Just-in-Time Manufacturing and Lean Production · Some Lean Production Tools: Value stream mapping Kaizen Takt time 5S approach: In general it is a structured approach to organizing

Mohammad Toufiqur Rahman

Assistant Professor,DBA, IIUC. Cell: 01611900667

E-mail:[email protected], Web: mtrdba.weebly.com

Just-in-Time Manufacturing

and Lean Production Q. Just-In-Time Philosophy: Just-in-time manufacturing is defined in many ways, but the most popular is the elimination of

all waste and continuous improvement of productivity. Waste means anything other than the

minimum amount of equipment, parts, space, material, and workers’ time absolutely necessary to

add value to the product. This means there should be no surplus, there should be no safety

stocks, and lead times should be minimal: “If you can’t use it now, don’t make it now.”

Adding value to a product does not mean adding cost. Users are not concerned with the

manufacturer’s cost but only with the price they must pay and the value they receive. Many

activities increase cost without adding value and, as much as possible, these activities should be

eliminated.

Value starts in the marketplace when marketing must decide what the customer wants. Design

engineering must design the product so it will provide the required value to the customer.

Manufacturing engineering must first design a process to make the product and then build the

product according to certain specifications. The loop is complete when the product is delivered

to the customer. Figure shows this loop schematically. If any part of the chain does not add

value for the customer, there is waste.

Q. Waste: � Waste Caused by Poor Product Specification and Design

� Component standardization

� Waste Caused in Manufacturing

Toyota has identified seven important sources of waste in manufacturing. The first four relate

to the design of the manufacturing system and the last three to the operation and management

of the system:

i. The process.

ii. Methods

iii. Movement

iv. Product defects

v. Waiting time

vi. Overproduction

vii. Inventory

� Poke-Yoke (Fail Safe)




Q. Just-In-Time Environment � Flow manufacturing

- Work Cells

� Process flexibility

A. Process Flexibility

B. Machine flexibility

C. Quick changeover a. Reduced economic-order quantity.

b. Reduced queue and manufacturing lead time.

c. Reduced work-in-process (WIP) inventory

d. Improved quality.

e. Improved process and material flow.

D. Operator flexibility.

� Total quality management

� Total productive maintenance

� Uninterrupted flow a. Uniform plant loading.

b. Pull system.

c. Valid schedules.

d. Linearity.

� Continuous process improvement

� Supplier partnerships

a. Partnering i. Long-term commitment

ii. Trust

iii. Shared vision

b. Supplier selection

c. Supplier certification.

� Total employee involvement

Q. Manufacturing Planning And Control In A JIT Environment: � Forecasting

� Production Planning

� Master Production Scheduling

� Material Requirements Planning

� Capacity Management

� The Impact on Effective Lot Sizing

� The Pull System

� The Kanban System




Q. Lean Production: Lean production implies understanding and correctly implementing the major enterprise-wide

changes required to truly eliminate or significantly reduce waste in the system. It is the

system-wide philosophical approach used to integrate the system toward an ultimate goal of

maximized customer service with minimal system waste.

Some Lean Production Tools:

� Value stream mapping

� Kaizen

� Takt time

� 5S approach: In general it is a structured approach to organizing the operation for more

effectiveness and less waste that is the overall goal of a lean production system.

a. Sort—determine things that are needed and those not needed in the workplace. Remove

those that are not needed.

b. Straighten—Put the necessary things in good order so they may be readily available when

needed.

c. Shine—clean the area, and keep it clean.

d. Standardize—maintain the order and cleanliness that have been developed.

e. Sustain—Train and develop attitudes to keep the orderliness as an expected and ongoing

part of the organization culture.




Chapter: Total Quality Management Q. What Is Quality? Quality means user satisfaction: that goods or services satisfy the needs and expectations of

the user. To achieve quality according to this definition, we must consider quality and product

policy, product design, manufacturing, and final use of the product.

� Quality and product policy

� Quality and product design

� Quality and manufacturing

� Quality and use- Quality has a number of dimensions, among which are the following:

1. Performance The primary operating characteristics, such as the power of an engine.

Performance implies that the product or service is ready for the customer’s use at

the time of sale. The phrase “fitness for use”—that the product does what it is

supposed to do—is often used to describe this. Three dimensions to performance are

important: reliability, durability, and maintainability. a. Reliability means consistency of performance. It is measured by the length of time a

product can be used before it fails.

b. Durability refers to the ability of a product to continue to function even when subjected

to hard wear and frequent use.

c. Maintainability refers to being able to return a product to operating condition after it

has failed.

2. Features-Secondary characteristics—little extras, such as remote control on a VCR.

3. Conformance-Meeting established standards or specifications. This is

manufacturing’s responsibility.

4. Warranty-An organization’s public promise to back up its products with a guarantee

of customer satisfaction.

5. Service-An intangible generally made up of a number of things such as availability,

speed of service, courtesy, and competence of personnel.

6. Aesthetics-Pleasing to the senses; for example, the exterior finish or the

appearance of a product.

7. Perceived quality-Total customer satisfaction based on the complete experience

with an organization, not just the product. Many intangibles, such as a company’s

reputation or past performance, influence perceived quality.

8. Price. Customers pay for value in what they buy. Value is the sum of the benefits

the customer receives and can be more than the product itself. All the dimensions

listed are elements of value.

Q. Total Quality Management (TQM): TQM is an approach to improving both customer satisfaction and the way organizations do

business. TQM brings together all of the quality and customer-related process improvement

ideas.

Basic Concepts- There are six basic concepts in TQM:

1. A committed and involved management directing and participating in the quality program.

TQM is a continuous process that must become part of the organization’s culture. This requires

senior management commitment.

2. Focus on the customer. This means listening to the customer so goods and services meet

customer needs at a low cost. It means improving design and processes to reduce defects and

cost.




3. Involvement of the total workforce. Total quality management is the responsibility of

everyone in the organization. It means training all personnel in the techniques of product and

process improvement and creating a new culture. It means empowering people.

a. Training

b. Organization

c. Local Ownership/empowerment

d. Teams

4. Continuous process improvement. Processes can and must be improved to reduce cost and

increase quality.

5. Supplier partnering. A partnering rather than adversarial relationship must be established.

6. Performance measures. Improvement is not possible unless there is some way to measure the

results.

- Discover which process needs improvement.

- Evaluate alternative processes.

- Compare actual performance with targets so corrective action can be taken.

- Evaluate employee performance.

- Show trends.

Q. Quality Cost Concepts:

� Costs of Failure - Internal failure costs- The costs of correcting problems that occur while the

goods are still in the production facility. Such costs are scrap, rework, and

spoilage. These costs would disappear if no defects existed in the product before

shipment.

- External failure costs. The costs of correcting problems after goods or services

have been delivered to the customer. They include warranty costs, field servicing

of customer goods and all the other costs associated with trying to satisfy

customer complaints.

� Costs of Controlling Quality - Prevention costs include training, statistical process control, machine

maintenance, design improvements, and quality planning costs.

- Appraisal costs-The costs associated with checking and auditing quality in the

organization. They include product inspection, quality audits, testing, and

calibration.




Q. Variation as a Way of Life:

� Chance variation- 1. People- Poorly trained operators tend to be more inconsistent compared with well-

trained operators.

2. Machine-Well-maintained machines tend to give more consistent output than a

poorly maintained, sloppy machine.

3. Material- Consistent raw materials give better results than poor quality,

inconsistent, ungraded materials.

4. Method- Changes in the method of doing a job will alter the quality.

5. Environment- Changes in temperature, humidity, dust, and so on can affect some

processes.

6. Measurement- Measuring tools that may be in error can cause incorrect

adjustments and poor process performance.

Q. Process Control:

� Control Charts - Run charts

- X (X bar) and R Chart.

� Other Quality Control Tools

- Pareto charts.

- Checksheets.

- Process flowcharts

- Scatterplots.

- Cause-and-effect (fishbone) diagrams

Q. Sample Inspection: There are two inspection procedures: 100% and acceptance sampling.

A 100% inspection means testing every unit in the lot. This is appropriate when the cost of

inspection is less than the cost of any loss resulting from failure of the parts. In cases in which

the cost of failure is exceptionally high, 100% inspection is vital. Products for the medical and

aerospace industry may be checked many times because of the importance of product

performance or the high cost of failure.

Acceptance sampling consists of taking a sample of a batch of product and using it to estimate

the overall quality of the batch. Based on the results of the inspection a decision is made to

reject or accept the entire batch.

Reasons for sampling inspection- � Testing the product is destructive.

� There is not enough time to give 100% inspection to a batch of product

� It is too expensive to test all of the batch.

� Human error is estimated to be as high as 20% when performing long-term repetitive

testing.

Conditions necessary for sampling inspection-

� All items must be produced under similar or identical conditions.

� A random sample of the lot must be taken

� The lot to be sampled should be a homogeneous mixture.

� The batches to be inspected should be large.

Sampling Plans: Sampling plans are designed to provide some assurance of the quality of goods

while taking costs into consideration. Lots are defined as good if they contain no more than a

specified level of defects, called the acceptable quality level (AQL). A plan is designed to have a




minimum allowable number (or %) of defects in the sample in order to accept the lot. Above this

level of defects, the lot will be rejected. � Consumer’s risk

� Producer’s risk

� Cost

Q. ISO 9000:2000 The International Organization for Standardization (ISO) has issued a series of standards;

the most recent version is ISO 9000:2000. Established in 1947, ISO continues to be a

nongovernmental organization based in Geneva, Switzerland. The acronym (ISO) is derived from

the Greek “isos” meaning equality, and it is used in many languages. The European Community

(EC) has openly accepted the ISO standards, and they are becoming universally accepted,

especially in North America. Besides being a requirement for doing business in Europe,

customers throughout the world have come to expect a quality standard and to demand ISO

certification of their suppliers.

The two categories of ISO standards are technical standards and management standards.

Technical standards allow interchanging of parts such as light bulbs, nuts and bolts, tire sizes,

and electrical connectors. As discussed in Chapter 14, standardizing parts has many advantages

to the production and marketing of products. ISO 9000:2000 is a management standard that

defines how a company conducts its business, which helps it work and understand its suppliers

and customers.

Third-party registration system- ISO 9000:2000 is designed around a process approach to

management and is based on eight principles that are closely aligned with Total Quality

Management (TQM): 1. Customer focus: understanding customer needs, striving to exceed customer expectations.

2. Leadership: establishing direction, unity of purpose, and a supportive work environment.

3. Involvement of people: ensuring that all employees at all levels are able to fully use their

abilities for the organization’s benefit.

4. Process approach: recognizing that all work is done through processes and managed

accordingly.

5. System approach to management: expands on the previous principle in that achieving any

objective requires a system of interrelated processes.

6. Continual improvement: as a permanent organizational objective, recognizing and acting on

the fact that in all cases further improvement is possible.

7. Factual approach to decision making: acknowledging that sound decisions must be based on

analysis of factual data and information.

8. Mutually beneficial supplier relationships: synergy can be found in such relationships.

Examples of services where ISO 9000 can be applied are:

Hospitality, communications, health care, maintenance, government, trading, financial,

professional, administration, purchasing, transportation, scientific, utilities, technical, education




Documentation

Q. Benchmarking: 1. Select the process 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.

Q. Six Sigma: The eight essential phases of Six Sigma projects, which may be expressed as DMAIC (design,

measure, analyze, improve, and control).

When the project has been selected:

1. Select the appropriate metrics or key performance output variables.

2. Determine how the metrics will be tracked over time.

3. Determine the current project baseline performance.

4. Determine the input variables that drive the key performance output variables.

5. Determine what changes need to be made to the input variables to positively affect the key

performance output variables.

6. Make the changes.

7. Determine if the changes positively affect the key performance output variables.

8. If the changes positively affect the key performance output variables, establish controls of

the input variables at the new levels.




Q. Quality Function Deployment: Quality function deployment or QFD is a decision-making technique used in the development of

new products or the improvement of existing products, which helps ensure that the wants,

needs, and expectations of the customer are reflected in a company’s designs. Organizations

that ignore the relationship between what is provided in their products and what a customer

wants will not remain competitive. QFD was originally developed in the 1960s by Dr.Yoji Akao

and Dr. Shigeru Mizuno and has been adopted by notable U.S. manufacturers, including: GM,

Ford, DaimlerChrysler, IBM, Raytheon, Boeing, Lockheed Martin, and their suppliers. As defined

in the eleventh edition of the APICS Dictionary, it is “A methodology designed to ensure that all

the major requirements of the customer are identified and subsequently met or exceeded

through the resulting product design process.”

Q. JIT, TQM, AND MRP II:

Documents

Just-in-Time Manufacturing and Lean Production · Some Lean Production Tools: Value stream mapping Kaizen Takt time 5S approach: In general it is a structured approach to organizing