SBS - Basics of Lean

SBS – Basics of Lean.ppt

Basics of Leanfor Manufacturing

On-Demand, Defect-Free,One-By-One at the Lowest Cost


Why Are We Here??

LONG-TERM“HEALTH”

QUALITY

CU

STO

MER

SATI

SFA

CTI

ON

SALE

S A

ND

PRO

FITS

COST

DELIVERY

It’s About Performance!


0 10,000 20,000 30,000 40,000

ItalyNetherlands

GermanyJapan

Norw ayDenmark

United StatesCanadaAustriaFinland

Sw edenBelgium

United KingdomIran

IrelandAustralia

IsraelNew Zealand

SpainSingapore

BrazilIraq

GreeceKorea

Hong KongSouth Africa

TurkeyPortugal

ArgentinaPanamaMexico

ChileVenezuela

SyriaZambia

EcuadorUruguayJamaicaMalaysia

Zimbabw eMorocco

ParaguayCosta Rica

HungaryThailand

HondurasColombiaPhilipines

BoliviaJordan

MauritiusCzech Republic

EgyptRussia

Dominican RepublicGuatemala

PolandYemen

IndiaRomania

IndonesiaChina

BangladeshSri Lanka

Kenya

Compensation – Manufacturing USA US $28,907 / yr UK $23,843 Singapore $16,070 Brazil $14,134 Turkey $ 7,958 Mexico $ 6,329 Malaysia $ 3,429 Costa Rica $ 2,829 Poland $ 1,714 India $ 1,192 China $ 729 Kenya $ 94

source: World Bank database

“Where should we make _____?”

Where’s the best...- quality?- cost?

- delivery?

Can it shift??


Compensation – Electronics Engineering Technicians

source: United Nations’ LABORSTA database

Electronics Engineering Technician

34,020

47,970

11,820

4,540

139

7,178

3,891

3,364

8,290

129

1,448

545

0 10,000 20,000 30,000 40,000 50,000 60,000

USA

UK

Singapore

Brazil

Turkey

Mexico

Malaysia

Costa Rica

Poland

India

China

Bangladesh

Annual Compensation ($US/yr)

“Where should we do _____?”


- delivery?

Can it shift??


Compensation – Office Clerks


Office Clerk

20,320

19,908

10,735

1,808

63

2,994

4,090

2,144

6,446

346

1,981

561

0 5,000 10,000 15,000 20,000 25,000

USA

UK

Singapore

Brazil

Turkey

Mexico

Malaysia

Costa Rica

Poland

India

China

Bangladesh




- delivery?

Can it shift??


Compensation – Electronics Equipment Assemblers


Electronics Equipment Assembler

20,180

22,066

8,587

2,146

89

3,159

1,729

1,890

5,816

119

1,443

405

0 5,000 10,000 15,000 20,000 25,000

USA

UK

Singapore

Brazil

Turkey

Mexico

Malaysia

Costa Rica

Poland

India

China

Bangladesh


“Where should we make _____?”


- delivery?

Can it shift??


Compensation – Computer Programmers


Computer Programmer

50,400

28,782

24,353

9,816

3,921

11,115

1,678

1,974

0 10,000 20,000 30,000 40,000 50,000 60,000

USA

UK

Singapore

Brazil

Turkey

Mexico

Malaysia

Costa Rica

Poland

India

China

Bangladesh




- delivery?

Can it shift??


Compensation – General Physicians


General Physician

126,580

92,422

59,140

5,805

10,357

9,198

8,075

1,400

1,327

0 20,000 40,000 60,000 80,000 100,000 120,000 140,000

USA

UK

Singapore

Brazil

Turkey

Mexico

Malaysia

Costa Rica

Poland

India

China

Bangladesh




- delivery?

Can it shift??


What’s Possible With Lean? Sales 290% of 1987 On-Time Delivery 1.2m late to 99% on-time Productivity 470% of 1987 Inventory Turns from 3.0 to 20.4 Quality Costs from 3.4% to 0.6% of sales EBITDA% 13% to 30% at lower prices

Jake Brake in year 10: “we still have so far to go”Jake Brake in year 10: “we still have so far to go”


5 Principles of Lean Thinking Value – what the customer buys Value Stream – the way the Value is delivered Flow – putting value-adding steps in sequence Pull – triggering flow from customer needs Perfection – continuous improvement forever

source: LEAN THINKING, Womack and Jones, 1996.


Materials Flow in a Manufacturing Value Stream

value added

flow time

items(materials)

out

items(materials)

in


Value Streams Are Financial

items in

items out

value added

PROFIT

items in

items out

value added

PROFIT

RETURN ON KEY ASSETS

Key Assets INVENTORY RECEIVABLES FIXED ASSETS

equipmentfacilities

Goals MORE PROFITS WITH LESS ASSETS


Value Streams Are Financial

items in

items out

value added

PROFIT

items in

items out

value added

PROFIT

RETURN ON KEY ASSETS

Key Costs MATERIAL COSTS FIXED COSTS PEOPLE COSTS ENERGY COSTS OTHER COSTS

Goals MORE PROFITS WITH LESS ASSETS


Rapid Improvement Events a Rapid Improvement Event is

AN INTENSE, FOCUSED ACTIVITY (3-5 DAYS) A TEAM FOCUSED ON A SPECIFIC AREA

each team uses specific Lean tools ROOTS: TOYOTA PRODUCTION SYSTEM APPLIED WHEREVER WORK IS DONE

you must learn by doing LEARN THE TOOLS BY USING THEM SET MEASUREABLE TARGETS AND GET THERE!


Rapid Improvement Events no shortcuts... learn by doing


R.I. Events – A 7-Week Cycle

3 weeks preparation: topics, teams, targets 5 days of rapid, focused, team action:

DAY 1: STUDY CURRENT CONDITIONS DAY 2: IMPLEMENT MAJOR CHANGES DAY 3: TRY OUT AND DEBUG DAY 4: STANDARD WORK (and redeploy) DAY 5: PRESENTATION (results and recognition)

3 weeks follow-up: all or nothing, solve, sustain


Traditional Flow vs Cellular FlowTraditional flow Cellular flowDept 1

Dept 2

Dept 4

OUT

DONE

OUT

OUT

OUT

IN

IN

IN

IN

DONE

IN

•Natural Groups in each cell

•Work sequence may be different from part flow sequence

4 3

1 2

Out

In

Dept 3


“value-adding” changes the value of an itemDRILLINGASSEMBLINGPAINTINGCUTTING

Value Adding


Non-Value Adding “non-value adding” consumes time and money ...but does not change the value of an item

SORTINGCOUNTINGSTACKINGEXPEDITINGCHECKING


Learn to See Waste

the word “waste” isn’t a judgement IF IT'S NON-VALUE ADDING, IT'S WASTE SO LET’S GET RID OF THE N.V.A. THIS CREATES PERFORMANCE

improved performance creates job security STEPS ARE WASTEFUL PEOPLE ARE VALUABLE DON'T TAKE IT PERSONALLY, IMPROVE IT!


The 8 Wastes

see and eliminate these wastes (and others): INJURIES DEFECTS INVENTORY OVERPRODUCTION WAITING TIME MOTION TRANSPORTATION PROCESSING WASTE

Can you findexamples in your

business?

Do you see two types:

“Necessary” Waste“Unnecessary” Waste


TPS – The Roots of “Lean”

TOYOTA TOYOTA PRODUCTION SYSTEM (“TPS”)PRODUCTION SYSTEM (“TPS”)

JUST-IN-TIMEJUST-IN-TIME

- what’s neededwhat’s needed

- when neededwhen needed

- in the quantityin the quantityneededneeded

LEVELINGLEVELING (of overall volume and of mix variation) (of overall volume and of mix variation)

AUTONOMATIONAUTONOMATION(JIDOKA)(JIDOKA)

- autonomousautonomous

- defect-freedefect-free

- detects abnormaldetects abnormalconditionsconditions


Our TPS Tool Box

1-ITEMFLOW

STD.WORK

BASIC6-S

PULLSYS.

SETUPREDUC-TION

BASICQUALITY CHECKS

TPM

TAKT TIME OUT -PUT

LOT-SIZE 1

ZERODEFECTS LEVEL-

ING

LOAD- LOAD

DEFECT-FREE ON-DEMAND

1-BY-1 LOWEST COST

VISUAL MANAGEMENT


Start By Creating Flow Cells 4 key TPS tools:

1-ITEM (1-piece) FLOW STANDARD WORK 6-S PULL SYSTEMS

and (for all tools)... VISUAL MANAGEMENT

1-ITEMFLOW

STD.WORK

BASIC6-S

PULLSYS.

SETUPREDUC-TION

BASICQUALITY CHECKS

TPM

TAKT TIME OUT -PUT

LOT-SIZE 1

ZERODEFECTS LEVEL-

ING

LOAD- LOAD

DEFECT-FREE ON-DEMAND

1-BY-1 LOWEST COST

VISUAL MANAGEMENT


1-Item FlowBATCH FLOW (80% NON-VALUE-ADDING)

R.I. EVENT GOALS: REDUCE WORK-IN-PROCESS 80% INCREASE PRODUCTIVITY 30% REDUCE FLOOR SPACE 50%

STEP 1 STEP 2 STEP 3 STEP 4

I I I

CELL (1-2-3-4)

FLOW CELLS (50% NON-VALUE-ADDING)

1-BY-1NO PILESNO STOPS

DEVELOP CELLS THAT CAN HANDLE 80% OF THE ITEMS

HANDLE THE "DIFFICULT" 20%SOME OTHER WAY

THINK 80 / 20


1-Item Flow


Standard WorkFIRST ESTABLISH 1-ITEM FLOW

TAKT TIME

WORK SEQUENCE

STANDARD WIP

- TIME OBSERVATION SHEET (on file in the cell)

- BAR CHART (1 per cell)

- STANDARD WORK SHEET (1 per cell)

- STANDARD WORK COMBINATION SHEET (1 per person in the cell)

- KEY POINTS SHEET (1 per work station in the cell)

- CAPACITY SHEET (1 per cell)

AVAILABLE TIMECUSTOMER DEMAND

- RIGHT STAFFING LEVEL- REPEATING WORK SEQUENCE AT T/T

- MINIMUM NEEDED FOR FLOW- USUALLY 1 PER AUTO-RUN MACHINE

R.I. EVENT GOALS: INCREASE PRODUCTIVITY 30%


Standard Work


6-SGET RID OF WHAT'S

NOT NEEDED

R.I. EVENT GOALS: IMPROVE AUDIT SCORE BY 20 POINTS

1: SORT OUT

2: STRAIGHTEN

3: SCRUB

4: SAFETY

6: SUSTAIN

5: STANDARDIZE

6-S APPLIES TO ALL AREAS

AUDIT AND IMPROVE

ORGANIZE WHAT IS NEEDED(VISUAL MANAGEMENT)

CLEAN UP(SEE AND SOLVE)

ADDRESS UNSAFE ACTS, CONDITIONS, MOTIONS

ESTABLISH WHO / WHAT / WHEN

FOR UPKEEP

SELF-DISCIPLINEAND CARE


6-S


Pull Systems

SEQUENCE… 20% OF THE UNIT VOLUME COMES FROM 80% OF THE ITEMS

1: UPSTREAMITEMSREADY

FOR… "ITEMS OUT" (pulled by customers)"ITEMS IN" (pulled from suppliers)CONSUMABLES (pulled from suppliers)

2: DOWNSTREAMITEMS

BEING USED4: FLOW

3: TRIGGER(what, where to / from,

when, how many)

THINK 80/20REPLENISH… 80% OF THE UNIT VOLUME COMES FROM 20% OF THE ITEMS

STORE INRESERVEDPLACES

STORE INFIFO LANES

R.I. EVENT GOALS: REDUCE INVENTORY $ BY 50%

BEST: VISUALBETTER: CONTAINERGOOD: CARDS


Pull Systems


Visual Management (supports all tools)

APPLY VISUAL TOOLSVISUAL WIPINDICATORS

STATUSUNITS VS PLAN

ALARMSLOCATIONS

CORRECTIVE ACTION / 6-SIGMA

OWNED BY THE PEOPLE WHO WORK IN THE AREA

SEE

AT-A-GLANCE(5 seconds)

NORMAL

ABNORMAL


Visual Management (supports all tools)


Spaghetti Diagram


Flow Diagram


Production Control Board


Make Good Decisions good decisions become good performance two key management decisions:

HOW MANY PEOPLE DO I NEED? WHO DOES WHAT?

two key skills for production team leaders: SEEING PROBLEMS (VISUAL MANAGEMENT) RESOLVING PROBLEMS


So Where Are We(Let’s Get Started)

3 weeks preparation: topics, teams, targets 5 days of rapid, focused, team action:

DAY 1: STUDY CURRENT CONDITIONS DAY 2: IMPLEMENT MAJOR CHANGES DAY 3: TRY OUT AND DEBUG DAY 4: STANDARD WORK (and redeploy) DAY 5: PRESENTATION (results and recognition)

3 weeks follow-up: all or nothing, solve, sustain


Appendix:

Documenting Standard Work


Standard WorkFIRST ESTABLISH 1-ITEM FLOW

TAKT TIME

WORK SEQUENCE

STANDARD WIP







AVAILABLE TIMECUSTOMER DEMAND

- RIGHT STAFFING LEVEL- REPEATING WORK SEQUENCE AT T/T

- MINIMUM NEEDED FOR FLOW- USUALLY 1 PER AUTO-RUN MACHINE

R.I. EVENT GOALS: INCREASE PRODUCTIVITY 30%


Takt Time Calculation

8 hour shift- 20 min breaks- 10 min c/u450 min

27,000257

105 Sec.

total time available

real demand per shift with backup data

TAKT TIME

convert to seconds for Takt Time calculation

8 hr. shift x 60 min/hr = 480 min(breaks) - 20 min

(clean up) - 10 min450 min

450 min x 60 sec/min = 27,000 sec.


Time Observation Sheet1 per person (or more, as needed)


Bar Chart (Loading Diagram)1 per cell (for each staffing scenario)


Standard Work Sheet1 per cell (for each staffing scenario)


Combination Sheet1 per person (for each staffing scenario)


Key Points Sheet1 or more per work station


Capacity Sheet1 per cell

TAKT TIME: TGT. EXCESS CAPACITY % TOTAL ACTUAL AREAS

Manual Auto-Run Sub-Total Manual Freq. Sub-Total TIME PER EXCESS NEEDING

# Time Time Per Item Time (pcs) Per Item ITEM CAPACITY FOCUS

1 Milling machine 13 18 31 10 10 1 32

(1 sheet per area) TOTALS: TOTALS:

Capacity Sheet

DESCRIPTION

PROCESSING TIME PER ITEM OTHER TIME PER PIECE

BASED ON DEMAND OF PER

SimplerTM


Standard Work Board








Basics of Leanfor Manufacturing

On-Demand, Defect-Free,One-By-One at the Lowest Cost

SBS - Basics of Lean

Documents

Transcript of SBS - Basics of Lean