1 2002 American Axle & Manufacturing, Inc. All Rights Reserved. Last Revised 9/03Presentation Source: Toyota Production System - An Integrated Approach to Just-In-Time and Learning to SeeValue Stream MappingWorkplace OrganizationTPMStandardized WorkBuilt-in- QualityFlexible OperationsQuick ChangeoversThe Pull SystemLeveled ProductionProblem SolvingThe Lean Tools2 2002 American Axle & Manufacturing, Inc. All Rights Reserved. Last Revised 9/03Module Objectives Define Leveled Production. Understand Leveled Production and its benefitsThe participant will be able to:Introduction3 2002 American Axle & Manufacturing, Inc. All Rights Reserved. Last Revised 9/03Leveled Production is the process of smoothing _ _ and _ _ over a workday or a shift for a given time period, normally one month. What is Leveled Production?What is Leveled Production?production volumemodel mixIntroduction4 2002 American Axle & Manufacturing, Inc. All Rights Reserved. Last Revised 9/03Estimated Output - MayItemA B CMonthly Quantity1000 600 400Traditional Batch Production (in a batch producing operation i.e. forging, stamping, etc.)One-MonthQuantityModelMay Production ScheduleABC1000600400Once-a-Month Production123410006004001 Production Opportunity3 Changeovers1380 WIP1 Month Lead-timeIntroduction5 2002 American Axle & Manufacturing, Inc. All Rights Reserved. Last Revised 9/03Batch Production Smaller BatchesEstimated Output - MayItemA B CMonthly Qnty.1000 600 400Wk. Qnty250 150 100One-MonthQuantityModelMay Production ScheduleABC1000600400Once-a-Week Production12342501501002501501002501501002501501004 Production Opportunity12 Changeovers345 WIP1 Week Lead-timeIntroduction6 2002 American Axle & Manufacturing, Inc. All Rights Reserved. Last Revised 9/03Batch Production Even Smaller BatchesOne-MonthQuantityModelMay Production ScheduleABC1000600400Once-a-Day Production123450 units/day30 units/day20 units/dayEstimated Output - MayItemA B CMonthly Qnty.1000 600 400Day50 30 2020 Production Opportunity60 Changeovers69 WIP1 Day Lead-timeIntroduction7 2002 American Axle & Manufacturing, Inc. All Rights Reserved. Last Revised 9/03Leveled ProductionEstimated Output - MayItemA B CMonthly Qnty.1000 600 400Day50 30 20Takt Time Available Time = 480 Minutes Customer Demand = 100 PartsOverall Takt Time = 4.8 Minutes A - Takt Time =9.6 Minutes B Takt Time =16 Minutes C Takt Time = 24 MinutesOne-DayQuantityModelProduction ScheduleABC503020Leveled Production7 a.m.1 unit/9.6 min1 unit/16 min1 unit/24 min11 a.m.3 pm.200 Production OpportunitiesChangeovers in Takt Time1 WIP24 Minutes Lead-timeIntroduction8 2002 American Axle & Manufacturing, Inc. All Rights Reserved. Last Revised 9/03Leveled ProductionABACABACABTakt Time = 4.8 MinutesPart A = 9.6 MinutesPart B = 16 MinutesPart C = 24 Minutes48 Minutes Repeat this Sequence 10 TimesIntroduction9 2002 American Axle & Manufacturing, Inc. All Rights Reserved. Last Revised 9/03Advantages of Leveled ProductionAdvantages of Leveled ProductionImproves Customer SatisfactionReduces InventoryImprove QualityIncreases FlexibilitySupports a Stable WorkforceIntroduction10 2002 American Axle & Manufacturing, Inc. All Rights Reserved. Last Revised 9/03Managing Leveled Production11 2002 American Axle & Manufacturing, Inc. All Rights Reserved. Last Revised 9/03How Will the Production Mix be Leveled? A small, consistent, leveled increment of work that will provide the “initial pull” for the value stream.Pitch:Equals Takt Time X Packout Size Takt Time = 30 seconds Packout Size = 20 parts Pitch = 30 sec x 20 parts = 10 minThus every 10 minutes, one finished pitch quantity will be staged for shipping and one production instruction will be given to the preceding process.Managing Leveled Production12 2002 American Axle & Manufacturing, Inc. All Rights Reserved. Last Revised 9/03CB12:0511:3010:3510:009:258:508:157:256:506:15A1 Row per Product Type1 Column per PitchPull CardsUsing the Production Leveling BoardManaging Leveled Production13 2002 American Axle & Manufacturing, Inc. All Rights Reserved. Last Revised 9/03An Example of Leveled ProductionShippingAssemblyMaterialsDaily Order OXOX1. Materials places a special “Move” Card corresponding to the customer order in the leveling box.2. A Material Handler then pulls these cards out of the leveling box one-by-one at the scheduled time, exchanges the cards with the cards on the product, and moves the parts from the supermarket to shipping. After shipping, the cards are returned to Materials3. The exchanged pull cards are brought back to the Assembly Cell in the scheduled time increment which tells assembly what to produce both the volume and mix are leveled.4. A card is attached to one Standard Pack and moved to supermarket. Managing Leveled Production