Transcript CAP Tools for Six Sigma Notes

The Lean Enterprise
Standardized Operations/ Standard Work
Lean Foundations
Continuous Improvement Training
Learning Objectives





Generate Ideas to Improve Existing Process
Utilize Expertise of all Team Members
Prioritize and Implement the Changes
Identify Future Process Improvements
Identify three advantages of standardizing operations
in your area
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Learning Objectives

Improve your work area
utilizing Standardized
Operations

Kaizen your area with
simple, effective
changes

Share key learnings
with others
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By-Products of unorganized Workplace

Safety risks due to physical obstacles and hidden
hazards

Product defects and equipment breakdowns
resulting from a dirty environment

Lost productive time searching for material &
tools

Poor customer responsiveness and incorrect
shipments

Difficulty in distinguishing between what is good/
bad or needed/ unneeded
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Goals of Standardizing


Capture and use the safest, best and easiest method


Change easily (Continuous Improvement Mentality)
Build safety, quality, WIP limits & productivity into the
process
Identify Areas of Waste – ‘Opportunities’
Any opportunities here?
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Waste
 The elements of work that add no value.
 Waste only adds cost and time.
Things to remember about Waste
• Waste is not the problem; it is a symptom
• Waste points to problems within the system
(At both process and value stream levels)
• We need to find and address the cause of Waste
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Simply, ‘Standardization’ is the...
Safest
Best
Fastest
method to do your job !
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Standardization incorporates Visual
Management techniques
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Benefits of Standardization
Teamwork
 Everyone is able to participate and make
improvements
Communication
 Improved relations between workers and between
workers and management
Education
 Improved problem solving
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Benefits of Standardization
Awareness
 Understanding of broad issues and objectives
Confidence
 Stronger feelings of self worth
Empowerment
 Increased control over the job and work
environment
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Provides Benefits to All Employees

Success of the company – safer operations and
better personal job security

Improved quality of life in the workplace

Improvement in solving problems, making
decisions and improving product quality due to
shorter time frames

Control/ ownership over the improvements in
your process/ job function
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3 Elements of Standardized Operations/
Standard Work
• Machine Utilization
• Work Sequence
• Standard Work-In-Process Stock
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Machine Utilization

Document "Best" Methods

Time: Balance/ Fairness

Time: Baseline for Continuous Improvement

Responsibility: Operations
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Methods Study

Document "Best" Methods

Time: Balance/ Fairness

Time: Baseline for Continuous Improvement

Responsibility: Operations
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Methods Study – Refer to Lean tools
Module
D
C
B
Recall
Mode
Split/Lap
Time/Set
Reset
A
Start
Stop
Select
Min
Split (1)
0000.00
Lap
Recall
00002.00
1/100
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Time Elapsed From Start to
Current Operation Lap Time
Lap Time Between Operations
Time Observation Sheet - example
PROCESS N AM E
PART N o.
W r it e "Gr owt t h"
Gr owt t h # 1
OPERATOR CYCLE TIM E
X
o
M ACHIN E: __________________CYCLE TIM E
o
DATE
OBSERVER
3/ 8/ 99
M . Sm it h
OBSERVED CYCLES
ORDER OF
OPERATION /
ELEM ENT
1
0
OPERATION / ELEM EN T DESCRIPTION
St and up and walk t o boar d
CLOCK
RUNNING
TIM E
ELAPSED TIM E
2
W r it e "Gr owt t h" on boar d
CLOCK
RUNNING
TIM E
ELAPSED TIM E
3
W alk back t o chair and sit down
CLOCK
RUNNING
TIM E
ELAPSED TIM E
1
2
3
4
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6
7
8
9
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35
48
1 :0 2
10
24
35
49
2 :0 0
15
30
5
5
5
5
4
2
4
5
4
5
5
5
10
25
38
53
5
15
27
40
52
5
20
3 :0 0
5
5
3
5
3
5
3
5
3
5
5
30
15
30
43
58
8
20
30
45
55
10
25
5
5
5
5
5
3
5
3
5
3
5
5
15
15
13
10
15
15
M ost Repeat able
Oper at ion/
Elem ent Tim e
Best Repeat able
Oper at ion/
Elem ent Tim e
5
4
Talking t o an oper at or
5
3
5
5
3
40
15
10
Tot al
Tot al
CLOCK
RUNNING
TIM E
ELAPSED TIM E
CLOCK
RUNNING
TIM E
ELAPSED TIM E
CLOCK
RUNNING
TIM E
ELAPSED TIM E
CLOCK
RUNNING
TIM E
ELAPSED TIM E
CLOCK
RUNNING
TIM E
ELAPSED TIM E
CLOCK
RUNNING
TIM E
ELAPSED TIM E
CLOCK
RUNNING
TIM E
ELAPSED TIM E
CYCLE TIM E
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10 12 10 15
REM ARKS
Measure Waste With Data
Examine and analyze “Time” in 3 areas
People:
Waste
Time in a Typical Plant
ValueAdded
Portion
of Time
Materials:
Waste
ValueAdded
Portion
of Time
Machines:
Waste
ValueAdded
Portion
of Time
"Waste": waiting for materials, watching
machines run, producing defects, looking
for tools, fixing machine breakdowns,
producing unnecessary items, etc.
Time in a Typical Plant
"Waste":
transportation,
inspection and rework.
storage,
Time in a Typical Plant
"Waste": unnecessary movement of
machine, setup time, machine breakdown,
unproductive
maintenance,
producing
defective products, producing products
when not needed, etc.
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Measure Waste With “Time”
People – Best Practices
People:
Waste
Time in a Typical Plant
ValueAdded
Portion
of Time
"Waste": waiting for materials, watching
machines run, producing defects, looking
for tools, fixing machine breakdowns,
producing unnecessary items, etc.
• Demand adherence to standard operations
• Document your standard operations
• Train to achieve consistent performance
• Record key measures daily
• Keep measures continually updated
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Measure Waste With “Time”
Materials – Best Practices
• Understand customer demand of products
• Implement continuous flow
Materials:
Waste
ValueAdded
Portion
of Time
Time in a Typical Plant
"Waste":
transportation,
inspection and rework.
storage,
• Distribute work evenly by volume and variety
to allow smaller orders by the customer
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Measure Waste With “Time”
Machines – Best Practices
Measure/ Manage Equipment States:
• Production Time
• Downtime
• Set-up Time
• Non-production time
Machines:
Waste
ValueAdded
Portion
of Time
Time in a Typical Plant
"Waste": unnecessary movement of
machine, setup time, machine breakdown,
unproductive
maintenance,
producing
defective products, producing products
when not needed, etc.
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Takt Time
Definition:
The “beat” of production
- or Customer demand stated in time
Work Time Available
Average Demand
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Takt Time
Synchronizes Pace of Production
to Match Pace of Sales
Rate for producing a product, and its
components, based on sales rate.
Takt Time =
Your Operating Time per Shift
Customer Requirement per Shift
27,000 sec
= 59 sec
460 pieces
59 sec.
59 sec.
59 sec.
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Calculating Takt Time
1 shift = 8 hours x 60 min = 480 min
Breaks = 30 min / shift
480 min - 30 min = 450 min / shift available
Takt Time
=
Time Available in 1 day
Number of Units Sold that Day
Takt Time
=
1 shift x 450 min / shift x 60 sec
900 Units Sold
Takt Time
=
27,000 sec =
900 units
30 sec/unit
"Line Takt Time" = 30 sec/unit x 90%
= 27 sec/unit
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Takt Time / Cycle Time
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Use Bar Chart to Eliminate Waste
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Re-balance Work Loads/ Tasks
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3 Elements of Standardized Operations
• Machine Utilization
• Work Sequence
• Standard Work-In-Process Stock
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Work Sequence - example
 Products are made using consistent “best”

methods
These best methods are followed by the teams as
the baseline for the next improvement
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Process Documentation Set (IPO)
All work is the result of a process …
• A process is comprised of Activities
• A process has owners and accountabilities
Inputs
•
•
•
•
•
Who supplies?
To what specs
Who specifies
How often; by when
What QC exists
Process
Outputs
• Who are the customers?
• Are their needs met; what
changes are wanted
• How do they use the outputs
• What measures are used
• Who performs the tasks?
• How often; by when
• How long does it take; level of
effort
• What problems exist
• How are they corrected
• What QC exists
• Information management
technology
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Standardized Operations Improvement
Questions
There are 3 levels of Process Detail
• What follows is a extensive list of
Questions to ask at each level and with each
action during the Process Analysis team
activities
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Process Boundaries
Level 1 Process Detail

What activities or events begin (trigger) the
process?

What activity or event ends the process?

Who are the departments/groups involved (swim
lane titles)

What is the operating cycle of the process? How
long does it take? Is is done periodically? Or on
demand?
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Process Boundaries
Level 1 Process Detail

How (direct, indirect) is the process owned and by
whom (sole or shared ownership) Where and how
is ownership defined?

How is functional reporting aligned to the
process or activity sub sets? (i.e. if you own it,
can you control it?)

Which process activities are mission critical?
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Example of Level 2 Process Map
(swim lane) Maintenance Management
Weekly Planning - Process Map
Stores
Annual
Maintenance
Planning Process
Validate Parts &
Tools Availability
A
Maintenance
Maintenance Master
Schedule
Perform Equipment
Condition Analysis
if not
available
Order Parts &
Monitor Arrival
Automated within Systems
Integrate New Work
Orders Entered
Today
from other sources
Create Weekly
Maintenance
Schedules
Initiate Corrective
Action Work Orders
(as required)
Review
Maintenance
Accomplishments
Generate Required
Work Orders
Backlogs, Parts Availability
Capacities, Production MPS
Create Draft
Planned Work
Orders
Refine Upcoming
Weekly
Maintenance Plan
Refresh MMS
(31-360 days)
Create Crew
Assignments - Plan
Labour Availability
Release Updated
Maintenance
Schedule
(0-30 days)
Release Next
Week's Work Plan
Allow for
Emergencies
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Generate Final
Work Orders &
Crew Assignments
Pick Parts and
Deliver to Work
Order/Centre
Suppliers, Performers, and Customers
Level 2 Process Detail

Who is involved in this process?

Who supplies the information to the process?

Who uses the information?

Who receives the information?
Upstream
Process
(Suppliers
Or Customers)
Performers
of the
process
Information
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Downstream
Process
(Customers)
Process Measures and Calculation
Definition
Level 2 Process Detail

What are the process measures?

How are they used?

What are the specific measures for the individual
process activities?

What considerations does the process owner use
to judge the process?
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Process Measures and Calculation
Definition
Level 2 Process Detail

What process metrics and stats do you get from
other plants? What else would you like to get?

Do you feel the present process measures reflect,
accurately, the operation of the plant and its
production variances?

What process measures are monitored daily;
weekly; monthly; annually?
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Information Management Technical
Dimensions
Level 2 Process

What software (commercial, home grown) tools
are used for each activity?

control, monitoring, reporting, remediation

What hardware platforms are those software
pieces resident on (LAN, WAN, PC)?

If information is transmitted off-site, which
network is it done on?
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Information Management Technical
Dimensions
Level 2 Process

What volume and frequency of use is required of
the network?

Who supports the software in the plant?

Who supports the hardware in the plant?

What problems have been encountered in the
recent past with software or hardware?

How was the problem rectified and how well?
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Problems, Issues,and Changes Required
to current process
Level 2 Process

What problems exist with the process and where?

Where do most of the difficulties arise?

What are the impacts/consequences of these
problems?

When problems arise, how are they currently
resolved?

Who is responsible for resolving these problems?
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Problems, Issues,and Changes Required
to current process
Level 2 Process

Are the problems information related or
operationally related?

Can these problems be resolved by redefining the
process?

What improvements do you require for this
process? (enhancements)

What is the perceived benefits of the changes?
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Deployment (roles & responsibilities)
Level 2 Process

For each activity, what is the role of the
individuals involved

How is each person involved in the process
(RACI)

How much time is spent on each activity by each
person

Is the role and responsibility level suited to that
person’s skill level
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Level 3: Process Activity Sequence
Level 3 Process Detail

What are the activities (sequence) in each box of
the preceding level 1 diagram?

What is the elapsed time for the whole process:
where are there critical due dates?

Which are key activities; which are support
activities? (internal view)

Which processes are sequential and which are
parallel?
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Level 3: Process Activity Sequence
Level 3 Process Detail

Are there any checkpoints in the process - where?

How is failure mode evident in the process or at
critical activities?

What are the rework or failure correction
activities?

Which activities are valued added vs non value
added? (external view)
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Level 3: Activity Inputs, Processing and
Outputs
Level 3 Process Detail

For each of the activities,
What
are the inputs, procedures, and
outputs: who is involved?
Documentation
examples relevant to the
process areas
What
internal quality control mechanisms are
employed in these processes? (e.g. error
feedback)
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Level 3: Activity Inputs, Processing and
Outputs
Level 3 Process Detail

For each of the activities,

How long does one cycle take for each
phase - input, processing, output?

Who owns the process? (individual, group)

Is this the correct individual to own the
process? (i.e. suited to their skill level)
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Level 3: Decision Points or Audit
Controls
Level 3 Process Detail

What decisions are made in the process? (logic
of the decision is level 3)

Where are the key decision points made during
the process (level 2)?

Who has authority for making those decisions
(what, where, whom)?
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Level 3: Decision Points or Audit
Controls
Level 3 Process Detail

Is there data integrity provided in the process; if
yes how is it provided?

Are there audit control points in this process?

Who performs the audit process (and how
frequently)?

What is done with the audit information - is there
follow-up?
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Example Level 3: Maintenance Management
JOB PLANNING
PROCESS
1.
Work request
Maintenance
2.
Work request
outside maintenance
4.
Review Priority
& Scope
Sr. Supervisor
5.
Review request
Planner
3.
Work request
condition trigger
6.
Plan job including:labour,
materials, tools,
contracting
Planner
8.
Get appproval from
Maintenance Manager
No
7.
Job in budget?
Yes
9.
Create work order
Planner
10.
Parts/services
required?
Planner
Yes
11.
Parts in stock
Planner
No
No
13.
Work order
to backlog
Planner
12.
Order parts
Planner
Yes
5/1/01
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Product/ Process Activity
There are 4 activities the product can be engaged in
“World-class”
Transportation
<2%
Storage
< 18 %
Inspection
0
Processing
> 80 %
What are the barriers to adding value to the work sequence?
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Work Sequence Best Practices



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





Balance the Work Load Among Employees
Reduce the Walking Distances
Keep Only the Necessary Quantities of In-Process
Stock at the Work Station
Automate Machine Feed and Ejection
Change the Height, Angle or Location of the Part Racks
Change the Work Sequence
Use “Two-Handed” Work Where Possible
Reduce the Manual Adjustments Necessary to Make
Different Parts
Use Specialized Tools
Develop Countermeasures to Prevent Defects
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Work Sequence: Key Future State Questions

Demand
– Takt time ?

Material flow
– Where can we use one-piece flow ?
– Where can we use FIFO (first in- first out) ?
– Where do we have to use supermarket-based pull ?

Information Flow
– At what single point in production, can we do trigger production ?
– How much work do we release and take away ?
– How do we level the production mix ?

Supporting Improvement Initiatives
– What other process analysis techniques could we utilize?
e.g. - TPM (OEE,uptime), Poka-Yoke (mistake proofing), Changeover
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3 Elements of Standardized Operations
• Machine Utilization
• Work Sequence
• Standard Work-In-Process Stock
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Stocking Strategy Design Approach


The key to designing the “right” stocking strategy is
to understand…
– Demand Variability
– Customer lead time expectation
– Internal process flexibility (part location/value
considerations)
– Outside processing
– BOM level changes
– Distribution Centers – One to many/ many to one
– Generic to unique differentiation points
and then design to these
requirements/ constraints (examples follow…)
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Demand Variability
Because customer demand has variability,
we must buffer inventory to compensate.
demand profile
800
700
A D U = 2 7 1 /d a y
s/x = 1 .9 8
600
This chart shows an
“extreme” amount of
variability in demand,
but for many
companies this is not
“out of the ordinary”.
9 3 P IE C E B L O W M O L D M E C H TO O L S E T
1 1 P C .3 /8 D R 1 2 P T D P S K T S E T
400
300
200
A D U = 3 6 /d a y
s/x = 0 .8 4
100
4/4/97
3/26/97
3/19/97
3/4/97
3/10/97
2/28/97
2/24/97
2/20/97
2/16/97
2/8/97
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2/12/97
2/4/97
1/31/97
1/27/97
1/23/97
1/19/97
1/15/97
1/11/97
1/7/97
1/3/97
12/30/96
12/26/96
12/22/96
12/18/96
12/14/96
12/6/96
12/10/96
12/2/96
11/28/96
11/24/96
11/20/96
11/16/96
11/8/96
11/12/96
0
11/4/96
U n its /D a y
500
Supply Chain vs. Customer Window
Strategic
Buffer?
Purchasing
Order Entry
Strategic
Buffer?
Strategic
Buffer?
Manufacturing Cycle Time
Where is the Customer Window ?


Strategic
Buffer?
Shipping
Customer
We typically buffer finished goods when the marketplace
(customer) expects a shorter lead time than our process(es) can
deliver.
Stocking Strategy comes into play in understanding where and
what mix of “finished” goods to place in strategic buffers.
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Strategic Buffer Locations
Product Stocking Strategy Defined
 Customer


“sees” full process time
Fab time for spares, fab & assy for completes
Quick response (some lead time acceptable)
 Less

risk
Inventory is typically more flexible
(e.g. castings)
Procurement
 Customer
“sees” only the (short)
assembly time
 Good option for maintaining stock of
flexible components
 Pass through for high volume spares
 Moderate
risk for obsolescence
Assembly
Fabrication
Customer
 Customer


“sees” entire lead time (procure + process)
Low volume, custom orders
Slow response time


response (e.g., spares)
High volume, stable demand
Market requirement
 Highest
 Least

 Immediate
risk
Inventory is purchased for a specific order
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risk for obsolescence, etc.
Strategic Buffer Locations
Inflexible to Flexible Processes
A



B
WCT A > WCT B
Value at B >> Value at A
Flexibility of Inventory of A vs B
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Strategic Buffer Locations
Flexible to Inflexible Processes
Process
A


Process
B
WCT A < WCT B
The larger batch requirements for loop B
make an intermediate buffer unattractive
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Strategic Buffer Locations
Outside Processing
In-House Operations
Strategic
Buffer
Outside
Processing
Buffers against vendor uncertainties / deficiencies
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BOM Level Changes /
Differentiation Points
Component a
Component b
Final Assembly
Component c
Component d
Strategic
Buffer


Major assembly points may be good
strategic buffer locations
Component parts are typically flexible,
while assembly may make parts unique
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Distribution Centers
One to Many

One facility supplying multiple Distribution Centers
(DCs)
DC
Min Ship (min SS)
Cycle
Stock
Safety Stock
DC
Min Ship (min SS)
DC
Min Ship (min SS)


Unless DC to DC transfers make sense, cycle
stock and safety stock should remain at
common location
Minimizes distribution inventory by taking
advantage of volume smoothing
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Customer
Distribution Centers
Many One


Multiple facilities supplying a single Distribution
Center (DC)
Since the destination is a constant, storing cycle
stock at the DC should allow a reduction in the
safety stock level
DC
Safety Stock + Min Ship
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Distribution Centers
Many to Many

Multiple facilities supplying multiple Distribution
Centers (DCs)
Cycle
Stock
DC
Safety Stock + Min Ship
DC
Safety Stock + Min Ship
Cycle
Stock
DC
Safety Stock + Min Ship
Cycle
Stock
Effectively works the same as one to many
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Stocking Strategy Best Practices






Gather data and review to understand current market
lead time expectations
Gather data to understand customer expectations by
product / segment
Gather data and review to understand current ability
to meet market and customer expectations
Perform product rationalization on existing products
Perform 80/20 analysis (Pareto) on products to
understand what is shipped and when
Develop stocking strategy by product group/ line to
meet market and customer expectations
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Standardized WIP Stock – ‘Supermarket’
example
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Supermarket Pull System
Following processes go to preceding processes
and withdraw what they need when they need it.
Preceding processes produce what is taken away.
Supplying
Process
“PRODUCTION”
Kanban
Store
New
Product
“WITHDRAWAL”
“Customer”
Kanban
Process
Withdrawn
Product
Purpose:
- A way to control production between flows
- Gives production instruction without schedules
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In summary, Standardization is ...
The Most Efficient Way to Manufacture Products
Without Waste by Seeking the Best Combination of
Human Work With That of Machine.
‘Auditing’ for Standardization Means That:
• Operators Do the Same Sequence of Work Each Time.
• Operation Methods Are Thoroughly Documented and
Located Near the Work Station.
• Operators Use the Same Proper Tools and Machines.
• Material Is Stored in the same place Each Day.
• Among others … (Audits should be part of a
Continuous Improvement Plan)
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Audit Form - example
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Standardized Operations Best Practices

Only make a component or sub-assembly when
it is needed at the next step (Just-in-Time)

Eliminate process disturbances - smooth flow

Capture and correct defects at the source
(Jidoka) and find permanent corrections
utilizing Root Cause Analysis (RCA) techniques

Standardize process and methods to reduce
defects

Maximize Employee Involvement to help solve
problems and improve processes
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Best Practices continued …
 Operators do the same sequence of work each time
 Material handling people should make the pick-ups
and deliveries on a pre-determined schedule

Operation methods are thoroughly documented and
posted by the workstation



Standard tools and machines

The detailed movements of the human body are
consistent each time
Material is stored in the same place each day
Information is presented in the same way in all
sections of the plant
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Application Exercise (Optional)
Examine the ideas and questions in each of the 3
areas covered within this module (Machine
Utilization, Work Sequencing, and WIP Stocking
Strategies) –
• Develop a Standardized operation / process
within your Area, Office or Department and a way
to Audit
• Explore ideas with colleagues
• Implement at least one of the ideas
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The Lean Enterprise
Standardized Operations/ Standard Work
Lean Foundations
Continuous Improvement Training