Session v%2cTwo Revolutions

The First Revolution

Taylorism

You can make a pin

Adam Smith observes that a pin can be made by:

• 0ne person: to perform all the operations himself with all the basic tools

• Through ten persons

Ten persons are deployed • Worker one: Draws out a wire• Worker 2: straightens it• Worker 3: cuts it to size• Worker 4: points it at one end• Worker 5: grinds it at top to receive head• Worker 6: Put the head on( stroke one)• Worker 7: Put the head on( stroke two)• Worker 8: Deburr• Worker 9: Whiten it• Worker 10. Pack( on paper)Ten persons can make close to 40,000 to 48,000 pins per day

Advantages to use ten persons• Productivity per person • Low cost• Dexterity• Time saved • Invention of tools, machines, working

procedure• Uniformity

Taylor-Ford Philosophy(Sorensen Ford’s first president: My 40 years with Ford )

Principles of Taylorism• Simplification• Division of work• Division of labour• Standardization• Sequential process

Later day perfection by

• Alfred Sloan at GM• One division each for Chevrolet, Pontiac,

Buick, Oldsmobile, Cadillac• Pushed GM to the top.

First revolution Resulted in birth of :

• Mass production( vast production)• Automation• Mechanisation• Large batch sizes without change of tools/dies• Assembly line flow• Vertical integration• Centralized controls• Strong Systems and procedures

Advantages

• Low cost• Standardisation of products and services• Birth of brand• Birth of multiple units• Recognition to the company( against craftsmanship)• Specialization• Perfection of skills• Better customer service in delivery, repairs

Problems?

• Planning• Inventories• Warehouses• Internal coordination• Integration with suppliers• Low variety• Low flexibility• Delayed reaction to market

The second Revolution

• Toyota Production System

Toyota Production System( Taiichi Ohno, VP Toyota Motor Company 30 years)

Absolute Elimination of Waste through Leveling of production

7 Wastes of Ohno

• - waste from over production,• -waste of waiting time , • -transportation waste, • -processing waste,• -inventory waste, • -waste of motion, and • -waste from product defects

Waste Elimination MethodsSr. No

Waste type Elimination methods

1 Overproduction Reduce batch size, improve forecast,

2 waiting Smooth workflow, even loads

3 transportation Redesign layouts, FTL, near to markets

4 Process Assess product and process needs

5 Stocks, inventories Reduce set-up times, reduce lead times, reduce bullwhip effect

6. Motion Work study,

7 Product defects, parts defects

Create skills ,capabilities, competencies

Two Pillars of Waste Elimination

• JIT• Autonomation

JIT : the OriginJIT has origins in Japanese word HIT

H: Hit suyo na mono O (What is needed) I : Iru toki iru dake (When it is needed and in what quantity) T: Tsukuru ( Make)• Elements of JIT were being used by Japanese industry since 1930’s. • However, the same got refined only in 1970s when Tai-ichi Ohno V P ( Production) Toyota Motors used JIT to take Toyota cars to the

heights of delivery time and quality

Right parts reach assembly when these are needed with Flow to approach zero inventory

JIT: The Essence of Toyota System

JIt Is Both A Philosophy And A Production Management System.

• As philosophy key issues are- simplicity, - Baka Yoke - Waste elimination - total involvement ( Quality Circles), - continuous improvement(Kaizen) - Visibility ( Andon)

JIT as a System

• As a system, it becomes a collection of techniques and methods for

- small batch production, - quality management,( CWTQ) - Total Productive Maintenance ( TPM), and - Production planning

JIT Production

a. Backward Flow• Subsequent process withdraws from the

preceding process exactly what it needs when it needs it

• The preceding process produces exactly the same quantity as it is withdrawn

• We climb further and further up the production flow, ultimately the flow is reversed, not cut off.

b. Information flow; It begins in the market place. Source of the information is always the customer and not the plant. Kanban is information and is a signaling system to regulate JIT flows

c. Responding individually to individual orders:• Customer preferences are becoming more

diverse, more personalized and more rigid. Customers differ and base their products on personality.

• Supplying the same product in same way will only generate useless inventory

c. Pull system: Pull system throughout the plant. Producing what is needed and no more

• When all queues are driven to zero, inventory is minimized, lead times are shortened

• Under JIT, ideal lot size is One• Typically one –tenth of a day’s production is a lot

size• Exposes hidden problems of production

d. Zero inventory is non-sense• Elimination of inventories means shortages of

goods and poor customer service• The goal at Toyota is to level the flow. Toyota

strives to have needed quantities at needed time

Pre-requisites of JIT1. A strong, reliable, dedicated, quality

and delivery conscious vendor support2. A highly committed, motivated, flexible,

multi-skilled efficient workforce3. A developed logistics support4. Decentralized system of authority,

transparency and visibility of systems, procedures, performance-orientation through established performance evaluation

1. An advanced communication system

2. Readiness of the organization at all levels to go for change

3. Stable demand4. Active use of other instruments:

Kanban , Andon, Kaizen, Poka Yoke, SMED, TQM(CWQC),TPM.

Limitations of JIT

• Cannot respond rapidly to major changes in product, process, technology

• Not suitable for customized products or engineered products calling for new designs

• Suitable when materials and components are available in quality and quantity and on time delivery

• Small vendors for better coordination and controls• Responsible, flexible, committed

work force• Established work culture• Large set up to support small lot

sizes

Autonomation

• Bring the human touch to the machine so as to prevent the problem

• Automatic stoppages• Boka yoke- fool proofing system

Autonomation

Resulted in concepts of:• Have a worker when you need a worker.• Multi-skills operators• One operator multi-machines• Andon• Safe operations