Principles of Lean Manufacturing with Live Simulation presented by Impact Washington

1. Principles of Lean Manufacturing with Live Simulationpresented by Impact Washington

2. Assisting Washington companies to help them be globally competitive Bottom line improvements Top line growth Strategic development and implementation Impact Washington • Helping to build a strong 21st century manufacturing industry in Washington

3. Course Objectives By the end of this class you will be able to: • Define Lean. • Identify the “Eight Wastes.” • Differentiate between Value-Added and Non-Value-Added activities. • Apply various Lean implementation tools in a simulation setting. • Describe how Lean Principles can impact the success of your organization.

4. Course Agenda • Welcome • Introduction to Lean Manufacturing • Implementing Lean • 5S, Point of Use Storage, Visual Controls, Plant Layout, Quick Changeover, TPM, Batch Reduction, Quality @ Source • Implementing Lean • Pull/Kanban, Cellular Flow, Standardized Work • Implementation • Open Discussion

5. History of Manufacturing People Product Work Environment

6. Cycle Time “One of the most noteworthy accomplishments in keeping the price of Ford products low is the gradual shortening of the production cycle. 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

7. Monday 7:00 PMBoat docks loaded with iron ore and conversion begins Tuesday 10:55 AMOre conversion complete and foundry processes continue Tuesday 12:55 PMCast into cylinder blocks, cooling and cleaning begins Tuesday 5:05 PMFirst machining operation begins, 58 operations in 55 minutes Tuesday 6:00 PMBlock enters assembly Tuesday 7:45 PMMotor assembly complete, shipped to car assembly factory Wednesday 8:00 AMMotor enters car assembly line Wednesday 12:00 PMDealer takes delivery of car and payment received Ore to payment in 41 hours including 12 hours shipping High Velocity Manufacturing The Ford Motor Company, River Rogue Factory, 1926 Peak Year Production 2.1 Million Model “T” Chassis 1923

8. Defining Lean LEAN : the systematic and relentless elimination of waste in all forms resulting in: • Improved quality • Lower costs • Faster delivery GOOD PICK ANY TWO FAST CHEAP Introduction to Lean Manufacturing

9. Definition of Value Added • Value Added • Any activity that increases the market form or function of the product or service. (These are things the customer is willing to pay for.) • Non-Value Added • Any activity that does not add market form or function or is not necessary. (These activities should be eliminated, simplified, reduced, or integrated.)

10. Mass Production Material LEDs Diodes Springs Shipping Receiving Warehouse Warehouse Storage Repair Kitting Testing Ship Value-Added Time : Minutes Time in Plant : Weeks ORDER CASH

11. Lean = Eliminating Waste Non-Value-Added Value-Added • Overproduction • Waiting • Transportation • Non-value-added processing • Excess inventory • Defects • Excess motion • Underutilized people Typically 95% of all lead time is non-value-added.

12. Overproduction Waste • Making more than is required by the next process • Making earlier than is required by the next process • Making faster than is required by the next process • Causes – • Just-in-case logic • Misuse of automation • Long process setup Introduction to Lean Manufacturing

13. Waiting Waste • Idle time created when waiting for…? • Causes – • Unbalanced scheduling / workload • Unplanned maintenance • Long process setup times Introduction to Lean Manufacturing

14. Transportation Waste • Transporting parts and materials around the plant • Causes – • Poor plant layout • Poor understanding of the process flow for production • Large batch sizes, long lead times, and large storage areas Introduction to Lean Manufacturing

15. Non-Value Added Processing Waste • Effort that adds no value to the product or service from the customers’ viewpoint • Causes – • Overproduction • Poor understanding of customer requirements • Lack of communication Introduction to Lean Manufacturing

16. Excess Inventory Waste • Any supply in excess of a one-piece flow through your manufacturing process • Causes – • Just- in-case logic • Poor market forecast • Reward system Introduction to Lean Manufacturing

17. Defect Waste • Inspection and repair of material in inventory • Causes of defects • Weak process control • Inadequate education/training/work instructions • Product design Introduction to Lean Manufacturing

18. Excess Motion Waste • Any movement of people or machines that does not add value to the product or service • Causes – • Inconsistent work methods • Unfavorable facility or cell layout • Poor workplace organization and housekeeping Introduction to Lean Manufacturing

19. Underutilized People Waste • The waste of not using people’s mental, creative, and physical abilities • Causes – • Old ways of thinking, politics, the business culture • Low or no investment in training or development Introduction to Lean Manufacturing

20. Buzz Enterprises Buzz Electronics and BuzzSaw Welcome to Buzz Electronics

21. Round One: Debrief • What were your impressions of Buzz? • What did you think of the processes? • What could be changed? • How does this relate to your company?

22. Value Stream Mapping Lean Building Blocks Lean Culture Continuous Improvement Pull/Kanban Cellular/Flow Standardized Work Batch Reduction Quality at Source Plant Layout Quick Changeover TPM 5S System Point of Use Storage Visual Controls

23. 5S – Workplace Organization A safe, clean, neat, arrangement of the workplace provides a specific location for everything, and eliminates anything not required.

24. 2. Set in Order 1. Sort 3. Shine 5. Sustain 4. Standardize Elements of a 5S Program Implementing Lean: Part I

25. Have you… • …ever had to work in a crowded work area? • Wasted time looking for parts/tools that were misplaced? • Had parts or tools that were not needed? • Wasted time walking to pick up a tool or a part?

26. What is 5S? Organizational behavior….not housekeeping?

27. 5S Sort Self-Discipline Simplify Sweep Standardize

28. What are the benefits of 5S?

29. Clean factories….. Have higher productivity Produces fewer defects Meets deadlines better Safer place to work What the Experts Say

30. Reduced setup Reduced defects Reduced waste Reduced delays Reduced injuries Reduced breakdowns What the Experts Say

31. 5S-Sort Sort Self-Discipline Simplify Sweep Standardize

32. 5S-Sort Separates the necessary from the unnecessary. Remove all items from the workplace not needed for “current” production.

33. Things are tagged as red or yellow. Red means it is out of here. Yellow means I’m not sure. Red Tag Method Red Tag draws attention so problems are not forgotten

34. Is this item needed? Is it needed in the quantity If it is needed, does it need to be located here? Is it unsafe? Is the item obsolete? Questions to Ask

35. 5S-Simplify Sort Simplify Self-Discipline Sweep Standardize

36. A place for everything….and everything in its place Items are arranged so they are easy to use and easy to find Simplify

37. Step #1 - Find the “best” location. Wasted motion to use and replace tools should be minimized Step #2 - Make it obvious when things are out of place Simplify Yellow Tagged Items Need to Find a Home

38. Divider lines Labels-Color Coding Is Effective Shadow boards Simplify-Ways to Make Out of Place Things Obvious

39. Sort Self-Discipline Simplify Sweep Standardize

40. Constantly reviewing area to ensure the area is kept clean. Sweep

41. 5S Sort Self-Discipline Simplify Standardize Sweep

42. Create guidelines for maintaining the improved conditions Standardize

43. Step #1-Create guidelines for conditions of Sort, Set, and Shine. What might these guidelines look like? Standardize

44. Step #2-Create standards. When and how to perform cleaning tasks. What are ways to ensure the standards are followed. Standardize

45. Step #3-Make the standard guidelines visual. Why? What are some ways? Standardize

46. Step #4-Maintain and monitor the 5S conditions What is the best way to make sure this happens Standardize

47. Sort Self-Discipline Simplify Sweep Standardize

48. Making 5S a habit Requires Support from management Ongoing, company wide communication Making it part of daily work Total employee involvement Self-Discipline

50. Before After