Faculty of Business
OPSM607
Lean Concepts
Nov 2021
Sasha & Andy Hot Dogs Case Study
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Sasha & Andy Hot Dogs Solution
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2016 – 19 © FLAME University
2016 – 19 © FLAME University
STEPS
1. Identify production family – ROC, ROC2, PFA
2. Define VALUE – What the customer is willing to pay
3. Develop Value Stream (VSM) – Current State
4. Let the value FLOW
5. Let the customer PULL
6. Achieve PERFECTION – Future State
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Case Studies
• Andy & Sasha – Customer Dissatisfaction (Defects?)
• ACME – Defects, Overproduction, Waiting, Inventory
• TWI – Talent, Motion
• Hospital - Overprocessing, Transportation
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Current State
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ACME Case study – Current State
C/T is the cycle time between each
component as it comes out of a
process
C/o is the change over time
Uptime gives an indicator of the
reliability of machine. Useful to
compute capacity
EPE stands for “Every Part
Every ….”
If there are more than ONE
person working, you need to
mention that as well
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Identifying Production Concerns
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The biggest problem in manufacturing
today
• Overproduction – pushing the product forward when it is NOT NEEDED
• Defects remain hidden in the queue until the next process finally tries to use it.
• M U D A ! (W A S T E!)
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Solution !
• Make only what the next process needs.
• Link all processes – from the customer to the supplier – in a smooth flow
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Some Lean Measurements
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Guideline #1
• TAKT time is a good indictor of what the next process requires.
• If TAKT time is X secs, the customer is demanding one item every X secs.
• This is the rate at which you need to produce ONE item.
• So, produce to your TAKT time
• Synchronize the pace of production with pace of customer demand
• ISSUES:
• If the demand goes up, some changes would be required
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TAKT Time Calculation
Available time in secs
• Number of seconds in each shift : 28,800 secs PER SHIFT
• Number of breaks in each shift (2 x 10 min breaks per shift) : 1200 secs PER SHIFT
• Total available time per shift : 27,600 secs PER SHIFT
• Total available time per month : 11,04,000 PER MONTH
Customer demand per month
• 18,400 pieces
TAKT Time = 1104000/18400 = 60 secs
Why do we use SECs to measure? Why not Days, Months etc.?
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Exercise: Calculate Takt Time
A company has 8 hour work days, and works 5 days a week.
It has no lunch breaks, but has the following unproductive times:
a. A 10 mins set up process at the beginning of the day
b. Two 10 min breaks
c. A 15 mins end of day closure, clean-up
If there is a levelized demand for 50 units per day, what is the TAKT time?
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Guideline #2
• Develop CONTINUOUS FLOW
• No stagnation between stations
• ISSUES
• May not always be possible. Some batching may be required
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Guideline #3
• Use SUPERMARKET when batching is unavoidable
• Supermarkets must be used between the loops
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Supermarkets & KANBANs
• Shelves are filled up by the supplier on one side and picked up by users on the other side.
• FIFO sequence
• Supplier will see “holes” appear (signaling that the client has consumed the product), where he will
place new materials
• Client will always have the item he needs readily available.
https://www.youtube.com/watch?v=bK78YS9j51k 1.5 mins
https://www.youtube.com/watch?v=Mdyyyu41dZ4 5 mins
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Guideline #3 continued…
Use FIFO or SEQUENCED PULL BALL
Pull ball is used as a sort of Kanban for a supplying system that can
produce the parts needed in a short period of time. This fast “just in
time” production does not need a supermarket. The symbol originates
in colored golf balls used as Kanban signals.
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FIFO Lane example
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Guideline #4
• Send customer schedule to ONE process
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ACME Case study – Current State
C/T is the cycle time between each
component as it comes out of a
process
C/o is the change over time
Uptime gives an indicator of the
reliability of machine. Useful to
compute capacity
EPE stands for “Every Part
Every ….”
If there are more than ONE
person working, you need to
mention that as well
2016 – 19 © FLAME University
Guideline #5
• Distribute production mix of products
• Levelling
• Instead of producing Product A in the morning and B in the afternoon, produce small quantities of A
and B in both periods
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Load Levelling
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Guideline #6
• Create an initial pull by releasing small, increments of work at the pacemaker process
• Use PITCH
• If TAKT time is 30s, and pack size is 40 items, then
• PITCH = 30 x 40 = 1200s = 20mins
• In other words, EVERY 20 mins give the pacemaker an instruction to produce ONE PACK
• Take away one finished pack.
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Paced Withdrawal
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Guideline #7
Every part Every day
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Case Study - Questions
What is the TAKT time?
Where can we use continuous flow?
Where will you need to use Pull systems?
Where is the production scheduling point-the pacemaker process?
How will you level the production mix?
What will be the production release quantity?
What process improvements are needed?
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Q1: TAKT Time
Available time in secs
• 2 shifts of 8 hours each = 16 hours
• 2 breaks of 15 mins per shift = 1 hours
• Total available time per day = 15 hours
• Total available time per month = 20 x 15 x 60 x 60 x = 1,080,000 secs
Customer demand per month
• 24000 pieces
TAKT Time = 1080000/24000 = 45 secs
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Your Turn
ACME Case Study – Develop a FUTURE STATE diagram
ACME Case Study - Questions
• What is the TAKT time?
• Where can we use continuous flow?
• Where will you need to use supermarket-Pull systems?
• Where is the production scheduling point-the pacemaker process?
• How will you level the production mix?
• What will be the production release quantity?
• What process improvements are needed?
Q1: What is the TAKT Time
• Work time 27,600 sec / shift
• Customer demand 460 unit per shift
• So Takt time = 60 sec
• What does this mean?
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Q2: Where can we use Continuous Flow?
70
60
50
Cycle Time (secs)
40
30
20
10
0
Stamping Weld 1 Weld 2 Assembly 1 Assembly 2
Process
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Compute number of workers required
Theoretical
Total Cycle time / Takt Time
187 s / 60 = 3.XX
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Process Improvement Required
70 60
60 50
50
Cycle Time (secs)
Cycle Time (secs)
40
40
30
30
20
20
10 10
0 0
Weld 1 Weld 2 Assembly 1 Assembly 2 Weld 1 Weld 2 Assembly 1
Process Process
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Create Work Cells & Loops
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New Concepts
1. Multi-factory views
2. Electronic Kanbans
3. Web-based Kanbans
4. One part at least once a day (Learning)
5. Runners, Repeaters & Strangers
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Runners, Repeaters & Strangers
• List jobs by production volume (largest to smallest )
• Identify jobs as runners, repeaters and strangers
Type of part Number of Production MTBO
jobs% Volume
Runner 20 80 <1 week
Repeater 30 15 <2 months
Stranger 50 5 > 6 months
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RRS Continued
• In many organizations we have a large number of jobs that are produced in a single location.
• Having all parts, tools, equipment etc. available in the work area will make it cluttered.
• RRS Analysis allows you to design for the top 80% of your volume, normally only 20% of your actual
jobs (Your “Runners”)
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Set-in-order for RRS
• Which items are required for the runner jobs?
• Material, tools, jigs, gauges, paperwork, etc
• Where should the items be stored, prior to use?
• For runners, this should be as close to hand as possible
• How should the storage locations be visually identified?
• How would you know from ten yards whether conditions are normal? could you be sure you
would not need to search for the required items?
• What access is required to the items and the workplace?
• Is there sufficient space to manoeuvre trolleys, etc without needing to remove obstacles? is this
space visually marked such as with motorway lanes and car parks?
• What access is required at the workplace?
• Can preparations and operations be carried out without needing to remove obstacles?
2016 – 19 © FLAME University
2016 – 19 © FLAME University
