Lean DL Arsene

Agenda

• Who am I?• Batch Production vs. Lean Thinking• Principles of Lean Thinking• Benefits of Lean• Lean Manufacturing Techniques

Dumitru Lucian Arsene• Manager with 12 years experience in Production management,

Strategic Planning and Lean Manufacturing implementation. • Successfully completed over 20 continuous improvements projects to

increase productivity, reduce lead times, improve on-time delivery, reduce inventory, increase inventory turns, improve stock accuracy, eliminate wastes and fluctuation, exceed customer expectations.

Professional BackgroundPullmaster Winch Plant Supervisor 09/07 – 05/09Teleflex Canada Production Supervisor 01/02 – 09/07

Promoted from OperatorLeoni Wiring Systems Plant Manager 01/00 – 11/01 Solectron Production Manager 06/98 – 01/00

Promoted from Production SupervisorOmnitex Production Supervisor 08/94 – 06/98

Mechanical engineer

Lean Achievements• Increased on-time delivery from 40% to 90% at Pullmaster;• Reduced manufacturing lead-time from 4-6 weeks to 3-5 days,

converting functional departments in work cells, at Pullmaster;• Increased inventory turnover from 5.5 to 10.2, reducing raw

inventory from $3 million to 1.6 million at Pullmaster;• Improved stock accuracy from 60% to 90% at Teleflex and Leoni

using Kanban and perpetual inventory stock;• Implemented 5S in Work cells: Pullmaster, Teleflex Canada, Leoni;• Reduced manpower required to operate work cells by 30% at

Pullmaster and Teleflex Canada, by 15-20%: Leoni and Solectron;• Reduced WIP by 80% at Pullmaster, 50% to 70% at Teleflex by

implementing small lots and one piece flow;• Improved efficiency by 25% at Leoni and Pullmaster using SMED

and Group Technology and 20-30% at Teleflex using line balancing and Standardized work;

• Reduced quality defects from 50,000 ppm to 300-4,000 ppm at Pullmaster, Teleflex, Leoni and Solectron using autonomation.

Lean Thinking and Manufacturing Process

Improvement

Understanding the Problems, Fixing the Processes, and Using

Your People to Make it stick

Batch Manufacture

• Machine Utilisation Improved– Increasing the batch quantity produces the most

effective use of the machine between changeovers

• Improved Quality– Small well defined tasks allow lower skilled operators to

produce quality parts

Best and most efficient use of people and machines;

Basic Characteristics of Batch Production

• Production lot sizes as big as possible• Layout according to Machine type• Long changeover times• Holding safety inventory for production

problems • Detailed work division• Single-skilled workers• Control based quality• Management based on central planning• Production planning based on sales

forecasts• Point efficiencies• Priority of capacity utilization

Process 2

WITH SMALLER LOTS

Process 1

Process 2

A B A B

A+B

A B A B

A+B A+B A+B

Mass Production

A B

A+B

Process 1

B BB B BB

Problems With Batch Production

• Long delivery times• Weakness in responding to customer demands• Increase in inventories• Decrease in quality• Increase in non value adding activities• Work becoming more complex everyday• Increasing hierarchy and bureaucracy• Additional costs• Difficulty in adapting to variations• Long term planning necessity • More capital reqirement

Lean Thinking

• Focus change –– Lean Thinking is an approach that aims Lean Thinking is an approach that aims

to get rid of all the wastes (fats) that to get rid of all the wastes (fats) that bring a burden to the system.bring a burden to the system.

– From machine and people utilisation to performing

Value Adding operations,– Value adding: any operation that changes the

component, as that is what the customer pays for.

The components spend more of their time having value added

Batch and Push Manufacturing

Lead Time : for the whole lot 30 ++ minutes

Process A: 10 minutes Process B: 10 minutes Process C: 10 minutes

One Piece Flow

BB B B B

All processes are 1 minute, 3 consecutive processes and lot size ( batch ) of 10

BBB B C CC C

B C

3 min. 12 min.

Continous Flow “produce one,

deliver one”Lead Time: 12 minutes

Which is best?

Run factories, not machines

• The aim of factories is not to ensure all machines and people are constantly working

• The aim of factories is to produce components in the most efficient manner, and this achieved by spending the least time performing non-value adding activities.

The GOAL

• As competition increases getting Lean is compulsory• Producing only the products demanded by the

customer• At the exact time the customer demands• By consuming less resources• And focusing on the activities that create value for the

customer

Basic Principle of Lean Thinking

Value is :Product and/or service with definite specifications,for which the customer is ready to pay for, and that meets the customer’s requirements in a given period of time, with a definite price.

Value is created by the producer and can only be defined by the customer.

Value and WasteValue adding work

Waste ( Muda )

Unavoidable waste ( Incidental work )

•• 3 Types of Activities 3 Types of Activities in a Value Stream:in a Value Stream:

• Value Adding– Transformation of raw material to product according to the customers’ demands

• Necessary Non-Value Adding– Die change, adjustment, get/drop tool

• Non-Value Adding– waiting, counting, sorting, defect, rework

DECREASE

ELIMINATE

Wastes

• Overproduction

• Defects in product

• Inventories

• Unnecessary motion of people

• Excessive transportation of material

• Waiting people, machines and products

• Inappropriate processing

• Inappropriate use of people

WASTES

2. WASTE OF A DEFECT

• This type of waste occurs when a product does not conform to proper specifications. This can result in rework or scrap.

Primary CausePrimary Cause

• Inadequate error-proofing and quality checks

• Poor instructions and training• Poor communication between

customer and manufacturer• Lack of standard work• Inadequate supplier quality• Need for adjustments

1. WASTE OF OVERPRODUCTION

This waste is caused by producing more product than the customer wants to buy.


• Batch production

• Building to a forecast (scheduled

production)

• Traditional productivity

measurements

• Long set-up times

WASTES

3. WASTE OF INVENTORY

• This type of waste leads to waste of materials, parts, and assembled goods.

Primary CausesPrimary Causes

• Batch production method• Long set-up times• Lack of continuous flow of

product and people• Push production system• Unnecessary product flow• Bottlenecks

4. WASTE OF MOTION

• This is waste caused by non-value added movement of people and machines.


• Inefficient flow design

• Inefficient procedures

• Lack of standardized work practices

WASTES5. WASTE OF

TRANSPORTATION

• This type of waste results from the unnecessary movement of material or product.


• Inefficient facility layout

• Lack of continuous flow

• Non-value added operations

• Batch mentality

6. WASTE OF WAITING

• This type of waste results from the unnecessary delay of processing material or product.


• Lack of continuous flow

• Non-value added operations

• Long set-up times

• Production runs too long

• Poor scheduling

WASTES

7. WASTE OF OVERPROCESSING

• This is waste caused by unnecessary processes and operations.

•• Primary CausesPrimary Causes

• Use expensive high precision equipment where simpler tools would be sufficient.

• Lack of attention to changes in what is needed

• Not properly identifying customer needs

• Variations due to lack of standard work and due to variations in types of products produced

8. WASTE OF A PERSON

• This waste is caused whenever a person engages in any of the previous wastes.


• Lack of effective relationships or communication between employees, supervisors and managers

• Lack of employee education, awareness and involvement

Examples of Waste

• Watching a machine run• Waiting for parts• Counting parts• Producing parts that aren’t needed• Moving parts over long distances• Storing inventory• Looking for tools or parts• Machine breakdown• Rework and scrap• Products that don’t meet the needs of customers

The Causes of Waste

• Insufficient working methods• Long changeovers• Insufficient processes• Lack of training• Insufficient maintenance• Long distances• Lack of leadership

Represents the 3 critical management tasks a specific product ( goods and / or services ) should pass through :

Value Stream

• Problem Solving : Starting with concept, continuing with detailed design and engineering and ending with the launch of production

• Information Management : Starting with order, continuing with detailed scheduling and ending with delivery to the customer

• Physical Transformation : Starting with raw material, continuing with production and ending with the realization of the final product.

R & D Planning Production Distribution Sales

R & D Planning Production Distribution Sales

Lead Time

Model

In Plant Value Stream

MÜŞTERİTEDARİKÇİSiparişemri

Siparişemri

PROSES

1

PROSES

1

PROSES

1

Production programme

PLANLAMA

MRP

minutesminutes

weeksweeks

SUPPLIERORDER

PLANNINGORDER

CUSTOMER

PROCESS PROCESS PROCESS

Lead Time

design production delivery

The GOAL

Value Adding Activity Waste (Muda)

To Decrease Lead timeTo Decrease Lead time

To Increase Value Added Time %To Increase Value Added Time %

The GOAL

• Financial gains by freeing up resources• Producing according to real demand instead

of forecasts• Providing customer satisfaction• Providing traceability of quality• Reducing unnecessary part inventories• Reducing the risk of being outdated• Reducing fluctuation due to promotions

When we decrease the lead time by eliminating wastes:

Manufacturing Lead time

99 % 1%Time

A typical manufacturing company

Time90 % 10 %

Lean Manufacturing ApproachValue Added

Waste (Muda)

99.5 % 0.5 %

Improvement results with traditional methods

Time

Produce one - deliver one without waiting

Continous Flow

• By performing the real value creating steps consecutively, transform the raw material into a product and deliver it to the end user

• Perfect every step (KAIZEN)– capable – right every time (6 SIGMA)

– available – always available (TPM)

– appropriate – flexible and at the desired scale ( LEAN )

Batch and Push Manufacturing

Lead Time : for the whole lot 30 ++ minutes

Process A: 10 minutes Process B: 10 minutes Process C: 10 minutes

One Piece Flow

BB B B B

All processes are 1 minute, 3 consecutive processes and lot size ( batch ) of 10

BBB B C CC C

B C

3 min. 12 min.

Continous Flow “produce one,

deliver one”Lead Time: 12 minutes

Continous Flow

• Ford, 1913, model T – Continous flow at the final assembly– Sequential layout of machines – 90% resource savings – Same model for 19 years

• Today;– Demand for small lots– Continous flow for all products– Adaptation to fluctuations in customer demand– High product variability demanded by the

customer

Example : Batch Production

Material Warehouse

FinishedGoods

Warehouse

Packaging Painted Parts Storage Touch up

Semi Finished Product WarehouseParts

Warehouse

Cut to length Lathe Welding

Semifinished product

assembly

Final Assembly

Painting

Example : Flow Production

Product A CellIncomingPartsWarehouse

FinishedGoods Warehouse

PAINTING

Space gained for new products

Gains :

50% decrease in workforce,

45% decrease in space

94% decrease in lead time

Product B Cell

Product C Cell

Product D Cell

All steps demand from the previous

Pull

• Producing what the next process (customer) demands, at the desired quantity ( not more / not less ) and at the desired time ( not before or later ).

• Following all steps backwards starting from the end customer’s demand

• A simple way to put production under control

Pull System

CUSTOMER

I demand one now

I need one more

RAW MATERIAL

Value should flow, at the time,for the products,and at the speed,demanded by the customer.

Here you are

Here you are

Here you are

Here you are

I need one more

I need one more

Benefits of Pull Systems

• Resources are only allocated to products that are demanded

• No inventories are formed on the value chain• Financial turnover ( cash flow ) speeds up• Regulates the value stream according to the

customer• Problems like ; Obsolete finished goods

inventory at hand; rework or scrapping of products due to design changes; discount campaigns for undemanded products, do not arise.

... What if a machine breaks down?

... What if there are defective parts among the products?

... What if the deliveries are late?

ALL STOP !!

Assembly

Tier 2 Supplier

Painting

Welding

Stamping

Tier 1 Supplier

Main Distributor

Dealer

Lean Flow

Current State

Future State

Perfection ( Ideal State )

Original State

Perfection

Principles of Lean Thinking - Summary

1. VALUE : Specify value for the product2. VALUE STREAM : Identify the value

stream for every product family3. FLOW : Make the identified value flow4. PULL : Make the customer pull the value5. PERFECTION : Manage towards

perfection.

To avoid focusing solely on the technics ,To avoid focusing solely on the technics ,

always repeat the principles !always repeat the principles !

BenefitsParameters GainsProduct Design Lead Time 75%

Manufacturing Lead time 90%

Productivity 100%

Defects 80%

Inventories 90%

Area used 50%

Work Accidents 50%

New Investments Too little

Gains

Reduction in scrap and rework

Reduction in overtime

Increase in delivery performance

Reduction in inventories

Increase in present product sales

Bringing outsourced production in the plantAdding extra value to the products

Reduction in support function department costs

Improvement in cash flow

Reduction in manpower costs

New products

SHORT TERM MIDDLE TERM LONG TERM

New sales via better service

Utilization of freed up space

Reduction in obsolete inventories

Lean Company Model

JIT AUTONOMATION

LEAN MANUFACTURING

SYSTEM

LEAN LEADERSHIP

Lean Supply Chain

Development

Lean organization

and processes

Respect for People and Mutual Trust

ONE PIECE FLOW-SMALL LOTS

LEAN MANUFACTURING TECHNIQUES

5 S

KAIZEN

KANBAN

JIT/PULL

VISUAL CONTROL

TPM

SMED

REDUCING INVENTORY

STANDARD WIP

WORK CELL TAKT TIME

VALUE STREAM MAPPING

STANDARDIZEDWORK

“The key to lean is in the thinking and not just in the tools”James WOMACK

5 S

The 5-S Workplace•Sort needed & unneeded items.

Red tag unneeded items.•Put things in proper places,

arrange and label.•Clean up the workplace.

•Standardize the 1st 3 S’s.Document Methods & maintain cleanliness.

•Make 5-S a part of the job.

SORT

SET IN ORDER

SHINE

STANDARDIZE

SUSTAIN

Stick to it! Grade it! Improve it!

5S Program

• Remove unnecessary items.• Clear workplace.• Save space.• Save time for motion.• Standardized procedures.• Organized activities.• Improve safety.• Improve up time.• Team building start point.

• Daily workforce involvement,sustained resource allocation.

• Minimal investment for storagelocations and identification.

• Regular audits required tosustain.

5-S

Benefits Constraints

TAKT TIME• TAKT Time reflects the rate at which customers buy our

products;• Takt time is calculated by dividing the real available time by the

quantity of goods sold each day:

Daily effective minute = TAKT TimeDaily customer demand

• The actual amount of members needed to build a product at a given TAKT TIME:

The sum of the Cycle Time = No. of operators required Divided by the TAKT TIME

TAKT Time benefits

Having a TAKT time affords the ability to do the following:

• Compete in a marketplace where the demand and cost of product is being dictated by the customer.

• Pull the product down the line.• Monitor the production rate at intervals that are much

smaller than the TAKT time (pro-active approach). When issues are found that stop the series of work steps to be completed on time, they can be dealt with in a concise documented manner.

• Build without overtime.• Determine the correct number of production workers

required.• Affords targeted costing (both from labour and product).• Control cost more effectively.

Value Stream Mapping Current State Value Stream

ShippingAssembly 2Assembly 1S. Weld 2S. Weld 1Stamping

Production Control

MRP

Weekly Schedule

Daily Ship Schedule

Production Lead Time = 23.5 daysValue Added Time = 184 secs

State StreetAssembly

Forecast

Daily Order

Daily

MichiganSteel

Forecast

Weekly Order

2 x Week

II I I I I

Value Stream PlanProduct Value PersonFamily Stream Measurable Monthly Schedule inBusiness Objective Goal ChargeObjective 1 2 3 4 5 6 7 8 9

ImproveProfitabilityIn Steering Brackets

V S Manager JimDate 03/02/2003

Product FamilySteering Brackets

Pacemaker *Continuous flow from

weld to assembly Zero WIP John*Kaizen to 168 secs < 168 s/t Dave*Eliminate weld

changeover < 30 sec c/o Sam*Uptime weld #2 100% Mike*Finished goods pull 2 days FG Sue*Materials handler Pull Schedule James

routesStamping*Stamping Pull 1 day inventory Fred

+ pull schedule*Stamping changeover batch size Tim

300/160 piecesc/o < 10 min

Supplier*Pull coils with daily delivery Graham

daily deliveryr < 1.5 days ofcoils at press

Check progress and

stabilise

Future State Value Stream

Production Lead Time = 4.5 daysValue Added Time = 166 secs

Shipping

Production Control

State StreetAssembly

Forecast

Daily Order

Daily

Daily Order

Weld and Assembly CellStamping

MichiganSteel

Forecast

Daily Order

Daily

Ask the key

questions

Value Stream MappingCurrent State

44d55m

738

Steps

Time

Steel

DELTA STEEL

Stamping

GAMMA STAMPING

Warehouse Cross Dock

Wipers

BETA WIPERS

Assembly

Dist. Centre

Cross Dock

ALPHA MOTORS

Amplification

F E D C B A

%

40

30

20

10

0

F E D C B A

Quality & Deliveryppm

2000

1500

1000

500

0

F E C A

%

10

5

0

AssemblyWipersStamping

SteelDist. Centre

16d55m

398

Steps

Time

Amplification

F E D C B A

%

40

30

20

10

0


2000

1500

1000

500

0

F E C A

%

10

5

0

F E D C B A

DELTA STEEL

GAMMA STAMPING BETA WIPERS ALPHA MOTORS

Future State 2Flow and Pull between Plants

Time reduced

from 49 to 20 days

Ideal StateValue Stream Compression

Dist. Centre

3d55m

308

Steps

Time

Amplification

F E D C B A

%

40

30

20

10

0


2000

1500

1000

500

0

F E C A

%

10

5

0

F E D C B A

Steel

EPSILON STEEL

Assembly

ALPHA MOTORSSUPPLIER PARK

WiperCell

StampingCell

Time reduced from 20 to 5

days

WORK CELLS

• Group dissimilar machines in manufacturing cell to produce family of parts

• Work flows in one direction through cell

• One worker tends several machines

• Cycle time adjusted by changing number of workers

12

12 3

4

5

6

7

8 910

11

A BCRaw materials

Cell1 Cell 2 Cell 3

Assembly

1212

11

22

33

44

55

66 77

88

99

1010

1111

A B C Raw materials

Assembly

Original Process Layout

Cellular Layout Solution

WORK CELLS Benefits• Cellular manufacturing achieves the benefits of flow

based manufacturing • This simplifies material flow compared to a traditional

process layout• Ownership and responsibility for a product rests with the

operators of the cell• Shorter Lead Time• Improved Quality - Quicker problem identification• Improved Quality - Less potential rework or scrap• Less Material Handling• Improved Coordination• Reduced Inventory• Departmental conflicts eliminated• Simplified Scheduling• Less Space Required

STANDARDIZED WORK

. There can be no improvement without the basis of standard work.

When normal and abnormal work activities are undifferentiated, waste almost inevitably occurs. Standardized Work, on the other hand, provides an efficient framework in which to perform our jobs.

‘Standardized Work’ is a general phrase which refers to all of the standards (quality, safety, procedural) used in the process of carrying out routine operations.

Standard work provides a consistent routine and a basis for improvement.

Three elements are important: Takt time/Cycle time, Work sequence and Standard Work in Process (SWIP).

Standard Work-in-Process• The MINIMUM amount of Work-In-Process required to allow the

operator continued performance of Standard Work.• By standardizing the WIP, we can find a way to reduce it.• Shortened LEAD Time• Quick capture of quality problems• Unnecessary WIP eliminated• Potentially less staffing in cell• Members do more of VA process• Members become multi-functional

• The aim is one-piece-flow

Reducing Inventory

• Reducing Inventories

• In traditional manufacturing, inventories are seen as assets

• Inventories provide a safety buffer, and result from maximizing machine utilization

• JIT views inventory as waste

• Inventory is evidence of poor design, poor coordination, and poor operation of a manufacturing system

• Inventory Hides Problems

Reducing Inventory

Inventory leveldefects / rework

capacity

set-up

planning labour force

downtime

supply / material flow

KANBAN

•• KanbanKanban card indicates standard quantity of productioncard indicates standard quantity of production•• Derived from twoDerived from two--bin inventory systembin inventory system•• KanbanKanban maintains discipline of pull productionmaintains discipline of pull production•• Production Production kanbankanban authorizes productionauthorizes production•• Withdrawal Withdrawal kanbankanban authorizes movement of goodsauthorizes movement of goods• Used when one-piece flow cannot be achieved

Kanban

• Visual Refill /Replenishment Systems:

• A visual replenishment system is one in which tools such • as cards, lights, grids, squares, flags or other visual means• are used to signal the need for re-supply of materials, parts• or supplies. (“KANBAN” = Signal to control WIP)

Determining Number of Kanbans

No. of Kanbans =No. of Kanbans =average demand during lead time + safety stockaverage demand during lead time + safety stock

container sizecontainer size

NN == dLdL + + SSCCwherewhere

NN = number of = number of kanbanskanbans or containersor containersdd = average demand over some time period= average demand over some time periodLL = lead time to replenish an order= lead time to replenish an orderSS = safety stock= safety stockCC = container size= container size

Line balancing

• Time and labour variables are the basis of line balancing.• They are interrelated and are determining the cost of the

producing a product.• If one person is doing a part, the processes are done in

sequence. By adding persons, the throughput time will be reduce and all the operations are done in the same time. The throughput time is the longest operation time.

• To balance the line, one operator may do 2 faster operation or we may move some steps from the longest operation to other operations.

SMED

• SMED is a process for dramatically and methodically reducing set-up or changeover times.

• Will enable significant reduction of lot sizes.

SMED Principles

• Setup time is the time between parts when the machine is idle and operator is doing a changeover.

• Separate internal setup from external setup• Convert internal setup to external setup• Streamline all aspects of setup• Perform setup activities in parallel or eliminate them.

SMED

• Set-up delays causes:

Searching;Walking;Poor Schedule information;No checklist;Lack of calibration;Missing toolsWaiting;

SMED

Setup Reduction methods:- Parallel setup tasks: ideally, two people can do the job in half the time.- Using quick-attachment devices: one-turn bolt attachment devices, attachments with fixed holders and pins, clamping devices,- Eliminate adjustments: shims with fixed-position holders on machines, accommodating variable-height dies without making adjustments,- Improve external setups: store fixtures, holders, plates, toolsnear machines, prepare setup kits and carts, improve material handling.

TPM

• Small lot production with little inventory requires equipment that:– Doesn’t break down– Doesn’t produce defects– Performs well

• Breakdown maintenance– Repairs to make failed machine operational

• Preventive maintenance– System of periodic inspection & maintenance to keep

machines operating• TPM combines preventive maintenance & total quality concepts• TPM seeks to find the root causes of equipment problems, and

fix them

TPM

Preventive Maintenance ElementsMaintain normal operating conditions• Maintain equipment requirements• Keep equipment and facilities clean and organized• Monitor equipment daily• Schedule preventive maintenance• Manage maintenance information• Use predictive (condition-based) maintenance

Role of Operators– Keep machine clean– Routine lubrication and adjustments– Visual inspection (cracks, oil leaks)– Be aware of unusual sounds, heat, vibration, etc.

Benefits Of Lean Production

1. Reduced inventory

2. Improved quality3. Lower costs4. Reduced space

requirements5. Shorter lead time6. Increased

productivity

7. Greater flexibility8. Better relations with

suppliers9. Simplified scheduling

and control activities10. Increased capacity11. Better use of human

resources12. More product variety

• Item potential improvement• Floor Space 29%• Scrap 46%• QC Rejects 95%• Rework 72% • Work-in-Process 59%• Setup Time 66%• Manpower 32%• Equipment Required 34%• Lead Time 56%• Distance Parts Travel 54%• Cycle Time 18%• Finished Goods Inventory 43%• Down Time 52%

Metrics / Expectations (examples)

(Source: Kaizen Institute)

Lean DL Arsene

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