MANUFACTURING

SYSTEM
CHAPTER 5-2
LEAN SYSTEMS CONTINUOUS IMPROVEMENT
APPROACH
• A CONTINUOUS IMPROVEMENT STRATEGY IN
ANY POLICY OR PROCESS WITHIN A
WORKPLACE THAT HELPS KEEP THE FOCUS
ON IMPROVING THE WAY THINGS ARE DONE
ON A REGULAR BASIS.
• FACILITIES THAT FOCUS ON IMPROVING
CONTINUOUSLY BECOME MORE
COMPETITIVE OVER TIME AND CAN
MAINTAIN THEIR ADVANTAGES IN THEIR
INDUSTRY, BUT ONLY IF THE IMPROVEMENT
EFFORTS ARE DONE CORRECTLY.
 LEAN SYSTEMS CONTINUOUS IMPROVEMENT
APPROACH
• CONTINUOUS IMPROVEMENT PROCESS:-
• FOCUS ON GROWTH
• THE COMPANY SHOULD HAVE AN ONGOING FOCUS ON
INCREMENTALLY IMPROVING THEIR PROCESSES,
SERVICES OR PRODUCTS. MEANING, PERFECTING THE
WAY YOU DO THINGS ON-THE-GO INSTEAD OF
CARRYING OUT ONE-OFF CHANGE INITIATIVES
• CREATING A CULTURE OF IMPROVEMENT
• MORE OFTEN THAN NOT, IT’S THE EMPLOYEE ON THE
SHOP FLOOR WHO’S AN EXPERT ON COMPANY
PROCESSES, NOT THE MANAGEMENT. CONTINUOUS
IMPROVEMENT SHOULD BE THE RESPONSIBILITY OF
EVERYONE IN THE COMPANY (NOT JUST FOR THE
PROCESS IMPROVEMENT TEAM).
LEAN SYSTEMS CONTINUOUS IMPROVEMENT
APPROACH

• POSITIVE IMPACT:-
• INCREASED PRODUCTIVITY
• IMPROVED QUALITY
• LOWERED COSTS
• DECREASED DELIVERY TIMES
• IMPROVED EMPLOYEE SATISFACTION/MORALE
• REDUCED EMPLOYEE TURNOVER RATE
LEAN SYSTEMS CONTINUOUS IMPROVEMENT
APPROACH

• KAIZEN
• KANBAN
• VALUE STREAM MAPPING (VSM)
• JUST IN TIME (JIT)
KAIZEN
• KAIZEN IS AN APPROACH TO CREATING
CONTINUOUS IMPROVEMENT BASED ON THE
IDEA THAT SMALL, ONGOING POSITIVE
CHANGES CAN REAP MAJOR
IMPROVEMENTS.
• DEVELOPED IN THE MANUFACTURING
SECTOR TO
• LOWER DEFECTS
• ELIMINATE WASTE
• BOOST PRODUCTIVITY
• ENCOURAGE WORKER PURPOSE AND
ACCOUNTABILITY
KAIZEN
KAIZEN
• GET EMPLOYEES INVOLVED. SEEK THE INVOLVEMENT OF EMPLOYEES, INCLUDING
GATHERING THEIR HELP IN IDENTIFYING ISSUES AND PROBLEMS. DOING SO CREATES BUY-
IN FOR CHANGE. OFTEN, THIS IS ORGANIZED AS SPECIFIC GROUPS OF INDIVIDUALS
CHARGED WITH GATHERING AND RELAYING INFORMATION FROM A WIDER GROUP OF
EMPLOYEES.
• FIND PROBLEMS. USING WIDESPREAD FEEDBACK FROM ALL EMPLOYEES, GATHER A LIST
OF PROBLEMS AND POTENTIAL OPPORTUNITIES. CREATE A SHORTLIST IF THERE ARE MANY
ISSUES.
• CREATE A SOLUTION. ENCOURAGE EMPLOYEES TO OFFER CREATIVE SOLUTIONS, WITH ALL
MANNER OF IDEAS ENCOURAGED. PICK A WINNING SOLUTION OR SOLUTIONS FROM THE
IDEAS PRESENTED.
• TEST THE SOLUTION. IMPLEMENT THE WINNING SOLUTION CHOSEN ABOVE, WITH
EVERYONE PARTICIPATING IN THE ROLLOUT. CREATE PILOT PROGRAMS OR TAKE OTHER
SMALL STEPS TO TEST OUT THE SOLUTION.
• ANALYZE THE RESULTS. AT VARIOUS INTERVALS, CHECK PROGRESS, WITH SPECIFIC PLANS
FOR WHO WILL BE THE POINT OF CONTACT AND HOW BEST TO KEEP GROUND-LEVEL
WORKERS ENGAGED. DETERMINE HOW SUCCESSFUL THE CHANGE HAS BEEN.
• STANDARDIZE. IF RESULTS ARE POSITIVE, ADOPT THE SOLUTION THROUGHOUT THE
ORGANIZATION.
• REPEAT. THESE SEVEN STEPS SHOULD BE REPEATED ON AN ONGOING BASIS, WITH NEW
SOLUTIONS TESTED WHERE APPROPRIATE OR NEW LISTS OF PROBLEMS TACKLED.
KANBAN
• KANBAN AS A SYSTEM FOR IMPROVING THE
WORKFLOW EFFICIENCY OF THE
PRODUCTION PROCESS.
• THE METHOD RELIES ON SIX CORE PRACTICES
FOR MINIMIZING THE WASTES IN YOUR PROCESS:
• VISUALIZE YOUR WORKFLOW
• ELIMINATE INTERRUPTIONS
• MANAGE FLOW
• MAKE PROCESS POLICIES EXPLICIT
• CREATE FEEDBACK LOOPS
• IMPROVE COLLABORATIVELY
KANBAN BOARD
 THE SINGLE-CARD KANBAN
SYSTEM
• GENERAL OPERATING RULES:
1. EACH CONTAINER MUST HAVE A CARD.
2. THE ASSEMBLY LINE ALWAYS WITHDRAWS MATERIALS FROM
FABRICATION (PULL SYSTEM).
3. CONTAINERS OF PARTS MUST NEVER BE REMOVED FROM A STORAGE
AREA WITHOUT A KANBAN BEING POSTED ON THE RECEIVING POST.
4. THE CONTAINERS SHOULD ALWAYS CONTAIN THE SAME NUMBER OF
GOOD PARTS. THE USE OF NONSTANDARD CONTAINERS OR
IRREGULARLY FILLED CONTAINERS DISRUPTS THE PRODUCTION FLOW
OF THE ASSEMBLY LINE.
5. ONLY NONDEFECTIVE PARTS SHOULD BE PASSED ALONG.
6. TOTAL PRODUCTION SHOULD NOT EXCEED THE TOTAL AMOUNT
AUTHORIZED ON THE KANBANS IN THE SYSTEM.
THE SINGLE-CARD KANBAN SYSTEM

Kanban card for Storage

product 1 area
Kanban card for
Receiving post product 2

Empty containers

Assembly line 1

O2

Fabrication
cell
O1 O3
Assembly line 2

Full containers
O2
THE SINGLE-CARD KANBAN SYSTEM

Kanban card for Storage

product 1 area
Kanban card for
Receiving post product 2

Empty containers

Assembly line 1

O2

Fabrication
cell
O1 O3
Assembly line 2

Full containers
O2
THE SINGLE-CARD KANBAN SYSTEM

Kanban card for Storage

product 1 area
Kanban card for
Receiving post product 2

Empty containers

Assembly line 1

O2

Fabrication
cell
O1 O3
Assembly line 2

Full containers
O2
THE SINGLE-CARD KANBAN SYSTEM

Kanban card for Storage

product 1 area
Kanban card for
Receiving post product 2

Empty containers

Assembly line 1

O2

Fabrication
cell
O1 O3
Assembly line 2

Full containers
O2
THE SINGLE-CARD KANBAN SYSTEM

Kanban card for Storage

product 1 area
Kanban card for
Receiving post product 2

Empty containers

Assembly line 1

O2

Fabrication
cell
O1 O3
Assembly line 2

Full containers
O2
THE SINGLE-CARD KANBAN SYSTEM

Kanban card for Storage

product 1 area
Kanban card for
Receiving post product 2

Empty containers

Assembly line 1

O2

Fabrication
cell
O1 O3
Assembly line 2

Full containers
O2
THE SINGLE-CARD KANBAN SYSTEM

Kanban card for Storage

product 1 area
Kanban card for
Receiving post product 2

Empty containers

Assembly line 1

O2

Fabrication
cell
O1 O3
Assembly line 2

Full containers
O2
DETERMINING THE
NUMBER OF CONTAINERS
Example: Westerville Auto Parts Company produces rocker-arm
assemblies for use in the steering and suspension systems of four-
wheel-drive trucks.
A typical container of parts spends 0.02 day in processing and 0.08
day in materials handling and waiting during its manufacturing
cycle.
Daily demand for the part is 2,000 units. Management believes that
demand for the rocker-arm assembly is uncertain enough to
warrant a safety stock equivalent of 10 percent of inventory.
EXAMPLE
Westerville Auto Parts
a. If each container contains 22 parts, how many containers
should be authorized?

d = 2000 units/day p = 0.02 day a = 0.10

w = 0.08 day c = 22 units
d( w + p )( 1 + a )
k=
c
2000( 0.08 + 0.02 )( 1 + 0.10 )
k=
22
k = 10 containers
 EXAMPLE
Westerville Auto Parts
b. A proposal to revise the plant layout would cut materials
handling and waiting time per container to 0.06 day. How many
containers would be needed?

d = 2000 units/day p = 0.02 day a = 0.10

w = 0.06 day c = 22 units
d( w + p )( 1 + a )
Proposed k=
change c
from 0.08 2000( 0.06 + 0.02 )( 1 + 0.10 )
k=
22

k = 8 containers
VALUE STREAM MAPPING (VSM)
• IS A LEAN TOOL USED TO ASSESS THE CURRENT STATE OF
WORK PROCESSES FROM START TO FINISH.
• IT SHOWS BOTH MATERIAL FLOW AND INFORMATION
FLOW, THE LATTER OF WHICH IS OFTEN LEFT OUT OF
PROCESS MAPS.
• BY SHOWING INFORMATION FLOW, PEOPLE CAN GET A
BETTER UNDERSTANDING OF THE CURRENT STATE AND
ANY POTENTIAL PROBLEMS THAT ARE OCCURRING.
• VALUE-STREAM MAPS ARE OFTEN HAND-DRAWN AND
INCLUDE A DIAGRAM OF MATERIALS MOVING
THROUGH PARTS OF THE WORKPLACE.
• THESE MAPS OFTEN INCLUDE INFORMATION ABOUT HOW
LONG TASKS TAKE AND HOW OFTEN ORDERS FOR
MATERIALS ARE PLACED.
VALUE STREAM MAPPING (VSM)
JUST IN TIME (JIT)

• JUST IN TIME (JIT) MANUFACTURING IS A WORKFLOW

METHODOLOGY AIMED AT REDUCING FLOW TIMES
WITHIN PRODUCTION SYSTEMS, AS WELL AS RESPONSE
TIMES FROM SUPPLIERS AND TO CUSTOMERS.
• CALLS FOR THE PRODUCTION OF WHAT THE CUSTOMER
WANTS, WHEN THEY WANT IT, IN THE QUANTITIES
REQUESTED, WHERE THEY WANT IT, WITHOUT IT BEING
DELAYED IN INVENTORY.
• ALLOWS TO CONCENTRATE RESOURCES ON ONLY
FULFILLING WHAT YOU ARE GOING TO BE PAID FOR
RATHER THAN BUILDING FOR STOCK.
• EACH PROCESS WILL ONLY PRODUCE WHAT THE NEXT
PROCESS IN SEQUENCE IS CALLING FOR.
JUST IN TIME (JIT)
• BENEFITS:- • INCREASE IN
PRODUCTION
• REDUCTION IN
INVENTORY • IMPROVEMENTS IN
PRODUCT QUALITY
• REDUCTION IN LABOR (LOWER RATES OF
COSTS DEFECTS)
• REDUCTION IN SPACE
• REDUCTION OF
NEEDED TO OPERATE THROUGHPUT TIME
• REDUCTION IN WIP • REDUCTION OF
STANDARD HOURS
• INCREASE IN NUMBER OF
SHIPMENTS
 COMPARISON OF JIT AND
TRADITIONAL
Factor Traditional JIT

Inventory Much to offset forecast Minimal necessary to operate

errors, late deliveries
Deliveries Few, large Many, small

Lot sizes Large Small

Setup; runs Few, long runs Many, short runs

Vendors Long-term relationships are Partners

unusual
Workers Necessary to do the work Assets