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Tata McGraw
 Chapter 12

Lean Manufacturing
 12-3

Learning Objectives
After completing the chapter you will:
• Learn how a production pull system works
• Study Toyota Production System concepts
• Learn about how value stream mapping can
be used to identify wasteful activities
• See how Kanban cards can be used to
control a pull system
• Understand how to accomplish lean
production
• See examples of lean concepts applied to
service systems
 12-4

Lean Production

• Lean Production can be defined as an

integrated set of activities designed to
achieve high-volume production using
minimal inventories (raw materials, work
in process, and finished goods)
• Lean Production also involves the
elimination of waste in production effort
• Lean Production also involves the
timing of production resources (i.e.,
parts arrive at the next workstation “just
in time”)
 12-5

The Toyota Production System

• Based on two philosophies:

– 1. Elimination of waste

– 2. Respect for people

 12-6

Elimination of Waste

1. Focused factory networks

2. Group technology
3. Quality at the source
4. JIT production
5. Uniform plant loading
6. Kanban production control
system
7. Minimized setup times
 12-7

These are small specialized

plants that limit the range
Minimizing Waste:
Focused Factory
of products produced
Networks (sometimes only one type of
product for an entire
facility)

Some plants in
Japan have as
Coordination few as 30 and as
System Integration many as 1000
employees
 12-8

Minimizing Waste: Group Technology (Part 1)

Note how the flow lines are going back and forth
• Using Departmental Specialization for plant layout can cause a lot of
unnecessary material movement

Saw Saw Saw Grinder Grinder

Heat Treat

Lathe Lathe Lathe Press Press Press

 12-9

Minimizing Waste:
Group Technology (Part 2)

• Revising by using Group Technology Cells can reduce movement and

improve product flow

Grinder
1 2
Saw Lathe Lathe Press

Heat Treat

Grinder
Saw Lathe A B Lathe Press
 12-10

Minimizing Waste:
Uniform Plant Loading (heijunka)

Suppose we operate a production plant that produces a single

product. The schedule of production for this product could be
accomplished using either of the two plant loading schedules
below.

Not uniform Jan. Units Feb. Units Mar. Units Total

1,200 3,500 4,300 9,000
or
Uniform Jan. Units Feb. Units Mar. Units Total
3,000 3,000 3,000 9,000
How does the uniform loading help save labor costs?
 12-11

Minimizing Waste: Inventory

Hides Problems

Example: By
identifying defective
Machine
downtime items from a vendor
early in the
Scrap Vendor production process
Work in delinquencies Change the downstream work
orders
process is saved
queues Engineering design Design
(banks) redundancies backlogs

Example: By
Paperwork Inspection Decision identifying defective
backlog backlogs backlogs work by employees
upstream, the
downstream work is
saved
 12-12

Minimizing Waste: Kanban Production Control Systems

This puts the

system back
Once the Production kanban is
Withdrawal were it was
received, the Machine Center
kanban before the item
produces a unit to replace the
was pulled
one taken by the Assembly Line
people in the first place

Storage Storage
Machine Part A Part A Assembly
Center
Line

Production kanban
Material Flow
The process begins by the Assembly Line
people pulling Part A from Storage Card (signal) Flow
 12-13

Determining the Number of Kanbans Needed

• Setting up a kanban system requires

determining the number of kanbans
cards (or containers) needed
• Each container represents the
minimum production lot size
• An accurate estimate of the lead time
required to produce a container is
key to determining how many
kanbans are required
 12-14

The Number of Kanban Card Sets

Expected demand during lead time  Safety stock

k
Size of the container

DL(1  S )

C
k = Number of kanban card sets (a set is a card)
D = Average number of units demanded over some time
period
L = lead time to replenish an order (same units of time as
demand)
S = Safety stock expressed as a percentage of demand
during leadtime
C = Container size
 12-15

Example of Kanban Card Determination: Problem Data

• A switch assembly is assembled in batches of

4 units from an “upstream” assembly area and
delivered in a special container to a
“downstream” control-panel assembly
operation
• The control-panel assembly area requires 5
switch assemblies per hour
• The switch assembly area can produce a
container of switch assemblies in 2 hours
• Safety stock has been set at 10% of needed
inventory
 12-16

Example of Kanban Card Determination: Calculations

Expected demand during lead time Safety stock

k 
Size of the container

DL (1 S ) 5(2)(1.1)
   2.75, or 3
C 4

Always round up!

 12-17

Respect for People

• Level payrolls

• Cooperative employee unions

• Subcontractor networks

• Bottom-round management style

• Quality circles (Small Group

Involvement Activities or SGIA’s)
 12-18

Toyota Production System’s Four Rules

1. All work shall be highly specified as to content,
sequence, timing, and outcome

2. Every customer-supplier connection must be

direct, and there must be an unambiguous yes-
or-no way to send requests and receive
responses

3. The pathway for every product and service must

be simple and direct

4. Any improvement must be made in accordance

with the scientific method, under the guidance of
a teacher, at the lowest possible level in the
organization
 12-19

Lean Implementation Requirements: Design Flow Process

• Link operations
• Balance workstation capacities
• Redesign layout for flow
• Emphasize preventive maintenance
• Reduce lot sizes
• Reduce setup/changeover time
 12-20

Lean Implementation Requirements: Total Quality Control

• Worker responsibility

• Measure SQC

• Enforce compliance

• Fail-safe methods

• Automatic inspection
 12-21

Lean Implementation Requirements: Stabilize Schedule

• Level schedule

• Underutilize capacity

• Establish freeze windows

 12-22

Lean Implementation Requirements: Kanban-Pull

• Demand pull

• Backflush

• Reduce lot sizes

 12-23

Lean Implementation Requirements: Work with Vendors

• Reduce lead times

• Frequent deliveries

• Project usage requirements

• Quality expectations
 12-24

Lean Implementation Requirements: Reduce Inventory More

• Look for other areas

• Stores

• Transit

• Carousels

• Conveyors
 12-25

Lean Implementation Requirements: Improve Product Design

• Standard product configuration

• Standardize and reduce number of

parts

• Process design with product design

• Quality expectations
 12-26

Lean Implementation Requirements: Concurrently Solve Problems

• Root cause

• Solve permanently

• Team approach

• Line and specialist responsibility

• Continual education
 12-27

Lean Implementation Requirements: Measure Performance

• Emphasize improvement
• Track trends
 12-28

Lean in Services (Examples)

• Organize Problem-Solving Groups

• Upgrade Housekeeping

• Upgrade Quality

• Clarify Process Flows

• Revise Equipment and Process

Technologies
 12-29

Lean in Services (Examples)

• Level the Facility Load

• Eliminate Unnecessary Activities

• Reorganize Physical Configuration

• Introduce Demand-Pull Scheduling

• Develop Supplier Networks

 12-30

Question Bowl

Lean Production seeks to achieve high

volume production using which of the
following?
a. Minimal inventory of raw materials
b. Minimal inventory of work-in-process
c. Minimal inventory of finished goods
d. All of the above
e. None of the above

Answer: d. All of the above

 12-31

Question Bowl

In the Toyota Production System,

the “elimination of waste”
involves which of the following?
a. Overproduction
b. Waiting time
c. Transportation
d. All of the above
e. None of the above

Answer: d. All of the above

 12-32

Question Bowl

In the Pull System the partner that begins

the process of “pulling” is which of
the following?
a. Customers
b. Vendors
c. Fabrication personnel
d. CEO
e. All of the above

Answer: a. Customer
 12-33

Question Bowl

A Lean Production program requires

which of the following?
a. Employee participation
b. Total quality control
c. Small lot sizes
d. Continuing improvement
e. All of the above

Answer: e. All of the above (Also included in Industrial

engineering/basics)
 12-34

Question Bowl

Inventory has been known to hide which

of the following production
problems?
a. Scrap
b. Vendor delinquencies
c. Decision backlogs
d. All of the above
e. None of the above

Answer: d. All of the above

 12-35

Question Bowl
You want to determine how many kanban card sets you
need for an operation. You find that average number
of units demanded is 1,000 per hour, the lead time to
replenish the order for this item is 10 hours, the
container size is 10 units, and the safety stock is
estimated to be 5% of the expected demand. Which
of the following is the desired number of kanban card
sets?
a. 1050
b. 1000
c. 605
d. 500
e. None of the above

Answer: a. 1050 ([1000x10](1+0.05)/10=1050)

 12-36

Question Bowl

When trying to implement Lean system a

“stabilized schedule” includes which
of the following?
a. Demand pull
b. Backflush
c. Fail-safe methods
d. All of the above
e. None of the above Answer: e. None of the
above (These include:
level schedule,
underutilization
capacity, and establish
freeze windows.)
 12-37

End of Chapter 12

1-37