7/29/2019 LM Day 6 Notes
1/13
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
7/29/2019 LM Day 6 Notes
2/13
Part Time MBA Program
Operation & Decision Science - 3rd
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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Part Time MBA Program
Operation & Decision Science - 3rd
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Page 3 of13 Faculty Prof. Shashank Tilak
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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4/13
Part Time MBA Program
Operation & Decision Science - 3rd
Year Trimester IX
Page 4 of13 Faculty Prof. Shashank Tilak
Cost
Reduction
Efficiency
Payment
Meeting each
demand
Faster andaccurate
updates
Coordinatio
Vendor
Larger
capacity/Cost
Effectiveness
Monitoring
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Part Time MBA Program
Operation & Decision Science - 3rd
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Page 5 of13 Faculty Prof. Shashank Tilak
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.html7/29/2019 LM Day 6 Notes
6/13
Part Time MBA Program
Operation & Decision Science - 3rd
Year Trimester IX
Page 6 of13 Faculty Prof. Shashank Tilak
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
7/29/2019 LM Day 6 Notes
7/13
Part Time MBA Program
Operation & Decision Science - 3rd
Year Trimester IX
Page 7 of13 Faculty Prof. Shashank Tilak
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.html7/29/2019 LM Day 6 Notes
8/13
Part Time MBA Program
Operation & Decision Science - 3rd
Year Trimester IX
Page 8 of13 Faculty Prof. Shashank Tilak
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.
7/29/2019 LM Day 6 Notes
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Part Time MBA Program
Operation & Decision Science - 3rd
Year Trimester IX
Page 9 of13 Faculty Prof. Shashank Tilak
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_production7/29/2019 LM Day 6 Notes
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Part Time MBA Program
Operation & Decision Science - 3rd
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Page 10 of13 Faculty Prof. Shashank Tilak
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
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Part Time MBA Program
Operation & Decision Science - 3rd
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Page 11 of13 Faculty Prof. Shashank Tilak
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/dmccubbr7/29/2019 LM Day 6 Notes
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Part Time MBA Program
Operation & Decision Science - 3rd
Year Trimester IX
Page 12 of13 Faculty Prof. Shashank Tilak
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.
7/29/2019 LM Day 6 Notes
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Part Time MBA Program
Operation & Decision Science - 3rd
Year Trimester IX
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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.