Principles of Lean Manufacturing with Live Simulation presented by Impact Washington
description
Transcript of Principles of Lean Manufacturing with Live Simulation presented by Impact Washington
Principles of Lean Manufacturing with Live
Simulation
presented by Impact Washington
Assisting Washington companies to help them be globally competitive
– Bottom line improvements– Top line growth– Strategic development and
implementation
Impact Washington
Helping to build a strong 21st century manufacturing industry in Washington
Course ObjectivesBy the end of this class you will be able to:• Define Lean.
• Identify the “Eight Wastes.”
• Differentiate between Value-Added and
Non-Value-Added activities.
• Apply various Lean implementation tools in a
simulation setting.
• Describe how Lean Principles can impact the
success of your organization.
WelcomeIntroduction to Lean ManufacturingImplementing Lean• 5S, Point of Use Storage, Visual Controls, Plant Layout, Quick
Changeover, TPM, Batch Reduction, Quality @ SourceImplementing Lean • Pull/Kanban, Cellular Flow, Standardized WorkImplementationOpen Discussion
Course Agenda
History of ManufacturingPe
ople
Prod
uct
Wor
k En
viro
nmen
t
Pre-industrial 1890 Mass 1920 Lean 1980
• Craftsmen perform all aspects of task
• Self-taught or apprenticeship training
• Employees contribute minimally to total product
• Training for limited skills• Management makes
decisions
• Clusters of employees working in teams
• Extensive, continuing training
• Customized, non-standard products
• Variations in quality
• Standardized, focused on volume, not quality
• Focused on internal/external customer
• Independence, discretion• Variety of skills• Responsibility
• Limited skills and knowledge
• Repetitive, mind-numbing work
• Little discretion, simplified tasks
• Some discretion, group effectiveness, empowerment, team accountability, work cells
“One of the most noteworthy accomplishments in keeping the price of Ford products low is the gradual shortening of the production cycle. The longer an article is in the process of manufacture and the more it is moved about, the greater is its ultimate cost.”
Henry Ford, 1926
Cycle Time
Monday 7:00 PMBoat docks loaded with iron ore and conversion begins
Tuesday 10:55 AMOre conversion complete and foundry processes continue
Tuesday 12:55 PMCast into cylinder blocks, cooling and cleaning begins
Tuesday 5:05 PMFirst machining operation begins, 58 operations in 55 minutes
Tuesday 6:00 PMBlock enters assembly
Tuesday 7:45 PMMotor assembly complete, shipped to car assembly factory
Wednesday 8:00 AMMotor enters car assembly line
Wednesday 12:00 PMDealer takes delivery of car and payment received
Ore to payment in 41 hours including 12 hours shipping
The Ford Motor Company, River Rogue Factory, 1926 Peak Year Production 2.1 Million Model “T” Chassis 1923
High Velocity Manufacturing
GOOD
CHEAPFAST
PICK ANY TWO
Defining LeanLEAN : the systematic and relentless elimination of waste in all forms resulting in:
Improved quality Lower costs Faster delivery
Introduction to Lean Manufacturing
Value AddedAny activity that increases the market form or function of the product or service. (These are things the customer is willing to pay for.)
Non-Value AddedAny activity that does not add market form or function or is not necessary. (These activities should be eliminated, simplified, reduced, or integrated.)
Definition of Value Added
Value-Added Time : MinutesTime in Plant : Weeks
ReceivingWarehouse
Kitting
Springs Diodes
Storage
Repair
Testing
ShippingWarehouse
Ship
Material
ORDER CASH
LEDs
Mass Production
Value-Added
Typically 95% of all lead time is non-value-added.
Overproduction Waiting Transportation Non-value-added processing Excess inventory Defects Excess motion Underutilized people
Non-Value-Added
Lean = Eliminating Waste
Overproduction Waste
• Making more than is required by the next process
• Making earlier than is required by the next process
• Making faster than is required by the next process
• Causes –– Just-in-case logic– Misuse of automation– Long process setup
Introduction to Lean Manufacturing
Waiting Waste
• Idle time created when waiting for…?
• Causes –– Unbalanced scheduling / workload
– Unplanned maintenance
– Long process setup times
Introduction to Lean Manufacturing
Transportation Waste
• Transporting parts and materials around the plant
• Causes –– Poor plant layout
– Poor understanding of the process flow for production
– Large batch sizes, long lead times, and large storage areas
Introduction to Lean Manufacturing
Non-Value Added Processing Waste
• Effort that adds no value to the product or service from the customers’ viewpoint
• Causes –– Overproduction– Poor understanding of customer
requirements– Lack of communication
Introduction to Lean Manufacturing
Excess Inventory Waste
• Any supply in excess of a one-piece flow through your manufacturing process
• Causes –– Just- in-case logic– Poor market forecast– Reward system
Introduction to Lean Manufacturing
Defect Waste
• Inspection and repair of material in inventory
• Causes of defects– Weak process control– Inadequate education/training/work instructions– Product design
Introduction to Lean Manufacturing
Excess Motion Waste
• Any movement of people or machines that does not add value to the product or service
• Causes –– Inconsistent work methods
– Unfavorable facility or cell layout
– Poor workplace organization and housekeeping
Introduction to Lean Manufacturing
Underutilized People Waste• The waste of not using people’s mental,
creative, and physical abilities
• Causes – – Old ways of thinking, politics, the business
culture
– Low or no investment in training or development
Introduction to Lean Manufacturing
Buzz Enterprises
Buzz Electronics
and
BuzzSaw
Welcome to Buzz Electronics
• What were your impressions of Buzz?• What did you think of the processes?• What could be changed?• How does this relate to your company?
Round One: Debrief
Quick Changeover
Standardized Work
Batch Reduction Quality at Source
5S System Visual Controls
Plant Layout
Point of Use Storage
Cellular/FlowPull/Kanban
TPM
ValueStreamMapping
Lean CultureContinuous Improvement
Lean Building Blocks
A safe, clean, neat, arrangement of the workplace
provides a specific location for everything, and
eliminates anything not required.
5S – Workplace Organization
5. Sustain
1. Sort
4. Standardize
3. Shine
2. Set in Order
Elements of a 5S Program
Implementing Lean: Part I
Have you…• …ever had to work in a crowded work
area?• Wasted time looking for parts/tools that
were misplaced?• Had parts or tools that were not
needed?• Wasted time walking to pick up a tool or
a part?
What is 5S?
Organizational behavior….not housekeeping?
5S
Sort
Sweep
Self-Discipline
Standardize
Simplify
What are the benefits of 5S?
What the Experts SayClean factories…..
• Have higher productivity• Produces fewer defects• Meets deadlines better• Safer place to work
What the Experts Say
• Reduced setup• Reduced defects• Reduced waste• Reduced delays• Reduced injuries• Reduced breakdowns
5S-Sort
Sort
Sweep
Self-Discipline
Standardize
Simplify
Separates the necessary from the unnecessary. Remove all items from the workplace not needed for “current” production.
5S-Sort
Red Tag Method
Things are tagged as red or yellow.
Red means it is out of here.
Yellow means I’m not sure.
Red Tag draws attention so problems are not forgotten
Questions to Ask
• Is this item needed?• Is it needed in the quantity• If it is needed, does it need to be located
here?• Is it unsafe?• Is the item obsolete?
5S-Simplify
Sort
Sweep
Self-Discipline
Standardize
Simplify
A place for everything….and everything in its place
Items are arranged so they are easy to use and easy to find
Simplify
Simplify
Step #1 - Find the “best” location. Wasted motion to use and replace tools should be minimized
Step #2 - Make it obvious when things are out of place
Yellow Tagged Items Need to Find a Home
Simplify-Ways to Make Out of Place Things Obvious
• Divider lines• Labels-Color Coding Is Effective• Shadow boards
Sort
Sweep
Self-Discipline
Standardize
Simplify
Sweep
Constantly reviewing area to ensure the area is kept clean.
5S
Sort
Sweep
Self-Discipline
Standardize
Simplify
Standardize
Create guidelines for maintaining the improved conditions
StandardizeStep #1-Create guidelines for conditions of Sort, Set, and Shine.
What might these guidelines look like?
Standardize
Step #2-Create standards. When and how to perform cleaning tasks.
What are ways to ensure the standards are followed.
Standardize
Step #3-Make the standard guidelines visual.
Why?What are some ways?
Standardize
Step #4-Maintain and monitor the 5S conditions
What is the best way to make sure this happens
Sort
Sweep
Self-Discipline
Standardize
Simplify
Self-Discipline
Making 5S a habit
RequiresSupport from managementOngoing, company wide communicationMaking it part of daily workTotal employee involvement
SORTING SIMPLIFYING SWEEPING STANDARD-IZING
SELF-DISCIPLINE
Level 5 Focus on Prevention
Employees are continually seeking improvement opportunities.
A dependable, documented method has been developed to provide continual evaluation, and a process is in place to implement improvements.
Area employees have devised a dependable, documented method of preventative cleaning and maintenance.
Everyone is continually seeking the elimination of waste with changes documented and information shared.
There is a general appearance of a confident understanding of, and adherence to, the 5S principles.
Level 4 Focus on Consistency
A dependable, documented method has been established to keep the work area free of unnecessary items.
A dependable, documented method has been established to recognize in a visual sweep if items are out of place or exceed quantity limits.
5S agreements are understood and practiced continually.
Substantial process documentation is available and followed.
Follow-through with 5S agreements and safety practices is evident.
Level 3 Make it Visual
Unnecessary items have been removed from the workplace.
Designated locations are marked to make organization more visible.
Work/break areas and machinery are cleaned on a daily basis. Visual controls have been established and marked.
Working environment changes are being documented. Visual control agreements for labeling and quantity levels established.
5S agreements and safety practices have been developed and are utilized.
Level 2 Focus on Basics
Necessary and unnecessary items are separated.
A designated location has been established for items.
Work/break areas are cleaned on a regular scheduled basis. Key items to check have been identified.
Methods are being improved, but changes haven’t been documented.
A recognizable effort has been made to improve the condition of the workplace.
Level 1 Just Beginning
Needed and not needed items are mixed throughout the workplace.
Items are randomly located throughout the workplace.
Work place areas are dirty, disorganized and key items are not marked or identified.
Work place methods are not consistently followed and are undocumented.
Workplace checks are randomly performed and there is no visual measurement of 5S performance.
Before After
Before After
Before After
Before After
Before After
After
After
How Does 5S...
Reduce setup time??
How Does 5S...
Reduce Defects??
How Does 5S...
Reduce Waste??
How Does 5S...
Reduce Delays??
How Does 5S...
Reduce Injuries??
How Does 5S...
Reduce Breakdowns??
Sort —
Perform “Sort Through and Sort Out,” by placing a red tag on all unneeded items and moving them to a temporary holding area. Within a predetermined time the red tag items are disposed, sold, moved or given away. “When in doubt, throw it out!”
Elements of a 5S Program
Set in Order —
Identify the best location for remaining items, relocate out of place items, set inventory limits, and install temporary location indicators
Elements of a 5S Program
Shine —
Inspect items by cleaning them and returning them to their proper location.
Elements of a 5S Program
Standardize —
Create the rules for maintaining and controlling the first three S’s and use visual controls
Elements of a 5S Program
Sustain —
Ensure adherence to the 5S standards through communication, training and self-discipline
5S Photos
Elements of a 5S Program
• Raw material is stored at workstation where used
• Works best if vendor relationship permits frequent, on-time, small shipments
• Simplifies physical inventory tracking, storage, and handling
Point of Use Storage
• Deliver directly to the line
• Use small, reusable, visible parts containers
• Locate parts close to operators
• Consume parts from front, replenish from rear
• Kit low volume parts/sub-assemblies
• Standardize quantities/standard WIP
• Establish parts/water levels visually
• Work to eliminate inspection, receiving, transportation
Point of Use Storage
P.O.U.S.
• Simple signals that provide an immediate understanding of a situation or condition. They are efficient, self-regulating, and worker-managed.
• Examples:– Color-coded dies, tools, pallets– Lines on the floor to delineate storage areas,
walkways, work areas, etc.– Andon lights
Visual Controls
ProcedureI. Purpose - To establish standard policy and procedures defining correct action to be taken when approaching intersection.II. Definitions - Intersection - Crossroads where more than one road join or connect.- Road - Surface for vehicular travel.- Car - AutomobileIII. Procedure 1)When approaching intersection slow vehicle and bring to complete stop. 2)Verify, by looking, that no other cars are approaching from left. Verify, by looking, that no other cars are approaching from right. Verify, by looking, that no other cars are approaching from left again. 3) Proceed with caution. Note, if any cars are approaching from either direction, wait until car passes and start at step 2.
ProcedureI. Purpose - To establish standard policy and procedures defining correct action to be taken when approaching intersection.II. Definitions - Intersection - Crossroads where more than one road join or connect.- Road - Surface for vehicular travel.- Car - AutomobileIII. Procedure 1)When approaching intersection slow vehicle and bring to complete stop. 2)Verify, by looking, that no other cars are approaching from left. Verify, by looking, that no other cars are approaching from right. Verify, by looking, that no other cars are approaching from left again. 3) Proceed with caution. Note, if any cars are approaching from either direction, wait until car passes and start at step 2.
Bad Example of Visual Controls
Good Example of Visual Controls
Rec Ship
Screw Machin
e
Q C
Assembly
Finish Parts Stock
Drill
Q C
Plant Layout
Rec Ship
Screw Machin
e
Q C
Assembly
Finish Parts Stock
Drill
Q C
Plant Layout
Raw Stock Q C
Screw Machin
eStamp
MillLath
e
FinishGrind
Drill
Rec Ship
Screw Machin
e
Q C
Assembly
Finish Parts Stock
Drill
Q C
Plant Layout
Raw Stock Q C
Screw Machin
eStamp
MillLath
e
FinishGrind
Drill
Shear
Brake
Weld
Rec Ship
Screw Machin
e
Q C
Assembly
Finish Parts Stock
Drill
Q C
Plant Layout
Raw Stock Q C
Screw Machin
eStamp
MillLath
e
FinishGrind
Drill
Shear
Brake
Weld
The Economic Order Quantities (EOQ) model determines the most economic lot/batch size for a production run.
Fixed Cost Increasing
Lot/Batch SizeEOQ
Changeover Cost
Inventory Carrying Cost
Changeover Cost + Inventory Carrying Cost
Variable
Cost
Setup Time Drives Batch Size
• Definition: Changing over a process to produce a different product in the most efficient manner.
• Steps in a Changeover (taken from Shigeo Shingo’s Single Minute Exchange of Dies)
Percent of time of changeover
50%
15%
30%
5%
Preparation, after-process adjustment, checking, return to storage of parts, tools, fixtures, move materials
Removing parts, blades, jigs, etc.; mounting same for next lot, move materials
Machine settings, measurements
Making trial pieces and adjusting
Quick Changeover
Preliminary Step 1 Step 2 Step 3Internal and
External Setup not differentiated
Separate Internal and
External Setup
Convert Internal Setup to External
Setup
Streamline all aspects of Setup
operations
Ext
Int
Ext
Int
Ext
Ext
Int
Int
Ext
Int
Ext
Int
Process Walk
Analysis
Preparation
Standardization
Jigs
Management of parts and tools
Parallel operations
Clamps
Less adjustments
Mechanization
Transition Steps to Quick Changeover
• Shorter Lead Time• Less Material Waste• Fewer Defects• Less Inventory• Lower Space Requirements• Higher Productivity• Greater Flexibility
Benefits of Quick Changeover
• Systematic approach to the elimination of equipment downtime as a waste factor
• Enlisting the intelligence and skills of the people who are MOST familiar with the factory machines: the equipment operators
• Charting/analyzing equipment performance to identify root cause of problems, and implementing permanent corrective actions
Total Productive Maintenance (TPM)
10 minutes
10 minutes
• Batch & Queue Processing
Lead Time: 30+ minutes for total order21+ minutes for first piece
10 minutes
ProcessA
ProcessB
ProcessC
ProcessB
ProcessA
ProcessC
• Continuous Flow Processing
12 min. for total order3 min. for first part
Impact of Batch Size Reduction
Ideal lot size is one, but if that’s not possible…
Velocity• If you can reduce the lot size, the parts will
flow through the manufacturing process faster
Flexibility• If you can reduce the lot size, the more variety
in demand the system can handle
The Ideal Lot Size
The necessity of training farm hands for first-class farms in the fatherly handling of farm livestock is foremost in the minds of farm owners. Since the forefathers of the farm owners trained the farmhands for first-class farms in the fatherly handling of farm livestock, the farm owners feel they should carry on with the family tradition of training farm hands of first-class farms in the fatherly handling of farm livestock because they believe it is the basis of good fundamental farm management.
How Many F’s?
• Operators must be certain that the product they are passing to the next workstation is of acceptable quality.
• Operators must be given the means to perform inspection at the source, before they pass it along.
• Samples or established standards are visible tools that can be used in the cell for such purposes.
• Process documentation defining quality inspection requirements for each workstation may need to be developed.
Quality at the Source
Level 1:Inspection byindependentinspectors
Level 2:Self-Inspection by operators
Level 3:Successive-Inspection (at next process)
Level 4: Source Inspection
Level 5: UpstreamProcess Control
CHECKPRODUCT
DETECTERRORS
PREVENTERRORS
• Independent Inspection
• Operator Inspection
• Next Operator Inspection• Mistake-proofing on “product”
• Mistake proofingon “errors”
• Standardization
• Advancedtechniques
• Checking processvariation vs. errors
• Suppliers neverpass on errors
Levels of Quality System
Using the Lean concepts you’ve learned, what changes can we make to improve Buzz?
• 5S System
• Point of Use Storage
• Visual Controls
• Plant Layout
• Quick Changeover
• TPM
• Batch Reduction
• Quality at the Source
Review
• What improvements were made at Buzz?
• What problems still exist?
• What can we change next to continuously improve the process?
• Do you see how these principles can be applied to your company?
Round Two: Debrief
• Pull/Kanban
• Cellular Manufacturing/Flow Production
• Standardized Work
More Lean Techniques
Push System- Resources are provided to the
consumer based on forecasts or schedules.
Pull System- A method of controlling the flow of
resources by replacing only what has been consumed.
Push vs. Pull Systems
Pull System is a flexible and simple method of controlling/balancing the flow of resources.– Eliminates waste of handling, storage, expediting, obsolescence,
repair, rework, facilities, equipment, excess inventory (work-in-process and finished)
Pull System consists of:– Production based on actual consumption– Small lots– Low inventories– Management by sight
– Better communication
Pull System
• Signal to authorize production
• Subsequent process calls for the product
• Produce only the quantity withdrawn
Kanban
Information Flow
Supplier
RawMatl
ProcessA
ProcessB
Fin. Goods
Kanban Locations
ProcessC
Customer
Parts Flow
Kanban photos
Pull System Flow Diagram
Step 1: Group products. Collect data and analyze work flow.
Step 2: Establish Takt time. Measure demands
Step 3: Review work sequence.
Step 4: Balance the Process. Combine work in balanced process.
Step 5: Design cell layout.
Continuous Flow Production – 5 Steps
Collect Data and Analyze Work Flow
• Conduct a Parts Quantity (PQ) Analysis
• Prepare a Process Flow Analysis
• Group products with similar routings
• Determine possible cells for product groupings
• Evaluate capacity bottlenecks and equipment that can be shared or dedicated
Step 1: Group Products
Takt Time - the Rate of Customer Consumption/Demand Rate
Takt Time = Work Time Available
GOAL: Produce to Demand
1200 Seconds 115 Units = 10.4 Sec/UnitTakt Time =
Number of Units Sold (demand)
At Buzz:
Step 2: Establish Takt Time
• Observe sequence of tasks each worker performs
• Break operations into observable elements
• Identify value added versus non-value added (NVA) elements and minimize NVA
• Study machine capacity, cycle times and changeover times
Step 3: Review Work Sequence
0
5
10
15
20
A B C D E
Operation
Unbalanced Line
Takt Time = 10 seconds
Seconds
Option 1: Parallel OperationsCycle time divided by takt time equals number of identical operations
Option 2: Serial OperationsSplit Operation B into two different process steps.
Option 3: Work Transfer Transfer part of work content from Operation D to Operation E.
Step 4: Balance Process
Traditional
OptimalAssembly Line
Step 5: Design and Construct Cell
Moving to Cellular Manufacturing/Flow Production
Inv Inv
Inv
Inv
C
DE
BInvA
A
InvA
AInv
A
Inv
Inv
Inv
InvB
B
Inv InvB Inv
C
C
C
C
Inv
Inv Inv Inv Inv
E
E
E
D
D
DD
Dept “A” Dept “B” Dept “C”
Dept “E”Dept “D”
DE
C
BA
DE
C
BA
Stage 1Production in Specialized Departments
Stage 2Production in Product Cell
Stage 4Production in Compact Cell with One-Piece Flow
and Separation Man/Machine
Stage 3Production in Compact Cell with One-Piece Flow
ConsistentProcess
DesiredResults
Defines operations safely carried out with all tasks organized in the
best known sequence using the most effective combination of these
resources:
• People
• Materials
• Methods
• Machines
InconsistentProcess
InconsistentResults
Without Standardized Work – there can be no sustained improvements
Standardized Work
Implementing Lean: Part I
Standardized Work
• Pull/Kanban
• Cellular Manufacturing/Flow Production
• Standardized Work
Buzz Enterprises continues its Lean transformation.
• 5S System• Point of Use Storage• Visual Controls• Plant Layout
• Quick Changeover• TPM• Batch Reduction• Quality at the Source
Round Three: Buzz Enterprises
• What improvements were made at Buzz Electronics?
• Do you see how these principles can be applied to your company?
• “What if” scenario
• Is continuous improvement still possible?
Round Three: Debrief
A simple, visual approach– Helps you visualize the total system rather than the
single process level
– Links the material and information flows
– Provides a common language for all participants
– Develops a blueprint for implementation of the future state
– Ties Lean concepts and techniques together
Getting Started: Value Stream Mapping
Prepare and motivate people
– Widespread orientation to CI, quality, training and recruiting workers with appropriate skills
– Create common understanding of need to change to Lean
Employee involvement
– Push decision-making and system development down to the “lowest levels”
– Trained and truly empowered people
Share information and manage expectations
Keys to Success
Identify and empower champions, particularly operations managers- Remove roadblocks (i.e. people, layout,
systems)
- Make system both directive yet empowering
Atmosphere of experimentation – Tolerating mistakes, patience, etc.
Keys to Success (Continued)
Install “enlightened” and realistic performance measures, evaluation and reward systems- Do away with rigid performance goals during
implementation- Tie improvements (long-term) to key macro level
performance targets (i.e., inventory turns, quality, delivery, overall cost reductions)
The need to execute pilot projects prior to rolling culture out across organization (e.g. model lines, kaizen event)
Keys to Success (Continued)
• Focus improvement in a targeted area usually for a one-week period of time
• Managers, engineers and operators work together on the shop floor
• Changes are identified and made during the workshop
Kaizen Event
• Unyielding leadership
• Strategic vision based on Lean enterprise as part of company strategy
• Observe outside successes and failures
• Ability to question EVERYTHING
• Deep commitment to EXCELLENCE
Implementation Success Factors
Lead Time Reduction
0 25 50 75100
Percentage of Benefits Achieved
Productivity Increase
WIP Reduction
Quality Improvement
Space Utilization
Benefits of Lean
“If you always do what you always did,
you’ll always get what you always got.”
For more information on how Impact Washington can help your company thrive, visit
www.impactwashington.org