Leaning it out! - PowerPoint PPT Presentation

Loading...

PPT – Leaning it out! PowerPoint presentation | free to view - id: 56349c-NzM5Y



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Leaning it out!

Description:

Title: PowerPoint Presentation Author: plynch Last modified by: plynch Created Date: 10/5/2004 12:47:04 AM Document presentation format: On-screen Show – PowerPoint PPT presentation

Number of Views:87
Avg rating:3.0/5.0
Slides: 44
Provided by: ply35
Category:
Tags: cash | flow | forecasted | leaning | out

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Leaning it out!


1
Leaning it out!
  • Organizing team efforts for Efficiency, Accuracy
    and Focus
  • Patrick Lynch CFPIM,
    C.P.M.
  • October 19, 2004
    Nashville!

2
Background
  • Patrick Lynch
  • CFPIM APICS member for 15 years
  • C.P.M. Certified Purchasing Manager ISM
  • B.A. Michigan State University
  • Materials and Logistics Management
  • Practitioner for 20 years
  • General Motors, NCR, Toro, Callaway Golf
  • Currently Principal of Materials, Guidant Corp.

3
More importantly
  • 2 Sons, youth hockey and x-cycle riders
  • Coaching (hockey and pop warner)
  • Desert rats
  • Beach combing
  • Snow skiing
  • Enjoy writing
  • Teaching/mentoring
  • Developing employees and coaching kids continues
    to be the most rewarding experience in my career
    or life, in general !

4
Tonight
  • Hear the good, bad and ugly related to
  • a Lean conversion of product, support and
    assembly areas
  • A before and after, of sorts
  • Tools /techniques stuff you can take home
  • From a simple guy
  • with simple tools

5
Things you probably already know
  • Kaizen Process Review
  • Muda Waste
  • Takt Drum Beat
  • Cycle time Build time of one unit
  • Line-balance Efficiency/cycle time reduction
  • Kanban Visible record/replenishment

6
Success factors for any Lean Implementation
  • Waste elimination as an ingrained thought
  • Continuous improvements in
  • Sales per employee
  • Units per direct employee and units per employee
  • Decreased cycle time
  • Improved quality
  • Making every step in your process count
  • Lower inventories (Raw, WIP and FG)
  • Decreased excess and obsolescence
  • Everyone in the plant THINKING LEAN

7
Lets get startedThe MARKET
  • Pacemaker- remote monitor- Model CP
  • 1970s vintage, declining life stage, but
    surviving
  • 5 variations of end product (literature/leads/batt
    ery)
  • Sales rate steady at 90/day (/-8 at one sigma)
  • Fairly low volume moderate margin
  • New technologies threaten longevity
  • Medicare reimbursement
  • ISO approved/ FDA approved/CE approved site
  • In general ,Faced with tough competition and
    antiquated technology

8
MANUFACTURING / STAFFING
  • Process Orientation
  • Sub-operation processes (at other buildings)
    included
  • case assembly
  • board stuff,
  • testing,
  • packaging
  • Total of 19 assembly resources including Case,
    PCBA, kitting, test and packaging
  • Build cycle-times varied from 2 ½ days to 3 days
    depending on queues.
  • Production support shared across 6 major lines

9
DEMAND,and SUPPLY
  • New technologies threaten DEMAND and supply
  • Dated electronics NCNR common
  • Tooling very mature
  • Fortunately, mostly domestic-sourced components
  • Healthy supplier relations
  • Lead-times for components from 3 weeks to 16
  • Some Lead-times vary from 8-16 weeks
  • MRP-driven replenishment of 95 components

10
Support areas
  • 1 Supervisor (single shift, dedicated)
  • 1 Master Scheduler (shared)
  • 5 Material handlers (shared)
  • 4 Buyers (two shared across commodities)
  • 3 Planners (all were shared across product lines)
  • 2 Dispatchers (shop order reconciliation
    kitting)
  • Test, Packaging, Shipping supported by shared
    service

11
Challenges
  • Separation from Mother Company
  • Fledgling history and no legacy
  • Limited Resources / Limited Data
  • Unknown details on some parts/poor BOMs
  • Tribal knowledge
  • Program DeJour
  • Limited knowledge or interest in many ranks
  • Trust
  • No fallback for materials Kanban or bust
  • Dependence on MRP and a lot of bad habits

12
Forecasted requirements systematically drive
time-phased launches of shop orders and purchase
requisitions at the planned lead-time offset,
based on routing and bill of material (BOM)
data,ya de ya de ya da
We all know the routine
13
  • Support Processes.typical findings during Kaizen
    events
  • the biggest offender is usually the MRP planning
    system in many repetition-build factories .
  • infinite non-value-added transactions
  • Overhead
  • Slow response system
  • Causes Over-handling of materials and data

14
Over the years.
  • Unmanaged evolution leads to process Upon
    process,
  • Upon process, upon process

15
The result of the mapping process (as-is)..
16
The Game Plan
  • Find new facility
  • Create lean infrastructure
  • Knight the knights
  • Training programs
  • Facilities
  • Materials management / SOP
  • Collect pertinent data (BOMs, history, usage,
    specs)
  • Revamp storage and replenishment philosophies
  • Simplify ERP structure to support Lean
  • Manufacturing
  • Assembly
  • Sub-ops on line
  • Support areas (Doc Ctl, customer service,
    accounting)
  • Be completely moved in lt120 days

17
Our Plan of attack In The Golden Zone
  • Knight the Top Management sponsor
  • Company wide training paper airplanes, etc
  • identify and document Waste via weekend Kaizen
  • of ALL processes, including support
  • Planned facility moves and implemented (always
    fluid and mobile, things will change -continually
  • SOP conversion and a one-time data collection of
    all component usage

18
Prepare SOP for Lean
  • Forecasting now only at Family Level and only in
    enough detail to support
  • Supplier Capacity Discussions and Kanban
  • Plant/Equipment expansion
  • Long term staffing
  • Integrate Daily Sales and Demand information via
    a Biz Barometer approach

19
What is a biz barometer?

?
???
20
Bizbarom - example
  • Titan Bobble Heads 10/13/04
  • 13th day of October Yesterday's MTD
    ave Yesterday's MTD
  • Product Sales Sales daily sale Inventory Producti
    on Production D-O-H
  • Mason 97 960 80 1250 0 490 15.6
  • Mcnair 118 1360 113 980 0 300 8.7
  • Calico 5 70 6 341 0 0 56.8
  • Bennett 67 620 52 750 0 180 14.5
  • Chris Brown 157 1497 125 750 200 920
    6.0

21
Materials
  • Convert buyers, where possible, to
    Buyer/Planners.
  • Best if assigned responsibility for a full
    product line even if commonality exists on a
    large portion of materials
  • Establish a Masterbook of part info
  • Part Number,
  • where-used,
  • usage per month on average, lead time,
  • starting inventory.
  • Calculate bin sizing, move material into bins at
    point-of-use
  • Implement Kanban incentives while driving
    leadtime reductions
  • Start with a stable production line and go
    full-tilt. Set up bins/sheets and establish
    program with all suppliers willing.
  • Pull the plug on MRP when that data can be
    ignored (60 days)

22
Lead Time Reduction is the Key to Inventory
Reduction
  • The smaller the Lead time, the less material in
    your bins.
  • Do the math - - it may pay to negotiate a shorter
    turnaround time (from signal to delivery) instead
    of building and carrying a larger bin size.

23
Executing the first steps
  • Cross training of all assembly and manufacturing
  • Implemented Global incentives and killed local
    incentives
  • Storage at point-of-use, in bins warehouse
    conversion
  • Facilities conversion wheels and drops
  • Accounting modification for full-bin transactions
  • Suppliers aligned for kanban indemnify to create
    trust
  • Rolled sub-processes on line and achieved single
    piece flow (JIT/JIT/JIT/JIT/JIT/JIT/JIT and more
    JIT)

24
Simplify your ERP inputs!
  • Use ONLY the required functionality
  • Blanket purchase order creation
  • Receiving (into Raw)
  • Bin issue to WIP
  • Credit to FG at the end of each day
  • BY KEEPING YOUR TRANSACTIONS TO A MINIMUM, EXPECT
    BETTER ACCURACY !!

25
Facilities / Manufacturing IE
  • Point-of-use single-point storage
  • Place wheels on unique test equipment
  • U-cell production layout, with limited space
    between operators
  • Bringing sub-ops on-line
  • Multiple ceiling drops to allow various
    configurations in manufacturing
  • Create dedicated put-away zones in warehouse
    while that component inventory is depleted to
    bins only

26
What we started with.
27
Improvements
28
Manufacturing _at_ Move-in date
29
Manufacturing Line Balance
2nd
30
Results of 1st line balance
  • 14 second takt improvement
  • Saved 2 headcounts by consolidating 2-3-4
  • And there is opportunity to split BOXING
    between 2 and the preceding step 4 to save
    another headcount.
  • Bottleneck is now the test step.

31
Manufacturing Line Balance
2nd
32
What were our results (really?!)
  • Pulled the plug on MRP in 59 days (1300
    components for 3 product lines)
  • Achieved bonus for cross-training
  • PCBA stuff, test and packaging on-line
  • Cycle reduction from 3 days to 4.0 minutes
  • Aligned production rates to meet sales rate (takt
    time)
  • 25 floorspace and storage space reduction
  • Margin improvements continued viability
  • Incidentals improved inv. accuracy, morale,
    better sales response, lower E/O, improved
    margins.
  • Agility with the kanban material was on-site,
    ahead of demand, and much greater flexibility.

33
After the mapping process..
34
Better yet!
  • We kept our production
  • ON-SHORE!!

35
Your Kaizen, ..and those next 60 days
  • Start with flowing your entire support process.
    Luza-da-muda.
  • Include EVERYONE MFG, MAT, FAC, ACCT, CS, IT, HR
  • Move components to point-of-use install 3 BIN
    with suppliers
  • One bin usage during leadtime 15
    buffer
  • Bring a breath of fresh air to your ERP and
    transact in full bin quantities. Do not issue
    daily.
  • Bring every sub-process possible ON-LINE,
    including test and packaging.
  • Reducing your cycle time to create agility is the
    key to
  • Build tomorrow what you sold today.
  • Single-piece flow, and line balancing will
    maximize your effort
  • Incent Teamwork, remove silos.movie tickets to
    cold cash
  • Challenge what forecasting and MRP really bring
    to the table

36
Come on now!! Dont be nervous!
  • Its Organized Chaosand unavoidable.
  • And its more fun than anything anyone in
    manufacturing may ever experience.
  • Make fun a requirement. Set challenges.

37
Lessons Learned
  • Kaizen the processes by interviewing the doers,
    not the supervisors. Make it direct, but
    impersonal fun.
  • Single-flow may not be optimal it may be one,
    two, three or more based on variables.
  • Team incentives, ..or bust.
  • VMI is a step above Kanban
  • Smaller is usually better when it comes to
    equipment selection. Dedicated pieces.
  • Avoid postponement strategies unless identity is
    created at the end of the process. Packout
    Option?
  • Best long-term metric is Units per employee

38
Integration makes success
  • Orchestrating a kaizen puzzle is like putting
    together a symphony

Supp
Eng
Qual
Matls
Doc Ctl
Mgmt
Cust
Acct
Prod
39
Resources are everywhere!
  • APICS Library and publications
  • AME
  • Kanban 3 Bin, Simple as ABC
  • October 2002 Performance Advantage
  • Chainleank Resources
  • Email Chainleank2_at_aol.com

40
What you make of it is up to you
  • FIND the Opportunity,
  • TAKE the initiative and
  • APPLY common sense
  • Your next 20 minutes at your work site should be
    focused on looking at your plant with your new
    set of eyes!
  • Your first stop is your shipping areais your
    corrugated on a kanban or vendor managed
    program??
  • Its all about applying simple fundamentals and
    organizing common sense into a program for
    optimized plant-wide flow

41
Lean
  • Its not an event
  • ..Its an attitude
  • Aim for a LEAN ENTERPRISE and Lean out every
    process possible

42
Thanks for having me!
  • Anytime I can come to Nashville is worth the
    extra effort. So, Until next time!

43
Feedback
  • Please take a moment to complete the feedback
    forms and let George know if you have learned
    anything here or if you have discovered any new
    resources.
  • Never forget NETWORK, NETWORK!
About PowerShow.com