Lean DL Arsene
- 1. Agenda • Who am I? • Batch Production vs. Lean Thinking • Principles of Lean Thinking • Benefits of Lean • Lean Manufacturing Techniques
- 2. Dumitru Lucian Arsene • Manager with 12 years experience in Production management, Strategic Planning and Lean Manufacturing implementation. • Successfully completed over 20 continuous improvements projects to increase productivity, reduce lead times, improve on-time delivery, reduce inventory, increase inventory turns, improve stock accuracy, eliminate wastes and fluctuation, exceed customer expectations. Professional Background Pullmaster Winch Plant Supervisor 09/07 – 05/09 Teleflex Canada Production Supervisor 01/02 – 09/07 Promoted from Operator Leoni Wiring Systems Plant Manager 01/00 – 11/01 Solectron Production Manager 06/98 – 01/00 Promoted from Production Supervisor Omnitex Production Supervisor 08/94 – 06/98 Mechanical engineer
- 3. Lean Achievements • Increased on-time delivery from 40% to 90% at Pullmaster; • Reduced manufacturing lead-time from 4-6 weeks to 3-5 days, converting functional departments in work cells, at Pullmaster; • Increased inventory turnover from 5.5 to 10.2, reducing raw inventory from $3 million to 1.6 million at Pullmaster; • Improved stock accuracy from 60% to 90% at Teleflex and Leoni using Kanban and perpetual inventory stock; • Implemented 5S in Work cells: Pullmaster, Teleflex Canada, Leoni; • Reduced manpower required to operate work cells by 30% at Pullmaster and Teleflex Canada, by 15-20%: Leoni and Solectron; • Reduced WIP by 80% at Pullmaster, 50% to 70% at Teleflex by implementing small lots and one piece flow; • Improved efficiency by 25% at Leoni and Pullmaster using SMED and Group Technology and 20-30% at Teleflex using line balancing and Standardized work; • Reduced quality defects from 50,000 ppm to 300-4,000 ppm at Pullmaster, Teleflex, Leoni and Solectron using autonomation.
- 4. Lean Thinking and Manufacturing Process Improvement Understanding the Problems, Fixing the Processes, and Using Your People to Make it stick
- 5. Batch Manufacture • Machine Utilisation Improved – Increasing the batch quantity produces the most effective use of the machine between changeovers • Improved Quality – Small well defined tasks allow lower skilled operators to produce quality parts Best and most efficient use of people and machines;
- 6. Basic Characteristics of Batch Production • Production lot sizes as big as possible • Layout according to Machine type • Long changeover times • Holding safety inventory for production problems • Detailed work division • Single-skilled workers • Control based quality • Management based on central planning • Production planning based on sales forecasts • Point efficiencies • Priority of capacity utilization
- 7. Mass Production Process 1 A B B B B B B B Process 2 A+B WITH SMALLER LOTS Process 1 A B A B A B A B Process 2 A+B A+B A+B A+B
- 8. Problems With Batch Production • Long delivery times • Weakness in responding to customer demands • Increase in inventories • Decrease in quality • Increase in non value adding activities • Work becoming more complex everyday • Increasing hierarchy and bureaucracy • Additional costs • Difficulty in adapting to variations • Long term planning necessity • More capital reqirement
- 9. Lean Thinking • Focus change – Lean Thinking is an approach that aims to get rid of all the wastes (fats) that bring a burden to the system. – From machine and people utilisation to performing Value Adding operations, – Value adding: any operation that changes the component, as that is what the customer pays for. The components spend more of their time having value added
- 10. One Piece Flow Batch and Push Manufacturing All processes are 1 minute, 3 consecutive processes and lot size ( batch ) of 10 B B B BB B BB B C C C C Process A: 10 minutes Process B: 10 minutes Process C: 10 minutes Lead Time : for the whole lot 30 ++ minutes Continous Flow “produce one, B C Lead Time: 12 minutes deliver one” 3 min. 12 min.
- 11. Which is best? Run factories, not machines • The aim of factories is not to ensure all machines and people are constantly working • The aim of factories is to produce components in the most efficient manner, and this achieved by spending the least time performing non-value adding activities.
- 12. The GOAL • As competition increases getting Lean is compulsory • Producing only the products demanded by the customer • At the exact time the customer demands • By consuming less resources • And focusing on the activities that create value for the customer
- 13. Basic Principle of Lean Thinking Value is : Product and/or service with definite specifications, for which the customer is ready to pay for, and that meets the customer’s requirements in a given period of time, with a definite price. Value is created by the producer and can only be defined by the customer.
- 14. Value and WasteValue adding work Waste ( Muda ) • 3 Types of Activities Unavoidable waste in a Value Stream: ( Incidental work ) • Value Adding – Transformation of raw material to product according to the customers’ demands DECREASE • Necessary Non-Value Adding – Die change, adjustment, get/drop tool • Non-Value Adding ELIMINATE – waiting, counting, sorting, defect, rework
- 15. Wastes • Overproduction • Defects in product • Inventories • Unnecessary motion of people • Excessive transportation of material • Waiting people, machines and products • Inappropriate processing • Inappropriate use of people
- 16. WASTES 1. WASTE OF 2. WASTE OF A DEFECT OVERPRODUCTION • This type of waste occurs when a This waste is caused by producing more product does not conform to product than the customer wants to proper specifications. This can buy. result in rework or scrap. Primary Cause Primary Cause • Inadequate error-proofing and • Batch production quality checks • Building to a forecast (scheduled • Poor instructions and training production) • Poor communication between customer and manufacturer • Traditional productivity • Lack of standard work measurements • Inadequate supplier quality • Need for adjustments • Long set-up times
- 17. WASTES 3. WASTE OF INVENTORY 4. WASTE OF MOTION • This is waste caused by non-value • This type of waste leads to waste added movement of people and of materials, parts, and machines. assembled goods. Primary Causes Primary Causes • Batch production method • Inefficient flow design • Long set-up times • Lack of continuous flow of • Inefficient procedures product and people • Push production system • Lack of standardized work practices • Unnecessary product flow • Bottlenecks
- 18. WASTES 5. WASTE OF 6. WASTE OF WAITING TRANSPORTATION • This type of waste results from • This type of waste results from the unnecessary delay of the unnecessary movement of processing material or product. material or product. Primary Causes Primary Causes • Lack of continuous flow • Inefficient facility layout • Non-value added operations • Lack of continuous flow • Long set-up times • Non-value added operations • Production runs too long • Batch mentality • Poor scheduling
- 19. WASTES 7. WASTE OF 8. WASTE OF A PERSON OVERPROCESSING • This waste is caused whenever a • This is waste caused by person engages in any of the previous unnecessary processes and wastes. operations. • Primary Causes Primary Cause • Use expensive high precision equipment where simpler tools • Lack of effective relationships or would be sufficient. communication between employees, • Lack of attention to changes in what is needed supervisors and managers • Not properly identifying customer • Lack of employee education, needs awareness and involvement • Variations due to lack of standard work and due to variations in types of products produced
- 20. Examples of Waste • Watching a machine run • Waiting for parts • Counting parts • Producing parts that aren’t needed • Moving parts over long distances • Storing inventory • Looking for tools or parts • Machine breakdown • Rework and scrap • Products that don’t meet the needs of customers
- 21. The Causes of Waste • Insufficient working methods • Long changeovers • Insufficient processes • Lack of training • Insufficient maintenance • Long distances • Lack of leadership
- 22. Value Stream Represents the 3 critical management tasks a specific product ( goods and / or services ) should pass through : • Problem Solving : Starting with concept, continuing with detailed design and engineering and ending with the launch of production • Information Management : Starting with order, continuing with detailed scheduling and ending with delivery to the customer • Physical Transformation : Starting with raw material, continuing with production and ending with the realization of the final product.
- 23. Model R&D Planning Production Distribution Sales R&D Planning Production Distribution Sales Lead Time
- 24. In Plant Value Stream PLANLAMA PLANNING Sipariş ORDER Sipariş ORDER TEDARİKÇİ emri emri MÜŞTERİ MRP SUPPLIER CUSTOMER Production programme PROSES PROCESS PROSES PROCESS PROSES PROCESS 1 1 1 minutes weeks
- 25. The GOAL design production delivery Lead Time Value Adding Activity Waste (Muda) To Decrease Lead time To Increase Value Added Time %
- 26. The GOAL When we decrease the lead time by eliminating wastes: • Financial gains by freeing up resources • Producing according to real demand instead of forecasts • Providing customer satisfaction • Providing traceability of quality • Reducing unnecessary part inventories • Reducing the risk of being outdated • Reducing fluctuation due to promotions
- 27. Manufacturing Lead time A typical manufacturing company Time 99 % 1% Improvement results with traditional methods Time 99.5 % 0.5 % Lean Manufacturing Approach Value Added Waste (Muda) Time 90 % 10 %
- 28. Continous Flow Produce one - deliver one without waiting • By performing the real value creating steps consecutively, transform the raw material into a product and deliver it to the end user • Perfect every step (KAIZEN) – capable – right every time (6 SIGMA) – available – always available (TPM) – appropriate – flexible and at the desired scale ( LEAN )
- 29. One Piece Flow Batch and Push Manufacturing All processes are 1 minute, 3 consecutive processes and lot size ( batch ) of 10 B B B BB B BB B C C C C Process A: 10 minutes Process B: 10 minutes Process C: 10 minutes Lead Time : for the whole lot 30 ++ minutes Continous Flow “produce one, B C Lead Time: 12 minutes deliver one” 3 min. 12 min.
- 30. Continous Flow • Ford, 1913, model T – Continous flow at the final assembly – Sequential layout of machines – 90% resource savings – Same model for 19 years • Today; – Demand for small lots – Continous flow for all products – Adaptation to fluctuations in customer demand – High product variability demanded by the customer
- 31. Example : Batch Production Semi Material Cut to finished Lathe Welding product Warehouse length assembly Finished Parts Goods Semi Finished Product Warehouse Warehouse Warehouse Packaging Painted Parts Storage Touch up Final Assembly Painting
- 32. Example : Flow Production Incom Space gained Product A Cell ing for new Parts products Ware P house A Product B Cell I N Gains : T Finish I 50% decrease in workforce, Product C Cell ed N Goods 45% decrease in space G Wareh 94% decrease in lead time ouse Product D Cell
- 33. Pull All steps demand from the previous • Producing what the next process (customer) demands, at the desired quantity ( not more / not less ) and at the desired time ( not before or later ). • Following all steps backwards starting from the end customer’s demand • A simple way to put production under control
- 34. Pull System Value should flow, at the time, for the products, and at the speed, demanded by the customer. I demand I need one I need one I need one more more one now more Here you Here Here Here are you you you are are are RAW MATERIAL CUSTOMER
- 35. Benefits of Pull Systems • Resources are only allocated to products that are demanded • No inventories are formed on the value chain • Financial turnover ( cash flow ) speeds up • Regulates the value stream according to the customer • Problems like ; Obsolete finished goods inventory at hand; rework or scrapping of products due to design changes; discount campaigns for undemanded products, do not arise.
- 36. Lean Flow ... What if a machine breaks down? ... What if there are defective parts among the products? ... What if the deliveries are late? Dealer Welding Assembly Main Distributor Painting Stamping Tier 1 Supplier Tier 2 Supplier ALL STOP !!
- 37. Perfection Perfection ( Ideal State ) Future State Current State Original State
- 38. Principles of Lean Thinking - Summary 1. VALUE : Specify value for the product 2. VALUE STREAM : Identify the value stream for every product family 3. FLOW : Make the identified value flow 4. PULL : Make the customer pull the value 5. PERFECTION : Manage towards perfection. To avoid focusing solely on the technics , always repeat the principles !
- 39. Benefits Parameters Gains Product Design Lead Time 75% Manufacturing Lead time 90% Productivity 100% Defects 80% Inventories 90% Area used 50% Work Accidents 50% New Investments Too little
- 40. Gains SHORT TERM MIDDLE TERM LONG TERM Reduction in scrap Increase in present product New products and rework sales Utilization of freed up Reduction in overtime Bringing outsourced space production in the plant Increase in delivery Adding extra value to the Reduction in performance products obsolete inventories New sales via better Reduction in service inventories Improvement in Reduction in support cash flow function department Reduction in costs manpower costs
- 41. Lean Company Model LEAN LEADERSHIP Lean LEAN MANUFACTURING Lean Supply organization SYSTEM and JIT AUTONOMATION Chain Development processes Respect for People and Mutual Trust
- 42. LEAN MANUFACTURING TECHNIQUES VALUE STREAM MAPPING ONE PIECE FLOW-SMALL LOTS REDUCING INVENTORY KANBAN STANDARDIZED WORK SMED KAIZEN VISUAL CONTROL 5S STANDARD WIP WORK CELL TAKT TIME JIT/PULL TPM “The key to lean is in the thinking and not just in the tools” James WOMACK
- 43. 5S The 5-S Workplace SORT •Sort needed & unneeded items. Red tag unneeded items. SET IN ORDER •Put things in proper places, arrange and label. SHINE •Clean up the workplace. STANDARDIZE •Standardize the 1st 3 S’s. Document Methods & maintain cleanliness. SUSTAIN •Make 5-S a part of the job. Stick to it! Grade it! Improve it!
- 44. 5S Program
- 45. 5-S Benefits Constraints • Remove unnecessary items. • Daily workforce involvement, • Clear workplace. sustained resource allocation. • Save space. • Minimal investment for storage • Save time for motion. locations and identification. • Regular audits required to • Standardized procedures. sustain. • Organized activities. • Improve safety. • Improve up time. • Team building start point.
- 46. TAKT TIME • TAKT Time reflects the rate at which customers buy our products; • Takt time is calculated by dividing the real available time by the quantity of goods sold each day: Daily effective minute = TAKT Time Daily customer demand • The actual amount of members needed to build a product at a given TAKT TIME: The sum of the Cycle Time = No. of operators required Divided by the TAKT TIME
- 47. TAKT Time benefits Having a TAKT time affords the ability to do the following: • Compete in a marketplace where the demand and cost of product is being dictated by the customer. • Pull the product down the line. • Monitor the production rate at intervals that are much smaller than the TAKT time (pro-active approach). When issues are found that stop the series of work steps to be completed on time, they can be dealt with in a concise documented manner. • Build without overtime. • Determine the correct number of production workers required. • Affords targeted costing (both from labour and product). • Control cost more effectively.
- 48. Value Stream Mapping Current State Value Stream Production Forecast Control Forecast Michigan State Street Steel Weekly Order MRP Daily Order Assembly Weekly Schedule Daily Ship Schedule 2 x Week Daily Stamping S. Weld 1 S. Weld 2 Assembly 1 Assembly 2 Shipping I I I I I I Future State Value Stream Production Lead Time = 23.5 days Value Added Time = 184 secs Forecast Production Control Forecast Check Michigan Steel Daily Order Daily Order State Street Assembly progress and Daily Order stabilise Daily Daily V S Manager Jim Value Stream Plan Product Family Date 03/02/2003 Steering Brackets Weld and Stamping Assembly Cell Shipping Product Value Person Family Stream Measurable Monthly Schedule in Business Objective Goal Charge Objective 1 2 3 4 5 6 7 8 9 Production Pacemaker Lead Time *Continuous flow from = 4.5 days weld to assembly Zero WIP John *Kaizen to 168 secs < 168 s/t Dave Value *Eliminate weld Added Time changeover < 30 sec c/o Sam = 166 secs *Uptime weld #2 100% Mike Improve *Finished goods pull 2 days FG Sue Profitability *Materials handler Pull Schedule James In Steering routes Ask the Brackets Stamping *Stamping Pull 1 day inventory + pull schedule Fred *Stamping changeover batch size Tim key 300/160 pieces c/o < 10 min Supplier questions *Pull coils with daily deliveryr daily delivery < 1.5 days of coils at press Graham
- 49. Value Stream Mapping % ppm Amplification Quality & Delivery % 40 2000 30 20 Current State 1500 1000 10 5 10 500 0 0 0 F E D C B A F E C A Time reduced % ppm 40 Amplification 2000 Quality & Delivery % from 20 to 5 30 20 Future State 2 1500 1000 10 5 days 10 Flow and Pull between Plants500 0 0 0 F E D C B A Dist. Centre F E C A Steel % ppm Amplification Ideal State Quality & Delivery % 40 2000 10 30 1500 20 1000 5 10 500 Warehouse Cross Dock 0 Cross Dock Value Stream Compression 0 0 Stamping Wipers Assembly Dist. Centre F E D C B A F E C A Steel Time DELTA GAMMA STEEL STAMPING BETA WIPERS ALPHA MOTORS 44d Steps 55m 73 8 F E D C B A Stamping Wipers Assembly Time Dist. Centre DELTA GAMMA Steel STEEL STAMPING BETA WIPERS ALPHA MOTORS 16d Steps 55m Time 39 8 F E D C B A Stamping Wiper reduced Cell Cell Assembly Time EPSILON from 49 to Steps STEEL SUPPLIER PARK ALPHA MOTORS 3d 55m 20 days 30 8 F E D C B A
- 50. WORK CELLS Original Process Layout Assembly • Group dissimilar machines in manufacturing cell to produce 4 6 7 9 family of parts 5 8 2 10 12 • Work flows in one direction through cell 1 3 11 A B C Raw materials • One worker tends several Cellular Layout Solution Assembly machines 8 10 9 12 • Cycle time adjusted by 11 changing number of workers 4 6 Cell1 Cell 3 Cell 2 7 2 1 3 5 Raw materials A C B
- 51. WORK CELLS Benefits • Cellular manufacturing achieves the benefits of flow based manufacturing • This simplifies material flow compared to a traditional process layout • Ownership and responsibility for a product rests with the operators of the cell • Shorter Lead Time • Improved Quality - Quicker problem identification • Improved Quality - Less potential rework or scrap • Less Material Handling • Improved Coordination • Reduced Inventory • Departmental conflicts eliminated • Simplified Scheduling • Less Space Required
- 52. STANDARDIZED WORK There can be no improvement without the basis of standard work. . When normal and abnormal work activities are undifferentiated, waste almost inevitably occurs. Standardized Work, on the other hand, provides an efficient framework in which to perform our jobs. ‘Standardized Work’ is a general phrase which refers to all of the standards (quality, safety, procedural) used in the process of carrying out routine operations. Standard work provides a consistent routine and a basis for improvement. Three elements are important: Takt time/Cycle time, Work sequence and Standard Work in Process (SWIP).
- 53. Standard Work-in-Process • The MINIMUM amount of Work-In-Process required to allow the operator continued performance of Standard Work. • By standardizing the WIP, we can find a way to reduce it. • Shortened LEAD Time • Quick capture of quality problems • Unnecessary WIP eliminated • Potentially less staffing in cell • Members do more of VA process • Members become multi-functional • The aim is one-piece-flow
- 54. Reducing Inventory • Reducing Inventories • In traditional manufacturing, inventories are seen as assets • Inventories provide a safety buffer, and result from maximizing machine utilization • JIT views inventory as waste • Inventory is evidence of poor design, poor coordination, and poor operation of a manufacturing system • Inventory Hides Problems
- 55. Reducing Inventory supply / Inventory level material defects / rework flow set-up downtime labour capacity planning force
- 56. KANBAN • Kanban card indicates standard quantity of production • Derived from two-bin inventory system • Kanban maintains discipline of pull production • Production kanban authorizes production • Withdrawal kanban authorizes movement of goods • Used when one-piece flow cannot be achieved
- 57. Kanban • Visual Refill /Replenishment Systems: • A visual replenishment system is one in which tools such • as cards, lights, grids, squares, flags or other visual means • are used to signal the need for re-supply of materials, parts • or supplies. (“KANBAN” = Signal to control WIP)
- 58. Determining Number of Kanbans average demand during lead time + safety stock No. of Kanbans = container size dL + S N = where C N = number of kanbans or containers d = average demand over some time period L = lead time to replenish an order S = safety stock C = container size
- 59. Line balancing • Time and labour variables are the basis of line balancing. • They are interrelated and are determining the cost of the producing a product. • If one person is doing a part, the processes are done in sequence. By adding persons, the throughput time will be reduce and all the operations are done in the same time. The throughput time is the longest operation time. • To balance the line, one operator may do 2 faster operation or we may move some steps from the longest operation to other operations.
- 60. SMED • SMED is a process for dramatically and methodically reducing set-up or changeover times. • Will enable significant reduction of lot sizes. SMED Principles • Setup time is the time between parts when the machine is idle and operator is doing a changeover. • Separate internal setup from external setup • Convert internal setup to external setup • Streamline all aspects of setup • Perform setup activities in parallel or eliminate them.
- 61. SMED • Set-up delays causes: Searching; Walking; Poor Schedule information; No checklist; Lack of calibration; Missing tools Waiting;
- 62. SMED Setup Reduction methods: - Parallel setup tasks: ideally, two people can do the job in half the time. - Using quick-attachment devices: one-turn bolt attachment devices, attachments with fixed holders and pins, clamping devices, - Eliminate adjustments: shims with fixed-position holders on machines, accommodating variable-height dies without making adjustments, - Improve external setups: store fixtures, holders, plates, tools near machines, prepare setup kits and carts, improve material handling.
- 63. TPM • Small lot production with little inventory requires equipment that: – Doesn’t break down – Doesn’t produce defects – Performs well • Breakdown maintenance – Repairs to make failed machine operational • Preventive maintenance – System of periodic inspection & maintenance to keep machines operating • TPM combines preventive maintenance & total quality concepts • TPM seeks to find the root causes of equipment problems, and fix them
- 64. TPM Preventive Maintenance Elements Maintain normal operating conditions • Maintain equipment requirements • Keep equipment and facilities clean and organized • Monitor equipment daily • Schedule preventive maintenance • Manage maintenance information • Use predictive (condition-based) maintenance Role of Operators – Keep machine clean – Routine lubrication and adjustments – Visual inspection (cracks, oil leaks) – Be aware of unusual sounds, heat, vibration, etc.
- 65. Benefits Of Lean Production 1. Reduced 7. Greater flexibility inventory 8. Better relations with 2. Improved quality suppliers 3. Lower costs 9. Simplified scheduling 4. Reduced space and control activities requirements 10. Increased capacity 5. Shorter lead time 11. Better use of human 6. Increased resources productivity 12. More product variety
- 66. Metrics / Expectations (examples) • Item potential improvement • Floor Space 29% • Scrap 46% • QC Rejects 95% • Rework 72% • Work-in-Process 59% • Setup Time 66% • Manpower 32% • Equipment Required 34% • Lead Time 56% • Distance Parts Travel 54% • Cycle Time 18% • Finished Goods Inventory 43% • Down Time 52% (Source: Kaizen Institute)