Principles of lean manufacturing

7/29/2019 Principles of lean manufacturing

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L E A N E N T E R P R I S E

Principles of Lean Manufacturing

Participant Workbook


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L E A N

E N T E R P R I S E


By the end of this class you will be able to:

Define Lean

Identify the eight wastes

Differentiate between Value-Addedand Non-Value-Addedactivities

Apply various Lean implementation toolsin a simulation setting

Describe how Lean Principles can impact the successof yourorganization

Course Objectives

Orientation

TechHelp - Solutions for Manufacturers 208.426.3767 or www.techhelp.org 1


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Product Catalog



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The Bottom Line

Sells for $4

Labor cost: $2.00/person/shiftFacilities cost: $10.00/table/shift

Sells for $4

Materials cost $0.50

Materials cost $0.50

Production Process Orientation1. Sales Representative Processes Customer Order2. Production Scheduler Generates Factory Order from forecast3. K it ter (s ) Organizes raw materials for Factory Orders4. Material Handler Moves product between ALL workstations

5. 1st OP Blue Initial folding: Blue6. 1st OP White Initial folding: White7. 2nd OP Blue Final folding : Blue8. 2nd OP White Final folding: White

9. In sp ec to r Assures Quality10. Warehouse/Ship Clerk Matches boats to Customer Orders11. Trucker Ships products to the customer12. Production Supervisor Supervises production13. Industrial Engineer Monitors production process

Production Facility Orientation

SalesOffice

ProductionControl

KittingArea

ReworkArea

1st OPBlue

InspectionArea

1st OpWhite

FinishedGoods Whse.

WIPStorage

2nd OPWhite

2nd OPBlue

ShippingDock



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Product Components Orientation

White Paper

Blue Paper

Product Routing

1 piece

1 piece 1 piece

1 piece

Production Batching

4 per batch

4 per batch



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Customerorder

forms

Factoryorderforms

FinishedGoods

Warehouse

Customerorders

(demand)

Productionforecast

Shipmentsto

customers

Production Scheduling Process

Customer Service Targets

4 minutes after order

4 minutes after order

All orders are filled f irst-in, first-out (FIFO)

Promised shipments to customers

Promisedshipments

tocustomers


Company Policies

All shifts are 10 minutes Keep busy at all times Yell if you need parts Handle all parts fir st-in, firs t-out (FIFO) Only the Material Handler can move parts Stay at your workstation The boss is alwaysright!



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Go to Work!

Round 1


Discuss results

How did it feel?

Relationship to real world

Round One: Debrief


Introduction to

Lean

Manufacturing

Principles of Lean



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LEAN is: A systematic way to deliver the

GOOD

CHEAPFAST

PICK ANYTWO

9highest quality,9lowest cost productswith the9shortest lead-timesthrough the

9relentless elimination of waste.

Defining Lean


Value Added

Any activity that changes the market form orfunction of the product or service

Things the customer is happy to pay for.

Non-Value Added

Any activity that does not change market form orfunction

(although it may be necessary)

These activities should be eliminated, simplified,

reduced, or integrated when possible.

Definition of Value-Added


Non-Value-Added

Defects

Overproduction

Waiting

Non-Value Added Processing

Transportation

Inventory

Motion

Employees: KSAs(Knowledge, Skills and Abilities)

Value-Added

Lean = Eliminating Waste

Typically 95%of all lead time is non-value-added.

5%



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Defects in the Factory

Inspection and repair of product

Causes of defects

- Weak process control

- Poor quality system

- Deficient planned maintenance

- Inadequate education/training/work instru ctions

- Poor product design

- Customer needs not understood


Overproduction in the Factory

Making more product than is required by the next process

Making product earlier than is required by the next process

Making product faster than is required by the next process

Causes of overproduction

- Just-in-case logic

- Long process setup (encourages large lot runs)

- Unbalanced workload (WIP)

- Poor communication

- Misuse of automation


Waiting in the Factory

Idle time created when waiting for?

Causes of waiting waste

- Unbalanced workload- Unplanned maintenance

- Long process setup times

- Poor suppliers

- Upstream quality problems



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Non Value-Added Processing in the Factory

Effort that adds no value to the product or service from thecustomers viewpoint

Causes of processing waste

- Product changes without process changes- Just-in-case logic

- True customer requirements not clearly defined

- Lack of communication


Transportation in the Factory

Transporting parts and materials around th e plant

Causes of transportation waste

- Poor plant layout

- Poor understanding of

production process flow

- Large batch size, long lead

times, large sto rage areas


Inventory in the Factory

Any supply in excess of a one-piece flow through yourmanufacturing process

Causes of excess inventory

- Misconception that this protects the company from

inefficiencies and unexpected problems- Product complexity

- Poor market forecast

- Unbalanced workload

- Misunderstood communications

- Reward systems

- Unreliable shipment by suppliers



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Motion in the Factory

Any movement of people or machines that does not addvalue to the product or service

Causes of motion waste

- Poor people/machine interface

- Inconsistent work methods

- Unfavorable workstation or cell layout

- Poor workplace organization and housekeeping


Employee KSAs in the Factory(Knowledge, Skills and Abi lities)

The waste of not using peoples mental, creative, andphysical abilities

Causes of people waste

- Old guard thinking, politics, the business culture

- Poor hiring practices

- Low or no investment in training

- Low pay, high turn-over strategy


What wastes were apparent?

Brainstorm Wastes



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Lean Building Blocks

Quick Set-up

Standardized Work Lot Size Reduction Teams

Quality at Source

5S System Visual Plant Layout

POUS

Cellular FlowPull / Kanban TPM

ValueStreamMapping

Continuous Improvement


Mass Production

Testing

Value-Added Time : MinutesTime in Plan t : Weeks

ReceivingWarehouse

Kitting

1st OPWhite

2nd OPBlue

Storage

Repair Inspection

ShippingWarehouse

Ship

Material

ORDER CASH

2nd OPWhite

1st OPBlue


9Createsa safe, clean, neat arrangement of the workplace

9Providesa specific location for everything

9Eliminatesanything not required

Work Place Organization (5S)



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Elements of a 5S Program

5. Susta in

1. Sort

4. Standardize

3. Shine

2. Set in Order


5S: Starts With Cluttered Areas



Ends Up With Organized Areas




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Example:Local Tool Board



Defines operations safely carried out with all tasks organized inthe best known sequence using the most effective combinationof these resources:

People

Materials

Methods

Machines ConsistentProcess

DesiredResults

InconsistentProcess

InconsistentResults

Without Standardized Work there can be no sustained improvements

Standardized Work


Traditional Plant Layout

N/C

Lathes

Tool

Crib

Sheet MetalCentral

Inspection

N/C

Mills

Manual

Mills

Manual

Drills

ToolCrib

Degrease

Machine

Assembly Stock/Staging

Deburr

Plastics

N/C

MillsN/C drill

Jigbore/

EDMGrind

Saws Shears

Raw StockManual Lathe

Silver

Solder

Receiving

Finishing



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Product Cell

Manual

Mills

Manual

Drills

Degreas Machine

Assembly

Stock/

Staging

Deburr

N/C drill Raw Stock

Silver

Solder


Teams

3Members rotate between highly specified jobs

Cross-trained and multi-skilled employees

9 Operators can work many operations within a celland operations in different cells

A foundation of the continuousimprovement philosophy

Lean Workforce Practices


What needs to change?

5S SystemStandardized Work

Visual ControlsPlant Layout

TeamsPOUS

Batch Size Reduction



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Go to Work!

Round 2


Discuss results

How did it feel?


Round Two: Debrief


Quick Changeover

Standardized Work Batch Reduction Teams

Quality at Source


POUS

Cellular/FlowPull/Kanban TPM


ValueStreamMapping




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10 minutes

10 minutes

Batch & Queue Processing

Lead Time 30+ minutes for total order

21+ minutes for first piece

10 minutes

ProcessA

ProcessB

ProcessC

Process

BProcess

AProcess

C

Continuous Flow Processing

12 min. for total order

3 min. for first part

Impact of Batch Size Reduction


Batch Size Reduction

The best batch size is one piece flow,

or

make one and move one!


SET-UP:The time required to remove the old tools,dies or fixtures; attach new tools, dies or fixtures andrun the machine until a new part, without defects, is

produced.

Run Run

Part

Set-uptime

Firstgoodpart

1st

pieceinspection

Changeover

Completion

of last good

part

Locate

tools, dies

or fixtures

Clean, sanitize,

attach new

tools, dies or

fixtures

Make

Ad

justme

nts

Make

Ad

justme

nts

Removeold tools,

dies orfixtures

Set-up Definition



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Linking of manual and machine operations into the mostefficient combinatio n to maximize value-added content whileminimizing waste.

1st OP

2nd OP

Inspection

3rd OP

Shipping

4th OP

Cellular Manufacturing

Raw Material


Push System

Based on forecasts or schedules

Pull System

Production and resource flow based on actualconsumption

3Small lots

3Low inventories

3Visual management

3Better communication

Push vs. Pull Systems



Pull System Flow Diagram

Information Flow

Supplier

RawMatl

ProcessA

ProcessB

Fin.Goods

KanbanLocations

ProcessC

Customer

Parts Flow



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Quick Changeover


Quality at Source


POUS



ValueStreamMapping



What needs to change?

Batch Size ReductionPOUS

5S SystemStandardized WorkVisual Controls

Plant LayoutTeams

TPM

Quick Changeover

Cellular Flow

Pull/Kanban

Quality @ Source


Go to Work!

Round 3



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Discuss results

How did it feel?


Round Three: Debrief


Implementation

Value Stream Mapping

Train workers with appropriate skills

Solve problems using Lean tools


Action Plan


Quick Changeover


Quality at Source


POUS



ValueStreamMapping




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Can you now:Define Lean?

Identify the eight wastes?

Differentiate between Value Addedand Non-Value Addedactivities?

Apply various Lean implementation toolsin a simulation setting?

Describe how Lean Principles can impact the successof yourorganization?

Course Objectives


Benefits of Lean

Lead Time

0 25 50 75 100

Percentage of Benefits Achieved

Productivity Increase

WIP Reduction

Quality Improvement

Space Utilization


Continuous Improvement (CI)

Old Adage:

If you always do what you always did, youll alwaysget what you always got.

Competitive Corollary: If the other g uy gets BETTER, youre gon na get LESS.



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Thank You.

L E A N

E N T E R P R I S E


Recommended Readings

Lean Thinking by Jim Womack

Becoming Lean by Jeffrey Liker

The Machine That Changed the World by Jim Womackand Daniel T. Jones

The Goal by Eli Goldratt

World Class Manufacturing: The Next Decade byRichard Schonberger

Lean Production Simplified by Pascal Dennis

Others can be found on bookstore sites key word

Lean


Lean Web Sites

MEP Lean Sites:

www.techhelp.org

www.mepcenters.nist.gov

Other Lean Sites:

www.lean.org

www.productivityinc.com

www.superfactory.com

www.nwlean.net

www.sme.org

www.apics.org

Documents

Principles of lean manufacturing