Lean Production for Competitive Advantage: A Comprehensive Guide to Lean Methods and Management Practices, 2nd Edition
Contents:
Foreword……………………………………………………………………………………xxv
Preface…………………………………………………………………………………………xxix
Acknowledgements………………………………………………………………….xxxiii
About the Author………………………………………………………………….. xxxv
1 Race without a Finish Line………………………………………………………………………………..1
Competitive Advantage: Better, Cheaper, Faster, More Agile………………………………………. 2
Lean Production and Total Quality Management…………………………………………………….. 3
Lean Production and the Production Pipeline………………………………………………………….. 3
The Lean Difference…………………………………………………………………………………………….. 4
Evolution of Manufacturing………………………………………………………………………………….. 5
The Machine that Changed the World………………………………………………………………… 5
Craftsmanship Yields to Industrialization……………………………………………………………. 5
Craft Production of Automobiles……………………………………………………………………….. 6
Ford’s Mass Production System………………………………………………………………………….. 6
Emergence of Modern Mass Production……………………………………………………………… 7
Mass Production Around the World……………………………………………………………………. 8
Toyoda and Ohno……………………………………………………………………………………………. 8
Toyota Production System—Prototype for Lean Production………………………………………. 9
Reduced Setup Times………………………………………………………………………………………. 9
Small Batch Production and One-Piece Flow……………………………………………………….. 9
Quality at the Source……………………………………………………………………………………….10
Equipment Maintenance…………………………………………………………………………………..10
Pull Production……………………………………………………………………………………………….11
Standard Work………………………………………………………………………………………………..11
Supplier Partnerships………………………………………………………………………………………. 12
Employee Involvement and Empowerment………………………………………………………… 12
Continuous Improvement ………………………………………………………………………………. 12
Training within Industry………………………………………………………………………………………13
America’s Fall from Manufacturing Grace……………………………………………………………….14
Climbing Back………………………………………………………………………………………………..15
Modern Developments……………………………………………………………………………………..15
The Imperative…………………………………………………………………………………………………….17
Organization of the Book……………………………………………………………………………………..17
Questions……………………………………………………………………………………………………………18
Research Questions………………………………………………………………………………………………19
Suggested Reading……………………………………………………………………………………………….19
Notes……………………………………………………………………………………………………………….. 20
Section I _CONTIN UOUS IMPROVEMENT , WASTE ELIMIN ATION ,
CUSTO MER-FOCUSED QUALIT Y
2 Fundamentals of Continuous Improvement……………………………………………………….23
Continuous Improvement as Tactics and Strategy…………………………………………………… 24
Incremental Improvement: Kaizen……………………………………………………………………. 24
Innovation Improvement…………………………………………………………………………………..25
Making the Leap……………………………………………………………………………………………. 26
Improvement as Strategy…………………………………………………………………………………. 28
Lean Production: Innovative and Breakthrough Improvement………………………………. 30
Finding and Implementing Improvements……………………………………………………………… 30
PDCA Improvement Cycle………………………………………………………………………………. 30
Plan Step……………………………………………………………………………………………………31
Do Step……………………………………………………………………………………………………. 32
Check Step……………………………………………………………………………………………….. 32
Act Step……………………………………………………………………………………………………. 32
Go See……………………………………………………………………………………………………… 32
Five-Why Process…………………………………………………………………………………………….33
Value Analysis/Value Engineering…………………………………………………………………….. 34
Value Analysis Procedure…………………………………………………………………………….. 34
Employee-Driven Kaizen………………………………………………………………………………… 36
Kaizen Events………………………………………………………………………………………………… 37
Basic Problem-Solving and Analysis Tools…………………………………………………………. 39
Check Sheet………………………………………………………………………………………………. 39
Histogram………………………………………………………………………………………………… 40
Pareto Analysis………………………………………………………………………………………….. 42
Scatter Diagram…………………………………………………………………………………………. 42
Process Flowchart………………………………………………………………………………………. 43
Cause-and-Effect Analysis…………………………………………………………………………… 44
Run Diagram……………………………………………………………………………………………..45
Value Stream Mapping……………………………………………………………………………………..47
Consensus Building……………………………………………………………………………………………. 50
Nemawashi…………………………………………………………………………………………………… 50
A3 Report…………………………………………………………………………………………………….. 50
A3 Format and Purpose………………………………………………………………………………..51
A3 Process………………………………………………………………………………………………….51
Problem-Solving A3……………………………………………………………………………………..52
Summary………………………………………………………………………………………………………….. 54
Questions………………………………………………………………………………………………………….. 54
Problems…………………………………………………………………………………………………………….55
Suggested Reading……………………………………………………………………………………………… 58
Notes……………………………………………………………………………………………………………….. 58
3 Value Added and Waste Elimination…………………………………………………………………61
Value-Added Focus…………………………………………………………………………………………….. 62
Necessary and Unnecessary Activities……………………………………………………………….. 62
Support Organization…………………………………………………………………………………….. 63
Employee Involvement……………………………………………………………………………………. 63
Historical Note: Gilbreths and the One Best Way……………………………………………….. 64
Sources of Waste………………………………………………………………………………………………… 64
Toyota’s Seven Wastes + 1………………………………………………………………………………… 64
Producing Defects……………………………………………………………………………………….65
Overproduction…………………………………………………………………………………………..65
Waiting………………………………………………………………………………………………………65
Nonutilized Human Talent ………………………………………………………………………… 66
Transportation and Material Handling…………………………………………………………. 66
Inventory……………………………………………………………………………………………………67
Motion…………………………………………………………………………………………………….. 68
Extra Processing………………………………………………………………………………………… 69
Canon’s Nine Wastes………………………………………………………………………………………. 69
Muda, Muri, and Mura…………………………………………………………………………………… 70
Lean to Green……………………………………………………………………………………………….. 70
Lean Principles………………………………………………………………………………………………….. 71
Simplification………………………………………………………………………………………………… 71
Product, Process, and Procedure Simplification………………………………………………. 72
Concurrent Engineering……………………………………………………………………………….74
Cleanliness and Organization……………………………………………………………………………74
Improvement Kickoff………………………………………………………………………………….. 75
Five-S……………………………………………………………………………………………………….. 75
Benefits…………………………………………………………………………………………………….. 78
Visibility……………………………………………………………………………………………………….. 80
Data Collection and Measurement……………………………………………………………………. 82
Grassroots Measurement……………………………………………………………………………… 82
Visual Management……………………………………………………………………………………. 82
Bottom Line……………………………………………………………………………………………… 83
Cycle Timing………………………………………………………………………………………………… 83
Agility……………………………………………………………………………………………………………85
Variability Reduction……………………………………………………………………………………….85
Standardization……………………………………………………………………………………………… 86
Lean Principles beyond Manufacturing……………………………………………………………… 87
The Meaning of Lean Production…………………………………………………………………………. 87
Implementation Barriers………………………………………………………………………………….. 89
Attitudes…………………………………………………………………………………………………… 89
Time Commitment……………………………………………………………………………………. 89
Quality Commitment…………………………………………………………………………………. 90
Misunderstanding Lean Production………………………………………………………………….. 90
Social Impact of Lean……………………………………………………………………………………… 90
First Things First……………………………………………………………………………………………..91
Learn as You Go………………………………………………………………………………………………91
Summary………………………………………………………………………………………………………….. 92
Questions………………………………………………………………………………………………………….. 93
Problems…………………………………………………………………………………………………………… 94
Suggested Reading……………………………………………………………………………………………… 94
Notes……………………………………………………………………………………………………………….. 94
4 Customer-Focused Quality………………………………………………………………………………97
Quality Defined…………………………………………………………………………………………………. 97
Customer’s Perspective……………………………………………………………………………………. 98
Voice of the Customer…………………………………………………………………………………….. 98
Producer’s Perspective……………………………………………………………………………………… 99
Quality of Design and Kano Model………………………………………………………………….. 99
Quality of Conformance……………………………………………………………………………….. 100
Total Quality Management……………………………………………………………………………….. 100
TQM Integrative Framework…………………………………………………………………………..101
Marketing, Sales, and Finance……………………………………………………………………..102
Product Design and Manufacturing Process Design………………………………………..102
Purchasing and Suppliers…………………………………………………………………………….103
Production Management and Frontline Workers…………………………………………….104
Customer Service……………………………………………………………………………………….104
Six Sigma………………………………………………………………………………………………………….104
Statistical Interpretation………………………………………………………………………………….105
Define, Measure, Analyze, Improve, Control Improvement Process……………………….106
Belts and Certification……………………………………………………………………………………107
Statistical Process Control, SPC……………………………………………………………………………107
Control Chart……………………………………………………………………………………………….107
Process Stability…………………………………………………………………………………………….109
Process Capability………………………………………………………………………………………….110
Nonstatistical Process Control………………………………………………………………………… 111
Employee Involvement and Quality Ownership……………………………………………………..112
Frontline Worker Responsibility……………………………………………………………………….112
Process Orientation………………………………………………………………………………………..112
Quality Training and Education………………………………………………………………………113
Implementing TQM…………………………………………………………………………………………..113
Barriers to Successful TQM…………………………………………………………………………….114
TQM and Lean Production…………………………………………………………………………………114
Summary…………………………………………………………………………………………………………. 115
Questions………………………………………………………………………………………………………….116
Suggested Reading……………………………………………………………………………………………..116
Notes……………………………………………………………………………………………………………….117
Section II E LEMENT S OF LEAN PRODUCTION
5 Small Lot Production……………………………………………………………………………………121
Lot-Size Basics…………………………………………………………………………………………………..121
Dollar Costs Associated with Lots…………………………………………………………………… 122
Lot Sizing and Setup Reduction……………………………………………………………………… 122
Kind of Lots………………………………………………………………………………………………… 123
Lot Sizing……………………………………………………………………………………………………….. 123
Process and Purchase Batches…………………………………………………………………………. 123
Lot-for-Lot………………………………………………………………………………………………. 123
Period Order Quantity……………………………………………………………………………… 124
Economic Order Quantity…………………………………………………………………………..125
Economic Manufacturing Quantity……………………………………………………………. 126
EOQ-Based Methods: Discussion…………………………………………………………………… 127
Transfer Batches…………………………………………………………………………………………… 128
Lot-Size Reduction…………………………………………………………………………………………….129
Effect of Lot-Size Reduction on Competitive Criteria………………………………………….129
Lead Time………………………………………………………………………………………………. 130
Inventory………………………………………………………………………………………………….131
Setup and Handling Cost……………………………………………………………………………132
Quality…………………………………………………………………………………………………….132
Flexibility…………………………………………………………………………………………………133
Batch Size One = One-Piece Flow……………………………………………………………………. 134
Case for Larger Process Batches………………………………………………………………………. 136
Minimal Lot Size…………………………………………………………………………………………..137
Buffer Stock………………………………………………………………………………………………….138
Demand Variability……………………………………………………………………………………138
Lead Time Variability…………………………………………………………………………………139
Facilitating Small Lot Sizes………………………………………………………………………………….139
Process Batches………………………………………………………………………………………………139
Purchase Quantities……………………………………………………………………………………….139
Transfer Batches…………………………………………………………………………………………….140
Delivery and Shipping Batches…………………………………………………………………………140
Continuous Improvement……………………………………………………………………………………141
Summary………………………………………………………………………………………………………….141
Questions………………………………………………………………………………………………………….142
Problems…………………………………………………………………………………………………………..142
Notes……………………………………………………………………………………………………………….145
6 Setup-Time Reduction…………………………………………………………………………………..147
Improve Setups? Why Bother?……………………………………………………………………………..147
Traditional Approaches…………………………………………………………………………………..147
Find Another Way………………………………………………………………………………………….148
Benefits of Simplified Setups……………………………………………………………………………149
Setup: A Case in Neglect…………………………………………………………………………………150
Setup-Reduction Methodology…………………………………………………………………………….150
Shingo and Single-Minute Exchange of Dies……………………………………………………..150
SMED Methodology for Setup Reduction………………………………………………………… 151
Stage 1: Identify Internal and External Steps…………………………………………………. 151
Stage 2: Convert Internal Steps to External……………………………………………………152
Stage 3: Improve All Aspects of the Setup Operation………………………………………153
Stage 4: Abolish Setup………………………………………………………………………………..154
Minimum Setup Time………………………………………………………………………………………..155
Techniques for Setup Reduction…………………………………………………………………………..155
Separate Internal and External Steps…………………………………………………………………156
Checklists…………………………………………………………………………………………………156
Equipment Checks and Repairs……………………………………………………………………156
Setup Schedules…………………………………………………………………………………………157
Improve Internal Setups………………………………………………………………………………….157
Parallel Setup Tasks……………………………………………………………………………………157
Attachment Devices……………………………………………………………………………………158
Eliminate Adjustments……………………………………………………………………………….160
Improve External Setups…………………………………………………………………………………162
Storage……………………………………………………………………………………………………..162
Setup Kits and Carts………………………………………………………………………………….162
Material Handling……………………………………………………………………………………..163
Abolish Setup………………………………………………………………………………………………..164
Setup-Reduction Projects…………………………………………………………………………………….165
Scope of Project……………………………………………………………………………………………..165
Setup-Reduction Team……………………………………………………………………………………166
Ready, Get Set, Shoot!…………………………………………………………………………………….166
Video Recording Analysis……………………………………………………………………………….167
Generating and Selecting Ideas………………………………………………………………………..167
Continuous Improvement……………………………………………………………………………….169
Setups Everywhere……………………………………………………………………………………………..169
Summary………………………………………………………………………………………………………….169
Questions………………………………………………………………………………………………………….170
Problems…………………………………………………………………………………………………………..170
Suggested Reading……………………………………………………………………………………………..172
Notes……………………………………………………………………………………………………………….172
7 Maintaining and Improving Equipment………………………………………………………….173
Equipment Maintenance…………………………………………………………………………………….173
Breakdown Repair………………………………………………………………………………………….174
Equipment Problems and Competitiveness………………………………………………………..174
Preventive Maintenance………………………………………………………………………………….175
Total Productive Maintenance…………………………………………………………………………175
TPM Benefits……………………………………………………………………………………………175
Equipment Effectiveness……………………………………………………………………………………..176
Equipment Losses………………………………………………………………………………………….176
Maintainability……………………………………………………………………………………………..177
Reliability……………………………………………………………………………………………………..177
Failure Pattern…………………………………………………………………………………………..177
Mean Time between Failure………………………………………………………………………..179
Availability……………………………………………………………………………………………………180
Availability and Downtime for Repair…………………………………………………………..180
Availability and All Downtime…………………………………………………………………….181
Repair Downtime Variability……………………………………………………………………….181
Efficiency……………………………………………………………………………………………………..182
Rate Efficiency…………………………………………………………………………………………..182
Speed Efficiency…………………………………………………………………………………………183
Quality Rate…………………………………………………………………………………………………183
Overall Equipment Effectiveness………………………………………………………………………184
Preventive Maintenance Program…………………………………………………………………………184
Causes of Equipment Problems………………………………………………………………………..184
Maintain Normal Operating Conditions…………………………………………………………..185
Maintain Equipment Requirements………………………………………………………………….185
Keep Equipment and Facilities Clean and Organized………………………………………….186
Monitor Equipment Daily……………………………………………………………………………….186
Schedule Preventive Maintenance…………………………………………………………………….187
Ways to Schedule PM…………………………………………………………………………………187
Scheduled PM and Failure Pattern……………………………………………………………….187
Manage Maintenance Information……………………………………………………………………190
Use Predictive Maintenance…………………………………………………………………………….192
Role of Operators…………………………………………………………………………………………..193
Total Productive Maintenance……………………………………………………………………………..194
TPM Preventive Maintenance………………………………………………………………………….194
In-House Capability to Restore and Redesign Equipment……………………………………196
Human Error in Operation and Maintenance…………………………………………………….196
Education and Training………………………………………………………………………………197
Mistake-Proofing……………………………………………………………………………………….197
Maintenance Procedures……………………………………………………………………………..197
Implementing TPM……………………………………………………………………………………………201
Program Feasibility………………………………………………………………………………………..201
Program Objectives and Master Plan………………………………………………………………. 202
Target Areas………………………………………………………………………………………………… 202
Target Area Committees……………………………………………………………………………….. 202
Plantwide Issues…………………………………………………………………………………………… 203
Management Support……………………………………………………………………………………. 204
Maintenance Organization……………………………………………………………………………. 204
Decentralization………………………………………………………………………………………. 204
Central Maintenance………………………………………………………………………………… 204
Summary………………………………………………………………………………………………………… 205
Questions………………………………………………………………………………………………………… 206
Problems…………………………………………………………………………………………………………. 206
Suggested Reading……………………………………………………………………………………………. 208
Notes……………………………………………………………………………………………………………… 208
8 Pull Production Systems……………………………………………………………………………….211
Production Control Systems………………………………………………………………………………..212
Pull Systems and Push Systems…………………………………………………………………………….212
Pull Production Process…………………………………………………………………………………..213
Why Pull Production Cannot be Stockless…………………………………………………………214
Push Production Process…………………………………………………………………………………216
Pull and Push Contrasted………………………………………………………………………………..218
Containers and Cards……………………………………………………………………………………..219
Rules for Pull Production………………………………………………………………………………. 220
How to Achieve Pull Production………………………………………………………………………….221
Pull System as a Fixed-Quantity/Reorder-Point System……………………………………….221
Containers in a Buffer……………………………………………………………………………………….. 223
Container Size……………………………………………………………………………………………… 224
Material Handling……………………………………………………………………………………….. 224
Outbound and Inbound Buffers……………………………………………………………………… 225
Conveyance Kanbans………………………………………………………………………………………… 225
Production Kanbans…………………………………………………………………………………………. 227
Single P-Card System……………………………………………………………………………………. 229
Safety Factor……………………………………………………………………………………………….. 230
Signal Kanbans………………………………………………………………………………………………… 230
What, More Cards?……………………………………………………………………………………………235
Express Card…………………………………………………………………………………………………235
Temporary Card…………………………………………………………………………………………….235
Odd-Number Card………………………………………………………………………………………..235
Other Mechanisms for Signal and Control…………………………………………………………… 236
Wheeled Carts…………………………………………………………………………………………….. 236
Kanban Squares…………………………………………………………………………………………… 236
Golf Balls……………………………………………………………………………………………………. 237
Electronic Kanban……………………………………………………………………………………….. 238
Clothespin Clips…………………………………………………………………………………………… 238
Milk Run……………………………………………………………………………………………………. 238
Kanban Sequence Board……………………………………………………………………………….. 238
Continuous Improvement………………………………………………………………………………….. 240
Practical Matters………………………………………………………………………………………………. 242
Necessary Conditions for Pull Production……………………………………………………….. 242
Pull Production and Repetitive Production………………………………………………………. 244
When Pull Does Not Work……………………………………………………………………………. 244
Pull and Push Systems, Both at Once……………………………………………………………….245
Getting Started……………………………………………………………………………………………..245
Summary………………………………………………………………………………………………………… 246
Questions………………………………………………………………………………………………………….247
Problems…………………………………………………………………………………………………………..247
Suggested Reading……………………………………………………………………………………………..251
Notes……………………………………………………………………………………………………………….251
9 Focused Factories and Group Technology……………………………………………………….253
Ways of Doing Work………………………………………………………………………………………… 254
Variety–Efficiency Tradeoff……………………………………………………………………………..255
Facilities Layout…………………………………………………………………………………………………255
Fixed-Position Layout……………………………………………………………………………………..255
Process Layout……………………………………………………………………………………………….256
Product Layout………………………………………………………………………………………………257
Variety–Volume Tradeoff………………………………………………………………………………..258
Group Technology……………………………………………………………………………………………..259
Product Coding and Classification Schemes………………………………………………………259
Hierarchical (Monocode) Structure………………………………………………………………259
Chain (Polycode) Structure……………………………………………………………………….. 260
Hybrid Structure……………………………………………………………………………………….261
Product Families and Focused Factories…………………………………………………………….261
GT and Product Design………………………………………………………………………………….261
To Code or Not to Code……………………………………………………………………………….. 262
Focused Factory……………………………………………………………………………………………….. 262
On What to Focus……………………………………………………………………………………….. 263
Microdesign Issues……………………………………………………………………………………….. 266
Flexible Flow Lines…………………………………………………………………………………….267
Flexible U-Lines and S-Lines……………………………………………………………………….267
Working Out the Final Layout…………………………………………………………………… 268
Product-Quantity Analysis………………………………………………………………………………… 269
Establishing Product–Machine Groups……………………………………………………………….. 269
Coding and Classification……………………………………………………………………………….270
Visual Cluster Analysis Using Routings…………………………………………………………….270
Production Flow Analysis………………………………………………………………………………..271
Binary Ordering Algorithm……………………………………………………………………….. 272
Dense Blocks, Then What?………………………………………………………………………………274
Advantages and Disadvantages of Focused Factories………………………………………………..276
Summary………………………………………………………………………………………………………… 278
Questions………………………………………………………………………………………………………… 279
Problems…………………………………………………………………………………………………………. 279
Suggested Reading……………………………………………………………………………………………..281
Notes……………………………………………………………………………………………………………… 282
10 Workcells and Cellular Manufacturing…………………………………………………………..283
Workcell Concepts……………………………………………………………………………………………. 284
Workstations, Workers, and Machines…………………………………………………………….. 284
Workcell Output and Number of Workers……………………………………………………….. 284
Workcell Applications……………………………………………………………………………………….. 285
Typical Workcell End Items…………………………………………………………………………… 285
Linked Workcells and Subcells……………………………………………………………………….. 285
Workcell Design………………………………………………………………………………………………. 288
Digression: Cycle Time ………………………………………………………………………………… 288
Assembly Workcells………………………………………………………………………………………. 289
Machining Workcells……………………………………………………………………………………..293
Workcell Capacity………………………………………………………………………………………… 296
Cost–Capacity Tradeoff Analysis……………………………………………………………………. 297
Batch Size = 1……………………………………………………………………………………………….. 298
Sequential Changeover Tasks…………………………………………………………………………. 299
Productivity Improvement…………………………………………………………………………….. 300
Quality Control…………………………………………………………………………………………….301
Workcells beyond Manufacturing…………………………………………………………………………301
Workers in Cells………………………………………………………………………………………………. 302
Staffing a Workcell……………………………………………………………………………………….. 302
Simultaneous Staffing of Multiple Cells…………………………………………………………… 302
Equipment Issues……………………………………………………………………………………………… 303
Machine Sharing………………………………………………………………………………………….. 304
Machine Acquisition…………………………………………………………………………………….. 304
Special Operations……………………………………………………………………………………….. 305
Cell Automation………………………………………………………………………………………………. 306
Implementing Cellular Manufacturing………………………………………………………………… 307
Planning and Control…………………………………………………………………………………… 307
Organizational Issues……………………………………………………………………………………. 308
Roles and Responsibilities………………………………………………………………………….. 308
Incentive Plans…………………………………………………………………………………………. 308
Time and Rate Standards………………………………………………………………………….. 309
Team Education and Training……………………………………………………………………..310
Attitudinal Issues…………………………………………………………………………………………..311
Shop-Floor Workers……………………………………………………………………………………311
Supervisors……………………………………………………………………………………………….311
Management……………………………………………………………………………………………..312
Getting Started………………………………………………………………………………………………….312
Summary………………………………………………………………………………………………………….313
Questions………………………………………………………………………………………………………….314
Problems…………………………………………………………………………………………………………..314
Suggested Reading……………………………………………………………………………………………..317
Notes……………………………………………………………………………………………………………….317
11 Standard Work…………………………………………………………………………………………….319
Standard Work………………………………………………………………………………………………….319
Shop-Floor Relevancy…………………………………………………………………………………… 320
Shop-Floor Involvement………………………………………………………………………………… 320
Benefits………………………………………………………………………………………………………..321
Takt Time…………………………………………………………………………………………………………321
Completion Time Per Unit………………………………………………………………………………… 322
Standard Time for a Task………………………………………………………………………………. 322
Completion Time for a Unit………………………………………………………………………….. 323
Production Capacity……………………………………………………………………………………….324
Standard Operations Routine………………………………………………………………………………325
Kinds of SORs………………………………………………………………………………………………325
SOR Sheet…………………………………………………………………………………………………… 326
Operations Routine and Process Routing Sequence…………………………………………….329
Idle Time……………………………………………………………………………………………………..329
Standard Quantity WIP……………………………………………………………………………………. 330
Standard Operations Sheet………………………………………………………………………………… 330
Standard Work and Continuous Improvement……………………………………………………….332
Conditions for Successful Standard Work………………………………………………………………335
Standard Work in the Service Sector……………………………………………………………………. 336
Leader Standard Work………………………………………………………………………………………..337
Summary………………………………………………………………………………………………………….337
Questions………………………………………………………………………………………………………….339
Problems…………………………………………………………………………………………………………..339
Suggested Reading……………………………………………………………………………………………. 340
Notes……………………………………………………………………………………………………………… 340
12 Quality at the Source and Mistake-Proofing………………………………………………….. 343
SPC Limitations………………………………………………………………………………………………. 343
100% Inspection (Screening)……………………………………………………………………………… 344
Self-Checks and Successive-Checks…………………………………………………………………. 344
Successive-Checks…………………………………………………………………………………….. 344
Requirements for Self-Checks and Successive-Checks……………………………………..345
Check Targets……………………………………………………………………………………………345
Feedback and Action………………………………………………………………………………….345
Consideration and Support for Workers………………………………………………………. 346
Automation…………………………………………………………………………………………………. 346
Cycle Time………………………………………………………………………………………………….. 347
Pursuit of Perfection: Limits of Inspection……………………………………………………….. 347
Jidoka……………………………………………………………………………………………………………… 347
Autonomation……………………………………………………………………………………………… 348
Andons……………………………………………………………………………………………………….. 348
Source Inspection and Pokayoke…………………………………………………………………………. 348
Source Inspection…………………………………………………………………………………………. 349
Pokayoke Functions……………………………………………………………………………………….351
Regulatory Pokayokes…………………………………………………………………………………351
Setting Pokayokes………………………………………………………………………………………352
Pokayoke Ideas………………………………………………………………………………………………354
Continuous Improvement……………………………………………………………………………….355
Summary………………………………………………………………………………………………………….355
Questions………………………………………………………………………………………………………….356
Problems…………………………………………………………………………………………………………..357
Suggested Reading……………………………………………………………………………………………..357
Notes……………………………………………………………………………………………………………….357
13 Production Preparation Process, 3P………………………………………………………………..359
Breakthrough Redesign…………………………………………………………………………………….. 360
Product Development Approaches………………………………………………………………………. 360
Traditional………………………………………………………………………………………………….. 360
Integrated……………………………………………………………………………………………………..361
3P: Integrated Rapid-Learning……………………………………………………………………………..361
Common Themes…………………………………………………………………………………………. 363
3P Events ……………………………………………………………………………………………………….. 364
Purpose: Product versus Process……………………………………………………………………… 364
Team Roles………………………………………………………………………………………………….. 364
Event Activities …………………………………………………………………………………………….365
Phases of 3P ……………………………………………………………………………………………………. 366
Information Gathering………………………………………………………………………………….. 366
Innovating: Develop Alternatives……………………………………………………………………. 366
Prototyping and Redesign …………………………………………………………………………….. 369
Optimizing…………………………………………………………………………………………………. 369
Project Planning…………………………………………………………………………………………… 369
Case in Point: Redesigning the Emergency Department…………………………………………..370
Overview………………………………………………………………………………………………………370
Information Gathering: VSM and 5S………………………………………………………………..370
Event 1: Redesigning the Overall ED ……………………………………………………………….371
Innovate: Develop Alternatives…………………………………………………………………….372
Prototype and Selecting Best Design…………………………………………………………….373
Event 2: Redesign Trauma Area……………………………………………………………………….374
Event 3: Redesign Staff Support Areas………………………………………………………………375
Event 4: Redesign Triage and Patient Bays…………………………………………………………376
Project Planning…………………………………………………………………………………………….376
Results………………………………………………………………………………………………………….376
3P Necessary Conditions…………………………………………………………………………………… 377
Do It Early in the Design Process…………………………………………………………………… 377
Use an Experienced Team……………………………………………………………………………… 377
Be Committed………………………………………………………………………………………………378
Practice Project Management…………………………………………………………………………..378
3P Benefits………………………………………………………………………………………………………..378
Summary………………………………………………………………………………………………………….378
Questions………………………………………………………………………………………………………….379
Suggested Reading……………………………………………………………………………………………. 380
Notes……………………………………………………………………………………………………………… 380
Section III _LEAN PRODUCTION PLANNIN G,
CONT ROL, AND SUPPLY CHAIN S
14 Uniform Flow and Mixed-Model Scheduling……………………………………………………385
Leveling Production …………………………………………………………………………………………. 386
Leveling with Buffer Stocks……………………………………………………………………………. 386
Leveling with Uniform Schedules…………………………………………………………………… 387
Requirements for Level Production Schedules…………………………………………………… 388
Continuous, Stable Demand………………………………………………………………………. 388
Short Setup Times……………………………………………………………………………………. 389
Production = Demand……………………………………………………………………………….. 389
Leveling Focus…………………………………………………………………………………………….. 389
Leveling the Master Production Schedule………………………………………………………… 390
Leveling One Product Group…………………………………………………………………….. 390
Leveling Multiple Products………………………………………………………………………….391
Leveled Schedules: A Cooperative Effort………………………………………………………….. 394
Mixed-Model Production: Heijunka……………………………………………………………………..395
Final Assembly Schedule…………………………………………………………………………………395
Heijunka………………………………………………………………………………………………………395
Batch Size……………………………………………………………………………………………….. 396
MMP and Production Smoothing………………………………………………………………. 396
MMP Schedule……………………………………………………………………………………………. 397
Maintaining MMP………………………………………………………………………………………. 398
Requirements for MMP………………………………………………………………………………… 399
Flexible Workers………………………………………………………………………………………. 399
Quality Assurance……………………………………………………………………………………. 400
Small-Lot Material Supply…………………………………………………………………………. 400
MMP Advantages ……………………………………………………………………………………….. 400
Elimination of Losses Due to Line Changeover…………………………………………….. 400
Balanced Work Loads……………………………………………………………………………….. 400
Fewer Losses from Material Shortages…………………………………………………………. 400
Continuous Process Improvement………………………………………………………………..401
Production Planning and Scheduling in Different Circumstances……………………………..401
Production Philosophy……………………………………………………………………………………401
Make to Stock…………………………………………………………………………………………..401
Assemble to Order……………………………………………………………………………………. 402
Make to Order…………………………………………………………………………………………. 402
Final Assembly Scheduling versus Master Production Scheduling……………………………. 403
MTS: Uniform (Level) Production Schedule…………………………………………………….. 404
Assemble to Order………………………………………………………………………………………… 406
Modular Bills…………………………………………………………………………………………… 406
Modularization Procedure…………………………………………………………………………. 407
Planning Bills………………………………………………………………………………………….. 408
Alternative to Planning Bills………………………………………………………………………..410
Role of Concurrent Engineering…………………………………………………………………..410
Make to Order………………………………………………………………………………………………411
Scheduling with Backlogs……………………………………………………………………………411
Minimizing Scheduling Problems…………………………………………………………………411
Hybrid Systems……………………………………………………………………………………………..414
Summary………………………………………………………………………………………………………….415
Questions………………………………………………………………………………………………………….416
Problems…………………………………………………………………………………………………………..417
Suggested Reading……………………………………………………………………………………………..421
Notes……………………………………………………………………………………………………………….421
15 Synchronizing and Balancing the Process……………………………………………………….423
Synchronization……………………………………………………………………………………………….. 423
Synchronized Cycle Times…………………………………………………………………………….. 424
The Essence of Cycle Time…………………………………………………………………………….. 426
Bottleneck Scheduling………………………………………………………………………………………. 427
Principles…………………………………………………………………………………………………….. 427
Throughput Pace……………………………………………………………………………………… 427
Buffer Stock…………………………………………………………………………………………….. 427
Process Scheduling…………………………………………………………………………………… 427
Drum–Buffer–Rope…………………………………………………………………………………. 428
Pull from Bottleneck…………………………………………………………………………………….. 428
Balancing………………………………………………………………………………………………………… 428
Line Balancing…………………………………………………………………………………………….. 429
Balancing for MMP……………………………………………………………………………………….431
Other Ways to Achieve Balance……………………………………………………………………… 434
Dynamic Balance…………………………………………………………………………………….. 434
Parallel Line…………………………………………………………………………………………….. 434
Balancing for Synchronous Flow………………………………………………………………………435
Balancing through Worker Reassignment………………………………………………………… 436
Maintaining Synchronization…………………………………………………………………………. 437
Adapting to Schedule Changes…………………………………………………………………………… 438
Alter Production Workday…………………………………………………………………………….. 438
Alter Cycle Time………………………………………………………………………………………….. 439
In Practice: Adjusting to Schedule Changes……………………………………………………… 439
Summary………………………………………………………………………………………………………… 440
Questions………………………………………………………………………………………………………… 441
Problems…………………………………………………………………………………………………………. 441
Suggested Reading……………………………………………………………………………………………. 443
Notes……………………………………………………………………………………………………………… 443
16 Planning and Control in Pull Production………………………………………………………. 445
The Whole Enchilada……………………………………………………………………………………….. 446
Centralized System……………………………………………………………………………………….. 446
Decentralized System……………………………………………………………………………………. 447
Centralized Planning and Control System……………………………………………………………. 448
Monthly Planning………………………………………………………………………………………… 448
Preparing MPSs for Future Periods……………………………………………………………… 448
Preparing MPSs for Shop Floor Planning…………………………………………………….. 449
Daily Scheduling………………………………………………………………………………………….. 449
Incorporating Recent Demand Information…………………………………………………. 449
Daily Order Alterations………………………………………………………………………………450
Materials Procurement Forecast……………………………………………………………………451
Local and MRP Supplier Links……………………………………………………………………452
Supplier Kanban Link………………………………………………………………………………..452
Order Sequencing………………………………………………………………………………………452
Decentralized Planning and Control System………………………………………………………….453
Initial Capacity Planning………………………………………………………………………………..453
Capacity Fine-Tuning……………………………………………………………………………………..453
Shop Floor Control…………………………………………………………………………………………….454
Visual Management, Again……………………………………………………………………………..454
Role of Worker Teams…………………………………………………………………………………….454
Adapting MRP-Based PPC Systems to Pull Production……………………………………………454
Simplified Bills of Materials…………………………………………………………………………….454
Flat BOMs………………………………………………………………………………………………..456
Phantom Records………………………………………………………………………………………458
Stock Areas and Points of Use………………………………………………………………………….459
Postdeduct and Deduct Lists………………………………………………………………………….. 460
Rate-Based Master Schedules…………………………………………………………………………..461
Implementing Pull Production with MRP PPC………………………………………………… 462
Step 1: Create a Logical Flow and Improve Material Handling……………………….. 463
Step 2: Introduce the Pull System……………………………………………………………….. 464
Step 3: Create a New Layout and Reduce Reliance on MRP…………………………… 464
Step 4: Continuously Improve the Process……………………………………………………. 464
Summary………………………………………………………………………………………………………….465
Questions………………………………………………………………………………………………………….465
Problems…………………………………………………………………………………………………………. 466
Suggested Reading……………………………………………………………………………………………. 469
Notes……………………………………………………………………………………………………………….470
17 Lean Production in the Supply Chain……………………………………………………………..471
Produce versus Buy…………………………………………………………………………………………….471
Relying on Suppliers…………………………………………………………………………………………..472
Core Competency………………………………………………………………………………………….472
Supply Chain Management…………………………………………………………………………………473
Process and Customer Focus……………………………………………………………………………474
Customer–Supplier Relationships…………………………………………………………………………474
Long-Term …………………………………………………………………………………………………..475
Competency and Capability…………………………………………………………………………….475
Joint Problem-Solving…………………………………………………………………………………….475
Quality at the Source……………………………………………………………………………………..475
Information Sharing……………………………………………………………………………………….475
Partnership Relationships………………………………………………………………………………….. 477
Purchase Criteria………………………………………………………………………………………….. 477
Design and Engineering Source……………………………………………………………………… 477
Number of Suppliers………………………………………………………………………………………479
Type of Agreement……………………………………………………………………………………….. 480
Terms of Agreement……………………………………………………………………………………… 480
Duration…………………………………………………………………………………………………. 480
Price/Cost ………………………………………………………………………………………………. 480
Quality ……………………………………………………………………………………………………481
Shipping ………………………………………………………………………………………………….481
Ordering and Vendor-Managed Inventory …………………………………………………….481
Customer–Supplier Interaction………………………………………………………………………..481
It Doesn’t Come Easy……………………………………………………………………………………. 483
Small-Customer, Big-Supplier Partnership……………………………………………………….. 484
Supplier Selection…………………………………………………………………………………………….. 484
Certification………………………………………………………………………………………………… 485
Certification by Customer…………………………………………………………………………. 485
Certification by Industry Standard or Award………………………………………………… 486
Evaluation…………………………………………………………………………………………………… 486
Purchasing………………………………………………………………………………………………………. 487
Evolution of Purchasing………………………………………………………………………………… 487
Purchasing Role in Lean Production……………………………………………………………….. 487
Lean in the Supply Chain………………………………………………………………………………….. 488
Facilities Layout…………………………………………………………………………………………… 488
Teamwork…………………………………………………………………………………………………… 490
Small-Batch Shipping……………………………………………………………………………………. 490
Logistics Network………………………………………………………………………………………….493
Kanban………………………………………………………………………………………………………. 494
Communication and Scheduling…………………………………………………………………….. 497
Sharing Plans and Schedules………………………………………………………………………. 497
Production Leveling and Uniform Schedules………………………………………………… 497
Point-to-Point Communication……………………………………………………………………498
Preventive Maintenance………………………………………………………………………………… 500
Standard Work…………………………………………………………………………………………….. 500
Getting Started: Begin at Home……………………………………………………………………….501
Summary………………………………………………………………………………………………………….501
Appendix: Supplier Kanban……………………………………………………………………………….. 502
Questions………………………………………………………………………………………………………… 504
Problems…………………………………………………………………………………………………………. 504
Suggested Reading……………………………………………………………………………………………. 505
Notes……………………………………………………………………………………………………………… 506
Section IV LEAN MANAGEMENT SYSTE M
18 Daily Management……………………………………………………………………………………….509
Sustaining Gains……………………………………………………………………………………………… 509
Lean Culture ……………………………………………………………………………………………………510
Lean Transformation = Management/Leadership Transformation……………………………..512
Lean Leadership…………………………………………………………………………………………….512
Leaders vis-a-vis Managers………………………………………………………………………………513
Focus on Process………………………………………………………………………………………..513
Daily Management: Maintain Process Stability and Improvement…………………………….514
Tiers of Standardized Reviews and Accountability…………………………………………………. 515
Level 1. Supervisor Meets with Team Leads or Operators…………………………………….516
Level 2. Department Manager Meets with Supervisors and Support Staff………………517
Levels 3 and 4. Director Meets with Department Managers; VP Meets with
Directors ……………………………………………………………………………………………………..517
Performance Measurement and PDCA………………………………………………………………….517
Tiered Accountability versus Micromanagement ………………………………………………..518
Leader Standard Work ……………………………………………………………………………………….518
Routine Tasks………………………………………………………………………………………………..518
Leader Standard Work Check Sheet………………………………………………………………….521
Training and Learning……………………………………………………………………………………522
Leader Standard Work versus the Great Man……………………………………………………..523
Resistance……………………………………………………………………………………………………..523
Visual Management……………………………………………………………………………………………523
Tools for Management and Control………………………………………………………………….523
KPI Board…………………………………………………………………………………………………….526
Leader Discipline and Information Accuracy……………………………………………………..528
Electronic Information……………………………………………………………………………………528
Daily Huddles ………………………………………………………………………………………………….529
Gemba Walks and Audits……………………………………………………………………………………530
Daily Readiness…………………………………………………………………………………………………530
Rapid Response and Escalation…………………………………………………………………………….531
Continuous Improvement and New Standard Work………………………………………………..532
Implementing Daily Management………………………………………………………………………..533
Summary………………………………………………………………………………………………………… 534
Questions………………………………………………………………………………………………………….535
Suggested Reading……………………………………………………………………………………………..536
Notes……………………………………………………………………………………………………………….536
19 Strategy Deployment…………………………………………………………………………………….539
Improvements Tied to Strategies; Strategies Tied to Vision……………………………………….539
In a Nutshell……………………………………………………………………………………………….. 540
Origins…………………………………………………………………………………………………………… 540
Common Practices and Themes……………………………………………………………………………541
I. Vision, Strategy, and Long- and Medium–Term Goals: Steps 1–4…………………….. 542
II. Cascade Objectives and Plans: Steps 3–5……………………………………………………… 543
III. Catchball and Cross-Functional Management: Steps 3–5……………………………… 543
IV. Goals, Actions, and Targets: Steps 6–7……………………………………………………….. 543
V. Objectives Linked to Daily Management: Steps 5–8……………………………………… 543
VI. Review and Control: Steps 7–9…………………………………………………………………. 544
VII. PDCA (All Steps)………………………………………………………………………………….. 544
Strategic Planning Preparation……………………………………………………………………………. 546
Develop a Future Vision……………………………………………………………………………………. 546
Develop High-Level Objectives and Strategies………………………………………………………. 546
Breakthrough Objectives……………………………………………………………………………….. 546
High-Level Strategies……………………………………………………………………………………. 547
Develop Annual Plan for High-Level Strategies…………………………………………………….. 547
X-Matrix…………………………………………………………………………………………………….. 548
A3 Format…………………………………………………………………………………………………… 549
Deploy Strategies and Plans…………………………………………………………………………………551
Deploy First Level Strategies……………………………………………………………………………551
Deploy Second- and Next-Level Strategies…………………………………………………………552
Roll-Up and Check Consistency………………………………………………………………………554
Implement Plans ……………………………………………………………………………………………….554
Daily Management…………………………………………………………………………………………554
Project Management………………………………………………………………………………………554
Review Progress…………………………………………………………………………………………………555
Daily/Weekly Review……………………………………………………………………………………..555
Monthly Review…………………………………………………………………………………………….555
Annual Review………………………………………………………………………………………………555
Standardize Processes and Work Tasks………………………………………………………………555
Control Departments………………………………………………………………………………………….556
Strategy Deployment Calendar…………………………………………………………………………….556
Top Management Initiation…………………………………………………………………………………558
Benefits and Limitations……………………………………………………………………………………..558
Summary………………………………………………………………………………………………………….559
Questions………………………………………………………………………………………………………… 560
Suggested Reading……………………………………………………………………………………………..561
Notes……………………………………………………………………………………………………………… 562
Index………………………………………………………………………563