Lean - Manufacturing 4

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Lean Manufacturing 4

Lean Manufacturing and Process


Improvement
Lecture 5, October 08, 2020

Week 5 Lean Manufacturing/ Process Improvement Slide 1


Heijunka (Production Leveling)

Heijunka is defined as
Leveling the type and quantity of production over a
fixed period of time. This enables production to
efficiently meet customer demands while avoiding
batching and results in minimum inventories,
capital costs, manpower, and production lead time
through the whole value stream.

- Lean Lexion

Heijunka is leveling of production by both product


volume and mix

Week 5 Lean Manufacturing/ Process Improvement Slide 2


Concept

“The slower but consistent tortoise causes less


waste and is much more desirable than the speedy
hare that races ahead and then stops occasionally
to doze. The Toyota Production System can be
realized only when all the workers become
tortoises.”
- Taiichi Ohno

Week 5 Lean Manufacturing/ Process Improvement Slide 3


Benefits

• Flexibility to make what the customer wants when


they want it.
• Reduced risk of unsold goods.
• Balanced use of labor and machines.
• Smoothed demand on the upstream processes and
suppliers
• Stabilize manufacturing processes

Week 5 Lean Manufacturing/ Process Improvement Slide 4


Why Heijunka?

Product Leveling

Producing products in large batches may reduces set-


up time and changeover, but result in
• Excess inventory
• Increased Defects
• Long lead time
• Idle time/ overtime

An even mix of products help avoid the impacts


{LFM Students] – ESD.60 LeanSix Sigma Systems, LFM, MIT

Week 5 Lean Manufacturing/ Process Improvement Slide 5


Why Heijunka?

Production Leveling

• Fluctuating demand can create “Bullwhip effect” –


amplified demand through out the supply chain
• Fluctuation demand may also lead to excessive
overtime or idle time

An leveled production volume eases complication


{LFM Students] – ESD.60 LeanSix Sigma Systems, LFM, MIT

Week 5 Lean Manufacturing/ Process Improvement Slide 6


Implementing Heijunka
Step 1: Decide on make to stock VS make to order
5 different items in Group A: 60% demand
5 different items in Group B: 20% demand
15 different items in Group C: 20% demand

Week 5 Lean Manufacturing/ Process Improvement Slide 7


Implementing Heijunka
Step 2: Determine finished goods inventory level

Cycle Stock
Amount required to cover
normal demand
- Average demand
- Lead time to replenish
Buffer Stock
Quantity

Amount required due to


demand fluctuation
- Demand volatility
- Forecast error

Safety Stock
Amount required to cover for
internal losses
Time
- Down-time losses
- Quality losses

Week 5 Lean Manufacturing/ Process Improvement Slide 8


Implementing Heijunka
Step 3: Organize and control finished goods
inventory
• Finished goods must be stored near shipping dock
• Buffer and safety stock must be kept separate from
cycle stock
• Buffer inventory should only be removed with the
authorization from production control
• Must review periodically to examine customer
demand
• Only Plant manager should have the authority to
authorize use of safety inventory

Week 5 Lean Manufacturing/ Process Improvement Slide 9


Implementing Heijunka
Step 4: Select pacemaker process to help
scheduling
Pacemaker is the point at which production is
scheduled.
• In replenishment pull, Final assembly will be pace
maker in almost every case.
• In sequential pull, the pacemaker is set at the
beginning of the production process

Week 5 Lean Manufacturing/ Process Improvement Slide 10


Implementing Heijunka
Step 5: Level production at the pacemaker

• Batch or lot sizes determine the replenishment cycle


for finished goods
• Lead time reduction can only be achieved by reducing
lot sizes

• Reduce work content difference between products


• Reduce Changeover Time (SMED)
• Determine pitch interval to level product mix

Week 5 Lean Manufacturing/ Process Improvement Slide 11


Implementing Heijunka
Pitch interval calculation

• Pitch = takt time x pack-out quantity


= 54 sec x 10 = 540 sec = 9 min
• Pitch interval = Time available / Pitch
= 450 min / 9 min = 50 intervals
• Time intervals per A, B, C items
Total % of Interval per item Equivalent time
intervals product mix for production
50 intervals X 60% = 30 for A items 9minx30 = 270 min

50 intervals X 20% = 10 for B items 9minx10 = 90min

50 intervals X 20% = 10 for C items 9minx10=90min

Week 5 Lean Manufacturing/ Process Improvement Slide 12


Implementing Heijunka
Schedule production by product type and part
number

Week 5 Lean Manufacturing/ Process Improvement Slide 13


Implementing Heijunka
Step 6: Convey demand to pacemaker to create pull
Step 7: Manage information and material flow upstream from
the pacemaker

• Implement Kanban system


• The downstream process must pull from upstream process
• The upstream process should only replenish the quantity
withdrawn
• No defect should be allowed to pass onto the next process
• Kanban must be attached to the part of container
• No part should be produced or transported without kanban
instruction
• The container must contain the quantity of parts indicated on
Kanban

Week 5 Lean Manufacturing/ Process Improvement Slide 14


Implementing Heijunka
Step 8: Design supermarket and trigger withdrawal pull
a) Set standard inventory of each part in the assembly area based on
delivery frequency
Delivery route
• Fixed time-variable quantity – In this method Delivery route time is
fixed, quantity delivered to the assembly area may vary depending
on the production situation
• Fixed quantity-variable time – In this method Quantity delivered to
the assembly area is fixed, but the delivery route time is variable
depending on the production situation

If parts are delivered every hour, then Line side inventory (Max number of
containers) = (Containers required per hour x 2) + 1
Where, container required per hr = parts consumed per hr / container
density
Parts consumed per hr = 60 min / takt time
Week 5 Lean Manufacturing/ Process Improvement Slide 15
Implementing Heijunka
Step 8: Design supermarket and trigger withdrawal pull

b) Create a separate withdrawal kanban for each container stored at the


assembly area – Implement Kanban
c) Determine right amount of inventory to hold in the supermarket or
warehouse

Cycle Stock Average daily demand x Lead time to replenish


(days)
Buffer Stock Demand variation as percentage of cycle stock (Two
or more standard deviations of demand variation)
Safety stock Safety factor as a percentage of (Cycle + Buffer
stock) (Average scrap rate or down time)

Super market inventory = Cycle stock + Buffer stock + Safety stock


Week 5 Lean Manufacturing/ Process Improvement Slide 16
Implementing Heijunka
Step 9: Control batch processes upstream from the
super market
a) Determine time available for change over

Total 1 shift production time available (net breaks 450 min


and lunch)
Number of shift X2

Total available time for production on 1 machine = 900 min


during 1 day
Time required per day to meet average demand - 698 min

Net time available for set up and change over per = 202 min
day

Week 5 Lean Manufacturing/ Process Improvement Slide 17


Implementing Heijunka
Step 9: Control batch processes upstream from the
super market
c) Determine production Lot sizes

Part - A 55 Part - B 55 Part - C 55


1000 pieces min 600 pieces min 400 pieces min
339 min 223 min 136 min

Week 5 Lean Manufacturing/ Process Improvement Slide 18


Implementing Heijunka
Step 9: Control batch processes upstream from the
super market
d) Specify a trigger point for reorder

Part # Run Changeover 1st container Total lead time to


time time time replenish
A 136 min + 55 min + 10 min = 201 min

B 223 min + 55 min + 10 min = 288 min

C 339 min + 55 min + 10 min = 404 min

Run time= Part cycle time x lot size


1st container time is the time to prepare one container and deliver it to the
market for use
Week 5 Lean Manufacturing/ Process Improvement Slide 19
Core Concepts to Guide Heijunka
Implementation
o Heijunka box: A working diagram of type leveling and
production schedule.
o Work slowly and consistently
o Changeover time: Efficiency of changeover is the critical to
heijunka; narrowing changeover times helps tighten the value
stream between supply and demand.
o Buffer inventory: Having some product ready to ship at the
beginning of each production cycle is essential to smoothing
production and leveling demand at consistent rates and
quality so that resource waste is minimized on the line.
o Type standardization: By manufacturing one of each product
or service a day, knowledge can be more readily shared
across types to benefit every process.

Week 5 Lean Manufacturing/ Process Improvement Slide 20


Core Concepts to Guide Heijunka
Implementation

o Keeping in mind the core concepts about heijunka will help


keep a company heading in the right direction.
o Takt time: The time it takes to finish a product in order to meet
customer demand; can be thought of as the customer buying
rate. It is the guidance for the entire heijunka implementation.
o Volume leveling: Manufacture at levels of long-term average
demand and keep a buffer inventory proportional to variability
in demand, stability of production process and shipping
speed.
o Type leveling: Essentially, make every product every day and
reserve capacity for changeover flexibility; use a heijunka box
to visualize the production flow and schedule.

Week 5 Lean Manufacturing/ Process Improvement Slide 21


Reference
Art Smalley (2009); Creating Level pull; A lean production system improvement guide for
production control, operations and engineering professional, Lean Enterprise Institute

Week 5 Lean Manufacturing/ Process Improvement Slide 22

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