

Pull system

APICS definition: The production of items only as demanded for use of to replace those taken

for use.

In simple words: Manufacturing system in which production is based on actual daily demand

(sales), and where information flows from market to management in a direction opposite to that

in traditional (push) systems.

E.g.: The supermarkets typically work on a pull system, because when we pick up soaps or

other consumable from the shelf, the gap in the shelf triggers supply of fresh material, which in

turn triggers production of the material
http://www.businessdictionary.com/definition/manufacturing-system.htmlhttp://www.businessdictionary.com/definition/production.htmlhttp://www.businessdictionary.com/definition/sales.htmlhttp://www.businessdictionary.com/definition/information-flow.htmlhttp://www.businessdictionary.com/definition/market.htmlhttp://www.businessdictionary.com/definition/management.htmlhttp://www.businessdictionary.com/definition/management.htmlhttp://www.businessdictionary.com/definition/market.htmlhttp://www.businessdictionary.com/definition/information-flow.htmlhttp://www.businessdictionary.com/definition/sales.htmlhttp://www.businessdictionary.com/definition/production.htmlhttp://www.businessdictionary.com/definition/manufacturing-system.html


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In factory canteens when we serve rice on a buffet system it is pull, but when items are served

by the caterer it is typically push

A Complex Project like power plant set up for the NTPC simadhri (reason because close to

Sea water erosion) can be taken as an example wherein the material to be used is 18% Nickel

in steel or duplex type Stainless steel for valves and Pumps whereas the Pipe to used is

Austenitic type SS316and needs a lead time of min 24 weeks with most of the vendors in India

and the vendor list is to be followed.

The entire operation needs to be taken care such that no delay happens but since the lead time

involved is too long, Money rotation and relationship with the vendors needs to be flexible so

that supply happens in a staggered and helps recover investment for the company.

Working of Pull system Example for steel Product

Example:

A Style Spa Furniture can be considered as a typical example wherein the customer first places

the order on which basis the dealer gives him a head time of say 2days. After receiving the

order the dealer supplies the same from the warehouse in knocked down condition to the

customer and the same is assembled at the customers residence. Bus at warehouse the

inventory is less by one item it places order on the factory and the cycle continues, till it reach

the start point of the entire process. Diagrammatically it can be shown as above.


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Characteristics of Pull system is clearly explained in Slide 11 of 31

Execution of pull system is well explained in slides 14 of 31

Differentiation between Push and pull system can be explained as shown below

SMED:

Single-Minute Exchange of Die(SMED) is one of the many lean production methods for reducing

waste in a manufacturing process. It provides a rapid and efficient way of converting a

manufacturing process from running the current product to running the next product. This rapid

changeover is key to reducing production lot sizes and thereby improving flow.

A single cell and set of tools can therefore produce a variety of products without the time

consuming equipment changeover and set-up time associated with large batch-and-queue

processes, enabling the organization to quickly respond to changes in customer demand.
http://en.wikipedia.org/wiki/Lean_productionhttp://en.wikipedia.org/wiki/Lean_production


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Earlier while working in roller bearing factory on centreless grinding machine change of grinding

wheel ( as grinding stone would differed depending on type of steel used) would take two shifts

in total and depending of grinding tool required. By means of planning and carefully timing,

improvement in maintenance techniques the company was able to reduce its downtime to 17hrs

to approx 5 hours.

Hybrid Push Pull systems

Above shown is diagrammatic representation of the Intel manufacturing chips. A push system

makes the production and supply chain demands on basis of forecasting whereas pull supply

chain drives the production and distribution by means of customer demand.

Wal-Mart is another example of a company that uses the push vs. pull strategy. A pushpull

system in business describes the movement of a product or information between two subjects.

On markets the consumers usuallypull"the goods or information they demand for their needs,

while the offerers or supplierspush"them toward the consumers. In logistic chains or supply

chains the stages are operating normally both in push- and pull-manner.[5]Push production is

based on forecast demand and pull production is based on actual or consumed demand. The

interface between these stages is called the pushpull boundaryordecoupling point

Workstations

The assigned location where a worker performs the job on a workbench. Already same has

been covered in detail in Session4.However we would look into Cellular layout

Its nothing more than an assembly of machines that produce the same range of products

(industry within industry
http://en.wikipedia.org/wiki/Push%E2%80%93pull_strategy#cite_note-harrison-5http://en.wikipedia.org/wiki/Push%E2%80%93pull_strategy#cite_note-harrison-5http://en.wikipedia.org/wiki/Push%E2%80%93pull_strategy#cite_note-harrison-5http://en.wikipedia.org/wiki/Push%E2%80%93pull_strategy#cite_note-harrison-5


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E.g.: Coins being produced at Mint

Petrol and its variants at a Refinery

Marti models of Swift and Dire manufactured on same assembly line.

Diagrammatically a U shaped layout can be shown as follows

Example of it is groups of machines like lined each behind the other for the completion of the job

from raw material to finished goods

Operations management: Operations decisions byDr. Donald J. McCubbrey,

For an intermittent type of Process flow. Reference: The arrangement can be as follows

Example: For example, a health care clinic must cater to the individual needs of every patient

who enters the clinic for treatment. One patient may have a broken ankle, while another patient

may be a pregnant woman who needs a prenatal care checkup. One patient may be a baby with

a fever, while another patient may be getting a prescription medication refilled. The primary

organizational goal for a health clinic is effectiveness in treating the individual needs of each

patient, and an intermittent process is often the most suitable way to organize labor and

equipment to provide customized treatment for each individual patient. X-ray equipment and

technicians are organized into an X-ray Department. Other departments are created for
http://cnx.org/member_profile/dmccubbrhttp://cnx.org/member_profile/dmccubbrhttp://cnx.org/member_profile/dmccubbrhttp://cnx.org/member_profile/dmccubbr


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pediatrics, lab, gynecology, pharmacy, physical therapy, and many more. Patients are routed

only to the departments that are needed for their particular treatment requirements. This

production process is called an intermittent process, because the activity of each department

happens intermittently at irregular intervals, depending on the particular needs of different

patients (customers) at different points in time.

For repetitive movement

A cellular process arranges dissimilar machines and equipment together in a line that is

dedicated to producing a specific family of products that have similar processing requirements.

By setting up multiple dedicated cells, the facility can efficiently produce a wide variety of

products. Since the products within a family have similar production requirements, equipment

setup times, inventories, and lot sizes can be kept to a minimum. The cellular approach allowseach product to be sent through the manufacturing process one piece at a time, according to

the immediate set of customer orders. It provides workers the flexibility to change a product or

customize it in some way in response to specific customer requirements. The cells are usually

arranged in a U shape. This enables one worker to view multiple machines simultaneously and

puts all machines within easy reaching distance. Cellular processes minimize cycle times and

enable the organization to maintain higher levels of product volumes, variety, and

customization.

KANBANsAPICs Definition of KANBAN :

Method of Just in time Production that uses standard containers of lot sizes with a single card

attached to it.


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Kanban is a Japanese word that means visual card. At Toyota, Kanban is the term used for

the visual & physical signaling system that ties together the whole Lean Production system

Types of kanban cards have been already shown in the ppt given by prof Slide 26 to 30

However the benefits of Kanban are as follows.

Kanban works from upstream to downstream in the production process (i.e., starting with

the customer order). At each step, only as many parts are withdrawn as the kanban

instructs, helping ensure that only what is ordered is made. The necessary parts in a

given step always accompanies the kanban to ensure visual control.

The upstream processes only produce what has been withdrawn.

This includes only

producing items in the sequence in which the kanban are received, and only

producing the number indicated on the kanban.

Only products that are 100 percent defect-free continue on through the production line.In

this way, each step uncovers and then corrects the defects that are found, before any

more can be produced.

The number of kanban should be decreased over time.Minimizing the total number of

kanban is the best way to uncover areas of needed improvement. By constantly

reducing the total number of kanban, continuous improvement is facilitated by

concurrently reducing the overall level of stock in production.

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