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The First Revolution


You can make a pin

Adam Smith observes that a pin can be made by: 0ne person: to perform all the operations himself with all the basic tools Through ten persons

Ten persons are deployed

Worker one: Draws out a wire Worker 2: straightens it Worker 3: cuts it to size Worker 4: points it at one end Worker 5: grinds it at top to receive head Worker 6: Put the head on( stroke one) Worker 7: Put the head on( stroke two) Worker 8: Deburr Worker 9: Whiten it Worker 10. Pack( on paper) Ten persons can make close to 40,000 to 48,000 pins per day

Advantages to use ten persons Productivity per person Low cost Dexterity Time saved Invention of tools, machines, working procedure Uniformity

Principles of Taylorism Simplification Division of work Division of labour Standardization Sequential process

Taylor-Ford Philosophy (Sorensen Fords first president: My 40 years with Ford )

Later day perfection by

Alfred Sloan at GM One division each for Chevrolet, Pontiac, Buick, Oldsmobile, Cadillac Pushed GM to the top.

First revolution Resulted in birth of :

Mass production( vast production) Automation Mechanisation Large batch sizes without change of tools/dies Assembly line flow Vertical integration Centralized controls Strong Systems and procedures

Low cost Standardisation of products and services Birth of brand Birth of multiple units Recognition to the company( against craftsmanship) Specialization Perfection of skills Better customer service in delivery, repairs

Planning Inventories Warehouses Internal coordination Integration with suppliers Low variety Low flexibility Delayed reaction to market

The second Revolution

Toyota Production System

Toyota Production System ( Taiichi Ohno, VP Toyota Motor Company 30 years)

Absolute Elimination of Waste

through Leveling of production

7 Wastes of Ohno
- waste from over production, -waste of waiting time , -transportation waste, -processing waste, -inventory waste, -waste of motion, and -waste from product defects

Waste Elimination Methods

Sr. No 1 2 Waste type Overproduction waiting Elimination methods Reduce batch size, improve forecast, Smooth workflow, even loads

4 5 6. 7

Process Stocks, inventories Motion Product defects, parts defects

Redesign layouts, FTL, near to markets

Assess product and process needs Reduce set-up times, reduce lead times, reduce bullwhip effect Work study, Create skills ,capabilities, competencies

Two Pillars of Waste Elimination

JIT Autonomation

JIT : the Origin

JIT has origins in Japanese word HIT H: Hit suyo na mono O (What is needed) I : Iru toki iru dake (When it is needed and in what quantity) T: Tsukuru ( Make) Elements of JIT were being used by Japanese industry since 1930s. However, the same got refined only in 1970s when Tai-ichi Ohno V P ( Production) Toyota Motors used JIT to take Toyota cars to the heights of delivery time and quality

Right parts reach assembly when these are needed with Flow to approach zero inventory

JIT: The Essence of Toyota System

JIt Is Both A Philosophy And A Production Management System. As philosophy key issues are - simplicity, - Baka Yoke - Waste elimination - total involvement ( Quality Circles), - continuous improvement(Kaizen) - Visibility ( Andon)

JIT as a System
As a system, it becomes a collection of techniques and methods for - small batch production, - quality management,( CWTQ) - Total Productive Maintenance ( TPM), and - Production planning

JIT Production
a. Backward Flow Subsequent process withdraws from the preceding process exactly what it needs when it needs it The preceding process produces exactly the same quantity as it is withdrawn We climb further and further up the production flow, ultimately the flow is reversed, not cut off.

b. Information flow; It begins in the market

place. Source of the information is always the customer and not the plant. Kanban is information and is a signaling system to regulate JIT flows c. Responding individually to individual orders: Customer preferences are becoming more diverse, more personalized and more rigid. Customers differ and base their products on personality. Supplying the same product in same way will only generate useless inventory

c. Pull system: Pull system throughout the plant. Producing what is needed and no more When all queues are driven to zero, inventory is minimized, lead times are shortened Under JIT, ideal lot size is One Typically one tenth of a days production is a lot size Exposes hidden problems of production

d. Zero inventory is non-sense Elimination of inventories means shortages of goods and poor customer service The goal at Toyota is to level the flow. Toyota strives to have needed quantities at needed time

Pre-requisites of JIT
1. A strong, reliable, dedicated, quality and delivery conscious vendor support 2. A highly committed, motivated, flexible, multi-skilled efficient workforce 3. A developed logistics support 4. Decentralized system of authority, transparency and visibility of systems, procedures, performance-orientation through established performance evaluation

1. An advanced communication system 2. Readiness of the organization at all levels to go for change 3. Stable demand 4. Active use of other instruments: Kanban , Andon, Kaizen, Poka Yoke, SMED, TQM(CWQC),TPM.

Limitations of JIT
Cannot respond rapidly to major changes in product, process, technology Not suitable for customized products or engineered products calling for new designs Suitable when materials and components are available in quality and quantity and on time delivery

Small vendors for better coordination and controls Responsible, flexible, committed work force Established work culture Large set up to support small lot sizes

Bring the human touch to the machine so as to prevent the problem Automatic stoppages Boka yoke- fool proofing system

Resulted in concepts of: Have a worker when you need a worker. Multi-skills operators One operator multi-machines Andon Safe operations