Lean

Production
Principles

J J SHRIKHANDE 1
This Photo by Unknown Author is licensed under CC BY-SA-NC
 Five Lean Principles
Lean Enterprise
Raw Tier 2 Tier 1 General Customer
Materials Suppliers Suppliers Electric

LEAN OFFICE

LEAN ENTERPRISE

Lean Enterprise: Maximizing Value Wing to Wing

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 Five Lean Principles

Lean Thinking
The Fundamental Objective The Fundamental Insight

Provide perfect value to the customer  Focus on each product and its value
through a perfect value creation stream rather than organizations,
process with zero waste in: assets, process technologies, and
career paths
 Design (concept to customer)
 Ask which activities are waste and
 Build (order to delivery) which truly create value
 Service (order to cash)  Enhance value & eliminate waste

Lean: Fundamentally Change how we do business

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 Five Lean Principles
Define value in from the 1 2 Map all of the steps…value
customers perspective and Specify Value Map the added & non-value added…
express value in terms of a Value Stream that bring a product of service
specific product to the customer

3
5 Establish Flow
Work to
Perfection
The complete elimination of The continuous movement of
waste so all activities create products, services and
value for the customer information from end to end
through the process
4
Implement
Pull
Nothing is done by the upstream process
until the downstream customer signals the
need

The Tools get you there…The Principles keep you there

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 1. Specify Value Five Lean Principles
A capability provided to a customer at the right time at an appropriate
price, as defined in each case by the customer.

 Specify value from the standpoint of the Waste:

end customer  Activities that add no
value, add cost and time
 Ask how your current products/services
and processes disappoint your  Symptoms; need to find
customer’s value expectation: root causes and eliminate
them
 price?  8 types of waste

 quality?
 reliable delivery? Incidental
Work
Pure Waste
 rapid response to changing needs?
 fundamental definition of the product?
•Pure Waste
Value

This Photo by Unknown Typical Operation: 1-10% Activities are Value Adding
Author is licensed under
CC BY-SA

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2. Map the Five Lean Principles
Value Stream “Whenever there is a product or service for a customer, there is a value
stream. The challenge lies in seeing it.”
(Womack, Learning To See)

 Identify all of the steps currently Value stream

required All activities, both value added and non-
to move products from order to value added, required to bring a product
delivery (or provide a capability) from raw
 Challenge every step: Why is this material (initialization) into the arm of
necessary? Would the customer the customer
think the product is worth less if this 3 Main Value Streams:
step could be left out?
1. Raw material to customer
 Many steps are only necessary
because of the way firms are 2. Concept to launch
organized and previous decisions 3. Order to cash
about assets and technologies
This Photo by Unknown Author is licensed under CC BY

Mapping the VS – See the whole and improve the system

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 Five Lean Principles

3. Establish Flow Line up all steps that truly create value in a rapid sequence
 Continuous movement of products,  Require that every step in the process be:
services and information through the
various transactions from end to end  Capable – right every time (6 Sigma)
in the process
 Available – always able to run (TPM)
 Flow appears impractical and
illogical because we have been  Adequate – with capacity to avoid bottlenecks and
trained to think in terms of: over capitalization (right-sized tools)
 departments, silos
 batches, queues
 efficiencies and backlogs

Batch Processing – 1 minute per piece Continuous Flow – Make One Move One

A B C A B C
Cycle Time= 30++ Min (weeks) Cycle Time= 12 Min

Applying the right tools at the right stage

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 Five Lean Principles
4. Implement Pull Nothing is done downstream until required upstream

 A system of cascading production  Through lead time compression & correct

and delivery instructions in which value specification, let customers get
nothing is done by the upstream exactly what’s wanted exactly when it’s
supplier until the downstream wanted:
customer signals the need
 At the pull of the customer/next
process
 Using signals (kanbans)

One more
Okay
please!

supplier customer

Pull: Customer Centric

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 5. Work to Perfection Five Lean Principles
A continual cycle of process improvements

 There is always more waste

 People learn and exercise more creativity
 Involve employees in the process, training them
as you proceed.
 Continuous improvement leads to innovation
Next Future State
 Use root cause analysis to solve problems
promptly and permanently.
 Make objectives visible

Future State

Current State
Original State

This Photo by Unknown Author is licensed under

CC BY-SA Continuous Improvement never stops

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Work Place Organization

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 To Be Ordered
Tool and WIP Board
Spec Card

In Process

Next Run

Maintenance Log
&
Maintenance
Request Forms

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Organize & Demand the Maintenance of Tools

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Everything has a Dedicated Home
Operating Room Orderliness
A place for everything and everything in
its place, clean and ready for use

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 Paper Kaizen
First analyze the Total Work Content, and design improvement on paper …

Current Improved
K
Paper Kaizen
240 Approach of immediately leaving
Total Work Content for one item
in the cell are activities A-K. out wasteful steps. You eliminate
some waste on paper before
210
implementation.
J
I K
180
H
Time

First understand all

150
G the work elements
F that make the total
I
work (Current)…
120
H
G Paper Kaizen
90 E F • Elimination: C and J
…then have a critical • Time reduction: A and F
D look on the work
60 C elements and design E
improvement on
B paper (Improved) to D
reduce wastes.
30 B

A A

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 Operator Balance Chart
… then connect to Takt TIme.

Operator Balance Chart (OBC)

210 Takt Time
205 sec. Picture of distribution of work among
180
K operators in relation to Takt Time.
• Simple
150 • Visual
I • Quantative
120
H Takt Time
• No guesswork
G 110 sec.
90 F F K Takt Time
82 sec.
60 E E E K
D D D H
I G
30 B B B
H F
I
0 A A G A
1 1 2 1 2 3 = Operator

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Is your System suitable for flow?

Is your system able to handle the Takt Time?

If a System (or Machine) is

Effective System Cycle Time < (Fastest Takt Time –
part of Continuous Flow Cell, 20-25%)
you should make sure it is • Fluctuation in demand
appropriate enough for • Equipment is often less flexible than people
handling the Flow.

Also ask the follow questions about your System:

Valuable? - Does the System add value? • Is it working in batch or
single piece?
Capable? - Does the System create no defects?
• Easy to replace (price)?
Available? - Is the System always available when needed? • Easy to maintain?
Adequate? - Is the System not a bottleneck for the flow?•
Easy to use?
Flexible? - Is the System flexible to adjust for changes?
• Is it optimal design to
support continuous flow?

Should you have one integrated system, or different small systems connected by a simple workflow tool?

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 Is your item ideally designed for flow?
Are your items optimal designed for creating continuous flow?

• How is the item presented in an easy, simplified, proper way?

• Are there any changes you can make on the item, so it takes less
time for the operator to process?
• Are the items easy accessible, at their fingertips?

Ideally for a process For example

• with high volume, low variety • Pay-roll
• Policy request processing
This Photo by Unknown Author is licensed under CC BY • with high frequency of use
• Customer Service Centers
• with stable input

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 Office Cell Layout

Cellular environment is an area of continuous flow.

Physical… • Multi-functional
• Co-located
• One piece flow
• Balanced – waste removed
• Cross trained team
Incoming
• Staffed within the ‘interval’
Forms Out • Standard work

… or Digital
A cell can also be designed digital. Think of setting operators work
in a flow by aligning systems.
Workflow IT can help to let differ systems work together in a flow.

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 How to use your operators efficiently?

Total Work Content (after paper Kaizen)

Number of operators:
Takt Time – buffer for variance
Example 134
= 3.2 operators
45 - 3
Lean Option
Option A Option B • Maximize operator work.
Balance the line Lean Option • Let Op. 4 do other things
Takt Time
45 sec.
45
Buffer for variance
Continuous Improving
30
• More variance reduction,
15
reduces buffer.
• Eliminate by reducing
0 more waste.
1 2 3 4 1 2 3 4

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 How will you distribute the work?

What is the optimal way of distribution the work?

There are a lot of way
to distribute the work Specialize Do it all
among operators,
75
here two examples: 2x Takt Time
How will you design 60
that in your physical H H
or digital layout. G G
F F 45
Takt Time 38 sec.

E E E 30

D H D D
B G B B 15
F
A A A 0
Incoming 1 2 1 2
Forms Out

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 Implementation Stages

Implementing the Flow consists of four stages:

1. Initial Process Design
2. Mock-up
3. Debugging (!)
4. Sustaining the Flow

Process associate
involvement
Paper Kaizen & Initial Mock-up Debugging Sustaining
Process Design
½-2 days 2-4 weeks

Avoid making things permanent, until stage 4,

because it is a real learning-by-doing implementation.

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 Basic Elements – Visual Management
Easy means can show us important information !
 
Traffic Light Systems Machine Conditions

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 Replacement Part
Kanban Maintenance

Addresses
01/10/2022 System Development and Monitoring
 Establish Method of Ordering
and
Tracking Replacement Parts

01/10/2022 System Development and Monitoring

 Visual Control of Seasonal Inventory

01/10/2022 System Development and Monitoring

 Visual scheduling boards

01/10/2022 System Development and Monitoring

 Visual Management Overview
Why Visual Management ….

• Demonstrate how we manage our processes …Consistent Communication

• Excite customers/ stakeholders walking the floor … Visual Management

• Transparent view of Performance … Shared Ownership

• Escalate abnormalities … Quicker Resolution

• Decision making @ working level … Empowerment

• Showcase Successes … Create a sense of Pride

Seeing is Believing

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 Andon Boards
Andon  
• Andon approach is built with a view to alert the errors that are about to occur, and stop the
execution immediately. 
• It focuses on developing processes, or services, or products that not just detect and alert, but
also stop the processes whenever any error is about to happen so that prompt action can be
taken either manually or automatically to prevent an error from proceeding further. 
• The major challenge in this approach lies in anticipating error conditions, and errors accurately,
and implementing mechanisms that detect, alert, and stop whenever either the error conditions,
or the errors, or both are about to occur. 
• Hence, this approach incorporates monitoring, alerting, and stopping actions into the process,
or service, or product design. 
• An excellent example for the Andon approach would be any assembly line where the assembly
line is automatically stopped upon detection of an error or error condition.

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Introduction to Single-Piece-Flow
(Continuous Flow)

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 Single-Piece-Flow in a Cell

Single-Piece-Flow A B C
Carrying out one-piece-at-a-time
processing in order to eliminate
stagnation of work (queue) in and
between processing steps. A B C

• Cell Physical Cell

• An arrangement of people, systems, items,

and methods with the processing steps placed
right next to each other (physically or digitally)
in sequential order, through which parts are Incoming Output
processed in a continuous flow. Forms

Digital Cell

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 Batch Vs Single Piece Flow

Batch Single Piece Flow

From: The Toyota Production System

Catches Defects too Late Catches Defects Immediately

• How many more do you have? • You only have one
• Where are they in the process? • You know where it occurred
• What is the root cause? • Resolve the root cause immediately

The Next Process is the Customer … Never Send Defects !

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 Why Use Single Piece Flow ?

CTQ Batch Single Piece

Production Flow
Quality Risk L J
WIP L J
FIFO K J
Lead time L J
Productivity * J K
Changeover time ** J L

• * Single Piece Flow productivity can be improved by balancing processes versus

Takt Time
• ** Changeover time impact can be reduced by SMED or reducing changeover
frequency, but, in this case, by increasing finished goods inventory.

Single piece flow is always better with respect to FIFO

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 Where to start?

Creating Single-piece-flow Prerequisites

1st time
Value Stream A. Value Stream Mapping
Mapping
Process See the flow
ProcessLevel
Level

Single
SingleFacility
Facility
(door-to-door)
(door-to-door)

Multiple
Multiple
Service
ServiceFacilities
Facilities

Across
B. An (potential) area for
AcrossCompanies
Companies
Cell

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 Which process area?

Supplier = Customer ?

Yes
A main characteristic for office processes is that the customer of the process is often the
supplier of the needed information for doing the whole value stream, as well. Therefore,
the customer often has to wait for the whole lead time of the process.
Start within the area with the
biggest potential of lead-time reduction.

No
Start with the pace-maker process.
That are the process steps in the value stream
that are closed to the customer.

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 Roadmap - Creating Continuous Flow

1. Cell Content
Start looking at what items you should have in the cell.
2. Actual Work
Then analyze actual work to be done in the cell.
3. System, Item, and Lay-out
Optimize System, Item, and Cell Lay-out for creating continuous flow.
4. Work Distribution Going to reduce waste out
Distribute the Work among the People of:
• Steps
5. Implement, Sustain, and Improve • People activities
Actual implementation of Continuous Flow in a Cell • System activities
• Item design
• Lay-out

We are going to look at the cell with Eyes for Flow

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 Questions for Creating Continuous Flow
Key questions
Cell Content
• Do you have the right end items?
• What is the Takt Time?
Actual Work
• What are the work elements necessary to make one piece?
• What is the actual time required for each work element?
System, Item and Layout for Flow
• Is your System suitable for flow?
• Is your item design for optimal continuous flow?
• How can the process be laid out so one person can make one piece as efficiently
as possible?
Work Distribution
• How to use your people efficiently?
• How will you distribute the work among the people?

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 Do you have the right items?

Think carefully about assigning right items to your cell.

Here are some guidelines:

1. Flexibility
Cell for multiple items
+ More flexible for
changing demand
+ Pushes you to create
short changeover time
Cells for one item (waste reduction) Cells for multiple items

A B A&B A&B

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 Identify Items for cell

Start with the product or service, that is the customer’s only interest in GE.
To simplify, identify the product/service families:
A group of products/service that go through the same or similar ‘downstream’ steps.

Process Steps & Equipment

Map together in one
1 2 3 4 5 6 7 Value Stream Map.

A X X X X X
B X X X X X
Item

C X X X After analyzing, you

might come up with the
conclusion to have step
5, 6 and 7 in one cell.
2. Similarity of processing steps
When required steps of the different products vary too much, then separate cells.
For example, item C does not look to be suitable for the cell.

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 Do you have the right items?

3. Variance of different product types

Time
Max. ~ 30%
Total Work Content (see also next section) of the
product going through the cell should not variance
more than 30%, otherwise take them apart.
A B

4. Takt Time (production pace)

Purpose: Match Customer Demand Pace with Production Pace

How often should we finish an item to serve the customer on time?

TAKT time: Available Time

It’s the heartbeat of the process
Required Output
(Customer Demand)

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 What are the Work Elements? (for making one piece)

Work element
‘smallest increment of work done by a person (not a system)
that could be moved to another person’

Each process consist of a series of work elements. By collecting all the

work elements in the cell, you get the total work content of the cell.

Calculate the actual work by using a Process Study Form

Guidelines
• Get REAL data, do not rely on standard time or data from the past. Get it yourself.
• Time each work element seperately, otherwise you can include waste. Once timed individual
elements then time operator’s complete cycle from start to finish. Compare to see the waste.
• Time an experienced operator who is fully qualified to perform the job.
• Seperate operator work time from system cycle time.

Breaking work in elements helps you to expose and identify waste

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Process Study Form

Process Observer Date/Time

Process Study
Process Steps Operator
Low est System
Work Element Observed times Repeatable Cycle Time Notes

me nts
e
o rk e l
s a sw
sw aste
i ou
ny obv
d ea
t in clu
Do no

Full Process Study Template

Use this Template

Microsoft Excel
Worksheet
Introduction to Pull Production

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 What Is a Pull System ?

A system in which each process takes what it needs from the preceding
process when it needs it and in the exact amount needed.
• Employs a variety of visual signaling devices and uses the concept of
Kanban
• Just-in-time focused
• Controls production system and limits inventory
• Simplifies or eliminates documentation

Customer pulls the flow

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 What Is a Push System ?

A system in which products are pushed through production or

distribution, based on a schedule.
• “Ready or not, here I come!”
• Products are produced only when scheduled
• Assumes receiving work centers will be ready for the products
when they arrive
• Output continues without regard to actual downstream needs
• Response is delayed and the system disrupted due to short-
interval changes

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 Differences Between Push & Pull

• Planning
• Push: Work is completed based on a planning system
• Pull: Work is completed based on authorization from
downstream users

• Work Authorization
• Push: Work is immediately sent to downstream user upon
completion
• Pull: Work is not forwarded to next operation until requested

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 Why Use Pull ?

A conventional system, based on a schedule, generates unneeded

inventory (overproduction) because true customer needs never fit
perfectly with schedule. For the same reason, it can also generate
shortages.

Schedule :

Customer need :

Inventory :

SHORTAGE SHORTAGE

Pull ensures best inventory control with high customer satisfaction

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 Why Use Pull ?
Conventional ‘Push’ system : WIP = ?

PROCESS #1 PROCESS #2 PROCESS #3

Breakdown

Yield=2/h Yield=1/h Yield=2/h

RAW MATERIAL WORK IN PROCESS FINISHED GOODS

Pull System : Standard WIP = 3

PROCESS #1 PROCESS #2 PROCESS #3

Breakdown

Yield=2/h Yield=1/h Yield=2/h

RAW MATERIAL WORK IN PROCESS FINISHED GOODS

Pull improves work in process management

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 Pull Characteristics

• Standardized application
• Visibility
• Simplicity
• Standard lot sizes
• Discipline
• Versatility/Flexibility

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 How does Pull work ?
Legend
Supermarket
END CUSTOMER

Material
Information
2
1
1 Sequence / Timing

9
2nd LEVEL
SUPPLIER
10

1st LEVEL SUPPLIER 9

2nd LEVEL
SUPPLIER
10

PROCESS #3 PROCESS #2 PROCESS #1

3 4 5 9
2nd LEVEL
SUPPLIER
8 7 6 10

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 How does Pull work ?

Min/Max is the most often used methodology to manage

supermarket/buffer inventory level.

Max>
Pull
Pull Replenish
Pull
Min>

High performance companies use Kanban to communicate

needs to preceding process.

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 Heijunka

Heijunka is the foundation of the Toyota Production system, and is the process of
leveling and sequencing an operation.
There are three main elements of Heijunka…

1. Leveling: Overall leveling of a process to reduce variation in output

2. Sequencing: Managing the order in which work is processed (Mixed Production)

3. Stability or Standard Work: Reduce process variation

Toyota
Customer Demand Leveling
Production System

Heijunka

Just-in-Time

Jidoka
Heijunka

Reduction in variation experienced by the customer

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 Kanban
A Kanban is a signal used by a downstream operation
to request a material replenishment
Kanban

Supplying
Supplying Using
Using
Process
Process Process
Process

Required
Part/ material

Cards

Bins

Carts

Labels

Kanbans are used to signal the supplying process that more material is
needed

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 Cellular Manufacturing
One Piece Flow for Work teams

Basic Elements of Cell Design

 Overview
• Phase 1 – Understanding the Current Conditions
• Collect Product and Production Data
• Document Current Layout and Flow
• Time the Process
• Calculate Process Capacity and Takt Time
• Create Standard Work Combination Sheets
• Phase 2 – Converting to a Process-Based Layout
• Evaluate the Options
• Plan Possible New Layouts
• Move the Machines
• Document the New Operating Procedures
• Test to Confirm Improvement
• Phase 3 – Continuously Improving the Process
• Shorten Cycle Times
• Shorten Changeover Times
• Eliminate Product Defects
• Reduce Equipment Failures
• Summary
Converting Work Area into A Manufacturing Cell

• Understanding the current conditions

• Converting to a process-based layout

• Continuously improving the process

 Phase 1: Understanding the Current Conditions
Helps the conversion team determine what process to convert, and a base line to measure
improvement.
• Collect Product Data and Production Data
• Product mix
• Production resources (shifts, hours, employees, volume)
• Document Current Layout and Flow
• Process Route Analysis: helps to identify processing similarities between different products
and groups of products that could be made in a cell.
• Process Mapping
• Time The Process: Determine the value-added ratio. The value-added ratio is the time spent
actually machining or working on the product divided by the total process lead time.
• Calculate Process Capacity and Takt Time
• Create Standard Work Combination Sheet
 Document the Current Process
Create Standard Work Combination Chart:

• Graphical display for each operation in the process.

• Depict the relationship between manual work time, machine work
time, and walking time for each step in an operation as well as the
non-cyclical time.
• Draw a solid line to indicate the Takt time.
Standard Work Combination Table - Definition

The Standard Work Combination Table combines human

movement and machine movement based on takt time and is

used as a tool to determine the range of work and work

sequence for which a team member is responsible.

 Human work and Machine work
• The key notion (idea) for the elimination of waste and the effective combination of work on the
shop floor is the separation of machine work and human work.

• When we observe the work in which operators handle machinery, then that work can be
classified into machine or human work.

• Understanding the separation of human and machine work is the basis for understanding the
interface between these two elements.

• If operators are merely observing the machine working then this is the waste of “Waiting” and
should be eliminated.
 Human work

This refers to work that cannot be completed without human effort. For example,

• Picking up materials

• Putting materials onto a machine

• Operating the controls of a machine

 Machine work

This refers to work or incidental work that equipment, which has been started by
human hand, automatically performs operations.

• Milling

• Auto riveting / bolting

• Auto inspection
 Standard Symbols

The four basic symbols used in Standard work combination

tables are:

Manual
Automatic
Walking
Waiting
 HOW TO DISPLAY WORK ON THE
STANDARDISED WORK COMBINATION TABLE
Manual Work

Takt
Walk Time
Automatic Cycle

Wait
 HOW TO DISPLAY WORK ON THE
STANDARDISED WORK COMBINATION TABLE

Returning to
the same process.
TT

2,4

3,5
 Issue date 30/09/99

Part Number / Name STANDARDISED WORK COMBINATION TABLE Manual

123ABC / Widget LH Qty / shift: 169 Group Leader Automatic
Process Machine and sub Takt Time:162 Walking
Available time:480’ Supervisor
assembly Cycle time Department: Machine Prod/Engineer Waiting
WORK TIME OPERATING TIME IN MINUTES CT TT
SEQ’ OPERATION 5 15 25 35 45 55 65 75 85 95 105 115 125 135 145 155
MAN AUTO WALK 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160
1 Select part A 2
3
2 Set into M/C 1 10
3 Start machine 1 84
2
4 Select part B 2
2
5 Set into jig 9
3
6 Select part C 2
3
7 Fit C to B 15
3
8 Set C/B to m/c 2 11
9 Start m/c 1 41
2
10 Remove A from m/c 1 5
3
11 Set A to jig 7
3
12 Remove C/B from m/c 5
3
13 Screw C/B to A 15
14 Check torque 8
2
15 Put in finished bin 2
5

Operator 129
TOTALS 95 125 34 Wait time 33
 Phase 2: Converting to a Process-Based Layout
• Evaluate the Options: how to improve the four basic element of production:
• Methods
• Machines
• Materials
• People
• Plan Possible New Layouts
• Layout in the process steps is the basic principle
• Machines placed close together
• U or C shape
• Often Counterclockwise (R/H next to machine)
• Move the Machines
• Document the New Operating Procedures
• Test to Confirm Improvement
 Phase 3: Continuously Improving the Process
• Rearranging the layout into a manufacturing cell is not really an end point - it is the beginning
of continuous improvement

• Look for problems that keeps the process from flowing:

• Long cycle times
• Product defects
• Long changeover times
• Equipment failures

• Shorten Cycle Times

 Phase 3: Continuously Improving the Process…
• Shorten Changeover Times
Single minute exchange of die (SMED) approach gives a three stage system for shortening setup:

1. Separate Internal and External Setup (can reduce setup time by 30-50 %)
• Internal setup refers to setup operations that can be done only with the equipment stopped
• External setup can be done while the machine is working

Typical activities include:

• Transporting all necessary tools and parts to the machine while it is still running the previous job
• Confirming the function of exchangeable parts before stopping the machine for changeover

2. Convert Internal Setup to External Setup

• Standardized functions such as die height to eliminate the need for adjustments.
• Using devises that automatically position the parts without measurement
 Phase 3: Continuously Improving the Process…
3. Streamline All Aspects of Setup
• Using parallel operations, with two or more people working simultaneously
• Using functional clamps instead of nuts and bolts
• Using numerical setting to eliminate trial and error adjustments

• Eliminate Product Defects

• Mistake proofing/Zero Quality Control (ZQC)- zero defects

• Reduce Equipment Failure

• Total Productive Maintenance (TPM): is a comprehensive, company-wide approach for reducing
equipment related losses such as downtime, speed reduction, and defects by stabilizing and improving
equipment conditions.
 Summary

• Phase 1 – Understanding the Current Conditions

• Collect Product and Production Data
• Document Current Layout and Flow
• Time the Process
• Calculate Process Capacity and Takt Time
• Create Standard Work Combination Sheets
• Phase 2 – Converting to a Process-Based Layout
• Evaluate the Options
• Plan Possible New Layouts
• Move the Machines
• Document the New Operating Procedures
• Test to Confirm Improvement
• Phase 3 – Continuously Improving the Process
• Shorten Cycle Times
• Shorten Changeover Times
• Eliminate Product Defects
• Reduce Equipment Failures
 CELLULAR LAYOUT ( Group Technology Layout )  

Cellular manufacturing is a type of layout where machines are grouped according to the process requirements for
a set of similar items (part families) that require similar processing. These groups are called cells. Therefore, a
cellular layout is an equipment layout configured to support cellular manufacturing. Processes are grouped into
cells using a technique known as group technology (GT). Group technology involves identifying parts with similar
design characteristics (size, shape, and function) and similar process characteristics type of processing required,
available machinery that performs this type of process, and processing sequence.

Workers in cellular layouts are cross-trained so that they can operate all the equipment within the cell and take
responsibility for its output. Sometimes the cells feed into an assembly line that produces the final product. In
some cases a cell is formed by dedicating certain equipment to the production of a family of parts without actually
moving the equipment into a physical cell these are called virtual or nominal cells. In this way, the firm avoids the
burden of rearranging its current layout. However, physical cells are more common.

Example  : An automated version of cellular manufacturing is the flexible manufacturing system (FMS). With an
FMS, a computer controls the transfer of parts to the various processes, enabling manufacturers to achieve some
of the benefits of product layouts while maintaining the flexibility of small batch production.

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 CELLULAR LAYOUT ( Group Technology Layout )  

Group technology or GT is a manufacturing technique in which parts having similarities in geometry,

manufacturing process and/or functions are manufactured in one location using a small number of machines or
processes. Group technology is based on a general principle that many problems are similar and by grouping
similar problems, a single solution can be found to a set of problems, thus saving time and effort.

The group of similar parts is known as part family and the group of machineries used to process an individual part
family is known as machine cell. It is not necessary for each part of a part family to be processed by every machine
of corresponding machine cell. This type of manufacturing in which a part family is produced by a machine cell is
known as cellular manufacturing. The manufacturing efficiencies are generally increased by employing GT because
the required operations may be confined to only a small cell and thus avoiding the need for transportation of in-
process parts.

Group technology is an approach in which similar parts are identified and grouped together in order to take
advantage of the similarities in design and production. Similarities among parts permit them to be classified into
part families.
 

J J SHRIKHANDE 79
J J SHRIKHANDE 80
J J SHRIKHANDE 81
 Overview
• Working in Teams
• Standardizing Workplace Conditions through 5S
• Using Visual Management for Production Control and Safety
• Performing Autonomous Maintenance Activities
• Using Activity Boards and One-Point Lessons
• Summary
 Working in Teams

• Success depends on teamwork

• In a cell, people work together in new ways

• Several operations are combined in a sequence, and the main job

of the people working in the cell is to maintain a smooth flow
through the operations

• Work must be coordinated

• A group of employees has more creative potential and energy

than any person working on a problem alone
 CELLULAR LAYOUT ( Group Technology Layout )  
Advantages of Group technology
• Short throughput times because machines are closed together.
• Better quality because groups complete parts and the machines are closed together under one foreman.
• Lower material handling costs because machines are closed together under one foreman.
• Better accountability because of machines complete parts. The foreman can be made responsible for costs,
quality, and completion by the due date.
• Training for promotion since GT provides a line of succession because a group is a mini-department.
• Automation GT is the first evolutionary step in automation.
• Reduced set up time since similar parts brought together on the same.
• Morale and job satisfaction since most workers prefer to work in groups.
• The output is improved due to improved resource utilisation.
• Work in progress and finished stock levels are reduced.
• Simplified estimating, accounting and work management.
• Improved plant replacement decisions, and.
• Improved job satisfaction, morale, and communication.
J J SHRIKHANDE 84
 Standardizing Workplace Conditions through 5S

• Cellular manufacturing cannot succeed in a workplace that is cluttered, disorganized or dirty

• Establishing basic workplace conditions is essential in creating a manufacturing cell

• The 5S system is a set of five basic principles that have names beginning with S:
• Sort
• Set in Order
• Shine
• Standardize
• Sustain
 Using Visual Management for Production
Control and Safety
• Visual management is an important support for cellular manufacturing

• Visual management techniques express information in a way that can be understood quickly by
everyone

• Sharing information through visual tools helps keep production running smoothly and safely

• One form of visual management in manufacturing cells is the Andon system:

• Individual machines or assembly stations are equipped with call lamps
• If the machine breaks down or run out of parts, the operator or the machine turns on a light
to call attention
 Using Visual Management for Production Control and Safety

• Visual location indicators help keep order in the workplace

• Lines, labels, and signboards

• Visual information can also prevent to make mistakes

• Color coding
• Matching color marks
 Performing Autonomous Maintenance Activities
• Activities carried out by shop-floor teams in cooperation with maintenance staff

• Element of Total Productive Maintenance (TPM)

• Changes old view that operators just run machines and maintenance people just
fix them

• Operators learn how to clean the equipment daily and how to inspect it for
trouble signs as they clean

• Learn the equipment and assist with repairs

• Team-based activity: work with maintenance technicians and engineer

 Using Activity Boards and One-point Lessons
Two useful approaches for making information public
• A bulletin board or wall chart
• Displays information about team activities and the results achieved
• Chart improvement measures such as quality rate, On Time Delivery, Overtime, Takt
Rate, etc.
• Helps keeping track of issues to follow up in the future

• A one-point lesson
• An easy to read poster to teach others about a particular problem
• An improvement example, or
• Basic knowledge that everyone should have
• Kept short and focused on one point
• Often illustrated with photos or drawings
 Summary

• Working in Teams
• Standardizing Workplace Conditions through 5S
• Using Visual Management for Production Control and Safety
• Performing Autonomous Maintenance Activities
• Using Activity Boards and One-Point Lessons