– Waste Elimination

– Improving Quality, Control, Delivery (QCD)

– By value stream (adding value to products by streamlining
procedure process)

Value VS Waste
Value – Measurement of the worth of product, or service, by customer
based on its usefulness in satisfying a customer need.
– An activity, process or operation that changes the product from
one form to another in order to get it closer to the customers’
specifications.
– It is something that the customer is willing to pay for.
How to add value?
 Acquiring certification
 Undergo Membership in International Organizations

Waste – represents unproductive resources (any inputs.)

– Any activity that adds costs or time but does not add value.
– Consuming more resources (time, money, space, etc.) than are
necessary to produce the goods, or services, that the customer
wants.
Eight Types of Wastes (DOWNTIME)
1. DEFECTS – Scrap materials, reworking or re-inspection of materials
– Responding to customer complains
Caused by:
 Inadequate training  Transportation (Material
 Skill shortage handling)
 Incapable suppliers  Process design/
 Operator error equipment
 Excessive stock  Lack of standard work
2. Over-production – producing more than what the consumer needs.
3. Waiting – Operator waiting for machines to run or cycle
– Waiting for parts, instructions, approval, information,
maintenance, decision…
Results from:
 Poor man/ machine coordination
 Batch completion, not single piece
 Poor layout
 Machine breakdown
4. Over-processing / Non-standard – Adding excess value when the
customer does not require it.
– “Push system”
 5. Transportation – double or triple handling, moving in and out of
storage areas and warehouses.
– Material can get damaged if it’s moved too much.
– It adds no value and is often used to get the extra inventory
out of the way.
Caused by:
 Poor plant or office lay-out
 Poor understanding of process flow
 Extra Inventory
 Excessive distance between operations
6. Intellect / People’s Skills – Not using employees full intellectual
contribution.
– People are told what to do, and asked not to think.
– Employees are not involved in finding solutions,
opportunities to improve our process are missed.
Caused by:
 Management does not involve employees in problem solving
 Narrowly defined jobs and expectations
 Old school management, worker relationships
 Lack of information or best practice sharing across the organization
 Mismatched work functions with skill sets
7. Motion – Extra physical or mental activities that does not add value.
Caused by:
 Poor workstation layout  Workstation
 Isolated operations  Congestion
 Shared tools  Poor method design
8. Excess Inventory – Building and storing extra services/products that
customer does not order.
Caused by:
 Overproduction  Failure to observe First In
 Poor equipment lay-out First Out
 Mismatched production  Large batch sized
speeds  Lack of balance
workflow
Operations Analysis – Study of an operation or group of related operations
for the purpose of analyzing their efficiency and effectiveness so that
improvements can be developed.
– Objectives in operations analysis:
 Increase productivity
 Reduce time and cost
 Improve safety and quality
 Same basic objectives as methods engineering
Methods Engineering
Can be divided into two areas:
1. Methods analysis
 Concerned with the study of an existing method or process
 Objectives:
– Eliminate unnecessary and non-value-adding work elements
– Combine elements and operations
– Rearrange elements into more logical sequence
– Simplify remaining elements and operations
2. Methods design
 Concerned with either of the following situations:
a) Design of a new method or process
– Required for new product or service and there is no existing
precedent
– Method must be designed from scratch, using best existing practice
for similar operations
b) Redesign of an existing method or process based on a preceding
methods analysis.

1. Define the problem and objectives

2. Analyze the problem
3. Formulate alternatives
4. Evaluate alternatives and select the best solution
5. Implement the best method
6. Audit the study
– A systematic approach is more likely to yield operational
improvements than an undisciplined approach.

Techniques of Methods Engineering

 Data gathering and statistical tools
 Charting and diagramming techniques
 Motion study and work design
 Facility layout planning
 Work measurement techniques
 New approaches

Use of Operation Analysis to Methods Analysts:

– To study all productive and non-productive elements of an
operation, to increase productivity per unit of time, and to reduce
unit costs while maintaining or improving quality.
5S – It is the foundation of the Lean and Toyota production system.
1. sort (seiri),
2. set in order (seiton),
3. shine (seiso),
4. Standardize (seiketsu) and
5. Sustain (shitsuke).
Note:
 7s: Extension of 5’s with 2 additional which is Safety and Spirit.

Toyota Motor Corporation

 Success due to two techniques, JIT and TPS
 Continual problem solving is central to JIT
 Central to TPS is a continuing effort to produce products under ideal
conditions.
 Subassemblies are transferred to the assembly line on a JIT basis.
 High quality and low assembly time per vehicle.

Note:
 JIT: Philosophy of continuous and forced problem solving via a focus
on throughput and reduced inventory.
 TPS: Emphasizes continuous improvement, respect for people, and
standard work practices.
 Lean operation: Production supplies the customer with their exact
wants when the customer wants it without waste.
 Cycle time: The amount of time a team spends working on
producing an item until the product is ready for shipment.
 Throughput time: The total amount of time that it takes to run a
particular process in its entirety from start to finish.

Just-In-Time
– Powerful strategy for improving operations
– Materials arrive where they are needed when they are needed
– Identifying problems and driving out waste reduces costs and
variability and improves throughput
– Requires a meaningful buyer-supplier relationship.

Toyota Production System

– Is an integrated socio-technical system, developed by Toyota that
comprises its management philosophy and practices.

2 Main Pillars of TPS

1. JIT (JUST IN TIME)
2. JIDOKA (automation with human touch)
The Base of TPS
1. Heijunka (levelling) – it is a lean method for reducing the
unevenness in a production process and minimizing the chance of
overburden.
2. Kaizen (continuous improvement)

Pillar- JIT (JUST IN TIME)

 Produced according to what needed, when needed and how
much needed.
 Strategy to improve return on investment by reducing inventory and
associates cost.
 The process is driven by Kanban concept.

Kanban
 Is a scheduling system for lean manufacturing and just-in-time
manufacturing (JIT).
 Means “sign” or “instruction card”
Pillar- Jidoka
 A term used in Lean manufacturing meaning "automation with a
human touch.“
 Highlights the causes of problems because work stops immediately
when a problem first occurs.
Toyota Production System which applies the following four principles:
 Detect the abnormality.
 Stop.
 Fix or correct the immediate condition.
 Investigate the root cause and install a countermeasure
Base- Heijunka
 is a Japanese word that means “leveling.” When implemented
correctly.
 Helps organizations meet demand while reducing wastes in
production and interpersonal processes.
Base- KAIZEN
 Also known as continuous improvement is a longterm approach to
work that systematically seeks to Achieve small, incremental
changes in processes in order to improve efficiency and quality.
Material Handling
 Material handling includes motion, time, place, quantity, and space
constraints.
 A study conducted by the Material Handling Institute revealed that
between 30 and 85 percent of the cost of bringing a product to
market is associated with material handling.
 1. PARETO ANALYSIS
– Developed by Vilfredo Pareto
– Popularized by Joseph Juran to help us separate the vital few
(should be addressed first— 20%) from the trivial many (can be
addressed later on— 80%).
– Method of identifying the vital few causes (typically 20%) that can
answer most of the (typically 80%) problems. This is also known as
the vital few and the
trivial many
– Method of
organizing errors,
problems, or defects to
help focus problem-
solving efforts.
– Prioritize the most
important drivers of
success or failure and the root
cause of issues.

Note: Using the data given can provide a hypothesis about the cause or
common cause by conducting a thorough root-cause analysis.

– Also known as a Cause and Effect Diagram or Ishikawa Diagram.

– A visual tool used to identify, explore and graphically display all the
possible causes related to a problem to discover root causes.
– Categorize all of the different factors that led to the issue.
– Identifying the problem is crucial.
By doing this you’re more likely:
 To find the root cause of the problem
 To resolve the problem first time.

– One of the pioneers of Japan’s quality revolution in the 1940s.

– Played major role in growth of QC circles.
– Best known for formalizing the use of Cause-and-Effect Diagram.

– After making the fishbone diagram,

the team should analyze and zoom in those
“most likely causes”.
– The most likely causes should be
prioritized for further investigation.
Note: Look out for causes that appear in more than one category. They may
be the “most likely causes”.

– Process of decoding the source or base cause of an identified issue

or event for developing a corrective mechanism or a suitable
solution.
– Lowest cause in a chain of cause and effect at which we have
some capability to break the cause.
– It’s within our capability to unilaterally control, or to influence,
changes to the cause.

Why-Why Analysis/The 5 WHY’s

 Developed by Sakichi Toyoda, one of the fathers of the Japanese
industrial revolution in 1930s
 Sakichi Toyoda is an industrialist, inventor, and founder Of Toyota
 Industries interrogative technique used to explore the cause and
effect relationships underlying a particular problem
 The primary goal is to determine the root cause of a defect or
problem by repeating the question “why”, each answer forms the
basis of the next question
 Five is good rule of thumb

HOW TO USE THE 5 WHY(S)

1. Assemble a Team
2. Define the Problem
3. Ask the first “WHY?”
4. Ask “Why?” Four More Times
5. Know When to Stop
6. Monitor Your Measures
7. Monitor Your Measures

A technique to generate a large number of ideas or possibilities in a

relatively short time frame.
Why Use Brainstorming?
• A tool for the Team (not individual)
• A method to generate a lot of ideas
• Two persons’ knowledge and ideas are always more than one.
• Input for other C&E tools
• Active participation
 – Most widely used project planning tool.
– Henry Gantt gives the rule use for creating a Gantt chart.
– Gantt chart plots line along the horizontal axis and on the vertical
listed all the tasks that need to be done to accomplish the project.
Notes:
– Horizontal Axis: represents time units.
– Vertical Axis: represents activities or jobs.
– Bar: represents activity.
– Horizontal bars: used to denote time.
– The commonly used symbol on the Gantt chart is a simple
geometrical shape like a triangle or diamond representing a
milestone.
– identifying the key points and determining how they
relate to one another to create a sequence of events on a project.

– Increasing efficiency one in which several operators, each

performing consecutive operations, work as a unit.
– In such a situation, the rate of production is dependent on the
slowest operator.
– In order to balance a
line effectively, combining a
number of disciplines
 Time study
 Work sampling
 Work Instruction
Creation
 Purchasing, Shipping,
Leadership Operations
(Overhead)

 Objective is to minimize the imbalance between machines or

personnel while meeting required
output.
 Starts with the precedence
relationships
1. Determine cycle time
2. Calculate theoretical
minimum number of workstations
3. Balance the line by assigning specific tasks to workstations
1. Longest task time - Choose the available task with the longest task time.
2. Most following tasks - Choose the available task with the largest number
of following tasks.
3. Ranked positional weight - Choose the available task for which the sum of
following task times is the longest.
4. Shortest task time - Choose the available task with the shortest task time
5. Least number of following tasks - Choose the available task with the least
number of following tasks.

I. Project – A series of related jobs usually directed toward some major

output and requiring a significant period of time to perform.
II. Project Management - The management activities of planning,
directing, and controlling resources (people, equipment, material)
to meet the technical, cost, and time constraints of a project.

 A project is made up of a sequence of activities that form a

network representing a project.
 The path taking longest time through this network of activities is
called the “critical path.”
 The critical path provides a wide range of scheduling information
useful in managing a project.
 Critical Path Method (CPM) helps to identify the critical path(s) in
the project networks.

A project must have:

 well-defined jobs or tasks whose completion marks the end of the
project;
 independent jobs or tasks;
 and tasks that follow a given sequence.

 CPM with a Single Time Estimate

– Used when activity times are known with certainty.
– Used to determine timing estimates for the project, each activity in
the project, and slack time for activities.
 CPM with Three Activity Time Estimates
– Used when activity times are uncertain.
– Used to obtain the same information as the Single Time Estimate
model and probability information.
 Time-Cost Models
– Used when cost trade-off information is a major consideration in
planning.
– Used to determine the least cost in reducing total project time.
1. Activity Identification.
2. Activity Sequencing and Network Construction.
3. Determine the critical path.
– From the critical path all of the project and activity timing information can
be obtained.
Time-Cost Models
• Basic Assumption: Relationship between activity completion time and
project cost.
• Time Cost Models: Determine the optimum point in time-cost tradeoffs.
– Activity direct costs.
– Project indirect costs.
– Activity completion times.
CPM
Assumptions/Limitations
• Project activities can be identified as entities. (There is a clear beginning
and ending point for each activity.)
• Project activity sequence relationships can be specified and networked.
• Project control should focus on the critical path.
• The activity times follow the beta distribution, with the variance of the
project assumed to equal the sum of the variances along the critical path.
Project control should focus on the critical path.
WORKER AND MACHINE PROCESS CHARTS
– Used to study, analyze, and improve one workstation at a time.
– The chart shows the exact time relationship between the working
cycle of the person and the operating cycle of the machine.
– These facts can lead to a fuller utilization of both worker and
machine time, and a better balance of the work cycle.
GANG PROCESS CHARTS
– Shows the exact relationship between the idle and operating
cycles of the machine and the idle and operating times per cycle
of the workers who service that machine.
– This chart reveals the possibilities for improvement by reducing
both idle operator time and idle machine time.
QUANTITATIVE TOOLS, WORKER AND MACHINE RELATIONSHIPS
1. Synchronous servicing – assigning more than one machine to an
operator seldom results in the ideal case where both the worker
and the machine are occupied during the whole cycle.

Where:
n = number of machines the operator is assigned
 l = total operator loading and unloading (servicing) time per
machine
m = total machine running time (automatic power feed)
2. Random servicing – situations are those cases in which it is not
known when a facility needs to be serviced or how long servicing
takes.
( )
( )

Where:
K1 = hourly rate of the operator
K2= hourly rate of the machine
n = number of machines assigned
R = rate of production, pieces from n machines per hour