Waste Elimination: Lean Manufacturing (JIT Part 4)

Lean Manufacturing by Example
Waste is best describes as:
  • Any activity that doesn't add value to the product or service in the eyes of the customer
  • Poor product design, the inclusion of fancy functions not required by the customer
  • A product design causing difficulty in manufacturing
  • A product design without enough standardization

The 8 Types of Waste

Standardization reduces the planning and control efforts, the number of parts, and inventory required. TOYOTA identifies 7 examples of waste resulting from poor manufacturing methods.
  1. Waste of overproduction --> causes extra material handling, shortage of material for other product, quality problem, unnecessary inventories.
  2. Waste of waiting --> queue is a waste of time
  3. Waste of movement --> Extra distances causes extra material handling cost (waste)
  4. Waste of inventories --> causes costs of interest, space, record keeping, and obsolescence. Inventory is not an asset, it is a waste! Better if it's finished good so it can mask poor forecasting, poor quality, and poor production control.
  5. Waste of motion --> reaching far for materials or machine buttons is a waste of motion. Searching for tools is a waste of motion. Bad layout or training causes waste of motion.
  6. Waste of making defects --> the cost of scraps is a waste (but it's the least important than another waste)
  7. Waste of process itself --> Bad process design is a waste, i.e. wrong type of machine, wrong tools, and wrong fixtures.

Principles of eliminating waste:

  1. All waste should be eliminated
  2. Waste can gradually be eliminated by removing small amounts of inventory from the system, correcting the problems occur and then removing inventory.
  3. The customer's definition of quality should drive product design and manufacturing system
  4. Manufacturing flexibility is essential to maintain high quality and low cost with an increasingly differentiated product line
  5. Mutual respect and support should exist among an organization, its employee, its supplier, and its customers
  6. A team effort is required to achieve world-class manufacturing capability
  7. The employee who performs a task is the best source of suggested improvement.

The procedure of One Less at a Time:
1. If the inventory is equal to zero then stop, else
2. Select the most prioritized process to be improved
3. Improve the process
4. Is the process economical? If no, go to step 3
5. Reduce the inventory by a small amount
6. Go to step 1.

One Less Inventory Mindmap

By improving the process,
1. Observe the existing method and collect related data on the selected process
2. Investigate and Analyse the data to generate alternatives to improve the process
3. Evaluate the alternatives to determine the new method for the process
4. Install the new method and educate the operator
5. Maintain the new method

Defects may occur at the design stage, a workstation in the production line, or suppliers plant. Quality does not come from inspection nor manufacturing. Quality comes from good design. The quality of a product is determined at the design stage, including product design and process design.

Simplicity is a key to successful manufacturing. Products should be designed to be easy to manufacture, install, and repair. 
• Suppliers deliver the material regularly and purchase orders are not required
• The material is stored at the Point of Use (POU) and picking orders are not required
• Work centers produce items when they are consumed, and shop orders are not required
• Material inventory records are not updated until the finished goods are reported complete.
• Simplifying the system is central to the philosophy of JIT


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