CHAPTER 5 : LEAN SYSTEM

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SLIDE 4

▪ Lean systems are operations systems that maximize the value added by each of a company’s activities by paring

unnecessary resources and delays from them.
▪ Lean system describes a business or business unit that holistically applies Lean principles to the way it plans, prioritizes,

manages, and measures work. The goal for any Lean system is to maximize customer value.
▪ Emphasizes the prevention of waste (Mura) : extra time, labor or material spend that does not value to the product or

service.

is mainly focused on reducing waste within the production process and ensuring that all resources are utilized
to their full potential. This might seem redundant in the context of typical management principles, but it’s
quite unique in certain aspects. Lean production has various established methods for identifying waste and
removing it over time. However, they take time to master, and some of them keep evolving as well.

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• Toyota Production System (TPS) is one of the most admired lean
manufacturing systems in existence.

• They have a process of continuous improvement.
• Work is completely specified as to content, sequence, timing, and

outcome.
• Services and goods do not flow to the next available person or

machine, but to a specific person or machine.
• Employees are stimulated to experiment to find better ways to do

their jobs.
• Improvements to the system must be made in accordance with the

scientific method, under the guidance of a teacher, at the lowest
possible organizational level.

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TOYOTA PRODUCTION SYSTEM

PRESENTATION TITLE

Your company information

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Uniform Small lot Quality at the Pull method of
workstation sizes source work flow

loads
Flexible
workforce

Five S Automation Close Standardized
Line flows supplier ties components

Preventive & work
maintenance methods

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SLIDE 9

▪Push method: a method in Pull Method: A method in which
customer demand activates
which production of the item production of the service or item.
begins in advance of customer
needs.

Example: A buffet where food is prepared in ▪ Example: A restaurant where food is
advance. only prepared when orders are
placed.

Lean systems use the pull method of work flow

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SLIDE 10

PUSH VS PULL
SYSTEM

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PULL SYSTEM LEAN SYSTEM

Here the customer starts the
process, pulling an inventory item

from Final Assembly
Then sub-
assembly work is
pulled forward by
that demand
The process continues throughout
the entire production process and

supply chain
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QUALITY OF SOURCES SLIDE 12

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SLIDE 15

▪ Lot:
▪ A quantity of items that are processed together.

▪ Setup:
▪ The group of activities needed to change or

readjust a process between successive lots of
items
▪ Single-digit setup:
▪ The goal of having a setup time of less than 10
minutes.

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SMALL LOT SIZES

▪ Duo ei elit tation complectitur, iudico vocent hendrerit ne vim,
qui ad legere libris delectus. Aeque liberavisse id per, sed
laoreet evertitur ad. No mucius epicuri constituto mel, pro
adhuc decore populo cu, lobortis accommodare est ex. In sed
rebum etiam meliore. Et eripuit dissentiet has, ex nec oratio
tation sapientem. Eu quo dico solet fastidii.

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Toyota U.S.A. Sweden W. Germany

Setup Time 10 min 6 hr. 4 hr. 4 hr.

Setups/Day 3 1 - 1/2

Lot Size 1 day* 10 days 1 month -

SLIDE TITLE

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Uniform plant load states that balance between operations is more important than speed and ideally
we should never produce faster than the customer requirement rate.

A lean system works best if the daily load on individual workstations is
relatively uniform

For manufacturing processes, uniform loads can be achieved by assembling the same
type and number of units each day, thus creating a uniform daily demand at all
workstations.

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UNIFORM PLANT LOADING (HEIJUNKA)

suppose we operate a production plant that produce a single product. The
schedule of production for this product could be accomplish using either of two

loading schedules below.

How does the
uniform loading
help save labour

costs???

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STANDARDIZED COMPONENTS AND WORKS METHODS

SLIDE 21

▪ The standardization of components called part commonality or modularity increase
repeatability

▪ For example a firm producing 10 products 1000 ▪ Productivity tends to increase because with
from different components could redesign its increased repetition, workers learn to do tasks
products so that they consists of only 100 more repetition, worker learn to do tasks more
different components with longer daily efficiently.

requirements ▪ Standardized of components and work methods aid
▪ Because the requirements per components in achieving the high productivity, low inventory
objectives of JIT systems
increase so does repeatability, that is each work
performs a standardized tasks or work method
more often each day
21
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SLIDE 22

Everyone can perform standardized work

▪TREND ▪TEEN ▪TRICK

▪ Production ▪ Material ▪ Office

Standardized work is used when there is a definable, repeatable
process

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CLOSE SUPPLIERS TIES

▪JIT systems operate with ▪ Purchasing managers focus on three areas:
very low levels of inventory, 1. Reducing the number of suppliers
2. Using local suppliers
close relationships with 3. Improving suppliers relations.
suppliers are necessary
▪Stocks shipments must be
frequent, have short lead
times, arrive on schedule,
and be of high quality

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FLEXIBILITY WORKFORCE

Workers in flexible workforce can be trained
to perform more than one job.
When the skill levels required to perform most
tasks are low, a high degree of flexibility in the
workforce can be achieved with little training

▪ In situation requiring higher skills levels, shifting workers to
other jobs may require extensive, costly training

▪ Flexibility can be very beneficial : worker can be shifted among
workstations to help relieve bottle necks as they arise without
resolving to inventory buffer an important aspects to uniform
flow in JIT system

▪ Multi skilled workers may do the job of those who are on
vacation or who are absent due to sickness

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The ability of workforce to flex to other jobs as demand fluctuates
within the system, and the efforts the organization undertakes to

unsure this occurs

• Improve worker skill set
• Maximize organizational

flexibility
• Focused training and

development plans
• Allow the abilityto flex to

our customer’s demands

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LINE FLOWS

SLIDE 26

A line flows strategy can reduce frequency of set-ups.❑ Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do
eiusmod tempor incididunt ut labore et dolore magna aliqua.

❑ If volume of specifics products are large enough (mass production) group of machines and workers can be
organized into a products lay-out to eliminate set-up entirely.

❑ If volume is insufficient to keep a line of similar products busy, group technology can be used to design small
products lines that manufactures in volume, families of components with common attributes.

❑ Change over from components in one product family to the next components in the same family are minimal.

Presentation Title Here Slide
26
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Automation plays a big role in JIT system and is key to low cost ▪
production
▪4
Money freed up because of JIT inventory reduction can be invested
in automation to reduce

▪ NEW PROPOSAL

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AUTOMATION SLIDE 28 ▪

❑ Automation plays a big role in JIT system and is key to low ▪ NEW PROPOSAL
production.

❑ Money freed up because of JIT inventory reduction can be
invested in automation to reduce costs.

❑ The benefits of course are greater profits greater market share
or both.

❑ However automation should be planned carefully.

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▪ SORT/SEIRI Separate needed from unneeded items (including tools, parts, materials, and paperwork), and
▪ STRAIGHTEN/SEITON discard the unneeded.
Neatly arrange what is left, with a place for everything and everything in its place. Organize
the work area so that it is easy to find what is needed.

▪ SHINE/SEISO Clean and wash the work area and make it shine.

▪ STANDARDIZE/SEIKETSU Establish schedules and methods of performing the cleaning and sorting. Formalize the
▪ SUSTAIN/SHITSUKE cleanliness that results from regularly doing the first three S practices so that perpetual
cleanliness and a state of readiness is maintained.
Create discipline to perform the first four S practices, whereby everyone understands, obeys,
and practices the rules when in the plant. Implement mechanisms to sustain the gains by
involving people and recognizing them via a performance measurement system.

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EXPLAINATION 5S IN FACTORY

YES, WE ARE HERE NOW

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deleniti atque corrupti, quos dolores et quas molestias excepturi sint

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THE POWER OF POWERPOINT
FOMALHAUT TEMPLATE

Jun Akizaki
Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna
aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.

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Prevention is a schedule planned maintenance actions aimed at the preventation of
breakdown and failures. The primary goal of prevention maintenance is to prevent
that failure of equipment before it actually occurs.

Prevention maintenance ca.n reduce the frequency and duration of machine
down time. It itIst ditessidgneesdigtnoepdretsoerpvreeand enhance equipment reliability by

replacing worn components before they actually fail.
Maintenance is done on a scheduled (frequency) that balances the cost of the
prevention maintenance program against the risks and costs of machine failure.

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CONTINUOUS IMPROVEMENT

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DEFINITION KAIZEN

KAI + ZEN
To modify, to Think, make good,
make better
change

What KAIZEN
KAIZEN Make it easier by studying it, and making
means??? the improvement through elimination of

waste

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❑ Kaizen activities focus on each on each process in order to add value and eliminate waste
❑ It is often the case that this means “to take it apart and put back together in a better

way”
❑ This is then followed by standardisation of this better way with others, through

standardized work

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PROCESS OF KAIZEN

Company name

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The main idea is that the problem is best visible and use a systematic method to measure
understandable when you go directly to the place where improvements. The PDCA cycle is a system for
operations are performed and where the problem occurs (e.g. constant improvement, where P stands for Plan,
the factory floor in manufacturing). The “real place” is usually D for Do, C for Check, and A for Acknowledge
also where the best ideas on how to solve the problem can be and Act
found
THE PDCA CYCLE OF IMPROVEMENT
Gemba Kaizen
-

5 Whys 5S PROGRAM

which aims to identify the root cause of the you get most out of Kaizen when everything is
problem. If you really want to improve, you standardized. The five S’s stand for seiri
must find the real cause of the problem. (tidiness), seiton (orderliness), seiso
(cleanliness), seiketsu (standardization), and
shitsuke (discipline – keep the effort going).
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Company name

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Kanban means “card” or “visible record” in Japanese & refers to
cards used to control the flow of production through a factory.

▪ 1 Each container must have a card.

▪2 The assembly line always withdraws materials from
fabrication (pull system).

▪3 Containers of parts must never be removed from a storage
area without a kanban being posted on the receiving post.

▪ 4 The containers should always contain the same number of good

parts. The use of nonstandard containers or irregularly filled
containers disrupts the production flow of the assembly line.

▪ 5 Only nondefective parts should be passed along

▪6 Total production should not exceed the total amount
▪6 authorized on the kanbans in the system.

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KANBAN SYSTEM

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Kanban square kanban square is a marked area that will hold a certain number of output items (usually
▪ Signal kanban one or two). If the kanban square following his or her process is empty, the worker knows
▪ Dual kanban it is time to begin production again
Supplier kanban Signal kanbans are used when inventory between processes is still necessary. It closely
Material kanban resembles the reorder point system. A triangular Kanban used to signal production at the
previous workstations.
Employs two kanban cards, one for the supplier process, also known as the production kanban or
P-kanban, and one for the customer process, also known as the conveyance kanban, or C-kanban.
These are most useful in complex flexible systems.
Supplier kanbans is rotate between the factory and supplier. It can also be used outside the
factory to order material from suppliers. The supplier brings the order (e.g., a filled container)
directly to its point of use in the factory and then picks up an empty container with kanban
to fill and return later.
Material kanban is a rectangular-shaped kanban. In some cases it is necessary to order
the material for process in advance of the initiation of the process.

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SLIDE 47

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SLIDE 48

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N=

Where
N = Number of Kanban or containers
d = average number of units demanded over time period
L = lead time ; the time it takes to replenish an order (expressed in the same terms as

demand)
S = safety stock ; usually given as a percentage of demand during lead time but can be

based on service level and variance of demand during lead time
EOQ/C = containers size

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SKF Bearing company produces ball bearing to handle both thrust and radial loads. A
typical container of parts takes 0.02 day in processing and 0.08 day in material
handling and waiting its manufacturing cycle. Daily demand for the part is 7000
units. Management believes that demand for the ball bearing is uncertain enough to
warrant a safety stock equivalent for 10 percent of inventory
a) Assume each container contains 55 parts, determine the number of containers
b) A proposal to revise that plant layout would cut materials handling and waiting

time per container to 0.05 day. Determine the number of containers that would be
needed.

EXAMPLE

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