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Chapter 12
Lean Production
OBJECTIVES
Lean Production Defined
The Toyota Production System
Lean Implementation
Requirements
Lean Services
Lean Production
An integrated set of activities
designed to achieve high-volume
production using minimal
inventories (raw materials, work in
process, and finished goods)
Involves the elimination of waste in
production effort
Involves the timing of production
resources (i.e., parts arrive at the
next workstation “just in time”)
Here
Herethe
thecustomer
customerstarts
starts
the
theprocess,
process,pulling
pullingan
an Pull System
inventory
inventoryitem
itemfrom
from
Final
FinalAssembly…
Assembly…
Then
Thensub-
sub-
Fab Vendor
assembly
assemblywork
workisis
pulled
pulledforward
forwardbyby
that Sub
thatdemand…
demand…
Fab Vendor
Final
Customers
Assembly
The
Theprocess
processcontinues
continues Sub Fab Vendor
throughout
throughoutthe
theentire
entire
production
productionprocess
processand
and
supply
supplychain
chain
Fab Vendor
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6
• Employee participation
• Industrial engineering/basics • Stable environment
• Continuing improvement
• Total quality control
• Small lot sizes
Some
Someplants
plantsin
in
Japan
Japanhave
haveasas
Coordination few
fewas
as30
30and
andasas
System Integration many
manyasas1000
1000
employees
employees
Heat Treat
Minimizing Waste:
Group Technology (Part 2)
Revising
Revisingby
byusing
usingGroup
GroupTechnology
TechnologyCells
Cellscan
canreduce
reducemovement
movementand
and
improve
improveproduct
productflow
flow
Grinder
1 2
Saw Lathe Lathe Press
Heat Treat
Grinder
Saw Lathe A B Lathe Press
Minimizing Waste:
Quality at the Source
Minimizing Waste:
JIT Production
manufacturing
Low inventory, ordered only as
needed
Scrap Vendor
delinquencies Change
Inventory
Work in
orders
process
queues Engineering design Design
(banks) redundancies backlogs
Work in
orders
process
queues Engineering design Design
(banks) redundancies backlogs
Example: By identifying
Paperwork Inspection Decision defective work by
backlogs employees upstream, the
backlog backlogs
downstream work is
saved
Minimizing Waste:
Uniform Plant Loading (heijunka)
Suppose
Supposeweweoperate
operateaaproduction
productionplant
plantthat
thatproduces
producesaasingle
single
product.
product. The
Theschedule
scheduleofofproduction
productionfor
forthis
thisproduct
productcould
couldbe
be
accomplished
accomplishedusing
usingeither
eitherof
ofthe
thetwo
twoplant
plantloading
loadingschedules
schedules
below.
below.
Storage Storage
Machine Part A Part A Assembly
Center
Line
Production kanban
Material Flow
The process begins by the Assembly Line
people pulling Part A from Storage Card (signal) Flow
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19
DL(1 + S )
=
C
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 lead time
C = Container size
DL (1+ S ) 5(2)(1.1)
= = = 2.75, or 3
C 4
Underutilize capacity
Demand pull
Backflush
Frequent deliveries
Quality expectations
Stores
Transit
Carousels
Conveyors
Quality expectations
Root cause
Solve permanently
Team approach
Line and specialist responsibility
Continual education
Emphasize improvement
Track trends
2. Upgrade Housekeeping
3. Upgrade Quality
Question Bowl
Lean Production seeks to achieve high
volume production using which of the
following?
a. Minimal inventory of raw materials
Question Bowl
In the Toyota Production System,
the “elimination of waste”
involves which of the following?
a. Overproduction
b. Waiting time
c. Transportation
Question Bowl
In the Pull System the partner that begins
the process of “pulling” is which of the
following?
a. Customers
b. Vendors
c. Fabrication personnel
d. CEO
Answer: a. Customer
Question Bowl
A Lean Production program
requires which of the following?
a. Employee participation
d. Continuing improvement
Question Bowl
Inventory has been known to hide which
of the following production
problems?
a. Scrap
b. Vendor delinquencies
c. Decision backlogs
Question Bowl
You want to determine how many kanban card
sets you need for an operation. You find
that average number of units demanded is
1,000 per hour, the lead time to replenish the
order for this item is 10 hours, the container
size is 10 units, and the safety stock is
estimated to be 5% of the expected demand.
Which of the following is the desired number
of kanban card sets?
a. 1050
b. 1000
c. 605
d. 500
e. None of the above
Answer: a. 1050 ([1000x10](1+0.05)/10=1050)
Question Bowl
When trying to implement Lean
system a “stabilized schedule”
includes which of the following?
a. Demand pull Answer: e. None of
the above (These
b. Backflush
include: level
c. Fail-safe methods schedule,
underutilization
d. All of the above
capacity, and
e. None of the above establish freeze
windows.)
End of Chapter 12