How Lean Saves Money - ASQ · PDF file5 S’s (+ 1) Workplace Organization ... Seiri...

© - Copyright Bureau Veritas

How Lean Saves Money

Joe Margarucci January 2016

2 Lean Training Module © - Copyright Bureau Veritas

Objectives ► To Learn the 8 Wastes for Lean ► To understand several tools of Lean

l  5S l  Standardized Work l  Quality @ the Source l  Total Productive Maintenance l  Single Minute Exchange of Dies

► To see examples of how these tools can be used to save money

Lean Initiative


“All we are doing is looking at the time line, from the moment the customer gives us an order to the point when we collect the cash. And we are reducing the time line by reducing the non-value adding wastes.”

Taiichi Ohno (father of the Toyota Production System, which became Lean Manufacturing in the U.S) http://www.leankaizen.co.uk/inspirational-quotations.html


The 8 Wastes

1. Overproduction

2. Excess Inventory

3. Defects/Errors

4. Excess Motion

5. Excess Transportation

6. Waiting

7. Underutilized People

8. Non-value Added Process


1.  OVER PRODUCTION

► Making more, earlier or faster than is required by the next process

► Examples: –  High WIP between

operations –  Over testing

8 Categories of Waste:


8 Categories of Waste

2. DEFECTS / ERRORS

► Mistakes that cause us to rework or redo a task

► Examples: –  Rejected samples/lots –  Typos –  Missed tests –  Errors missed

during first review –  Wrong Set-ups



3. EXCESS INVENTORY

► Any supply in excess of a one-piece flow through a process

► Examples: –  Large batches before

sending to next step –  Too many directions (overly

complicated procedures/too many procedures)

–  Excess supplies



4. NON-VALUE PROCESSING ► Effort that adds no value to the

product or service from the customers’ viewpoint.

► Examples: –  Adding product functionality or quality

that the customer doesn’t need or want –  Quality control not Quality Assurance –  Too many people involved in decision-

making –  Requiring adjustments to be done by

person with “special” qualifications or job title.


8 Categories of Waste – 4 EXCESS MOTION

5. EXCESS MOTION ► Any movement of people

that does not add value to the product or service.

► Examples: –  Moving tools around in tool box

or at work station to find the right one

–  Walking &/or over-reaching at work station

–  Work elements not properly sequenced to promote flow

–  Walking back & forth to get samples or paperwork



6. EXCESSIVE TRANSPORTATION ► Transporting inventory,

forms & information within & between departments & offices

►  Examples: –  Moving products/

paperwork/ samples to next step before it is finished then chasing.

–  Spaghetti diagram



7. WAITING ► Idle time created when waiting for? ► Examples:

– Waiting for down or upstream production to be complete

– Change over Line / equipment cleaning – Waiting while equipment or computer systems are down (or slow).

– Waiting for Quality Check before releasing results

– Waiting for pre-payment



8. UNDERUTILIZED PEOPLE ►  The waste of not using

people’s KSA’s. (Knowledge, Skills & Abilities).

►  Examples: – Using technical staff for

Admin processing – Putting creative people in

isolated routine jobs – Insufficient & improper

training


5S


5 S’s (+ 1) Workplace Organization

Sort Keep only what is needed in your area.

Sustain Self discipline to maintain established procedures.

Safety Exits clearly marked; unobstructed

Floor openings covered

Cords and wire off floor

Stacked material stable Flammable materials properly stored

Fire equipment clearly marked

Standardize Develop system (rules) to maintain what has been done

Set in Order A place for everything and everything in its place

Shine Clean up the workplace

Seiri Seiton

Seiso Seiketsu

Shitsuke


Workplace Organization


Department Results: Facilities

HIGHLIGHTS

•  First area 5S’d with min/max quantities •  Machine shop much safer

AREAS FOR IMPROVEMENT

•  Need to expand sorting and straightening to mezzanine •  Identified area leader with regular checks

Sort

Straighten

Shine

Standardize

Sustain

AvgScore

FacilitiesClosets/MachineShop

4 3 4 3 2 3.2


Department Results: Hardlines

HIGHLIGHTS

•  Good surface taping of benchtop equipment •  Better management of samples within the lab


•  Need to move to micro level in drawers and cabinets •  Need to assign owners to each area and institute checklist

Sort

Straighten

Shine

Standardize

Sustain

AvgScore

HardlinesLab 3 4 2 3 2 2.8


Department Results: Softlines

HIGHLIGHTS

•  Good identification for samples in progress •  Some excellent examples of micro level 5S in drawers •  Good visual controls


•  Need to sustain – items placed incorrectly •  Still some macro sorting in some areas •  Shine needs to be sustained

Sort

Straighten

Shine

Standardize

Sustain

Score

SoftlinesLab 3 4 3 3 2 3


Department Results: Mailroom / RG

HIGHLIGHTS

•  Good macro and micro level labeling with min/max marking •  Weekly 5S checklist posted and completed


•  Need labeling of paper storage in RG area

Sort

Straighten

Shine

Standardize

Sustain

Score

Mailroom/RG 5 5 5 4 3 4.4


5S – 2016 Improvement Focus

Focus on Standardization and Sustain •  Implement and standardize

5S checklist for all departments using same format.

•  Identify area leaders.

•  Begin doing your own audits.


Our Next Steps (year 2)

•  Finish any areas that were missed/incomplete in 2015

•  Focus on 4th and 5th S.

•  Create and implement a 5S checklist with images of how you want the area to look.

•  Think about flow and work-in-progress. Spaghetti diagrams are a great way to check that you have optimized your set-up.

•  Can you identify what the status of each sample is?

•  Perform one last “centralized audit” Q1. After that, each area will perform their own audit and provide results in Q2, Q3, and Q4.


Standardized Work

Establishing precise procedures for each person’s work in a process, based on three elements:

1.  Takt time

2.  work sequence

3.  standard inventory


Standardized Work

1.  Takt time - the rate products/services must be made in a process to meet customer demand.


Working to a TAKT Time is one step in getting production to flow smoothly.

Work Time Available

Number of Units Sold / Period

= TAKT Time

TAKT Time = 27,000 secs./shift

500 units/shift

= 54.0 secs.

Work Time

Available / Period

(one shift)

Shift Time (ex. 8 hrs.) 480 mins.

Breaks - 2 @ 10 minutes - 20 mins.

Clean-up at end of shift - 5 mins.

Work Time Available: 450 mins.

= 27,000 secs.

Other non-prod. time - 5 mins.

Standardized Work

Takt Time Calculation


Standardized Work

2.  The work sequence, in which a person performs tasks within takt time.

•  Need to find the most efficient effective way and implement it


Standardized Work

3.  The standard inventory, required inventory to keep the process operating smoothly.

•  Keep just what is needed now to perform the function in the work area.


Quality at Source

► Each person must take full responsibility that what they pass along to the next person is within acceptable quality limits.

► To do this, each person must be supplied with a way to perform an inspection at the source and have simple & clear standards and documentation regarding acceptable quality limits.


Quality at the Source

►  How did we do it?


Quality at the Source ► Start by understanding/defining Inputs & Outputs.


Quality at the Source ► Brainstorm with team to define inputs and outputs (post-it

notes on a flipchart)

► Group by affinity


Quality at the Source

► Group to vote on most important


Quality at the Source ► Supervisor/Manager

to help define cutoff (shoot for 3 to 6 Inputs and 3 to 6 outputs per process step.

► Document – Train – Implement

► Update as appropriate


TPM

Total Productive Maintenance


Total Productive Maintenance

}  Seven (7) steps are implemented to progressively increase operators knowledge, participation and responsibility for the equipment.

}  1. Conduct initial cleaning and inspection }  2. Eliminate sources of contamination }  3. Establish provisional standards }  4. General inspection, development, and training }  5. Autonomous general inspection checks }  6. Improve workplace management and controls }  7. Participate in advanced improvement activities.


STEP 1 - Perform initial cleaning and inspection

Cleaning as form of inspection!

•  Purpose: •  To show the value cleaning as inspection •  Control equipment deterioration •  Establish team ownership through physical contact with

equipment •  Involve team in identifying and addressing abnormal conditions

•  By removing dirt and grime this results in discovery of abnormal conditions through the use of senses.


Step 2 – eliminating sources of contamination and inaccessible areas

The focus here is to prevent contamination and eliminate obstacles to effective cleaning and inspection.


•  Cleaning Standards •  Lubrication Standards •  Inspection Standards •  Calibration Standards •  Schedules

Step 3 – Develop provisional Standards


Step 4 – General inspection, developement, and training

Focus on the 6 subsystems: •  Lubrication •  Machine elements •  Pneumatics •  Hydraulics •  Electrical systems •  Drive systems

•  Purpose: •  Build team knowledge and equipment

inspection/diagnostic skills •  Expand the scope of routine inspection •  Promote systematic restoration activities •  Enhance preventive maintenance through visual

controls


Step 5 – Autonomous general inspection checks

•  Purpose:

•  Train teams in general inspection

•  Continue to establish partnerships

•  Optimize periodic inspection •  Match routine cleaning/

inspection standards with general inspection standards


Step 6 – Workplace Management and Controls

Determine scope of expanded improvement activities

Train groups in 5S and visual controls Before After


Step 7 – Ongoing General Inspection and Improvement

This is the milestone in the journey where we are partnering with each other. Speaking each others language. We now have

•  Process Owners •  Communication •  Collaboration – No Blame •  Cooperation •  Leadership in no particular order

This step follows up on continuing projects,

expands team participation to other equipment-related improvement projects, and continues to build operator diagnostic and maintenance skills.


• TPM 15-03 Total Productive Maintenance 1610 Flame Chamber

• Background (Define)

•  Flame Chamber is run until failure.

•  Gas flex lines wear and are inspected daily.

•  Gas line changeovers are manually done.

•  Most supplies needs and checks are done when needed and not planned

•  Annual Chamber calibration for timer and flame gage

• Current Condition (Measure)

• Cause Analysis (Analyze)

• Target Condition (Improve)

D M A I C

•  We gathered the appropriate team consisting of operators, maintenance, and management to focus on the Autonomous Maintenance pillar of TPM which uses a 7 step process.

• Confirmation (Control) [90days]

•  Elimination of gas line replacements and reduced daily inspection time.

•  Reduction of machine contamination through visual control.

•  Team based provisional standard has produced ZERO downtime since implementation

• Flame labs #1 piece of Key Critical Equipment(KCE) is the 1610 flame Chamber. Any downtime increases costs in testing, repair, and scheduling. Our goal is to increase the Overall Equipment Effectiveness(OEE) of this chamber.

•  No collaboration. Operators, Facilities, and Management have specific roles and separate views on what their role is on this piece of equipment. Operators run it, Facilities maintains/repairs it, and Management schedules it.

•  No systematic method for improving routine inspections and maintenance

•  No control over contamination to the internal parts of this machine.

•  Gas lines wear out quickly and operators are inspecting gas lines. This takes caution and time.

•  Implement provisional standard for Inspection and cleaning.

•  Eliminate hazardous flexible gas lines. Hard pipe back wall of hood and install quick disconnects for easy gas changeover and improved safety.

•  Eliminate soot buildup by replacing lower front cover with Plexiglas for immediate and simple visual aid.


► Identify internal vs. external changeover tasks

► Analyze each task’s real purpose and function

► Focus on no/low cost solutions

► Aim to eliminate changeover time

Quick Changeover/Setup Reduction

SMED (Single Minute Exchange of Dies)


► Not quick: Must heat molds and plates before changeover

► Quicker: Test stand with hot plates to pre-heat molds and plates

Courtesy of Playtex Panama, Santo Domingo, DR

SMED Example


How Lean Saves Money?

►  Space savings ►  Fewer defects/errors ►  Find problems earlier ►  Less searching/movement ►  First impression ►  Increased morale ►  Improved Safety ►  Fewer Breakdowns


Reference Materials

•  Lean Thinking by Jim Womack and Daniel Jones (What is Lean)

•  Getting the Right Things Done by Pascal Dennis (Strategy Deployment)

•  Learning to See, by Mike Rother, John Shook, (Value Stream Mapping)

•  Toyota Kata by Mike Rother (How does Toyota do improvement)

•  Work that Makes Sense by Gwendolyn Galsworth (Visuality)

•  Creating Level Pull by John Shook (Pull Systems)

•  And many more for specific applications (Finance, Design, IT, etc.)

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