Engineering
Management
Week 10
Lean Enterprise
Continuous Improvements (Kaizen)
Cycle of an Event
Schedule the
Event
Recognize the Need
Select System /
for Change
2 3 4 Process to Optimize
Our Way of Life
Formalize the
Change
12
Process Owner:
Accepts Change
11
10
6
9
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Better
90's
80's
Large
opportunity
Value
Added
4%
NonValue
Added
96%
NonValue
Added
84%
Value
Added
16%
We can make
this better
but it is not
our focus
VA 18%
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NVA 82%
Total Cost
This is not a
labor reduction
program
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6%
Profit
Old View
Sales
Price
Mfg.
Cost
Sales
Price
Supplier Cost
Increases
New Reality
Sales
Price
Mfg.
Cost
Supplier Cost
Increases
Either way
Mfg. Costs have
to decrease to
maintain or
increase profits
Lay it out
Receiving
WIP
WIP
Form
WIP
OP1 WIP
WIP
WIP
WIP
OP2 WIP
Trim
WIP
Clean
OP4 WIP
Inspection
Store
Clean
Punch
WIP
Inspectio
n
WIP
OP5 WIP
OP3 WIP
Heat Treat
WIP
OP6 WIP
Store
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Raw Material
Drill CBore, Through Hole & Venthole Inspect Move Deburr Venthole Move
Mill Clearance Inspect Move Wash Degrease Move
Carburize Move
Anneal Move Degrease Inspect Move Wash
Hone Stem I.D. Inspect Move Wash Move Store Move
Mill Nut Surface Inspect Move Wash Move
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Measure it
Turn Stem I.D. & O.D. Inspect Move Wash Move Store Move
1. Why?
2. Why?
3. Why?
4.Why?
5.Why?
SUMMARY:
SUMMARY:17
17VALUE
VALUEADDED
ADDEDELEMENTS
ELEMENTS/ / 93
93NON-VALUE
NON-VALUEADDED
ADDEDELEMENTS
ELEMENTS
LEAD
LEADTIME:
TIME:345
345HOURS/23
HOURS/23HOURS
HOURSDAY
DAY==15
15DAYS
DAYS
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SHIPPING
Crosshead Cell
Value Added Summary
PRE -JIT
17
EVENT
1
15
EVENT
2
EVENT
3
NONVALUE
ADDED
93
SQUARE LEAD
FEET % TIME
STAFFING
--
15 Days
19
26
30%
4.5 Days
15
12
21
65%
3.1 Days
13
10
11
75%
1.6 Days
Small change
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VALUE
ADDED
Typical
U.S. Average
Process Time
was 4%
Adding value
RAW
MATERIAL
STORES
CLEANING
TRIMMING
PUNCHING
FORMING
TO
FINISHED
STORES
INSPECTION
CUTTING
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RAW
MATERIALS
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Lean Thinking-Defined
Total Elimination of.
.Waste
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Lean Manufacturing
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As
As Time
Time is
is Compressed,
Compressed,
Quality,
Quality, Productivity
Productivity and
and Cost
Cost
are
are Improved
Improved
Lean Manufacturing
Is a Methodology for the Systematic
Elimination of Waste
Lean
Non-Lean
Rework
7 Types of Waste
Stores
Applies to all
business processes!
Overproduction
Waiting
Transportation
Unnecessary
Processing
Inventory
Unnecessary Motion
Correction
+ A Person
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Waste of Overproduction
THE PRIMARY WASTE
To produce more parts than necessary or at a rate
faster than required.
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Waste Of Correction
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Waste Of Processing
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Waste Of Inventory
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Waste Of Motion
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Waste Of Waiting
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*Visual Controls
*Process Mapping
*5 Whys
*Right Sizing
*Single minute
exchange of die
(SMED)
*Quality at source
*Signal lights
*Curtain
*POU inventory
*Right sizing
*1 part pull
*Time
observations
*Line stop
*% loading
*Autonomation
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5-S Workplace
Organization Steps
1.SORT
2.STRAIGHTEN
3. SHINE
Lean Manufacturing
Involves the precise definition of Normal in such a way that the
Abnormal is exposed in Real-Time and can be eliminated.
The result is a Continuous Improvement Environment
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Based on
Observation:
Normal
vs.
Kaizen
Non Value-Added
Eliminate
Eliminate
Waste
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Value-Added
Abnormal
Dont Forget
It is the not the person doing the work that is ugly. It is the
Waste that is ugly.
We are not stripping people of their dignity.
We are attacking Waste
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Waste
Monster
CLEANING
Fixture
Fixture
PUNCHING
FORMING
Fixture
Fixture
CUTTING
Fixture
Fixture
FINISHED
STORES
RAW
MATERIALS
Fixture
Fixture
PART
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HEAT TREAT
Physical Layout
Supports one piece flow
Supports Standard Work In Process
Supports Standard Work
Supports visual control
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Visual Controls
The
Cards
Green - normal
Yellow - reorder point passed
Red - replenishment past due, contact supplier immediately
Blue - abnormal, investigate - consumption changed, supplier
overshipped
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Need :
Quantity :
Required :
Where :
valve - 636/11
2
10am
700 Cell
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Standard Work
There can be no improvement no Kaizen without the
basis of Standard Work
Not
machine
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S.M.E.D.
A process for dramatically, logically & methodically reducing set
up or changeover time
To enable the significant reduction of lot sizes & the approach
towards single piece flow
Supports mixed model, daily production
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Large machine centers set ups must be done during machine cycle time
Takt Time
From the German word for meter
The time which reflects the rate at which customers buy one unit
We can work
with this
TAKT Time =
It is what it is
T.A.
S.U.
Time Available
Sold Units
Not much you
can do about
this
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5 Whys
Root Cause
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TPM
The lack of TPM results in Breakdowns
Breakdowns are a result of undetected or ignored equipment
deterioration
75% of all equipment deterioration can be detected by a trained
operator
The remaining 25% can be detected by trained maintenance
technicians performing preventative & predictive maintenance
therefore all breakdowns can be prevented
Do a careful analysis of when the machine does not need to be run( lunch
periods,breaks, second shift, weekends, holidays etc.)
75% of all machine downtime is due to dirt and lack of proper lubrication.
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Process Mapping
process steps
sequence
duration
distance
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Mistake Proofing
Mistake proofing goal - Zero defects
Mistake Proofing is a method that uses simple, low cost devices to
check each part at each operation to prevent mistakes from
occurring
1. Built into product design
2. Built into process
3. Automatic check system
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Right Sizing
Only the right amount of resources
equipment
space
work surface
material
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Right Sizing
Buy only the minimum amount of equipment, preferably built in
house
Do not always think that expensive, high performance machines
are always the best, but consider a consistency of the whole
production
First improve operation and afterwards carry out improvement
of equipment, otherwise it might cause the mechanization of
waste.
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Multi-Skilled Workers
The leanest process may require workers to provide effort in a
variety of tasks
Rigid job classifications & definitions are in direct conflict with
teamwork & reduce flexibility to meet customer needs
Multi skilled workers are capable of maximizing teamwork &
performance
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Curtain Operation
A Curtain Operation :
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Curtain Operation
Curtain
Operation
Outbound
The rabbit chase
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Inbound
Supplier Certification
A tool designed to make suppliers take the full responsibility for
the quality of their product, such that incoming inspection by the
purchasing firm may be eliminated
Suppliers with proven track records of excellent performance
are certified & expected to guarantee defect - free products
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Standard Work
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Time Observation
One of the critical tools for documenting reality
One time observation form per operator
Two observers for each operator.
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L210
M110
6
7
Inspect
T420
Quality
Check
Safety
Precaution
Standard Workin-Process
# of Pieces of Std.
Work-in-Process
Raw Material
Finished Product
TAKT
Time
40
Cycle
Time
40
Operator
Number
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3
L310
Date prepared
or revised: 3-5-97
OPERATOR
NUMBER
MODEL NUMBER
AND NAME
WORK
SEQUENCE
STEP
NUMBER
STANDARD WORK
COMBINATION SHEET
Spec. Steel
Fin. Grind O.D.
OPERATION NAME
TIME
Man.
Auto.
Walk
--
--
23
--
--
15
14
38
TOTALS
DATE
PREPARED
1/22/98
QUOTA PER
SHIFT
690
DEPT.
123
TAKT TIME
40
WAITING 22
10
15
20
25
30
TT 45
35
40
50
12
Manual
Automatic
Walking
wwwwww
TT
CT =TT
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Lean Manufacturing
Involves the precise definition of Normal in such a way that the
Abnormal is exposed in Real Time and can be eliminated.
The result is a Continuous Improvement Environment
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waste
Visual
Controls
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Takt Time
Analysis
s
es
oc w
Pr
Flo ing
pp
Ma
Ob T
se ime
St rv
ud ati
ie o n
s
Make It Ugly
The Goal
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Total Elimination of
Waste
The 5s
Right sizing
Cell layout
POU
Time observations
Signal lights
Kanbans
Takt time
Visual controls
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Bad news is
good news
To Lean Implementation
One piece flow
Step One
Step Two
Operators
Maintenance People
Supervisors
ME/IE
Planners
Step Three
Step Four
Takt Time
Cycle Time
Lead Time
Lead Time
Task
1
MOVE
Task
2
WAIT
Task
3
Task
4
Task
5
SET-UP
RUN
Cycle Time
Lead Time
1 Unit / Minute
TAKT Time
WIP
PROCESS
Can a process have a 1 hour TAKT Time and a 6 month Lead Time?
Step Five
10
15
20
4
Add the
Balance of
Units (4 x
1/Unit)
Part 2
The process by which we create future states
Lean Thinking
Value in the Eyes of the Customer
The Value Stream
Flow
Pull of the Customer
Perfection
Value Added
ORDER
CASH
Non-value added
Waiting
Transportation
Non-value added
processing
Excess inventory
Excess motion
Defects
WAITING
OVERPRODUCTION
W astes
PROCESSING
MOTION
TRANSPORTATION
DEFECTS
INVENTORY
What is Flow ?
TRADITIONAL
CONTINUOUS FLOW
Withdrawal KANBAN
product
product
SUPERMARKET
Mike Rother
Learning to See
Takt Time
Takt time paces production to the pace of customer
requirements.
Total daily operating time
Total daily customer requirement
Takt Time =
Operating time =
Customer
Requirement
Takt time
880 units/month
20 days/month
440 mins/day
44 units/day
440
= 44 units/day
= 10 mins/unit
A Value Stream is all the actions, value creating and nonvalue creating, required to bring a product from order to
delivery
Pre-Event Work
Pre-Event Work
Training
Gemba Walk
Value Stream Map-Current State
Develop Ideal State Map
Develop Future State Map (3 months out)
Develop Future State Plan
Management Report Out
Training
2.
Gemba Walk
5.
SupplierSupplier
Monthly Orders
MRP
880
Customer LoopCustomer
Loop
Information
Bi-Monthly
Manufacturing Loop
45 Days
Op 1
1 Day
1
1.6
2 Days
S/U = 0.08 hr
CT = 0.9 min
S/U = 1 hr
CT = 1.6 min
45
Op 2
Op 3
S/U = 0.08 hr
CT = 0.9 min
2
0.9
2 Days
Op 4
S/U = 0
Op 5
1
60
5 Days
S/U = 0.08 hr
CT = 1.2 min
CT = 60 min
2
0.9
1 Day
Op 6
S/U = 1.95 hr
CT = 40.3 min
5
1.2
1 Day
1
40.3
Total = 57 Days
Total = 1 Hr. 44.9 Min.
potential.
What is the high, low and mean ordering pattern? Monthly or quarterly
high & low for several periods
G.M.
AT&T
Cycle Time
(CT)
Lead
Time
Total
DOH Inventory
8 Days
4 Days
4 Hrs
12 Days
(1 Hr.)
4 Hrs
VA Time (yes/no)
CT Total
Mapping Icons
COMPUTER WIP
LEAD TIME
INVENTORY
PRODUCTIVITY
QUALITY
CAPACITY
ActivGOAL/
ActivGOAL/
ity
OPPORTUNITY
ity
OPPORTUNITY
ACTION
ACTION
PRIORITY
PRIORITY
LEADER
LEADER
The electrical
The electrical
station is located
station is located
1 Test
1 Test away from the
away from the
test area.
test area.
Re-locate
Re-locate
electrical station
electrical station Short Term
Short Term
closer to test
closer to test
area.
area.
TEAM
TEAM
Only three
Only three
technicians are
technicians are
2 Assy
2 Assy certified
certified
solderers.
solderers.
Joe
Joe
Review kitting
Review kitting
process
process
Long Term
Long Term
John
John
OPEN
OPEN
DATE
DATE
EST
EST
COMP
COMP
1/5/2005 1/10/2005
1/5/2005 1/10/2005
ACT
ACT
COMP
COMP
STATUS/REMARKS
STATUS/REMARKS
4 MORE TECHNICIANS
1/5/2005 4/30/2005 3/18/2005 4 MORE TECHNICIANS
1/5/2005 4/30/2005 3/18/2005HAVE BEEN TRAINED
HAVE BEEN TRAINED
1/5/2005 3/15/2005
1/5/2005 3/15/2005
Questions? Comments?