production management group presentation report topic modern factory management

Little’s Law Little Law is a formula used to show the correlation between three values: WIP - Throughput - Cycle time: production throughput is equal to the work-in-process divided by th

HO CHI MINH CITY INTERNATIONAL UNIVERSITY SCHOOL OF INDUSTRIAL ENGINEERING & MANAGEMENT

Course: PRODUCTION MANAGEMENT GROUP PRESENTATION REPORT TOPIC: MODERN FACTORY MANAGEMENT

Lecturer : M.Eng Tran Van Ly

Group 7

1 (leader) Truong Hoang Thao Vy IELSIU22380

| DEFINITION

1 Definitions

e Throughput:

The rate at which a manufacturing system produces products or completes tasks within a given time period, often measured in units per hour or day

e Raw Material Inventory (RMI):

The inventory of unprocessed materials, such as raw metals or plastics, that are stored and ready for use in the manufacturing process

e Finished Goods Inventory (FGI):

The stock of completed and ready-for-sale products awaiting delivery to customers

e Work in Progress (WIP):

Partially completed parts, assemblies, or products at various stages in the manufacturing process, not yet finished but actively being worked on

e Cycle Time (CT):

An average time from the release of a job at the beginning of the routing until it reaches an inventory point

2 Little’s Law

Little Law is a formula used to show the correlation between three values: WIP - Throughput - Cycle time: production throughput is equal to the work-in-process divided

by the production flow time (lead time)

P=VV/L, with throughput is how many units are produced per hour in a process, WIP is work-in-process and lead time is how long it takes to get through the process

So, what is the trade-off between throughput and cycle time?

Ideally, agile teams want to maximize their throughput and minimize their cycle time, as this means that they are delivering more value to customers faster and more frequently However, there is a trade-off between these two metrics, as increasing one may decrease the other For example, if a team increases its WIP, it may increase its throughput, as it can work on more items simultaneously However, this may also increase its cycle time, as each item will have to wait longer to be completed and delivered, due to the increased congestion and complexity in the system Conversely, if a team decreases its WIP, it may decrease its cycle time, as each item will have less waiting time and more attention However, this may also decrease its throughput, as it will work on fewer items at a time

Il PUSH/PULL SYSTEM

1 Traditional push system

Traditional production systems as parts are processed based on the master production schedule (MPS) Materials are pushed on to the next process regardless of whether they are required at the time or not

PUSH

=> Process => Process ma Process => Process ==}> :

Order Step 1 Step 2 Step 3 Step 4 Delivery

2 Pull system with Kanban

Kanban: Acard corresponding to a standard quantity of production (or size container) used

in the pull system to authorize the production or withdrawal of goods

The Kanban pull system is a Lean manufacturing technique that aims to eliminate raw material wastage by supplying only what is needed when it is required The Kanban pull system gets the name “pull” because supplies are pulled into the production process when customers make requests

Process of pull system in Kanban: In a Kanban pull system, a pull signal is triggered when the number of cards in a column drops beneath the specified limit This is a signal to the previous column that a new task can move further Once the work-in-progress limit is reached, no more tasks may be pulled until an outstanding one has been completed first This prevents team burnout by ensuring that they only have as much work as they’re able

to manage It also helps prevent tasks from being neglected

Il CONWIP

1 Definition

CONWIP stands for constant work in process)

Acontrol method where each time a job leaves the system, a new job is added to the process

The CONWIP system is similar to KANBAN in many ways, but instead of the card being associated with a specific type of part, it is associated with a certain quantity

So, when a CONWIP card gets released upon the parts represented by it being consumed, it goes back to the beginning of the process However, on the way, it checks with the backlog to see which parts are in demand along with its quantity These details are captured by the card so that the refilled will be done for the part in demand

There are some key features about the system

e Keep the total number of jobs in the factory at a fixed number (Produce constant products so you need to fix the number of jobs to serve the order perfectly)

e New job is released to enter the factory after completion of a job

e Within the system, operate in the same way as the push system ( that is to maintain the number of quantities in each workstation)(In the system, eliminates bottle-neck

IV

- station with lowest capacity)

JIT

1 Definition:

Just In Time (JIT) can be defined as an integrated set of activities designed to achieve high-volume production using minimal inventories (raw materials, work in process, and finished goods)

JIT also involves the elimination of waste in production effort

JIT also involves the timing of production resources (e.g., parts arrive at the next workstation “just in time”)

Just in time towards the goal:

e Elimination of waste in the production system

Improve quality

Minimize lead time

Reduce costs

Improve productivity

Japanese approach to productivity:

e Imported technologies

e Efforts concentrated o shop floor

e Quality Improvement focus

e Elimination Of waste

e Respected People

2 Waste in operation

Waste is defined as anything that doesn’t add value to a product

Therefore, waste is essentially an inefficiency within the system, leading to unnecessary costs and reducing profitability It can manifest in various quality defects, overproduction, and even unnecessary motion within the manufacturing facility The lean manufacturing philosophy has identified nine specific types of waste often

referred to as the ‘ 9 waste’ that are commonly found in manufacturing processes By ;

understanding and identifying these waste, manufacturers can work towards creating more efficient, productive, and sustainable operations

3 Minimizing waste:

- If any activity that increases cost but does not add value to any process in an organization is called “waste” Thus eliminating waste of labor, material, or equipment is a key to minimizing waste There are 4 methods:

e Focused factory networks

=>

These are small specialized plants that limit the range of products produced (sometimes 1 type of product for an entire facility)

There are several reasons for doing this First, it’s very difficult to manage a large installation Second when a plant is specifically designed for one purpose It can be constructed and operated very economically

Ex: Ford’s Valencia engine plant which produces two engines per employee per day and requires 900.000 square feet of floor space An almost identical engine is produced by the Toyota Motor Company in Japan where they make nine engines per employee per day in a plant that has only 300.000 square feet of space The issue

is not only productivity per person but also a much lower capital investment to achieve this manufacturing capability

Group technology:

Using Departmental Specialization for plant layout can cause a lot of unnecessary material movement

Revising by using Group Technology Cells can reduce movement and improve product flow

Group Tech (Cell Manufacturing): is a manufacturing process that produces families of parts within a single line or cell of machines

The grinder and lathe are combined together Therefore, the process flow becomes more fluent and smooth

Just-in-time production:

Just in time (JIT) manufacturing is a workflow methodology aimed at reducing flow times within production systems, as well as response times from suppliers and to customers

(JIT) production is a ‘pull’ system of providing the different processes in the assembly sequence with only the kinds and quantities of items that they need and only when it needs them

Use of JIT means that individual products can be built to order and that every component has to fit perfectly first time because there are no alternatives available

It is therefore impossible to hide pre-existing manufacturing issues; they have to be addressed immediately Thus, we can say that: (What it does)

JIT requires: JIT refers to workers being able to perform many different tasks Key activities in JIT:

Matching demand with product design

Define product families with specific manufacturing goals, then design manufacturing system to facilitate the flow based production of these families Establish relationship with suppliers to ensure raw material delivery in a JIT manner

V KANBAN

1 Traditional push system

Machine Station 1

UL ` Storage

—_ 4 Area

S Machine Station 2

A push system begins production in order to meet projected future demand that has been calculated using historical data With this supply chain management approach, products are "pushed" through the supply chain Production is started based on the demand projection, and after production is complete, the finished goods are shipped to distributors or retailers, who will advertise them and bide their time until buyers decide

to buy

2 Kanban pull system

Machine

Station 1

Storage Area

“—_ - - ỐÖ

Machine Station 2

In a Kanban pull system, a pull signal is triggered when the number of cards in a column drops beneath the specified limit This is a signal to the previous column that a new task can move further Once the work-in-progress limit is reached, no more tasks may be pulled until an outstanding one has been completed first

It is crucial that the 5 Kanban properties are embedded in your process to implement a Pull System successfully

To implement and maintain a pull system with the Kanban method, you need to follow four main steps: visualize your workflow, establish a pull system, limit work in progress, and apply pull signals

3

Traditional Push System Kanban Pull System

e “Make to stock” e “Make to demand”

e Make and deliver products © Only start to produce

based on assumptions of products once customers

what the customer might request it

want

¢ Based on anticipation e Based on actual comsumption

e Inventory are high © Inventory are low

e Unnecessary waste e Waste is reduced

Kanban definition

The Kanban name comes from two Japanese words, “Kan” 4 meaning sign, and “Ban”

#R meaning a board

KANBAN is an inventory control system used in just-in-time (JIT) manufacturing to track production and order new shipments of parts and materials

There are several ways of using kanbans The two most important types of kanbans are:

e Production kanban: signal the need to produce more parts

e Withdrawal kanban (conveyance kanban): signals the need to withdraw parts from

4

one work center and deliver them to the next work center

Single-card Kanban system

Operating rules:

Each container must have a kanban card

The assembly line withdraws materials from fabrication ( pull system)

Containers of parts must be removed from the storage area with a kanban being posted on the receiving post

The containers should always contain the same number of good parts The use of nonstandard containers or irregularly filled containers disrupts the production flow

of the assembly line

Total production should not exceed the total amount authorized on the kanban in the system

Only non defective parts should be passed along

Conceptual diagram of the Kanban system

5 Minimizing waste: Kanban production system

Withdrawal kanban

soot nett way,

+@* *+

P

Storage

Storage

Machine \ Part A

Center E— › + Assembly

A Line

+ * *

"wane

Production kanban c— s, Material Flow

n.unnn > Card (signal) Flow

Figure illustrates an assembly line that is supplied with part by a machine center The machine center makes part A and part A kept in containers Each container next to the assembly has a withdrawal Kanban, and each of the containers next to the machine center has a production Kanban

The process begins by the Assembly Line people pulling Part A from Storage An employee takes the withdrawal Kanban from the container, and takes the card to the machine center storage area

Once the Production kanban is received, the Machine Center produces a unit to replace the one taken by the Assembly Line people in the first place

This puts the system back where it was before the item was pulled

6 Determining the number of Kanbans needed

e Setting up a kanban system requires determining the number of kanbans (or containers) needed

Each container represents the minimum production lot size

e An accurate estimate of the lead time required to produce a container is key to determining how many kanbans are required

k= Expected demand during leadtime + Safety stock

Size of the container

DI(I+ø)

C

k = Number of kanban card sets (a set is a card)

D = Average number of units demanded over some time period

L = lead time to replenish an order (same units of time as demand)

a = Safety stock expressed as a percentage of demand during lead time

VI

7

C = Container size

Respect for people

One of the core principles of Lean manufacturing and, by extension, the Kanban system,

is respecting and valuing the contributions and ideas of employees in order to create the best working environment:

e Level payrolls: refers to smoothing out the work and pay for employees over time

1

The JIT process begins with a review of the essential manufacturing building blocks:

to avoid fluctuations in workloads and income It can lead to more stable employment and better workforce morale

Cooperative employee unions: cooperative employee unions work closely with management to promote collaboration and the shared goal of improving processes and working conditions

Subcontractor networks: create efficient and synchronized supply chains with reduced lead times and waste

Bottom-round management style: This management style involves decision-making and problem-solving at the lowest possible level within an organization It empowers employees to make decisions and improvements

Quality circles (Small group involvement activities): Quality circles are small groups of employees who meet regularly to identify and solve quality-related problems This approach promotes employee involvement in improving product quality and processes, aligning with Lean principles

JIT REQUIREMENTS

Design flow process

product design, process design, personnel and manufacturing planning Then plans are put into place to eliminate disruption, minimize waste and build a flexible system

2 Total Quality Control

A Total Quality Management (TQM) review ensures there is continuous improvement throughout the process A management review defines workers’ roles and responsibilities, defines and measures statistical quality control, stabilizes schedules, and checks out load and capacity schedules and levels

¢ Designing products that can easily be produced on existing machines;

¢ Designing machines for easier operation, changeover, and maintenance;

¢ Training and retraining workers to operate and maintain machines properly;

¢ Purchasing machines that maximize productive potential;

« Designing a preventive maintenance plan that spans the entire life of each machine

3 Stabilize Schedule

Inform your team about the skills and capabilities they need to complete their work and conduct team education and empowerment sessions to educate them

4 Kanban-Pull

Educate the team on production and withdrawal methods using signaling methods like Kanban Review lot size policies and reduce lot sizes

5 Reduce Inventory More

Determine inventory needs, policies, controls and reduce inventory movements

- Separate internal setup from external setup Internal setup has to be performed while the machine is stopped; it cannot take place until the machine has finished with the previous operation External setup, on the other hand, can be performed in advance, while the machine is running By the time a machine has finished processing its current operation, the worker should have completed the external setup and be ready to perform the internal setup for the next operation Applying this concept alone can reduce setup time by 30 to 50%

- Convert internal setup to external setup This process involves making sure that the operating conditions, such as gathering tools and fixtures, preheating an injection mold, centering a die, or standardizing die heights, are prepared in advance

- Streamline all aspects of setup External setup activities can be reduced by organizing the workplace properly, locating tools and dies near their points of use, and keeping machines and fixtures in good repair Internal setup activities can be reduced by simplifying or eliminating adjustments Examples include precoding desired settings, using quick fasteners and locator pins, preventing misalignment, eliminating tools, and making movements easier Figure 16.10 provides some common analogies for these improvements

- Perform setup activities in parallel or eliminate them entirely Adding an extra person to the setup team can reduce setup time considerably In most cases, two people can perform a setup in less than half the time needed by a single person In addition, standardizing components, parts, and raw materials can reduce and sometimes eliminate setup requirements

6 Improve Product Design

Reduce the number of parts and steps in production by refining, standardizing and reviewing the entire process

- Standardize and reduce number of parts

- Process design with product design

- Better use of human resources

- Reduced space requirements

- Quality expectations

7 Work with Vendors