Avtech Operations Continuous Improvement Activitiescourses.washington.edu/ie337/Avtech.pdf ·...

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Avtech Operations Continuous Improvement Activities Welcome UW IE Students! November 6, 2002

Transcript of Avtech Operations Continuous Improvement Activitiescourses.washington.edu/ie337/Avtech.pdf ·...

Page 1: Avtech Operations Continuous Improvement Activitiescourses.washington.edu/ie337/Avtech.pdf · Avtech Operations Continuous Improvement Activities Welcome UW IE Students! November

Avtech Operations Continuous Improvement Activities

Welcome UW IE Students! November 6, 2002

Page 2: Avtech Operations Continuous Improvement Activitiescourses.washington.edu/ie337/Avtech.pdf · Avtech Operations Continuous Improvement Activities Welcome UW IE Students! November

Lean Manufacturing Motivation

• Per the Avtech 2002 Business Plan: – “Improve product quality, schedule

performance, and cost through continuous improvement... by better utilizing planning, process flow methods, and systems”

Page 3: Avtech Operations Continuous Improvement Activitiescourses.washington.edu/ie337/Avtech.pdf · Avtech Operations Continuous Improvement Activities Welcome UW IE Students! November

Lean Manufacturing Motivation

• Lean manufacturing changes the focal point from the process to flow of value (value stream).

• Value Stream - all the actions (both value added and non-value added) currently required to bring a product from raw material into the hands of the customer.

Page 4: Avtech Operations Continuous Improvement Activitiescourses.washington.edu/ie337/Avtech.pdf · Avtech Operations Continuous Improvement Activities Welcome UW IE Students! November

Lean Manufacturing Motivation

• Value Stream Improvement - focuses on material and information.

• Process-Level Improvement - focuses on people and process flow and eliminating waste at the shop floor team level.

Page 5: Avtech Operations Continuous Improvement Activitiescourses.washington.edu/ie337/Avtech.pdf · Avtech Operations Continuous Improvement Activities Welcome UW IE Students! November

Lean Manufacturing Motivation

• One of the big advantages of creating flow teams is that it causes us to take a long, hard look at the processes and make improvements by reducing waste.

Page 6: Avtech Operations Continuous Improvement Activitiescourses.washington.edu/ie337/Avtech.pdf · Avtech Operations Continuous Improvement Activities Welcome UW IE Students! November

Lean Manufacturing Motivation

• Results:– Lead times are reduced– Flexibility increases and we can build the right

product at the right time– WIP on the manufacturing floor is reduced– Space requirements are reduced

Page 7: Avtech Operations Continuous Improvement Activitiescourses.washington.edu/ie337/Avtech.pdf · Avtech Operations Continuous Improvement Activities Welcome UW IE Students! November

Lean Manufacturing Motivation

• Results (cont):– Quality is improved by reducing process

variation and quality problems are eliminated before they grow

– Overproduction is reduced and, eventually, even eliminated (producing more, sooner, faster than is required by the next process)

Page 8: Avtech Operations Continuous Improvement Activitiescourses.washington.edu/ie337/Avtech.pdf · Avtech Operations Continuous Improvement Activities Welcome UW IE Students! November

Lean ManufacturingImplementation Steps

• Creating continuous flow teams involves four steps:– Define the product family– Evaluate the current state– Develop the future state – Implement

Page 9: Avtech Operations Continuous Improvement Activitiescourses.washington.edu/ie337/Avtech.pdf · Avtech Operations Continuous Improvement Activities Welcome UW IE Students! November

Define the Product Family

• A product family is defined as a group of products that pass through similar processing steps and over common equipment in our downstream processes.– Similar assembly procedures– Similar testing procedures– Similar work content– Similar material

Page 10: Avtech Operations Continuous Improvement Activitiescourses.washington.edu/ie337/Avtech.pdf · Avtech Operations Continuous Improvement Activities Welcome UW IE Students! November

Define the Product Family

• Demand Profile requirements– Predictable– Relatively stable rate– Volume high enough to sustain a work team

Page 11: Avtech Operations Continuous Improvement Activitiescourses.washington.edu/ie337/Avtech.pdf · Avtech Operations Continuous Improvement Activities Welcome UW IE Students! November

Evaluate the Current State

• Complete detailed time studies of each element of each process step for the product family.

• Complete detailed study of process flow for the product.

• Note non-value added activities and waste streams.

Page 12: Avtech Operations Continuous Improvement Activitiescourses.washington.edu/ie337/Avtech.pdf · Avtech Operations Continuous Improvement Activities Welcome UW IE Students! November

Evaluate the Current State

• Investigate document changes to improve manufacturing processes.

• Investigate process changes to improve cycle time.

• Create baseline metrics.

Page 13: Avtech Operations Continuous Improvement Activitiescourses.washington.edu/ie337/Avtech.pdf · Avtech Operations Continuous Improvement Activities Welcome UW IE Students! November

Create the Future State

• Create a Gantt chart and define the work team size.– A Gantt chart details the sequential process

flow to assist in balancing the production line– Standardizes work content

Page 14: Avtech Operations Continuous Improvement Activitiescourses.washington.edu/ie337/Avtech.pdf · Avtech Operations Continuous Improvement Activities Welcome UW IE Students! November

Process Gantt ChartPerson 1 6:00 6:15 6:30 6:45 7:00 7:15 7:30 7:45 8:00 8:15 8:30 8:45 9:00 9:15 9:30 9:45 10:00 10:15 10:30 10:45 11:00 11:15 11:30 11:45 12:00 12:15 12:30 12:45 13:00 13:15 13:30Complete assy prior to cal (2) units BCal and install select(5) units BGroup B off to coating

-30 prep one side C

Install cover and finaltest A

Group A off to FI

-30 prep work C

Solder -30 comp (3)

Person 2 6:00 6:15 6:30 6:45 7:00 7:15 7:30 7:45 8:00 8:15 8:30 8:45 9:00 9:15 9:30 9:45 10:00 10:15 10:30 10:45 11:00 11:15 11:30 11:45 12:00 12:15 12:30 12:45 13:00 13:15 13:30Complete assy prior to cal (3) units B

Assemble less covergroup A AGroup A off to inspect

Make diode assys CTouch up -50 CComplete -50 assy C

solder -30 comp (2)

crimp conn wires

Page 15: Avtech Operations Continuous Improvement Activitiescourses.washington.edu/ie337/Avtech.pdf · Avtech Operations Continuous Improvement Activities Welcome UW IE Students! November

Create the Future State

• Change drawings, processes, etc. as needed to support the Gantt chart.

• Create the POU warehouse.– Define common and unique parts– Determine kanban sizing– Coordinate intent to go POU with stores

Page 16: Avtech Operations Continuous Improvement Activitiescourses.washington.edu/ie337/Avtech.pdf · Avtech Operations Continuous Improvement Activities Welcome UW IE Students! November

Create the Future State

• Evaluate resources needed to support the future state.– Test equipment– Shared resources– Physical location – Available labor

• Evaluate the future state for improvement in metrics.

Page 17: Avtech Operations Continuous Improvement Activitiescourses.washington.edu/ie337/Avtech.pdf · Avtech Operations Continuous Improvement Activities Welcome UW IE Students! November

Implement

• Change all necessary drawing, procedures, routers, etc.

• Train new team members to the Gantt.• Physically set-up the work team.• Set up the warehouse in MMC and in the

work area.

Page 18: Avtech Operations Continuous Improvement Activitiescourses.washington.edu/ie337/Avtech.pdf · Avtech Operations Continuous Improvement Activities Welcome UW IE Students! November

Implement

• Start priming the system. • Kick-off new team.• Monitor progress continually.

Page 19: Avtech Operations Continuous Improvement Activitiescourses.washington.edu/ie337/Avtech.pdf · Avtech Operations Continuous Improvement Activities Welcome UW IE Students! November

Lean Manufacturing Benefits

Page 20: Avtech Operations Continuous Improvement Activitiescourses.washington.edu/ie337/Avtech.pdf · Avtech Operations Continuous Improvement Activities Welcome UW IE Students! November

Cycle Time Reduction

• The benefits of reduced cycle time include:– reduced lead time– improved ability to meet customer demand

changes– ease of management– less dependence on forecasts– less inventory required for same throughput

Page 21: Avtech Operations Continuous Improvement Activitiescourses.washington.edu/ie337/Avtech.pdf · Avtech Operations Continuous Improvement Activities Welcome UW IE Students! November

Team H Cycle TimeTeam H Work Order Cycle Time

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

01/11

/2001

02/05

/2001

02/05

/2001

02/07

/2001

03/02

/2001

04/09

/2001

05/04

/2001

05/17

/2001

05/23

/2001

06/15

/2001

06/27

/2001

07/23

/2001

07/27

/2001

08/20

/2001

08/28

/2001

09/25

/2001

10/09

/2001

10/18

/2001

11/09

/2001

11/19

/2001

11/27

/2001

01/22

/2002

02/05

/2002

02/21

/2002

02/27

/2002

03/11

/2002

03/26

/2002

4/30/0

24/1

9/02

work order #

work

ord

er c

ycle

tim

e (d

ays)

Series1 4 per. Mov. Avg. (Series1)

Page 22: Avtech Operations Continuous Improvement Activitiescourses.washington.edu/ie337/Avtech.pdf · Avtech Operations Continuous Improvement Activities Welcome UW IE Students! November

Team Y Cycle TimeTeam Y 6 Month Work Order Cycle Time

0

5

10

15

20

25

30

35

40

5483

-1-8

52

83-1-

1

5483

-1-8

54

83-1-

7

5483

-1-7

54

83-1-

8

5483

-1

5483

-1

5483

-1-8

54

83-1-

7

5283

-1-6

54

83-1-

7

5483

-1-7

54

83-1

55

83-1

52

83-1-

6

5483

-1

5483

-1-7

54

83-1-

8

5583

-1-2

55

83-1-

2

5483

-1-8

54

83-1-

7

5583

-154

83-1-

8

5483

-1-8

55

83-1

5483

-1-7

5583

-155

83-1

part number

wor

k or

der c

ycle

tim

e (d

ays)

Series1 15 per. Mov. Avg. (Series1)

Page 23: Avtech Operations Continuous Improvement Activitiescourses.washington.edu/ie337/Avtech.pdf · Avtech Operations Continuous Improvement Activities Welcome UW IE Students! November

Team D Cycle TimeTeam D Work Order Cycle Time

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

7E+0

5

7E+0

5

7E+0

5

7E+0

5

7E+0

5

7E+0

5

7E+0

5

7E+0

5

7E+0

5

7E+0

5

7E+0

5

7E+0

5

7E+0

5

7E+0

5

7E+0

5

7E+0

5

7E+0

5

7E+0

5

7E+0

5

7E+0

5

7E+0

5

7E+0

5

7E+0

5

7E+0

5

7E+0

5

7E+0

5

7E+0

5

7E+0

5

7E+0

5

7E+0

5

7E+0

5

7E+0

5

work order #

work

ord

er c

ycle

tim

e (d

ays)

Series1 5 per. Mov. Avg. (Series1)

Page 24: Avtech Operations Continuous Improvement Activitiescourses.washington.edu/ie337/Avtech.pdf · Avtech Operations Continuous Improvement Activities Welcome UW IE Students! November

Cycle Time Reduction

• Average cumulative cycle time reduction across teams D, H, and Y is

• 116 days

Page 25: Avtech Operations Continuous Improvement Activitiescourses.washington.edu/ie337/Avtech.pdf · Avtech Operations Continuous Improvement Activities Welcome UW IE Students! November

WIP Turns and WIP $• The benefits of increased WIP turns and

decreased WIP $’s include:– Lower inventory levels (as upstream inventory levels

are decreased in conjunction with the reduction) – Less capital tied up in inventory (as upstream

inventory levels are decreased in conjunction with the reduction)

– Converts inventory into revenue more quickly – Quality issues or Engineering changes easier to

manage– Less dependence on forecast

Page 26: Avtech Operations Continuous Improvement Activitiescourses.washington.edu/ie337/Avtech.pdf · Avtech Operations Continuous Improvement Activities Welcome UW IE Students! November

Aggregate WIP TurnsAvtech Aggregate WIP Turns

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Jun-9

6Nov

-96Apr-

97Sep

-97Fe

b-98

Jul-9

8Dec

-98May

-99Oct-

99Mar-

00Aug

-00Ja

n-01

Jun-0

1Nov

-01Apr-

02Sep

-02Fe

b-03

Jul-0

3Dec

-03

date

WIP

turn

s

Page 27: Avtech Operations Continuous Improvement Activitiescourses.washington.edu/ie337/Avtech.pdf · Avtech Operations Continuous Improvement Activities Welcome UW IE Students! November

Improved workplace organization

• The benefits of better workplace organization include:– Forces the question “do we really need this?”– Ease of movement of cells– PC’s on bench allow for easy access to

documentation and reduce workstation clutter– Efficient use of manufacturing floor space

Page 28: Avtech Operations Continuous Improvement Activitiescourses.washington.edu/ie337/Avtech.pdf · Avtech Operations Continuous Improvement Activities Welcome UW IE Students! November

Improved Workplace Organization

• “Old”, cluttered, disorganized inventory storage system in REU

Page 29: Avtech Operations Continuous Improvement Activitiescourses.washington.edu/ie337/Avtech.pdf · Avtech Operations Continuous Improvement Activities Welcome UW IE Students! November

Improved Workplace Organization

Page 30: Avtech Operations Continuous Improvement Activitiescourses.washington.edu/ie337/Avtech.pdf · Avtech Operations Continuous Improvement Activities Welcome UW IE Students! November

Reduced Footprint50

Stev

e

TS 5

700-

1 Eq

uipm

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ench

REU Test Equipment Bench

REU Test Tech Bench

REU

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Ben

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st Ov

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TS 5340-1 Tester

REU TestTS 2000-1-1

Tester

REU TestTS 2000-1

Tester

New REUTS 2000-1-1

Tester

REU

REU Test Storage Shelf

REU

Test

Supp

ly Ca

binet

IntermecTerminal

429 Simulator

Solde

r Pot

Tab

le

400 Hz

NetworkDrop

NetworkDrop

NetworkDrop

NetworkDrop

NetworkDrop

NetworkDrop

Air Drop

FumexDrop

Burn-in Shelf

Team H: Tech Bench

7513

RTI

U

Team H: Assembly Bench

Team H: Double BayStock Trolley

Team H: PCB Storage Rack

REU

Test

Supp

ly Ca

binet

REU

Test

Supp

ly Ca

binet

REU

Test

Tec

h Be

nch

REU Test PCCart

REU Test PC

Team

V D

ouble

Bay

Troll

ey

Team V Double BayTrolley

Team D: DC Dimmers

Team H: Honeywell RCH

Team R: REUTest

Team V:Selcal

REU Set-up Table

ACP1 Storage Cabinet

ACP1 Storage Cabinet ACP1 Storage CabinetACP1 Storage Cabinet ACP1 Storage Cabinet

REU Test PCCart

REU Test PC

REU Test PCCart

REU Test PC

REU Test PCCart

REU Test PC

NetworkDrop

FumexDrop

NetworkDrop

NetworkDrop

Insp

ectio

n De

sk

Inspection Queue Rack

InspectionStation

NetworkDrop

File Cabinet

Team D & I Double Bay Stock

Trolley

Team D PCB Storage Rack

Team D Assembler Bench Team D Assembler Bench

NetworkDrop

Team I:Windshield

Temp.Controllers

400 HZpower

Fumex

Fumex

Fumex

REU

REU

Test

Tec

hFi

le Ca

binet

Selcal Tech BenchTeam

V Assembler Bench

Team VSupply Cabinet

NetworkDrop

PCB

Stor

age

Rack

ACP1 Storage ShelfFile

Cabinet

File

Cab

inet

File

Cab

inet

REU Inventory

REU

REU

REUREU Fumex

Team R: REU Assembly

Team R Assembler BenchTeam R Assembler Bench Team R Assembler BenchTeam R Assembler BenchG

Team Y: Double BayStock TrolleyTeam Y: Double Bay

Stock Trolley

Team ?: Assembler BenchTeam ?: Tech Bench

Team Y: Double BayStock Trolley

Team ?: PCB Storage Rack

Team C: ACP1 (5145)NetworkDrop

Fumex

Team ?: Assembler Bench

NetworkDrop

400 Hz

Fumex

ACP1 Tech Bench

429

Sim

ulato

r ACP1

ACP1

Sto

rage

She

lf

Inspection Desk

ACP1

ACP1 ACP1

ACP1

ACP1

ACP1

ACP1

ACP1 Assembly Bench

ACP1 Assembly Bench

ACP1 Assembly Bench

ACP1

Ass

embly

Ben

chAC

P1 A

ssem

bly B

ench

ACP1

Ass

embly

Ben

ch

Tech

Ben

ch

Asse

mble

r Ben

chTe

ch B

ench

PCB Storage Rack

E-server Tech Bench

NetworkDrop

U

Team Y: Assembler BenchTeam Y: Tech Bench

Team Y: Double BayStock Trolley

Team

Y: P

CB S

tora

ge R

ack

H &

C Te

ster

Team Y: Handset & Cradle

Fumex

T eam

: Do

uble

Bay

Stoc

k Tr

olley

T eam

: Do

uble

Bay

Stoc

k Tr

olley

Team ?: Assembler Bench Team ?: Tech Bench

Team Y: Double BayStock Trolley

Team ?: PCB Storage Rack

Team T: ACP3 (5361)Network

Drop

Team ?: Assembler Bench

Team U: ACP4 (5701)

Team

: D o

uble

Bay

Stoc

k Tro

lley

390 square feet for future production

Page 31: Avtech Operations Continuous Improvement Activitiescourses.washington.edu/ie337/Avtech.pdf · Avtech Operations Continuous Improvement Activities Welcome UW IE Students! November

Improved Workplace Organization

• Cumulative effect of re-organizations– 460ft2 of free manufacturing space– Unoccupied work cells available for new teams– Eliminated a number of unnecessary pieces of

equipment

Page 32: Avtech Operations Continuous Improvement Activitiescourses.washington.edu/ie337/Avtech.pdf · Avtech Operations Continuous Improvement Activities Welcome UW IE Students! November

POU Inventory Management

• Benefits include:– Shorter cycle time– Reduction in overall product labor content– Ownership of inventory– Mobility– Skill-set proliferation– Better workplace organization– Reduction of non-value-added activity

Page 33: Avtech Operations Continuous Improvement Activitiescourses.washington.edu/ie337/Avtech.pdf · Avtech Operations Continuous Improvement Activities Welcome UW IE Students! November

POU Inventory Management

• Reduced Stores storage by 4.43 shelves.

• Reduced non-value added kitting labor by 807 hours per year or $4,462 per year.

Page 34: Avtech Operations Continuous Improvement Activitiescourses.washington.edu/ie337/Avtech.pdf · Avtech Operations Continuous Improvement Activities Welcome UW IE Students! November

POU Inventory Management

• Cumulative reduction of labor content across the products manufactured by teams D, H, and Y is

• Headcount reduction of 2.6 people• Labor content reduction of $64, 896

Page 35: Avtech Operations Continuous Improvement Activitiescourses.washington.edu/ie337/Avtech.pdf · Avtech Operations Continuous Improvement Activities Welcome UW IE Students! November

Operator Enrichment• Team members learn a broader set of skills

– Warehouse management– Inspection certification– Test stamp certification

• Increased accountability for team performance

• CRSO returns– Improved TAT – Closed feedback loop on product quality

Page 36: Avtech Operations Continuous Improvement Activitiescourses.washington.edu/ie337/Avtech.pdf · Avtech Operations Continuous Improvement Activities Welcome UW IE Students! November

Operator Enrichment

• Self-manage– Warehouse accuracy– Work order release

• Increased cross-training• Source inspection• Self-verification• Assembler - Tester Model• Modified application for batch teams

Page 37: Avtech Operations Continuous Improvement Activitiescourses.washington.edu/ie337/Avtech.pdf · Avtech Operations Continuous Improvement Activities Welcome UW IE Students! November

Future Applications

• Shared resource kanban• Supplier kanbans• Cross-training of team members and regular

rotation• Manufacturing Flow Documents (MFD’s)

Page 38: Avtech Operations Continuous Improvement Activitiescourses.washington.edu/ie337/Avtech.pdf · Avtech Operations Continuous Improvement Activities Welcome UW IE Students! November

Future Applications

• 5S programs• Incorporating more “shared resource

processes” into the small teams• EOQ application where appropriate• Value stream mapping and mixed model

continuous flow

Page 39: Avtech Operations Continuous Improvement Activitiescourses.washington.edu/ie337/Avtech.pdf · Avtech Operations Continuous Improvement Activities Welcome UW IE Students! November

Future Applications

• POU implementation into shared resources• Eliminate dedicated inspectors by

incorporating them into the assembly processes

• Working with customers to increase the frequency of deliveries