5 Lean Manufactu

Lean Manufacturing

Professor Deborah NightingaleSeptember 26, 2005

Source: Tom Shields, Lean Aerospace Initiative

Content

General lean concepts in factory design

Manufacturing Video

Manufacturing System Design Framework

Conclusions

ESD.61J / 16.852J: Integrating the Lean Enterprise Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 2

Deborah Nightingale, 2005 Massachusetts Institute of TechnologyESD.61J / 16.852J: Integrating the Lean Enterprise Page 3

Lean from the Toyota Production System Shows How It All Relates

JIT

JI DOKA

Leveled & Balanced Production

Cost control through the elimination of waste

TPS

KaizenStandardized Work

Right Qty Right Mix Right Time

Perfect Quality

Engaged and Creative Workforce

Aerospace Factory Designs Have Many Things to Consider

Inputs

Production volume

Product mix

Product design

Complexity

Process capability

Type of organization

Factory Design

Focus

Frequency of changes

Worker skill/knowledge Here

Outputs Cost Quality Performance Delivery Flexibility Innovativeness


Benefits from a Focus on Process Rather Than Operation Improvements

Operations Value adding Transportation Delay (2 types) Inspection

Factory Design Layout choices Operation policies Process Technology Tapping human

knowledge

X X Store in Warehouse

Move to Staging

Store at Staging

Move By AGV

Machine

X X Part B

Part A

Ope r atio n

Factory Design

I X

Storage Value Adding Inspection Transport

Types of Operations


Traditional Manufacturing

l Assembly

Center

i

Treat lyion and

Machining Center

MM

MMG

GGG

G G

L

L

L

L

L

L

DD D

D D

MC

MC D

1

4

2

3

5 10

7 6

8

9

12

13

11

Fina

Receiving, Incoming Inspect on,

and Shipping

Heat

Injection Molding Center

Component SubassembInspectTest Center

The material flow could take up to millions of different paths, creating waste of transportation and waiting at virtually every step.


Cellular Manufacturing

iing

Treat

MG

GL

D

M

M

G

G

LD

D D

MC MC

MG

GL

D

MG

GL

D

MG

GL

D

MG

GL

D

MG

GL

D

M

M

G

G

LD

D D

Work Flow

Receiving, Incoming Inspect on,

and Shipp

Heat

Injection Molding Center

Rather than route the materials required through the entire plant, materials flow to the head of each work cell, through each process in the cell, then to final assembly. This eliminates most of the transportation and waiting we would see in the traditional approach.


Only Understood Processes Can Be Improved

Establish models and/or simulations to permit understanding Ensure process capability & maturation Maintain challenge of existing processes

Tools

Five Whys

Process flow charts

Value stream mapping

Statistical tools

Data collection and discipline


Definite Boundaries Exist Between Flow and Pull

Flow MRP used for planning

and control Group technology Reduce the number of

flow paths Batch or single items Inventory to buffer flow Process control Minimize space & distance

traveled with contiguous processing established

Pull Takt time Balanced production Level production Response time less than

lead time Standard work Single item flow Correct problems

immediately - STOP if necessary


JILean Tools Can Apply even if

T System Not Logical Value stream mapping Work groups to implement

change Visual displays and

controls Error proofing Standardized work Quick changeover Total productive

maintenance Rapid problem solving Self inspection Five Ss

Source: J. Miltonburg, Manufacturing Strategy 1995, p31.



Content


Manufacturing Video


Conclusions


Production Operations Transition-To-Lean Roadmap

Prepare

Select initial implementation scope

Define customer

Define value -Quality, Schedule, and Target Cost

Select initial implementation scope

Define customer

Define value -Quality, Schedule, and Target Cost

Record current state value stream

Chart product and information flow

Chart operator movement

Chart tool movement

Collect baseline data

Record current state value stream

Chart product and information flow

Chart operator movement

Chart tool movement

Collect baseline data

Standardize operations

Mistake proof processes

Achieve process control

Implement TPM Implement self-

inspection Eliminate/

reduce waste Cross train

workforce Reduce set-up

times Implement cell

layout Implement visual

controls

Standardize operations

Mistake proof processes

Achieve process control

Implement TPM Implement self-

inspection Eliminate/

reduce waste Cross train

workforce Reduce set-up

times Implement cell

layout Implement visual

controls

Select appropriate production system control mechanism

Strive for single item flow

Level and balance production flow

Link with suppliers

Draw down inventories

Reassign people Re-deploy/

dispose assets

Select appropriate production system control mechanism

Strive for single item flow

Level and balance production flow

Link with suppliers

Draw down inventories

Reassign people Re-deploy/

dispose assets

Define Value

IdentifyValue Stream Implement Flow

Implement Total System Pull

IMPROVED COMPETITIVE

POSITION

Develop a future state value stream map

Identify takt time requirements

Review make/buy decisions

Plan new layout Integrate

suppliers Design visual

control system Estimate and

justify costs Plan TPM

system

Develop a future state value stream map

Identify takt time requirements

Review make/buy decisions

Plan new layout Integrate

suppliers Design visual

control system Estimate and

justify costs Plan TPM

system

Design Production System

ENTRY

6/5/00

Integrate with Enterprise Level

Establish an Operations Lean Implementation Team(s)

Develop implementation strategy

Develop a plan to address workforce changes

Address Site Specific Cultural Issues

Train key people

Establish target objectives (metrics)

Integrate with Enterprise Level

Establish an Operations Lean Implementation Team(s)

Develop implementation strategy

Develop a plan to address workforce changes

Address Site Specific Cultural Issues

Train key people

Establish target objectives (metrics)

Build vision Establish need Foster lean

learning Make the

commitment Obtain Sr.

Mgmt. buy-in

Build vision Establish need Foster lean

learning Make the

commitment Obtain Sr.

Mgmt. buy-in

Phase 5 Phase 6Phase 1 Phase 2 Phase 3 Phase 4Phase 0

Adopt Lean Paradigm

Phase 7

Strive for Perfection

Expand Internally/Externally

Enterprise / Production System Interface Financial Information

Quality Safety

Training and Human Resources Workforce/Management Partnership

+

Institutionalize 5S Institute Kaizen events Remove system barriers

Expand TPM Evaluate against

target metrics

Evaluate progress using lean maturity matrices

Team development Optimize quality

Top Leadership

LeanRoadmap

Supply Chain/External Environment Legal Environmental

Commitment

Procurement Engineering

Government Reqd. Systems(MMAS, EVMS, etc.)

++

++

2000 Massachusetts Institute of Technology


Content


Manufacturing Video


Conclusions


Background

Matured aerospace industry

Industrial innovation theory

Implications on the aerospace industry


Matured Aerospace Industry

Customers demanding specific capabilities

Cost and affordability moreprominent

Innovation characteristics have changed


iInnovation Model

Utterback s Dynam cs of

Rate of productinnovation highest during formative years

As product matures rate of process innovation overcomes product innovation

Very mature products have low levels of both product & process innovations

Source: William Abernathy & James Utterback, 1978


Theory in Application N

umbe

r of F

irms

Fluid Phase:

innovation, many firms

founded shifts to process

Emergence of theign

Specific Phase:Stable, small number of firms

Destabilizing changes in technology

Utterbach's Dynamics of Innovation

Rapid technology Transition Phase: Shakeout, competition

Dominant Des

competition shifts to price

or process can destroy industry!

Time Source: Data (cars), from Entry and Exit of Firms in the U.S. Auto Industry: 1894-1992. National Academy of Science: theory concepts from Utterback, Dynamics of Innovation, 1994


Domi

1958

1995

nant Design?


Dominant Design?

1953

1972

2002


0

10

20

30

40

50

0

5

10

15

20

25

30

35

1860 1880 1900 1920 1940 1960 1980 2000

Year

Aeronautics: Jet transport and jet fighter-bomber

Cars: enclosed steel body

Typewriters: Open, moving carriage

Natural progression?

Government intervention motivated by cold war

Num

ber of major U

.S.

Aerospace com

panies

Industrial evolution and the emergence of the dominant design

Num

ber o

f maj

orty

pew

riter

com

pani

es

80

60

40

20

Num

ber o

f maj

orau

tom

obile

com

pani

es

l

Extension of Theory to the Aerospace Industry

Source: Murman, et a ., Lean Enterprise Value, 2002


Result: Heritage equipment, facilities and mindsets drive manufacturing system design

IndustryImplications for the Aerospace

Producibility and cost are more competitive factors

Manufacturing inputs should carry more weight

Emphasis should be on process innovation

Firm core competencies must match industrial maturity

Manufacturing strategy cannot be stepchild to platform strategy

Result: Heritage equipment, facilities and mindsets drive manufacturing system design


A holistic manufacturing system design framework to ensure process considerations are integral

to the product development processl

Proposal

A holistic manufacturing system design framework to ensure process considerations are integra

to the product development process

Characteristics Uses principles of systems engineering Visual depiction of design beyond factory floor ideas Manufacturing as part of the product strategy Manufacturing system design is strategy driven, not product

design driven Combines multiple useful tools Provides insights into order and interactions


DesignManufacturing System

Manufacturing system infrastructure design Manufacturing strategy Operating policy Partnerships (suppliers) Organization structure details

Manufacturing system structure design Buildings, location, capacity Machine selection Layout WIP


Stakeholders

Corporate Level

Business Unit

Product StrategyProduct StrategySuppliersSuppliers Product DesignProduct Design ManufacturingManufacturing MarketingMarketing

[Interpret] [Seek approval]

Manufacturing SystemManufacturing System DesignDesignSociety Employees Mgmt Govt.Suppliers Customers Stockholders

(Corporate Strategy)

(Business Strategy)

Requirements/Considerations/Constraints

OptimizingManufacturing System Design/Selecti

lement (pilot)

on

Mod

ifica

tions

Imp

Evaluate/Validate

Stakeholders

Corporate Level

Business Unit

Product Strategy Product Strategy Suppliers Suppliers ProductProduct DesignDesign Manufacturing Manufacturing MarketingMarketing

Requirements/Considerations/Constraints

Manufacturing System Design/Selection

Implement (pilot)

Evaluate/Validate

[Interpret][Seek approval]

DFMA, IPT3-DCEConcurrent Engineering

VSM Kaizen Trial & Error Kaikaku

- Miltenburg, - 3P, - 2D plots, - MSDD - AMSDD - design Kaizen

Manufacturing System Manufacturing System DesignDesign

Mod

ifica

tions

Fine Tune

Finalized Product Design

Make/BuyRisk-sharing Partnerships

- Analytical Tools, - Simulation Tools

Customer NeedsTechnical FeasibilityFeasible performance guarantees

Following the framework process will result in thedevelopment of effective manufacturing system that

meets the goals of the corporation (Vaughn & Shields)

Insights from the Framework

Linkage of strategy and manufacturing system design

Three important characteristics Phase presence Phase timing Breadth across functions

(Vaughn & Shields)

Following the framework process will result in the development of effective manufacturing system that

meets the goals of the corporation


Conclusions

Competitive advantage from manufacturing excellence (enterprise strategy)

Performance more closely related to how system designed (not production volume)

Manufacturing as a true participating partner with the other functions (coequal status)


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