Transcript Lean for Process Manufacturing

QAD Midwest User Group Meeting
Lean for Process Manufacturing
Stephen Dombroski – September 2011
Agenda
• Overview of Lean Principles
• Specific Features of the Process industries
• Identifying Wastes in Process Industries
• Applying Lean Tools in Process Manufacturing
• QAD Tools for Lean in Manufacturing
Overview of Lean Principles
Overview of Lean Principles
• Origin
- Derived from the Toyota Production System (TPS)
focused on minimizing waste in the production
process
• Fundamentals
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Best Quality
Lowest Cost
Shortest Lead Time
Minimize Waste through the Production Process
• Traditionally Applied to Discrete Manufacturing
Overview of Lean Principles
TPS House
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Overview of Lean Principles
• TPS House
• Two Essential “Pillars”
- Just in Time
- “Jikoda” – Quality
• House Center
- Motivated People
• Foundation
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Heijunka – Level Production
Standardized Work – Definition of Specific Tasks
Kaizen – Continuous Improvement
Stability – Stable Environment
Overview of Lean Principles
• The Essence of Lean
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Elimination of all Waste
Continuous Improvement
Produce when a customer wants it
Ensuring Quality
• Major Principles
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Value
Value Stream
Flow
Pull
Perfection
Overview of Lean Principles
• Lean Today
- What is Lean Today?
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A Concept?
A Philosophy?
A Practice?
A Process?
• Answer: All of the Above
- Many ideas and philosophies and how to get
there.
Process Industries – Specific Features
Process Industries – What are They?
• Industries Categorized as Types
- Discrete – Typically Assembly Manufacturing
• Finished product can be broken down to the original
parts
- Automotive
- Electronics
- Tools
- Process – Flow Production, Reactive Production
consisting of formulas and recipes
• Once it is put together, you cannot take it apart
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Processed Foods
Beverages
Chemicals
Paper Products
Process Versus Discrete Manufacturing
Industry
Discrete Manufacturing
Process Manufacturing
Examples
Automotive
Chemicals
Electronics
Paints
Power Tools
Processed Foods
Industrial Equipment
Beverages
Home Appliances
Paper and Plastic
Many Raw Materials
Few Raw Materials
Part Variety
Material Variety
Little Final Differentiation
High Final Differentiation
Waste
Cycle Time and Waste
Over Production
Over Production
Defects
Yield Losses
Lot Size of One
Lot Sized Based On Equipment
Labor Productivity
Asset Productivity
Inventory Reduction
Inventory Reduction
Process Flow Model
Primary Focus
Primary Economic Drivers
Increased Throughput
Reduction in Yield Losses
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Process Versus Discrete Manufacturing
Industry
Discrete Manufacturing
Process Manufacturing
Primary Production Factor
Labor
Equipment
Setup, Changeover Processes
Machine Setup
Time to Clean Process Vessels
Tool Availability
Time for Temperature Stabilization
Time for Pressures to Equilibrate
Tools
Value Stream Mapping
Supply Chain Mapping
Standard Work
Value Stream Mapping
Poka-Yoke
Poka-Yoke
SMED
SMED
Cell Manufacturing
Product Wheels
5S
5S
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Process Industries – Key Characteristics
• Dynamics of Process Manufacturing
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Volume and Variety
Capital (Equipment ) Versus Labor
Processes are Difficult to Stop and Start
Setups and Changeovers are Complex
Inventory Focus – Finished Product versus WIP
Inventory Accessibility (Hidden WIP)
Material Flow Patterns Production Process
• Flow patterns are reversed between process and
discrete
Simple Process Industry Diagram
Finished Products
Packaging
Processing 2
Processing 1
Raw Materials
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Summary – Key Characteristics of Process Industries
• Typically Fewer Raw Materials
• Dependent on Raw Natural Resources
• Equipment Typically Much Larger
• Equipment a Higher Impact on the Process
• High Degree of Product Differentiation
• Process Step based not Work Center based
Identifying Wastes in Process Industries
Identifying Wastes in Manufacturing
• Waste is the Major Principle of Lean and TPS
- Identifying and eliminating waste is the key to
raising productivity.
• Waste with Relationship to Costs
- Equating Waste with Customer Value
- Categorizing Waste
• People
• Material
• Time
Identifying Wastes in Manufacturing
• Categories of Waste
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Waste of Overproduction
Transportation Waste
Waste of Time (Waiting Periods)
Processing Waste
Waste of Inventory
Waste of Movement
Wasted of Defective Material, Yield Loss
Categories of Waste
• Overproduction - Making more product than
demand requires
- Batch Size or Campaign Size Practices
- Process Variations
• Transportation - All movement of materials within
the manufacturing operation
- Disconnected Material Flow
- Specialty Storage Areas
- Facility Design
Categories of Waste
• Time (Waiting Periods) – Time waiting for
material to arrive
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Material Delivery
Curing/Hold Time
Inspection Time
Start Up Time
Categories of Waste
• Processing – Wastes in the Process
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Processing necessary to identify potential issues
Inspection
Testing
Laboratory Operations
Rework Operations
• Inventory – Technically all in-process inventory is
waste
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Minimize excess amounts
Synchronizing production steps
Rate Synchronizations
Bottleneck Issues
Leftover Material – Heels
Campaign Sizes
Categories of Waste
• Movement – People Movement, moving
from station to station
- Time to move through the facility
- Operators moving from step to step
• Defect Material, Yield Loss – Out of spec
materials to process or customer standards
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Wrong Thickness
Incorrect Potencies
Fat Content
Quality Defects
Summary - Identifying Wastes in Process Manufacturing
• Major Lean Principle is Waste
- Identifying and Eliminating Waste Key to Successful
Lean Practices
- Wastes can be detected in both discrete and
process environments
• Wastes Can be Segmented into Categories
• Waste is anything that can be measured by value
• Value is also Categorized
- Value to the Business
- Value to the Customer
Applying the Lean Tools in Process Manufacturing
Lean is a Concept, Practice and Philosophy
• There are a Variety of Tools or Practices to
enable the Lean Concept
• Traditionally, Lean focused on Discrete
Production
• Most of the Traditional Lean Tools can be
Applied to Process Manufacturing
Lean Tools for Process
• The Traditional Lean Tools are:
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Mapping of your processes
Time Management
Continuous Improvement
Organization
Quality
Minimizing Errors
Problem Solving
Lean Tools for Process
• Value Stream Mapping – Visual Diagram
- Process Steps
- Flow of Materials, Activities and Time for Each Step
Lean Tools for Process
• Takt Time
- Time Mapping
- Time interval in which each process step must be completed
to meet customer demand
- Processing Time
- Hold/Quality Time
• Kaizen
- Japanese term for continuous improvement
- Process of constantly looking for improvements in processes
- Kaizen is a philosophy
Lean Tools for Process
• 5S – Five Step Process for organizing all areas of the workplace
Lean Tools for Process
• Jidoka
- One of the two Pillars
- Philosophy of Quality
- If a Quality Issue is detected, activities stop until it is
resolved
Lean Tools for Process
• SMED – Single Minute Exchange of Dies
- Philosophy of analyzing all steps to a changeover, setups
- Minimize Time and Material Waste
- Decreasing changeover time
• Poka-Yoke
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Techniques for minimizing mistakes
Prevention of defective products, bad yields
Prevent equipment from being setup incorrectly
Sensors
Color Coding
Lean Tools for Process
• Five Whys – Always ask Why?
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Philosophy of asking questions to solving a problem
Continue to ask questions
How did a problem occur?
Questions about the solutions so it is a sound solution
• Standard Work
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Specific tasks to be performed in each production step
Operational sequence
Timing
Referred to as “SOP”s, Standard Operating Procedures
Lean Tools for Process
• TPM – Total Productive Maintenance
- Practices of improving how is equipment is operated and
maintained
Lean Tools for Process
• Cellular Manufacturing
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Dividing the process into families that require similar steps
Improves Quality
Reduces Changeovers
Reduces Variability
Improves Throughput
• Heijunka
- Production Leveling or Production Smoothing
- Load Leveling
- Product Wheel
• Kanban
- Process for visually signaling what is needed
- What needs to be produced to replace what the customer has
purchased
Lean Tools for Process
• Just-In-Time
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One of the two Pillars
Make What is Needed
Make it When it is Needed
Make the Exact Quantity Needed
Summary - Lean Tools for Process Manufacturing
• Lean Tools focus on:
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Minimizing Waste
Minimizing Mistakes
Maximizing Utilization
Cost Effectiveness
Better Service to the Customer
Empowering Team Members
• These can be applied to any type of operation
• In Essence: Common Sense Business Practices
QAD Lean Manufacturing
QAD Lean Manufacturing
• Supports Kanban and flow scheduling
• Enables tight inventory management
• Provides complete functionality to establish
and execute Kanban processes
• Integrated visualization tool
• Most evolved suite of tools
• Uses the Power of QAD .NET
Kanban Master Maintenance
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Buffer/Supermarket Data Identifies Details of Buffer Stock Calculations
Kanban Process Workbench
Push
Pull
Plant Operations Challenges
In many cases, organizations have not integrated Plant
Operations into production business processes
Production
Planning &
Scheduling
Plant
Operations
Sales &
Order Entry
Shipping &
Receiving
Engineering
Services
Manufacturing
Process
Direct
Materials
Quality
Assurance
Production
Operators
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The Goal
Align plant Operation with production’s goals and objectives
Production
Planning &
Scheduling
Shipping &
Receiving
Engineering
Services
Plant
Operations
Manufacturing
Process
Direct
Materials
Sales &
Order Entry
Quality
Assurance
Production
Operators
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Values of QAD Lean Manufacturing
• Increases on-time delivery performance and
responsiveness to customer needs
• Improves customer satisfaction by allowing
for better fulfillment strategies
• Build to actual demand rather than making
stock
• Reduces working capital by reductions in
inventory
Midwest User Group Meeting
Conclusion
Summary - Lean for Process Manufacturing
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Lean Principles
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Process Industries Differentiators
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Improve Quality
Adding Value
QAD Lean Manufacturing
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Eliminating anything that decreases value
Lean Tools for Process
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Capital vs. Labor
Wastes in Process Industries
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JIT
Quality
Build to actual demand
Inventory Management
Lean is a Practice
Questions
Midwest User Group Meeting
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