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1 1 ASL Training Ltd Website: Website: TEL : TEL :

2 2 Lean Methodology CQI (Wessex Forum) Lecture 11/02/14 Objectives: Lean Definitions Lean Definitions Seven Wastes Seven Wastes 5 s 5 s Work Balance (Yamazumi) Boards Work Balance (Yamazumi) Boards

3 3 Lean Definitions What is Lean? LEAN: Doing more with less by employing 'lean thinking.' Lean manufacturing involves never ending efforts to eliminate or reduce 'muda' (Japanese for waste or any activity that consumes resources without adding value) in design, manufacturing, distribution, and customer service processes ean-manufacturing LEAN: Doing more with less by employing 'lean thinking.' Lean manufacturing involves never ending efforts to eliminate or reduce 'muda' (Japanese for waste or any activity that consumes resources without adding value) in design, manufacturing, distribution, and customer service processes ean-manufacturing

4 4 Lean Definitions Value Add? VALUE ADD: Value-added activities are what a company strives for. They are the things customers really want and are willing to pay for VALUE ADD: Value-added activities are what a company strives for. They are the things customers really want and are willing to pay for

5 5 Lean Definitions Non Value Add? NON VALUE ADD: Activities that do not contribute to the product or the process and should therefore be eliminated. Non- value added steps are waste. NON VALUE ADD: Activities that do not contribute to the product or the process and should therefore be eliminated. Non- value added steps are waste.

6 6 Value/Non Value Add Example Lets Consider an example of an operator fitting an wheel onto a vehicle on a moving line. Lets Consider an example of an operator fitting an wheel onto a vehicle on a moving line.

7 7 Value/Non Value Add Example STEPS 1. Check Screen to see what wheel to be fitted to vehicle. 2. Pick Correct Tools and wheel nuts 3. Pick Wheel from chute 4. Place wheel onto vehicle assembly 5. Tighten wheel nuts

8 8 Wheel Fit Example Vehicle Op Steps

9 9 Wheel Fit Example OPERATION DESCRIPTION VALUE ADD NON VALUE ADD 1. READ SCREEN 2. PICK TOOLS & NUTS 3. PICK WHEEL FROM CHUTE 4. POSITION WHEEL 5. TIGHTEN WHEEL NUTS

10 10 7 Wastes

11 11 Over-Production Over-Production Simply put, overproduction is to manufacture an item before it is actually required. Overproduction is highly costly to a manufacturing plant because it prohibits the smooth flow of materials and actually degrades quality and productivity. Simply put, overproduction is to manufacture an item before it is actually required. Overproduction is highly costly to a manufacturing plant because it prohibits the smooth flow of materials and actually degrades quality and productivity. Overproduction manufacturing is referred to as “Just in Case.” This creates excessive lead times, results in high storage costs, and makes it difficult to detect defects. Overproduction manufacturing is referred to as “Just in Case.” This creates excessive lead times, results in high storage costs, and makes it difficult to detect defects.

12 12 Over-Production Overproduction The simple solution to overproduction is turning off the tap; this requires a lot of courage because the problems that overproduction is hiding will be revealed. The simple solution to overproduction is turning off the tap; this requires a lot of courage because the problems that overproduction is hiding will be revealed. The concept is to schedule and produce only what can be immediately sold/shipped and improve machine changeover/set-up capability. The concept is to schedule and produce only what can be immediately sold/shipped and improve machine changeover/set-up capability.

13 13 Inventory Inventory-money tied up in stock Excess inventory tends to hide problems on the plant floor, which must be identified and resolved in order to improve operating performance. Excess inventory tends to hide problems on the plant floor, which must be identified and resolved in order to improve operating performance. Excess inventory increases lead times, consumes productive floor space, delays the identification of problems. Excess inventory increases lead times, consumes productive floor space, delays the identification of problems.

14 14 Waiting (queuing) Waiting- Unnecessary waiting/queuing Whenever goods are not moving or being processed, the waste of waiting occurs. Typically more than 99% of a product's life in traditional batch-and-queue manufacture will be spent waiting to be processed. Whenever goods are not moving or being processed, the waste of waiting occurs. Typically more than 99% of a product's life in traditional batch-and-queue manufacture will be spent waiting to be processed. Much of a product’s lead time is tied up in waiting for the next operation; this is usually because material flow is poor, production runs are too long, and distances between work centres are too great. Much of a product’s lead time is tied up in waiting for the next operation; this is usually because material flow is poor, production runs are too long, and distances between work centres are too great.

15 15 Motion Motion- This waste is related to ergonomics and is seen in all instances of bending, stretching, walking, lifting, and reaching. This waste is related to ergonomics and is seen in all instances of bending, stretching, walking, lifting, and reaching. These are also health and safety issues, which in today’s litigious society are becoming more of a problem for organizations. These are also health and safety issues, which in today’s litigious society are becoming more of a problem for organizations. Jobs with excessive motion should be analyzed and redesigned for improvement with the involvement of plant personnel. Jobs with excessive motion should be analyzed and redesigned for improvement with the involvement of plant personnel.

16 16 Transport Transport- Excessive transportation & handling Transporting product between processes is a cost incursion which adds no value to the product. Transporting product between processes is a cost incursion which adds no value to the product. Excessive movement and handling cause damage and are an opportunity for quality to deteriorate. Material handlers must be used to transport the materials, resulting in another organizational cost that adds no customer value. Excessive movement and handling cause damage and are an opportunity for quality to deteriorate. Material handlers must be used to transport the materials, resulting in another organizational cost that adds no customer value.

17 17 Rework Rework- defects, errors and mistakes Having a direct impact to the bottom line, quality defects resulting in rework or scrap are a tremendous cost to organizations. Having a direct impact to the bottom line, quality defects resulting in rework or scrap are a tremendous cost to organizations. Associated costs include quarantining inventory, re- inspecting, rescheduling, and capacity loss. In many organizations the total cost of defects is often a significant percentage of total manufacturing cost. Associated costs include quarantining inventory, re- inspecting, rescheduling, and capacity loss. In many organizations the total cost of defects is often a significant percentage of total manufacturing cost.

18 18 Over-processing Over-processing- unnecessary or over processing Often termed as “using a sledgehammer to crack a nut,” many organizations use expensive high precision equipment where simpler tools would be sufficient. Often termed as “using a sledgehammer to crack a nut,” many organizations use expensive high precision equipment where simpler tools would be sufficient. This often results in poor plant layout because preceding or subsequent operations are located far apart. This often results in poor plant layout because preceding or subsequent operations are located far apart. In addition they encourage high asset utilization (over- production with minimal changeovers) in order to recover the high cost of this equipment. In addition they encourage high asset utilization (over- production with minimal changeovers) in order to recover the high cost of this equipment.

19 19 8 th Waste 8 th Waste- Under-utilisation of Human Resources? 8 th Waste- Under-utilisation of Human Resources?

20 20 5 s

21 21 5 s Approach 5s Technique & Approach Introduction The 5s method is a systematic approach to establishing and maintaining discipline, order and housekeeping standards. The 5s method is a systematic approach to establishing and maintaining discipline, order and housekeeping standards. With this method, divisions or departments adopt and implement 5s as a means of improving quality, safety and productivity. With this method, divisions or departments adopt and implement 5s as a means of improving quality, safety and productivity.

22 22 Sort Sort Sort Eliminate all unnecessary tools, parts, and instructions. Eliminate all unnecessary tools, parts, and instructions. Keep only essential items and eliminate what is not required, prioritizing things per requirements and keeping them in easily-accessible places. Keep only essential items and eliminate what is not required, prioritizing things per requirements and keeping them in easily-accessible places.

23 23 Stabilise Stabilise Stabilise There should be a place for everything and everything should be in its place. The place for each item should be clearly labelled There should be a place for everything and everything should be in its place. The place for each item should be clearly labelled Items should be arranged in a manner that promotes efficient work flow, with equipment used most often being the most easily accessible. Items should be arranged in a manner that promotes efficient work flow, with equipment used most often being the most easily accessible.

24 24 Shine Shine Shine Clean the workspace and all equipment, and keep it clean, tidy and organized. At the end of each shift, clean the work area and be sure everything is Clean the workspace and all equipment, and keep it clean, tidy and organized. At the end of each shift, clean the work area and be sure everything is Spills, leaks, and other messes also then become a visual signal for equipment or process steps that need attention Spills, leaks, and other messes also then become a visual signal for equipment or process steps that need attention

25 25 Standardise Standardise Standardise Work practices should be consistent and standardized. All work stations for a particular job should be identical. Work practices should be consistent and standardized. All work stations for a particular job should be identical. All employees doing the same job should be able to work in any station with the same tools that are in the same location in every station All employees doing the same job should be able to work in any station with the same tools that are in the same location in every station

26 26 Sustain Sustain Sustain Maintain and review standards. Once the previous 4 S's have been established, they become the new way to operate. Maintain and review standards. Once the previous 4 S's have been established, they become the new way to operate. Maintain focus on this new way and do not allow a gradual decline back to the old ways. While thinking about the new way, also be thinking about yet better ways Maintain focus on this new way and do not allow a gradual decline back to the old ways. While thinking about the new way, also be thinking about yet better ways

27 27 5 s Tools Visual factory Visual factory Shadow Boards Shadow Boards Max & Min levels Max & Min levels Red Tag Areas Red Tag Areas 5s Audits 5s Audits

28 28 5 s Benefits Well disciplined area/workplace Well disciplined area/workplace Standardisation Standardisation Less wasted time trying to find tools, drawings, etc Less wasted time trying to find tools, drawings, etc Visualisation Visualisation Employee ownership/morale Employee ownership/morale Removal of waste/stock- savings Removal of waste/stock- savings

29 29 Work Balance Boards

30 30 Takt Time Your Takt time is the demand rate required by your customers in number of minutes per part. It is calculated by dividing you total available work time by the average number of parts required by the customer. Your Takt time is the demand rate required by your customers in number of minutes per part. It is calculated by dividing you total available work time by the average number of parts required by the customer.Takt timeTakt time The Takt time is the speed at which your factory should run, slower would mean that you would fail to meet customer demand and faster would cause you to build inventory. The Takt time of your factory is one of the most important factors to consider when designing your processes and work cells. The Takt time is the speed at which your factory should run, slower would mean that you would fail to meet customer demand and faster would cause you to build inventory. The Takt time of your factory is one of the most important factors to consider when designing your processes and work cells.

31 31 Value Add Vs Non Value Add

32 32 Work Balance Example Work Balance Board for Wheel Fit LH RH TAKT TIME

33 33 Questions Any Questions? Website: www. asl-training.co.uk

34 34 Value Stream Analysis “Whenever there is a product for a customer there is a value stream. The challenge lies in seeing it.” Definition of Value Stream Analysis *Complete descriptive analysis of process flows and a detailed breakdown of value towards the final product

35 35 High Level Current State Map VO __pcs __day _/wk Press Shop Final Assembly Body Construction Paint Shop Suppliers Customer 3 shifts Direct Heads 250 Staff secs avail C/O 7200 secs Stampings Indirect Heads 50 3 Shifts OEE 75% 3 shifts Direct Heads 200 Staff secs avail C/O 0 secs Bodies, Doors etc Indirect Heads 30 2 Shifts OEE 45% 3 shifts Direct Heads 700 Staff secs avail C/O 0 secs Assy’ Vehicles Indirect Heads 50 2 Shifts OEE N/A 3 shifts Direct Heads 200 Staff secs avail C/O 0 secs Bodies, Doors etc Indirect Heads 30 2 Shifts OEE 80% __/wk Marketing Schedule Plant Schedule MP&L Secs 3 Days 5 Days 3600 secs 120 secs 10 Days __pcs __day __pcs __day __/wk __pcs __day

36 36 Value Stream Analysis Value Stream Mapping covers the whole of the manufacturing processes from raw material to the shipment of finished goods. Value Stream Mapping covers the whole of the manufacturing processes from raw material to the shipment of finished goods. This may mean looking beyond the boundaries of the plant to suppliers and out to the customer. This may mean looking beyond the boundaries of the plant to suppliers and out to the customer.

37 37 Value Stream Analysis What can we learn from a VSA? Lead times Lead times Process times Process times Buffers sizes Buffers sizes Number of personnel Number of personnel Constraints Constraints Value/Non Value Add processes Value/Non Value Add processes Plan for future changes- Future state map Plan for future changes- Future state map Max/min levels Max/min levels Delivery times Delivery times


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