Lean Automation The Next Step for the Lean Enterprise

1. Lean Automation The Next Step for the Lean Enterprise Tom Lawton President ADVENT DESIGN CORPORATION

2. AUTOMATE or NOT TO AUTOMATENeed to lower costs & reduce cycle times?

3. What Do We Do? • Analyze & Evaluate Using Lean Concepts & Techniques • Implement Lean Manufacturing Solutions • Design & implement LEAN AUTOMATION!

4. Lean Automation Concept

5. Lean Manufacturing Fundamental Principle of Lean Manufacturing Any activity or action which does not add value to the product is a form of waste and must be eliminated or minimized.

6. Definition ofValue -Added • Value is added any time the product is physically changed towards what the customer is intending to purchase. • Value is also added when a service is provided for which the customer is willing to pay (i.e. design, engineering, etc.). • If we are not adding value, we are adding cost or waste. 90% of lead time is non-value added!

7. FLOW & PULL • Make the value-creating steps flow • Produce only what is needed • If a process is not completed correctly the first time it does not move down the line for additional work • Eliminate re-work.

8. The EIGHT Wastes • Inventory (more than one piece flow) • Overproduction (more or sooner than needed) • Correction (inspection and rework) • Material Movement • Waiting • Motion • Non-Value Added Processing • Underutilized People

9. Shortening the Production Cycle One of the most noteworthy accomplishments in keeping the price of Ford products low is the gradual shortening of the production cycle. The elapsed time between receipt of raw material and its appearance as finished merchandise in the hands of the dealer bears strongly on the retail prices. The longer an article is in the process of manufacture and the more it is moved about, the greater is its ultimate cost. Henry Ford, 1926

10. Issues Productivity Lead Time Inventory Layout & Material Handling Downtime Quality Symptoms Lots of People Expediting Lots of WIP Congestion, Traffic, Large Batches Equipment not running Scrap, Inspectors When Do You Need Lean?

11. Lean ManufacturingConcepts & Techniques • Value * • Value Stream Map * • Flow: Setup Reduction, Cellular Manufacturing, Batch Size Reduction, Visual Workplace, Layout * • Pull: Kanban Systems, Supply Chain Management, Point of Use* • Perfection: Quality Systems, Total Productive Maintenance, Training * Use for Automation

12. Value Stream The value stream is the set of all the specific actions required to bring a specific product (good or service) through the three critical management tasks of any business: 1. Problem Solving 2. Information Management 3. Transformation

13. Value Stream MapAn Assessment Tool • The value stream map follows the production path from beginning to end and shows a visual representation of every process in the material and information flows • Shows how the shop floor currently operates • Foundation for the future state

14. Value Stream MappingContent • Customer Data (shipment requirements) • Production Processes, Data Boxes on the Processes, & Inventory Triangles • Material Flow (from suppliers and to customers) • Information Flow & Push Arrows • Lead Time Bars and Data

16. Value Stream Map (Current State) Orders Every 2 Weeks Production Control New Jersey Porcelain (Round Stones) Randomly Placed Orders (Various Sizes) Andrea Aromatics (Scented Oils) Alanx (Shaped Stones) Order as Needed Various Customers Average of 6,000 Stones per Day in Various Size Orders (8 to 20 case & 200 to 400 case range mainly) 30 Cans of Oil Every 2 Weeks 59,000 Stones Every 2 Weeks 50,000+ Stones Every 2 Months (via stringer) Bi-Weekly Production Schedule Daily Shipping Orders Daily Shipments Existing Work Cell Soak & Dry Packaging Labeling Cartoning Case Packing Shipping APAI Automatic Stapler Multiple Batch Tanks Ameripack Flow Packager Manual Manual I I I I I I up to 250 stones in WIP 0 0 125 Cans of Oil 20,640 Round Stones 49,000 Shaped Stones 1 Operator 4290 Stones 1 Operator 1/2 Operator 1/2 Operator 90,504 Stones 1 Operator C/T = 25 - 65 min. C/O = 10 min. Rel. = 100% C/T = 1 sec. C/O = 5 min. Rel. = 85% C/T = 3 sec. C/O = 2 min. Rel. = 80% C/T = 2 sec. C/O = N/A Rel. = 100% C/T = 1 sec. C/O = N/A Rel. = 100% 11.6 Days 0.7 Days 15.1 days 27.4 Days Lead Time 65 minutes, 7 seconds Value-Added Time 65 min. 7 seconds

17. Value Stream Map (Future State) Orders Every Week Production Control New Jersey Porcelain (Round Stones) Randomly Placed Orders (Various Sizes) Andrea Aromatics (Scented Oils) Alanx (Shaped Stones) Monthly Order Various Customers Average of 6,000 Stones per Day in Various Size Orders (8 to 20 case & 200 to 400 case range mainly) Bi-Weekly Production Schedule (large orders) 12 to 16 Cans of Oil Once a Week 30,000 Stones Once a Week 25,000 Stones Once a Month (via stringer) Daily Shipping Orders Daily Shipments 4 Cases Existing Work Cell Soak & Dry Packaging Labeling Cartoning Case Packing Shipping APAI Automatic Stapler Multiple Batch Tanks Ameripack Flow Packager Manual Manual I I I I I up to 250 stones in WIP 0 0 75 Cans of Oil 40,000 Round Stones 25,000 Shaped Stones 1 Operator 4290 Stones 1 Operator 1/2 Operator 1/2 Operator 30,000 Stones in a supermarket type arrangement with stocking levels by shape and scent 1 Operator C/T = 25 - 65 min. C/O = 10 min. Rel. = 100% C/T = 1 sec. C/O = 5 min. Rel. = 85% C/T = 3 sec. C/O = 2 min. Rel. = 80% C/T = 2 sec. C/O = N/A Rel. = 100% C/T = 1 sec. C/O = N/A Rel. = 100% Increase Reliability 10.8 Days 0.7 Days 5.0 days 16.5 Days Lead Time 65 minutes, 7 seconds Value-Added Time 65 min. 7 seconds

18. VSM IMPLEMENTAION

19. Set Up Reduction Long Setups result in long runs! • Document the current changeover • Consider a team approach • Analyze the changeover and identify ways to reduce it (Convert internal setup to external) • Implement improvements & monitor results • Standardize the changeover

20. SETUP TIME REDUCTION

21. Visual Work Place A work area which is self-explaining, self-regulating and easy to understand • Visual controls (bins, flow racks, panels) • Organized staging areas • Machine status lights for running, setup, shutdown, need material • Production control boards

22. Cellular Manufacturing Re-arranging production operations to improve flow and to reduce handling and cycle time • Group products into families • Establish the required cycle time • Review the production sequence • Design the cell layout • Adjust work to balance flow

23. Cellular Assembly Layout

24. How Do We Use Lean Techniques for Automation? • Assess the operation using a Value Stream Map (Product families & Production data) • Evaluate the layout • Identify lean improvements & kaizens without automation • Identify lean automation opportunities • Implement lean improvements using VSM plan • Design and implement lean automation • Start the cycle again!

25. Map to Lean Automation

26. The Lean Automation Cycle Assessment (VSM) Recommended Solutions Set Up Layout Cells Visual Continuous Improvement Automation DO IT! Implementation Plan Information Systems

27. Long Cycle Times - Low ProductivityElectric Drill AssemblyThe Challenge • 40 sec. cycle time for 2 parts. Manual Assembly • 3 different assemblies • 12 “machines” (Four tooled for three assemblies) • 24 operators on two shifts • Client wanted one large machine

28. Lean Techniques UsedBefore Automation • Product Family Value Stream Map • Balance Flow & Cycle Time Reduction to Produce Small Batches (Needed 4 sec. cycle time) • Visual Workplace

29. Lean Automation Automated Pin/Carrier Assembly System

30. AFTER Automated Pin/Carrier Assembly SystemThe Results • Each machine runs a product family • 3 semi-automated machines vs 1 BIG ONE! (+$500k savings) • No changeover • 3 sec. cycle time per carrier vs 40 sec. • 3 operators on 1 shift vs 24 • Small batches

31. Long Cycle Times - Low ProductivityBearing AssemblyThe Challenge • Functional layout • Average batch size of 900 bearings • Long set ups of 9 hrs • Large amount of WIP • Long lead times of 4 weeks • 3 shift operation

32. BEFORE Lean Automation

33. Lean Techniques UsedBefore Automation • Product Family Value Stream Map • Set Up Time Reduction (quick changeover chuck) • Cellular Manufacturing & Layout • Balance Flow & Cycle Time Reduction to Produce Small Batches

34. AFTER Cellular Layout

35. Next Step - Lean AutomationAUTOMATIC LOADER/UNLOADER • Automated parts feeding • Decouple machine cycle from operator • Cell cycle time at 1 min. per bearing • Setup time reduced to 2 to 4 hrs • One shift operation • Average batch size of 200

36. AUTOMATIC LOADER/UNLOADER

37. Low Productivity - Complex FlowStainless Dinner WareThe Challenge • Functional layout • Manual packing on 3 shifts • 128 packers • Ergonomic problems • Extensive material staging

38. BEFORE Lean AutomationFunctional Layout with Manual Assembly

39. Lean Techniques UsedBefore Automation • Product Family Value Stream Map • Revised layout & flow • Balance Flow & Cycle Time Reduction to Produce Small Orders • Point of Use Staging • Visual Workplace (organized staging)

40. Recommended Automation Option (Coating with Possible Shrink Bundles) Wrapping Options (1) Bag sealed on three sides (1a) Shrink Wrap Individual (1b) Shrink Wrap in Bundles (1c) Coating (1d) Strip Wrapping (1e) Wrapping Machine (2) Existing Machine (2a) New Bagging Machine (2b) Shrink Wrap Machine (2c) Coating Machine (2d) Strip Wrap Machine (perpendicular to flow) (2e) Strip Wrap Machine (parallel to flow) (2f) Transfer to storage (3) Man. (3a) Auto. (3b) Robot (3c) Storage(4) Existing Tray (4a) Redesigned Tray (4b) Magazine (4c) Reel (4d) Feeding(5) Manual Feeding (5a) Robotic Pick and Place (5b) (Semi) Automated Magazine (5c) Continuous / Tractor Type Feed and Cut (5d) Deck (consumer line only) Bomb Bay Door Coated Pieces End Loading Cartoning Machine (with leaflet dispenser) Deck Insertion (next slide) Coating Removal Labeling Machine Case Packer Palletizer SHIP

42. AFTER Lean AutomationFocusedProduct Family Automation with 59 operators vs 128

43. Low Machine Output - Long Cycle TimesToy Parts Bagging LinesThe Challenge • Lines average 5 to 10 bags per minute • Feeders not movable between lines • Lines operate differently • Operators dedicated to lines. No one wants Line #7 • Large amounts of WIP • Client wanted more feeders & lines

44. Lean Techniques UsedBefore Automation • Product Family Value Stream Map • Balance Flow & Cycle Time Reduction to Produce Small Batches • Visual Workplace

45. Bagging Line Layout

46. After Lean AutomationLine Electrical and Controls Modifications • Average 12 to 24 bags per minute vs 5 to 10 • Feeders interchangeable between lines • All lines have the same control system • Control panels are the same • Operators can run any line • No new feeders required

47. Lean Automation Part 2Rod Orienter for Improved Parts Feeding AFTER BEFORE

48. Benefits of Lean AutomationSummary • Lower cost automation • Simpler implementation & faster acceptance • Greater flexibility for setup & material flow • Better use of floor space

49. Where Do We Go From Here? • Become knowledgeable of Lean Techniques (MEPs) • Design engineers must think differently • Get work force involved: Use of automation kaizens • Question automation assumptions • Implement Lean solutions first…then automate • Establish a cycle of continuous improvement

50. Lean Automation Makes Us All Winners! Reduced lead times Reduced costs Shorter cycle times Smaller batch sizes Reduced inventory Improved quality Greater flexibility