Post on 06-Apr-2018
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JUST-IN-TIME AND LEAN PRODUCTION
Contents
1 ABSTRACT
2 INTRODUCTION
3 LIST OF FIGURE
4 LEAN MANUFACTURING
4.1 What is Lean Manufacturing
4.2 Definition
4.3 The 3 Ms of Lean
4.4 The 5 Ss of Lean
4.5 Who Uses Lean Manufacturing?
4.6 Why do organizations want to use lean manufacturing techniques?
4.7 Lean manufacturing techniques focus on:
4.8 How do you sustain lean manufacturing techniques?
4.9 The Five Steps of Lean Implementation
5 TOYOTA PRODUCTION SYSTEM (TPS)
5.1 Brief History
5.2 What is TPS?-Quick Definition
5.3 Expanded Definition
5.4 How Can TPS Help Organization?
5.5 Problems of Toyota Production System
5.6 Conclusion
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6 JUST-IN-TIME (JIT)
6.1 What is Just-In-Time? (JIT)
6.2 Planning for JIT
6.3 Defining the Planning
6.4 Basic objectives
6.4.1 Integrating and optimizing every step of the manufacturing process
6.4.2 Producing quality product
6.4.3 Reducing manufacturing cost
6.4.4 Producing product on demand
6.4.5 Developing manufacturing flexibility
6.4.6 Keeping commitments and links made between customers and
suppliers
6.5 What Just-In-Time means to materials management
6.6 Push and Pull Manufacturing
6.7 Kanban
6.7.1 How to implement kanban
6.7.2 Responsive of Kanban to customers
6.7.3 Continual Improvement of Just In Time
6.7.4 Benefits of implementation of Kanban
6.8 Time Waste and Just-In-Time
6.9 Machine Setup Time and the SMED System
6.10 Conclusion
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AUTONOMATION
What is Autonomation
Purpose and implementation
The Role of Autonomation
7 AGILE MANUFACTRING
7.1 What is Agile Manufacturing?
7.2 Market Forces
7.3 Reorganizing the Production System for Agility
7.4 Managing Relationship for Agility
7.5 Agility versus Mass Production
7.6 Issues and Problems of Agile Manufacturing
7.7 Future Development of Agile Manufacturing
7.8 Conclusion
8 LITERATURE REVIEW
9 METHODOLOGY
10 RESULT AND DISCUSSION
11 CONCLUSION
12 REFERENCE
13 APPENDICES
1. ABSTRACT
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This report is discussed about the Just-In-Time (JIT), lean production and agile
manufacturing that applied in the manufacturing industries. We have search from the
internet and book about the history and the origin place of JIT, lean production and
agile manufacturing. Besides, what this manufacturing system is all about also had
been search from internet and book. We have done some search from internet and
book why industries are using this manufacturing system and its pro and con to the
companies that using that system. After searching all this information; we have
understood these three titles. Then, we have a discussion to discuss what we have
found and understood.
In general, the first production system that been used is Mass production. It is the
production of large amounts of standardized products onproduction lines and it was
popularized by Henry Ford in the early 20th century, notably in his Ford Model T.
Then, the Japanese manufacturing industry introduced Lean manufacturing after spent
years analyzing a system that eliminate unnecessary waste. Lean Manufacturing is an
operational strategy oriented toward achieving the shortest possible cycle time by
eliminating waste.The US industry enters to a new manufacturing system, which is
called Agile manufacturing to restore their competitiveness after Japanese introduced
Lean. Agile is a term applied to an organization that has created the processes, tools,
and training to enable it to respond quickly to customer needs and market changes
while still controlling costs and quality.
2. LIST OF FIGURE
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Figure Title Page
4.1 Early definition of Lean.
4.2
6.1 Global view of the Just-In-Time system
6.2 Build schedule and materials flow in a push system.
6.3 Build schedule and materials flow in a pull system.
6.4 Production Kanban
6.5 Withdrawal Kanban
3. INTRODUCTION
Since the 1950s the manufacturing industries have been dominated by the
paradigm of mass production, which has led to enormous wealth creation and
supported an ever increasing standard of living. But there has been a price to pay for
this prosperity. As the US factories became geared up to producing large volumes of
low variety and low cost product, they became inflexible and lost the capability to
respond to rapid shifts in market conditions. This was not a problem, as long as
everyone was playing the same mass production game, but it is now clear that
Japanese competitors were not playing this game. Over an extended period the
Japanese developed own manufacturing paradigm, what today we call lean
manufacturing. Lean manufacturing is a comprehensive term referring to
manufacturing methodologies based on maximizing value and minimizing waste in
the manufacturing process.
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Lean manufacturing was not developed overnight. The Japanese gradually
worked away at the development of their manufacturing paradigm, with companies
like Toyota acting as pioneers, in much the same way that Ford pioneered mass
production. As the lean manufacturing paradigm became established in Japan, it was
generating competitive edge for the US and European industry, which still using mass
production. If US and European industry want to adopt lean manufacturing, it can
only be a short term measure aimed at doing something to close the competitive gap
with Japanese industry.
Then, the US and European industry introduce the agile manufacturing to catch
up with and overtake the Japanese. Agile manufacturing is primarily a business
concept. Its aim is quite simple-to put the US enterprises way out in front of the
Japanese industry, the US industry competitors. In agile manufacturing, the aim is to
combine the organization, people and technology into an integrated and coordinated
whole.
4. LEAN MANUFACTURING
Lean manufacturing or lean production are reasonably new terms that can be traced to
Jim Womack, Daniel Jones and Daniel Roos book, The Machine that changed the
world [1991]. In the book, the authors examined the manufacturing activities
exemplified by the Toyota Production System. Lean manufacturing is the systematic
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elimination of waste. As the name implies, lean is focused at cutting fat from
production activities. It has also been successfully applied to administrative and
engineering activities as well. Although lean manufacturing is a relatively new term,
many of the tools used in lean can be traced back to Fredrick Taylor and the
Gilbreaths at the turn of the 20th century. What Lean has done is to package some
well-respected industrial/manufacturing engineering practices into a system that can
work in virtually any environment.
4.1 What is Lean Manufacturing?
In its most basic form, lean manufacturing is the systematic elimination of waste from
all aspects of an organizations operations, where waste is viewed as any use or loss of
resources that does not lead directly to creating the product or service a customer
wants when they want it. In many industrial processes, such non-value added activity
can comprise more than 90 percent of a factorys total activity. Nationwide, numerous
companies of varying size across multiple industry sectors, primarily in the
manufacturing and service sectors are implementing such lean production systems,
and experts report that the rate of lean adoption is accelerating. Companies primarily
choose to engage in lean manufacturing for three reasons: to reduce production
resource requirements and costs; to increase customer responsiveness; and to improve
product quality, all which combine to boost company profits and competitiveness. To
help accomplish these improvements and associated waste reduction, lean involves a
fundamental paradigm shift from conventional batch and queue mass production to
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product-aligned one-piece flow pull production. Whereas batch and queue
involves mass production of large lots of products in advance based on potential or
predicted customer demands, a one-piece flow system rearranges production
activities in a way that processing steps of different types are conducted immediately
adjacent to each other in a continuous flow.
4.2 Definition
Lean production is an assembly-line manufacturing methodology developed originally
for Toyota and the manufacture of automobiles. It is also known as the Toyota
Production System. The goal of lean production is described as "to get the right things
to the right place at the right time, the first time, while minimizing waste and being
open to change". Engineer Ohno, who is credited with developing the principles of
lean production, discovered that in addition to eliminating waste, his methodology led
to improved product flow and better quality.
Instead of devoting resources to planning what would be required for future
manufacturing, Toyota focused on reducing system response time so that the
production system was capable of immediately changing and adapting to market
demands. In effect, their automobiles became made-to-order. The principles of lean
production enabled the company to deliver on demand, minimize inventory, maximize
the use of multi-skilled employees, flatten the management structure, and focus
resources where they were needed.
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During the 1980s, the set of practices summarized in the ten rules of lean production
were adopted by many manufacturing plants in the U.S. and Europe. The management
style was tried out with varying degrees of success by service organizations, logistics
organizations and supply chains. Since the demise of many dot.coms, there has been a
renewed interest in the principles of lean production, particularly since the philosophy
encourages the reduction of inventory. Dell Computers and Boeing Aircraft have
embraced the philosophy of lean production with great success.
The ten rules of lean production can be summarized:
1. Eliminate waste
2. Minimize inventory
3. Maximize flow
4. Pull production from customer demand
5. Meet customer requirements
6. Do it right the first time
7. Empower workers
8. Design for rapid changeover
9. Partner with suppliers
10. Create a culture of continuous improvement
Figure 1 provides a definition of lean as a function of the outcomes that one realizes.
The definition comes from Womack and it identifies the results rather than the method
of lean. In the following sections, the procedures and specifics of lean will be
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introduced.
Figure 4.1 Early definition of Lean.
4.3 The 3 Ms of Lean
Lean manufacturing is a Japanese method focused on 3Ms. These Ms are: muda, the
Japanese word for waste, Mura, the Japanese word for inconsistency, and muri, the
Japanese word for unreasonableness. Muda specifically focuses on activities to be
eliminated. Within manufacturing, there are categories of waste. Waste is broadly
defined as anything that adds cost to the product without adding value to it.
Generally, muda (or waste) can be grouped into the following categories:
1. Excess production and early production
2. Delays
4. Poor process design
5. Inventory
6. Inefficient performance of a process
7. Making defective items
These wastes are illustrated in Figure 2
Definition of Lean
Half the hours of human effort in the factoryHalf the defects in the finished productOne-third the hours of engineering effortHalf the factory space for the same outputA tenth or less of in-process inventoriesSource: The Machine that Changed the World Womack, Jones, Roos 1990
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Figure 4.2
Excess production results in waste because it captures resources too early and retains
the value that is added until the product can be used (sold). In todays highly changing
society, many items produced before they can are sold to a specific customer often go
obsolete before demand is realized. This means that a perfectly good product is often
scrapped because it is obsolete. Producing a product simply to keep a production
resource busy (either machine, operator or both) is a practice that should be avoided.
Delays, such as waiting for raw material, also result in the poor use of capacity and
increased delivery time. Raw materials and component parts should be completed at
approximately the time that they will be required by downstream resources. Too early
is not good, but late is even worse. Movement and transportation should always be
kept to a minimum. Material handling is a non-value added process that can result in
three outcomes: 1) the product ends up at the right place at the right time and in good
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condition, 2) the part ends up in the wrong place, and 3) the part is damaged in transit
and requires rework or scrap. Two of the three outcomes are no desirable, which
further leads to minimizing handling. Because material handling occurs between all
operations, when possible, the handling should be integrated into the process, and the
transport distances minimized.
A poorly designed process results in overuse of manufacturing resources (men and
machines). There are no perfect processes in manufacturing. Generally, process
improvements are made regularly with new efficiencies embedded within the process.
Continuous process improvement is a critical part of Lean Manufacturing.
Excess inventory reduces profitability. Today, it is not uncommon for a manufacturer
to store a suppliers product at the production site. The supplier, right up until the time
that they are drawn from inventory, owns the materials. In many ways this is
advantageous to both the user and supplier. The supplier warehouses his material
offsite, and the user does need to commit capital to a large safety stock of material.
Insufficient (or poor) process performance always results in the over utilization of
manufacturing resources and a more costly product. There is no optimal process in
that improvements can always be made; however, many processes operate far below
the desired efficiency. Continuous process improvement is necessary for a
manufacturing firm to remain competitive. Excess movement or unnecessary part
handling should be the first targets of waste elimination.
Poor quality (making defects) is never desirable. Labor and material waste results
from producing any defect. Furthermore, the cost of mitigating poor quality (rework)
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can often exceed the price of the product. A critical balance between processing speed
and quality exists. A process should be run as fast as possible without sacrificing
acceptable quality.
From the above discussion, it should be obvious that waste is a constant enemy of
manufacturing. Waste elimination should be an on-going process that focuses on
improving a process regularly. Regular reviews and worker input should be conducted
as often as allowable.
The second M is for mura, or inconsistency. Inconsistency is a problem that
increases the variability of manufacturing. Mura is evidenced in all manufacturing
activities ranging from processing to material handling to engineering to management.
Figures 18.3 and 18.4 illustrate some characterization of mura.
4.4 The 5 Ss of Lean
Much of Lean manufacturing is applying common sense to manufacturing
environments. In implementing Lean, 5 Ss are frequently used to assist in the
organization of manufacturing. The 5 Ss are from Japanese and are:
Seiri (sort, necessary items)
Seiton (set-in-order, efficient placement)
Seison (sweep, cleanliness)
Seiketsu (standardize, cont. improvement)
Shitsuke (sustain, discipline)
4.5 Who Uses Lean Manufacturing?
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Lean manufacturing processes are being used predominantly in the automotive
industry. Toyota Motor Company, considered the leader in lean manufacturing
techniques, started using the techniques during the 1950s and 1960s. They have since
built their reputation as quality leaders and boast one of the fastest growing market
shares in the automotive industry.
4.6 Why do organizations want to use lean manufacturing techniques?
To significantly improve overall productivity
To increase market share
To improve speed-to-market with new products
To reduce manufacturing and engineering labor costs
To eliminate non-value-added operations and processes
4.7 Lean manufacturing techniques focus on:
Equipment reliability
Balanced or level production
Just-in-time material control techniques
Stop-the-line to correct the problem and in-station process control
Continuous improvement processes
Statistical Process Control techniques for quality consistency
Developing human systems to support the technical processes
4.8 How do you sustain lean manufacturing techniques?
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Create a solid business case
Align systems and processes
Share the vision
Empower the workforce
Ensure the use of proper measurement systems
4.9 The Five Steps of Lean Implementation
The process used to implement lean manufacturing is a straightforward one. However
it is critical that lean is implemented in a logical manner. The steps associated in
implementing lean follow:
Step 1: Specify Value
Define value from the perspective of the final customer. Express value in terms of a
specific product, which meets the customer's needs at a specific price and at a specific
time.
Step 2: Map
Identify the value stream, the set of all specific actions required to bring a specific
product through the three critical management tasks of any business: the problem-
solving task, the information management task, and the physical transformation task.
Create a map of the Current State and the Future State of the value stream. Identify
and categorize waste in the Current State, and eliminate it!
Step 3: Flow
Make the remaining steps in the value stream flow. Eliminate functional barriers and
develop a product-focused organization that dramatically improves lead-time.
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Step 4: Pull
Let the customer pull products as needed, eliminating the need for a sales forecast.
Step 5: Perfection
There is no end to the process of reducing effort, time, space, cost, and mistakes.
Return to the first step and begin the next lean transformation, offering a product that
is ever more nearly what the customer wants.
5 TOYOTA PRODUCTION SYSTEM (TPS)
5.1 Brief History
Also known as the Toyota Production System (TPS), the Lean Manufacturing
principles was adopted when Japan started rebuilding after World War II.
Faced with daunting material and financial resource problems, Toyota Motor
Company developed a highly-disciplined and process-focused production system with
the sole objective of minimizing the consumption of resources that do not have any
added value to the product.
The word lean is being used to reflect the Japanese business approach in employing
less human resource, less money/capital, less materials, etc. in all aspects of
business operations.
The Lean Manufacturing, or Lean Production principles, is the reason why Toyota has
been very successful in their chosen industry for several decades now. It is also the
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reason why manufacturing industries all over the world are adopting the same
Japanese production disciplineto varying scale and styleto achieve the same
success.
5.2What is TPS?- Quick Definition
Synonymous with Lean Manufacturing and Lean Production, the Toyota Production
System is a manufacturing methodology developed over a 20 year period by Toyota of
Japan. In the most simplistic definition of TPS all manufacturing activities are divided
into adding value or creating waste. The goal of TPS is to maximize value by
eliminating waste.
5.3 Expanded Definition
Taiichi Ohno is generally credited as being the father of TPS. Mr. Ohno was the Vice
President of manufacturing for Toyota and the driving force behind the creation of
Toyota Production Systems. The first documentation of TPS was a paper presented in
August 1977. TPS has since been codified in several books.
TPS is a system that was developed initially to account for the specific issues facing
one company. The revolutionary ideas and concepts pioneered at Toyota have been
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used in many other organizations and industries throughout the world. Value is truly
the central focus of TPS. By defining and understanding value, TPS has evolved to
help companies maximize value. In this system all activities relating to the
manufacturing process are classified as adding value or waste.
The goal of companies using TPS is to provide the exact quantity, with the exact
quality, exactly when the customer wants it. The tools used to identify and minimize
non-value adding activities make up TPS. However TPS is not a static system, rather
it allows for continued change and improvement. Perhaps the true brilliance in TPS is
not the tools and techniques in existence, but the underlying system that allows for
new techniques to be understood and created.
Defining value can be one of the most difficult tasks a company can undertake. TPS
has addressed this issue with a very elegant solution; value is an item or feature for
which a customer is willing to pay. When this metric of value is implemented it
allows companies using TPS to have an exceedingly clear vision when analyzing an
activity or process. No organization likes waste; however it is difficult to eliminate
waste if it cannot be identified. The Toyota Production System forces companies to
ask, Would someone pay for this? If the answer is no, then its waste.
Once waste has been identified, it can then be eliminated. Tools to eliminate waste
have evolved around the most common areas of waste or muda as it is called in
TPS. The Toyota Production System further defines waste as activities that consume
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time, resource and/or space but do not add value. The seven categories of muda are
identified as:
Overproduction - producing more than, faster than or sooner than is required
Waiting - idle time that could be used productively
Transporting - unnecessary transport of parts or materials
Inappropriate processing - operations that add no value from the customer's
perspective
Unnecessary inventory - exceeding one-piece flow
Unnecessary/excess motion - any movement by people or equipment that does
not add value
Defects - rework, repair or waste in its simplest form
Poka Yoke, or error proofing, is a technique to eliminate the waste of defective
product by not producing it in the first place. As defective product is identified, the
root cause of how the product was made defective is determined, and then a poka
yoke is created to insure that cause can not occur again. Excess inventory is typically
minimized by manufacturing from a pull system. As product is sold to the end
customer a Kan-Ban system pulls replacement product through the system. By
building as a direct result of customer activity, waste in the form of excess inventory
is minimized or eliminated. Wasted time typically refers to set up and die change
applications. SMED (Single Minute Exchange of Die) techniques are used to
minimize time lost to production changeovers.
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Although techniques such as Poka Yoke, Kanban, and SMED are concrete well
understood techniques to minimize waste and eliminate errors, they are components
of the overall TPS. These techniques are not the definition of TPS rather they are a
result of TPS. By codifying and understanding the relationship of manufacturing
practices and end customer value TPS allowed Toyota to grow into a world class
manufacturing company.
5.4How Can TPS Help Organization?
Companies that pursue and emulate TPS best practices have seen much success as a
result of this highly effective manufacturing philosophy. Some of the benefits include:
Identify and enhance customer perceived value
Decrease waste and cost in the manufacturing process
Improve product quality and on-time delivery
Develop a competitive world class manufacturing operation
The TPS is a system that has given companies a blueprint for manufacturing
excellence.
5.5 Problems of Toyota Production System
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The Toyota production system may bring good benefit for companies, but the system
may induce new issues too because the system does not always think about workers.
In fact, Toyota has issues of Karoshi/major depression, etc.
5.6 Conclusion
Lean manufacturing raises the threshold of acceptable quality to a level that mass
production cannot easily match. It offers ever-expanding product variety and rapid
responses to changing consumer tastes. It lowers the amount of high-wage effort
needed to produce a product, and it keeps reducing it through continuous incremental
improvement.
6. JUST-IN-TIME (JIT)
Manufacturing is no longer a local matter. Advances in communication and
transportation have greatly reduced the worlds size and manufacturing should now be
considered a world affair. The consequent varieties of choices make decisions
regarding manufacturing strategy very difficult and risky. To maintain the competitive
edge, companies engaged in manufacturing products face the difficulty of reducing
costs and improving their quality levels. Then, struggling to define their strategies,
many of these companies followed the cheap-labor-and-materials route.
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Unfortunately, companies were unable or unwilling to commit the requisite large
capital investment.
What is of most importance is to use the correct strategy in manufacturing. Most
companies have a product strategy and a marketing and sales strategy, but they do
very poorly in developing a manufacturing strategy. When these companies develop a
product and introduce it in the market against the competition, they fail because the
cost is too high, they cannot product the volume required or their quality levels are
unacceptable.
Without all three strategies, any company would be handicapped in its quest for
market dominance and would probably be doomed to failure. It is necessary to
develop a commitment to manufacturing earlier in the products development phase. It
is important to use common sense in studying the different choices and to carry out
decisions that will make the manufacturing process effective, fast and burdened with
very low overhead. That is what Just-In-Time manufacturing is all about.
6.1 What is JIT?
Just-In-Time (JIT) is an approach to production that was developed by Toyota Motors
in Japan to minimize inventories. Work-in-process and other inventories are viewed
by the Japanese as waste that should be eliminated. Inventory ties up investment funds
and takes up space (space is much more dear in Japan than in the United States).To
reduce this form of waste, the JIT approach includes a number of principles and
procedures aimed at reducing inventories, either directly or indirectly. Indeed, the
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scope of JIT is so broad that it is often referred to as a philosophy. IT is an important
component of Lean Production, a principal goal of which is to reduce waste in
production operation. Lean production can be defined as an adaptation of mass
production in which workers and work cells are made more flexible and efficient by
adopting methods that reduce waste in all forms.
In recent years, the JIT philosophy has been embraced by U.S. manufacturing
companies. Other terms have sometimes been adopted to give it an American flavor or
to indicate slight differences with the Japanese practice of JIT. These terms include
zero inventories, continuous flow manufacturing and zero inventory production
system.
Just-in-time procedures have proven most effective in high-volume repetitive
manufacturing, such as the automobile industry. The potential for in-process inventory
accumulation in this type of manufacturing is significant because both the quantities
of products and the number of components per product are large. A just-in-time
system produces exactly the right number of each component required to satisfy the
next operation in the manufacturing sequence just when that component is needed. To
the Japanese, the ideal batch size is one part. As a practical matter, more than one part
is produced at a time, but the batch size is kept small. Under JIT, producing too many
units is to be avoided as much as producing too few units. This is a production
discipline that contrasts sharply with traditional U.S. practice, which has promoted
use of large in-process inventories to deal with problems such as machine
breakdowns, defective components and other obstacles to smooth production. The
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U.S. approach might be described as a just-in-case philosophy.
6.2 Planning for JIT
It is impossible to establish a new JIT system that can be used successfully without
modification. Since each manufacturing process is different (e.g. in terms of
Goals, Product requirements, Customer requirements etc.), it is up to the
individual company to determine the degree of appropriateness and the final
Engineering
Suppliers
MaterialsManagement
Factory Process
CustomerField Service
Just-In-Timestrategy
T.Q.C. strategy
Figure 6.1 Global view of the Just-In-Time system
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application of JIT. However, it is very important to define the plan and
objectives before setting up a JIT manufacturing system.
6.3 Defining the Planning
Defining the planning process for a JIT manufacturing system requires an
understanding of the objectives of JIT, and the goals and objectives of the JIT system.
After the objectives are established for the manufacturing, the process of planning
becomes one of determining what is required to meet those objectives.
6.4 Basic Objectives
The goal of a JIT approach is to develop a system that allows a manufacturer to have
only the materials equipment and people on hand required to do the job. Achieving
this goal requires six basic objectives:
Integrating and optimizing every step of the manufacturing process
Producing quality product
Reducing manufacturing cost
Producing product on demand
Developing manufacturing flexibility
Keeping commitments and links made between Customers and Suppliers
It should be noted that obtaining these objectives does not automatically make a
company a JIT manufacturer, on the other hand failing to achieve even one of these
objectives will prevent a manufacturer from establishing a successful JIT system.
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6.4.1 Integrating and Optimizing
The manufacturing system is a continual process of reducing the number of discrete
steps required to complete a particular process rather than plateaus of steps. Removal
ofbottlenecksin the manufacturing process is a critical step in integration. One of the
best ways to accomplish this objective is to plan for 100 % defect free quality.
Integrating and optimizing will involve reducing the need for unnecessary functions
and systems such as inspection rework loops and inventory.
6.4.2Producing a Quality Product
"Total Quality Control" is one of the fundamental goals in JIT manufacturing. Total
Quality Control (TQC) emphasizes the quality at every stage of manufacture
including product design down to the purchase of raw materials. Quality control is
carried out at every stage of the manufacturing steps; from the source to the final step
rather than relying on a single processing stage which implements quality control on
the final product. Each individual and function involved in the manufacturing system
must, therefore, accept the responsibility for the quality level of its products. This
concept introduces the correction of the problem before many other defective units
have been completed.
6.4.3Reducing Manufacturing Cost
Designing products that facilitate and ease manufacturing processes helps to reduce
the cost of manufacturing and building the product to specifications. One aspect in
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designing products for manufacturability is the need to establish a good employer and
employee relationship. This is to cultivate and tap the resources of the production
experts (production floor employee), and the line employees to develop cost saving
solutions. Participatory quality programs utilize employee knowledge about their job
functions and review the department performance, encouraging with rewards for
suggested cost saving solutions.
6.4.4Producing product on demand
The fundamental principle of JIT is the concept of producing product only as needed
or on demand. This implies that product is not held in inventory, and production is
only initiated by demand. Adopting the produce-on-demand concept will ensure that
only materials that are needed are processed and that labor will be expended only on
goods that will be shipped to a customer. At the end of the production cycle, there
would be no excess inventory.
6.4.5 Developing Manufacturing Flexibility
Manufacturing flexibility is the ability to start new projects or the rate at which the
production mix can be adjusted to meet customer demand. Planning for
manufacturing flexibility requires the understanding of the elements in the
manufacturing process and identifying elements in the process that restrict flexibility
and improving on these areas. The unique feature of JIT is the change from a PUSH
to a PULL system. The idea behind this concept is that work should not be pushed on
to the next worker until that worker is ready for it.
6.4.6 Keeping Commitments and Links made between Customers and Suppliers
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The corporate commitment to developing the internal structures and the customer and
supplier bases to support JIT manufacturing is the primary requirement for developing
the JIT system. Trust and commitment between the supplier and the customer is a
must, because every Just-in-Time operation relies on it. Failure to keep the
commitments is a serious form of break-down in a JIT system.
6.5 What Just-In-Time means to materials management
Inventory is one of the most important assets that a company owns. Normally, as a
companys sales increase, the demand for cash to finance inventory follows the same
growth pattern. A Just-In-Time system dedicates a major portion of its attention to
manage the inventories throughout the manufacturing organization. It should be
pointed out that Just-In-Time doesnt mean zero inventories. Just-In-Time is a set of
procedures that are used by the materials department in working with suppliers and
with the quality, engineering and manufacturing department to reduce as much as
possible the use of buffer inventories. Just-In-Time calls for synchronizing the
movement of materials throughout the production process in such a fashion that there
are short waits between the different sub processes. Just-In-Time also moves the
materials in the factory based on consumption rather than top-down planning.
6.6 Push and Pull Manufacturing
Push system and pull systems are two broad categories of manufacturing planning
and execution systems. At the heart of the planning portion of either system lie several
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common features. Traditional push systems are typically supported by manufacturing
resource planning (MRP II), which encompasses a full range of both planning and
execution function. These include the production plan, master schedule, rough cut
capacity analysis, materials requirements planning (MRP), detail capacity
requirements planning, production scheduling and control and feedback. Pull systems
may use the same MRP II features for planning (production plan, master schedule,
rough cut capacity analysis and material requirements planning for raw material and
purchased components only), but have no formal equivalent to perform detailed
capacity requirements planning. Furthermore, in pull systems, the execution activities
of production scheduling and control are decoupled from the MRP activities and
replaced by replenishment methodologies that tend to be more visual and signal-
based.
It is primarily in the execution portions that push and pull systems diverge.
Material requirements planning not only plan, but are also the execution driver for a
typical push system. MRP analyzes the master schedule and available inventory and
yields a list of net requirements. Order policies and lead times are then applied to
provide a delivery schedule for purchased material and due dates for manufactured
parts, both supporting the master schedule timing. MRP will plan material availability
throughout the purchase and manufacture lead time horizon and generate a push
schedule. Feedback from executing the schedule is then used for replanning.
While the execution portion of a push system is tied to its planning portion
(via order launch start dates derived from a comparatively static master schedule), a
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pull system draws material through the manufacturing process when signaled by the
consumption of material at downstream operations or the need for replenishment of
buffer stocks. Common signals include kanban cards, light boards, buzzers and visual
triggers, such as empty and full containers or empty and full designated spaces. In
some cases, material handling is the carrier of the signal and where material handling
must respond to a pull signal, an immediate response is required. Because pull
schedule represent current production, they typically do not provide the lead time to
procure raw material or the reaction time to adjust future capacity. Consequently, pull
systems generally use the same planning features as push systems to plan purchased
material and perform rough-cut capacity analysis. The weakness of a push system
(MRP) is that customer demand must be forecast and production lead times must be
estimated. Bad guesses (forecasts or estimates) result in excess inventory and the
longer the lead time, the more room for error. Moreover, the weakness of a pull
system (kanban) is that following the JIT production philosophy is essential,
especially concerning the elements of short setup times and small lot sizes, because
each station in the process must be able to respond quickly to requests for more
materials.
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Sales Forecast
Demand Forecast
Master Production Schedule
MRP
Stockroom Work Orders Release
Factory Process
Finished Goods Inventories
Customers
Suppliers
Ship
Purchase Releases
Figure 6.2 Build schedule and materials flow in a push system.
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6.7 Kanban
A kanban which is one way of implementation of pull production control
system uses simple and visual signals to control the movement of materials between
work centers as well as the production of new materials to replenish those sent
downstream to the next work center.
Sales Forecast
Demand Forecast
Master Production Schedule
MRP
Stock Location
Kanban Material Releases
Factory Process
Finished Goods Inventories
Customers
Suppliers
Figure 6.3 Build schedule and materials flow in a pull system.
Forecast
Forecast
Kanban Pull
Kanban Pull
Production
Rate Required
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A kanban system is referred to as a pull-system, because the kanban is used to
pull parts to the next production stage only when they are needed. In contrast, an
MRP system or other schedule-based system is a push system, in which a detailed
production schedule for each part is used to push parts to the next production stage
when scheduled. Thus, in a pull system, material movement occurs only when the
work station needing more material asks for it to be sent, while in a push system the
station producing the material initiates its movement to the receiving station,
assuming that it is needed because it was scheduled for production.
Originally, the name kanban (translated as card or visible record) referred to
a Japanese shop sign that communicated the type of product sold at the shop through
the visual image on the sign (for example, using circles of various colors to indicate a
shop that sells paint). As implemented in the Toyota Production System, a kanban is a
card that is attached to a storage and transport container. It identifies the part number
and container capacity, along with other information, and is used to provide an easily
understood, visual signal that a specific activity is required.
In Toyotas dual-card kanban system, there are two main types of kanban:
1. Production Kanban
It is specifies the kind and quantity of product which the preceding process must
produce. The one illustrated (figure 4) shows that the machining process SB-8 must
produce the crankshaft for the car type SX50BC-150. The crankshaft produced should
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be placed at store F26-18. The production Kanban is often called an in-process
Kanban or simply a production-ordering Kanban.
2. Withdrawal Kanban (also called a "move" or a "conveyance kanban)
It is specifies the kind and quantity of product which a manufacturing process should
withdraw from one work center and deliver them to the next work center for
proceeding process. The withdrawal Kanban illustrated at figure 5 shows that the
preceding process which makes this part is forging, and the person carrying this
Kanban from the subsequent process must go to position B-2 of the forging
department to withdraw drive pinions. Each box of drive pinions contains 20 units and
the shape of the box is `B'. This Kanban is the 4th of 8 issued. The item back number
is an abbreviation of the item.
Figure 6.4 Production Kanban Figure 6.5 Withdrawal Kanban
In some pull systems, other signaling approaches are used in place of kanban
cards. For example, an empty container alone (with appropriate identification on the
container) could serve as a signal for replenishment. Similarly, a labeled, pallet-sized
square painted on the shop floor, if uncovered and visible, could indicate the need to
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go get another pallet of materials from its point of production and move it on top of
the empty square at its point of use.
The Dual-card Kanban Rule is no parts are made unless there is a production
kanban to authorize production. If no production kanban are in the in box at a work
center, the process remains idle, and workers perform other assigned activities. This
rule enforces the pull nature of the process control. There is exactly one kanban per
container. Containers for each specific part are standardized, and they are always
filled with the same (ideally, small) quantity.
Decisions regarding the number of kanban (and containers) at each stage of the
process are carefully considered, because this number sets an upper bound on the
work-in-process inventory at that stage. For example, if 10 containers holding 12 units
each are used to move materials between two work centers, the maximum inventory
possible is 120 units, occurring only when all 10 containers are full. At this point, all
kanban will be attached to full containers but no additional units will be produced.
This is because there are no unattached production kanban to authorize production.
This feature of a dual-card kanban system enables systematic productivity
improvement to take place. By deliberately removing one or more kanban together
with the containers from the system, a manager will also reduce the maximum level of
work-in-process inventory. This reduction can be done until a shortage of materials
occurs. This shortage is an indication of problems, such as accidents, machine
breakdowns, production delays, defective products, which were previously hidden by
excessive inventory. Once the problem is observed and a solution is identified,
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corrective action is taken so that the system can function at the lower level of buffer
inventory. This simple, systematic method of inventory reduction is a key benefit of a
dual card kanban system.
6.7.1 How to implement kanban
Before implementing kanbans, there are some important warnings. Kanbans are an
execution tool, but they are essentially backward looking, replacing what was used.
Kanbans provide no forward visibility about the need for people, material and
equipment. In a simple company, kanbans can be supported by sales and operations
planning using rough cut capacity planning to provide the resource plan. The material
has to be provided either by good kanban arrangements with suppliers or safety
stocks. In larger and more complex situations a full MRP II or material planning
system is essential to support kanbans. Therefore, unless the company has a very
simple product and a steady and predictable order book and has a good material
planning system, kanbans should only be implemented.
When implementing kanbans, the first step is to educate everyone involved in the
use of kanbans. Because kanbans are different from the way most people are used to
working, everyone using kanbans must understand the rules otherwise they are very
likely to undermine the kanbans. The rules are simple:
Make or move materials and products when, but only when, there is a kanban
signal
Never pass on a known defect but pass it back to the person who passed it to
you.
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All work in kanban areas must be under kanban control, no "squirrel" stores.
Start with internal kanbans where appropriate. Kanbans work best where there is
the same or similar products being manufactured repetitively. Kanbans also work
where components are the same or similar and can be replenished by kanbans.
Once the internal kanbans have started, the suppliers need to already have kanban
arrangements. Thus, use these to get a quick start with supplier kanbans.
Once kanbans have been established, start to educate customers in the use of kanbans
and form kanban partnerships with them.
6.7.2 Responsive of Kanban to customers
Kanban results in a production system that is highly responsive to customers.
When the time goes on, the production of widgets will vary depending on customer
demand. And as the widget demand varies, so will the internal demand for widget
components. Instead of trying to anticipate the future, Kanban reacts to the needs.
This is because in the reality, predicting the future is difficult.
Kanban does not necessarily replace all existing material flow systems within a
facility. Other systems such as Materials Requirement Planning (MRP) and Reorder
Point (ROP) may remain in operation. In practice, Kanban scheduling systems are
often a good choice. They can be a transition between MRP and ROP approaches.
Kanban is most beneficial when high volumes with low value components are
involved. For low volume and high value components, other materials management
system may be a better option.
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6.7.3 Continual Improvement of Just In Time
Kanban is directly associated with Just-In-Time (JIT) delivery. However, Kanban
is not another name for just-in-time delivery. It is a part of a larger JIT system. There
is more to managing a JIT system than just Kanban and there is more to Kanban than
just inventory management. Besides that, Kanban is not a system indented to be used
by itself. It is an integral part ofKaizen .
For example, Kanban also involves industrial re-engineering. This means that
production areas might be changed from locating machines by function, to creating
"cells" of equipment and employees. The cells allow related products to be
manufactured in a continuous flow.
Kanban involves employees as team members who are responsible for specific
work activities. Teams and individuals are encouraged participate in continuously
improving the Kanban processes and the overall production process.
6.7.4 Benefits of implementation of Kanban
Reduce inventory and product obsolescence.
Since component parts are not delivered until just before they are needed, there is a
reduced need for storage space. There is no inventory of products or components that
become obsolete. This fits well with the Kaizen system on continual improvement.
Product designs can be upgraded in small increments on a continual basis, and those
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upgrades are immediately incorporated into the product with no waste from obsolete
components or parts.
Reduces waste and scrap
With Kanban, products and components are only manufactured when they are needed.
This eliminates overproduction. Raw materials are not delivered until they are needed,
reducing waste and cutting storage costs.
Provides flexibility in production
If there is a sudden drop in demand for a product, Kanban ensures the factory is not
stuck with excess inventory. This gives them the flexibility to rapidly respond to a
changing demand. Kanban also provides flexibility in how the production lines are
used. Production areas are not locked in by their supply chain. They can quickly be
switched to different products as demand for various products changes. There are still
limits imposed by the types of machines and equipment, and employee skills.
However, the supply of raw materials and components is eliminated as a bottleneck.
Increases Output with zero defect
The flow of Kanban such as cards, pallets and so on, will stop if there is a production
problem. This makes problems visible quickly, allowing them to be corrected. Kanban
reduces wait times by making supplies more accessible and breaking down
administrative barriers. This results in an increase in production using the same
resources.
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Reduces Total Cost
The Kanban system reduces your total costs by:
Preventing over Production
Developing Flexible Work Stations
Reducing Waste and Scrap
Minimizing Wait Times and Logistics Costs
Reducing Stock Levels and Overhead Costs
Saving Resources by Streamlining Production
Reducing Inventory Costs
6.8 Time Waste and Just-In-Time
In a factory, time waste is related to the labor required to build a product, for
every product is associated with standard labor hours. These labor hours determine
not only the direct labor cost but also the overhead associated with the product. In
general, the cost of every hour that a worker uses to assemble a product is magnified
by the overhead rate of the department.
Just-In-Time broadens the concept of time waste to include more than the labor
hours invested in building a product. Material traveling from one work center to
another is a simple example. In a non-Just-In-Time factory, material travel time is less
critical. The process has plenty of buffer inventories which relaxes the need for a fast
delivery of material to work centers. In a Just-In-Time system, material travel time is
of more concern. There are no buffer inventories and worker depends on material
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from upstream processes to continue work. The material travel in smaller quantities
more frequently; thus the time it takes to go from one work center to another must be
minimized.
Another important area of time waste consists of the setup times for machinery.
In Just-In-Time, a production lot has a small number of units, which presents the
problem of frequent tooling setup changes needed to process different parts. The same
problem arises when a multiple product production line switches from one job stream
to another. The Japanese have mastered the reduction of setup time by means of the
single-minute- exchange of die (SMED).Shigeo Shingo created the SMED concept in
Japan during the 1950s.
6.9 Machine Setup Time and the SMED System
Just-In-Time calls for small lots and frequent production runs. This operation
mode helps to control excess materials in the process, but it creates the problem of
wasting additional setup time for machines. In a normal operating environment, the
time wasted in machine setup becomes more evident when frequent small lots are
processed. The single-minute exchange of die (SMED) system is a collection of
techniques used to reduce machine setup time. As the Just-In-Time idea of using small
lots evolved, SMED became associated with the system.
The SMED system is a process of systematic machine setup analysis that clearly
distinguishes every step in order to introduce time saving changes. The goal of SMED
is to crease the productivity of machines by reducing their idle time and to reduce
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machine setup from hours to minutes.
The first step in applying SMED to a particular machine is to analyze the setup
time for that machine. This analysis must clearly identify two types of setup. The
internal setup requires the machine to stop operating. During this setup, the machine
is not productive. The other is the external setup, which can be done with the machine
operating.
After this step, the goal becomes to convert internal setup tasks into external
ones. The conversion of setup tasks is an iterative process. The final step is to reduce
the time required for the tasks by using new production methods. After many
iterations, SMED will increase the productive time of a machine and reduce the idle
time required for a new setup.
6.10 Conclusions
Hence we can see that to have a Total JIT manufacturing system, a company-wide
commitment, proper materials, quality, people and equipments must always be made
available when needed. In addition; the policies and procedures developed for an
internal JIT structure should also be extended into the company's supplier and
customer base to establish the identification of duplication of effort and performance
feedback review to continuously reduced wastage and improve quality. By integrating
the production process; the supplier, manufacturers and customers become an
extension of the manufacturing production process instead of independently isolated
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processes where in fact in clear sense these three sets of manufacturing stages are
inter-related and dependent on one another. Once functioning as individual stages and
operating accordingly in isolated perspective; the suppliers, manufacturers and
customers can no longer choose to operate in ignorance. The rules of productivity
standards have changed to shape the economy and the markets today; every company
must be receptive to changes and be dynamically responsive to demand. In general, it
can be said that there is no such thing as a KEY in achieving a JIT success; only a
LADDER; where a series of continuous steps of dedication in doing the job right
every time is all it takes. The use of kanbans can made huge improvements to a
company such as dramatically reduced lead times, lower inventory and reduced
administration costs.
7. AUTONOMATION
7.1 What is Autonomation
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Autonomation transfers a level of human intelligence to automated machinery.
Machines thus detect even a single defective part and immediately stop while asking
for help.
The concept was pioneered by Sakichi Toyoda at the turn of the twentieth century. He
invented automatic looms that stopped instantly when any thread broke. This
permitted one operator to oversee many machines without risk of producing large
amounts of defective cloth.
Taiichi Ohno considered Jidoka (Autonomation is one variant) as one of the two
pillars of the Toyota Production System.
7.2 Purpose and implementation
Autonomation is called by Shigeo Shingo pre-automation. It separates workers from
machines through mechanisms that detect production abnormalities (many machines
in Toyota have these). He says there are twenty-three stages between purely manual
and fully automated work. To be fully automated machines must be able to detect and
correct their own operating problems which is currently not cost-effective. However,
ninety percent of the benefits of full automation can be gained by autonomation.
The purpose of autonomation is that it makes possible the rapid or immediate address,
identification and correction of mistakes that occur in a process. Autonomation
relieves the worker of the need to continuously judge whether the operation of the
machine is normal; their efforts are now only engaged when there is a problem alerted
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by the machine. As well as making the work more interesting this is a necessary step
if the worker is to be asked later to supervise several machines. The first example of
this at Toyota was the auto-activated loom of Sakichi Toyoda that automatically and
immediately stopped the loom if the vertical or lateral threads broke or ran out.
For instance rather than waiting until the end of a production line to inspect a finished
product, autonomation may be employed at early steps in the process to reduce the
amount of work that is added to a defective product. A worker who is self-inspecting
their own work, or source-inspecting the work produced immediately before their
work station is encouraged to stop the line when a defect is found. This detection is
the first step in Jidoka. A machine performing the same defect detection process is
engaged in autonomation.
Once the line is stopped a supervisor or person designated to help correct problems
gives immediate attention to the problem the worker or machine has discovered. To
complete Jidoka, not only is the defect corrected in the product where discovered, but
the process is evaluated and changed to remove the possibility of making the same
mistake again. This "mistake-proofing" of the production line is called Poka-Yoke.
7.3 The Role of Autonomation
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Autonomation is an important component of Lean Manufacturing Strategy forhigh-
production, low- variety operations, particularly where product life cycles are
measured in years or decades.
In high-variety, low-volume situations, the time and effort required is prohibitive.
This is another example of how lean principles must be tailored to each
situation.
8. AGILE MANUFACTURING
8.1 What is Agile Manufacturing?
Agile manufacturing is an enterprise level manufacturing strategy of
introducing new products into rapidly changing markets and an organizational ability
to thrive in a competitive environment characterized by continuous and sometimes
unforeseen change. In 21st Century Manufacturing Enterprise Study, agile
manufacturing used to describe a new manufacturing paradigm that was recognized as
emerging to replace mass production .Agility is a strategy for profiting from rapidly
changing and continually fragmenting global markets for customized products and
services.
There are consist of four principles of agility, that include organize to master
change, leverage the impact of people and information, cooperate to enhance
competitiveness, and enrich the customer. In organize to master change, it allows
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thrive on change and uncertainty. The human and physical resources also can rapidly
reconfigure to adapt to changing environment and market opportunity. For leverage
the impact of people and information, knowledge is valued, innovation is rewarded,
and authority is distributed to the appropriate level of the organization. Management
provides resources that personnel need and organization is entrepreneurial in spirit.
There is a climate of mutual responsibility for joint success. In addition, cooperate to
enhance competitiveness is cooperation internally and with other companies to form
virtual enterprises to bring products to market rapidly. Besides that, in enrich the
customer, pricing of product based on value of solution to customers problem rather
than manufacturing cost. Agility also has four underlying components that are
delivering value to the customer, being ready for change, valuing human knowledge
and skills, and forming virtual partnerships.
8.2 Market Forces
The market forces can be divided into five to evaluate the agile manufacturing.
Firstly, intensifying competition that include global competition, decreasing cost of
information, growth in communication technologies, pressure to reduce time-to-
market, shorter product lives, and increasing pressures on costs and profits. Secondly,
fragmentation of mass markets that include emergence of niche markets, high rate of
model changes, declining barriers to market entry from global competition, and
shrinking windows of market opportunity. Thirdly, cooperative business relationships
that include increasing inter-enterprise cooperation, increased outsourcing, global
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souring, improved labor management relationships, and the formation of virtual
enterprises among companies. Fourth is changing customer expectations because
customers become more sophisticated and individualistic in purchases including rapid
delivery, high quality, product life and increased information content of product. Fifth
is increasing societal pressures that include workforce training and education, legal
pressures, environment impact issues, gender issues, and civil rights issues.
In brief, companies must have organization management include inter-
organization cooperative extent, speed of the team building, network connection
extensiveness. Besides that, product design include design period, proportion of
design period in product periods. Then, processing manufacture includes time and
space organizational form of production process, and supplement tool displacement.
Next, partnership formation capability includes the form of institutional framework,
the degree of cooperating with other enterprises and the institutional framework
agility. Furthermore, integration of information system includes perfect degree of
information system, customer demand information agile to get.
8.3 Reorganizing the Production System for Agility
To reorganize production system for agility, it consist of three basic areas
include product design, marketing, and production operations .In product design, the
products should have the characteristic of customizable for individual niche markets
or individual customers, upgradeable, reconfigurable with unique features from
previous model without drastic and time-consuming redesign effort, design
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modularity where other modules redesigned will remain same, frequent model
changes within stable market families that is introduce new versions of product to
remain competition, and platforms for information and services depend on type of
product offering .The development of new products must rapid, cost-effective and
have a life cycle design philosophy from initial concept through production,
distribution, purchase, disposal and recovery.
Besides that, in marketing areas, company should has an aggressive and
proactive product marketing that change sales and marketing functions, cannibalize
successful products to replace obsolete products, frequent new product introductions
to maintain high rate of new product introductions, life cycle product support, pricing
by customer value, and effective niche market competitor that used same basic
product platform for different markets.
In addition, the objectives of production operations including be a cost-
effective, low volume producer use flexible production system and low setup times,
be able to produce to customer order to reduce inventory of unsold finished goods,
master mass customization that capable of economically producing unique product for
individual customer, use reconfigurable and reusable processes, tooling and resources,
bring customers closer to the production process by design their own, integrate
business procures with production, and treat production as a system that extends from
suppliers through to customers.
8.4 Managing Relationship for Agility
To manage relationships for agility, organization should have management
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philosophy that promotes motivation and support among employees, trust-based
relationships, empowered workforce, shared responsibility for success or failure, and
pervasive entrepreneurial spirit.
There are consists of two types of relationships, that are internal and external.
Internal relationships exist within firm, between coworkers and between supervisors
and subordinates to make work organization adaptive, provide cross-functional
training, encourage rapid partnership formation and provide effective electronic
communications capability. On the other hand, external relationships exist between
company and external suppliers, customers and partners to establish interactive,
proactive relationships with customers, to provide rapid identification and
certification of suppliers, install effective electronic communications and commerce
capability, and to encourage rapid partnership formation for mutual commercial
advantage.
Virtual Enterprise (Virtual Organization or Virtual Corporation) is a temporary
partnership of independent resources intended to exploit a temporary market
opportunity. Besides that, it may provide access to resources and technology not
available in-house or to new markets and distribution channels, reduce product
development time and accelerates technology transfer.
Valuing knowledge important to open communication and information access,
openness to learning is pervasive in organization, learning and knowledge are basic
attributes of an organizations ability to adapt to change, organization provides and
encourages continuous education and training for all employees, and effective
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management of competency on skills and knowledge of its employees.
8.5 Agility versus Mass Production
In mass production, companies produce large quantity of standardized products
with huge volumes of identical products. Besides that, mass production is a long
market life expected, produce to forecast, low information content, single time sales
and pricing by production cost.
On the other hand, in agile manufacturing, the term mass customization is
used which means produce large quantity of products with unique individual features.
Mass customization is a short market life expected, produce to order, high information
content, continuing relationship and pricing by customer value.
Refer to PQ model of production which means that P is product variety
(number of models) and Q is production quantity (units of each model per year). P is
very small but Q is very large in mass production whereas P is very large but Q is
very small (in the extreme Q=1) in mass customization.
There are many reasons to cause the manufacturing paradigm is changing
from mass production to agile manufacturing (mass customization). This including
global competition is intensifying, mass markets are fragmenting into niche markets,
cooperation among companies is becoming necessary, customers expect low volume,
high quality, custom products, very short product life-cycles, development time, and
production lead times are required, customers want to be treated as individuals. In
mass production, it does not apply to produce small quantities of highly custom,
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design-to-order products, and where additional services and value-added benefits like
product upgrades and future reconfigurations.
8.6 Issues and Problems of Agile Manufacturing
The big issue in agile manufacturing is what extent our existing beliefs, goals,
objectives and methods will continue to be shaped by the old manufacturing
paradigms. There is a danger that agile manufacturing interpreted technological
concept and lead to the generation of more technology, but not to the development of
the capability to deploy the technologies. Overcoming the legacy of the Taylor Model
is a major barrier to progress.
The development of agile manufacturing requires an integrated approach which
replaces piecemeal and fragmented research. For integrated approach, the key words
being empowerment, simultaneous activities, coordination, cooperation, sharing and
team work. The research issues should interdisciplinary and not monodisciplinary. As
a result, the barriers that exist between monoprofessionals need to be broken down
and eliminated.
Education and training are crucial to the success of agile manufacturing. This
is because agile manufacturing is not just a question of addressing issues such as
organizational aspects and psychological topics in isolation but have an impact on
technology development which should be now be addressed in an interdisciplinary
way. Besides that, the success of agile manufacturing depends to a large extent on the
availability of well educated and trained, highly skilled people throughout the
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enterprise. As a result, new knowledge and new methods of working are needed.
Management competence also needs to improve because we need multi-skilled,
computer competent people.
In strategies issues, strategies tend to shift in the area of decision support
technologies towards the development of skill and knowledge enhancing
technologies. Besides that, it needs to develop a broader approach to technology
development and deployment.
In specific research issues, the consideration includes the concept of agile
manufacturing enterprise design so we need to develop tools to support a spiral
approach. Besides that, research into manufacturing needs to focus on manufacturing
as a whole not individual part. Furthermore, we need to develop and deploy
technologies to support development of linkages within agile manufacturing and to
support experimentation and learning.
Besides that, issues and problems for agile manufacturing include identifying
the agile dimension of different industries, and suitable strategies, methods and
technologies with the objective developing a framework for agility. Study the role of
top management knowledge would help set budget priorities and strategic alliances.
Since the requirement of the type of agile technologies depends upon the
business process structure, there is a need to study the alignment between business
process and agile technologies so that effective enterprise integration can be achieved
for improved organizational competitiveness. The impact of organizational
infrastructure, systems and technologies on the partnership selection and supplier
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development should be studied.
8.7 Future Development of Agile Manufacturing
Other than constitute skill and knowledge enhancing technologies, artificial
intelligence (AI) technologies and in the area of cooperative working also important
in further development.
AI is a rather unfortunate term for it conjures up emotive issues of intelligent
machine taking over intelligent work that has hitherto been immune from automation.
It also generates philosophical discussions which center around the possibility of
developing computers that think, which leads to endless speculations largely based on
opinions.
We adopt AI based on the concept of programming paradigms to support people.
Logic-based paradigm involves dealing with logical predicates and assertions. Besides
that, frame-based paradigm use structured knowledge for capturing regularly
occurring circumstances. Each frame includes a number of slots with inheritance,
predicate attachments and active values. In addition, rule based paradigm involves
representing knowledge by the means of if-then rules with logical premises and
conclusions.
In computer supported cooperative work (CSCW), concurrent engineering
support dialogue and cooperation between designers and those involved at the sharp
end of manufacturing on the shop floor. We should tap into every ounce of
intelligence available and use it to bridge the gaps between thinking and doing, and
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designing and making. Besides that, CSCW support cooperation between offices
based programmers and skilled machinists working on the shop floor.
Future generations of computer based technologies will process task oriented
with additional technologies to support experimentation and learning activities and
support the linkages within the human networking organization. In experimentation
and learning technologies, it concerned with support the process of continuing
improvement, help users to extend understanding of problems, provide advice in
adjacent areas of expertise, support experimentation and learning activities, inform
users about consequences of proposals and decisions, and help to identify potential
problems and failures.
In the linkage technologies, it concerned with support the identification and
formation of critical linkages, help empowered people to contribute to team activities,
support inter-group and intra-group activities, identify core competencies, and support
inter-enterprise and intra-enterprise innovation networks.
8.8 Conclusion
Agile manufacturing consist of four principles of agility, that include organize
to master change, leverage the impact of people and information, cooperate to
enhance competitiveness, and enrich the customer. To evaluate agile manufacturing, a
number of market forces are identified. Besides that, company must reorganizing the
production system and managing relationship for agility. We also make the
comparison between agility and mass production. In addition, we discuss the issues
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and problems, and the future development for agile manufacturing.
Reference
Book
1 Nigel Slack, Stuart Chambers, Robert Johnston, Operation Management, Fourth
Edition, 2004, from page 517 to page 550
2 Agile Manufacturing, Forging New Frontiers, Paul T. Kidd, Addison-Wesley
Publishing Company Inc, 1994, from page 353 to page 367.
3 Groover, M.P., Automation, Production Systems and Computer-Integrated
Manufacturing, 2nd Edition, Prentice Hall International Edition, 2001, from page
835 to page 843.
4
Internet
1. http://books.google.com.my/books?
hl=en&id=TxJNaPkuc4oC&dq=just+in+time&printsec=frontcover&source=web
&ots=BlxuPNF6fJ&sig=pws6PM3PgAYwKAu35cdKEDbcXsY&sa=X&oi=book
_result&resnum=10&ct=result#PPP1,M1
5 http://books.google.com.my/books?
hl=en&id=zM_qqlrHKJ8C&dq=lean+manufacturing&printsec=frontcover&sour
ce=web&ots=zgEAKpfDqh&sig=Iaa0KNn5MkGAqiiphKRzWCcfQKo&sa=X&
oi=book_result&resnum=5&ct=result
6 http://kernow.curtin.edu.au/www/jit/jit.htm
http://books.google.com.my/books?hl=en&id=TxJNaPkuc4oC&dq=just+in+time&printsec=frontcover&source=web&ots=BlxuPNF6fJ&sig=pws6PM3PgAYwKAu35cdKEDbcXsY&sa=X&oi=book_result&resnum=10&ct=result#PPP1,M1http://books.google.com.my/books?hl=en&id=TxJNaPkuc4oC&dq=just+in+time&printsec=frontcover&source=web&ots=BlxuPNF6fJ&sig=pws6PM3PgAYwKAu35cdKEDbcXsY&sa=X&oi=book_result&resnum=10&ct=result#PPP1,M1http://books.google.com.my/books?hl=en&id=TxJNaPkuc4oC&dq=just+in+time&printsec=frontcover&source=web&ots=BlxuPNF6fJ&sig=pws6PM3PgAYwKAu35cdKEDbcXsY&sa=X&oi=book_result&resnum=10&ct=result#PPP1,M1http://books.google.com.my/books?hl=en&id=TxJNaPkuc4oC&dq=just+in+time&printsec=frontcover&source=web&ots=BlxuPNF6fJ&sig=pws6PM3PgAYwKAu35cdKEDbcXsY&sa=X&oi=book_result&resnum=10&ct=result#PPP1,M1http://books.google.com.my/books?hl=en&id=zM_qqlrHKJ8C&dq=lean+manufacturing&printsec=frontcover&source=web&ots=zgEAKpfDqh&sig=Iaa0KNn5MkGAqiiphKRzWCcfQKo&sa=X&oi=book_result&resnum=5&ct=resulthttp://books.google.com.my/books?hl=en&id=zM_qqlrHKJ8C&dq=lean+manufacturing&printsec=frontcover&source=web&ots=zgEAKpfDqh&sig=Iaa0KNn5MkGAqiiphKRzWCcfQKo&sa=X&oi=book_result&resnum=5&ct=resulthttp://books.google.com.my/books?hl=en&id=zM_qqlrHKJ8C&dq=lean+manufacturing&printsec=frontcover&source=web&ots=zgEAKpfDqh&sig=Iaa0KNn5MkGAqiiphKRzWCcfQKo&sa=X&oi=book_result&resnum=5&ct=resulthttp://books.google.com.my/books?hl=en&id=zM_qqlrHKJ8C&dq=lean+manufacturing&printsec=frontcover&source=web&ots=zgEAKpfDqh&sig=Iaa0KNn5MkGAqiiphKRzWCcfQKo&sa=X&oi=book_result&resnum=5&ct=resulthttp://books.google.com.my/books?hl=en&id=TxJNaPkuc4oC&dq=just+in+time&printsec=frontcover&source=web&ots=BlxuPNF6fJ&sig=pws6PM3PgAYwKAu35cdKEDbcXsY&sa=X&oi=book_result&resnum=10&ct=result#PPP1,M1http://books.google.com.my/books?hl=en&id=TxJNaPkuc4oC&dq=just+in+time&printsec=frontcover&source=web&ots=BlxuPNF6fJ&sig=pws6PM3PgAYwKAu35cdKEDbcXsY&sa=X&oi=book_result&resnum=10&ct=result#PPP1,M1http://books.google.com.my/books?hl=en&id=TxJNaPkuc4oC&dq=just+in+time&printsec=frontcover&source=web&ots=BlxuPNF6fJ&sig=pws6PM3PgAYwKAu35cdKEDbcXsY&sa=X&oi=book_result&resnum=10&ct=result#PPP1,M1http://books.google.com.my/books?hl=en&id=zM_qqlrHKJ8C&dq=lean+manufacturing&printsec=frontcover&source=web&ots=zgEAKpfDqh&sig=Iaa0KNn5MkGAqiiphKRzWCcfQKo&sa=X&oi=book_result&resnum=5&ct=resulthttp://books.google.com.my/books?hl=en&id=zM_qqlrHKJ8C&dq=lean+manufacturing&printsec=frontcover&source=web&ots=zgEAKpfDqh&sig=Iaa0KNn5MkGAqiiphKRzWCcfQKo&sa=X&oi=book_result&resnum=5&ct=resulthttp://books.google.com.my/books?hl=en&id=zM_qqlrHKJ8C&dq=lean+manufacturing&printsec=frontcover&source=web&ots=zgEAKpfDqh&sig=Iaa0KNn5MkGAqiiphKRzWCcfQKo&sa=X&oi=book_result&resnum=5&ct=result8/3/2019 Jit Combine
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7 http://www.strategosinc.com/kanban_2.htm
8 http://www.ifm.eng.cam.ac.uk/dstools/process/kanban.html
9 http://www.msc-inc.net/Documents/Kanban_Integrated_JIT_System.htm
10 http://www.umassd.edu/charlton/birc/am_taxonomy.pdf
11 http://www.umassd.edu/charlton/birc/am_1998.pdf
12 http://www.technet.pnl.gov/dme/agile/index.stm
13 http://en.wikipedia.org/wiki/Autonomation
14 http://www.engr.psu.edu/cim/ie450/ie450ho1.pdf
15 http://www.ddiworld.com/pdf/ddi_leanmanufacturingtechniques_wp.pdf
16 http://wcm.nu/lean.html
Key Words and definitions
1 Autonomation - in Toyota parlance, automation with a human touch.
Autonomation normally referes to semi-automatic processes where a machine
and human work as a well planned system. Literally, the English translation of
jidoka.
2Cycle time - the normal time to complete an operation on a product. This in NOT
the same as takt time, which is the allowable time to produce one product at the
rate customers are demanding it.
3 Lean manufacturing or lean production - the philosophy of continually
reducing waste in all areas and in all forms; an English phrase coined to
summarize Japanese manufacturing techniques (specifically, the Toyota
http://www.strategosinc.com/kanban_2.htmhttp://www.ifm.eng.cam.ac.uk/dstools/process/kanban.htmlhttp://www.msc-inc.net/Documents/Kanban_Integrated_JIT_System.htmhttp://www.strategosinc.com/kanban_2.htmhttp://www.ifm.eng.cam.ac.uk/dstools/process/kanban.htmlhttp://www.msc-inc.net/Documents/Kanban_Integrated_JIT_System.htm8/3/2019 Jit Combine
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Production System).
4 mixed-model production - capability to produce a variety of models, that in fact
differ in labor and material content, on the same production line; allows for
efficient utilization of resources while providing rapid response to marketplace
demands.
5 muda (waste) - activities and results to be eliminated; within manufacturing,
categories of waste, according to Shigeo Shingo, include: .
5.1 Excess production and early production 2.Delays
5.2 Movement and transport
5.3 Poor process design
5.4 Inventory
5.5 Inefficient performance of a process
5.6 Making defective items
6 mura - inconsistency
7 muri - unreasonableness
8 jidoka - a Japanese word which translates as autonomation; a form of automation
in which machinery automatically inspects each item after producing it, ceasi