2 The Need for Continual Improvement The need to reduce costs
3 CONTINUAL IMPROVEMENT THE CUSTOMER WANTS:ONLY what is neededAS much as is neededWHEN it is neededANYTHING MORE IS WASTE
4 What we need to do: 100% right first time The right cost that affords the company a reasonable profit100% on time
5 What is lean Manufacturing AIMLean production is aimed at the elimination of waste in every area of production including workshop managementGOALTo incorporate less human effort, less inventory & less spaceTo become highly responsive to customer demand while producing top quality products in the most efficient and economical manner possible.
6 Lean Manufacturing Objectives Lower the cost of production by streamlining the processReduce time spent on “NON VALUE ADDING” activitiesFocus on “VALUE ADDING “ activitiesEliminate all forms of waste from the processUnderstand and move towards the concept of “ZERO”Zero defectsZero inventoryZero delayZero downtimeAim:
7 Lean Manufacturing Objectives GOALTo become highly responsive to customer demand while producing top quality products in the most efficient and economical manner possible.
8 Three Divisions of Work VALUE ADDED:Any process that changes the nature, shape or characteristics of the product, in line with customer requirements.(Maximise)WASTE:All other meaningless,non essential activities(Eliminate)NON VALUE ADDED:Any work carried out which is necessary under current conditions but does not increase product value (Minimise)
9 Quality Cost Delivery Q C D The 3 criteria for assessing the production performance of a company:QualityCostDelivery
10 The 7 Q C D Measures The 7 measures of Quality, Cost and Delivery are: 1. Not Right First Time2. Delivery Schedule Achievement3. People Productivity4. Stock Turns5. Overall Equipment Effectiveness6. Value Added per Person7. Floor Space UtilisationPrimary impactSecondary impact
11 Process Improvement Spirit Challenge all fixed ideasDo it now! No excusesGet to the root cause by repeatedly asking why? (5 Whys)Improvement is infiniteBetter is not good enough(Continual Improvement)
12 The first building block of continual improvement 5S Made Easy:Seiri = SortSeiton = Set in OrderSeiso = ShineSeketsu = StandardiseShitsuke = SustainThe first building block ofcontinual improvement
13 Continuous Improvement Improvement ActivityStandard Ops.Visual Management7 Wastes5SThe first building block ofcontinual improvement
14 Workplace Organisation and 5S SortOnly have in the area that which is requiredSet in OrderA place for everything & everything in its placeShineDetermine the current condition of a machine or area and maintain it in good clean working orderStandardiseEnsure the current standard is maintained & improvedSustainEvery employee understands the benefits & contributes to the improvement and endeavours to continually do so
15 5S – The Aim Sustainable Continual Improvement To promote a safe working environmentTo improve the organisation & standards of the workplaceCreate the best environment in which to produce a productLeads to a more efficient operation of the workshop or officeSustainable Continual Improvement
17 Workplace Organisation; 5S Set in Order“A place for everything & everything in its place”.Aim: To Create the best environment in which to produce a product.
18 5S - Shine (Clean & Check) Aim: To determine the current condition of a machine or area and maintain it in good working orderHow: Manually clean from top down, identify/tag concernsSafety Critical itemsQuality Critical itemsBroken items etc.Equipment:Rags, Brushes, Brooms, Buff tags, Degreaser, Gloves, Safety Glasses, Photographs
19 5S - StandardiseAim: Ensure that the current standard is maintained and improvedHow: Make it easy to maintainDaily checklist and visual standardsEstablish clear responsibilitiesAuditsIntroduce to other operators/shiftsEquipment:PhotographsChecklist
20 5S - SustainEvery employee follows the rules and understands the benefits and contributes to the improvement.
25 The 7 Wastes The second building block of continual improvement Improvement ActivityStandard Ops.Visual management7 Wastes5SThe second building block ofcontinual improvement
26 7W – 7 Types of Waste Overproduction Inventory Transportation Process Producing more than the customer demandsInventoryStocks of raw material, work in progress and finished goodsTransportationUnnecessary moving or handling of partsProcessExcessive movement in process cycleIdle TimeOperator inactivity during cycleOperator MotionAny unnecessary or walking, bending, turning and reachingBad QualityProducing scrap parts & Reworking of parts
27 7W – The Elimination of Waste Identify, Categorise and Eliminate all waste and reduce costsHow: Identify bottlenecks and remove them Reduce set-up times (SMED) Reduce downtime (TPM) Reduce – rework Reduce “dead” time Produce and purchase only what is needed (JIT)
28 7W - Overproduction What? Examples: Why? Producing more than the customer demandsExamples:Manufacturing ahead of customers scheduleOver running an unstable processWhy?Hides manufacturing problemsCreates inventory resulting in ALL other wastesConsumes resources ahead of schedule
29 (Stocks of raw material, work in progress and finished goods) 7W - Inventory(Stocks of raw material, work in progress and finished goods)AfterBefore
30 7W - Transportation What? Why? Unnecessary moving or handling of parts Handling equipment moving with no partsRaw material batch sizes not matching production batch sizeWhy?Transportation does not add value
31 Previously 8 Journeys reduced to 2 Journeys 7W - Transportation(Unnecessary moving or handling of parts)Paint Shop can now spray everything on the trailers.Previously 8 Journeys reduced to 2 Journeys
32 7W - Process What? Why? Excessive set-up or downtime (SMED) Inappropriate processesExcessive movement in process cycleWhy?Because it does not add value
33 7W – Idle Time What? Why? Operator inactivity during cycle Machine inactivity during cycleWhy?When an operator or machine is idle, no value is being added to the product
34 7W – Operator Motion What? Why? Any unnecessary or walking, bending, turning and reachingWhy?These activities do not add value to the product
35 (Any unnecessary or walking, bending, turning and reaching) 7W – Operator Motion(Any unnecessary or walking, bending, turning and reaching)OLD WAYNEW WAY
36 7W – Bad Quality What? Why? Producing scrap parts Reworking of parts It interrupts scheduled productionIt consumes resourcesExtra overtime to replace bad quality production