Kaizen
- 1. Presentation on Lean Manufacturing Mfg. Eras & Definition Waste & Lean mind set in Organization Fundamentals of Lean mfg.. System Implementation Comparison with 6sigma & Lean mfg. Results
- 2. Eras in Manufacturing • Craft production – has existed for centuries • Mass production – developed after World War I by Henry Ford and General Motors’ Alfred Sloan – Based on principles of Scientific Management • Lean production – developed in Japan after World War II – pioneered by Eiji Toyoda and Taiichi Ohno of Toyota
- 3. Comparison large product varietyhigh productivity and low cost low productivity, and high cost high productivity and low cost standardized productsunique, individualized, custom made products highly flexible machines expensive, single purpose machines simple, flexible tools teams of multiskilled workers unskilled or semiskilled workers highly skilled workers or artisans LeanMassCraft
- 4. Why Lean or 6 Sigma? Business generally hold competitive advantages over their competitors for one of two reasons: 1.Unique Products:Having Superior product to their competition,often in the form of technological capabilities or niche marketing. 2.Low Cost Products:Having a superior process to their competition,often in the form of internal efficiencies or low cost production.
- 5. Lean Manufacturing a “brief history at Toyota” •Manufacturer of trucks and small automobiles in Post-WWII Japan •A”need” was declared by Toyota’s President to discover a new production method that would eliminate waste and help Toyota catch up with foreign competitors. •Chief engineers studied writings of Henry ford,then visited Ford plants extensively in the 1950’s -begins the”war on waste” •IMVP study in 1980’s early identified”Lean Manufacturing” •1984,Toyota becomes a North American manufacturer with joint venture at NUMMI plant in California.Stellar Results •1990’s and Beyond,Lean Production Strategies adopted in numerous Industries •All other Car manufacturers have adopted Lean principles!
- 6. Organizations works on Lean •Boeing •BMW •Carrier •Caterpillar •Chrysler •Coca cola •Dell •Delhi •Ford* •General Motors* •US Navy* •Pepsi,co * =both lean and 6sigma
- 7. Lean Production • There are many popular manufacturing buzz words these days, including – Just in time – Continuous improvement – Concurrent engineering – Flexible manufacturing – Total quality management – Statistical process control • These are all integral parts of lean production
- 8. What is Lean Manufacturing? It is a Strategy to achieve significant, Continuous Improvement in Performance through the elimination of all waste of time and resources in the total Business Process
- 9. Seven types of wastes • Processing itself • Delay & Waiting • Over Production • Motion • Transportation • Inventory • Scrap & Rework Waste&Lean mind set in Organization
- 10. Developing the Lean Mind sets Cost added 70% Value added 30% 30% 70% 30% 10% 0% 20% 40% 60% 80% 100% Before After Value added Cost added
- 11. 3-Step Rules to eliminate Waste Total 90% reduction Step-I 50% reduction Step-II 2nd 50% reduction 10% of Original Waste Throughout the Improvement process,a company must avoid settling for superficial solutions to cut waste
- 12. Fundamentals in Lean Manufacturing • Technology Management • People Management • Systems Management Fundamentals of Lean mfg..
- 13. Technology Management • Structured flow manufacturing • Small lot size production • Setup Reduction • Fitness for use
- 14. • Ideally a lot size of one or at the very least,equal to customer’s order. • Measured as time(and cost)from the last good piece of the previous job or run to the first good piece of the new job to run. • Short set up enables greater production feasibility,less inventory & more capacity. Category Scope • Each next step in the total business throughput process is the previous step’s customer • One work center must meet the needs or requirements of the next work centers precisely Structured flow manufacturing • In functional manufacturing the ration of Work to Motion is low because the products usually required a lot of transportation and other movements during the manufacturing cycle. Small lot Production Setup reduction Fitness For use Technology Management
- 15. People Management • Total employee Involvement • Control through Visibility • Housekeeping • Total quality focus
- 16. • When a problem occurs, so fast & how effective the decisive action can be taken • Visibility is used as a effective Communication media • A place for everything and everything in it’s place • Eliminate potential confusion,promote a safer environment and reduction of waste of time,motion and resources Category Scope • Focus requires conformance to standards • Quality of the product indicates the quality of the Process.If there are problems in the product quality,there are unacceptable variations in the manufacturing or Business process • Focus encompasses the entire product chain from supplier to customer Employee Involvement • Improvement through small group improvement activities • Trigger the Empowerment Control through visibility House keeping focus Total quality Focus People Management
- 17. System Management • Level load & Balanced flow • M/c maintenance(JH) • Supplier Partnerships • Pull system
- 18. • High level operating performance with in the requiredtolerances • Eliminate equipment as a source of process defect • “Partner” implied long-term & stable relation ship with vendor • Focus on reducing costs for everyone through shared quality goals,design responsibility,delivery in total cost perspective Category Scope • Materials to be pulled when they are needed. • Keeping the time of producing parts as close as possible to to the time when parts are used • Need more attention in “week link” Level load and Balanced flow • Creates effective utilization of manufacturing resources • Level load is scheduling products to be manufactured in equal quantities during a given period of time • Balanced flow -Continuous flow by effective application of mfg. resources Preventive Maintenance(now tbm/cbm & TPM way) Supplier partnership Pull system System Management
- 19. Major Targets…. • Absenteeism <1% • More Multiskill • Quick Adaptation for new methods • More Reliability • Flexibility • Zero breakdown Man Machine • No rejection Material Method • Visibility/Transparent • Standard Operating Procedures(3s..)
- 20. Steps Scope Steps in Lean Manufacturing • Layout change & Kanban for information & material flow • Line Balancing,(Machine) & Operator Balancing • Improve MTBF,Reduce MTTR & Reduce spare part consumption- (TPM Implementation-Autonomous maintenance) Value Stream Mapping • Study and plot a map of Material,information flow ,Manpower inventory,cycle time,setup time etc. Create flow Balance to takt time Stabilize the Production line Levelled Production • Match the Customer demand by uniform production rate Zero Defect • Defect free to customer Process Improve the flow • Paced withdrawal and Spider man Concept Implementation
- 21. What is Value Stream map? Value stream mapping is a tool that helps you ‘to see and understand’ the flow of material and information as a product makes its way through the value stream
- 22. Value Stream Map-Over view • Site Layout • Internal/External logistics • Partners Value stream • Plant level”door to door” • Process layout-Area layout/Cell design • Internal/External logistics • Kaizen (Flow-value stream improvement Vs Process-Elimination of Waste) • Production scheduling according to demand Macro Vs Micro Macro Micro
- 23. Value Stream Map-Objective • Lead time Reduction • Inventory turn Increases • Speed to Marketing • Waste Elimination • Continuous Improvement Macro Vs Micro Macro(Business Strategy) Micro(Site/Operations)
- 24. CURRENT STATE MAP Supplier Marketing Month/ weekly /daily plan Customer I I Takt time 54 Sec 1 X daily Daily Req. 600 Nos. 1 X Daily / weekly Material gate pass DeliveryAdvice Process Ratio MRP/EPO C/T - Cycle Time C/O - Change Over Time 1 Day = 0.6 % Production Lead Time Value added Time = 780 129600 1 Inwarding inspection Uptime = 100% C/T = 300s C/O = 0 6(Shared) Packing & Shipping 2 (shared) Raw Material Stores Kitting Uptime = 100% C/T = 60s C/O = 0 Uptime = 100% C/T = 60 s C/O = 0 Order Plan Uptime = 100% C/T = 360 s C/O = 0 1 1 Day Prod. Lead time Processing time 300 s 60 s 60 s 360s Step 1 Value stream mapping Production DailyPlan 3 Days 3 Days Process ratio - 0.6% I 6 Days 6 Days
- 25. Spiderman Supplier Month/ weekly /daily plan Customer I Takt time 54 Sec 1 X daily Daily Req. 600 Nos. 1 X Daily Material gate pass Process Ratio C/T - Cycle Time C/O - Change Over Time 1 Day = 2.36 % Production Lead Time Value added Time = 765 32400 1 Inwarding inspection Uptime = 100% C/T = 300s C/O = 0 6 Finished goods Shipping 2 Stores Kitting Uptime = 100% C/T = 45s C/O = 0 Uptime = 100% C/T = 60 s C/O = 0 Order Plan Uptime = 100% C/T = 360 s C/O = 0 Prod. Lead time Processing time 300 s 60 s 45 s 360s 1 Container size reduction Online Packing Kanban Operation FUTURE STATE MAPStep 1 Value stream mapping •(shared) •(shared) DeliveryAdvice Re Design Work Table Marketing MRP/EPO Production DailyPlan 1 Day Process ratio - 2.36% I 6 Days 6 Days
- 26. What is Super Market? Super market is a place where material is available for the customer, based on their requirement. From the point of view of a customer, the Super Market -style purchase ensures that there is not going to be an excess purchase, customer goes out to buy what is needed and when it is needed
- 27. Super Market Pull System "ordering" KANBAN "withdrawal" KANBAN CUSTOMER PROCESS Customer process goes to supermarket and withdraws what it needs when it needs it. SUPPLYING PROCESS Supplying process to replenish what was withdrawn. PURPOSE Controls Ordering at suplying process without trying to schedule. "ordering" KANBAN It Triggers Ordering of Materials. "withdrawal" KANBAN It is a shoping list that instructs the Material handler to get and transfer materials. RM-supermarket Material Material A B Supplying process Customer process
- 28. Introduce kanban for Supplier parts Supplier plant store Monthly schedule from F Before After Supplier plant Super market SPARES KANBAN
- 29. Example of FIFO System Part no Kanban cards FIFO Lane# Withdrawal kanban RM Description Supermarket Down stream process Up stream process # FIFO Lane
- 30. Operator Balance Chart - Example Step 3 & 4
- 31. An Example of Paced Withdrawal & Ordering Drop kanban at process center-1 Drop kanban at process center-2 kanban withdrawal Material Requirement Drop kanban at process center-3 ordering kanban PACEMAKER PROCESS "RM" supermarket (repeat the cycle every pitch) Vendor ordering RM 2 3 1 4 Pull System
- 32. What is Pace setting? Pace setting is based on the Cycle time of the process center which is directly having impact on Customer Requirement. Pitch has to be set according to the takt time (available work time/customer requirement) and quantity need to transfer,by multiplying both.
- 33. Why Pace setting? To distribute the materials evenly over time at the pacemaker process, pace setting to be followed by Spider man..
- 34. Who is Spider Man? The person from subsequent Process who is Pulling material from supermarket when he needs, is Known as Spider man. He should come in a Paced manner in order to have load-smoothing system of production. It will eliminate the peaks and Valleys in the work load to avoid excess production and excessive progression in a particular process. This system is increasingly easier in change the production plan.
- 35. Lean & 6Sigma - a comparison Goal: 6 sigma = Reduce Variation •Understand customer requirement(QFD) •Focus on critical to quality variables Lean=Remove waste •Understand what customer sees as “value”(QFD) •Eliminate everything that does not add value
- 36. Lean & 6Sigma - a comparison Focus 6 sigma = Problem focused •Variation is a problem that can be addressed •Find the sources with the Largest economic impact Lean=Flow focused •The constant “start and stop” of product results in costs that cannot be passed on to the customer •Find the barriers to flow(Work flow Vs Work forced to flow)
- 37. Lean & 6Sigma - a comparison Primary Benefit 6 sigma = Uniform Process output •Predictable,dependable processes are always less expensive to operate(less scrap,rework) •Most companies grossly underestimate their COPQ Lean=Reduced flow time •Improving flow will always reduce manufacturing cost(Ford,1926)
- 38. Lean & 6’Sigma - a comparison Secondary Benefit 6 sigma •Less Waste •Faster throughput •Improved quality •Less Inventory Lean •Less Variation •Uniform output •Improved quality •Less Inventory
- 39. How 6’Sigma helps Lean?! Lean •Waste elimination •Flow •At the pull of the Customer •Continuous improvement Six sigma •Variation reduction •Scrap / rework elimination •Process control •Continuous improvement Speed + Accuracy =Performance •Lean exposes NVA/VA and makes value added flow •6’Sigma reduces Variation of value added
- 40. Differences-Lean & 6 Sigma •Lean is long term - there is no done •Lean is enterprise wide - it will ultimately involve all employees,as well as supplier and customers •6’Sigma Project focused,projects usually last 3-6 months •6’Sigma Promoted Product reliability,Lean promotes Organizational reliability.