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BAE Lean 1 © The Delos Partnership 2004
Lean and AgileLean and Agile
Applying the ideas to the Supply side
BAE Lean 2 © The Delos Partnership 2004
The Delos ModelThe Delos Model
VisionVision
StrategyStrategy
PrioritisationPrioritisation
InnovationInnovationDemandDemand
SupportSupport
SupplySupply
BAE Lean 3 © The Delos Partnership 2004
Value stream mappingValue stream mapping
• Map out the flows of order information and physical goods for a product family as they happen now
• Picture and plan future states that leave out wasted steps and introduce smooth ‘stream-like’ flow
• Plan how to increase the value offered to customers e.g. increased responsiveness, easier to use packaging
BAE Lean 4 © The Delos Partnership 2004
Draw the current stateDraw the current state
• The “current state” shows what is really happening right now
• It identifies wasteful steps and provides opportunity to visualise and plan a “future state”
METALSUPPLIER
PRODUCTION PLANNING
Baan
WeeklyProduction
Plan DailyDespatchSchedule
500 ft coils
18 days
2 permonth
WELDINGPRESSINGSTAMPING
WeeklyFax
6 weekForecast 60 + 30 day
Forecasts
EPE = 2 weeks
C/O 1-2hrs
OEE = 61%
C/T 1 second
EPE 1 weekC/O 0.3-2hrs
OEE = 57%
C/T 3 seconds
EPE 1 weekC/O 0.3-1hrs
OEE = 76%
C/T 10 seconds
EPE 1 weekC/O N/A
Capacity 70%
C/T 440 seconds
ASSEMBLY TEST
EPE 1 weekC/O 10 mins
Capacity 35%
C/T 34 seconds
DESPATCH
CUSTOMER
1 second
4 days 2 hours 30 days
Current State Map
Production Lead Time = 60 days
Value Added Time = 8 min 8 sec
Daily Order
1 xDaily
3 seconds 10 seconds 440 seconds
4 days4 days
34 seconds
5 variants 5 variants 5 variants 156 variants 156 variants
METALSUPPLIER
PRODUCTION PLANNING
DailyDespatchSchedule
500 ft coils
VendorManagedInventory
STAMP + PRESS
60 + 30 dayForecasts
EPE shiftC/O 10 mins
OEE = 77%
C/T 6 seconds
EPE shiftC/O N/A
Capacity 70%
C/T 300 seconds
WELD + ASSY 1
EPE As requiredC/O N/A
Capacity 55%
C/T 164 seconds
CUSTOMER
6 hours
Future State Map
Production Lead Time = 1.3 daysValue Added Time = 7 min 50 s
Daily Order
1 xDaily
6 seconds 300 seconds
1 day
164 seconds
5 variants 156 variants5 variants
ASSY 2 + TEST + DESPATCH
BAE Lean 7 © The Delos Partnership 2004
Extended mappingExtended mapping
Joint mapping - with suppliers and customers - will help to identify the potential and opportunities for new ways of working– e.g. collaborative planning and supply
chain re-designs.
BAE Lean 8 © The Delos Partnership 2004
Extended map – Potato snacksExtended map – Potato snacks
POTATOGROW
WHSE
ProductionControl
SNACK COMPANY
ProductionControl
PROCESS COMPANY
RDC
RETAILER
WHSEWHSEPOTATOPROCESS
SNACKPRODN.
ProductionControl
GROWING COMPANYSEED
SUPPLIER
BAE Lean 9 © The Delos Partnership 2004
Potential…Potential…
• Manufacturing Value Adding Time = 1%• Total Supply Chain Value Adding Time = 0.01%
Supplier Factory Distributor Customer
• Not just more efficient, but more effective… How can waste be removed? How can value be increased?
BAE Lean 10 © The Delos Partnership 2004
Value Stream MappingValue Stream Mapping
How to do it in your plant
BAE Lean 11 © The Delos Partnership 2004
Steps for a current state Steps for a current state mapmap1. Identify the family2. Pick which component to follow3. Complete a quick walk through to identify
the main processes 4. Fill in process information5. Document customer information6. Document supplier information7. Establish information flow (how does each
process know what to make next?)
BAE Lean 12 © The Delos Partnership 2004
1.1. Identify the familyIdentify the family
What product family? Products that:
• Share the same designs, tools and fabrication/formulation processes
• Follow roughly the same fabrication/manufacturing/formulation steps
BAE Lean 13 © The Delos Partnership 2004
HomogenisingOil
Maizeflour
Salt Flavouring Pack Multibag
FriedSnack
FryingOil
• Look at the BOM and choose a key, long lead time component:
2. Pick which component to 2. Pick which component to followfollow
BAE Lean 14 © The Delos Partnership 2004
3. Identify the main processes and 3. Identify the main processes and how ‘deep’ and ‘long’ to lookhow ‘deep’ and ‘long’ to look
PACKINGFRY/FLAVOURBULK/MIXING
PRIMARY CASING
HMB CASING
PALLETISING DESPATCH
Decide how much detail and how broad a scope is appropriate for the time and resources available:
BAE Lean 15 © The Delos Partnership 2004
4. Fill in process information 4. Fill in process information
Typical information:
• Cycle time / Operation time• Number of operators• Working time (minus breaks)• Process reliability (uptime)• Scrap/Rework/Defect rate• Changeover time and responsiveness (Every
Part Every…)• Number of product variations at each stage• Production batch sizes• Pack sizes
BAE Lean 16 © The Delos Partnership 2004
5. Document customer 5. Document customer informationinformation1. How many product variants are there?2. What are the demand patterns?3. What lead time do they require and would they like?4. How and how often do they want deliveries? (include
batch/pallet sizes, barcoding etc.)5. What collaborative planning is there?6. Are there problems, e.g. obsolescent stock or stock
outs?7. What other value is given, in addition to the product
(e.g. advice, package sizes, responsiveness)?8. What is their opinion of your product/service?
BAE Lean 17 © The Delos Partnership 2004
6. Document Supplier 6. Document Supplier informationinformation1. Lead times2. Delivery frequency / flexibility / responsiveness3. Batch sizes4. Capacity5. Scrap levels / quality problems6. Delivery problems / reliability7. Information requirements8. What other value is given, in addition to the product
(e.g. advice, package sizes, responsiveness)?
BAE Lean 18 © The Delos Partnership 2004
7. Establish the information 7. Establish the information flowflow
• How does each process know what to make next (does it use Works Orders or Kanbans or look and see what’s needed to make)?
BAE Lean 19 © The Delos Partnership 2004
Steps for a future state Steps for a future state mapmap1. Reassess the Value Position2. Reassess the Make / Buy position3. How best to make and stock?4. How best to schedule?5. Improve process capability6. Organisational issues
BAE Lean 20 © The Delos Partnership 2004
1. Reassess the Value 1. Reassess the Value PositionPosition
Customer Intimacy
•Responsive and reliable deliveries•Configurable product / service solutions•Customer partnerships•Service support
Product Leadership
•Product / service reliability•Premium product functionality
Operational Excellence
•Cost effective products•Source product from lowest cost area
BAE Lean 21 © The Delos Partnership 2004
Downstream vertical integration
Raw materials supplier
Component maker
Assembly operation
Final Assembly
Customer
Raw materials supplier
Component maker
Assembly operation
FinalAssemblyr
Customer
Upstream vertical integration
Stages owned by the organisation
2. Reassess the Make / Buy2. Reassess the Make / Buy position position
BAE Lean 22 © The Delos Partnership 2004
3. How to make and stock?3. How to make and stock?• What is the production lead time compared to the
customer required (or desired) lead time?• Which planning model (MTS,ATO, MTO etc) is most
appropriate?• Where can improved collaboration over planning and
schedules help reduce uncertainty and improve responsiveness?
• Should new planning systems (e.g. Vendor Managed Inventory or direct line feed) be used?
• How can value be increased along the chain at minimum cost? (e.g. pack sizes, technical advice)
BAE Lean 23 © The Delos Partnership 2004
- Hewlett Packard - deskjet printers: power supply module, power cords & manual
mfg D.C.
Factory localisation
D.C.mfg
Distribution Centre localisation
Postponed assemblyPostponed assembly
BAE Lean 24 © The Delos Partnership 2004
4. How to schedule?4. How to schedule?EPE…• Should the process be batch build or build to
customer Takt (or vary by process)?• Takt time? (How do you understand customer
demand?)• Where can you flow? • Where should you use supermarket-based pull? • At what single point in the production chain do you
trigger production?• How much work do you release and take away?• How do you level the production mix?
BAE Lean 25 © The Delos Partnership 2004
TaktTakt
Definition:“The stroke in keeping time”
(Chambers’s Dictionary)
The frequency at which parts should be produced in order to meet the customer’s requirements; the ‘heartbeat’ of the process.
Takt Time = Available Working TimeNumber of pieces required
BAE Lean 26 © The Delos Partnership 2004
Scheduling systemsScheduling systems• Make to Forecast (push)• Make to Demand (pull)• Kanban trigger signals• CONWIP trigger signals• MRP/Works Orders• Supermarkets (and FIFO lanes) control
production between points of flow without a written schedule
• Pacemaker process
BAE Lean 27 © The Delos Partnership 2004
5. Improve process 5. Improve process capabilitycapabilityWhich problems (e.g. bottlenecks, inventory,
long changeovers) to focus on improving ?
Each step in the process should be:– Valuable – of value to the customer – Capable – right every time – Reliable – always able to run– Flexible – able to change mix and volume in line
with demand– Adequate – with capacity to avoid bottlenecks
BAE Lean 28 © The Delos Partnership 2004
ValuableValuable
– of value to the customer
1. Waste elimination2. Leadtime reduction (Flow)
© The Delos Partnership 200405/03/23
The Seven Forms of WasteThe Seven Forms of Waste
1. Over production2. Motion3. Transportation4. Waiting5. Over Processing6. Storage/Inventory7. Defects
BAE Lean 30 © The Delos Partnership 2004
CALL IT CALL IT TWENTY?TWENTY?
……22 TO BE 22 TO BE ON THE SAFE ON THE SAFE
SIDE!SIDE!
TEN TEN PLEASE!PLEASE!
Over - ProductionOver - Production
BAE Lean 31 © The Delos Partnership 2004
MotionMotion
BAE Lean 32 © The Delos Partnership 2004
TransportationTransportation
BAE Lean 33 © The Delos Partnership 2004
WaitingWaiting
BAE Lean 34 © The Delos Partnership 2004
Over-ProcessingOver-Processing
How do you spell that?
BAE Lean 35 © The Delos Partnership 2004
££££
££££££
££££
££££
££££££
Storage / InventoryStorage / Inventory
BAE Lean 36 © The Delos Partnership 2004
Defects / Rejects / Re-workDefects / Rejects / Re-work
BAE Lean 37 © The Delos Partnership 2004
Throughput Efficiency (TE) = Work content x 100%Time in system
5 Weeks
15 hours total work
Minimise lead timesMinimise lead times
BAE Lean 38 © The Delos Partnership 2004
CapableCapable
– Right every time
Process quality: - Specialist Quality Control (e.g. 6 )- Workplace Management (Genba Kanri)
BAE Lean 39 © The Delos Partnership 2004
What is 6 sigma?What is 6 sigma? Simple:
- Eliminate defects- Eliminate the opportunity for defects
Complex- Vision - Measurement of performance - Philosophy - Tool for:
> Customer focus> Breakthrough improvement> Continuous improvement > People involvement
BAE Lean 40 © The Delos Partnership 2004
PPM % Non Defective
2 308,537 69.1%3 66,807 93.32%4 6,210 99.379%5 233 99.9767%6 3.4 99.99966%
EffectivenessEffectiveness
BAE Lean 41 © The Delos Partnership 2004
Workplace ManagementWorkplace Management
Real OperationalTeamwork
StandardOperating
Procedures
SOS / EOSTeam
Meetings
TeamPerformance
Targets
The Role of the Supervisor
BAE Lean 42 © The Delos Partnership 2004
ReliableReliable
Always able to run
Machine reliability: • 5S• TPM
BAE Lean 43 © The Delos Partnership 2004
The 5S’sThe 5S’s
1. Sort out2. Simplify3. Sweep4. Standardise5. Self discipline
© The Delos Partnership 200405/03/23
Sort outSort out
Get rid of all unnecessary items
© The Delos Partnership 200405/03/23
SimplifySimplify
A place for everything… and everything in its place.
© The Delos Partnership 200405/03/23
Wear on
seals
Pipes & cables: interference & wear,
loose
Worn, loose or missing fasteners & attachments
Sweep: identify problemsSweep: identify problems
BAE Lean 47 © The Delos Partnership 2004
Introduce standards, routines and trainingIntroduce standards, routines and training
StandardiseStandardise
• Set standards for what is acceptable• Communicate the purpose and
standards• Be disciplined to maintain the standards• Set a plan; who will do what, when,
where and how
BAE Lean 48 © The Delos Partnership 2004
Maintain the disciplines through continued application
Self DisciplineSelf Discipline
© The Delos Partnership 200405/03/23
Total Productive MaintenanceTotal Productive Maintenance
TOTAL - Business wide
PRODUCTIVE - Improve equipment performance
MAINTENANCE - Machine systems support
BAE Lean 50 © The Delos Partnership 2004
Pillars of TPMPillars of TPM
OEE IMPROVEMENT
AUTONOMOUSMAINTENANCE
PLANNEDMAINTENANCE
SKILLSDEVELOPMENT
MAINTENANCEPREVENTION
STANDARDISATION
5S (WORKPLACE ORGANISATION)
RELIABILITYRELIABILITYAND AVAILABILITYAND AVAILABILITY
© The Delos Partnership 200405/03/23
Autonomous MaintenanceAutonomous Maintenance
‘Maintenance is like looking after children. On a day to day basis you don’t require a doctor. In a factory your machines don’t require a technician. Production operators should think of their machines in the same way as a mother thinks of her children.’Senior Japanese Maintenance Adviser, Nissan (U.K.) 1986.
BAE Lean 52 © The Delos Partnership 2004
FlexibleFlexible
– to change mix and volume on demand
Machine flexibility (SMED)Manpower flexibility
BAE Lean 53 © The Delos Partnership 2004
PurposePurpose
1.To increase equipment availability and efficiency through less machine downtime
2.To increase process flexibility and responsiveness through smaller batch sizes and reduced lead times
3.To increase capital productivity through reduced stock levels
BAE Lean 54 © The Delos Partnership 2004
V. Jones
P. Daniels
R. Hope
B. Crosby
Op. 1 Op. 2 Op. 3 Op. 4
Manpower flexibility - ILUDOManpower flexibility - ILUDO
BAE Lean 55 © The Delos Partnership 2004
AdequateAdequate
– with capacity to avoid bottlenecks
Machine Capacity (OEE)
© The Delos Partnership 200405/03/23
OEEOEE
DEMAND TIME
DEFECTS
‘MISSING MINUTES’& SLOW RUNNING
EQUIPMENT STOPPAGES & BREAKDOWNS
UTILISATION
AVAILABILITY
QUALITY
24/7
BAE Lean 57 © The Delos Partnership 2004
0
20
40
60
80
100
120
140
160
Cutting Grinding Drilling Printing Furnace
Hour
s in
wee
k
Planned Non-run Breakdown lossesChangeover lossesQuality lossesGood Running
Capacity mappingCapacity mapping
BAE Lean 58 © The Delos Partnership 2004
Extended capacity Extended capacity mappingmapping
Capacity per weekin equivalent units
raw materialsupplier
first tier supplierTime
finalass
paint
subass
press blank
pickle
cold roll
hot roll
servicecentre
secondtier supplier
BAE Lean 59 © The Delos Partnership 2004
“Final AssemblyFinal Assembly”
Current Map of “Goods” flowsCurrent Map of “Goods” flows
T45 JSF Airbus Typhoon
CentralCentralLogisticsLogisticsFacilityFacility
BAESalmesbury site
Intermediate Manufacture andassembly
CFC Treat
Fabs M/C
Spares
External Suppliers/BAEsites
Subcontract and purchased parts
Components
Sub-contract operations
Sub-assemblies
BAE Lean 60 © The Delos Partnership 2004
“Final AssemblyFinal Assembly”
Key Project IssuesKey Project Issues
T45 JSF Airbus Typhoon
CentralCentralLogisticsLogisticsFacilityFacility
BAESalmesbury site
Intermediate Manufacture andassembly
CFC Treat
Fabs M/C
Spares
External Suppliers/BAEsites
Subcontract and purchased parts
Components
Sub-contract operations
Sub-assemblies
Can these flows be eliminated or simplified?Can these flows be eliminated or simplified?