Lean Product Level

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    Heijunka

    Product & Production LevelingModule 9.3

    Mark Graban, LFM Class of 99, Internal Lean Consultant, Honeywell

    Presentation for:

    Summer 2004

    i

    Amy Reyner, Kweku Fleming

    ESD.60 Lean/Six Sigma Systems

    MIT Leaders for Manufacturing Program (LFM)

    These materials were developed as part of MIT's ESD.60 course on "Lean/Six Sigma Systems." In some cases,

    the materials were produced by the lead instructor, Joel Cutcher-Gershenfeld, and in some cases by student teamsworking with LFM alumni/ae. Where the materials were developed by student teams, additional nputs from the

    faculty and from the technical instructor, Chris Musso, are reflected in some of the text or in an appendix

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    Overview

    Learning Objectives Introduce and demonstrate

    the concept ofHeijunka

    Understand the benefits ofHeijunka

    Understand how to applyHeijunka in a typicalmanufacturing process

    Identify how Heijunkainteracts with other Leantools.

    Session Design (20-30 min.) Part I: Introductions (1-2

    min.)

    Part II: Definition of Heijunkaand identification of its role inLean manufacturing. (3-5min.)

    Part III: Study models ofHeijunka in use. Step

    through an example ofHeijunka (7-13 min.)

    Part IV: Benefits and Trade-offs associated with Heijunka& Common Disconnects, (57 min.)

    Part V: Re-Cap andConcluding Comments (2-3min.)

    9/04 --LFM Students] ESD.60 Lean Six Sigma Systems, LFM, MIT

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    Heijunka

    Key Concepts

    thesis by Sean Hilbert

    Heijunka is defined as The distribution of productionvolume and mix evenly over time

    1

    predictable manufacturing process

    Heijunka is generally used in combination with other key Leanprinciples to stabilize value flow

    manufacturing process

    1

    9/04 --LFM Students] ESD.60 Lean Six Sigma Systems, LFM, MIT

    Adapted from MIT LFM

    Heijunka converts uneven Customer Pull into even and

    Heijunka is a core concept that helps bring stability to a

    Lean Production Simplified, Pascal Dennis

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    The Need for Heijunka

    changeovers, but usually result in:

    long lead times, swelli

    mix

    iA more level

    9/04 --LFM Students] ESD.60 Lean Six Sigma Systems, LFM, MIT

    There are a number of reasons for implementing Heijunka:

    Product Levelinglarge batches of the same product may reduce set-up times and

    ng inventories

    greater opportunities for defects.

    excessive idle time and/or overtime.

    An even of products is critical to avoiding these impacts

    Production LevelingRemember the Beer Game? Fluctuations n demand ( Boller or BullwhipEffect) are often highly amplified and delayed throughout the supply chain.

    Responding to fluctuating customer demand can result in increased overtimeor idle time.

    Variable production schedules can be stressful = Unhappy workers.

    production volume eases these complications

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    Supplier produces

    4500 based on

    demand.

    Our workers begin torevolt due to

    demanding and

    unpredictable work.

    Start taking long

    lunches at Chotchskys

    Supplier sees sharp

    decline in demand.

    so produces far less.

    Supplier sees

    increase in demand.

    Excited to sell more

    product, significantly

    increases production

    Supplier notices

    demand. Lowers

    of inventory.

    Supplier goes out of

    business due to inventory

    and workforce management

    costs. Workers for our

    company quit to becomeconstruction workers.

    9/04 --LFM Students] ESD.60 Lean Six Sigma Systems, LFM, MIT

    last years avg.

    Has extra inventory,

    steady decrease in

    production to get rid

    Chasing Demand The Bullwhip Effect

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    What is Production Leveling?

    A Simple Example

    17,316

    16,866

    16,326

    44

    4

    =

    =

    =

    4,217

    4,329

    4,082

    9/04 --LFM Students] ESD.60 Lean Six Sigma Systems, LFM, MIT

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    JIT vs. Production Leveling

    given period of level production.

    for short periods of higher demand*

    Predictable work schedules

    Supply Chain.

    Meet customer demand upon

    varying customer demand backupstreams

    Bullwhip Effect

    9/04 --LFM Students] ESD.60 Lean Six Sigma Systems, LFM, MIT

    Meet customer demand in total over a

    Finished Goods Inventory to make up

    Stability transmitted to Supplier

    Reduces Inventory over the entire

    Overtime savings

    Happy people Upstream

    request (just in time)

    Reduced Finished Goods Inventory

    Unpredictable work schedules

    High variability for Supplier Cascade

    Overtime occasionally

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    6/9/04 -- 8 [ /

    1 2 3 4 5 6 7 8

    Week

    Batching

    Product Leveling

    Customer waiting for

    supplier.

    What is Product Leveling?

    Extended downtime formachine conversions.

    ly.

    flexibly tooled.

    Customers are happy with

    steady and predictable flow

    happy with even work flow

    We make As, Bs, and Cs: AA B C

    LFM Students] ESD.60 Lean Six Sigma Systems, LFM, MIT

    product A is tired of

    waiting. Goes to anotherWorkers go home ear

    Conversion times are

    reduced and machines areof product. Workers are

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    Challenges for Heijunka

    Technical Factors

    Heijunka Leveling are often

    With Heijunka, there is a needfor larger Finished GoodsInventory. This can be seen asantithetical to Lean mission.

    Can not immediately be

    predictable environment,

    customer data. Predicting demand is

    imperfect.process.

    Social Factors

    Heijunka depends on Directinformation about projected

    (future) events.

    Explaining why its importantto do standardized work

    Reduces operator flexibilitywhich can draw resistance

    Requires discipline and muchmore planning

    9/04 --LFM Students] ESD.60 Lean Six Sigma Systems, LFM, MIT

    Tools needed for large-scale

    lacking.

    Obsolescence of finished parts

    implemented requires

    Bad data can ruin

    customer contact and accurate

    before implementing HJ.

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    Concluding Comments

    IfTakt time is described as the heart beatof Lean implementation,then Heijunka is the deep breathing exercise of Lean that brings

    internal and external suppliers.

    Heijunka, You wont be HAPPY without it!2

    2

    9/04 --LFM Students] ESD.60 Lean Six Sigma Systems, LFM, MIT

    stability (calm) to the manufacturing process, spreading it upstream to

    The Toyota Production System: Leaner Manufacturing for a Greener Planet. Published 1998,

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    Appendix: Instructors Comments and Class

    Discussion for 9.3

    Heijunka reveals the limits of the label lean and points to aknowledge-driven process for ensuring stability, flow and pull

    Consider the level at which Heijunka expertise needs to be Most lean operations strike a balance between product leveling

    and production leveling

    really is some balance between the two

    Heijunka requires a lot of data, and can be tough to deal with Heijunka is not necessarily useful for businesses with level and

    dependable demand.

    9/04 --LFM Students] ESD.60 Lean Six Sigma Systems, LFM, MIT

    It is still about ensuring the customer has what they want, when

    they want it at the price they are willing to pay

    established plant-wide, departments, individual work areas?

    Good not to have inventory, good to meet demand, but there

    Worker happiness is an important measure of heijunka success

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    Appendix: Instructors Guide

    2-3 min9

    You wont be happy without Heijunka

    1-2 min01

    unfinished inventories

    2-4 min8

    inventory.

    It is

    i

    ing

    4-7

    3

    1-2Slide

    Key Concepts3-5 min

    Distributing

    time.

    learning objectives

    2-3 minAdditional Talking PointsTopicTime

    9/04 --LFM Students] ESD.60 Lean Six Sigma Systems, LFM, MIT

    Imperfect Data, Large Safety Inventory, Increased

    Planning Required,

    Challenges for Heijunka

    Heijunka is the Deep Breathing Exercise for the

    Manufacturing Process

    Conclusion

    Product Leveling: Long Lead times, large

    Heijunka Product leveling seeks to break down

    batches into smaller interspersed runs

    What is Product Leveling?

    Heijunka levels production, JIT results in level

    Safety stock is a key to Heijunka.

    Heijunka is not implemented in a vacuum.

    effective when ntegrated with other lean tools,

    reduced set-ups, Takt time, Kanban planning etc.

    The Need for Heijunka

    What is Production Leveling?

    JIT vs. Heijunka Level

    7-13 min

    Heijunka converts uneven customer pull into

    predictable value flow. Converts inefficientbatching processes into coordinated multi-tasking

    Heijunka is Production Leveling

    production volume or production mix evenly over

    Introduction, overview and