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Cypress Review—Confidential 1

Lean Manufacturing Toolbox

Tim Conway

tconway@mnasq.org

13 November, 2018

Lean Manufacturing Toolbox 2Tim Conway

Are You A Lean Practitioner?

Do you…  Have a drop zone for your keys, wallet, purse, etc.?  Organize your kitchen silverware by type and size?  Have a set location for your garage shop tools?  Set out your work clothes the night before?  Wash your car windshield while the gas is pumping?  Prefer roundabouts over stop lights for low-volume intersections?

If you strive to be efficient and organized then you’re a lean practitioner

Cypress Review—Confidential 2

Lean Manufacturing Toolbox 3Tim Conway

Agenda

This workshop covers the following topics:  Lean Manufacturing Concepts  Lean Tools

Desired outcomes; upon completion of this presentation, you will be able to:  Define the concept of a Value Stream  Define Value-Added, Non-Value-Added and Incidental activities  Define 7 types of wastes  Discuss 4 strategies to remove waste  Describe the usage of several lean tools

Lean Manufacturing Toolbox 4Tim Conway

Lean Manufacturing Concepts

Cypress Review—Confidential 3

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Lean Manufacturing

Lean Manufacturing is derived from the Toyota Production System (TPS)

Objective:  Create maximum value for the customer by continual

focus on elimination of waste

Areas of focus:  Improve the flow of work to expose waste and quality

problems

 Eliminate waste

“The Machine that Changed the World”

MIT researchers coined the term “lean manufacturing” in this 1990 book to describe the Toyota Production System

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Lean Focus: Value Stream

Value Stream is the set of key actions required to create and deliver a product or service to the customer.

Everything not in the value stream is potential waste

“Whenever there is a product (or service) for a customer, there is a value stream. The challenge lies in seeing it.”

Suppliers Fab Processing Customers

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Lean’s Core Strategies

1. Eliminate waste

Waste

Variability Inflexibility

3. Maximize flexibility and synchronization to customer demand

2. Control variability

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Types of Activities

Three types of activities in Lean Thinking

10%

40%

50% Non-Value Added (Waste)

Incidental

Value-Added

Elements of work

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Value-Added  Activity that directly affects the

end product in a way that the customer is willing to pay for

 Typically 10-15% of activity before optimization

Examples:

 Impacts form, fit or function of the product, such as adding layer to a semiconductor chip

 Gathering data that enhances the value of the product

Types of Activities

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Incidental  Activity that does not directly

add value but is necessary to ensure completion or integrity of value-added tasks

 Adds cost and in theory could be reduced without affecting the product.

 Typically 30-50% of activity before optimization

Examples:

 Product inspection and testing  Tool qualification testing

Types of Activities

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Non-Value Added  Activity that does not add value  Waste

Examples:

 Reworking or redoing  Building finished good inventory  Providing more data than the

customer ordered

Types of Waste:

 Transportation  Inventory  Motion  Waiting  Overproduction  Over-processing  Defects

Types of Activities

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Non-Value Add & Incidental

90%

Non-Value Add & Incidental

81%

Value Add

10%

Value Add

19%

Why Waste Elimination is Important

Eliminating 10% of non-value added activity can nearly double the productivity

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Inventory

Motion

Waiting

Over- processing

Defects

Over- production

WASTE

Types of Lean Wastes: “TIM WOOD”

Transportation

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Waste – Transportation

 Transport of raw materials or completed product

 Excessive transportation slows down the production pace

 Handoffs between areas increases risks of errors

 Handoffs also increase risk of miscommunication between areas

 Visual management of the line is difficult

Painting deck Material flow

5

1 3

8 4

2

7 6

Excess distance

from Stop 4 to Stop 5

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Waste – Inventory

 Excess inventory increases manufacturing cycle time and customer lead time

 Inventory increases operational costs (e.g., storage cost, risk of obsolescence)

 High inventory levels are a symptom of other problems in the system • System inflexibility • Poor line pacing • Poor process capability • Variation in machine availability

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Waste – Motion

 Unnecessary or excessive motion of people or machines

 Example: operator has to go to the office to phone the inspector every time a product lot is completed

 Motion waste is usually caused by the layout not being optimized for the process

Office Distance= 70 ft

Frequency = 30 times per shift

Walking time = 2 minutes

1 hour walking time

per shift

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Lean Manufacturing Toolbox 17Tim Conway

Waste – Waiting

 Waiting on parts, tools, people or information

 Waiting can also be within-process  Symptom: production pace is highly

variable

 Symptom: workload is not leveled among operations

 Excess capacity and high WIP levels compensate for the variable pace

Waiting time

0

4

8 12

16

20

24

28 32

36

40 Takt time: 40 seconds

O pe

ra tio

n 1

O pe

ra tio

n 2

O pe

ra tio

n 3

O pe

ra tio

n 4

O pe

ra tio

n 5

O pe

ra tio

n 6

O pe

ra tio

n 7

O pe

ra tio

n 8

T im

e (s

ec on

d s)

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Waste – Overproduction

 Overproduction occurs when product at any step of the process is processed sooner, faster, or in greater quantities than customers demand

 Examples: batch processing, pushing product bubble to next step

 Overproduction can increase the impact of other types of wastes such as inventory, waiting and defects

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Lean Manufacturing Toolbox 19Tim Conway

Waste – Overprocessing

 Overprocessing is performing additional processing over and above the true customer requirements

 Examples: over-etching, over-polishing, double-checks

 May result from internal standards that are tighter than the true customer requirements in order to provide risk mitigation

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Waste – Defects

 Defect is anything that prevents the product, service or process from performing its intended function

 Requires additional resources, line capacity and buffer inventory to avoid major disruption to the production pace

0

50

100

150

200

250

300

350

400

1 4 7 10 13 16 19 22 25 28

Reworked

Quantity

Day

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The 8th Type of Waste

Under-utilization of resources and talents

“Are there online training resources that we can use so we don’t have to wait for a class.”

“I spend a lot of time doing paperwork that really has no benefit.”

“I waste time each day waiting on reports to be delivered from other departments.”

“Our team spends a lot of time collecting metric data that we feel is not relevant.”

1

7

5 4

3

2

The 8th type of waste is under-

utilization of people6

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Lean Manufacturing: Principles

Flow: Near Continuous Flow, Small Batch Sizes

Pace: Synchronized Between Steps, Aligned to Customer Needs

Pull: Scheduling at Each Step Linked to Customer Demand

Level: Resources Balanced to Reduce Over o