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Lean Manufacturing

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Act How to improve next time? The PDCA Cycle. Lean Manufacturing. Value Chains/Streams ... Human Factors. What Makes an Effective Program? ... – PowerPoint PPT presentation

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Title: Lean Manufacturing


1
Lean Manufacturing
Manufacturing - Making It 8th November 2006
Peter Skamperle
2

Lean Manufacturing
What is Lean?
3

Lean Manufacturing
  • Lean is ?
  • Eliminating waste
  • Reducing costs
  • Shorter lead times
  • Understanding what is important to your customer

Average people managing brilliant processes to
achieve exceptional results.
4
Lean Manufacturing
Lean History William Edwards Deming Joseph
M. Juran Toyota Production System
5
Lean Manufacturing
Lean Defined A systematic approach to
identifying and eliminating waste
(non-value-added activities) through continuous
improvement by flowing the product at the pull of
the customer in pursuit of perfection
6

Lean Manufacturing
Organisation Chart
Management
Engineering
Team Leaders
2
1
Customer (External)
Production/Service
Internal customer/supplier relationships
7
Lean Manufacturing
  • Lean Tools
  • Muda (waste identification) - an activity that
    consumes resources and creates no value.
  • 5S Visual Workplace - a technique used to
    establish and maintain a safe, orderly and clean
    workplace. The basis of a competitive environment
    providing visual indicators and information in
    the work area and achieved with 5S disciplines.
  • Kaizen - continuous, incremental improvement of
    an activity to eliminate waste
  • Value Chain/Stream - the specific activities
    required to design, order, and provide a specific
    product.

8
Lean Manufacturing
  • Lean Tools
  • Just-in-time - a system for producing and
    delivering the right items at the right time in
    the right amount.
  • Kanban - a system to regulate the pull of
    products by signalling upstream production and
    delivery.
  • Poka-yoke - a mistake-proofing device or process
    to prevent a defect occurring during manufacture.
  • Six Sigma provides an emphasis on statistical
    techniques to isolate and quantify variations in
    process or product performance.
  • Standard Work is a system for standardising the
    work procedures developed through competitive
    manufacturing.

9
Barriers to Lean
Lean Manufacturing
  • Implementing Lean can be difficult because it is
    counterintuitive from a traditional paradigm
  • Shutting down equipment when there is no true
    customer demand
  • Using work instructions/standards as platforms to
    continuous improvements
  • Gaining top Management Buy In and support

10
Progress toward Lean
Lean Manufacturing
  • Smaller lot sizes
  • More available floor space
  • Improved workplace organisation
  • Improved quality reduced scrap / re-work
  • Reduced inventories raw, WIP, FG
  • Reduced lead times
  • Improved participation morale

11
7 Types of Waste (Muda)
12
Lean Manufacturing
  • 1. Waste (Muda) of Waiting
  • Whenever any employee is waiting for something,
    it is costing the company money.
  • Unbalanced work load
  • Unplanned maintenance
  • Quality problems leading to uncertain activities

13
Lean Manufacturing
  • 2. Waste (Muda) of Inventory
  • Inventory waste comes in the form of raw
    material work in process, and stored finished
    goods.
  • Inventory has a chance to become obsolete. It
    takes up space and potentially causes inefficient
    operation.

14
Lean Manufacturing
  • 3. Waste (Muda) of Transportation
  • Unnecessary movement of product through the
    plant. Going to one area and being put onto a
    shelf and then being picked up and moved to
    another area for processing.
  • Mapping the flow of product helps identify some
    of the transportation waste, as the movement of
    product often requires transportation.

15
Lean Manufacturing
  • 4. Waste (Muda) of Overproduction
  • If there is a lack of faith in the process to
    provide 100 yield we tend to produce more than
    what is necessary to compensate.
  • Producing to unreliable schedules and forecasts
    may lead to overproduction.
  • This leads to waste of
  • Material
  • Labour
  • Equipment
  • due to non-required product

16
Lean Manufacturing
  • 5. Waste (Muda) of Over Processing
  • Occurs in many industries when there is
    insufficient knowledge and understanding of a
    customers true needs.
  • Over processing adds more value or costs to the
    product than the customer wants, needs, or is
    willing to pay for.
  • This could be in the form of raw materials,
    processes or packaging.

17
Lean Manufacturing
  • 6. Waste (Muda) of Intelligence
  • When we do not involve everyone in the business
    for improvement activities.
  • Operators often have years of experience and know
    what could be done to improve the business, but
    often are never involved.
  • Lean Manufacturing implementation is most
    successful when everyone is involved in the
    business improvement activities.

18
Lean Manufacturing
  • 7. Waste (Muda) of Motion
  • This could be when someone has to go looking for
    tools, fixtures or information.
  • Could be a result of poor production layout.
  • Poor Housekeeping
  • Inconsistent work methods

19
5S Visual Control
20
5 Elements of 5S
Lean Manufacturing
  • Sort
  • Shape
  • Shine
  • Standardise
  • Sustain

21
The Bad and the Ugly
Lean Manufacturing
22
The Good After 5S
Lean Manufacturing
23
Sort
Lean Manufacturing
  • When in doubt, move it out
  • Red Tag program

24
Shape
Lean Manufacturing
  • Make it obvious where things belong
  • Lines
  • Labels
  • Color coding
  • Signs

25
Shine
Lean Manufacturing
  • Clean everything, inside and out
  • Prevent dirt, and contamination from reoccurring
  • Results in
  • Fewer breakdowns
  • Greater safety
  • Improved quality
  • More satisfying work environment.

26
Standardise
Lean Manufacturing
  • Establish guidelines for the team 5S conditions
  • Make the standards and 5S guidelines visual
  • Maintain and monitor those conditions.

27
Sustain
Lean Manufacturing
  • Determine the methods your team will use to
    maintain adherence to the standards
  • 5S communication board
  • Visual standards and procedures
  • Daily 5 minute 5S activities/meetings
  • Weekly/Monthly 5S audits.

28
Kaizen
29
What is Kaizen?
Lean Manufacturing
  • Kaizen (Kyzen)
  • Kai means change
  • zen means good (for the better)
  • Gradual, orderly, and continuous improvement
  • Ongoing improvement involving everyone.

30
Kaizen or Innovation?
Lean Manufacturing
31
How to Kaizen
Lean Manufacturing
The PDCA Cycle
Plan What to do? How to do it? Do Do what
was planned Check Did it happen according to
plan? Act How to improve next time?
32
Value Chains/Streams
33
Value Chain
Lean Manufacturing
  • Details the importance of the link between
    information and material flow
  • Shows all activities, both value added and
    non-value added that are currently performed to
    provide a product or service.
  • Is a tool that can be used as a platform for
    future development
  • It aids in the identification of waste

34
Lean Manufacturing
Value Chain
  • Value added Transforms raw materials,
    components and information into parts and
    products.
  • Non-value added Consumes resources but does not
    contribute directly to the production of
    materials or product.
  • Some non-valued added activity is necessary
    waste (NVA-R)
  • Regulatory
  • Legal.

35
Lean Manufacturing
  • Value Chain value adding and non-value adding

Scrap
Scrap
Purchasing
Rework?
Rework?
Shortages?
Sales Order
Material Issued
Packing Area
Planning
Production 1st Stage
Production 2nd Stage
Dispatch
Insp
Insp
Capacity? Delivery Date?
36
Lean Manufacturing
  • Value Chain value adding and non-value adding

NV
NV
NV
Scrap
Scrap
Purchasing
Rework?
Rework?
Shortages?
NV
NV
NV
Sales Order
Material Issued
Packing Area
Planning
Production 1st Stage
Production 2nd Stage
Dispatch
Insp
Insp
NV
NV
NV
Capacity? Delivery Date?
NV
37
Lean Manufacturing
  • Typical Value-added of Lead Time

Value-added activities 5
Non-value added activities 95
38
Pull Manufacturing
39
Inventory Hides Problems
Lean Manufacturing

40
Lowering Inventory Reveals Problems
Lean Manufacturing
  • Accommodate lower inventory levels by
  • Reducing variability
  • Eliminating waste
  • Streamlining production and material flows
  • Accurate information

41
Objective of JIT
Lean Manufacturing
  • Produce only the products the customer wants
  • Produce products only at the rate that the
    customer wants them
  • Produce with perfect quality
  • Produce with minimum lead time
  • Produce products with only those features the
    customer wants

42
Kanban
Lean Manufacturing
  • Japanese word for card
  • Authorises production from downstream operations
    based on physical consumption
  • May be a card, flag, verbal signal, etc.
  • Kanban quantities are a function of lead-time and
    consumption rate of the item being replenished

43
Lean Manufacturing
Production Schedule
Leveled assembly instructions
A
C
A
Fab
Vendor
B
A
Fab
Vendor
Final Assy
Customers
Fab
Vendor
Vendor
Fab
Vendor
....
44
Mistake Proofing(Poka Yoke and Error Proofing)
45
What is Mistake Proofing?
Lean Manufacturing
  • The use of process or design features to prevent
    errors or their negative impact.
  • Also known as Poka yoke, Japanese slang for
    avoiding inadvertent errors which was
    formalised by Shigeo Shingo.

46
Everyday Example
Lean Manufacturing
Fueling area of car has three error-proofing
devices 1. filler tube keeps leaded fuel
nozzle from being inserted 2. tether
does not allow loss of petrol cap 3.
petrol cap has ratchet to signal proper
tightness and prevent overtightening.
47
Lean Manufacturing
3 Rules of POKA YOKE
  • Dont wait for the perfect POKA YOKE
  • ..Do it now
  • If your POKA YOKE idea has a better
  • than 50 chance to succeedDo it
  • Do it now . Improve later

48
Six Sigma
49
What is Six Sigma?
Lean Manufacturing
  • A Vision and Philosophical commitment to our
    consumers to offer the highest quality, lowest
    cost products
  • A Metric that demonstrates quality levels at
    99.9997 performance for products and processs
  • A practical application of statistical Tools and
    Methods to help us measure, analyse, improve, and
    control our process

50
Phases of Six Sigma
Lean Manufacturing
  • Define
  • Measure
  • Analyse / Evaluate
  • Improve
  • Control
  • Performed using Green Belts, Black Belts
    Master Black Belts

51
Measuring Performance
52
Graphs, Charts Diagrams
Lean Manufacturing
  • Graphs, charts diagrams can be used to
    visually represent data to communicate
    information.     
  •  
  • Sales figures
  • Lost time incidents
  • Manufacturing errors
  • On time deliveries
  • Product quality variance

53
Lean Manufacturing
  • Every process varies. There is an inherent
    variation, but it varies between predictable
    limits.
  • Common Causes
  • Random variation (usual)
  • No pattern
  • Inherent in process
  • Special Causes
  • Non-random variation (unusual)
  • May exhibit a pattern
  • Assignable, explainable, controllable

54
Lean Manufacturing
  • Measurement Tools
  • Run Charts
  • Control Charts
  • Pareto Charts
  • Histograms
  • X bar (average) Charts
  • R (range) Charts

55
Human Factors
56
What Makes an Effective Program?
Lean Manufacturing
  • Management commitment and employee involvement
    are essential.
  • Management can provide
  • Resources ( Time, people,
    financial )
  • Managing motivating forces
    behind effort
  • Employees can provide
  • Intimate knowledge of the jobs
    performed
  • Identification of existing
    potential hazards
  • Together they provide the solutions to the
    issues.

57
Your Organisation Can Benefit from Teams
Lean Manufacturing
  • Team output usually exceeds individual output.
  • Complex problems can be solved more effectively.
  • Creative ideas usually are stimulated in the
    presence of other individuals who have the same
    focus, passion, and excitement.
  • Support arises among team members.

58
The Importance of Creating High Performance Teams
Lean Manufacturing
  • Characteristics of High Performing Teams
  • Small Size
  • Complimentary Skills
  • Common Purpose
  • Specific Goals
  • Mutual Accountability

59
Lean Manufacturing
  • Implementing Change
  • Lean is never-ending improvements based on
    customer focus and waste elimination.  There are
    many principles, ideas, and tools that are used
    to make up this system.  A good way to understand
    Lean is to remember these principles
  • Empower people
  • Eliminate waste
  • Make it as simple as possible
  • Do one thing at a time
  • Keep it flowing
  • Make it visual
  • Build in quality
  • The important thing is to get everyone thinking
    everyday about ways to improve so that lean
    thinking becomes part of the fabric of your
    organisation.

60
The End(or really only the beginning)
Thank You
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