Lean production systems Streamlining production and logistics

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1 Session 8: Future Technologies : The Factory of the Future Workshop 8.1 Organization in Production Lean production systems Streamlining production and logistics

2 Agenda 1. Definitions, structure and background of Lean Production Systems (LSP) 2. Dimensions of dissemination 3. Typical elements of LSP and exemplary consequences for production organisation 4. Conclusion and future challenges 2

3 Understanding and objectives of lean production systems (LPS) Definitions LPS are operating instructions for the production of products and services and support the planning, operation and continuous improvement of production processes. nnovative organizational concepts/components that have proven to be a best-practice solutions, are matched in an overall system. /Fraunhofer AO/ LPS can be understood as a dynamic network of design principles, methods and tools for the planning, operation and ongoing improvement of business processes. t is run with a high degree of employee participation. /MTM/ Objectives Structuring, describing and quantifying the strategies, methods and instruments / tools associated with the value creation process Representation of interlinkages and interdependencies between the individual components Establish transparent and comprehensible but also flexible standards for the entire company Management philosophy Focussing on overall optimization of production instead of pursuing solutions for single point optimizations

4 Structure of lean production systems specification Objectives (delivery, costs, quality) Principles (process orientation, pull, prevention of errors, flexibility, ) Methods (Poka Yoke, production levelling, Milk Run & supermarkets, Kanban, Kaizen, 5S, PDCA, Jidoka, FMEA, ) normative production management strategic production management also called: elements / sub-systems / modules / field of action Functions to achieve corporate objectives Bundling of methods Also called: components / concepts approaches to implement the single principles Tools (manual, operating instructions, team meeting, Schulungen, brainstorming, maintenance plan, Kanban-card, workshops, interview, qualification matrix, KP-board, audit check list, ) operative production management Also called: instruments / techniques Supporting implementation of methods

5 Phases of development of lean production systems Taylorism Division of labour Mass production Fordism REFA Assembly line production Standardisation Toyotism Toyota produktion system (TPS) Lean Thinking nnovative work organisation Lean Management Production Administration Manufacturing Volvoism Group work decentralisation Processes ntegration of isolated elements of production organization Applicability in all business areas (not fixed to production) LSP Origin: automotive industry, especially TPS Applicability to all industries / business types

6 Examples for the structure of LPS of some companies Toyota production system Total Quality Control (TQC) Just-in-Time (JT) Jidoka (Autonomation) Total Quality Control (TQC) Flexible production Cost reductions by systematic avoidance of waste HelPS Null Fehler Effizienter Produktanund -auslauf Beherrschte Lieferkette Stetige Verbesserung + Standardisierung Mitarbeiter fördern + fordern MAN-Production System (MNPS) Hella Production System (HelPS) Bosch Production System (BPS) Mercedes Benz-Production System (MPS)

7 Levels of dissemination of lean production systems Sectors ndustry Service providers Branches Automotive Mechanical Engineering Electronics Process industry Level of added value OEM Tier 1 Tier 2 Tier n Business processes Production Production related processes Product / process design Administration processes

8 Value chain-wide dissemination of lean production systems Current Gegenwärt focus iger of Schwerpunkt impact of der Lean GPS- Production Wirksamkeit Systems Logistik- Logistics dienst- leister Providers Service (LDL) (LSP) nzulieferer th -tier supplier n.-stufe Zulieferer 1 st -tier supplier 1.-Stufe OEM Großhandel Wholesaler ndustrielle ndustrial Logistics Logistik Handelslogistik Commercial Logistics Retailer Handel Final Endkunde customer

9 nter-organizational dissemination of lean production systems Supporting processes / indirect processes Primary processes / direct processes ncoming Logistics Manufacturing nfrastructure Human Ressources Reserach & Develpoment Procurement Outgoing Logistics Marketing and Sales After Sales Margin Current focus of impact of Lean Production Systems Future traget / postulation: application of production system principles to all business processes

10 nterbranch dissemination of lean production systems Vehicle Fahrzeugherst Manufactureres eller Zulieferer Suppliers Sonst Other ige branches Branchen Eisenach t 2008 Sources: /WNN02, DOMB05, own research/

11 Cross-sector dissemination of lean production systems consignor Logistics Service Provider (LSP) consignee Processes (e.g. development, Manufacturing) nterface processses (e.g. packaging, manufacturing) Processes (e.g. transport, warehousing, consignment, waste disposal) nterface processses (e. g. ship to line) Processes (e.g. assembly) ncreasing requirements: e.g. shorter development times, higher quality, Need for cost reductions, ncreasing requirements: e. g. more complex process control, hiher flexibility, shorter time for reaction, integration to customer/supplier-processes ncreasing requirements: e.g. higher delivery reliability, stronger customer integration, more variants, Methods Principles quality Objectives robust processes material supply LPS Value stream design Kanban Legende: Requirements of Consignor-LPS For the LSP, esp. Regarding interface processes Processes in responsibilty of LSP? Requirements of Consignee-LPS For the LSP, esp. Regarding interface processes Methods Processes in responsibilty of consignor/consignee Principles deliv. reliability Objectives standardisation CP LPS kaizen workshops

12 Fertigungsprozesse Technologien und und Systeme Methoden Qualitätssysteme AMS Auftragssteuerung Materialsysteme Mitarbeitersysteme Derivation of typical elements of lean production systems Logistik Gestaltungsprinzipien Visuelles Management Professionelle Arbeitsroutinen Prozess- und Arbeitsorganisation KVP Kontinuierlicher Verbesserungsprozess JiT-Logistik Q Arbeitsplatzorganisation / Sicherheit Qualitätssicherung Visualisierung Bedarfsorientierte Materialversorgung Standardisierung Kontinuierlicher Verbesserungsprozess Jidoka & Stabilität Flexible Produktion TPM * / Fabrik- & Anlagenplanung Qualifizierung Arbeitsorganisation Gesundheits-, Arbeitsund Umweltschutz Gestaltungsoptim ierung Führung Just in Time Kontinuierliche Verbesserung Qualitätsm anagem ent Robuste P rozesse Standardisierte Arbeit Visuelles M anagem ent Null Fehler Effizienter Produktanund -auslauf Beherrschte Lieferkette Stetige Verbesserung + Standardisierung Mitarbeiter fördern + fordern Detailled analysis of structure of four reference-production systems Arbeitsorganisation Standardisierung/ Visualisierung Verbesserungsprozess dealwelt- Produktionssystem Qualitätssicherung /WNN02/ * TPM = Total Productive Maintenance / produktive nstandhaltung Basiselemente Werkzeugelemente Zielelemente /OELT00/ /MTM01b/ Robuste Prozesse /SCHO03/ Consolidation to standard elements of a typical lean production system Qualitätsmanagement & robuste Prozesse Produkt - & Prozessentwicklung Logistik & Produktionssteuerung Standard elements of LPS Kontinuierlicher Verbesserungsprozess Standardisierung & Visuelles Management Arbeitsorganisation & Mitarbeiterorientierung Plausibility check by matching standard elements with elements of more than 30 industrial LPS Toyota Produktionssystem Just-in- Jidoka Total Time (Autono- Total Quality (JT) mation) Quality Control Control (TQC) (TQC) Flexible Produktion HelPS Kostenreduzierung durch Vermeidung von Verschwendung Produktion im Kundentakt, Taktfertigung Logistik, KVP, Fertigungssteuerung Qualifikation, Ausbildung, Sicherheit Visualisierung Standardisierung Fertigungsgerechte Betriebsmittel Sicherheit & Ordnung Shopfloor Management Fehlervorbeugung, Fehlerrückmeldung, Fehlerbeseitigung, Auditierung

13 Typical elements of lean production systems Fostering quality thinking and acting Supporting zero-defects-manufacturing by systematic error detection, prevention and avoidance Capability and stabilisation of processes Synchronization of demand and production Flexibility of process chains Levelled production Flow orientation SE-2 Logistics & production control Quality management & robust processes SE-1 Product & process design SE-6 Lean processes in indirect business areas Taking lean principles into account in all life cycle phases of products Planning of processes capable for lean production Process orientation Employees are qualified and independent team players Performance promoting working conditions and motivation Participatory leadership Labour organisation & employee orientation SE-3 SE-4 Standardisation & visual management SE-5 Continuous improvement Continuous checking of current state Use of employee creativity by involving all stakeholders Promotion of willingness to change Standardised and binding, but changeable sequences Transparency and simplification in service provision Common Best Practices

14 mplications of LSP for production organisation: Simplified Current State of a Value Stream of a First-tier Supplier Delivery plan ERP-System Suplier of packaging material Supplier LSP Storage Production SP for packaging material SP for empty containers Linebuffers Consolidation point Buffer stock Linebuffers Buffer stock FGstorage Customer Empty containers Supplier part Finished goods (FG) Customer storage LSP logistics service provider SP Service provider nventory nformation flow Material flow

15 mplications of LSP for production organisation: Simplified Future State of a Value Stream of a First-tier Supplier after introducing a LSP Forecast ERP-System Forecast Overseas customer Production Supplier external Milkrun Supplier internal Milkrun Customer Supermarket FG-Supermarket Custo mer Empty containers Supplier part Finished goods (FG) nformation flow Material flow Flow of Kanban cards

16 Conclusion LPS consolidate and systematise the manifold organisational approaches in an overall framework they ensure a stringent alignment of methods and tools in use to superordinated business objectives LPS are becoming increasingly widespread among companies of different branches, sizes, sectors the content of LPS has multiple impacts on the organisation of production of a company overall, the definition and implementation of a LPS seems to be a success story 17

17 and future challenges often companies see the introduction of LPS still highly bureaucratic (focussing on the creation of the manual, staff positions, ), the true "spirit" is to be anchored better / more consistent in many cases stronger consideration of environmental issues requires critical analysis and possibly adjustments/changes to the pool of well established lean techniques and methods adaptation of the method level to the needs of a demographic change among labor force (within the standard element work organization) continue to force the transfer of the successes in the use of LPS contents on industries/ processes beyond automotive/production 18

18 Thank you very much. Do you have any questions or remarks?

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