Production & Materials Management

Recent Methods To Control Waste

&

MRP

Just In Time• Developed By Kiichiro

Toyoda• This Is a Technique From

TQM Process• It is a waste control Method

Not A Inventory Control Technique

• Strives for reduced Setup time and Small Lot sizes

• Includes Zero defect, worker centric quality control

Advantages Of JIT

1. Investment is reduced

2.Quality is Improved

3. Reduces the non-value added activities, hence reduces overall process time

4. Administrative efficiency

5. Reduction in Buffer Inventories

Disadvantages Of JIT

• There is little room for mistakes as minimal stock is kept for re-working faulty product

• Production is very reliant on suppliers and if stock is not delivered on time, the whole production schedule can be delayed

• There is no spare finished product available to meet unexpected orders, because all product is made to meet actual orders.

Waste Reduction Using JIT

Techniques Used In JIT

1. Kanban

2. Grouping Technology

3. SMED(Single Digit Minute Exchange Die)

4. Jidoka(automation)

5. TPM(Total Productive Maintenance)

6. Pokayoke

Kanban

• Developed By Taiichi Ohno at TOYOTA• Kanban cards-signals the need for

movement of materials• A Red Card Lying in an empty part

conveys that more parts are needed• Three Bin System

SMED

Jidoka

The term JIDOKA is simply applied to a machine that moves on its own

Jidoka refers to "automation with a human touch," as opposed to a machine that simply moves under the monitoring and supervision of an operator

Since the loom stops when a problem arises, no defective products are produced.

Pokayoke

The concept was formalized and adopted by Shigeo Shingo as part of the Toyota production System

A simple distraction to worker can lead to a work being done wrong

The basic principle of Pokayoke is developing techniques which makes it difficult for people to make mistakes.

Case Study

• Larry Ficarra an engineer with Varian Ion Implant Systems, was assembling a vacuum chamber for a 10,000-component particle accelerator used in microprocessor production.

• A guide pin near an O-ring surface was supposed to go into a hole to ensure proper alignment of critical components. The part with the pin was so bulky it required a little juggling before the pin found the hole.

• Everything seemed to be working well, but on start up, the critical assembly would not hold a vacuum.

Case Study• Ficarra discovered that while trying to get the pin into the

hole, he had inadvertently scratched the O-ring surface which prevented the chamber from holding a vacuum.

• He discovered that Japanese refer to mistake proofing as poka-yoke and think of it as their first defense against defects.

• The pin may contact the elastomer O-ring, but the complaint O-ring resists damage.

• Ficarra says the scratched –surface error has not happened since.

KAIZEN• Kai - to modify or change• Zen - to think about making good or better• Masaaki Imai: Kaizen - “a means of

continuing improvements in personal life, home life, social life, and working life”

• Focus on gradual and continuous improvement

PDCA CYCLE• In the beginning, any new workplace is unstable.

• PDCA is followed during improvement activities in management• The Plan-Do-Check -Act is the first step in the kaizen process.• Plan: Establish a target for improvement and the way to achieve the

required result after improvement

• Do: Implement the plan

• Check: Determine whether the implementation is still on track and is on its course to bring about the desired improvement

• • Act: perform and standardize the new procedures to eliminate reversal

of the improvement process.

Kaizen Case Study

• Nissan introduced Welding Robots in 1973

• After Implementation of kaizen their work time per unit had been cut by 60 percent and increased overall production efficiency by 20 percent

• It was achieved through a series of kaizen programs that cut time by as little as half a second

Gemba Kaizen

• Gemba means work place• Gemba-kaizen is a process of

continuous improvement at workplace• The emphasis is on improvement on

shop floor• This can be achieved only if Group

works in good Coordination.

Material Requirement Planning

• Material requirements planning (MRP) is a production planning and inventory control system used to manage manufacturing processes. Most MRP systems are software-based.

MRP StructureOutput Reports

Purchase Request

Management Reports

Production Orders

Purchase advice

Exception reports

Order early or late or not needed

Order quantity too small or too large

BOM

Management Policy

Inventory data

Inputs Of MRP

• Master Scheduling• Bill Of Materials• Inventory Records

Bill Of Material

• Structured list of all the materials required for producing finished product

• On the basis of production requirement Bill Of Material extrapolates the requirement for raw materials and components

Bill Of material

Advantages Of MRP

1. Better response to customer orders

2. Faster response to market changes

3. Improved utilization of facilities and labor

4. Reduced inventory levels

Problems In MRP Implementation

• Need of high level of Discipline• No manual Intervention is allowed• The procedures in the company have to

be clear• Cost of software is high

Hubbell Lighting Case Study

• Manufactures Industrial Lighting Products

• Good-Quality Products• Poor at Meeting Due Dates• Work is specialized for Each customer• Complex Products

Hubbell Lighting Case Study

Before MRP Implementation• Less Than 75% of

Orders completed on time

After MRP Implementation• 97% of orders

completed on time• 2% of orders

completed with 1 or 2 days after due date

Conclusion

MRP focuses on the future, while JIT does not provide for forward-thinking.The JIT system is a dynamically linked system, that is better applied for short lead times, while MRP is not linked, and is suited for long lead times.The JIT system enhances the value of processes, MRP will give you more control