Professional Documents
Culture Documents
Craft Production
Dysfunction
Mass Production
Work
Lean Production
1875
1900
1925
1950
1975
2000
2025
Alienation
Quality
Machinery
Engineering
What is Value?
Value
Measured by the amount that customers (buyers) are willing to pay for a
product or service
A business is profitable if the value it creates exceeds the cost of performing
the value activities
Value Chain
Competitive Advantage
Value System
The value chain of suppliers who provide inputs (raw materials, components,
and purchased services) to the firms value chain that passes its products through
its distribution value chains to a purchased input to the value chain of the buyer
Flow of Goods and Services
Supplier
Firm Value Distribution Buyer Value
Value Chains
Chain
Value Chains
Chains
Suppliers
Manufacturing
Operations
460:
Designing
Operations
Distribution
Buyer
Operations 468:
Manufacturing
and Supply
Chain Strategy
Unit: 1 loaf
Wheat
$0.25
Transportation
$0.08
Flour Processing
Value Streams
$0.15
Bread-Making
$0.44
Price Markup
$0.21
Firm Value
Chain
Value Stream
Definition
Entire set of activities (both value added and non-value added) required to
design, order, and make from raw material to the finished good a specific
product, product family, or service that seeks to eliminate waste and
optimize the productive system in order to satisfy the final customer
Includes all the activities needed to proceed from
Valuable
Capable (Six Sigma)
Available (Total Productive Maintenance)
Adequate (Theory of Constraints)
Flexible (Toyota Production System)
Definitions of Lean
Process for doing more with less and less less
human effort, less equipment, less time, and less
space while coming closer and closer to providing
customers exactly what they want
Lean Thinking
Cost reduction principle (Toyota)
Fundamental objectives
PQCDSM
House of Lean
Toyota-House of Lean
Lean Culture
Organizational Culture
The specific collection of assumptions, beliefs, values, and normal behavior that are shared by people and
groups in an organization and that control the way they interact with each other and with stakeholders
outside the organization
Lean Culture
Plan-Do-Check-Act (PDCA)
Standardization
Standard Work and Problem Solving (5 Whys)
Visual Management
5S, Good housekeeping, Visual Controls
Teamwork
Safety, Security, No Executive Privileges, Genchi Genbutsu (Go See)
Paradox
Jidoka, Changing Standards, Single Piece Flow, Takt Time, Perfection
Intensity
Identify Muda (Waste), Kaizen (continuous improvement)
Lean as a Path
Humility, Lifelong Learning, Respect for People
Team Presentations
Project: Value Stream Mapping
Attend
Peer Evaluations
Designing and
Improving
Operations
Overproduction
Waiting time
N on-utilized people
Transportation
Inventory
Motion
Extra processing
Overproduction
Acronym:
DOWNTIME
Categories of Activities
Value Added (VA) Actual Work
Definition of Waste
Waste (Muda)
Categories of Waste
Type I Waste (Muda) Auxiliary Work
Value
Adding
Work
Distribution
of Activities
Examples:
Pull down tool
Unclamp & clamp fixture
Activities
Non-Valued
Added Work
Examples:
Walking to get parts
Waiting time
Waste
House ofLean
Lean-Eight
Enterprise Wastes
Single-Piece
Flow
Cellular
Manufacturing
Total Productive
Maintenance (TPM)
Point of Use
Storage
Pull / Kanban
System (JIT)
Batch Size
Reductions
Standardized
Work
Group
Technology
Quality at the
Source (TQM)
Eight
Wastes
Kaizen
Teams
Takt
Time
Design for
Manufacturing
Quick
Setup (SMED)
Plant
Layout
5S System
Visual Controls
Discussion Questions
Overproduction Waste
Overproduction
Overproduction
Current State 10 operators
100 pieces
But I only need
100 pieces
120 pieces
Customer
Inventory Waste
Lost Time
Injury Accident
Scrap
Rework
Equipment Setups
Equipment Downtime
Inspection
Inventory Storage
Counting Inventory
Supplier Lead Times
Product Test
Other
Commentary on Waste
One of the most noteworthy accomplishments in
keeping the price of products low is the gradual
shortening of the production cycle. The longer an
article is in the process of manufacture and the more
it is moved about, the greater is its ultimate cost
Mura
Irregularity, variability
Unevenness or fluctuation in a
production plan, operation or an
uneven work pace in an operation
causing operators to hurry and then
wait
Muda
Muri = overburdened
Muda = waste
HouseLean
of Enterprise
Lean-Kaizen
Single-Piece
Flow
Cellular
Manufacturing
Total Productive
Maintenance (TPM)
Point of Use
Storage
Pull / Kanban
System (JIT)
Batch Size
Reductions
Standardized
Work
Group
Technology
Quality at the
Source (TQM)
Eight
Wastes
Kaizen
Teams
Takt
Time
Design for
Manufacturing
Quick
Setup (SMED)
Plant
Layout
5S System
Visual Controls
Kaizen Principles
Kai
zen
Change
Good
Organization
Lean Thinking
Participant Question
What is Work?
Definition of Work
Waste
Motions that create no value and which can be eliminated
Work element
Assignment
Standard Work
Definition
Objective
Training
Takt Time
Cycle Time
The time it takes one unit or piece to move all the way through a
process or value stream
At the plant level, this is termed door-to-door
Total
Operators
Required
Prerequisites
incidental work
Ignore walking times
Check equipment capacity
Compute Number of Operators
= Work content / takt time
Plan the work for one operator
Develop Operator Balance Chart
Debugging = 2-4 weeks
motions
Time each work element separately, not the total time
required to perform a sequence of work elements
Time the operators complete cycle of work elements
from start to finish several times
Always separate operator time from machine time
Select the lowest repeatable time for each element
Avoid using standard time or time-and-motion studies
Time work not the operator
Remember shop floor courtesy
Manufacturing Scenario
Materials
3 Machine Posters
Supply of 3 x 5 Post-In Notes, Masking Tape, Marking Pen
Stopwatches, Calculators, and Time Observation Sheets
Standard Work Sheet
Raw Material Storage Location
3 Machines positioned 10-15 feet apart in sequence
Finished Goods Storage Location
Single Operator
2 Industrial Engineers
Exercise
1 Operator
2 Industrial Engineers
1 - Watch stopwatch and call out TIME at each observation point
2 - Record continuous times on Time Observation Form
TIME
TIME
TIME
TIME
TIME
TIME
TIME
TIME
TIME
TIME
TIME
Total Operating Time (Process Cycle Time) = Manual Work plus Walking Time
Observe the process 2 - 3 times to understand the sequence of tasks
Enter component tasks on Time Observation Form (TOF)
Measure Time
Without turning off the stopwatch, record continuous time at the end of each component task
and enter values in black in the Top Half of the square provided
Note any exceptional tasks or times observed
When cycles completed, for each task, subtract stopwatch time from previous task time value
Enter task time in Red in the Bottom Half of the square provided
Enter in Red the sum of the task times for each observation cycle
Select the lowest cycle time over all observations (do not include abnormal values)
Determine times for each component task (rows)
Select the lowest or lowest repeated time (do not include exceptions)
Adjust large component tasks to match the lowest cycle time (do not change the cycle time)
Enter adjusted component task times in Red
Questions
Load Processed Part from Machine 1 and Press Start Button TIME
Unload Part from Machine 3 and Load Processed Part from Machine 2
Press Start Button and Place Part in Finished Goods Location.. TIME
Perform simulation
Questions
Total the wait time for each task required to complete one cycle
Total the manual times for each task required to complete one cycle
Manual work
Machine (Auto)
Walking
Wait time
Takt Time
Red Line
Use the data (best time) from the Time Observation Sheet
The vertical axis shows time, horizontal axis shows operator
Draw an individual bar showing the cycle time for each operator
Write the total time at the top of each bar
Draw a horizontal line in Red, indicating the takt time
Calculate operator requirements as sum of cycle times (Total Product
Cycle Time) divided by takt time
Assignment
Paper Kaizen
Paper Kaizen
Operator Activity Chart
Detail the specific work
Assignment
Paper Kaizen
What steps would you
eliminate in the process?
Construct the Operator Balance
Chart (OBC)
Draw line for Takt Time
Assign Work Elements using
Work Element times
Calculate the Number of
Operators Required
Assignment Heuristics
Assignment Heuristics
Largest Number of Followers
Assignment Heuristics
1
45 sec.
11 sec.
9 sec.
12 sec.
50 sec.
15 sec.
12 sec.
12 sec.
8 sec.
9 sec .
Assembly
Line LOT
Assembly Line
Exercise 1
Exercise Reading
Assembly Line Balancing Exercise 1
Reliance Motor Corporation (RMC)
Production data
Blackboard
OPS 460 > Assignments > Assembly Line
Balancing
Assembly Line
Exercise 2
Exercise Reading
Assembly Line Balancing Exercise 2
Vancouver Racer Corporation
Production data
Blackboard
OPS 460 > Assignments > Assembly Line
Balancing
Service Operations