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Lean Manufacturing Chapter 3 Flow

Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective

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Page 1: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective

Lean Manufacturing

Chapter 3Flow

Page 2: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective

Flow - Definition

The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913.

The objective of flow production was to drastically reduce product throughput time and human effort through a series of innovations.

Consistently interchangeable parts so that cycle times could be stable for every job along an extended line

The line itself The reconfiguration of part fabrication tasks so that machines

were lined up in process sequence with parts flowing quickly and smoothly from machine to machine

Production control system insuring that the production rate in parts fabrication matched the consumption rate of parts in final assembly.

Page 3: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective

The World of Batch-and-Queue

What happens when you go to your doctor?• Make appointment days ahead• Arrive on time and wait in waiting room• Doctor behind schedule• Referral to a specialist• Laboratory tests• Wait for results• Treatment or medication given• Trip to pharmacy or to specialist• Hospitalization – whole new disconnected processes and waiting

What happens when you take a flight? What happens when you build a custom home?

• As the customer, you pay for all the waiting and rework The creation, ordering, and provision of any good or any

service can be made to flow.

Page 4: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective

How to Obtain Flow?

Think about ways to:• Line up all of the essential steps needed to get a job done • Obtain a steady, continuous flow• No wasted motions• No interruptions• No batches• No queues

Page 5: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective

The Techniques of Flow

Step 1: Focus on the actual object• The specific design• The Specific order• The product itself

Step 2: Ignore traditional boundaries of • Jobs• Careers• Functions and• Firms• Form lean enterprise removing all obstacles to the continuous flow

Step 3: Rethink specific work practices and tools • Eliminate backflows, scrap, and stoppages so that the design,

order, and production of the specific product can proceed continuously

All three steps must be taken together

Page 6: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective

Example: From Batch to Flow in BicyclesThe Design Step

Marketing department determined a “need” Product engineers design a product to serve the need Prototype department built a prototype to test the design Tooling department designed tools to make a high-volume

version of the approved prototype Production engineering figured out how to use the tools to

fabricate the frame and to assemble the component parts into a completed bike

Purchasing department arranged to buy the necessary component parts for delivery to the assembly line once the design was finalized

The design moved from department to department waiting in the queue

Frequent reworked or secretly reengineered to deal with incompatibilities between the process steps

Page 7: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective

Create truly dedicated product teams with all the skills required to conduct the following in one room in short period of time:• Value specification• General design• Detailed engineering• Purchasing• Tooling• Production planning

Quality Function Deployment (QFD): decision-making methodology utilizing “standardized work” to ensure process repeatability

Throughput time accurately measured Design methodology continuously improved

Example: From Batch to Flow in BicyclesDesign Using The Lean Approach

Page 8: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective

Sales department obtain orders from retailers Scheduling department in Operations or Manufacturing work the

production schedules for the various products Customers call the Sales department to status late orders Sales calls Scheduling When customers threaten to cancel orders, Sales and

Scheduling expedite the orders Sales and Scheduling had been combined in the early 1990’s Computerized systems make instantaneous order changes and

sometimes electronically transmitted to the customers

Example: From Batch to Flow in BicyclesOrder-Taking

Page 9: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective

Sales and Production Scheduling are core members of the product team

In a position to plan the sales campaign as the product design is being developed

Sale with a clear eye to the capabilities of the production system so that both orders and the product can flow smoothly from sale to delivery

No stoppages in the production system Products are built to order Only few hours elapse between the first operation on raw

materials and shipment of the finished item Orders can be sought and accepted with clear and precise

knowledge of the system’s capabilities There is no expediting!

Example: From Batch to Flow in BicyclesOrder-Taking Using the Lean Approach

Page 10: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective

Precisely synchronizes the rate of production to the rate of sales to customers

Takt Time Calculation Example: • Customers are placing orders at the rate of 48/day• Bike factory works a single eight-hour shift

Takt time adjusted as orders increase or decrease over time The production slots created by the Takt Time are clearly posted on

whiteboard or electronic displays (andon boards) • andon boards: status-display station: Japanese name for a visual

production-control device (usually a lighted overhead display) that continuously shows changing status of the production line and sounds alerts if a problem is imminent.

Lean technique – transparency or visual control – everyone can see where production stands at every moment

Takt Time

N u m b er o f B ik es O rd ered

N u m b er o f H o u rs A v ailab le

B ik es

H o u rs

B ik es

H o u r

B ik e

M in u tes

4 8

8

6 1

1 0

Page 12: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective

Historic practice was to differentiate production activities by type and to create departments for each type of activity.

Frame and handle bars:• Tube cutting

• Tube bending

• Mitering ============• Welding

• Washing

• Painting Final Assembly of complete bike Over time, higher speed machines with higher levels of automation

were developed for cutting, bending, welding, and painting Assembly lines to assemble a mix of high-volume models Large batches made before changing over to run the next part Large inventory

Example: From Batch to Flow in BicyclesProduction

Page 13: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective

Bicycle Plant Layout and Flow

STARTTUBE

CUTTINGDEBURR

TUBEMITERING

TUBESTO CK

STO RAG E

TUBEBENDING

FRAMEW ELDING

1

1 FRAMEPARTS

STO RAG E

FRAMEW ASHING

2

2FRAME

PAINTINGFINAL

ASSEMBLYFRAMESTO RAG E

FINISHEDSTO RES/SHIPPING

END

CO MPPARTS

STO RAG E

Page 14: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective

Continuous Flow Factory

Page 15: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective

Continuous Flow Production

Remember!

• Make It Flow

• Feed the Flow

• Link the Flow

Page 16: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective

Continuous Flow Production

Definition

• Flow of products in a level manner through the production operations. The ideal situation is one piece flow at and between processes.

• The intent of flow production is to increase the velocity of products and make the production cycle predictable.

Page 17: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective

Steady Velocity

Traditional: Batch Production (like a meandering stream with many stagnant pools, waterfalls, and eddies)

FLOW:Production: Pipeline with fast-flowing water or product

The right Job and it must keep moving

2 WEEKS!When do we get our Parts?

Page 18: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective
Page 19: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective
Page 20: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective
Page 21: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective
Page 22: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective

Connected Lines

Page 23: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective

Layout change

Before GearHobbing

CNC LatheBoring Chamfer

GearShaver

Dbur.

HoleBoring

ManualDeburring

ToothChamfer

Gear ShavingAfter

CNC LatheC

NC

Lathe

Honin

g

CNC Mill

Mill DrillBoring

Dbur.

Ho

b

Chamfe

r

GearShaver

CNC Lathe

Honing CNC MillMill

Drill

Boring

Hob

ChamferGear

Shaver

Dbur.

Blank Machining

Blank MachiningBore Honing

Drive SlotMilling Lube Slot

Milling

HoleDrilling

HoleBoring

ManualDeburring

GearHobbing

ToothChamfer

Gear Shaving

In Out

Page 24: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective

Summary of Benefits

Work flow levels are reduced and progress is visible at a glance

The ability to cross train is enhanced Work team members take ownership of full process and can

help each other Quick problem identification and feedback Reduced Cycle Time Improved quality through cycle of learning Information flow and decision making enhanced Value-added ratio improved Reduces transportation waste Reduces material handling Helps to identify root causes of quality problems Allows for equipment dedication Drives set-up times down

Page 25: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective

Eight Wastes

TABLE 8.1 | THE EIGHT TYPES OF WASTE OR MUDA

Waste Definition

1. Overproduction Manufacturing an item before it is needed.

2. Inappropriate Processing

Using expensive high precision equipment when simpler machines would suffice.

3. Waiting Wasteful time incurred when product is not being moved or processed.

4. Transportation Excessive movement and material handling of product between processes.

5. Motion Unnecessary effort related to the ergonomics of bending, stretching, reaching, lifting, and walking.

6. Inventory Excess inventory hides problems on the shop floor, consumes space, increases lead times, and inhibits communication.

7. Defects Quality defects result in rework and scrap, and add wasteful costs to the system in the form of lost capacity, rescheduling effort, increased inspection, and loss of customer good will.

8. Underutilization of Employees

Failure of the firm to learn from and capitalize on its employees’ knowledge and creativity impedes long term efforts to eliminate waste.

Page 26: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective

Continuous Improvement

Figure 8.1 – Continuous Improvement with Lean Systems

Page 27: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective

Rules for Kanban Systems

1) Pull from the downstream process (or customer) drives the system.

2) All product or inventory is under kanban control.

3) Only an “empty” kanban authorizes production.

4) Never pass a known defect downstream.

5) Use gradual kanban reductions to drive improvement.

Page 28: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective

Purpose of a Kanban System

1) Authorize production

2) Authorize movement.

3) Limits amount of inventory in the system.

4) A tool for driving continuous improvement.

Page 29: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective

How Many Kanbans?

(Lead Time + Safety Time) = Total Time

Total Time x Production Requirement = Units in Pipeline

Units in Pipeline

Units per Kanban= Number of Kanbans

Page 30: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective

Pull Production System

Definition• A customer driven system that produces

and moves a product/service only when the customer needs it.

Work Flow

Kanban1

Kanban2

Kanban3

WorkCenter A

WorkCenter B

Customer

Pulls

Page 31: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective

The Kanban System

Receiving postKanban card for product 1

Kanban card for product 2

Fabrication cell

O1

O2

O3

O2

Storage area

Empty containers

Full containers

Assembly line 1

Assembly line 2

Figure 8.4 – Single-Card Kanban System

Page 32: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective

The Kanban System

Storage area

Empty containers

Full containers

Receiving postKanban card for product 1

Kanban card for product 2

Fabrication cell

O1

O2

O3

O2

Assembly line 1

Assembly line 2

Figure 8.4 – Single-Card Kanban System

Page 33: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective

The Kanban System

Storage area

Empty containers

Full containers

Receiving postKanban card for product 1

Kanban card for product 2

Fabrication cell

O1

O2

O3

O2

Assembly line 1

Assembly line 2

Figure 8.4 – Single-Card Kanban System

Page 34: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective

The Kanban System

Storage area

Empty containers

Full containers

Receiving postKanban card for product 1

Kanban card for product 2

Fabrication cell

O1

O2

O3

O2

Assembly line 1

Assembly line 2

Figure 8.4 – Single-Card Kanban System

Page 35: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective

The Kanban System

Storage area

Empty containers

Full containers

Receiving postKanban card for product 1

Kanban card for product 2

Fabrication cell

O1

O2

O3

O2

Assembly line 1

Assembly line 2

Figure 8.4 – Single-Card Kanban System

Page 36: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective

The Kanban System

Storage area

Empty containers

Full containers

Receiving postKanban card for product 1

Kanban card for product 2

Fabrication cell

O1

O2

O3

O2

Assembly line 1

Assembly line 2

Figure 8.4 – Single-Card Kanban System

Page 37: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective

The Kanban System

Storage area

Empty containers

Full containers

Receiving postKanban card for product 1

Kanban card for product 2

Fabrication cell

O1

O2

O3

O2

Assembly line 1

Assembly line 2

Figure 8.4 – Single-Card Kanban System

Page 38: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective

The Kanban System

KA

NB

AN

Part N

um

ber:

1234567Z

Location

:A

isle 5B

in 47

Lot Q

uan

tity:6

Su

pp

lier:W

S 83

Cu

stomer:

WS

116

1. Each container must have a card

2. Assembly always withdraws from fabrication (pull system)

3. Containers cannot be moved without a kanban

4. Containers should contain the same number of parts

5. Only good parts are passed along

6. Production should not exceed authorization

Page 39: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective

Number of Containers

Two determinationsNumber of units to be held by each container

Determines lot size

Number of containers Estimate the average lead time needed to produce a container of

parts

Little’s law Average work-in-process inventory equals the average demand

rate multiplied by the average time a unit spends in the manufacturing process

Page 40: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective

Number of Containers

WIP = (average demand rate) (average time a container spends in the manufacturing process)+ safety stock

WIP = kc

kc = d (w + p )(1 + α)

k = d (w + p )(1 + α)

cwhere

k =number of containersd =expected daily demand for the partw =average waiting timep =average processing timec =number of units in each containerα =policy variable

Page 41: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective

Number of Containers

Formula for the number of containers

k =Average demand during lead time + Safety stock

Number of units per container

WIP = (average demand rate)(average time a container spends in the manufacturing process) + safety stock

Page 42: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective

Determining the Appropriate Number of Containers

EXAMPLE 8.1 The Westerville Auto Parts Company produces rocker-arm

assemblies A container of parts spends 0.02 day in processing and 0.08 day

in materials handling and waiting Daily demand for the part is 2,000 units Safety stock equivalent of 10 percent of inventory

a. If each container contains 22 parts, how many containers should be authorized?

b. Suppose that 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?

Page 43: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective

Determining the Appropriate Number of Containers

SOLUTION

a.If d =2,000 units/day, p =0.02 day, α =0.10, w =0.08 day, andc =22 units

k =2,000(0.08 + 0.02)(1.10)

22

= = 10 containers22022

b. Figure 8.5 from OM Explorer shows that the number of containers drops to 8.

Figure 8.5 – OM Explorer Solver for Number of Containers

Page 44: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective

Application 8.1

Item B52R has an average daily demand of 1000 units. The average waiting time per container of parts (which holds 100 units) is 0.5 day. The processing time per container is 0.1 day. If the policy variable is set at 10 percent, how many containers are required?

k = d (w + p )(1 + α)

c

= 6.6, or 7 containers

=1,000(0.05 + 0.01)(1 + 0.1)

100

Page 45: Lean Manufacturing Chapter 3 Flow. Flow - Definition The production system Henry Ford introduced at his Highland Park, Michigan plant in 1913. The objective

Kanban Light (More Work)