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Copyright EMS Consulting Group, Inc. 2008 Using Lean Ideas to Get Jobs to Production Faster Darren Dolcemascolo EMS Consulting Group, Inc.

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Presentation on theme: "Copyright EMS Consulting Group, Inc. 2008 Using Lean Ideas to Get Jobs to Production Faster Darren Dolcemascolo EMS Consulting Group, Inc."— Presentation transcript:

1 Copyright EMS Consulting Group, Inc Using Lean Ideas to Get Jobs to Production Faster Darren Dolcemascolo EMS Consulting Group, Inc.

2 Copyright EMS Consulting Group, Inc Using Lean Ideas to Get Jobs to Production Faster You will learn: –Why It is Important to Apply Lean Principles to the Pre-Production Value Stream –How Lean Principles and Tools Apply to Such Processes –How One Company Utilized These Principles

3 Copyright EMS Consulting Group, Inc Presentation Agenda 1.Lean Administrative Principles and Benefits 2.Applying Lean Tools to Non- Manufacturing Processes 3.Case Study 4.Q&A

4 Copyright EMS Consulting Group, Inc What Is Lean? A systematic approach to identifying and eliminating waste (non-value- added activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection – James Womack

5 Copyright EMS Consulting Group, Inc Value - A capability provided to a customer at the right time at an appropriate price, as defined in each case by the customer. Features of the product or service, availability, cost and performance are dimensions of value. Definitions Waste (Muda) - Any activity that consumes resources but creates no value. Value - what your customers are willing to pay for.

6 Copyright EMS Consulting Group, Inc Definitions –Value Stream - the set of all the actions required to bring a product to the customer. (material + information flow)

7 Copyright EMS Consulting Group, Inc Thinking Lean 5 Principles of Lean Specify value –can only be defined by the ultimate customer Identify and Map the value stream – exposes the enormous amounts of waste Create flow – reduce batch size and WIP Let the customer pull product through the value stream –make only what the customer has ordered Seek perfection – continuously improve quality and eliminate waste

8 Copyright EMS Consulting Group, Inc All we are doing is looking at the time line from the moment the customer gives us an order to the point when we collect the cash. And we are reducing that time line by removing non-value-added wastes. – Taichi Ohno Lean Thinking

9 Copyright EMS Consulting Group, Inc From Shop Floor to Office Lean should not be limited to the shop floor: –Support processes often cause delays in the factory. –Support processes create delays in getting existing product to the customer (lead time) –Support processes delay the product development process. –Support processes delay the delivery of materials.

10 Copyright EMS Consulting Group, Inc Eight Wastes Overproduction Waiting Transporting Inappropriate Processing Unnecessary Inventory (WIP) Unnecessary / Excess Motion Defects Underutilization of Employees Minds/Ideas

11 Copyright EMS Consulting Group, Inc Eight Wastes Revisited Overproduction –Printing paperwork out before it is needed –Purchasing items before they are needed –Processing paperwork before the next process is ready for it Waiting –System downtime –Paperwork/Approval queues (waiting in someones inbox) –Waiting for information from outside sources (customer or supplier)

12 Copyright EMS Consulting Group, Inc Eight Wastes Revisited Transportation (Paperwork or Electronic Info) –Multiple hand-offs –Too many approvals required –Excessive attachments Inappropriate Processing –Re-entering data or re-checking –Making extra copies –Too many reports distributed –Excessive transactions –Unnecessary details in expense reports, budgets, etc. –Month-end closing activities

13 Copyright EMS Consulting Group, Inc Eight Wastes Revisited Unnecessary Inventory –Filled in-boxes (electronic and paper) –Office supplies –Batch processing transactions/reports –Sales literature Unnecessary / Excess Motion –Walking to/from printer/copier/fax –Walking to other cubicles/offices (or to find someone)

14 Copyright EMS Consulting Group, Inc Eight Wastes Revisited Defects –Design errors –Invoice, purchase order, or order entry mistakes –Other paperwork errors Underutilization of Employees Minds/Ideas –Limited authority and responsibility for basic tasks –Management command and control –Inadequate business tools provided

15 Copyright EMS Consulting Group, Inc Lean Principles for the Office 1.Understand Customer Needs 2.Measure and Check Performance to Customer Needs Often 3.Eliminate steps that do not create value 4.Find ways to eliminate interruptions/handoffs. 5.Control the flow of work between interruptions. 6.Balance the workload/Eliminate bottlenecks.

16 Copyright EMS Consulting Group, Inc Customer Needs/Requirements Who needs the output of the process? What is specifically required and how often? When do they need the output?

17 Copyright EMS Consulting Group, Inc Determine Performance Check Window How often will performance (status) to customer requirements (takt time) be measured? Wide range of answers can be appropriate: from hourly to several times daily (or in some cases, less frequently).

18 Copyright EMS Consulting Group, Inc Determine Performance Check Window Use a visual means of checking performance If orders are not processed in a timely manner, the team must identify root causes and take corrective actions to return to the desired service level.

19 Copyright EMS Consulting Group, Inc Determine Performance Check Window Lean Example –Printing company developed a goal of three-day turnaround on orders with a one-day turnaround in the preproduction portion of the order. –They set a 2 hour management time frame to review the preproduction process (customer service, artwork, and plate making). –Every two hours reps from each area reviewed orders in process to determine if they were meeting the desired service levels. If not, they took proper action (redeploy resources, work o.t., etc.)

20 Copyright EMS Consulting Group, Inc Determine which steps in the process create value and which generate waste Ask questions to determine this: –What does the customer really need? –Why are the current steps being performed? –What can the company do differently or not at all while still meeting customer needs? –Is the order of steps creating waste? At what steps should decisions be made? –What assumptions underlie the design of the current process? –Are current controls and administrative guidelines appropriate? –What knowledge and skills are truly required to perform the steps?

21 Copyright EMS Consulting Group, Inc Create a work flow with fewer interruptions Create flow (one-piece or small batch size) Ask the following questions: –Can standardizing work improve flow? –Would it be beneficial to dedicate resources to specific tasks? –Can one person be cross-trained to perform several sequential tasks? –Would moving people and tasks together into a cell help? –What would be the benefits and issues of a flow approach?

22 Copyright EMS Consulting Group, Inc Create a work flow with fewer interruptions Paperwork Processing Monday: 40A Tuesday 10A, 30B Wednesday: 20B, 20C Thursday: 40C Friday: 20C, 20A Monday: 14A, 10B, 16C 8:00AM: 3A, 2B, 3C 9:00AM: 4A, 2B, 2C Each type processed once weekly Each type processed once daily Each type processed once hourly

23 Copyright EMS Consulting Group, Inc Determine how to control work from step to step (between interruptions) Usually two possible solutions –FIFO lane - limits the amount of work that can be pushed from step to step and ensures proper prioritization. –Pull system - work is pulled from the supplying process to the customer process. (Example: printing information only upon demand.)

24 Copyright EMS Consulting Group, Inc Determine how to control work from step to step (between interruptions) Lean Example – Problem –Job shops use job packets throughout production to make sure that the product is made correctly. –At one company, the office released job packets to the floor ASAP, creating overproduction. –Production began work on many of these released packages and spent a lot of time reacting to customer changes.

25 Copyright EMS Consulting Group, Inc Determine how to control work from step to step (between interruptions) Lean Example - Solution –The company implemented a simple pull system for job packets by having production tell the office when it needed the next job packet. –Company reduced the # of job packets by 50%, and the number of time-consuming changes to job packets by 80%.

26 Copyright EMS Consulting Group, Inc Balancing the Activities/Workload Two issues –Process Level – people who overproduce in big batches, creating queues at the next step. –System Level – lopsided transactions and activities that require different amounts of resources at different points in time (month-end).

27 Copyright EMS Consulting Group, Inc Balancing the Activities/Workload Process Level –Balance by using shorter performance check windows, cross-training, and FIFO lanes.

28 Copyright EMS Consulting Group, Inc Balancing the Activities/Workload System Level –Level work and mix- Distribute transactions and work over a longer period to reduce system chaos and overtime. –Creates a predictable enterprise and improves the visibility and responsiveness to problems and/or shifts in customer demand. –Leveling mix of transactions to improve the ability of the system to flow or respond to particular steps (e.g., ideal # of rush orders to standard orders).

29 Copyright EMS Consulting Group, Inc Case Example: Value Stream Mapping Original State: 5 weeks average pre- production lead-time; 6 week average total lead-time (1 week in production) Project Objective: To reduce pre- production lead time to < 4 weeks

30 Copyright EMS Consulting Group, Inc Case Example: Current State

31 Copyright EMS Consulting Group, Inc Case Example: Current State Issues Redundant data entry of customer orders/reliance on Multiple shop orders per customer order No control of release of orders to shop floor Requirement for shop floor personnel to prioritize work based on MS Excel spreadsheet

32 Copyright EMS Consulting Group, Inc Case Example: Improvements Customer order entry system becomes part of the ERP/MRP system –Customer service person completes transaction- no handoff to production manager (make continuous flow) MRP system notifies purchasing to order non-stock parts for each customer order same day. Shop Orders are cut after parts arrive and delivered to production based on kanban. –Priority spreadsheet eliminated

33 Copyright EMS Consulting Group, Inc Case Example: Future State

34 Copyright EMS Consulting Group, Inc Case Example: Results Pre-production lead-time cut from 25 business days to 17 business days Processing time cut from 250 minutes to 80 minutes

35 Copyright EMS Consulting Group, Inc Questions?


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