Published on November 28, 2007
CIMT 100 : CIMT 100 Operational Systems for Manufacturing… JIT and Lean Production Informal review…: Informal review… Work on this during class today. Thanks for your inputs… Looking Back...: Looking Back... During past sessions we: Identified key functional areas Considered issues related to design of products and processes Touched on critical quality issues Now… We need to consider the operation of the business and manufacturing. As a Manufacturing Leader...: As a Manufacturing Leader... You will play a critical role in the management and control of the companies critical information. The Problem of Manufacturing…: The Problem of Manufacturing… Getting the right material and physical resources together at the right place and at the right time to meet the customer’s requirements. Desired features, On time delivery, High Quality, at the best price… Breaking down the problem…: Breaking down the problem… Getting the material needed… Having enough inventory of material to support production Not having too much inventory and extra costs… Slide7: ROP EOQ time Inventory lead time demand (constant rate) Economic Order Quantity and Reorder Point Planning Model “saw tooth pattern” A very limited model… The MRP Solution…: The MRP Solution… Production Schedule Material Requirements Planning - MRP Time Phased Order Point Exception messages Bills of Material General Item Data Inventory Records Input to Capacity Planning Slide9: Business Plan Production Plan Master Production Schedule Material Requirements Planning Capacity Requirements Planning ? Shop Floor Control Bills of Material Work Center & Routing Files Inventory Records Purchase Order Files Purchasing System Vendor Quotes P.O. Processing Receiving Vendor Analysis General Item Data NO YES ? Rough -cut Capacity Analysis MRP 2 !!! Building the central database…: Building the central database… The “static data”… The “dynamic data” of the system and its operation. Information Categories...: Information Categories... Key data elements that drive the operation... Part descriptive information manufacturing process info. Material planning info. Inventory info. Cost info. Product Structures...: Product Structures... Bringing the list of material to life! Documenting the “GOZINTO” The “BOM”... Slide13: Part Pallet (fraction) Plastic Bag Slug Packing (fraction) Box (fraction) Mix Resin Glass Stuff Sample Bill of Material… “BOM” Slide14: Manufacturing Software Development Path. Source: SIBC Corp. Technology Course Series 1999 APS ERP/ERO SCM SFC MRP II MRP Inventory control Forecasting DRP MES Order Entry SFA CRM First Generation Second Generation Third Generation Presenting….: Presenting…. The next step in the evolution… Enterprise Resource Planning (ERP) Slide16: Business Plan Rough-Cut Capacity Plan MPS Inventory Bills of Material Detailed Material & Capacity Planning Plant & Supplier Communication Schedule Execution Sales & Operations Plan Routings Work Centers Engineering CAD/ Configurators Global Strategy Finance & Accounting Treasury & Activity Costing MRP Core Inside ERP Demand Management SFA & CRM What can you expect in the real world?: What can you expect in the real world? It may not be as easy as you think! Continual changes Slide18: Multi-Platform System Environments Source: SIBC Corp. Technology Course Series 1999 Order Entry Quote Invoicing Shipping Product Configuration MPS MRP Inventory BOM SFC Labor Payroll GL A/R A/P CAD Vendor Scheduling Total variability in hardware, software, vendor sources, revision levels, limited interfaces Bar Code Service Products Pricing MRP II System Modules “Legacy Code” Custom Programs Other System Packages Slide19: Converging MP&C Systems Slide20: Factory of the Future Database Model Source: Adapted from Fundamentals of Computer Integrated Manufacturing, Prentice Hall, 1991. Intelligent Warehouse System(s) Computer Aided Final Assembly & Test Computer Aided Parts Manufacturing & Test Computer Aided Engineering Operations Management Systems Data Management & Communications Plant 4 Plant 6 Vendor Database Slide21: Electronic Commerce Issues Source: SIBC Corp. Technology Course Series 1999 Distributors and retail stores may no longer add value Internet purchases and EC links between end customers and OEMs may eliminate the need for a mid-level buffer Combining “Quick Response Manufacturing” with Electronic Commerce may eliminate a major linkage in the supply chain, and reduce costs. Manufacturing and CIM Systems…: Manufacturing and CIM Systems… Where the action is! Background reading…: Background reading… JUST IN TIME:: JUST IN TIME: Only what is needed, nothing more... To have only the right materials, parts and products in the right place at the right time. THE SEVEN WASTES from Shigeo Shingo in Robert W. Halls book Attaining Manufacturing Excellence, 1987: THE SEVEN WASTES from Shigeo Shingo in Robert W. Halls book Attaining Manufacturing Excellence, 1987 Waste of over production Waste of waiting Waste of transportation Waste of processing itself Waste of stocks Waste of motion Waste of making defective products Claims for JIT:: Claims for JIT: reduced inventory reduced WIP shorter lead times not too early, not to late... JIT is the result businesses want, not a starting point What happens with JIT…: What happens with JIT… Eliminate non-value added activities less time spent and less money spent... Involve your suppliers and customers eliminate duplications, non value addded activ. Shorter Set-up time and less WIP Faster through-put, less time, higher quality JIT Action Areas…: JIT Action Areas… Develop people - increase skills,productivity, morale Eliminate waste in all areas Optimize materials handling and production flow Control Tooling Increase quality Improve continuously! Develop the pipeline flow... then work to shorten it!: Develop the pipeline flow... then work to shorten it! Eliminate multiple locations Contract the plant layout Eliminate the "pipeline failures" Reliability Quality People Reduce "changeover times” and “lot sizes" significantly Use "mind technology" before applying high technology! Arvin Cell… with 6 operators: Arvin Cell… with 6 operators Bend Pipe and trim inlet end Heat and form inlet end Size and inspect/test flange and product assembly Weld flange brackets and assembly Dimension check and leak test Traditional Production Line… 6 people: Traditional Production Line… 6 people First pass work cell design… 3 people: First pass work cell design… 3 people Second try – work cell design – 1 person: Second try – work cell design – 1 person Floor SpaceReductionnearly 50%: Floor Space Reduction nearly 50% Documented savings…: Documented savings… Customer rejects reduced 95% Scrap reduced 62% Work in process reduced 91% Changeover time reduced by 78% Labor cost as % of sales reduced 41% The Name Game…: The Name Game… JIT Short Cycle Mfg. Toyota Production System Synchronous Mfg. Lean Manufacturing Lean Production Common Sense Mfg. The Vision of “Lean” in the USA: The Vision of “Lean” in the USA Perhaps best stated by James Womack, and Daniel Jones in two popular books… First… The Machine That Changed the World (1990) Unlocking the power of “Lean” requires more than just “tools”: : Unlocking the power of “Lean” requires more than just “tools”: James Womack, and Daniel Jones second book… Lean Thinking (1996) “Lean Thinking” presents…: “Lean Thinking” presents… An “Americanized” view of lean production Precisely specifying value by product Identifying the value stream for each product Making the value-creating steps flow without interruptions Letting the customer “pull’ value from the producer Pursuing perfection (continuously improving) Lean Production Challenges…: Lean Production Challenges… Developing beyond the “tools”… Inculcating the concepts and values of lean production into the fabric of an organization… Working to truly improve continuously Expanding lean efforts out to your customers and to all your suppliers Lean Production can lead to lots of open questions…: Lean Production can lead to lots of open questions… Welcome to CIM Technology !: Welcome to CIM Technology ! CIM brings all of the issues we have discussed together. You will have a special perspective on manufacturing and computers that employers need! Thanks for your attention…: Thanks for your attention… The final assignment is due by Noon on the Friday after October Break… October 12th Resume and final paper.