Improving Production with Lean Thinking

Improving Production

with Lean Thinking

Improving Production

with Lean Thinking

Javier Santos

Richard Wysk

Jose´ Manuel Torres

John Wiley & Sons, Inc.

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Library of Congress Cataloging-in-Publication Data:

Santos, Javier.

Improving production with lean thinking/ Javier Santos, Richard

Wysk, Jose´ Manuel Torres.

p. cm.

Includes bibliographical references and index.

ISBN-13: 978-0471-75486-2 (cloth)

ISBN-10: 0-471-75486-2 (cloth)

1. Production engineering. 2. Manufacturing processes. I. Wysk,

Richard A., 1948– . II. Torres, Jose´ Manuel. III. Title.

TS176.S322 2006

658.5—dc22

2005019103

Printed in the United States of America

10 9 8 7 6 5 4 3 2 1

v

Contents

Preface xi

1. Continuous Improvement Tools 1

Continuous Improvement / 1

Improvement Philosophies and Methodologies / 3

Just-in-Time (JIT) / 4

Thinking Revolution / 6

Lean Manufacturing / 8

20 Keys to Workplace Improvement / 10

Measuring and Prioritizing the Improvements / 11

Book Structure / 15

Recommended Readings / 17

2. Material Flow and Facilities Layout 18

Layout Improvements / 18

Signs and Reasons for a Need to Change the Layout / 19

Theoretical Basis / 20

One-Piece Flow / 20

Main Types of Industrial Companies / 22

Layout Types / 25

Characteristic of the Traditional Layouts / 29

vi CONTENTS

Layout Design Methodology / 29

Step 1: Formulate the Problem / 30

Step 2: Analysis of the Problem / 30

Step 3: Search for Alternatives / 30

Step 4: Choose the Right Solution / 32

Step 5: Specification of the Solution / 32

Step 6: Design Cycle / 33

Tools for Layout Study / 33

Muther’s Eight Factors / 33

Summary / 38

Recommended Readings / 38

3. Material Flow and the Design of Cellular Layouts 39

The Assembly Line / 39

Theoretical Basis / 40

Mass Production / 40

Flow or Assembly Lines / 41

Cell Layout Design Justification / 43

Basic Cell Design Nomenclature / 44

Cell Design Methodology / 47

Cell Design Tools / 47

Line-Balancing / 47

Group Technology / 53

Time Study / 56

Leveling Production / 64

Multifunctional Workers / 68

Workforce Optimization / 70

Summary / 72

Recommended Readings / 72

4. Equipment Efficiency: Quality and Poka-Yoke 73

Poka-Yokes / 73

Theoretical Basis / 74

Inspection and Statistical Quality Control (SQC) / 74

From SQC to Zero Defects / 76

Poka-Yoke Design Methodology / 79

Poka-Yoke Examples / 79

Summary / 81

Recommended Readings / 82

CONTENTS vii

5. Equipment Efficiency: Performance and Motion Study 83

Motion Study / 83

Theoretical Basis / 86

Motion Economy Principles / 86

Motion Study Tools / 87

Value Analysis / 87

5W2H and 5-Why Methods / 88

Worker-Machine Diagram / 89

Machine-Worker Ratio / 91

Machine-Machine Diagram / 93

Summary / 93

Recommended Readings / 95

6. Equipment Efficiency: Availability, Performance, and

Maintenance 96

Equipment Maintenance / 97

Theoretical Basis / 98

Types of Maintenance / 98

Maintenance Program Implementation / 102

Getting Started / 104

Corrective Maintenance Implementation / 104

Preventive Maintenance Implementation / 106

Autonomous Maintenance / 106

TPM: Total Productive Maintenance / 108

RCM: Reliability-Centered Maintenance / 110

Maintenance Tools / 110

FMEA for Equipment / 110

Reliability / 113

P-M Analysis / 116

Maintenance Management / 117

Summary / 119

Recommended Readings / 119

7. Equipment Efficiency: Availability, Quality, and SMED 120

Setup Process / 120

Theoretical Basis / 122

Basic Steps in a Setup Process / 122

Traditional Strategies to Improve the Setup Process / 123

viii CONTENTS

SMED Methodology / 125

Preliminary Stage / 126

Stage 1: Separating Internal and External Setup / 128

Stage 2: Converting Internal Setup to External Setup / 129

Stage 3: Streamlining All Aspects of the Setup Process / 130

SMED Tools / 130

First-Stage Tools / 130

Second-Stage Tools / 133

Third-Stage Tools / 136

Zero Changeover / 142

SMED Effects and Benefits / 143

Easier Setup Process / 143

On-Hand Stock Production / 143

Workplace Task Simplification / 143

Productivity and Flexibility / 144

Economic Benefits / 144

Summary / 145

Recommended Readings / 146

8. Environmental Improvements and the 5S Methodology 147

A Clean and Organized Workspace / 147

5S Implementation Methodology / 149

Getting Started / 149

Common Steps in the Five Pillars / 150

First Pillar: Sort / 151

Second Pillar: Set in Order / 152

Third Pillar: Shine / 152

Fourth Pillar: Standardize / 153

Fifth Pillar: Sustain / 155

Implementation of the 5S in Offices / 156

Applying 5S to Computers / 156

5S Tools / 157

Red-Tagging Strategy / 157

Sign Strategy / 158

Painting Strategy / 160

Preventive Order / 161

Preventive Shine / 162

Promotional Tools / 162

CONTENTS ix

5S Benefits and Effects / 164

Summary / 165

Recommended Readings / 165

9. Other Improvement Keys 166

Human Resources–Related Keys / 166

Rationalizing the System / 166

Improvement Team Activities / 167

Empowering Workers to Make Improvements / 169

Efficient Materials Use–Related Keys / 170

Developing Your Suppliers / 170

Conserving Energy and Materials / 170

Reducing Inventory / 171

Visual Control–Related Keys / 172

Andon / 173

Kanban / 173

Technology–Related Keys / 177

Jidoka / 177

Using Information Systems / 179

Leading Technology and Site Technology / 180

Summary / 181

Recommended Readings / 182

Appendix A: Problems 183

Introduction / 183

Continuous Improvement Tools / 184

Facilities Layout / 189

Cellular Layout / 192

Maintenance / 207

Motion Study / 209

Machine-Machine Diagrams / 223

xi

Preface

The paradigm of manufacturing is undergoing a major evolution

throughout the world. The use of computers and the Internet has

changed the way that we engineer and manufacture products. Accord￾ing to recent trends in manufacturing, products are subjected to a

shorter product life, frequent design changes, small lot sizes, and small

in-process inventory restrictions.

Computer-aided design (CAD) and computer-aided manufacturing

(CAM) have become the standard for designing and manufacturing

sophisticated products. Today we use CAD systems routinely to design

products, and we produce them on flexible or programmable manufac￾turing systems (CAM). Managing manufacturing systems effectively

has become as critical as using the proper engineering technology to

process engineered components. Reducing waste for all aspects of en￾gineering and production has become critical for businesses’ surviva￾bility.

Improving Production with Lean Thinking is a departure from tra￾ditional production books. This book is intended for use in a course

that traditionally has been titled, ‘‘Production Control,’’ ‘‘Operations

Management,’’ ‘‘Manufacturing Systems,’’ or ‘‘Production Manage￾ment,’’ and it is intended to provide a comprehensive view of issues

related to this area, with a specific focus on lean engineering principles.

This book is full of practical production examples of how lean thinking

can be applied effectively to production systems.

xii PREFACE

Ever since Henry Ford pioneered manufacturing transfer flow sys￾tems and Fredrick Taylor wrote of scientific management, the world

began to change by bringing high-tech consumer products into the lives

of the common person. Our ability to manufacture quality products

economically has inflated the standard of living throughout the world.

Back in the beginning of the industrial revolution, Henry Ford doubled

his worker’s wages while cutting the cost of his automobile in half.

This changed society forever by increasing wealth and making products

more affordable. Today we have seen the same reductions in the cost

of electronics hardware come about from applying good engineering

and management science practice. In our global society, it is as im￾portant as ever that we use the most efficient production methods pos￾sible.

For almost a century, the United States was the world leader in

automobile production. Today, however, the Toyota production system

is viewed as the model for production efficiency. Interestingly, the de￾veloper of this philosophy, Taiichi Ohno, acknowledges that the stim￾ulus for his system was his close reading of Ford’s ideas. Because of

this rediscovery, a new vocabulary based primarily on Japanese words

to describe some of Ford’s principles has found its way into all the

world’s manufacturing systems. Words such as kanban, kaizen, and

jidoka are used routinely to describe approaches to reduce waste and

make production more efficient. Mr. Ohno, Mr. Shingo, and other Jap￾anese engineers developed a systematic approach to implement some

of the good production practices that go back to the beginning of the

1900s. However, it has become far more important to systematize lean

thinking because the complexity of products has increased and product

life continues to get smaller and smaller.

Engineered products touch our lives everyday. Our ability to produce

quality products economically affects our very standard of living. A

constant focus of this book is on a systematic approach to improving

production activities using lean manufacturing techniques. We feel

strongly that successful managers and engineers of the future will need

to understand and apply these techniques in their daily work activities.

It is this area that we highlight in this book.

Unlike other production control books, this book attempts to provide

a strong practical focus, along with the science and analytical back￾ground for manufacturing, improving, control, and design. This book

is an excellent professional reference and also is an excellent text for

instruction in both engineering and business schools.

This book comes with a companion Instructor’s Manual that in￾cludes presentations as well as tests and examples.

PREFACE xiii

Creating this book has proved that production challenges today are

similar worldwide. Javier Santos and Jose´ Manuel Torres work at the

University of Navarra (Spain), and Richard Wysk is professor at The

Pennsylvania State University (USA). Therefore, this book includes

European and American approaches to lean manufacturing issues.

This book marks the end of countless hours spent by the authors

trying to refine a traditional topic into one that ‘‘hooks’’ to other en￾gineering science activities. Several of our colleagues and outside re￾viewers read the manuscript and provided invaluable suggestions and

contributions. Among them are Dr. Sanjay Joshi at The Pennsylvania

State University, Dr. Matthew Frank at Iowa State University, and

Bertan Altuntas. Special thanks are also due to Pablo Callejo for his

artwork throughout this book. Finally, we would like to thank our fam￾ilies for tolerating us during the difficult parts of our writing.

Javier Santos

Richard A. Wysk

Jose´ Manuel Torres