SKBSKB

Lean Production SystemLean Production System

2 - 2 2 - 2SKBSKB

Simulation 1 & 2Simulation 1 & 2

2 - 3 2 - 3SKBSKB

Kaizen Breakthrough Methodology

Focus on lead-time reduction to:Focus on lead-time reduction to:Increase customer loyalty and market shareIncrease customer loyalty and market share

Achieve growth in sales & earningsAchieve growth in sales & earningsSustain the competitive advantagesSustain the competitive advantages

Improve stakeholder valueImprove stakeholder value

Lean TransformationLean Transformation

Lean Production SystemLean Production System

Six Sigma Process Capability

2 - 4 2 - 4SKBSKB

Lean Lean Production SystemProduction System

JustJustinin

TimeTime

JustJustinin

TimeTimeJidokaJidokaJidokaJidoka

Efficient Use of: People Equipment Materials Space

Production SmoothingProduction Smoothing

Improve process capability

Minimize variation Manage abnormality

Drives cost reductionDrives cost reduction

Lean Production SystemLean Production System

2 - 5 2 - 5SKBSKB

Just-In-Time Is...Just-In-Time Is...

A manufacturing system which produces:

What the customer wants

In the quantity the customer wants

When the customer wants it

While using the minimum:

Raw materials

Equipment

Labor

Space

2 - 6 2 - 6SKBSKB

Lean Production SystemLean Production System

Key Concepts and Tools

Pace to Takt time

One-piece flow

Pull system

2 - 7 2 - 7SKBSKB

Importance of Takt TimeImportance of Takt Time

Customer requirements

Net operating time

Synchronizes operations to customer demand

Prevents overproduction

Tool for creating flow

Determines optimal staffing

Drives capacity analysis & equipment utilization

Must be updated periodically as demand changes

2 - 8 2 - 8SKBSKB

1-Piece Flow

Batch

Fake Flow

2 - 9 2 - 9SKBSKB

“A Sea of WIP”

“Now You See It!”

2 - 10 2 - 10SKBSKB

One-Piece FlowOne-Piece Flow

Supermarket Operation

AisleE D C B AI H G F

A B C D

E

F

GHI

2 - 11 2 - 11SKBSKB

Produce to Actual Customer Demand

Pull SystemPull System

2 - 12 2 - 12SKBSKB

Implement Pull SystemImplement Pull System

LSS

LSS

Pick-up kanban

Supplier

Supermarket

Dropproductionkanban

RMFG

Scheduleboard

Productionkanban

Wat

er S

pide

r

2 - 13 2 - 13SKBSKB

JIT ElementsJIT Elements

Small, inexpensive machines in process order

One-piece flow production, counterclockwise

Ergonomically-correct operations

Standing operations, moving while working

Pull system discipline

“Standard operations” defined and implemented

2 - 14 2 - 14SKBSKB

Simulation 3 & 4Simulation 3 & 4

2 - 15 2 - 15SKBSKB

JIT BenefitsJIT Benefits

Eliminates waste in production processes

Quality… Quality…

Cost… Cost…

Delivery!Delivery!

Creates a system which is intolerant of production abnormalities

Reduces lead times

2 - 16 2 - 16SKBSKB

Lean Lean Production SystemProduction System

JustJustinin

TimeTime

JustJustinin

TimeTimeJidokaJidokaJidokaJidoka

Efficient Use of: People Equipment Materials Space

Production SmoothingProduction Smoothing

Improve process capability

Minimize variation Manage abnormality

2 - 17 2 - 17SKBSKB

Jidoka is…Jidoka is…

A.A. A method for reducing defects

B.B.Equipment autonomation

to improve productivity

2 - 18 2 - 18SKBSKB

JidokaJidoka

A. Tools or Methods to Reduce Defects

Detect defects when they occur

Prevent defects from passing to next operation

Identify root causes of defects

Eliminate root causes

Reduce or eliminate defects

2 - 19 2 - 19SKBSKB

Jidoka ElementsJidoka Elements

Visual Control

5S

Andon

Abnormality Response/Reaction

Roles and responsibilities

Line stop guidelines

Sigma Kaizen (DMAIC)

Basic QC Tools

Advanced Statistical Tools

Countermeasures

Mistake-proofing (Poke-Yoke)

Manual Work

Automatic machine work

New Standard Operations and training

Skill matrix and performance

Autonomation

Separate person from machine

2 - 20 2 - 20SKBSKB

Jidoka ElementsJidoka Elements

Visual Control 5S

AndonParts

presentation

Tool presentation

Pack line

AndonStandard

work

2 - 21 2 - 21SKBSKB

Abnormality Response ProcessAbnormality Response Process

React to problem

Q C D S

Measure impact

Alert team

Train affected associates in new standard operations

MAN

EFFECT

MACHINE

MATERIALMETHOD

Find root cause

Develop and test improvement

Check 2B

Gauge 4

Update standard operations with tested improvement

2 - 22 2 - 22SKBSKB

JidokaJidoka

B. Equipment autonomation Separate operator work from machine work

Before: Operator watches machine run

After: Operator loads and moves Auto shut-off “Hanedashi” auto unload Operator moves to next operation

Question: Do you watch your dishwasher run?Question: Do you watch your dishwasher run?

2 - 23 2 - 23SKBSKB

Jidoka BenefitsJidoka Benefits

Increases production quality

Increases productivity

Ensures on-time delivery

Quality ... Cost ... Delivery!Quality ... Cost ... Delivery!

2 - 24 2 - 24SKBSKB

Lean Lean Production SystemProduction System

JustJustinin

TimeTime

JustJustinin

TimeTimeJidokaJidokaJidokaJidoka

Efficient Use of People Equipment Materials Space

Production SmoothingProduction SmoothingProduction SmoothingProduction Smoothing

Improve process capability

Minimize variation Manage abnormality

2 - 25 2 - 25SKBSKB

Production Smoothing Is...Production Smoothing Is...

Adapting production rates to variations

in customer demand

Variation in volume

Variation in product mix

2 - 26 2 - 26SKBSKB

Average Daily Demand = Target

Production

Quantity

Time

Customer Demand

Production SmoothingProduction Smoothing

Variation in Volume

2 - 27 2 - 27SKBSKB

Production SmoothingProduction Smoothing

Day

Monthly Schedule

(3200 units)

5 15 2010

Model A

1600 units

Model C

800 units

Model B

800 units

Day

Daily Schedule (160 units)

Production

pattern AABCAABC

80

1

40 40

80

2

40 40

80

3

40 40

80

20

40 40

Variation in Mix

2 - 28 2 - 28SKBSKB

Production Smoothing BenefitsProduction Smoothing Benefits

Maintains a consistent, high product quality

Reduces the requirements for capital investment

Reduces staffing costs

Ensures on-time delivery

Quality ... Cost ... Delivery!Quality ... Cost ... Delivery!

2 - 29 2 - 29SKBSKB

Drives cost reductionDrives cost reduction

Lean Lean Production SystemProduction System

Justin

Time

Justin

TimeJidokaJidoka

Efficient Use of: People Equipment Materials Space

Production SmoothingProduction Smoothing

Improve process capability

Minimize variation Manage abnormality