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Toyota Production System
           & Lean Tools
                                          BGI MGT-564 Sustainable Operations
                                               Collaborate Session #4
                                                    Feb 1, 2012



                       Note: This SlideCast has Audio. Please turn your speakers on!

Bill Costantino, Lean Mfg                                                              Feb 1, 2012
616-891-7578 EBCostantino@earthlink.net
                                                          1                               SW 2-Day Training
MGT 564 - First Day of Class Roadmap
MGT 564 - First Day of Class Roadmap




         MRP                           Waiting Lines
                          Operations
   Inventory Management
                            Tools               Forecasting
MGT 564 - First Day of Class Roadmap




                  Kanban                5S
               Waste         Lean      Standard
                                          Work
            One Piece Flow   Tools         Takt Time

         MRP                            Waiting Lines
                          Operations
   Inventory Management
                            Tools                Forecasting
5S




Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                          5   SW 2-Day Training
History of 5-S … Yes, Japan.
               SEIRI - Sense of Use (eliminate from the work place
                                          everything not required to perform the work)
               SEITON - Sense of Ordinance (efficient placement and
                                            arrangement of equipment and materials)
               SEISON - Sense of Cleanness (tidiness and cleanliness)
               SEIKETSU - Sense of Health (ongoing, standardized,
                                               continually improving „seiri‟, „seiton‟, „seison‟)
               SHITSUKE - Sense of self-discipline (discipline with
                                               leadership)

Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                                              6                                 SW 2-Day Training
GILL




Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                                 7   SW 2-Day Training
To Be
                                          Tool and WIP Board
         Ordered                                               Spec Card

    In Process

      Next Run

 Maintenance
    Log
     &
 Maintenance
Request Forms




Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                                 8                 SW 2-Day Training
Organize & Demand the Maintenance of Tools




Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net   Everything has a Dedicated Home
                                                         9                  SW 2-Day Training
Operating Room Orderliness
   Pit Crew Efficiency




Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                          10   SW 2-Day Training
A place for everything and
                  everything in its place, clean and
                           ready for use




Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                          11           SW 2-Day Training
The Next Step - Visual Factory
         Ability to understand the status of a
          production area in 5 minutes or less
          by simple observation without use of
          computers or speaking to anyone.

         Provides the ability for workers to make
          decisions / take actions based solely on
          the status of visual indicators.


Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                          12         SW 2-Day Training
Replacement Part                   Maintenance
           Kanban




                                          Addresses
Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                               13       SW 2-Day Training
Establish Method of Ordering
                                                      and
                                           Tracking Replacement Parts




Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                                       14                SW 2-Day Training
Visual Control of Seasonal Inventory




Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                          15    SW 2-Day Training
Visual scheduling boards




Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                          16   SW 2-Day Training
Takt Time




Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                          17   SW 2-Day Training
Standardized Work is
                                            only one part of a
                                             fully integrated
                                          manufacturing system
Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                                   18            SW 2-Day Training
   Lean Philosophy
                           Customer First
                                No       defect shall be passed to the “customer”

                           People Are The Most Important
                            Asset
                                People’s     ingenuity will eliminate waste and
                                    lead to a better job

                           Continuous Improvement
                                There        is always more to improve

                           Shop Floor First
                                The      shop floor is where value is added
Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                                         19                        SW 2-Day Training
Lean Manufacturing

                       “All we are trying to do is

                              shorten the lead time…”

                                               Taiichi Ohno




Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                          20                  SW 2-Day Training
Lean Manufacturing
          is a manufacturing philosophy which shortens the time line between the
           customer order and the product shipment by eliminating waste.




Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                             21                                 SW 2-Day Training
Lean Manufacturing
          is a manufacturing philosophy which shortens the time line between the
           customer order and the product shipment by eliminating waste.

                    Business as Usual
                          Customer         Waste                     Product
                           Order                                    Shipment

                                           Time




Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                             22                                 SW 2-Day Training
Lean Manufacturing
          is a manufacturing philosophy which shortens the time line between the
           customer order and the product shipment by eliminating waste.

                    Business as Usual
                          Customer                    Waste              Product
                           Order                                        Shipment

                                                      Time
                    Lean Manufacturing

                            Customer                          Product
                             Order            Waste          Shipment

                                          Time (Shorter)
Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                                       23                          SW 2-Day Training
Product Leadtime
                   Raw Material
                   Production
        Waiting                                      Mixing                Packaging
                       Transportation      Staging            Inspection
                                                                                 Set-up




                                                      Time
             Raw                                                                Finished
             Material                                                           Parts

                                          = Value
                                           Added Time           Value Added Time is only a very
                                                                 small percentage of the Leadtime.
                                          = Non-Value
                                           Added Time
                                                                Traditional Cost Savings focused
                                           (WASTE)               on only Value Added Items.



Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                                                     24                       SW 2-Day Training
Traditional vs Lean Results
                                      Traditional Results of Manufacturing Improvement




                                                              Time

                                            Focused on Non-Value Adding Items



                                                              Time

                                                             Time               Small Amount of
                                                                                Time Eliminated




                                          Large Am ount
                                          of Tim e
                                          Elim inate d                 Time




Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                                                25                                SW 2-Day Training
Traditional vs Lean Results
                                      Traditional Results of Manufacturing Improvement




                                                                 Time
                                            Focused on Non-Value Adding Items




                                                                 Time
                                                                Time            Small Amount of
                                                                                Time Eliminated
                                                          Lean Results


                                          Large Am ount
                                          of Tim e
                                          Elim inate d                   Time




Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                                                   26                             SW 2-Day Training
Waste
                                          “Anything that adds Cost
                                               to the product
                                           without adding Value”



Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                                   27                SW 2-Day Training
7 Forms of Waste
                                                                   CORRECTION

                                                                         Repair or      MOTION
                                                   WAITING
                                                                         Rework      Any wasted motion
                                                Any non-work time                    to pick up parts or
                                                waiting for tools,                   stack parts. Also
                                                supplies, parts, etc..               wasted walking


                                                                         Types
                                          PROCESSING                       of          OVERPRODUCTION
                                                                                            Producing more
                                          Doing more work than           Waste              than is needed
                                          is necessary
                                                                                            before it is needed

                                                          INVENTORY
                                                   Maintaining excess         CONVEYANCE
                                                   inventory of raw mat‟ls,    Wasted effort to transport
                                                   parts in process, or        materials, parts, or
                                                   finished goods.             finished goods into or
                                                                               out of storage, or
                                                                               between
                                                                               processes.


Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                                                              28                                  SW 2-Day Training
Waste

                 •Waste is unclear, not defined
                 •Crisis corrections
                 •Reactive improvement


Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                                  29   SW 2-Day Training
Shift Mindset
                                                            Processing   Correction


                                                                                Over-

                     Waste                             Inventory
                                                                   Types
                                                                     Of
                                                                   Waste
                                                                              Production



                                                                             Material
                                                         Waiting             Movement
                                                                    Motion


                 •Waste is unclear, not defined
                                                       •Waste is tangible, well defined
                 •Crisis corrections
                                                       •Focus on “small” opportunities
                 •Reactive improvement
                                                       •Continuous improvement


Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                                  30                                    SW 2-Day Training
Better Utilization

                                                              Working Smarter through the
                                                                 Elimination of Waste
                            Work
                             Work         Waste
                                          Waste




                                                              Work
                                                              Work

                               New
                             Paradigm                Waste
                                                     Waste
                                                                          Work
                                                                         Work

                                              Work
                                              Work

                                                     Waste
                                                     Waste                       Waste
                                                                                 Waste




Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                                         31                              SW 2-Day Training
Three Components of Standardized Work

                                                     Takt
                                                     Time


                                                 Standardized
                                                     Work      Standard
                                            Work
                                                              In-Process
                                          Sequence               Stock




Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                                       32                  SW 2-Day Training
Takt Time
                    The production rate, in seconds, to satisfy
                                          customer demand.




Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                                33                SW 2-Day Training
Takt Time
                                        Amount of production time per shift
                                number of products needed by the customer per shift

                                          = amount of time to produce one product

                                                      Example :
                             7.5 hrs/shift x 60 minutes/hr x 60 seconds/min.
                                 450 products needed by customer/shift

                                                = 27,000 seconds/shift
                                                     450 products

                                             = 60 Second Takt Time
Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                                            34                        SW 2-Day Training
Cycle Time

                               The amount of time to process one unit
                               Includes human and machine work,
                                walking time, and waiting time
                               Determine by observing the actual time
                                to process one part



Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                                 35                      SW 2-Day Training
Takt Time and Cycle Time
                             If Takt Time and Cycle Time are not the same, an
                              imbalance exists in the operating system
                             If Cycle Time is less than or equal to Takt Time,
                              production will satisfy customer demand
                             If Cycle Time is greater than to Takt Time, production
                              cannot satisfy customer demand

                                                     Step C5
                                                                         Takt Time ( 60 sec )
                     60


                      50                             Step C4
                      40
                                 Step A4                                        Step E5
                                           Step B3   Step C3   Step D5
                      30         Step A3                                        Step E4
                                                               Step D4
                                           Step B2                              Step E3
                      20         Step A2             Step C2   Step D3
                                                               Step D2          Step E2
                      10                   Step B1
                                 Step A1             Step C1   Step D1          Step E1
                          0

                                     A       B         C         D                 E            Operators
Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                                      36                                           SW 2-Day Training
Takt Time and Planned Cycle Time
                        Takt Time is based ONLY on customer demand and
                         available minutes for production.
                        Planned Cycle Time is the required production rate
                         to satisfy customer demand allowing for scrap,
                         downtime, change-overs, inefficiency, or other losses
                         to production.
                                                    Step C5
                                                                        Takt Time ( 60 sec )
                60
                                                                        Planned Cycle Time ( 52 sec )
                  50                                Step C4
                  40
                            Step A4                                            Step E5
                                          Step B3   Step C3   Step D5
                  30        Step A3                                            Step E4
                                                              Step D4
                                          Step B2                              Step E3
                  20        Step A2                 Step C2   Step D3
                                                              Step D2          Step E2
                  10                      Step B1
                            Step A1                 Step C1   Step D1          Step E1
                     0

                                 A          B         C         D                 E            Operators
Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                                        37                                          SW 2-Day Training
Work Sequence
                Work Sequence refers to the series of steps in a single process that is
                fastest, most efficient, of acceptable quality, and safe. When the work
                sequence is carefully followed, the cycle time will be constant, no steps
                will be forgotten, and the chance of equipment damage or other major
                problems will be minimized.


     Poor                                                      Good


                         8                9   4   5                   10    9   8   7
                                                                                        6
                   10                                 1
                                                                      1                 5
                         7                6   3   2                        2    3   4




Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                                          38                                SW 2-Day Training
Standard In-Process Stock




Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                          39   SW 2-Day Training
Sample Standard Worksheet from Toyota




Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                                     40                    SW 2-Day Training
Stack Chart - Line Balance

                                                    Step C5
                                                                        Takt Time ( 60 sec )
                  60


                    50                              Step C4
                    40
                               Step A4                                         Step E5
                                          Step B3   Step C3   Step D5
                    30         Step A3                                         Step E4
                                                              Step D4
                                          Step B2                              Step E3
                    20         Step A2              Step C2   Step D3
                                                              Step D2          Step E2
                    10                    Step B1
                               Step A1              Step C1   Step D1          Step E1
                       0

                                   A        B         C         D                 E            Operators




Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                                      41                                           SW 2-Day Training
Stack Chart - Line Balance
                                                                                           Takt Time ( 72 sec )
                  70

                  60


                    50
                                                         50 sec
                    40                                                      48 sec
                                43 sec
                    30
                                          33 sec
                    20


                    10                                                                             15 sec
                       0


                               #1          #2            Cut &                  Glue              Tissue
                                                                                                                  Operators
                              Blank       Blank           Fold                  Up                Candy
                                                                                                   Pen


                                          Total Work Time         43 + 33 + 50 + 48 + 15
         Theoretical # Workers =                             =                               = 2.6 = 3 Workers
                                             Takt Time                     72

Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                                            42                                                      SW 2-Day Training
Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                          43   SW 2-Day Training
Stack Chart - Line Balance
                                                     Step C5
                                                                         Takt Time ( 60 sec )
                     60


                      50                             Step C4
                      40
                                 Step A4                                        Step E5
                                           Step B3   Step C3   Step D5
                      30         Step A3                                        Step E4
                                                               Step D4
                                           Step B2                              Step E3
                      20         Step A2             Step C2   Step D3
                                                               Step D2          Step E2
                      10                   Step B1
                                 Step A1             Step C1   Step D1          Step E1
                          0

                                     A       B         C         D                 E            Operators

                                                                         Takt Time ( 60 sec )
                    60

                                 Step D5   Step E4
                      50                             Step D1   Step E1
                                 Step A4   Step C1
                      40                                       Step D4
                                                     Step C4
                                           Step B3             Step D3
                      30         Step A3
                                           Step B2   Step C3   Step D2
                      20
                                 Step A2                                        Step E5
                      10                   Step B1   Step C2   Step C5          Step E3
                                 Step A1                                        Step E2
                          0

                                     A       B         C         D                 E            Operators
Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                                      44                                           SW 2-Day Training
One Piece Flow


                                          Just-In-Time
                                            Systems


Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                               45        SW 2-Day Training
Mass Production
                Material
                                                              Storage     Weld
                                            Storage


                          Receiving
                          Warehouse                      Assembly         Storage


             Shipping                     Storage                       Stamp
             Warehouse

       Value added time =
            minutes                                 Rework
                                                                          Storage
       Time in plant =
            WEEKS
Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                                         46                         SW 2-Day Training
Mass Production
                Material
                                                         Storage   Weld
                                          Storage

                              Two Big Problems
                           Receiving
                                   Assembly    Storage
                                 Large
                               Batch Production
                          Warehouse

          Shipping  Storage Flow
                       Poor
                                            Stamp
         Warehouse       Within processes

                        Between processes
        Value added time =
           minutes           Rework
                                                                   Storage
       Time in plant =
           WEEKS
Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                                    47                       SW 2-Day Training
Batch &                        Station B



                        Queue
                                          Station A               Station C




Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                          48                                  SW 2-Day Training
The Basic Philosophy of Lean Production




                                          HOW TO MANUFACTURE MOST
                                                ECONOMALLY:

                                           What is Needed (Sold)
                                           When it is Needed
                                           In the Amount Needed
                                           (with the Minimum Materials, Equipment, Labor and Space)



Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                                                 49                                   SW 2-Day Training
IDEAL = One Piece Flow

                  But This Assumes:
                   Equal Cycle Times
                   Physical Proximity of Processes
                   Highly Stable Processes
                   Little/No Changeover Time




Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                              50             SW 2-Day Training
Batch &                              Station B



                        Queue
                                               Station A                Station C




                    One Piece
                      Flow                                 Workcell




Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                          51                                        SW 2-Day Training
Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                          52   SW 2-Day Training
IDEAL = One Piece Flow
      But This Assumes:
      Equal Cycle Times
      Physical Proximity of Processes               Just-In-Time is
                                                       NOT a Zero
      Highly Stable Processes                      Inventory System.
      Little/No Changeover Time




Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                              53                    SW 2-Day Training
Kanban
     Tool for Real Time
                                                 Production Withdrawal Kanban
                                               Part #


                                                         11227T
     control of Materials
                                               Storage Area                        Address


                                               Flow Rack                           15C
                                               Description

                                               Left Hand Headrest Tube
                                               Quantity / Box

                                                        400
                                               Number of Cards:

                                                             _______ of ________
                                               Date Issued:
                                                                February 1, 2012




Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                          54                                       SW 2-Day Training
Lean Production: Model = TPS
                                          Goal: Elimination of waste.
                                                                         Customer
                                                                          Order




Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                                          55                  SW 2-Day Training
Lean Production: Model = TPS
                                          Goal: Elimination of waste.
                                                                         Customer
                                                                          Order




                                                                            FG
                                                                          Delivery




Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                                          56                  SW 2-Day Training
Lean Production: Model = TPS
                                          Goal: Elimination of waste.
                                                                         Customer
                                                                          Order




                                                                            FG
                                                                          Delivery




Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                                          57                  SW 2-Day Training
Lean Production: Model = TPS
                                          Goal: Elimination of waste.
                                                                      Kanban:
                                                                    Order to Make




                                                                        Replenish
                                                                        FG Taken




Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                                          58                        SW 2-Day Training
Production Withdrawal Kanban


      Production Instruction Kanban                    Production Withdrawal Kanban
                                                     Part #


                                                               11227T
                                                     Storage Area                        Address


                                                      Flow Rack                          15C
                                                     Description

                                                     Left Hand Headrest Tube
                                                     Quantity / Box

                                                              400
                                                     Number of Cards:

                                                                   _______ of ________
                                                     Date Issued:
                                                                      February 1, 2012




Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                          59                                              SW 2-Day Training
Lean Production: Model = TPS

                                                     Kanban:
                                                   Order to Make




                                                     Replenish
                                                       Parts
                                                      Taken



Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                                       60                SW 2-Day Training
Lean Production: Model = TPS
                                                     Production Withdrawal Kanban
                                                   Part #


                                                             11227T
                                                   Storage Area                        Address


                                                   Flow Rack                           15C
                                                   Description

                                                   Left Hand Headrest Tube
                                                   Quantity / Box

                                                            400
                                                   Number of Cards:

                                                                 _______ of ________
                                                   Date Issued:
                                                                    February 1, 2012




                                                Kanban:
                                              Order to Take




                                              Replenish
                                                Parts
                                               Taken



Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                                                                                 61   SW 2-Day Training
Lean Production: Model = TPS

                                   Kanban:
                                 Order to Make




                                          Replenish
                                            Parts
                                           Taken



Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                                      62                 SW 2-Day Training
Lean Production: Model = TPS
                    Production Withdrawal Kanban
                  Part #


                            11227T
                  Storage Area                        Address


                  Flow Rack                           15C
                  Description

                  Left Hand Headrest Tube
                  Quantity / Box

                           400
                  Number of Cards:

                                _______ of ________
                  Date Issued:
                                   February 1, 2012




         Kanban:
       Order to Take




        Replenish
          Parts
         Taken



Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                                                            63                 SW 2-Day Training
Lean Production: Model = TPS
                                                             Production Withdrawal Kanban
                                                           Part #


                                                                     11227T
                                                           Storage Area                        Address


                                                           Flow Rack                           15C
                                                           Description

                                                           Left Hand Headrest Tube
                                                           Quantity / Box

                                                                    400
                                                           Number of Cards:

                                                                         _______ of ________
                                                           Date Issued:
                                                                            February 1, 2012




                                                                                                         Information flow




                    Material flow



Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                                      64                                                                SW 2-Day Training
Lean Production: Model = TPS
                                                             Production Withdrawal Kanban
                                                           Part #


                                                                     11227T
                                                           Storage Area                        Address


                                                           Flow Rack                           15C
                                                           Description

                                                           Left Hand Headrest Tube
                                                           Quantity / Box

                                                                    400
                                                           Number of Cards:

                                                                         _______ of ________
                                                           Date Issued:
                                                                            February 1, 2012




                                                                                                         Information flow




                    Material flow


                                               Time                                                                 Cash
Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                                      65                                                                SW 2-Day Training
Lean Production: Model = TPS
                 Taiichi Ohno: “Reduce the time line by removing
                                non-value added wastes.”
                                                              Information flow




                    Material flow


                                               Time                      Cash
Bill Costantino, Lean Mfg
616-891-7578 EBCostantino@earthlink.net
                                                      66                     SW 2-Day Training
MGT 564 - First Day of Class Roadmap




                  Kanban                5S
               Waste         Lean      Standard
                                          Work
            One Piece Flow   Tools         Takt Time

         MRP                            Waiting Lines
                          Operations
   Inventory Management
                            Tools                Forecasting
MGT 564 - First Day of Class Roadmap


                               Kata
                          Heijunka   Muda

                               TPS
                   Genchi Genbutsu          Kaizen
                  Kanban                      5S
               Waste           Lean          Standard
                                                Work
            One Piece Flow     Tools             Takt Time

         MRP                                  Waiting Lines
                          Operations
   Inventory Management
                            Tools                      Forecasting

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Toyota Production System and Lean Tools

  • 1. Toyota Production System & Lean Tools BGI MGT-564 Sustainable Operations Collaborate Session #4 Feb 1, 2012 Note: This SlideCast has Audio. Please turn your speakers on! Bill Costantino, Lean Mfg Feb 1, 2012 616-891-7578 EBCostantino@earthlink.net 1 SW 2-Day Training
  • 2. MGT 564 - First Day of Class Roadmap
  • 3. MGT 564 - First Day of Class Roadmap MRP Waiting Lines Operations Inventory Management Tools Forecasting
  • 4. MGT 564 - First Day of Class Roadmap Kanban 5S Waste Lean Standard Work One Piece Flow Tools Takt Time MRP Waiting Lines Operations Inventory Management Tools Forecasting
  • 5. 5S Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 5 SW 2-Day Training
  • 6. History of 5-S … Yes, Japan.  SEIRI - Sense of Use (eliminate from the work place everything not required to perform the work)  SEITON - Sense of Ordinance (efficient placement and arrangement of equipment and materials)  SEISON - Sense of Cleanness (tidiness and cleanliness)  SEIKETSU - Sense of Health (ongoing, standardized, continually improving „seiri‟, „seiton‟, „seison‟)  SHITSUKE - Sense of self-discipline (discipline with leadership) Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 6 SW 2-Day Training
  • 7. GILL Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 7 SW 2-Day Training
  • 8. To Be Tool and WIP Board Ordered Spec Card In Process Next Run Maintenance Log & Maintenance Request Forms Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 8 SW 2-Day Training
  • 9. Organize & Demand the Maintenance of Tools Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net Everything has a Dedicated Home 9 SW 2-Day Training
  • 10. Operating Room Orderliness Pit Crew Efficiency Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 10 SW 2-Day Training
  • 11. A place for everything and everything in its place, clean and ready for use Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 11 SW 2-Day Training
  • 12. The Next Step - Visual Factory  Ability to understand the status of a production area in 5 minutes or less by simple observation without use of computers or speaking to anyone.  Provides the ability for workers to make decisions / take actions based solely on the status of visual indicators. Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 12 SW 2-Day Training
  • 13. Replacement Part Maintenance Kanban Addresses Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 13 SW 2-Day Training
  • 14. Establish Method of Ordering and Tracking Replacement Parts Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 14 SW 2-Day Training
  • 15. Visual Control of Seasonal Inventory Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 15 SW 2-Day Training
  • 16. Visual scheduling boards Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 16 SW 2-Day Training
  • 17. Takt Time Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 17 SW 2-Day Training
  • 18. Standardized Work is only one part of a fully integrated manufacturing system Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 18 SW 2-Day Training
  • 19. Lean Philosophy  Customer First  No defect shall be passed to the “customer”  People Are The Most Important Asset  People’s ingenuity will eliminate waste and lead to a better job  Continuous Improvement  There is always more to improve  Shop Floor First  The shop floor is where value is added Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 19 SW 2-Day Training
  • 20. Lean Manufacturing “All we are trying to do is shorten the lead time…” Taiichi Ohno Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 20 SW 2-Day Training
  • 21. Lean Manufacturing  is a manufacturing philosophy which shortens the time line between the customer order and the product shipment by eliminating waste. Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 21 SW 2-Day Training
  • 22. Lean Manufacturing  is a manufacturing philosophy which shortens the time line between the customer order and the product shipment by eliminating waste. Business as Usual Customer Waste Product Order Shipment Time Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 22 SW 2-Day Training
  • 23. Lean Manufacturing  is a manufacturing philosophy which shortens the time line between the customer order and the product shipment by eliminating waste. Business as Usual Customer Waste Product Order Shipment Time Lean Manufacturing Customer Product Order Waste Shipment Time (Shorter) Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 23 SW 2-Day Training
  • 24. Product Leadtime Raw Material Production Waiting Mixing Packaging Transportation Staging Inspection Set-up Time Raw Finished Material Parts = Value Added Time  Value Added Time is only a very small percentage of the Leadtime. = Non-Value Added Time  Traditional Cost Savings focused (WASTE) on only Value Added Items. Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 24 SW 2-Day Training
  • 25. Traditional vs Lean Results Traditional Results of Manufacturing Improvement Time Focused on Non-Value Adding Items Time Time Small Amount of Time Eliminated Large Am ount of Tim e Elim inate d Time Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 25 SW 2-Day Training
  • 26. Traditional vs Lean Results Traditional Results of Manufacturing Improvement Time Focused on Non-Value Adding Items Time Time Small Amount of Time Eliminated Lean Results Large Am ount of Tim e Elim inate d Time Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 26 SW 2-Day Training
  • 27. Waste “Anything that adds Cost to the product without adding Value” Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 27 SW 2-Day Training
  • 28. 7 Forms of Waste CORRECTION Repair or MOTION WAITING Rework Any wasted motion Any non-work time to pick up parts or waiting for tools, stack parts. Also supplies, parts, etc.. wasted walking Types PROCESSING of OVERPRODUCTION Producing more Doing more work than Waste than is needed is necessary before it is needed INVENTORY Maintaining excess CONVEYANCE inventory of raw mat‟ls, Wasted effort to transport parts in process, or materials, parts, or finished goods. finished goods into or out of storage, or between processes. Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 28 SW 2-Day Training
  • 29. Waste •Waste is unclear, not defined •Crisis corrections •Reactive improvement Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 29 SW 2-Day Training
  • 30. Shift Mindset Processing Correction Over- Waste Inventory Types Of Waste Production Material Waiting Movement Motion •Waste is unclear, not defined •Waste is tangible, well defined •Crisis corrections •Focus on “small” opportunities •Reactive improvement •Continuous improvement Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 30 SW 2-Day Training
  • 31. Better Utilization Working Smarter through the Elimination of Waste Work Work Waste Waste Work Work New Paradigm Waste Waste Work Work Work Work Waste Waste Waste Waste Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 31 SW 2-Day Training
  • 32. Three Components of Standardized Work Takt Time Standardized Work Standard Work In-Process Sequence Stock Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 32 SW 2-Day Training
  • 33. Takt Time The production rate, in seconds, to satisfy customer demand. Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 33 SW 2-Day Training
  • 34. Takt Time Amount of production time per shift number of products needed by the customer per shift = amount of time to produce one product Example : 7.5 hrs/shift x 60 minutes/hr x 60 seconds/min. 450 products needed by customer/shift = 27,000 seconds/shift 450 products = 60 Second Takt Time Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 34 SW 2-Day Training
  • 35. Cycle Time  The amount of time to process one unit  Includes human and machine work, walking time, and waiting time  Determine by observing the actual time to process one part Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 35 SW 2-Day Training
  • 36. Takt Time and Cycle Time  If Takt Time and Cycle Time are not the same, an imbalance exists in the operating system  If Cycle Time is less than or equal to Takt Time, production will satisfy customer demand  If Cycle Time is greater than to Takt Time, production cannot satisfy customer demand Step C5 Takt Time ( 60 sec ) 60 50 Step C4 40 Step A4 Step E5 Step B3 Step C3 Step D5 30 Step A3 Step E4 Step D4 Step B2 Step E3 20 Step A2 Step C2 Step D3 Step D2 Step E2 10 Step B1 Step A1 Step C1 Step D1 Step E1 0 A B C D E Operators Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 36 SW 2-Day Training
  • 37. Takt Time and Planned Cycle Time  Takt Time is based ONLY on customer demand and available minutes for production.  Planned Cycle Time is the required production rate to satisfy customer demand allowing for scrap, downtime, change-overs, inefficiency, or other losses to production. Step C5 Takt Time ( 60 sec ) 60 Planned Cycle Time ( 52 sec ) 50 Step C4 40 Step A4 Step E5 Step B3 Step C3 Step D5 30 Step A3 Step E4 Step D4 Step B2 Step E3 20 Step A2 Step C2 Step D3 Step D2 Step E2 10 Step B1 Step A1 Step C1 Step D1 Step E1 0 A B C D E Operators Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 37 SW 2-Day Training
  • 38. Work Sequence Work Sequence refers to the series of steps in a single process that is fastest, most efficient, of acceptable quality, and safe. When the work sequence is carefully followed, the cycle time will be constant, no steps will be forgotten, and the chance of equipment damage or other major problems will be minimized. Poor Good 8 9 4 5 10 9 8 7 6 10 1 1 5 7 6 3 2 2 3 4 Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 38 SW 2-Day Training
  • 39. Standard In-Process Stock Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 39 SW 2-Day Training
  • 40. Sample Standard Worksheet from Toyota Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 40 SW 2-Day Training
  • 41. Stack Chart - Line Balance Step C5 Takt Time ( 60 sec ) 60 50 Step C4 40 Step A4 Step E5 Step B3 Step C3 Step D5 30 Step A3 Step E4 Step D4 Step B2 Step E3 20 Step A2 Step C2 Step D3 Step D2 Step E2 10 Step B1 Step A1 Step C1 Step D1 Step E1 0 A B C D E Operators Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 41 SW 2-Day Training
  • 42. Stack Chart - Line Balance Takt Time ( 72 sec ) 70 60 50 50 sec 40 48 sec 43 sec 30 33 sec 20 10 15 sec 0 #1 #2 Cut & Glue Tissue Operators Blank Blank Fold Up Candy Pen Total Work Time 43 + 33 + 50 + 48 + 15 Theoretical # Workers = = = 2.6 = 3 Workers Takt Time 72 Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 42 SW 2-Day Training
  • 43. Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 43 SW 2-Day Training
  • 44. Stack Chart - Line Balance Step C5 Takt Time ( 60 sec ) 60 50 Step C4 40 Step A4 Step E5 Step B3 Step C3 Step D5 30 Step A3 Step E4 Step D4 Step B2 Step E3 20 Step A2 Step C2 Step D3 Step D2 Step E2 10 Step B1 Step A1 Step C1 Step D1 Step E1 0 A B C D E Operators Takt Time ( 60 sec ) 60 Step D5 Step E4 50 Step D1 Step E1 Step A4 Step C1 40 Step D4 Step C4 Step B3 Step D3 30 Step A3 Step B2 Step C3 Step D2 20 Step A2 Step E5 10 Step B1 Step C2 Step C5 Step E3 Step A1 Step E2 0 A B C D E Operators Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 44 SW 2-Day Training
  • 45. One Piece Flow Just-In-Time Systems Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 45 SW 2-Day Training
  • 46. Mass Production Material Storage Weld Storage Receiving Warehouse Assembly Storage Shipping Storage Stamp Warehouse  Value added time = minutes Rework Storage  Time in plant = WEEKS Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 46 SW 2-Day Training
  • 47. Mass Production Material Storage Weld Storage Two Big Problems Receiving Assembly Storage  Large Batch Production Warehouse Shipping  Storage Flow Poor Stamp Warehouse  Within processes   Between processes Value added time = minutes Rework Storage  Time in plant = WEEKS Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 47 SW 2-Day Training
  • 48. Batch & Station B Queue Station A Station C Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 48 SW 2-Day Training
  • 49. The Basic Philosophy of Lean Production HOW TO MANUFACTURE MOST ECONOMALLY:  What is Needed (Sold)  When it is Needed  In the Amount Needed (with the Minimum Materials, Equipment, Labor and Space) Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 49 SW 2-Day Training
  • 50. IDEAL = One Piece Flow But This Assumes:  Equal Cycle Times  Physical Proximity of Processes  Highly Stable Processes  Little/No Changeover Time Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 50 SW 2-Day Training
  • 51. Batch & Station B Queue Station A Station C One Piece Flow Workcell Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 51 SW 2-Day Training
  • 52. Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 52 SW 2-Day Training
  • 53. IDEAL = One Piece Flow But This Assumes: Equal Cycle Times Physical Proximity of Processes Just-In-Time is NOT a Zero Highly Stable Processes Inventory System. Little/No Changeover Time Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 53 SW 2-Day Training
  • 54. Kanban Tool for Real Time Production Withdrawal Kanban Part # 11227T control of Materials Storage Area Address Flow Rack 15C Description Left Hand Headrest Tube Quantity / Box 400 Number of Cards: _______ of ________ Date Issued: February 1, 2012 Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 54 SW 2-Day Training
  • 55. Lean Production: Model = TPS Goal: Elimination of waste. Customer Order Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 55 SW 2-Day Training
  • 56. Lean Production: Model = TPS Goal: Elimination of waste. Customer Order FG Delivery Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 56 SW 2-Day Training
  • 57. Lean Production: Model = TPS Goal: Elimination of waste. Customer Order FG Delivery Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 57 SW 2-Day Training
  • 58. Lean Production: Model = TPS Goal: Elimination of waste. Kanban: Order to Make Replenish FG Taken Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 58 SW 2-Day Training
  • 59. Production Withdrawal Kanban Production Instruction Kanban Production Withdrawal Kanban Part # 11227T Storage Area Address Flow Rack 15C Description Left Hand Headrest Tube Quantity / Box 400 Number of Cards: _______ of ________ Date Issued: February 1, 2012 Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 59 SW 2-Day Training
  • 60. Lean Production: Model = TPS Kanban: Order to Make Replenish Parts Taken Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 60 SW 2-Day Training
  • 61. Lean Production: Model = TPS Production Withdrawal Kanban Part # 11227T Storage Area Address Flow Rack 15C Description Left Hand Headrest Tube Quantity / Box 400 Number of Cards: _______ of ________ Date Issued: February 1, 2012 Kanban: Order to Take Replenish Parts Taken Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 61 SW 2-Day Training
  • 62. Lean Production: Model = TPS Kanban: Order to Make Replenish Parts Taken Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 62 SW 2-Day Training
  • 63. Lean Production: Model = TPS Production Withdrawal Kanban Part # 11227T Storage Area Address Flow Rack 15C Description Left Hand Headrest Tube Quantity / Box 400 Number of Cards: _______ of ________ Date Issued: February 1, 2012 Kanban: Order to Take Replenish Parts Taken Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 63 SW 2-Day Training
  • 64. Lean Production: Model = TPS Production Withdrawal Kanban Part # 11227T Storage Area Address Flow Rack 15C Description Left Hand Headrest Tube Quantity / Box 400 Number of Cards: _______ of ________ Date Issued: February 1, 2012 Information flow Material flow Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 64 SW 2-Day Training
  • 65. Lean Production: Model = TPS Production Withdrawal Kanban Part # 11227T Storage Area Address Flow Rack 15C Description Left Hand Headrest Tube Quantity / Box 400 Number of Cards: _______ of ________ Date Issued: February 1, 2012 Information flow Material flow Time Cash Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 65 SW 2-Day Training
  • 66. Lean Production: Model = TPS Taiichi Ohno: “Reduce the time line by removing non-value added wastes.” Information flow Material flow Time Cash Bill Costantino, Lean Mfg 616-891-7578 EBCostantino@earthlink.net 66 SW 2-Day Training
  • 67. MGT 564 - First Day of Class Roadmap Kanban 5S Waste Lean Standard Work One Piece Flow Tools Takt Time MRP Waiting Lines Operations Inventory Management Tools Forecasting
  • 68. MGT 564 - First Day of Class Roadmap Kata Heijunka Muda TPS Genchi Genbutsu Kaizen Kanban 5S Waste Lean Standard Work One Piece Flow Tools Takt Time MRP Waiting Lines Operations Inventory Management Tools Forecasting