Lean Management
description
Transcript of Lean Management
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LEAN MANAGEMENT PRESENTATIONon
CSSC
Group 1
Abhishek Agarwal Akshay Hiremath
Arushi Bafna Atanu Misra
Chetan Gupta Debolina
Pratik Patil
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Brief Overview
About Company
50-year-old spring manufacturing and metal stamping firm in U.S.
Business Motto We make the tough jobs
ISO9000 certified
Family of Products:
Stamped products
Coiled Products
Multi-side Bent Products
Close to 800 customers
Problems Faced
Slow sales growth at 2% to 3%
Intense global competition
Global vendors provide lower cost , similar quality products
Leveraging comparative advantage of low labor cost (assembling products)
Increased competition in aerospace
Customer related issues
Less understanding of their needs
On-time delivery issues
Focus on Improving manufacturing efficiency, respond to customer demands with higher quality, low cost and shorter delivery lead times
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Products
Stamping
Hydraulic Press
Forming
Bending
Punching
Cutting
Spring
Coiling
Cutting
Bending
Product Types
Cigarette Lighter Metal Head
Connectors for Electrical
Equipment parts
Coatings
Different Widths, Elasticity, lengths
Metal Sheets Metal Wires
Spring (Automated)
Bending
Metal Rods/WiresInitial ProductKey Points
Demand from same upstream and downstream processes
Quality Check
First Piece after tool change
Periodic drawn
Last piece of lot
Different products meeting in final assembly
6000 items product line
Decentralization done twice with evolved Hub and Spoke Model
Secondary Operations
Grinding
Deburring
Washing
Plating
Heat Treatment
Packaging
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Current Plant Operations: Computer Generated Master Schedule
Computer GeneratedMaster Schedule
Provided each process andwork stations withinstructions
Each process separated byWIP inventory
Process Improvement Initiations
SEAL Teams
Lean ManufacturingConsultants
Associations forManufacturing Excellence
TSSC
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Lean Manufacturing Consultants
Firstly, SEAL team was trained in the following 3 areas
Reducing WIP for a stamped metal part run on a 200-ton power press
Reducing set-up times for a high performance spring looping and wire forming machine
Reducing WIP in a connector clamp part stamping line
RESULTS
Day 1
Training on how to conduct a kaizen meeting
Introduction to requisite tools
Order of Steps to be followed
Day 2
Each team documented for its process a baseline work setup that included footprint & machinery layout, product and information flows & signals
Operator motion was documented using standard worksheets
Findings were presented and analyzed
Day 3
Brainstorming session generation of new ideas for CI
Day 4 & 5
Teams worked within the context of improvements to make them error proof and to identify and eliminate wasted efforts
Still Challenges were faced on how to implementthe techniques on CSSCs other product areasbecause of different equipment andmanufacturing process
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Kaizen Blitzes:Cross-functional team consisting of AME (Association for Manufacturing Excellence)
trainers was set up for brainstorming on Kaizen initiatives
Objectives:
Reduce repackaging
by 90%
Reduce cycle time by 30%
Visually scheduling the jobs to be shipped and display shipping man-hour load
Eliminating tasks equivalent to 2 full-time people
Initiatives:
Revamp physical layout to reduce walking distance by 94%
Consolidated tasks from 22 steps to 16 steps per shipment
Smoothened work flow by introducing support person and visual cues
Short term to do lists: Creation and improvement of visual
controls
Tapping of floors Clearing labels of all shelves to be done
using existing revamping teams
Long term to do lists: Improving measurements Reducing stock levels Simplifying paperwork and
certification process for every
shipment
Association for Manufacturing Excellence: Kaizen Blitzes
Visual Tour of Organization
Reviewed SEAL Team Results
Toyota Supplier Support Center
Conditional Mutual Agreement:
1. No Workers be laid off due to TSSC
productivity improvements
2. Long Term Commitment to TSSC
3. CSSCs success be used to teach competitor
companies about TPS.
SEAL Teams: Solutions through Employee
Action & Leadership
Cross functional teams
19 missions initiated in different divisions
Goals were set and Results analyzed
Results not achieved
Visual Kanban System
Set-Up Time Reduction
Quick Changeover
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REASONS FOR SELECTING THE COIL SPRING LINE
TSSC wanted to implement TPS in areas where learning potential
was the greatest.Plethora of
complications in the coil
production area.
Spring line was far-away from Lean.
Practical Reason Moving a 700 lbs. coiling equipment is
easier and faster than moving a 300 ton stamping press.
Spring line had more business than the other
units.
Long and short production runs.
Multiplicity of processes.
A large number of different part orders
Lot of WIP.
Long lead times.
Poor communication within the department
IMPLEMENTATION ON THE COIL SPRING LINE
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MAPPING THE PRODUCTION PROCESS AS-IS
Steel wire was coiled into a spring
on a winding machine.
The ends of the coil were shaped as specified by a kick-
press.
The spring is set to its correct length
and stiffness.
The springs are ground.
The springs are heated to impart
strength and hardness to them.
The springs are then washed.
The springs are finally packed as per
the orders.
The packaged springs are then
sent to the distribution centers.
Examining Data Collection of first hand information about quantities of part numbers, machines used to run
parts, machine layouts, order sizes, Total Prod. Volume, delivery frequencies.
Organizing Data Mapping of workflows and grouping parts based on
similar processes
Questioning Data- Reorganizing data vis--vis implementation of changes.
PROCESS ANALYSIS BY TSSC
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RESULTS OF ANALYSIS AND ACTIONS TAKEN
Two types of spring orders.
A-type Large quantities, repetitive production, scheduled deliveries.
B-type Lesser volume, uncertain delivery schedules.
Number of commonalities between the two types were found.
Grinding and the subsequent processes increased the process time.
High set-up time of spring coiling machine.
High overall changeover time.
Re-arrangement of medium coil machines based on part groupings.
Grinding, heating, washing were combined in a cell.
Shifting the kick-press machine close to coil-machine to reduce the changeover and no-activity time, and motion.
Placing the required tools close to machines.
Increasing operator awareness, and skills.
Visual Management- Use of instruction cards, marking of defects, photos, sketches.
Synchronization- Simultaneous arrival of set-up card, blueprint, material at the machines.
Focused on implementing a pull system.
FINDINGS ACTIONS
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Recommendations 1: Value Stream Mapping
Value-stream maps are the blueprints for lean transformations because it shows you where you could apply lean techniques, such as kaizen events, for maximum effect
Represents every process in the material and information flow of a product or product family, along with key data
By establishing a direction for the companys improvement efforts maps become the blueprints for the lean transformation
Identifying the target kaizen activities for bigger and more sustainable impact
Gaining a better understanding of the linkages between material and information flow
Visualize improvements to the overall production flow, instead of spot improvements to single processes
Create the basis for an effective lean implementation plan by designing how a facilitys door -to-door material and information flow could operate
Give operators, engineers, and managers a common language and process for continuous improvement
It helps to identify the bottleneck process, the various waste element areas in the entire manufacturing process
Helps to identify manufacturing value-add ratio (productivity) and percentage of NVA and ENVA.
Conducting a VSM exercise will help the company in following ways,
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Recommendation 2: Implementing Mixed Pull system
Categorization of springs based on customer demand.
A- 60% demand, B-25% demand, C-15% demand.
Designing a replenishment pull system for A-category springs.
Designing a sequential pull system for B and C- category springs to cope demand variations.
Usage of empty containers instead of Kanbans. (Kanbans are considered as inventory).
Further arrangements to convert the entire process into a sequential-pull system.
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PRODUCTIONSCHEDULING
CUSTOMER
ORDER
Steel wire was
coiled into a
spring
WINDING
Coils are shaped
as specified
KICK-PRESS
Spring is set to
correct length
and stiffness
TUNING
Spring is
ground, heated
and washed
GRINDING CELL
Springs are
packed as per
orders
PACKAGING SHIPPING
Daily Schedule
FIFO FIFOFIFOFIFOFIFO
Implementing Mixed Pull system
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Recommendation 3 : Improving set-up and changeover time
Applying SMED by:
Separating (move elements to external)
Converting (modify elements so they can be external, or remove them completely)
Streamlining (complete elements faster).
Operators knowledge of machines are deepened.
Slide tooling will help operators exchange plates quickly.
Restricting range of parts on the general purpose machines.
Inspection of only the first sample of products. (Machines will recognize errors)
Making the change-over time visual.
Maintaining Setup boxes next to machines for each part number
Using slides tooling and mounting devices to use more than one part and provide some degree of automation.
Adapting changes in the machine itself to permanently assist
Challenge
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Recommendation 4: Development of Good Metrics and not just Missions
Under SEAL team, too many goals were assigned
Lack of awareness about company vision and strategic goals
Different groups pursued different agendas and effort is not linked to company strategy
Lack of participation from operators and employees
Feedback was tactical (short-term results) and not strategic
Proposal: Create a Performance Measurement Framework
Reflects the goals and objectives of organization
Helps managers at all levels understand both drivers and results of their activities
Metrics present information and quantified measures Helps to identify what should be done
Helps to identify who should do it
Foster process understanding and individuals and teams at all levels relate to it
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Proposed Performance Measurement Framework
Strategic Objectives Value Stream Goal Value Stream Measures Cell Critical Success
factors
Cell Goals Cell Measures
Increased Sales and
market share
Increase customer
satisfaction
Create Continuous improvement
culture
Educate workforce
Timely Delivery
Reduce order fulfillment time
Reduce inventory
(RM / FG)
Improve Quality
Improve Productivity
Increase Output
per unit cost of
production
Optimize use of labour
Employee
advancement
Eliminate poor
financial
management
Delivery-on-time
On-time shipments Dock-to-Dock
time
Manufacturing cycle time
First Time Through Capacity
Utilization
Value added-to-sales ratio
Average cost per unit
Product yield per
employee
Average cross
training per person
Eliminate obstacles
to flow
Use Standard Work
Make products on
time
Effective Visual
Pull
Quick Changeover
on machines
Quality Operator
participation
Labour
productivity
Increase training
Reduce Cycle Time
Set-up time reduction
Eliminate machine
downtime
Introduce Single
Piece Flow
Reduce motion
Consistent Tool
change
Eliminate
Variability
Reduce inspection
time
Reduce overtime Increase Cross-
Training
Implement 5S
WIP-to-SWIP
OEE First Time Through
Walking Distance
Set-up time Machine
Utilization
Cross-Training
Chart and Skill
Chart
5S Audit
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Press
Secondary Press
Spring
SC
MC
SC
AL
T
ForSlide
To Customer
Staging
Secondary Operations
Grinding
Deburring
Washing
Plating
Heat Treatment
WIP StoreProcesses
Raw Material
Supplier
Customer
Packaging
At CSSC: Challenge
Instructions from Centralized
Production Control Team
Production on basis of
availability of material
Parts added to WIP/Finished Goods Store
Recommendation 5 : Proposed Information flow:
Customer Co-ordinate Raw Material, Order and Shipment The raw Material supplier be intimated (w.r.t lead time) about
the raw Material that has to be supplied to CSSC Plant
Dedicated Shipping team to draw order from the Market Pull from Shipment according to order Sequence
Order Material
according to
requirements
Pull from Shipment according to Order
sequence
Dedicated Shipping team to draw order from
Market
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Standardization:
Formulate parameters for new parts and document them.
Machine Specifications, running speeds and settings be
recorded.
Establish minimum required skill for a specific part and
machine.
Part Delivery details be documented for future orders.
PPC (Production Planning and Control) manuals be prepared.
Kaizan improvements and Cost improvements
Knowledge sharing be done across the employees and teams to
learn best practices.
Recommendation 6 : Standardization & Automation
Automation:
Establish minimum Level 3 Automation through the
plant.
Automatically loading of parts
Operation based on specific count e.g. cutting to a
specific size
Automatically shutting down in case of unmatched
material
Can be used in Material Handling and improving
material flow across the consuming cells and raw
material areas.
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Challenges : Cost Recommendation 7Introduce Value Stream Costing because it serves the following purposes,
So, how can this corporation go about implementing VS costing
Report the costs by Value stream and not by departments
Generating Weekly value stream income statements because more frequent income statements give
better understanding, better control, and timely lean improvement activities
(Perfection)
Introduction of control through visual management because it empowers VS teams to make
better and faster improvements
The resources (man, machine, material) in the company should be assigned to the entire value stream and not to an individual
departments
Introduction of a shared service department which will do all
daily allocations and calculations and appointment of a VS
Manager (Value and Accountability)
Standardizing the production process and all the back end
operations
Continuously monitoring the activities across entire VS and
identifying problems, RCA and implementing Solutions
Difficulty in assigning costs for hundreds of product part numbers and complex parts
Difficulty in measuring profitability
Increase in costs due to redundant purchasing and sales and hence difficulty in assigning the costs
Focus on entire value stream and not on a single operationLean focused information
Simplified financial reporting that is common to everyone
Most of the costs involved can be directly allocated to the Value
stream rather than independently assigning it to separate departments
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IMPLEMENTING CELLULAR LAYOUT
Steel wire was coiled into a spring on a winding machine.
The ends of the coil were shaped as
specified by a kick-press.
The spring is set to its correct length and
stiffness.
The springs are ground.
The springs are heated to impart strength and
hardness to them.
The springs are then washed.
The springs are finally packed as per the
orders.
The packaged springs are then sent to the distribution centers.
Going a Step Further
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AUTOMATING THE UPSTREAM PROCESS
Item and Qty. check
Safety stock check
Obsolete reference
check
Vendor & Price check
Max./Min. lot size check
Rounding val. check
Correct qty. check
Mode check
Without Automation
Automated Inputs to System
Safety Stock check ,Obsolete reference ,Vendor & price check ,Max./Min lot
size check ,Rounding val. Check ,Correct qty. check.
Item & Qty. Check Mode check
Post Automation
No. of steps before automation: 8
No. of steps post automation:
2
i.e. 75%(6/8) improvement in
efficiency over current process,
assuming all process steps
took equal time.
DIVISON-ED/M1, M2 and MC (SOE) AREA-VENDOR MANAGEMENT
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Under utilization of highly skilled workforce
Human resources involved in manual work which can be automated
Billable hours invested in non value added activities
Wastage of direct revenue over non value adding activities
Opportunity cost lost in form of revenue which could have been generated in the same time through the same labor
Estimated Revenue Impact
No. of hours for manual work by buyer per day 4
Total Hours worked in a day 9
No. of working days in a month 20
Wasted time (hours) in a month 80
Buyer's monthly salary 45000
Per day salary 2250
Per hour salary 250
Amount of money wasted for a day for the 4 hours 1000
Amount of money wasted for the month 20000
Amount of money wasted in the year 240000
Opportunity cost 240000
Total money wasted 480000
After Automation
Revenue saved 480000
Efficiency increased (in hrs.) = (9-5)/9*100 44.44444
Inefficiencies in manual process
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