House Building Game

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Lean Operations (JIT) Module

• House Building Game
• The transition to Lean Ops
• The Paradigm of Lean Operations The ideal
• Basic philosophy of Lean Ops
• Methods for synchronization waste reduction
• Approaching the ideal with Product Variety TPS
• Managing variety flexibiltiy
• Toyota Production System (TPS)

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KEEP DESKS CLEAR!

• Only need a pen or pencil.
• Please keep desks and aisles clear of notebooks,
  PCs, backpacks etc.
• Please do not disturb materials!

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HouseBuilding.com Manufacturing Operations
Production Control
(color sheets, log sheets, scissors)
Base Punch
(scissors)
Roof
Base Form
(scissors)
Base Weld
(stapler)
Final Assembly
(tape)
Quality Control
Customer
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Production Control Operating Procedures

• Prepare a batch of 4 units.
• Cut each sheet (one at a time) into two roof and
  base.
• Write the batch number on the roof and the base.
  All items in the same batch have the same number.
  The numbers have to match in assembly.
• Repeat 4 times, which yields one batch
• When 4 units (one batch) are complete, release
  the batch.
• Put the batch in your out-basket its ready for
  pickup by the trucker.
• Record release time for each batch.
• Release one batch each minute.

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Truckers Operating Procedures

• Truckers are responsible for transporting work in
  process inventory between production steps.
• You can carry only one batch of 4 roofs or 4
  bases at a time. Not both!

Production Control
(color sheets, log sheets, scissors)
Base Punch
(scissors)
Roof
Base Form
(scissors)
(scissors)
Base Weld
(stapler)
Final Assembly
(tape)
Quality Control
Customer
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Roof Operating Procedures

• Cut the roof along double lines, one at a time.
• Fold roof along dotted line at top. Think
  quality!
• Work in batches of 4 units.
• When a batch is ready, call the trucker and send
  to Final Assembly.
• Ask trucker for inputs when needed.

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Base Cut Operating Procedures

• Cut the base along double lines, one at a time.
  Think quality!
• Work in batches of 4 units
• When a batch is ready, call the trucker and send
  to Base Form.
• Ask trucker for inputs when needed.

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Base Form Operating Procedures

• Fold the lines on the base (4 folds).
• Work in batches of 4 units
• When a batch is ready, call the trucker to send
  them to Base Weld.
• Ask trucker for inputs when needed

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Base Weld Operating Procedures

• Staple base on top and bottom about ¼ inch from
  the edge.
• Work in batches of 4 units.
• When a batch is ready, call the trucker to send
  them to Final Assembly.
• Ask trucker for inputs when needed.

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Final Assembly Operating Procedures

• Tape the roof to the base (2 tapes).
• Work in batches of 4 units.
• When a batch is ready, send them to QA. (No
  trucker required.)
• Ask trucker for inputs when needed.

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Quality Assurance Operating Procedures

• Check each batch if they conform to quality
  standards!
• If the house conforms to quality standards, put
  it on the market. Once on the market no more
  rework!
• Customers can reject houses

• Quality Standards
• Batch numbers must match.
• Folds and cuts should be along appropriate lines.
• Folds should be crisp and cuts should be
  straight.
• Roof should be centered and door should be
  visible.
• Top of base should be flush with roof.
• Staples and tape should be centered and parallel
  to the ground.
• Not too much tape. About one inch.
• Staples about ¼ inch from edge.

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HouseBuilding.comImproved Operational
Performance
Flow time T
Quality Q R/ Ro
Inventory I
Output Ro
Input Ri
Sales R
House 1 To - Ti T
House 16 To - Ti T
Team (color)
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Lean Operations (JIT) Module

• House Building Game
• The transition to Lean Ops
• The Paradigm of Lean Operations The ideal
• Basic philosophy of Lean Ops
• Methods for synchronization waste reduction
• Approaching the ideal with Product Variety TPS
• Managing variety flexibiltiy
• Toyota Production System (TPS)

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Paradigm of Lean Operations In Search for the
Holy Grail

• The ideal Process
• Synchronization of all flows
• 1 x 1
• production on demand
• defect free
• At lowest possible cost
• Waste Gap between ideal and actual
• How do we set up a system to continually reduce
  waste ?

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Toyotas waste elimination in Operations

• 1. Overproduction
• 2. Waiting
• 3. Inessential handling
• 4. Non-value adding processing
• 5. Inventory in excess of immediate needs
• 6. Inessential motion
• 7. Correction necessitated by defects

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Process Change 1 Functional vs. Cell Layout
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Managing Flows the Process View

• By rethinking the IBM Austin assembly plant and
  introducing cells, distance traveled by a card
  was cut from 1.5 miles to 200 yards. Floor space
  was reduced to half and production tripled with
  about the same number of workers.

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Teams in Cells and Lean Ops

• Advantages
• Consistent with the moral ideal of autonomy.
• Empowers the workforce through participation and
  autonomy in managing daily activities
• Gives unprecedented responsibility to workers
• Immediate and impartial feedback of problems
• Investigation of process improvements
• Monitoring quality
• They also gain better understanding of the
  process
• Challenges
• Less WIP means more tight coupling and less
  autonomy
• Rigid procedures and interdependence of cells
• From monthly 30-day goals before to 3-minute
  goals now
• Does not leave much room for variability

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Process Change 2 Cut Batch Sizes
Machine 1 1unit/min
Machine 2 1 unit/min
Batch Size 4 units
Batch size 1 unit
M1
M2
M1
M2
0 1 2 3 4min 5
0 1min 2 3 4 5
M1
M2
1
1
1
1
1
1
1
1
4
1
1
8min
4
4
12min
16 min
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Process Change 3 Push vs. Pull (Just-In-Time
operations)

• JIT have exactly what is needed, in the
  quantity it is needed, when it is needed, where
  it is needed.
• hand-to-mouth material flow
• needed by whom?

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Process Change 3 Push vs. Pull
Push
Rout
No Limit
Pull
Limited I
Rout
Rin
Product flows
Information Flows
How much I? What is the role of I?
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THE DICE GAME
INPUT Buffer
OUTPUT Buffer
Unfair Dice which rolls into either 3 or 4
6 Face Fair Dice
Average Capacity of Each Step
Average Capacity of Each Stage
Average Process Capacity
Average Capacity of The Process
Play The Game
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Reducing waste Increase Problem Visibility Lower
the Water to Expose the Rocks
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Sample results from Match Game
Reporting average output per round after 200
rounds given that system starts with given
inventory in every buffer.
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The impact of inventory and variability Output
of Match Game
2-face die (s0.7)
6-face die (s1.9)
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Time plays the role of Inventory in Lean Service
Operations
TIME
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Take-AwaysBasics of Lean Operations

• Paradigm of Lean Operations
• Strive for the ideal by eliminating waste
• Synchronize
• Layout Cellular operations
• Reduced batch sizes 1x1
• JIT
• Pull production control systems (vs. push)
• Improve
• Increase problem visibility (river analogy)
  Reduce buffering gradually
• Implementation
• Control Inventory by Kanban

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Toyota Production System
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TPS Best Implementations of Lean Ops Integrated
- Dynamic - Pragmatic
Discipline Follow Standard Operation Procedures
Update the operating procedures Move closer to
the ideal
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How to run Lean Operations Managing Variety

• Monthly Production Requirement

Model
Sedan
Station
Wagon
Quantity
10,000
5,000
How should production be scheduled for the
month?
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Synchronize Heijunka Mixed Level/Balanced
Production
Batch Production Schedule Mixed Production
Schedule (AAAABBBB..) (ABAB...) Product
Apr/12.................15.......................
....30 Apr/12...................
.15.......................30 A B
FGI
Change over
time
Which one is better for the supplier?
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Reducing Waste Reduced Setup Times

• What happens if we have long setup/changeover
  times?
• How do synchronized production with variety
  (product mix)?

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Synchronize Heijunka Uniform Plant
Loading/Planning

• This does not mean building a single product.
• Rather
• maintain a stable mix of products
• and firm frozen schedules based on actual orders
  from the dealers
• Benefits Good Flow, Low inventory
• Costs Must reduce changeover costs

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Synchronize HeijunkaInvolve Supplier
Supplier
seats
sequence info
PAINT SHOP
Batch Process
350 work stations cycle time 57 secs takt time
Seat Installation
350 x 57 secs 5.54 hrs
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What is the cost of pulling the cord?

• 12 pulls / member-shift
• 1 stop /member-shift
• 30 stops/ shift
• Min 85 max 95 run ratio
• ? Out of 450minutes/shift ? 4500.15 67.5
  minutes (mx. stopping time)
• 4500.0522.5 minutes (min. stopping time)

22.5 minutes / 30 0.75 min/stop 67.5/30 2.25
min/stop
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What is the cost of pulling the cord?

• 1 to 3 cars Are we loosing this production?
• Overtime costs per cycle (57 secs/car)
• 17/hr 1.5 (overtime) 57secs/(60min60sec)
• 0.425/member-car
• 30 members 12.75 /car
• 3 cars . 37

Is it expensive ? Depends!! 1 station or the
whole production line!
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TMM Inc.
What is the real problem at Kentucky? The
circle is broken! Time between the occurrence of
the problem and the awareness of the problem
separated! No jidoka tool in place to create
visibility to determine the root cause for the
seat problem.
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Lean Plant Floor Organization
Superintendent
Group Leaders
Team
Team
Leader
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Organization in Lean Operations
Empowerment Programs
Involvement
QC Circles
Programs
Suggestion Programs
Human
Rewards and Recognition
Resources
Employee Development
Management
Employees as Citizens
Standardized Work/Kaizen
JIT/JIDOKA Respect for People
Work Systems
Responsibility pushed down
Examples
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Leadership Three Models
Old Dictator Style Do it my
way Empowerment Style Do it your
way Lean Style Follow me
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Knowledge Dissemination at ToyotaToyota Global
Production Center

• Facility opened (GPC) opened in July 2003 with
  the mission of rapidly training large number of
  mid-level plant managers from overseas and Japan
  in best practices.
• New facility trains experts to support Toyotas
  expanding scale of global manufacturing.
• Traditional approach was use a mother plant to
  spread out best practices. This approach leads
  to variability in skill levels.
• Goal is to use a global manufacturing network
  that can produce high quality products
  consistently and can easily handle model shifts
  at far flung factories.

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Training for New Models
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Training for New Models
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Reducing Waste by Quality at the Source
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Reducing Waste by Visibility Quality at the
Source
Tools

• Fool-proof/Fail-safe design (Poka-Yoke)
• Inspection (Jidoka)
• Self
• Automated
• Line-stopping empowerment (Andon)
• Human infrastructure

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Final words on TPS

• TPS is a dynamic production management system
  that aims for the ideal through continuous
  improvement.
• Includes, but goes way beyond JIT.
• Pillars
• Synchronization through JIT Heijunka
• Quality at Source through Jidoka
• Continuous Improvement (Kaizen) through
  empowerment, visibility stress

....
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Learning Objectives Lean Operations

• Lean Operations A methodogical way to
  approaching the Ideal and reduce waste
• Tools
• Efficient Workflow Cellular Layout
• Pull system JIT (by using KANBANS)
• 1X1
• Level Mixed Production Heijunka
• Quality at the Source by using Jidoka Tools
• Continuous Improvement Kaizen through Change
  Management and Empowerment