Lean Manufacturing

Naga Vamsi Krishna Jasti

BITS Pilani Assistant Professor
Department of Mechanical Engineering
Hyderabad Campus
 BITS Pilani
Hyderabad Campus

Lean Manufacturing
 Topics to be covered
 Work Flow
 Value Stream Mapping

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Recap
 Evolution of lean manufacturing from the origins of
craft manufacturing and mass manufacturing
 In lean manufacturing we have retained the efficiency
of mass manufacturing, while bringing the operator
closer to the customer, as it was during craft
manufacturing.
 JIT Elements

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Flow
 The way in which material moves in the plant
 Having smooth material flow is important to
organizations as it makes it easier to detect problems,
allows for efficiency in material movement, ease of
supervision, and short lead times.
 Focus on utilization of expensive machines and batch
mentality work against smooth flow of material.
 We need to focus on the root causes of flow
disruption and eliminate them.

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Why is Material Flow Important?
 Shorter throughput times
 Easier to predict customer promise dates
 Problems surface faster
 Better quality
 Ease of supervision
 Ease of scheduling
 Ease of taking corrective action, when problems arise

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Flow
 Elimination of discontinuities in the process
•Why do discontinuities occur?
–Batch mentality
–Focus on maximizing utilization of expensive equipment
–Lack of flexibility in the system
–Lack of trust
•Focus on the root causes of discontinuities and
address them

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Flow and Muda
 Muda is usually a symptom of obstacles to flow. For
example, WIP in front of a machine means that there
may be a problem with:
– Changeover time (e.g., changeovers are so long that
the operator makes as many pieces as possible).
– Machine availability (e.g., machines are unreliable
and the operator makes extra parts just in case).
– Quality (e.g., the defect rate is high and the operator
has to make more to meet the production target).

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Layouts

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Layouts

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Product Layouts
 Product layouts were designed to maximize flow, but
for high volume products
 The machines were special purpose and automation
was hard automation, i.e, the system was designed
for a specific part and volume
 The system was inflexible
 It was easy to supervise
 Scheduling was relatively easy
 Lead times were generally short
 WIP was low

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Process Layouts
 Process layouts were used for low volume products
 Machines were general purpose and parts requiring
processing could be produced on any machine of a
particular type, e.g., lathe, etc.
 Supervision and scheduling were more difficult
 Lead times were long
 WIP was high

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Group Technology
 Attributed to Mitofanov, a machinist, who was looking
for similarities in part shapes
 Group technology was the forerunner to machine cells
 Initial applications were in coding and classification of
parts for reducing redundant effort in part design
 John Burbidge devised Production Flow Analysis to
group parts that needed similar routings and the
machines into cells

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Machine Cells

 A group of machines used to complete a sequence of

operations on a family of parts
 The parts in a family does not have high volumes, but
the family has sufficient volume to justify the
dedication of the machine cell
 By restricting the movement of each part to a small
area, material handling and control is easier,
inventories are low and therefore lead times short.
This gives the machine cells the efficiency of product
layouts

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Machine Cells
 Unlike product layouts, group layouts/machine cells
have the ability to accommodate a family of parts
 Due to this, when product mix and volumes change,
the machine cell is able to absorb the fluctuation. This
makes the group layout/machine cell flexible like the
process layouts
 Machine cells are easy to supervise and schedule
 WIP and lead times tend to be low

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Setup time reduction
 Traditional inventory models, such as EOQ, assume
that the set up cost/time is a fixed quantity.
 Some large automated lines and presses can take more
than a shift to change over from one product to
another.
 With such long set up times, the batch sizes had to be
large. Also, it was impractical to do much load
leveling.
 Toyota challenged the assumption of fixed setup times

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Setup time reduction
Problems with existing method of setup
– Scheduling not done in time resulting in long
waiting times.
– Non standard procedures. Insufficient training.
– Non standard equipment and dies of different sizes
and heights. Searching time.
– Different shut heights require longer adjustment.
– Tools, nuts, bolts missing.
– Excessive adjustment.

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Setup time reduction
 Steps in set up reduction (SMED)
–Determine existing setup procedure
–Divide activities into internal elements and external
elements
 Internal elements are those that require the machine to
be stopped
 External elements can be performed while the machine
is running
–Try to convert internal elements to external elements
–Try to improve external elements
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Process Mapping
 Process maps are pictorial representations of an activity.
 Process maps can be drawn with different levels of
detail and for different purposes.
 A flow chart is a common type of mapping technique
 Typically flow charts are used to map detailed processes
 When processes are mapped at a detailed level, the
intent is to improve the individual activities involved in
the process
 Usually such improvements are local and relatively
easily implemented
 The local improvements may or may not result in the
overall system improvement
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Process Maps

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Process Map

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 Introduction to Value Stream Mapping

A Value Stream includes all elements (both value added

and non-value added) that occur to a given product
from its inception through delivery to the customer.

Requirements Design Raw Materials Parts Manufacturing

Assembly Plants Distribution Customer

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 Introduction to Value Stream Mapping
Value Stream Mapping (VSM) is a hands-on process to
create a graphical representation of the process,
material and information flows within a value stream.

Customer
Weekly Order Rolling 6-wk For X pcs / month
ecast
Std Pack Qty
Steel Supplier 6-wk forecast
PC & L # Shifts
Level Box
DA1
Daily DA2
DA3
6 x / Day

Stamping Welding Assembly Finished Goods

Layout

3 Shifts 3 Shifts 3 Shifts # Material Handlers

TAKT Time TAKT Time TAKT Time Max Size
CT = CT = CT = 2 Shifts
C/O Time = C/O Time = C/O Time = 0 Overtime
DT = DT = DT =
Scrap = Scrap / Rework= Scrap / Rework =
WIP = Small Lot # Operators
WIP = WIP =

Inv .Time ? days ? days ? days ? days TPc /t = ?

Proc .Time ? days ? days ? days

Future State Material, Information and Process Flows

with total Product Cycle Time
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 Objectives of Value Stream Mapping

 Provide the means to see the material, process and

information flows.
 Support the prioritization of continuous improvement
activities at the value stream
 Provide the basis for facility layout
 Finally, it is helpful to eliminate waste

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 Value stream mapping (VSM) process symbols

Symbol Title Symbol Title

Supplier or Customer Dedicated Process

Shared Process Data Box

Work Cell

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 Value stream mapping (VSM) material symbols

Symbol Title Symbol Title

Inventory
Shipments

Material Pull Push Arrow

Supermarket Safety Stock

FIFO Lane External Shipment

(Receiving or Shipping)

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 Value stream mapping (VSM) information symbols

Symbol Title Symbol Title

Verbal Information MRP/ERP

Sequenced Pull Production Control

Electronic Go See Scheduling

Information
Manual Information Load Leveling

Signal Kanban Kanban Post

Production Kanban Withdrawal Kanban

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 Value stream mapping (VSM) general symbols

Symbol Title Symbol Title

Kaizen Burst Human Operator

Other Information Timeline

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 Steps in VSM

Identification of Product Family

Current State map
Data collection and analysis
Future State map
Implementation

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 Current State Map
The Steps

Step 1: Select a Product Family

Step 2: Form a Team
Step 3: Understand Customer Demand
Step 4: Map the Process Flow
Step 5: Map the Material Flow
Step 6: Map the Information Flow
Step 7: Calculate Total Product Cycle Time
Step 8: Detail Off-Line Activities
 Current State Map
Step 1: Select a Value Stream (Product Family)

 Define value stream (product family)

– Identify value stream from the customer end
– Product should pass through similar processes and common
equipment
– Door-to-door in scope (within plant walls)

 List part numbers

 Current State
Step 2: Form a Team

 Select a cross-functional team

 Select team members Sensei
Industrial
Engineering

who are familiar with

the product
Product
Manufacturing Engineering
Cross Functional
Team

 Ensure that team Maintenance

PC & L
members are trained in the
use of VSM Leadership

 Designate a champion (typically a line manager)

THIS IS CRITICAL
 Current State Map
Step 3: Understand Customer Demand

 Plan for Every Part Customer

 Production
Control
Demand/month:
Part A =
Part B =

(monthly/weekly forecasts) Part C =

# of shifts =

 Production history (day-to-day, month-to-month

variation)
 Sales (product changes, new business, etc.)
 Current State Map

Customer

Demand/month:
Part A =
Part B =
Part C =
# of shifts =
Stamping Welding Assembly Shipping

Takt = Takt = Takt = Inventory

C.T. = C.T. = C.T. = Part A =
D.T. = D.T. = 20% D.T. = Part B =
FTQ = FTQ = FTQ = 90% Part C =
C/O Time = 4 hrs. C/O Time = C/O Time = # of shifts =
Lot Size = Lot Size = Lot Size =
# of Shifts # of Shifts # of Shifts
WIP = WIP = WIP =

Changeover
Downtime FTQ
 Current State Map
Step 5: Map the Material Flow

Customer

Supplier
Demand/month:
Part A =
Part B =
Part C =
# of shifts =

2 x/ 2 x/
week day

Shipping
Stamping Welding Assembly

I I I I
1,200 pcs 1,500 pcs 800 pcs 500 pcs
Takt = Takt = Takt = Inventory
C.T. = C.T. = C.T. = Part A =
D.T. = D.T. = 20% D.T. = Part B =
FTQ = FTQ = FTQ = 90% Part C =
C/O Time = 4 hrs. C/O Time = C/O Time = # of shifts =
Lot Size = Lot Size = Lot Size =
# of Shifts # of Shifts # of Shifts
WIP = WIP = WIP =

Changeover Downtime FTQ

Supplier
Current State Map Customer

Step 6: Map the Information

Part A =Flow
Demand/month:
705 pcs.

Part B = 600 pcs.

PC & L Part C = 1650 pcs.
# of shifts =
6 week rolling forecast
Weekly Order
6 week rolling forecast Weekly Order

Daily Ship Schedule

2 x/
week 2 x/
Weekly Build Schedule day

Stamping Welding Assembly Shipping

I
1,200 pcs
I
1,500 pcs
I
800 pcs
I
500 pcs
Takt = Takt = Takt = Inventory
C.T. = C.T. = C.T. = Part A = 750 pcs
D.T. = D.T. = 20% D.T. = Part B = 600 pcs
FTQ = FTQ = FTQ = 90% Part C = 1650 pcs
C/O Time = 4 hrs. C/O Time = C/O Time = # of shifts =
Lot Size = Lot Size = Lot Size =
# of Shifts # of Shifts # of Shifts
WIP = 25 pcs. WIP = 60 pcs. WIP = 550 pcs.

Changeover Downtime FTQ

Supplier
Demand/month:
Part A = 705 pcs.
Weekly Build Schedule
Part B = 600 pcs.
Part C = 1650 pcs.
# of shifts =

Step 7: Calculate Total Product Cycle Time

2 x/ 2 x/
week day

Stamping Welding Assembly Shipping

I
1,200 pcs
I1,500 pcs I
800 pcs I500 pcs
Takt = Takt = Takt = Inventory
C.T. = C.T. = C.T. = Part A = 750 pcs
D.T. = D.T. = 20% D.T. = Part B = 600 pcs
FTQ = FTQ = FTQ = 90% Part C = 1650 pcs
C/O Time = 4 hrs. C/O Time = C/O Time = # of shifts =
Lot Size = Lot Size = Lot Size =
# of Shifts # of Shifts # of Shifts
WIP = 25 pcs. WIP = 60 pcs. WIP = 550 pcs.

Changeover Downtime FTQ

.4 days .5 days .27 days .17 days

TPc/t = 2.5 days
.008 days .02 days .18 days 1.0 days
 Current State Map
Step 8: Detail Off-Line Activities

 Show on the map using general icons

 Detail
on another sheet using either reference
VSM and/or process flow-charting

Press Room

Fork Truck

Die Bench
Die Room Die Room
Receiving Shipping
(Remove from
Schedule
I I Board)
Dies Dies
12 shifts 2 shifts

Schedule Board
(Forecast)
Data Collection
 Data Collection
Attribute Data to Collect

 Shipping/Receiving  Work-in-process
schedules inventory
 Pack sizes at each  Overtime per week
process

  Process cycle times

Demand rates by process
(Takt Time)
 Number of product variations at
 Working hours and breaks each step

  Batch (lot) sizes

 Scrap
Inventory Points (location
& size)  Changeover times
 Rework
 How Operations are  Changeover
 Downtime
scheduled frequencies
 Data Collection
Data Box

Tailor the
data box for
your plant’s
ox
needs.
a B
at The data box
D should be
open ended
to allow for
additional
attributes.
 Data Collection
What is Takt Time?

Takt Time is the rate at which production

should run to meet customer demand
The idea is to synchronize the pace of
production to the pace of sales.
Your Operating Time per Shift
Customer Requirement per Shift

27,000 sec = 59 sec 59 sec.

460pieces
59 sec.

59 sec.
 Data Collection
How to Calculate Takt Time?

1. Determine Total Customer Requirements for the

affected process.
2. Determine the Scheduled Runtime (S.R.) for the
affected process:
Scheduled Runtime = (Effective Minutes) - (Planned Downtime)
Effective Minutes = (minutes per shift) - (approved breaks)
Planned Downtime is the amount of time an operation is down
for scheduled reasons.

3. Calculate Takt Time:

Scheduled Runtime
Takt Time =
Total Customer Requirements
 Data Collection
Identify Opportunities for Improvement

?
 Design Future State - Purpose
Purpose

 Define how the plant will

operate in the future

 Serve as the blueprint

for implementation

Without it, the Current State Map is

nothing more than wallpaper !
 Future State Map
The Steps

Step 1: Validate Customer Demand

Step 2: Draw the Future State Process Flow
Step 3: Map the Future State Material Flow
Step 4: Map the Future State Information Flow
Step 5: Calculate Total Product Cycle Time
Step 6:
Detail Off-Line Activities
Step 7: Outline a Plan
 Future State Map
Step7: Outline a Plan
Original Condition Future Condition
Inj: 2 MSS MSS
I Molding

Change I
Over

2
Sender
Ass’y
2 I 2 Level
I Fuel Pump No Flow 2
Ass’y I Inj: Sender ABABA. . .
Molding Ass’y
Attendance Labels Staging
by Truck

10 Tank 4 Ass’y
Stamping I Ass’y Plants 10
Tank 4 Ass’y
Stamping Ass’y card Plants
No Flow
by
Change
Over 12 card
Uptime
7
(Pitch = 14 Units)

Cycle-Time Driven. Batches. Perform to TAKT & Pitch. Zone Maintenance & Fast Response

Produce to Order

Load Leveling and Pull

METRICS Activity
1999 2000
1ST 2ND 3RD 4TH 1ST 2ND 3RD 4TH
Item Current Target
Establish TAKT & Flow in Tank Ass'y
Total product cycle time
Stamping Changeover Reduction
Parts / Person Hour Reduce Stamping Buffer
Delivery Performance Move Ass'y to Plant 10
Establish TAKT & Flow in Sender Ass'y
Inventory (days)
Pull To Sender Ass'y
Overtime
Uptime Training
 Thank you

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