CONTINUAL IMPROVEMENT LEAN MANUFACTURE AND CONTINUAL IMPROVEMENT By Dr David J Horton Copyright© 2011 Beta Management Systems - All Rights Reserved

The Need for Continual Improvement The need to reduce costs

CONTINUAL IMPROVEMENT THE CUSTOMER WANTS: ONLY what is needed AS much as is needed WHEN it is needed ANYTHING MORE IS WASTE

What we need to do: 100% right first time The right cost that affords the company a reasonable profit 100% on time

What is lean Manufacturing AIM Lean production is aimed at the elimination of waste in every area of production including workshop management GOAL To incorporate less human effort, less inventory & less space To become highly responsive to customer demand while producing top quality products in the most efficient and economical manner possible.

Lean Manufacturing Objectives Lower the cost of production by streamlining the process Reduce time spent on “NON VALUE ADDING” activities Focus on “VALUE ADDING “ activities Eliminate all forms of waste from the process Understand and move towards the concept of “ZERO” Zero defects Zero inventory Zero delay Zero downtime Aim:

Lean Manufacturing Objectives GOAL To become highly responsive to customer demand while producing top quality products in the most efficient and economical manner possible.

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)

Quality Cost Delivery Q C D The 3 criteria for assessing the production performance of a company: Quality Cost Delivery

The 7 Q C D Measures The 7 measures of Quality, Cost and Delivery are: 1. Not Right First Time 2. Delivery Schedule Achievement 3. People Productivity 4. Stock Turns 5. Overall Equipment Effectiveness 6. Value Added per Person 7. Floor Space Utilisation Primary impact Secondary impact

Process Improvement Spirit Challenge all fixed ideas Do it now! No excuses Get to the root cause by repeatedly asking why? (5 Whys) Improvement is infinite Better is not good enough (Continual Improvement)

The first building block of continual improvement 5S Made Easy: Seiri = Sort Seiton = Set in Order Seiso = Shine Seketsu = Standardise Shitsuke = Sustain The first building block of continual improvement

Continuous Improvement Improvement Activity Standard Ops. Visual Management 7 Wastes 5S The first building block of continual improvement

Workplace Organisation and 5S Sort Only have in the area that which is required Set in Order A place for everything & everything in its place Shine Determine the current condition of a machine or area and maintain it in good clean working order Standardise Ensure the current standard is maintained & improved Sustain Every employee understands the benefits & contributes to the improvement and endeavours to continually do so

5S – The Aim Sustainable Continual Improvement To promote a safe working environment To improve the organisation & standards of the workplace Create the best environment in which to produce a product Leads to a more efficient operation of the workshop or office Sustainable Continual Improvement

5S - Sort

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.

5S - Shine (Clean & Check) Aim: To determine the current condition of a machine or area and maintain it in good working order How: Manually clean from top down, identify/tag concerns Safety Critical items Quality Critical items Broken items etc. Equipment: Rags, Brushes, Brooms, Buff tags, Degreaser, Gloves, Safety Glasses, Photographs

5S - Standardise Aim: Ensure that the current standard is maintained and improved How: Make it easy to maintain Daily checklist and visual standards Establish clear responsibilities Audits Introduce to other operators/shifts Equipment: Photographs Checklist

5S - Sustain Every employee follows the rules and understands the benefits and contributes to the improvement.

Line Before 5S

Line After 5S

Visual Management

Continual Improvement The 7 Wastes

The 7 Wastes The second building block of continual improvement Improvement Activity Standard Ops. Visual management 7 Wastes 5S The second building block of continual improvement

7W – 7 Types of Waste Overproduction Inventory Transportation Process Producing more than the customer demands Inventory Stocks of raw material, work in progress and finished goods Transportation Unnecessary moving or handling of parts Process Excessive movement in process cycle Idle Time Operator inactivity during cycle Operator Motion Any unnecessary or walking, bending, turning and reaching Bad Quality Producing scrap parts & Reworking of parts

7W – The Elimination of Waste Identify, Categorise and Eliminate all waste and reduce costs How: 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)

7W - Overproduction What? Examples: Why? Producing more than the customer demands Examples: Manufacturing ahead of customers schedule Over running an unstable process Why? Hides manufacturing problems Creates inventory resulting in ALL other wastes Consumes resources ahead of schedule

(Stocks of raw material, work in progress and finished goods) 7W - Inventory (Stocks of raw material, work in progress and finished goods) After Before

7W - Transportation What? Why? Unnecessary moving or handling of parts Handling equipment moving with no parts Raw material batch sizes not matching production batch size Why? Transportation does not add value

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

7W - Process What? Why? Excessive set-up or downtime (SMED) Inappropriate processes Excessive movement in process cycle Why? Because it does not add value

7W – Idle Time What? Why? Operator inactivity during cycle Machine inactivity during cycle Why? When an operator or machine is idle, no value is being added to the product

7W – Operator Motion What? Why? Any unnecessary or walking, bending, turning and reaching Why? These activities do not add value to the product

(Any unnecessary or walking, bending, turning and reaching) 7W – Operator Motion (Any unnecessary or walking, bending, turning and reaching) OLD WAY NEW WAY

7W – Bad Quality What? Why? Producing scrap parts Reworking of parts It interrupts scheduled production It consumes resources Extra overtime to replace bad quality production

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