What’s most difficult in production often isn’t making the product but organizing all the parts and materials that go into it, notes LEI CEO John Shook in the presentation “Learning To See:
Making Value Flow From End to End.” He covers how lean management developed to solve this problem from Henry’s Ford Highlight Park, MI, assembly line to the development of the Toyota Production System. He covers key TPS elements and methods such as value-stream mapping, built-in quality, one piece flow, waste elimination, total system efficiency, and developing people as problem solvers.
2. What is “LEAN”?
MIT International Motor Vehicle Program
– Toyota Production System as “LEAN
Production”
Flow production from Ford
PDSA from Deming
Toyota’s JIT system dynamics and supply chain
design
Toyota’s engagement of people to build in quality
and solve problems for continuous kaizen
Management System
o A highly developed socio-technical system
• With focus on system and people
development
3. Lean Thinking, Lean Practice,
Lean Value Streams
A simple definition:
Develop people, process, and
systems to meet customer
need while consuming the
fewest possible resources.
4. Automobiles: A Century of
Value Stream Challenges
• Reliable, affordable personal mobility
• Ford Model T and Highland Park
• Transportation fashion
• GM: a car for every wallet
• Transportation fashion and affordability
• Toyota flow with variety
• Globalization
• Diffusion of TPS and TMS
• Environmental sustainability
• The next frontier – Toyota with a slight lead…
5. The Problem of Production
• What’s most difficult often isn’t making
the product.
• It’s organizing all the parts and materials
that go into it.
6. The Problem of Production
In the case of cars:
• 20-30,000 parts must come together at exactly
the right time once per minute.
• Almost all parts are engineered specifically for
each model of car.
• Most cars are unique.
12. MASS PRODUCTION
“B
”
Body Paint Assembly
Stamping
B B B B B B B B B B
B
Sub-Assy
B
= Storage
Supplier Supplier Supplier
= Push
Suppliers
13. MASS PRODUCTION
with Diverse Customers
C?
A!
Body Paint Assembly
Stamping
C C A A B B B B B B
B
Sub-Assy
B
= Storage
Supplier Supplier Supplier
= Push
Suppliers
14. The Problem of Production - Cars
6.2%
9,544 SPECIFICATION SETS
1,280 SPECIFICATION SETS
76,745 VEHICLES
(50%)
51 - 50-31 30-11 10-4 2-3 1 VEHICLE / 1 SPECIFICATION
ONE TYPICAL MONTH’S TOTAL SPECIFICATION SETS: 19,349
15. LEAN PRODUCTION Customer
Pr. Control Requirements
LEVELING “B?
”
A
Stamping Body Paint Assembly
C B A B B C A B B C B
A
Sub-Assy
C
(sequenced)
Suppliers
=Pull
= “Supermarkets”
16. Built-In Quality
High Cost
Ability to find
Low root cause
In-Process Next Process Final Inspection Customer
Location of Defect Detection
17. To produce an order of ten products that is processed
through three steps, batch & queue versus one piece flow
Process A Process B Process C
Lead Time: 30 ++ minutes for total order
CONTINUOUS FLOW “make one, move one”
Lead Time: 12 minutes for total order
19. Short Lead Time
– Get each process to produce only what the
next process needs when it needs it.
– Orchestrate (control, manage, regulate)
operations to get ever closer to this ideal, ever
shortening the lead time.
ORDER CASH
“All we’re trying to do is shorten the time line…”
Taiichi Ohno
20. Value Stream Improvement and
Process-step Improvement
VALUE STREAM
PROCESS PROCESS PROCESS
Stamping Welding
Assembly
Cell
Raw Finished
Material Product
The Three Value Streams: Order to Delivery
Concept to Launch
Lifecycle Maintenance
24. Lean Thinking
Womack and Jones:
• Specify value from the standpoint of the customer.
• Identify the value stream for each product/family –
from concept to launch & order to delivery – and
remove the wasted steps (the muda).
• Make value flow.
• At the pull of the customer.
• Strive continually for perfection.
25. What is Value Stream Mapping?
– A tool to display flow of material and
information of a business process
through all the steps (value creating
and not) as it moves from beginning
to end.
– A process to align a team around a
target condition, a Future State, for
that value stream and plan to achieve
it.
27. Future State Questions
VALUE STREAM VISION
•What is the Takt Time?
(How do you understand customer demand?)
• Where can you flow?
• Where should you pull?
• At what single point in the production
chain do you trigger production?
• How much work do you trigger and take away?
• How do you level the production mix?
PROCESS KAIZEN to Support the Value Stream Vision
• What process improvements are necessary?
(reliability, quick changeover, etc.)
28. Takt Time
Matches Pace of Production with Pace of Sales
Operating Time per Shift
Takt Time =
Production Requirement per Shift
450 minutes 59 sec.
= 59 sec
460 pieces 59 sec.
59 sec.
30. Pull System
Rules:
Following processes go to preceding processes and
withdraw the amount need when they need it.
Preceding processes replenish exactly what is taken away.
Withdrawal
Production
Kanban
Kanban
Preceding Following
Process Process
New Needed
Product Product
Supermarket
31. Pull System
Assumptions:
• Production schedules will always change
• Production will never go according to
schedule, anyway
Withdrawal
Production
Kanban
Kanban
Preceding Following
Process Process
New Needed
Product Product
Supermarket
32. What is Your EPEX?
Every Part Every Week
Monday 400A
Tuesday 100A, 300B
Wednesday 200B, 200C
Thursday 400C
Friday 200C, 200A
DANGER:
Every Part Every Day Kanban
Tsunami
Monday:
140 A, 100 B, 160 C
Monday Every Part Every X (EPEX)
20 A 10 C 20 A 10 C 20 A 10 C 20 B 10 A
20B 20 A 20 B 20 A 20 B 20 A 20 C 20 B
10 C 20 C 10 C 20 C 10 C 20 C 10 A 20 C
How do you want to run your operations?
Why?
35. Future State Questions
VALUE STREAM VISION
•What is the Takt Time?
(How do you understand customer demand?)
• Where can you flow?
• Where should you pull?
• At what single point in the production
chain do you trigger production?
• How much work do you trigger and take away?
• How do you level the production mix?
PROCESS KAIZEN to Support the Value Stream Vision
• What process improvements are necessary?
(reliability, quick changeover, etc.)
37. Fujio Cho of Toyota:
“Production Control”
“When you try to apply TPS, the first thing you
have to do is to “even out” or level the
production flow. And that is the responsibility
primarily of production control.”
38. Role of Production Control
1. Interface between customer
requirements and company capability .
2. Must satisfy both sales and
manufacturing.
3. Must be very strong.
39. The challenge of any business:
Matching capability with demand
MUDA (Excess)
Capability
Demand
MURI (Overburden)
MURA (Instability) •Know your demand
•Know your true capability (capacity)
Management •Create flexibility to get them to match
TIME
39
40. System Design to Control the 3 M’s
MUDA = Waste
MURI = Overburden
MURA = Variation, fluctuation
1. Design the system with sufficient capacity to
fulfill customer requirements without
overburdening people, equipment, or methods.
41. System Design to Control the 3 M’s
MUDA = Waste
MURI = Overburden
MURA = Variation, fluctuation
1. Design the system with sufficient capacity to
fulfill customer requirements without
overburdening people, equipment, or methods.
2. Reduce controllable variation/fluctuation to a
bare minimum.
42. System Design to Control the 3 M’s
MUDA = Waste
MURI = Overburden
MURA = Variation, fluctuation
1. Design the system with sufficient capacity to
fulfill customer requirements without
overburdening people, equipment, or methods.
2. Reduce variation/fluctuation to a bare minimum.
3. Eliminate sources of waste!
44. MURA – Fluctuation, Variation
“Variability will be buffered by some
combination of inventory, capacity and time.”
- Hopp and Spearman,
Factory Physics
This is true for any kind of capacity, not
just factory equipment, e.g. people in
product development.
45. What is a system?
• “A network of interdependent
components that work together to try
to accomplish the aim of the system.”
- W.E. Deming
45
46. What is a system?
•A process (or network of processes) with
inputs, outputs and a feedback loop that
enables adaptation. That’s what an Material
& Information Flow system is.
•Value Stream Mapping, used fully and
properly, does much more than simply
identify waste to eliminate. VSM is a tool &
process to design lean value creating
systems.
46
47. Lean Thinking, Lean Practice,
Lean Value Streams
A simple definition:
Develop people, process, and systems to
meet customer need while consuming
the fewest possible resources.
Hinweis der Redaktion
This is Henry Ford in 1913. He created flow for a product that was complex in number of processes but simple in variety. Flow is not so difficult when you only make one type of product. Enablers: Huge market need, Observation and reverse engineering of Chicago meat disassembly Interchangeable parts
This is Alfred Sloan product variety – a car for every wallet – imposed on Ford’s flow production. Result: mass production, lack of flow, must waste.
Not all cars all the same. This is an example from a Toyota plant in the 1980s. One month production volume about 150,000 units 20,000 specification sets 10,000 unique examples (accounting for 6% of volume 1280 specification sets occur more than 50 times (doesn’t show, but the pareto 80-20 rule applies, so you would see a Mathew Stewart whale, a classic glenday sieve example)
Toyota solved the problem with experiments starting after 1950, producing high-variety with low volume, by switching from push to pull.
This slide shows the basic rationale of the principle of quality at the source, comparing the cost and ability to find root cause if identifying a defect in-process, next process, final inspection or at the customer. Toyota turned the Ford approach to quality versus production on its head, swapping the roles of production versus quality inspection.
The basic, powerful logic of one-piece flow.
An old Toyota cartoon, pre-dating NUMMI. Illustrating the responsibility of leaders to develop their people. Two responsibilities: accomplish the mission and develop people.
Ohno’s emphasis on shortening the lead time. Shorten the time line from getting an order and converting it into cash. Shorten any lead time. To shorten lead times focuses efforts on eliminating waste and barriers to flow.
Conventional thinking was to focus efforts on individual processes. Optimizing individual processes can be technically difficult and costly. To shorten lead time, focus on the space between processes. Three value streams: Raw Material to Delivery Order to Cash Concept to Launch Lifecycle maintenance
Eliminate overproduction and you will shorten lead time, improve customer response, reduce cost.
Another old Toyota cartoon. It doesn’t‘ help for the one rower to try to row harder or faster. In fact, it hurts.
A University of Michigan Japan Technology Management Program slide. Lean or TPS is a system – you can’t just pick and choose the tools you like. To implement it as a system, focus on creating flow. Learn the think through doing.
The famous, influential, somewhat controversial five principles of Womack & Jones from Lean Thinking…
Most mapping tools either plot material or information flow but not both. A value stream map does both and also includes time. It is thus a system design tool, the only user-friendly system design tool we know. VSM is called M&I Flow at Toyota, where it was developed and used by specialists to plan model production system improvements.
A complete VS CS map. Customer – process flow – process characteristics/data – inventory locations and amounts – information flow – time (value-creating and non-value creating) – overall Production Lead Time versus Value Added Time. It is a snapshot, verified through direct observation at the gemba.
Important: the process kaizen question comes last. It’s the last question to ask in analysis but defines the first things to do. This set of questions is just slightly different from the book.
The aim of the system must be clear to everyone in the system. The aim must include plans for the future. The aim is a value judgment.”
The aim of the system must be clear to everyone in the system. The aim must include plans for the future. The aim is a value judgment.”