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Abstract
The lean approach has been applied more frequently in discrete manufacturing than in the continuous/process sector,
mainly because of several perceived barriers in the latter environment that have caused managers to be reluctant to make
the required commitment. We describe a case where lean principles were adapted for the process sector for application at a
large integrated steel mill. Value stream mapping was the main tool used to identify the opportunities for various lean
techniques. We also describe a simulation model that was developed to contrast the before and after scenarios in
detail, in order to illustrate to managers potential benets such as reduced production lead-time and lower work-in-process
inventory.
r 2006 Elsevier B.V. All rights reserved.
Keywords: Lean manufacturing; Value stream mapping; Simulation; Process industries; Steel
1. Introduction
Lean manufacturing is one of the initiatives that
many major businesses in the United States have
been trying to adopt in order to remain competitive
in an increasingly global market. The focus of the
approach is on cost reduction by eliminating nonvalue added activities. Originating from the Toyota
Production System, many of the tools and techniques of lean manufacturing (e.g., just-in-time (JIT),
cellular manufacturing, total productive maintenance, single-minute exchange of dies, production
smoothing) have been widely used in discrete
Corresponding author. Tel.: +1 412 624 9840;
fax: +1 412 624 9831.
E-mail address: rajgopal@pitt.edu (J. Rajgopal).
0925-5273/$ - see front matter r 2006 Elsevier B.V. All rights reserved.
doi:10.1016/j.ijpe.2006.09.009
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For companies that have long relied on traditional approaches to their manufacturing systems, it
is often difcult to gain from management the
commitment required to implement lean manufacturing. Doing so is hard because of differences in a
number of aspects including raw material procurement, inventory management, employee management, and production control. For traditional
manufacturers, the reluctance to implement many
lean ideas arises because their distinctive requirements often make it hard to predict the magnitude
of the gains that can be achieved by implementing
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products:
d ij j 0:5 T=Di i 1; 2; . . . ; n and
j 1; 2; . . . ; Di ,
where n is the number of different products to be
made, Di the number of units demanded per day for
product i. T D1 D2 Dn is the total
number of units of all products to be made each
day, j the index for the job (unit) of product i, d ij the
ideal position index for job (unit) j of product i in
the overall sequence.
For our case n 3, while the Di values are: 98, 14
and 15 for HBA, OCA, and CA, respectively. Thus
T is equal to 127. Ordering these jobs according to
d ij sorted (shown in Table 1) one can see a pattern
start to develop, yielding the following approximate
sequence for smooth production (HBA-HBA-HBACA-HBA-OCA-HBA-HBA-HBA), (HBA-HBA-HBACA-HBA-OCA-HBA-HBA-HBA),yetc. We could
just simplify the sequence to (HBA-HBA-HBAHBA-HBA-HBA-HBA-CA-OCA).
Question 7. What increment of work (the pitch)
will be consistently released to the pacemaker
process?
Depending on the sequence determined by the
last question, how often should we release and
withdraw (the pitch) the increment of production
Table 1
Position index calculation for annealed products
Product i
Unit j
d ij
d ij (sorted)
Product-unit
HBA
1
2
3
4
5
6
7
8
9
10
11
12
13
14
0.648
1.944
3.240
4.536
5.832
7.128
8.423
9.719
11.015
12.311
13.607
14.903
16.199
17.495
0.648
1.944
3.240
4.233
4.536
4.536
5.832
7.128
8.423
9.719
11.015
12.311
12.700
13.607
13.607
HBA 1
HBA 2
HBA 3
CA 1
HBA 4
OCA 1
HBA 5
HBA 6
HBA 7
HBA 8
HBA 9
HBA 10
CA 2
HBA 11
OCA 2
OCA
1
2
4.536
13.607
14.903
16.199
17.495
HBA 12
HBA 13
HBA 14
CA
1
2
4.233
12.700
Required number
of kanbans
HBA
OCA
CA
98
14
15
14
14
15
7
1
1
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Table 3
Number of pitches and material transfer times
Product
HBA
OCA
CA
98=7 14
14=1 14
15=1 15
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Table 4
Proposed TPM times at nishing mill
Process
Process
HSM
8400 Pickle
6400 Pickle
CRM
TM
Maintenance
Day
Uptime (days)
Downtime (min)
7
7
7
7
7
240
240
240
240
240
Monday
Tuesday
Wednesday
Thursday
Friday
Work Rolls
Backup Rolls
Current
Proposed
Current
Proposed
120
15
120
90
20
5
20
20
35
15
7
10
5
5
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Actual range
Simulation
Entity lead-time
Hot strip mill inventory
Cold mill inventory
HBA inventory
CA inventory
OCA inventory
Temper mill inventory
Number of coils per month
[3049 days]
[10005000]
[2502000]
[2501750]
[100750]
[100750]
[150750]
[90009800]
34 days
3703 slabs
1755 coils
620 coils
121 coils
636 coils
653 coils
9466 coils
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10
10
9
9
8
8
7
7
6
Transient Period
6
5
5
4
4
3
3
2
2
1
1
0
0
10
20
30
40
50
60
70
80
90
100
110
Simulation Time
120
130
140
150
160
170
180
190
200
(X103)
Fig. 2. Transient period analysis for the average WIP inventory for ve replications.
Lead-Time
Constant
Prod Sys
TPM
Setup Red
Prod Sys TPM
Prod Sys Setup Red
TPM Setup Red
Prod Sys TPM Setup
80
p-value
0.000
0.000
0.000
0.815
0.000
0.632
0.783
0.815
70
Inventory
0.000
0.000
0.000
0.815
0.000
0.632
0.783
0.815
Mean
Term
90
Prod System
60
Hybrid
50
Push
40
30
20
10
With
TPM
Without
TPM
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Table 8
Assessment of lean tools in the steel industry
Lean tool
Applicability
Cellular manufacturing
Setup reduction
5S
Value stream mapping
Just-in-time
Production leveling
Total productive maintenance
Visual systems
Probably inapplicable
Partially applicable
Universally applicable
Universally applicable
Partially applicable
Partially applicable
Partially applicable
Universally applicable