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Mr. Al Hammonds
Manufacturing and Quality Director
Strategic Partnership for Industrial Resurgence
The Center for Industrial Effectiveness, University at Buffalo
And
Instructor, UB Department of Industrial Engineering
Lean Manufacturing
And
Six Sigma
EAS 590 – February 25, 2004 used again March 2, 2005
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Flow Manufacturing Modules/Agenda
Identifying the Value Streams
Improve Flow
Determine Resources to Meet Customer Demand
Process Design for Flow
Identify the Value Streams and Draw Product SynchronizationCalculate Total Product Cycle Time and Identify Critical Path Prepare the Financial Report Card (Optional)
Prepare the Process Flow Chart and Lead Time Reduction GraphEliminate Non-Value Added Time on the Critical Path to Reduce TPc/tStabilize the Processes in Preparation for Flow
Prepare Process Map and Product SynchronizationsGather Data from the Production ProcessCalculate Takt TimeDetermine Required Machine and Labor Resources
Calculate Planned Cycle TimeAssign Work Elements to Machines and OperatorsEstablish Material & Information FlowFinalize and Validate the DesignFormalize & Implement
Plant Wide Flow Plan
Identify Activity RelationshipsAnalyze Material Flow DensityEstablish Block Layout
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Flow Manufacturing Manual
• Establish a Team• Define the Problem• Gather and Analyze Data• Redefine Operations and
Procedures • Formalize and Validate Changes• DO IT AGAIN!
Design New or Modify Existing Manufacturing Systems:
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Flow Manufacturing Contents• 6 “How-To” Chapters
• Value Stream Identification• Improve Flow • Determining Resources to Meet Customer
Demand• Process Design for Flow• Plant-Wide Flow Plan• Financial Report Card
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Flow Manufacturing Contents• 9 Operational Definitions
1. Process Integration & Flexible Work Cells
2. Elimination of Waste
3. Constraint Management
4. Level Scheduling
5. Delphi PDP
6. Simulation for Flow Manufacturing
7. Value Stream
8. Lean Guidelines Equipment & Workstations
9. Synchronous Assist Devices
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Value Stream•Definition
•Within Manufacturing, the Value Stream is defined as:
“The set of all specific actions required to bring a specific product through the physical transformation task proceeding from raw materials to a finished product in the hands of the customer.”
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Value Stream
• Objectives
1. Understand the Definition and Purpose of Value Streams.
2. Understand Total Product Cycle Time.
3. Understand how to Analyze a Value Stream.
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FM-05 Plant Wide Flow Plan
PLATE
SAW
RECEIVE
STORE
PAINT
TURN GRINDMILL
ASSY
WELD
Material Flow in a Process Oriented Layout
Material Flow in a Product Oriented Layout
RECE
IVE
GEN
ERAL
SER
VICE
S
PAINT
WELD
TURN
SAW
SAW
STO
RE
PAINTTURN
MILL ASSY
GRIND
PLATE
ASSY
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FM-02 Improving Flow•Purpose
•Reduce TP c/t Using Quality Network Leadtime Reduction:
•Value Added / Non-Value Added
•Process Flow Chart
•Lead Time Reduction Graphic
•Interdependent Element Analysis
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Lead Time Reduction Graphic Tool
ORIGINAL
Non-ValueAdded
ValueAdded
Process 2Process 1
Process 3Wash
Process 4
PLANNEDIMPROVEMENTS
Non-ValueAdded
ValueAdded
Process 1/2
Process 3/Wash
Process 4
POTENTIAL WITHCOMBINATION
Non-ValueAdded
ValueAdded
Process 1/2/3/Wash/4
Electronic Version Available (Developed by Global Manufacturing
Systems Group)
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Improving Flow - Implementation
• Map out Process with VA / NVA time.
• Ask WHY? WHY? WHY? WHY? WHY?
• Generate Solutions considering all of the interdependent elements.
• IMPLEMENT Improvements.
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FM-03 Determine Resources
This phase collects the data needed for flow process design and determines the machine and labor resources required to meet customer demand.
Purpose
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FM-03 Determine Resources
• Engage the team in the data gathering process.
• Learn the tools of data gathering.
• Capture work elements as completely as possible.
Objectives
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Takt Time
Takt Time = Scheduled Runtime
Total Customer Requirements
Scheduled Run Time:Time scheduled to run per day - breaks, lunches,meetings, planned maintenance
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Process Design for Flow - Strategies
• Defining Flow Concepts• Planned Cycle Time• Defining Machine and Manual Operations• Defining Material and Information Flow• Finalize Layout• Formalizing Best Practices
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One piece flow is the goal
Buffers only needed where an imbalance between operations exists - use formula
Strategically place buffers
Use standard quantities that fit in the operator envelope
Buffer Size Determination
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Validate Process Design / Finalize Layout
• Validate and Optimize Process Design• Verify machine and operator cycle times are
below Planned Cycle time.• Perform computer or manual simulation if
necessary.
• Formalize Layout• Exact location of equipment to scale.• Incorporate material flow.• Apply workplace organization.• Show any buffers or storage points.
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Process Design for Flow - Implementation
• Generate Concepts
• Determine Planned Cycle Time
• Define Operations and Draft PFP Chart
• Map Material and Information Flow
• Finalize Layout
• Formalize Best Practices using PFP
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FM-06 Financial Report Card• Plant and Product
– End Items / Product Mix– Product Cost Percentages (Mat’l/Labor/Overhead)
• Inventory– Inv $ by RAW, WIP, FGI
• Productivity– Uptime / Overtime / Staffing (Salaried & Hourly)
• Quality– Scrap & Rework Costs / PPM
• Floor Space• Flow Manufacturing
– Total Product Cycle Time – Work Content, Non-value Added, Value Added
Focused on Identifying Potential Savings
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Six Sigma / Kaizen / Lean What does it all mean?
Essential Tools for Survival
Presented by:Thom MarraFebruary, 2004
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Six Sigma / Kaizen / Lean – Why does any of this matter?
The Old Testament
• Customer Satisfaction
• Quality (for its own sake)
• Cost Reduction
• Market Share
• Market Research
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Six Sigma / Kaizen / Lean – Why does any of this matter?
The New Testament
• Customer Loyalty
• Customer Retention
• Zero Defections
• Lifelong Customers
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Culture - SWOT
• Strengths (core competencies)
• Weaknesses
• Opportunities
• Threats
• Different Strokes for different folks
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People – Power in the People
Typica l O rgan iza tion C hart
C E O
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Six Sigma vs. Kaizen
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Kaizen
• A problem solving methodology• A systems approach• 7 QC tools• 7 Management tools - Affinity diagram, Tree
diagram, Process decision program chart (PDPC), Matrix diagram, Interrelationship digraph (I.D.), Prioritization matrices, Activity network diagram
• Teams / everyone• Kaizen is a process oriented way of thinking. It
rewards for improvement in the process & trusts (has faith) the results will follow.
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Six Sigma
• Six Sigma means something different to every company: a goal, a philosophy, a tool box, customer focus, a management system
• 3.4 defects per million opportunities• Stresses breakthrough improvement, not
incremental improvement• Should be part of a larger business system• Emphasizes a very structured approach –
DMAIC• Bottom-line driven
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History of Six Sigma
• The statistical tools created < 1980’s• Zero defect concepts introduced – Crosby (late 70’s
early 80’s)• The PC & statistical software – late 80’s• Methodology created (MAIC) (Motorola, Allied Signal,
GE) – late 80’s early 90’s• Today – a metaphor for Business and Process
Excellence
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Six Sigma – Why Do Six Sigma?
• Money
• Customer Satisfaction
• Quality
• Impact on Employees
• Growth
• Competitive Advantage
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Six Sigma – Why not Six Sigma?
• The company has a strong, effective performance and process improvement effort in place
• Current changes are already overwhelming
• Potential gains aren’t sufficient to finance the investments
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Six Sigma – What to Solve?
• Project cost savings
• Customer satisfaction deliverables
• Processes
• Problems
• Targeted location
• Design
• Supplier processes
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Six Sigma – Roles
• Executive
• Champion
• Process owner
• Master Black Belt
• Black Belt
• Green Belt
• White Belt
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Data driven
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Data driven
““Statistics is the art and science of Statistics is the art and science of
discovering what is at first difficult to discovering what is at first difficult to
see and later becomes obvious.”see and later becomes obvious.”
- Author unknown- Author unknown
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Uncertainty
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Variability
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Statistics
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Six Sigma - DMAIC
• Define
• Measure
• Analyze
• Improve
• Control
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Six Sigma - DFSS
DFSS – Design for Six Sigma
• QFD – Quality Function Deployment
• Robust Design and Process
• FMEA – Failure Mode and Effects Analysis
• Design for X
• Special design tools