MEE1016

LEAN ENTERPRISES AND NEW MANUFACTURING TECHNOLOGY

Dr. JAYAKRISHNA KANDASAMY

Associate Professor
School of Mechanical Engineering
VIT University
jayakrishna.k@vit.ac.in
9894968596
Secondary Tools of LEAN MANUFACTURING
Secondary tools of Lean Manufacturing II:

• Gemba
• 5 Whys
• SMED
• Jidoka
• Standardized Work
• Heijunka - Load levelling
• Six Big Losses
• Hoshin Kanri
• Visual factory
• Zero quality control
GEMBA
GEMBA

GEMBA - "actual place”/ “shop floor” / “any place where value-creating work actually occurs”

Also spelled “Genba”/ Management By Walking Around (MBWA)

Genchi Genbutsu = Go and See

5 Whys?
5 Why?
Single Minute Exchange of Dies - SMED
PIT STOP
What is SMED?

• SMED was developed by Shigeo Shingo, a Japanese industrial engineer.

• SMED is a system for dramatically reducing the time it takes for completing equipment
changeover.
• It aims in many cases to reduce the time to less than 10 mins
Methods

• Internal Elements – When equipment is stopped

• External Elements – When equipment is running
• Main aim of SMED is to convert the internal elements into external elements.
Benefits of SMED

• We reduce waste, cost and improve profits

• We increase our capacity
• We also improve our quality
Jidoka
Build in quality

Traditional thinking
Rework

Process 1 Process 2 Process 3 Inspection Shipment

Scrap

• Only inspect finished goods

• No feedback to operations and generating the defects
• Extra re-work operation/cost
Build in quality

Lean thinking Rework

Process 1 Process 2 Process 3 Inspection Shipment

Each process ships only quality product Scrap

• Do not pass defects fix in process

• Immediate quality feedback
• Defects are found at the source
How we build in quality?

1. Make abnormalities visible

2. Call for help quickly
✓ Prevent the defect
3. Immediate response ✓ Don’t pass the defect
4. Implement counter measure
Tools to build in quality

1. ANDON – Manual/Digital
2. POKEYOKE Man Machine
3. Separate Man from Machine Unclamp Clamp
Wait for the
1. Traditional Thinking – One man One machine machine

Man Machine

Unclamp Clamp
2. Lean Thinking – One man Several machine Wait for the
machine
Machine A

Machine Man
Machine
Unclamp Clamp
Wait for the
machine
Machine B
Why Jidoka matters?

1. Build in Quality
2. More effective use of human resources
3. Highest quality
4. Lowest cost
5. Shorter lead time
Standardized Work
Standardized Work?

The most efficient work flow

• Safety
• Quality
• Lead Time
Combine best practices !
• Quantity
• Cost
• Human Movement
Components of Standardized Work

✓ Takt Time
✓ Work Sequence
✓ Element Times
✓ In-process Stock
TAKT Time

• Controls pace of production and regulates amount of work time per process
• Used to set pace of production = pace of sales
• Tool to create shortest lead time, lowest cost, and highest quality through safe, efficient work methods.

𝑻𝒐𝒕𝒂𝒍 𝑫𝒂𝒊𝒍𝒚 𝑷𝒓𝒐𝒅𝒖𝒄𝒕𝒊𝒐𝒏 𝑻𝒊𝒎𝒆

𝑻𝑨𝑲𝑻 𝑻𝒊𝒎𝒆 𝑻𝑻 =
𝑻𝒐𝒕𝒂𝒍 𝑫𝒂𝒊𝒍𝒚 𝑷𝒓𝒐𝒅𝒖𝒄𝒕𝒊𝒐𝒏 𝑹𝒆𝒒𝒖𝒊𝒓𝒆𝒎𝒆𝒏𝒕
TAKT Time - Example

A company works 16 days a month at 10 hrs a day, with 30 mins break/day. The number of units to be
produced is 1824 units/month. Compute the TAKT time.

𝟏𝟖𝟐𝟒 𝒖𝒏𝒊𝒕𝒔 𝒑𝒆𝒓 𝒎𝒐𝒏𝒕𝒉

𝑫𝒂𝒊𝒍𝒚 𝑷𝒓𝒐𝒅𝒖𝒄𝒕𝒊𝒐𝒏 𝑹𝒆𝒒𝒖𝒊𝒓𝒆𝒎𝒆𝒏𝒕 = = 𝟏𝟏𝟒 𝒖𝒏𝒊𝒕𝒔 𝒑𝒆𝒓 𝒘𝒐𝒓𝒌 𝒅𝒂𝒚
𝟏𝟔 𝒘𝒐𝒓𝒌 𝒅𝒂𝒚𝒔 𝒑𝒆𝒓 𝒎𝒐𝒏𝒕𝒉

𝑫𝒂𝒊𝒍𝒚 𝑷𝒓𝒐𝒅𝒖𝒄𝒕𝒊𝒐𝒏 𝑻𝒊𝒎𝒆 = 𝟏 𝒔𝒉𝒊𝒇𝒕 𝒑𝒆𝒓 𝒅𝒂𝒚 𝟏𝟎 𝒉𝒓𝒔 − 𝟑𝟎 𝒎𝒊𝒏 𝒃𝒓𝒆𝒂𝒌

= 𝟓𝟕𝟎 𝒎𝒊𝒏𝒖𝒕𝒆𝒔 𝒑𝒆𝒓 𝒘𝒐𝒓𝒌 𝒅𝒂𝒚

𝟓𝟕𝟎 𝒎𝒊𝒏𝒖𝒕𝒆𝒔 𝒑𝒆𝒓 𝒅𝒂𝒚

𝑻𝒂𝒌𝒕 𝑻𝒊𝒎𝒆 = = 𝟓 𝒎𝒊𝒏𝒖𝒕𝒆𝒔 𝒑𝒆𝒓 𝒖𝒏𝒊𝒕
𝟏𝟏𝟒 𝒖𝒏𝒊𝒕𝒔 𝒑𝒆𝒓 𝒅𝒂𝒚
TAKT Time
• Cycle time is how
long we are taking to
• Determines allocation of work among processes produce something

• Takt time is how

TAKT TIME = 30
long we should be
CYCLE TIME = 30 taking to produce
something
Working Working
Hours Hours
• Takt time should be
B equal to Cycle time
C E A B C D E
A
D

Team Members Team Members

Unbalanced Work Balanced Work

TAKT Time

• Determines allocation of work among processes

TT = 30

CT= 30

Working Working
Hours Hours Traditional thinking
B
C E A B C D E
A
D

Team Members Team Members

Unbalanced Work Balanced Work

TAKT Time

• Determines allocation of work among processes

TT = 30 TT = 30

CT= 30

Working Working
Hours Hours Lean thinking
A B C D
A B C D E 11 Kaizen to Eliminate
PROCESS
REDUCTION
E

Team Members Team Members

Balanced Work Lean Thinking

Ways to Document
Key information is communicated with three typical worksheets
1. Production Capacity Sheet [Production Potential]
2. Standardized Work Table [Work Sequence]
3. Standardized Work Chart [Motion Sequence]

When do we change STW?

• Takt time or production requirement change
• A process improvement has been performed
Number of Operators Required

𝑇𝑜𝑡𝑎𝑙 𝐶𝑦𝑐𝑙𝑒 𝑇𝑖𝑚𝑒

= 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑂𝑝𝑒𝑟𝑎𝑡𝑜𝑟𝑠 𝑅𝑒𝑞𝑢𝑖𝑟𝑒𝑑
𝑇𝐴𝐾𝑇 𝑇𝑖𝑚𝑒

• STW is created, changes and managed by the team members that use it.
• Supports Kaizen
❑ Where can we improve?
❑ Can STW be completed smoothly?
Six Big Losses
Six Big Losses

Six categories of productivity loss that are almost universally experienced in manufacturing:
• Breakdowns
• Setup/Adjustments
• Small Stops
• Reduced Speed
• Start-up Rejects
• Production Rejects
Provides a framework for mitigating the most common causes of waste in manufacturing
Heijunka
Production levelling

Resource Requirement

Over
MAX Production
MAX
Customer
Order

HEIJUNKA
THINKING
MIN
Resource Requirement
MIN Regular
Hour
• Sequence Production
• Balance
• Volume
• Style
Level production by Volume

How do we accomplish this ?

TAKT TIME
𝟏𝟖𝟐𝟒 𝒖𝒏𝒊𝒕𝒔 𝒑𝒆𝒓 𝒎𝒐𝒏𝒕𝒉
𝑫𝒂𝒊𝒍𝒚 𝑷𝒓𝒐𝒅𝒖𝒄𝒕𝒊𝒐𝒏 𝑹𝒆𝒒𝒖𝒊𝒓𝒆𝒎𝒆𝒏𝒕 = = 𝟏𝟏𝟒 𝒖𝒏𝒊𝒕𝒔 𝒑𝒆𝒓 𝒘𝒐𝒓𝒌 𝒅𝒂𝒚
𝟏𝟔 𝒘𝒐𝒓𝒌 𝒅𝒂𝒚𝒔 𝒑𝒆𝒓 𝒎𝒐𝒏𝒕𝒉

𝑫𝒂𝒊𝒍𝒚 𝑷𝒓𝒐𝒅𝒖𝒄𝒕𝒊𝒐𝒏 𝑻𝒊𝒎𝒆 = 𝟏 𝒔𝒉𝒊𝒇𝒕 𝒑𝒆𝒓 𝒅𝒂𝒚 𝟏𝟎 𝒉𝒓𝒔 − 𝟑𝟎 𝒎𝒊𝒏 𝒃𝒓𝒆𝒂𝒌

= 𝟓𝟕𝟎 𝒎𝒊𝒏𝒖𝒕𝒆𝒔 𝒑𝒆𝒓 𝒘𝒐𝒓𝒌 𝒅𝒂𝒚

𝟓𝟕𝟎 𝒎𝒊𝒏𝒖𝒕𝒆𝒔 𝒑𝒆𝒓 𝒅𝒂𝒚

𝑻𝒂𝒌𝒕 𝑻𝒊𝒎𝒆 = = 𝟓 𝒎𝒊𝒏𝒖𝒕𝒆𝒔 𝒑𝒆𝒓 𝒖𝒏𝒊𝒕
𝟏𝟏𝟒 𝒖𝒏𝒊𝒕𝒔 𝒑𝒆𝒓 𝒅𝒂𝒚
Level Volume – LOT production

• What happens when customer needs more than one variant?

• What happens if we build in complete batches?

114 Units/570 56 Units 29 Units 29 Units

Minutes
Variant Qty 280 Minutes 145 Minutes 145 Minutes
A 56 A A A………A A A
B 29 B B B………B B B
C 29 C C C………C C C
Effects of Batch Building

Steady withdrawal
at regular intervals
A A

B
Shipping
C

Final
C
Assembling

Supplier • What does Takt Time mean ?

Processes
• What does this mean for Supplier processes (A,B,C)?
• How can we achieve this through batch production?
Ways to mange Batch Production Example 1
Machine
A[56]
CT = 10 Mins 5 Min
A A Operator
A

Material
B[29] Withdrawal
CT = 20 Mins 5 Min
B B B B B
Shipping Schedule

A A A A A A A A A

C[29] B B B B B

CT = 40 Mins 5 Min C C C C C C
C C C C C C C C

TT = 5 Min
Shipping
5 Min
Where is the waste ? Example 1
Machine
A[56]
CT = 10 Mins 5 Min
A A Operator
A

Material
B[29] Withdrawal
CT = 20 Mins 5 Min
B B B B B
Shipping Schedule

A A A A A A A A A

C[29] B B B B B

CT = 40 Mins 5 Min C C C C C C
C C C C C C C C

TT = 5 Min
Shipping
5 Min
Ways to mange Batch Production Example 2
Machine
A[56]
CT = 10 Mins 5 Min
A A Operator
I

Withdrawal
B[29] 5 Min
CT = 20 Mins
B
B
I
Shipping Schedule
A A A A A A A A A

C[29] B B B B B
C
CT = 40 Mins 5 Min C C C C C
C C I

TT = 5 Min
Shipping
5 Min
Where is the Waste?
Machine
A[56]
CT = 10 Mins 5 Min
I A Operator

Withdrawal
B[29]
5 Min B
CT = 20 Mins TT = 5 Min
I
Shipping Schedule
A A A A A

B B B B
C[29] C
5 Min
CT = 40 Mins C C C C C
I

Shipping
5 Min
Level Volume and Style

• Alternate to traditional batch building

Takt Time = 5 Minutes

Style Qty
5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 ……570 minutes

A 56 A A A A A A A A

B 29 B B B B

C 29 C C C C

A every 10 min
New Production B every 20 min
Requirements
C every 20 min

New Production Sequence ABACABACABACABACABAC………

Sequenced Production
Example 3
Machine
A[56]
CT = 10 Mins 10 Min
Operator

Withdrawal
B[29]
CT = 20 Mins TT = 5 Min
Shipping Schedule
A A A A A A A

B B B B
C[29]
CT = 40 Mins C C C

Shipping
5 Min
Sequenced Production
Example 3
Machine
A[56]
CT = 10 Mins
Operator

Withdrawal
B[29]
20 Min
CT = 20 Mins TT = 5 Min
Shipping Schedule
A A A A A A A

B B B B
C[29]
CT = 40 Mins C C C

Shipping
5 Min
Sequenced Production
Example 3
Machine
A[56]
CT = 10 Mins
Operator

Withdrawal
B[29]
CT = 20 Mins TT = 5 Min
Shipping Schedule
A A A A A A A

B B B B
C[29]
20 Min
CT = 40 Mins C C C

Shipping
5 Min
Did we make an improvement?
Example 3
Machine
A[56]
CT = 10 Mins
Operator

Withdrawal
B[29]
CT = 20 Mins TT = 5 Min
Shipping Schedule
A A A A A A A

B B B B
C[29]
20 Min
CT = 40 Mins C C C

Shipping
Minimum Manpower, Minimum Inventory 5 Min
Manpower Efficiency – Before Heijunka
Unbalance causes
waiting

TAKT TIME

More operators for

CYCLE TIME Max production
C C C C
B B B B
A A A A

TIME
Manpower Efficiency – After Heijunka

TAKT TIME

Staffing to a
weighted average
CYCLE TIME
requires fewer
C C C C people
B B B B
A A A A

TIME
Heijunka Conveyor Example
Stop Point Stop Point Stop Point

B
C A

PITCH PITCH

A TAKT TIME
A A

CYCLE TIME C
B
A

WORK PROCESS

TIME
Heijunka Conveyor Example
Stop Point Stop Point Stop Point

B
C A

PITCH PITCH

A TAKT TIME
A A

CYCLE TIME C
B
A

WORK PROCESS

TIME
Heijunka Conveyor Example
Stop Point Stop Point Stop Point

B
C A

PITCH PITCH

A TAKT TIME
A A

C
CYCLE TIME C
B
A

WORK PROCESS

TIME
Heijunka Conveyor Example
Stop Point Stop Point Stop Point

B
C A

PITCH PITCH

A TAKT TIME
A A

C
CYCLE TIME C
B
B A

WORK PROCESS

TIME
Heijunka Conveyor Example
Stop Point Stop Point Stop Point

B C
A

PITCH PITCH

A TAKT TIME
A A

C
CYCLE TIME C
B
B A

WORK PROCESS

TIME
Heijunka

• Sequenced Level production by volume and style

• Makes production waste visible
❑ Manpower
❑ Inventory

Benefits
• More efficient distribution of labour
• Reduced machine requirements
• Reduced inventory requirements
Hoshin Kanri
Hoshin Planning
Strategic planning process with built in review improvement and learning activities.

Hoshin Planning is nor merely a planning tool it’s a comprehensive management system

Hoshin is a word derived from Japanese term which originated in late 1960’s.

The original Japanese term consists of comprises four syllables.

• Ho Shin means “Shining metal – pointing direction”
• Kan Ri means “management” or “policy”

Translate: Hoshin planning provides the compass to follow company vision.

What is Hoshin Planning?

Foundational : Plan-DO-Check-Act (PDCA) – Shewhart/Deming

Sometimes referred to as Policy Deployment

Hoshin Planning is a means for keeping the actions and innovations of employees aligned with
organizational vision.

The ideas and inspirations that guide and improve organization come from employee. Hoshin
planning leverages employees creative talent.
Why Hoshin Planning?

To include the entire organization into the process of aligning the

work with the company vision.

To benefit from the knowledge and agreement of the whole

organization.

Hoshin planning aligns strategies and drives execution to achieve

break through RESULTS!

Why use Hoshin Planning?
What is Hoshin Planning?

Hoshin is an active relationship between two parts

Hoshin Management - Strategies and Objective – HOSHIN

Daily Management of Key Performance Indicators (KPI’s) - KAIZEN

7 Steps in Hoshin Planning
1. Establish Organizational Vision
H

CATCHBALL
O
2. Develop Breakthrough Objectives
S
H
3. Develop Annual Objectives
I
N
4. Deploy Annual Objectives

K 5. Implement Annual Objectives

PDCA
A Lean and Other Tools

I
Z 6. Monthly Review
E
N
7. Annual Review Self Diagnosis
7 Steps in Hoshin Planning
1. The leadership of the company develops a strong vision answering the question “Why
does the company exist?”.

2. The leadership team defines key objectives or also a mission. If achieved, they will create
a competitive edge for the company. These are major objectives usually requiring the
effort of every single person in the company, not monthly or quarterly objectives.

3. The leadership team, along with the senior management, breaks down the objectives into
annual goals.
7 Steps in Hoshin Planning
4. Once the annual goals are crafted, they need to be “deployed” across all levels of the
organization. This is the process of “goal setting” which starts at the top and is propagated
to each employee.

5. With the next step, the real execution starts. This step goes hand in hand with the next two.

6. The monthly reviews make sure that the plan is being executed according to the plan.

7. At the end of the year, there is an annual review, which validates the end result that has
been achieved.
Zero Quality Control
Zero Quality !?

“Zero defects” in quality management doesn’t literally mean perfection, but rather refers to a state where

waste is eliminated and defects are reduced. It means ensuring the highest quality standards in projects.
What is Zero Defects?

• Attaining zero defects is technically not possible in any sizable or complex manufacturing project.

• According to the Six Sigma standard, the definition of zero defects is defined as 3.4 defects per million

opportunities (DPMO), allowing for a 1.5-sigma process shift.

• The zero defects is a quest for perfection in order to improve quality in the development or manufacturing

process.

• True perfection might not be achievable but at least the quest will push quality and improvements to a

point that is acceptable under even the most stringent metrics.

Zero Defects – The Theory and Implementation

• Zero defects theory ensures that there is no waste existing in a project.

• Waste refers to all unproductive processes, tools, employees and so on.

• Anything that is unproductive and does not add value to a project should be eliminated, called the process

of elimination of waste.

• Eliminating waste creates a process of improvement and correspondingly lowers costs.

• Common with the zero defects theory is the concept of “doing it right the first time” to avoid costly and

time-consuming fixes later in the project management process.

Elements of Zero Defects

Zero defects theory is based on four elements for implementation in real projects.

1. Quality is a state of assurance to requirements. Therefore, zero defects in a project means fulfilling

requirements at that point in time.

2. Right the first time. Quality should be integrated into the process from the beginning, rather than solving

problems at a later stage.

3. Quality is measured in financial terms. One needs to judge waste, production and revenue in terms of

budgetary impact.

4. Performance should be judged by the accepted standards, as close to perfection as possible.

Zero Defects – Pros and Cons

The clear advantage of achieving a zero defect level is waste and cost reduction when building products to

customer specifications. Zero defects means higher customer satisfaction and improved customer

loyalty, which invariably leads to better sales and profits.

Nonetheless, a zero defects goal could lead to a scenario where a team is striving for a perfect process that

cannot realistically be met. The time and resources dedicated to reaching zero defects may negatively impact

performance and put a strain on employee morale and satisfaction. There can also be negative implications

when you consider the full supply chain with other manufacturers that might have a different definition of

zero defects.
Visual Factory
What is Visual Factory?

• Visual factory is a term to describe how data and information is conveyed in a lean manufacturing

environment.

• In a lean manufacturing environment time and resources dedicated to conveying information, although

necessary, are a form of waste.

• By using visual methods to convey information such as signs, charts and ANDONs, information is easily

accessible to those who need it.

• The current status of all processes is immediately apparent

What is Visual Factory?

• Visual Factory is implemented in two stages – determining what information needs to be communicated

and how this is accomplished.

• Determining what information needs to be conveyed is the starting point of visual factory.

• The current state must be compared to the future state goals in order to determine what information is to

be delivered.

• The information required to get from one state to another is what must be conveyed.

• How the information is conveyed depends on the desired end result.

• The location and method of information delivery also depends on the relevancy of the information.
Data included in Visual Factory

• Process metrics are typically displayed at the machine or cell.

• This information is most effective when it is delivered in real time.

• Immediate feedback facilitates immediate improvement.

• When light is used to indicate information it is referred to as an Andon.

• Andons are often the centerpiece of the visual factory because of the tremendous real-time process

information that they convey.

Data included in Visual Factory

• Work instructions are typically posted in the production areas.

• Highly visual instructions with photographs and graphics will generally minimize production errors.

• The more information can be conveyed visually the more it will improve communication.
Data included in Visual Factory

• General plant information is typically posted in a central location where everyone has access to it.

• Lean manufacturing relies on bi-directional information exchange throughout the organization.

• In a visual factory environment information is delivered to inform, alert and motivate.

Goals of Visual Factory

The main goal of the Visual Factory is to allow you to easily visualize all the activities inside the organization.

These information's usually include:

• Safety information - include the visual identification of hazards and safe areas

• Process measures - include run charts, achievement to target KPIs and progress, reject rates, among

others

• Work instructions - instead of having a written document with the work instructions, these are displayed

with the help of samples, flow charts, photographs, among others.

Benefits of Visual Factory

• Efficient timely communication allows organizations to function at their full potential.

• Reduce Errors

• Increase Employee Moral

• Increase Machine Uptime

• Increase Machine Run Rates

• Decrease WIP (Work in Progress)

• Visual Factory Allows Companies to communicate and provide world class performance.