Name : Mazliana Bt Mohamad

Matric Num : M031010011

Question 4 : Describe how small lot production, quick set-ups and zero defects used together to
maintain flexibility in JIT.

Small-lot Production

Small lot production (ideally one piece) is an important component of many Lean
Manufacturing strategies. Lot size directly affects inventory and scheduling. Other effects are
less obvious but equally important. Small lots reduce variability in the system and smooth
production. Small lots also enhance quality in many ways. The Lean Manufacturing literature
gives little guidance on lot sizing other than statements such as: "the lot size should be one" or
"lot sizing is irrelevant". The effects of small lots differ somewhat between Make To Order
(MTO) and Make To Stock (MTS) environments but they are important in either situation.
In MTO environments, the ability to make smaller lots economically makes it practical to
accept smaller orders. This can open new market segments or eliminate middlemen from the
logistics chain.  In an MTS environment, small lots translate directly to smaller
inventories. Inventory carrying costs are significant. In fast-changing fashion or technology
markets, obsolete inventory may make the difference between profit and loss. Smaller lots often
enable conversion from MTS to MTO. Many factories that deliver to their customers in MTO
operate intermediate processes in MTS. The MTS discussion applies to those intermediate and
upstream operations.
Producing in small lots has many benefits, including

 Requires less space and capital investment.

 Moves processes closer together.
 Makes quality problems easier to detect.
 Makes processes more dependent on each other.
 Prevents excess work-in-process inventory and allows quicker change to a new product
when demand changes.
Quick set-ups

Setups are adjustments that must be made on equipment or processes each time an item is
changed from one model to another or one product to another. Setup time can be very lengthy --
often hours long. When setups are long, manufacturers often want to produce a large number of
the same item before changing to another. The concept of long setups does not work well with
small lot production.
Shigeo Shingo is well-known for his SMED (single-minute-exchange of dies) principles,
which were developed to reduce setup times. For example, Shingo reduced the setup time on a
1,000 ton press from six hours to three minutes using the following principles:
 Separate internal setup from external setup -- internal setups must be performed while the
machine is stopped; external setups may be made while the machine is running.
 Convert internal setup to external setup
 Streamline all aspects of setup
 Perform setup activities in parallel or eliminate them entirely

Guidelines for reducing setup time include:

 Preset desired settings
 Use quick fasteners
 Use locator pins
 Prevent misalignments
 Eliminate tools
 Make movements easier

Based on Dr. Shingo’s approach setup time can be isolated and identified as two entities:
internal setup time and external setup time. His simple approach to achieving a quick setup and
changeover of the dies consists of the following steps:

 Separating internal and external setup as it exists

 Converting internal to external setup
 Streamlining all aspects of the setup operation

Internal operations are those that are done while the machine (or line) is shut down.
External operations are those that can be done while the machine is running. Externalizing
operations reduces downtime, which is the major cost associated with setup or changeover. (It is
not labor, as some might assume.) Streamlining involves eliminating unnecessary operations as a
first step, followed by instituting process changes to shorten or eliminate other operations. 
Zero defect

Zero Defects, pioneered by Philip Crosby, is a business practice which aims to reduce
and minimise the number of defects and errors in a process and to do things right the first time.
The ultimate aim will be to reduce the level of defects to zero. However, this may not be possible
and in practice and what it means is that everything possible will be done to eliminate the
likelihood of errors or defects occurring. The overall effect of achieving zero defects is the
maximisation of profitability.
More recently the concept of zero defects has lead to the creation and development of six
sigma pioneered by Motorola and now adopted worldwide by many other organisations.
The concept of zero defects can be practically utilised in any situation to improve quality and
reduce cost. However it doesn’t just happen, as the right conditions have to be established to
allow this to take place. A process, system or method of working has to be established which
allows for the achievement of zero defects. If this process and the associated conditions are not
created then it will not be possible for anyone involved in the process to achieve the desired
objective of zero defects.In such a process it will be possible to measure the cost of none
conformance in terms of wasted materials and wasted time.
Any process that is to be designed to include this concept must be clear on its customer
expectations and desires. The ideal is to aim for a process and finished article that conforms to
customer requirements and does not fall short of or exceed these requirements. For example, in
recent years many financial organisations have made claims regarding how quickly they can
process a home loan application. But what they may have failed to realise is that in spending a
great deal of time and money reducing processing time they are exceeding customer
requirements (even if they believe that they know them). In these cases they have exceeded the
cost of conformance when it was not necessary to do so.