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Proprietary of VEM Technologies Pvt Ltd. Hyderabad-072 India. April 2006 1
Good Morning
&
Welcome
http://d/VGS-FILES/leanmfg/Lean%20Awareness%20Training/SuppyLean.ppthttp://e/CUT00004.MPG -
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Best In Class Results
Work-in-process: Weeks to days
Quality (rejects): >20% to 1,000 feet to 50% reduction
People: Significant reallocation and utilization of creativity
AerospaceMachine Tools
Chemicals
Automotive
Consumer ProductsPharmaceuticals
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Balanced use of people, equipment and
material that gives us the lowest
manufacturing cost
Lowest manufacturing cost assumes all
waste is eliminated
What is Lean
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What Is Lean Production
Wide product variety at low volume with many options - Short batch size / QC
High first-time quality in products - Six Sigma
Rapid response to market shifts - Flexibility
Low capital spend per unit produced - Waste elimination
Dramatically lower production costs - BIC cost
To develop sustainable competitive edge
across the value chain
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Waste
Waste
Waste
Waste: Waiting for materials,
watching machine running, producing
Defects, looking for tools, fixing
Machine breakdown, producing
Unnecessary item, etc.
Waste : Transportation, storage,Inspection and rework.
Waste : Unnecessary movementOf machine, setup time, machine
Breakdown, unproductive maintenance,
Producing defective products, producing
Products when not needed, etc.
How Material Spend Time in Typical Factory
How people spend Time in Typical Factory
How Machines Are Utilized in Typical Factory
ValueAddedPortion of Time
Value-Added
Portion of Time
Value-Added
Portion of Time
WASTAGE
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TYPES OF WASTES
1. OVER PRODUCTION
2. WAITING TIME3. UNNECESSARY TRANSPORT OR CONVEYANCE
4. OVER PROCESSING OR INCORRECTPROCESSING
5. EXCESS INVENTORY
6. UNNECESSARY MOVEMENT
7. DEFECTS.
8. UNUSED EMPLOYEE CREATIVITY
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ELIMINATING WASTE
1. Overproduction. Production items for which there are no orders, whichthere are no orders, which generates such wastes as overstaffingand storage and transportation costs because of excess inventory.
2. Waiting (time on hand). Workers merely serving to watch an automatedmachine or having to stand waiting for the next processing step,tool, supply, part, etc., or just plain having no work because ofstock outs, lot processing delays equipment down time, andcapacity bottlenecks.
3. Unnecessary transport or conveyance. Carrying work in process (WIP)long distance, creating inefficient transport, or moving material,parts, or finished goods into or out of stronge or betweenprocesses.
4. Over processing or incorrect processing. Taking unneeded steps to
process the parts. Inefficiently processing due to poor tool andproduct design, causing unnecessary motion and producingdefects. Waste is generated when providing higher qualityproducts than is necessary.
Cont..
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5.Excess inventory.Excess raw material, WIP or finished goods causinglonger lead times, obsolescence, damaged goods, transportation and
storage costs, and delay. Also, extra inventory hides problems such asproduction imbalances, late deliveries from suppliers, defects,equipment downtime, and long setup times.
6. Unnecessary movemnt. Any wasted motion employees have to performduring the course of their work, such as looking for, reaching for, orstacking parts, tools, etc. Also, walking is waste.
7. Defects. Production of defective parts or correction. Repair or rework,scrap, replacement production, and inspection mean wastefulhandling, time, and effort.
8. Unused employee creativity. Losing time, ideas, skills, improvements,and learning opportunities by not engaging by not engaging or
listening to your employees.
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Over production creates more problems and obscures the real cause of the problems.
Extra
Paperwork
Extra
People
Extra inventoryExtra handling
Extra Space
Extra interest charges
Extra machinery
Extra defects
Extra overhead
BY-PRODUCTS OF OVERPRODUCTION
Waste of overproduction
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Inventory Covers Problems
Long
Transportation
Absen-
teeism
VendorDelivery
Quality
problemsMachine
Breakdown
PoorScheduling
Communi
cation
problem
Lack of
House-Keeping
Long set-
Up Time
LineImbalance
Sea of
Inventory
Finished
Product to
customersRaw material
VEM
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A B
MULTIPLE MACHINE HANDLING
BEFORE
LoadAutomatic
OperationUnload
A
Load
Automatic
OperationUnload
Time
B
MULTIPLE MACHINE HANDLING
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AB
LoadAutomatic
OperationUnload
& loadA
Automatic
Operation
Unload
Time
BLoad
Automatic
Operation
Unload
& load
W
A
L
K
W
A
L
K
W
A
L
K
W
A
L
K
MULTIPLE MACHINE HANDLING
AFTER
CHECKLIST
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CHECKLIST
1. Do similar mistakes occur over and over again in your areaof operation?
[Yes/No/Dont Know]2. Is any time or money spent on rectifying these mistakes?
[Yes/No/Dont Know]3. Do any policy statements or standards exist for doing
things right first time?[Yes/No/Dont Know]
4. Do Managers know the responsibility for correcting theseproblems?
[Yes/No/Dont Know]5. Do Manager accept the real cost of rectifying mistakes?
[Yes/No/Dont know]6. Do you see the need for improvement in your area of
operation?[Yes/No/Dont know]
Lean Framework
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PullProduction
One-piece
Flow
Lean Production System
JUST IN TIME Just what is
needed.
In just the amountneeded.
At just the
moment needed. Utilizing the
minimum:Material, Labor,Equipment andSpace
Zero DefectsDetection andCorrection
Prevention:Mistake
ProofingDFM/DFAOPEX
Value Stream Mapping/5S/TPM/Quick Change
Continuous Improvement Through the Elimination of Waste
Takt TimeProduction
StandardizedWork
Minimum Workin Process
Kanban
Focus onOEE
Material
Machine
People
Lean Framework
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Non-Value-Adding Activity
7 Deadly Symptoms of Wastes
Defects
Waiting
Inspection
Storage/Inventory
EquipmentDowntime
Over / UnderEarly / Late Production
Rework / re-
Value-Adding (5%)
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Opportunity Model
Current State Vision 50% ValueAdding
50% Non-Value Adding95% Non-Value Adding
5% ValueAdding
Through everyone eliminating waste
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Cell Design
Quick Changeover
Total Productive Maintenance (TPM)
Mistake Proofing
5S / Visual Workplace
Value Stream Mapping
Kanbans / Supermarkets
. . . Key Tools . . .
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Lean Production Objectives
Fewer delivered defects
Shorter product lives & lead times
Less time for uptake of new technologies
Less time to respond to market shifts
Lower levels of effort
Lower capital investment (space, tools, inventories, etc.)
High speed of Production
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1) What Is Cell Design?
The linking of value-adding operations in sequence ofmanufacture to minimize non-value added activities,moving toward one-piece flow.
A means for achieving leanproduction management.
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Definition: Value-Adding
Any operation or activity that changes,converts, or transforms material into theproduct that the customer is willing to payfor.
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Definition: Non-Value-Adding
Any operation or activity that takes time andresources but does not add value to theproduct sold to the customer.
Benefits of Cell Design
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Benefits of Cell Design
Reduce Non-Value Added activities
Shorter lead timesSmaller space requirement
Simpler production of part families
Improved flexibility and scheduleactualization
Most effective use of resources
Equipment MaterialPeople
LAYOUT IMPROVEMENTS
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Before After Improvement
Floor space 1148sq.ft 720 sq.ft 37%
In-process Inventory 4000 pcs 10 pcs 99%
Number of Operators 2.7 2 25%
Output per person 168 217 23%
Scrap 100(indexed)
26 (indexed) 74%
Summary of Improvement
LAYOUT IMPROVEMENTS
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LAYOUT IMPROVEMENTS
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Before After
In-process
Inventory
1800 pcs 7 pcs
Number of
Operators
7 3
IMPROVEMENT ACHIEVED
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Before After
No. Operators 10 4
Inventory
(indexed)
100
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Summary of Improvement
Before Present ProposedNumber ofOperators
4 2 1-2
Work in Process
(Pcs.)
542 12 9
Floor Space (sq.ft.) 1075 920 580
Conveyor (ft.) 140 10 0
Number ofBranches
5 3 1
MATERIAL FLOW IN A PROCESS ORIENTED LAYOUT
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Storage
Lathe
Paint
Receiving
Plating
Assembly
Mill
Grinder
Saw
Storage
VEM
TYPES OF WASTE IN PROCESSES ORIENTED LAYOUT
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1.Difficult coordination and production scheduling
2. Transportation waste
3. Accumulation of in-process inventory
4. Double or triple handling of materials
5. Extremely long production lead time
6. Difficulty in identifying cause of defects7. Flow of material and operators work difficult to
standardize
8. Difficulty in improvement due to lack of
standardization.
Material Flow in a Product-Oriented LayoutVEM
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Material Flow in a Product Oriented Layout
Receiving
Building
Services
Lathe
Paint
Saw
Lathe
Mill
Assembly
Saw
Grinder
Paint
Plating
Assembly
Miscellaneous
AssemblyStorage
Note: Material Floe
VEM
2) Quick Changeover:
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The Key to Lead Time Reduction
Less adjustment less error less rework
Smaller runs fewer defects and scrap Machine and scheduling flexibility reduces the need for all
types of inventory
Less inventory less space less carrying cost
Less waste reduced lead time
Reduced lead time is a key to competitive advantage!
VEM
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Two Examples of Ways to Eliminate
Adjustment
Standardized Die Height
Block
Locating pin
VEM
VEM
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Railed Cart
Die Cart
Load used die
Load new dieRollerConveyor
Rail
VEM
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1
2
3 4
OLD METHOD
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1
Rail
NEW METHOD
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Machine
12A
Address
Color coding
Die storage area
(Close to the point
Of use)
Reduction of External Setup by Work place
Organization
) P ?
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3) What Is TPM?
TPM means Total Productive Maintenance
(or Total Productive Manufacturing)Definition:A common sense team approach to
maintaining the condition of equipment,managing its life cycle and and improving the
reliability of the process. It relies heavily uponoperator ownership of equipment, continuousimprovement, and planned maintenance. TPM isa team approach that involves operators,supervisors, skilled trades, engineering and
anyone else who has a stake in the equipment.
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Heat
vibration
oil
Leak
Dirtiness
Noise
Initial Symptoms of Machine Trouble
Benefits of TPM
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Assists in meeting Net goal
Increases each departments ability to be a reliable
supplier Increases each departments production capacity
Helps insure that each departments equipment can
produce Quality products on time
Provides each department with accurate fact basedinformation for decision making
Increases operator morale by providing a means toeliminate reoccurring problems
Reduces the stress of dealing with equipmentbreakdowns
EXAMPLES OF TPM EFFECTIVENESS
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P(Productivity)
Labour productivity increased:140% (Company M)150% (Company F)
Value added per person increased:147% (Company A)117% Increase (CompanyAs) Rate pf operation increased17% (68% - 85%) (Company T) Breakdowns reduced.98% (1,000 20 cases/mo.) (company TK)
Q(Quantity)
Defects in process reduced90% (1.0% - 0.1%) (Company MS) Defects reduced70% (0.23% -- 0.08%) (Company T)
Claims from Clients reduced50% (Company MS)50% (Company F)25% (CompanyNZ)
C(Cost) Reduction in manpower30% (Company TS)30% (Company C)
Reduction in maintenance costs:15% (Company TK)30% (Company F)30%(Company NZ) Energy conserved.30% (Company C)
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D(Delivery)
Stock reduced (by days):50% (11 days 5 days (Company T)
Inventory turnover increased:200% (3 6 times/mo (Company C)
S(Safety)Environment
Zero accidents company M)
Zero pollution (Every Company)
M(Morale)
Increase in improvement ideas submitted:230% Increase (36.8 83.6/
person per year) (Company N) Small group meetings increased:200% (2-4 meetings/mo) (company C)
Five Major Causes of Machine Troubles
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1. Failure to maintain fundamental machinerequirements, e.g., housekeeping, Oiling, bolt
tightening, etc.2. Failure to maintain correct operating conditions, e.g.,
temperature, vibration, pressure, speed, torque, etc.
3. Lack of skills, e.g., operators mis-operation,
maintenance crews errors.4. Deterioration, e.g., of bearings, gears, fixtures, etc.
5. Design deficiency, e.g., materials, dimension, etc.
Note:- Generally, a combination of these elements
causes machine troubles.
How the Losses
Red ce Effecti eness
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Reduce Effectiveness
1. Equipment failures
2. Setup and adjustment
3. Idling and minor stoppages
4. Reduced speed
5. Defects in process
6. Startup and reduced yields
Operating time
Total available time
Net operatingtime
Valuable
operatingtime
Downtime
losses
Speed
losses
Def
ect
losses
Equipment Effectiveness Six Major Losses
Fi El t f P d ti d th M t C D f t C i Sit ti
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Five Elements of Production and the Most Common Defect-Causing Situations
Operator
Procedure
Materials
Machines
Information
Inappropriate procedures
or standards
Human Mistakes
Excessively
variable materials
Worn machine parts
Lack of / Mis-interpreted
Information
Product/Process Design Impacts all 5 Elements
F b i tiSubassembly Final Ware- Market
Finished Goods Inventory Helps smooth production Activities
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FabricationAssembly
Ware
house
Market
Finished
Goods
Inventory
Wh t i Z D f t C t l?
4) Mistake Proofing
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What is Zero Defect Control?
A quality approach for achieving zero defects in
production processes
Four Elements of Zero Defect Control
Source Inspection
100% detection - no defect forwarding
Immediate Feedback
Mistake Proofing Devices
Definition: Mistake Proofing
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g
A process improvement that prevents theproduction of faulty products.
Benefits of Mistake Proofing
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Enforces standard operational procedures
Prevents product damage
Prevents machine damage
Signals or stops a process if an error ismade or a defect created
Eliminates variation leading to incorrectactions
Six Most Common
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Six Most CommonMistake Proofing Devices
Guide pins of different sizes
Error detection and alarms
Limit switches
Counters Checklists
Scales
Fi t U d P k Y k
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RightDirection
Wrong
direction
Fixture
(no fixture)
Fixture Used as Poka-Yoke
i i S i h d k k
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Limit switch
Right
PositionWrong
Position
Limit Switch Used as Poka- Yoke
5)Workplace Organization --The 5SS
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Sort (Organization) Set In Order (Stabilize)
Shine (Cleanliness and Inspection)
Standardize (Adherence)
Sustain (Self-discipline)