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IT-465

IT-465. Lean Manufacturing Introduction. Introductions. Name Current and past work experience Background in lean / continuous improvement activities Expectations. Lean Implementation and Book Review. Foundation of implementation chapters Week 1 Proof of the need for change – Chapter 1

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IT-465

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  1. IT-465 Lean Manufacturing Introduction

  2. Introductions • Name • Current and past work experience • Background in lean / continuous improvement activities • Expectations

  3. Lean Implementation and Book Review Foundation of implementation chapters • Week 1 • Proof of the need for change – Chapter 1 • Top management vision, leadership, communication and commitment – Chapter 2 • Employee empowerment – Chapter 2 • Planning and implementation – Chapter 3 • 5S workplace organization – Chapter 4 • Week 2 • Development of facility-wide teamwork – Chapter 5

  4. Lean Implementation and Book Review Support of implementation chapters • Week 2 • Total Productive Maintenance TPM – Chapter 6 • Manufacturing cells – Chapter 7 • Week 3 • Setup reduction – Chapter 8 • Inventory kanbans – Chapter 9 • Kaizen – Chapter 10

  5. Lean Introduction • Define Lean • Discuss the origins of Lean • Learn why Lean is important in manufacturing and service industries

  6. Lean Definition • How do you define lean? A systematic approach to identifying and eliminating waste through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection. -The Machine That Changed the World

  7. An approach to continuous improvement that shortens the timeline between the customer order and the shipment by eliminating waste. Lean production systems optimize the value stream to provide customers “what they want, when they want it” at the lowest total cost and at Six Sigma delivered quality levels. What is Lean? Machining and Fabricating Suppliers Raw Material: Bar Stock Casting OEM Customer

  8. Anything that absorbs resources (manpower, equipment, time, floor space, etc.)without adding value to the product. Eight Types of Waste Defects Overproduction Waiting Non-utilized resources Transportation Inventory Motion Extra Processing Our Objective: What is Waste? Maximize Value Added Activity Minimize Non-Value Added Activity

  9. Another Definition of Lean • Lean “Tool Box” • Spaghetti charts • Hoshin planning • Value Stream Mapping • 5S • Poka-yoke • Total Productive Maintenance (TPM) • Kaizen • Quick change-over/SMED • Pull systems/ supermarket • Standardized work • Cellular manufacturing • Theory of constraints • Barriers to implementation • Quick response manufacturing Culture

  10. The Lean Enterprise Principles Lean Production Workplace safety, order, cleanliness Flow and Pull Production Six Sigma Quality Methods Empowered Teams Visual Management Pursuit of Perfection The workplace is safe, orderly, and very clean Products are built “Just In Time,” to customer rate based demand Member teams are empowered to make key decisions Visual Management to track performance and open the company to all people There is a relentless pursuit of perfection Six Sigma Quality is built into the product and the process

  11. Lean Enterprise • Encompasses the entire production system, beginning with the customer. • Includes all company departments: sales, final assembly, product or process design, all tiers of the supply chain • Any true lean system is highly dependent on the demands of its customers and the reliability of its suppliers. • No implementation of lean manufacturing can reach its full potential without including the entire enterprise in its planning.

  12. Lean Enterprise Basics • The workplace is safe, orderly, and clean • No product is made or process started until the next customer ‘downstream’ requires it • Quality is designed into the product and process, not inspected in • Employees are an integral part of the business enterprise, not extensions of machines; member empowerment is essential • Performance and progress are readily apparent • There is a relentless commitment to banishing waste and striving for perfection

  13. Lean in Manufacturing • The systematic identification and elimination of waste • The touted benefits of lean production systems include: • lower production costs • fewer personnel • quicker product development • higher quality • higher profitability • greater system flexibility. • Mass production is recognized as the production system of the 20th century, lean production is viewed as the production system of the 21st century. • Japanese terms are used in defining lean principles in order to convey broad concepts with iconic (representative) terminology. • Use of these terms can have a negative effect, especially if the culture of a particular organization is predisposed against all things non-American.

  14. Lean in Service Operation Are lean techniques applicable in a service-oriented industry or office environment? • Every system is just a series of steps to create a process • Every system contains waste • either producing a product or providing a service, there are elements which are considered waste. The techniques for analyzing systems, identifying and reducing waste, and focusing on the customer are applicable in any system and in any industry.

  15. The 5 step process

  16. Identify Value Value is defined by the customer. • The customer wants specific products, with specific capabilities, at specific prices. • Methods must be developed to communicate with customers, to get closer to them, and to find out what they want. • Once value is determined, a firm must go back again and again to determine if they really have the right answers. • In lean thinking, the target cost is the mixture of the current selling prices by competitors and the examination of and the elimination of muda (waste) through lean methods.

  17. Map the Value Stream • The value stream identifies all of the company’s activities, both value added and non-value added from the supply of a product to its ultimate customer.

  18. Create Flow A steady, continuous stream, with no wasted motions, no batches, and no WIP. • Traditional mass production is often accomplished by the batch technique. • The objective is to produce many units of a specific part at a given time, in order to maintain the production efficiency of the machines and the overall efficiency of the departments. • The lean effort requires the conversion of a batch process to a continuous flow process.

  19. Establish Pull Instead of creating product in response to an estimated sales forecast, the plant manufactures product as the customer requires it. • The receipt of a customer order initiates activities. • Each operation produces parts as needed through a signal from downstream. • There is a minimal amount of WIP in the process stream. • This arrangement enables flow through the plant, using the principles of lean thinking.

  20. Seek Perfection The pursuit of the first four principles of lean thinking allows the firm to move toward perfection. • Solving customer value problems, working the value stream, converting to flow, and making pull occur, all help eliminate muda. • As the process continues, more muda is eliminated, and perfection seems possible. • It may take years to apply lean thinking principles in a company, and even more time to apply lean thinking in the entire value chain.

  21. Measuring Lean • Inventory Turns are the ultimate measure of Lean* • A balanced QDRC scorecard is critical • Lead Time, First Pass Yield, Inventory, ROIA, COGS, On-time delivery You’re Lean when you deliver what the customer wants, when they want it, with zero waste.

  22. THE VISION VARIATION LEAD TIMES INVENTORY Lean Enterprise $$ $$ THE STRATEGY $ $ ATTACK WASTE (COST) COST $$ THE TOOLS $$ Woodward AES Lean Enterprise QUALITY ON TIME DELIVERY PROFITS Lean Enterprise Workplace Six Sigma Workplace Six Sigma Flow and Pull Empowered Visual Pursuit of Flow and Pull Empowered Visual Pursuit of safety, order, Quality safety, order, Quality Production Teams Management Perfection Production Teams Management Perfection cleanliness Methods cleanliness Methods Bottom Line: It’s about being the BEST.

  23. History of Lean Production System

  24. History of Lean Production System • A Lean Focus: Continuous elimination of waste driven by customer satisfaction • Customer Satisfaction: • Meeting (or exceeding) customer expectations for the cost, quality, delivery, and suitability of products and services provided • “Delighting the customer” means providing the (benchmarked) best quality, service, and delivery – at a fair market price.

  25. Kano Model Kano Model Delight Performance "Delighter" Degree of Customer Satisfaction Neutral "Basic" The Kano model relates three factors to their degree of implementation or level of implementation, as shown in the diagram. 1) Basic ("must be") factors 2) Performance ("more is better") factors 3) Delighter ("excitement") factors. The degree of customer satisfaction ranges from disgust, through neutrality, to delight. Dissatisfied Absent Fulfilled Presence of Characteristics

  26. Customer Satisfaction • Conventional wisdom says satisfying customers costs more • The customer wants specific products, with specific capabilities, at specific prices - value

  27. Vacation Activity 27

  28. Who is the Customer? What value do you provide them? 28

  29. Value • Value-added (VA) • As perceived by the customer • Defined as…Tasksperformed during the production of a product or service that increases the value to the customer • Business-value-added (BVA) • It adds no value but is required by the process • Type I muda • Non-value added (NVA) • It adds no value and can be eliminated • Type II muda

  30. Adding Value • Value is defined by the customer • Anything the customer is willing to pay for • Must satisfy all three of the following: • Changes the shape or form of the process or product • The customer cares about it • It’s done right the first time • The Paradox • We add value by reducing work. • Waste elimination increases customer satisfaction while at the same time reduces costs to produce goods and services On average between 2-5% of the lead time to manufacture a product is value added

  31. Lean Operating Concepts • Developed and refined by the Japanese • “The Toyota Production System” (TPS) and later in the USA as “Lean” • “Lean” was introduced to the world in the book The Machine that changed the world • Based on the works of TaiichiOhno, Taguchi, Shigeo Shingo, Deming, Juran, and others. • The fathers of TQM, Lean, and Six Sigma have many common sources with modern Lean approaches

  32. Prominent Figures of Lean • Become familiar with the important figures in the history of Lean and Six Sigma

  33. Frederick W. Taylor • Wrote Principles of Scientific Management • Divided work into component parts • Was the foremost efficiency expert of his day • Applied scientific methods to maximize output

  34. Henry Ford • The “Father of Lean” • The “Father of mass production” • Founded Ford Motor Company • Brought affordable transportation to the masses • Used time and motion studies to develop the assembly line • A moving assembly line reduces operator motion and reduces lead time • Advocated waste reduction

  35. Sakichi Toyoda • Known as a hands-on inventor • Initiated the Toyota Motor Company (TMC) • Noticed that if there was a problem in production, it was produced over and over, creating a lot of waste • Developed the jidoka concept • Developed the concept of Poka-yoke “mistake proofing”

  36. Kiriichi Toyoda • Sakichi’s son • Continued the work of his father • Studied Ford – Noticed that too much material created delays • Created concept of “Just-In-Time” – Producing the right part in the right place at the right time • Promoted mistake proofing concepts • Became president of Toyota Motor Company

  37. TaiichiOhno • V.P. of Engineering at Toyota • Founder of Toyota Production System (TPS) • Believed in creating a profound image for people to grasp • Challenged employees by telling them what to do, but not how to do it.

  38. Shigeo Shingo • Worked at Toyota with TaiichiOhno • Perfected the art of Single Minute Exchange of Dies (SMED) • Promoted TPS principles and setup reduction • Helped to create material replenishment based on US supermarket concepts – kanban “feed me next” • Spread Lean principles around the world

  39. Dr. William Edwards Deming • Invited by Japan after WWII to assist with quality issues • Developed Plan-Do-Check-Act (PDCA) approach to defect reduction • Change agent for Japan’s economy • Honored by JUSE with the “Deming prize”

  40. Lean Thinking • James Womack • founder and senior advisor to the Lean Enterprise Institute • Research director of MIT’s International Motor Vehicle Program • Coined the term “lean production” to describe Toyota’s business system • Daniel Jones • Founder and Chairman of the Lean Enterprise Academy in the U.K Co-authors of major lean thinking books • The Machine That Changed the World • Lean thinking

  41. Lean vs. Six Sigma

  42. Yield • The percentage of parts from a process that are free of defects. • It is also defined as the percentage of met commitments (total of defect free events) over the total number of opportunities.

  43. A B C Y = 90% Y = 90% Y = 90% Rolled Throughput Yield Process 1 A B C PARTS IN PARTS OUT 100 100 100 100 Y = 100% Y = 100% Y = 100% THE TOTAL PROCESS YIELD= 1*1*1= 1 or 100% Process 2 PARTS IN PARTS OUT 100 90 81 73 THE TOTAL PROCESS YIELD= 0.9*0.9*0.9= 0.73 or 73%

  44. Class Exercise: FPY / RTY • Each team will be handed 20 cards. • Each team will have three operators, each of whom will drop one card at a time onto a target area. • The method of drop will be to hold the card straight out at arms length (while standing upright) over the target area or not. Only those cards that fall completely within the target area may move on. • The goal is to deliver 20 completed products or units to the customer. • Metrics- • # of good units per station (A) • # of cards used per station (B) • Total time of exercise (C) • Total # of defects (D) Start Station 1 Station 2 Station 3 Customer

  45. Class Exercise cont… A = # of good units B = # of cards A1= B1= A2= B2= A3= B3= FPY: Y1 = A1/B1 = Y2 = A2/B2 = Y3 = A3/B3 = RTY = Y1 * Y2 * Y3 Total Cost = ($10 * D) + ($2 *[B1+B2+B3])= Average cost per unit = Total cost / 20 = Average cycle time = C / 20 =

  46. RTY chart a.k.a. LeanSigma

  47. Definition of a Process (SIPOC) I P O Inputs Process Output (Sources of Variability) (Measures of Performance) Manpower Process (Activity) Perform a service Customer Supplier Material Machine Produce a product Measurement A blending of inputs to achieve the desired outputs Any sequence of events that can be described with a SIPOC can be improved with DMAIC Methods Complete a task Mother Nature

  48. Value Stream Mapping

  49. Eight Types of Waste “Downtime” • Defects • Overproduction • Waiting • Non-utilized talent • Transportation • Inventory • Motion • Extra processing The 8 types of waste take up 95-98% of all lead time.

  50. Defects Any part not made, or service rendered, to the customer’s specifications the first time. • Causes • Lack of process controls • Poor quality of incoming materials • Inadequate operator training • Poor work instructions Nonconforming material NCR #____________

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