Transcript No Slide Title

Lean Enterprise 101: A Short Course
1
Employ Improvement Initiatives
Lean Enterprise Overview
Lean Enterprise: An Integral component of Operational
Excellence where the Lean Principles are applied to the entire
company, and external value chain -- Customers and Suppliers
Why Lean and Why Now?
• Lean is not new, Toyota has been doing over 40 years
• Integral part of an Operational Excellence strategic plan
• Customers are asking for it, some are forcing it
Purpose of this Lean Module?
• Describe Lean Enterprise fundamentals & principles
• Understand basic Lean Enterprise tools
• Outline the elements of a Lean Enterprise system
• Provide a basis for Lean Enterprise implementation
2
Employ Improvement Initiatives
History of Lean Thinking
Craft
Eli Whitney
Inter-changeable
Parts
Toyoda
Jidoka
SMED Shingo
Toyota Production System
OHNO
Ford
Assembly Lines
Waste Elimination
Taylor / Gilbreth
Scientific
Management
Vertical Integration
Synchronization
US Supermarkets
3
Employ Improvement Initiatives
Deming
Quality Management
System
Lean Enterprise Fundamentals
Why go “Lean”?
•
Improve Processes for:
–
–
–
–
–
Increased Market Share
Profitability
Cash Flow
Competitive Advantage
Future Growth in an Ever Changing Market
Benefits of a Lean Enterprise:
 Bigger return on Participative Pay Program
 Easier completion of daily tasks
 Better communication
 Improved morale
 Easier to schedule work
 Less clutter in workplace
 Right parts available when you need them
4
Employ Improvement Initiatives
Lean Enterprise Fundamentals
What is the essence of “Lean”?
The activity of creating processes which are highly responsive and flexible
to customer demand requirements. The central concept of Lean is the
identification and elimination of all forms of waste.
Lean Principles
1) Specify value in the eyes of the customer
2) Identify value stream and eliminate waste
3) Make value flow at pull of the customer
4) Involve & empower employees
5) Continuously improve in pursuit of perfection
5
Employ Improvement Initiatives
Changing Market Reality
We Made the
Numbers!
But at What Cost?
Cost + Profit = Selling Price
Selling Price - Cost = Profit
6
Employ Improvement Initiatives
A Powerful Marriage
Lean Experts
•
•
•
Black Belts
•
•
•
Waste elimination
Flow, Flow, Flow
Pull of the customer
Speed
+
Variation reduction
Scrap / rework elimination
Process control
Accuracy
Successful Integration and Deployment
will Yield Dramatic Improvements
7
Employ Improvement Initiatives
The Lean Enterprise House
Customer
• VOC
• Takt
• QFD
People
Materials Systems
• Production Smoothing
• Flow / Pull
• Line Design
• Kanban
• SMED
• P-O-U
Just
In
Time
• Policy Deployment
• HP Teams
• Values
• Org development
• Steering Committee
• Design Teams
• Kaizen
• Multi-process
• Safety
• Process improvement
• Ergonomics
Stability
• Six Sigma
• Visual Controls
• Standard Work
• DFM
• TPM
8
Employ Improvement Initiatives
Built
In
Quality
Quality Systems
• Autonomation
• Mistake-proofing
Identify and Link the Value Chain
The pieces of the chain are already there.
Support
Engineering
Production
Customer
Suppliers
Administration
Materials
Test
Make each process efficient and effective, linking those processes into an
interdependent chain focused on flow and creating value for the customer.
Supplier Engineering Production Test
Customer
Customer
Administration Materials Support
F L O W
9
Employ Improvement Initiatives
The Value Stream
Information Stream
Market
& Sales
Design
Suppliers
Manufacturing
Material Flow
10
Employ Improvement Initiatives
Assy Test
C
U
S
T
O
M
E
R
V
A
L
U
E
Defining Value
Value Added Activity
An activity that Changes the size,
shape, fit , form, or function of
material or information (done right
the 1st time) to meet customer
requirements.
Pure Waste
Idle!
11
Value Added
Required Waste
Non-Value Added Activity
All other activities that take time or
resources or does not satisfy
customer requirements
Employ Improvement Initiatives
Lean Mission Statement
Develop the Ability:
• To Recognize and Identify Waste
• To Have the Courage to Call It Waste
• To Have the Desire to Eliminate It
• Eliminate the Waste
• Understand That Waste Simply
– Raises Cost
– Produces No Corresponding Benefit
– Threatens All of Our Jobs
You can’t Eliminate What You Can’t Find
12
Employ Improvement Initiatives
The Seven Wastes
Ask “Why?” Five
Times to Fix it so it
never comes back!
The largest and most
difficult waste to find is
time... and one can never
get it back ...
- Henry Ford
Waste Of:
• Defects
• Overproduction
• Transportation
• Waiting
• Inspection (mass) D.O.T. W.I.M.P.
• Motion
• Processing (Too Much)
If we eliminate these wastes…
We can increase output and shrink lead time
13
Employ Improvement Initiatives
“Conceptual Grasp” of Lean
CADENCE:
The measure or beat of movement.
FLOW:
A smooth uninterrupted movement.
BALANCE:
Arrange so that one set of
elements exactly equals another.
SYNCHRONIZE:
To cause to operate with exact coincidence in time and rate.
FLEXIBILITY:
Ready capability to adapt to new, different or changing requirements.
14
Employ Improvement Initiatives
Takt Time
Available Time
TAKT Time =
Customer Demand
Example Product demand = 2000 units per month or
100 units per day
Available work time per day = 6.5 hours or
390 min’s per day
TAKT time =
15
390 min’s
= 3.9 min’s/unit
100 units
Employ Improvement Initiatives
Shingo Model
Operations
Space
& Time
Operations
Analyze Separately, Solve Together
16
Employ Improvement Initiatives
Dissect the Current Condition
 THE
ACTIVITY OF THE PRODUCT:
– As a percent of total product thru-put time, what is the measure of actual value added
time?
 THE ACTIVITY OF THE OPERATOR:
– As a percent of the total available work time, what is the measure of actual value added
time?
 THE FLEXIBILITY OF THE OPERATION:
– What is the time “required to change-over”
-Machine Setup
-Process Changeover
-Level of Cross Training
-Ease of Operation
 THE METHOD OF MEASURING PERFORMANCE:
– What are the current set of problems?
– What are the vital operating statistic of the operation?
CONCENTRATE ON THE FUNDAMENTALS!
17
Employ Improvement Initiatives
Activity Of The Product
What are the four things the PRODUCT can be doing?
Storage
Total Thru-put
Time
Transport
Inspect
Process
Which Element(s) Adds Value?
50 - 80% of the Gain in Lean is WASTE elimination!
18
Employ Improvement Initiatives
Example - Activity of the Product
Distribution of Total Time
Value added
processeing time
29%
Non value added
processeing time
15%
Inspection/Test
1%
19
Storage
33%
Transportation
22%
Employ Improvement Initiatives
Activity of the People
Pure Waste
Full Work
Analysis
Required Waste
Value Added
Which Element(s) Adds Value?
The Key to Sustaining the Gains
Building Blocks of Standard Work
20
Employ Improvement Initiatives
Adding Value
Which Activities Add Value?
•
•
•
•
•
•
•
•
•
Work waiting for other work to be batch processed
Work in the in-basket / stockroom
Company specified testing / sign off
Loading work in a test fixture or chamber to be processed
Moving from one operation to another operation
Customer specified testing
Value Added:
Cleaning parts before processing
 Customer Cares
 Changes the thing
Waiting for previous parts to finish
 CORRECT THE FIRST TIME!
Inspecting a part after an operation
If not value-added, then what type of waste is it?
21
Employ Improvement Initiatives
Will Lean Help You?
Stores
DAY 0
DAY 76
Value Added Steps
Non Value Added Steps
Wait or Queue Steps
(“White Space”)
Elapsed Time =76 Days
Total Activity = 4.5 Days
Non-Value Added
2.5 Days
Value Added
2 Days
22
Employ Improvement Initiatives
How do I get
rid of the
white space?
Definitions
Lead Time
It is the total elapsed time from when a customer places
an order to the time the customer receives that order.
Cycle Time
The total amount of clock time required to complete one part including walking, load/unload, inspect, etc. and return to
start.
Throughput Time
The total amount of time it takes for a process to
complete one product or service.
23
Employ Improvement Initiatives
Spaghetti Chart
In From
Processes
Out to Processes
Out to Processes
In From
Processes
Start Here
0
In from
Zeiss (Loop 2)
Puma NC Lathe
8
Out to
Curvics
0
24
In from
Curvics
Mazak
Hand
Lathe
Balance
4
16
Hone
ID Grinder
16
Loop 3 Flow
Outside Processes
Insp
Pre-Assy
15
8
Hand
Finish
4
Kellenberger
Shaudt OD
Grind
Spaghetti Chart Instructions

Obtain current layout of area

Draw sequence of the process as the product
travels through the process

Note WIP quantities at each process step 1

Note loopbacks and lack of sequential flow
24
Slant
NC Lathe
1
Employ Improvement Initiatives
Monarch
Hand
Lathe
4
Widgets: Line 3
Lean Cell Design - Product Flow
Cell Example - Product Flow
Mach 3
Mach 4
Test
New Layout for Parts and Tools
 Point-of-use details
 Only specialty tools in crib
 Tools/equipment point-of-use
FG
Product Flow
Mach 2
Mach 1
Raw
P-O-U
Supermarket
Flow fits product family
All processes within cell
P-O-U
Hardware
P-O-U
Tooling
Material
Flow
Cell Design Enables Product Flow.
FG
Use Cell Pulls
via Kanban Signal
25
Employ Improvement Initiatives
RM
Raw Material Delivered
via Kanban Signal
Quick Set-up = Flexibility
Shingo’s SMED (Single Minute Exchange of Dies)
1. Identify Work Content as Internal and External Activity
Ext
Int
Ext
2. Convert Internal to External Activity
Ext
Int
Ext
3. Eliminate or Reduce all Remaining Activity
Ext
26
Employ Improvement Initiatives
Int
Elements of Setup
• Preparation and Organization
• Mounting and removing tools, dies, fixtures,
components, load programs
• Centering, locating, dimensioning, alignment
• Trial runs, tweaking, tuning, and adjustments
27
Employ Improvement Initiatives
How Does TPM Differ From
Regular Maintenance?
• It is a proactive, team approach for maintenance
• It is the responsibility of everyone, not just the
maintenance department
• Ensures safety and effective operation of equipment
• Keeps equipment from breaking down
• Planned repairs rather planned failure
• Prevents deterioration and prolongs the life cycle of the
equipment
28
Employ Improvement Initiatives
Stages of Maintenance
The goal is to get to Scheduled Maintenance
29
Employ Improvement Initiatives
Standardized Operations
 Purpose
Create a consistent method to measure how
safely and efficiently high quality low cost
products can be manufactured
 Goal
Arrange people, materials, and capital within a
facility so that waste is eliminated
30
Employ Improvement Initiatives
Build in a Quality Plan
Will SPC be used on line and where?
Has a FMEA been performed on Process?
Are Countermeasures in place for line stops?
Is the quality system linked through the value stream?
Does the Process conform to all governing
procedures?
Have all Documentation Updates to change process
been performed?
31
Employ Improvement Initiatives
Lean Material Replenishment
All the activity associated with the
replenishment system is non-value added
(waste) since it does not physically transform,
convert or change the shape or functionality of
the product to meet customer requirements.
Target for improvement should be to eliminate
or streamline each activity associated with the
replenishment system, while retaining or
developing the ability to obtain what is needed,
when needed, in the amount needed.
32
Employ Improvement Initiatives
Hybrid Material Solutions
MRP without Kanban
•All push no Pull
• all system planning assumes execution as planned
• the only consumption-based pull in for unplanned usage
Kanban without MRP
•All Pull no Push
• hard to pull from long lead time suppliers or batch processes
• hard to manage calculations of Kanban when demand changes
• System designed with historical data may not fit unknown future
33
Employ Improvement Initiatives
Kanban / MRP Integration
Demand
Management
Forecast
Production
Planning
Rough Cut
Capacity Planning
Master
Scheduling
Current Inventory
MRP
BOM’s
Purchasing
On Order
Routings
Suppliers
MRP
Planning
Pull Signal
Pull Signal
Warehouse
POU Stores
POU Stores
Sub Assy
Final Assy
Kanban
Pull
Ship
Pull Signal
34
Employ Improvement Initiatives
Do you ever . . .
•
•
•
•
•
•
Help somebody find or return a tool?
Wonder which document is the latest?
Lose your pen on your desk or bench?
Spend time looking for something just filed?
Wonder how others do this process?
Fill in for peers and wonder how they set up
tests?
• Wonder how you are doing on group goals?
• Wonder what your priorities are?
35
Employ Improvement Initiatives
Visual Management System
The use of signs, measurements, pacing devices, real-time visual /
audible feedback via counters, signals, cards (KANBAN), colorcoding, speakers, alarms, clean and orderly, downtime clocks,
facilities and other aids to allow for...

The easy difference between…



Normal (LEAN & GOOD) conditions
AND
Abnormal (WASTEFUL & HARMFUL) conditions
Abnormalities are made obvious and ugly so as to compel correction
through effective counter measures
Good Visual Control Allows Problems No Place To Hide
36
Employ Improvement Initiatives
The Five S’s
Purpose
Methodology for creating and maintaining an organized, clean high
performance workplace.
Components
Areas of Concern
Sort
Get rid of what is not needed.
Storage
 Arrange and Identify for ease of use.
Shine
 Clean Daily. Clean up what’s left
Standardize
 Eliminate cause, Standard methods.
Sustain
 Set discipline, plan, schedule

37
Employ Improvement Initiatives





Operators
Materials
Machines
Methods
Information
Five S Scoring Criteria
38
Employ Improvement Initiatives
Displays and Controls
Visual Displays:
Communicate important information, but do not control
what people or machines do.
Make up the first two levels of the pyramid.
Visual Controls:
Communicate information so that activities are performed
according to standards.
Make up the top four levels of the pyramid.
Visual displays and controls create a common
visual language in the workplace
39
Employ Improvement Initiatives
Levels of the Visual Business
6
Prevent
Abnormalities
(Error-Proof)
Stop Abnormalities
(Prevent defects from moving on)
5
Warn about Abnormalities
(Build in alarms)
4
3
2
Build Standards into the Workplace
Share Standards at the Site
1
Share Information
Safety
WORKPLACE
ORGANIZATION
Sort, Store, Shine,
Standardize, and Sustain
5S Workplace Organization
40
Employ Improvement Initiatives
Total Employee Involvement
NEW REALITY WITH TEI
Top Management
Strategic
Middle Management
Supervisors
Tactical
Workers
By Involving People…
We Empower People to Grow the Business
41
Employ Improvement Initiatives
Lean Principles
1) Specify value in the eyes of the customer
2) Identify value stream and eliminate waste
3) Make value flow at pull of the customer
4) Involve & empower employees
5) Continuously improve in pursuit of perfection
42
Employ Improvement Initiatives
Sustaining Performance
Identify the source of current problem set
- Parts
- Process
- People
- Design
Develop a rolling “top 10” action list:
– Segregate and classify identified problems
•
•
•
•
easy, moderate, difficult
we control, we do not control
low, medium, and high cost
low, medium, and high benefit
– Identify 10 problems that must be corrected in
the next 90 days
Monitoring the vital statistics
–
–
–
–
–
–
–
–
–
–
Daily and hourly scheduled quantities
Daily and hourly output quantities
Daily assigned direct and indirect labor
Daily attend direct and indirect labor
Daily overtime hours allowed
Average labor content per unit
Daily planned and actual cycle time
Planned and actual throughput time
Daily line stop minutes
Daily % defect free pieces
How do we create a Management System that Sustains
Continuous Improvement? (Refer to “SQS”…)
43
Employ Improvement Initiatives
Video: Look At Things In A New Way
Joel Barker Video here
44
Employ Improvement Initiatives