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Cypress Review—Confidential 1

Lean Manufacturing Toolbox

Tim Conway

[email protected]

13 November, 2018

Lean Manufacturing Toolbox 2Tim Conway

Are You A Lean Practitioner?

Do you… Have a drop zone for your keys, wallet, purse, etc.?

Organize your kitchen silverware by type and size?

Have a set location for your garage shop tools?

Set out your work clothes the night before?

Wash your car windshield while the gas is pumping?

Prefer roundabouts over stop lights for low-volume intersections?

If you strive to be efficient and organized then you’re a lean practitioner



Agenda

This workshop covers the following topics: Lean Manufacturing Concepts

Lean Tools

Desired outcomes; upon completion of this presentation, you will be able to: Define the concept of a Value Stream

Define Value-Added, Non-Value-Added and Incidental activities

Define 7 types of wastes

Discuss 4 strategies to remove waste

Describe the usage of several lean tools


Lean Manufacturing Concepts



Lean Manufacturing

Lean Manufacturing is derived from the Toyota Production System (TPS)

Objective: Create maximum value for the customer by continual

focus on elimination of waste

Areas of focus: Improve the flow of work to expose waste and quality

problems

Eliminate waste

“The Machine that Changed the World”

MIT researchers coined the term “lean manufacturing” in this 1990 book to describe the Toyota Production System


Lean Focus: Value Stream

Value Stream is the set of key actions required to create and deliver a product or service to the customer.

Everything not in the value stream is potential waste

“Whenever there is a product (or service) for a customer, there is a value stream. The challenge lies in seeing it.”

Suppliers Fab Processing Customers



Lean’s Core Strategies

1. Eliminate waste

Waste

VariabilityInflexibility

3. Maximize flexibility and synchronization to customer demand

2. Control variability


Types of Activities

Three types of activities in Lean Thinking

10%

40%

50%Non-Value Added (Waste)

Incidental

Value-Added

Elementsof work



Value-Added Activity that directly affects the

end product in a way that the customer is willing to pay for

Typically 10-15% of activity before optimization

Examples:

Impacts form, fit or function of the product, such as adding layer to a semiconductor chip

Gathering data that enhances the value of the product

Types of Activities


Incidental Activity that does not directly

add value but is necessary to ensure completion or integrity of value-added tasks

Adds cost and in theory could be reduced without affecting the product.

Typically 30-50% of activity before optimization

Examples:

Product inspection and testing

Tool qualification testing

Types of Activities



Non-Value Added Activity that does not add value

Waste

Examples:

Reworking or redoing

Building finished good inventory

Providing more data than the customer ordered

Types of Waste:

Transportation

Inventory

Motion

Waiting

Overproduction

Over-processing

Defects

Types of Activities


Non-Value Add & Incidental

90%

Non-Value Add & Incidental

81%

Value Add

10%

Value Add

19%

Why Waste Elimination is Important

Eliminating 10% of non-value added activity can nearly double the productivity



Inventory

Motion

Waiting

Over-processing

Defects

Over-production

WASTE

Types of Lean Wastes: “TIM WOOD”

Transportation


Waste – Transportation

Transport of raw materials or completed product

Excessive transportation slows down the production pace

Handoffs between areas increases risks of errors

Handoffs also increase risk of miscommunication between areas

Visual management of the line is difficult

Painting deck Material flow

5

13

84

2

76

Excess distance

from Stop 4 to Stop 5



Waste – Inventory

Excess inventory increases manufacturing cycle time and customer lead time

Inventory increases operational costs (e.g., storage cost, risk of obsolescence)

High inventory levels are a symptom of other problems in the system• System inflexibility

• Poor line pacing

• Poor process capability

• Variation in machine availability


Waste – Motion

Unnecessary or excessive motion of people or machines

Example: operator has to go to the office to phone the inspector every time a product lot is completed

Motion waste is usually caused by the layout not being optimized for the process

Office Distance= 70 ft

Frequency = 30 times per shift

Walking time = 2 minutes

1 hourwalking time

per shift



Waste – Waiting

Waiting on parts, tools, people or information

Waiting can also be within-process

Symptom: production pace is highly variable

Symptom: workload is not leveled among operations

Excess capacity and high WIP levels compensate for the variable pace

Waiting time

0

4

812

16

20

24

2832

36

40Takt time: 40 seconds

Ope

ratio

n 1

Ope

ratio

n 2

Ope

ratio

n 3

Ope

ratio

n 4

Ope

ratio

n 5

Ope

ratio

n 6

Ope

ratio

n 7

Ope

ratio

n 8

Tim

e (s

econ

ds)


Waste – Overproduction

Overproduction occurs when product at any step of the process is processed sooner, faster, or in greater quantities than customers demand

Examples: batch processing, pushing product bubble to next step

Overproduction can increase the impact of other types of wastes such as inventory, waiting and defects



Waste – Overprocessing

Overprocessing is performing additional processing over and above the true customer requirements

Examples: over-etching, over-polishing, double-checks

May result from internal standards that are tighter than the true customer requirements in order to provide risk mitigation


Waste – Defects

Defect is anything that prevents the product, service or process from performing its intended function

Requires additional resources, line capacity and buffer inventory to avoid major disruption to the production pace

0

50

100

150

200

250

300

350

400

1 4 7 10 13 16 19 22 25 28

Reworked

Quantity

Day



The 8th Type of Waste

Under-utilization of resources and talents

“Are there online training resources that we can use so we don’t have to wait for a class.”

“I spend a lot of time doing paperwork that really has no benefit.”

“I waste time each day waiting on reports to be delivered from other departments.”

“Our team spends a lot of time collecting metric data that we feel is not relevant.”

1

7

5 4

3

2

The 8th type of waste is under-

utilization of people6


Lean Manufacturing: Principles

Flow: Near Continuous Flow, Small Batch Sizes

Pace: Synchronized Between Steps, Aligned to Customer Needs

Pull: Scheduling at Each Step Linked to Customer Demand

Level: Resources Balanced to Reduce Over or Under-Utilization

Stability: Enabler of Flow, Pace, Pull & Level, Leading to Decreased Waste and Increased Business Impact



Map out entire business process

Identify waste and incidental steps

Eliminate waste and streamline incidental tasks/steps

Eliminate other blockages to flow (e.g. batching)

1 2

3 4

5Wait

Wait

Value add

Internal buffer

A

1 2 3 4 5

Value addFrom To

Flow


Determine the rate of customer demand

Synchronize all process steps to that rate

Only produce what is needed when needed without waiting or inventory

1 2 3 4 5

WIP (Work in progress)

1 2 3 4 5

WIPFrom To

Pace



Only produce what the customer wants when they want it

Set up clear system to produce on customer orders

From To

1 2 3 4 5

From

Push

WIP

Push

WIP

Push

WIP

Push

WIP

Signal to do workFlow of work

1 2 3 4 5

To

Pull

Signal

Pull

SignalPull

Signal

Pull

Signal

Signal to do workFlow of work

Pull


Level

No asset or person under or over utilized

This requires work standards and cross training

1 2 3 4 5From

Time per activity

21 543

1 2 3 4 5To

Time per activity

21 543



Lean Tools


Lean Tools

Common lean tools include:

1. Value Stream Mapping (VSM)

2. Spaghetti Diagrams

3. Continuous Flow Manufacturing; Theory of Constraints (TOC)

4. Visual Factory

5. 5S

6. Poka-Yoke

7. Total Productive Maintenance (TPM)

8. Setup Reduction

9. Kaizen



Value Stream Mapping (VSM)

Objective: Identify and Eliminate Waste1. Map the process; identify the current state. Include relevant data such as processing

and waiting times and failure rates.

2. Classify activities as Value-Added (green), Non-Value-Added (red) or Incidental (yellow)

3. Identify the desired future state. Eliminate, combine, streamline tasks.

4. Define action plan to achieve the future state


Final VSM (Current & Future State Maps)



VSM is called “Material and Information Flow” by Toyota

The top part of the map is for information flow ( from right to left)

The bottom part of the map is for material flow (from left to right)

VSM with Information Flow (Toyota System)


Spaghetti Diagrams

Spaghetti diagrams show the path taken by a person or product through a portion of the processing flow Highlights handoffs and potentially wasted motion in the process



Continuous Flow Manufacturing

Continuous Flow Manufacturing (CFM)

Objective: move material one piece (process unit) at a time, at a rate determined by the needs of the customer Supports the Flow, Pace, Pull and Level objectives of Lean Manufacturing

Utilizes a number of techniques Kanban (pull system) to signal when the next operation needs product

Poka-Yoke (mistake proofing) to prevent defects from proceeding

Inspections and self-checks to catch defects

Total Productive Maintenance to ensure high line capability

1 2 3 4 5 1 2 3 4 5

WIP (Work in progress)


Theory of Constraints (TOC)

Developed by Eli Goldratt “The Goal” (1986) and “Theory of Constraints” (1990)

Objective Maximize throughput and minimize cycle time

Three basic measures Throughput

Inventory

Operational Expense

Focus Identify bottleneck constraint and reduce it’s impact



Theory of Constraints (cont.)

Procedure Identify the system constraint

Ensure non-constraints are managed to provide materials and resources to the constraint

Work to resolve the root causes of the constraint

Repeat; look for new constraints

Drum – Buffer - Rope Goal: Ensure a smooth flow of material to the constraint

Drum: The pace of the operation as determined by the constraint

Buffer: Inventory at the bottleneck to ensure it never waits

Rope: Feedback mechanism to ensure buffer is maintained at the proper inventory level

TOC promotes the Flow, Pace, Pull and Level principles


Visual Factory

Visual Factory communicates critical information quickly

Objective: Make relevant problems obvious to all in real time

R O U T E

Relevant EngageObviousUnderstand

QuicklyTimely

• Key Performance Indicators

• Key Steps

• Key Locations

• In Plain Site

• Simple (e.g., light tower)

• Show Status vs Standard or Goal

• Colors to HighlightIssues

• Emphasize Visual Displays (not numbers)

• Update Regularly

• Ideally Update Automatically

• Create Urgency

• Create Ownership

• Drive Action



Visual Factory (cont.)

Visual Factory examples

Light Tower allows real time visual notification of problems

Blue tape makes it obvious when setup is not per standard


5S

5S is an important element of visual control Enables detection of non-standard practices

Instills order and cleanliness in the workplace by: Establishing orderly workplace

Sustaining the new order

Achieved by: Sort: clear out unnecessary items

Set in Order: arrange & mark optimum work area layout

Shine: clean workplace regularly

Standardize: document best practices

Sustain: maintain workplace best practices



Poka-Yoke (Mistake Proofing)

Pronounced POH-kah YOH-kay It is a translation of a shortened Japanese phrase meaning “to make mistakes impossible”

Developed by S. Shingo of Toyota Shingo calls it “Zero Quality Control” (ZQC)

Why is Poka-Yoke important? It has extremely high impact, usually at little cost

Conceptually is one of the simplest tools to learn

Poka-Yoke has two parts: Making mistakes impossible (prevention and solution)

Making mistakes immediately obvious (detection)

Example Part design only allows the correct install orientation


Total Productive Maintenance (TPM)

Total Productive Maintenance (TPM) originated in Japan as a method for improved machine availability through better utilization of maintenance and production resources.

TPM is a critical adjunct to lean manufacturing.

TPM enhances lean efforts and facilitates productivity

1. Starts with 5S / Visual Factory

2. Analyzes downtime events by cause, frequency, and duration

3. Prevents downtime using effective Preventive Maintenance (PM)

4. Predicts downtime using Predictive Maintenance

5. Expands role of Operator as first point of early warning and prevention



Total Productive Maintenance (TPM)

TPM eliminates waste and lost time: Due to equipment downtime and setup

Due to idling and minor stoppages

Due to discrepancies between designed and actual speed of equipment

Due to process defects

Due to quality problems at startup

Photo source: http://blogs.rhsmith.umd.edu/stephen/2010/10/

Maintenance losses Maintenance labor parts & supplies

Outside resources

Defect Losses Process defects

Reduced yield

Downtime Losses Equipment breakdown

Setup and adjustment

Speed Losses Idling and minor

stoppages

Reduced operating speed


TPM: Overall Equipment Effectiveness

Total Time

Avai

labi

lity

A Operations Time (Scheduled Time)*Non-scheduled Time

B Uptime*UPDT, PDT*Setup

Perf

orm

ance

C Manufacturing Time

D Productive Time* Speed Losses

* Idle Time

Qua

lity E Actual output

F Good output*Scrap/rework*Startup losses

OEE = B/A x D/C x F/E = F/A

Availability Rate x Performance Rate x Quality Rate



Setup Reduction

Setup Reduction (SUR) Also known as Single Minute Exchange of Die (SMED) or Quick Changeover

Objective Reduce changeover and setup times to <10 min

Benefits Increases operational flexibility, especially for high-mix, low-WIP

Reduces waste (waiting, inventory)

Increase area utilization and capacity


Setup Reduction (cont.)

Techniques Convert Internal Setup (IS) activities to External Setup (ES)

• Internal Setup must be performed while the machine/process is stopped

• External Setup can be performed while the machine/process is still running

Remove useless setup steps, adjustments and quals

Simplify tooling (jigs, clamps, interlocks, etc.)

Simplify procedures

Do procedures in parallel

Standardize (checklists)



Kaizen

Definition “Kai” means “change.” “Zen” means “good” (for the better).

Kaizen typically means small improvements, carried out on a continual basis and involving all people in an organization.

Objective Reduce losses and inefficiencies in the workplace

Example: Idea System

A version of Kaizen called Kaizen Blitz is a focused, short-term effort to resolve a specific issue. Typically <1-2 wks.


Lean Summary

Lean Principles: Flow, Pace, Pull, Level

Lean Tools

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Goals

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Lean Focus: Enhance Value Stream

Lean Strategies: Eliminate Waste, Control Variability, Increase Flexibility & Synchronize to Customer Demand



Summary

Thank you for attending!

This presentation has covered the following: The concepts of Lean Manufacturing and Value Stream

Types of activities: Value-Added, Non-Value-Added and Incidental

The 7 types of wastes

4 strategies to remove waste

Several lean tools

Questions?


Attachment: To Batch or Not To Batch



Small Queue Batches Reduce Inter-Step Wait Times


Small Queue Batches Reduce Inter-Step Wait Times

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Cycle Time vs Queue Batch Size



Process Batching Capacity Allows Units to Process in ParallelTo minimize cycle time, match the queue batches to the process capacity

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