Lean Manufacturing

Professor Deborah Nightingale

September 26, 2005

Content
General lean concepts in factory design

Manufacturing Video
Manufacturing System Design Framework
Conclusions

Source: Tom Shields, Lean Aerospace Initiative

ESD.61J / 16.852J: Integrating the Lean Enterprise

Deborah Nightingale, 2005 Massachusetts Institute of Technology

Page 2

Lean from the Toyota Production

System Shows How It All Relates
TPS
Cost control through the
elimination of waste

J
I
T

Standardized
Work

Right Qty
Right Mix
Right Time

J
I
D
O
K
A

Leveled & Balanced

Production

Perfect
Quality

Kaizen

Engaged and Creative Workforce

ESD.61J / 16.852J: Integrating the Lean Enterprise

Deborah Nightingale, 2005 Massachusetts Institute of Technology

Page 3

Aerospace Factory Designs

Have Many Things to Consider
Inputs
Production volume

Outputs

Product mix

Cost

Product design
Frequency of changes
Complexity

Quality
Factory
Design

Performance
Delivery

Process capability

Flexibility

Type of organization

Innovativeness

Worker skill/knowledge

ESD.61J / 16.852J: Integrating the Lean Enterprise

Focus
Here

Deborah Nightingale, 2005 Massachusetts Institute of Technology

Page 4

Benefits from a Focus on Process

Rather Than Operation Improvements
Operations

Value adding
Transportation
Delay (2 types)
Inspection

Factory Design

O
p
e
r
a
t
i
o
n

Layout choices
Operation policies
Process Technology
Tapping human
knowledge

Part B

Part A

Store in
Move to
Warehouse Staging

Store at
Staging

Move By
AGV

Machine

Factory Design
Types of Operations
Storage
Value Adding

I Inspection
X Transport

ESD.61J / 16.852J: Integrating the Lean Enterprise

Deborah Nightingale, 2005 Massachusetts Institute of Technology

Page 5

Traditional Manufacturing
Receiving,
Incoming Inspection,
and Shipping

Injection Molding Center

1
D

12

Heat
Treat

11

MC

L5

Machining
Center

Final
Assembly
Center

MC

13

Inspection and
Test Center

10
7

9
Component Subassembly

The material flow could take up to millions of different paths,

creating waste of transportation and waiting at virtually every step.
ESD.61J / 16.852J: Integrating the Lean Enterprise

Deborah Nightingale, 2005 Massachusetts Institute of Technology

Page 6

Cellular Manufacturing
Receiving,
Incoming Inspection,
and Shipping

Injection Molding Center

MC

MC

M
G

M
G
D

M
D

G
D

Heat
Treat

Work Flow

Rather than route the materials required through the entire plant, materials flow
to the head of each work cell, through each process in the cell, then to final
assembly. This eliminates most of the transportation and waiting we would see
in the traditional approach.
ESD.61J / 16.852J: Integrating the Lean Enterprise

Deborah Nightingale, 2005 Massachusetts Institute of Technology

Page 7

Only Understood Processes

Can Be Improved
Establish models and/or simulations to permit understanding
Ensure process capability & maturation
Maintain challenge of existing processes

Tools
Five Whys
Process flow charts
Value stream mapping
Statistical tools
Data collection and discipline
ESD.61J / 16.852J: Integrating the Lean Enterprise

Deborah Nightingale, 2005 Massachusetts Institute of Technology

Page 8

Definite Boundaries Exist

Between Flow and Pull
Flow

Pull

MRP used for planning

and control

Takt time

Group technology
Reduce the number of
flow paths
Batch or single items
Inventory to buffer flow
Process control
Minimize space & distance
traveled with contiguous
processing established
ESD.61J / 16.852J: Integrating the Lean Enterprise

Balanced production
Level production
Response time less than
lead time
Standard work
Single item flow
Correct problems
immediately - STOP if
necessary

Deborah Nightingale, 2005 Massachusetts Institute of Technology

Page 9

Lean Tools Can Apply even if

JIT System Not Logical
Value stream mapping
Work groups to implement
change
Visual displays and
controls
Error proofing
Standardized work
Quick changeover
Total productive
maintenance
Rapid problem solving
Self inspection

Source: J. Miltonburg, Manufacturing Strategy 1995, p31.

Five Ss
ESD.61J / 16.852J: Integrating the Lean Enterprise

Deborah Nightingale, 2005 Massachusetts Institute of Technology

Page 10

Content
General lean concepts in factory design

Manufacturing Video
Manufacturing System Design Framework
Conclusions

Source: Tom Shields, Lean Aerospace Initiative

ESD.61J / 16.852J: Integrating the Lean Enterprise

Deborah Nightingale, 2005 Massachusetts Institute of Technology

Page 11

Production Operations Transition-To-Lean Roadmap

Supply Chain/External Environment

Legal
Environmental

Government Reqd. Systems

(MMAS, EVMS, etc.)

Enterprise / Production System Interface

Procurement
Engineering

Financial
Information

Quality
Safety

Training and Human Resources

Workforce/Management Partnership

Phase 0

Phase 1

Phase 2

Phase 3

Phase 4

Phase 5

Phase 6

Adopt Lean
Paradigm

Prepare

Define
Value

Identify
Value Stream

Design
Production System

Implement Flow

Implement Total
System Pull

Build vision
Build vision
Establish need
Establish need
Foster lean
Foster lean
learning
learning
Make the
Make the
commitment
commitment
Obtain Sr.
Obtain Sr.
Mgmt. buy-in
Mgmt. buy-in

Integrate with
Integrate with
Enterprise Level
Enterprise Level
Establish an
Top
Lean
Establish an
Operations
Leadership
Roadmap
Operations
Lean
Lean
Implementation
Implementation
Commitment Team(s)
Team(s)
Develop
Develop
implementation
implementation
strategy
strategy
Develop a plan
Develop a plan
to address
to address
workforce
workforce
changes
changes
Address Site
Address Site
Specific Cultural
Specific Cultural
Issues
Issues
Train key
Train key
people
people
Establish target
Establish target
objectives
objectives
(metrics)
(metrics)

Select initial
Select initial
implementation
implementation
scope
scope
Define
Define
customer
customer
Define value Define value Quality,
Quality,
Schedule, and
Schedule, and
Target Cost
Target Cost

Record current
Record current
state value
state value
stream
stream
Chart product
Chart product
and
and
information
information
flow
flow
Chart operator
Chart operator
movement
movement
Chart tool
Chart tool
movement
movement
Collect
Collect
baseline data
baseline data

Develop a future
Develop a future
state value
state value
stream map
stream map
Identify takt time
Identify takt time
requirements
requirements
Review
Review
make/buy
make/buy
decisions
decisions
Plan new layout
Plan new layout
Integrate
Integrate
suppliers
suppliers
Design visual
Design visual
control system
control system
Estimate and
Estimate and
justify costs
justify costs
Plan TPM
Plan TPM
system
system

+
+

Standardize
Standardize
operations
operations
Mistake proof
Mistake proof
processes
processes
Achieve process
Achieve process
control
control
Implement TPM
Implement TPM
Implement self Implement selfinspection
inspection
Eliminate/
Eliminate/
reduce waste
reduce waste
Cross train
Cross train
workforce
workforce
Reduce set-up
Reduce set-up
times
times
Implement cell
Implement cell
layout
layout
Implement visual
Implement visual
controls
controls

+
+

Phase 7

Select
Select
appropriate
appropriate
production
production
system control
system control
mechanism
mechanism
Strive for single
Strive for single
item flow
item flow
Level and
Level and
balance
balance
production flow
production flow
Link with
Link with
suppliers
suppliers
Draw down
Draw down
inventories
inventories
Reassign people
Reassign people
Re-deploy/
Re-deploy/
dispose assets
dispose assets

Strive for Perfection

Expand
Internally/Externally

Team development
Optimize quality

Institutionalize 5S
Institute Kaizen events
Remove system barriers

Expand TPM
Evaluate against
target metrics

Evaluate progress
using lean maturity
matrices

ENTRY
2000 Massachusetts Institute of Techn

ology

IMPROVED
COMPETITIVE
POSITION
6/5/00

Content
General lean concepts in factory design

Manufacturing Video
Manufacturing System Design Framework
Conclusions

Source: Tom Shields, Lean Aerospace Initiative

ESD.61J / 16.852J: Integrating the Lean Enterprise

Deborah Nightingale, 2005 Massachusetts Institute of Technology

Page 13

Background

Matured aerospace industry

Industrial innovation theory

Implications on the aerospace industry

ESD.61J / 16.852J: Integrating the Lean Enterprise

Deborah Nightingale, 2005 Massachusetts Institute of Technology

Page 14

Matured Aerospace Industry

Customers
demanding specific
capabilities
Cost and
affordability more
prominent
Innovation
characteristics
have changed
ESD.61J / 16.852J: Integrating the Lean Enterprise

Deborah Nightingale, 2005 Massachusetts Institute of Technology

Page 15

Utterbacks Dynamics of
Innovation Model
Rate of product
innovation highest
during formative years
As product matures rate
of process innovation
overcomes product
innovation
Very mature products
have low levels of both
product & process
innovations

Source: William Abernathy & James Utterback, 1978

ESD.61J / 16.852J: Integrating the Lean Enterprise

Deborah Nightingale, 2005 Massachusetts Institute of Technology

Page 16

Theory in Application
Utterbach's Dynamics of Innovation

Number of Firms

Emergence of the
Dominant Design
Fluid Phase:
Rapid technology
innovation,
many firms
founded

Transition Phase:
Shakeout, competition
shifts to process
Specific Phase:
Stable, small number of firms
competition shifts to price

Destabilizing changes in technology

or process can destroy industry!

Time
Source: Data (cars), from Entry and Exit of Firms in the U.S. Auto Industry: 1894-1992. National Academy of Science: theory concepts from
Utterback, Dynamics of Innovation, 1994
ESD.61J / 16.852J: Integrating the Lean Enterprise

Deborah Nightingale, 2005 Massachusetts Institute of Technology

Page 17

Dominant Design?
1958

1995

ESD.61J / 16.852J: Integrating the Lean Enterprise

Deborah Nightingale, 2005 Massachusetts Institute of Technology

Page 18

Dominant Design?
1953

1972

2002

ESD.61J / 16.852J: Integrating the Lean Enterprise

Deborah Nightingale, 2005 Massachusetts Institute of Technology

Page 19

Extension of Theory to the

Aerospace Industry
Industrial evolution and the emergence
of the dominant design
50

35

80

40

Cars: enclosed
steel body

Typewriters:
Open, moving carriage

Aeronautics:
Jet transport and
jet fighter-bomber

30

60

20

40

1860

10
Natural
progression?

1880

1900

Source: Murman, et al., Lean Enterprise Value, 2002

ESD.61J / 16.852J: Integrating the Lean Enterprise

20
15

20

10

Number of major
automobile companies

Number of major
typewriter companies

30

Government intervention
motivated by cold war

1920

1940

1960

1980

5
0
2000

Year
Deborah Nightingale, 2005 Massachusetts Institute of Technology

Page 20

Number of major U.S.

Aerospace companies

25

Implications for the Aerospace

Industry
Producibility and cost are more competitive factors

Manufacturing inputs should carry more weight

Emphasis should be on process innovation
Firm core competencies must match industrial maturity

Manufacturing strategy cannot be stepchild to platform

strategy

Result:
Result: Heritage
Heritage equipment,
equipment, facilities
facilities and
and
mindsets
mindsets drive
drive manufacturing
manufacturing system
system design
design
ESD.61J / 16.852J: Integrating the Lean Enterprise

Deborah Nightingale, 2005 Massachusetts Institute of Technology

Page 21

Proposal
AAholistic
holisticmanufacturing
manufacturingsystem
systemdesign
designframework
framework
l
to
toensure
ensure process
processconsiderations
considerationsare
are integra
integral
to
tothe
the product
productdevelopment
developmentprocess
process
Characteristics
Uses principles of systems engineering
Visual depiction of design beyond factory floor ideas
Manufacturing as part of the product strategy
Manufacturing system design is strategy driven, not product
design driven
Combines multiple useful tools
Provides insights into order and interactions
ESD.61J / 16.852J: Integrating the Lean Enterprise

Deborah Nightingale, 2005 Massachusetts Institute of Technology

Page 22

Manufacturing System Design

Manufacturing system infrastructure design

Manufacturing strategy
Operating policy
Partnerships (suppliers)
Organization structure details

Manufacturing system structure design

Buildings, location, capacity

Machine selection
Layout
WIP

ESD.61J / 16.852J: Integrating the Lean Enterprise

Deborah Nightingale, 2005 Massachusetts Institute of Technology

Page 23

Stakeholders
Society
Suppliers Customers

Employees Stockholders Mgmt

Govt.
Manufacturing System Design

Corporate Level(Corporate Strategy)

[Seek approval]

[Interpret]
(Business Strategy)

Business Unit

Product Strategy
Product Design

Manufacturing

Marketing

Requirements/Considerations/Constraints

Optimizing
Manufacturing System Design/Selecti
on

Implement (pilot)

Evaluate/Validate

Modifications

Suppliers

Stakeholders

Manufacturing System Design

Corporate Level

[Seek approval]

[Interpret]

Business Unit
Product Strategy
Product Design
DFMA, IPT

Risk-sharing Partnerships

Manufacturing
Customer Needs

3-DCE
Concurrent Engineering

Technical Feasibility
Feasible performance guarantees

- Miltenburg, - 3P, - 2D plots,

Requirements/Considerations/Constraints
- MSDD - AMSDD - design Kaizen

- Analytical Tools,
- Simulation Tools

Manufacturing System Design/Selection

Fine Tune

Implement (pilot)

Modifications

Suppliers
Marketing
Make/Buy

VSM
Kaizen
Trial & Error
Kaikaku

Finalized Product Design

Evaluate/Validate

Insights from the Framework

Linkage of strategy and manufacturing
system design
Three important characteristics

Phase presence
Phase timing
Breadth across functions
Following
Followingthe
the framework
framework process
processwill
willresult
resultin
inthe
the
development
developmentof
ofeffective
effective manufacturing
manufacturingsystem
systemthat
that
meets
meetsthe
the goals
goalsof
ofthe
the corporation
corporation(Vaughn
(Vaughn&&Shields)
Shields)
ESD.61J / 16.852J: Integrating the Lean Enterprise

Deborah Nightingale, 2005 Massachusetts Institute of Technology

Page 26

Conclusions
Competitive advantage from manufacturing
excellence (enterprise strategy)
Performance more closely related to how
system designed (not production volume)
Manufacturing as a true participating partner

with the other functions (coequal status)

ESD.61J / 16.852J: Integrating the Lean Enterprise

Deborah Nightingale, 2005 Massachusetts Institute of Technology

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