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Lean Manufacturing Introduction
Prepared By Value Stream-Improvement
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Lean Manufacturing Introduction
Agenda History What is Lean Manufacturing Seven Wastes + One Visual Measures Benefits of Lean Appendix Review agenda
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History Lean Manufacturing comes from the Toyota Production System
Pioneered by Taiichi Ohno former vice president of Toyota Reduce cost Generate capital Make money More sales Remain competitive in growing global market Culture based on; working in every facet of the value-stream Lean manufacturing comes from the Toyota Production System Taiichi Ohno a VP of Toyota claimed that Toyota must; Reduce cost Generate capital Make money More sales Remain competitive in a growing global market That its culture leads to working within every facet of the value-stream
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What is Lean Manufacturing
ACE People MRD PREFERRED SUPPLIER The lean manufacturing umbrella encompasses People Include the ACE (Achieving Competitive Excellence) tools and MRD (Market Rate of Demand) To become a preferred supplier ACE = Achieving Competitive Excellence MRD = Market Rate of Demand
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What is Lean Manufacturing
Suppliers Hamilton Sundstrand Customers Total Value-Stream Feedback Mechanism Top-level view of the total value-stream Customers pull material from Hamilton Hamilton pulls material from its suppliers Feedback between customer and supplier Course corrections
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What is Lean Manufacturing
CUSTOMER High - Quality Least - Cost On-Time Delivery Value-Stream To achieve what customers expect, it requires empowered teams to… Identify and eliminate waste Study value-stream and simplify Understand EH&S issues and achieve excellent improvements Provide high quality, least cost, and on-time deliveries Customer focus Excellent - EH&S Simplification of Value-Stream Systematic Elimination of All Waste Employee Empowerment (Teams)
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What is Lean Manufacturing
Customers Expect On-Time Deliveries Least Cost High Quality Ask “What are three expectation of our customers?” (Get feedback) On-time deliveries Least cost High Quality
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What is Lean Manufacturing
Doing wrong things right Effectiveness directly affect customer Efficiency indirectly affect customer Customer Satisfaction Doing wrong things wrong Unnecessary travel Writing reports that contain errors - producing hardware with errors Doing wrong things right Waiting for approval Following process without questioning/understanding Doing right things wrong Passing on defective work Providing incomplete information Doing right things right Output is accurate, on-time, and valued by customer
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What is Lean Manufacturing
System requires continuous improvement of the Value-Stream; Marketing Engineering Materials management Manufacturing process Supply Chain Customer service Efficient and effective organizations with…Least-Cost and Zero-Waste... Continuous improvement in all areas (example) Marketing Engineering Materials management Supply chain Customer service Efficient and effective organizations with - least-cost and zero-waste
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What is Lean Manufacturing
“As–Is” Eliminate Non–Value Added “To-Be” When redesigning the process; Eliminate non–value added activities Increase organizational spans of control Reduce the number of decision points Increase yields Simplify and streamline
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What is Lean Manufacturing
Traditional Manufacturing Functional layout Central Stores Batch Manufacturing Low-customer/supplier communication Material Turn Drill Mill Customer Assembly Stores Quality Control Production 7 8 2 3 1 5 6 4 9 Customer Assembly Drill Turn Material IN OUT Mill Lean Manufacturing Process layout Short Cycle Times Waste elimination Visual Controls Pull System High-Customer/supplier communication 1 2 3 4 5 6 Traditional manufacturing layout Functional layout Central stores Batch manufacturing Low-customer/supplier communication Lean manufacturing Process layout Short cycle times Visual controls Pull system High-customer/supplier communication > No stores > Quality is process controlled > Material is pulled via visual controls (kanbans)
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What is Lean Manufacturing
Push Vs. Pull Push System Procuring or producing products in scheduled lot sizes, whether or not the total quantity is required… Order start triggered by MRP system Pull System Procuring or producing products at the customer’s consumption rate… Order start triggered by empty kanban signal Push system Product/material is scheduled in lot sizes, whether or not the total quantity is required Triggered by MRP Pull system Product produced at customer’s consumption rate Triggered by empty kanban Example: Relate to how the bread man fills the bread aisle at a grocery store...
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What is Lean Manufacturing Market Rate of Demand (MRD) Pull Signal) Definitions
Kanban: A trigger signal to produce/deliver parts/material. Produce kanban: A kanban used to control production of an item Raw Material kanban: A kanban used to control raw material availability. Replenishable kanban: A type of kanban that is to be replenished (filled) when a trigger point is reached (i.e. empty, redline, minimum quantity, etc.) This type of kanban is typically used for frequently used material or frequently manufactured goods, and end-to-end supply chain products. Non-replenishable kanban: A type of kanban that is not replenished (filled) when emptied. This type of kanban is typically used for products with infrequent demand. Note: The same part can be replenishable for some cells and non- replenishable for other cells within the same plant.
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Flow lines fed by kanban signals
What is Lean Manufacturing The Vision: End-to-End Supply Chain C u s t o m e r Sub Assy’s Cell#1 Cell#2 Cell#4 Cell#3 K b Shop Cells PULL Raw Mat’l Components K b Supplier PULL K b Assembly PULL PULL PULL PULL PULL PULL PULL PULL Flow lines fed by kanban signals
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Seven Wastes + One WASTE = Anything other than what is absolutely essential to Add Value to the Product... 1. Overproduction 2. Delay or waiting for processing 3. Transportation 4. Manufacturing processing waste 5. Excess inventory 6. Waste of motion 7. Shipping defective hardware Waste = Anything that is not essential in adding-value to the product Shop ) Overproduction - making more than required ) Delay or waiting for processing - waiting for operation to complete ) Transportation - moving hardware more than what is required ) Mfg. processing waste - producing defective hardware or turn-backs Excess inventory - more inventory than what’s required ) Waste of motion - excess movements in production ) Shipping defective hardware - quality escapes at customer Office ) Passing on work that contains errors ) Inefficient business operations ) Cycle time Vs. lead time (Approvals) ) Walking, reaching bending ) Distribution; mail, air/car travel ) Copies, files ) Excess documentation, procedures, work backlogs > Not utilizing talent/knowledge of people Not utilizing the talent and knowledge of human resources
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Seven Wastes + One Customer Feedback Satisfy Customer Needs
Process 1 3 Customer Process 2 Satisfy Customer Needs Teams Eliminate Process Waste... “Based on Process Feedback” In this example Process 3 provided feedback of a problem from process 2 Process 2 - Team studies process inputs and outputs, then makes changes So basically the team eliminates process waste…Based on process feedback...
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Employee Satisfaction Customer Satisfaction
Visual Measures Employee Satisfaction Intergration Communication Quality EH&S Customer Satisfaction Cost Delivery Visual measures Employee satisfaction EH&S Quality Delivery Cost Customer satisfaction Communication…Communication... Respect
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Benefits of Lean Open Communications (Internally - Externally)
Customer Satisfaction Preferred Supplier - Equals more sales and future work... Investable Business Preferred Employer Eliminate Waste Create Flexibility - Ability to respond quickly to change with less waste and rework Open Communications (Internally - Externally)
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Q & A
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Appendix
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Visual Measures - Examples
Employee Satisfaction 5S Level % Cross-trained Training hours/employee Employee survey 360 reviews Labor turnover% EH&S OSHA recordables Incidence rate Near miss count Ergonomic rating Pound of air emissions Delivery Daily deliver performance Takt time to cycle time performance
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Visual Measures - Examples
Quality Cost of quality First-time-yield PPM and Escapes % of Certified suppliers Warranty % of sales Cost Total Cost Manufacturing overhead rate Cycle time (days) Cost reduction/unit Warranty $ Inventory turns Overall equipment effectiveness (OEE) Sales per employee Customer lead-time Value-add/Non value-add Customer Satisfaction On-Time delivery % Warranty Claims
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Improvement Activities
Supply Chain Management Systems People Systems Leadership Operating Environment Areas Review the five areas
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Improvement Activities - Examples
Leadership Vision, Values, Beliefs Balance Scorecard Product teams manage value-stream Benchmarking Policy deployment People Systems Skill assessment Training needs Career development planning Mentoring Management Systems ACE (Achieving Competitive Excellence) Value-stream mapping MRD (Market Rate of Demand) Capacity planning Resource allocation TPM (Total Predictive Maintenance) Leadership Management systems People systems
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Improvement Activities - Examples
Operating Environment 5S Visual controls Value-add analysis Waste elimination Group technology Flexible layout Cellular manufacturing Standardization QCPC Safety improvements TPM (Total Predictive Maintenance) Kaizen Takt time/Cycle time Standard work Pull system One - piece flow Establish supermarkets Kanban Mix model production Mistake proofing Setup reduction BPM (Business Process Management) Operating environment - “Not just shop areas”
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Improvement Activities - Examples
Supply Chain Supplier reduction Long-term partnering Certify suppliers Internet technologies Supplier development Supplier report card Communication process Kanban links
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Supply Chain Activities
Supplier Hierarchy PARTNER Selected Suppliers Sub Tier Sourcing Co-location Asset Management ACTIVE DEVELOPMENT Priority Suppliers ACE Tools Lean Mfg/Kaizen/VSI QUALITY All Suppliers Supplier Report Card All suppliers Supplier report card ASQR01 (Aerospace Supplier Quality Requirements) ESILK Priority suppliers ACE tools Lean mfg/kaizen/value-stream improvement HSM9 / UTC QR09.0 (Process Certification Specifications) Selected suppliers Sub tire sourcing Co-location Asset management
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Supply Chain Activities
Internet technologies Supplier Web Schedule Visibility Delivery Promises SDS (Supplier Direct Ship) KDS (Kanban Direct Ship) Intellimet Supplier self-assessment tool Supplier Report Card Nonconforming Parts (PPM) Parts Per Million Escapes On-Time Performance Internet technology Supplier web Intellimet Supplier report card
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