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    All About Lean 2014

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    All About Lean 2014

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    Collected Blog Posts of KOT 2 About can 2014 Christoph Roser @eeo8 @e@ eeeese Collected Blog Posts of AllAboutLean.com 2014 Christoph Roser BQH ae Lean: AllAboutLean.com Publishing Offenbach, Deutschland 2020 © Christoph Roser, 2020 The copyright in Germany usually extends to seventy years after the death of the author (post mortem auctoris). | find this excessive. Hence, I will license this work at the moment of my death but not earlier under the Creative Commons Share Alike 4.0 International License (CC~ BY-SA 4.0). Details of this license can be found at hitps://creativecommons.orgilicenses/by- sa/4.0/. Ihope you do not wish death upon me now... However, keep in mind that many images in this work come with different licenses. Please respect the copyrights of images by other sources as detailed in the image credits at the end of this book. AllAboutLean.com Publishing, Christoph Roser, Hafeninsel 14, 63067 Offenbach, Deutschland, printed by Amazon Media EU S.arr.1., 5 Rue Plaetis, L-2338, Luxembourg ISBN of the different versions © 978-3-96382-010-6 Paperback in color # 978-3-96382-011-3 Kindle eBook # 978-3-96382-012-0 Free PDF for download at AllAboutlean.com Bibliographic information published by the Deutsche Nationalbibliothek: The Deutsche Nationalbibliothek lists this publication in the Deutsche Nationalbibliografie; detailed bibliographic data are available on the Internet at http://dnb.dnb.de. Mm Other Books by Christoph Roser “Faster, Better, Cheaper” in the History of Manufacturing: From the Stone Age to Lean Manufacturing and Beyond, 439 pages, Productivity Press, 2016. ISBN 978-1-49875-630-3 Fertigungstechnik fiir Fihrungskriifte. 2. iiberarbeitete und erweiterte Auflage, 293 pages, AllAboutLean Publishing, 2019. ISBN 978-3-96382-004-5 (Manufacturing fundamentals textbook for my lectures, in German) Collected Blog Posts of AllAboutLean.com 2013, AllAboutLean Publishing, 2020. ISBN 978-3-96382-007-6 Collected Blog Posts of AllAboutLean.com 2014, AllAboutLean Publishing, 2020. ISBN 978-3-96382-010-6 Collected Blog Posts of AllAboutLean.com 2015, AllAboutLean Publishing, 2020. ISBN 978-3-96382-013-7 Collected Blog Posts of AllAboutLean.com 2016, AllAboutLean Publishing, 2020. ISBN Collected Blog Posts of AllAboutLean.com 2017, AllAboutLean Publishing, 2020. ISBN 978-3-96382-019-9 Collected Blog Posts of AllAboutLean.com 2018, AllAboutLean Publishing, 2020. ISBN 978-3-96382-022-9 Collected Blog Posts of AllAboutLean.com 2019, AllAboutLean Publishing, 2020. ISBN 978-3-96382-025-0 Iv Preface to the 2013-2019 Collection of Blog Posts Having successfully written my award-winning blog, AllAboutLean.com, for over six years now, T decided to make my blog posts available as collections. There will be one book of collected blog posts per year, from 2013 to 2019. This way you can store these blog posts conveniently on your computer should my website ever go ofiline. This also allows you a more professional citation to an article in a book, rather than just a blog, if you wish to use my works for academic publications. This work is merely a collection of blog posts in chronological sequence, and hence does not make a consistent storyline but rather fragmented reading. I am also working on books that teach lean manufacturing. These will also be based on my blog, but they will be heavily edited and reworked to make a consistent storyline. The one I am currently writing focuses on pull production, and hopefully it will be available soon, The blog posts in this collection are converted into a book as closely as I can manage. However, there are a few changes. For one, on my blog, image credits are available by clicking on the images. This does not work in printed form, hence all images in this collection have a caption and a proper credit at the end of this book. Besides my own images, there are many images by others, often available under a free license. I would like to thank these image authors for their generosity of making these images available without cost. Detailed credits for these other authors are also at the end of this book. Additionally, a few images had to be removed due to copyright reasons. These are, for example, images from Amazon.com. My blog also includes videos and animations, However, the print medium is generally not well suited to videos and animations, and I do not even have the rights to all videos. Hence, I replaced these videos with a link to the video, and edited the animated images. On digital versions of this book (Kindle eBook, pdf, etc.), these links also should be clickable. No such luck with the print version, unfortunately. Since my goal is to spread the idea of lean rather than getting rich, I make my blog available for free online, Subsequently, I also make this book available as a free PDF download on my website. However, if you buy it on Amazon, they do charge for their eBooks. If you want a paper version ... well ... printing and shipping does cost money, so that won't be fee either. I would like to thank everybody who has supported me with my blog, including Christy for proofreading my texts (not an easy task with my messy grammar!), Madhuri for helping me with converting my blog posts to Word documents, and of course all my readers who commented and gave me feedback. Keep on reading! As an academic, Tam measured (somewhat) on the quantity of my publications (not the quality, mind you!), and my Karlsruhe University of Applied Science tracks the publications of its professors. In other words, one of my key performance indicators (KPI) is the number of. publications I author. Hence, I will submit these collected blog posts as publications. On top of that, I will submit every blog post in this book as a book section too. Hence, I will have over three hundred publications including seven books, with me as an author, in one year! It will be interesting to see the reaction of the publication KPI system on this onslaught ©. I just want to find out what happens if I submit over three hundred publications in one year @. I don’t know if | will get an award, or if | will get yelled at, but it surely will be fun. I will keep you posted, Table of Content 1 Japanese Standard Pointing and Calling (Video) 1.1 The Technique..... 1.2 Video of Examples of Pointing and Calling in Japan. 13 The Value of Pointing and Calling 1.4 Examples for Point and Call 1.5 Usage Outside Japanese Railway Companies. 1.6 Acceptance Problems...... 1.7 Editorial Notes. Consistency at Toyota — The Board of Directors of the Toyota Motor Company 2.1 The Highly Uniform Toyota Men’s Club... 2.1.1 Nationality and Gender. 2.1.2. Typical Resume of a Board Member... 2.2. Benefit for Toyota... 2.2.1 Toyota Managers Training 2.2.2 “Toyotaness” of the Toyota Managers. 2.3. Historic Developments... . 2.4 Recommendations. 25° Sources Lean is Zero Defects? —I don’t think so! 3.1 Zero Defects 3.2. Zero Inventory... 3.3. Zero Set-Up Time 3.4 Zero Lot Size... 3.5 Other Zeros Evolution of Toyota Assembly Line Layout— A Visit to the Motomachi Plant 4.1 Old Standard Layout for Toyota Plants 4.2 Layout Experiments at the Kyushu Plant 1992. 4.3. Changes in the Motomachi Plant 1994... 4.4 New Layout Motomachi Plant 4.5 Advantages of the New LayoUt..ennnnnn Shigeo Shingo and the Art of Self Promotion 5.1 The Beginnings 5.2. Shingo and Toyota so 5.3 Shingo, the “Inventor” of the Toyota Production System 5.4 The Legacy of Shigeo Shingo... 5.5 Addendum. 5.6 Addendum 2.....ceenee Dress for Success in Lean Manufacturing, 6.1 Inthe Boardroom... 6.2 On the Shop Floor, 6.3 A Compromise 64 The Easy Way Out. 6.5 Summary Poka Yoke Training — Simple Mistake Proofing Game 7.1 The Basics of Poka Yoke 7.2 The Kinder Surprise Eggs 7.3. The Toy Assembly. vi 7.4 Assembly Options... 7.5 The Poka Yoke Gam 7.5.1 Scale of the Game. 7.5.2 Non-Assembly Collectibles... 7.6 Where to Get the Eggs? .... enna . 7.7 US Choking Hazard and Alternatives. 25 8 Quick Changeover Basics - SMED 8.1 Priorities! 8.2. Preparation 8.2.1 SetupaTeam.., see . esses 8.2.2 What to Measure. 27 8.2.3. Inform the WorketS .scssenssetnesnntisnatannstsnatneesee oo 28 8.3. The Six Fundamental Steps of SME} 28 8.3.1 Measure Changeover Times... 28 83.2 Identify Internal and External Elements. 28 8.3.3. Move As Many Elements as possible to External 28 8.3.4 Shorten Internal Element 8.3.5 Shorten External Elements enn 8.3.6 Standardize and Maintain New Procedure 30 84 Practical Tip: 8.5. Potential 9 The History of Quick Changeover (SMED). 9.1 Henry Ford.. 2 92 GM with Alfred P. Sloan . 9.3 Economic Order Quantities.. 9.4 Frank Gilbreth and Frederick Taylor 9.5 Toyota and the Quick Die Change (ano 9.6 Shigeo Shingo and SMED . 9.7 Modern Time. 10 SMED — Creative Quick Changeover Exercises and Training otssnstnnnnnsei 10.1 Single-Minute Exchange of ... Cocktail?! 37 10.2 Firefighter SMED ..... 10.3. Quick Changeover Coffee Please! . ssn eveees 40 10.4 Formula | Pit Stop 40 11 How a Little Bit of Industrial Espionage Started the Industrial Revolution ... 42 11.1 Prelude 11.2 Britain Steals Italian Spinning Technology 11.3 Italy Retaliates (... or did it?...) 11.4 Germany Steals British Spinning Technology.. 11.5 USA steals British Spinning Technology . 11.6 Still a Popular Past Time. 12 How to Manage Your Lean Projects — Number of Active Projects... 12.1, Prelude — Work Life is Busy. 12.2 Don’t Start Them All. 12.3. Analogy: Manufacturing System .. - 12.4 Limit the Number of Active Projects!. 48 12.5 The Project Management Board .. 12.6 How Many Projects Simultaneously? 12.7 Next: Prioritize. vil 13 How to Manage Your Lean Projects — Prioritize .. 13.1 Wrong Reasons for Picking the Next Proj 13.2 The Overkill — Cost Benefit Analysis. 13.3. My Preferred Approach — Impact Effort Matrix. 13.4 Some Variations... : 14A Lean Obituary for Maybach — A 14.1. The Maybach Story. soon 53 14.2 The Largest Cost Factors 34 14.2.1 Development... 14.2.2. Tooling... 14.2.3. Paperwork. “autionary Tale About Cost of Complexity nnn 53 14.2.4 Raw Material and Finished Goods Inventory este sees 56 14.2.5, Manufacturing 56 14.26 Sales. 57 14.2.7. Spare Parts and End-of-Life Ramp Dov : eons ST 14.3 Wrap Up 58 14.4 Same Story, different Maker. 59 15 The Difference Between Lean and Six Sigma 60 15.1 The Origins of Six Sigma. seen 60 15.2 The Fundamentals of Six Sigma. seven: 60 15.3. Six Sigma Does Not Work. 61 15.3.1 Why Six? wssossntsnnnnnennennesnsen soe 61 15.3.2 Untealistic Demands essen 62 15.3.3 No Consideration of Cost-Benefit. 62 15.3.4. Stupid Reliance on Numbers... 63 15.3.5 Metadata on Six Sigma Failures. one 63 15.4 Six Sigma Now Includes Lean 63 15.5 A Stroke of Genius ~ Black Bell Certifications. oneness sone 63 15.6. Wrap Up 64 16 The Problem of Losing Kanban — Different Kanban Types... osenninnsennsnns 66 16.1 The Problem of Losing Kanban 66 16.2. Countermeasures Against Losing Kanban... on 66 16.2.1. Stable and Robust Kanban Standards . 66 16.2.2. Educate Your Workforce. 67 16.2.3 Digital Kanban... 16.2.4 Heavy Metal Kanban.. 16.2.5. Boxes as Kanban 16.2.6 No Kanban At All. 16.3 Detecting Lost Kanban, 17 Cost of Complexity. 17.1 Example: Lego — A Success Story. 17.2 Example: Automobiles — A Mixed Story... 17.3 Sources of Complexity Costs... 17.3.1 Development and Tooling 17.3.2. Paperwork... 173.3. Raw Material and Finished Goods Inventory, 17.3.4. Training — and Forgetting 17.3.5. Spare Parts and End-of-Life Ramp Down.. 17.4 Summary 175 Sources vil 18 How Many Kanbans? — The Kanban Formula, Part 1. 73 18.1 Kanban Calculation Fundamentals «0.0.0 senses even TB 18.1.1 Factors Influencing the Calculation, B 18.1.2. Precision of the Kanban Calculation... 74 18.2 Kanban Calculation Part 1 se TA 18.2.1 Regular Time of Customer — Customer Takt 14 18.2.2 Regular Time of Replenishment System — Replenishment Time oe TS 19 How Many Kanbans? — The Kanban Formula, Part 2. 79 19.1 Kanban Calculation — Patt 2... ese 79 19.1.1 Fluctuations of Replenishment System . sevens 80, 19.1.2 Fluctuations of Customer 80, 19.1.3 Calculating the Total Number of Kanban .. seoennnneenennne BL 19.1.4 Safety Margin 82 20 How Many Kanbans? — Estimation Approach and Maintenance 83 20.1 Simply Estimate the Number of Kanbans. 83 20.2. Verify if the Number of Kanbans .. 83 the System and Adjust 20.3. Check Occasionally or Seasonally... 85 21 Toyota Employee Relationship Crisis and Countermeasures 1990 86 21.1 Causes of the Employee Relationship Crisis, : oes 86 21.2. Employees Voting with Their Feet 87 21.3 Toyota’s Countermeasures. 87 21.4 Did it work? Partially. 89 22 Culture of Quality — A Comparison of Toyota and GM Recalls. 90 22.1 Introduction... oes 90 22.2 The Toyota Recalls — (Relatively) Speedy Recall 90 22.3 ‘The GM Recalls — Saving 90 Cents Per Vehicle is Worth More than 13+ Li 1 22.4 The Government Reaction ... fests se eons D2 22.5 Summaty..... seventeen evnneeenne seven 93 23 About Shifting Bottlenecks 94 23.1 Definition of a Bottleneck... 294 23.2. Types of Production Systems 94 23.2.1 Static Systems. 95 23.2.2 Dynamic Systems... 95 23.2.3 Stable Dynamic Systems . este seen 95 23.2.4 Unstable Dynamic Systems. 95 23.3. Shifting Bottlenecks... estnnnnntesen sevnneeennne 23.4 Long-Term and Momentary Bottlenecks... 96 24 Common Bottleneck Detection Methods that do NOT work! ssoee 97 24.1 Shifting Bottleneck Reference System 97 24.2 Average Cycle Time 98 24.3, OEE or Utilization . . soso z sone 99 24.4. Average Inventory Levels. 99 24.5 Average Percent Blocked or Starved ..... .. 100 24.6 Concluding Remarks... sone . 101 24.7 See also 102 25 Mathematically Accurate Bottleneck Detection 1 — The Average Active Period Method 103 25.1. The Basics 103 25.2 Duration without Waiting Determines Bottleneck... 103 Ix 25.3 The Average Active Period Method vee 104 25.4 How Did | Find that Method?...... . esensnsen vee 104 25.5 Some Special Situations 105 25.6 References... .. 105 26 Mathematically Accurate Bottleneck Detection 2— The Average Active Period Method 106 26.1. The Basic: 106 26.2. The Analysis .. . cove 106 26.3. Summary Data. 107 264 Predictions.. sows 108 26.5. Requirements of This Metho see . . .. 108 26.6 Sources 108 27 The Bottleneck Walk — Practical Bottleneck Detection Part 1 10 27.1 The Observations...... 110 27.1.1 Observing Processes 110 27.1.2 Observing Inventories M1 27.2. Where is the Bottleneck? .. a sees 112 27.2.1 Ideal Case: One Bottleneck, All Data Conclusive... ses vee HD 27.2.2 Real Case: Not All Data Conclusive 112 27.2.3 Possibility: More than One Bottleneck. veer 3 27.2.4 Possibility: Bottleneck Outside the System.. eevee WB 272.5 Possibility: Bottleneck in an Unobserved Secondary Process 14 27.3 Sources: 14 28 The Bottleneck Walk — Practical Bottleneck Detection Part 2 115 28.1 Long-Term Average Bottleneck ... soe WS 28.2. A Few Tips..... 116 28.3 Why You Should Use this Method! 17 28.A SOUTCES! eosnen soe ANT 29 Manufacturing — A key stepping stone on the Road to Prosperity. . . 118 29.1 Big Data on Economic Relations 00s otstnntnatnnsnnannnsi soe HB 29.2. Different Countries in Detail 119 29.2.1 Selected American Counties... 120 29.2.2 Selected Asian Countries... eset seve 120 29.2.3 Selected European Countries 121 29.2.4 Selected African Countries 121 29.3 Summary sevnenneee 12D 29.4. Appendix ~ Details on Source Data and Analysis 122 30 The Hidden and not-so-hidden costs of Inventory... eves 123 30.1 Causes of Inventory Cost.. 123 30.1.1 Cost of Capital..... 123 30.1.2. Taxes and Insurance 124 30.1.3 Storage Cost soe 124 30.1.4 Handling Cost. 128 30.1.5 Administration Cost. 125 30.1.6 Scrapping and Obsolescence . 126 30.1.7 Deterioration and Theft a soe 126 30.1.8 Value or Cost of Response Time. 127 30.2 Summary 127 30.3 Soure 128 31 Facing Change in Modern Manufacturing Systems ~ The Difference between Flexible, Agile, Reconfigurable, Robust, and Adaptable Manufacturing Systems... soon 129 31.1 Active and Passive Change to the Manufacturing System 129 31.2. Sources of Change .. se 129 31.3 What the Industry is Talking About (... and What They Mean)... oo 130 31.3.1 Flexible Manufacturing System 130 31.3.2 Agile Manufacturing System... 130 31.3.3 Reconfigurable Manufacturing System seo 13 31.3.4 Robust Manufacturing System 131 31.3.5. Adaptable Manufacturing Syste sevsninnnenene 132 31.3.6 Other. 132 31.4 Sources 133 32 Corporate Culture on uatty Starts at the Top — A Small Anecdote on Organizational Blindness ... 134 32.1 Small Aneedote on Quality 134 32.1.1 Noticing a Flawed Product on Display. 134 32.1.2 Still Noticing the Flawed Product on Display Two Months Later 134 32.1.3. Escalation to the CEO Works «....-..- enn seo 13S 32.2 Quality Starts at the Top 135 32.3 How to Fight Organizational Blindness — Especially on Quality — Especially for Top Executives seve 13S 32.3.1 Go and See! 135 32.3.2 When You are There, Focus and Actually See! 0 soos 136 32.3.3. When You Have Seen Something, Use the Chain of Command! . - sees 136 32.3.4 Go for Permanent Solutions — But Don’t Solve It Yourself! 136 324 NOt enssntnnnnnstnnnnnieesnninnsesinn 137 33 Theory and Practice on FiFo Lanes — How Does FiFo Work in Lean Manufacturing?.... 138 33.1 The Reason for FiFo — Decoupling of Processe$ .....nnnnn seo 138 33.2 The Rules for FiFo 139 33.2.1 Breaking the Rules ..ccsssssetssseensesentsensee soe 140, 33.3. Advantages of FIFO Lanes ..jcsesssrsnenss vtsentnensee see 140 33.4. Examples of FiFo Lanes 141 34 Determining the Size of Your FiFo Lane ~ The FiFo Formula........ 143 34.1. The Mathematically Correct (and Practically Completely Useless) Solution 143 34.1.1. The “Simple” Case —No Inventory. seve 14 34.1.2 Including Buffer to Increase Speed sevnnneeennee 14S 34.1.3. Relation between Buffer Size and Slowing Down Primary Bottleneck 146 34.1.4. Fancy Math, But How Does This Help You on the Shop F1001? cmon 146 34.2 FiFo Sizing on the Shop Floor 147 34.2.1 A Few Practical Suge soo 147 34.2.2 Some Not-So-Useful Rules ~ Don't Use! . 147 35 Happy Ist Birthday AlLAboutLean.com. 149 35.1 Most Popular Posts.. 149 35.1.1 To 10 Posts of All Time 150 35.1.2. Top 5 Posts by Views per Day 151 35.1.3 Some Observations..... 151 35.2 Some Statistics 151 35.3 Things to Come. 153 x1 36 Visual Management during World War Il — A Visit to the Lascaris War Rooms in Malta.. 154 36.1 Malta during World War Il 154 36.2 The Lascaris War Rooms... 155 36.2.1 The First War Room during the Siege of Malta oe 156 36.2.2. The Second War Room for the Invasion of Sicily 161 36.2.3. The Third War Room during the Cold War and Afterward 162 36.3. Other War Rooms... 163 37 The FiFo Calculator — Determining the Size of your Buffers. see 164 37.1 Information About the Two Processes...... evr enees 164 37.2. Expected System Time. 164 37.3. FiFo Size Recommendation ....seeseee sottnsennennsene sone 164 37.4 Some Additional Observations 164 37.5. Bottleneck Probabilities... soe 165 37.6 Normal Distributions... ens on . sone 165 37.7 How to Use the FiFo Calculator 165 37.8 About the Calculator... 165 38 The Advantage of Handwritten Data on the Shop Floor 167 38.1 The Uselessness of Pretty But Obsolete Data... soe 167 38.2. Draw It by Hand. 168 38.2.1 Shop Floor Involvement 168 38.2.2 More Likely to be Up-to-Date, Hence More Likely to be Effective sone 168 38.2.3 It Forces You to Make It Simple... 169 38.2.4 No Lost Time for “Prettifying” 169 38.3 Occasions Where Printed Data May Be More Useful... 169 39 A Successful Example of Lean Implementation — Trumpf and its Synchro Manufacturing System (Part 1) vssssnenneententnineneneeee 171 39.1 The Company. 171 39.2. Starting the Change Process... 12 39.3. The Changes (Part 1)... 172 39.3.1 Flow Production 173 39.3.2 Inventory Reduction and Supplier Integration ... 174 40 A Successful Example of Lean Implementation — Trumpf and its Synchro Manufacturing System (Part 2) vee 116 40.1. The Changes (Part 2) se sevens 176 40.1.1 KPI tracking on all levels 176 40.1.2. Continuous Improvement... steiner ITT 40.2 Why Synchro worked where so many others failed 17 41 Eight Rules for Total Gridlock in the Organization (Vide0) senses soos 179 41.1 The Eight Rules for Total Gridlock in the Organization 179 41.1.1 First Rule — Altemate Total Control with Total Freedom.. soe 179 41.1.2 Second Rule - Discuss Change Only at the Informal Level 180 41.1.3. Third Rule - Maximize the Number of New Activities 180 41.1.4 Fourth Rule — Competition and Survival of the Fittest 180 41.1.5 Fifth Rule — Always Find the Guilty One .. : sereee LBD 41.1.6 Sixth Rule — Do Not Question Existing Rules 181 41.1.7 Seventh Rule - Fast Formal Decision Making Followed by Questioning on the Informal Level.. 182 XL 41.18 Eight Rule - Maximize Decision-Making Speed and Minimize Implementation Abilities .. - vvsnnnntntnnesees vv 182 41.2. Sources: 183 42 Top Five Cases When NOT to Use a FiFo....... . eee 184, 42.1, Prelude 184 42.2. When to Break FiFo between Two Processes 184 42.2.1. 1: Batch Processing . eee 184, 42.2.2 2: Priority Orders 185 42.2.3 3: Parallel FiFo Lanes due to Space Constraints vse 185 42.2.4 4: Variation in Storage Cost 186 42.2.5 5: Changeover Optimization. 187 42.3. Some More Examples When Not to Use FiFo across an Entire System 187 43 Common Mistakes of Top Executives — A look at “Undercover Boss”... 189 43.1. Undercover Boss... 189 43.1.1 The Bosses. 190 43.1.2. The Companies... sone 190) 43.1.3 The Jobs..... svneannnnsentninse svnisnntstntnnesess cove 191 43.2 The Common Mistakes 191 43.2.1. Lack of Gemba soo 191 43.2.2. Deciding for the Employees... 192 44 Bottleneck Management Part 1 — Introduction and Utilization 194 44.1 When Do You Need to Find the Bottleneck? ... 194 44.2. Bottleneck Management Overview. 195 44.3 Identification of Bottlenecks soe 195 44.4 Improve Bottleneck Utilization. 196 44.4.1 Why Utilization is Often the Easiest Approach ... 196 44.4.2 Covering Scheduled Breaks «cscs 197 44.4.3. Covering Unscheduled Breaks 197 44.4.4 Overtime and Additional Shifts 198 45 Bottleneck Management Part 2 — Improve Bottleneck Planning 199 45.1 Planning and Material Flow... 199 45.1.1 Use a Pull System.. 199 45.1.2 Use the Right Pull System, 200 45.1.3 Lot Sizes. soe 201 45.1.4 Seasonality.. . sevsnnne 202 45.2. Answer to the Exercises Above 203 45.2.1 Answer: Which Kanban Loop is Best .....:ssnnnnsnnnsunsenennsenesnnsee 203 45.2.2. Answer: How to Handle Seasonal Demand 204 46 Bottleneck Management Part 3 — Bottleneck Decoupling and Capacity Improvement... 206 46.1 Decoupling Your Bottleneck 206 46.2 Capacity Improvements... eve 207 46.2.1. Update or Install New Machines... esse : soo 207 46.2.2. Improve Changeovers. 208 46.2.3 Improve Maintenance.. 208 46.2.4 Reduce Scrap and Rework In and After the Bottleneck eve 208 46.2.5 Don’t Put Your Worst Worker at the Bottleneck 208 46.3 Is I Now Faster? ..cssessestsensesentneesen 208 47 A Critical Look at Goldratt’s Drum-Buffer-Rope Method 210 47.1. Details about Drum Buffer Rope sree 210 XII 47.1.1 Where the method came f0M 0.0 seo 210 47.1.2 The Boy Scout Example in The Goa eset soo 210 47.1.3. How Drum-Buffer-Rope Works. 21 47.1.4 Drum-Buffer-Rope for People... 21 47.1.5 Drum Buffer Rope for Manufacturing Systems soo 2 47.1.6 Simplified Drum Buffer Rope (S-DBR). 212 47.2 Good Things about Drum Buffer Rope..... 212 47.2.1 Prevents Overloading of the System... sevnnee 212 47.2.2, Measuring Workload in the System as Time 213 47.3. Flaws and shortcomings of Drum Buffer Rope 213 47.3.1 No Consideration for Shifting Bottlenecks 213 47.3.2 Drum-Buffer-Rope considers only Starving of the Bottleneck, not Blocking... 213 47.3.3. Only the Upstream Inventory matters in Drum-Buffer-Rope .... soo 214 47.3.4 Which Part to Produce next? 214 47.3.5 Limited Flexibility in Line Management With only One Loop .... seve 214 41.4. Populatity aoe estes — soo 214 47.5 Summary 215 48 Why Leveling (Heijunka) is important... a soo 216 48.1 Why Leveling?. 216 48.1.1 Ina Perfect Manufacturing World. etna soo 216 48.1.2 Back to Reality! 216 48.1.3 Yes, Chaos Sucks! So What Now’ 217 48.2. Sources of Fluctuation . soe IT 48.2.1 Your Customers... ee seeseennneseseee 217 48.2.2 Your Suppliers. 217 48.2.3 Your Own Shop FlOOF .ersnmeneessne — seo 17 48.3. Realize that These Sources of Fluctuation Are Connected... seve 218 48.4. How Not to Do It- The Bullwhip Effect... 218, 48.5 Again, Why Leveling? ...c.0 219 48.5.1 Some Other Measures Against Fluctuations 219 48.5.2 Production Leveling... 220 49 An Introduction to Capacity Leveling, 221 49.1 How to Mess Up Your System ..... vou 221 49.1.1. Too Many Open Production Orders .. 221 49.1.2. Capacity Variations 222 49.2 How Capacity Leveling Works... 222 49.2.1. Use a Pull System... 222 49.2.2 Keep Capacity Constant and Adjusting the Product Mix to Produce Regularly in Small Lot Sizes. - soo 223, 49.2.3 Match Released Production Orders to Available Capacity 224 50 Theory of Every Part Every Interval (EPED Leveling & Heijunka....... soon 225 50.1 Different Names for (Often) the Same Thing 225 50.2. Theory of EPEI Leveling 225 50.2.1 The Good Basie Idea Distribute the Demand Evenly... soo 225 50.2.2 The Fixed Repeating Sequence 226 50.3 An Example... 226 50.3.1 Not-Leveled Initial State : sone 226 50.3.2. Fixed Repeating Sequence Leveling 227 50.4 Some Variations to the Method wc. entstnnsnns soos 227 50.4.1 Length of Repeating Sequence. 27 xIv 50.4.2 (Flawed) Mathematical Approach for Length of Repeating Sequence ........228 50.4.3 Length of Interval Leveled... nnn soe 228 50.4.4 Sequence Not Based on Time But on Quantity. 228 50.4.5 Heijunka Board, 228 50.5. Conelusion 229 51 The Folly of EPEI Leveling in Practice — Part 1 230 51.1 A Bit of Gripe 230 's Not Work 51.2 Reasons Why EPEI Leveling Mostly D 231 51.2.1 Inability to Closely Follow a Production Schedule. oe 231 51.2.2 Lack of a Structured System to Handle Changes . 2.232 51.2.3. Inability to Have a Good Prediction of Customer Demand 232 51.2.4 Lack of Additional Inventory to Cover Increased Replenishment Time ..... 233 52 The Folly of EPEI Leveling in Practice — Part 2 . 235 52.1. More Reasons Why EPEI Leveling Mostly Does Not Work... 235 52.1.1 Limited Power Over Supplier and Supplier Ability. 235 52.1.2 Does Management Want to Be Cheated? 236 52.2. How to Limit the Damage of EPEI Leveling. a ove 236 52.3. Test Your EPEI Ability 237 52.4 A Personal Statement....... 237 53 Image Credits, 239 54 Author..... 244 XV 1 Japanese Standard Pointing and Calling (Video) Christoph Roser, January 05, 2014 Original at https://www.allaboutlean.com/vsm-s customer/ in Figure I: Isee you! (Image Roser) During my last trip to Japan, I finally took videos capturing the Japanese Pointing-and- Calling standard, Pointing and calling is a safety standard that started with Japanese train operators but now is widely used in industry. The idea is that whenever you confirm something, you not only look at it, but also point at it and call out your observation. 1.1. The Technique [R, Tokyo) fm Shinkansen, Tokvo| GR, Fukuota Tokyu Corporation, Tokyo) ‘Aichi Loop Railway, Tovota City Nishi-Nippon Railroad, Ohmuta]

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