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A Fundamental Principle of TPS Produce to Demand Make only what is needed when it is needed.

A Fundamental Principle of TPS Produce to Demand Make only what is needed when it is needed. Base production and planning on Takt Time. Develop flexible production lines. When demand changes, the line changes. Usually, labor changes to maintain labor efficiency. Produce to Demand…Takt Time

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A Fundamental Principle of TPS Produce to Demand Make only what is needed when it is needed.

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  1. A Fundamental Principle of TPS • Produce to Demand • Make only what is needed when it is needed. • Base production and planning on Takt Time. • Develop flexible production lines. When demand changes, the line changes. Usually, labor changes to maintain labor efficiency.

  2. Produce to Demand…Takt Time • Takt Time is the pace at which the customer is buying a particular product. • Takt time is not how long it takes to perform a task. It is customer demand, not cycle time. • Takt time is calculated by taking the available time to work and dividing it by the demand for that period of time • Takt time cannot be reduced or increased except by a change in sales or the available time to work

  3. Takt Time Formula Productive Time Available per period Number of Required Units per period Example: Productive Time Available Calculation Time available per Shift (8 hours) Breaks (2 at 10 minutes each) Lunch Productive Time Available = • 480 minutes • 20 minutes • 20 minutes • 440 minutes or 26,400 seconds

  4. Takt Time Formula Productive Time Available per period Number of Required Units per period Example: Number of Required Units Calculation Units = 72,000 units ordered per month = 1,200 Units Required per Shift 60 shifts per month (3 shifts x 20 days)

  5. Takt Time Formula Productive Time Available per period Number of Required Units per period Example: Takt Time Calculation Takt Time = 26,400 seconds available per shift = 22 seconds / unit 1,200 units required per shift So…the line should make one unit every 22 seconds to meet customer demand.

  6. Number of Operators Required Formula Sum of Manual Cycle Time Takt Time Example: Operators Required Calculation 123 seconds = 5.59 or 6 operators required 22 seconds

  7. Labor Efficiency Formula (Sum of Manual Cycle Time / 3600seconds per hour) x Demand per Shiftx100 Current Manning x Available Hours per Shift Example: Variables Total manual time to make one unit Demand per shift Current Manning Available hours per shift 123 seconds 1,200 units 7 direct operators 7.3 hours (440 minutes)

  8. Labor Efficiency Formula (Sum of Manual Cycle Time / 3600 seconds per hour) x Demand per Shiftx100 Current Manning x Available Hours per Shift Example: Labor Efficiency Calculation (123 seconds / 3600 seconds) x 1,200 units per shiftx100 = 70% labor efficiency 7 operators x 7.3 hours per shift

  9. Line Capacity Formula Productive Time Available (seconds) Bottleneck Station Cycle Time* (seconds) Example: Capacity Calculation 26,400 seconds per shift = 1,553 unit capacity per shift 17 second cycle time bottleneck station* *Bottleneck Station Cycle Time = Machine C/T + Manual Load / Unload C/T

  10. Performance to Capacity Formula Actual Line Output (units)x100 Line Capacity (units) Example: Performance to Capacity Calculation 1,200 units per shiftx 100 = 77% 1,553 units per shift

  11. Operational Availability (Formal TPS Definition) Actual Output (units)x100 Demand (units) Examples: Operational Availability Calculation • 1,080 units per shiftx100= 90% • 1,200 units per shift • 1450 units per shiftx100= 120% • 1200 units per shift under-production over-production

  12. Rate of Operation Formula Demand (units)x100 Capacity (units) Examples: Rate of Operation Calculation • 1,200 units per shiftx100= 77% • 1,553 units per shift

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