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Kaizen
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Presentation on Lean Manufacturing
Mfg. Eras & Definition
Waste & Lean mind setin Organization
Fundamentals of Lean mfg..
System Implementation
Comparison with 6sigma & Lean mfg. Results
Eras in Manufacturing• Craft production
– has existed for centuries• Mass production
– developed after World War I by Henry Ford and General Motors’ Alfred Sloan
– Based on principles of Scientific Management• Lean production
– developed in Japan after World War II– pioneered by Eiji Toyoda and Taiichi Ohno of
Toyota
Comparison
large product varietyhigh productivity and low cost
low productivity, and high cost
high productivity and low cost
standardized productsunique, individualized, custom made products
highly flexible machines
expensive, single purpose machines
simple, flexible tools
teams of multiskilled workers
unskilled or semiskilled workers
highly skilled workers or artisans
LeanMassCraft
Why Lean or 6 Sigma?Business generally hold competitive advantages over their competitors for one of two reasons:
1.Unique Products:Having Superior product to their competition,often in the form of technological capabilities or niche marketing.
2.Low Cost Products:Having a superior process to their competition,often in the form of internal efficiencies or low cost production.
Lean Manufacturing a “brief history at Toyota”
•Manufacturer of trucks and small automobiles in Post-WWII Japan
•A”need” was declared by Toyota’s President to discover a new production method that would eliminate waste and help Toyota catch up with foreign competitors.
•Chief engineers studied writings of Henry ford,then visited Ford plants extensively in the 1950’s -begins the”war on waste”
•IMVP study in 1980’s early identified”Lean Manufacturing”
•1984,Toyota becomes a North American manufacturer with joint venture at NUMMI plant in California.Stellar Results
•1990’s and Beyond,Lean Production Strategies adopted in numerous Industries
•All other Car manufacturers have adopted Lean principles!
Organizations works on Lean
•Boeing
•BMW
•Carrier
•Caterpillar
•Chrysler
•Coca cola
•Dell
•Delhi
•Ford*
•General Motors*
•US Navy*
•Pepsi,co* =both lean and 6sigma
Lean Production
• There are many popular manufacturing buzz words these days, including– Just in time– Continuous improvement– Concurrent engineering– Flexible manufacturing– Total quality management– Statistical process control
• These are all integral parts of lean production
What is Lean Manufacturing?
It is a Strategy to achieve significant,Continuous Improvement in Performance
through the elimination of all waste of time and resources in the total Business Process
Seven types of wastes• Processing itself• Delay & Waiting• Over Production• Motion• Transportation• Inventory• Scrap & Rework
Waste&Lean mind setin Organization
Developing the Lean Mind sets
Cost added70%
Value added30%
30%
70%
30%
10%
0%20%40%60%80%
100%
Before AfterValue added Cost added
3-Step Rules to eliminate Waste
Total
90%
reduction
Step-I
50% reduction
Step-II
2nd 50% reduction
10% of Original Waste
Throughout the Improvement
process,a company must avoid settling
for superficial solutions to cut
waste
Fundamentals in Lean Manufacturing
• Technology Management• People Management• Systems Management
Fundamentals of Lean mfg..
Technology Management
• Structured flow manufacturing• Small lot size production• Setup Reduction• Fitness for use
• Ideally a lot size of one or at the very least,equal to customer’s order.
• Measured as time(and cost)from the last good piece of the previous job or run to the first good piece of the new job to run.
• Short set up enables greater production feasibility,less inventory & more capacity.
Category Scope
• Each next step in the total business throughput process is the previous step’s customer
• One work center must meet the needs or requirements of the next work centers precisely
Structured flow manufacturing
• In functional manufacturing the ration of Work to Motion is low because the products usually required a lot of transportation and other movements during the manufacturing cycle.
Small lot Production
Setup reduction
Fitness For use
Technology Management
People Management
• Total employee Involvement• Control through Visibility• Housekeeping• Total quality focus
• When a problem occurs, so fast & how effective the decisive action can be taken
• Visibility is used as a effective Communication media
• A place for everything and everything in it’s place• Eliminate potential confusion,promote a safer environment and
reduction of waste of time,motion and resources
Category Scope
• Focus requires conformance to standards• Quality of the product indicates the quality of the Process.If there are
problems in the product quality,there are unacceptable variations in the manufacturing or Business process
• Focus encompasses the entire product chain from supplier to customer
Employee Involvement
• Improvement through small group improvement activities• Trigger the Empowerment
Control through visibility
House keeping focus
Total quality Focus
People Management
System Management
• Level load & Balanced flow• M/c maintenance(JH)• Supplier Partnerships• Pull system
• High level operating performance with in the requiredtolerances• Eliminate equipment as a source of process defect
• “Partner” implied long-term & stable relation ship with vendor• Focus on reducing costs for everyone through shared quality
goals,design responsibility,delivery in total cost perspective
Category Scope
• Materials to be pulled when they are needed.• Keeping the time of producing parts as close as possible to to the
time when parts are used• Need more attention in “week link”
Level load and Balanced flow
• Creates effective utilization of manufacturing resources• Level load is scheduling products to be manufactured in equal
quantities during a given period of time• Balanced flow -Continuous flow by effective application of mfg.
resources
Preventive Maintenance(now tbm/cbm & TPM way)
Supplier partnership
Pull system
System Management
Major Targets….
• Absenteeism <1%• More Multiskill• Quick Adaptation
for new methods
• More Reliability• Flexibility • Zero breakdown
Man Machine
• No rejectionMaterial Method
• Visibility/Transparent• Standard Operating
Procedures(3s..)
Steps Scope
Steps in Lean Manufacturing
• Layout change & Kanban for information & material flow
• Line Balancing,(Machine) & Operator Balancing
• Improve MTBF,Reduce MTTR & Reduce spare part consumption-(TPM Implementation-Autonomous maintenance)
Value Stream Mapping
• Study and plot a map of Material,information flow ,Manpower inventory,cycle time,setup time etc.
Create flow
Balance to takt time
Stabilize the Production line
Levelled Production • Match the Customer demand by uniform production rate
Zero Defect • Defect free to customer Process
Improve the flow • Paced withdrawal and Spider man Concept Implementation
What is Value Stream map?
Value stream mapping is a tool that helps you
‘to see and understand’ the flow of material and informationas a product makes its way through
the value stream
Value Stream Map-Over view
• Site Layout• Internal/External
logistics• Partners Value
stream• Plant level”door to
door”
• Process layout-Area layout/Cell design
• Internal/External logistics
• Kaizen (Flow-value stream improvement Vs Process-Elimination of Waste)
• Production scheduling according to demand
Macro Vs MicroMacro Micro
Value Stream Map-Objective
• Lead time Reduction• Inventory turn
Increases• Speed to Marketing
• Waste Elimination• Continuous
Improvement
Macro Vs MicroMacro(Business Strategy) Micro(Site/Operations)
CURRENT STATE MAP
Supplier
Marketing
Month/ weekly /daily plan
Customer
I I
Takt time 54 Sec
1 X daily
Daily Req. 600 Nos.
1 X Daily / weekly
Materialgatepass
Delivery Advice
Process Ratio
MR
P/ E
PO
C/T - Cycle Time C/O - Change Over Time
1 Day
= 0.6 %Production Lead Time
Value added Time=
780
129600
1
Inwarding
inspection
Uptime = 100%
C/T = 300s
C/O = 0
6(Shared)
Packing &
Shipping
2 (shared)
Raw Material
Stores
Kitting
Uptime = 100%
C/T = 60s
C/O = 0
Uptime = 100%
C/T = 60 s
C/O = 0
Order Plan
Uptime = 100%
C/T = 360 s
C/O = 0
1
1 DayProd. Lead time
Processing time300 s 60 s 60 s 360s
Step 1 Value stream mapping
Production
Daily P
lan
3 Days
3 Days
Process ratio - 0.6%
I6 Days
6 Days
Spiderman
Supplier Month/ weekly /daily plan
Customer
I
Takt time 54 Sec
1 X daily
Daily Req. 600 Nos.
1 X Daily
Materialgatepass
Process Ratio
C/T - Cycle Time C/O - Change Over Time
1 Day
= 2.36 %Production Lead Time
Value added Time=
765
32400
1
Inwarding
inspection
Uptime = 100%
C/T = 300s
C/O = 0
6
Finished goods
Shipping
2
Stores Kitting
Uptime = 100%
C/T = 45s
C/O = 0
Uptime = 100%
C/T = 60 s
C/O = 0
Order Plan
Uptime = 100%
C/T = 360 s
C/O = 0
Prod. Lead time
Processing time300 s 60 s 45 s 360s
1
Container size reduction
Online Packing
KanbanOperation
FUTURE STATE MAPStep 1 Value stream mapping
•(shared) •(shared)
Delivery Advice Re Design Work Table
Marketing
MR
P/ E
PO
Production
Daily P
lan
1 Day
Process ratio - 2.36%
I6 Days
6 Days
What is Super Market?
Super market is a place where material is available for the customer,
based on their requirement. From the point of view of a customer,
the Super Market -style purchase ensures that there is not going to be an excess purchase,
customer goes out to buy what is needed and when it is needed
Super Market Pull System"ordering" KANBAN "withdrawal" KANBAN
CUSTOMER PROCESS
Customer process goes to supermarket and withdrawswhat it needs when it needs it.
SUPPLYING PROCESS
Supplying process to replenish what was withdrawn.
PURPOSE
Controls Ordering at suplying process without trying to schedule.
"ordering" KANBAN
It Triggers Ordering of Materials.
"withdrawal" KANBAN
It is a shoping list that instructs the Material handler to get and
transfer materials.
RM-supermarket
Material MaterialA B
Supplying process
Customer process
Introduce kanban for Supplier parts
Supplierplant
store
Monthly schedule from F
Before After
Supplierplant
Super market
SPARES KANBAN
Example of FIFO System
Part no
Kanban cards
FIFO Lane#Withdrawal kanban
RM Description
Supermarket
Down stream process
Up stream process
# FIFO Lane
Operator Balance Chart - Example Step 3 & 4
An Example of Paced Withdrawal & Ordering
Drop kanbanat process center-1
Drop kanbanat process center-2
kanbanwithdrawal Material
Requirement
Drop kanbanat process center-3 ordering kanban
PACEMAKER PROCESS
"RM" supermarket
(repeat the cycle every pitch)
Vendor
ordering RM
2
3
1
4
Pull System
What is Pace setting?
Pace setting is based on the Cycle time of the process center which is directly having
impact on Customer Requirement.Pitch has to be set according to the takt time(available work time/customer requirement)
and quantity need to transfer,by multiplying both.
Why Pace setting?
To distribute the materials evenly over time at the pacemaker process, pace setting to be followed by Spider man..
Who is Spider Man?
The person from subsequent Process who is Pulling material from supermarket when he needs, is Known as Spider man.
He should come in a Paced manner in order to have load-smoothing system of production.
It will eliminate the peaks and Valleys in the work load to avoid excess production and excessive progression in a particular process. This system is increasingly
easier in change the production plan.
Lean & 6Sigma - a comparison
Goal:6 sigma = Reduce Variation
•Understand customer requirement(QFD)
•Focus on critical to quality variables
Lean=Remove waste
•Understand what customer sees as “value”(QFD)
•Eliminate everything that does not add value
Lean & 6Sigma - a comparison
Focus6 sigma = Problem focused
•Variation is a problem that can be addressed
•Find the sources with the Largest economic impact
Lean=Flow focused
•The constant “start and stop” of product results in costs that cannot be passed on to the customer•Find the barriers to flow(Work flow Vs Work forced to flow)
Lean & 6Sigma - a comparison
Primary Benefit6 sigma = Uniform Process output
•Predictable,dependable processes are always less expensive to operate(less scrap,rework)
•Most companies grossly underestimate their COPQ
Lean=Reduced flow time
•Improving flow will always reduce manufacturing cost(Ford,1926)
Lean & 6’Sigma - a comparison
Secondary Benefit6 sigma
•Less Waste
•Faster throughput
•Improved quality
•Less Inventory
Lean
•Less Variation
•Uniform output
•Improved quality
•Less Inventory
How 6’Sigma helps Lean?!
Lean
•Waste elimination
•Flow
•At the pull of the Customer
•Continuous improvement
Six sigma
•Variation reduction
•Scrap / rework elimination
•Process control
•Continuous improvement
Speed + Accuracy
=Performance•Lean exposes NVA/VA and makes value added flow
•6’Sigma reduces Variation of value added
Differences-Lean & 6 Sigma•Lean is long term - there is no done
•Lean is enterprise wide - it will ultimately involve all employees,as well as supplier and customers
•6’Sigma Project focused,projects usually last 3-6 months
•6’Sigma Promoted Product reliability,Lean promotes Organizational reliability.