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Lean Manufacturing Overview.pdf

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LEAN MANUFACTURING OVERVIEW
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Antonio Baliarda copyright 2004 e-gas ( Global apparel solutions) Lean Manufacturing OverviewAntonio Baliarda copyright 2004 e-gas ( Global apparel solutions) Team workAntonio Baliarda copyright 2004 e-gas ( Global apparel solutions) Henry Ford Taiichi Ohno Shigeo Shingo Homer Sarasohn Ed Deming Richard Schonberger Kiyoshi Suzaki James Womack 1900 1940 1980 2000 Toyota Production System World Class Manufacturing NUMMI LEAN 1990-The Machine That Changed The World Histoire duLEAN Highland ParkAntonio Baliarda copyright 2004 e-gas ( Global apparel solutions) “The Toyota system is not opposed to the Ford system. Rather, it is a progressive enhancement--a system geared to the Japanese market that mass- produces in small lots with minimum stocks.” Shigeo Shingo NOTABLE QUOTEAntonio Baliarda copyright 2004 e-gas ( Global apparel solutions) Toyota Production System Pull Manufacturing Just-In-Time World Class Manufacturing Lean Manufacturing JIT/TQC/EI/TPM Short Cycle Manufacturing One-Piece-Flow Cellular Manufacturing Demand Flow Manufacturing Stockless Production Focused Flow Manufacturing Agility Value Adding Manufacturing Group Technology Time Based Management Synchronous Flow Manufacturing End-Lining Operations Continuous Flow Manufacturing MANY NAMES, BUT THE SAME CONCEPTAntonio Baliarda copyright 2004 e-gas ( Global apparel solutions) Definitions ? Value - A capability provided to a customer at the right time at an appropriate price, as defined in each case by the customer. Features of the product or service, availability, cost and performance are dimensions of value. ? Waste - Any activity that consumes resources but creates no value (waste).Antonio Baliarda copyright 2004 e-gas ( Global apparel solutions) What is Lean? ?Lean production focuses on eliminating waste in processes (i.e. the waste of work in progress and finished good inventories) ?Lean production is not about eliminating people ?Lean production is about expanding capacity by reducing costs and shortening cycle times between order and ship date ?Lean is about understanding what is important to the customer Antonio Baliarda copyright 2004 e-gas ( Global apparel solutions) Thinking Lean ? Specify value –can only be defined by the ultimate customer ? Identify the value stream –exposes the enormous amounts of waste ? Create flow –reduce batch size and WIP ? Let the customer pull product through the value stream –make only what the customer has ordered ? Seek perfection –continuously improve quality and eliminate waste From Lean Thinking by Womack and JonesAntonio Baliarda copyright 2004 e-gas ( Global apparel solutions) Benefits ?Lean provides tangible benefits ?Reduces costs not just selling price –Reduces delivery time, cycle time, set-up time –Eliminates waste –Seeks continuous improvement ?Improves quality ?Improves customer ratings and perceptions ?Increases overall customer satisfaction ?Improves employee involvement, morale, and company culture ?Helps “transform” manufacturers Antonio Baliarda copyright 2004 e-gas ( Global apparel solutions) ? Value is added any time we physically change our product towards what the customer is buying. ? If we are not adding value, we are adding cost or waste. ? Lean Manufacturing drives the systematic elimination of waste. Value-Added Time : Minutes Time in Plant : Weeks ORDER CASH KEY QUESTION –Are my customers willing to pay for this ???? VALUE ADDEDAntonio Baliarda copyright 2004 e-gas ( Global apparel solutions) ? Overproduction ? Defects ? Non-value added processing ? Waiting ? Underutilized people ? Excess motion ? Transportation ? Excess inventory Typically 95% of Total Lead Time is Non-Value Added!!! Value added 5% Non-value added LEAN = ELIMINATING THE WASTESAntonio Baliarda copyright 2004 e-gas ( Global apparel solutions) Toyota Production System (TPS) ? Quality, Cost, Delivery – Shorten Production Flow by Eliminating Waste ? Just In Time – The Right Part at the Right Time in the Right Amount – Continuous Flow – Pull Systems – Level Production ? Built-In Quality – Error Proofing –PokaYoke – Visual Controls ? Operational Stability – Standardized Work – Robust Products & Processes – Total Productive Maintenance – Supplier Involvement Antonio Baliarda copyright 2004 e-gas ( Global apparel solutions) INVENTORY HIDES PROBLEMS Poor Long Set-ups Plant Layout Scrap Downtime Long Supplier Process Lack of Poor Unlinked Lead-times Imbalances Training Tooling Schedules No Unclear Poor Improper Standardization Specifications Housekeeping Reward System Inventory LevelAntonio Baliarda copyright 2004 e-gas ( Global apparel solutions) REDUCING INVENTORY WITHOUT SOLVING PROBLEMS Poor Long Set-ups Plant Layout Scrap Downtime Long Supplier Process Lack of Poor Unlinked Lead-times Imbalances Training Tooling Schedules No Unclear Poor Improper Standardization Specifications Housekeeping Reward System Inventory LevelAntonio Baliarda copyright 2004 e-gas ( Global apparel solutions) Types of Waste ?Overproduction ?Excess inventory ?Defects ?Non-value added processing ?Waiting ?Underutilized people ?Excess motion ?TransportationAntonio Baliarda copyright 2004 e-gas ( Global apparel solutions) Lean vs. Traditional Manufacturing ?Half the hours of engineering effort ?Half the product development time ?Half the investment in machinery, tools and equipment ?Half the hours of human effort in the factory ?Half the defects in the finished product ?Half the factory space for the same output ?A tenth or less of in-process inventories Source: The Machine that Changed the World, Womack, Jones, and Roos, 1990.Antonio Baliarda copyright 2004 e-gas ( Global apparel solutions) Lean vs. Traditional Manufacturing ?99.9% Customer Schedule Attainment ?Defects of 15 PPM or less ?4-6 Inventory Days of Supply ?92%+ Operational Availability ?Leveled, Sequenced Production ?Order to Customer Use -Hours, not weeks ?Functioning Supplier Partnership ?Strong Production Control FunctionAntonio Baliarda copyright 2004 e-gas ( Global apparel solutions) Barriers to Lean ? Implementing Lean Can Be Difficult Because it is Counterintuitive from a Traditional Paradigm: – Buying multiple small machines rather than one big machine that offers economies of scale. – Shutting down equipment when maximum inventory levels are reached rather than running flat out. – Using standards to continuously improve. ? There is no step-by-step cook book – There are some basic steps but the how-to varies from organization to organization – Requires an assessment of the company in order to map out the strategy ? Company culture plays a big part in the how-toAntonio Baliarda copyright 2004 e-gas ( Global apparel solutions) Implementing Lean ? Gain top Management “Buy In” and Support ? Perform overall company assessment tied to company strategic, operational, and marketing plans ? Develop strategic lean deployment plan ? Integrate customized training with lean to improve specific skill sets, leverage training resources ? Team Building, Communications, Problem Solving, Change Management, Lean Manufacturing Tools ? Conduct “Kaizen blitz” high impact events ? 5S, Manufacturing Cell, Set-Up Reductions, Inventory Reductions, Work Standardization ? Use an enterprise wide approach to help “Transform” a client’s culture and the way they do business. Antonio Baliarda copyright 2004 e-gas ( Global apparel solutions) Progress Toward Lean ? Smaller lot sizes ? Increased capacity / throughput ? Higher inventory turns ? More available floor space ? Improved workplace organization ? Improved quality : reduced scrap / re-work ? Reduced inventories : raw, WIP, FG ? Reduced lead times ? Greater gross margin ? Improved participation & morale Antonio Baliarda copyright 2004 e-gas ( Global apparel solutions) Lean Is A Journey ?The Journey never ends ?Toyota estimates it is only 50% waste-free ?Where can we begin? Where can we improve?Antonio Baliarda copyright 2004 e-gas ( Global apparel solutions) 5S & Visual ControlAntonio Baliarda copyright 2004 e-gas ( Global apparel solutions) 5 Elements of 5S ? Sort ? Straighten ? Shine ? Standardize ? SustainAntonio Baliarda copyright 2004 e-gas ( Global apparel solutions) Why 5S? ?To eliminate the wastes that result from “uncontrolled” processes. ?To gain control on equipment, material & inventory placement and position. ?Apply Control Techniques to Eliminate Erosion of Improvements. ?Standardize Improvements for Maintenance of Critical Process Parameters.Antonio Baliarda copyright 2004 e-gas ( Global apparel solutions) Types of Waste ?Overproduction ?Delays (waiting) ?Transportation ?Process ?Inventories ?Motions ?Defective Products ?Untapped Resources ?Misused ResourcesAntonio Baliarda copyright 2004 e-gas ( Global apparel solutions) Elimination of Waste 5 S Element Waste/ Improvement Item Deliverable Systematic Organization Elimination of finding. Reduction of part selection errors. Reduced Costs Improved Quality Increased Product Options Sorting-Visual Placement Elimination of finding. Elimination of nonconformances. Elimination of motion. Reduction of part selection errors. Reduced Costs Increased Safety Improved Quality Increased Product Options. Scrubbing Clean Increased safety. Preventive maintenance. Increased equipment knowledge. Increased Safety Improved Quality Standardization Control Increased equipment life. Higher morale. Clean environment. Increased visibility of nonconformances. Improved Quality Consistent Delivery Improved Safety Antonio Baliarda copyright 2004 e-gas ( Global apparel solutions) Waste Identification ?What waste can be identified in the following photos?Antonio Baliarda copyright 2004 e-gas ( Global apparel solutions) After 5S ?Clear, shiny aisles ?Color-coded areas ?Slogans & banners ?No work in processAntonio Baliarda copyright 2004 e-gas ( Global apparel solutions) Workplace Observation ?Clearly define target area ?Identify purpose and function of target area ?Develop area map ?Show material, people, equipment flow ?Perform scan diagnostic ?Photograph problem areas ?Develop a project display board (area)Antonio Baliarda copyright 2004 e-gas ( Global apparel solutions) Sort ?When in doubt, move it out ?Prepare red tags ?Attach red tags to unneeded items ?Remove red-tagged items to “dinosaur burial ground” ?Evaluate / disposition of red-tagged itemsAntonio Baliarda copyright 2004 e-gas ( Global apparel solutions) Straighten ? Make it obvious where things belong –Lines ?Divider lines ?Outlines ?Limit lines (height, minimum/maximum) ?Arrows show direction –Labels ?Color coding ?Item location –Signs ?Equipment related information ?Show location, type, quantity, etc.Antonio Baliarda copyright 2004 e-gas ( Global apparel solutions) Shine ?Clean everything, inside and out ?Inspect through cleaning ?Prevent dirt, and contamination from reoccurring ?Results in ?Fewer breakdowns ?Greater safety ?Product quality ?More satisfying work environmentAntonio Baliarda copyright 2004 e-gas ( Global apparel solutions) Standardize ?Establish guidelines for the team 5-S conditions ?Make the standards and 5-S guidelines visual ?Maintain and monitor those conditionsAntonio Baliarda copyright 2004 e-gas ( Global apparel solutions) Sustain Determine the methods your team will use to maintain adherence to the standards ? 5-S concept training ? 5-S communication board ? Before and after photos ? One point lesson ? Visual standards and procedures ? Daily 5-minute 5-S activities ? Weekly 5-S applicationAntonio Baliarda copyright 2004 e-gas ( Global apparel solutions) Visual Factory Implementation ? Develop a map identifying the “access ways”(aisles, entrances, walkways etc.) and the “action” areas. ? Perform any necessary realignment of walkways, aisles, entrances. ? Assign an address to each of the major action areas. ? Mark off the walkways, aisles & entrances from the action areas ? Apply flow-direction arrows to aisles & walkways ? Perform any necessary realignment of action areas. ? Mark-off the inventory locations ? Mark-off equipment/machine locations ? Mark-off storage locations (cabinets, shelves, tables) ? Color-code the floors and respective action areasAntonio Baliarda copyright 2004 e-gas ( Global apparel solutions) KaizenAntonio Baliarda copyright 2004 e-gas ( Global apparel solutions) What is Kaizen? ?Kaizen (Ky’zen) ?“Kai” means “change” ?“zen” means “good (for the better)” ?Gradual, orderly, and continuous improvement ?Ongoing improvement involving everyoneAntonio Baliarda copyright 2004 e-gas ( Global apparel solutions) How to Kaizen ?Identify the customer ?Deming Cycle –Plan –identify what to change and how to do it ?Current state ?Future state ?Implementation plan –Do –execute the improvement –Check –ensure the improvement works –Act –future and ongoing improvements –RepeatAntonio Baliarda copyright 2004 e-gas ( Global apparel solutions) Identify the Customer ? Value added is always determined from the customer’s perspective. ? Who is the customer? ? Every process should be focused on adding value to the customer. ? Anything that does not add value is waste. ? Some non-valued added activity is necessary waste (“NVA-R”) –Regulatory –LegalAntonio Baliarda copyright 2004 e-gas ( Global apparel solutions) Types of Waste ?Overproduction ?Excess inventory ?Defects ?Non-value added processing ?Waiting ?Underutilized people ?Excess motion ?TransportationAntonio Baliarda copyright 2004 e-gas ( Global apparel solutions) Identify the Current State ?Crucial first step in process improvement ?Deep understanding of the existing processes and dependencies ?Identify all the activities currently involved in developing a new product ?Observe the process first hand ?Identify Value Added (VA), Non-Value Added Required (NVA-R), and Non-Value Added (NVA) ?Generally creates more questions than answersAntonio Baliarda copyright 2004 e-gas ( Global apparel solutions) Brainstorm and Analyze ? Kaizen team brainstorming to develop new process ? Post improvement ideas on map or by category –Workflow –Technology –People / Organization –Procedures ? Develop detailed future state map –New workflow –Value Add and Non-Value Add –Cycle times –Identify Kaizen “bursts” (immediate radical change)Antonio Baliarda copyright 2004 e-gas ( Global apparel solutions) Implementation Plan ?Think global / systems optimization ?Maximum impact to process ?S
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