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Lean Manufacturing

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Title: Lean Manufacturing


1
Lean Manufacturing
  • Erika Martinez
  • Roger Garcia

2
What is Lean Manufacturing?
  • Work in every facet of the value stream by
  • Eliminating waste ? to reduce cost
  • Maximizing or fully utilizing activities that add
    value from the customers perspective
  • Generate capital
  • Bring in more sales
  • Remain competitive in a growing global market
  • The value stream, defined as the specific
    activities within a supply chain required to
    design, order and provide a specific product or
    value

3
What is Lean Manufacturing?
  • Lean focuses on abolishing or reducing wastes
    (muda) and on maximizing or fully utilizing
    activities that add value from the customers
    perspective.
  • Value is equivalent to anything that the customer
    is willing to pay for in a product or the service
    that follows

4
The Seven Wastes in Manufacturing
  • Over Production ? Producing more material than is
    needed before it is needed
  • Inventories ? Take space, costs and can be
    damaged
  • Producing Defective Products ? Impede flow and
    lead to wasteful handling, time and effort
  • Motion ? excessive bending or stretching and
    frequently lost items

5
The Seven Wastes in Manufacturing
  • Processing ? Extra processing not essential to
    value - added
  • Transportation ? Moving material does not enhance
    the value of the product to the customer
  • Waiting ? Material waiting is not material
    flowing through value-added operations

6
Lean Manufacturing Tools and Techniques
  • Cellular Manufacturing
  • Arrangement of people, machines, materials, and
    methods with the processing steps placed right
    next to each other in sequential order, through
    which parts are processed in a continuous flow

7
Continuous Improvement
  • Kaizen is a systematic approach to gradual,
    orderly, continuous improvement.
  • One of the most effective tools of continuous
    improvement is 5S ? modular step toward serious
    waste reduction
  • Seiri (Sort) ? Eliminating unnecessary items from
    the workplace
  • Seiton (Straighten) ? Focused on efficient and
    effective storage methods
  • Seiso (Sweep and Clean)? clean the work area
  • Seiketsu (Systemize) ? standardizing best
    practice in your work area
  • Shitsuke (Standardize) ? defining a new status
    quo and standard of work place organization

8
Just in Time
  • Management idea that attempts to eliminate
    sources of manufacturing waste by producing the
    right part in the right place at the right time

9
Getting Started with Lean
  • The first step in value stream mapping is to
    choose a product family as the target for
    improvement ? products group by similar sequence
    of final processing steps and machines
  • Draw a current state map to take a quick view of
    how things are being done now ? shipping
    department, and then working ones way up to the
    upstream processes
  • Create the future state map ? highlight the
    sources of waste and help make target areas for
    improvement visible

10
Getting Started
  • Creating a future state map is done through
    answering a set of questions with regards to
    issues related to building of the future state
    map, and technical implementation related to the
    use of lean tools.

11
Do you have the Right end Items?
Assign right products to the pacemaker process
  • If demand gyrates between products and you can
    keep changeover times short ? share products
    between mix- model cell
  • Products AB
  • Flexibility
  • Product A Product B

Demand high enough to allow you to dedicate
individual products so their own cells or lines
12
What is the Takt Time?
  • Reference number that is used to help match the
    rate of production in a pacemaker process to the
    rate of sales
  • Demand per production shift

13
Cycle Time
  • How frequently a finished unit actually comes off
    the end of the pacemaker
  • Cycling much faster than takt may require more
    people

14
Setting the pace
  • Takt time is customer demand (which can not be
    changed) divided into available production time
    (which can be changed)
  • The available production time ? or length of
    shifts
  • The number of end items produced in a cell
  • The number of cells making a particular end item

15
What are the Work Elements for Making one Piece?
  • Work Element ? The smallest increment of work
    that could be moved to another person
  • Always break work into elements. It would help
    identify and eliminate waste that is otherwise
    buried within the total operator cycle
  • Paper Kaizen ? Elimination of waste!
  • What not to include as work element
  • Walking
  • Out-of-cycle work for operators
  • Operators waiting for machines to cycle
  • Time for removing finished parts from machines
    wherever an automatic eject could be introduced

16
What is the Actual Time Required for Each Work
Element?
  • It is needed to go to the workplace and use stop
    watches
  • Collect real times at the process
  • Position yourself so you can see the operators
    hand motions
  • Time each work element separately
  • Time several cycles of each work element
  • Observe an operator who is qualified to perform
    the job
  • Always separate operator time and machine time
  • Select the lowest repeatable time for each
    element
  • Remember shop floor courtesy!

17
5. Can your Equipment Meet Takt Time?
  • Each machine must be able to complete its cycle
    on each part within takt time
  • The effective cycle time of each machine should
    be considerably less than takt time if continuous
    flow is to be achieved
  • Effective machine cycle time

18
How much Automation?
Levels of Automation
19
How can the physical process be laid out so one
person can make one piece as efficiently as
possible?
  • Arrange the machines, workstations, and material
    presentation devices as if only one operator
    makes the product from beginning to end
  • Avoids isolated islands of activity
  • Minimizes inventory accumulation between
    processes
  • Eliminates excessive walking
  • Removes obstacles in walking paths
  • Brings the people-driven, value-creating steps as
    close to one another as possible

20
How many operators are needed to meet Takt Time?
Guidelines for determine the number of operator
in a cell
21
How will you distribute the work among the
operators?
  • Some approaches to consider
  • Split the work
  • The circuit
  • Reverse flow
  • Combinations
  • One-Operator-per-Station
  • The Ratchet

22
Split the Work
  • Split the Work among operators so each performs
    one takt time worth of the total work content,
    often moving between several machines

23
Circuit work distribution
  • The Circuit ? One operator performs all the work
    elements to make a complete circuit of the cell
    in the direction of material flow. A second
    operator follows a few stations behind

1
2
Return walking distance
24
Reverse Flow
  • Reverse Flow ? The operators make a circuit in
    the reverse direction of the material flow

Part holding positions
Finished product
Machine 3
Machine 2
Material flow
Machine 1
Operator flow
Raw material
25
Combination work distribution
  • Combinations of splitting the work and a circuit
    or reverse flow

Raw material
3
2
1
(circuit portion)
Finished product
26
One-Operator-per-Station Distribution
  • One-operator-per-Station ? Each operator stays at
    one workstation

Empty station for volume increase
Material flow
1
2
3
4
27
The Ratchet
  • The Ratchet ? Each operator works two machines
    and ratchets the work piece ahead each time the
    operator moves to a downstream machine
  • Work station responsibility in the Ratchet
  • Operator 1 Workstation AB Operation 3
    Workstation CD
  • Operator 2 Workstation BC Operation 4
    Workstation DE

28
How will you schedule the pacemaker?
  • Both must be part of the cell design process
  • In order to maintain continuous flow and a lean
    value stream ?Schedule and operate a cell
  • Leveling the volume of work
  • Decide the most appropriate batch sizes to run
    before changing over to another product type
  • Leveling the product mix

29
How will the pacemaker react to changes in
Customer Demand?
  • Absorb day-to-day customer fluctuations with a
    finished goods supermarket
  • Run a little overtime each shift ? It is better
    than to stop production a little early because
    operator productivity stays high
  • Toggle the number of operators

30
Comparison between "traditional" and "Lean"
manufacturing
Area Traditional Manufacturing Lean Manufacturing
Scheduling Forecast - push Customer Order - pull
Production Stock Customer Order
Lead Time Long Short
Batch Size Large - Batch Queue Small - Continuous Flow
Inspection Sampling 100 - Source
Layout Functional Product Flow
Empowerment Low High
Inventory Turns Low - lt7 turns High - 10
Flexibility Low High
COGS (Cost of good sold) High and Rising Lower and Decreasing
Lean manufacturing is not only a project or
program. It is way of thinking.
31
Lean manufacturing is not only a project or
program. It is way of thinking.
32
Integrating Lean and Six Sigma
  • Six Sigma is focused on reducing variation and
    improving process yield by following a
    problem-solving approach using statistical tools.
  • Lean is primarily concerned with eliminating
    waste and improving flow by following the Lean
    principles and a defined approach to implement
    each of these principles.
  • In fact these two processes are incredibly
    similar in their goals, methods, and
    applications.
  • Both the Lean and the Six Sigma methodologies
    have proven over the last twenty years that it is
    possible to achieve dramatic improvements in
    cost, quality, and time by focusing on process
    performance.

33
Integrating Lean and Six Sigma
  • The impressive results companies such as Toyota,
    General Electric, Motorola, and many others have
    accomplished using either one of them have
    inspired many other firms to follow their
    example. As a result, most companies have either
    a Lean or Six Sigma program in place.
  • However, using either one of them alone has
    limitations
  • Six Sigma will eliminate defects but it will not
    address the question of how to optimize process
    flow
  • and the Lean principles exclude the advanced
    statistical tools often required to achieve the
    process capabilities needed to be truly 'lean'.
  • While each approach can result in dramatic
    improvement, utilizing both methods
    simultaneously holds the promise of being able to
    address all types of process problems with the
    most appropriate toolkit. For example, inventory
    reduction not only requires reducing batch sizes
    and linking operations by using Lean, but also
    minimizing process variation by utilizing Six
    Sigma tools.

34
Comparing Lean And Six Sigma
Comparing Lean Six Sigma
 
  Lean Six Sigma
Goal Create flow and eliminate waste Improve process capability and eliminate variation
Application Primarily manufacturing processes All business processes
Approach Teaching principles and "cookbook style" implementation based on best practice Teaching a generic problem-solving approach relying on statistics
Project Selection Driven by Value Stream Map Various approaches
Length Of Projects 1 week to 4 months 2 to 6 months
Infrastructure Mostly ad-hoc, no or little formal training Dedicated resources, broad-based training
Training Learning by doing Learning by doing
 Table 1 Comparing Lean And Six Sigma
35
Differences to be considered between Lean and Six
Sigma.
  • Lean projects are very tangible, visible, and can
    oftentimes be completed within a few days
    (whereas Six Sigma projects typically require a
    few months). An integrated approach should
    emphasize Lean projects during the initial phase
    of the deployment to increase momentum.

36
Differences to be considered between Lean and Six
Sigma.
  • Lean emphasizes broad principles coupled with
    practical recommendations to achieve
    improvements. For example, Lean suggests a
    technique to analyze and reduce changeover time
    that does not require sophisticated analysis and
    tools. However, Lean principles are oftentimes
    inadequate to solve some of the more complicated
    problems that require advanced analysis.
    Therefore, Six Sigma needs to be introduced
    during the first year of the deployment to ensure
    that the improvement roadmap includes a generic
    problem-solving approach.

37
Differences to be considered between Lean and Six
Sigma.
  • An integrated improvement program needs to be
    fueled by a vision of the future state and by a
    pipeline of specific projects that will help
    close the gap between current and future state.
    Lean introduced Value Stream Mapping as the
    central tool to identify the gaps and to develop
    a list of projects that can be tackled using Lean
    or Six Sigma methodology.

38
Differences to be considered between Lean and Six
Sigma.
  • Whereas the Six Sigma process and tools can be
    applied to virtually every process and industry,
    the Lean approach is much more specific and the
    content needs to be adjusted to industry needs
    For example, reducing set-up time in a plant that
    has lines dedicated to a single product is
    pointless. Therefore, the Lean curriculum needs
    to be adjusted to meet the needs of the specific
    business.
  • The following roadmap provides an example for how
    one could approach the integration of Lean and
    Six Sigma into a comprehensive roadmap.

39
Integrating Lean and Six Sigma Roadmap
40
Lean Sigma-DMAIC integration model
  • LeanTime VariabilityIncrease SpeedEliminate
    WasteQuick Fix Solutions
  • Six SigmaProcess VariabilityImprove
    QualityIncrease YieldRoot Cause Solutions

41
Benefits of Lean Six Sigma
  • It can be applied across various sectors of
    industry - While it is true that lean thinking
    first began as an approach in the manufacturing
    sector, these days Lean Six Sigma is being
    successfully implemented in industries across the
    board. It is no longer accurate to say that Lean
    Six Sigma is only for manufacturing companies.
  • Immediate functional improvements from the
    implementation of Lean Six Sigma - You will see
    reduced production times and costs much faster
    than you anticipate. The main reason for this
    quick improvement is the implementation of
    several different tools including kaizen (a
    method to continuously analyze and improve
    processes), kanban (which assists with
    production), and poke yoke (which works to
    eliminate mistakes).

42
Benefits of Lean Six Sigma
  • Ease of execution - Lean Six Sigma is a powerful
    tool for transforming corporations, in part
    because of its ability to create links between
    strategic priorities and operational
    improvements. The goals set by a corporations
    top management personnel are the strategic
    priorities. They usually focus on improved
    customer experiences and higher returns on
    investment.
  • Sustainable management capability - Lean Six
    Sigma is intricately woven into every aspect of
    the businesses, making it very sustainable for
    everyone, from corporate managers down the
    workers on the floor. The quick results that are
    obtained from implementing the process are the
    key to its sustainability.

43
Benefits of Lean Six Sigma
  • Increased value for consumers - Real tangible
    value is created for consumers with the
    implementation of Lean Manufacturing and Six
    Sigma. Reduced costs and the improved quality of
    products are just two of the benefits that
    consumers of your products or services will
    enjoy. Most corporation implement Lean Six Sigma
    for one simple reason, it improves the bottom
    line of the corporation.

44
THANKS,
  • END
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