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M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I PMTESmaryland technology extension service
Management Information Session
Lean Manufacturing
Maryland Technology Extension Service
Contributions made by the Lean Manufacturing Working Group
* Locally known as Alabama Technology Network/University of Alabama, Huntsville; Georgia Manufacturing Extension Partnership; Massachusetts Manufacturing Partnership; Michigan Manufacturing Technology Center; Delaware Valley Industrial Resource Center; and Tennessee Manufacturing Extension Partnership
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OBJECTIVE
To present a brief introduction to Lean Manufacturing to address the following:
1. What are the benefits of Lean Manufacturing?
2. What parts of the Organization are affected by Lean?
3. What are the “Keys To Success” in implementing Lean?
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What Are The Benefits of Lean?
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WHY COMPANIES INTRODUCED CELLULAR MANUFACTURING
1. On-Time delivery
2. Improved response
3. Reduced inventory
4. Improved quality
5. Improved workflow
6. Achievement of flexibility
7. Culture change
8. Delegation of accountability
9. Better use of plant
10. Better use of skilled labor
11. Job satisfaction
12. Information FlowFrom Ingersoll Engineers’ Study in “Making Manufacturing Cells Work” Edited by Lee R. Nyman, 1992
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LEAD TIME AND INVENTORY RESULTS
LEAD TIME % of Companies
No Change 4%
Decreased up to 25% 38%
Decreased 25%-50% 30%
Decreased more than 50% 28%
INVENTORY % of Companies
No Change 18%
Decreased up to 25% 30%
Decreased 25%-50% 33%
Decreased more than 50% 19%
“A majority of companies rated their overall investment as small or none.”
From Ingersoll Engineers’ Study in “Making Manufacturing Cells Work” Edited by Lee R. Nyman, 1992
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Customer Rejects Avg. 65% Reduction Manufacturing Lead-time Avg. 59% Reduction Lot Size Avg. 59% Reduction On-Time Delivery Avg. 95%
– 60% based on customer request date
– 40% based on promised date to customer
Approximate increase in unit Avg. 208% Increase
sales volume for specific
major products since 1990
From “AMERICA’S BEST - INDUSTRYWEEK’S Guide to World-Class Manufacturing Plants”
JIT/Continuous-flow Manufacturing 1993 1994 1995
96% 96% 100%
INDUSTRYWEEK - BEST PLANTS
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Lead Time Reduction
Productivity Increase
WIP Reduction
Quality Improvement
Space Utilization
0 25 50 75 100
Percentage of Benefits Achieved
Flexibility Skill Enhancement Visual Mgmnt
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Simplified Scheduling Less Transactions Less Variation, “More” Predictability Forecasts Become More Accurate Quicker Response To Design Changes Quicker Market Response Problems Are Visible Product Team Organization - Eliminates
Departmental Conflicts Facilitates Cross Training Facilitates Alternate Pay Schemes (Pay
For Skills)
ADDITIONAL BENEFITS
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BUSINESS GOALS THAT “LEAN” SUPPORTS
Turn Sales Orders into Profits as Quickly as Possible Decrease the time period from buying or fabricating components until you get paid by the customer for the finished product.
Increase ProfitsReduce Costs and Increase Sales.
Use Limited Resources Wisely People, Equipment, Buildings, etc.
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What is
Lean Manufacturing?
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Lean is a System strategy.
Successful implementation is in the Details.
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Toyota Production System Pull Manufacturing
Just-In-Time
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 End-Lining Operations Continuous Flow Manufacturing
MANY NAMES, BUT THE SAME CONCEPT
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“A team based approach to identifying and eliminating waste (non-value-adding activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection”
DEFINING LEAN (OR ONE PIECE FLOW, OR JIT, OR …..)
ANOTHER DEFINITION
“A manufacturing philosophy that shortens the time line between the customer order and the shipment by eliminating waste (non-value-adding activities).”
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Value AddedAny activity that increases the market form or function of the product or service. (These are things the customer is willing to pay for.)
Non-Value Added = Waste Any activity that does not add market form or
function or is not necessary. (These activities should be eliminated, simplified, reduced or integrated.)
DEFINITION OF VALUE ADDED
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Typically 95% of Total Lead Time is Non-Value Added!!!
RUNTIME
Order Processing, Transport, Storage, Waiting, Rework, Machine Setup, Inspection, Machine Breakdowns, etc...
Total Lead Time
LEAN = ELIMINATING THE WASTES
Raw StockQ C Rec Ship
Shear
Screw Machin
e
Q CStamp
AssemblyBrak
eMill
Lathe
Weld FinishGrind Parts Stock
Drill
Value-Added Time : MinutesTime in Plant : Weeks
ORDER CASH
FUNCTIONAL PLANT LAYOUT
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1. Overproduction
2. Motion
3. Inventory
4. Waiting
5. Transportation
6. Extra Processing
7. Defects
8. Underutilized People
** Producing goods and services that
don’t meet customer needs
**James Womack, “Lean Thinking”
THE 8 WASTES
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The Lean Techniques
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Cell– A grouping of dissimilar work stations or operations into a flow
line to produce a specific product or product family.– Cells can be formed to produce a complete assembly, a
portion of an assembly, or a component(s).– Continuous Flow refers to producing one product at a time
within the cell.
Functional Department– A grouping of similar workstations or operations that perform
the same type of function. (e.g. All lathes are located in one area, and all grinders are located in a separate area.)
DEFINITIONS
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Cell Advantages Over Functional Department
1. Shorter Lead Time
2. Improved Quality - Quicker problem identification
3. Improved Quality - Less potential rework or scrap
4. Less Material Handling
5. Improved Coordination
6. Reduced Inventory
7. Departmental conflicts eliminated
8. Simplified Scheduling
9. Less Space Required
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FUNCTIONAL DEPARTMENTS AND CELLS
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Case Study
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Original Functional Layout
CASE STUDY - INJECTION MOLDER / ASSEMBLER
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Improved Flows - Product Group #1
NOTES METRICS
• 6 Cells • Flow Distance reduced from 280’ to 34’• Warehouse removed from process • Lead-time (molding through packaging)• Controlled amount of buffer reduced from 9 days to 5 hours• Color coding per cell • Lead-time (including all WIP) • Parts boxed for shipment in cell reduced from 9 days to 2.5 days• Molding Final Inspection eliminated • 65% WIP reduction
• 14% Reject reduction • Transactions Reduced 67%+
CASE STUDY - INJECTION MOLDER / ASSEMBLER
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Change
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If we all know we need to improve, the question becomes: why don’t we?
BARRIERS TO IMPROVEMENT
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IMP
RO
VE
ME
NT
TIME
RESISTANT TO CHANGE“IT WILL NEVER WORK”
WAIT AND SEE “SHOW ME”
READY FOR CHANGE“LET’S GET STARTED”
ATTITUDE CURVE
RANGE OF ATTITUDES
NU
MB
ER
OF
PE
OP
LE
LEARNING CURVE
Involvement leads to Ownership which leads to Commitmentwhich leads to Success.
CHANGE CURVES
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Prepare and Motivate People – Widespread orientation to CI, quality, training and
recruiting workers with appropriate skills– Create common understanding of need to change
to lean
Employee Involvement– Push decision making and system development
down to the “lowest levels”– Trained and truly empowered people
Share information and manage expectations Identify & empower champions, particularly
operations managers– Remove roadblocks (I.e., people, layout, systems)– Make it both directive yet empowering
KEYS TO SUCCESS
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Summary
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1. Lean Manufacturing is a broad system strategy, but successful implementation is in the details.
2. Lean Manufacturing is an Organization-wide Change Process.
3. Successful Implementation requires commitment & involvement across all levels.
4. Lean solutions are usually no cost/low cost.
5. “World Class” companies are implementing the Principles of Lean Manufacturing.
SUMMARY
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THE “END”