CREATED BY

THE PRODUCTIVITY DEVELOPMENT TEAM |

es)

Ee
Just-in-Time
for Operators
SHOPFLOOR SERIES |
 Just-in-Time
for Operators

The Productivity Development Team

Productivity Press
PORTLAND, OREGON
© 1998 by Productivity, Inc.
All rights reserved. No part of this book may be reproduced or utilized in any form or by
any means, electronic or mechanical, including photocopying, recording, or by any infor-
mation storage and retrieval system, without permission in writing from the publisher.
Additional copies of this book and a learning package for leading a book study group are
available from the publisher. Discounts are available for multiple copies through the
Sales Department (800-394-6868). Address all other inquiries to:
Productivity Press
P.O. Box 13390
Portland OR 97213-0390
United States of America
Telephone: 503-235-0600
Fax: 503-235-0909
E-mail: service@productivityinc.com

Cover by Carla Refojo

Cover illustration by Gary Ragaglia
Page design and composition by Stanton Design
Printed and bound by BookCrafters in the United States of America

Library of Congress Cataloging-in-Publication Data

Just-in-time for operators / created by the Productivity Press Development Team.
p. cm.—(Shopfloor series)
Includes bibliographical references.
ISBN 1-56327-133-8 (pbk.)
1. Just-in-time systems. I. Productivity Press Development Team. II. Series.
TS157.4.J86 1998
658.5°6—dce21 97-52252
CIP

0302010099 1098765432
BE contents |
Publisher’s Message
Getting Started

The Purpose of This Book

What This Book Is Based On
Two Ways to Use This Book
How to Get the Most Out of Your Reading
Overview of the Contents

Chapter 1. An Introduction to Just-in-Time

Chapter Overview
What Is Just-in-Time?
Why JIT Is Important
Recognizing Waste
Overproduction Is Waste
InventoryIs Waste

The Benefits of Just-in-Time for Companies

The Benefits of JIT for You ER
BWWNH
oOo

Understanding Processes and Operations

Processes
Operations
Improving Processes as Well as Operations

In Conclusion
Summary
Reflections BNUNRR
PRPRRRPRP
 CONTENTS

Chapter 2. Basic Concepts of Just-in-Time

Chapter Overview
Leveled Production and Sequencing
A Shish-Kebab Production Schedule
A Leveled Production Schedule
Takt Time
Production Sequence

Kanban Systems
Types of Kanban

Basic Rules of Kanban

In Conclusion
. Summary

Reflections

Chapter 3. Process Improvement and Standardization

Chapter Overview 22
Wastes Resulting from Operation-Based Layouts 30
Benefits of a Process Flow Layout 31
Multi-Machine Operation 32
Cross-Training 33
Moving with the Process 33
U-Shaped Cells 34
Small, Flexible Machines 35
Autonomation 36
Standard Work 38
Standard Cycle Time 39
Standard Work Sequence 40
Standard In-Process Inventory 40
Standard Work Forms 41
The Foundation for Continuous Improvement 43
In Conclusion 44
. Summary 44
Reflections 46

vi
i CONTENTS

Chapter 4. Support Techniques for Just-in-Time

Chapter Overview 47
The 5S System for Workplace Organization and Standardization 48
Visual Management Techniques 50
Quick Changeover Methods for Flexible Lot Sizes 52
Stage 1: Separate Internal from External Setup 52

Stage 2: Convert Internal Setup to External Setup 53

Stage 3: Streamline All Aspects of Setup 2 Fe}
Zero Defects Through Zero Quality Control 54
Poka-Yoke Systems Do
Total Productive Maintenance for Dependable Equipment 56
Autonomous Maintenance 56
New Measures of Excellence 58
In Conclusion 60
Summary 60
Reflections 62

Chapter 5. Reflections and Conclusions

Chapter Overview 63
Reflecting on What You’ve Learned 64
Opportunities for Further Learning 65
Conclusions 65
Additional Resources Related to JIT and Shopfloor Improvement 66
Books and Videos 66
Newsletters 68
Training and Consulting 69

vii
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ee Publisher’s Message sl

Just-in-time manufacturing is an approach that can dramatically

boost your company’s competitiveness by eliminating waste from
the production process. ‘The change from traditional large-lot pro-
duction to just-in-time requires a new understanding about what
adds value for the customer and what does not. And although
management determines the manufacturing approach, frontline
operators and assembly people play a key role in making it hap-
pen. This book is intended to share basic knowledge that will
help you participate effectively in this change.
As you read this book, you will realize that just-in-time is not
really one approach, but a set of approaches that supports a dif-
ferent way of operating a factory. These approaches are so inter-
twined that it can be difficult to know where to start. Chapter 1
lays a foundation with some basic definitions related to just-in-
time —and the reasons it is so important for U.S. companies and
their employees. Then, in Chapter 2, we first address leveled
production, because it creates a direct link between production
processes and the estimated needs of customers. The build-what-
the-customer-orders philosophy of leveled production is transmit-
ted throughout the plant by an inventory control system such as
kanban.
Chapter 3 describes another key aspect of just-in-time: improve-
ment of the process to eliminate waste. A key aspect of process
improvement for just-in-time is arrangement of equipment in a
process flow sequence. This simple change has a big effect on
how people interact with equipment, and often entails learning
new skills to operate several different machines in a process
sequence. The new way of performing the process is standardized
by the people in the workplace. The new standard makes the
work in each process predictable and serves as the base for further
improvements.
Chapter 4 briefly describes the 5S system, visual management,
quick changeover, mistake-proofing, total productive mainte-
nance, and other techniques that make just-in-time operation pos- .
sible. Chapter 5 helps the reader review his or her learning and
suggests additional resources for exploring key topics.
[ PUBLISHER’S MESSAGE

It is important to remember as you read that this material is a

general orientation to a complex topic. Implementation and mas-
tery of the just-in-time approach requires a deeper understanding
of the production mechanism. The implementation process is
best supported by experienced consultants and trainers who can
tailor it to your company’s specific situation and help address the
issues that may be raised by this change.
This book incorporates a number of features that will help you
make the most of it. Each chapter begins with an overview of the
contents. The book uses many illustrations to share information
and examples in a visual way. Icons in the margin help identify
key points to remember in each section. And questions built into
the text provide a framework for applying what you’ve learned to
your own situation.
One of the most effective ways to use this book is to read and dis-
cuss it with other employees in group learning sessions. We have
deliberately planned the book so that it can be used this way, with
chunks of information that can be covered in a series of short ses-
sions. Each chapter includes reflection questions to stimulate
group discussion. A Learning Package is also available, which
includes a leader’s guide, overhead transparencies to summarize
major points, and color slides showing examples of just-in-time
techniques in different companies.
The just-in-time approach is simple and universal. It works in
companies all over the world. Today, the basic principles of just-
in-time have been used to eliminate waste in all types of manu-
facturing, assembly, and even service industries. We hope this
book and Learning Package will tell you what you need to know
to make your participation in a just-in-time implementation
active and personally rewarding.

Acknowledgments
This book is modeled after the instructional design developed by
Melanie Rubin, formerly of Productivity, Inc. The form and con-
tent of the Shopfloor Series books have been heavily influenced
by input from Productivity customers, including participants in
two focus groups, readers who reviewed the manuscript, and
respondents to our telephone survey. Dee Tadlock of Read Right
Systems also gave extensive instructional design input and review
to this format.
 PUBLISHER’S MESSAGE

The development of Just-in-Time for Operators has been a strong

team effort. Within Productivity Press, Steven Ott and Diane Asay
played major roles in product definition and support. Karen Jones
served as project manager and developer, advised by Productivity
Consulting Group members Raymond Louis, Frank Hammitt,
Rich Niedermeier, and Connie Dyer. Bill Stanton created the
book and cover design for the series; cover composition was by
Carla Refojo and cover illustration by Gary Ragaglia of The Vision
Group. Susan Swanson managed the prepress production and
manufacturing, with editorial assistance from Sheryl Rose. Page
composition was done by Stanton Design. Graphic illustrations
were created by Lee Smith, and cartoon illustrations were created
by Hannah Bonner.
Finally, the staff at Productivity Press wishes to acknowledge the
good work of the many people who are now in the process of
implementing the just-in-time system in their own organizations.
We welcome any feedback about this book, as well as input
about how we can continue to serve you in your JIT implemen-
tation efforts.

Steven Ott
President

Karen Jones
Senior Development Editor

xi
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BR cetting Started

The Purpose of This Book

Just-in-Time for Operators was written to give you the information
Key Point
you need to participate in implementing the just-in-time manufac-
turing approach in your workplace. You are a valued member of
your company’s team; your knowledge, support, and participation
are essential to the success of any major effort in your organization.
The paragraph you have just read explains the author’s purpose in
writing this book. It also explains why your company may wish
you to read this book. But why are you reading this book? This
question is even more important. What you get out of this book
largely depends on your purpose in reading it.
You may be reading this book because your team leader or man-
ager asked you to do so. Or you may be reading it because you
think it will provide information that will help you in your work.
By the time you finish Chapter 1, you will have a better idea of
how the information in this book can help you and your company
eliminate waste and serve your customers more effectively.

What This Book Is Based On

BACKGROUND

This book is about the just-in-time manufacturing approach,

which was first developed at Toyota Motor Company. Since 1979,
Productivity has brought information about the just-in-time
approach to the United States through study tours, conferences,
newsletters, training, and consulting. Productivity Press supports
just-in-time education with books and other materials on this
important subject. (See pages 66-69 for a list of related resources.)
Just-in-Time for Operators draws on a wide variety of Productivity’s
resources. Its aim is to present the main concepts and techniques
of just-in-time in a simple, illustrated format that is easy to read
and understand.

xiii
 le GETTING STARTED 7 ge

Figure |-1. Two Ways to Use This Book

BACKGROUND
Two Ways to Use This Book
There are at least two ways to use this book:
1. As the reading material for a learning group or study group
process within your company.
2. For learning on your own.
Productivity Press offers a Learning Package that uses Just-in-Time
for Operators as the foundation reading material for a learning
group. Your company may decide instead to design its own learn-
ing group process based on Just-in-Time for Operators. Or, you
may read this book for individual learning without formal group
discussion.

How to Get the Most Out of Your Reading

Becoming Familiar with This Book as a Whole
There are a few steps you can follow to make it easier to absorb
the information in this book. Take as much time as you need to
become familiar with the material. First, get a “big picture” view
of the book by doing the following:
1. Scan the ‘Table of Contents to see how Just-in-Time for Operators
is arranged.
How-to Steps
2. Read the rest of this section for an overview of the book’s contents
.
3. Flip through the book to get a feel for its style, flow, and design.
Notice how the chapters are structured and glance at the pictures.

Xiv
 GETTING STARTED

Becoming Familiar with Each Chapter

After you have a sense of the structure of Just-in-Time for Operators,
prepare yourself to study one chapter at a time. For each chapter,
we suggest you follow these steps to get the most out of your
reading:
— . Read the “Chapter Overview” on the first page to see where the chap-
ter is going.
How-to Steps
. Flip through the chapter, looking at the way it is laid out. Notice the
bold headings and the key points flagged in the margins.
W . Now read the chapter. How long this takes depends on what you
already know about the content, and what you are trying to get out of
your reading. Enhance your reading by doing the following:
e Use the margin assists to help you follow the flow of
information.
e If the book is your own, use a highlighter to mark key information
and answers to your questions about the material. If the book is not
your own, take notes on a separate piece of paper.
e Answer the “Take Five” questions in the text. These will help you
absorb the information by reflecting on how you might implement it.
_ Read the “Chapter Summary” to confirm what you have learned. If
you don’t remember something in the summary, find that section in
the chapter and review it.
V1 . Finally, read the “Reflections” questions at the end of the chapter.
Think about these questions and write down your answers.

XV
 GETTING STARTED

Figure I-2. Giving Your Brain a Framework for Learning

How a Reading Strategy Works

When reading a book, many people think they should start with
the first word and read straight through until the end. This is not
usually the best way to learn from a book. The steps described on
pages xiv and xv are a strategy for making your reading easier,
more fun, and more effective.
Reading strategy is based on two simple points about the way peo-
~ ple learn. The first point is this: It’s difficult for your brain to
Key Point
absorb new information if it does not have a structure to place it
in. As an analogy, imagine trying to build a house without first
putting up a framework.
Like building a frame for a house, you can give your brain a frame-
work for the new information in the book by getting an overview of
the contents and then flipping through the materials. Within each
chapter, you repeat this process on a smaller scale by reading the
overview, key points, and headings before reading the text.
The second point about learning is this: It is a lot easier to learn if
Key Point you take in the information one layer at a time, instead of trying to
absorb it all at once. It’s like finishing the walls of a house: First
you lay down a coat of primer. When it’s dry, you apply a coat of
paint, and later a final finish coat.
 GETTING STARTED

Using the Margin Assists

As you've noticed by now, this book uses small images called mar-
gin assists to help you follow the information in each chapter.
There are five types of margin assists:
BACKGROUND

Background
Information Sets the stage for what comes next

Key Term Defines important words

Key Term

Key Point Highlights important ideas to remember

Key Point

Example Helps you understand the key points

Example

How-to Steps Gives you a set of directions for using

new tools
How-to Steps

Overview of the Contents

Getting Started (pages xiii-xvili)
This is the section you're reading now. It explains the purpose of
Just-in-Time for Operators and how it was written. Then it shares
tips for getting the most out of your reading. Finally, it presents
this overview of each chapter.
Chapter 1. An Introduction to Just-in-Time (pages 1-14)
Chapter | introduces and defines just-in-time manufacturing
and the kinds of waste it helps eliminate. It also explains how the
just-in-time approach benefits companies and their employees,
and defines processes and operations as a framework for the rest
of the book.

xvii
= GETTING STARTED

Chapter 2. Basic Concepts of Just-in-Time (pages

15-28)
Chapter 2 explains key mechanical concepts of just-in-time man-
ufacturing, including leveled production, takt time, and kanban
systems.

Chapter 3. Process Improvement and Standardization

(pages 29-46)
Chapter 3 describes process improvements to eliminate waste.
Topics include process-based equipment layout, multi-machine
operation, and autonomation. It describes how standardization
helps make processes predictable and supports continuous
improvement.
Chapter 4. Support Techniques for Just-in-Time (pages
47-62)
Chapter 4 covers essential methods that make JIT possible,
beginning with the 5S system and visual management. Quick
changeover, poka-yoke (mistake-proofing), total productive main-
tenance, and new performance measures are also described.
Chapter 5. Reflections and Conclusions pages 63-69)
Chapter 5 presents reflections on and conclusions to this book. It
also describes opportunities for further learning about just-in-time
and related techniques.

xviii
 An Introduction to Just-in-Time

| CHAPTER OVERVIEW |

What Is Just-in-Time?
Why JIT Is Important
Recognizing Waste
Overproduction Is Waste
Inventory Is Waste

The Benefits of JIT for Companies

The Benefits of JIT for You
Understanding Processes and Operations
Processes
Operations
Improving Processes as Well as Operations

In Conclusion
Summary
Reflections
 CHAPTER] 1

WE ORDERED AND
RIGHT ON TIME!

ck - \ 4a
. es) Ne

Figure 1-1. Delivering What Customers Want, When They Want, in the Quantity They Want

What Is Just-in-Time?
Just-in-time (often called JIT for short) is a manufacturing
Key Term
approach that enables a company to produce the products its cus-
tomers want, when they want them, and in the amount they want
(see Figure 1-1).
Just-in-time differs from the mass production approach used by
many companies. Mass production is designed to produce large
lots of identical products, which are stored and later shipped to
customers as they are ordered. In contrast, the JIT approach
Key Point allows a company to produce a variety of products in smaller quan-
tities, with a shorter lead time, to meet specific customer needs.
Implementing JIT often means dramatic changes in the Way pro-
duction processes are carried out. This transition is likely to
involve a new way of controlling the production schedule based
on customer needs. It will probably mean a new equipment lay-
out and new roles for operators. This chapter explains why these
and other changes are worthwhile for you and your company. It
will also introduce you to basic JIT concepts and principles, and
prepare you for learning about JIT techniques in later chapters.
 AN INTRODUCTION TO JUST-IN-TIME

Type Examples

Defects Scrap, rework, replacement production, inspection

Waiting Stockouts, lot processing delays, equipment
downtime, capacity bottlenecks
Processing Unnecessary or incorrect processing
Overproduction Manufacturing items for which there are no orders
Movement Human motions that are unnecessary or straining
Inventory Excess raw material, WIP, or finished goods
Transport Carrying WIP long distances, inefficient transport
Unused employee Lost time, ideas, skills, improvements
creativity

Figure 1-2. Waste in Manufacturing

Why JIT Is Important

Customers today want a variety of products in just the quantities
they need. They also expect high quality, a good price, and
speedy delivery of their orders. JIT manufacturing helps com-
Key Point
panies become more competitive by producing the desired variety
while keeping costs low, quality high, and lead time minimal. It
does this by eliminating waste in the manufacturing process.
Recognizing Waste
Waste is any element of the manufacturing process that adds cost
Key Term
without adding value to the product. Waste not only costs money,
it also extends the lead time for building the product and deliver-
ing it to the customer. And it keeps the company from doing
more productive things with its resources. Figure 1-2 lists eight
major wastes in manufacturing.

TAKE FIVE

Take five minutes to think about these questions and to write

down your answers:
e What wastes can you see in your process? Which do you think
are the most serious problems at your company?
 ae CHAPTER 1

IT'S OK, WE
CAN JUST REPLACE
OUR PROCESS THEM WITH
Forbes ih. \ Goon ones!
A LOT OF

Figure 1-3. Inventory Covers Up Other Problems

Overproduction Is Waste
Overproduction happens when companies create products or
Key Term
work-in-process (WIP) for which they do not currently have
orders. It is one of the worst forms of waste, because it generates
BACKGROUND
another wast
— excess
e inventoty.
Companies often overproduce when they make products in large
lots. Large lots are used because changeovers take too long to
make frequent setups economical. However, companies often for-
get about the costs associated with this excess inventory. And they
don’t always realize that processing unneeded items lengthens
the lead time for the quantity the customer wants. Chapter 4
describes quick changeover techniques that allow companies to
produce small quantities economically.
 AN INTRODUCTION TO JUST-IN-TIME

Inventory Is Waste
Inventory is an accumulation of products, WIP, or materials at any
eran stage of the process. Many companies plan for extra inventory
(safety stock) to cover for problems such as
¢ Production imbalances e Equipment downtime
e Late deliveries from suppliers ¢ Long setup times
¢ Defects (see Figure 1-3)
But inventory is waste. It is especially bad because it hides other
key point. problems. When safety stock exists, people are not motivated to
make improvements.
Furthermore, the existence of inventory at any stage of the process
mabe) |causes additional wastes such as:
e Transport: When processes make items that aren’t used immedi-
ately, the items must be moved and stored. Companies use convey-
ors, forklifts, or other devices to move inventory around between’
processes. This transport adds cost to the process without adding
any value.
e Storage: Companies must pay for space to store inventory (includ-
ing space for WIP sitting between processes) and people to man-
age it. Again, this use of valuable resources does not add value.
¢ Damage: Keeping inventory can lead to quality problems because
inventory can be damaged in handling or storage, or can deterio-
rate over time. Some items may even become obsolete and useless.
¢ Delay: Working on in-process inventory in large lots results in
delays, because no items can move on to the next operation until
all the items in the lot are processed.

Finally, inventory is wasteful in itself because it ties up the company’s

Key Point resources: people, equipment, materials, and energy are required
to produce every item. And, as long as inventory remains in the
plant or the warehouse, the company is not repaid for its invest-
ment in these resources.
Figure 1-4 on the next page summarizes the types of waste
caused by overproduction and inventory.
I CHAPTER 1

Overproduction

Hidden
problems Delay/long Transport and
lead time handling
equipment

production [ ‘
imbalance Wasted Cerersy )
space

late supplier Resources

deliveries tied up Storage
costs

Deterioration or
damage in storage
and handling

Costs and Delays

that
Reduce Profitability

Figure 1-4. Waste from Overproduction and Inventory

 Es AN INTRODUCTION TO JUST-IN-TIME

Figure 1-5. The Trouble with Inventory

Inventory waste affects every production process that depends on a

Key Point previous process for materials or parts. When a plant has many
processes, each handling items in large lots, the cumulative waste
of time and money is enormous (see Figure 1-5).
To eliminate this waste, companies use just-in-time manufacturing
methods to build and deliver just the inventory the customer needs,
when needed, in the amount needed. This is achieved for the final
process through an approach called leveled production, and man-
aged between earlier processes through an inventory control system
such as kanban. Both approaches are described in Chapter 2.
Eliminating this waste also involves improving each process so
there is little or no work-in-process inventory waiting between
individual operations. This aspect of just-in-time is described in
Chapter 3.

TAKE FIVE

Take five minutes to think about these questions and to write

down your answers:
e What problems does inventory cause in your plant?
e What problems does inventory hide in your plant?
 ie CHAPTER 14 any

Product Variety + Storage Costs $

0 en .-_—_- oOo

Productive Customer nace |

Capacity t Satisfaction t Profitability

ee =2a

— — - Before JIT implementation

—— After JIT implementation
T=Time

Figure 1-6. Benefits of Just-in-Time

The Benefits of Just-in-Time for Companies

Just-in-time helps a company stay competitive by serving its cus-
Key Point
tomers better and reducing costs (see Figure 1-6). JIT gives cus-
tomers the product variety they want. They can get the quantity
they need quickly, without paying extra for small runs. A company
that can serve its customers this way is likely to be profitable, and
BACKGROUND
flexible enough to change as customer needs change.
In the past, companies simply passed costs on to the customer.
The pricing formula was
Cost + Profit = Price

In today’s markets, customers insist on a competitive price. This

means companies must reduce costs to make profits:

Price — Cost = Profit

~ Just-in-time manufacturing methods also shorten the production lead

Key Point time. In addition to pleasing the customer, this gives the company
an earlier return on its investment of resources in the product.
What's more, a company that implements JIT will discover manu.
Key Point facturing capacity that was hidden in waste. Just-in-time frees
equipment, materials, energy, and employee time—resources that
can be redirected to produce other products customers want.
 & AN INTRODUCTION TO JUST-IN-TIME

Just-in-time manufacturing also promotes continuous improvement.

Key Point For example, to reduce the safety stock of extra inventory, the com-
pany must address the causes of defects and downtime. As prob-
lems are solved, delays, rework, and other wastes are removed.
Cost saving is one result, but just as important is the competitive
edge gained from a high-quality process. Customers expect consis-
tent top quality, and the JIT approach motivates manufacturers to
improve products and processes.

The Benefits of JIT for You

Implementing just-in-time also benefits you as a company
employee. First, just-in-time supports job security by strengthening
Key Point the company’s competitiveness. In addition, it also makes daily pro-
duction work go smoother by
¢ Removing the clutter of excess work-in-process inventory (WIP)
¢ Reducing transport and unnecessary handling of work-in-process
e Speeding up machine setups
e Addressing causes of defects and machine problems that cause delays
In the course ofa just-in-time implementation in your company,
you may be asked to learn to perform other operations so that you
can substitute for someone or run several pieces of equipment in
sequence. This improves your skills and flexibility, and it may
change how you think about your role in the company. It is
important to recognize that learning about and participating in a
Key Point
JIT transformation ultimately will make you more employable by
your company, or by any company that hopes to stay at the top in
the coming decades.

TAKE FIVE

Take five minutes to think about these questions and to write

down your answers:
e Based on what you know so far about JIT, can you see how it
might benefit your company? If so, how?
e Can you see how JIT might benefit you? If so, how?
 & CHAPTER 1 =e

Steps of a Process
Storage/
raw matenials or Operations
components
¢ Essential operations:
Transport : the actual value-adding
work on the materials
Transformation ed

Storage/waiting ¢ Other operations:

for a process setup, transport,
inspection
Transport

Inspection

Storage

Figure 1-7. Process and Operations

Understanding Processes and Operations

Before we look in detail at the elements of just-in-time, it is
important to define a few key terms and concepts.

Processes

A process is a continuous flow in which raw materials are convert-

Key Term
ed to finished products in a series of operations. The focus of a
process is the path of the materials as they are transformed into
something to sell.
Manufacturing processes have four basic types of operations or
phases:
° Transformation: assembly, disassembly, alteration of shape or
quality
e Inspection: comparison with a standard
¢ Transport: change of location
° Storage: a period when no work, transport, or inspection is
happening
Materials and parts often go through several of these phases dur-
ing the manufacturing process. However, only transformation
adds value to the product; the other phases should be eliminated
or streamlined. The left side of Figure 1-7 shows a typical
sequence of process phases.

10
 [ AN INTRODUCTION TO JUST-IN-TIME |

Operations
An operation, by contrast, is any action performed by workers or
Key Term
machines on the raw materials, work-in-process, or finished prod-
ucts. ‘The focus of an operation is the specific activity performed.
Manufacturing production is thus a network of operations and
Key Point processes. Referring again to Figure 1-7, each phase of the manu-
facturing process has one or more corresponding operations.
These operations include setup operations as well as essential
operations such as machining or assembly work.

improving Processes as Well as Operations

Since operations involve actions performed on materials or parts,
operational improvements often focus on the way actions are car-
tied out. Improving operations, then, might involve adjusting
handtool positions to reduce operator fatigue, for example.
To improve production, however, it is not enough to improve opera-
Key Point tions. In implementing just-in-time, a company must also improve
its processes. Process improvements actually eliminate or reduce
non-value-adding operations that hold up the flow between trans-
formation operations. This means finding ways to reduce delays,
storage, transport, mistakes, defects, and other situations that stop
the flow.
In just-in-time, materials and WIP pass smoothly through the
process, ideally one piece at a time. The rest of this book describes
the mechanics of just-in-time and the types of waste-eliminating
process and operation improvements that make this smooth flow
possible.

TAKE FIVE

Take five minutes to think about these questions and to write

down your answers:
¢ What kind of processes happen in your work area?
e What kind of operations do you perform in your daily work?

ail
 JUST-IN-TIME FOR OPERATORS |

Just-in-time (often called JIT for short) is a manufacturing

approach that enables a company to produce the products its
customers want, when they want them, and in the amount they
want. Implementing JIT often means a new way of controlling
the production schedule, a new equipment layout, and new
roles for operators.
JIT’ manufacturing helps companies become more competitive
by producing the variety of products customers want while keep-
ing costs low, quality high, and lead time minimal. It does this
by eliminating waste in the manufacturing process.
Waste is any element of the manufacturing process that adds
cost without adding value to the product. Waste costs money,
extends the production lead time, and ties up company
resources that could be used productively.
Overproduction occurs when companies create products or
work-in-process (WIP) for which they do not currently have
orders. It is one of the worst forms of waste, because it generates
excess inventory. Large lot production is a leading cause of over-
production.
Inventory is an accumulation of products, WIP, or materials at
any stage of the process. Many companies use extra inventory to
cover for problems. But when safety stock exists, people are not
motivated to make improvements.
Inventory also causes other wastes, including transport, storage,
damage, and delay. It also ties up people, equipment, materials,
and energy that could be used for more productive work.
Inventory wastes affect every production process that depends
on a previous process for materials or parts. To eliminate this
waste, companies use just-in-time manufacturing methods to
build and deliver just the inventory the customer needs, when
needed, in the amount needed. |

42
 AN INTRODUCTION TO JUST-IN-TIME

Just-in-time helps a company stay competitive by serving its cus-

tomers better and reducing costs. In the past, companies passed
costs on to the customer: |
Cost + Profit = Price

Today customers insist on a competitive price, so companies

must reduce costs to make profits:
Price — Cost = Profit

Just-in-time manufacturing methods also benefit companies by

shortening production lead time, freeing wasted capacity in
equipment, materials, energy, and employee time, and promot-
ing continuous improvement of the manufacturing process.
Just-in-time benefits employees by strengthening the company’s
competitiveness, which supports job security. It also makes daily
production work go smoother by eliminating various wastes that
cause problems.
Also, in a just-in-time implementation you may learn to perform
other operations so that you can substitute for someone or run
several pieces of equipment in sequence. This improves your
skills and flexibility, and it may change how you think about
your role in the company.
A manufacturing process is a continuous flow in which raw
materials are converted to finished products in a series of opera-
tions. The focus of a process is the path of the materials as they
are transformed into something to sell. An operation, by con-
trast, is any action performed by workers or machines on the raw
materials, work-in-process, or finished products. The focus of an
operation is the specific activity performed.
Manufacturing production is a network of operations and
processes. In implementing just-in-time, a company
improves processes as well as operations. Process improve-
ments include finding ways to reduce delays, storage,
transport, mistakes, defects, and other situations that stop
the flow. :

13
| JUST-IN-TIME FOR OPERATORS

REFLECTIONS

Now that you have completed this chapter, take five minutes
to think about these questions and to write down your
answers:
¢ What did you learn from reading this chapter that stands
out as particularly useful or interesting?

¢ Do you have any questions about the topics presented in

this chapter? If so, what are they?
¢ What additional information do you need to fully under-
stand the ideas presented in this chapter?

14
 Basic Concepts of Just-in-Time

CHAPTER OVERVIEW

Leveled Production and Sequencing

A Shish-Kebab Production Schedule
A Leveled Production Schedule
Takt Time
Production Sequence

Kanban Systems
Types of Kanban
Basic Rules of Kanban

In Conclusion
Summary
Reflections
 ve CHAPTER 2 z

Figure 2-1. Basic Concepts of Just-in-Time

BACKGROUND

This chapter introduces key mechanical concepts that define a

just-in-time manufacturing system. Bear in mind that this is a gen-
eral overview, and that companies may implement these concepts
in different ways. For more information about these concepts see
the resources listed on pages 66-69.

Leveled Production and Sequencing

Leveled production is a way of scheduling daily production of dif-
Key Term ferent types of products in a sequence that evens out the peaks
and valleys in the quantities produced. Also called load smoothing
or load leveling, leveled production enables companies to supply
BACKGROUND
the variety customers want without building up inventory.
In traditional mass production, the company makes different prod-
ucts in large lots, one type at a time. If acustomer wants Product
B while the company is making Product A, the customer has to
wait. If customers do not purchase the entire lot of Product A
right away, part of it becomes inventory and generates the kinds of
waste described in Chapter 1. And a shift in customer needs may
mean that the company has already made too much of some-
thing, or that people and machines must work overtime to pro-
duce enough.

16
 BASIC CONCEPTS OF JUST-IN-TIME

Product Quantity Week 1 Week 2 Week 3 Week 4

T alae

Product A

Figure 2-2. Shish-Kebab Production

Leveled production, in contrast, allows companies to build the vari-

Key Point ety desired by customers in a smooth, mixed sequence that minimizes
inventory and delays. It also handles minor shifts in projected
demand more easily than mass production, by spreading increases
or decreases gradually over production for a number of days.
The following example illustrates how leveled production differs
from the mass production approach. For this example, assume
estimated monthly customer orders of 35,000 units in three differ-
ent types: 20,000 of product A, 10,000 of product B, and 5,000 of
Example

product C.
A Shish-Kebab Production Schedule
A mass production company might handle these requirements by
making a monthly schedule for building all of product A in a
large lot during the first part of the month, then all of product B,
followed by all of product C (see Figure 2-2). This large-lot
approach is sometimes called shish-kebab production because dif-
Key Term
ferent product types move through the process in chunks, like
food on a skewer.

ALTE
 a CHAPTER 2 |

Daily Work Time

Takt Time =, ——W—__—.
Daily Required Quantity )

Daily Work Time 8 hours

480 minutes
A way to determine the = 60 minutes (breaks)
required pace for production 420 minutes

35,000 units
Daily Required Quantity
20 days
1750 units/day
_ 420 minutes
1750 units
= .24 minute/unit

Figure 2-3. Takt Time

A Leveled Production Schedule

In leveled production, the final process first determines how many
Key Point
of each type of product must be made each day to meet customer
requirements. Then, instead of building the different types in lots,
the final process uses a daily schedule that evenly mixes the
required amounts of various product types in a smooth, repeating
sequence.
Takt Time
The key to this daily schedule is a calculation called takt time.
Takt time is the rate at which each product needs to be complet-
Key Term
ed to meet customer requirements. It is the beat or pulse at
which each item leaves the process.
Takt time is expressed in minutes (or fraction of minutes) per
part. ‘To determine the average takt time for the final process,
divide the total daily work time by the quantity of products
required each day (see Figure 2-3).
Let's use a daily work time of 420 minutes (8 hours minus 1 hour
for breaks and other activities). Assuming 20 work days each
month, the daily quantity required would be 35,000 units divided
by 20, or 1,750 units. The average takt time for all three product
types 1s 420 divided by 1,750, or 0.24 minute per unit. This
means that one product unit should be completed about four
times each minute.

18
 | BASIC CONCEPTS OF JUST-IN-TIME

Daily
Product Quantity Daily Schedule

1,000 420 min. om. = :

' - = one unit every .42 t
Ko 1,000 units x Ly hse

420 min
500 “= one unit every .84 minut
500 units . tela’

250 ol Wa = one unit every 1.68 minutes

250 units

—__—___————- 1.68 minutes al

Figure 2-4. Leveled Production Sequence

Production Sequence
To determine a smooth, repeating pattern for making the required
amounts of each product type, we calculate the takt time for the
daily quantity of each type. As Figure 2-4 shows, one unit of prod-
uct A should be made every 0.42 minute, with a unit of product B
every 0.84 minute, and a unit of product C every 1.68 minutes. ‘lo
Example

level the production, during the time between units of product C

— 1.68 minutes—four units of product A need to be made, and
two units of product B. This can be turned into a repeating pro-
duction pattern, as shown in the figure.
To succeed at using leveled production to build products in a
mixed sequence, a company must reduce the time required for
changeover operations. Chapter 4 outlines an approach for short-
ening changeover time.

TAKE FIVE
Take five minutes to think about these questions and to write
down your answers:
° Do you think your company’s production schedule is closer to
shish-kebab production or to leveled production?
° What would the average takt time be for the quantity of products
your company produces each day?

4g)
 ice CHAPTER 2 |

Figure 2-5. Kanban and the Pull System

Kanban Systems
In a just-in-time system, coordinating the production and move-
ment of parts and components between processes is critical in
avoiding excess or shortages. To achieve this coordination, many
companies use a system called kanban. The word kanban means
Key Term
“card” or “signboard.” A kanban system uses cards or other
devices as visual signals to control the flow and production of
materials (see Figure 2-5).
Kanban is a mechanism for managing a “pull” production sys-
tem. In a pull system, a process makes more parts only when the
Key Point next process withdraws parts—in effect “pulling” the parts from
the earlier process when needed. The pull begins with the lev-
eled production schedule for the final process, which is based on
actual or expected customer orders. The final process uses kan-
ban to pull needed parts from the previous process, which pulls
from the process before it, and so on.
In contrast, the “push” system often used in large-lot production
Key Point
makes parts according to a predetermined schedule for each
process. It will continue to push parts forward on this sched
ule
even when customers do not order them. The push appro
ach
often results in wasteful excess inventory.

20
 BASIC CONCEPTS OF JUST-IN-TIME

Part Number Description Part Number

2347 Mach base 2347
Outbound Stock Area Inbound Stock Area Description
G5 A6 Mach base
Container Type Items/Container Container Outbound Stock Area
2T 30 2T G5
Move Kanban Production Kanban

Part Number
Container Items 2347
Description
2T 30
Mach base
Bar Code Delivery Location

UMUC Q7
Supplier Kanban
Figure 2-6. Types of Kanban

Types of Kanban
A typical kanban system uses three main types of kanban cards or
devices:
¢ Move kanban: authorizes a process to get parts from the previous
Key Terms
process
¢ Production kanban: authorizes the previous process to produce
more parts

¢ Supplier kanban: authorizes an outside supplier to deliver more

parts

Figure 2-6 shows typical information on these types of kanban.

The next several pages give a simple explanation of how the three
types of kanban are used to control production. ‘To avoid confu-
sion, we will call the later process “Process 2” and the earlier
process that supplies it “Process 1.”

21
 CHAPTER 2 “

Production kanban a
detached, placed in
dispatch box Move kanban
‘ attached to Inbound
gas new stock stock area

Outbound New stock

stock area es ue
rocess
Production
kanbans ES EA Ss
direct the bankan
production attached
sequence
to finished
Process 1 quantity

Figure 2-7. How a Kanban System Works

Move Kanban

Each process has an inbound and an outbound stock area. The

inbound area holds containers or pallets that contain a small,
Example
fixed quantity of materials, parts, or subassemblies used in the
process. The outbound area holds the completed output from
the process.
Each container in the inbound area has a move kanban attached
to it. When Process 2 begins to consume the contents of a con-
tainer (see | in Figure 2-7), the move kanban is taken off the
container and brought to the outbound stock area of Process 1
(see 2 in figure). There the move kanban is attached to a new,
full container, which is taken back to the inbound stock area of
Process 2, ready for use (see 3 in figure).

22
 BASIC CONCEPTS OF JUST-IN-TIME

Production Kanban

A production kanban is attached to every container in the out-

bound stock area at Process 1. When Process 2 comes to remove a
Example
container of parts, the production kanban is taken off and put in a
dispatch box for Process | (see A in Figure 2-7). Since Process |
may make different parts for several other processes, it builds the
new parts in the order in which the kanban are placed in the box
(see B in figure). When a container is filled with a certain num-
ber of parts, the production kanban is attached to it and it is
placed in the outbound stock area ready for withdrawal by Process
2 (see C in figure).

Supplier Kanban

Some parts are made by outside suppliers rather than by in-house

processes. In this case, a supplier kanban is used in place of a
move kanban. It is attached to a full container in the inbound
Example

area of the later process. When the process begins consuming that
container, the supplier kanban is removed and sent to the outside
supplier for replenishment.

TAKE FIVE

Take five minutes to think about these questions and to write

down your answers:
or a
e Do you think your company currently uses a push system
pull system?
is sched-
e What issues do you see with the way parts production
uled at your plant?

23
 CHAPTER 2

Basic Rules of Kanban

Seven basic rules must be followed for successful use of kanban:
1. The later process goes to the previous process to withdraw only
what it needs. (In some companies, parts and materials are
moved between processes by independent handlers. In this
case, the handler brings materials from Process 1 only when
Process 2 provides a move kanban to authorize the transfer.)
2. The previous process makes only the quantity needed to replace
what was removed by the later process (or the handler). This
quantity is indicated on the kanban.
3. Defects are never sent to the next process. This means that pro-
duction is stopped until the problems are corrected. In a low-
inventory production system, this motivates preventive
improvements such as mistake-proofing and autonomation
(described in Chapters 3 and 4).
4. A kanban must always accompany products on the line. Since
only a certain number of kanban exist, they serve as a visual
control of the amount of inventory allowed in the work area.
>. Production quantities must be leveled to avoid fluctuation and
eliminate waste. Spreading the quantity evenly over time helps
assure a smooth flow between processes.
6. Use kanban to fine-tune the schedule. Since production hap-
pens when instructed by the kanban, small increases or
decreases in the amount to be produced can be handled easi-
ly by changing how often kanban are transferred between
processes. Kanban systems are not well suited to handle large
fluctuations in customer demand.
7. Stabilize, rationalize, and simplify the process. Like rule 3, this
tule is about improvement—in this case, improving the
process to avoid waste and unpredictability.

Improve the Process First

Keep in mind that kanban is just a system for controlling inventory.

If the processes themselves have not been improved to eliminate
waste such as excess WIP, walking, conveyance, downtime,
Key Point
and
defects, kanban will not work. Chapters 3 and 4 describe key
process improvement and standardization techniques
that support
the use of kanban for just-in-time.
24
 BASIC CONCEPTS OF JUST-IN-TIME

Leveled production is a way of scheduling daily production of dif-

ferent types of products in a sequence that evens out peaks and
valleys in the quantities produced. Leveled production (also
called load smoothing or load leveling) enables companies to sup-
ply the variety customers want without building up inventory.
In traditional mass production, different products are made in
large lots, one type at a time. This approach is sometimes called
shish-kebab production, because different product types move
through the process in chunks, like food on a skewer. If a cus-
tomer wants Product B while the company is making Product A,
the customer has to wait. If customers do not purchase the
entire lot of Product A right away, part of it becomes inventory.
Leveled production, in contrast, allows companies to build the
variety desired by customers in a smooth, mixed sequence that
minimizes inventory and delays. In leveled production, the final
process first determines how many of each type of product must
be made each day to meet customer requirements. Then,
instead of building the different types in lots, the final process
uses a daily schedule that evenly mixes the required amounts of
various product types in a smooth, repeating sequence.
The key to this daily schedule is a calculation called takt time—
the rate at which each product needs to be completed to meet
customer requirements. Expressed in minutes (or fraction of
minutes) per part, it is the beat or pulse at which each item
leaves the process.
To determine a smooth, repeating pattern for making the required
amounts of each product type, we calculate the takt time for the
daily quantity of each type.
Coordinating the production and movement of parts and com-
ponents between processes is critical in avoiding excess or short-
ages. To achieve this coordination, many companies use a sys-
tem called kanban. The word kanban means “card” or “sign

29
e CHAPTER 2 |

board.” A kanban system uses cards or other devices as visual sig-

nals to control the flow and production of materials.
Kanban is a mechanism for managing a “pull” production sys-
tem. In a pull system, a process makes more parts only when the
next process pulls parts. The pull begins with the leveled pro-
duction schedule for the final process, which is based on actual
or expected customer orders. The final process uses kanban to
pull needed parts from the previous process, which pulls from
the process before it, and so on.
In contrast, the “push” system makes parts according to a pre-
determined schedule for each process. It pushes parts forward
on this schedule whether or not there are orders, which often
results in wasteful excess inventory.
A typical kanban system uses three main types of kanban cards
or devices:
¢ Move kanban: authorizes a process to get parts from the pre-
vious process
¢ Production kanban: authorizes the previous process to pro-
duce more parts ©
¢ Supplier kanban: authorizes an outside supplier to deliver
more parts

There are seven basic rules for successful use of kanban:

— . The later process goes to the previous process to withdraw
only what it needs.
2. The previous process makes only the quantity needed to
replace what was removed by the later process.
3. Defects are never sent to the next process.
4. A kanban must always accompany products on the line.
5. Production quantities must be leveled to avoid fluctuation
and eliminate waste.
6. Use kanban to fine-tune the schedule.

. Stabilize, rationalize, and simplify the process.

~—I

Successful use of kanban requires process improvements to

eliminate waste and excess inventory.

26
 BASIC CONCEPTS OF JUST-IN-TIME |

REFLECTIONS
Now that you have completed this chapter, take five minutes
to think about these questions and to write down your
answers:
e What did you learn from reading this chapter that stands
out as particularly useful or interesting?

e Do you have any questions about the topics presented in

this chapter? If so, what are they?

e What additional information do you need to fully under-

stand the ideas presented in this chapter?

Dil
oh (Onn Hy
dad 98

er nye
ee

ie 7

’ _ Fi
Cy 3 ore oy

‘as 4 _ i
7 cr e
=

ee
 Process Improvement and
Standardization

| CHAPTER OVERVIEW

Wastes Resulting from Operation-Based Layouts

Benefits of a Process Flow Layout
Multi-Machine Operation
Cross-Training
Moving with the Process

U-Shaped Cells
Small, Flexible Machines
Autonomation
Standard Work
Standard Cycle Time
Standard Work Sequence
Standard In-Process Inventory
Standard Work Forms
The Foundation for Continuous Improvement

In Conclusion
Summary
Reflections
 CHAPTER 3

@
©
welding

milling machine
[we | |wr | [we | we |

Figure 3-1. An Operation-Based Layout

Wastes Resulting from

BACKGROUND
Operation-Based Layouts
Most manufacturing processes contain so much waste that just-in-
time cannot work until improvements are made. Process improve-
ments to eliminate waste often include changes in the equipment
layout on the plant floor.
Many companies group the production equipment according to
the type of operation performed. For example, all the drill presses
may be located near each other (see Figure 3-1). Parts are often
processed in large lots to avoid the need for changeovers. This
Key Point
operation-based layout leads to several kinds of waste:
¢ Conveyance: Most processes include operations on several differ-
ent types of equipment. To reach the next step, components often
must travel to another equipment area (see Figure 3-1). This travel
requires equipment (forklifts or conveyors), energy, and sometimes
people, but it adds no value to the product.
¢ Wasted space: Large machines, large lots of WIP, and conveyance
equipment all take up space that could be used more effectively.
¢ Lot delays: Processing parts in lots or batches causes delay because
the first item in the lot doesn’t move to the next step until the last
item in the lot is processed.

30
 PROCESS IMPROVEMENT AND STANDARDIZATION 4

milling machine
a [nee
©) 4)

Figure 3-2. A Process-Based Layout

Benefits of a Process Flow Layout

Positioning manufacturing equipment closely together in the
order of the processing steps reduces waste and improves the flow
in several ways. For one thing, placing the machines for each step
Key Point
side by side eliminates much of the waste of conveying work-in-
process long distances (see Figure 3-2).
What’s more, a process-based layout allows materials and parts to
Key Point
flow through the process steps in small batches or even one by one,
without large amounts of WIP between steps. This approach,
called flow manufacturing, not only saves space, but also elimi-
Key Term
nates lot delays so that parts flow through the process quicker.

TAKE FIVE

Take five minutes to think about these questions and to write

down your answers:
e How is equipment arranged in your workplace?
¢ Do you think this layout has waste in it? If so, what kinds?

Sil
 CHAPTER Ss

Input

Figure 3-3. Operating Multiple Machines in a Process-Based Layout

BACKGROUND
Multi-Machine Operation
A process-based equipment layout changes the relationship
between people and machines and often requires some changes
in operating assignments. In an operation-based layout, for exam-
ple, all the presses are located together and one person may run
several similar machines. However, when the machines are
rearranged in a process sequence, each press may become part of
a different processing line. In that situation, it is probably not
economical to have one press operator for each individual
process. What’s more, if the equipment is automated, most of the
operator's time would be spent watching it run. This is a huge
waste of human potential.
These wastes are avoided by cross-training people to operate sev-
eral different machines in the process. When an operator is
trained on several machines, he or she is able to step into any
position to respond to changes in the production pattern. With
Key Point
dutomation, operators can manage the flow of work through a
series of machines in the process, sometimes handling one work-
piece at a time (see Figure 3-3). For example, while the step .1
machine is processing the second piece, the operator can be set-
ting up the first piece on the step 2 equipment, and so on.

32
 PROCESS IMPROVEMENT AND STANDARDIZATION

Process A Drill
Associates Lathe Press Training Certification Levels

Marco Assisted
operation

Independent Setup/
operation changeover

Lee
BESO;
GB0e€D@
fecal
Figure 3-4. A Cross-Training Chart

Cross-Training
Cross-training enables employees to perform different functions
Key Point within a process and lets teams take full responsibility for their
processes. This versatility makes employees more valuable to their
teams and to their companies. Cross-training is a source of 7
employee pride in many workplaces. Visual display charts are
often used to recognize people’s skill attainment in a public way
(see Figure 3-4).

Moving with the Process

To run several machines in sequence, an operator needs to work
Key Point
standing up rather than sitting down. Flow manufacturing implies
movement of the parts through the process. ‘To assist this flow, peo-
ple need to stand and walk. Working while standing also enables
people to respond more quickly if machine problems occur.

TAKE FIVE

Take five minutes to think about these questions and to

write down your answers:
s?
e Do operators at your company run different kinds of machine
If not, what would need to happen to make this possibl e?
would
¢ Do operators run more than one machine? If not, what
need to happen to make this possibl e?

3S
 is CHAPTER 3

Figure 3-5. A U-Shaped Cell Layout

U-Shaped Cells
It is possible to implement flow manufacturing with the equip-
ment for each operation arranged in a straight line. However,
when the operator finishes the last step of the process, he or she
must walk back to the first step to start again. This walking is
waste that adds no value to the product.
To eliminate this waste, flow manufacturing often uses an equip-
ment arrangement called a U-shaped cell. In a U-shaped cell,
the
equipment is placed in process sequence in a horseshoe patter
Key Term
n.
In this layout, the last processing step is very close to the first
step,
so the operator is not walking as far to begin the next cycle
(see
Key Point Figure 3-5).

34
 PROCESS IMPROVEMENT AND STANDARDIZATION |

Small, Flexible Machines

A just-in-time process may use equipment different from that used
in large-lot production. Flow manufacturing works best with
Key Point
machines that are smaller and often slower than large-lot equipment.
Smaller machines can be used for flow manufacturing because
the goal is to process one or a few items at a time, instead of large
batches. Smaller machines save space. Placing them close togeth-
er reduces the walking distance and leaves no space for excess
WIP to accumulate.
Slower machines are appropriate for flow manufacturing because
the objective is not to produce large lots of WIP quickly. Instead,
machines produce one piece at a time at a speed determined by
customer requirements.
Machines for flow manufacturing also need to be flexible. To maxi-
Key Point
mize their usefulness, they must be easy to set up quickly so they
can be used to make a greater variety of products during a single
shift. (See Chapter 4 for more about quick changeover. )
Flexible may also mean movable. Mounting smaller machines on
casters makes it possible to move them to other locations as need-
ed, or to experiment with new production layouts.
Another benefit of using smaller machines for flow manufactur-
ing is that they generally are less expensive to purchase and easier
to operate and maintain.

TAKE FIVE
and to write
Take five minutes to think about these questions
down your answers:
* How does a U-shaped equipment layout eliminate waste?
e Do you think the equipment in your area is better suited to large-
lot production or to flow manufacturing? Why?

35
 CHAPTER 3

@ STOP FOR
ABNORMALITIES
AND SOUND
ALARM.

a STOP AFTER
ONE CYCLE.

a UNLOAD AFTER
PROCESSING.

we RUN ATA
CONSTANT SPEED.

Figure 3-6. Typical Features of Autonomation

Autonomation
Another characteristic of the equipment used in just-in-time manu-
facturing is autonomation (also called jidoka). Autonomation is an
Key Term
approach to automation that gives equipment “intelligence” so
people don’t have to monitor automatic operation.
“Autonomated” machines are semi-automatic machines that
autonomously (independently) support continuous flow process-
ing. They stop and signal when a cycle is complete or when defects
Key Point occur (see Figure 3-6). Although such machines are often loaded
in the process sequence by operators, they also may unload auto-
matically after processing.
Many companies invest in automated equipment so people don’t
have to perform difficult, dangerous, or repetitive work. At a lot of
factories, however, people still watch the automated equipment
“just in case” something goes wrong. Autonomation frees people
from this non-value-adding role by modifying machines so they
can run with little supervision.
The function of stopping for problems is also a key element of
the mistake-proofing approach called poka-yoke. Poka-yoke sys-
Key Term
tems are described further in Chapter 4.
The technology required for autonomation is often very simple. It
is usually not expensive to modify existing machines to perform
this way.

36
 | PROCESS IMPROVEMENT AND STANDARDIZATION

When people don't have to watch the machine to spot problems or

key point to catch the output, they have time to perform more value-adding
work, such as operating several machines in sequence or planning
and implementing new ideas for improving the work flow.

TAKE FIVE
Take five minutes to think about these questions and to write
down your answers:
¢ Do people in your work area monitor automated equipment?
e If so, what are some of the things they watch for?

37
 [ CHAPTER 3 |

Standard Cycle Time

Standard Work Standard

Sequence In-Process
Inventory

Figure 3-7. Three Components of Standard Work

BACKGROUND
Standard Work
As you improve your process and the operations within it, it is
important to standardize the way the work is done. Standard
processes are essential for just-in-time delivery of component
parts. In a pull system, later processes count on the ability of ear-
lier processes to make or supply a certain quantity of parts at a
certain time, given a certain lead time. If the previous process is
unpredictable, just-in-time delivery can’t happen.
: To establish predictability in processing cycles, each process deter-
key Point Mines its standard work (also called standard operations). As
Figure 3-7 shows, standard work has three parts:
¢ Standard cycle time
¢ Standard work sequence
¢ Standard in-process inventory (WIP)

38
 PROCESS IMPROVEMENT AND STANDARDIZATION

Figure 3-8. Cycle Time

Standard Cycle Time

Cycle time is the actual time required to process one part. Cycle
time is determined by timing the operations in a process from
start to finish, including machine processing time as well as man-
Key Term

ual work, walking, waiting, and inspection (see Figure 3-8).

Operations are usually clocked several times; the average time is
used as the current standard cycle time.
Process cycle time determines whether a process 1s capable of pro-
ducing the quantity required by the next process at the required
time. The time requirements of each process are ultimately con-
Key Point

trolled by the takt time for the final process. If a process makes
parts faster than needed, excess inventory will be created unless
production is strictly controlled by kanban or other means. It is
better to remain idle; idleness is a visual indicator of excess
capacity that could be used another way.
On the other hand, if the cycle time is slower than needed, short-
ages will delay the next process. Process improvements may be
needed to avoid delays, or additional people or machines may be
used to ensure a smooth flow.

She)
 iis CHAPTER 3 |

THAT'S NOT
HOW I DO

= .
~ a IN "IS
Kes | | Si SS
A ke
= , Y Le

Figure 3-9. The Need for a Standard Work Sequence

Standard Work Sequence

It is not possible to have a consistent cycle time without a consis-
tent work sequence and method (see Figure 3-9). Documenting
Key Point the steps carried out by people and machines helps ensure that work
is done the same best way each time. This standardization is also
important for top-quality products and a safe workplace.

Standard In-Process Inventory

To standardize the work that takes place in a process, you also
must standardize the minimum quantity of parts or materials
needed to complete one processing cycle and allow the cycle to
continue. The goal to aim for is one-piece flow of workpieces
Key Point
through the process. This means that individual pieces of WIP
move directly from one operation to the next rather than piling
up between operations.

40
 | PROCESS IMPROVEMENT AND STANDARDIZATION

TAKE FIVE
Take five minutes to think about these questions and to write
down your answers:
e Do you know the cycle time for the processes in your work area?
e Is work done using a consistent sequence and method?
e¢ How much WIP is in your work area at any given time?

Standard Work Forms

Companies document their standard work on a set of forms.

Companies may use different names for these forms or combine
them in different ways, but the functions are essentially similar.
Commonly used forms include the following:
¢ Process Capacity Table (see Figure 3-10): This form records the
as operator and machine time currently required for each step of the
process, as well as the tool changeover time. It helps indicate
bottlenecks in the process.
¢ Standard Work Combination Sheet (see Figure 3-11): This form
charts the relationship between machine operation time and
human work time in a process.
e Standard Work Sheet (see Figure 3-12): This form documents the
current standard sequence of processing steps and the equipment
layout for this sequence. Some companies also include the worker
and machine times for each step.

AL
 CHAPTERS
|
Approval stamps Entered by
Si
Creation date
1/17

Ferner fae ea weer

39 )
|
39.3|
45 400 | 3'00" | 0.5"
33 | 400 | 230" | 0.4"
pet — tt
es a

Manual operations Entered by: KW

meee aS ate Auto feed
Item name: Door jamb (lintel) |Cycle time: 89" (54" needed)!" sae Walking |Date: 1/31

Analysis no: 1 of 1
Description
Operation times (in seconds)
|
[Manual
|"
[Walking
5 10 15 20 25 30 35 40 45 50 55 60 65 70

ill
75 80 90
Pull out workpiece 3foo

CCC
Process S101 gain (small) i WAFS
D CiHES
at circular
ee)
ee sawbench stood eT
wo

at circular saw bench TT oo

au
4 B101 hinge fasten-

Figure 3-11. Standard Work Combination Sheet

Standard Work Sheet

Line name

PG U-shaped cell

Process name

Gear cutting process

Description of operation
Gear cutting of 6" pinion

Figure 3-12. Standard Work Sheet

42
 | PROCESS IMPROVEMENT AND STANDARDIZATION

OK, YOU'VE
MASTERED THAT
LEVEL. NOW LET's
RAISE THE STANDARD!

Figure 3-13. Standards as the Baseline for Improvement

The Foundation for Continuous Improvement

Unlike a time or motion study, standard work is developed by the
people who do the work. Standardization helps the people in the
workplace understand when the process is out of standard and
sets the stage for improvement.
It is important to remember that developing standard work is only
the beginning. Standardization is the first step in improvement (see
Figure 3-13). Only by doing work the same way each time can
you know whether trial changes are having the desired result.
Key Point

Standard work defines the method used by everyone—but it is

also a “living” standard that should be continuously improving.

TAKE FIVE
write
Take five minutes to think about this question and to
down your answer:
currently devel-
e How are standards for processes and operations
oped in your workplace?

43
2 CHAPTER 3

Most manufacturing processes contain so much waste that just-

in-time cannot work until improvements are made. Process
improvements to eliminate waste often include changes in the
equipment layout on the plant floor.
Positioning manufacturing equipment closely together in the
order of the processing steps reduces waste and improves the
flow. Placing the machines for each step side by side eliminates
much of the waste of conveying work-in-process long distances.
Also, a process-based layout allows materials and parts to flow
through the process in small batches without large amounts of
WIP between steps.
A process-based equipment layout changes the relationship
between people and machines and often requires some changes
in operating assignments. When the machines are rearranged in
a process sequence, it is probably not economical to have one
press operator for each individual process. Having people watch
automated machines is also a huge waste of human potential.
Automation should allow operators to manage the flow of work
through a series of machines in the process. Cross-training
enables employees to perform different functions within a
process and lets teams take full responsibility for their processes.
To run several machines in sequence, an operator needs to work
standing up rather than sitting down. Flow manufacturing
implies movement of the parts through the process. To assist this
flow, people need to stand and walk. Working while standing
also enables people to respond more quickly if machine prob-
lems occur.
Flow manufacturing often uses an equipment arrangement
called a U-shaped cell in which the equipment is placed in
process sequence in a horseshoe pattern. In this layout, the last
step is very close to the first step, so the operator does not have
to walk far to begin the next cycle.

44
 PROCESS IMPROVEMENT AND STANDARDIZATION

Flow manufacturing works best with machines that are smaller :

and often slower than large-lot equipment. Smaller machines
save space, and placing them close together reduces the walking
distance and leaves no space for excess WIP to accumulate.
Slower machines avoid overproduction by making one piece at
a time at a speed determined by customer requirements.
Autonomation is an approach to automation that gives equip-
ment “intelligence” so people don’t have to monitor automatic
operation. “Autonomated” machines stop and signal when a
cycle is complete or when defects occur. They also may unload
automatically after processing, or catch errors that could cause
defects.
While improving the process, it is important to standardize the
way work is done. In a pull system, later processes count on the
ability of earlier processes to make or supply a certain quantity
of parts at a certain time, given a certain lead time. To establish
this predictability in processing cycles, each process determines
its standard work. Standard work has three components:
¢ Standard cycle time (the actual time required to process
one part)
e Standard work sequence
e Standard in-process inventory (WIP)
Companies document their standard operations on a set of
forms:
e Process Capacity Table
e Standard Work Combination Sheet
e Standard Work Sheet
Unlike a time or motion study, standard work is developed by
the people who do the work. Standardization helps the people
in the workplace understand when the process is out of standard
and sets the stage for improvement. Standard work is a “living”
standard that should be continuously improving.

45
— CHAPTER 3 |

REFLECTIONS

Now that you have completed this chapter, take five minutes
to think about these questions and to write down your
answers:
¢ What did you learn from reading this chapter that stands
out as particularly useful or interesting?
¢ Do you have any questions about the topics presented in
this chapter? If so, what are they?
¢ What additional information do you need to fully under-
stand the ideas presented in this chapter?

46
 Chapter 4

Support Techniques for

Just-in-Time

| CHAPTER OVERVIEW |

The 5S System for Workplace Organization

and Standardization
Visual Management Techniques
Quick Changeover Methods for Flexible Lot Sizes
Stage 1: Separate Internal from External Setup
Stage 2: Convert Internal Setup to External Setup
Stage 3: Streamline All Aspects of Setup

Zero Defects Through Zero Quality Control

Poka-Yoke Systems

Total Productive Maintenance for

Dependable Equipment
Autonomous Maintenance

New Measures of Excellence

In Conclusion
Summary
Reflections
 CHAPTER 4

SORT SET IN ORDER

(Organization) (Orderliness)
Clearly distinguish Keep needed items in
needed items from the correct place to
&
&
~
unneeded items allow for easy
and eliminate and immediate
s= the latter SUSTAIN
(Discipline)
retrieval
acd Make a habit
8
o
Consistently
of maintaining
established Keep the
3=. apply the procedures workshop swept Lower
costs
3t first three S's and clean;
inspect equipment
for abnormalities

STANDARDIZE
(Standardized SHINE
Cleanup) (Cleanliness)

Reliable

Figure 4-1. The 5S System

BACKGROUND

This chapter describes several important techniques that support

the smooth flow required for just-in-time manufacturing.
Additional information is available in the resources listed on
pages 66-69.

The 5S System for Workplace Organization

and Standardization
The just-in-time approach cannot succeed ina workplace that is
cluttered, disorganized, or dirty. Poor workplace conditions give
rise to all sorts of waste, including extra motion to avoid obstacl
es,
time spent searching for needed items, and delays due to quality
defects, equipment breakdowns, and accidents.
Establishing good basic workplace conditions is an essential first
Key Point step in any shopfloor improvement program. Many companies use
the 5S system to improve and standardize the physical condition
of their work areas. The 5S system is a set of five basic principles
Key Term
with names beginning with S:
e Sort e Standardize
e Set in Order ¢ Sustain
e Shine

48
 SUPPORT TECHNIQUES FOR JUST-IN-TIME

Sort: Teams begin by sorting out and removing items that are not
Key Terms
needed in the work area. They use a technique called Red
Tagging to identify unneeded items and manage their disposition.
Set in Order: Next, teams determine appropriate locations for the
items they do need. After relocating the items, they apply tempo-
rary lines, labels, and signboards to indicate the new positions.
The main idea is, “A place for everything, and everything in its
place.”
Shine: The third S involves a top to bottom cleaning of the work
area, including the equipment. Shine also means inspecting
equipment during cleaning to spot early signs of trouble that
could lead to defects, breakdowns, or accidents.
Standardize: In the fourth S, people establish the new, improved
conditions as a workplace standard. At this stage, visual manage-
ment methods are adopted to ensure that everyone in the work-
place understands and can easily follow the new standards.
Sustain: The final 5S principle uses training and communication
to maintain and monitor the improved conditions and to spread
5S activities to other areas of the company.

TAKE FIVE

Take five minutes to think about these questions and to write

down your answers:
the ©
e Are there physical conditions that get in the way of doing
work in your area?
work
e What specific conditions would you change to make the
area easier to use?

49
 CHAPTER 4

Figure 4-2. An Andon Board

Visual Management Techniques

Visual management of the production process is an important
support for just-in-time. For example, kanban cards or containers
are visual management tools that control when materials or parts
Example
are made or moved to another process.
Visual management techniques express information in a way that
key point Cdn be understood quickly by everyone.
One form of visual management seen in many just-in-time
factories is the andon system. In an andon system, individual
Key Term
machines or assembly stations are equipped with call lamps.
When a problem occurs, the operator (or the machine itself)
turns on the light to call attention. At many plants, overhead
andon boards also show the status of several machines or lines to
help others locate the problem (see Figure 4-2). Andon lamps
and boards are also used to call materials handlers when parts
need replenishing.

50
 SUPPORT TECHNIQUES FOR JUST-IN-TIME

Safe Range

50

o (=)

70

Figure 4-3. A Color Coded Dial Gauge

Visual techniques help keep order in the workplace. Lines,

Key Point labels, and signboards (introduced in the discussion of 5S on
page 49) tell everyone, at a glance, where to find things and
where to put them away. Using these methods to indicate loca-
tions can eliminate a lot of time wasted in searching.
Visual information can also help prevent mistakes. Color coding is
a form of visual display often used to prevent errors. Shaded red
and green “pie slices” on a dial gauge give an instant status read-
Key Point

ing (see Figure 4-3). Color matching is another approach that

helps people use the right tool or assemble the right part.
Example

TAKE FIVE

Take five minutes to think about these questions and to

write down your answers:
e Can you find examples of visual displays already used in your
workplace?
e Can you think of other ways to use visual methods to reduce
waste and errors?

5a
 CHAPTER 4

Before SMED Stage 1 Stage 2 Stage 3

Internal and Separate Convert internal Streamline
external setup internal and setup to all aspects of
not differentiated external setup external setup setup

Figure 4-4. The Three Stages of SMED

Quick Changeover Methods for

BACKGROUND
Flexible Lot Sizes
In the past, companies produced in large lots because setting up
for a different product took so much time from production that it
wasn’t economical unless the cost was spread over a large quantity.
However, large-lot production often means large inventories and
all the problems, wastes, and costs associated with them. Just-in-
time manufacturing requires us to process items in small lots,
even lots of only one item.
To produce economically in smaller lots, a company must learn
key Point how to reduce the time required for changeovers. The single-
minute exchange of die* (SMED) approach developed by
Shigeo Shingo gives a three-stage system for shortening setup
time (see Figure 4-4).

Stage 1: Separate Internal Setup from External Setup

__ ~~Internal setup refers to setup operations that can be done only
‘key terms __With the equipment stopped. External setup operations
can be
done while the machine is running. At many companies interna
l
and external setup operations are jumbled together. This means
that things that could be done while the machine is running
are
not done until the machine is stopped.
Stage | involves sorting out the external operations so they can
be
done beforehand. This step alone can reduce setup time
by 30 to
50 percent. Typical stage 1 activities include
e ‘Transporting all necessary tools and parts to the machine
while it is
still running the previous job
Examples

¢ Confirming the function of exchangeable parts before

stopping the
machine for changeover
RS EE a Sa
“Named for the goal of completing changeover within
a single-digit number of
minutes—9 minutes or less.

oe
 SUPPORT TECHNIQUES FOR JUST-IN-TIME

Stage 2: Convert Internal Setup to External Setup

The next step is to look again at activities done with the machine
stopped and to find ways to do them while the machine is still
active. Typical stage 2 improvements include
¢ Preparing operating conditions in advance, such as preheating a die
mold with a heater instead of using trial shots of molten material
Examples

e Using devices that automatically position the parts without

measurement

Stage 3: Streamline All Aspects of Setup

This stage chips away at remaining internal setup time in several
ways:
¢ Using parallel operations, with two or more people working simul-
taneously
Examples

¢ Using functional clamps instead of nuts and bolts

e Using numerical settings to eliminate trial-and-error adjustments

TAKE FIVE
Take five minutes to think about these questions and to write
down your answers:
e How long does a typical changeover take in your work area?
¢ Can you list the changeover steps that should take place while
the machine is still running?

53
 CHAPTER 4 |

Zero Quality Control Elements

. Source inspection to catch errors before they become defects

. 100 percent inspection to check every workpiece, not just a
sample
3. Immediate feedback to shorten the time for corrective action

4. Poka-yoke (mistake-proofing) devices to check automatically for

abnormalities

Figure 4-5. The Four Elements of ZQC

BACKGROUND
Zero Defects Through Zero Quality Control
Zero defects is a basic expectation of the customer. In addition to
the costs of scrap or rework, even one defect can ruin the compa-
ny’s reputation with the customer who gets it. And in just-in-time
manufacturing, there is no extra supply of WIP to replace defects
that are “inspected out.”
The key to zero defects is to detect and prevent abnormal condi-
Key Point
tions before they can cause defects. Zero quality control (ZOC, or
QC for zero defects) is a defect prevention system that uses
inspection at the point where it can prevent defects —before the
processing takes place.
ZOC combines four basic elements:
I. It uses source inspection to catch errors before they become defects.
fey Boints 2. It uses 100 percent inspection to check every workpiece, not just a
sample.
3. It provides immediate feedback, thereby shortening the time for cor-
rective action.
4. Because people naturally make mistakes or miss things, ZOC uses
poka-yoke (mistake-proofing) devices on processing or assembly
equipment to check automatically for abnormalities,

54
 [ SUPPORT TECHNIQUES FOR JUST-IN-TIME

press | |___press | | Dives |

od wy limit switch (poka-yoke)
Fed detects correct
was 2 Vv: positioning
jig . se
correct incorrect
to operating
circuit

Figure 4-6. A Poka-Yoke Example

Poka-Yoke Systems
A poka-yoke system uses sensors or other devices to detect errors
Key Term
that could cause defects. The most effective poka-yokes not only
sound an alarm (instant feedback) but also stop the process so a
defect cannot be made. For example, a limit switch can be posi-
tioned so the machine will not start when the workpiece is loaded
incorrectly (see Figure 4-6). This prevents operation that would
produce a defect.
A nonelectronic poka-yoke example is a jig with an uneven pat-
tern of notches or pins so the workpiece cannot be positioned in it
incorrectly.
The key to effective mistake-proofing is determining when and where
Key Point
defect-causing conditions arise and then figuring out how to detect
or prevent these conditions, every time. Shopfloor people have
important knowledge and ideas to share for developing and imple-
menting poka-yoke systems that check every item and give imme-
diate feedback about the problem.

TAKE FIVE
Take five minutes to think about these questions and to write
down your answers: .

e What kinds of actions or conditions can cause defects to happen’

in your process? Can you think of ways to “catch” these condi-
tions before defects are made?

55
 CHAPTER 4

=POINT
AIMS AT GETTING BUILDS A COMPREHEN-
THE MOST EFFECTIVE SIVE LOSS-PREVENTION
USE OF EQUIPMENT. SYSTEM.

DEFINITION
OF

BRINGS TOGETHER REQUIRES THE SUPPORT USES TEAM-BASED

PEOPLE FROM ALL AND COOPERATION OF ACTIVITIES AIMED AT
DEPARTMENTS CONCERNED EVERYONE FROM TOP PLANTWIDE GOALS OF
WITH EQUIPMENT. MANAGERS TO SHOPFLOOR ZERO LOSSES,
EMPLOYEES.

Figure 4-7. A Definition of TPM

Total Productive Maintenance for

BACKGROUND
Dependable Equipment
The health of processing and assembly equipment can make or
break the JIT implementation effort. Manufacturing just-in-time,
without large WIP buffers between processes, requires depend-
able equipment that will perform as needed, when needed.
Total productive maintenance (TPM) is a good way to ensure
that equipment is ready when it is needed. TPM is a comprehen-
Key Term sive, companywide approach for reducing equipment-related loss-
es such as downtime, speed reduction, and defects by stabilizing
and improving equipment conditions. The definition in Figure
-7 describes five key aspects.
The TPM framework improves equipment effectiveness through var-
Key Point lous approaches that involve everyone in the company. Frontline
workers, especially, have a key role in the TPM activity called
autonomous maintenance.

Autonomous Maintenance
Autonomous maintenance refers to activities carried out by
opera-
tors in cooperation with maintenance staff to help stabilize
Key Term basic
equipment conditions and spot problems early. Autonomo
us
maintenance changes the old view that operators just run
machines and maintenance people just fix them. Opera
tors have

56
 SUPPORT TECHNIQUES FOR JUST-IN-TIME

RE OF OUR , wt
ees |
(Se INES

Figure 4-8. Autonomous Maintenance Involves Everyone

valuable knowledge and skill that can be used to help keep equip-
ment from breaking down.
In autonomous maintenance, operators learn how to clean the
Key Point
equipment they use every day, and how to inspect for trouble signs
as they clean (see Figure 4-8). They may also learn basic lubrica-
tion routines, or at least how to check for adequate lubrication.
They learn simple methods to reduce contamination and keep
the equipment cleaner. Ultimately, they learn more about the
various operating systems of the equipment and may assist techni-
cians with repairs. Autonomous maintenance training helps oper-
ators work as partners with maintenance and engineering to keep
equipment working as effectively as possible.

TAKE FIVE
Take five minutes to think about these questions and to write
down your answers:
e Who performs basic cleaning and maintenance on the equipment
in your work area?
¢ Do you think autonomous maintenance activities would reduce
unplanned downtime in your company? Why or why not?

57
 CHAPTER 4

Receive Order Ship Product

EEE

SES SE ee
A = Value-adding operation time (stamp, weld, paint, finish, assemble)

| = Non-value-adding time (receive, store, move, set up, wait, pack)

Value-added ratio at a typical manufacturing company:

95% NVA 5% VA

Figure 4-9. The Value-Added Ratio

New Measures of Excellence

It is common wisdom that “what gets measured is what gets
done.” To support just-in-time, it is crucial to use measures that
Key Point
reinforce the new way of operating. Reliance on traditional mea-
sures such as equipment or labor efficiency may make it hard to
change, since efficiency in the traditional sense tends to generate
large quantities of inventory.
Performance measures for JIT should not only recognize
improvement but also show the remaining waste to be addressed.
Here are some examples of performance measures that help moti-
vate people to do the right things:
Value-added ratio: This measure indicates how much of the total
Key Term production lead time is spent in actual processing operations that
transform the materials and add value for the customer (see
Figure 4-9).
Production lead time: Companies track the time elapsed from the
Key Term order to the shipped product. Shorter lead time is an important
competitive advantage. Combining this with the value-added
ratio yields insights into phases of production that need to be
improved.

58
 SUPPORT TECHNIQUES FOR JUST-IN-TIME

Inventory level: ‘This measure (often stated in terms of days of

Key Term
stock or number of turns) is even more important in JIT manu-
facturing than in traditional mass production. When products are
manufactured on the basis of customer orders, they should ship
to the customer as soon as they are completed. A JIT company
also pays attention to the level of its raw materials and WIP to
maintain a flow while using minimal “buffer” amounts.

Setup time: Quick changeover is critical to flexible use of equip-

Key Term
ment to produce wide variety in small lots.

Distance moved: This measure tracks the waste of moving WIP

Key Term
between processes. A process-based layout should reduce this
transport.

Defect rate: Zero defects is the goal, and not just in final inspec-
Key Term
tion. Tracking defect rates for each process promotes mistake-
proofing and machine or method improvements all along the
line.

Overall equipment effectiveness (OEE): This is the basic measure-

Key Term
ment for total productive maintenance. It is a percentage calcu-
lated by multiplying the availability rate, the performance effi-
ciency (performance rate), and the quality rate. These three rates
are linked directly to specific types of equipment-related losses
(wastes) that can be targeted for improvement.

TAKE FIVE
Take five minutes to think about these questions and to write
down your answers:
e What kind of measures drive performance at your company?
e What measures do you think are important to promote just-in-
time manufacturing? To promote employee morale? To promote
customer satisfaction?

59
 CHAPTER 4

ESS as ea He Soe Sh) Sea

Establishing good basic workplace conditions is an essential first

step in any shopfloor improvement program. Many companies
use the 5S system to improve and standardize the physical con-
dition of their work areas. The 5S system sorts and removes
unneeded items, determines best locations for needed items,
cleans thoroughly, and then establishes standards for maintain-
ing improved conditions.
Visual management of the production process is an important
support for just-in-time. Visual management techniques express
information in a way that can be understood quickly by every-
one. The andon system is a form of visual management that uses
lights to alert people to equipment problems. Lines, labels, and
signboards can be used to indicate where to find things and
where to put them away. Color coding can help prevent mis-
takes and make information easier to understand.
Quick changeover is essential for manufacturing different prod-
uct types in small lots. The SMED approach gives a three-stage
system for shortening setup:
1. Separate internal setup (activities that require the machine to
be stopped) from external setup (activities that can be done
while the machine is still running).
2. Convert internal setup to external setup.
3. Streamline all aspects of setup.
The first step alone can reduce setup time by 30 to 50 percent.
Zero defects is also critical for smooth just-in-time production
.
The key to zero defects is to detect and prevent abnormal
con-
ditions before they can cause defects. Zero quality contro
l
(ZOC) combines four elements to catch all problems
at the
error or abnormality stage. One of these elements—the
poka-
yoke (mistake-proofing) system— uses simple sensors
or other
devices to check automatically for errors. The most
effective

60
 SUPPORT TECHNIQUES FOR JUST-IN-TIME

poka-yokes not only sound an alarm but also stop the process so
a defect cannot be made.
Manufacturing just-in-time, without large WIP buffers between
processes, requires dependable equipment that will perform as
needed, when needed. Total productive maintenance (TPM)
helps ensure that equipment is ready when needed. TPM is a
comprehensive, companywide approach for reducing equip-
ment-related losses.
TPM improves equipment effectiveness through approaches
that involve everyone in the company. Frontline workers have a
key role in the TPM activity called autonomous maintenance—
activities carried out by operators in cooperation with mainte-
nance to help stabilize equipment conditions and spot problems
early. Autonomous maintenance changes the old view that oper-
ators just run machines and maintenance people just fix them.
It is common wisdom that “what gets measured is what gets
done.” To support just-in-time, it is crucial to use measures that
reinforce the new way of operating. Reliance on traditional mea-
sures such as equipment or labor efficiency may make it hard to
change, since efficiency in the traditional sense tends to gener-
ate large quantities of inventory. Performance measures for JIT
should not only recognize improvement but also show the
remaining waste to be addressed.

61
 CHAPTER 4 |

REFLECTIONS

Now that you have completed this chapter, take five minutes
to think about these questions and to write down your
answers:
¢ What did you learn from reading this chapter that stands
out as particularly useful or interesting?
¢ Do you have any questions about the topics presented in
this chapter? If so, what are they?
e What additional information do you need to fully under-
stand the ideas presented in this chapter?

62
 Reflections and Conclusions

CHAPTER OVERVIEW |

Reflecting on What You’ve Learned

Opportunities for Further Learning
Conclusions
Additional Resources Related to JIT and Shopfloor
Improvement
Books and Videos

Newsletters

Training and Consulting

 ei CHAPTER 5

Reflecting on What You’ve Learned

An important part of learning is reflecting on what you've learned.
Key Point
Without this step, learning can’t take place effectively. That’s why
we've asked you at the end of each chapter to reflect on what
you've learned. And now that you've reached the end of the book ?

we'd like to ask you to reflect on what you’ve learned from the
book as a whole.
Take ten minutes to think about the following questions and to
write down your answers.
¢ What did you learn from reading this book that stands out as
particularly useful or interesting?
¢ What ideas, concepts, and techniques have you learned that will
be most useful to you during just-in-time implementation? How
will they be useful?
¢ What ideas, concepts, and techniques have you learned that will
be least useful during just-in-time implementation? Why won’t
they be useful?
e Do you have any questions about the just-in-time approach? If so >

what are they?

64
 REFLECTIONS AND CONCLUSIONS

Opportunities for Further Learning

Here are some ways to learn more about just-in-time manufacturing:
¢ Find other books, videos, or trainings on this subject. Several are
listed on the next pages.
How-to Steps
¢ If your company is already implementing just-in-time, visit other
departments or areas to see how they are applying the ideas and
approaches you have learned about here.
¢ Find out how other companies have implemented just-in-time. You
can do this by reading magazines and books about JIT and lean
manufacturing, and by attending conferences and seminars present-
ed by others.

Conclusions
Just-in-time is more than a series of techniques. It is a fundamen-
tal approach for improving the manufacturing process. We hope
this book has given you a taste of how and why this approach can
be helpful and effective for you in your work.

65
ie CHAPTER 5 LE ee

Additional Resources Related to JIT and

Shopfloor Improvement
Books and Videos

Just-in-Time and Lean Manufacturing

Jeffrey Liker, Becoming Lean: Inside Stories of U.S.

Manufacturers (Productivity Press, 1997) —This book shares
powertul first-hand accounts of the complete process of imple-
menting just-in-time and other lean methods.
Japan Management Association, ed., Kanban and Just-in-Time at
Toyota (Productivity Press, 1986) —This classic overview book
describes the underlying concepts and main techniques of the
original just-in-time system.
Taiichi Ohno, Toyota Production System (Productivity Press,
1988) —This is the story of the first just-in-time system, told by the
Toyota vice president who was responsible for implementing it.
Hiroyuki Hirano, JIT Factory Revolution (Productivity Press,
1988) —This book of photographs and diagrams gives an excellent
overview of the changes involved in implementing just-in-time.
Hiroyuki Hirano, JIT Implementation Manual (Productivity
Press, 1990) —This two-volume manual is a comprehensive,
illustrated guide to every aspect of the JIT transformation.
Shigeo Shingo, A Study of the Toyota Production System from an
Industrial Engineering Viewpoint (Productivity Press, 1989) —
This classic book was written by the renowned industrial engi-
neer who helped develop key aspects of its success.
Iwao Kobayashi, 20 Keys to Workplace Improvement (Productivity
Press, 1995) —This book addresses 20 key areas in which a com-
pany must improve to maintain a world class manufacturing
operation. A five-step improvement for each key is described
and illustrated.

66
 REFLECTIONS AND CONCLUSIONS

The 5S System and Visual Management

The 5S System (Tel-A-Train, 1997) —Filmed at leading U.S.

companies, this seven-tape training package (coproduced with
Productivity Press) teaches shopfloor teams how to implement
the 5S system.
Productivity Press Development Team, 5S for Operators
(Productivity Press, 1996)—This Shopfloor Series book outlines
five key principles for creating a clean, visually organized work-
place that is easy and safe to work in. Contains numerous tools,
illustrated examples, and how-to steps, as well as discussion ques-
tions and other learning features.
Michel Greif, The Visual Factory: Building Participation Through
Shared Information (Productivity Press, 1991) —This book shows
how visual management techniques can provide “just-in-time”
information to support teamwork and employee participation on
the factory floor.

Poka-Yoke (Mistake-Proofing) and Zero Quality Control

Productivity Press Development Team, Mistake-Proofing for

Operators (Productivity Press, 1997) —This Shopfloor Series book
describes the basic theory behind mistake-proofing and intro-
duces poka-yoke systems for preventing errors that lead to defects.
Shigeo Shingo, Zero Quality Control: Source Inspection and the
Poka-Yoke System (Productivity Press, 1986)—This classic book
tells how Shingo developed his ZOC approach and describes the
thinking behind its elements. It includes a detailed introduction
to poka-yoke devices and many examples of their application in
different situations.
NKS/Factory Magazine, ed., Poka-Yoke: Improving Product
Quality by Preventing Defects (Productivity Press, 1988) —This
illustrated book shares 240 poka-yoke examples implemented at
different companies to prevent errors and defects.

On
 Quick Changeover

Productivity Press Development Team, Quick Changeover for

Operators (Productivity Press, 1996) —This Shopfloor Series book
describes the stages of changeover improvement with examples
and illustrations.
Shigeo Shingo, A Revolution in Manufacturing: The SMED
System (Productivity Press, 1985) —This classic book tells the
story of Shingo’s SMED system, tells how to implement it, and
provides many changeover improvement examples.

Total Productive Maintenance

Japan Institute of Plant Maintenance, ed., TPM for Every

Operator (Productivity Press, 1996) —This Shopfloor Series book
introduces basic concepts of TPM, with emphasis on the six big
equipment-related losses, autonomous maintenance activities,
and safety.
Japan Institute of Plant Maintenance, ed., Autonomous
Maintenance for Operators (Productivity Press, 1997) — This
Shopfloor Series book on key autonomous maintenance activities
includes chapters on cleaning/inspection, lubrication, localized
containment of contamination, and one-point lessons related to
maintenance.

Newsletter
Lean Manufacturing Report— News and case studies on how
companies are implementing lean manufacturing philosophy and
specific techniques such as cell design and total productive main-
tenance. For subscription information, call 1-800-394-6868

Website
Visit our web pages at www. productivityinc.com to learn more
about Productivity’s products and services.

68
 REFLECTIONS AND CONCLUSIONS

Training and Consulting

Productivity Consulting Group offers a full range of consulting
and training services on just-in-time and other manufacturing
improvement approaches. For additional information, call
1-800-394-6868.

69
About the Productivity Development Team
Since 1979, Productivity, Inc. has been publishing and teaching
the world’s best methods for achieving manufacturing excellence.
At the core of this effort is a team of dedicated product developers,
including writers, instructional designers, editors, and producers,
as well as content experts with years of experience in the field.
Hands-on experience and networking keep the team in touch
with changes in manufacturing as well as in knowledge sharing
and delivery. The team also learns from customers and applies
this knowledge to create effective vehicles that serve the learning
needs of every level in the organization.

als
 LEARNING PACKAGE
The Learning Package is designed to give your team leaders everything they
need
to facilitate study groups on Just-in-Time for Operators. Shopfloor workers
partici-
pate through a series of discussion and application sessions to practice
using the
tools and techniques they've learned from the book.

The Learning Package:

* Provides the foundation for launching a full-scale implementation
process
* Provides immediate practical skills for participants
* Offers a flexible course design you can adapt to your unique
requirements
* Encourages workers to become actively involved in their own learning
process
Included In Your Learning Package:
* Five copies of Just-in-Time for Operators
* One copy of Kanban: Just-in-Time at Toyota
* One 8-1/2” x 11” Leader’s Guide
* A set of overhead transparencies that summarize major points
* A set of slides with case study examples

Just-in-Time for Operators Learning Package

The Productivity Press Development Team
ISBN 1-56327-134-6
Item # JITLP-B8001

72
About the Shopfloor Series
Put powerful and proven improvement tools in the hands of your
entire workforce!
Progressive shopfloor improvement techniques are imperative for manufacturers
who want to stay competitive and to achieve world class excellence. And it’s the
comprehensive education of all shopfloor workers that ensures full participation
and success when implementing new programs. The Shopfloor Series books make
practical information accessible to everyone by presenting major concepts and
tools in simple, clear language and at a reading level that has been adjusted for
operators by skilled instructional designers. One main idea is presented every
two to four pages so that the book can be picked up and put down easily. Each
chapter begins with an overview and ends with a summary section. Helpful illus-
trations are used throughout.

Books currently in the Shopfloor Series include:

5S FOR OPERATORS TPM TEAM GUIDE
5 Pillars of the Visual Workplace Kunio Shirose
The Productivity Press Development Team ISBN 1-56327-079-X/ 175 pages
ISBN 1-56327-123-0/ 133 pages Order TGUIDE-B8001 / $25.00
Order 5SOP-B8001 / $25.00
TPM FOR EVERY OPERATOR
QUICK CHANGEOVER FOR OPERATORS The Japan Institute of Plant Maintenance
The SMED System ISBN 1-56327-080-3 / 136 pages
The Productivity Press Development Team Order TPMEO-B8001 / $25.00
ISBN 1-56327-125-7 / 93 pages
Order QCOOP-B8001 / $25.00 AUTONOMOUS MAINTENANCE
The Japan Institute of Plant Maintenance
MISTAKE-PROOFING FOR OPERATORS ISBN 1-56327-082-x / 138 pages
The Productivity Press Development Team Order AUTOMOP-B8001 / $25.00
ISBN 1-56327-127-3 / 93 pages
Order ZQCOP-B8001 / $25.00 FOCUSED EQUIPMENT IMPROVEMENT FOR
TPM TEAMS
TPM FOR SUPERVISORS The Japan Institute of Plant Maintenance
The Productivity Press Development Team ISBN 1-56327-081-1/ 144 pages
ISBN 1-56327-161-3 / 96 pages Order FEIOP-B8001 / $25.00
Order TPMSUP-B8001 / $25.00

CELLULAR MANUFACTURING
The Productivity Development Team
ISBN 1-56327-213-X/ 96 pages
Order CELL-B8001 / $25.00

Productivity Press, Dept. BK, P.0. Box 13390. Portland, OR 97213-0390

Telephone: 1-800-394-6868 Fax 1-800-394-6286
 Continue Your Learning with In-House
Training and Consulting from Productivity, Inc.
Productivity, Inc. offers a divérse menu of consulting services and training prod-
ucts that complement the exciting ideas from Productivity Press books. Whether
you need assistance with long-term planning or focused, results-driven training,
Productivity’s experienced professional staff can enhance your pursuit of compet-
itive advantage.

Productivity, Inc. integrates a cutting edge management system with today’s

leading process improvement tools for rapid, measurable, lasting results. In con-
cert with your management team, we will focus on implementing the principles
of Value Adding Management, Total Quality Management, Just-In-Time, and Total
Productive Maintenance. Each approach is supported by Productivity’s wide array
of team-based tools: Standardization, One-Piece Flow, Hoshin Planning, Quick
Changeover, Mistake-Proofing, Kanban, Problem Solving with CEDAC, Visual
Workplace, Visual Office, Autonomous Maintenance, Equipment Effectiveness,
Design of Experiments, Quality Function Deployment, and more.

Productivity is known for significant improvement on the shopfloor and the bot-
tom line. Through years of repeat business, an expanding and loyal client base
continues to recommend Productivity to their colleagues. Contact us to learn how
we can tailor our services to fit your needs.

Telephone: 1-800-394-6868 (U.S. only) or 1-503-235-0600

Fax: 1-800-394-6286
 THE SHOPFLOOR SERIES
LEARNING ASSESSMENT PACKAGE

Software to Confirm the Learning of

Your Knowledge Workers
Created by the Productivity Development Team

How do you know your employee education program is getting results? Employers need to
be able to quantify the benefit of their investment in workplace education. The Shopfloor
Series books and Learning Packages from Productivity Press offer a simple, cost-effective
approach for building basic knowledge about key manufacturing improvement topics. Now
you can confirm the learning with the Shopfloor Series Learning Assessment.
The Shopfloor Series Learning Assessment is a new software package developed specifically
to complement five key books in the Shopfloor Series. Each module of the Learning
Assessment provides knowledge tests based on the contents of one of the Shopfloor Series
books, which are written for production workers. After an employee answers the questions
for a chapter in the book, the software records his or her score. Certificates are included for
recognizing the employee’s completion of the assessment for individual modules and for all
five core modules.
The Shopfloor Series Learning Assessment will help your company ensure that employees
are learning and are recognized and rewarded for gaining knowledge. It supports professional
development for your employees as well as effective implementation of shopfloor improve-
ment programs.
ISBN 1-56327-203-2
Item# ASSESS 1,495.00

Here’s How the Learning Assessment Package Works:

1. The employee reads one of the Shopfloor Series books, chapter by chapter. Easy to read
and understand, the books educate your employees with information they need, and
prepare them for the learning assessment test questions.

2. After an administrator has set up the Learning Assessment software on a computer, the
employee can then use the computer to answer a set of test questions about the informa-
tion in the Shopfloor Series book they have read. The software automatically scores the
answers and logs the score into a database for easy access by the administrator.
3. If the employee does not pass the assessment for a particular chapter, he or she can
review the material in the book and take the assessment again. (For security, the software
selects randomly from three different questions on each topic.)

4. Upon passing the assessment modules for all chapters of the Shopfloor Series books, the
employee receives a completion certificate (included in the package) and any other
reward or recognition determined by your company.
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Productivity, Inc.
Portland, Oregon