{"id":10414,"date":"2012-05-17T08:20:20","date_gmt":"2012-05-17T14:20:20","guid":{"rendered":"https:\/\/staging.opexlearning.com\/resources\/?p=10414"},"modified":"2014-08-08T12:33:44","modified_gmt":"2014-08-08T17:33:44","slug":"why-heijunka-is-a-block-in-the-foundation-of-the-toyota-house","status":"publish","type":"post","link":"https:\/\/staging.opexlearning.com\/resources\/why-heijunka-is-a-block-in-the-foundation-of-the-toyota-house\/10414\/","title":{"rendered":"Why Heijunka is a Block in the Foundation of the Toyota House"},"content":{"rendered":"<p>There is a reason why Heijunka is a block in the foundation of the Toyota House, or the Lean House as some call it. The short answer is stability in an operation. The rest of this article will show Heijunka Examples, then discuss what can go wrong without it. I&#8217;ll also share 4 Videos that further explain how to apply Heijunka and share several Heijunka Boards as example.<\/p>\n<h2>What is Heijunka?<\/h2>\n<p>The Toyota House, or the TPS House, is a great metaphor for the Toyota Production System. The TPS House is based on the idea that &#8220;A House Divided Cannot Stand&#8221;, Citing the great Abraham Lincoln, who is quoting from the Bible. This means that every part of the house has a role and has a specific purpose.<\/p>\n<p>The foundation of the house is critical. A block in that foundation is Heijunka.<\/p>\n<p>Heijunka is a Japanese term to describe &#8220;production leveling&#8221;. The distinction between &#8220;leveling demand&#8221; and &#8220;production leveling&#8221; is important because we cannot control demand. What we can control is the rate of workload &#8211; information, material, raw good, finished goods in fulfillment, or actual production &#8211; enters the operation.<\/p>\n<p>Here&#8217;s an example:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-10428 aligncenter\" title=\"production-leveling-example\" src=\"https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2012\/05\/production-leveling-example.jpg\" alt=\"\" width=\"523\" height=\"197\" srcset=\"https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2012\/05\/production-leveling-example.jpg 523w, https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2012\/05\/production-leveling-example-300x113.jpg 300w\" sizes=\"(max-width: 523px) 100vw, 523px\" \/><\/p>\n<h2>Not Heijunka<\/h2>\n<p>Suppose you run an operation where you make small widgets (11 A), medium widgets (9 B), and large widgets (7 C). You follow a production schedule that looks like this:<\/p>\n<div align=\"center\">\n<table style=\"border-color: #000000; border-width: 0px;\" border=\"1\" align=\"center\">\n<caption>This is <strong>NOT<\/strong> Heijunka<\/caption>\n<tbody>\n<tr>\n<td>Hours<\/td>\n<td>Tuesday<\/td>\n<td>Wednesday<\/td>\n<td>Thursday<\/td>\n<td>Friday<\/td>\n<\/tr>\n<tr>\n<td>1<\/td>\n<td>A<\/td>\n<td>A<\/td>\n<td>B<\/td>\n<td>C<\/td>\n<\/tr>\n<tr>\n<td>2<\/td>\n<td>A<\/td>\n<td>A<\/td>\n<td>B<\/td>\n<td>C<\/td>\n<\/tr>\n<tr>\n<td>3<\/td>\n<td>A<\/td>\n<td>A<\/td>\n<td>B<\/td>\n<td>C<\/td>\n<\/tr>\n<tr>\n<td>4<\/td>\n<td>A<\/td>\n<td>A<\/td>\n<td>B<\/td>\n<td>C<\/td>\n<\/tr>\n<tr>\n<td>5<\/td>\n<td>A<\/td>\n<td>B<\/td>\n<td>B<\/td>\n<td>C<\/td>\n<\/tr>\n<tr>\n<td>6<\/td>\n<td>A<\/td>\n<td>B<\/td>\n<td>B<\/td>\n<td>C<\/td>\n<\/tr>\n<tr>\n<td>7<\/td>\n<td>A<\/td>\n<td>B<\/td>\n<td>B<\/td>\n<td>C<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>&nbsp;<\/p>\n<p>Notice that the forecast requirements are met with 11 A widgets, 9 B Widgets, and 7 C widgets.<\/p>\n<p>This is classic batch production. In this example, the company forecasts that their orders will mostly be A, then B, and then C will probably have the least number of orders, which is why there are much fewer C production hours.<\/p>\n<p>The problem with this approach is the following:<\/p>\n<ul>\n<li>Suppose there&#8217;s a big spike in C widgets on Tuesday. This means the customer has to wait until Friday for the order to be fulfilled.<\/li>\n<li>Suppose the firm decides that the customer shouldn&#8217;t have to wait, then the production schedule is changed and an expedited order is created. This creates an overburden on the employee, overtime pay, and instability in the system.<\/li>\n<li>Suppose the expected demand for C falls, then we end up with more C widgets than the customer needed &#8211; overproduction.<\/li>\n<li>Suppose we find a defect in production for A widgets on hour 5. This means we&#8217;ve produced 4 hours of defective products.<\/li>\n<\/ul>\n<h2>Yes, Heijunka<\/h2>\n<div align=\"center\">\n<table style=\"border-color: #000000; border-width: 0px;\" border=\"1\" align=\"center\">\n<caption>This is Heijunka<\/caption>\n<tbody>\n<tr>\n<td>Hours<\/td>\n<td>Tuesday<\/td>\n<td>Wednesday<\/td>\n<td>Thursday<\/td>\n<td>Friday<\/td>\n<\/tr>\n<tr>\n<td>1<\/td>\n<td>A<\/td>\n<td>B<\/td>\n<td>C<\/td>\n<td>A<\/td>\n<\/tr>\n<tr>\n<td>2<\/td>\n<td>B<\/td>\n<td>C<\/td>\n<td>A<\/td>\n<td>B<\/td>\n<\/tr>\n<tr>\n<td>3<\/td>\n<td>C<\/td>\n<td>A<\/td>\n<td>B<\/td>\n<td>A<\/td>\n<\/tr>\n<tr>\n<td>4<\/td>\n<td>A<\/td>\n<td>B<\/td>\n<td>C<\/td>\n<td>B<\/td>\n<\/tr>\n<tr>\n<td>5<\/td>\n<td>B<\/td>\n<td>C<\/td>\n<td>A<\/td>\n<td>A<\/td>\n<\/tr>\n<tr>\n<td>6<\/td>\n<td>C<\/td>\n<td>A<\/td>\n<td>B<\/td>\n<td>B<\/td>\n<\/tr>\n<tr>\n<td>7<\/td>\n<td>A<\/td>\n<td>B<\/td>\n<td>C<\/td>\n<td>A<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>&nbsp;<\/p>\n<p>In this example, the forecast requirements are again satisfied.<\/p>\n<p>Notice how the production schedule of A, B, C is dispersed throughout the week. This approach creates a stable and predictable production schedule, less burden on the employee, fewer instances of overproduction, and the ability to fulfill demand during times of uncertain customer demand.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" width=\"534\" height=\"246\" class=\"size-full wp-image-10429 aligncenter\" title=\"traditional-scheduling-heijunka-difference\" src=\"https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2012\/05\/traditional-scheduling-heijunka-difference.jpg\" alt=\"heijunka example\" srcset=\"https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2012\/05\/traditional-scheduling-heijunka-difference.jpg 534w, https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2012\/05\/traditional-scheduling-heijunka-difference-300x138.jpg 300w\" sizes=\"(max-width: 534px) 100vw, 534px\" \/><\/p>\n<h2>Why Heijunka is a Foundational Block in Lean<\/h2>\n<p>We&#8217;ve seen from the non-heijunka example above that there are several wastes that come from a non-level production environment. If what I say is true, then much of continuous improvement will be limited if there is no level production. In fact, in that environment most of the mental and physical energy is trying to figure out what is going on. Heijunka is a critical foundation of any application of Lean.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" width=\"463\" height=\"306\" class=\"size-full wp-image-10430 aligncenter\" title=\"heijunka-board-scheduling\" src=\"https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2012\/05\/heijunka-board-scheduling.jpg\" alt=\"\" srcset=\"https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2012\/05\/heijunka-board-scheduling.jpg 463w, https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2012\/05\/heijunka-board-scheduling-300x198.jpg 300w\" sizes=\"(max-width: 463px) 100vw, 463px\" \/><\/p>\n<h2>The Challenge of Heijunka<\/h2>\n<p>One challenge of Heijunka is in its application. Depending on the industry and business you are in, the application will generally need to adjust. But the principle remains the same &#8211; to level production, create stability and\u00a0predictability.<\/p>\n<p>But to implement Heijunka, we need to first learn a little bit about the <a title=\"pacemaker process\" href=\"https:\/\/staging.opexlearning.com\/resources\/why-heijunka-is-a-block-in-the-foundation-of-the-toyota-house\/10414\/2\/\">Pacemaker Process<\/a>.<\/p>\n<h2>Don&#8217;t Forget the Pacemaker<\/h2>\n<p>To implement Heijunka, it&#8217;s important that you identify the Pacemaker process. Pacemaker is a misnomer in many ways because it doesn&#8217;t quite work like the Pacemaker you might find to help someone&#8217;s heart beat. The better metaphor for the Pacemaker Process might be that of a conductor of an orchestra.<\/p>\n<p>So, the Conductor of the Orchestra Process is a better metaphor because:<\/p>\n<ol>\n<li>The conductor dictates which instruments get played and when<\/li>\n<li>The conductor dictates how loud the instruments need to be &#8211; when to get louder and when to get softer<\/li>\n<li>The conductor manages the coordination between the instruments<\/li>\n<li>The conductor sets the pace of the overall song<\/li>\n<\/ol>\n<p>This metaphor works because that&#8217;s exactly what we want to the aspire to and identifying the Pacemaker Process is critical to the success of any Heijunka implementation.<\/p>\n<p>Why?<\/p>\n<p>Because Heijunka should be strategically placed at the Pacemaker process. Below is a 31 minute video that further explain Heijunka and shows how to implement it.<\/p>\n<\/p>\n<h2 class=\"only-premium\">Only Premium Shmula.com Members Can Access This Content<\/h2>\n<div class=\"genesis-box\">\n<div class=\"one-third first\">\n<p style=\"text-align: center;\">Already a Premium Member?<\/p>\n<p class=\"login-button\" style=\"text-align: center;\"><a title=\"Login to access\" href=\"https:\/\/staging.opexlearning.com\/resources\/login\/\">LOGIN TO ACCESS<\/a><\/p>\n<\/div>\n<div class=\"one-third middle\"><\/div>\n<div class=\"one-third\">\n<p style=\"text-align: center;\">Not a Premium Member Yet?<\/p>\n<p class=\"findout-more\" style=\"text-align: center;\"><a title=\"learn about premium membership\" href=\"https:\/\/staging.opexlearning.com\/resources\/landing\/join-shmula\/\">FIND OUT MORE<\/a><\/p>\n<\/div>\n<\/div>\n<p>\n\n<h2>Transcript<\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignleft  wp-image-14261\" src=\"https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2010\/08\/lifejournal_life_journal-512-150x150.png\" alt=\"shmula video transcript red bead experiment\" width=\"126\" height=\"126\" srcset=\"https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2010\/08\/lifejournal_life_journal-512-150x150.png 150w, https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2010\/08\/lifejournal_life_journal-512-300x300.png 300w, https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2010\/08\/lifejournal_life_journal-512-100x100.png 100w, https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2010\/08\/lifejournal_life_journal-512.png 512w\" sizes=\"(max-width: 126px) 100vw, 126px\" \/>Hey guys and welcome to the heijunka section of the stability series.<\/p>\n<p>Now in this section we&#8217;ll be covering leveling, a basic heijunka\u00a0calculation, as well as the basics of single-minute exchange of dies. But\u00a0before we get started, I want to give you a little illustration about\u00a0heijunka.<\/p>\n<p>Now, mura is the Japanese term for unevenness. Now, if you go to a grocery\u00a0store, you&#8217;ll notice that certain lines have more people in line than\u00a0others. That is a form of mura. You&#8217;ll also notice that depending upon the\u00a0time of day lines will be longer and shorter. Again, that&#8217;s a form of\u00a0unevenness.<\/p>\n<p>So in a recent trip to Walmart, I noticed how they were attacking mura.\u00a0They have a digital board that tells the customer which line to go to. So\u00a0once the cashier clears the customer, a button is pushed and then the\u00a0digital board lights up with that particular cash register&#8217;s number. The\u00a0next customer proceeds to that cash register. This is a way of evening\u00a0lines and fighting mura.<\/p>\n<p>So while I was at Walmart I was leafing through a Cosmo magazine and I came\u00a0across the mura diet. Conventional knowledge tells us that we should have\u00a0five to seven servings of breads and grains, four servings of vegetables,\u00a0two to three servings of meats, and eat fats and oils sparingly.<\/p>\n<p>The mura diet follows the same principle but over erratic periods and\u00a0quantities. So whereas the food pyramid recommends these foods daily, the\u00a0mura diet recommends that I eat all meats for two weeks, then switch to\u00a0grains and breads for eight weeks, and then to vegetables for one month,\u00a0and then I can reward myself by eating pure lard for three weeks.<\/p>\n<p>I decided to give it a shot and after a solid four months of the mura diet,\u00a0I began noticing my body changing. It seems no matter how active I stayed,\u00a0the pounds just kept piling on. This is me just six months after the video\u00a0footage you just saw at Walmart.<\/p>\n<p>How about a more leveled approach? Perhaps the old food pyramid made sense\u00a0after all. A heijunka or leveled approach with balanced meals, meals with\u00a0all food groups represented, eating frequently throughout the day and in\u00a0small predictable quantities would help me once again look like a Greek\u00a0god.<\/p>\n<p>Now, this illustration about the mura diet may seem silly, but this is\u00a0often how we treat our external customers by batching their orders.\u00a0Now, this is how we can use leveling to help our internal workforce.<\/p>\n<p>Remember the paper airplane exercise? If you&#8217;ll recall, worker four had way\u00a0too much to do with four folds while worker one had only one fold. The\u00a0resulting system produced 57 pieces of WIP [SP]. We can redistribute work\u00a0and level-load the line to look like this. This is another way we can use\u00a0heijunka to fight mura in our internal processes.<\/p>\n<p>If you&#8217;ll recall from our waste series, mura is the waste of unevenness.\u00a0Now, we use heijunka to combat mura. Now, what do I mean by &#8220;unevenness&#8221;?\u00a0We know that customers both external and internal can be erratic at times.<\/p>\n<p>So we try to create an environment with even level pull so the customer can\u00a0pull what&#8217;s needed in a calm, even manner. We try to pace the timing in\u00a0which we replace those items that have just been pulled, and then we try to\u00a0sequence the items in which we&#8217;re replacing in a calm, even manner.<\/p>\n<p>So this is what I mean by level pull. If you recall from our inventory\u00a0section, the customer is given the option of taking any color plane from\u00a0finished goods. We create a pull friendly environment by giving the\u00a0customer the option to pull what is needed so he doesn&#8217;t feel compelled to\u00a0hoard. Whatever is taken, the system reacts in a calm, level manner to\u00a0replace those goods that were pulled.<\/p>\n<p>Now, this is what I mean by level pacing. This system could be very\u00a0volatile if we replaced the pace and production to react to short-term\u00a0changes. Level pacing teaches us that short-term changes in pace at which\u00a0the customers pull are generally noise. And a sustained calm and level pace\u00a0producing the takt time is what is actually needed for long-term stability.<\/p>\n<p>Finally, level sequence means we attempt to balance the sequence in which\u00a0we replenish what has to be produced. So obviously customers don&#8217;t consume\u00a0all of one product, green squares for example, then all red triangles.<\/p>\n<p>So why do we produce this way? Using the level sequence, we mix the order\u00a0in which we produce to align better with how the customers consume\u00a0products.<\/p>\n<p>Now, traditionally, efficiency was measured in high machine utilization.\u00a0Now, when set-up times were 24 hours or more, it just made financial sense\u00a0to spread the cost of that set-up across a large batch of items.<\/p>\n<p>Now, set-up times have since dropped, but people still keep that mentality.\u00a0So they use machine utilization and they try to hide set-up across a large\u00a0batch of items.<\/p>\n<p>So you can see here, the bar represents the total material, labor, and set-up costs for producing a single item in a batch. Obviously, the set-up cost\u00a0is very high and it would be wasteful to produce only one unit with such\u00a0high set-up costs.\u00a0So this is what our cost would look like if we produced five units after\u00a0setting up. Notice the per unit cost has gone down. Now imagine if we\u00a0produced 25 units. You could see how one could easily fall into the trap of\u00a0maximizing batches to hide set-up costs.<\/p>\n<p>Now, you can see the relationship between set-up and batch size. Now, what\u00a0some people try to do to minimize their set-up is to maximize their batch\u00a0size. That&#8217;s one approach. But the alternative is to minimize the set-up\u00a0time and then minimize the batch size to correspond to that smaller set-up\u00a0time.<\/p>\n<p>So here&#8217;s our original diagram again. Now, if we apply set-up reduction you\u00a0can see the impact it has to the total cost model per unit. Once we reach\u00a0this state, we&#8217;re free to produce as many or as few units as we wish\u00a0because it costs just about the same to produce one unit, five units, or 25\u00a0units. At this state, producing in smaller lots is to our advantage. This\u00a0is what I mean by scaling your batch size to your set-up time.<\/p>\n<p>One of the biggest benefits to heijunka is the reduction in lead time. So\u00a0this is what the lineup would look like without heijunka, and this is what\u00a0it looks like with heijunka. So if I was waiting to receive a blue unit, I\u00a0would have to wait until the end of the production run. See how long this\u00a0takes? Now, if the lineup was level, this is how long I would have to wait\u00a0for a blue unit, only a fraction of the time.<\/p>\n<p>Now, another benefit is the reduction in liability when producing a defect.\u00a0In my traditional model, let&#8217;s assume I got a blue unit and I found out it\u00a0was defective. I &#8216;d call the factory and they&#8217;d most likely find that all\u00a0the blue units in that production run were defective.\u00a0Now, they need to produce an entire lot of blue units to replace these\u00a0defects. Now, in the heijunka model the same blue unit could be defective,\u00a0but only one was produced in the production run so it costs the company a\u00a0lot less to replace it.<\/p>\n<p>A benefit related to defect liability is flexibility. In our original\u00a0scenario, if one defective blue unit revealed that the entire batch of blue\u00a0units was defective, then the producer has very limited flexibility to\u00a0rework those defects.\u00a0Long production runs of other color units would force the producer to\u00a0either break into the middle of another unit&#8217;s production run, or double\u00a0the batch of the blue units on the next run. Either way, this drives up\u00a0cost or waiting time for me as the customer.\u00a0Now, in the heijunka model, the company has a lot more flexibility in\u00a0inserting a single blue unit into the production run. Placing a single blue\u00a0unit into the production run, or running a batch of two blue units, is far\u00a0less disruptive in this scenario than it would have been in the first.<\/p>\n<p>We know that inventory ties up cash and too much can cripple a company. In\u00a0our original model this could be the case. Because, at any given moment,\u00a0the production sequence could shift and we could find that the entire batch\u00a0is defective. We need to keep at least an entire batch&#8217;s worth of raw\u00a0material on hand.<\/p>\n<p>Now, the same assumptions hold true for the heijunka model. But because the\u00a0batch sizes are so small, one piece in this case, we can hold far less on\u00a0inventory on hand than if we didn&#8217;t have the level production run.<\/p>\n<p>This same scenario applies to finished goods inventory. The customer in our\u00a0original state has learned that he needs to hoard product when it is\u00a0available because lead times are so long. This means, as a producer, we\u00a0need to hold a lot of finished goods because we have inadvertently trained\u00a0our customers to behave this way.<\/p>\n<p>Now, if we demonstrate to our customers over time that we can produce what\u00a0is needed, when it is needed, quickly and in small batches, the customer\u00a0will learn that hoarding is unnecessary. This allows us to decrease\u00a0finished goods inventory and free up cash.<\/p>\n<p>Companies that successfully implement lean have a good grasp on static and\u00a0dynamic scheduling. A dynamic model is purely reactive. In our factory\u00a0we&#8217;re very confident that customers order five of each color unit during\u00a0any given month. We could, in theory, run five of each color in a row every\u00a0month and this would satisfy customer demand.<\/p>\n<p>But instead, our dynamic scheduling model functions like a giant black box.\u00a0Orders go in and the black box tells us what to run next. As a result,\u00a0there is little predictability as to how long it will take to begin\u00a0production on these green units. All we can tell you is that, on average,\u00a0it will take 15 days before the first green unit will begin in production.<\/p>\n<p>Now, this is average. Our system is dynamic, so you can influence it by\u00a0getting a regional sales manager involved, or by befriending the production\u00a0manager. Then you&#8217;re lead time is one day. If the production manager\u00a0decides the high-five you gave him during the last golf outing wasn&#8217;t\u00a0convincing enough, then you&#8217;ll wait 60 days or more. This is why dynamic<br \/>\nscheduling is so dangerous.<\/p>\n<p>Now, notice the static loop we have on the bottom. Having the discipline to\u00a0establish a static loop is what opens the gate for heijunka. As a quick\u00a0note, when I say static, I don&#8217;t mean you won&#8217;t have the leeway to make\u00a0adjustments. You&#8217;ll need to adjust slightly over time to produce the\u00a0changes in customer demand.<\/p>\n<p>First, five units of yellow, then five units of blue, then five units of\u00a0red, then five units of green on a set, static cycle. This is set and no\u00a0amount of chumming up or threats will change this. Now if someone asks when\u00a0they&#8217;ll see another green unit run, you can tell them in exactly 16 days a\u00a0green unit will pop off the end of the line. Again, locking down and having<br \/>\nthe foresight to create a static schedule is the first step to making\u00a0heijunka work.<\/p>\n<p>Now let&#8217;s take it to the next level. We apply set up reduction so you could\u00a0reduce batch sizes to lots of one piece. Now, in this static model, you can\u00a0see if someone just consumed their last green unit, they&#8217;ll need to wait\u00a0exactly four days before another green unit will pop off the end of the\u00a0line.<\/p>\n<p>Notice we&#8217;re running in four day static loops in this scenario as opposed\u00a0to twenty day static loops in the original static loop without heijunka.\u00a0Either case is much more advantageous to the dynamic black box you saw\u00a0previously.\u00a0Finally, notice that 20 days if the absolute max lead time for any batch of\u00a0any color in this static loop. In the dynamic model there is theoretically\u00a0no max lead time. This means your order may never make it through the\u00a0production system.<\/p>\n<p>The final and most important advantage to leveling is shortening order-to-cash. In our original model, we have to wait until the end of the entire\u00a0production run of blue units to get paid for them all at once. But in the\u00a0second scenario, we can get paid faster and in smaller increments.\u00a0Now, this may not seem like a big deal, but imagine if your company decided\u00a0to start paying your salary once a year. Would you be fine with that?<\/p>\n<p>Obviously, we&#8217;ve grown accustomed to getting paid weekly or bi-weekly in\u00a0small increments of our annual salary. Using that same logic, we need to\u00a0find creative ways to get our company paid faster and in smaller\u00a0increments.\u00a0So again, traditionally, we like to run large batches. We like low\u00a0variation. Again, people like villainize Ford by saying, &#8220;You can have any\u00a0color, as long as it&#8217;s black.&#8221; Then we want to minimize the number of set-ups in a traditional run, and we always want to run the largest batches\u00a0first in a mixed-model system.<\/p>\n<p>To batch would be something like this. You visit a doctor and he tells you\u00a0that you need your tonsils out. The doctor tells you setting up the\u00a0operating room is very expensive, so you need to come back in the third\u00a0week of next month because that&#8217;s when he does all of his tonsil cases at\u00a0once.<\/p>\n<p>Minimizing total set-ups would be something like this. The same scenario\u00a0with the doctor but it&#8217;s expensive to set-up so he tells you to come back\u00a0when you need your appendix taken out, you have a broken arm, and he gives\u00a0you a good look and says, &#8220;You might want to think about that liposuction\u00a0too.&#8221; This way I can take care of everything at once, and set up the\u00a0operating room once. Is this how you want to be treated as a patient?<\/p>\n<p>Do you realize this is often how we treat clients when we push orders\u00a0around and batch them in the name of efficiency?\u00a0So this is the traditional approach to running production. Notice we&#8217;re\u00a0running four types of product: blue, yellow, red, and green. And we&#8217;re\u00a0producing all four types over four weeks. Traditionally, managers thought\u00a0that running the largest orders first was more efficient. So the blue units\u00a0are run first in this model.<\/p>\n<p>Now, take a look at the little truck at the bottom of the board. This truck\u00a0takes one type of each unit to the client. Notice that the truck has to\u00a0wait until the end of the fourth week before it can complete an order and\u00a0take it to the customer. So to compute our heijunka ratio, we take the four types, divide it by four weeks, and this gives us a ratio of 1.0.\u00a0So heijunka, or leveling, is measured in the form of E.P.E.X., which stands\u00a0for &#8220;every part every &#8216;x'&#8221;. So you have every part every month, every part\u00a0every three weeks, every part every week. It&#8217;s best to run every part as\u00a0frequently as possible.\u00a0So in your mixed-model system, obviously running it every week is better\u00a0than running it every month. Who knows? Maybe you can break this down and\u00a0run every part every day. The more you can reduce set-up time and reduce\u00a0batches; this number actually gets smaller, which improves your E.P.E.X.\u00a0number.<\/p>\n<p>Now, in a lean environment, we like to run in small batches. Lean\u00a0environments also thrive under high product variation. We try to maximize\u00a0the number of set-ups, not minimize. And we like to level mixed products.\u00a0Smaller batches actually run first, rather than last.\u00a0Remember, running the smallest batches first gets us paid faster. So we&#8217;re\u00a0still running the same four types of units, but we&#8217;re running the green\u00a0units first because there are only seven in total to produce.\u00a0Now, take a look at the truck at the bottom of the board. It has all four\u00a0types loaded by the third week of production. So our heijunka ration is\u00a0four divided by three, or 1.33. This is a 33% gain over the original run,\u00a0just by sequencing production from smallest to largest.<\/p>\n<p>So now let&#8217;s get into a real heijunka calculation. We know the monthly\u00a0demand for each product. Each month the customer wants 20 blues, 9 yellows,\u00a08 reds, and 7 greens. I divide these by four to get a weekly demand.\u00a0Obviously, I can&#8217;t produce in fractions of units, so I round to the nearest\u00a0whole number. Then I multiply by four again to get a rounded month of what\u00a0I need to produce.<\/p>\n<p>Now I have to check my math to make sure I&#8217;m not producing too much or too\u00a0little of one product. I check my rounded month versus my original monthly\u00a0demand. I see that blue and red work out perfectly, but I&#8217;m producing one\u00a0too few yellow, and one too many green, if I went with the rounded month.\u00a0So I finally make this adjustment during the last week of production. So\u00a0during the last week of the month, I&#8217;ll make one more yellow and one less\u00a0green than I would in a normal week. The math rarely works out perfectly,\u00a0so keep in mind that you have to have an adjustment period just like this.<\/p>\n<p>So let&#8217;s apply our math to the production sequence. We&#8217;re still running the\u00a0smallest batch size first. We chose to run red before green because the\u00a0difference between the two is negligible.\u00a0Notice the truck fills up with all four types of units within one week. We\u00a0divide four types by one week and get a heijunka ratio of 4.0. That&#8217;s a\u00a0200% gain from the second run and a 400% gain from the original.<\/p>\n<p>So this is a very basic heijunka board. First thing you probably notice is\u00a0there are four different colors: red, green, yellow, and blue. These\u00a0represent the four different color points we built during the simulation.\u00a0You probably also noticed there are four different columns: week one, week\u00a0two, week three, and week four of production. So this board right now\u00a0represents a full month&#8217;s worth of production.<\/p>\n<p>Now, it works really simple. What I do is pull the withdrawal kanban, and\u00a0send it into the system. This triggers a red plane to be built. Now, the\u00a0next thing that we built, again, is another red plane. Send it into this\u00a0system, it would come out. Followed by a green plane, and so on, and so\u00a0forth, for week one.\u00a0So you can see that all these are pretty evenly sequenced right now so we\u00a0don&#8217;t have too much of one being produced at once. In theory, I could\u00a0sequence this all over so all the blues are built at once, all the yellows,\u00a0then all the greens, then all the reds.<\/p>\n<p>But obviously, we want to balance and level-load what&#8217;s being produced\u00a0every week. So this is why they call this the &#8220;central nervous system&#8221; of\u00a0our lean environment, because this literally controls the pulling, the\u00a0pacing, and the sequencing for the entire shop floor.\u00a0Next I want to relate value and batch. Now, this is kind of tough for\u00a0people to swallow and people get upset at this. But, I contend, that only\u00a0the first piece in any batch is value-add.\u00a0Now, if you don&#8217;t believe me, let&#8217;s take for a moment if you consider the\u00a0entire batch value-add. We would make a bigger batch, and that&#8217;s actually\u00a0opposite of what we&#8217;re trying to do. We&#8217;re actually trying to minimize\u00a0batch sizes.<\/p>\n<p>So if you believe that you realize there is waste in every batch. The\u00a0customer only needs one right now, but they&#8217;re buying in the size of a\u00a0batch because that&#8217;s the size in which you produce it.\u00a0Again, I know that&#8217;s a tough pill to swallow. Even though you&#8217;re changing\u00a0the form, fit, or function &#8211; which is by definition value &#8211; only the first\u00a0piece in your batch is actually value-add. The rest of the batch is just\u00a0along for the ride. Keep this in mind, especially when you&#8217;re value stream\u00a0mapping.\u00a0The time associated with producing the entire batch should not be taken as<\/p>\n<p>value-added time. Yes, this means only a fraction of a second may be value-add for a lead time that takes months.\u00a0So here are the major steps. First we need to understand demand. And don&#8217;t\u00a0just skim over this. Often times, if you study the data that the customer\u00a0is actually giving you, you can find that they&#8217;re a lot more predictable\u00a0than you think they are. Then we need to reduce set-up time using SMED.<\/p>\n<p>Reduce batch size. Now remember, these two always go coupled. Don&#8217;t just do\u00a0set-up reduction. You have to reduce batch size to correspond to set-up\u00a0reduction, or else it&#8217;s pointless. Reduce inventory down the line, and\u00a0upstream. And then shorten the pay cycle.\u00a0Remember, that&#8217;s what this all boils down to. Is owner&#8217;s diagram of order-to-cash, we have to compress that. Finally, rinse and repeat. Do this over\u00a0and over again.<\/p>\n<p>So, Shigeo Shingo is the pioneer behind single-minute exchange of dies, or\u00a0SMED. Now, I love SMED because once you combine SMED with batch size\u00a0reduction, that&#8217;s when lean thinking really starts to take shape.<\/p>\n<p>He started out in 1950 in a Mazda plant, and they were producing three-wheeled vehicles on three very large presses. He approached the plant\u00a0manager and asked if he could work on set-up reduction.\u00a0This is where he developed the concepts of internal and external work. The\u00a0plant manager wasn&#8217;t thrilled about this, but he went ahead and let it go.\u00a0And seven years later, in 1957, he continued this work at Mitsubishi Heavy\u00a0Industries. And then, in 1969, he took it over to Toyota, where we see it\u00a0today.<\/p>\n<p>Single-minute exchange of dies refers to the ability to change over a\u00a0machine that is running good product, to running good product of a\u00a0different type, in nine minutes or less. Single-minute refers to nine\u00a0minutes being a single digit of time.\u00a0You&#8217;re probably already familiar with the pit stop example. During a race,\u00a0a car stops at a pit stop for refueling and a change of tires. The crew\u00a0works to minimize this time.\u00a0But how about an example that&#8217;s more time-critical? The U.S. military knows\u00a0that seconds can be the difference between life and death on the\u00a0battlefield. According to tactical.com, 50-70% of all combat injuries are\u00a0extremity wounds. 60% of preventable combat deaths are from extremity\u00a0bleeding.\u00a0Now, tourniquets have been used on the battlefield for centuries to\u00a0minimize the bleeding by constricting the area that has been injured. The\u00a0issue is, during high-stress situations &#8211; such as combat &#8211; finding a\u00a0tourniquet often takes more time than is available.\u00a0To mitigate this, the military now has built-in tourniquets in critical\u00a0areas on the uniform. So there&#8217;s no need to search for a tourniquet. A\u00a0soldier can now immediately help an injured comrade.\u00a0Obviously, we&#8217;re not dealing with a life-and-death situation in a factory\u00a0environment. But, in order to reach a single-minute exchange of die level,\u00a0you and your team have to come up with innovative ways to save precious\u00a0seconds, just like these built-in tourniquets do.<\/p>\n<p>So this is generally how set-up breaks down. You generally spend 5% of your\u00a0time removing the old tooling, 15% of your time installing the new tooling,\u00a030% of time preparing the new material and jigs, and 50% of your time\u00a0trialing and processing. Obviously, trialing and processing is the largest\u00a0time bucket.\u00a0So here&#8217;s a quick demo on how to reduce a large time bucket. So this etch-a-sketch is a simple machine that I use to introduce the concept of trialing\u00a0and processing. Oftentimes, operators rely on their senses to adjust\u00a0machinery. Some operators are excellent at doing this and repeatedly dial-in a machine to exact specs with little to no problems. Other operators\u00a0struggle and this causes wasted time, wasted material, and frustration.<\/p>\n<p>So with this etch-a-sketch, I demonstrate that if you understand the knobs\u00a0and how they affect the machine&#8217;s output &#8211; the screen &#8211; you can replicate\u00a0any drawing with far reduced trialing and processing time.\u00a0I&#8217;ve taken the liberty of marking each knob with a red line. This serves as\u00a0a reference point for me. I then calibrate the left knob. It turns out that\u00a0one complete turn clockwise makes a line traveling right that is 3.4\u00a0centimeters long. I turn the right knob 360 degrees, and this makes a line\u00a0that travels up. This line also measure 3.4 centimeters long.<\/p>\n<p>I then reset the machine and turned the left knob 180 degrees clockwise.\u00a0This is to measure linearity. I expect the outcome to be a line traveling\u00a0right that is 1.7 centimeters long. I measure and this is correct. I do the\u00a0same for the right knob and get the expected result.\u00a0So I reset the machine and do the same thing for both knobs, this time\u00a0going counter-clockwise. I get all the expected mirror-image results. Now\u00a0that I know how the machine behaves, and the knobs have been quantified, I\u00a0can replicate any image with a reduced time in trialing and processing.<\/p>\n<p>So this image presented here is complex. Now, I could take the traditional\u00a0approach and mimic what I see using trial and error. But instead, I take\u00a0detailed measurements and write down my action plan.\u00a0Here is my action plan, complete with sequence, magnitude, and direction I\u00a0have to move each knob to replicate this drawing exactly. At this point, I\u00a0could literally replicate this drawing with my eyes closed.\u00a0As you can see, the resulting image I made is identical to the one I was\u00a0presented with. Quantifying and labeling knobs creates a science out of an<\/p>\n<p>art that was known as &#8220;trialing and processing&#8221;. It also decreases the\u00a0training time needed on any machine.\u00a0So this is an illustration of the lean continuum. Now, it&#8217;s been my\u00a0experience that all companies start out doing the obvious things, like 5S,\u00a0and T.P.M., and value stream mapping. They also all do SMED.\u00a0Now, some companies notice that with the 5S, and the T.P.M., and the SMED\u00a0that they&#8217;ve done, they&#8217;ve had limited financial gain. I consider SMED to\u00a0be the critical fork in the road that separates the men from the boys in\u00a0the world of lean.<\/p>\n<p>Companies that see SMED as a final destination and never couple it with\u00a0batch size reduction and heijunka, never grow up. They inevitably veer off\u00a0the lean path and wonder why it never worked for them.\u00a0SMED is nothing more than a methodology that enables you to reduce batch\u00a0sizes and balance your production load. Again, if you have no intention of\u00a0coupling SMED with batch size reduction, you should seriously consider your\u00a0lean journey.<\/p>\n<p>I mentioned that some consider SMED as a methodology to reduce lead time.\u00a0This is absolutely false. The black bars represent set-up time between\u00a0batches. Let&#8217;s assume the lead time is 20 days and each black bar\u00a0represents 60 minutes of set-up.\u00a0Let&#8217;s say work like crazy on SMED and you reduce your set-up times from 60\u00a0minutes down to 6 minutes. The result is, you only reduce your lead time of\u00a020 days by 3 hours. Now do you see why SMED alone has almost no impact on\u00a0lead time?<\/p>\n<p>Now imagine you reduce your batch size and level-load your production with\u00a0your new six minute set-ups. You reduce your 20 day lead time by 16 days.\u00a0Your new lead time is now only four days.\u00a0So back to Shingo&#8217;s definition of internal external work. Internal work is\u00a0work that has to be done while the machine is off. External work are\u00a0actions you can take while the machine is still running.<\/p>\n<p>So in washing dishes, an example of internal work is loading and unloading\u00a0dishes. You can&#8217;t do this while the machine is running. But, while the\u00a0machine is running, you can pre-soak the next set of dishes to be washed.\u00a0This is an example of external work.\u00a0Here are the major steps to SMED as defined by Shingo. First of all, all of\u00a0your tasks for both internal and external will be mixed throughout your\u00a0productions procedure. You should then clearly separate those that are\u00a0internal and external tasks. Then convert as much internal work into\u00a0external work, then reduce all remaining activities. You finally want to\u00a0standardize.<\/p>\n<p>When evaluating a set-up, I always watch the person and take detailed\u00a0notes. Those tasks that are obviously not adding value with respect to set-up, I segregate and eliminate immediately. This way, I start with a clean\u00a0state when using Shingo&#8217;s five steps.<\/p>\n<p>So again, the first step is to recognize that internal and external\u00a0activities are mixed. Don&#8217;t just skim over this step, because it is\u00a0important for your operators to realize that there is a lot of opportunity,\u00a0even if this is your second or third wave of SMED. Classroom exercises,\u00a0examples from other companies, and free, high-quality SMED videos found\u00a0online help in getting the ball rolling.<\/p>\n<p>Next is to clearly separate those items that are internal and external.\u00a0It&#8217;s important to challenge every single step. As a facilitator, you need\u00a0to ask, &#8220;Does the machine really need to be off for this step?&#8221; You may be\u00a0surprised as to how many steps can actually go into the external bucket of\u00a0activities.<\/p>\n<p>You then want to convert internal work into external work. You can often\u00a0purchase cheap alternatives to allow you to perform work externally. For\u00a0example, this die-cast company. Prior to SMED, they had to wait two hours\u00a0for the dies to heat up when performing a set-up. Then an operator\u00a0suggested that the dies be heated externally.<\/p>\n<p>This raised some eyebrows, but a quick trip to Sears and few hundred\u00a0dollars later, the dies were being heated externally in this cheap, home\u00a0oven. And the company was indeed saving two hours per set-up on this multi-million dollar machine.\u00a0So there&#8217;s still opportunity to make improvements. I&#8217;m big on quantifying\u00a0knobs on your machines. Operators often have a great feel for what knobs\u00a0do, but they rarely truly know how the machine behaves. That&#8217;s why it&#8217;s\u00a0important to study your machine and understand what the knobs do, just like\u00a0this etch-a-sketch.<\/p>\n<p>Also, you encourage your operators to make adjustments while the machine is\u00a0off. Needlessly running while making adjustments is like letting the water\u00a0run while you brush your teeth. Although the primary metric is time\u00a0savings, material savings is also very helpful.\u00a0This is perhaps the hardest part of any lean effort. Everybody always wants\u00a0to revert to their old way. Make sure you carefully capture the standard\u00a0sequence for set-up and monitor operators as they work through the new\u00a0routine.<\/p>\n<p>Growing up in Florida, I loved being on the water, and fishing is one of my\u00a0favorite pastimes. Believe it or not, fishing is a lot more science than\u00a0art. On one fishing trip, we were catching far more tarpon than any other\u00a0boat out there.\u00a0One boat later approached us and asked how we were so quickly able to zero-in on the depth, tackle, and the bait to use. I showed them my standardized\u00a0sheets that allowed us to reduce the time of trial and error to allow us to\u00a0pinpoint fish in less time. I explained that starting out with a large\u00a0standard array of options, then eliminating those choices that are not\u00a0working in a standard manner, helps us catch fish faster. He was not\u00a0impressed.<\/p>\n<p>So in this demonstration, we&#8217;re reducing the set-up time of the gas pump.\u00a0When performing SMED, I always have a copy of the tasks that are being\u00a0performed. I record the actions. I have a spaghetti and a meatball chart,\u00a0and of course, a timer. I also use a pedometer to capture the number of\u00a0steps I take. This gives me two solid metrics to improve. You can pick up a\u00a0cheap pedometer for about $10.<\/p>\n<p>Now, walking may seem trivial to you, but I&#8217;ve measured operators literally\u00a0walking two miles during a set-up. Remember, set-up time is the elapsed\u00a0time between good part to good part. In the example you see here, it&#8217;s the\u00a0time that elapses between the last green square and the first red triangle.\u00a0In our example, it&#8217;s the time that elapsed between the last drop of gas\u00a0that goes into the car in front of me, and the first drop of gas that goes\u00a0into my car. So the clock starts the moment he stops pumping gas. As a\u00a0quick side note, 30 seconds elapse before he pulls away and my car is in\u00a0position. I start by paying for my gas. We have a lot of love bugs in\u00a0Florida, so I always start by washing my windshields, both front and back.\u00a0Now, I personally always start by washing my windshields because I find\u00a0that I always forget when I pump gas first, and I don&#8217;t feel like getting\u00a0back out of the car to do this. You can see that the sponge doesn&#8217;t hold\u00a0much water, so I have to keep walking back and forth to the bucket. I come\u00a0back and open my gas cap and begin filling my tank. Now, by definition, the\u00a0moment I start pumping gas, the set-up time is over.<\/p>\n<p>But let&#8217;s continue with this exercise to see the total elapsed time. This\u00a0takes a minute or so, but after I&#8217;m done, I replace the pump and close the\u00a0gas cap on my car. A total of five minutes and thirty-six seconds elapses\u00a0from the moment the previous guy stops pumping gas, to the second that I&#8217;m\u00a0ready to pull away. My pedometer shows me that I took a total of 88 steps.\u00a0So let&#8217;s follow Shingo&#8217;s five steps to reducing set-up time.<\/p>\n<p>So this is step one. Obviously, internal and external tasks are mixed. I\u00a0recognize this and I&#8217;m ready to improve.\u00a0So, step two. Can I pay for gas while the pump is running? Sure I can.\u00a0While the guy in front of me is pumping gas, I can go pay in advance, so\u00a0this is an external task. We have to go through a number of steps to wash\u00a0the windshield.<\/p>\n<p>Again, does the gas pump have to be off in order for me to wash the\u00a0windshield? Yes, because I can&#8217;t hold the gas handle and wash the windows\u00a0at the same time. So all the tasks associated with washing the windshields\u00a0have to happen while the gas pump is off. So by definition, these are\u00a0internal tasks.<\/p>\n<p>So how about opening the gas cap? I can do this while the previous guy is\u00a0pumping gas when I go to pay for my fuel. So this is task is also\u00a0externalized.<\/p>\n<p>Next, pumping gas is by definition an internal task because the machine is\u00a0running. Now, how about closing the cap when I&#8217;m done? Well, I can&#8217;t do\u00a0that while the previous guy is pumping gas, nor can I do it while I&#8217;m\u00a0pumping gas.<\/p>\n<p>But, I can pull away and do it while the guy after me is pumping gas. So I\u00a0can externalize this task and do it after I free up the gas pump. I\u00a0definitely don&#8217;t want to get back in the car while the gas is pumping, so\u00a0this remains an internal task.<\/p>\n<p>The next step is for me to convert as much internal work to external work\u00a0as possible. So I notice there is a little tab on the handle of my gas\u00a0pump. This frees me up to wash the windshields while I&#8217;m pumping gas.<\/p>\n<p>Remember from our history lesson that the Toyota family created a loom that\u00a0would automatically stop when a thread broke. This freed up workers to\u00a0perform other tasks while the machine was running.<\/p>\n<p>This handle works the same way. It stops once it detects that the gas tank\u00a0is full. So I can safely externalize all the tasks associated with washing\u00a0my windshields.<\/p>\n<p>Step four is to minimize the internal and external tasks. Now, I don&#8217;t see\u00a0many internal tasks I can minimize, but there are some opportunities in the\u00a0external tasks. Particularly around washing the windshields. I take a look\u00a0at my spaghetti and meatball diagram and notice that the majority of the\u00a0numbers are tied to me walking back and forth to the bucket to wet the<br \/>\nsponge on my wiper.<\/p>\n<p>What if I invested $2 and bought a spray bottle, and filled it up with\u00a0soapy water? I wouldn&#8217;t have to walk back and forth to the bucket anymore,\u00a0saving me many steps. It would also get my windshields cleaner, because I\u00a0wouldn&#8217;t be dipping the sponge back into that filthy water. So armed with\u00a0my new sequence, I give my new, improved state a go.<\/p>\n<p>Having a set, standard sequence is the last step. I carefully study my\u00a0sequence and begin. First, I go pay and open my gas cap while the previous\u00a0guy is pumping gas. Like in the original scenario, 30 seconds elapses\u00a0before I pull in and I&#8217;m ready to go.<\/p>\n<p>Because my gas is paid for and the gas cap is open, I can begin fueling\u00a0right away. I use the tab on the handle. Now I can go wash the windshields\u00a0while the machine is running. I already have my spray bottle out, and I\u00a0walk over to the wash bucket to get the wiper. I wash the windows with the\u00a0exact same level of care as I did in the first scenario.\u00a0Eventually, the gas handle clicks, indicating that refueling is complete. I\u00a0return the wiper to the wash bucket and I put the gas pump away. I refrain\u00a0from closing the gas cap until I pull away because this is an external\u00a0task. I pull away, and then close the gas cap.\u00a0We completed all of our tasks in a minute and fifty-nine seconds in this\u00a0run. This is a 64% reduction from the original five minutes and thirty-six\u00a0seconds. My pedometer says I took 22 steps this time compared to 88 steps\u00a0originally. This is a 75% reduction in steps. I think the $2 spent on a\u00a0spray bottle will pay for itself in no time.<\/p>\n<p>Now, this little exercise doesn&#8217;t do a full SMED-kaizen event justice, but\u00a0hopefully it opens your eyes to opportunity that you may not have seen\u00a0before.\u00a0So here&#8217;s a quick review of what we&#8217;ve learned. We reviewed mura and we\u00a0learned that heijunka can be used to combat mura. We learned about\u00a0production leveling and product leveling. We learned about single minute\u00a0exchange of dies and how this links to batch size reduction and leveling.<\/p>\n\n","protected":false},"excerpt":{"rendered":"<p>There is a reason why Heijunka is a block in the foundation of the Toyota House, or the Lean House as some call it. The short answer is stability in an operation. The rest of this article will show Heijunka Examples, then discuss what can go wrong without it. 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