Lec09 - lean and quality Production Planning and Inventory

Control Class 2024

systems
Product and Quality Cycle

1. Product
definition

Marketplace

4. Product
consumption 2. Product
(use) design

3. Product
manufacturing
Objectives
Product
Productquality
quality

From
From
Product
Product Design
Design Manufacturing
Manufacturing customer
customer
definition
definition process
process and
andpackaging
packaging perspective
perspective

• Performance
• Features
• Conformance
• Warranty
• Sustainability
 Systems and Methodologies

Systems and methodologies can vary across the product life cycle.

There are many choices of systems and methodologies.

Systems and methodologies can

complement each other.
Example Systems

• Lean
• Total quality management
• problem-solving tools
• costs of quality
• quality function deployment
• employee empowerment
• continuous process improvement
• process capability and control
• six sigma
• benchmarking
Principles, Practices, and Tools
Product and quality cycle
Lean, six sigma, TQM
practice or tool Define Design Manufacture Consume
Customer focus/value X X X X
QFD X X X
Improvements X X
Eliminate waste X X X
Flow X
Pull systems X X
Work cells X
Process flexibility X X
Total production maintenance X
Employee focus X X X X
Supplier partnerships X X X X
Quality-related costs X X X X
Quality tools X X
Statistical process control X X
Six sigma X X X X
Focus on the Customer

• Customer requirements:
• quality
• flexibility
• service
• short lead time
• consistency
• cost savings
Value of a Product to the Customer

• From customer’s point of view:

• meets or exceeds expectations
• From manufacturing point of view:
• does not waste material or labor
• has short setup time and low cost
• is already being manufactured
• From design point of view:
• has features that add value for the customer
 Customers Dictate Technical Specs

QFD house of quality

Correlation matrix
technical
Technical design
features / characteristics
requirements

Competitor B performance
Competitor A performance
Customer importance

Importance weighting
Relationship matrix
Customer between
central
(or relationship)
customer requirements
requirements matrix
and
design requirements

Voice of the Technical priority

“
customer
The House of Toyota

Best quality, lowest cost, shortest lead time

by eliminating waste
Just-in-Time (JIT) Culture of Jidoka
continuous
• Takt time • Manual or
improvement
automatic line
• One-piece flow stop
• Pull systems Respect for • Separate
people operator and
• safety machine
activities
• morale • Mistake-proofing
• In-station
process control

Operational stability
Leveling Standard work Kaizen
Lean Focus: Eliminate Waste

1. Process
2. Movement How can these
be eliminated
3. Methods through
4. Product defects continuous
improvement?
5. Waiting time
6. Overproduction
7. Excess inventory
8. Unused people skills
Continuous Flow Production

• Production matches customer demand rate (takt time).

• Items are processed directly from one step to the next.
• Optimal is one-piece (one-at-a-time) flow.
• Little inventory is held.
• Demand pulls product through the system.
 Example Pull System with Kanban
TheMaterial handler
material handler (or
(or Operator
Operator # 2) kanban
2) brings
tobrings kanban
Workstation to hangs
1 and
Workstation
it on the board.1 Operator 2 begins
Operator #
Operator 11removes
removes and hangs it on work, detaches
kanban
kanban from board,
from board,
B kanban, and places
hangs
hangs it
it on
on empty
empty it for collection.
container, and
container, and
begins
begins work.
work. C A

Process 1 Inventory Process 2

Containerwith
withcard
card Kanban move next Full containers
Container
isismoved
movedbybymaterial
material Kanban board Pull
handlerororOperator
handler Operator#11
Kanban card
totoinventory
inventoryposition.
position. D
 Process Layout
Lay out the plant by departments using similar equipment.

 Process layout is used

Finishing Sanding by discrete
department department manufacturers.
 It is a silo-type layout.
Cutting  Individual processes are
department
physically separated.

Sawing
 Batches move through,
department creating WIP inventory.
Cellular Layout

 Cellular layout is used in a

flow production line.
Cutting Sawing  Products move through,

Sanding
one at a time, from station
to station, with limited WIP
inventory in between.
 This layout reduces waste
Finishing of excess floor space,
unnecessary motions,
transportation, and
handling.
Benefits of Cellular Layout

• The use of work cells can result in

• reduced queue
• simplified production activity control
• reduced floor space and walking
• reduced material movement
• immediate feedback.
• These advantages can lead to
• greater production flexibility
• smaller lot sizes
• improved quality.
Process Flexibility

• Process flexibility
• can swiftly change volume/mix
• requires
• flexible machinery
• cross-trained employees
• quick changeovers.
Total Productive Maintenance (TPM)

• The goals of TPM are to

• ensure production machinery is ready to perform tasks
• create uninterrupted flow.
• Schedule preventive maintenance before problems
occur.
• Train and empower operators to perform routine
maintenance on their equipment.
• Operators assume a sense of responsibility for their
machines and downtimes are reduced.
Continuous Improvement

• Improves productivity
• Eliminates waste
• Involves teams
 Employee Involvement and
Empowerment
First time right
• Involve employees in
quality and process
improvement.
Lot-size Lead-time
• Empower them to make reduction reduction
decisions. Quality
• Use jidoka or line stop for at the
defects. source

WIP
reduction
 Lean Tools and Techniques

• Value stream mapping Value stream map

• Heijunka Supplier
Purchase orders Production
Production
schedule
Schedule
Forecasts Information
Retailer flow

• 5S
• sort
• simplify Paint
Paint Assemble
Assemble Ship
Ship Material
• scrub flow

• standardize C/T 60
200
C/T 30
200
C/T 20
Process
• sustain
C/O= 180 C/O = 0 C/O = 0
2 Shifts 2 Shifts 2 Shifts
data

• Hoshin planning 1 day

1 hour
2 days

1 hour
1 day 4 days
 Supplier Partnerships

• Supplier is viewed as an upstream work center to

the plant.
• Customers and suppliers share information.
• Suppliers must
• have reliable quality
• be able to produce and make small, frequent
deliveries.
 What is Quality?

• quality—Conformance to requirements or fitness for

use.
—APICS Dictionary

• As a minimum, all parts must be within specification and

the less variation from the center of the specifications,
the better.
Product Quality
Dowel dimensions
Lower Upper
8
specification specification
limit Mean limit
7

6
Frequency

0
0.90 0.91 0.92 0.93 0.94 0.95 0.96 0.97 0.98 0.99 1.00 1.01 1.02 1.03 1.04 1.05 1.06 1.07 1.08 1.09 1.10

Dowel dimensions (inches)

Spec = 1" ± 0.10"

Problem 9.1

5
4
3
3
1
100 110 120 130 140 150 160 170 180
Milligrams
Problem 9.1 Solution

5 X
4 X X X
3 X X X
2 X X X
1 X X X X X
100 110 120 130 140 150 160 170 180
Milligrams
Quality-Related Costs
Costs
Costsof
of controlling
controlling
Costs
Costsof
of failure
failure quality
quality

Internal
Internal Prevention
Prevention

External
External Appraisal
Appraisal
Quality Control Tools
Flowchart
Cause
Scatter
and
diagram
effect

Quality
Control
Pareto
charts

Check
Histogram
sheet
Flowchart
Receive part

Paint

Accept? No
Rework

Yes

Package
Cause-and-Effect Diagram
Environment People Materials

Disorder Not properly trained Inconsistent

Unclean Not paying attention Acceptance criteria vary

Poor
packaging
No calibration requirements No standards Not calibrated

No standards Complex procedures Vendors vary

Measurement Methods Machine

Control Charts
Upper control limit

Lower control limit

Upper control limit

X is the average for a small sample.

R is the highest reading minus the lowest for the sample.
Statistical Process Control (SPC)

• Goal is to reduce defects and achieve customer

satisfaction.
• SPC has two objectives:
• Select processes capable of producing the required
quality products.
• Monitor processes to ensure they continue to produce
the required level of quality.
Process Capability
Mean

Lower Upper
specification specification
limit limit
SPC Versus Product Inspection
• SPC monitors processes against statistical control limits.
• SPC:
• adds value for the customer
• spots changes in variation so that corrective action can be taken to prevent
defects
• Product inspection assesses products against a specification.
• Product inspection:
• does not add value for the customer
• catches defects after they occur
• is expensive and usually considered waste
• may not result in correction of defect root cause
Check Sheet

Product
A B C
Wrong lot 9

Dented 8

Broken 6

9 9 5
Histogram
Defects by type

10
9
Percentage defective

8
7
6
5
4
3
2
1
0
Broken Wrong lot Dented
Defect type
Pareto Chart
Customer complaints

45

40

35
Percent of complaints

30

25

20

15

10

0
Poorly Late delivery Did not meet Defective Other
packaged expectations
Scatter Diagram

160

140
Number of goods packaged

120

100

80

60

40

20

0
0 5 10 15 20 25 30
Day of the month
Six Sigma

• Major concepts:
• It is important to understand what the customer wants.
• Variation causes defects.
• The output of a process is a function of its inputs.
• Lean six sigma
• Process improvement
• Problem solving
Causes of Variation

• special causes—A source of variation in a process

that can be isolated, especially when its
significantly larger magnitude or different origin
readily distinguishes it from random causes of
variation.
• common causes—Causes of variation that are
inherent in a process over time. They affect every
outcome of the process and everyone working in
the process.
──APICS Dictionary
Six Sigma Project Phases—DMAIC

• Define
• Measure
• Analyze
• Improve
• Control
Benchmarking

• Benchmarking is a systematic method by which

organizations compare their performance to a best-
in-class organization.
• Benchmarking steps:
1. Select the process or processes to benchmark.
2. Identify an organization that is best-in-class in
performing the process you want to study.
3. Study the benchmarked organization.
4. Analyze the data.
Summary
Define Design Make Consume

Systems can vary across the product and quality cycle.

Lean TQM Six sigma Lean six sigma

There are many choices of systems.

Systems can complement each

other, but their common goal is to
satisfy the customer.