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1 he hinking Approach LEAN CONCEPS All rights reserved 1
2 ools to Drive Kaizen Activity ECHNICAL HINKING O DEVELOP A LEAN SYSEM All rights reserved 2
3 ECHNICAL OOLS wo key questions When do I need them? What are they? ools to Measure ools to Improve UNDERSANDING SKILLS LEAN RANSFORMAION All rights reserved 3
4 OOLS O IMPROVE Continuous Flow (JI) Pull System All rights reserved 4
5 OOLS O IMPROVE All rights reserved 5
6 RADIIONAL SYSEM Push production Material & Information Flow Production Control Sales Orders Production Schedule(s) A B C CUSOMER Characteristics: Requires top down production instruction - ERP, MRP, or human - In process stock build up between processes Lengthy production lead times All rights reserved 6
7 Downstream process withdraws exactly what they need, when the need it, and in the needed quantity Production Instruction for Component A Withdrawal Instruction for Component C D UPSREAM PROCESS Store C B A Withdrawal Instruction for Component A DOWNSREAM PROCESS All rights reserved 7
8 COMPONENS 1. Store for finished goods [where are completed goods kept] 2. Parts material on hand [what is needed to produce finished goods] 3. Communication [what, when, quantity] All rights reserved 8
9 1 HE SORE Has all variety of finished goods [can replenish whatever sold] Located at the end of process [visible pace of sales] Quantity of COMPLEED GOODS Raw Material PRODUCION lot sizes Frequency of WIHDRAWAL FABRICAION Store Flow Rack Quantity per container [QPC] SHIPPING Store ASSEMBLY LINE All rights reserved 9
10 2 All materials needed to build products [can replenish whatever sold] MAERIAL SOCK Located line side of consumer process [visible pace of sales] Quantity of MAERIAL Raw Material USEAGE lot sizes Frequency of SUPPLY FABRICAION Store Flow Rack Quantity per container [QPC] SHIPPING Store ASSEMBLY LINE All rights reserved 10
![3 COMMUNICAION Customer information to one location [shipping] Raw Material Customer Order FABRICAION Store Flow Rack SHIPPING Chain X Chain](/docs-images/48/24055050/images/11-0.png "Production: Purpose How to achieve Store Smooth, balanced pace of production Frequent, regular withdrawals ASSEMBLY LINE All rights reserved")
11 3 COMMUNICAION Customer information to one location [shipping] Raw Material Customer Order FABRICAION Store Flow Rack SHIPPING Chain X Chain Production: Purpose How to achieve Store Smooth, balanced pace of production Frequent, regular withdrawals ASSEMBLY LINE All rights reserved 11
12 HOW O COMMUNICAE PRODUCION INSRUCION KANBAN 2 ypes of Kanban 1. Authorize production and material conveyance 2. Visual check Control over production See ahead/behind condition Process status at a glance 3. ool for Kaizen activity Production Instruction Parts Withdrawal All rights reserved 12
13 WHA DOES KANBAN LOOK LIKE? KEY POINS: 1. Contains all required information for team member to complete process efficiently 2. Additional information to support visual management All rights reserved 13
14 COMPLEE Wthdwl FABRICAION Customer Order Prod SHIPPING Wthdwl Prod ASSEMBLY LINE All rights reserved 14
15 YPES OF S 1. A-YPE Conventional pull system 2. B-YPE Sequential pull system 3. C-YPE Combination of A & B All rights reserved 15
16 A-YPE SYSEM ype A Sample M&I Flow Conventional Pull System Customer Order UPSREAM PROCESS DOWNSREAM PROCESS SHIPPING CUSOMER RAW MAERIAL Features: All product variations are kept in store(s) Kanban is the production instruction to replace withdrawn items [ype and QY] Formal production instruction to only one location [Shipping] All rights reserved 16
17 ype B Sample M&I Flow Production Sequence B-YPE SYSEM Sequential Pull System Production Control Customer Order G F UPSREAM PROCESS E D DOWNSREAM PROCESS C B A SHIPPING CUSOMER RAW MAERIAL Features: Production is based on a sequenced list of products Stores hold only a single sequenced product at a time Sequenced production instruction given at beginning of process with kanban All rights reserved 17
18 ype C Sample M&I Flow C-YPE SYSEM Combination Pull System RAW MAERIAL Production Control Customer Order UPSREAM PROCESS DOWNSREAM PROCESS SHIPPING CUSOMER E D C B Production Sequence Features: Products using A & B ype systems can be produced on the same line All rights reserved 18
19 DIFFERENCE BEWEEN SYSEMS All rights reserved 19
20 BENEFIS 1. Produces what is sold, when it is sold Contains over production 2. Gives visual control of production system Material [quantity, type, location] Ahead/behind status at a glance 3. Creates self regulating production schedule Bottom up schedule driven by customer demand No need to constantly readjust manual schedules All rights reserved 20
21 CHALLENGE O IMPLEMEN S Reducing lot sizes Continuous Flow hinking GOAL Reduce lot sizes to 1 x 1 build raditional hinking PRODUCION LO SIZE COSS All rights reserved 21
22 COS OPIMUM LO SIZE Ideal lot size: Minimum cost Minimum QY otal Cost Inventory Cost Intersection of inventory and changeover curves LO SIZE Changeover Cost All rights reserved 22
23 COS HOW O REDUCE LO SIZE Smaller lot size = less cost! otal Cost Inventory Cost Changeover Cost LO SIZE All rights reserved 23
24 QUICK CHANGEOVER = SMALL LOS Capacity B SEUP A SEUP BEFORE D SEUP C SEUP B SEUP A SEUP AFER FLEXIBILIY INVENORY LEAD IME ARGE otal Setup ime ~ 10% of Production ime All rights reserved 24
25 SMALL LO SUMMARY Implementing a pull system requires small lot production Smaller lot sizes can also reduce cost KEY POIN: Quick changeover reduces inventory and lead time while increasing flexibility All rights reserved 25
26 CLOSING DISCUSSION QUESIONS All rights reserved 26
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