ATN - Lean

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Lean EnterpriseLean Enterprise

ImplementationImplementationThe University of Alabama in Huntsville

www.atnlean.comwww.atnlean.com

ean oncep sean oncep s

TrainingTraining

Universityof Alabama in Huntsville

The University of Alabama in Huntsville

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Alabama Technology Network

Lean Enterprise

Quality Systems

Health, Safety, and

33

nv ronmenta erv ces

Human Resources and

Organizational Development

Workforce Development

Strategic Management

Technical Services


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UAH-ATN Lean

KAIZEN EVENTS

44

& TRAINING



History of ManufacturingCustomer

Requirements

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1700s 1800s 1900s 2000

One at a Time

High Quality

High Customization

Employee Involvement

Customer Driven

Flexible

Higher Quality

Division of Labor

Product Availability

Quality Problems

Craftsman

Mass Production

Lean Manufacturing



Typical Facility

5,000 Operations

66

175 EmployeesSales $ 50 Million

Expenses $ 52 Million


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1980s and 1990s Strategy

5,000 Operations

77

150 EmployeesSales $ 45 Million




Lean Philosophy

4,000 Operations

88

175 Employees

Sales $ 50 Million




The Market Place is a Jungle

Every morning in Africa, a Gazelle wakes up.It knows it must run faster than the fastest lion

or it will be killed. Every morning a lion

99

wakes up. It knows it must outrun the slowestgazelle or it will starve to death.

It doesnt matter whether you are a lion or agazelle - when the sun comes up, you hadbetter be running.


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Q - Quality-

Customer Satisfaction

1010

C - Cost

Cost + Profit = Selling Price Selling Price Cost = Profit



If you always do,

what youve always done,

youll always get,

How Do We Improve?

1111

.Goal

100

90

80

70

60

50

40

30

20

10

0

Goal

100

90

80

70

60

50

40

30

20

10

0

Goal

100

90

80

70

60

50

40

30

20

10

0

Goal

100

90

80

70

60

50

40

30

20

10

0

Last Week Last Month Last Year 5 Years Ago



Why should I use a nail gun?Ive use this hammer

for 10 years, and it works just fine.

Mirror, mirror on

the wall.

Why Is Change So Difficult?

1212 Universityof Alabama in Huntsville

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Value Added

Waste of WorkersWaiting, Rework

Inspection

Total Lead Time

Value Added- Any activity that increases the market form orfunction of the product or service (things the customer is willing to

pay for).Non-Value Added Activities must be eliminated, simplified,reduced or integrated.

13Typically 95% of Total Lead Time is Non-Value Added!

Value

Added

Time

a st e o a c n es

Machine Breakdowns

Machine Setup

Waste of Material

Transport

Storage

Waste of Information

Order Processing



Defining Lean

A systematic approach

to identifying and eliminating waste

(non-value-added activities)

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roug con nuous mprovemen

by flowing the product

at the pull of the customer

in pursuit of perfection

-- The MEP Lean Network Universityof Alabama in Huntsville


Time Management

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Compressing customer lead time by

eliminating waste Universityof Alabama in Huntsville

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Learning to See

VALUE ADDING ACTIVITY

Absolute minimum activities whichmust be done to produce customer

requirements:

Every process has wastesthe key lies in seeing itEvery process has wastesthe key lies in seeing it

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Things that customers pay for

NON-VALUE ADDING ACTIVITY

Any resources like labor, space, materials

spent in the manufacturing process that

customer has no requirements for:

These activities should be eliminated,

simplified, reduced or integrated



Eight Deadly Wastes

DDefectsefects

OOverproductionverproduction

WWaitingaiting

Every process has wastes

the key lies in seeing it before it

is too late!

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ot s ng mp oyee s s ot s ng mp oyee s s

TTransportationransportation

IInventorynventory

MMotionotion

EExcess Processingxcess Processing Universityof Alabama in Huntsville


Waste of Defects

Something that doesnt meetspecs

Impact: Inspection and Rework

Material and Labor Wasted

Capacity Lost at Bottleneck

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auses:

Lack of communication/information

Doing a process in a rush

Poorly designed products orforms

Deficient planned maintenance

Inadequate education/training

Confusing procedures (or lackof)


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Waste of Overproduction Pr od uc in gMore/Earlier/Faster Than Is

Required By The Next Process

Got a Hunch, Order a Bunch

E-mail blasts

Impact: Inventory carrying cost Obsolescence/damage

Inventory management system

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Inflates assets on the balance sheet

Causes

Poor process control/Just-in case

Poor supplier quality

Traditional accounting beliefs

Unbalanced workloads (busy work)

Long changeover times

Unlevel schedule/workload

Poor communication

Batching paperwork Universityof Alabama in Huntsville


Waste of Waiting

Waiting For ???

Impact: Nothing happens

Everyone in the chain is idle

Lost time

2020

Unplanned maintenance

Redundant or unnecessaryapprovals

Long setup time

Doing external tasks internally

Upstream quality problems

Unlevel scheduling Poor communication

Items sitting in inboxes Universityof Alabama in Huntsville


Waste of Non-Value Added Processing

Effort which adds no value to the

product from the customers

viewpoint

Impact:

Employees work harder than

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required

Ineffective use of time

Causes:

Product change without process

change

Just-in-case logic

True customer requirements

undefined

Long changeovers Universityof Alabama in Huntsville

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Waste of Transportation

Transporting Parts and

Paperwork Around the Plant Long moves

Double and triple handling of materials Conflicting work instructions

Moving to central copiers and printers

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Adds cost without adding any value

Damage can occur during movement

Causes: Poor layout

Batch processing

Functional departments

Poor understanding of the process flow

(including paperwork)

Poor planning Universityof Alabama in Huntsville


Waste of Inventory Any Supply in Excess of Customer

Requirements Necessary to Produce

Goods Just in Time

Acceptance of Overproduction

Computer and hard copies of unneeded

files

Impact: Cluttersworks ace

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Causes waste of motion/searching

Obsolete

Causes defect

Reduces urgency to resolve problems

Causes: Just in case

Unbalanced work

Reward system

Unreliable shipments by suppliers Universityof Alabama in Huntsville


Waste of Motion/Searching

Any movement of people or

machine that does not add value to

the service

Going to warehouse for supplies

Searching for tools and spare parts

Impact:

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Lose time

Everything in value chain stops

Work teams idled

Injur y

Causes:

No ergonomic principles applied

Poor workplace organization

Inconsistent work methods

Poor layout


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Waste of Employees KSAs

Only utilizing people from the neck

down

I manage, you operate

Shut up, keep your head down, and do asyou are told

Impact:

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Continue to have the same problems every day

No sense of teamwork

Management forces decisions on employees

without input

Causes: Old school managers

Job titles

Poor hiring practices

Low or no investment in training

Lack of investment in employee development Universityof Alabama in Huntsville


Environmental Wastes

WWater Pollution and Disposalater Pollution and Disposal

AAir Emissionsir Emissions

SSolid Waste and Scrapolid Waste and Scrap

26

--

EEnergynergy



Waste

Waste is really asymptom rather than aroot cause

of the problem

Waste points to problems within the system (At

bothprocess & value-stream levels)

We need to find and addressroot causes of waste in

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the system


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Traditional Problem Solving

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Who Did It? Universityof Alabama in Huntsville


Drill to the Root Cause of the Problem

Problem: Undersized parts off stamping press

1. Why were short parts coming off Press #2? Length ofblank var in out o the Coil Feeder

The 5 Whys

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2. Why.? Feeder rollers slipping

3. Why.? Coil has too much oil on it

4. Why.? Coil has been rusting

5. Why.? Oil dries on coils sitting outside

6. Why.? Lack of storage in coil bay due to rejected

material waiting on disposition sitting in bay.



Causes of Waste

Layout

Set-Up

Poor Maintenance

Lack of Training

v

Poor Work Methods

Lack of Workplace

Organization

Inconsistent

Performance

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Communication

Measures

IneffectiveScheduling


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INVENTORY LEVELHIDDEN PROBLEMS

Where Problems Hide

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LATE

DELIVERIES

COMPLEXITY

ISSUESCYCLE

TIME

QUALITY

PROBLEMS

LONGLEAD TIMES

CAPABLE

PROCESS

CHANGE

OVER TIME

MACHINE

BREAKDOWNS

LOT

SIZES

VARIATIONNON LEVEL

SCHEDULESPOOR

COMMUNICATION

NON FLEXIBLE

LAYOUTS

PREMIUM

FREIGHT

University of Alabama in Huntsville - Manufacturing Extension Program


Low Level of WIP

CAPABLE

PROCESS

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LATE

DELIVERIES

COMPLEXITY

ISSUES

CYCLE

TIME

QUALITY

PROBLEMS

LONGLEAD TIMES

CHANGE

OVER TIME

MACHINE

BREAKDOWNS

LOT

SIZES

VARIATION NON LEVEL

SCHEDULESPOOR

COMMUNICATION

NON FLEXIBLE

LAYOUTS

PREMIUM

FREIGHT


UAH Lean Enterprise

Continuous

Improvement

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Workplace

OrganizationVisual

Management

Standardized

Work

Plant Layout

Quick

Changeover

POUS

Kaizen

Quality @ Source Teams

TPM

Mapping

Stream

Value

Batch Reduction

Cellular/TAKT

Kanban


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Workplace Organization (5s)

Sort - what is not needed, sort

through, then sort out; When in

doubt, throw it out!

Set-In-Order - what must be kept;

make it visible and self-explanatory

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Shine - everything that remains.

Clean equipment, tools and

workplace

Standardize - the clean routine to

other areas. Make it more automatic

Sustain - requires discipline, stick to

the rules and make them a habit



Benefits of 5s

A workplace that is clean, organized, orderly,

safe, efficient, and pleasant results in:

Fewer accidents

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mprove e c ency

Reduced searching times

Reduced contamination

Visual workplace control

A foundation for all other lean improvements



Visual Management

Visual methods include:

Signs

Visual references

Check sheets

Illustrations

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Communication boards

Visual work instruction

Labeling

Photographs

Production boards

Lights/Sirens


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Raw Stock

Q C RecShip

Q C

Plant Layout

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Shear

MachineStamp

AssemblyBrake Mill

Lathe

Weld FinishGrind Parts Stock

Drill



Traditional Layout Problems

Complex schedule and material handling

Excessive inventory

Poor communication

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Long lead times

Large lots

Specialized workers



T - Together

E - Everyone

A - Achieves

Teamwork

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-


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Lean Workforce Practices

Teams with rotation of highly specified jobs.

Cross trained and multi-skilled employees

Continuous improvement philosophy

Participatory decision making

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Employee involvement teams

Team-based problem solving

Suggestion systems

Kaizen Blitz, etc.



30%Trial runs andadjustments

Preparation; after-processadjustment; checking; moving

parts materials and tools

Quick Changeover

Definition: Changing over a process to produce a different product

or service in the most efficient manner.

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5%

15%

Removing and

mounting parts

and tools

Machine measurements,

settings and calibration Universityof Alabama in Huntsville


How Can We Improve Changeovers?

Identify waste in theprocess and eliminate it

Use good planning

Stage materials before

shuttin e ui ment

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down

Identify and trainpeople the best way

Be consistent Measure and manage

the process


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10 minutes

10 minutes

Batch & Queue Processing

Lead Time: 30+ minutes for total order

10 minutes

ProcessA

ProcessB

ProcessC

Batch Size Reduction

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+ mnu es or rs pece


5 minutes5 minutes


5 minutes

ProcessA

ProcessC

ProcessB

11+ minutes for first piece Universityof Alabama in Huntsville


Standardized Work

Operations organized in the safest, best known sequenceusing the most effective combination of resources:

1. Break job down into essential elements

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2. Examine each element in detail3. Determine best and safest method for

each based on fundamentals and data4. Establish and teach the standard

5. Sustain by attention and repetition6. Improve the standard when better method

is found



Date 04/14/05

Revision 0

Startup and Normal Operation

Note: If any problems are encountered, pushing the e-stop will shut everything down on

the unloader

Note: If any problems are encountered (mechanical, electrical or otherwise), call them

in to supervisor and to tower. Tower will log maintenance ite ms so that theymake the daily maintenance list; Be specific enough that maintenance knows

what the problem is

North

Inshore

Example: Barge Unloader Procedures

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Note: Inform tug boats of any delays encountered

Note: Check radio and communication board at start of shift

1 Pull e-stop

2 Perform visual inspection

3 Perform checklist duties

4 Check trolleylimits

Note: If new to equipment, 295 in and 295 out are good starting trolleylimit settings;

With experience, operators can set slightly higher limits

Note: To check and adjust limits, stop bucket if running, travel trolley to side of barge to

get measure, take reading from panel, set new limit if needed

South

Outshore


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Source Inspection: Operators must be certain that products they pass to the

next work station are of acceptable quality

Inspection tools: Operators have the means to perform inspection at the

Quality at the Source

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source, before they pass it along

Visible samples or established standards

Process quality, not inspection

Own Process End of Line Final Inspection Customer Universityof Alabama in Huntsville


Poka-Yoke

Examples:

Manhole cover

Clearance bar in parking garage

VCR (Only insert tape one way)

Car lights beep when left on

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Limits on equipment preventoverloading and damage

Load limits

Positions limits

Scale readings

Machine guarding



Point Of Use Storage

Raw material is stored where

used

Works best if vendorrelationship permits frequent,

on-time, small shi ments

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Simplifies physical inventory

tracking, storage, and handling

Small lot containerization

Mixed load conveyance

Opportunity for inventoryreduction


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Total Productive Maintenance

TPM is a process that maximizes the productivity ofequipment for its entire life cycle and will extend the

life of the equipment. Goal is to minimize downtime due to breakdown

maintenance and to maintain machines at peak

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performance

Through the participation of all employees



10 minutes

10 minutes



10 minutes

ProcessA

ProcessB

ProcessC


50

+ mnu es or rs pece


5 minutes5 minutes


5 minutes

ProcessA

ProcessC

ProcessB

11+ minutes for first piece Universityof Alabama in Huntsville


One Piece Flow

Benefits of Batch Size Reduction

Reduces overall lead time

Greater flexibility to changes in

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demand

Reduced WIP and inventory costs

Reduced quantity of defects

Easier to maintain FIFO/lot control

Foundation for a pull system


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10 minutes

10 minutes



10 minutes

ProcessA

ProcessB

ProcessC

Continuous Flow Processing

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21+ minutes for first piece

12 min. for total order3 min. for first part

ProcessB

ProcessA

ProcessC




Pull System

Pull System - a method of controlling the flow of resources by replacingonly what has been consumed.

Eliminates wastes of handling, storage, expediting, obsolescence, repair,

rework, facilities, equipment, excess inventory (work-in-process and finished).

Pull System consists of:

-

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- Small lots

- Low inventories

- Management by sight

- Better communication



Kanban

Tool used to operate the pull system

Signal toProduce or Convey

Includes information about

What

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When

Where

How Much

Can take many forms

May include outside suppliers

tore ress

Supplier

Part No.

Kanban #

ne ress

Quantity Card #

Line Name


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Kanban Systems

An approach to production that, when implemented, eliminates

sources of waste in the production flow.

Orders CASH ($)

Material

K

A

K

A

K

A

RoteRoteRote RedRoteRote RedRedRote RedRedRed RedRedRed

5555

Supplier ASSY TestNB

A

N

N

B

A

N

N

B

A

NMaterial Flow

Information Flow

Make what customer wants, when customer

wants it

Next process is the customer



Cellular Manufacturing

Link manual and machine operations into the most efficient

combination to maximize value-added content while minimizing waste.

LatheLathe MillMill MillMill InspectInspectDrillDrill11 22 33 44 55

5656

DrillDrill

TestTestDrillDrill

PackPack

1010 99 88 77

66

2727SecondsSeconds

2727SecondsSeconds

InspectInspect

2727SecondsSeconds



Refining the Cell: 5 Step Process

Step 1: Group Products

Step 2: Assess Demand, Establish Takt Time

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Step 3: Review Work Sequence

Step 4: Combine Work in Balanced Process

Step 5: Design Cell Layout


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TAKT Time

Takt Time = Demand RateTakt Time = Demand Rate

Takt Time =Takt Time = Work Time AvailableWork Time AvailableNumber of Units SoldNumber of Units Sold

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300 seconds300 seconds

30 units30 units= 10 sec/unitTakt Time =



Step 3: Review Work Sequence

Observe each workers sequence of tasks

Break operations into observable elements

Identify Value-Added versus Non- Value-

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-

Added time

Study machine capacity, cycle times and

changeover times



Review Work Sequence and Work Balancing

10

15

20

Unbalanced Line

10

15

20

Balanced Line

TAKT

Time

60

0

5

A B C D E

Operation

0

5

A B C D E

Operation

Takt Time = 10 seconds


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Step 5: Design and Construct Cell

Design Goals

Flexible layout, lot size = 1, Point of Use Storage

(POUS), visual management Mixed models

Simplify Flows

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Integrate process operations, materials flow one way

Minimize Materials Handling

Concentrate on value-added motion

Establish material replenishment procedure

Make Use of People 100 Percent

Promote visibility and flexibility

Operators stand for flexibility Universityof Alabama in Huntsville


Step 5: Design & Construct Cell

62Optimal



10 minutes

10 minutes



10 minutes

ProcessA

ProcessB

Process

C


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21+ minutes for first piece

12 min. for total order3 min. for first part

ProcessB

ProcessA

ProcessC



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Tube Factory

Lets RedesignUsing the

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Manufacturing



Growth Strategy

Satisfy the Customer

Sales

Improvement

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Invest in Employees

Grow the Company

Profit



Kaizen and Lean

Kaizen is the vehicle of implementation for Lean

tools


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Kaizen Event

Kaizen is the process

of:

Identifying &eliminating waste

as quickly as possible

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at the lowest possible

cost

Kaizen requires:

Continuous, gradual,

persistent improvement

by all employees and

management

Kaizen utilizes: Cross functional team

Focused scope

Aggressive goal Universityof Alabama in Huntsville


Lean Thinking

Womack and Jones FiveWomack and Jones Five--Step ApproachStep Approach

1. Find a change agent

2. Find a sensei

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.

4. Map your value streams

5. Pick something and get started



Lean Thinking

Womack and Jones FiveWomack and Jones Five--Step ApproachStep Approach

1. Find a change agent (how about you?)

2. Find a sensei (a teacher)

3. Seize or create a crisis

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Most jump from Step Three to Step FiveMost jump from Step Three to Step Five

5. Pick something and get started

And skip Step Four!And skip Step Four!

4. Map your value streams


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%

90% 90% 90%75%

Quality

90%

UnitCost

25%

Inventories

90%

LeadTimes

90%

ScheduleCompliance

75%

FloorSpace

50%

Kaizen Improvement Potential

I

M

PRO

V

E

M

E

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25%

50%NT



Conclusion

Lean

Simple and visual

Demand driven

Inventory as needed

Reduce non-value

Traditional

Complex

Forecast driven

Excessive inventory

v -

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added

Small lot size

Minimal lead time

Quality built

Value streammanagers

work

Batch production

Long lead time

Inspected-in

Functional Departments



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