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7/31/2019 Session 13 - Lean Production
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The McGraw-Hill Companies, Inc. 2008 Irwin/McGraw-Hill
Session 13
Lean Production
(JIT Concept)
Jeddy J. Sardjono
7/31/2019 Session 13 - Lean Production
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Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. 2009
Jeddy J. Sardjono - MMUI 20 -
Objectives
Lean Production Defined
The Toyota Production System
Waste of Operation
Respect for the People
Lean Services
7/31/2019 Session 13 - Lean Production
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Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. 2009
Jeddy J. Sardjono - MMUI 20 -
Lean ProductionDefined
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 nextworkstation “just in time”)
7/31/2019 Session 13 - Lean Production
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Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. 2009
Jeddy J. Sardjono - MMUI 20 -
PRODUCTION SYSTEM
Based on two philosophies:
A) Elimination of waste
B) Respect for people
7/31/2019 Session 13 - Lean Production
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Jeddy J. Sardjono - MMUI 20 -
A) Waste in Operations
1. Waste from overproduction
2. Waste of waiting time
3. Transportation waste
4. Inventory waste
5. Processing waste
6. Waste of motion7. Waste from product defects
dd d
7/31/2019 Session 13 - Lean Production
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Jeddy J. Sardjono - MMUI
Elimination of Waste
1. Focused factory networks2. Group technology
3. Quality at the source
4. JIT production
5. Uniform plant loading
6. Kanban production control system
7. Minimized setup times
J dd J S dj MMUI
7/31/2019 Session 13 - Lean Production
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Jeddy J. Sardjono - MMUI
(1) Minimizing Waste: Focused Factory Networks
CoordinationSystem Integration
These are small specialized plants
that limit the range of productsproduced (sometimes only one typeof product for an entire facility)
Some plants inJapan have as fewas 30 and as manyas 1000 employees
J dd J S dj MMUI 20
7/31/2019 Session 13 - Lean Production
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Jeddy J. Sardjono - MMUI 20 -
(2) Minimizing Waste: Group Technology
Jeddy J Sardjono MMUI 20
7/31/2019 Session 13 - Lean Production
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Jeddy J. Sardjono - MMUI 20 -
(4) Minimizing Waste: JIT Production
Jeddy J Sardjono - MMUI
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Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. 2009
Jeddy J. Sardjono - MMUI
(6) Minimizing Waste: Kanban Production ControlSystems
Storage
Part A
Storage
Part A Machine
Center Assembly
Line
Material Flow
Card (signal) Flow
Withdrawalkanban
Once the Production kanban isreceived, the Machine Centerproduces a unit to replace theone taken by the Assembly Linepeople in the first place
This puts thesystem back were it wasbefore the itemwas pulled
The process begins by the Assembly Linepeople pulling Part A from Storage
Production kanban
Jeddy J Sardjono - MMUI
7/31/2019 Session 13 - Lean Production
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Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. 2009
Jeddy J. Sardjono MMUI
Determining the Number of KanbansNeeded
Setting up a kanban system requires determiningthe number of kanbans cards (or containers)needed
Each container represents the minimumproduction lot size
An accurate estimate of the lead time required to
produce a container is key to determining howmany kanbans are required
Jeddy J. Sardjono - MMUI
7/31/2019 Session 13 - Lean Production
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Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. 2009
Jeddy J. Sardjono MMUI
The Number of Kanban Card Sets
C S DL
k
)(1
containertheof Size
stock SafetytimeleadduringdemandExpected
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
Jeddy J. Sardjono - MMUI
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Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. 2009
J y J j
Example of Kanban Card Determination:Problem Data
A switch assembly is assembled in batches of 4 unitsfrom an “upstream” assembly area and delivered in aspecial container to a “downstream” control-panelassembly operation
The control-panel assembly area requires 5 switchassemblies 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
Jeddy J. Sardjono - MMUI
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Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. 2009
J y J j
Example of Kanban Card Determination:Calculations
3or,75.24
5(2)(1.1))(1
containertheof Size
stock SafetytimeleadduringdemandExpected
C
S DL
k
Always round up!
Jeddy J. Sardjono - MMUI 20 - 1
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Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. 2009
Lean Implementation Requirements
Jeddy J. Sardjono - MMUI 20 - 1
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Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. 2009
B) Respect for People
Level payrolls
Cooperative employee unions
Subcontractor networks
Bottom-round management style
Quality circles (Small Group Involvement Activities or SGIA’s)
Jeddy J. Sardjono - MMUI 20 - 1
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Can lean system beimplemented in a Service
Industry ? (1)
Organize Problem-Solving Groups
Upgrade Housekeeping Upgrade Quality
Clarify Process Flows
Revise Equipment and ProcessTechnologies
Jeddy J. Sardjono - MMUI 20 - 1
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Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. 2009
Can lean system beimplemented in a Service
Industry ? (2)
Level the Facility Load
Eliminate Unnecessary Activities Reorganize Physical Configuration
Introduce Demand-Pull Scheduling
Develop Supplier Networks
