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Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813 Lean Overview and Simulation.

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Presentation on theme: "Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813 Lean Overview and Simulation."— Presentation transcript:

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2 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Lean Overview and Simulation

3 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Workshop Staff Instructor President and Owner, Buzz Electronics Enterprises

4 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO EDI Services Advanced Technology Development Center (ATDC) Economic Development Services Business and Industry Services

5 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Business & Industry Services Energy Environmental Information Technology Marketing and Strategic Planning Process Productivity Quality & International Standards Lean Enterprise

6 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Regional Field Office Network Albany Athens Augusta Brunswick Carrollton Cartersville Columbus Dalton Douglas Dublin Gainesville Griffin Macon Newnan Rome Savannah Warner Robins (229) (706) (706) (912) (770) (770) (706) (706) (912) (478) (770) (770) (478) (770) (706) (912) (478)

7 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Learning Objectives Learn techniques to improve profitability. Experience the impact of Lean practices on a production process. Learn techniques for reducing inventory levels. Learn how to eliminate waste.

8 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO You Will Learn About The differences between traditional and lean manufacturing Identifying areas of waste The impact of waste reduction on:  Productivity  Quality  Profitability  Customer Satisfaction

9 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Workshop Agenda 1. Introduction & Orientation Production Round 1 2. Lean Background Lean Tools Production Round 2 4. Lean Tools 7-12 Production Round 3 5. How to Implement Lean Summary with Q&A Break Lunch Break

10 Lean Overview Lean Manufacturing Training Series ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Lean Overview and Simulation Orientation to Buzz Electronics Enterprises (BEE)

11 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Buzz Electronics Enterprises Product Catalog

12 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO The Blue Avenger Basic model for every day use

13 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO The Red Devil Industrial model for commercial use

14 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO The Gold Buzz Premium model for the sophisticated user

15 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO The Bottom Line The Blue Avenger  Sells for $20  Materials cost $5.00 The Red Devil  Sells for $30  Materials cost $7.50 The Gold Buzz  Sells for $50  Materials cost $10.00 Labor Cost = $7.50/person/shift Facilities Cost = $10.00/table/shift

16 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO BEE Production Process Orientation 1. Sales Representative 2. Production Scheduler 3. Kitter(s) 4. Material Handler 5. Spring Assembler 6. Resistor Assembler 7. LED Assembler 8. Diode Assembler 9. GoldBuzz Assembler 10. Inspector 11. Reworker 12. Warehouse/Shipping Clerk 13. Packager 14. Industrial Engineer(s) 15. Instruction Crib Attendant Processes Customer Orders Generates Factory Orders from forecast Organizes raw materials for Factory Orders Moves product between ALL workstations Inserts springs Inserts resistors Inserts LEDs Inserts diodes Produces complete board Conducts functional tests (all boards) Repairs failed boards Matches boards to Customer Orders Packages finished product Perform engineering functions Controls work instructions

17 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO BEE Production Facility Orientation SalesOffice ProductionControl ReworkArea DiodeAssembly KittingArea GoldBuzzAssembly InspectionArea ResistorAssembly Finished Goods Whse. WIPStorage LEDAssembly SpringAssembly ShippingDock

18 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO BEE Circuit Board Orientation ABCDE Blue, Red, or Gold Boards C-3

19 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO BEE Product Components Orientation Resistors Diodes Buzzers Transistors Springs Jumpers LED’s

20 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO BEE Product Routing Blue LED x1 Test 9v Springs x5 Resistor x1 Diodes x2 Red LED x1 Resistors x3 Test 9v Springs x5 Gold Springs x8 TEST 9v Resistors x3 Transistors x2 Jumper x1 Buzzer x1

21 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Example Circuit Board Assembly Red Devil ABCDE v

22 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Inserting Components

23 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Production Batching 6 per batch 4 per batch Hand-crafted 1-at-a-time

24 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO BEE Production Scheduling Process Customer order forms Factory order forms Finished Goods Warehouse Customer orders (demand) Production forecast Shipments to customers

25 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO BEE Customer Service Targets 4 minutes after order 5 minutes after order 6 minutes after order Promised shipments to customers Blue Red Gold All orders are filled “first-in, first-out” Late shipments are discounted by 30%

26 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO BEE Company Policies 1. All shifts are 20 minutes. 2. Keep busy at all times. 3. Yell if you need parts. 4. Handle all parts first in-first out. 5. Only the material handler can move parts. 6. Stay at your workstation. 7. The boss is always right!

27 Lean Overview Lean Manufacturing Training Series ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Round 1 Let’s Get To Work!!

28 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Results

29 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Results

30 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO  A Manufacturing Background  Lean Manufacturing Foundation: Waste Reduction  Lean Manufacturing: Basic Concepts  Lean Manufacturing: Further Concepts Lean Manufacturing Agenda

31 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Profile of a Traditional Manufacturer Characteristics of your operation:

32 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Profile of a Traditional Manufacturer Inventory built to forecast Inventory used to satisfy customer demand Excessive work in process (WIP) Large batch sizes Focused on a small piece Cost-cutting focus Department/work center efficiency measures

33 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Customer Requirements 1800’s1900’s1700’s Time 2000 High volumes/High Inventories Cost cutting focus/Efficiency Mass production/Automation Assembly lines/Divided labor TRADITIONAL Custom-made, one at a time Highly skilled craftsperson Non-standardized work Non-interchangeable parts CRAFT Manufacturing History

34 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Manufacturing Today ü Speed ü Quality And ü Flexibility At the ü Lowest Prices Global competition is driving Customers to seek and expect:

35 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Manufacturing History Customer Requirements 1800’s1900’s1700’s Time 2000 Custom-made, one at a time Highly skilled craftsperson Non-standardized work Non-interchangeable parts CRAFT Mass production/Automation Assembly lines/Divided labor High volumes/High Inventories Cost cutting focus/Efficiency TRADITIONALAnother Approach?

36 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO concept by TPS; terminology by Womack an umbrella for good business practices a strategy for decreasing the time between order placement AND delivery of goods or services What is Lean Manufacturing?

37 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO 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. -- The MEP Lean Network NIST Definition

38 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Lean Thinking “Where’s the bottleneck in my company?” “A group of interacting, interrelated, or interdependent elements forming a complex whole.” American Heritage Dictionary, 3rd Edition Lean Thinking begins with the SYSTEM

39 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO  A Manufacturing Background  Lean Manufacturing Foundation: Waste Reduction  Lean Manufacturing: Basic Concepts  Lean Manufacturing: Further Concepts Lean Manufacturing Agenda

40 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Foundation of Lean Manufacturing  Waste identification and reduction  Value adding vs. non-value adding  5S  Layout/Flow  Point-of-Use Storage  Setup Time Reduction  Batch Size Reduction

41 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO What’s Stopping Industry?

42 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Waste Defined Does NOT add value Does NOT result in conformance to customer specs Customer would NOT pay for it!

43 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Value Added Transform materials to product Meets customer expectations Customer would pay for it!

44 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Non-Value Added Does not add value Is not necessary Should be eliminated, simplified, reduced, or integrated

45 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Studying Waste VALUE ADDED Drilling Machining Cutting WeldingAssembling Parts Painting Storing Set - ups Inspecting Moving ConveyingWaitingDeciding Reworking Traveling Transporting Paperwork NON-VALUEADDED NON-VALUE ADDED BUT ESSENTIAL

46 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Where is Waste?  Overproducing  Defects - Rework or Scrap  Inventory  Waiting of parts/people/machines/ paperwork  Transportation of parts, people, paper  Extra Processing  Motion of people, machines  Unused employee ideas

47 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Waste in Your Plant Product Leadtime 95%5% Traditional Focus Lean Focus Value Adding activitiesNon-Value Adding activities

48 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Lean Manufacturing Agenda  Lean Background  Lean Manufacturing Tools 1-6  Lean Manufacturing Tools 7-12  How to Implement Lean

49 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Lean Manufacturing Tools 1)5S 2)Layout/Flow 3)Point-of-Use Storage 4)Setup Time Reduction 5)Batch Size Reduction 6)Using Takt Time to Balance

50 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO S A safe, clean, neat arrangement of the workplace which provides a specific location for everything and eliminates anything not required.

51 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO A Place for Everything

52 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO S Workplace Organization 1. Sort 2. Set in Order 3. Shine 4. Standardize 5. Sustain

53 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Benefits of 5S Removes safety hazards Eliminates waste caused by disorder Searching for parts and tools Highlights abnormal situations Working with poorly-maintained equipment Increases employee morale and pride Impresses current/potential customers

54 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Layout/Flow The physical positioning of - processes, - departments, - equipment, and - work areas to optimize an organization’s effectiveness in achieving its operating objectives.

55 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Traditional Layout/Flow Departmental Specialty

56 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Lean Layout/Flow Product Focus

57 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Point-of-Use Storage Raw materials stored where used Frequent, small shipments from vendors Requires trustworthy workforce Simplifies physical inventory tracking

58 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Point-of-Use Storage of Parts

59 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Printer Cart with Paper Storage

60 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Benefits of Point-of-Use Storage Reduces material handling requirements Easier to determine raw material needs Reduces waiting for parts

61 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Setup Time The time from the last good product of the previous run to the first consistently good product of the next run. Gathering necessary items Exchanging parts Positioning parts Making adjustments

62 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Benefits of Setup Time Reduction Increases overall capacity Improves machine uptime Reduces start-up waste Makes smaller batches economical Reduces lead time

63 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Batch Size Reduction …Producing smaller amounts between runs Large Batch Size Is it me or does this seem inefficient? One-Piece Flow Kathy, reducing batch size was a great idea!

64 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Benefits of Batch Size Reduction Reduces overall lead time Reduced WIP and inventory costs Less impact from quality problems Easier to maintain FIFO/lot control Greater flexibility Less reliance on forecasts

65 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Takt Time Speed at which a product must be manufactured in order to satisfy customer demand Calculated Value

66 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Takt Time Calculation = Takt Time Time Available Demand Example: Time Available = 8 hours per day Demand = 100 widgets per day Takt Time = 8 hours 100 widgets 0.08 hours == 4.8 minutes

67 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Takt Time/ Cycle Time Bar Chart Takt time = OP Minutes

68 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Benefits of Takt Time Indicates what is required of process Provides target for production Paces production to demand Used to determine resource needs Used to balance production process

69 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Question How can Round 1 be improved?

70 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Question (Cont’d)

71 Lean Overview Lean Manufacturing Training Series ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Round 2 Let’s Get To Work!!

72 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Results

73 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Results

74 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Lean Manufacturing Tools 1-6 1)5S 2)Layout/Flow 3)Point-of-Use Storage 4)Setup Time Reduction 5)Batch Size Reduction 6)Using Takt Time to Balance DID IT WORK?

75 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Lean Manufacturing Agenda  Lean Background  Lean Manufacturing Tools 1-6  Lean Manufacturing Tools 7-12  How to Implement Lean

76 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Lean Manufacturing Tools )Visual Controls 8)Quality at the source 9)Standardized Work 10)Workforce/management practices 11)Pull Systems – Make to Order 12)Total Productive Maintenance (TPM)

77 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Visual Controls Simple visual signals Efficient Self-regulating Worker managed

78 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Types of Visual Controls Lights Cards Inventory

79 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Types of Visual Controls Red Zone Yellow Zone Green Zone Part # Shaft Standard Pack: 100 pcs. Number of Signals: 10 Part # Clutch Standard Pack: 30 pcs. Number of Signals: 15 Information

80 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Visual Control in an Office Setting

81 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Visual Control in a Factory In the aerospace industry, it’s critical that mechanics know where all their tools are to avoid foreign object damage.

82 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Benefits of Visual Controls Immediate understanding of condition Improved safety and housekeeping Reduced potential defects Reduced work-in-process Self-regulating Easy to use

83 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Quality at the Source Places responsibility for quality on the worker doing the job Promotes doing the job right the first time Pass  Fail

84 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Benefits of Quality at the Source Reduces need for rework Prevents work on defective product Simplifies prevention and repair of defects     

85 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Standardized Work Where there is no Standard, there can be no Kaizen.-- Masaaki Imai Three Elements of Standard Operations: 1. Takt Time 2. Work Sequence 3. Standard WIP Standard Operations Sheet Debur Machine Drill Grind QA Clean Takt Time 4 min Cyc Time 4 min Std WIP = 6 Quality ChkSafety Focus # of Emp 2 Make it Visible!

86 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Why the Emphasis on Standardization? Continue to revise the standard; IMPROVE!!!  It is the foundation for continuous improvement (promotes Kaizen)  Makes MBWA more effective  Builds trust  Improves Training/Cross Training  Encourages/provokes “How can this work even – better?” thinking among employees  Promotes team environment

87 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Workforce Practices Cross-trained employees Multi-skilled workers Employee problem-solving teams Team-based cells Continuous improvement philosophy These require effective leadership, a culture change, and respect for the workforce!

88 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Benefits of Workforce Practices Increased morale and job security Quicker response to schedule changes Efficient handling of problems Improved communication, cooperation, and trust Better understanding of the “big picture” Increased acceptance of management decisions Increased flexibility

89 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Management Practices Must be a partnership NOT a quick fix Requires discipline Requires senior management commitment Avoids “yet another program” syndrome

90 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO The Waste of Work-in-Process Ties up capital Decreases flexibility Increases opportunity for scrap Requires more physical space Lowers customer satisfaction

91 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Push vs. Pull Systems Pull System End-of-line authorizes production to replace only what has been consumed Push System Schedules production based on forecast 123 Product Flow Signal Flow

92 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Characteristics of a Push System

93 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Characteristics of a Pull System

94 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Benefits of a Pull System Manufactures only what is needed Improves communication of customer needs Provides common system for moving material Eliminates scheduling complexities Reduces lead time and WIP Inventory counts quick and easy

95 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Product Flow Signal Flow X X How Does Pull Work? X

96 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Lean production is not possible without highly reliable equipment. Proactive, productive maintenance eliminates equipment-related waste and improves equipment reliability. Proactive, productive maintenance is a shared responsibility. Total Productive Maintenance Basic Principles:

97 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Benefits of TPM Unplanned downtime 50-60% Breakdown costs 70-80% Spare parts costs 15-30% Product defects 85-90% Lead times 50-75% On time deliveries 50-95% Years:

98 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Question How can Round 2 be improved?

99 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Question (Cont’d)

100 Lean Overview Lean Manufacturing Training Series ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Round 3 Let’s Get To Work!!

101 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Results

102 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Results

103 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Lean Manufacturing Agenda  Lean Background  Lean Manufacturing Tools 1-6  Lean Manufacturing Tools 7-12  How to Implement Lean

104 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Manufacturing History Customer Requirements 1800’s1900’s1700’s Time 2000 Mass production /Automation Assembly lines / Divided labor High volumes / High Inventories Cost cutting focus / Efficiency TRADITIONAL Reduced WIP Reduced inventories Multi-skilled workforce Production based on demand LEAN Custom-made, one at a time Highly skilled craftsperson Non-standardized work Non-interchangeable parts CRAFT

105 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Lean vs. Traditional LEAN  Simple and visual  Demand driven  Inventory as needed  Run by value adders  Small lot sizes  Minimal lead time TRADITIONAL  Complex  Forecast driven  Excessive inventory  Overhead run  Batch production  Long lead time

106 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Operations Supply Chain Administrative Product Development Inventory Management Total Quality Metrics Product Lead Time Where Lean Applies A holistic approach to eliminating waste in the entire system

107 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Determining the product families Understanding how the shop floor currently operates. (Foundation for future state.) Designing a lean flow & how to get there. DO IT! Product Family Current-State Drawing FUTURE-STATE DRAWING Implementation REPEAT Value Stream Mapping

108 Value Stream Map Icons General Icons Material Flow Information Flow Manual Information Flow Electronic Information Flow Production Schedule Look Ship Schedule daily Ship Schedule daily Movement of Production Materials Movement of Finished Goods Inventory Truck Shipment Rail Shipment I 1 X daily Process Outside SourcesData BoxOperator Kaizen Burst Supplier/Customer C/T = 20 sec S/U = 10 min Uptime = 90% Process F I F O ABCABC Pull of Materials SupermarketFirst in/First outBuffer ABCABC Production Instruction Card Leveling Box RBGRBG Material Withdraw Card Kanban Post Signal Kanban

109 Current State Map: Buzz Electronics Processing Time = 195 sec CT = 30 Resister 1 person C/O = 60 CT 20 Kitting 2 people C/o 0 CT = 50 Spring 1 person C/O 60 CT = 15 Test 1 person C/O = 0 CT = 30 LED 2 people C/O = 60 CT = 10 Ship 2 people C/O = 0 30 Secs 5 Red, 5 Blue Supplier C/O = 40 Diode 1 person C/O = 0 I 30 I I 64 I I 7 I I 6 I I 12 I I 4 I I 0 I Customer 30 Secs Production Control Buzz Industrial Engineer Sales 20 Min Forecast Factory Order Forms Production Reports Quality Report Shipping Report Customer Orders Order every 10 Sec 300 sec 640 sec 20 sec 50 sec 30 sec 60 sec 40 sec 70 sec 120 sec 30 sec 40 sec 0 sec 10 sec 15 sec Lead Time = 1425 sec TAKT Time = 10 Sec

110 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO How to Get Lean by Cutting Waste Understand WHAT and WHERE waste exists Map value streams Measure each process Identify non-value added activities Create a PLAN to eliminate waste IMPLEMENT plan to eliminate waste MEASURE and review results, then REPEAT

111 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Lean Building Blocks Batch Reduction Standardized WorkSetup ReductionTeams Quality at Source 5S SystemVisualPlant Layout POUS Cellular/FlowPull/KanbanTPM Value Stream Mapping Continuous Improvement

112 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Summary Continuous improvement in steps Tried many ideas and made adjustments Cut lots of waste and increased capacity Shared information and cross-trained employees Changed our management style Bottom line benefits:  Improved service to the customer (throughput)  Reduced work-in-process inventory  Increased profits!

113 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Ideas to Take Back Lean Manufacturing does work Gain buy-in from top management Form a team to lead implementation Build employee awareness and buy-in

114 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO To Learn How Lean Fits Your Plant Call Georgia Tech for a free consultation Read books on lean manufacturing Ask us for an on-site Executive Briefing Tour a plant Have the Lean Overview presented in your plant Learn, Plan, Implement, Succeed!

115 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO How Georgia Tech Can Help Lean Manufacturing Executive Briefing Attend a network meeting Lean Manufacturing Courses On-Site Coaching Services Assisting your suppliers

116 Lean Manufacturing Training Series Lean Overview ©2003 Georgia Tech Research Corporation. All Rights Reserved. LO Evaluation Please complete your evaluation form!


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