INSTITUTO TECNOLÒGICO DE

OAXACA
"Own Technology and Economic Independence."

SUBJECT: PRODUCTION MANAGEMENT II

UNIT II:
LEAN AND JUST-IN-TIME PRODUCTION SYSTEMS.
EQUIPMENT:
ESPINOZA ESPINOZA YESICA ELIZABETH

GARCIA JUSTINIANO ABRAHAM.

TORRES MARTINEZ JARED AMAYRANY

JUAREZ MARTINEZ GERARDO

HERNANDEZ HERNANDEZ ELSIE

SANTIAGO VARGAS RICARDO Y.

MERLIN SANTIAGO MIRIAM J.

DANIEL SANTIAGO.

PRESENTA: RESEARCH WORK

TEACHER: MORALES CASTILLO VICENTE
ING. BUSINESS MANAGEMENT

OAXACA DE JUAREZ, OAX. SEPTEMBER 25, 2015

 3.1 FUNDAMENTAL CONCEPTS

Lean Manufacturing are several tools that will help you eliminate all operations
that do not add value to the product, service and processes, increasing the
value of each activity performed and eliminating what is not required. Reduce
waste and improve operations, always based on respect for the worker. Lean
Manufacturing was born in Japan and was conceived by the great gurus of the
Toyota Production System: William Edward Deming, Taiichi Ohno, Shigeo
Shingo, Eijy Toyoda, among others.

The Flexible Manufacturing or Lean Manufacturing system has been defined as

a philosophy of manufacturing excellence, based on:

• The planned elimination of all types of waste.

• Respect for the worker: Kaizen.
• Consistent Productivity and Quality improvement

Lean Manufacturing Objectives:

The main objectives of Lean Manufacturing is to implement a Continuous

Improvement philosophy that allows companies to reduce costs, improve
processes and eliminate waste to increase customer satisfaction and maintain
profit margins.

The 5 Principles of Lean Thinking

1. Define Value from the customer's point of view:

Most customers want to buy a solution, not a product or service.
2. Identify your Value stream:
Eliminate waste by finding steps that do not add value, some are unavoidable
and others are eliminated immediately.
3. Creates Flow:
Make the entire process flow smoothly and directly from one value-adding step
to the next, from raw material to consumer
4. Produce the Customer "Pull":
 5. Once the flow is done, they will be able to produce based on customer
orders instead of producing based on long-term sales forecasts.
6. Pursue perfection:
Once a company achieves the first four steps, it becomes clear to those
involved that adding efficiency is always possible.

Just in Time
Just in Time is an industrial philosophy that consists in the reduction of waste
(activities that do not add value) that is to say everything that involves
underutilization in a system frompurchasing to production. There are many
ways to reduce waste, butJust-in-Time relies on physical control of material to
locate waste and ultimately force its elimination.

The basic idea of Just-in-Time is to produce an item at the time it is required to

be sold or used by the next workstation in a manufacturing process. Within the
production line, not only the total inventory levels are strictly controlled, but also
the inventory level between workcells. Production within thecell, as well as
delivery of material to the cell, is driven only when a stock (inventory) is below a
certain limit as a result of itsconsumption in the subsequent operation. In
addition, material cannot be delivered to the production line or workcell unless
an equal quantity is left on the line. This signal prompting action can be an
empty container or aKanban card, or any other visible sign of replenishment, all
of which indicate that an item has been consumed and needs to be replenished.

The just-in-time concept requires the timely delivery of all supplies and parts
from outside sources and from other divisions of a company, thereby
significantly reducing or eliminating in-plant inventory. Suppliers are expected to
deliver (often on a daily basis) pre-inspected products as needed for production
and assembly. This approach requires reliable suppliers, close cooperation,
trust between the company and its suppliers and a reliable transportation
system.

Advantages of just-in-time.

 Low inventory control costs.

  Fast detection of defects in production or delivery of supplies, and
therefore, low loss of waste.
 Reduction of the inspection and parts process.
 High quality products manufactured at low cost.

3.2 IMPACTS ON CAPACITY

In the analysis concerning inventory, it was stated that one way of conceiving
such attractiveness is as a stored capacity. In a lean production system, where
inventory is reduced, the manufacturer tends to manage capacity requirements
in "real time", as it cannot afford to have capacity stored as inventory. In almost
all production environments, customer demand for any period has some degree
of uncertainty, despite all the improvements that have been developed to try to
alleviate it.

Because you have so little inventory to respond to this uncertainty, it is

important that you have a back-up inventory that allows you to manufacture the
product needed to meet that demand (rather than filling the order from
inventory).

Capacity requirements planning is the process by which the capacity

requirements established in a work center, or groups of work centers, are
calculated with the result of the planned requisitions with the MRP.

If the planned requisitions result in an infeasible schedule of requirements, there

are several possible corrective actions:

1° Schedule overtime where there are bottlenecks

2°Revise the master production plan so that the planned requisitions can be
substituted at lower levels with the current capacity of the system.

IMPACT CLASSIFICATION

According to their resilience

Irrecoverable impact:that in which the alteration of the environment or loss

is impossible to repair, either by natural or human action.

 Example
Extinction of a species.

Irreversible impact:an impact whose effect implies the impossibility of

returning, by natural means, to the situation prior to the action that produced
it.

 Example
Areas being degraded by erosion.

Reversible impact: one in which the alteration can be assimilated by the

environment in a measurable way, in the short, medium or long term, due to
the functioning of natural processes and the environment's self-purification
mechanisms.

 Example
Contamination of a lake

Mitigable impact:effect in which the alteration can be mitigated or mitigated

in an ostensible manner, through the establishment of corrective measures.
  Example
Spill control.

Design of highway routes according to bird migration routes.

Recoverable impact: effect in which the alteration can be eliminated by

human action, establishing the appropriate corrective measures, and also
that in which the alteration it entails can be replaceable.

 Example
Clinker cement kilns for the disposal of certain wastes.

Fleeting impact: one whose recovery is immediate after cessation of the

activity and does not require corrective or protective practices. In other
words, when the activity ceases, the impact ceases.

 Example
Repopulation of a given species after plant closure

3.3 THE PULL-PULL SYSTEM.

Pull and push systems are two approaches to operations management, in the
former, items will be manufactured or purchased in response to demand, in the
latter they will be manufactured or purchased based on what is planned or
anticipated.
When product demand determines how much to produce (pull approach),
production order sizes are small, low inventory costs are generated, and there
is a low risk of product obsolescence. This approach is suitable when
competing for innovation and flexibility, and its implementation requires fast
information from the points of sale, as well as a fast and flexible production
system. The disadvantages of this approach are the need to have capacity for
peak demand periods, lower economies of scale and transportation than the
traditionalpush approach(Muñoz).

Distributors determine their specific stock replenishment needs on an individual

basis. calculating the quantity required and placing the order to the buffer
warehouse. The advantages of this system are the following: better knowledge
of the market and proximity to the customer by the delegation. But it also has
drawbacks: - Lack of coordination with the company's global stock, buffer
warehouse stock and manufacturing schedule. - In times of shortage, the buffer
store serves the one who orders first. - Increases safety stock. The delegation
tends to overprotect itself and accumulate stock(Mauleón).

In thepull system, the movement of materials and products is matched to

demand at all times - nothing will be produced until it is actually required. In the
big picture, manufacturers will not produce anything unless there is a market
demand and this will pull products from the manufacturing plant. Operationally,
the first operation (demand) will create the requirements to produce, while the
second (production) will make it possible to manufacture the
products(Casanovas).

Pull systems are characterized by the fact that warehouses or different points of
sale individually determine the specific replenishment needs of their stocks,
calculating the required quantity, which they order directly from their supplying
warehouse. The advantages ofpull systems, in relation topush systems, are
mainly centered on the possibility of operating autonomously, with a better
knowledge of the cause (on-site decision). as well as the possibility of using
more rudimentary computer tools, which entail lower communication and data
processing costs. The main disadvantages are mainly centered on the
following: - Uncoordination of the overall needs of the company, with the
consequent difficulty in making a delivery plan. - Orders are placed without
taking into account the total stock on hand: production schedules, etc. - This
leads to "sub-optimization" in the sense that the central warehouse is on a "first-
order-first-delivered" basis.

3.4 THE KANBAN SYSTEM

The Kanban principle was originally developed by Taiichi Ohno at Toyota Motor
Corporation in 1947.

It is a system to control material flow and production according to the "pull"

principle. So-called self-regulating control circuits are applied to ensure the
supply of material. In Kanban, the material order is consumption driven, this
means only the consumption of the production and logistics process triggers the
reorder points.

Kanban means "instruction label" in Japanese.

The kanban label contains information that serves as a work order, this is its
main function, in other words it is an automatic steering device that gives us
information about what is to be produced, in what quantity, by what means, and
how to transport it.
It is a tool based on the way supermarkets work.
The objective was to increase productivity and efficiency in order to gain an
advantage over competitors. By using "Kanban" Toyota was able to control
production much more flexibly and efficiently. The result was striking: increased
productivity, as well as reduced inventory costs of raw materials, intermediate
products and finished products at the same time.

Kanban functions
Kanban has two main functions: production control and process improvement.
1. To be able to start any standard operation at any time.
2. Give instructions based on current conditions in the work area.
3. Prevent unnecessary work from being added to those orders already started
and prevent unnecessary excess paperwork.

The following considerations should be taken into account prior to

implementation
KANBAN:

1.-Determine a production scheduling system for final assemblies to develop a

mixed and labeled production system.

2. A KANBAN route should be established that reflects the flow of materials, this
involves designating locations so that there is no confusion in the handling of
materials, it should be obvious when material is out of place.

3. The use of kanban is linked to small batch production systems.

4. It should be noted that items of special value should be treated differently.

5. There should be good communication from the sales department to

production for those seasonal cyclical items that require a lot of production, so
that there is plenty of advance notice.

6. The KANBAN system shall be constantly updated and continuously

improved.

Advantages in production processes:

1.- Increases the flexibility of production and transportation processes.
If a computerized system is used, it allows knowing the situation of all the items
at any given moment and giving instructions based on the current conditions of
each work area.
3.- Prevent unnecessary work and prevent unnecessary paperwork.

Advantages in logistics operations:

1.- Better control of material stock.
2.- Possibility of prioritizing production: the type of product with the most
importance or urgency is put first before the others.
3.- Material control is facilitated.

3.5 Use of kanban system for process improvement

PRODUCTION KANBAN:
This type of KANBAN is used in assembly lines and other areas where set-up
time is close to zero. When labels cannot be attached to the material, e.g. if the
material is being heat treated, they should be hung near the treatment site
according to the sequence within the process.
 Process improvement.

The process improvement function is understood as the facilitation of

improvement in the different activities of the company through the use of
Kanban, this is done through engineering techniques, and would give the
following results:

 Waste disposal.
 Organization of the work area.
 Set-up reduction3. Set-up time is the amount of time needed to change a device
on a piece of equipment and prepare that equipment to produce a different
model; to produce it with the quality required by the customer and without
incurring costs for the company and thus reduce the production time in the
whole process.
 Use of machinery vs. utilization on a demand basis.
 Multiprocess management.
 Fail-safe mechanisms.
 Preventive maintenance.
 Total productive maintenance.
 Reduction of inventory levels.
 Reduction in WIP (Work in Process).
 Reduction of downtime.
 . Flexibility in production scheduling and production itself.
 Breaking of administrative barriers (BAB) are archived by Kanban
 Teamwork, Quality Circles and Autonomy (Worker's decision to stop the line)
 Cleaning and Maintenance (Housekeeping)
 Provides fast and accurate information
 Avoids overproduction
 Minimizes Waste

A KANBAN system promotes improvements in two aspects:

-KANBAN highlights abnormal situations when they are caused by machine
breakdowns and product defects.
-A gradual reduction in the number of KANBANES leads to reductions in the
number of KANBANES.
STOCK, which ends STOCK's role as a buffer against production instabilities.
This uncovers under-trained processes and anomaly generators and simplifies
the uncovering of areas requiring improvement. Overall efficiency is increased
by concentrating on weak elements (Theory of Constraints).
One of the functions of KANBAN is to transmit information to the upstream
process to know what the needs of the current process are. If there are too
many KANBANES, the information is no longer as effective, if there are too
many KANBANES, it is not known which parts are really needed at that
moment.
Reducing the number of KANBANES reduces the number of SET-UPS. The
fewer KANBANES there are, the better the sensitivity of the system.

KANBAN RULES
Rule 1: No defective product should be sent to subsequent processes.
The production of defective products involves costs such as investment in
materials, equipment and labor that cannot be sold. This is the biggest waste of
all. If a defect is found, measures must be taken first and foremost to prevent its
recurrence.
Observations for the first rule:
-The process that has produced a defective product can discover it immediately.
-The problem discovered must be disclosed to all personnel involved, no
recurrence should be allowed.
Rule 2: Subsequent processes will require only what is necessary.
This means that the downstream process will order the material it needs from
the upstream processes, in the required quantity and at the right time. A loss is
created if the upstream process supplies parts and materials to the downstream
process at a time when the downstream process does not need them or in a
greater quantity than the downstream process needs. The loss can be very
varied, including loss of excess overtime, loss of excess inventory, and loss of
investment in new plants without knowing that the existing plant has sufficient
capacity. The worst loss occurs when processes cannot produce what is
needed when they are producing what is not needed.
This second rule is used to eliminate this type of error. If we assume that the
upstream process will not supply defective products to the downstream process,
and that the downstream process will have the capability to find its own errors,
then there is no need to obtain this information from other sources, the process
can supply good materials. However, the process will not have the capability to
determine the amount and timing of material needed for subsequent processes,
so this information will have to be obtained from another source. So we will
change the way of thinking that "subsequent processes will be substituted" to
"subsequent processes will be substituted".
"subsequent processes will ask the upstream processes for the required
amount at the right time".
This mechanism should be used from the last process to the initial one, in other
words from the last process to the initial one.
There are a series of steps that ensure that subsequent processes will not
arbitrarily pull or require the previous process:
1. Material should not be required without a KANBAN card.
2. The items that are required must not exceed the number of KANBANs
admitted.
3. A KANBAN label must always accompany each item.
Rule 3. Produce only the exact quantity required by the subsequent process.
This rule was made with the condition that the process itself must restrict its
inventory to the minimum, for this the following observations must be taken into
account:
1. Do not produce more than the number of KANBANES.
2. Produce in the sequence in which the KANBANES are received.
Rule 4. Balancing production
So that we can produce only the necessary quantity required by subsequent
processes, it is necessary for all processes to maintain equipment and workers
in such a way that they can produce materials at the necessary time and in the
necessary quantity. In this case, if the subsequent process requests material in
an incontinuous manner with respect to time and quantity, the upstream
process will require excess personnel and machinery to meet that need. This is
the point emphasized in the fourth rule, the production must be balanced or
smoothed (Smooth, equalized).
Rule 5. KANBAN IS A MEANS TO AVOID SPECULATION
So for the workers, KANBAN becomes their source of information for production
and transportation, and since the workers will depend on KANBAN to carry out
their work, the balance of the production system becomes of great importance.
It is not valid to speculate on whether the subsequent process will need more
material the next time, nor can the subsequent process ask the previous
process if it could start the next batch a little earlier, neither can send
information to the other, only that which is contained on the KANBAN cards. It is
very important that production is well balanced.
Rule 6. Stabilize and streamline the process.
Defective work exists if the work is not standardized and rationalized, and if this
is not taken into account, defective parts will continue to exist.

3.6 Lean production and master scheduling

What is Lean Manufacturing?

Lean Manufacturing are several tools that will help you eliminate
all operations that do not add value to the product, service and
processes, increasing the value of each activity performed and
eliminating what is not required. Reduce waste and improve
operations, always based on respect for the worker. Lean
Manufacturing was born in Japan and was conceived by the
great gurus of the Toyota Production System: William Edward
Deming, Taiichi Ohno, Shigeo Shingo, Eijy Toyoda, among
others.

The Flexible Manufacturing or Lean Manufacturing system has

been defined as a philosophy of manufacturing excellence, based
on:

The planned elimination of all types of waste

Respect for the worker: Kaizen

Consistent Productivity and Quality improvement

Lean Manufacturing Objectives

The main objectives of Lean Manufacturing is to implement a

Continuous Improvement philosophy that allows companies to
reduce costs, improve processes and eliminate waste to increase
customer satisfaction and maintain profit margins.

Lean Manufacturing provides companies with the tools to survive in a

global marketplace that demands higher quality, faster delivery at
lower cost and in the quantity required.

Specifically, Lean Manufacturing:

Dramatically reduces the waste stream

Reduces inventory and production floor space

Creates more robust production systems

Creates appropriate material delivery systems

Improved plant layouts for increased flexibility

Benefits

The implementation of Lean Manufacturing is important in different

areas, since different tools are used, thus benefiting the company
and its employees. Some of the benefits it generates are:

50% reduction in production costs

Inventory reduction

Lead time reduction

Best Quality

Less labor

Increased equipment efficiency

Waste reduction

Overproduction

Waiting time (delays)

Transportation

The process

Inventories

Lean Thinking

The key part in the process of developing a lean strategy is the

personnel, since it often involves radical changes in the way of
working, something that by nature causes distrust and fear. What
the Japanese discovered is that, more than a technique, it is a
good regime of human relations. In the past, the intelligence and
creativity of the worker, who is hired as if he were a machine, has
been wasted. It is very common that, when an employee from the
lower levels of the organization chart comes up with an idea or
proposal, he/she is criticized and even silenced. Sometimes
managers do not understand that, every time they 'turn off the
light bulb' on a worker, they are wasting money. The concept of
Lean Manufacturing implies the cancellation of the command and
its replacement by leadership. The word leader is the key.

The 5 Principles of Lean Thinking

1.Define Value from the customer's point of view:

Most customers want to buy a solution, not a product or service.

2. Identify your Value stream:

Eliminate waste by finding steps that do not add value,
some are unavoidable and others are eliminated
immediately.

3. Creates Flow:
Make the whole process flow smoothly and directly from one
value-adding step to the next, from raw material to consumer

4. Produce the Customer "Pull":

Once the flow is done, they will be able to produce to customer

orders instead of producing based on long-term sales forecasts.

5. Pursue perfection:

Once a company achieves the first four steps, it becomes clear to those
involved that adding efficiency is always possible.

Lean Manufacturing Tools

5'S

This concept refers to the creation and maintenance of cleaner,

more organized and safer work areas, i.e., it is about providing a
higher "quality of life" at work. The 5'S come from Japanese
terms that we daily put into practice in our daily lives and are not
an exclusive part of a "Japanese culture" foreign to us, in fact, all
human beings, or almost all of us, tend to practice or have
practiced the 5'S, even if we do not realize it. The 5'S are:

To sort, organize or arrange

properly: SeiriSort: Seiton

Cleaning: Seiso

Standardi
ze:
Seiketsu
Discipline:
Shitsuke
When our work environment is disorganized and unclean we will
lose efficiency and morale at work is reduced.
Objectives of the 5'S

The central objective of the 5'S is to achieve the most efficient and
uniform functioning of people in the workplace.

Benefits of the 5'S

The implementation of a 5'S strategy is important in different areas, for

example, it allows to eliminate waste and on the other hand it allows to
improve industrial safety conditions, thus benefiting the company and
its employees. Some of the benefits generated by the 5'S strategies
are:

Increased levels of safety resulting in higher employee motivation

Higher quality

Shorter response times

Increases equipment life

Generates organizational culture

Reduction in losses and wastage due to production with defects

Definition of the 5'S

Sort (seiri)

Sorting consists of removing from the work area or workstation all

those elements that are not necessary to perform the work, either
in production or administrative areas. An effective way to identify
these items to be removed is called "red tagging". In fact, a red
(expulsion) card is issued for each item that is considered not
necessary for the operation. These items are then taken to a
transitional storage area. Later, if it was confirmed that they were
unnecessary, these will be divided into two classes, those that
are usable for another operation and the useless ones that will be
discarded. This tidying step is an excellent way to free up floor
space by discarding such things as: broken tools, obsolete
attachments or tools, offcuts and excess raw materials. This step
also helps eliminate the "just in case" mentality.

Classifying consists of:

Separate in the workplace the things that are really

useful from those that are useless Sort what is
necessary from what is unnecessary for routine work.

Keeping what we need and eliminating what is excessive

Separates the elements used according to their nature, use,

safety and frequency of use in order to facilitate agility in the work.

Organize tools in places where changes can be made in the shortest possible
time.

Eliminate elements that affect the operation of the equipment and that can
cause failures.

Eliminate unnecessary information that could lead to errors in interpretation or

action.

Benefits of sorting

Sorting prepares workplaces to be safer and more productive.

The first and most direct impact is related to safety. The
presence of unnecessary elements makes the work environment
tense, prevents a complete view of the work areas, makes it
difficult to observe the operation of equipment and machines,
and obstructs emergency exits, all of which makes the work area
more unsafe. Classify allows:

Free up usable floor and office space

Reducing access times to materials, documents, tools and other items

Improve the visual control of stocks (inventories) of spare parts and
production elements, folders with information, plans, etc.

Eliminate losses of products or elements that deteriorate due to

prolonged exposure in an unsuitable environment, e.g., packaging
material, labels, plastic containers, cardboard boxes and others

Facilitate visual control of the raw materials that are running out and
that are required for a process in a shift, etc.

Prepare the work areas for the development of autonomous

maintenance actions, as it is possible to appreciate with

ease the leakage, leaks and contaminations existing in the

equipment and often hidden by unnecessary elements located near
the equipment

Order (seiton)

It consists of organizing the elements that we have classified as

necessary so that they can be easily found. Ordering in
maintenance has to do with improving the visualization of the
elements of machines and industrial installations. Some
strategies for this "everything in its place" process are: floor paint
clearly delineating work areas and locations, silhouetted boards,
as well as modular shelving and/or cabinets to keep things like a
trash can, broom, mop, bucket, etc. in place, i.e., "A place for
everything and everything in its place." Ordering allows:

Provide a suitable location for each item used in routine work to

facilitate access and return to the site.

Have identified sites to locate infrequently used elements

Have places to locate the material or elements that will not be used in the
future.

In the case of machinery, facilitate the visual identification of

equipment elements, safety systems, alarms, controls, direction of
rotation, etc.
Ensure that the equipment has visual protections to facilitate
autonomous inspection and cleaning control.

Identify and mark all process ancillary systems such as piping,

compressed air, fuels, etc.

Increasing production operators' knowledge of the equipment

Benefits of ordering

Employee benefits

Facilitates quick access to items required for the job

Improved on-site information to avoid errors and potential risk actions

Cleaning and sanitizing can be done more easily and safely

The presentation and aesthetics of the plant are improved,

communicating order, responsibility and commitment to the work.

Space is freed up

The work environment is more pleasant

Safety is increased due to the demarcation of all plant sites and the use of
transparent protections, especially in high-risk areas.

Organizational benefits

The company can count on simple systems for visual control of

materials and raw materials in process stock.

Elimination of losses due to errors

Increased compliance with work orders

Equipment condition is improved and breakdowns avoided

The company's know-how is

retained and utilized Improved
overall plant productivity
Cleaning (seiso)

Cleaning means removing dust and dirt from all elements of a

factory. From a TPM standpoint it involves inspecting the
equipment during the cleaning process. Leakage problems,
breakdowns, faults or any type of FUGUAI (defect) are identified.
Cleaning includes, in addition to the activity of cleaning work
areas and equipment, the design of applications to avoid or at
least reduce soiling and make work environments safer.

To apply the cleaning you must:

Integrating cleanliness as part of daily work

Assuming cleaning as an autonomous maintenance activity: "cleaning is

inspection".

The distinction between process operator, cleaning operator and

maintenance technician must be abolished Cleaning work as
inspection generates knowledge about the equipment. This is
not a simple activity that can be delegated to less qualified
persons.

It is not just a matter of removing dirt. The cleanup action should be

elevated to the search for the sources of contamination in order to
eliminate its primary causes.

Benefits of cleaning
Reduces the potential risk of accidents occurring

Improves the physical and mental well-being of the worker

Increases the useful life of equipment by preventing deterioration due to

contamination and contamination

Malfunctions can be identified more easily when the equipment is in

an optimal state of cleanliness.

Cleaning leads to a significant increase in Overall Equipment Effectiveness

(OEE).
Material and energy wastage is reduced due to elimination of
leaks and spills Product quality is improved and losses due to
soiling and contamination of product and packaging are
prevented

Standardize (seiketsu)

Standardizing aims to maintain the state of cleanliness and

organization achieved with the application of the first 3's.
Standardization is only achieved when the above three principles
are continuously worked on. In this stage or application phase
(which should be permanent), it is the workers who advance
programs and design mechanisms that allow them to benefit
themselves. To generate this culture different tools can be used,
one of them is the location of photographs of the workplace in
optimal conditions so that it can be seen by all employees and
thus remind them that this is the state in which it should remain,
another is the development of rules in which it is specified what
each employee must do with respect to their work area.
Standardization is intended to:

Maintain the state of cleanliness achieved with the first three S

Teach the operator to perform standards with the support of

management and proper training. The standards must contain
the elements necessary to carry out the cleaning work, the
time required, safety measures to be taken into account and
the procedure to be followed in case something abnormal is
identified.

Where possible, photographs should be used to show how the equipment and
care areas should be maintained.

The use of standards must be audited for compliance

Cleaning, lubrication and tightening standards are the basis of autonomous

maintenance (Jishu Hozen).

Benefits of standardization
The knowledge produced during years of work is stored
 Improved staff wellbeing by creating a habit of keeping the
workplace spotless on a permanent basis

Operators get to know the equipment inside out

Cleaning errors that could lead to accidents or unnecessary

occupational hazards are avoided Management is more engaged
in the maintenance of work areas by being involved in the
approval and promotion of standards

Personnel are prepared to assume greater responsibilities in

workplace management Intervention times are improved and plant
productivity is increased.

Discipline (shitsuke)

It means to avoid breaking established procedures. Only by

implementing discipline and compliance with the rules and
procedures already adopted will it be possible to enjoy the benefits
they provide. Discipline is the channel between the 5'S and
continuous improvement. It involves periodic monitoring, surprise
visits, employee self-monitoring, respect for self and others, and
improved quality of work life:

Respecting the norms and standards established to

keep the workplace impeccable Performing personal control
and respecting the norms that regulate the operation of an
organization
Promote the habit of self-monitoring or reflecting on the level of
compliance with established standards

To understand the importance of respect for others and

for the rules in which the worker has probably participated
directly or indirectly in their elaboration To improve respect
for oneself and for others

Benefits of standardization
A culture of sensitivity, respect and care for the company's resources is
created.

Discipline is a way to change habits

 Established standards are followed and there is greater
awareness and respect among people Morale in the workplace
increases

The customer will be more satisfied because the quality

levels will be higher due to the fact that the established procedures
and standards have been fully respected.

The workplace will be a place where it is really attractive to come every

day.

Just in Time

Just in Time is an industrial philosophy that consists in the

reduction of waste (activities that do not add value) that is to say
everything that involves underutilization in a system from
purchasing to production. There are many ways to reduce waste,
but Just-in-Time relies on physical control of material to locate
waste and ultimately force its elimination.

The basic idea of Just-in-Time is to produce an item at the time it

is required to be sold or used by the next workstation in a
manufacturing process. Within the production line, not only the
total inventory levels are strictly controlled, but also the inventory
level between work cells. Production within the cell, as well as
delivery of material to the cell, is driven only when a stock
(inventory) is below a certain limit as a result of its consumption
in the subsequent operation. In addition, material cannot be
delivered to the production line or work cell unless an equal
quantity is left on the line. This signal prompting action can be an
empty container or a Kanban card, or any other visible sign of
replenishment, all of which indicate that an item has been
consumed and needs to be replenished. Figure 9 shows how the
Just-in-Time System works.
The 7 Pillars of Just in Time

1. Matching supply and demand

No matter what color or flavor the customer asks for, we will

learn to produce it as required, with a lead time close to zero,
i.e.: TEC = TET where:

TEC: Delivery Time Customer

TET: Total Turnaround Time = TEM + TEA

TEM: Manufacturing Lead Time

TEA: Aggregate Turnaround Time

If the TET is greater than the TEC, it will be necessary to push

raw materials or components, reducing the TEM and TEA.

2. The worst enemy: waste

Eliminate waste at the root cause by performing a work cell analysis.
Some of the causes of waste are:

- Worker-process imbalance

- Quality problems

- Preventive maintenance Insufficient

- Rework, reprocessing
- Overproduction, overbuying

- More people, less people

Waste How to eliminate them

- Reduce preparation times, synchronizing

Overproduction quantities and times between processes,
doing only what is necessary

- Synchronize flows
Wait for - Workload balancing
- Flexible worker

- Distribute locations to make

handling/transportation unnecessary
Transportation - Rationalize those that cannot be
eliminated

- Analyze if all operations must be

performed or if some can be eliminated
Process
without affecting the quality of the
product/service.

Inventories - Shorten set-up and response times and

synchronize them

Movement - Study the movements to seek economy

and awareness. Improve first, then
automate

Defective - Develop the project to prevent

products defects, in each process neither make nor
accept defects.
- Making processes foolproof

Figure 2. Types of waste

3. The process must be continuous, not batch

 This means that only the required units must be produced in
the required quantities, in the required time. To achieve this,
there are two tactics: a) Keeping lead times very short.

That is, the production speed should be equal to the

consumption speed and there should be flexibility in the
production line to change from one model to another quickly.
b) Eliminate unnecessary inventories.

To eliminate inventories, it is necessary to reduce them little by little.

Type of inventory Form of reduction

Work in progress Reduce lot size Eliminate

queuing

Raw materials Direct, small and frequent receipts to the workplace

Finished product Producing what sells

Ship frequently and in smaller quantities

Cycle
Decrease preparation time

Security
Reducing uncertainty about material
quality and quantity

Buffer
To the function Eliminate queues, provide fluidity

In transit
Program, coordinate, anticipate

Anticipation
Leveled programming

Figure 3. Types of inventories

4. Continuous Improvement
The search for improvement must be constant, tenacious and
persevering, step by step, in order to achieve the proposed
goals.

5. Human beings come first

People are the most important asset. Just in Time considers that
the man is the person who is with the teams, so his decisions are
key to achieve the company's objectives.

Some of the activities to be carried out to comply with this point are:

Reducing fear of productivity, practicing

openness and trust Having cross-functional
people

Having stable jobs

To have greater staff support to the floor

6. Overproduction = inefficiency

Eliminate the "just in case" by utilizing other principles such as

Total Quality, people involvement, workplace organization, Total
Productive Maintenance (TPM), SMED, simplifying
communications, etc.

7. Do not sell the future

Current goals tend to be short term, re-evaluate the measurement
systems, performance, etc.. To carry out these evaluations, the
Just-in-Time Planning System must be taken into account, which
consists of a pentagonal model, in which each of the edges
represents an element of the system:

Physical Distribution:
Formed by cells and cluster technology, it tells us how to manage
and distribute the physical resources at our disposal. Instead of
having specialized departments in one operation, the aim is to
work with all operations in one place, forming complete and
controllable mini-fabriquitas.

People Advantage:

Teamwork to solve problems, as well as the proximity of the

various machines in a cell favoring the multifunctionality of the
people.

Continuous Flow:

High quality is required to avoid shutdowns due to defects, and

preventive maintenance is required to avoid unscheduled
equipment shutdowns.

Linear Operation:

The way to move the product will be one at a time, since otherwise
delivery times are high (you have to wait at each step for a whole lot
to be finished before moving it forward) and waste would be hidden
in the bulk inventory.

Reliable Demand and Supply:

One of the causes of the problems with supplies is instability:
nobody knows when they are going to buy from them or how
much because everyone is constantly changing suppliers in
search of better prices. Just in Time visualizes cooperation and
mutual trust.
Pulling system

It is a production system where each operation stretches the

material it needs from the previous operation. It consists of
producing only what is necessary, taking the required material
from the previous operation. Your optimal goal is: to move
material between operations one at a time.

In the "pull" orientation, the production references come from the

previous work center. The previous workstation then has the
exact amount of parts available to be assembled or added to the
product. This orientation means starting at the end of the
assembly chain and working backwards to all components of the
production chain, including suppliers and vendors. According to
this orientation an order is triggered by the need of the next
workstation and is not an unnecessarily produced item.
The "pull" orientation is accompanied by a simple reporting system
called Kanban. Thus the need for work-in-process inventory is
reduced by the tight splicing of the manufacturing stage. This
reduction helps to bring to light any loss of time or material, use of
defective spare parts and improper operation of equipment. The
pull system allows:

Reducing inventory, thereby exposing the problems

Doing only what is necessary to facilitate control

Minimizes in-process inventory

Maximizes feedback speed

Minimizes delivery time

Reduces space

Manufacturing cells

It is the grouping of a series of different machines in order to simulate a

production flow.

Pre-requisites Features

More dependent on people than on

Low assembly or set-up times
machines

Operations are balanced on a cycle time

Sufficient volume
basis

Quick online troubleshooting Flexible equipment instead of super

skills machines

Grouping by product families Move small quantities. Short distances

Multifunctional operator training Compact distribution

Everything in its place

Figure 4.
Manufacturing
Cells Where to
start?
For order and cleanliness, organization of the work place

Shortening conveyor belts

Set product routes

Eliminate in-process inventory warehouses

Shortening distances

Establish a rational flow of material, with its flow and supply points.

Visual control

Visual controls are closely related to standardization processes. A

visual control is a standard represented by a graphic or physical
element, colored or numerical and very easy to see .5
Standardization is transformed into graphics and these become
visual controls. When this happens, there is only one place for
everything, and we can tell immediately whether a particular
operation is proceeding normally or abnormally.

A visual control is used to report in an easy way among others the following
topics:

Site where the elements are located

Frequency of lubrication of equipment, type of lubricant and place to apply

it

Suggested standards for each of the activities to be

performed in a team or work process

Where to locate in-process material, final product and, if available,

defective products

Site where the elements of cleaning, cleaning and classified waste must
be located.
 Direction of rotation of motors

Electrical connections

Direction of rotation of actuating

knobs, valves and actuators Flow of
liquid in a pipeline, pipe marking, etc.

Gauge operating ranges (standard)

Where to place the calculator, folders, pens, pencils at the workstation

Master Production Scheduling

Disintegration
As an output of the Aggregate Planning process we generally have a production
program to group the products by family. It tells a shirt manufacturer how many
to make, but not how many should be size S, how many size M, how many size
L or XL, or are white, blue or red. It tells a steel manufacturer how many tons of
zero to produce but does not discriminate between which to make, whether the
steel is in coil or rolled.
As we just noted above, the details and parameters that result from a plan
include staffing, subcontracting, inventory build-up, and changes in weekly or
monthly production levels. But while this is important information, the company
needs more information to operate and meet demand smoothly. What you need
is a plan that handles particular and specific products.
How much of each should be produced, and by what date? The process of
breaking down the Aggregate Plan in more detail is called disaggregation.
Disaggregation results in a Master Production Program PMP.

PMP Objectives

The PMP formalizes the Production Plan and converts it into specific raw
material and capacity requirements. Labor, raw material and equipment needs
must then be assessed for each job. Therefore, the PMP manages the entire
production and inventory system by setting specific production goals and
responding to feedback from the entire flow of operations.

PMP functions
Some key functions of the PMP are listed below:
1. Converts aggregated plans into specific deliverables
2. Evaluates programming alternatives
Generate material requirements
Generates capacity requirements
5. Facilitates information processing
6. Maintains valid priorities in production schedules.

Master Production Scheduling Guidelines

The scheduling process generally consists of consolidating gross requirements,

subtracting them from on-hand inventory, and grouping the net requirements
into planned orders of appropriate order size. The orders are then converted
into load reports for key plants or work centers, and the complete raw material
and capacity requirements are reviewed for feasibility.

Master Production Scheduling Guidelines

1. Working on a Globalized Programming Plan
2. Program Common Modules if possible
3. Load the facilities in real terms of capacity
4. Deliver orders as scheduled.
5. Closely monitor inventory levels
6. Reprogram if required
PMP horizons
For the PMP the time horizon to be covered depends on the type of product, the
production volume and the variability of delivery times. This time may be in
weeks, months or some combination, but we must extend the schedule far
enough forward so that lead times for all purchases and assembled
components are adequately included.

The PMP has fixed and flexible (or tentative) portions. The term fixed portion
includes the minimum delivery time required and is not open to change.
Master Programming Method

The following example illustrates a master scheduling method that incorporates

product demand and orders. Note that the number of units to be produced
during each production cycle is specified as the width of each economic run
(Economic Lot).
Example 5-4 Presented below in Tables 5-3 and 5-4 are the expected demands
for subassemblies A and B, which have initial inventories of 100 and 40 units,
respectively. The economic run width for A is 200 units and for B, 80 units. Item
B has a variable and uncertain demand, so the company tries to keep 30 units
of extra inventory (safety) to ensure good service. Develop a tentative PMP for
A and B.
Service level requirements make it necessary that the ending inventory of B be
no less than 30 units.
Consolidated requirements are determined by adding forecast and order data.

For A:
Week 1 = 80 + 30=110
Week 2 = 10 + 80 + 20 =110
The required production is determined by:
Production = Beginning Inventory - Requirements
Consolidated

For A: Week 1= 100+200-110=190 (new production is needed),

CPE =200 since the requirements are greater than the stock)
Week 2= 190-110=80
The ending inventory is determined by:

Ending Inventory = Beginning Inventory + Production -

Requirements

In this case, we must take into account the safety inventory for Subassembly B:
40-20 = 20 but it is less than the safety stock of 30 so we must produce the
CEP of 80, then 40+80-20 = 100.
The required production lines show the quantities of the tentative master
schedule Table 5-7

PMP applications
1. The table below shows the expected demand for a finished article, which
has an initial inventory of 90 units. The production batch size is 200 units,
and the company keeps 30 units for safety.

Complete the Master Schedule to determine production requirements,

beginning inventory, required production and ending inventory for each period.
Siemens S.A. commercializes two ultrasound electrocardiogram equipment in
the international markets: MACROMLLK-130 and FULLTACK-50. The
anticipated demand for the next six periods is shown in Table 5-9.
Develop a tentative MTP based on the data provided.
3. A manufacturing plant wants to update its Master Production Schedule for its
products. The policy is to produce on a stock basis. The following table shows
the demand for the product for the next six weeks.

A safety stock level, minimum lot size and initial inventory level have been
established for this product as follows:

Develop the six-week PMP for this product.

4. Complete the Master Production Schedule for Material W presented in the
table below. Note that this item has a separate demand that requires a safety
inventory of 80 units to be maintained.

3.7 KANBAN SYSTEMS VERSUS MRP.

In conventional MRP procedures, production quantities and dates are
calculated on the basis of the customer's actual or planned independent
requirements. The required quantity and dates of the components are
calculated by exploding the bill of materials. Production quantities can be
compiled for various requirements. The creation of lot sizes is based on the
calculation of the selected lot size. At each production level, batches are
normally fully produced before being passed on for further processing. The
dates calculated in MRP are the result of a detailed planning run for the current
production level, even if you do not know exactly when the material will be
needed for the next production level when you run the planning run. The
material is transferred to production according to these dates (PRINCIPLE OF
TRANSFER). This can often lead to waiting times before production can start or
until the material can be further processed. These lead times are planned as
increased floats or lead times in planning and are rarely reduced. This results in
high inventories and longer manufacturing cycles.
In the kanban technique, no individual and superior planning is used to control
the flow of materials through production. Instead, the downstream work center
(demand source) requests the material from the upstream work center (supply
source) only when it is needed (DEMAND PRINCIPLE). To this end, a control
cycle (with a fixed number of kanban cards) is created between the source of
supply and the consumer. Each kanban card corresponds to a specific quantity
of material and usually represents one package (however, it is not mandatory).
When the quantity of material in a kanban has been consumed, the kanban
receives the status EMPTY and is sent to the supply source. The kanban is the
signal for the supply source to manufacture the quantity of material recorded in
the kanban. Once production is complete, the material is delivered to the
demand source, who confirms the receipt of the material by setting the status
back to FULL. The kanbans determine the lot size, and the supply source then
manufactures that quantity in a single process. The total production quantity is
calculated by the total number of kanbans shipped to the supply source within a
predefined period of time. Replenishment frequency is based on actual
consumption. This means that if more material is needed, the kanbans will
simply circulate with greater speed between the source of supply and the
consumer. If less material is needed, the kanbans will circulate more slowly. If
no material is required, all kanbans will remain on the consumer with the
material, thus making all necessary components available to start production of
the corresponding assembly. There will never be more material in circulation
than is defined by the number of kanbans in a control cycle. In addition, all
manufacturing levels controlled by kanban techniques will always be ready to
start production.

REFERENCES

https://www.clubensayos.com/Temas-Variados/Sistemas-De-Produccion-
Esbelta-Y-JIT/1152634.html

https://prezi.com/xqowfib_7tfp/unidad-3-sistemas-de-produccion-esbelta-y-
justo-a-tiempo/

http://www.estrucplan.com.ar/Producciones/entrega.asp?IdEntrega=1770

https://www.google.com.mx/?
gfe_rd=cr&ei=GxcGVvw8zMncAaaWo5AI#q=3.3+THE+SYSTEM+PICK+-
+PICK+(PULL)

http://hemaruce.angelfire.com/maesbweb1.pdf

Quantitative methods for business

Barry Render

Pirson Pretince Hall

p.224

Production and Operations Management, Naim Caba Villalobos, Oswaldo

Chamorro Altahona, Tomás José Fontalvo Herrera