LEAN PRODUCTION

Prof. Kaushik Paul

Associate Professor
Operations Area
E-Mail: kaushik.paul@igsm.in
Phone: 43559308
 OBJECTIVES

 Lean Production Defined

 The Toyota Production System
 Lean Implementation Requirements
 Lean Services

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 LEAN PRODUCTION

 Lean Production can be defined as an integrated set

of activities designed to achieve high-volume
production using minimal inventories (raw materials,
work in process, and finished goods)

 Lean Production also involves the elimination of

waste in production effort

 Lean Production also involves the timing of

production resources (i.e., parts arrive at the next
workstation “just in time”)

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 Here the customer starts
the process, pulling an PULL SYSTEM
inventory item from
Final Assembly…
Then sub-
assembly work is Fab Vendor
pulled forward by
that demand… Sub
Fab Vendor
Customers
Final
Assembly

The process continues Sub Fab Vendor

throughout the entire
production process and
supply chain Fab Vendor
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 FEATURES OF LEAN PRODUCTION

WHAT IT IS WHAT IT DOES

• Management philosophy • Attacks waste

• Exposes problems and bottlenecks
• “Pull” system though the plant
• Achieves streamlined production

WHAT IT REQUIRES WHAT IT ASSUMES

• Employee participation
• Industrial engineering/basics • Stable environment
• Continuing improvement
• Total quality control
• Small lot sizes
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 THE TOYOTA PRODUCTION SYSTEM

 Based on two philosophies:

2. Elimination of waste

 Respect for people

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 ELIMINATION OF WASTE
1. Focused factory networks

• Group technology

• Quality at the source

• JIT production

• Uniform plant loading

• Kanban production control system

• Minimized setup times

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 These are small specialized
MINIMIZING WASTE: plants that limit the range
FOCUSED FACTORY of products produced
NETWORKS (sometimes only one type of
product for an entire
facility)

Some plants in
Japan have as
Coordination few as 30 and as
System Integration many as 1000
employees

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 MINIMIZING WASTE: GROUP TECHNOLOGY (PART 1)
Note how the flow lines are going back and forth
 Using Departmental Specialization for plant layout can cause a lot of
unnecessary material movement

Saw Saw Saw Grinder Grinder

Heat Treat

Lathe Lathe Lathe Press Press Press

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 MINIMIZING WASTE: GROUP TECHNOLOGY (PART 2)

 Revising by using Group Technology Cells can reduce movement and improve
product flow

Grinder
1 2
Saw Lathe Lathe Press

Heat Treat

Grinder
Saw Lathe A B Lathe Press

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 MINIMIZING WASTE:
UNIFORM PLANT LOADING (HEIJUNKA)
Suppose we operate a production plant that produces a single
product. The schedule of production for this product could be
accomplished using either of the two plant loading schedules
below.

Not uniform Jan. Units Feb. Units Mar. Units Total

1,200 3,500 4,300 9,000
or

Uniform Jan. Units Feb. Units Mar. Units Total

3,000 3,000 3,000 9,000
How does the uniform loading help save labor costs?
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MINIMIZING WASTE: INVENTORY
HIDES PROBLEMS
Example: By
identifying defective
Machine
downtime items from a vendor
early in the
Scrap Vendor production process
Work in delinquencies Change the downstream work
orders
process is saved
queues Engineering design Design
(banks) redundancies backlogs

Example: By
Paperwork Inspection Decision identifying defective
backlog backlogs backlogs work by employees
upstream, the
downstream work is
saved 12
MINIMIZING WASTE: KANBAN PRODUCTION CONTROL
SYSTEMS This puts the
system back
Once the Production kanban is
Withdrawal were it was
received, the Machine Center
kanban before the item
produces a unit to replace the
was pulled
one taken by the Assembly Line
people in the first place

Storage Storage
Machine Part A Part A Assembly
Center
Line

Production kanban
Material Flow
The process begins by the Assembly Line
people pulling Part A from Storage Card (signal) Flow
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DETERMINING THE NUMBER OF KANBANS NEEDED

 Setting up a kanban system requires determining the

number of kanbans cards (or containers) needed
 Each container represents the minimum production lot
size
 An accurate estimate of the lead time required to
produce a container is key to determining how many
kanbans are required

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 THE NUMBER OF KANBAN CARD
SETS
Expected demand during lead time + Safety stock
k=
Size of the container

DL(1 + S )
=
C
k = Number of kanban card sets (a set is a card)
D = Average number of units demanded over some time
period
L = lead time to replenish an order (same units of time as
demand)
S = Safety stock expressed as a percentage of demand
during leadtime
C = Container size

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EXAMPLE OF KANBAN CARD DETERMINATION:
PROBLEM DATA

 A switch assembly is assembled in batches of 4 units from

an “upstream” assembly area and delivered in a special
container to a “downstream” control-panel assembly
operation
 The control-panel assembly area requires 5 switch
assemblies per hour
 The switch assembly area can produce a container of
switch assemblies in 2 hours
 Safety stock has been set at 10% of needed inventory

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 EXAMPLE OF KANBAN CARD DETERMINATION:
CALCULATIONS

Expected demand during lead time +Safety stock

k =
Size of the container

DL (1+ S ) 5(2)(1.1)
= = = 2.75, or 3
C 4

Always round up!

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 RESPECT FOR PEOPLE

 Level payrolls
 Cooperative employee unions
 Subcontractor networks
 Bottom-round management style

 Quality circles (Small Group Involvement Activities or

SGIA’s)

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 TOYOTA PRODUCTION SYSTEM’S FOUR RULES

1. All work shall be highly specified as to content,

sequence, timing, and outcome

2. Every customer-supplier connection must be direct,

and there must be an unambiguous yes-or-no way to
send requests and receive responses

3. The pathway for every product and service must be

simple and direct

4. Any improvement must be made in accordance with

the scientific method, under the guidance of a
teacher, at the lowest possible level in the
organization

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LEAN IMPLEMENTATION REQUIREMENTS: DESIGN
FLOW PROCESS

 Link operations
 Balance workstation capacities
 Redesign layout for flow
 Emphasize preventive maintenance
 Reduce lot sizes
 Reduce setup/changeover time

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 LEAN IMPLEMENTATION REQUIREMENTS: TOTAL
QUALITY CONTROL

 Worker responsibility
 Measure SQC
 Enforce compliance
 Fail-safe methods

 Automatic inspection

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LEAN IMPLEMENTATION REQUIREMENTS: STABILIZE SCHEDULE

 Level schedule

 Underutilize capacity

 Establish freeze windows

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 LEAN IMPLEMENTATION REQUIREMENTS: KANBAN-PULL

 Demand pull

 Backflush

 Reduce lot sizes

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LEAN IMPLEMENTATION REQUIREMENTS: WORK WITH
VENDORS

 Reduce lead times

 Frequent deliveries

 Project usage requirements

 Quality expectations

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LEAN IMPLEMENTATION REQUIREMENTS: REDUCE
INVENTORY MORE

 Look for other areas

 Stores

 Transit

 Carousels

 Conveyors

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LEAN IMPLEMENTATION REQUIREMENTS:
IMPROVE PRODUCT DESIGN

 Standard product configuration

 Standardize and reduce number of parts

 Process design with product design

 Quality expectations

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 LEAN IMPLEMENTATION REQUIREMENTS:
CONCURRENTLY SOLVE PROBLEMS

 Root cause
 Solve permanently
 Team approach
 Line and specialist responsibility
 Continual education

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 LEAN IMPLEMENTATION REQUIREMENTS:
MEASURE PERFORMANCE

 Emphasize improvement

 Track trends

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 LEAN IN SERVICES (EXAMPLES)

 Organize Problem-Solving Groups

 Upgrade Housekeeping
 Upgrade Quality
 Clarify Process Flows
 Revise Equipment and Process Technologies

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 LEAN IN SERVICES (EXAMPLES)

 Level the Facility Load

 Eliminate Unnecessary Activities
 Reorganize Physical Configuration
 Introduce Demand-Pull Scheduling
 Develop Supplier Networks

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References: ‘Operations Management for
Competitive Advantage’
By Chase, Jacobs & Aquilano, 11e

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