Kenneth J. Andrews EMP Manufacturing Systems: EMP-5179 Dr. Ken Andrews High Impact Facilitation Fall 2010

Kenneth J. Andrews EMP

Kenneth J. Andrews EMP Logistics  Class times  Breaks  After-class activities  References  Assessment

Kenneth J. Andrews EMP Program Overview (Modules & Weeks) 7. Quality at Source 8. Customer Ints. 9. QFD & DFM 10. Teams & Change 11. Term Papers 1. Intro. To Manuf. Systems 2. Lean & JIT 3. Push vs. Pull Process Impr. 4. TQ Tools & Techs. 5. Value Stream Maps 6. Manuf. Metrics 12. Final Exam (Dec 13) No Class on Nov 8? No Class on October 11

Kenneth J. Andrews EMP Every Company has Three Types of Management Systems Technology Management Systems People Management Systems Business Management Systems

Kenneth J. Andrews EMP What is a “Manufacturing System”? Interactions of many processes, products and design decisions made in the engineering of a product. Machine requirements planning Process planning Production planning Concurrent engineering

Kenneth J. Andrews EMP Craft Manufacturing  Late 1800’s  Car built on blocks in the barn as workers walked around the car.  Built by craftsmen with pride  Components hand-crafted, hand-fitted  Excellent quality  Very expensive  Few produced

Kenneth J. Andrews EMP Mass Manufacturing  Assembly line - Henry Ford 1920s  Low skilled labor, simplistic jobs, no pride in work  Interchangeable parts  Lower quality  Affordably priced for the average family  Billions produced - identical

Kenneth J. Andrews EMP Lean Manufacturing  Cells or flexible assembly lines  Broader jobs, highly skilled workers, proud of product  Interchangeable parts, even more variety  Excellent quality mandatory  Costs being decreased through process improvements.  Global markets and competition.

Kenneth J. Andrews EMP Manufacturing Issues Falling sales – where to find new customers? Input costs increasing, sales income falling No time to introduce new methods No money to develop new products / processes How to increase output without increasing costs? Too small to compete OR Too big to react quickly to changing market Increasing complexity of legislation and regulation What can I / we / anybody do about it?

Kenneth J. Andrews EMP How Does Your Company Compete? Price Innovative Products Customised and Tailored Solutions Branded Products Removing hassle from the Customer Interpersonal Relationships ‘Informal’ homework thinking assignment: 1-2 examples for each.

Kenneth J. Andrews EMP Company Actions: What Can We Do? Fact-based management (Performance Measurement, KPIs) Do you know your competitive position? Do you know your industry best practice? Do you have a balanced scorecard? Do you have a means of monitoring critical inputs and processes?

Kenneth J. Andrews EMP Company Actions: What Can We Do? Mobilise your people Process focus Visual management Lean manufacturing Six Sigma Teamwork Delegation / Respect / Trust Change manifesto Simple Tools and Techniques – Not Rocket Science!

Kenneth J. Andrews EMP What’s Lean Thinking  Looking at manufacturing as three primary processes that create value for consumers: product development, order to delivery, service through the product’s life cycle.  Asking what value really is from the standpoint of the customer. (The purpose of the process.)  Asking how the process currently performs and how it could perform better.  Asking what people and business processes are needed to support the value creating processes.  Aligning purpose, process, and people in search of the perfect process.

Kenneth J. Andrews EMP Definition of “Lean”  Half the hours of human effort in the factory  Half the defects in the finished product  One-third the hours of engineering effort  Half the factory space for the same output  A tenth or less of in-process inventories Source: The Machine that Changed the World Womack, Jones, Roos 1990

Kenneth J. Andrews EMP Was Ford the First Lean Thinker? Ford saw a total system when others saw parts. By 1914 at Highland Park the full system of “flow production” was largely in place: A comprehensive gauging system to prevent more than one bad part from being made – poka yoke. A widespread practice of taking the process to the product to create fabrication activities resembling cells. Continuous flow in most assembly activities, made possible by interchangeable parts & standard work. A crude system of preventing over/under production.

Kenneth J. Andrews EMP Lean Manufacturing A manufacturing philosophy which shortens the time line between the customer order and the product shipment by eliminating waste. Customer Order Waste Product Shipment Time Customer Order Product Shipment Time (Shorter) Business as Usual Waste Lean Manufacturing

Kenneth J. Andrews EMP Price Increase Some Profit Bigger Profit Price to Sell Cost to Produce Cost + Profit = Price

Kenneth J. Andrews EMP Cost Reduction Some Profit Bigger Profit Price to Sell Cost to Produce Price - Cost = Profit

Kenneth J. Andrews EMP Traditional View of Manufacturing  A key objective was to fully utilize production capacity so that more products were produced with fewer workers and machines.  This thinking led to large queues of in-process inventory waiting at work centers.  Large queues meant workers and machines never had to wait for product to work on, so capacity utilization was high and production costs were low.  This resulted in products spending most of their time in manufacturing just waiting, an arrangement that is unacceptable in today’s time-based competition.

Kenneth J. Andrews EMP Toyota Production System Pull Manufacturing Just-In-Time World Class Manufacturing Lean Manufacturing JIT/TQC/EI/TPM Short Cycle Manufacturing One-Piece-Flow Cellular Manufacturing Demand Flow Manufacturing Stockless Production Focused Flow Manufacturing Agility Value Adding Manufacturing Group Technology Time Based Management Synchronous Flow Manufacturing Continuous Flow Manufacturing Many Names – Same Concepts

Kenneth J. Andrews EMP The Toyota Production System 5S Programme & Standardisation Increase Profits By Eliminating Waste JIT Just In Time Processing Jidoka Jidoka: No Defects Passed on Flexibility to Make Only What Customer Wants Waste Elimination “Production Smoothing” Foundation

Kenneth J. Andrews EMP Capacity Utilization % Capacity Utilization 60 Production Lead Times (days) Traditional Manufacturing JIT Manufacturing

Kenneth J. Andrews EMP Time-Based Competition  It is no longer good enough for firms to be high-quality and low-cost producers.  To succeed today, they must also be first in getting products and services to the customer fast.  To compete in this new environment, the order-to-delivery cycle must be drastically reduced.  JIT is the weapon of choice today in reducing the elapsed time of this cycle.

Kenneth J. Andrews EMP Expectations from Suppliers  Frequent deliveries.  Hours (not days) lead time.  Rapid response capability (not from stocks).  Delivery to assembly line at the right time in the right sequence without inspection.  Reliability (quality and timing).

Kenneth J. Andrews EMP Supplier Relationships  Long-term, steady relationships with a few suppliers.  Negotiation based on a long term commitment to productivity and quality improvement.  Interested in supplier capabilities. –Continuous improvement. –Product/process technology. –Design for manufacturability.

Kenneth J. Andrews EMP What’s in it for a Supplier?  A Stable Manufacturing Environment. –Steady production volume.  Leaner Processes. –Cost/Flexibility/Quality  Profits.

Kenneth J. Andrews EMP The Future ~ It’s Not What It Used To Be  The future - will not be an extension of the past  Competition - is NOT company vs. company… but rather infrastructure vs.. infrastructure  Value (seen by your customer) now defined by speed, convenience, personalization and prices  Knowledge as the source of competitive advantage  Velocity is the game – time is the currency of the future  Sharing – we’re more willing to share/learn from others  Game changing technology – it’s everywhere

Kenneth J. Andrews EMP Program Overview (Modules & Weeks) 7. Quality at Source 8. Customer Ints. 9. QFD & DFM 10. Teams & Change 11. Term Papers 1. Intro. To Manuf. Systems 2. Lean & JIT 3. Push vs. Pull Process Impr. 4. TQ Tools & Techs. 5. Value Stream Maps 6. Manuf. Metrics 12. Final Exam (Dec 13) No Class on Nov 8? No Class on October 11