Lean Management - EnGLISH [PDF]
Lean Management Dr. Abdallah Abdallah, Ph.D, CSSMBB, PMP 1 What do you expect to get out of this training? 2 Traini
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Lean Management Dr. Abdallah Abdallah, Ph.D, CSSMBB, PMP 1
What do you expect to get out of this training?
2
Training Objectives At the end of this training you should be able to: • Understand the characteristics that do not add value. • Initiating a system to eliminate waste. • Understand how to create value stream maps. • Understand how to use lean management tools. • Understand how to implement lean management principles in manufacturing and administrative areas.
3
Exercise 1: Where are You on this scale? 1
Do not know what is Lean
2
I’ve heard about Lean
3
I’ve read about Lean
4
I’ve attended some Lean training
5
I’ve used some Lean tools
6
I’ve lots of experience with Lean
7
I am a Lean expert
4
Module 1 Introduction: System Analysis
5
Performance Improvement Basics 1. Just like many other methodologies, lean aims at achieving performance excellence. 2. Before working on lean you need to realize that no matter what your current performance level, it can be improved.
3. Those who work on performance improvements need to have patience since all their efforts will be attacked by colleagues, managers, accounting, other departments, etc.
6
Performance Improvement Basics
4. The first step in any improvement effort is an assessment of the current (as-is) situation. 5. To assess, you have to train your eyes to see “what’s wrong”, “what’s not in place”, “what’s done in a very complex manner”, etc.
7
Exercise 2:
Look at the following slides and take 10 seconds on each to realize what the picture is trying to say
8
Exercise 3:
To build on the previous exercise … lets see if you can do the following three exercises.
9
Module 2
Lean Introduction
10
Creators of Lean
Taiichi Ohno (1912 †1990)
Shigeo Shingo 1909 †1990
11
What is Lean Management? • It means doing MORE work with FEWER resources. • Work is accomplished in less time, in a smaller space, with fewer workers, and with less equipment, and yet achieves higher quality levels in the final product.
12
What is Lean Management? (cont’d) • It is a philosophy which shortens the time between the customer order and the product shipment by eliminating waste. Business as Usual
Customer Order
Waste
Product Shipment
Time Lean Manufacturing
Customer Order
Waste
Product Shipment
Time (Shorter) 13
What is Lean Management? (cont’d) • It is NOT: o A collection of techniques or a methodology o A reduced staffing or low inventories • It IS: o A philosophy of manufacturing o A totally different way of thinking o A different value system o Waste eliminating system o A manufacturing system that emphasizes flow
14
Lean Bodies Are Better
15
Some Facts • Some of General Motors (GM) products include: o Buick, Cadillac, Chevrolet, GMC, Opel, Vauxhall, and Holden Toyota
GM
Sales (2007)
9,366,000
9,370,000
Profit/car
+$1,870
-$4,000
• Toyota has been making profit for almost 70 consecutive years, since 1938 • Does not that make us wonder about the reason why Toyota is so successful???
16
History
Richard Schonberger, Edward Deming,
“Japanese Manufacturing Techniques”
“Out of the Crisis”
1982
1982 Henry Ford (Assembly Lines)
Eli Whitney (Interchangeable Parts)
1820
Taiichi Ohno (Toyota Production System) M. Porter,
Eiji Toyoda, Taiichi Ohno (Toyota Production System)
1900
1935
Frank Gilbreth (Process Charts) (Motion Study)
Frederick Taylor (Time Study) (Work Standards)
Walter Shewhart (Statistical Process Control)
1945
1950
“Value Chain” 1985
1970
1980
Ishikawa’s Fishbone Diagram Edward Deming, Joseph Juran (TQM)
Shigeo Shingo (Just In Time) (Zero Defects) (SMED)
1990
2000
Jones & Womack,
“The Machine That Changed The World” Lean Enterprise Institute 1989
Peter Drucker
“The Practice of Management” 1954
17
History (cont’d) • How Toyota started: o 1926, Automatic Looming Machines o 1929, Patent was sold for 100,000 Pounds (£) o 1930, Toyota Motor Company was established
18
History (cont’d) • Toyota visited Ford in 1930’s and again 1950’s • Toyota noticed the following: o Huge machines o Mass production o Large inventories o Few models o Very little improvements since 1930’s
19
History (cont’d) • Toyota wondered whether Ford’s production system will work for Japan or not, since: o The Japanese market is extremely small o Cash flow is limited o The Japanese customer is different • Result: Toyota Production System (TPS)
20
History (cont’d) • 1980, Americans studied the Toyota Production System (TPS) • 1989, “The Machine That Changed The World” book was published by J. Womack • Womack named TPS as Lean Production
21
Benefits of Lean Management • • • • • • • • • •
Reduces Operating Costs Increases Productivity Decreases Throughput Time Increases Profitability Reduces Customer Lead Time Reduces Work in Process Inventory Improves On-Time Delivery to Customers Improves Quality Performance Improves Safety Improves Employee Morale
22
Mass vs. Lean Production Mass Production
Lean Production
Inventory Buffers
Minimum Waste
Just-In-Case Deliveries
Just-In-Time Deliveries
Just-In-Case Inventory
Minimum Inventory
Acceptable Quality Level
Perfect First-Time Quality
Taylorism (Workers told what to do)
Worker Teams
Maximum Efficiency
Worker Involvement
Inflexible Production Systems
Flexible Production Systems
If it isn't broke, don’t fix it!
Continuous Improvement
23
Module 3
Lean Principles
24
From “Muda” To “Shinrai”
信頼
Shinrai “trust”
価値
Kachi “value”
無駄
無駄
Muda “waste” 25
The 3 M’s of Lean Management • Lean Management not only focuses on eliminating “Muda”, but also “Mura” and “Muri”. • Muda (Waste): Any activity that adds no value to the product from the customers point of view. • Mura (Unevenness): Any variation leading to unbalanced situations. • Mura (Overburden): Any activity asking unreasonable stress or effort from personnel, material, or equipment. 26
The 3 M’s of Lean Management (cont’d) • In most cases, you will not see the 3 M’s separately. • When a process is not balanced (Mura), this will lead to overburdening equipment, facilities and people (Muri) which will cause all kinds of non-value adding activities, thus leading to (Muda). • To eliminate (Mura) and (Muri) larger parts of the system need to be looked upon, not only a process or process step or operation, but at an entire Value Stream.
27
The 3 M’s of Lean Management (cont’d)
28
Classification of Activities in Lean Management • All activities in an organization can be classified in three categories: 1. Actual Work: Value Added (VA) Activity. 2. Auxiliary Work: Non-Value Added (NVA I) Activity but Necessary. 3. Pure Waste: Non-Value Added (NVA II) Activity.
29
Classification of Activities in Lean Management (cont’d) • It is not unusual to observe that approx. 95% of all activities in an organization are non-value added.
95% NonValue Added
5% Value Added
30
Identifying Non-Value Added Activities • Ask: o Is this something customer is willing to pay for? o Does this step change form, fit, or function? o Does it convert input to output?
• If not, then it is non-value added: o Some non-value added activities may be necessary until process improvement is achieved (Ex: inspection, approvals)
31
Remember … • VA activities: Enhance, Increase, Improve • NVA activities: Eliminate, Minimize, Combine
32
The Seven Deadly Wastes Having more material or information than you need
Processing more than necessary to produce the desired output
Creating too much material or information
Moving people to access or process material or information Waiting for material or information, or material or information waiting to be processed Errors or mistakes causing the effort to be redone to correct the problem
Moving material or information 33
Definitions of Waste 1.
Defects and Errors requiring rework.
2.
Work with no immediate customer, either internal or external, resulting in work in progress (WIP) or finished goods (FG) inventory.
3.
Unnecessary process steps.
4.
Unnecessary movement of personnel or materials.
5.
Waiting by employees as unfinished work in an upstream process is completed.
6.
Design of product or processes that do not meet customer’s needs.
34
Why Inventory is Dangerous? • Inventory: Money spent on partial work that generates no income until it is complete. • Inventories hide problems: o Unpredictable or low process yields o Equipment failure o Uneven production levels
• New orders from customers cannot be started until WIP is completed. 35
Why Inventory is Dangerous? (cont’d)
36
Lean Management Principles • Specify Value • Identify the Value Stream • Make value creating steps Flow • Let the customer Pull product • Strive towards Perfection 37
Lean Management Principles (cont’d) • Specify Value o Any process that the customer would be prepared to pay for that adds value to the product. The customer defines the value of product in a lean supply chain. Value-adding activities transform the product closer to what the customer actually wants. An activity that does not add value is considered to be waste.
38
Lean Management Principles (cont’d) • Identify the Value Stream o The value stream is the sequence of processes from raw material to the customer that create value. o The value stream can include the complete supply chain. o Value stream mapping (VSM) is an integral tool of Lean Management.
39
Lean Management Principles (cont’d) • Make value creating steps Flow o Using one piece flow by linking of all the activities and processes into the most efficient combinations to maximize value-added content while minimizing waste. o The waiting time of work in progress between processes is eliminated, hence adding value more quickly.
TRADITIONAL
CONTINUOUS FLOW
40
Lean Management Principles (cont’d) • Let the customer Pull product o Pull = response to the customer’s rate of demand i.e. the actual customer demand that drives the supply chain. o Based on a supply chain view from downstream to upstream activities where nothing is produced by the upstream supplier until the downstream customer signals a need.
41
Lean Management Principles (cont’d) • Strive towards Perfection o The journey of continuous improvement. o Producing exactly what and when the customer wants, in the most economic way without damaging the quality levels. o Perfection is an aspiration, anything and everything is able to be improved.
42
Minimizing Waste By Using Process Charts • Process Charts - An organized way to document all the activities performed by a person or group • Activities are typically organized into five categories: o o o o o
Operation, Transportation, Inspection, Delay, Storage, 43
Process Charts Step No.
Time (min)
Distance (ft)
1
0.50
15.0
2
10.00
3
0.75
4
3.00
5
0.75
6
1.00
7
1.00
8
4.00
9
5.00
10
2.00
11
3.00
12
2.00
13
3.00
14
2.00
15
1.00
16
4.00
17
2.00
18
4.00
19
1.00
X
Enter emergency room, approach patient window Sit down and fill out patient history
X
Nurse escorts patient to ER triage room
X 40.0
X 40.0
Nurse inspects injury
X
Return to waiting room X
60.0
X
X
Nurse takes patient to radiology
X
Technician x-rays patient X
Return to bed in ER X
X 60.0 X
Return to emergency entrance area
Check out X
X 20.0
Wait for doctor to return Doctor provides diagnosis and advice
X
180.0
Wait for doctor Doctor inspects injury and questions patient
X
200.0
Wait for available bed Go to ER bed
X 200.0
Step Description
Walk to pharmacy Pick up prescription
X
Leave the building
44
Process Charts Step No.
Time (min)
Distance (ft)
1
0.50
15.0
2
10.00
3
0.75
4
3.00
5
0.75
6
1.00
7
1.00
8
4.00
X
9
5.00
Store
10
2.00
11
3.00
12
2.00
13
3.00
14
2.00
15
1.00
16
4.00
17
2.00
18
4.00
19
1.00
Activity
X
Operation
X X
40.0
Transport
X
Inspect X 60.0
X
Delay X
200.0
X
Wait for doctor to return Doctor provides diagnosis and advice
X X
Return to emergency entrance area Check out
X X
Walk to pharmacy Pick up prescription
X 20.0
Nurse inspects injury 9 11.00 815 Return to waiting room 8.00 available2bed Wait for Go to ER bed 3 8.00 Wait for doctor ― and questions ― inspects injury Doctor patient 5 to ER triage 23.00room Nurse escorts patient
Return to bed in ER
X
180.0
Distance (ft)
Technician x-rays patient
X
60.0
Time (min)
Nurse takes patient to radiology
X
200.0
Number of Steps
Enter emergency room, approach patient window Sit down and fill out patient history
X
40.0
Summary Step Description
X
Leave the building
45
Process Charts • The annual cost of an entire process can be estimated • It is the product of: 1) Time in hours to perform the process each time 2) Variable costs per hour 3) Number of times the process is performed each year Annual labor cost
=
Time to perform the process in hours
Variable costs Number of times process per hour performed each year
46
Process Charts • If the average time to serve a customer is 4 hours • The variable cost is $25 per hour • And 40 customers are served per year • The total labor cost is: 4 hr/customer $25/hr 40 customers/yr = $4,000
47
Exercise 4: An automobile service is having difficulty providing oil changes in the 29 minutes or less mentioned in its advertising. You are to analyze the process of changing automobile engine oil. The subject of the study is the service mechanic. The process begins when the mechanic directs the customer’s arrival and ends when the customer pays for the services. The times add up to 28 minutes, which does not allow much room for error if the 29-minute guarantee is to be met and the mechanic travels a total of 420 feet. 48
Step No.
Time (min)
Distance (ft)
1
0.80
50.0
2
1.80
3
2.30
4
0.80
5
0.60
6
0.70
7
0.90
8
1.90
9
0.40
10
0.60
11
4.20
12
0.70
13
2.70
14
1.30
15
0.50
16
1.00
17
3.00
18
0.70
19
0.30
20
0.50
21
2.30
X
Direct customer into service bay
X
Record name and desired service Summary X
0.30
Open hood, verify engine type, inspect hoses, check fluids Number Time Distance ActivityWalk to customer in waiting area of Steps (min) (ft)
X X
Recommend additional services
X X X
50.0
X X
40.0
7 16.50 8 5.50 Transport Walk to storeroom Look up filter number(s) 4 5.00 Inspect Check filter number(s) 0.70 Delay Carry filter(s) to service1pit Perform under-car services 1 0.30 Store Climb from pit, walk to automobile Operation
X 70.0
X
Wait for customer decision
X
Fill engine with oil, start engine X
40.0
Inspect for leaks
X
Walk to pit X
Inspect for leaks
X 80.0
Clean and organize work area X
Return to auto, drive from bay X
60.0
X X
Step Description
Park the car Walk to customer waiting area Total charges, receive payment
49
420
Exercise 5: What improvement can you make in the process shown in previous exercise? a. Move Step 17 to Step 21. Customers should not have to wait while the mechanic cleans the work area. b. Store small inventories of frequently used filters in the pit. Steps 7 and 10 involve travel to the storeroom. c. Use two mechanics. Steps 10, 12, 15, and 17 involve running up and down the steps to the pit. Much of this travel could be eliminated. 50
Redesigning the Process • Generating Ideas: Questioning and Brainstorming • Ideas can be uncovered by asking six questions: 1. 2. 3. 4. 5. 6.
What is being done? When is it being done? Who is doing it? Where is it being done? How is it being done? How well does it do on the various metrics of importance?
51
Lean Management Tools Continuous Improvement
Kanban
Flow
Leveling
Standardized Work 5S
Visual
Pull
Poka Yoke SMED
Change Management
TPM
VSM
52
Lean Management House Goal Customer Focus: Highest Quality, Lowest Cost, Shortest Lead Time by continually eliminating Muda
Just-In-Time
Jidoka Involvement:
Flexible, motivated team members continually seeking a better way
Start Here Standardization Stability 53
Stability • Improvement is IMPOSSIBLE without stability in the 4 M’s: o o o o
Man/ woman Machine Material Method
• Stability starts with 5S system and visual management. • 5S supports standardized work and total productive maintenance (TPM), which are the key to method and machine stability, respectively. 54
5S & Visual Management • 5S is a methodology for creating and maintaining an organized, clean, and safe high-performance work environment. • Visual Management is a visual system that provides immediate, visual information which enables people to make correct decisions and manage their work and activities quickly and easily. • 5S and Visual Management make abnormalities obvious.
55
Why Do We Need 5S?
56
Looks Familiar
?
57
HOW DO THEY GET ANYTHING DONE?
58
The Good, Bad and the Ugly First the Bad and the Ugly - Life Without 5S
59
Life with 5S
60
5S & Visual Management (cont’d) • How would you describe your current workplace situation? • Items to consider: o Openness of work area o Color coordination o Straight lines (desks, benches, equipment, walls, power drops) o Product displays o Performance metrics o Condition of walls, floors, equipment o Visual controls
61
5S & Visual Management (cont’d) • What is your impression when you look below?
62
5S & Visual Management (cont’d) • And what is your impression when you look below now?
63
5S & Visual Management (cont’d) • Poor workplace organization means WASTE! o Unneeded inventory incurs extra inventory-related expenses and obsolescence due to design changes, limited shelf life, etc. o Extra manpower is needed to manage the growing inventory o Extra time spent looking for equipment, parts, components, etc. o Quality defects result from unneeded in-process inventory and machine breakdowns o Unneeded equipment poses a daily obstacle to production activities o The presence of unneeded items makes designing factory/office layouts more difficult
64
5S • Key Characteristics in a 5S Environment: o o o o
An easily understandable layout An open view A clean atmosphere Active management
65
5S (cont’d) • Major Benefits: o o o o o o o o o
Improves safety / Reduces accidents Reduces downtime Enhances operational control of processes Creates a healthier corporate climate Improves product quality Improves efficiency and productivity Improves delivery times and assists in reducing costs Creates a positive work environment Improves customer perceptions
66
Exercise 6:
Lets do 5S in our world of numbers
67
5S (cont’d) • The 5S’s designate: o Sort - Eliminate what is not needed o Straighten - A place for everything and everything in its place o Shine - Cleaning and looking for ways to keep it clean o Standardize - Maintain and monitor the first 3 S’s o Sustain - Stick to the rules
68
5S (cont’d) RED TAG STRATEGY
DIVIDE ITEMS INTO TWO CATEGORIES:
RED TAG Category
1. Raw material 2. In-process stock 3. Semi-finished goods 4. Finished goods 5. Equipment
6. Dies and jigs 7. Tools and supplies 8. Measuring devices 9. Documents 10. Other
Item name and number
Quantity Reason
Units
$ Value
1. Not needed
6. Other
2. Defective 3. Not needed soon 4. Scrap material 5. Use unknown Disposal by:
Disposal method:
Department/Business Unit/Product Center
1. Discard
Disposal
2. Return
complete
3. Move to red-tag storage site
(signature
)
4. Move to separate storage site 5. Other Posting date:
Disposal date:
ATTACH TO ALL UNNECESSARY ITEMS
CATEGORIZE NECESSARY ITEMS:
NECESSARY
SORT
UNNECESSARY
DISCARD UNNECESSARY ITEMS
* RARELY USED * OCCASIONALLY USED * FREQUENTLY USED
9
69
5S (cont’d) SORT Check Item •
Any unused / unneeded items
•
Items almost never used
•
•
Action
Discard, throw away (Red Tag and Segregate)
Items for which no immediate use is planned, but which must be stored on the chance they will be needed later
(Yellow Tag) Evaluate over time
Items used frequently
Keep in work area (Green Tag) Use white squares to mark location, or store on tool board or another centralized storage unit
70
5S (cont’d)
RED TAG Category
1. Raw material 2. In-process stock 3. Semi-finished goods 4. Finished goods 5. Equipment
6. Dies and jigs 7. Tools and supplies 8. Measuring devices 9. Documents 10. Other
Item name and number Quantity Reason
Disposal by:
Disposal method:
Posting date:
Units
$ Value
1. Not needed 6. Other 2. Defective 3. Not needed soon 4. Scrap material 5. Use unknown Department/Business Unit/Product Center
1. Discard 2. Return 3. Move to red-tag storage site 4. Move to separate storage site 5. Other
Disposal complete (signature )
Disposal date:
71
5S (cont’d) Before Sort...
After Sort... 72
IDENTIFICATION LINES
5S (cont’d)
DETERMINE LOCATION FOR NEEDED ITEMS CUTTER INSERTS
124GF
STRAIGHTEN POINT OF USE STORAGE
2HJF
12HJF
12HJF
12HJF 12HJF
12HJF 12HJF
12HJF
12HJF
12HJF
12HJF
12HJF
12HJF
VISUAL LOCATIONS PW2000 FIXTURES 2A4397 3A9674 2B4659
13
73
5S (cont’d) Straighten Check Item
Action
•
Tool Board
Tools must be replaced when not in use
•
All moveable objects (equipment, machines, tables, material)
Must have markings for proper location Show workplace organization
Machines, equipment
•
•
Visual Aids / Visual Display
Must have all parts in place (safety) Must have all materials (RM, WIP, FG) located and necessary information in place, updated Must be in place and updated Open display of all action items and processes under review or performance requirements
74
5S (cont’d) Straighten: Tool Storage
75
5S (cont’d) Straighten: Material Storage
76
5S (cont’d) Straighten: Maintenance Supplies
77
5S (cont’d) Straighten: Common Tooling Storage
78
5S (cont’d) Straighten: Cleaning Supplies
79
5S Example – Sort and Straighten
80
5S (cont’d)
BUILD PRIDE IN WORK AREAS
ELIMINATE DIRT
SHINE (Cleanliness)
SWEEP BUILD VALUE IN EQUIPMENT
CLEANING AS A FORM OF INSPECTION
CLEAN 81
5S (cont’d) Shine Check Item
Action
•
Immediate work area
Sweep, clean, dust zones or (machine, equipment, racks) work areas during down time or idle time, then record on 5S Audit Sheet
•
Shared areas
Sweep, clean, dust in shared work zones or work areas during down time or idle time
•
Outside areas / grounds
Sweep, rake, clean outside areas and grounds as necessary
•
Paint, coatings on buildings, equipment / machinery and floors
Schedule as needed, complete during down time or non-production time
82
5S (cont’d) Shine: Covers Prevent Dust
83
5S (cont’d) Shine: Clean Walls, Floors, Ceilings
84
5S Examples - Shine
85
5S (cont’d)
PREVENTIVE: • SORTING • STRAIGHTENING • CLEANLINESS
ASSIGN “3S” RESPONSIBILITIES NAME
M
T
W
T
F
S
Su
Ken Sonya Paul Ross Mell Cathy Jesse Roger Ken D. Douglas
ASK WHY
STANDARDIZE INTEGRATE “3S” DUTIES INTO REGULAR WORK DUTIES
CHECK ON “3S” MAINTENANCE LEVEL
5 Minute 5S
5 Point Checklist 1.
xxxxxxxxxx xxxxxxxxxxxxxx xxxxcx lsdfj sdlk dkdie ldslj sdlj f lsdflj sldkj f
2 3. 4. 5.
x x xxxxxxxxxxxxxxxxx xxxx xxx xx xxxx x x xxxx x xxxxxlsdf lsdkjei lsdkj sdlkj sdl ldf xx xxxxxx x xxxx x xxxxxxxsdlfkj sdflkj sflkjsdflkj flk xxxxx xxx x x xxx xxxx xxxxxsdf,j sdlfjk flsdf ljsd
2 3 2 1 4 2.4
3 3 2 3 4 3.0
7:30 - 7:35 1S organize 2S orderliness 3S cleanliness 4S standardize 5S discipline
xxxxxxxxxxxxx xxx x x xxx x xx x xx x xxx x x xxxxx xxxx x x xxxx x xxxxxxxxxx xxxxxxxxxx xxxxxxx
86
5S (cont’d)
5S Guidelines 5S Review Schedule
Standardize Check Item •
Consistent with the entire system
Action
•
Visual aids or visual control systems
•
Visual Workplace
Follow 5S Audit Sheet and all other visual controls Perform regular, scheduled audits Submit improvement suggestions Stick to the guidelines Produce signs, charts, graphs, paint equipment, color coding systems Implement standard method for cleaning and maintenance Create an environment in which anyone can know in five minutes or less the who, what, when, how and why of any work area: Without talking to anyone, without opening a file drawer, without opening a book or without turning on a computer 87
5S (cont’d)
5S Guidelines 5S Review Schedule
Standardize (cont’d) Check Item •
Leader’s activity
Action
Make 5S part of normal work activity Provide resources Reward and recognize good work Allow time for 5S activity (monthly, weekly, daily)
88
5S (cont’d) Standardize – Daily Clean Up Plan
NAME
Sun Mon Tue Wed Thu
Fri Sat
Ahmad Moh'd Basel Ali Abdallah Anas Tareq Malek Haitham Ayman
89
5S (cont’d) Standardize – Five Point (Sorting) Check
Description
Points
Needed and unneeded items are mixed together at the workplace.
1
It is possible (but not easy) to distinguish needed/ unneeded items.
2
Anyone can easily distinguish needed/ unneeded items.
3
All unneeded items are stored away from the workplace.
4
Completely unneeded items have been dispose of.
5
90
5S (cont’d) Standardize – Five Point (Straightening) Check Description
Points
It is impossible to tell what goes where and in what amount.
1
It is possible (but not easy) to tell what goes where and in what amount.
2
There are location and item indicators for all tools and gages, as well as supplies and material.
3
Various techniques (i.e. color coding, outlining, easy replacement methods) are used to facilitate replacing things properly.
4
Tools and gages are unified and, when possible, eliminated. Specific indicators show what supplies and materials go where and in what amount.
5
91
5S (cont’d) Standardize – Five Point (Cleanliness) Check Description
Points
The workplace is left dirty.
1
The workplace is cleaned once in a while.
2
The workplace is cleaned daily.
3
Cleanliness has been combined with inspection.
4
Cleanliness (dirt-prevention) techniques have been implemented.
5
92
5S (cont’d) Standardize – 5S Rating Trend Chart
93
MANAGERS COMMITTED TO 5S
5S (cont’d)
PROPER TRAINING
5S asdfsdfs sdf sdf dsfsdfsdfsfdsdfsdf
SUSTAIN CORRECT PROCEDURES BECOME A HABIT
“BUY-IN” FROM ALL WORKERS
94
5S (cont’d) Sustain Check Item •
Associate activity
Action
Maintain self-discipline Complete daily/weekly checklists Practice until it is a way of life Continue to improve
95
5S (cont’d) Sustain – Daily Activities GRINDER / POLISHER DAILY PREVENTIVE MAINTENANCE Equipment No.: __________________ Maintained by: ___________________ Power Head
Post
Chuck
Splash Ring
Polishing Wheel
Control Panel Body
Month: _________________ Day
PROCEDURE
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21 22
23
24
25
Remove dust from air vents/holes. Wipe Power Head Check & clean Chuck Clean Post Clean Splash Ring Wash Polishing Wheel Wipe Body Wipe Control Panel
96
26
27
28
29
30
31
Sustain – 5S Checklist for Manufacturing Please check box daily with y (yes) for completed or n (no) for not completed. Daily
1. Sweep area.
2. Remove trash.
3. Restock for next shift. 4. Clean excess material off of press. 5. Clear debris from aisle way. 6. All fire extinguishers, electrical panels and exits are clear.
Please return filled out form to area Lean Pilot.
1
2
3
4
5
6
7
8
9
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
1
2
3
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6
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9
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
3 1 2 3 1 2 3 1 2 3 1 2 3 1 2 3 1 2
Weekly
3 1. Clean lights. 1 2 3 2. Mop entire work area. 1 2 3. Clean any soiled area on 3 press and auxiliary 1 equipment. 2 3 4. Restock cleaning 1 supplies. 2 Monthly tasks to be com pleted on the 15th of m onth or next applicable day.
Monthly
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
1. Repair any damaged floor tape. 2. Complete 5-S Audit. 1st Week
Supervisor or Champion Initials Comments:
2nd Week
3rd Week
4th Week
Dec
M o nt hly S c he dule
3rd-Jan,Apr,Jul,Oct. 1stFeb,May,Aug,Nov. 2ndMar,Jun,Sep,Dec.
Sustain – 5S Checklist for Tool Room Please check box daily with y (yes) for completed or n (no) for not completed. Daily
Please return filled out form to area Lean Pilot.
1
2
3
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9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
1
2
3
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9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
1. Sweep area. 2. Remove trash. 3. Mop any soiled areas. 4. Clear aisle ways of any debris. 5.
Fire extinguishers, electrical panels, and emergency exits are clear.
Weekly 1. Clean lights. 2. Mop entire work area. 3.
Clean any soiled area on auxiliary equipment
4. Restock cleaning supplies.
Monthly tasks to be completed on the 15th of month or next applicable day. Monthly
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
1. Repair any damaged floor tape. 2. COMPLETE 5S AUDIT COMMENTS
Area Champion Signature:______________________________
Sustain – TPM Checklist
5S (cont’d) Sustain – Periodic Reviews
100
5S (cont’d) • Use 5S Audit Form to continuously assess your current situation in workplace organization. • Are you in a third-rate workplace, where Associates leave trash and no one stops to pick it up. • Are you in a second-rate workplace, where Associates leave trash but others pick it up.
• OR are you in a first-rate workplace, where no one leaves trash but Associates would pick it up if they saw it.
This is World Class!
101
5S Example
102
103
104
105
106
107
5S Example
Before 5S
After 5S - Cleaned, organized and drawers labeled (less time and frustration hunting) 108
After 5S: Auto Shop
109
After 5 S: Nokia
110
Visual Management • Visual Management creates an environment in which anyone can walk into a workplace and visually know the current situation: o Visually understand: workplace organization the work process when there is an abnormality if they are ahead, behind or on schedule
o Without opening a book or without turning on a computer o Without opening a file drawer
o Without talking to anyone 111
Visual Management (cont’d) • Example: Two Workplaces, Two Ways of Communicating
HURRY UP!
P/N 4370168 Due 4/27 Completed
21
HIDDEN WORKPLACE
13
VISUAL WORKPLACE 112
Visual Management (cont’d) • Prerequisites o 5S o Commitment Management must be wiling to share information Everyone must be willing to utilize information
Don’t implement without the discipline to sustain! 113
Visual Management (cont’d) • Objectives o o o o
Convey information Provide immediate feedback Quickly expose abnormalities in a process Quickly convey progress or lack of progress
114
Visual Management (cont’d) • Visual Management has two components: Visual Display
Visual Control
o Displays history
o Provides current, up to date information
o Gives people information management wants them to know
o Gives people information they need to know to be successful
o Displays status
o Displays abnormalities to anyone clearly
o Drives maintaining the status quo
o Drives improvement
o Can be interesting to look at
o Can alert, prevent, and provide failsafe processes
115
Visual Management (cont’d) • Types of Visual Management: o o o o o o o o o o
Control Boards Gauges Andon (Alarms/ Lights/ Sounds) Floor markings Signboards Color coding Outlining Shadow boards (tool cutouts) Limit lines (min/max height or width) Arrows
116
Visual Management (cont’d) • Examples in the outside world
We are surrounded by Visual Management, but we rarely bring it to work with us 117
Visual Management (cont’d) • Examples in the workplace o Improved Safety Clear visible guidelines ensure safety is paramount in everybody's minds in the workplace. Safety in the workplace improves welfare of employees and increases morale.
Meeting point
118
Visual Management (cont’d) • Examples in the workplace o Reduced search time By visibly foot-printing everything required to carry out an activity, reduces search time, and therefore increasing value adding time
119
Visual Management (cont’d) • Examples in the workplace o Abnormalities visible at glance Andon Board Workstations on plan
1
2
3
4
5
6
7
8
Workstations with issues
1
2
3
4
5
6
7
8
Workstations stopping the line
1
2
3
4
5
6
7
8
Andon Systems To enable to see the status of equipment and teams at a glance and spot problems immediately. This timely status allows quick response and therefore reduced down time. 120
Visual Management (cont’d) • Examples in the workplace o The power of Color
121
Visual Management (cont’d) • Examples in the workplace o Information and control boards
122
Visual Management (cont’d) • Examples in the workplace o Office Visual Organization & Display
123
Visual Management (cont’d) • World Class Visual Management CTX Skills Matrix Measurements
Name of the Area
Attendance chart and vacation plan
Mission
Status of suggestions Awards received
Names and pictures of people Focus item of the month Documents, reference books
Customer-supplier relationship chart
Samples of defects
Plans of action
Customer survey results
Improvement of the month
Quality Clock
Safety clock
Status of team projects 124
Visual Management (cont’d) • Summary - Visual Management: o Effects QCDP (Quality, Cost, Delivery, Productivity) on daily basis o Creates a safer more productive work environment o Improves morale o Relatively low cost to implement o Encourages pride in workplace o Simple logical way to improve workplace performance o Is a platform for further improvement
125
5S & Visual Management (cont’d) • Procedure for Effective Implementation: o Videotape or photograph area prior to 5S workshop. o Perform a 5S evaluation. o Sort through equipment, tools, material, files, etc. Apply red tags to items that are no longer needed. o Dispose of red tagged items. o Straighten remaining items. o Clean equipment, tools, and area. o Apply visual controls. o Videotape or photograph area after 5S workshop. o Perform a 5S evaluation. Compare and post scores.
126
Total Productive Maintenance • Total Productive Maintenance (TPM) is a system that maximizes equipment effectiveness and maintains product flow. • TPM is not just about “maintenance”. It is about getting the most overall benefit from your equipment over the life of the equipment. • TPM will not be an overnight success. Implementing it throughout a plant correctly will take several years. • 5S is a prerequisite for TPM.
127
TPM (cont’d) • Benefits of TPM to the Company o Improved plant productivity and capacity o Lower operating costs o Improved equipment lifespan o Better ability to satisfy customers
128
TPM (cont’d) • Benefits of TPM for Operators & Maintenance Personnel o Increased skills through additional training o Better job satisfaction Operators – More involvement in solving annoying equipment problems Maintenance – More challenging work
o Better job security
129
TPM (cont’d) • TPM promotes Shift in Attitudes
Operator
Maintenance
Operator Maintenance
I use
I maintain & I fix
We maintain
Conventional
TPM 130
TPM (cont’d) • TPM Emphasizes Prevention o Three Principles of Prevention: 1) Maintain normal conditions 2) Early discovery of abnormalities
Operator Maintenance
3) Prompt response
131
TPM (cont’d) • The Six Big Equipment Losses: 1. 2. 3. 4. 5. 6.
Breakdown losses Setups and adjustment losses Idling and minor stoppages Speed losses Scrap and rework losses Start-up losses
132
TPM (cont’d) • Overall Equipment Effectiveness (OEE) is the way to measure how effectively machine / equipment hours are used (Value Adding).
Overall Equipment Effectiveness (OEE) = %Availability • Breakdown losses • Set-up and adjustment losses
x
%Performance x
%Quality
• Idling and minor stoppage losses
• Scrap and rework losses
• Speed losses
• Start-up losses
133
TPM (cont’d) • Calculation of LOSSES Total (Operation) time e.g. 480 min. (1 shift) Available time 420 min.
Planned Downtime
- breaks, planned maintenance, training
Running time 340 min.
Downtime
- breakdowns, repairs - setup - adjustment
Productive time 270 min.
Performance Losses
- long cycle time - minor stoppages - reduced yield
Quality Losses
- scrap - rework - rejects
Effective time 250 min. Total losses = 170 min / shift
134
TPM (cont’d) • Calculation of LOSSES Available Time – Downtime % Availability = -------------------------------------------------------- x 100 Available Time
Where Available Time = Total (Operation) Time – Breaks – Planned Maintenance Time Quantity Produced % Performance = ------------------------------------------------------ x 100 Running Time x (Capacity/Given time) OR Running Time – Performance Losses % Performance = -------------------------------------------------------------------- x 100 Running Time 135
TPM (cont’d) • Calculation of LOSSES % Quality = Amount produced –Amount defects –Amount re-processed ------------------------------------------------------------------------------------x 100 Amount produced OR % Quality = Productive Time – Quality Losses -------------------------------------------------------------- x 100 Productive Time
136
TPM (cont’d) • Calculation of OEE % Availabilty =
=
% Performance =
=
% Quality =
=
Available time - Downtime
X 100
Available Time 420 min - 80 min
factor 81%
420 min
Running time - Performance losses X 100 Running time 340 min – 70 min 340 min
Productive time - Quality losses Productive time 270 min - 20 min 270 min
Overall Equipment Effectiveness
OEE (in %) =
X factor 79.4%
X 100
X factor 92.6%
= 59.6% 137
TPM (cont’d) • How to increase OEE? o Data collection is the very important basis to increase OEE Collect data for all downtime and losses on the machine
Repairs Changeover, Adjustments
Data analysis and visible measure
Make improvements visible and implement
Analysis
35 30 25 20 15 10 5
Autonomous Mainten. Preventive Maintenance
Tool change
Changeover reduction Repair
Minor stoppages
33
Changeover Tool change
26
16
Scrap
Minor Stopp.
7
3
Standardize tooling
Scrap, rework
OEE Trend Target 2003
Improved machine reliability Standardisation Kaizen
J F M A M J J A S O N D
138
TPM (cont’d) • Making OEE visible by using information boards Machine Information OEE trend machine 01 Target 2003
Departement Information
Company Information
OEE trend Machine 01 Target 2003
Data J FMAM J J ASOND
J F M A M J J A S O N D
J FMA M J J A SOND
OEE trend Machine 02
OEE Productivity
Target 2003
J FMAM J J ASOND
J FMAM J J ASOND
J FMAM J J ASOND
Analysis
35 30 25 20 15 10 5
J F M A M J J A S O N D
other
J FMAM J J ASOND
OEE trend Machine 03 Target 2003 J FMAM J J ASOND Repairs Chgeover Tool chg. Scrap Min.Stop.
33
26
16
7
3
shows the current situation of the machine or plant
J F M A M J J A S O N D
shows the machine in the area
shows developement, trends and links beween targets and achievements
139
TPM (cont’d) • Eliminating Breakdowns o Workplace Conditions Contribute to Losses
Dirty equipment Oil and lubricant leaks Moving parts covered with raw materials or debris Disorderly wiring, hoses, etc. Equipment mechanisms hidden or difficult to access Workplace disorder A belief that conditions cannot improve
140
TPM (cont’d) • Eliminating Breakdowns o Why machines fail
Disregard for basic needs (housekeeping, lube..) Incorrect operating conditions Lack of skill or knowledge of operator Machine deterioration
Routine Accelerated
Design deficiency
141
TPM (cont’d) • Eliminating Breakdowns o Two kinds of breakdowns Function loss (function completely lost) Function reduction (works, but with loss of speed or quality)
o Two kinds of breakdown maintenance Planned (Pro-active) Unplanned (Re-active/ firefighting)
142
TPM (cont’d) • Types of Maintenance Programs 1. Reactive Maintenance (Breakdown or Run-to-Failure Maintenance) 2. Preventive Maintenance (Time-Based Maintenance) 3. Predictive Maintenance (Condition-Based Maintenance) 4. Autonomous Maintenance 5. Reliability Centered Maintenance (Prevention Maintenance)
143
TPM (cont’d) • Reactive Maintenance (Breakdown or Run-toFailure Maintenance) o o o
Allow machinery to run to failure. Repair or replace damaged equipment when obvious problems occur. Studies shows that more than 55% of maintenance resources and activities of an average facility are still reactive.
144
TPM (cont’d) • Preventive Maintenance (Time-Based Maintenance) o o o
Schedule maintenance activities at predetermined time intervals. Repair or replace damaged equipment before obvious problems occur. Studies show that 31% of maintenance resources and activities of an average facility are preventive.
145
TPM (cont’d) • Predictive Maintenance (Condition-Based Maintenance) o
o
o
Schedule maintenance activities only if and when mechanical or operational conditions warrant-by periodically monitoring the machinery for excessive vibration, temperature and/or lubrication degradation, or by observing any other unhealthy trends that occur over time. When the condition gets to a predetermined unacceptable level, the equipment is shut down to repair or replace damaged components so as to prevent a more costly failure from occurring. Studies show that 12% of maintenance resources and activities of an average facility are predictive.
146
TPM (cont’d) • Reliability Centered Maintenance (Prevention Maintenance) o
o o
Utilizes predictive/preventive maintenance techniques with root cause failure analysis to detect and pinpoint the precise problems, combined with advanced installation and repair techniques, including potential equipment redesign or modification to avoid or eliminate problems from occurring. Very advanced program. Studies show that less than 2% of maintenance resources and activities of an average facility are of this type.
147
TPM (cont’d) • Autonomous Maintenance o The principal way production workers participate in TPM o Purpose: Brings production & maintenance people together to slow routine deterioration and halt accelerated deterioration Helps operators learn more about their equipment (the cause and effect) Prepares operators to be active partners with maintenance and engineering in improving equipment performance and reliability
148
TPM (cont’d) • Steps to Implementing Autonomous Maintenance 1. Initial cleaning and inspection 2. Eliminate sources of contamination and inaccessible areas 3. Develop and test cleaning, inspection, and lubrication standards 4. General inspection training and inspection procedures 5. Conduct autonomous general inspections 6. Organize and manage the workplace 7. Ongoing autonomous maintenance and continued improvement
149
TPM (cont’d) TPM =
Preventive Maintenance + Predictive Maintenance + Autonomous Maintenance
150
TPM (cont’d) • Sustaining TPM o o
Audits Visual activity boards
Team charter Team activities, goal, schedule, and progress Cleaning, inspection, and lubrication standards Workplace organization standards Trend charts for each of the big 6 losses Inspection reports Audit results Before and after photos
151
TPM (cont’d) • TPM improves workplace Safety o o o o
Safety is the cornerstone of production activities Accidents usually occur when unsafe behavior is combined with unsafe conditions For every major accident there are 29 minor accidents and 300 near misses Safety should always be the #1 priority
152
TPM (cont’d) • Setting Up a TPM Structure
EIT EIT
EIT TPM Advisory Team
EIT
Mgmt EIT
EIT EIT = Equipment Improvement Team 153
TPM (cont’d) • Advisory Team – Responsibilities o Guide & champion TPM implementation o Assess current equipment OEE and develop a process for measuring the “6 Big” losses o Develop a TPM master plan o Set plant-wide standards for TPM implementation o Monitor and evaluate progress o Serve on EIT’s
154
TPM (cont’d) • Equipment Improvement Teams – Responsibilities o o o o
Return equipment to near new condition Investigate and reduce the “big 6” equipment losses Transfer routine maintenance skills to operators Set standards for routine maintenance and inspections by operators o Organize the work area for more effective/efficient maintenance
155
TPM (cont’d) • Setting Goals for Your TPM Program o Short term – 12 months Establish an autonomous maintenance program for “x” machines Increase OEE by “y”% for individual work centers
o Long term – Reach a plant OEE of 85% within 3 years (world class is considered about 85%)
156
TPM (cont’d) • Summary of TPM Stages 1) Stabilize and Restore Equipment 2) Measure Six Big Losses 3) Eliminate Losses 4) Improve Design
157
TPM (cont’d) • Typical TPM Results o Overall Equipment Effectiveness(OEE) up 25-65% o Quality defects down 25-50% o Maintenance expenditures down 10-50% o Percent planned vs. unplanned maintenance increased 10-60%
158
Lean Management House Goal Customer Focus: Highest Quality, Lowest Cost, Shortest Lead Time by continually eliminating Muda
Just-In-Time
Jidoka Involvement:
Flexible, motivated team members continually seeking a better way
Standardization Stability 159
Standardization • Standardized work is the safest, easiest, and most effective way of doing the job that we currently know. • It is a tool for developing, confirming, and improving our method (processes). • A process is simply a set of steps or actions with a clearly defined goal, which tells the team member what to do, when to do it, and in what order. • It is important to understand that: o There is no one best way to do the work. o Workers should design the work. o The purpose of standardized work is to provide a basis for
improvement.
160
Standardization (contd’) • Why Standardized Work? It provides great benefits: 1. 2. 3. 4. 5. 6. 7.
Process stability. Clear stop and start points for each process. Organizational learning. Audit and problem solving. Employee involvement. Baseline for future improvements. Provides a basis for employee training.
161
Exercise 7:
Lets use a standard drawing technique
162
Standardization (contd’) • Standardized Work and Continuous Improvement
163
Standardization (contd’) • Prerequisites for Standardized Work o We cannot work to standards when there are continuous line stoppages and slowdowns. o Common sources of instability:
Quality problems with incoming parts. Problems with machinery, jigs, or tools. Parts shortages. A less than full condition (which means that the team member may have to wait for a part to work on). Safety problems such as poor ergonomic layouts, slip, trip, and falling hazards, exposed pinch points.
164
Standardization (contd’) • The Elements of Standardized Work o Takt time o Work sequence o In-process stock
165
Standardization (contd’) • Takt time tells our demand frequency, or how frequently we must produce a product. • Takt = Daily operating time / Required quantity per day • Takt time differs from Cycle time, which is the actual time it takes to do the process. • Our Goal is to synchronize takt time and cycle time, to the greatest extent possible.
166
Standardization (contd’) • Work Sequence defines the best way to do each job action and the proper sequence while meeting the takt time. • It is very useful to use pictures and drawings to show: o o o o o
Proper posture How the hands and feet should move How to hold the tools Accumulated know-how of the job Critical quality or safety items
167
Standardization (contd’) • In-Process Stock (Standard WIP) is the minimum number of unfinished work pieces required for the operator to complete the process without standing in front of a machine. • Defining in-process stock establishes work-in-process standards per process and makes abnormalities obvious. • Standard WIP=(Manual Cycle Time + Auto Cycle Time) Takt Time
168
Standardization (contd’) • Main Tools Used to Define Standardized Work: o Process Capacity Sheet o Standardized Work Combination Table o Standardized Work Chart
• Additional Tools Include: o o o o o
Job Instruction Sheet Process Study Sheet Operator Balance Chart Skills Training Matrix Production Analysis Board
169
Standardization (contd’) • Process Capacity Sheet is used to calculate the capacity of each machine to confirm true capacity and to identify and eliminate bottlenecks. • Processing capacity per shift will be calculated as follows: o Process Capacity =
Operational time per shift Process time + Setup time/ interval
170
Standardization (contd’) • Process Capacity Sheet
171
Standardization (contd’) • Standardized Work Combination Table shows: o o o o
Work elements and their sequence. Time per work element. Operator and machine time. The interaction between operators and machines or between different operators.
• This tool makes continuous improvement easier by breaking down the movements of the operator and relating them to the machine time.
172
Standardization (contd’) • Standardized Work Combination Table
173
Standardization (contd’) • Standardized Work Chart shows operator movement and material location in relation to the machine and overall process layout. • It should show takt time, work sequence, and standard WIP.
174
Standardization (contd’) • Standardized Work Chart
175
Standardization (contd’) • Job Instruction Sheet is used to train new operations. It lists the steps of the job, detailing any special skill that may be required to perform the job safely with utmost quality and efficiency. • It can also be useful for experienced operators to reconfirm the right operations.
176
Standardization (contd’) • Job Instruction Sheet
177
Standardization (contd’) • Process Study Sheet is used to define and record the time for work elements in a process. • The output of this tool goes as input for standardized work combination table and standardized work chart.
178
Standardization (contd’) • Process Study Sheet Steps: 1. 2. 3. 4. 5. 6. 7.
Become familiar with the process area and its surroundings. Draw the process area layout. Show the work sequence. Write the work elements. Measure total cycle time (at least ten times). Measure time for each work element (at least ten times). Identify and measure irregular work (e.g., clearing blockages). 8. Write the standardized work chart and standardized work combination table.
179
Standardization (contd’) • Process Study Sheet
180
Standardization (contd’) • Operator Balance Chart helps create continuous flow in a multi-step, multi-operator process by distributing operator work elements in a balanced manner such that the total time is less than or equal to the takt time.
181
Standardization (contd’) • Operator Balance Chart
182
Standardization (contd’) • Skills Training Matrix is used to define and measure the skills and training that your people have vs. the skills and training they need.
• And it can also be used as a Hiring Skills Matrix to compare the strengths and weaknesses of job candidates.
183
Standardization (contd’) • Skills Training Matrix
184
Standardization (contd’) • Production Analysis Board is a display that must be located at the exit of the cell (or the line) to show actual performance compared with planned performance on an hourly basis. • This tool gives great visibility on the current status and uncovers problems in order to link then to corrective actions.
185
Standardization (contd’) • Production Analysis Board
186
Standardization (contd’) • Production Analysis Board
187
Standardization (contd’) • Standardized Work and Kaizen o Standardized work is a process whose goal is to identify muda so that we can continually improve through team member involvement. o If standardized work does not change, we are regressing. o The leader’s responsibility is to maintain a good condition and to improve. o “Where there is no Standard, there can be no
Kaizen”, Taiichi Ohno
188
Some Evidence Of Standardized Work Areas •Clear, shiny aisle ways •Color coded areas •Slogans, banners
•No work-in-process ( WIP ) •One-Piece Flow •Standardized Work Sheets
189
Exercise 8:
Lets do the standard work and Kaizen exercise
190
Leveling: Line Balancing? Everyone is doing the same amount of work Doing the same amount of work to customer requirement
What is Line Balancing?
Variation is ‘smoothed’ No one overburdened
No one waiting Everyone working together in a BALANCED fashion 191
192
193
Example: Line Balance Chart This is a VISUAL production tool that enables the planning and organisation of individual, TIMED items of work to create the foundation for a balanced production line.
It is used as a tool to continuously drive out waste from operations and processes and it is also a valuable tool in implementing changes in customer demand> 194
Line Balance: Simple Example Over-processing
Overproduction which causes the other 6 wastes
5 mins
1
Inventory
Waiting
Transportation
25 mins
15 mins
10 mins
2
3
4
Motion
Constraint Overburden
This operator must WAIT for operator 2
This operator must WAIT for operator 3
2
3
4
25 20 mins
15 10 5
1
Rework
195
Line Balance: Simple Example Avoids overburden
Promotes onepiece FLOW
15 mins
1
Reduces Variation
Minimises the 7 wastes
15 mins
15 mins
10 mins
2
3
4
Redistribute the work 25
20 15 10 5
196
Pre-requisites To Line Balancing… Calculate Takt
Understand the ‘drumbeat’ of the CUSTOMER
Achieve CONSISTENCY in operations
Standardise
Enabling us to achieve our customers requirements by ‘managing our production effectively’ Variation in our operations demands more human intervention which, increases the risk of HUMAN ERROR
197
Takt Time Takt is a German word
It describes the metronome It is the principal that all activity within a business is synchronised by a pulse, set by the customer demand Takt
=
total time available total customer demand
198
Takt Time Customer demand = 10 units / month Total time available = 20 days
Takt = total time available total customer demand
Drumbeat = 1 part every 2 days
Each process needs to complete one unit every 2 days
Every 2 days
Process 1
Every 2 days
Process 2
Every 2 days
Process 3
Every 2 days
Process 4
Every 2 days
Process 5
Customer
199
Standardise Standard work layout Operation sequence
Capture the layout
From:
Cell/ Area
To:
Description:
PPE MUST BE WORN AT ALL TIMES
Scale:
stores
Indicate how the work flows
Highlight key information
Work station 1
Quality check
Part No.
Safety precaution
Std in process stock
Tool cabinet
Work station 3
Work station 2
Qty of SIPS
Takt Time
Cycle time
6 Name / position
Date
Name / position
Date
Name / position
200
Date
Standardise NO
REVISION
DATE PUM
ME
WORK INSTRUCTION SHEET
LOCATION:
SHEET……..OF………
DEPT:
DATE:
OPERATION NO.
PREPARED BY:
WP
NO
P.P.E.
MAIN STEPS
NO
OPERATING DESCRIPTION
JIGS/ TOOLS
OPERATION DESCRIPTION
PEGS REF:
HRS
AUTHORISATION: TL TL TL
Q
S
E
As per PEGS requirement
KEY POINTS
REQUIRED CHECKS
TIME
PUM
EXPLANATION/ EXAMPLES/ DIAGRAMS
TRAINING COMMENTS
201
ME
The Benefits Of The Pre-requisites Takt time What do you think are the benefits?
Standard Operations
202
The Benefits Of The Pre-requisites Takt time maximises the productivity due to: • Easily managed processes • Output of each process matches customer demand
Standard Operations provide: • Capable and repeatable processes • Process control at source • Improves accuracy of planning • Better adherence to plans • A platform from which continuous improvement can be made • Reduced costs • Improved quality • Basis for training
203
Method - Capture Current State Calculate TAKT
Customer demand = 19 units a month Time available = 20 days a month TAKT = Available time Customer demand TAKT = 20 days ( x 24 hrs in a day) 19 units
Current State Ops
TAKT = 25 hrs
TAKT Total work content Line Balance Ratio Line Balance Efficiency
204
3 25hrs
Method - Capture Current State Calculate TAKT
Why video?
Time the process
- Used to visually record activity
- Accurate method of recording - Irrefutable and unambiguous - Modern approach to establishing method
1.
Capture a representative sample of the process
2.
Review the video with the operators present
3.
Break down the ‘elements’ of work and record a time for each one
4.
Identify which of the elements are Value-added and which are non-value added
205
Method - Capture Current State The operators cycle is broken down into elements These elements are put into three main categories, these being :
Calculate Takt time
1. 2. 3.
Time the process
Working (man or machine) Walking Waiting
COMPANY
Break down the work elements
PART NAME
STANDARDISED WORK COMBINATION TABLE
PART NUMBER PROCESS WORKING SEQUENCE
1
ORIGINATOR
DATE SECTION VOLUME TAKT TIME
OPERATION NAME
TIME MANUAL
AUTO
WAIT
Fit bracket A
10
3
4
Walk to bench Machine Inspect
0 2 10
0 10 4
0 5 2
TAKT
SEC
OPERATION TIME
WALK
1 15 2
1
g
TOTAL ¨ISSUER COORDINATOR MGR ISSUER
KEY: Manual Auto
CHECKED
Walk Waiting
206 of 43
206
Method - Capture Current State Constraint – customer demand not being met
Calculate Takt time 30
Time the process
30
Takt (25 hrs)
25 20
Break down the work elements
15
17
15 10
5
Draw current state Line Balance
1
2
3 Current State Ops
Calculate total work content (stacked time) :
15 + 30 + 17 = 62 hrs
3
Takt
25 hrs
Total work content
62 hrs
Line Balance Ratio Line Balance Efficiency
207
Method - Capture Current State Or alternatively ….. 1.
Identify the business area to be balanced
3.
Break down each process by task i. ii. iii.
Machining
Treatments
Assembly
Op 2
Op1
2.
Form small group with team leaders/ operators
Use ‘post it’ notes Write on the process name Place on a board in sequence
4. i. ii. iii.
Main process steps
Sub elements of work
Agree estimated time for each job and number of operators involved Is it 1, 5 or 10 hours
Estimate a time for each sub element (use a rough guide) Add up all the elements Write on the main ‘post it’ the total time and total operators 3
Number of operators
2 1 5hrs
Total estimated time
2
2 1 5hrs
1
10hrs
2 1 1hr
1 2 5 hrs
1 2 5 hrs
208
1 2 5 hrs
1 2 5 hrs
Method - Capture Current State Calculate TAKT
Time the process
2 1
• Lay all the ‘post its’ out in sequence so that all of the processes are visible
5hrs
Break down the work elements
• Draw on the TAKT line (or use string)
3 2
2 1
5hrs
2
1
1
10hrs
5hrs
2 1 1hr
1 2 5 hrs
1 2 5 hrs
Draw current state Line Balance
TAKT
209
1 2 5 hrs
1 2 5 hrs
Method - Capture Current State Target Manpower = Total Work Content Takt time
Calculate Takt time
Time the process
30 30
Takt (25 hrs)
25
Break down the work elements
20
15
17
15 10
Draw current state Line Balance
5
1
2
3 Current State
Calculate target manpower
Total work content = 62 hrs
Takt time = 25 hrs
= 2.48 = 3 operators
Ops
3
Takt
25 hrs
Total work content
62 hrs
Line Balance Ratio Line Balance Efficiency
210
Method - Capture Current State Calculate Takt time
Line balance ratio = Total work content No. of stations x longest operation Line balance Efficiency =
Time the process
Total work content Target manpower x Takt
30 30
Break down the work elements
Takt (25 hrs)
25 20
15
17
15
Draw current state Line Balance
10 5
1
2
3
Calculate target manpower
Target manpower
Line Balance Ratio Calculate Line Balance Ratio & Efficiency
Current State
= 62 hrs (3 x 30)
X 100
= 69%
What could be achieved without Line Balance Efficiency = 62 hrs X 100 reducing waste and still meeting = 83% (3 x 25) TAKT – simply REBALANCING!!
3
Takt
25 hrs
Stacked time
62 hrs
Line Balance Ratio
69%
Line Balance Efficiency
83%
211
Method – Balance to TAKT 30 30
Takt (25 hrs)
25 20
17
15
30
25
25 20
15
15
10
10
5
Takt (25 hrs)
25 12
Target 83% Efficiency
5
1
2
3
1
2
3
Example
212
Method – Balance to TAKT 1.
Identify the elements of work that exceed TAKT
Balance to TAKT 30 30
Reduce Non Value Added and eliminate waste
Takt (25 hrs)
25 20
17
15
15 10
Re-allocate work & re-balance
5
1
2
3
Update calculations
2. Can this be improved?
COMPANY DATE ORIGINATOR CHECKED PART NAME SECTION STANDARDISED WORK COMBINATION VOLUME TABLE PART NUMBER PROCESS TAKT TIME SEC TIME WORKING OPERATION TIMETAKT OPERATION NAME SEQUENCE MANUAL 10AUTO 4 WALK 3 WAIT 1 0 0 0 1 Fit bracket2 A10 5 15 10 4 2 2 Walk to bench 1 Machine Inspect
Yes
No
Complete work instruction (standardise) & implement
Refer to Standard Work Combination table
TOTAL ¨ISSUER COORDINATOR MGR ISSUER
3.
KEY: Manual Auto
Walk Waiting
Identify where work can be re-allocated 213
Method – Balance to TAKT Or alternatively……
Balance to TAKT
Reduce Non Value Added and eliminate waste
Re-allocate work & re-balance
1.
Refer to the ‘post it’ notes on the wall
2.
Use magnetic strips to signify the ‘post it’ notes (elements of time)
Update calculations
3 2 1
Can this be improved?
1
1 2
1 2
1 2
2 1 1hr 1 2
5 hrs
5 hrs
5 hrs
5 hrs
5hrs
Yes
2 2 1 5hrs
10hrs
No No
Complete work instruction (standardise) & implement
3.
Using the experience of the team leaders/ operators, invite them to rebalance the work to below TAKT 214
Method – Identify value added and non-value added time Value Adding: Any process that changes the nature, shape or characteristics of the product, in line with customer requirements e.g machining, assembly
What is Value added and non-value added time?
Non-Value Adding,but unavoidable with current technology or methods. Any work carried out that does not increase product value e.g inspection, part movement, tool changing, maintenance
Waste And don’t forget !!
All other meaningless, non-essential activities that do not add value to the product you can eliminate immediately e.g. looking for tools, waiting time
215
Method – Identify value added and non-value added time
Traditional Focus • Work Longer-Harder-Faster • Add People or Equipment
Value Added
Lean Manufacturing
• Improve the Value Stream to Eliminate Waste
Waste
LEAD TIME 216
Method – reduce non-value added time and eliminate waste So, identify the category of work on the standard work combination table
Balance to TAKT
Reduce Non Value Added and eliminate waste
COMPANY
DATE
PART NAME
SECTION
PROCESS WORKING SEQUENCE
1 Re-allocate work & re-balance
OPERATION NAME
Fit bracket A
TIME MANUAL AUTO
WAIT
3
4
Walk to bench 0 0 2 10 Machine 10 4 Inspect
0 5 2
10
SEC
OPERATION TIME
WALK
1 15 2
1
Yes
No No
Complete work instruction (standardise) & implement
TOTAL ¨ISSUER COORDINATOR MGR ISSUER
KEY: Manual Auto
CHECKED
VOLUME TAKT TIME
Update calculations
Can this be improved?
STANDARDISED WORK COMBINATION TABLE
PART NUMBER
ORIGINATOR
Walk Waiting
217 of 43
217
TAKT
Method – Balance to TAKT Or alternatively… Balance to TAKT
Reduce Non Value Added and eliminate waste
Re-allocate work & re-balance
Update calculations
Can this be improved? No No
Complete work instruction (standardise) & implement
Yes
Detail each process step (on format above) Indicate whether the work is : • Wait • Walk • Work
Now you can split the operations on the board into elements of Value added and non value added work 218
Method – reduce non-value added time and eliminate waste Balance to TAKT
Highlight the Value added and the non-value added work elements on the line balance board
Reduce Non Value Added and eliminate waste
Takt (25 hrs)
30
25 20
Non value added activity
15
Re-allocate work & re-balance
10
Value added activity
5
1
Update calculations
Can this be improved?
2
3
Yes
No No
Complete work instruction (standardise) & implement
Use red strips to signify non-value added work
219
Method - reduce non-value added time and eliminate waste Balance to TAKT
Non value added activity Value added activity
Reduce Non Value Added and eliminate waste
30
Takt (25 hrs)
25 20 15
Re-allocate work & re-balance
10 5
1
Update calculations
• Can this be improved?
Yes
2
3
Reduce the NVA activity by applying waste removal tools (changeover reduction, 5C, process mapping etc)
No No
Complete work instruction (standardise) & implement
Attack the red, redistribute the green !!
Future State Ops
2
Takt
27 hrs
Stacked time
57 hrs
Line Balance Ratio Line Balance Efficiency
220
Method – Re-Allocate & Re-Balance Balance to TAKT 30
Takt (25 hrs)
25
Reduce Non Value Added and eliminate waste
20 15
10 5
Re-allocate work & re-balance
1
2
3
Update calculations 30
Takt (25 hrs)
25
Can this be improved? No No
Complete work instruction (standardise) & implement
Yes
20
Operator freed up for other process or improvement team
15 10 5
1
2
3
221
Method - Update The Calculations Line balance ratio = Balance to TAKT
Total work content No. of stations x longest operation
Line balance Efficiency =
Reduce Non Value Added and eliminate waste
30
Future State
Takt (25 hrs)
25
Re-allocate work & re-balance
Total work content Target manpower x Takt
Ops
20 15
2
Takt
25 hrs
Total work content
44 hrs
10 5
Update calculations
1 Can this be improved? No No
Complete work instruction (standardise) & implement
Yes
Line Balance Ratio
2
= 44 hrs (2 x 24)
Line Balance Efficiency
= 44 hrs (2 x 25)
Line Balance Ratio X 100
X 100
= 92%
Line Balance Efficiency
= 88%
Previous balance ratio = 69% Improvement of 23%
222
92% 88%
Method - Continuous Improvement Balance to TAKT
Act
Plan
A
Reduce Non Value Added and eliminate waste
Check
P
C D
Do
Re-allocate work & re-balance
Continuously use waste elimination tools
Update calculations
Yes
Can this be improved? No
Complete work instruction (standardise) & implement
Value Added
Waste LEAD TIME 223
Method - Standardise Standard work layout Operation sequence
Capture the NEW layout
From:
Cell/ Area
To:
Description:
PPE MUST BE WORN AT ALL TIMES
Part No. Scale:
Tool cabinet
stores
Indicate how the work flows
Tool cabinet
Highlight key information
Work station 1
Quality check
Safety precaution
Std in process stock
Work station 3
Work station 2
Qty of SIPS
Takt Time
Cycle time
6 Name / position
Date
Name / position
Date
Name / position
224
Date
Method - Standardise NO
REVISION
DATE Mgr
ME
WORK INSTRUCTION SHEET
LOCATION:
SHEET……..OF………
DEPT:
DATE:
OPERATION NO.
PREPARED BY:
WP
NO
P.P.E.
MAIN STEPS
NO
OPERATING DESCRIPTION
JIGS/ TOOLS
OPERATION DESCRIPTION
PEGS REF:
HRS
AUTHORISATION: TL TL TL
Q
S
E
KEY POINTS
REQUIRED CHECKS
TIME
PUM
EXPLANATION/ EXAMPLES/ DIAGRAMS
TRAINING COMMENTS
225
ME
Visual Management The new line balance chart should be displayed on the cell The impact of changes in resource or Takt on operator cycle times can be seen instantly Opportunities for Kaizen activities can be easily identified
226
Summary Balance to TAKT & eliminate waste
Capture the current state
Balance to TAKT
Calculate Takt time
Time the process 2
Current State Operators
Takt
3
62 hrs
Line Balance Efficiency
69%
Line Balance Ratio
Future State Break down the work elements
25 hrs
Total work content
83%
1
5hrs
Reduce Non Value Added and eliminate waste
Draw current state Line Balance
Calculate target manpower
Re-allocate work & re-balance
Update calculations
Can this Can this be improved? be improved?
Yes
Ops
2
Takt
25 hrs
Total work content
44 hrs
Line Balance Ratio
92%
Line Balance Efficiency
No
Calculate Line Balance Ratio & Efficiency
Complete work instruction (standardise) & implement
227
88%
Lean Management House Goal Customer Focus: Highest Quality, Lowest Cost, Shortest Lead Time by continually eliminating Muda
Just-In-Time
Jidoka Involvement:
Flexible, motivated team members continually seeking a better way
Standardization Stability 228
Just In Time (JIT) • JIT production means producing the right item at the right time in the right quantity, anything else counts as muda.
• JIT establishes flow processes so there is an even, balanced flow throughout the entire production process. • JIT benefits: o o o o
Reduced inventory levels (improved profits) Less wastes: improved product quality Reduced delivery lead times Reduced costs 229
Just In Time (JIT) • JIT production relies on: o Production Leveling (Heijunka) as a foundation. o And three operating elements: Continuous flow. Takt time. Pull system.
• In turn, pull system, continuous flow, and heijunka depend on quick changeovers, visual management through 5S, and capable processes through TPM, 5S and standardized work.
230
JIT (cont’d) • Kanban is a signaling device that gives authorization and instructions for the production or withdrawal (conveyance) of items in a pull system. • Usually, it is a card in a rectangular vinyl envelope. • It contains information such as: part name, part number, external supplier or internal supplying process, pack-out quantity, storage address, and consuming process address.
231
JIT (cont’d) • There are two kinds of Kanban: o Production Kanban, which specifies the kind and quantity of product that the upstream process (supplier) must produce. o Withdrawal Kanban, which specifies the kind and quantity of product that the downstream process (customer) may withdraw. “Production” Card
“Withdrawal” Card
Customer Process
Supplying Process product
product
Finished Goods Store 232
JIT (cont’d) • Production Leveling (Heijunka) means distributing the production volume and mix evenly over time. • Heijunka balances the workload in production such that it achieves the best possible utilization of people and equipment without straining them while effectively responding to continuous changes in customer demand. • Heijunka requires quick changeovers.
233
JIT (cont’d) • Heijunka Example: Instead of producing all medium tractors then all small tractors then all large tractors throughout the week, level production such that you would alternate small batches of the three sizes during each day.
Traditional Production
Leveled Production 234
JIT (cont’d) • Heijunka Box is a tool used to level the mix and volume of production by distributing kanban within a facility at fixed intervals.
235
JIT (cont’d) • SMED (Single Minute Exchange of Die) is a process for changing over production equipment from one part number to another in as little time as possible. • Benefits of SMED: o o
o o o o
Reduced setup time Higher efficiencies Increased capacity Reduced WIP’s Lower batch sizes Increased safety
o o
o o
Increased flexibility Elimination of waiting Operators preference Stockless production
236
JIT (cont’d) • SMED (Single Minute Exchange of Die) is a method for systematically reducing setup and retooling times. • With shorter setup times, a machine that was a bottleneck (constraint) can yield additional production capacity. • Alternatively, more frequent changeovers at constant capacity can reduce inventory ahead of and following the machine.
Slow changeover due to poor positioning of dies
Quick changeover
237
JIT (cont’d) • SMED key definitions: o Changeover (Setup) is the process of switching from the production of one product or part number to another in a machine (e.g., a stamping press or molding machine) or a series of linked machines (e.g., an assembly line or cell) by changing parts, dies, molds, fixtures, etc. o Changeover time is measured as the time elapsed between the last piece in the run just completed and the first good piece from the process after the changeover. o Internal step is a step which can be done only when a machine is stopped (such as inserting a new die). o External step is a step that can be performed while the machine is running (such as transporting the new die to the machine).
238
JIT (cont’d) • SMED is performed in six steps:
239
JIT (cont’d) • Traditional Flow (Batch and Queue) o A mass production approach to operations in which large lots (batches) of items are processed and moved (pushed) to the next process—regardless of whether they are actually needed—where they wait in a line (a queue).
Process A
Process B
10 minutes
Process C 10 minutes
10 minutes
Lead Time 30+ minutes for total order 21+ minutes for first piece
240
JIT (cont’d) • Continuous Flow (One-Piece Flow) o Producing and moving one item at a time (or a small and consistent batch of items) through a series of processing steps as continuously as possible, with each step making just what is requested by the next step.
Process Process Process A B C
12 min. for total order 3 min. for first part
241
JIT (cont’d) • Push Systems and Pull Systems
o Production quantity is determined based on demand estimates and current inventories
o Pull systems start production as a response to a real demand (from an end customer or the next process downstream)
242
JIT (cont’d) • There are 3 Types of Pull Systems o Supermarket Pull System o Sequential Pull System
o Mixed Pull System
243
JIT (cont’d) • Supermarket Pull System o The most basic and widespread type, also known as a fill-up or replenishment pull system. o In a supermarket pull system each process has a store -- a supermarket -- that holds an amount of each product it produces.
o Each process simply produces to replenish what is withdrawn from its supermarket through kanbans and heijunka box. o The disadvantage of a supermarket system is that a process must carry an inventory of all part numbers it produces, which may not be feasible if the number of part numbers is large. o Works best when customer orders are frequent and lead times are short and stable (e.g. auto parts industry).
244
JIT (cont’d) • Supermarket Pull System
245
JIT (cont’d) • Sequential Pull System o Used when there are too many part numbers to hold inventory of each in a supermarket. o Products are essentially “made-to-order” while overall system inventory is minimized. o Scheduling department must set the right mix and quantity of products to be produced. This can be done by placing production kanban cards in a heijunka box, often at the beginning of each shift. o A sequential system requires strong management to maintain, and improving it may be a challenge on the shop floor. o Works best when order frequency is low and customer lead times is long (e.g. custom producers).
246
JIT (cont’d) • Sequential Pull System
247
JIT (cont’d) • Mixed Pull System o Mixed pull system is a combination of supermarket and sequential pull systems running in parallel. o Often an analysis is performed to segment part numbers by volume into (A) high, (B) medium, (C) low, and (D) infrequent orders. o High frequency orders are put through the supermarket system. o Low frequency orders are put through the sequential system. o Works best for manufacturers producing both high and low frequency items.
248
JIT (cont’d) • Mixed Pull System
249
Lean Management House Goal Customer Focus: Highest Quality, Lowest Cost, Shortest Lead Time by continually eliminating Muda
Just-In-Time
Jidoka Involvement:
Flexible, motivated team members continually seeking a better way
Standardization Stability 250
Jidoka • Jidoka “Automation with a human touch” means providing machines and operators the ability to detect when an abnormal condition has occurred and immediately stop work. • This enables operations to build in quality at each process and to separate operators and machines for more efficient work.
251
Jidoka (cont’d) • Jidoka highlights the causes of problems because work stops immediately when a problem first occurs. • This leads to improvements in the processes that build in quality by eliminating the root causes of defects. • The evolution toward Jidoka: automatic feed
automatic feed
andon light
automatic ejection
Manual feed and watch machine cycle
Watch machine cycle
Self-monitoring machine 252
Jidoka (cont’d) • Poka-Yoke (Mistake-proofing) or (Error-proofing) means implementing simple low-cost devices that either detect abnormal situations or stop the line to prevent defects. • Poka-Yoke reduce worker’s physical and mental burden by eliminating the need to constantly check for the common errors that leads to defects.
253
Jidoka (cont’d) • Some of the most common errors: o o o o o o o o o o
Missing process steps. Process errors. Mis-set work pieces. Missing parts Wrong parts. Wrong work piece processed. Faulty machine operation. Adjustment errors. Equipment not set up properly. Tools and jigs inadequately prepared.
254
Jidoka (cont’d) • A good Poka-Yoke satisfies the following: o o o o
Simple, with long life and low maintenance. High reliability. Low cost. Designed for workplace conditions.
• The best source of Poka-Yokes is shop floor team members. • An effective Poka-Yoke: o Inspects 100 percent of the items. o Provides immediate feedback so as to compel countermeasures.
255
Jidoka (cont’d) • When a Poka-Yoke detects an error, there are two types of action: o Shutdown: These are the most powerful Poka-Yokes. For example, a light sensor stops a drilling operation when it fails to detect the requisite number of holes in the work piece. o Warning: These alert us to abnormalities by activating a buzzer or light. For example, the andon boards alerts the group leader to problems by lighting the process number, playing a piece of music, or both.
Simple Andon
Complex Andon 256
Jidoka (cont’d) • Poka-Yoke examples from daily life:
257
Jidoka (cont’d) • Poka-Yoke examples in manufacturing Elimination
Detection
258
Jidoka (cont’d) • Poka-Yoke examples in manufacturing Detection
Detection
259
Lean Management Tools Continuous Improvement
Kanban
Flow
Leveling
Standardized Work 5S
Visual
Pull Lean Starts with VSM
Poka Yoke SMED
Change Management
TPM
VSM
260
Value Stream Mapping (VSM) • VSM is a visual representation of all the steps (VA/ NVA) needed to fulfill a customer order from time of ordering to the delivery point.
• VSM describes two flows: o Orders traveling upstream from the customer o Products traveling downstream to the customer
261
Value Stream Mapping (VSM)(cont’d) • VSM enables us to: o See the big picture, not just individual processes o See how the process currently operates o See linkages between information and material flow o See the waste and the source of waste o Establish a common language for improvement o Foundation for designing lean flow and the future state
262
Value Stream Mapping (VSM)(cont’d) • VSM objectives: o o o o o
Correct specification of value Elimination of wasteful steps “Flow where you can” “Pull where you can’t” Management toward perfection
263
Value Stream Mapping (VSM)(cont’d) • VSM process steps: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
Select one value stream - a product family Walk the physical flow of material – no data collection Walk the flow again, collecting data Draw the Current State Map Identify opportunities to eliminate waste and create flow Draw the Future State Map Generate a Value Stream Plan Start making the improvements Conduct Value Stream Reviews Repeat the cycle
264
Value Stream Mapping (VSM)(cont’d) • Selecting a Value Stream (STEP 1) o Select one value stream … shared definition of value
by customer or customer category by product or product family by plant by service - production, spares, repair
o A family is a group of items that pass through similar processing steps and over common equipment. o Focus on the downstream processes not upstream steps. Upstream processes may serve many product families in a batch mode.
265
Value Stream Mapping (VSM)(cont’d)
F E D C B A
Products
• Create a matrix if your product mix is complicated.
Assembly and Equipment 1 2 3 4 5 6 X X X X X X X X X X X X X X X X X X X X X X X X X X
A Product Family
266
Value Stream Mapping (VSM)(cont’d) • Levels of a Value Stream o You can value stream map at different levels o Across companies is too complicated to start with o Start mapping door-to-door within your own facility: This is under your control It is easier to make improvements immediately
o Expand outward to broaden the value stream later
Process Level
Single Plant (Door-to-door)
Multiple Plants
Across Companies
267
Value Stream Mapping (VSM)(cont’d) • Walk the Flow (STEP 2) o Let the workers know what you are doing. o Walk the flow first (no data collection). Walk it yourself. o Begin at shipping and work upstream. This begins with the processes that are linked closer to the customer. If it is too confusing, start at the beginning and go downstream. o See how the material moves. o See the piles of material and WIP. o See how people work. o Identify the major process steps
268
Value Stream Mapping (VSM)(cont’d) • Walk the Flow Again (STEP 3) o Walk the flow again, this time collecting data. o Begin at shipping and work upstream. o Obtain the data yourself, do not rely on computer printouts. o Use pencil and paper. o Ask questions and listen. o Collect data relevant to the definition of value.
269
Value Stream Mapping (VSM)(cont’d) • Walk the Flow Again-Typical Data Collected (STEP3) o Customer Need Demand … Number of units per day the customer wants Available work time … Scheduled work time minus breaks, meetings and clean up time
o Inventory WIP … Number of units waiting to be worked on or waiting to be moved. Finished Goods … Number of units in stores or waiting to be shipped.
270
Value Stream Mapping (VSM)(cont’d) • Walk the Flow Again-Typical Data Collected (STEP3) o Each Process Step Cycle time – CT … The time between one part coming off the process and the next part coming off. Yield … First Time Yield or scrap% Number of people … Required to operate the process. Uptime … The percentage of time the equipment is available to run, when it is needed to be run Batch Size … typical lot size or minimum Change Over Time – Co … The time from the last good piece of one batch to the first good piece of the next batch EPE … Every part every __. How often do you changeover to produce this part?
271
Value Stream Mapping (VSM)(cont’d) • Walk the Flow Again-Calculated Data (STEP 3) o Takt Time – TT … How often does the customer need another unit. (Available work time per day)/(demand per day)
o Inventory … measured in days. (Number of units)/(demand per day)
Overall Flow o Process Lead Time … The time for a unit to make it all the way through the process (Sum of Inventory Days) + (Sum of Cycle Times)
o Processing Time … The time spent actually performing work on the unit (Sum of Cycle Times)
272
Value Stream Mapping (VSM)(cont’d) • Draw the Current State Map(STEP 4) o Drawing the future state map begins with the current production situation. o Symbols and icons assure a consistent language. o Draw the rough draft as you walk the floor in step 3 collecting data. o Use pencil and paper, not a computer. o Map the whole value stream, not just a segment.
273
Value Stream Mapping (VSM)(cont’d) • Example
PROCESS BOX ICONS
DATA BOX ICONS - C/T time - C/O time - Up time - Scrap
274
Value Stream Mapping (VSM)(cont’d) • Example Information Flow
INVENTORY ICONS WITH PUSH ARROWS
Material Flow 275
Value Stream Mapping (VSM)(cont’d) • Mapping Tips 1 o Use Colored Post-it notes paper for Mapping (Easier to move Post-it notes than redraw)
o Use roll of butcher paper so you can use a wall and see the whole VSM o Use string or ribbon to show material & information flows o Decide whether to count all parts or sample
276
Value Stream Mapping (VSM)(cont’d) • Mapping Tips 2 o Best to map production lines between Monday and Wednesday o Use someone from the line or process to walk you through it first, post-it note process, come back and get Real Data and Times o If you plan on using the times to balance your process then do not take shortcuts - you will be way off (Embarrass yourself!!) o See with your hands. No “Armchair Lean!”
277
Value Stream Mapping (VSM)(cont’d) • Mapping Tips 3 o Calculate production lead time for inventory triangles by dividing quantity of inventory by the customer daily requirement This is a really neat trick! It turns a count of inventory into the number of production days that inventory represents
o Add a title and date the map o Remember “Always start with the Customer”
278
Value Stream Mapping (VSM)(cont’d)
279
Value Stream Mapping (VSM)(cont’d)
280
Value Stream Mapping (VSM)(cont’d) • Material Flow Icons Assembly XYZ Corporation Process Box
Supplier/ Customer
C/T=45 sec. C/O=30 min. 3 Shifts. 2% Scrap
300 pieces 1 day
Data Box
Inventory
I
Supermarket
Mon + Wed Shipment
FIFO Push
Physical Pull
Finished Goods to Customer
First-In-First-Out Flow
281
Value Stream Mapping (VSM)(cont’d) • Information Flow Icons
Manual Information Flow
Kanban Arriving in Batches
Electronic Information Flow
Withdrawal Kanban
Weekly Schedule
OXOX
Schedule
Load Leveling Box
Production Kanban
Sequenced-Pull Ball
Signal Kanban
282
Kanban Post
Value Stream Mapping (VSM)(cont’d) • General Icons Uptime Changeover
Operator
Kaizen Lightning Burst Buffer or Safety Stock “Go See” Production Schedule
283
Value Stream Mapping (VSM)(cont’d) • Draw the Current State Map (STEP 4) State St. Assembly
18,400 pcs/mo
First - Show the Customer
-12,000 “L”
-6,400 “R” Tray=20 pcs. 2 Shifts
284
Value Stream Mapping (VSM)(cont’d) Second - add the major Processes, Data Boxes, and Inventory Triangles
State St. Assembly
18,400 pcs/mo -12,000 “L”
-6,400 “R” Tray=20 pcs.
The data obtained is put in the data box directly beneath the process box. I
Stamping
Coils 5 days
I
S. Weld # 1
4600 L 2400 R
I
S. Weld # 2
1100L 600 R
I
Assy # 1
1600 L 850 R
I
2 Shifts
Assy # 2
1200 L 640R
I
2700 L 1440 R
CT=1sec. Co=1 hr. Uptime=85%
CT=39sec .Co=10 min. Uptime=100%
CT=46sec .Co=10 min. Uptime=80%
CT=62sec Co=0 . Uptime=100%
CT=40sec .Co=0 Uptime=100%
27,600 sec. avail EPE=2 weeks
2 shifts 27,600 sec.avail
2 shifts 27,600 sec.avail
2 shifts 27,600 sec.avail
2 shifts 27,600 sec.avail
285
Shipping
Value Stream Mapping (VSM)(cont’d) The supplier of raw material is identified with a factory icon. In this case they deliver 500 ft coils
Michigan
State St. Assembly
Steel Co.
18,400 pcs/mo -12,000 “L”
Third - Show the Material Flow
500 Ft. Coils
-6,400 “R” Tray=20 pcs.
Tues & Thurs.
2 Shifts
A truck icon and broad arrow indicate movement of finished goods to the customer and raw material to the site. I
I
Stamping
Coils 5 days CT=1sec. Co=1 hr.
S. Weld # 1
S. Weld # 2
1100L 600 R
4600 L 2400 R
Uptime=85% 27,600 sec. avail EPE=2 weeks
I
I
Assy # 1
1600 L 850 R
I
1X Daily
I
Assy # 2
2700 L 1440 R
1200 L 640R
CT=39sec .Co=10 min.
CT=46sec .Co=10 min.
CT=62sec Co=0 .
CT=40sec .Co=0
Uptime=100% 2 shifts 27,600 sec.avail
Uptime=80% 2 shifts 27,600 sec.avail
Uptime=100% 2 shifts 27,600 sec.avail
Uptime=100% 2 shifts 27,600 sec.avail
Shipping
Value Stream Mapping (VSM)(cont’d) • Information flow is drawn from right to left in the top half of the map space. • solid line arrows (paper transfer) • arrow with a lightening bolt (electronic transfer)
• Material movements that are pushed are represented by a striped arrow PUSH • A process that produces regardless of the needs of the downstream customer • A guess as to what is needed (forecasts) • Processes are allowed to set batch sizes and produce at a pace that makes sense from its perspective not the customers.
287
Fourth - show Information Flows & Push Arrows
Value Stream Mapping (VSM)(cont’d) 90/60/30 day Forecasts
Production Control
6 WEEK Forecast
MRP
Michigan
Daily Order
Steel Co.
State St. Assembly
18,400 pcs/mo -12,000 “L” -6,400 “R” Tray=20 pcs.
500 ft. Coils WEEKLY SCHEDULE
2 Shifts Tues & Thurs.
1X Daily
I
Coils 5 days
Stamping
I
S. Weld # 1
4600 L 2400 R
CT=1sec. Co=1 hr. Uptime=85% 27,600 sec. avail EPE=2 weeks
S. Weld # 2 I
I
1100R 600 R
CT=39sec .Co=10 min. Uptime=100% 2 shifts 27,600 sec.avail
Assy # 1
CT=46sec .Co=10 min. Uptime=80% 2 shifts 27,600 sec.avail
1600 L 850 R
Assy # 2 I
Shipping I
2700 L 1200 L 1440 R CT=62sec 640R CT=40sec Co=0 . .Co=0 Uptime=100% Uptime=100% 2 shifts 2 shifts 27,600 sec.avail 27,600 sec.avail
Value Stream Mapping (VSM)(cont’d) • The timeline summarizes the current condition of the value stream • Production Lead-Time is the time it takes for a part to make its way through the shop floor beginning with the raw material • Inventory Lead-time( shown with the inventory triangles)is calculated as follows: o Inventory quantity divided by the daily customer requirements. Then add all process inventory lead-times. Inventory Quantity Daily Customer Requirement
289
Fifth (Final) - Show Timeline 90/60/30 day Forecasts
Production Control
6 WEEK Forecast
MRP
Michigan
State St. Assembly
Daily Order
Steel Co.
18,400 pcs/mo -12,000 “L” -6,400 “R” Tray=20 pcs.
500 ft. Coils WEEKLY SCHEDULE
2 Shifts Tues & Thurs. 1X Daily I
Coils 5 days
Stamping
S. Weld # 1
I
4600 L 2400 R
5 days
CT=1sec. Co=1 hr. Uptime=85% 27,600 sec. avail EPE=2 weeks 1 sec
S. Weld # 2
Assy # 1
I
I
1100R 600 R CT=39sec .Co=10 min. Uptime=100% 2 shifts 27,600 sec.avail
7.6 days
CT=46sec .Co=10 min. Uptime=80% 2 shifts 27,600 sec.avail 1.8 days
39 sec
Shipping
I
I
1600 L 850 R CT=62sec Co=0 .
1200 L 640R CT=40sec .Co=0 Uptime=100% Uptime=100% 2 shifts 2 shifts 27,600 sec.avail 27,600 sec.avail
2.7 days 46 sec
Assy # 2
2 days 62 sec
40 sec
2700 L 1440 R
(PLT) 4.5 days=23.6 days (PT) =188 sec
Complete VSM 90/60/30 day Forecasts
Production Control
6 WEEK Forecast
MRP
Michigan
State St. Assembly
Daily Order
Steel Co.
18,400 pcs/mo -12,000 “L” -6,400 “R”
500 ft. Coils
Tray=20 pcs.
WEEKLY SCHEDULE
2 Shifts Tues & Thurs. 1X Daily I
Coils 5 days
Stamping
S. Weld # 1
I
4600 L 2400 R
5 days
CT=1sec. Co=1 hr. Uptime=85% 27,600 sec. avail EPE=2 weeks 1 sec
S. Weld # 2
Assy # 1
I
I
1100R 600 R CT=39sec .Co=10 min. Uptime=100% 2 shifts 27,600 sec.avail
7.6 days
CT=46sec .Co=10 min. Uptime=80% 2 shifts 27,600 sec.avail 1.8 days
39 sec
Shipping
I
I
1600 L 850 R CT=62sec Co=0 .
1200 L 640R CT=40sec .Co=0 Uptime=100% Uptime=100% 2 shifts 2 shifts 27,600 sec.avail 27,600 sec.avail
2.7 days 46 sec
Assy # 2
2 days 62 sec
40 sec
2700 L 1440 R
(PLT) 4.5 days=23.6 days (PT) =188 sec
Value Stream Mapping (VSM)(cont’d) • What is wrong with previous VSM? • 3 VA processes • Traditional mass production thinking about economies of scale • Batches pushed through => waste • Look at VA time compared to time in plant
292
Value Stream Mapping (VSM)(cont’d) • What makes a Value Stream Lean? o o
o o
Primarily the elimination of the number one waste… OVERPRODUCTION!!! Since this material is not yet needed it must be handled, counted, stored. Defects remain hidden in inventory queues Overproduction results in shortages, because processes are busy making the wrong things.
293
Value Stream Mapping (VSM)(cont’d) • Eliminate Waste (STEP 5) o o o o o o o
Overproduction Waiting Transportation Unnecessary Processing Inventory Unnecessary Motion Correction
o Wasting A Person’s time or talent
294
Value Stream Mapping (VSM)(cont’d) • Overproduction - The primary waste o Making parts faster than is required Excess Inventory Time wasted, that could be used to make product that is required
• Waiting o An operator waiting for a long machine cycle to end
• Transportation o Moving parts and products does not add value - it just adds cost
295
Value Stream Mapping (VSM)(cont’d) • Unnecessary Processing o Booking work into a store and then having to book it back out again to use.
• Inventory o There is a cost to the Company for carrying inventory o There is always the risk that it can become obsolete o It covers up other inefficiencies e.g. Long set-up times
• Unnecessary Motion o Any motion of a person that does not add value Operators / Setters looking for tooling
296
Value Stream Mapping (VSM)(cont’d) • Correction o Reworking defective materials
• Things to remember about waste o It is a symptom rather than a root cause of the problem o It points to problems within the system, at both process and value stream levels o We need to find and address the causes of the waste
297
Value Stream Mapping (VSM)(cont’d) • Create Flow (STEP 5) o We are concerned with system efficiency rather than the efficiency of an individual process
o The question is, how fast should we produce?
298
Value Stream Mapping (VSM)(cont’d) • Takt Time (STEP 5) o We should match the rate of production to the rate of sales o Takt is the German word that means “beat” or “pace” Takt Time
= Effective working time per day Customer requirement per day = 27,000 sec = 59 sec 460 pieces
o What is the effective working time per day? o What do we do about machine down time? o Why is cycling faster than takt expensive? 299
Value Stream Mapping (VSM)(cont’d) • What is Flow? (STEP 5)
300
Value Stream Mapping (VSM)(cont’d) • Where do we use Flow? (STEP 5) o Use continuous flow wherever possible o Where can not we use continuous flow?
Long set-ups Large distances Downtime problems Long lead-times
301
Value Stream Mapping (VSM)(cont’d) • Alternatives to Continuous Flow (STEP 5) o Kanban A signal that provides an instruction to regulate the sequence and timing of production
o Two-bin Bins used to regulate production
o Buffer stock Standard work Curtain operation
o Supermarket Controlled quantity of inventory Visual controls Owned by the supplier
302
Value Stream Mapping (VSM)(cont’d) • A Supermarket Pull System(STEP 5) o PURPOSE: Controls production at the supplying process without trying to schedule it. Controls production between flows.
Production KANBAN
Withdrawal KANBAN
Supplying Process
Customer Process
A
B
PRODUCT
Supermarket
1) CUSTOMER
303
Value Stream Mapping (VSM)(cont’d) • A Supermarket Pull System(STEP 5) o A pull system between processes… gives accurate build instructions to the upstream process without trying to predict downstream demand instead of forecasting the upstream process.
o The pull by the downstream process determines: what the upstream produces when
and in what quantity.
o Should be located near the supplying process. o Are only used when continuous flow will not work. o There is a cost - inventory and material handling.
304
Value Stream Mapping (VSM)(cont’d) • Schedule Only One Point (STEP 5) o If pull systems schedule upstream process we can try to schedule only one point in the value stream – Pacemaker. o No supermarkets downstream of the schedule point (except finished goods). schedule
schedule
305
Value Stream Mapping (VSM)(cont’d) • Draw the Future State Map (STEP 6) o THE PURPOSE: Highlight sources of waste Eliminate them In a short period of time.
o THE GOAL: To build a chain of production where the individual processes are linked to the customer(s) either by continuous flow (the best) or pull and each process gets as close as possible to producing only what the customer(s) need when they need it.
o What can we do with what we have?
306
Value Stream Map – Current State
Suppliers
90/60/30 day Forecasts
Production Control
6 WEEK Forecast
MRP
Order Entry
WEEKLY SCHEDULE
Orders/day = 36 Queue = 1.5 Days
Lead Time - 34 Days
Customer
Demand = 45 per day 2 shifts Takt Time = 18.2 Minutes Competitive Lead Time = 3 Days
1X Daily I
Coils 5 days
Stamping
S. Weld # 1
I
342 CT=1sec Co=1 hr. Uptime=85% 1 shift 5 days
Assembly
Test I
81 CT=3 min Co=10 min. Uptime=70% 1 shift
7.6 days 1 sec
I
1.8 days 3 min
90
202 CT= 67 min Co= 23 min
CT= 4 min Co=0
FTY = 67% 2 shifts
Uptime=100% 2 shifts
2.7 days 15 min
I
I
122 CT= 15 min Co=0 min. Uptime=100% 2 shifts
Shipping
4.5 days 67 min
Lead Time =23.6 days Touch Time = 89 min 2 days
4 min
Customer Data On-Time Delivery
Demand = 45/day Takt Time = 18.2 min Competitive LT = 3 days Suppliers
90/60/30 day Forecasts
Production Control
6 WEEK Forecast
MRP
Order Entry
WEEKLY SCHEDULE
Orders/day = 36 Queue = 1.5 Days
Lead Time - 34 Days
Customer
Demand = 45 per day 2 shifts Takt Time = 18.2 Minutes Competitive Lead Time = 3 Days
1X Daily I
Coils 5 days
Stamping
S. Weld # 1
I
342
CT=1sec Co=1 hr. Uptime=85% 1 shift 5 days
Assembly
Test I
81
CT=3 min Co=10 min. Uptime=70% 1 shift 7.6 days
1 sec
I
1.8 days 3 min
90
202
CT= 67 min Co= 23 min
CT= 4 min Co=0
FTY = 67% 2 shifts
Uptime=100% 2 shifts
2.7 days 15 min
I
I
122
CT= 15 min Co=0 min. Uptime=100% 2 shifts
Shipping
4.5 days 67 min
Lead Time =23.6 days Touch Time = 89 min 2 days
4 min
Inventory
Raw = 5 days WIP = 12.1 days FG = 6.5 days Suppliers
90/60/30 day Forecasts
Production Control
6 WEEK Forecast
MRP
Order Entry
WEEKLY SCHEDULE
Orders/day = 36 Queue = 1.5 Days
Lead Time - 34 Days
Customer
Demand = 45 per day 2 shifts Takt Time = 18.2 Minutes Competitive Lead Time = 3 Days
1X Daily I
Coils 5 days
Stamping
S. Weld # 1
I
342
CT=1sec Co=1 hr. Uptime=85% 1 shift 5 days
Assembly
Test I
81
CT=3 min Co=10 min. Uptime=70% 1 shift 7.6 days
1 sec
I
1.8 days 3 min
90
202
CT= 67 min Co= 23 min
CT= 4 min Co=0
FTY = 67% 2 shifts
Uptime=100% 2 shifts
2.7 days 15 min
I
I
122
CT= 15 min Co=0 min. Uptime=100% 2 shifts
Shipping
4.5 days 67 min
Lead Time =23.6 days Touch Time = 89 min 2 days
4 min
Flow of Value Lead Time
Lead Time = 23.6 days Touch Time = 89 min
Suppliers
90/60/30 day Forecasts
Production Control
6 WEEK Forecast
MRP
Order Entry
WEEKLY SCHEDULE
Orders/day = 36 Queue = 1.5 Days
Lead Time - 34 Days
Customer
Demand = 45 per day 2 shifts Takt Time = 18.2 Minutes Competitive Lead Time = 3 Days
1X Daily I
Coils 5 days
Stamping
S. Weld # 1
I
342
CT=1sec Co=1 hr. Uptime=85% 1 shift 5 days
Assembly
Test I
81
CT=3 min Co=10 min. Uptime=70% 1 shift 7.6 days
1 sec
I
1.8 days 3 min
90
202
CT= 67 min Co= 23 min
CT= 4 min Co=0
FTY = 67% 2 shifts
Uptime=100% 2 shifts
2.7 days 15 min
I
I
122
CT= 15 min Co=0 min. Uptime=100% 2 shifts
Shipping
4.5 days 67 min
Lead Time =23.6 days Touch Time = 89 min 2 days
4 min
Constraints OTD, Lead Time
Max Wip = 7.6 days CT (67) > Takt Time (18)
Suppliers
90/60/30 day Forecasts
Production Control
6 WEEK Forecast
MRP
Order Entry
WEEKLY SCHEDULE
Orders/day = 36 Queue = 1.5 Days
Lead Time - 34 Days
Customer
Demand = 45 per day 2 shifts Takt Time = 18.2 Minutes Competitive Lead Time = 3 Days
1X Daily I
Coils 5 days
Stamping
S. Weld # 1
I
342
CT=1sec Co=1 hr. Uptime=85% 1 shift 5 days
Assembly
Test I
81
CT=3 min Co=10 min. Uptime=70% 1 shift 7.6 days
1 sec
I
1.8 days 3 min
90
202
CT= 67 min Co= 23 min
CT= 4 min Co=0
FTY = 67% 2 shifts
Uptime=100% 2 shifts
2.7 days 15 min
I
I
122
CT= 15 min Co=0 min. Uptime=100% 2 shifts
Shipping
4.5 days 67 min
Lead Time =23.6 days Touch Time = 89 min 2 days
4 min
Setup Times OP Margin, Lead Time
CO = 1 hour CO = 23 min CO = Suppliers
90/60/30 day Forecasts
Production Control
6 WEEK Forecast Changeover
MRP
Order Entry
WEEKLY SCHEDULE
Orders/day = 36 Queue = 1.5 Days
Lead Time - 34 Days
Customer
Demand = 45 per day 2 shifts Takt Time = 18.2 Minutes Competitive Lead Time = 3 Days
1X Daily I
Coils 5 days
Stamping
S. Weld # 1
I
342
CT=1sec Co=1 hr. Uptime=85% 1 shift 5 days
Assembly
Test I
81
CT=3 min Co=10 min. Uptime=70% 1 shift 7.6 days
1 sec
I
1.8 days 3 min
90
202
CT= 67 min Co= 23 min
CT= 4 min Co=0
FTY = 67% 2 shifts
Uptime=100% 2 shifts
2.7 days 15 min
I
I
122
CT= 15 min Co=0 min. Uptime=100% 2 shifts
Shipping
4.5 days 67 min
Lead Time =23.6 days Touch Time = 89 min 2 days
4 min
Maintenance OTD, Lead Time
Uptime = 70%
Suppliers
90/60/30 day Forecasts
Production Control
6 WEEK Forecast
MRP
Order Entry
WEEKLY SCHEDULE
Orders/day = 36 Queue = 1.5 Days
Lead Time - 34 Days
Customer
Demand = 45 per day 2 shifts Takt Time = 18.2 Minutes Competitive Lead Time = 3 Days
1X Daily I
Coils 5 days
Stamping
S. Weld # 1
I
342
CT=1sec Co=1 hr. Uptime=85% 1 shift 5 days
Assembly
Test I
81
CT=3 min Co=10 min. Uptime=70% 1 shift 7.6 days
1 sec
I
1.8 days 3 min
90
202
CT= 67 min Co= 23 min
CT= 4 min Co=0
FTY = 67% 2 shifts
Uptime=100% 2 shifts
2.7 days 15 min
I
I
122
CT= 15 min Co=0 min. Uptime=100% 2 shifts
Shipping
4.5 days 67 min
Lead Time =23.6 days Touch Time = 89 min 2 days
4 min
Quality
FTY = 67%
Suppliers
90/60/30 day Forecasts
Production Control
6 WEEK Forecast
MRP
Order Entry
WEEKLY SCHEDULE
Orders/day = 36 Queue = 1.5 Days
Lead Time - 34 Days
Customer
Demand = 45 per day 2 shifts Takt Time = 18.2 Minutes Competitive Lead Time = 3 Days
1X Daily I
Coils 5 days
Stamping
S. Weld # 1
I
342
CT=1sec Co=1 hr. Uptime=85% 1 shift 5 days
Assembly
Test I
81
CT=3 min Co=10 min. Uptime=70% 1 shift 7.6 days
1 sec
I
1.8 days 3 min
90
202
CT= 67 min Co= 23 min
CT= 4 min Co=0
FTY = 67% 2 shifts
Uptime=100% 2 shifts
2.7 days 15 min
I
I
122
CT= 15 min Co=0 min. Uptime=100% 2 shifts
Shipping
4.5 days 67 min
Lead Time =23.6 days Touch Time = 89 min 2 days
4 min
Flow of Value OTD, Lead Time
Who is setting the pace? What is the pitch time?
Suppliers
90/60/30 day Forecasts
Production Control
6 WEEK Forecast
MRP
Order Entry
WEEKLY SCHEDULE
Orders/day = 36 Queue = 1.5 Days
Lead Time - 34 Days
Customer
Demand = 45 per day 2 shifts Takt Time = 18.2 Minutes Competitive Lead Time = 3 Days
1X Daily I
Coils 5 days
Stamping
S. Weld # 1
I
342
CT=1sec Co=1 hr. Uptime=85% 1 shift 5 days
Assembly
Test I
81
CT=3 min Co=10 min. Uptime=70% 1 shift 7.6 days
1 sec
I
1.8 days 3 min
90
202
CT= 67 min Co= 23 min
CT= 4 min Co=0
FTY = 67% 2 shifts
Uptime=100% 2 shifts
2.7 days 15 min
I
I
122
CT= 15 min Co=0 min. Uptime=100% 2 shifts
Shipping
4.5 days 67 min
Lead Time =23.6 days Touch Time = 89 min 2 days
4 min
Value Stream Mapping (VSM)(cont’d) • Understanding the Value Stream in the Office o Office functions support many shop floor value streams purchasing, payroll o The rate of customer demand is often hard to “see” o Inventory can be forms, paperwork, in-baskets, out-baskets, voicemail, email o Cycles of activity often are random - little standard work o Confusion about who the customer is and what is value o However, the OBJECTIVE is to ELIMINATE WASTE!
316
Value Stream Mapping (VSM)(cont’d) • The Office Current State o Define boundaries of your value stream o “There has to be a ‘product’ or ‘service’ to follow - like a purchase order or payroll document - otherwise use a normal flowchart” o What capability do you provide? o Is the demand stable? If not, what is the range ?
o What is the customers expectation of performance?
317
Value Stream Mapping (VSM)(cont’d) • Constructing Office Current State o Waiting should be recorded if there is no apparent ‘end’ takt time and the next process is far away o Use Cycle Time of customer process to understand total lead time Outbox
Waiting
Inbox
I
w
I
1 Day
1/2 Day at meeting
1 Day
318
Value Stream Mapping (VSM)(cont’d) • Constructing Office Current State State Street Assembly Supplier
Make notes where you see obvious Waste on the Map
Poor workplace
Duplication:
Organization
Many Signatures
State Street Assembly Customer
Re-enter Data:
Paper Form Rework:
Legacy System
Incomplete Data
319
Value Stream Mapping (VSM)(cont’d) • Constructing Office Current State State Street Assembly Customer
Michigan Steel Customer Company
EmailO rder
Engineering database
Central database
Phone Clarification
Phone Clarification
Email Quote
Design
Log file Phone Clarification Email / voicemail I
Order Outbox Waiting Receipt W
I
4 Estimates Meeting .5 hours 3 hours
.5 hr
w
2 files 1/2 Day at 1 Day meeting 1 sales Rep
3 hr
1 Day .5 Day
10 min
Inbox I 2 files 1 Day
Waiting Eng. Review w
1 Eng.
1 Day
Inbox I
1/2 Day 7 files Purchasing 1 Day quote
BOM Outbox Waiting Validation I w
1 Sales Rep
.5 Day 1 Day
4 hrs
3 files 1 Day
Email Clarification Inbox
Manf. Eng.
I
I
1/2 Day 10 files Customer 1 Day 1 Eng.
1 Day .5 Day 1 Day
3 hrs
Outbox Waiting w
4 files Clarify 1 Day 1 Day
Inbox
Quote Prep
I 2 files 1 Day
1 sales Rep
1 Day 1 Day 1 Day
60 min
Total 10 Days
20 min
Total CT 8 hrs 20 min
Value Stream Mapping (VSM)(cont’d) • Draw the Future State Map
(STEP 6) o Designing a Lean Flow You always need a future state Use pencil, update regularly, 70% correct is fine Basis for work plan - blueprint Begin by drawing a current state 1st iteration assumes using existing equipment, only minor purchases Use the list of future state questions
Product Family
Current State Drawing Future State Drawing
Plan & Implementation 321
Value Stream Mapping (VSM)(cont’d) • Future State Map - Question 1 (STEP 6) o What is the takt time for the chosen product family? 450 minutes per shift / 9 units per shift= 50 minutes However this includes no time for equipment downtime, changeovers, or scrap and rework. Until these are under control you can decide to produce faster than Takt Its purpose is to synchronize the pace of production with the pace of sales A diagnostic tool to test for overproduction
322
Value Stream Mapping (VSM)(cont’d) • Future State Map - Question 2 (STEP 6) o Should you build to a finished goods Supermarket or directly to shipping? Building directly to shipping is ideal. If the competitive lead time is less than your process lead time, you will need a finished goods supermarket. If customer demand rises and falls unpredictably it might be better to use a finished goods Supermarket.
The cost of holding some finished goods may well be less than the cost of extra capacity
323
Value Stream Mapping (VSM)(cont’d) • Future State Map - Question 3 (STEP 6) o Where can you introduce continuous flow? Produce one piece at a time Reduce batch sizes and implement material replenishment.
324
Value Stream Mapping (VSM)(cont’d) • Future State Map - Question 4 (STEP 6) o Where will you need to use supermarket pull systems? Batching might be necessary
Where changeover is necessary due to very fast or slow cycle times and multiple product families. Long supply chain…One piece at a time is not realistic Some processes have too much lead time or too unreliable to couple directly to other processes in a continuous flow.
In these cases install a Supermarket based pull system Supermarkets are used when continuous flow is interrupted
Remember, flow is better. There is a cost associated with a supermarket 325
Value Stream Mapping (VSM)(cont’d) • Future State Map - Question 5 (STEP 6) o At what single point will you schedule production? This is called the pacemaker process. How you control the production here sets the pace for all of the upstream processes. Any process after the pacemaker process must be continuousflow ( no Supermarkets or pulls downstream of the pacemaker process). Therefore, the pacemaker process is frequently the most downstream continuous-flow process in the value stream.
326
Value Stream Mapping (VSM)(cont’d) • Future State Map - Question 6 (STEP 6) o How will you level the production mix at the pacemaker process? Distribute the production of different products evenly over time at the pacemaker process. Grouping products makes it difficult to serve customers who need something different than the batch being produced at that time. On-time deliveries suffer. A part that is due tomorrow might not make it because it has to wait for the long batches to complete. The icon for leveling is OXOX
327
Value Stream Mapping (VSM)(cont’d) • Future State Map - Question 7 (STEP 6) o What increment of work will you consistently release and take away at the pacemaker process? Start by releasing small consistent amounts at the pacemaker process, while simultaneously taking away equal amounts of finished goods or “paced withdrawal” This consistent increment of work is called the PITCH
Can be based on packout container quantity Establishes interval for monitoring status of production
The key is to create a predictable flow which enables you to act quickly to problems.
328
Value Stream Mapping (VSM)(cont’d) • Future State Map - Question 7 - Heijunka Box o A tool used to level production o A load leveling box with a column for Kanban slots for each PITCH interval and a row of Kanban slots for each product type. o The box indicates both the quantity produced and the time allocated to make it (based on TAKT time) One row per product type Kanbans responded to from left to right at pitch increments
8 Type A
8.10
8.20
Kanban card A
Type B Type C
8.30
8.40
8.50
Kanban card A Kanban card B
9.00
9.10
Kanban card A Kanban card B
Kanban card C
Kanban card B
Kanban card C
One column p/pitch pitch=10 min.
329
Value Stream Mapping (VSM)(cont’d) • Future State Map - Question 7 - Example 8 Type A
8.10
8.20
Kanban card A
Type
Type
8.50
9.00
C
Kanban card B Kanban card C
1
Drop Kanban
9.10
Kanban card A Kanban card B
Kanban card C
at process
8.40
Kanban card A Kanban card B
B
8.30
2
Customer requirement
Pick up next kanban
Pacemaker process
3
Pick up one finished quantity
Move finished parts to supermarket
Shipping
4
Value Stream Mapping (VSM)(cont’d) • Future State Map - Question 8 (STEP 6) o What process improvements will be necessary for the value stream to flow as your Future State Map specifies? If you don’t answer this, you’ve just been wasting time. Improvements to:
Equipment Procedures Changeover time Yield Cycle time
331
Value Stream Mapping (VSM)(cont’d) • Future State Map – 1st View (STEP 6) o First View of the Future-State Map showing: Takt Time, Weld/ Assembly Cell and the Finished-Goods Supermarket
332
Value Stream Mapping (VSM)(cont’d) o Notice that on this Future-State Map the four welding and assembly process boxes have been combined into one process box to indicate the continuous flow.
State St. Assembly
o A small sketch of a cell inside the process box also indicates the cellular manufacturing concept.
18,400 pcs/mo -12,000 “L” -6,400 “R” Tray=20 pcs. 2 Shifts
Stamping
Weld& Assy 1X Daily
L Takt=60 sec. C/T=56 sec.
R
Shipping Staging
C/O= 0 Uptime=100%l 2 shifts
333
Value Stream Mapping (VSM)(cont’d) • Future State Map – 2nd View (STEP 6) o Second View of the Future-State Map showing: Stamping and the Raw Material Supermarkets
334
Value Stream Mapping (VSM)(cont’d) • Future State Map – 2nd View (STEP 6) o The stamping process needs to produce batches larger than 60 pieces. o A trigger point is set up in the stamping supermarket which includes changeover, replenishment delay and other stamping problems. In this case stamping will keep 1.5 days of parts in its supermarket o A signal Kanban is sent to the stamping process whenever the number of bins remaining drops to a trigger ( minimum ) level
Signal or Batch kanban 335
Value Stream Mapping (VSM)(cont’d) • Future State Map – 2nd View (STEP 6) o What about Raw Material? To build a plant level value stream, the Future State must also show a third supermarket at the receiving dock which holds coils of steel The company can attach an internal withdrawal Kanban to each coil and send these Kanbans to their own production control department whenever another coil is used.
Production control can order coils based on their actual usage instead of a best guess determined by MRP The cards are then returned to the receiving dock as a signal for shipments that are due. Milk runs for daily deliveries should be considered at this point
336
Value Stream Mapping (VSM)(cont’d) • Future State Map – 2nd View (STEP 6) 6-WEEK Forecast State St. Assembly
State St. Assembly
PRODUCTION CONTROL
Daily Order
18,400 pcs/mo coil
coil
-12,000 “L” -6,400 “R” Tray=20 pcs.
1X Daily
2 Shifts batch 20
bin
Coils
Weld& Assy
Stamping
1X Daily
L (at the press) 1.5 days
Takt=60 sec. C/T=56 sec. C/O= 0 Uptime=100%l 2 shifts
R
Shipping Staging
Value Stream Mapping (VSM)(cont’d) • Future State Map – 3rd View (STEP 6) o Third View of the Future-State Map showing: Load Leveling, Changeovers, and Timeline
338
Value Stream Mapping (VSM)(cont’d) • The material handler pulls the Kanbans out of the leveling box one-by-one at the PITCH increment and moves trays of brackets from the finished goods supermarket to the staging area one-byone according to the withdrawal Kanban.
Production Control
Daily Orders
Load Leveling Box
bin bin bin
OXOX WELD&ASSY bin
L
Shipping
Staging
R
339
Value Stream Mapping (VSM)(cont’d) • Future State Map – Complete View (STEP 6) 6-WEEK Forecast State St. Assembly
90/60/30 day Forecasts
PRODUCTION CONTROL
State St. Assembly
Daily Order
Daily Order
18,400 pcs/mo coil
-12,000 “L”
coil
Daily order
-6,400 “R” Tray=20 pcs.
20
1X Daily
20 batch
OXOX
20
bin
2 Shifts
20 Coils
Weld& Assy
Stamping change over
L
EPE= 1 shift. EPE