Introduction to the Lean Enterprise as a Quality Improvement Initiative

1. Introduction to the Lean Enterprise as a Quality Improvement Initiative Presented By: Dr. Joan A. Burtner Industrial and Systems Engineering Mercer University School of Engineering Macon, GA

2. Introduction • Background on the Evolution of Lean • Lean Principles • Highlights of Implementation of Lean Practices at Rheem Manufacturing Co.- Milledgeville, GA ISE 428 Quality Engineering

3. Evolution of Lean Manufacturing • Total Quality Management • Toyota Production System • Six Sigma Process Improvement • Theory of Constraints • Value Stream Mapping • Womack and Jones - Lean Thinking • Rother and Shook - Learning to See ISE 428 Quality Engineering

4. Continuous Improvement Process • Clarify improvement needs (objectives) • Observe operation(s) through your own eyes • Identify problems based on observations • Resolve problems (kaizen) • New ideas become new standard operating procedure • Maintain new methods • Continuously repeat steps 1 through 6 ISE 428 Quality Engineering

5. Wasteful Practices • Waiting • Transportation • Overproduction • Processing • Inventory • Motion • Defective Products ISE 428 Quality Engineering

6. Lean Metrics (Quantitative) • Lead-times • Inventory • Inventory Turns • Work In Process • Workable Floor Space • Efficiency • Cycle Time ISE 428 Quality Engineering

7. Building Blocks of a World Class Company One – Piece Work Flow Kanbans Work Balancing Cellular Layout Quality Improvements Poka Yoke TPM SMED 5’s Visuals Work Teams ISE 428 Quality Engineering

8. Introduction to the 5S’s SEIRI (SIMPLIFY) SIMPLIFY MEANS CLEARLY DISTINGUISHING BETWEEN WHAT IS NEEDED AND KEPT AND WHAT IS UNNEEDED AND THROWN OUT SEITON (STRAIGHTEN) STRAIGHTEN MEANS ORGANIZING THE WAY WE KEEP NECESSARY THINGS, MAKING IT EASIER TO FIND AND USE THEM SEISCO (SCRUB) SCRUB MEANS KEEPING THE FLOORS SWEPT, MACHINES AND FURNITURE CLEAN, AND ALL AREAS NEAT AND TIDY SEIKETSU (STABILIZE) STABILIZE MEANS MAINTAINING AND IMPROVING THE STANDARDS OF THE FIRST THREE S’S SHITSUKE (SUSTAIN) SUSTAIN MEANS ACHIEVING THE DISCIPLINE OR HABIT OF PROPERLY MAINTAINING THE CORRECT 5S PROCEDURES ISE 428 Quality Engineering

9. Typical Improvement Projects • Time studies • Line Balances • Creating work cells • Housekeeping (5 S’s) • Visual Control ISE 428 Quality Engineering

10. General Guidelines for Visual Control at Rheem Work Stations Should Include: • Work instructions (S.O.P.’S) • Quality instructions • Safety reminders • Clearly marked part delivery locations • Tool boards (where needed) • Production boards (where needed) • Layouts ISE 428 Quality Engineering

11. Implementation of Visual Control at Rheem • Spring and Summer 2003 • Kaizen and 5 S All Assembly Lines • Created Zoned Housekeeping Layouts for All Major Production Areas • Designated Part Delivery and Storage Locations • Placed Production and Quality Status Boards • Began Drafting Standard Operating Procedures and Safety Reminders for All Work Stations ISE 428 Quality Engineering

12. Kaizen of an Assembly Line 1 Before After ISE 428 Quality Engineering

13. Kaizen of an Assembly Line 2 Before After ISE 428 Quality Engineering

14. Using Work Teams at Rheem • Cross-functional work teams for solving problems • Composition of Work Teams • Upper management • Supervisors • Co-op Students • Engineers • Assembly Line Workers ISE 428 Quality Engineering

15. CONTINOUS IMPROVEMENT TOOLS FOR BALANCING WORK • Takt Time • Available Daily Work Time • Time Observation • Standard Work Flow Diagrams • Cellular Layout • Work Distribution Sheet ISE 428 Quality Engineering

16. Time Observation • Observe a process or machine • Enter each task component onto a form • Note exceptions or non-repeating tasks • Calculate the average cycle time for each task • Add all average element times to find the cycle time of the total process ISE 428 Quality Engineering

17. Standard Work Flow Diagram • Used to help identify the flow of the operation(s) you are observing • Used as a layout for developing an improved process • An excellent tool to use to develop standard work procedures ISE 428 Quality Engineering

18. Cellular Layouts • The arrangement of manufacturing work cells to allow for a flowing process • With this concept, work can performed without the need for large inventory batches • The parts enter the beginning of the cell as raw materials and exit the cell as completed units ISE 428 Quality Engineering

19. Transition to Lean Six Sigma • Total Quality Management • Toyota Production System • Six Sigma Process Improvement • Theory of Constraints • Value Stream Mapping • Womack and Jones - Lean Thinking • Rother and Shook - Learning to See ISE 428 Quality Engineering

20. Lean Six Sigma • “Lean Six Sigma is a methodology that maximizes shareholder value by achieving the fastest rate of improvement in customer satisfaction, cost, quality, process speed, and invested capital”. • (Lean Six Sigma, Michael George, p. 13) ISE 428 Quality Engineering

21. Acknowlegements • Thanks to Laura Brown for her work on this lean initiative at Rheem and her contribution to the slide presentation. • Thanks also to the other employees (both full-timers and co-op students) at Rheem who contributed to this project. • Finally, thanks to Clyde Ingram for granting permission for Mercer to use Rheem training materials and photos. ISE 428 Quality Engineering