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Friday 25 March 2011

LEAN SYSTEM METHOD

1 Introductions of Lean Manufacturing 

 

 

The Toyota Production System (TPS) is an integrated socio-technical system, developed by Toyota that comprises its management philosophy and practices. The TPS organizes manufacturing and logistics for the automobile manufacturer, including interaction with suppliers and customers. The system is a major precursor of the more generic "Lean manufacturing.

Lean manufacturing or lean production is a management philosophy derived mostly from the Toyota Production System (TPS) and identified as "Lean" only in the 1990s. Also known as the flexible mass production, the TPS has two pillar concepts: Just-in-time (JIT) or "flow", and "automation" (smart automation).
Just in Time, or JIT is a set of techniques to improve the return on investment of a business by reducing in-process inventory, and its associated costs. JIT is one of the main principles of lean manufacturing, it is the idea of producing what the customer wants when the customer wants it without it being delayed or held up in inventory. Toyota's journey with JIT may have started back in 1934 when it moved from textiles to produce its first car. 

There are strong cultural aspects associated with the emergence of JIT in Japan. The Japanese work ethic involves the following concepts.
  • Workers are highly motivated to seek constant improvement upon that which already exists. Although high standards are currently being met, there exist even higher standards to achieve.
  • Companies focus on group effort which involves the combining of talents and sharing knowledge, problem-solving skills, ideas and the achievement of a common goal.
  • Work itself takes precedence over leisure. It is not unusual for a Japanese employee to work 14-hour days.
  • Employees tend to remain with one company throughout the course of their career span. This allows the opportunity for them to hone their skills and abilities at a constant rate while offering numerous benefits to the company.

2) Definitions Just in Time


Just-In-Time (JIT) defined
Ø  JIT 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)
Ø  JIT also involves the elimination of waste in production effort
Ø  JIT also involves the timing of production resources (i.e., parts arrive at the next workstation “just in time”) 


3)  JIT and Lean Management 


Ø  JIT can be divided into two terms: “Big JIT” and “Little JIT”
Ø  Big JIT (also called Lean Management ) is a philosophy of operations management that seeks to eliminate waste in all aspects of a firm’s production activities: human relations, vendor relations, technology, and the management of materials and inventory
Ø  Little JIT focuses more narrowly on scheduling goods inventory and providing service resources where and when needed 


4)      The Toyota Production System 


4.1 Elimination of waste 

Minimize waste is focused Factory Networks Coordination System Integration These are small specialized plants that limit the range of products produced (sometimes only one type of product for an entire facility) Some plants in Japan have as few as 30 and as many as 1000 employees.
What are Toyota try to do is minimize waste in operation like waste from overproduction waste of waiting time, transportation waste, inventory waste, processing waste, waste of motion and waste from product defects
To eliminate this problem, Toyota to overcome this problem Toyota has been using several methods such as
Ø  Good housekeeping - workplace cleanliness and organization.
Ø  Set-up time reduction - increases flexibility and allows smaller batches. Ideal batch size is 1 item. Multi-process handling is a multi-skilled workforce has greater productivity, flexibility and job satisfaction.
Ø  Leveled / mixed production - to smooth the flow of products through the factory.
Ø  Kanbans - simple tools to `pull' products and components through the process.
Ø  Jidoka (Automation) - providing machines with the automation capability to use judgment, so workers can do more useful things than standing watching them work.
Ø  Andon (trouble lights) - to signal problems to initiate corrective action.


4.2 Respect for people 


What are Toyota do to maintain company worker that have really high skill are:
  • Level payrolls
  • Cooperative employee unions
  • Reliable Subcontractor networks
  • Bottom-round management style (i.e., consensus management)
  • Quality circles (Small Group Involvement Activities or SGIA’s) 


5) Prerequisites to Implementing the TPS:


Although the Toyota Production System (TPS) was originally developed by Toyota Motor Corporation it has now been adopted by many other companies, both in Japan and around the world. Toyota production system techniques need to be implemented in the same order as the continuous improvement steps are taken, in other words, from means to goals. The necessary steps can be categorized as follows:

1.Introduction of 5s
The foundation for improvement of the shop floor is the 5S concept: Seiri (arrangement), Seiton (tidiness), Seiso (cleaning), Seiketsu (cleanliness), and Shitsuke (training).

2. Introduction of one piece production
Once the 5S concept has been successfully introduced then the fundamental prerequisites for JIT should be implemented: training of multi-functioned workers and layout of machinery in the process.

3. Implementation of small lot size production
The next step is to improve the setup method in order to minimize lot size and standardize the operations to increase productivity.

4. Establishing production smoothing
For key element for the introduction of the Kanban card system and the minimization of idle time

5. Implement Kanban system
The Kanban system manages the JIT production system and is supported by each of the previous steps: production smoothing, operation standardization, setup time reduction, and machinery layout and improvement activities.


5)      BENEFIT OF JIT


The benefits of Implementing Just In Time, Creating “single piece” flow at the pull of the customer using a flow line approach;
v  Reduced cash tied up in inventory.
v  Reduced space required.
v  Reduced requirements for transportation and associated people and equipment.
v  Reduced lead times.
v  Reduced planning complexity.


6) BENEFIT OF LEAN MANUFACTURING


v  Improved Customer Service; delivering exactly what the customer wants when they want it.
v  Improved Productivity; Improvements in throughput and value add per person.
v  Quality; Reductions in defects and rework.
v  Innovation; staff are fully involved so improved morale and participation in the business.
v  Reduced Waste; Less transport, moving, waiting, space, and physical waste.
v  Improved Lead Times; Business able to respond quicker, quicker set ups, fewer delays.
v  Improved Stock Turns; Less work in progress and Inventory, so less capital tied up.

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