Modern PM Tools

1. Course: MBA
Subject: Production & Operation
Management
Unit:3.2
Modern PM Tools

2. Modern PM Tools
• JIT
• KANBAN
• KAIZEN
• ISO
• POKA YOKE

3. JUST-IN-TIME (JIT)
• A repetitive production system in which the
processing and movement of materials and
goods occur just as they are needed!

4. Pre-JIT: Traditional Mass Production
Big lot sizes
Lots of inventory
”PUSH” material to next
stage
Lower
per unit
cost
Big purchase shipments
Big “pushes” of finished goods
to warehouses or customers
???

5. Post-JIT: “Lean Production”
• Tighter coordination along the supply chain
• Goods are pulled along
• — only make and ship what is needed
Smaller lots
Faster setups
Less inventory, storage space
”PULL” material to next stage
Minimal
or no
inventory
holding
cost
Smaller shipments
Goods are pulled out of
plant by customer demand

6. JIT Goals
(throughout the supply chain)
• Eliminate disruptions
• Make the system flexible
• Reduce setup times and lead times
• Minimize inventory
• Eliminate waste

7. Waste
Definition:
Waste is ‘anything other than the minimum
amount of equipment, materials, parts, space,
and worker’s time, which are absolutely
essential to add value to the product.’
— Shoichiro Toyoda
President, Toyota

8. Forms of Waste:
• Overproduction
• Waiting time
• Transportation
• Processing
• Inventory
• Motion
• Product Defects

9. Inventory as a Waste
• Requires more storage space
• Requires tracking and counting
• Increases movement activity
• Hides yield, scrap, and rework problems
• Increases risk of loss from theft, damage,
obsolescence

10. Building Blocks of JIT
• Product design
Standard parts
Modular design
Quality
• Process design
• Personnel and organizational elements
• Manufacturing planning and control
MPC
Staff ORG
Process Design
Product Design

11. KANBAN
Uses simple visual signals to control production
• Examples:
 empty slot in hamburger chute
 empty space on floor
 kanban card

12. Kanban Example
Workcenter A Workcenter B
Workcenter B uses parts produced by Workcenter A
How can we control the flow of materials so that B always
has parts and A doesn’t overproduce?

13. Kanban card: Signal to produce
Workcenter A Workcenter B
Kanban Card
When a container is opened by Workcenter B, its kanban card is
removed and sent back to Workcenter A.
This is a signal to Workcenter A to produce another box of parts.

14. Empty Box: Signal to pull
Workcenter A Workcenter B
Empty box sent back. Signal to pull another full box into
Workcenter B.
Question: How many kanban cards here? Why?

15. How Many Kanbans?
C
x)DT(1
y


y = number of kanban cards
D = demand per unit of time
T = lead time
C = container capacity
X = fudge factor

16. Example
• Hourly demand = 300 units
• Lead time = 3 hours
• Each container holds 300 units
• Assuming no variation in lead-time or demand
(x = 0):
y = (300  3) / 300 = 3 kanban cards

17. Extending the pull system
B
A

18. POKA-YOKE
• The Poka-Yoke concept was created by Shingo.
– “fool-proof devices” -> Poka-Yoke “mistake-
proving”
• To consider an inspection device as a Poka-
Yoke.
– Ingenious, simple and cheap.
• Several Poka-Yoke devices can be found in our
daily life activities.
– Recording protection window on floppy disks

19. POKA-YOKE
• Poka-Yoke systems can be used in a company in order
to mistake proof activities.
– Automatic part feeders.
• Poka-Yokes can reduce undesired workload components.
– It is possible to separate parts with different specifications.
• Poka-Yoke devices such as Go-no Go devices are
utilized in order to avoid inspections based on trials.
• It is not always possible to design a Poka-Yoke to carry
out 100% of the inspection.

20. Self-check and successive check
systems
• Self-check procedure.
– The worker who produces the part is the same
worker that carries out the inspection.
• This system is the most efficient one.
– The worker obtains immediate feedback.
• Criticizing one’s own performance may not be totally
objective.

21. Self-check and successive check
systems
• Successive check.
– Next worker will typically conduct the inspection
task.
• Can reduce the defect rate by as much as one fifth of
the initial value in about one month.
– It is necessary to fix 2 or 3 check points.
– In the beginning of this checking procedure, the defect rate
will increase.

22. Self-check and successive check
systems
• Sensory based inspections (scratches, painting
quality).
– It is advantageous to place samples next to the
checking point to show acceptable limits.

23. Source inspection
• These techniques reduce the defect rate.
– Do not eliminate the error(s).
• Causal relationship between errors and defects.
– If the error source is eliminated, errors will never become
defects.
Error Defect Information
Feedback
Error Information
Feedback

24. Source inspection
• Source inspection eliminated all the errors
except the unnoticed errors.
– These unnoticed errors can be detected by an
efficient use of Poka-Yoke devices.
• Types of source inspection
– Vertical -> Before the process.
– Horizontal -> Inside the same process

25. Poka-Yoke design methodology
• Three suggested methods.
– Weight, the dimensions or the shape.

26. Poka-Yoke design methodology
• The use of meters/counters, spare pieces
method or a fixed sequence in the assembly
process

27. Poka-Yoke design methodology
• Use technology to design the Poka-Yoke
devices.
– Contact mechanisms.
• Limit switches.
– Mechanisms without contact.
• Sensors.
– Meters/counters.

28. Poka-Yoke examples
• Improper parts (extra material) can break or
otherwise adversely affect the tool of the
following process.
– The introduction of a mechanical blade stop can
redirect the parts.
– It is possible to avoid the line from stopping by
using a “size limit” Poka Yoke.

29. Poka-Yoke examples
• A simple slot in the conveyor line can avoid an
incorrect product.
– Without the utilization of a Poka-Yoke, filling
material can be wasted and a major spillage can
occur.
– With the Poka-Yoke the line will not stop and the
improperly oriented parts will fall to collector box

30. ISO
• Why have a Quality Standard?
Customer
Supplier
Vendor Subcontractor
contract
subcontract

31. ROLE OF ISO
• Helps in selection of suppliers and vendors
• Places onus of proving quality on supplier
– Controls
– Processes
– Procedures
– Quality records

32. Benefits of ISO
• Customers and users will benefit by receiving
the products that are:
– Conforming to the requirements
– Dependable and reliable
– Available when needed
– Maintainable

33. Benefits to employees
• People in the organization will benefit by:
– Better working conditions
– Increased job satisfaction
– Improved health and safety
– Improved morale
– Improved stability of employment

34. Benefits to owners and investors
• Owners and investors will benefit by:
– Increased return on investment
– Improved operational results
– Increased market share
– Increased profits

35. Benefits to suppliers and partners?
• Suppliers and partners will benefit by:
– Stability
– Growth
– Partnership and mutual understanding

36. Benefits to society
• Society will benefit by:
– Fulfillment of legal and regulatory requirements
– Improved health and safety
– Reduced environmental impact
– Increased security

37. ISO and Quality Management (QM)
• ISO standards based on the following QM
principles:
1. Customer focus
2. Leadership
3. Involvement of people
4. Process approach
5. System approach to management
6. Continual improvement
7. Factual approach to decision making
8. Mutually beneficial supplier relationships

38. ISO 9000 and SQA Group
• Responsibility lies with management
• SQA group
– implements standards
– Monitors effectiveness in organization

39. Responsibilities of SQA Group
• Perform audits
• Promote awareness
• Communicate Quality System to staff
• Support implementation of ISO 9000
• Perform customer satisfaction surveys
• Facilitate improvement following customer feedback
• Review project quality at milestones
• Act as partner in quality project

40. Responsibilities of SQA Group
• Facilitate improvement and defect prevention
activities
• Monitor and verify process compliance
• Monitor effectiveness of processes
• Monitor institutionalisation of processes
• Chair organization quality reviews
• Facilitate external audits
• Test planning, execution, reporting and
recommendation
• Test lab management
• Support a metrics culture

41. ISO 9000 History and Background
• BS 5750 (forerunner to ISO 9000)
• ISO 9000: 1987
• ISO 9000: 1994
• ISO 9000: 2000

42. ISO 9000: 1994
• Family of standards
• Applicable to manufacturing organizations,
servicing organizations and software
organizations
• Different flavours
– ISO 9001 (full product lifecycle) - superset
– ISO 9002 (production, installation, servicing)
– ISO 9004 (inspection and testing)

43. Quality Management System
Documentation
Quality
Manual Quality
System
Procedures Work
Instructions
Forms

44. Quality Manual
• Quality Policy
• Objectives
• Overview
• Organisation
• Responsibilities
• Requirements Policy/Responsibility/Procedure
Reference

45. Quality System Procedures
• A set of procedures which detail how the
requirements of the quality manual are to be
implemented
• Detailed procedures which define how the
processes are to be performed and controlled
• Specifying who is responsible for what

46. Work Instructions
• Detailed instructions for the performance of
specific tasks
• Such instructions may cover
– Materials
– Processes
– Verification

47. Forms
• Records that provide proof that specified
activities were carried out
• A.k.a. quality records

48. Quality Management System
Standard
ISO 9000
Quality Manual
Quality System Procedures
Work Instructions
Forms
LEVEL 1
LEVEL 2
LEVEL 3
LEVEL 4
Policy Statement, Commitment,
Organisation, Responsibilities
Company Practices, Interfaces
Written Instructions
to Control Tasks
Quality
Records
Sales Design Purchasing Manufacturin
g
Accounts Personnel After Sales

49. Documenting Procedures
Say what you do
Do what you say
And where necessary
Show what you did

50. ISO 9000: 1994 Clauses
1. Management Responsibility
2. Quality System
3. Contract Review
4. Design Control
5. Document Control
6. Purchasing
7. Purchaser Supplied Product
8. Product Identification and Traceability
9. Process Control
10. Inspection and Testing

51. ISO 9000: 1994 Clauses
11. Inspection Measuring and Test Equipment
12. Inspection and Test Status
13. Control of Non-Conforming Product
14. Corrective Action
15. Handling, Storage, Packaging and Delivery
16. Quality Records
17. Internal Quality Audits
18. Training
19. Servicing
20. Statistical Techniques

52. KAIZEN
• Kaizen refers to philosophy or practices that focus
upon continuous improvement of processes in
manufacturing, engineering, supporting business
processes, and management.
• By improving standardized activities and
processes, kaizen aims to eliminate waste as
in lean manufacturing( Toyota Production System
).

53. EVOLUTION
• Kaizen was first implemented in several
Japanese businesses after World War II,
influenced in part by American business and
quality management teachers who visited the
country.
• It has since spread throughout the world and
is now being implemented in many other
venues besides just business and productivity.

54. Where is it applicable ?
• It has been applied in healthcare,psychotherapy, life-
coaching, government, banking, and many other
industries.
• When used in the business sense and applied to the
workplace, kaizen refers to activities that continually
improve all functions, and involves all employees from
the CEO to the assembly line workers.
• It also applies to processes, such as purchasing and
logistics, that cross organizational boundaries into the
supply chain.

55. Kaizen and Management Levels

56. Key Features of Kaizen
1. Improvements are based on many, small changes rather than the
radical changes that might arise from R & D .
2. As the ideas come from the workers themselves, they are less
likely to be radically different, and therefore easier to implement
3. Small improvements are less likely to require major capital
investment than major process changes
4. The ideas come from the talents of the existing workforce, as
opposed to using R&D, consultants or equipment – any of which
could be very expensive
5. All employees should continually be seeking ways to improve
their own performance
6. It helps encourage workers to take ownership for their work, and
can help reinforce team working, thereby improving worker
motivation

57. THUS
• Kaizen is a daily process, the purpose of which
goes beyond simple productivity improvement.
• It is also a process that, when done correctly,
humanizes the workplace, eliminates overly hard
work ("muri"), and teaches people how to
perform experiments on their work using the
scientific method and how to learn to spot and
eliminate waste in business processes.

58. 7 Conditions for Successful
Implementation of Kaizen Strategy
1. Top management commitment
2. Top management commitment
3. Top management commitment
4. Setting up an organization dedicated to
promote Kaizen
5. Appointing the best available personnel to
manage the Kaizen process
6. Conducting training and education
7. Establishing a step-by-step process for Kaizen
introduction.

59. The Key Kaizen Practices
• Mindset & Culture
1. customer orientation
2. quality control (QC) circles
3. suggestion system
4. discipline in the workplace
5. small-group activities
6. cooperative labor-management relations
7. total quality management (TQM)
8. quality improvement

60. The Key Kaizen Practices
• Production Process
1. automation & robotics
2. Autonomation ( jidoka )
3. zero defects
4. total productive maintenance (TPM)
5. kanban
6. Just-in-Time (JIT)
7. productivity improvement
8. new product development

61. The quick and easy kaizen process
1. The employee identifies a problem, waste, or an
opportunity for improvement and writes it down.
2. The employee develops an improvement idea and
discusses it with his or her supervisor.
3. The supervisor reviews the idea within 24 hours and
encourages immediate action.
4. The employee implements the idea. If a larger
improvement idea is approved, the employee should take
leadership to implement the idea.

62. Kaizen at Toyota
• There are two kinds of kaizen activities at Toyota: kaizen made by
the supervisory staff and engineers as their functions, and that
made by workers through the quality circles and suggestion system.
• The management sets a reference ( target ) cost of each of the parts
and a standard time for their production. Then the shop floor that
produces these parts and vehicles firstly endeavors to attain these
costs and standard time, and then reduces them by carrying on
kaizen activities.
• A maintenance team contributes to increasing the reliability of
equipment mainly by executing preventive maintenance and
equipment kaizen.

63. Kaizen at Toyota
• An assembly line is divided into about ten segments per function. It
is permitted to have a buffer between two segments, the buffer
corresponding to five minutes operations. Thus, when a segment is
stopped because of a problem, the others continue to work. So, the
production efficiency of the assembly line as a whole does not get
lower .
• A large conveyer installed on the ground level permit workers to
operate, standing on it and without walking much with a car body
moving, and especially without walking backward.
• Tasks to carry heavy parts also disappeared by installing automatic
or semi-automatic equipment

64. REFERENCES
• http://www.authorstream.com/Presentation/
xtrmn8R-839116-kaizen-an-introduction/
• www.ehpea.org.et