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INSY 5800 Midterm Study guide

by: Katy Reynolds

INSY 5800 Midterm Study guide INSY 5800

Marketplace > Auburn University > Industrial Engineering > INSY 5800 > INSY 5800 Midterm Study guide
Katy Reynolds

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This is a study guide for the midterm that I made last year when I was in the
Lean Manufacturing
Tom Devall
Study Guide
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This 18 page Study Guide was uploaded by Katy Reynolds on Wednesday September 28, 2016. The Study Guide belongs to INSY 5800 at Auburn University taught by Tom Devall in Fall 2015. Since its upload, it has received 4 views. For similar materials see Lean Manufacturing in Industrial Engineering at Auburn University.


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Date Created: 09/28/16
Lean Midterm Lecture 1  Stability= predictable Process  Standardization – current state definition of all system elements  Hejunka – scheduling mechanism controlling mix and leveling demand at a single point in process  Kanban – method to allow material pull where one piece flow cannot work. Kanban manages material supermarkets that are installed as a result of the inability to process one piece at a time. Kanban signals build requirements to upstream processes.  Just in Time – only produce what the next process wants when it is wanted in the correct amount.  Jidoka – machines that can detect product defects and halt the process until a fix is made. (automatic loom)  Andon: the ability for an operator to identify deviation from standard (a defect) requires standard response for team  Quality at the source – MO CO MOO- make one check one move one on. Not inspection.  PDCA – (plan do check act) an iteratie four-step management method used in business for the control and continuous improvement of processes and products.  Three building blocks shaping our commitment to continuous improvement o Challenge – long vision o Kaizen – always improving o Genchi Genbutsu – go to the source to find facts to make correct decisions, build consensus and achieve goals  Respect for people o Respect o Team work  The Machine that changed the world o M.I.T. o 5 year study from 80’s to publication in 1990 o 5 million dollars funded by automotive and governments o coined the term “lean: o Womack and Roos  Craft shop  Job shop  Mass production  TPS/Lean  Ford Motor company and the key to their Mass Prod. Success o Interchangeable parts: metal cutting tools, non warping pre- hardened metal. (led to elimination of skilled fitters – the bulk of every assemblers labor force) o Moving conveyor – to bring the car to employees o Specialized and balanced labor o Vertical integration – Ford used wood form wood crates to make charcoal (Kingsford)  Mass Prod. Results o By 1914 93 minutes to assemble a car o Spoke more than 50 languages o By 1920 the price fell from $850 to $300 which is $3,300 in 2005 dollars  Weakness of Mass Prod. o Limited goals o End of line repair o Low employee Morale o Dedicated machines that could produce only one part o Low variety of product o $5 per day wage led to reduced turnover (golden Handcuffs)  GM Alfred Sloan- Perfect Mass Prod o Product variety o Decentralization o Division of professional labor o Standardization of component parts  GM Key Weakness Remains o No improvement of the labor issue o Mass productions is now fully matured yet full of hidden waste o Toyota had made 2685 in 13 years. Ford’s rouge plant made 7000 a day o Toyota almost puts ford out of business with the TPS  Detroit is the arsenal of democracy – franklin Roosevelt o Bombers roll down ford will run number 3 assembly line at one per hour. Lecture 2  Manufacturing system – a relatively complex assembly of physical elements, characterized by parameters which can be measured  In order that the system can be controlled: o The boundaries or constraints of the system must be defined o The systems behavior in terms of its response to excitations or disturbances from the environment must be predictable in terms of its measurable parameters  Rules: laws are used to describe how systems work and generally require a theory which uses equations that describes the behavior of the systems boundaries in terms of its input parameters (No theory...No viable model)  No factories o 1700-1850 o craft/cottage productions  First Factory revolution o Job shop o Water powered machinery o 1850-1920 o American Amory system o Economy of collected processes  Second factory Revolution o Mass Production o 1910-1970 o Ford production system (Flow Shop) o Economy of scale  Third Factory Revolution o Lean Production o 1970-now o TPS o Economy of scope  Time in job shop o Time on the machine  5%  Setup time  14%  Changing tools for diff operations - 17%  Workpiece loading/unloading 17%  Inspecting and deburring  16%  Actual cutting (adding value)  36% o Time spent moving and waiting 95 %  Linked cell manufacturing systems (L-CMS) o Lean Shop o Embodies JIT and Pull Production control (Kanban links) o Quality control and inventory control is integrated o Superior quality and the lowest cost with minimum throughput time(min time as WIP) o Superior quality = six sigma  Little’s Law o WIP = TPT * PR o TPT throughput time o PR output rate o Takt time = 1/PR  Engineers make things  Industrial engineers make things better  Lean Engineers make things better, faster cheaper, in a more green and flexible way Lecture 3  Lean tools o MFG celss o VSM o 5S o SMED o TPM o MMFA o Zero Defects  Six sigma tools o DOE/Taguchi o Gage r&R o Reliability o QFD  Green Engineering Tools o Environmenal design o Risk asalysis o Energy efficient design o Social design o Remanufacturing  IE tools o Prob and stats, Op research, sys simulation, management leadership, prod control, supp. Chain, sys of sys, TQM, TPM, time & motion study  System- an integrated assembly of interacting elements designed to carry out some predetermined function o Assemblage of distinguishable units or elements o Relationships between elements o Goal seeking o Adaptability  Lean production requires o Redesign of final assembly into mixed model to level the demand on the supply chain o Redesign of the subassembly into flexible U-shaped cells o Redesign of the job sop into manufacturing cells o Significant reduction in defect rates, setup times and equipment failures (7 tools: 6 sigma, SMED, TPM) o Focus on labor driven systems and not capacity driven systems o Minimum WIP systems to support maximum flexibility, minimum throughput time, minimum labor, and maximum output rates o Pull versus push production strategies (kanban system) o A relentless and never ending drive to eliminate all forms of waste and variance in the system (5S)  7 tools o Flow diagram o Histogram o paretto chart o scatter diagram o fishbone diagram o run chart o control chart   The critical control functions for manufacturing systems o Production control o Inventory control o Quality control o Machine tool o Maintenance  40 % of the selling price of a product comes from manufacturing cost  5 design rules for lean production o takt time rule o balancing sub-assembly rule o smed rules o knaban rules  Rule one (Takt Time Rule)  Little’s Law Lecture 4  4 terms in Lean Manufacturing o Level o Balance Sequence o Synchronize  Integrate inventory control o Reduce wip o Control and minimize o Expose problems o Continuous improvement  Standard work is comprised of 3 elements o Cycle time (based on takt time) o Sequence of operations o Stock on hand (inventory in the cell)  These three elements are determined by constructing the following documents in the following order  Table of production capacity by process  Standard operations routine sheet  Cell design  Ergonomics in lean production o Less muscular fatigue o Less ctd Hazards o Better man/machine interface o Better interface with system  Home built equipment can offer some unique advantages  The lean management formula for success is to treat the external customers like guests and the internal customers with respect – JT. Black  Lean Manufacturing cells o Flexability o Design manufacturing cells for one piece flow, maintainability, reliability, durability o Quick tooling exchange o Single cycle automatics o Integrated quality – 7 tools, Poka -yokes and decouplers o Design machine for lean cells Lecture 5  Mass Production Issues o Absenteeism – mass production experienced high absenteeism despite wages. Large numbers of replacement workers were required to supplement. o Work Assignment Resrictions – job classification o Move the metal- out the door quality vs. customer quality and build to schedule were primary measures. Mass systems were rife with hidden waste. o Holding back knowledge and effort - a tactic repeatedly noted as a feature of all mass production systems would lead to disaster in ohno’s factory.  Development of TPS o After Toyoda resigned in 49 the company agreed to the following:  Lifetime employment  Wages steeply tied to seniority rather that job function  Wages tied to company profitability through bonus payments o Employees are viewed as fixed assets o Employees agreed to flexibility in work assignments. They also agreed to initiate improvements rather that merely responding to problems o Contrast this role to mass production employees – (compensation, flexibility of work assignments, problem solving skills, value the company places on them) o Toyota’s capital budget could not fund the stamping press methods used by mass producers. o Detroit employed die change specialists. Changeover could take a day. Some presses were dedicated for the life of the product. o The only solution was to develop die changes every tow or three hours vs two or three months o due to production workers being idled by changeover, Ohno decided to deploy the idled workers to perform die changes o ohno perfected quick die change by the 50’s o time reduced from a day to three minutes (SMED) shigeo Shingo o an unexpected outcome was less expense per part than mass production due to  reduced inventory  reduction of in process defects o a skilled and motivated work force was required o traditional mass prod used 20 to 25% of labor for offline repair o Andon cords stop the line and solve problems as they occur. Team leader vs. supervisor o Utilize five why method of resolution – compare to six sigma o Line stops were excessive in the beginning o Toyota became partners with the supply base. Mass pitted suppliers against each other and continuously shopped price. o Mass system created a dis-incentive and or inability to improve cost and quality as design and manufacturing issues were not shared with the supply base. Suppliers could not work with each other to share information to improve related parts and or processes as they were many time competitors and or expendable. Cost advantages by one could eliminate the competitor. Ideas/innovation became secrets. o Ford and GM design most of the 10,000 parts required to build a car. They would then ask suppliers to bud quality and price. o Toyota suppliers organized in tiers  First tier suppliers worked with Toyota on design.  Toyota asked them to work on a design that functioned with the other systems  Suppliers were given certain parameters but left to create the design that would qualify  They were also encouraged to learn from each other.  First tier suppliers did not compete  Second tier suppliers were specialists. They were grouped in associations that were also not competitive with each and encouraged to share information.  Toyota holds an equity stake in their tier 1 suppliers. They share information and help their supply base improve operations. Many of Toyota top managers, not in line for seior positions are given top leadership roles within the tier 1 supply base.  Ohno incorporated kanban material movement through the entire value stream. o Internal engineering management  Mass:  Division of labor for engineers: doesn’t know how to engineer door locks and a career managing door locks. Promotion possible only within that very narrow area of expertise.  Lean:  Created multi-disciplined teams which encompassed all areas including process. Strong leaders regardless of discipline were promoted. o The philosophy and principle of only making what the downstream process requested from the smallest supplier to the final consumer o “ All we are doing is looking at the tme line, from the moment the customer gives an order to the point when we collect the cash. And we are reducing the time line reducing the non-value adding wastes” – Ohno o “All we are really trying to do in lean manufacturing is to get one process to make only what the next process to make only what the next process needs when it needs it. We are trying to link all processes from final consumer back to raw material- in a smooth flow without detours that generates the shortest lead time, highest quality lowest cost” = Womack  Essential lean tools- al fall under respect for people o Jidoka  Andon – stop defect at the statin  Poke yoke- mistake proofing  PFMEA - process failure mode effects analysis o JIT  Value stream mapping  SMED  Kanban  Supermarkets  Heijunka – product mix leveling o Kaizen  Work cell design  Muda  5S, (sort, set in order, shine, standardize, and sustain)  visual factory  seven basic quality tool (95% probs can be solved with 7 tools)  Hoshin Kanri – Policy development o Harbour Hours per Vehicle Competitive Productivity Performance measurement reflects the efficiency of engineering design, manufacturing execution and other functional support, published in the annual harbor report  Prime measure of vehicle build efficiency in the automotive industry o JD power initial quality survey is based upon customer feedback from their experience with the vehicle in the first 90 days. A stat significant number of surveys are sent out to the owners of all vehicle brands and modles. The data is compiled and reported annually.  Prime measure of vehicle quality in the auto industry Lecture 6 – seven wastes  Gemba means “the real place” , “the place where value is created  Muri : overburden excessive stress & strain  Mura : unevenness/ inconsistency (not leveling production)  Muda : broken down into Taiichi Ohno’s 7 wastes o Japanese word meaning “futility: uselessness: idleness o “the most dangerous kind of waste is the waste that we do not recognize” – Shingo  a process adds value by producing goods or providing a service that a customer is willing to pay for  a process consumes resources and waste occurs when more resources are consumed than are necessary to produce the goods or provide the service that the customer actually wants.  Once value-added work has been separated from the waste, then waste can be subdivided into o Needs to be done (auxiliary work) minimize o Pure waste minimize/eliminate  Traditional cost saving focuses only on value adding items  When Is the only time we should take benefit as an improved cost of setup?  If we are not meeting customer demand  Savings should be taken in the form of more frequent changeovers  The 7 wastes (TIM WOOD) o Transportation o Inventory o Motion o Waiting o Over production o Over processing o Defects  Inventory o Costs of the waste of inventory o Inventory hides other kinds if wastes (ship example)  Transportation o Risks  damaged, lost, delayed o It does not transform the product therefore has no value added to the customer  Over processing o Effort which adds no value to the customer o Re-racking of parts instead of supplier providing line side use containers o Measuring all platinum engine components that have already been measured by the supplier  Waiting o Time that is a result of two dependent variables not being synchronized  Defects o Adjustments of a product or service to fulfill customer requirements  Motion o Excess walking, bending, or reaching  Overproduction (Ohno’s number one waste) o Producing when the customer does not want it – think internal o Overproduction and inventory hide hidden waste  Takt time is based on demand and used to determine line cycle time o How often (seconds, minutes) a unit must be produced to meet customer demand  Line cycle time: takt time – overspeed o Overspeed reduces cycle time increasing the operations required  7 wastes plus 4 o equipment  machines are over engineered/capable of too much capability or under utilized o Space utilization  Space used in process that is non-value added o Specification and requirements  Specifications that do not support customer expectations or government requirements o Knowledge of the human infrastructure  Loss of intimate process knowledge. Unable to mine the gold nuggets.  How do we begin to eliminate wastes?  KAIZEN Lecture 7 – takt time & cycle time  Takt time – the leveled rate at which the customer pulls production from the plat. Based upon forecasted demand and the operating hours of the forecasted period. o Defines perfect balance, even flow, of the product and the ideal state of synchronization at which all systems and sub-systems should function. Takt rate is the metronome of the shop.  TT = minutes of work per day/ units desired by the customer per day  Cycle time = takt time – allowance  Allowance = 1 – OEE (overall equipment effectiveness)  Allowance = overspeed  Overspeed = Muda or waste  OEE= availability X Performance X Quality o Availability  Operating time / planned production time o Performance  Ideal cycle time / (operating time/ total pieces) o Quality  Good pieces /total pieces  Line speed Calculation o Benchmark OEE from industry avg = 80.4% (mult by the ideal cycle time) o Planned OEE improvement to meet industry benchmark oee: 2% o 19.6% over speed required o 19.6 % waste required  Direct Labor manpower targets o Direct labor target = hours per vehic;e (HPV) – Harbour Report o Benchmark = 18.5 hours of dir labor to build one unit o We will task the benchmark by.5 hours or 18 hours  Process for defining the work station o Understand 7 wastes to classify elements of labor o Define all elements, NVA and VA for each process o Determine time for each element o Utilize moveable wall chips for line balancing o Create visual line balance wall for each logical work team  Determining element times o Time studies  Prone to error  Has great consequences to error o Predetermined time studies  MODAPTS : used by ford and accepted by UAW  MOST o  Yamazumi process: a visual display of the value added work and the NVA or opportunities for improvement activities of an operation/team displayed on a large wall.  Utililization : Elimination of waste or MUDA o Waste in the form of motion and waiting  Efficiency: drives the elimination of labor by combining both VA and NVA work  Improved productivity is achieved by reducing overspeed and improving line balance Lecture 8 – current state VSM  Mass production culture o The more and aster you produce the cheaper it is to produce  Lean culture o The more you reduce lead time and increase flexibility, the cheaper it is to produce  Value stream mapping o A systems approach to lean transformation o A visual view of the process that clearly identifies waste in system o All the actins (VA and NVA) currently required to bring a product through the main flows essential to every product o The scope of this material is from the receiving dock to shipping. This methodology can be expanded throughout the entire supply chain.  Creating a current State VSM o Always collect the current state information while walking along the pathways of material and information flows yourself o Begin with a quick walk among the entire door to door value stream o Begin at shipping end and work upstream o Bring your stopwatch and do not rely on standard times or information that you do not personally obtain o Map the whole value stream yourself o Always draw by hand in pencil o Current state and future state maps should be complete in two days  Cycle Time (C/T) o How often a process, as timed by observation, actually completes a part or product. Also, the time it takes an operator to go though all of their work elements before repeating them. Both value and non-value added time.  Lead time (L/T) o The time it takes one piece to move all the way through a value stream, from start to finish. Envision timing A marked part as it moves from beginning to end through the WIP First in First Out  EPEx = Every Part Every X o EPE (product Batch size) o Every part refers to every unique part. In the case of our lab, we have two unique parts: A speedster and a SUV o Defines batch size o 1 piece flow = EPE1anything EPEx over x = 1 means we must batch. We can still implement a pull system with minimally defined supermarkets which are continuously challenged.  Information of what to build is not coming from the customer. The customer being the next process in the flow  Imagine the final customer making a request for part A setting off a chain reaction through the entire supply chain to replenish part A  MRP (materials requirements planning) generates a schedule for each process based upon a multitude of variables that are typical invalid when the schedule is generated and certainly as things change  Producing faster than takt rate simply moves work in process inventory from one pile to the next. The lead time measure is not complete until the part is shipped.  Lead time calculation assumes first in first out (FIFO) material flow – why  In represents the tru time a part entering the system takes to flow through all work in process inventory to shipment, The delay resulting from the excess inventory represents the waste in the system  Value stream mapping is our standard metric to measure the waste in the system which hinders flexibility and delays product shipping to the customer  With just in case inventory we fail to remove the rocks no need to improve  Overproduction o Batches of parts must be stored, requiring storage space o Handled, requiring people and equipment o Quality issues requiring material to be sorted and reworked o Extra operators and equipment capacity because you are using some of your labor and equipment to produce parts that are not yet needed o It also lengthens lead time, which impairs your flexibility to respond to customer requirements Lecture 9 – SMED  Changes for smed o Manpower added o Product design o Tools improved o Work standard refined to include every detail o Methods highly procaticed o People  Sakichi Toyoda o Inventor/ industrialist o Father of Japanese industrial revolution o Founder of Toyoda loom works, Toyota Industries Co. o Inventor of the automatic power loom  jidoka o Developed the 5 whys technique “basis of toyota’s scientific approach” –Ohno  Kiichiro Toyoda o Founder Toyota group 1937 o Implemented chain driven assembly line o Initial efforts for JIT flow of material  Eiji Toyoda o Credited with JIT and Jidoka implementation  Taiichi Ohno o Exec vice president o Father of the Toyota production system o Defined the 7 wastes – MUDA o Refined JIT material flow with Kanban. Inspired by methods used in American supermarkets. o Refined Jidoka methods by adding andon  Shigeo Shingo o Developed SMED o Refined error proofing strategies Poke Yoke o Taiichi Ohno’s industrial engineer consultant  Masaaki Imai o Management guru, kaizen pioneer, founder of kaizen institute


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