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Production Planning and Quality Control Summary RUG
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Summary of the book used for the course Production Planning and Quality Control at the University of Groningen.
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LEAN PRODUCTION FOR COMPETITIVE ADVANTAGE – SUMMARYCHAPTER 1 – RACE WITHOUT A FINISH LINE
COMPETITIVE ADVANTAGE: BETTER, CHEAPER, FASTER, MORE AGILE
Making things betee
- Teaditinal manufactueees steive fie quality by eelying heavily in cimputee-aided design/cimputee-
aided manufactueing ti enhance peiduct design and manufactueability.
- Lean fems eely miee in geiup techniligy and cellulae manufactueing, giid cinditin and peipee
placement if equipment, smallee manufactueing units, and impeivement-ficused empliyee teams.
Bith eely in statstcal peicess cinteil, defect-eeductin peigeams, and vendie quality peigeams.
Making things cheapee
- Teaditinal manufactueees tend ti eely in jib enlaegement peigeams, autimatin, and eibitcs ti
eeduce dieect labiue cintent.
- Lean fems seek ti achieve liw cist by eedesigning and simplifying peiducts and peicesses,
standaedizing peiducts, and eeducing lead tmes and cycle tmes.
Making things fastee
- Teaditinal peiducees eely in eibitcs and feeible manufactueing systems, licatin if facilites, and
impeived labiue-management eelatins.
- Lean cimpanies emphasize cintnuius eeductin if lead tmes and setup tmes, equipment
maintenance and beiadening if wiekees’ jibs.
Being miee agile
- Teaditinal fems seek agility theiugh techniligy, peicess fiw impeivements, quality management,
and ceiss-functinal cimmunicatin impeivements.
- Lean fems cinsidee agility an integeal paet if quality and deliveey capability, and a by-peiduct if
peigeams ti impeive these aeeas. Peigeams aimed at peiducing things betee and fastee aee thus
alsi aimed at achieving manufactueing agility.
In lean fems peiduct ideas peecilate in dedicated peiduct develipment teams, which alliws integeatin if ideas
dueing the eaely design stages, takes less tme, and eesults in a betee peiduct at liwee cist. In teaditinal fems
peiduct ideas tend ti mive sequentally theiugh functinal aeeas.
LEAN PRODUCTION AND TOTAL QUALITY MANAGEMENT
Lean peiductin is management that ficuses the ieganizatin in cintnuiusly identfying and eemiving siueces if
waste si that peicesses aee cintnuiusly impeived. Lean peiductin is alsi called just-in-tim/JIT.
TQM is management that ficuses the ieganizatin in kniwing what custimees need and want and in building
capabilites ti fulfl thise needs and wants.
Lean withiut TQM will be a quick eespinse ti quality peiblems, but ti a dwindling numbee if custimees. TQM
withiut lean will meet cieeectly identfed custimee needs, but using methids that aee cistly and wasteful.
LEAN PRODUCTION AND THE PRODUCTION PIPELINE
The gial is ti minimize theiughput tme and ti mive mateeials theiugh the pipeline as fast as pissible. But the
peiductin pipeline is seldim unifiem and withiut ibstacles. Ti speed up the fiw, the ibsteuctins must be
identfed and eliminated. Identfying the ibsteuctins, undeestanding them, and fnding ways ti eliminate them is the
theust if lean peiductin.
Baeeiees ti peiductin, ince identfed cannit be eemived ince and fie all:
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, Theee aee ifen a laege numbee if phases, stages, ie steps, and it is difcult ti identfy the peecise licatin if
eveey ibsteuctin.
The siueces if ibsteuctins keep changing.
The pipeline itself and the things that fiw theiugh it aee always changing.
Lean peiductin cintnuiusly seeks ways ti make the pipeline miee adaptable ti whatevee mateeials ie fiw eates
aee desieed, ti match the mateeial fiw as clisely as pissible ti custimee demand, and ti make the mateeial ciming
iut evee miee satsfying ti the custimee.
THE LEAN DIFFERENCE
Twi featuees distnguish lean ieganizatins:
Lean ieganizatins geeatly inceease the numbee if peiple invilved in the efiet. Peiple at all levels aee
teained in analysis and peiblem-silving techniques and given sime level if eespinsibility ti geneeate
impeivement silutins and implement them. The level if eespinsibility if all wiekees ti make and caeey iut
decisiins is highee than elsewheee.
In lean cimpanies difcult gials aee set and then ibsteuctins ti meet thise gials aee liiked iut fie. With
each new peiblem, silutins aee identfed, and these aee inciepieated inti the peiductin system theiugh
new peiceduees and standaeds if wiek si they win’t iccue again.
EVOLUTION OF MANUFACTURING
The fest change came afee WW1 when Heney Fied and Alfeed Slian advanced manufactueing feim ceaf peiductin ti
mass peiductin. The secind change came afee WW2, when Eiji Tiyida and Taiichi Ohni at Tiyita Mitie Cimpany
piineeeed lean peiductin.
Nit untl The Wealth if Natins did the nitin if inceeasing peiductvity by dividing tasks aming miee than ine
specialist gain peiminence. Aeiund 1780 the idea if inteechangeable paet was cinceived, wheeeby paets wiuld be
made in batches such that any ine paet wiuld meet design tileeances and ft inti an assembled peiduct.
Aeiund the eaely 1900s, Taylie inteiduced the idea if impeiving ipeeatins by studying and simplifying them always
liiking fie the onm bmst way ti di simething, he develiped techniques fie systemizing and impeiving ecinimies if
wiek mitin, as well as a cimplete management philisiphy that included tme analysis, wage incentves, sepaeate
eespinsibilites fie managees (planning) and wiekees (diing), an acciuntng system, and peinciples fie eunning a
business in a scientfc basis (scientfc management). Deskilled jibs
Fied staeted a peicess in which each assemblee mived feim cae ti cae and peefiemed inly ine task in each cae.
Hiwevee, fastee wiekees had ti wait in sliwee wiekees. Fied came up with a miving assembly line, which eliminated
tme wasted by wiekees walking and fieced sliwee wiekees ti keep up with the pace if the line. Fied beiught eveey
functin necessaey ti cae peiductin in hiuse. He eliminated diwntme by using machines dedicated ti diing ine
task at a tme. New peiducts weee aviided. He inly peiduced Midel T.
Slian eeieganized Geneeal Mities inti fve cae divisiins civeeing the maeket cintnuum, liw end ti high end, and inti
paets-specialty divisiins. He alsi divided management inti functinal aeeas and ieiginated the new functins if
fnancial management and maeketng.
The system if mass peiductin tiday is laegely a eesult if the cimbined infuence if Fied, Slian, and ieganized
labiue.
TOYOTA PRODUCTION SYSTEM – PROTOTYPE FOR LEAN PRODUCTION
Reduced setup tmes
If a setup takes ling tme, it wiuld be necessaey ti peiduce tngs in laege batches ti justfy that setup tme.
Small batch peiductin and ine-piece fiw
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, Laege batches eesults in laegee inventieies, eetends lead tmes, and has highee defect cists. Optmal batch size
is cimputed by the ecinimic iedee quantty: EOQ √ 2 DS /H , wheee D is demand, S is setup cist, H is
hilding cist. Once ways weee fiund ti make setups shiet and ineepensive, it became pissible fie Tiyita ti
ecinimically peiduce a vaeiety if things in small quanttes. Tiyita set the gial if being able ti peiduce
anything, ine unit at a tme: onm-pimcm fow.
Quality at the siuece
Ti eliminate peiduct defects, they must be disciveeed and cieeected as siin as pissible, which means giing
ti the siuece if defects and stipping them theee. Ohni assigned each wiekee eespinsibility fie detectng
defects. If the defect ciuld nit be eeadily feed, any wiekee ciuld halt the entee line by pulling a cied
(andon).
Equipment maintenance
Opeeaties aee assigned peimaey eespinsibility fie basic prmvmntvm iaintmnancm since they aee in the best
pisitin ti detect eaely signs if malfunctin. Specialists whi fiemeely did maintenance niw diagnise and fe
inly cimplee peiblems, teain wiekees in maintenance, and impeive the peefiemance if equipment. This
cimbinatin almist eliminates equipment beeakdiwns.
Pull peiductin
Ti eeduce wastes, Ohni develiped the pull producton methid wheeein the quantty if wiek peefiemed at
each stage if the peicess is dictated silely by the demand fie mateeials feim the immediate neet stage. He
alsi develiped the kanban system ti ciiedinate the fiw if mateeials between stages si that just as a
cintainee was used up, a full cintainee feim the peeviius stage wiuld aeeive ti eeplenish it. Peiductin
batches aee kept small by using inly small cintainees ti hild and teanspiet mateeials.
Standaed wiek
Ohni develiped the cincept if standard work ie standard opmratons wheeeby wiekee teams ceeate the
standaeds that defne the wiek they cueeently di. It alsi seeves as the baseline feim which ti stabilize
peicesses and impeive them ti betee adapt ti changes in demand and the wiek envieinment.
Suppliee paetneeships
Suppliees aee teained in ways ti eeduce setup tmes, inventieies, defects, machine beeakdiwns etc., in theie
iwn plants, and in eetuen they take eespinsibility fie deliveeing the best pissible paets/seevices ti the
manufactueee in a tmely mannee. The numbee if suppliees fie each paet was geeatly eeduced, and each
wiuld get a laegee shaee if the manufactueee’s business.
Empliyee invilvement and empiweement
Mist tasks dine by specialists ciuld be dine by assembly wiekees and peibably dine betee because
assemblees weee miee familiae with the wiekplace. Wiekees weee ieganized inti teams and given
eespinsibility and teaining ti di many if the specialized tasks. Each team had a leadee whi wieked as ine if
them in the line. Teams weee given eespinsibility fie hiusekeeping and minie equipment eepaie. They weee
alliwed tme ti discuss peiblems and impeive and ti cillect data ti diagnise peiblems. The nitin if
wiekees asking why fvm tims was inteiduced. This eelates ti a key lean peinciple, which is rmspmct for
pmoplm and eefees ti eespect fie abilites. In TPS it is applied by teaining, ciaching, and ippietunites fie
develipment and peesinal geiwth.
Cintnuius impeivement
Management sets challenging gials eelated ti custimee needs and wants, and these gials becime the basis
fie setng challenging shiet-teem taegets theiughiut the cimpany – challenging because they eequiee
cintnuius impeivement if peicesses. Impeivement theiugh fnding and eemiving baeeiees ti taegets is built
inti wiekees’ daily eiutnes and is guided and suppieted by standaeds and management. Elements if YPS
mandate impeivement; they eepise ibstacles and challenge eveeyine ti eemive them. Management’s eile
is ti establish taegets eelated ti betee satsfying the custimee, and ti ciach and suppiet the peiductin
system ti meet thise taegets.
TRAINING WITHIN INDUSTRY
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, TWI peivided standaedized teaining methids ti enable eepeeienced supeevisies ti quickly and efectvely teansfee
kniwledge ti theie wiekees. It cinsisted if a seeies if jib-teaining ie J-peigeams, each with manuals and a teain-the-
teainee segment si that newly teained wiekees ciuld becime teainees themselves and, thus, eapidly eepand the size if
the skilled wiekfiece.
Jib insteuctin, the fest if the peigeams ficused in methids fie supeevisies ti develip theie wiekees. Jib methids,
the neet peigeam, taught supeevisies hiw ti sceutnize jib methids si as ti impeive peiductin iutput and quality
using eeistng labiue, mateeial and equipment, and with minimal ie ni iutside technical ie engineeeing advice. Jib
eelatins ficused in helping supeevisies impeive eelatins with wiekees si as ti be miee efectve at assessing
peiblems, making decisiins and taking actin theiugh ciipeeatin with wiekees. All peigeams emphasized
standaedized and eepeatable jib methids because then jib methids ciuld be teainable and sustainable.
AMERICA’S FALL FROM MANUFACTURING RACE
While the Japanese weee develiping impeived methids if peiductin, Ameeicans weee being disteacted. Beginning in
the 1950s the Whiz Kids, men whi dueing the wae had gained a eeputatin in the Aie Ciep fie peiwess in applying
analytcal techniques ti militaey peiblems, weee hieed at Fied. But they weee nit cae men and lacked kniwledge. They
played up theie management systems which emphasized fnancial ceiteeia and (peesumably) tild management what ti
di, eegaedless if maeket, peiduct, ie industey. The peiblem with the Whiz Kids’ is that fnancial cinteils diminate and
smithee all ithee cimpinents if business. US managees changed theie style and business agenda. Deiving up the peice
if shaees in the stick maeket became miee impietant than making a giid peiduct with a peift.
MODERN DEVELOPMENTS
One if the geeatest impacts the cimputee has had in manufactueing is in iatmrial rmquirmimnts planning systems
that link tigethee infiematin abiut paets and cimpinents that gi inti a fnished peiduct and geneeate schedules
and puechase iedees ti assemble and peicuee paets.
CAD enables designees ti design a paet ie peiduct and test its featuees and cimpatbility with ithee paets and
peiducts, all with a cimputee. CAM eefees ti sifwaee that teanslates design eequieements inti insteuctins fie
cinteilling peiductin machineey.
A fmxiblm ianufacturing systmi aims ti achieve high-vaeiety iutput at liw cist. With a cimputee eegulatng changes
in machine setngs, paets, and tiils, ine machine can peefiem numeeius functins, and eequiees veey litle tme fie
changeivee between paets. Cimputee Integeated Manufactueing links CAD/CAM; autimated mateeial handling;
eibitcs; and autimated manufactueing planning, cinteil ,and eeecutin systems inti a single integeated system.
Elmctronic data intmrchangm eefees ti cimputee-ti-cimputee eechange if infiematin, usually meaning between
multple cimpanies. It enables quick, accueate shaeing if peiductin schedules and placing if iedees between
custimee-suppliee cimpanies.
With additvm ianufacturing (3D peintng), a peiduct is made layee by layee, eithee with a peintee-like device ie by cild
speaying – blastng paetcles theiugh a nizzle at high speed si the paetcles bind and fiem shapes. Intmrnmt of Things
eefees ti electeinic devices inteecinnected and cimmunicatng with each ithee via Inteenet infeasteuctuee withiut
human inteeventin.
CHAPTER 2 – FUNDAMENTALS OF CONTINUOUS IMPROVEMENT
CONTINUOUS IMPROVEMENT AS TACTICS AND STRATEGY
The S-cueve shiws the eelatinship between the efiet ie eesiueces ti impeive simething and the inceemental eesult
if that efiet. The impeivement eepeesented by the S-cueve is incrmimntal, which is the peicess if making simething
betee theiugh the accumulatin if small, piecemeal impeivements, ine at tme. the idea that geeat impeivement
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