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Lean- automobile
- 1. LEAN PRACTICES AUTOMOBILE INDUSTRY SUBMITTED BY: AMALESH DEKA RAJEEV SHARAN ALOK LIEVENS DFT (AP-08)/ NIFT BANGALORE
- 2. Introduction- Lean The purpose of lean is to remove all forms of waste from the value stream. – Waste includes cycle time, labor, materials, and energy. The chief obstacle is the fact that waste often hides in plain sight, or is built into activities.
- 3. Benefits • Lean manufacturing delivers an insurmountable competitive advantage over competitors who don't use it effectively.
- 4. Benefits (1) Lower production cost higher profits and wages – Cost avoidance flows directly to the bottom line. (2) Supports ISO 14001 and "green" manufacturing – Reduction of material waste and associated disposal costs higher profits (3) Shorter cycle times: make-to-order vs. make- to-stock
- 5. Bottom Line and the Language of Money The first comprehensive implementation of lean manufacturing yielded: – Stock appreciation of 63 percent per year, for 16 years (not counting dividends) – 7.2 percent annual wage growth
- 6. Implementation of fundamental lean principles at Automobile Industry
- 7. Lean Implementation at Toyota’s Existing Supply Chain and Customer Responsiveness Initiatives
- 8. Enterprise Resource Planning System (ERP)
- 9. Enterprise Resource Planning System (ERP) SAP Automotive ERP Suit Main means of information flow between Toyota and its counterparts worldwide. Tighter collaboration links With SAP, gain: – Outstanding strategic, – Operational, – Financial, – Marketing positions
- 10. E-Marketplace iStarXchange Initiative with i2 Technologies Inc. Allow subscripted members able to view a single catalogue to: – view information on parts – checking the prices and availability – conduct transaction online – forecasting supply and demand – delivery cycle Improved forecasting Enhancing the planning Enhance deployment and replenishment of the inventory
- 11. Trade Matrix system Initiative with i2 Technologies Inc Automates with equipment manufacturer and suppliers in terms of : – site’s inventory management – warehousing – Logistic and shipping
- 12. Main SAP Automotive Suit ERP System Main means of information flow between Toyota Australia and its counterparts worldwide. Tighter collaboration links between TMCA and TMC – Logistic and shipping – Overall Value Chain
- 13. BEA Web-logic Integration 8.1 Integrated within the SAP automotive suit Main IT Backbone of TMCA Based on Open Standard Allow connection to their numerous partners in the value chain via an assortment of systems in Australia Integrate the systems and processes that connects Toyota Australia and its trading partners
- 14. BEA Web-logic Integration 8.1 Functions: – Electronic proof of delivery – Online accounts payable status for suppliers – Fleet management integration – The Toyota Vehicle Order Processing System (TVOPS) – Advance Shipping Notice for vehicle deliveries – Vehicles inventory synchronization
- 15. BEA Web-logic Integration 8.1 Customized BEA Application
- 16. SAP International collaboration Raw Material Suppliers End Customer SAP/BEA Dealers 1st Tier/ 2nd Tier Suppliers Manufacturing Warehouse/ Plants Parts Centers
- 17. Electronic “Kanban”-Card System Identical in function to the physical “kanban” cards used by Toyota in Japan 4 main purpose: – Sole means of requesting new parts – Send for every order shipment – Send to a specific supplier plant – Establishing the mix and volume criteria for assessing if an order was correct
- 18. Electronic “Kanban”-Card System “Kanban”= Card (Japanese)
- 19. Electronic “Kanban”-Card System PARTS TOYOTA S UPPLIER (TMCA) Ma te ri a l Re qu i re m e n ts Fo rca s t O rde rs Pl a n n i n g ANS I X1 2 8 3 0 Pl a n n i n g Fo re ca s ts Ka n ba n s De l i ve ry Do ck e t Ka n ba n S o rti n g Pro du cti o n Li n e De s pa tch i n g G o o ds Ka n ba n s De l i ve ry Do ck e t Re ce i vi n g Acco u n ts Re m i tta n ce Advi ce Acco u n ts Re ce i va bl e EDIFAC T REMADV Pa y a bl e EFT EFT BANKING S YS TEM
- 20. Australian Automotive Network eXchange (AANX) Four major car manufacturers in Australia are involved Numerous service providers and non-key suppliers Provides IP based Extranets for the automotive industry in Australia Operates as a virtual point network (VPN) Allows users to send date to each other in a reliable and secure manner
- 21. Australian Automotive Network eXchange (AANX) Main components: – A network that is based on available Internet technology – Operated by agreed and standardized service levels. – Demonstrating proactive management of trading partner connections – Practice the best standard of security and privacy for transactions and interoperability between service providers
- 22. Australian Automotive Network eXchange (AANX) Software Gateway Router Dialup trading Trading Partner Partner Permanent Connection IBM Laptop Firewall Hardware Compatible Computer Gateway Modem Modem Equant Connect Exchange Point Permanent Connection AANXO Monitor CASP Trading Keytrust Partner Router Hardware Community Firewall Gateway Directory & Authentication AANX Framework
- 23. Supplier Website Toyota Supplier.com – www.toyotasupplier.com TMCA focused on core competencies in – high-end design – engineering and – system integration Toyota Australia needs highly focused core competency oriented suppliers.
- 24. Supplier Website Small and diverse companies though have the ability to display such potential to add – Innovation – Flexibility and – Strength to TMCA’s supply base. Supplier-centric web site – Provide opportunities to expand TMCA supplier network.
- 25. Supplier Website Access Flow From Toyota Australia Suppliers web site
- 26. Agent Oriented Domestic Marketplace Will be able to support a broader base of services given further growth in e-Market infrastructure Baseline interaction and directory services Specialty market services, such as: – Dynamic trading; – Cooperative supply chain integration and management Enables and facilitates the relationship between business participants – Suppliers and service providers; and – Supporting systems
- 27. Agent Oriented Domestic Marketplace Many-to-many relationships supported between TMCA and these business partners. Enables both TMCA and suppliers to leverage economies of scale in their trading relationships Allows access to a more liquid marketplace Further allows the use of dynamic pricing models – e.g. Auctions (one of the services provided in the proposed e-marketplace) – Improve the economic efficiency of the market where uncertainty about prices and demands are common.
- 28. Agent Oriented Domestic Marketplace Many-to-many relationships supported between TMCA and these business partners. Enables both TMCA and suppliers to leverage economies of scale in their trading relationships Allows access to a more liquid marketplace Further allows the use of dynamic pricing models – e.g. Auctions (one of the services provided in the proposed e-marketplace) – Improve the economic efficiency of the market where uncertainty about prices and demands are common.
- 29. Agent Oriented Domestic Marketplace Logical concept of the Domestic e-Marketplace
- 30. Agent Oriented Domestic Marketplace Logical concept of system Integration.
- 31. Real Time Inventory Tracking Module To be incorporated into the BEA system, which comprises of 4 agents – Forecast Agent – Inventory Agent – Order Agent – Multi - Tier Visibility Agent
- 32. Real Time Inventory Tracking Module
- 33. Agent Based Supply Chain An agent-based transport and logistics coordination system (collaborative e-market), are designed to accomplish transport and logistic coordination tasks among different automotive manufacturers in Australia. Consist of 4 generic roles agents in supply chain: • Distribution Hub Agent • Logistics Coordinator Agent, • Manufacturer Agent • Transporter Agent.
- 34. Agent Based Supply Chain
- 35. Integration
- 36. Ford’s Lean Implementation at Supply Chain and Customer Responsiveness Initiatives
- 37. Existing Supply Base As the company had grown over the years, so had the supply base In the late 1980s: there were several thousand suppliers of production materials in a complex network of business relationships Suppliers were picked primarily on the basis of cost, little regard was given to: – overall supply chain costs – complexity of dealing with such a large network of suppliers.
- 38. Existing Supply Base As the company had grown over the years, so had the supply base In the late 1980s: there were several thousand suppliers of production materials in a complex network of business relationships Suppliers were picked primarily on the basis of cost, little regard was given to: – overall supply chain costs – complexity of dealing with such a large network of suppliers.
- 39. Existing Supply Base Beginning in the early 1990s: Shifted toward longer-term relationships with a subset: – tier 1 – tier 2 – below suppliers. Ford made its expertise available: – just-in-time (JIT) inventory – total quality management (TQM) – statistical process control (SPC)
- 40. Ford Production System Ford 2000 initiative produced five major, corporation wide reengineering projects One was Ford Production System (FPS) Aimed at making Ford manufacturing operations: – Leaner – more responsive – more efficient
- 41. Ford Production System Aspired to level production and move to a more pull-based system, with: – synchronized production – continuous flow – Stability throughout the process
- 42. What was Ford’s intentions when reengineering its production system, and how were they going to do this?
- 43. Exhibit 2 Moving from Push to Pull Process Push Pull Design Design strategy Please everyone Mainstream customer Vehicle More is better wants minimal combinations Marketing Pricing strategy Budget-driven Market-driven Vehicle purchase Higher Lower Incentives Manufacturing Capacity planning Multiple material/ Market-driven and and supply capacity constraints, (no constraints FPV/ Driven by program CPV* + 10% for Budget vehicle, +15 for components Schedule and build Maximize production Schedule from make whatever you customer-driven order can build bank, build to schedule
- 44. Exhibit 2 Moving from Push to Pull Process Push Pull Dealer network Dealer ordering Orders based on Orders based on Allocations and customer demand Capacity constraints Order to delivery Longer (60 + days) Shorter (15 days or times less) Inventory High with low Low with rapid turnover turnover Dealership model Independent Company-controlled dealerships, dealerships (Ford negotiations with Retail Network) company
- 45. One Important Part of FPS was Synchronous Material Flow (SMF) Ford defined as “a process or system that produces a continuous flow of material and products driven by a fixed, sequenced, and leveled vehicle schedule, utilizing flexibility and lean manufacturing concepts.” One key to SMF was In-Line Vehicle Sequencing (ILVS): – used vehicle in-process storage devices (such as banks and ASRSs) and computer software to assure that vehicles were assembled in order sequence
- 46. Order to Delivery The purpose of OTD: – reduce to 15 days from 45 to 65 days Pilot studies in 1997 and 1998 identified bottlenecks throughout Ford’s supply chain: – Marketing – material planning – vehicle production – transportation processes
- 47. Ford’s Approach to Implementing an Improved OTD Process Ongoing forecasting of customer demand from dealers A minimum of 15 days of vehicles in each assembly plant’s order bank – to increase manufacturing stability Regional “mixing centers” that optimize schedules and deliveries of finished vehicles via rail transportation A robust order amendment process – to allow vehicles to be amended for minor color and trim variations without the need to submit new orders
- 48. Ford Retail Network July 1, 1998, launched first Ford Retail Network (FRN) in Tulsa, Oklahoma – under the newly formed Ford Investment Enterprises Company (FIECo). Two primary goals: – to be a test bed for best practices in retail distribution and drive those practices throughout the dealer network – to create an alternative distribution channel to compete with new, publicly owned retail chains such as AutoNation.
- 49. Enterprise Model Comparison Ford Breakthrough Objectives/Key Initiatives Customers Dealers Ford Retail Network OT D Order Mgmt FPDS Bill of Material DTD Outbound Logistics Supply chain Leadership Plan/Site FP Operations S Inbound FP Logistics S CFOP Suppliers
Notes de l'éditeur
- Animated title moves behind picture(Intermediate)To reproduce the shape effects on this slide, do the following:On the Home tab, in the Slides group, click Layout, and then click Blank.On the Home tab, in theDrawing group, clickShapes, and then under Rectangles click Rectangle (first option from the left). On the slide, drag to draw a rectangle.Select the rectangle. Under DrawingTools, on the Format tab, in the Size group, do the following: In the ShapeHeight box, enter 3.17”.In the ShapeWidth box, enter 9.5”.Drag the rectangle slightly above the middle of the slide. Select the rectangle. On the Home tab, in the Drawing group, click Arrange, point to Align, and then do the following:Click Align to Slide.Click Align Left.Under DrawingTools, on theFormat tab, in the ShapeStyles group, click the next to ShapeOutline, and then click NoOutline.Under DrawingTools, on the Format tab, in the ShapeStyles group, click the FormatShape dialog box launcher. In the FormatShape dialog box, click Fill in the left pane, select Gradient fill in the Fill pane, and then do the following:In the Type list, select Linear.In the Angle box, enter 0. Under Gradient stops, click Add gradient stops or Remove gradient stops until two stops appear in the slider.Also under Gradient stops, customize the gradient stops as follows:Select the first stop in the slider, and then do the following: In the Position box, enter 0%.Click the button next to Color, and then under Theme Colors click Orange, Accent 6, Darker 50% (fifth row, 10th option from the left).Select the next stop in the slider, and then do the following: In the Position box, enter 100%.Click the button next to Color, and then under Theme Colors click Orange, Accent 6, Darker 25% (fourth row, 10th option from the left).To reproduce the “heading” text box on this slide, do the following:On the Insert tab, in the Text group, select TextBox. On the slide, drag to draw a text box.Enter the heading text, and then select text. On the Home tab, in the Font group, do the following:In the Font list, select Calibri.In the FontSize box, enter 38.Click Bold.Click the arrow next to FontColor, and then under ThemeColors click Orange, Accent 6, Darker 25% (fourth row, 10th option from the left).On the Home tab, in the Paragraph group, click AlignTextLeft.Drag the text box just above the rectangle, in the right half of the slide. To reproduce the second text box on this slide, do the following:On the Insert tab, in the Text group, click TextBox. On the slide, drag to draw a text box.Enter three lines of text with paragraph breaks, and then select the text. On the Home tab, in the Font group, do the following:In the Font list, select Calibri.In the FontSize list, select 28.Click Bold.Click the arrow next to FontColor, and then under ThemeColors click White, Background 1 (first row, first option from the left).On the Home tab, in the Paragraph group, click the Paragraph dialog box launcher. In the Paragraph dialog box, do the following:On the Indents and Spacing tab, under General, select Left in the Alignment box.Under Spacing, select 12 in the After box.Drag the second text box onto the rectangle, below the “heading” text box. To reproduce the full-color picture on this slide, do the following:On the Insert tab, in the Images group, clickPicture. In the InsertPicture dialog box, select a picture, and then click Insert.On the slide, select the picture. Under PictureTools, on the Format tab, in the Size group, click the Size and Position dialog box launcher. In the Format Picture dialog box, resize or crop the image so that the height is set to 5.08” and the widthis set to 2.61”. To crop the picture, click Crop in the left pane, and in the right pane, under Crop position, enter values into the Height, Width, Left, and Top boxes. To resize the picture, click Size in the left pane, and in the right pane, under Size and rotate, enter values into the Height and Width boxes.Also in the Format Picturedialog box, click Glow and Soft Edges in the left pane, and then, in the Glow and Soft Edges pane, do the following:Under Glow, click the button next to Presets, and then click Blue, 5 pt glow Accent color 1 (first row, first option from the left).Click the button next to Color, and then under ThemeColors click White, Background 1 (first row, first option from the left).Drag the full-color picture on top of the rectangle, to the left of the text boxes. On the Home tab, in the Drawing group, click Arrange, point to Align, and then do the following:Click Align to Slide.Click Align Top. To reproduce the second picture on this slide, do the following:On the Insert tab, in the Images group, click Picture. In the InsertPicture dialog box, select the same picture, and then click Insert. On the slide, select the picture. On the slide, select the picture. Under PictureTools, on the Format tab, in the Size group, click the Size and Position dialog box launcher. In the Format Picture dialog box, resize or crop the image so that the height is set to 2.44” and the widthis set to 2.61”. To crop the picture, click Crop in the left pane, and in the right pane, under Crop position, enter values into the Height, Width, Left, and Top boxes. To resize the picture, click Size in the left pane, and in the right pane, under Size and rotate, enter values into the Height and Width boxes.On the slide, drag the new picture directly below the first one, and then, in the Format Picture dialog box, in the Crop tab, under Picture Position, adjust the Offset X and Offset Y settings to align the content of the two images so that they appear continuous.Also in the FormatPicture dialog box, click Picture Corrections in the left pane, and in the Picture Corrections pane, under Brightness and Contrast, do the following:In the Brightness box, enter 70%.In the Contrast box, enter -70%.Select the smaller picture. On the Home tab, in the Drawing group, click Arrange, point to Align, and then do the following:Click Align to Slide.Click Align Bottom. Press and hold CTRL, and then select both pictures. On the Home tab, in the Drawing group, click Arrange, point to Align, and then do the following:Click Align Selected Objects.Click Align Center. To reproduce the animation effects on this slide, do the following:On the slide, select the “heading” text box. On the Animations tab, in the AdvancedAnimation group, click AddAnimation, and then under Entrance click Fade.On the Animations tab, in the Timing group, in the Start list, select WithPrevious.On the Animations tab, in the Timing group, in the Duration box, enter 2. On the Animations tab, in the Timing group, in the Delay box, enter 1.5.On the slide, select the “heading” text box. On the Animations tab, in the AdvancedAnimation group, click AddAnimation, and then under Motion Paths click Lines.On the Animations tab, in the Timing group, in the Start list, select WithPrevious.On the Animations tab, in the Timing group, in the Duration box, enter 2. On the Animations tab, in the Animation group, click EffectOptions, and then click Left.On the Animations tab, in the Animation group, click EffectOptions, and then click Reverse Path Direction.On the slide, select the motion path for the “heading” text box,point to the starting point (green arrow) of the motion path until the cursor becomes a two-headed arrow. Press and hold SHIFT, and then drag the starting pointabout 1.5” off the left edge of the slide. (Note: If your lines of text are longer than in the example above, you may need to further increase the length of the motion path. )On the slide, select the second text box. On the slide, select the “heading” text box. On the Animations tab, in the AdvancedAnimation group, click AddAnimation, and then under Entrance click Fade.On the Animations tab, in the Animation group, click the Show Additional Effect Options dialog box launcher. In the Fade dialog box, do the following:On the Effect tab, in the Animate text list, select By Letter.In the % delay between letters box, enter 5.On the Timing tab, in the Start list, select AfterPrevious.In the Duration list, select 0.5 seconds (VeryFast).On the TextAnimation tab, in the Grouptext list, select By 1st Level Paragraphs.To reproduce the background on this slide, do the following:One the Design tab, in the Background group, click Background Styles, and then click Format Background. In the Format Background dialog box, click Fill in the left pane, select Gradient fill in the Fill pane, and then do the following:In the Type list, select Radial.Click the button next to Direction, and then click From Center (third option from the left).Under Gradient stops, click Add gradient stops or Remove gradient stops until three stops appear in the slider.Also under Gradient stops, customize the gradient stops as follows:Select the first stop in the slider, and then do the following: In the Position box, enter 0%.Click the button next to Color, and then under Theme Colors click White, Background 1 (first row, first option from the left).In the Transparency box, enter 0%. Select the next stop in the slider, and then do the following: In the Position box, enter 40%.Click the button next to Color, and then under Theme Colors click White, Background 1 (first row, first option from the left).In the Transparency box, enter 0%. Select the next stop in the slider, and then do the following: In the Position box, enter 100%.Click the button next to Color, click More Colors, and then in the Colors dialog box, on the Custom tab, enter values for Red: 232, Green: 227, and Blue: 216.