kaizen

Presentation on Lean Manufacturing

Mfg. Eras & Definition

Waste & Lean mind setin Organization

Fundamentals of Lean mfg..

System Implementation

Comparison with 6sigma & Lean mfg. Results

Eras in Manufacturing• Craft production

– has existed for centuries• Mass production

– developed after World War I by Henry Ford and General Motors’ Alfred Sloan

– Based on principles of Scientific Management• Lean production

– developed in Japan after World War II– pioneered by Eiji Toyoda and Taiichi Ohno of

Toyota

Comparison

large product varietyhigh productivity and low cost

low productivity, and high cost

high productivity and low cost

standardized productsunique, individualized, custom made products

highly flexible machines

expensive, single purpose machines

simple, flexible tools

teams of multiskilled workers

unskilled or semiskilled workers

highly skilled workers or artisans

LeanMassCraft

Why Lean or 6 Sigma?Business generally hold competitive advantages over their competitors for one of two reasons:

1.Unique Products:Having Superior product to their competition,often in the form of technological capabilities or niche marketing.

2.Low Cost Products:Having a superior process to their competition,often in the form of internal efficiencies or low cost production.

Lean Manufacturing a “brief history at Toyota”

•Manufacturer of trucks and small automobiles in Post-WWII Japan

•A”need” was declared by Toyota’s President to discover a new production method that would eliminate waste and help Toyota catch up with foreign competitors.

•Chief engineers studied writings of Henry ford,then visited Ford plants extensively in the 1950’s -begins the”war on waste”

•IMVP study in 1980’s early identified”Lean Manufacturing”

•1984,Toyota becomes a North American manufacturer with joint venture at NUMMI plant in California.Stellar Results

•1990’s and Beyond,Lean Production Strategies adopted in numerous Industries

•All other Car manufacturers have adopted Lean principles!

Organizations works on Lean

•Boeing

•BMW

•Carrier

•Caterpillar

•Chrysler

•Coca cola

•Dell

•Delhi

•Ford*

•General Motors*

•US Navy*

•Pepsi,co* =both lean and 6sigma

Lean Production

• There are many popular manufacturing buzz words these days, including– Just in time– Continuous improvement– Concurrent engineering– Flexible manufacturing– Total quality management– Statistical process control

• These are all integral parts of lean production

What is Lean Manufacturing?

It is a Strategy to achieve significant,Continuous Improvement in Performance

through the elimination of all waste of time and resources in the total Business Process

Seven types of wastes• Processing itself• Delay & Waiting• Over Production• Motion• Transportation• Inventory• Scrap & Rework

Waste&Lean mind setin Organization

Developing the Lean Mind sets

Cost added70%

Value added30%

30%

70%

30%

10%

0%20%40%60%80%

100%

Before AfterValue added Cost added

3-Step Rules to eliminate Waste

Total

90%

reduction

Step-I

50% reduction

Step-II

2nd 50% reduction

10% of Original Waste

Throughout the Improvement

process,a company must avoid settling

for superficial solutions to cut

waste

Fundamentals in Lean Manufacturing

• Technology Management• People Management• Systems Management

Fundamentals of Lean mfg..

Technology Management

• Structured flow manufacturing• Small lot size production• Setup Reduction• Fitness for use

• Ideally a lot size of one or at the very least,equal to customer’s order.

• Measured as time(and cost)from the last good piece of the previous job or run to the first good piece of the new job to run.

• Short set up enables greater production feasibility,less inventory & more capacity.

Category Scope

• Each next step in the total business throughput process is the previous step’s customer

• One work center must meet the needs or requirements of the next work centers precisely

Structured flow manufacturing

• In functional manufacturing the ration of Work to Motion is low because the products usually required a lot of transportation and other movements during the manufacturing cycle.

Small lot Production

Setup reduction

Fitness For use

Technology Management

People Management

• Total employee Involvement• Control through Visibility• Housekeeping• Total quality focus

• When a problem occurs, so fast & how effective the decisive action can be taken

• Visibility is used as a effective Communication media

• A place for everything and everything in it’s place• Eliminate potential confusion,promote a safer environment and

reduction of waste of time,motion and resources

Category Scope

• Focus requires conformance to standards• Quality of the product indicates the quality of the Process.If there are

problems in the product quality,there are unacceptable variations in the manufacturing or Business process

• Focus encompasses the entire product chain from supplier to customer

Employee Involvement

• Improvement through small group improvement activities• Trigger the Empowerment

Control through visibility

House keeping focus

Total quality Focus

People Management

System Management

• Level load & Balanced flow• M/c maintenance(JH)• Supplier Partnerships• Pull system

• High level operating performance with in the requiredtolerances• Eliminate equipment as a source of process defect

• “Partner” implied long-term & stable relation ship with vendor• Focus on reducing costs for everyone through shared quality

goals,design responsibility,delivery in total cost perspective

Category Scope

• Materials to be pulled when they are needed.• Keeping the time of producing parts as close as possible to to the

time when parts are used• Need more attention in “week link”

Level load and Balanced flow

• Creates effective utilization of manufacturing resources• Level load is scheduling products to be manufactured in equal

quantities during a given period of time• Balanced flow -Continuous flow by effective application of mfg.

resources

Preventive Maintenance(now tbm/cbm & TPM way)

Supplier partnership

Pull system

System Management

Major Targets….

• Absenteeism <1%• More Multiskill• Quick Adaptation

for new methods

• More Reliability• Flexibility • Zero breakdown

Man Machine

• No rejectionMaterial Method

• Visibility/Transparent• Standard Operating

Procedures(3s..)

Steps Scope

Steps in Lean Manufacturing

• Layout change & Kanban for information & material flow

• Line Balancing,(Machine) & Operator Balancing

• Improve MTBF,Reduce MTTR & Reduce spare part consumption-(TPM Implementation-Autonomous maintenance)

Value Stream Mapping

• Study and plot a map of Material,information flow ,Manpower inventory,cycle time,setup time etc.

Create flow

Balance to takt time

Stabilize the Production line

Levelled Production • Match the Customer demand by uniform production rate

Zero Defect • Defect free to customer Process

Improve the flow • Paced withdrawal and Spider man Concept Implementation

What is Value Stream map?

Value stream mapping is a tool that helps you

‘to see and understand’ the flow of material and informationas a product makes its way through

the value stream

Value Stream Map-Over view

• Site Layout• Internal/External

logistics• Partners Value

stream• Plant level”door to

door”

• Process layout-Area layout/Cell design

• Internal/External logistics

• Kaizen (Flow-value stream improvement Vs Process-Elimination of Waste)

• Production scheduling according to demand

Macro Vs MicroMacro Micro

Value Stream Map-Objective

• Lead time Reduction• Inventory turn

Increases• Speed to Marketing

• Waste Elimination• Continuous

Improvement

Macro Vs MicroMacro(Business Strategy) Micro(Site/Operations)

CURRENT STATE MAP

Supplier

Marketing

Month/ weekly /daily plan

Customer

I I

Takt time 54 Sec

1 X daily

Daily Req. 600 Nos.

1 X Daily / weekly

Materialgatepass

Delivery Advice

Process Ratio

MR

P/ E

PO

C/T - Cycle Time C/O - Change Over Time

1 Day

= 0.6 %Production Lead Time

Value added Time=

780

129600

1

Inwarding

inspection

Uptime = 100%

C/T = 300s

C/O = 0

6(Shared)

Packing &

Shipping

2 (shared)

Raw Material

Stores

Kitting

Uptime = 100%

C/T = 60s

C/O = 0

Uptime = 100%

C/T = 60 s

C/O = 0

Order Plan

Uptime = 100%

C/T = 360 s

C/O = 0

1

1 DayProd. Lead time

Processing time300 s 60 s 60 s 360s

Step 1 Value stream mapping

Production

Daily P

lan

3 Days

3 Days

Process ratio - 0.6%

I6 Days

6 Days

Spiderman

Supplier Month/ weekly /daily plan

Customer

I

Takt time 54 Sec

1 X daily

Daily Req. 600 Nos.

1 X Daily

Materialgatepass

Process Ratio

C/T - Cycle Time C/O - Change Over Time

1 Day

= 2.36 %Production Lead Time

Value added Time=

765

32400

1

Inwarding

inspection

Uptime = 100%

C/T = 300s

C/O = 0

6

Finished goods

Shipping

2

Stores Kitting

Uptime = 100%

C/T = 45s

C/O = 0

Uptime = 100%

C/T = 60 s

C/O = 0

Order Plan

Uptime = 100%

C/T = 360 s

C/O = 0

Prod. Lead time

Processing time300 s 60 s 45 s 360s

1

Container size reduction

Online Packing

KanbanOperation

FUTURE STATE MAPStep 1 Value stream mapping

•(shared) •(shared)

Delivery Advice Re Design Work Table

Marketing

MR

P/ E

PO

Production

Daily P

lan

1 Day

Process ratio - 2.36%

I6 Days

6 Days

What is Super Market?

Super market is a place where material is available for the customer,

based on their requirement. From the point of view of a customer,

the Super Market -style purchase ensures that there is not going to be an excess purchase,

customer goes out to buy what is needed and when it is needed

Super Market Pull System"ordering" KANBAN "withdrawal" KANBAN

CUSTOMER PROCESS

Customer process goes to supermarket and withdrawswhat it needs when it needs it.

SUPPLYING PROCESS

Supplying process to replenish what was withdrawn.

PURPOSE

Controls Ordering at suplying process without trying to schedule.

"ordering" KANBAN

It Triggers Ordering of Materials.

"withdrawal" KANBAN

It is a shoping list that instructs the Material handler to get and

transfer materials.

RM-supermarket

Material MaterialA B

Supplying process

Customer process

Introduce kanban for Supplier parts

Supplierplant

store

Monthly schedule from F

Before After

Supplierplant

Super market

SPARES KANBAN

Example of FIFO System

Part no

Kanban cards

FIFO Lane#Withdrawal kanban

RM Description

Supermarket

Down stream process

Up stream process

# FIFO Lane

Operator Balance Chart - Example Step 3 & 4

An Example of Paced Withdrawal & Ordering

Drop kanbanat process center-1

Drop kanbanat process center-2

kanbanwithdrawal Material

Requirement

Drop kanbanat process center-3 ordering kanban

PACEMAKER PROCESS

"RM" supermarket

(repeat the cycle every pitch)

Vendor

ordering RM

2

3

1

4

Pull System

What is Pace setting?

Pace setting is based on the Cycle time of the process center which is directly having

impact on Customer Requirement.Pitch has to be set according to the takt time(available work time/customer requirement)

and quantity need to transfer,by multiplying both.

Why Pace setting?

To distribute the materials evenly over time at the pacemaker process, pace setting to be followed by Spider man..

Who is Spider Man?

The person from subsequent Process who is Pulling material from supermarket when he needs, is Known as Spider man.

He should come in a Paced manner in order to have load-smoothing system of production.

It will eliminate the peaks and Valleys in the work load to avoid excess production and excessive progression in a particular process. This system is increasingly

easier in change the production plan.

Lean & 6Sigma - a comparison

Goal:6 sigma = Reduce Variation

•Understand customer requirement(QFD)

•Focus on critical to quality variables

Lean=Remove waste

•Understand what customer sees as “value”(QFD)

•Eliminate everything that does not add value


Focus6 sigma = Problem focused

•Variation is a problem that can be addressed

•Find the sources with the Largest economic impact

Lean=Flow focused

•The constant “start and stop” of product results in costs that cannot be passed on to the customer•Find the barriers to flow(Work flow Vs Work forced to flow)


Primary Benefit6 sigma = Uniform Process output

•Predictable,dependable processes are always less expensive to operate(less scrap,rework)

•Most companies grossly underestimate their COPQ

Lean=Reduced flow time

•Improving flow will always reduce manufacturing cost(Ford,1926)

Lean & 6’Sigma - a comparison

Secondary Benefit6 sigma

•Less Waste

•Faster throughput

•Improved quality

•Less Inventory

Lean

•Less Variation

•Uniform output

•Improved quality

•Less Inventory

How 6’Sigma helps Lean?!

Lean

•Waste elimination

•Flow

•At the pull of the Customer

•Continuous improvement

Six sigma

•Variation reduction

•Scrap / rework elimination

•Process control

•Continuous improvement

Speed + Accuracy

=Performance•Lean exposes NVA/VA and makes value added flow

•6’Sigma reduces Variation of value added

Differences-Lean & 6 Sigma•Lean is long term - there is no done

•Lean is enterprise wide - it will ultimately involve all employees,as well as supplier and customers

•6’Sigma Project focused,projects usually last 3-6 months

•6’Sigma Promoted Product reliability,Lean promotes Organizational reliability.

kaizen

Documents

Transcript of kaizen