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Unit - 2 Lean Management
Unit - 2 Lean Management
UNIT 2: Just In Time: Why JIT, Basic Principles of JIT, JIT system, Kanban, Six Kanban rules,
Expanded role of conveyance, Production leveling, Three types of Pull systems, Value stream
mapping. JIDOKA, Development of Jidoka concept, Why Jidoka, Poka Yoke systems,
Inspection systems and zone control – Types and use of Poka-Yoke systems, Implementation of
Jidoka
CO2: The students will be able to analyze various methodologies, tools and techniques of Lean
manufacturing and to create strategies for lean manufacturing in different companies.
Just In Time:
Just-in-time (JIT) manufacturing, also known as just-in-time production or the Toyota
Production System (TPS), is a methodology aimed primarily at reducing times within the
production system as well as response times from suppliers and to customers. Its origin and
development was mainly in Japan, largely in the 1960s and 1970s and particularly at Toyota. It is
also called as short-cycle manufacturing (SCM) by Motorola and IBM's named as continuous-
flow manufacturing (CFM) and demand-flow manufacturing (DFM).
Philosophy of JIT:
The philosophy of Lean Management assumes that the right elements always have to be
in the right amount, in the right place and at the right time. Just in time is a management system
that allows you to get the most out of your business. It is also based on continuous process
improvement, which ensures optimal material flow and eliminated waste.
Goals of JIT:
• The overriding goal of all undertaken activities is the production of goods, services or
products that will arise according to demand, as a result of an optimal production process,
which is the result of good planning and control.
• It is important to reduce or completely eliminate inter-operational and pre-production stocks
as well as to minimize or completely eliminate activities that do not increase the value of the
product.
• This leads to the shortest possible production cycle.
Three M’s:
• First M - Muda – downtimes, production waste, unnecessary movements and wastage, such
as: excessive resources, non-value added activities and unused time and skills of employees,
• Second M - Muri – excessive machines, employees and processes loading that lead to
fatigue of employees, as well as faster wear and cyclic deterioration of machines,
• Third M - Mura – irregularity of operations, management of the flow of resources in such a
way as to ensure regularity, lack of downtime.
Building Just in Time:
Process of JIT:
2. Reduction in Inventory costs: One of the main aims with any JIT implementation is to
improve stock turns and the amount of stock being held. Personal experience has seen
reductions of more than 90% stock in some industries. Along with the reduction in the stock
come many other associated benefits.
3. Reduction in space required: By removing large amounts of stock from the system and
moving processes closer together we will often see a significant reduction in the amount of
floor space being used. Results from 100’s of projects run within companies in the UK
through the Manufacturing Advisory Service saw average reductions of 33% for simple 5
day implementation projects.
4. Reduction in handling equipment and other costs: If you don’t have to move large batches
there is less need for complex machinery to move them and all of the associated labor and
training.
5. Lead time reductions: One of the most significantly impacted areas is that of the time it
takes for products to flow through the process. Instead of weeks or months most JIT
implementations result in lead times of hours or a few days.
6. Reduced planning complexity: The use of simple pull systems such as Kanban, even with
your suppliers, can significantly reduce the need for any form of complex planning. With
many implementations the only planning is the final shipping process.
7. Improved Quality: The removal of large batch manufacturing and reduction in handling
often results in significant quality improvements; often in the region of 25% or more.
8. Productivity increases: To achieve JIT there are many hurdles that must be overcome with
regards to how the process will flow. These will often result in productivity improvements of
25% upwards.
9. Problems are highlighted quicker: Often this is cited as being a negative aspect of JIT in
that any problems will often have an immediate impact on your whole production process.
However this is the perfect way to ensure that problems are highlighted and solved
immediately when they occur.
10. Employee empowerment: One requirement of JIT as with most other aspects of Lean
manufacturing is that employees are heavily involved in the design and application of your
system.
Kanban:
The system originates from the simplest visual stock replenishment signaling system, an empty
box. This was first developed in the UK factories producing Spitfires during the Second World
War, and was known as the “two bin system.” In the late 1940s, Toyota started
studying supermarkets with the idea of applying shelf-stocking techniques to the factory floor. In
a supermarket, customers generally retrieve what they need at the required time—no more, no
less. Furthermore, the supermarket stocks only what it expects to sell in a given time, and
customers take only what they need, because future supply is assured. This observation led
Toyota to view a process as being a customer of one or more preceding processes and to view the
preceding processes as a kind of store.
Toyota's Six Rules of Kanban:
1. Each process issues requests (kanban) to its suppliers when it consumes its supplies.
2. Each process produces according to the quantity and sequence of incoming requests.
3. No items are made or transported without a request.
4. The request associated with an item is always attached to it.
5. Processes must not send out defective items, to ensure that the finished products will be
defect-free.
6. Limiting the number of pending requests makes the process more sensitive and reveals
inefficiencies.
Kanban Card:
Kanban cards are a key component of kanban and they signal the
need to move materials within a production facility or to move
materials from an outside supplier into the production facility.
The kanban card is, in effect, a message that signals a depletion
of product, parts, or inventory. When received, the kanban
triggers replenishment of that product, part, or inventory.
Consumption, therefore, drives demand for more production,
and the kanban card signals demand for more product—so kanban cards help create a demand-
driven system.
E-kanban:
E-kanban is a signaling system that uses a mix of technology to
trigger the movement of materials within a manufacturing or
production facility. Electronic Kanban differs from traditional
kanban in using technology to replace traditional elements like
kanban cards with barcodes and electronic messages
like email or Electronic data interchange (EDI). A typical
electronic kanban system marks inventory with barcodes, which workers scan at various stages
of the manufacturing process to signal usage. The scans relay messages to internal/external stores
to ensure the restocking of products. Electronic kanban often uses the internet as a method of
routing messages to external suppliers and as a means to allow a real-time view of inventory, via
a portal, throughout the supply chain.
Types of Kanban system:
In a kanban system, adjacent upstream and downstream workstations communicate with each
other through their cards, where each container has a kanban associated with it. Economic Order
Quantity is important. The two most important types of kanbans are:
1. Production (P) Kanban: A P-kanban, when received, authorizes the workstation to produce
a fixed amount of products. The P-kanban is carried on the containers that are associated with
it.
2. Withdrawal (W) Kanban: A T-kanban authorizes the transportation of the full container to
the downstream workstation. The T-kanban is also carried on the containers that are
associated with the transportation to move through the loop again.
3. Supplier (S)Kanban: Same as an inter-process Kanban, except it signals conveyance of part
from an outside supplier
Implementation of Kanban:
• The workflow consists of logical steps.
• There are two steps to a workflow viz. queue and work in progress/process.
• The team in charge decides on the maximum amount of work each step of the workflow can
hold.
• Work is pushed into the queue step and pulled in the in a process step.
• If need be, work is halted in two successive stages to clear bottleneck.
Kanban is not for everybody: The conditions necessary for Kanban to work well are:
Three-bin system:
Three-bin system is for the supplied parts, where there is no in-house manufacturing.
Bin 1- on the factory floor (the initial demand point),
Bin 2- in the factory store (the inventory control point),
Bin 3 - at the supplier. The bins usually have a removable card containing the product details and
other relevant information, the classic kanban card.
Other Kanban Types:
✓ Job order Kanban - Issued for each job order
✓ Through Kanban - When two processes are very close, it doesn’t make sense to issue two
Kanbans. Used where one process directly feeds (conveyor) the next process.
✓ Common Kanban - Where a withdrawal kanban is used as a production ordering kanban if
the distance between two processes is very short and share the same supervisor.
✓ Emergency Kanban - Temporary, when there is a defect or problem, can be withdrawal or
production
Determining Number of Kanbans:
No. of Kanbans = Average demand during lead time + safety stock / container size
N = (𝒅𝑳 + 𝑺 )/𝐶
Where,
N = number of kanbans or containers
d = average demand over some time period
L = lead time to replenish an order
S = safety stock
C = container size
Kanban systems principles:
• Principle 1: Do not focus on balancing capacities, focus on synchronizing the flow.
• Principle 2: The level of utilization of a non-bottleneck resource is controlled by other
constraints within the system.
• Principle 3: Resources must be utilized, not simply activated.
• Principle 4: A transfer batch may not, and many times should not, be equal to the process
batch.
• Principle 5: A process batch should be variable both along its route and over time.
Develop what will cause individual actions to relate to the common goal
Benefits of Kanban:
• Provides quick and precise information
• Provides quick response to changes
• Avoids over production
• Minimizes waste
• Maintains full control
• Delegates responsibilities to workers
Heijunka:
Is a Lean method for reducing the unevenness in a production process and minimizing the
chance of overburden. Heijunka is a system of production-leveling that produces the right
product mix as demanded by the customer by making optimal utilization of the available
capacity.
Achieving Heijunka:
The most basic and widespread type, also known as a fill-up or replenishment or a-type pull
system. In a supermarket pull system each process has a store—a supermarket—that holds an
amount of each product it produces. Each process simply produces to replenish what is
withdrawn from its supermarket. Typically, as material is withdrawn from the supermarket by
the downstream customer process, a kanban or other type of information will be sent upstream to
the supplying process to withdraw product. This will authorize the upstream process to replace
what was withdrawn. Each process is responsible for the replenishment of its supermarket, so
daily management of the worksite is relatively simple and kaizen opportunities are relatively
easy to see. The disadvantage of a supermarket system is that a process must carry an inventory
of all part numbers it produces, which may not be feasible if the number of part numbers is large.
Sequential Pull System:
A sequential pull system—also known as a b-type pull system—may be used when there
are too many part numbers to hold inventory of each in a supermarket. Products are essentially
"made-to-order" while overall system inventory is minimized. In a sequential system, the
cheduling department must set the right mix and quantity of products to be produced. This can be
done by placing production kanban cards in a heijunka box, often at the beginning of each shift.
These production instructions then are sent to the process at the upstream end of the value
stream. Often this is done in the form of a “sequence list,” sometimes called a “sequential
tablet.” Each following process simply produces in sequence the items delivered to it by the
preceding upstream process.
FIFO of individual products must be maintained throughout. A sequential system creates
pressure to maintain short and predictable lead times. In order for this system to work
effectively, the pattern of customer orders must be well understood. If orders are hard to predict,
production lead time must either be very short (less than order lead time) or an adequate store of
finished goods must be held. A sequential system requires strong management to maintain, and
improving it may be a challenge on the shop floor.
Mixed Supermarket and Sequential Pull System:
Supermarket and sequential pull systems may be used together in a mixed system—also known
as a c-type pull system. A mixed system may be appropriate when an 80/20 rule applies, with a
small percentage of part numbers (perhaps 20%) accounting for the majority (perhaps 80%) of
daily production volume. Often an analysis is performed to segment part numbers by volume
into (A) high, (B) medium, (C) low, and (D) infrequent orders. Type D may represent special
order or service parts. To handle these low-running items, a special type D kanban may be
created to represent not a specific part number but rather an amount of capacity. The sequence of
production for the type D products is then determined by the method the scheduling department
uses for sequential pull system part numbers.
Such a mixed system enables both supermarket and sequential systems to be applied
selectively and the benefits of each are obtained, even in environments where the demand is
complex and varied. The two systems may run together, side-by-side horizontally, throughout an
entire value stream, or may be used for a given part number at different locations along its
individual value stream. A mixed system may make it more difficult to balance work and to
identify abnormal conditions. It also can be more difficult to manage and conduct kaizen.
Therefore, discipline is required to make a mixed system work effectively.
Batch Size (BS) – size of typical batch that is processed as a unit Takt time – rate of demand
Throughput time – sum of delays and process time
Process Ratio = Total process time / Throughput time
Value Added Ratio = Total VAT / Throughput time
VSM – Boundary:
Phase - 1 Current State:
• Define the boundaries
• Define the value
• Identify the tasks and flows of material and information between them
• Identify resources for each task and flow
• Create the current state map
Phase – 2 Future State (Design):
• Visualise the “Ideal State” and design the future state map
• Identify value added and waste from Current State
• Reconfigure the process to eliminate waste / Add Value
Phase -3 Implementation Plan: Develop Action plans and track
JIDOKA – Autonomation:
Introduction:
Jidoka means providing machines and operators the ability to detect when an abnormal
condition has occurred and immediately stop work. This enables operations to build in quality at
each process and to separate men and machines for more efficient work. Jidoka is one of the two
pillars of the Toyota Production System along with just-in-time. Jidoka highlights the causes of
problems because work stops immediately when a problem first occurs. This leads to
improvements in the processes that build in quality by eliminating the root causes of defects.
Jidoka sometimes is called autonomation, meaning automation with human intelligence.
This is because it gives equipment the ability to distinguish good parts from bad autonomously,
without being monitored by an operator. This eliminates the need for operators to continuously
watch machines and leads in turn to large productivity gains because one operator can handle
several machines, often termed multi-process handling.
Jidoka Origin:
The concept of jidoka originated in the early 1900s when Sakichi Toyoda, founder of the Toyota
Group, invented a textile loom that stopped automatically when any thread broke. Previously, if
a thread broke the loom would churn out mounds of defective fabric, so each machine needed to
be watched by an operator. Toyoda's innovation let one operator control many machines. In
Japanese, jidoka is a Toyota-created word pronounced exactly the same (and written
in kanji almost the same) as the Japanese word for automation, but with the added connotations
of humanistic and creating value.
Built in Quality:
It is one of the main principles of the Toyota Production System. It is the principle of designing
equipment to stop automatically and to detect and call attention to problems immediately,
whenever they occur (mechanical jidoka). In the Toyota Production System, operators are
equipped with means of stopping the production flow whenever they note anything suspicious
(human jidoka). Jidoka prevents the waste that would result from producing a series of defective
items. It also liberates operators from the control of the machine and leaves them free to
concentrate on tasks that enable them to exercise skill and judgement, instead of over watching
each machine continuously.
Poka Yoke:
Shingo redesigned a process in which factory workers, while assembling a small switch,
would often forget to insert the required spring under one of the switch buttons. In the redesigned
process, the worker would perform the task in two steps, first preparing the two required springs
and placing them in a placeholder, then inserting the springs from the placeholder into the
switch. When a spring remained in the placeholder, the workers knew that they had forgotten to
insert it and could correct the mistake effortlessly. Shingo distinguished between the concepts of
inevitable human mistakes and defects in the production. Defects occur when the mistakes are
allowed to reach the customer. The aim of poka-yoke is to design the process so that mistakes
can be detected and corrected immediately, eliminating defects at the source.
ERROR- A mistake (deviation from what is correct, right, or true)
Old way - Scold people, Retrain them, tell them to be more careful
New way - Training and motivation, easy way to do a job
Causes of Defects: Errors lead to defects
• Poor procedures or standards
• Machines
• Non-conforming material
• Worn tooling
• Human Mistakes
Poka Yoke over Errors:
• Help operators avoid mistakes in their work caused by choosing the wrong part, leaving out
a part, installing a part backwards, etc.
• Involves the implementation of fail-safe ways methods that detect or prevent human and
machine error at or near the source.
• Provides instant feedback and prevention of quality problems
Poka-Yoke as a device:
a problem, he pulls the rope, which gives a signal to the Andon that there is a problem. Usually a
second pull cancels the signal and tells the Andon that the problem is solved.
2. Andon Button:
The cord is probably best known, but it does not have to be a cord. It could also be an Andon
switch or an Andon button. A cord has the advantage that on a larger
assembly line, it gives easy access to the signal line over a longer
distance, whereas with a button the worker may have to walk over to it
before pressing it. Of course, for smaller work spaces, a button or
switch will be just fine since the worker is not walking around anyway.
3. Andon cord with multiple stations:
Ideally, every station at the value stream has its own button or cord. This way, the system
knows not only that there has been a problem, but where the problem occurred. It is even
possible to have more than one cord or button.
Yellow Cord - If the operator has a problem but he is not yet sure if he can fix it in time without
stopping the line
Red Cord - If he could not fix the problem and has to stop the line, he pulls the red cord to
signal a line stop.
One option for the line stop is also to keep the line moving until the product has reached
the end of the individual station. Only when the “time is up” does the line stop completely. This
allows calling for help while the line still moves, and hence creates less inconvenience for other
stations. It also allows a faster start after the problem is fixed, since the next product will be
arriving almost immediately.
4. Andon Cord with Multiple stations and Multiple buttons:
One line is usually a good starting point, more than three lines is excessive, and you don’t want
the operator to type in a problem report while the line is waiting for him to actually fix the
problem.
5. Automatic Signalling Andon:
For an assembly line, the system could sense if all necessary operations have been completed. If
there are still open tasks when the time is up, it means the worker is either falling behind or
forgot something. In any case, it is a problem and a signal can be sent automatically. Similarly,
for an automatic or semi-automatic machine, sensors and programmed logic can detect a current
or even a potential upcoming slowdown or stop.
This information is then also forwarded into the Andon system. Additionally, many Andon
systems also automatically measure things like production speed, actual and target quantities,
and other parameters relevant to the performance of the line.
Output Andon:
The Andon system receives data on the production performance from different sources like
sensors, programs, or manual inputs. This data is then displayed, usually in a visual manner
involving lights, but also possibly in numbers or even audio signals or through mobile phone
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LEAN MANAGEMENT UNIT - 2
networks. As such, Andon can be part of visual management. Stack light Probably the simplest
Andon system is a stack light or industrial light tower on top of a machine. One or more lights
indicate the current status of the machine. Even combinations are possible (green light on, yellow
is blinking).
• Green - for regular operations,
• Red - for larger problems or defects (or, alternatively, a call for assistance),
• Orange for warnings,
• Blue for a request for assistance, and
• White if all the other colors are not enough
Benefits of Andon in Lean Manufacturing:
Short-term, it provides:
• Visibility and transparency in the production process
• Increased productivity and efficiency
• Decreased waste
Long term benefits include:
• Reduced costs and downtime
• Enhanced value to the customer because of better quality products
• Responsible operators who are accountable for the line running as efficiently and effectively
as possible, empowering them to act when problems arise, rather than waiting for
management
• Long term improvements to production process
• Like most principles in Lean manufacturing, the Andon cord itself doesn’t add value.
Likewise, if action isn’t taken immediately when the system is alerted, it defeats the purpose
and can actually detract from the value you are targeting.
Inspection Systems:
As defects are inherent to production processes, the need for inspection rises in today’s
manufacturing environment. Although inspection does not reduce the amount of defects, it is a
common technique to prevent outflow of defects to the customer. The way this inspection is done
is of huge importance. Shigeo Shingo (1986) identifies three different ways of inspection:
1. Judgement inspection
2. Informative inspection
LAVANYA P B, ASSISTANT PROFESSOR, ALIET Page 29
LEAN MANAGEMENT UNIT - 2
3. Point-of-Origin inspection
1. Judgement inspection:
Judgement inspection is also called standard inspection. This is the most traditional, very
expensive, not efficient but still most occurring in today’s manufacturing, method of inspection.
As the word says it all, a judgement must be made to sort the defects out. Often in manufacturing
terminology this is referred to as a “Quality Wall”. Judgement inspection takes place after the
defect has occurred.
Inspection point takes place at the end of the 4-step manufacturing process. This means all value
added activities are already performed before the defective part is identified. If the defect
originates for example in step 1, time and money are lost by further processing the already
defective part in the subsequent steps. After the defect gets filtered out, it is checked and
feedback is given to request action in the process step where the error is made. This way of
standard inspection is slow in reactivity, inefficient and very costly.
Generally 90% effectiveness is accepted for judgement inspection. This implies that if 10
000 items need to be inspected of which 1 000 are a defect, the first Quality Wall will miss 100
out of 1000. The second Quality Wall will miss 10 and the third Quality Wall will miss out 1.
This proves that judgement inspection is not effective, nor efficient. Judgement inspection
supports in preventing outflow of defects to the customer, but does not actively contribute in
reducing the defect rate. It adds an additional step to the production process and is performed not
only on defective parts but also on good parts, which makes it even more ridiculous. Even when
this inspection is automated, it is not value adding and therefore a waste of resources. By all
means, this method of inspection should be minimized or even eliminated from your production
process.
2. Informative inspection:
Informative inspection analyses data to control and prevent defects. Statistical Process Control
(SPC) is a way of informative inspection that serves as a quality control method based on
sampling and statistical methods. Key tools in SPC are control charts and Design of Experiments
(DoE). No further details are provided here on SPC but the basic principle is that the statistics
give feedback in order to alter the working methods to reduce the defect ratio.
Informative inspection takes place after the defect has occurred but supports in reducing the
defects percentage. Therefore it is called the passive approach. Shingo (1986) argues that SPC
is a tool to keep your defect ratio constant and not to reduce it. The technique requires you to
take samples at sufficient intervals and performs an analysis on the results. As a result, SPC is
less fast in taking corrective actions and less thorough in comparison with the next inspection
method: Point-of-Origin inspection. Although SPC is not the most ideal way of inspection, we
consider it as a strong set of tools which are expected to be know by each quality member in the
manufacturing area.
3. Point-of-Origin inspection:
Point-of-Origin Inspection is what we want to encourage in each manufacturing process. If
focuses on inspection as close as possible to where the defect occurs or would occur. All three
methods below imply 100% inspection, the only difference lies in where the inspection takes
place.
i. Self inspection
ii. Successive Inspection
iii. Self Inspection Revised
iv. Source Inspection
i. Self Inspection:
Self inspection is, as the term explains, an inspection process by
the operator that produces the product. The problem with self
inspection is that the operator controls him or herself. He or she
might then compromise with the quality level of the part that he
or she has produced and might not judge the quality objectively.
The solution in that case lies in successive inspection.
ii. Successive Inspection:
Successive inspection or “next-process-checks” are installed in
the subsequent process step and not in an independent inspection step. As
each process step requires incoming parts, successive-checks are installed
to prevent flow-through to the next process. Each operation consists out
of inspection and production. When a defect is detected, it is immediately
fed back to the previous step where it can be corrected. This method of
inspection will be even more efficient when poka-yoke devices are used.
iii. Self Inspection Revised:
If this judgement could be performed objectively, the flaw of self inspection would be tackled.
This is where poka-yoke devices come to the rescue. “Self-
checks” uses poka-yoke devices to inspect own work. The
operator performs his task and immediately a confirmation is
given that the part is OK or NOT OK. This allows instant
correction of the defect and contributes to even better quality
performance. Self-check systems prevent this from happening
but still face the problem that the defect occurred. This is tackled
in the last inspection method: Source inspection.
The link with poka-yoke and each of the above methods of inspection is that poka-yoke devices
can be installed in each method of inspection, reaching its highest efficiency in source
inspection. Point of origin in full looks like:
ZONE CONTROL:
Zone Control is control one posses over a place or team. For example, a team leader’s zone is his
or her immediate team and work area. The supplier and customer were the upstream and
downstream team, respectively. This way of thinking compelled the development of redundant
controls, which are the essence of reliability engineering”. Each management level should think
of managing in terms of or her “zone”.
In an ideal world, it might be possible to produce with no defects, but unfortunately accidental
defects can occur everywhere at any time in the real world. However, even if we might make
defects, we can stop them before they go to the next process. We can stop them before they go to
the next process. We call this “Zone Control”. As an example, automatic line stop is one of the
methods for Zone Control.