Lean Tools & Topics

1. Lean Tools & Topics Dave Prins Presenter Gary Thomas & Dave Prins Materials

2. Why implement Lean?

3. Why implement Lean? Reduce inventory Eliminate waste Increase throughput / Decrease cycle time

4. House of Lean House of Lean One- Pc Flow Kanban Materials productivity Work Balancing Cells Process productivity Single Minute Total Productive Maximize today Exchange of Dies Maintenance Quality Tools Poka -yoke Seven Wastes Quality 5 S’s 5 Why’s Visual Factory Teams Culture (foundation) Project efforts applied in this area

5. 5 S’s 5 Why’s Visual Factory Teams Culture (foundation) 5 S's Product on outside of file cabinet indicates location within, reducing unnecessary motion Sort Set in Order Shine Standardize Sustain Safety

6. 5 S’s 5 Why’s Visual Factory Teams Culture (foundation) 5 Why's The 5 why's typically refers to the practice of asking, 5 times, why the failure has occurred in order to get to the root cause/causes of the problem. There can be more than one cause to a problem as well. In an organizational context, generally root cause analysis is carried out by a team of persons related to the problem. No special technique is required. 1. How did the bread get burnt? Cooked too long. 2. Why did it cook too long? Followed the recipe. 3. Is the recipe correct? Sometimes works, sometimes not. 4. Why? Temperature of the bread dough. 5. Can you make good bread? Monitor the baking of the bread.

7. 5 S’s 5 Why’s Visual Factory Teams Culture (foundation) A set of practices which makes management of production processes easier by quickly revealing the abnormalities in the process. Visual Controls include; 5S Andon Floor Markings Metric Boards Boundary Samples Kanban Cards Standardized Work Instructions Visual Factory

8. 5 S’s 5 Why’s Visual Factory Teams Culture (foundation) TEAMS Skills - The organization must be broadly educated to apply the right collection of process improvement tools. Many tools are needed to build a house, and all are necessary for the overall effort to succeed. A good saw does not compensate for a missing hammer. Beyond identifying the tools that are required, building the organization toolbox requires a means to deliver education content as needed, as well as the basic capability to learn, master, and apply that content. Structure - Skills are of diminished usefulness without a systematic structure to prioritize and guide their application on a broad scale. Efforts must be focused on the business issues that translate into customer value and waste elimination. Process improvement must cross organization functional boundaries, and can cause functional frictions (e.g. manufacturing vs. engineering), usually because of inappropriate performance metrics. A rigid functional organization can squelch cross-functional improvement efforts that inevitably require trade-offs. In recognition of this, many firms are reorganizing around processes rather than functions. The successful implementation of lean practices requires a Value Stream Manager who owns the value stream across functional boundaries.

9. Environment - The workforce must be motivated and engaged to apply the skills within the structure. Recognition, compensation policies, and the business culture must consistently support team oriented process improvement or it will die. The workforce must understand WHY it is important to improve processes, and feel that they have a meaningful stake in the success of those efforts. A systems perspective is necessary to connect cause and effect and therefore fully understand the WHY of Lean Enterprise thinking.

10. Art “This is “Art”, not a science.” Squash “Art” at every opportunity – replace it with Science Magic only exists in the absence of Understanding “Art” means your don’t understand it or your trying to fool me.

11. Quality Tools Basic Quality Tools ASQ Koalaty Kid http://homepage.risd41.org/koalatykid/ Quality Tools CQE Body of Knowledge www.asq.org/cert/types/cqe/bok.html

12. Advanced Quality Tools (Six Sigma) http://www.asq.org/cert/types/sixsigma/index.html

13. Quality Tools Quality Six Sigma Developed by Motorola. Uses sophisticated tools to characterize complex, data intensive processes, and significantly reduce process variation High Powered Statistical Techniques & DMAIC Define Control “DMAIC” Measure Analyze Improve Free Online Statistics Handbook:http://www.itl.nist.gov/div898/handbook/index.html

14. Quality Tools Poka -yoke Seven Wastes Quality Poka-yoke or Error Proofing A manufacturing technique of preventing errors by designing the manufacturing process, equipment, and tools so that an operation literally cannot be performed incorrectly.

15. Example: Two sets of connectors must be connected Non-Error proofed Connectors 1 & 2 Connectors 3 & 4 Error proofed Connectors 1 & 2 Connectors 3 & 4

16. Quality Tools Poka -yoke Seven Wastes Quality Mistake Proofing A manufacturing technique of preventing errors once made from continuing through the process and to the customer.

17. CORRECTION Repair or Rework MOTION WAITING Any wasted motion to pick up parts or stack parts. Also wasted walking Any non-work time waiting for tools, supplies, parts, etc.. Types of Waste PROCESSING OVERPRODUCTION Providing higher quality than is necessary, extra operations, etc. Producing more than is needed before it is needed INVENTORY CONVEYANCE Maintaining excess inventory of raw matls., parts in process, or finished goods. Wasted effort to transport materials, parts, or finished goods into or out of storage, or between processes. Quality Tools Poka -yoke Seven Wastes Quality Seven Wastes “Muda”

18. Quality Tools Poka -yoke Seven Wastes Quality Value-added, Non-value added Activities

19. Quality Tools Poka -yoke Seven Wastes Quality Value-added, Non-value added Value Added Non Value Added Turning 1.0 Hr. Inventory 42 Days - 1000 Hr. Cut “Dead” inventory to 7 days and get a new VA percentage of 2.2% A 1,100% increase in value adding time? With Zero increase in through put. Polishing 1.0 Hr. Total VA 2.0 Hr. Total NVA 1000 Hr .2% Value Adding

20. Single Minute Total Productive Maximize today Exchange of Dies Maintenance Overall Equipment Effectiveness (OEE)

21. Single Minute Total Productive Maximize today Exchange of Dies Maintenance Overall Equipment Effectiveness (OEE)

22. Maximize today Single Minute Total Productive Exchange of Dies Maintenance Series Reliability .95 == .95 .95 .95 == .95 x .95 = .925 .95 .95 .95 == .95 x .95 x .95 = .8574 .95 .95 .95 .95 == .95 x .95 x .95 x .95 = .8145 Parallel Reliability .95 .95 = 1- (.05 x .05) = .9975 .95 .95 = .999994 .95 .95 = 1- (.05 x .05 x .05) = .9999 .95 .95 .95

23. Single Minute Total Productive Maximize today Exchange of Dies Maintenance S.M.E.D In the preliminary stage, all setup work is combined. There is no distinction between internal and external work. In the second stage, external setup and internal setup are identified and separated. In the third stage, work that was previously included in the internal setup is transferred to external setup. The fourth stage requires relentless and continuous improvement of all work elements within the internal and external setup

24. Single Minute Total Productive Maximize today Exchange of Dies Maintenance S.M.E.D As lean production is dependent upon small lot sizes, small lot sizes are dependent upon quick changeovers. If set-ups or changeovers are lengthy, it is mathematically impossible to run small lots of parts with low inventory because large in-process inventories must be maintained to feed production during changeovers. For example, large stamping dies commonly took hours to change until the development of quick die change methods (Single Minute Exchange of Die, or SMED). Long changeovers necessitate cycle times well below the TAKT time, and hence a buildup of inventory to supply production while the die is being changed.

25. Process productivity Work Balancing Cells Work Balancing Balanced Production - The rate of production must be balanced throughout the system based on the Takt time. TAKT time = Available production time for a period Average customer demand for that period. For example: 2 shift operation has a net production time of 4,200 minutes per week (7 hours per shift after subtracting lunch and break time x 2 x 5 days). Average customer demand per week is 4,500 units Takt time is 4,200/4,500, or 0.93 minutes or 55.8 seconds Take-a-Way: A unit must be produced every 0.93 minutes in order to satisfy demand. The actual production rate is called the Cycle Time. Production cycle time that is lower than the Takt time will result in excess inventory. The goal is to balance all processes to run at this same rate so that there is no in-process inventory accumulation between process stages.

26. Process productivity Work Balancing Cells Work Balancing TAKT

27. Process productivity Work Balancing Cells Cell - Definition An arrangement of people, machines, materials and methods such that processing steps are adjacent and in sequential order so that parts can be processed one at a time (or in some cases in a constant small batch that is maintained through the process sequence). The purpose of a cell is to achieve and maintain efficient continuous flow.

28. Process productivity Work Balancing Cells Combi High Rate/Volume Branched Assembly Auto Conveyance Pod Craft Low Thruput High Takt Specialized Knowledge Skill Based Mfg Little Division of Labor Low Warranty Tough Changeover Straight Line Expandable Dividable High Speed Easy Material Access Work on Both Sides Communication an Issue Quality Closed Loop Auto Product Conveyance Flow or Indexed U Shaped Easy Balance and Control Closed Loop Quality Work Across …..Not Along Harder to Expand/Flex Tool and Part Density L Shaped Easy Material Access Better Communication Not Optimized for Worker Motion

29. One- Pc Flow Materials productivity Kanban Pull System - Definition To produce or process an item only when the customer needs it and has requested it. The customer can be internal or external. Push System - Definition To produce or process an item without any real demand from the customer – usually creates inventory and all other 'wastes'.

30. One- Pc Flow Materials productivity Kanban Just In Time (JIT) - Definition Producing or conveying only the items that are needed by the next process when they are needed and in the quantity needed. Can even be used between facilities or companies.

31. One- Pc Flow Materials productivity Kanban Kanban - Definition A signaling device that gives instruction for production or conveyance of items in a pull system.

32. One- Pc Flow Materials productivity Kanban Production KANBAN A visual signal used to initiate the production process # cards = (average daily demand * (replenishment time + safety stock)) number of pieces in a container

33. One- Pc Flow Materials productivity Kanban Withdrawal KANBAN A visual signal which notifies the transportation department to move a bin of parts from its production location to its consumption destination.

34. One- Pc Flow Materials productivity Kanban Supplier KANBAN A method of signaling replenishment requirements to Suppliers.

35. One- Pc Flow Materials productivity Kanban KANBAN A Japanese term meaning “card signal”. Kanban is the information signal used to indicate the need for material replenishment in a PULL production Example: Part Number Description Supplier Standard Pack Quantity Sores Location Instructions

36. One- Pc Flow Materials productivity Kanban Electronic Kanbans Physical kanban cards are replaced with electronic, bar-code cards. Enterprise Resource Planning Electronic kanbans with the Master Schedule of MRP added. Material Resource Planning An inventory management system driven by a master schedule through an exploded bill of materials.

37. Process productivity One- Pc Flow Kanban Point of Use Rack Component Part Information Part Number Part Name Bar Code S-Location (Stores Location = G12) C-Location (Consumption Location K8-9) Name of Vendor Vendor Part Number

38. Product Mix - Definition Mixed-model production - capability to produce a variety of models, that in fact differ in labor and material content, on the same production line; allows for efficient utilization of resources while providing rapid response to marketplace demands.

39. Kaizen - Definition This is the Japanese word for improvement. Kaizen implies more than improvement in basic production processes. Kaizen represents a philosophy whereby an organization, and the individuals within it, undertake small, incremental, continual improvements of all aspects of organizational life.

40. Kaizen Blitz - Definition Kaizen definition has been Americanized to mean: "Continual Improvement." A closer definition of the Japanese meaning of Kaizen is "to take apart and put back together in a better way." “Blitz.” Blitz is short for blitzkrieg. And blitzkrieg is (b) -"Any sudden overpowering attack." Therefore, a Kaizen Blitz could be defined as 'a sudden overpowering effort to take something apart and put it back together in a better way." What is taken apart is usually a process, system, product, or service.

41. Standard Work Standard Work is the most efficient combination of man, machine, and material. The three elements of standard work are 1) takt time, 2) work sequence, and 3) standard work-in-process. Performing standard work allows for a clear and visible 'standard' operation. Deviation from standard work indicates an abnormality, which is then an opportunity for improvement.

42. Heijunka Smoothing out the production schedule by averaging out both the volume and mix of products. Production leveling allows a consistent workflow, reducing the fluctuation of customer demand with the eventual goal of being able to produce any product any day.

43. Quality At The Source Producing quality when the product is made rather than sorting, inspecting, rejecting and reworking or scraping.

44. Value Stream Mapping - Definition A pencil-and-paper tool used: a) to follow a product or information (or both) activity path from beginning to end and draw a visual representation of every process (value and non-value) in the material and information flows. b) then to design a future state map which has waste removed and creates more flow and c) to end up with a detailed implementation plan for the future state.

45. Current State VSM example

46. Future State VSM example

47. Team Charter First Past Yield Team Charter Problem Statement The first pass yield in test is 55%. Scope ANSI (white) product line. Goal Increase the first pass yield to 99%. 0% increase in standard cost. Resources $50,000 and 10 hours per week from 6 team members. Team leader has free choice in selection of team members. Availability of Team Champion and Facilitator’s time as needed.

48. Time Limit 2 months Team Members Team Facilitator Team Leader Team Champion Reporting Progress report every week at Friday Staff Meeting.

49. The Theory of Constraints “The Goal” Avraham Y. Goldratt “Bottlenecks”

50. Theory of Constrains in Production, Jeff 'SKI' Kinsey http://www.cm-sys.com/ideas/leanvstoc.pdf#search='theory.of.constraints%20presentation'