3 Definition of “Lean” Half the hours of human effort in the factory Half the defects in the finished productOne-third the hours of engineering effortHalf the factory space for the same outputA tenth or less of in-process inventoriesTerm “lean” coined by John Krafcik, one of the research members on Jim Womack’s MIT team for the 5 year study.Source: The Machine that Changed the World Womack, Jones, Roos 1990
4 Lean Manufacturing Product Shipment Customer Order Waste Time Customer is a manufacturing philosophy which shortens the time line between the customer order and the product shipment by eliminating waste.Business as UsualProductShipmentCustomerOrderWasteTimeLean ManufacturingThe sooner product ships, the sooner Cedar Works gets paidThe faster material moves through the systemLess money tied up in inventory in the systemCustomerOrderProductShipmentWasteTime (Shorter)
5 APICS Definition of Lean Manufacturing “A philosophy of production that emphasizes the minimization of the amount of all the resources (including time) used in the various activities of the enterprise. It involves:… identifying and eliminating non-value-adding activities,… employing teams of multi-skilled workers,… using highly flexible, automated machines”American Production and Inventory Control Society (APICS) is an organization for professionals working in the field of Operations Management
6 New Paradigm: Non-Blaming Culture Management creates a culture where:Problems are recognized as opportunitiesIt’s okay to make legitimate mistakesProblems are exposed because of increased trustPeople are not problems - they are problem solversEmphasis is placed on finding solutions instead of “who did it”PROBLEMSSOLUTIONS
10 Visual Factory“Ability to understand the status of a production area in 5 minutes or less by simple observation without use of computers or speaking to anyone.”5-S1S Sift and Sort (Organize)2S Stabilize (Orderliness)3S Shine (Cleanliness)4S Standardize (Adherence)5S Sustain (Self-discipline)
14 Kanban Production Control At the core of JIT manufacturing at Toyota is Kanban, an amazingly simple system of planning and controlling productionKanban, in Japanese, means card or marqueeKanban is the means of signaling to the upstream workstation that the downstream workstation is ready for the upstream workstation to produce another batch of parts
15 Kanbans and Other Signals There are two types of Kanban cards:a withdrawal card (W-Kanban)a production card (P-Kanban)Signals come in many forms other than cards, including:an empty cratean empty designated location on the floor
16 How Kanban Operates When a worker at downstream Work Center #2 needs a container of parts, she does the following:She takes the W-Kanban from the container she just emptiedShe finds a full container of the needed part in storageShe places the W-Kanban in the full container and removes the P-Kanban from the full container and places it on a post at Work Center #1She takes the full container of parts with its W-Kanban back to Work Center #2
17 Kanban Cards Withdrawal Kanban Card Part number to produce: M Part description: Valve HousingLot size needed: Container type: RED CrateCard number: 2 of Retrieval storage location: NW53DFrom work center: To work center: 35
18 Kanban Cards Production Kanban Card Part number to produce: M Part description: Valve HousingLot size needed: Container type: RED crateCard number: 4 of Completed storage location: NW53DFrom work center: To work center: 35Materials required:Material no. 744B Storage location: NW48CPart no. B Storage location: NW47B
19 Flow of Kanban Cards and Containers P-Kanban andempty containerW-Kanban andempty containerFull containerand P-KanbanFull containerand W-KanbanIn-processstorageUpstreamWork Center #1DownstreamWork Center #2Parts Flow
20 Containers in a Kanban System Kanban is based on the simple idea of replacement of containers of parts, one at a time.Containers are reserved for specific parts, are purposely kept small, and always contain the same standard number of parts for each part number.At Toyota the containers must not hold more than about 10% of a day’s requirements.There is a minimum of two containers for each part number, one at the upstream “producing” work center and one at the downstream “using” work center.
22 Reducing Inventories through Setup Time Reduction Central to JIT is the reduction of production lot sizes so that inventory levels are reduced.Smaller lot sizes result in more machine setupsMore machine setups, if they are lengthy, result in:Increased production costsLost capacity (idle machines during setup)The answer is: REDUCE MACHINE SETUP TIMES
23 SMED-metodenMät hela omstället och identifiera alla enskilda moment i omstället.Bestäm vilka steg som kan utföras innan- och efter att maskinen måste stannas (ej producerar). Dessa steg benämns externa steg.Minska tiden maskinen måste stå stilla genom att flytta de externa stegen innan- och efter maskinen står stilla.Förbättra verktyg, jiggar detaljer i maskinen samt arbetssätt för att förbättra de steg som bara kan utföras när maskinen står stilla, interna steg.Förbättra de externa stegen.Skriv ned de nya standarderna i arbetsinstruktioner och försäkra att att alla arbetar enligt det nya arbetssättet.
25 Effective Facility Layouts Workstations in close physical proximity to reduce transport & movementStreamlined flow of materialOften use:Cellular Manufacturing (instead of process focus)U-shaped lines: (allows material handler to quickly drop off materials & pick up finished work)
26 Traditional Process Focused Layout Jumbled flows, long cycles, difficult to schedule
27 JIT Cellular Manufacturing Product focused cells, flexible equipment, high visibility, easy to schedule, short cycles
29 INTRODUCTIONTotal Productive Maintenance (TPM) is an approach to managing physical assets that emphasizes the importance of operator involvement in making equipment reliableManagement has always held an operator accountable for production output. More than ever, that person is also responsible now for product qualityMany factors affect how well that can be achieved, including the way in which the workplace is organized as well as the equipment’s effectiveness. When several people are involved, producing quality depends on teamwork
30 In its broadest sense, TPM is based on the idea of autonomous operator maintenance, including three sets of principles.Maintenance Engineering; Seeks to manage the equipment life cycle, from strategic asset planning, through design and construction, to operation, maintenance, and disposal. Several techniques characterize the proactive nature of maintenance engineering including:Preventive (or planned) maintenance: Planned and scheduled maintenance activities to find and correct problems that could lead to failurePredictive and condition-based maintenance: Reducing fixed-time maintenance and relying on the condition of equipment to determine maintenance activity
31 The prime objectives of TPM are to: Maximize equipment effectiveness and productivity and eliminate all machine lossesCreate a sense of ownership in equipment operators through a program of training and involvementPromote continuous improvement through small-group activities involving production, engineering, and maintenance personnelEach enterprise has its own unique definition and vision for TPM, but in most cases there are common elements in any TPM program. These have been summarized in the TPM wheel in Figure 8-1
32 Elements Figure 8-1 The TPM Wheel Themes Training Decentralization Maintenance preventionMulti-skillingFigure 8-1 The TPM Wheel
33 TPM puts the power in the employee’s hand TPM puts the power in the employee’s hand. It grants workers autonomy, along with responsibilityAt the same time TPM recognizes that employees in one area have much to teach and learn from others The entire organization gains strength and ideas from motivated continuous improvement teamsA TPM environment encourages a skills between operators and maintenance, and multi-skill training in the various craftsIt can provide increase job satisfaction for operations, trades, engineering, and supervision alike
34 Figure 8-4 Tools and Techniques for TPM For Problem DefinitionFor Solution DevelopmentFor Team Decision-makingProcess flowchartingCustomer surveysConsequences seekingHistogramsCause and effect diagramsBrainstormingPlan chartsBenchmarkingNormal group techniqueTree diagramsForce field analysisMultivotingPareto diagramsFMECAPairwise rankingStatistical process controlFault tree analysisWeighted factor evaluationScatter plotsP-M analysisFailure AnalysisAutomated ToolsComputer aided design and draftingComputer aided manufacturingComputerize maintenance management systemMaterial management systemMaterials equipment planningComputer integrated manufacturingSimulationExpert systemsGeographic information management systemFigure 8-4 Tools and Techniques for TPM
36 What Is Value? "Value" is what the customer is buying Always think first about the end-customerWho is the customer?What are they buying?Describe value using the customers' wordsSpecific Example:TCAS (Traffic Collision Avoidance System)Who is the customer?Boeingthe pilotmaintenance crewconsumer flying to business meeting in New YorkWhat is the value to the END customer?Collision Avoidance that works all of the time.What is the value to an intermediate customer?E.g. Maintenance crewCollision avoidance that requires little/no repair, easy to maintain.
37 What Is Value Stream Analysis? Planning tool to optimize results of eliminating wastecurrent state VSMfuture state VSMValue Stream Mapping & Analysis is a method of creating vision and plans using value stream maps.Value Stream Maps help us:SEE WASTEPLAN ACTIONCOMMUNICATELeanBasics=++
38 Value Steam Mapping Steps Next Future StateFuture State28:00-31:00Broken into chunks, the value stream mapping process is a series of activities. Those activities are designed to establish an accurate and visual accounting of things as they are now (the current state). Then, using lean tools, you map out the future state. The future state is the to be state that you will drive to make your current state, 6-12 months from now. And finally, you develop a kaizen list of activities needed to make your current state into the future state.As you document the current state, develop the future state, and define the actions needed to make it happen, remember that the value stream map is a visual tool. You want to depict flow, both of product and information, and you also want to show the removal of waste.This path is the outline for managing by value stream. To be able to effectively manage this way, our maps have to be accurate, usable, and measurable.Current StateOriginal State
39 Value Stream Scope Extended Value Stream Multi-plant/Multi-company Concept LaunchOrder DeliveryIn-use RecycleMulti-plant/Multi-companyAction31: :00Let’s talk about levels of value stream? Make sure you understand the concept of high level vs deep dive mapping.If you study learning to see, and seeing the whole, you will notice that value stream maps can be done for every level. You can do one at 50,000 feet that describes the flow of product and information across the whole enterprise. Or you can do one that shows the sectional flow for a particular plant, or engineering. You can even get detailed enough to follow the flow for production of a specific product, or report in an office environment. That is one of the major functional attributes of using value stream maps. You can tailor them to the level of detail you need to communicate your flows, waste, and desired future states. It is also one of the primary reasons we need to use standard icons for maps, as we change levels of detail, we need consistent communication. Most high level value streams depict flow in too general a method to specifically target waste. To be able to identify the sources of waste, you have to do a deep dive vsm.A deep dive vsm is when you focus on a particular section of the larger vsm and map it in greater detail. The process is the same, current state, followed by future state with an action plan. But by focusing on a smaller section of the map you can easily identify specific actions to remove waste. Care must be taken to make sure you are not optimizing one section of the larger map at the expense of overall product and information flow. This is a coordination effort that managing by value streams requires. Continuously, leadership must have their eye on the overall picture of flow and be trying to make improvements at a more detailed level.PlantActionActionActionAction
40 Apply Five Simple Principles: Specify value from the standpoint of end customerIdentify the value stream for each product familyMake the product flowSo the customer can pullAs you manage toward perfectionPerfectionPULLFLOWVALUE STREAMVALUELean Principles in VSM 36:00-40:00To fit VSM into the overall structure of lean, you look to map the flow of value.That value is specified by the end customer. That is the hard decision point for whether or not something is value added. The result is that most of what you do will be declared waste, although it may be of value to interim customers within your particular flow.The VSM shows how customer value moves through your enterprise. The path is called a stream. The products, services, information, or whatever it is you do for the customer, flows through that stream. Within the stream are impediments to that flow. These are the waste components the VSM makes visual.The future state describes changes you will make to the stream so that the customer can pull their value through the stream with fewer impediments.Again, the impediments are described in the language of quality, cost, and time.You repeat the process of cleaning up the stream over and over as you identify further impediments, striving for a stream with perfect flow.
41 What is the Value that Flows? Specify value from the standpoint of the end customerAsk how your current products and processes disappoint your customer’s value expectation:price?quality?reliable delivery?rapid response to changing needs????flow product/information 40:00-43:00Make sure that you capture information as well as product flow. Both are equally important in making improvements and removing waste. Quite often the sources of the waste are in the information flow.make it visual 43:00-45:00Remember, the art of value stream mapping lies in making the flow and the waste clearly visual to any person observing the map.must haves: There are some must haves in terms of making the value stream mapping effort worth the effort
42 What Flows? In manufacturing, materials are the items "ITEMS" flow through a value streamIn manufacturing, materials are the itemsIn design & development, designs are the itemsIn service, external customer needs are the itemsIn admin., Internal customer needs are the itemsAnalysis begins with part of a total value stream,That part of the value stream has customers too
43 Material Flow Icons FIFO Outside Sources Manufacturing Process Data BoxC/T = 45 sec.C/O = 30 min.3 Shifts2% ScrapManufacturing ProcessASSEMBLYOutside SourcesXYZ CorporationBuffer or Safety StockSupermarketTruck ShipmentMon. + Wed.300 pieces 1 DayInventoryFinished Goods to CustomerFirst-In-First-Out Sequence FlowFIFOmax. 20 piecesPhysical Pull/Withdrawaluse the icons 50:00-56:00Let me repeat, use the icons. Why have we never adopted the discipline of using the icons to map our flows? Because what we understand are process maps. Process maps are not value stream maps, they are totally different, in concept, use, and usability. Value stream maps map the flow of value, and record the impediments to that flow. That is the difference between VSM and process maps. Process maps just show the process as it is. VSM is designed to highlight issues and suggest improvementsHere are some icons we use to illustrate flow of material.Describe process-----supermarket-----answer questionsThe icons allow us to standardize our maps. This is critical since those maps will be a real time working tool and our method of communication for flow, improvements, and status in the future. The maps need to be understood by everyone in the area and everyone visiting the area from elsewherePUSH Arrow
44 Information Flow Icons Sequenced-Pull BallSignal KanbanLoad Leveling BoxElectronic Information FlowManual Information Flow“Go See” Production SchedulingKanban PostScheduleWeekly ScheduleWithdrawal KanbanProduction KanbanGeneral Icons56: :00Equally important, if not more so, is the flow of information. This area is one where Rockwell maps in the past have been deficient. Take the time to familiarize yourself with these icons and make sure you use them to capture information flows.(Talk about manual----electric----kanban)Kaizen Lightening BurstUPTIMECHANGEOVEROperator
45 TAKT TIMEEffective Working Time per ShiftCustomer Requirement per ShiftTakt Time =59: :00A fundamental piece of flow is the rate of that flow. A measure at the core of flow is takt time. Simply stated it is the heartbeat of flow or the rate at which product is produced or the time available per unit.The actual measure is time available divided by quantity needed. The practical use of takt time is having people understand how often and when product should be advancing. When those times are missed it clues people into needing to look immediately for the problem or source of the extra time.It keeps people focused and provides a pace or cadence. People will learn the cadence and become familiar with it, and will respond when it is broken.Synchronizes pace, evenly applying customer demand across the work day.Takt Time is "Beat Time"? "Rate Time" or “Heart Beat" Lean Production uses Takt Time as the rate or time that a completed product is finished. If you have a Takt Time of two minutes that means every two minutes a complete product, assembly or machine is produced off the line. (http://www.isixsigma.com/dictionary/Takt_Time-455.htm)
47 Benefits of Lean Manufacturing % Waste reductionWIPInventorySpacePersonnelProduct lead timesTravelQuality, costs, delivery
48 Setting the Foundation Evaluating your organizationManagement cultureManufacturing cultureLean Manufacturing AnalysisValue stream (from customer prospective)HeadcountWIPInventoryCapacity, new business, supply chain
49 Tools of Lean Mfg/Production Waste reductionFull involvement, training, learningCellular mfgFlexible mfgKaikaku (radical change)Kaizen (continuous improvement) & standard work5SJidoka (autonomation)Poka-yoke (visual signals)Shojinka (dynamic optimization of # of workers)Teien systems (worker suggestions)
52 Henry Ford - Standards“To standardize a method is to choose out of the many methods the best one, and use it. Standardization means nothing unless it means standardizing upward.Today’s standardization, instead of being a barricade against improvement, is the necessary foundation on which tomorrow’s improvement will be based.If you think of “standardization” as the best that you know today, but which is to be improved tomorrow - you get somewhere. But if you think of standards as confining, then progress stops.”Henry Ford, 1926Today & Tomorrow
53 Standardized Work Captures best practices Posted at the work station Visual aidReference documentwork sequencejob layouttime elementssafetyDeveloped with operatorsBasis for Continuous ImprovementShow sample Standardized Work from Cedar WorksBring training manual
54 Other Tools Visual Factory Error Proofing Quick Change-over Total Productive Maintenance
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