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Lean sytems lecture ayub jake salik 2012
 

Lean sytems lecture ayub jake salik 2012

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    Lean sytems lecture ayub jake salik 2012 Lean sytems lecture ayub jake salik 2012 Presentation Transcript

    • U. Albany MBA Program 11.15.12 Ayub “Jake” Salik BE, MBA
    • OBJECTIVES• Define lean, explain its goal, key principles and techniques• Gain understanding of some lean techniques to improving the performance effectiveness of people and machines• Industrial application of Lean manufacturing• Share lessons from a Lean journey
    •  Guest Speaker: Ayub Jake Salik ◦ Who am I & What I do ? Lean Background and Basics ◦ Definition of Lean ◦ History of Lean ◦ Value and Waste Lean Drivers and Tools ◦ What Drives Lean Transformation? ◦ What Tools Are Used? Class Activity Making It Happen ◦ Requirements for Success ◦ Industry Examples Case Study Q&A 3
    •  Guest Speaker: Ayub Jake Salik ◦ Who am I & What I do ? Lean Background and Basics ◦ Definition of Lean ◦ History of Lean ◦ Value and Waste Lean Drivers and Tools ◦ What Drives Lean Transformation? ◦ What Tools Are Used? Class Activity Making It Happen ◦ Requirements for Success ◦ Industry Examples Case Study Q&A 4
    • Education: University at Albany, New York. ◦ Post - MBA, (Change) Management (Second Graduate Elective Track Certificate) - 2011 University at Albany, New York. ◦ MBA (Information Technology Management) 2008  2008 Graduate Academic Achievement Award Recipient. (Evening MBA) University of Engineering and Technology, Lahore, Pakistan. ◦ B. Sc. Petroleum Engineering 1993 (Gold Medalist) Government College University, Lahore, Pakistan  F. Sc. University of Cambridge , UK  GCSE
    • Current Positions Strategic Planning / Project Manager (CAPEX) at Callanan Industries Inc. NY Self Employed Consultant – Glass Industry – Client: Strategic Materials Inc. TXPast Positions: Change Agent – Oldcastle Materials Group (OMG) Performance System (OPS) - Operations at Oldcastle Materials Project Manager at Callanan Industries Inc. ( A Oldcastle Materials Company / Owned by CRH plc, Ireland) Corporate Quality Control Manager - Strategic Materials Inc. – US Region. Plant Manager – Strategic Materials Inc , Albany NY. Assistant Distribution Engineer - Sui Northern Gas Pipelines Limited - Pakistan Reservoir Engineer - Petcon Fekete Pvt. Limited (Branch of Fekete Associates Inc.- Canada) Management Intern - Bank of America , Union bank. Engineering Intern - Schlumberger Flopetrol, Mari Gas Company .
    • My Lean Experience 3 + MONTHS LEAN SYSTEM PROJECTS 2- 5 DAYS LEAN SYSTEM WORKSHOPS / TRAININGS / LEAN BOOT CAMPS 7
    •  Guest Speaker: Ayub Jake Salik ◦ Who am I & What I do ? Lean Background and Basics ◦ Definition of Lean ◦ History of Lean ◦ Value and Waste Lean Drivers and Tools ◦ What Drives Lean Transformation? ◦ What Tools Are Used? Class Activity Making It Happen ◦ Requirements for Success ◦ Industry Examples Case Study Q&A 10
    • What isyour definition of a Lean System? 11
    •  “Lean” system focus is to minimize sources of loss: variability, waste, inefficiencies & process inflexibility Non- Lean provides a way to do more and more with less and less while coming Value-Added closer and closer to providing Activities customers with exactly what they want 12
    •  Lean was born in the U.S.A. ◦ Time & Motion Studies (1900s) ◦ Ford production system established (1913) Lean was first practiced in Japan ◦ Dr. Deming’s management system is studied (1950s) ◦ Toyota Production System (revealed in 1973) ◦ Software – and more 13
    •  Lean has spread worldwide ◦ World-class Lean performers develop in the U.S.A. (1990s) ◦ Lean increasingly integrated into corporate strategies ◦ Manufacturing ◦ Education ◦ Banking /Finance ◦ Health ◦ Restaurant ◦ Telemarketing ◦ Retail 14
    •  Streamlining processes Elimination of Muda (waste) Produce quality product Cost reduction Use technology 15
    •  A measurement of the worth of a product, or service, by a customer based on it’s usefulness in satisfying a customer need An activity, process or operation that changes the product from one form to another in order to get it closer to the customer’s specifications It is something that the customer is willing to pay for 16
    •  Any activity that adds costs or time but does not add value Consuming more resources (time, money, space, etc.) than are necessary to produce the goods, or services, that the customer wants 17
    • Types Of WasteOver production People’s skills 18
    •  1. Overproduction: To produce sooner faster or in greater quantities then required demand 2. Inventory: Raw material , WIP or finished product that has tied capital to it. 3. Wait: Equipment, part or people that wait for a work cycle to be completed. 4. Motion: Unnecessary movement of any resources in a process (people, part or machine) 5. Transportation: Any unnecessary movement of product, part or people between or within a process. 6. Rework: Performing work or service again due to defects. 7. Over processing: Processing beyond customer requirement. 8. People’s skill: Underutilizing people skills - not taking advantage of the available intellect.
    • • Poor layout.• Long setup time.• Poor workplace organization.• Poor equipment maintenance.• Inadequate training. Any of• Use of improper methods. these• Statistically incapable processes.• Not following procedures. looks• Instructions or information unclear. familiar?• Poor planning.• Supplier quality problems.• Inaccurate gauges.• Poor work environment (for example, light,heat, humidity, cleanliness and clutter).
    •  Guest Speaker: Ayub Jake Salik ◦ Who am I & What I do ? Lean Background and Basics ◦ Definition of Lean ◦ History of Lean ◦ Value and Waste Lean Drivers and Tools ◦ What Drives Lean Transformation? ◦ What Tools Are Used? Class Activity Making It Happen ◦ Requirements for Success ◦ Industry Examples Case Study Q&A 22
    •  Pressure to improve operational performance Competitive advantage in price and service Customers demanding shorter order cycle time Customers demanding reduced prices Corporate objective to reduce inventory Pressure to improve return-on-invested-capital Improve product quality 23
    • Business systems Performance indicators PeopleBusiness Quality flows Process Cost Material Waste Delivery Information Variability Inflexibility Sources of loss 24
    •  A Value Stream Map (VSM) is an end-to-end view of all activities in a product or service flow Enables visualization of any process Identifies waste in each step of the process This is simply a drawing that makes the flow of material and information visible. 26
    • 1. Define customer value2. Create a “current state” map • “Walk” the process to identify tasks and flows • Gather data on resources, time, quality for each3. Analyze map to determine opportunities for improvement • Identify value-added and waste • Brainstorm actions to eliminate waste and add value4. Create “future-state” map to visualize the desired state5. Create action plans to move towards future-state
    •  Helps visualize interactions and flows Shows linkages between information and product flows Provides a common language for talking about a process • Helps to identify:  The constraint(s) - any resource whose capacity is less than customer demand;  Wastes as well as their sources
    •  Line Balancing: balancing capability with demand Identifies areas of excess capacity and bottlenecks 3.5 3 2.5 2 1.5 1 0.5 0 Loading Trucking Stage 1 Stage 2 Stage 3 Final Shipping Capacity Rate (K tons/hour) Demand Rate (K tons/hour) 30
    • Ask “why?” until you get to the bottom of the problem1. Why has the 2. Why did the machine 3. Why wasn’t overload stopped? there enough 4. Why doesn’t the fuse blow? oil? oil pump work properly? 5. Why is the strainer blocked? The overload fuse has blown There was not enough oil on The oil pump the shaft doesn’t pump Because the oil strainer is blocked No preventive enough oil because with metal filings maintenance or shaft was worn weekly cleaning performed • Fixing the root cause may take more time in the short term, but the investment will pay off quickly as the problem never recurs
    •  OEE tells how effectively a piece of equipment is utilized, and reveals opportunities to reduce waste. 32
    •  Actual time to complete one cycle of an operation; or to complete a function, job, or task from start to finish Can be used to establish the capacity of a selected piece of equipment in a specific set of circumstances 33
    •  A quantitative measure of how one worker conducts aDefinition job over a period of time  Each wrench time is for one person over a period of timeHow it  Actions are placed into three categories by analyst:works ◦ Value-added ◦ Incidental ◦ WasteHow to  Shadow one worker for an extended period of timeconduct  Categorize his actions into one of the three categories  Analyze each category as a percentage of total time 34
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    •  Focuses on effective workplace organization and standardization that allows people to easily spot variation from standard operating conditions • Sort o Keep only what you need in your area • Stabilize (Set in order) o A place for everything and everything on its place • Shine o Regular cleaning and maintenance • Standardize o Develop system (rules to maintain what has been done) • Sustain o Maintaining what has been accomplished 36
    •  Guest Speaker: Ayub Jake Salik ◦ Who am I & What I do ? Lean Background and Basics ◦ Definition of Lean ◦ History of Lean ◦ Value and Waste Lean Drivers and Tools ◦ What Drives Lean Transformation? ◦ What Tools Are Used? Class Activity Making It Happen ◦ Requirements for Success ◦ Industry Examples Case Study Q&A 37
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    •  Create a lean culture Map the value stream. Improve organization of the work environment. Implement appropriate Lean techniques and pilot Lean approaches. Prove results and look for new opportunities. Balance long-term strategy and short-term results. Go to the next level ……..
    •  Top Management Commitment Significant Culture Change Business Disruption Mitigation Customer Delivery Performance Maintenance 45
    • Product ReturnsInformation Inquiries Customer Complaints 46
    •  Daily Operations ◦ Line Balancing Decision-Making ◦ Credit Processing 47
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    •  Boeing Everett ◦ Eliminated the use of 350 cubic feet of cardboard and bubble wrap packing material per 747 wing panel set ◦ Reduced chemical usage per airplane by 11.6 percent General Electric Peebles, Ohio Facility ◦ Found ways to reduce its greenhouse gas emissions by implementing Lean methods ◦ Reduced fuel consumption for GE90 engine testing from 20,000 gallons to 10,000 gallons. General Motors ◦ Kanban Implementation:  Saved 17 tons per year in air emissions  Eliminated 258 tons per year of solid waste Apollo Hardwoods Company ◦ Uses fewer trees and less energy to produce the same amount of product Baxter Healthcare Corporation ◦ Using the VSMs, the team developed an implementation plan that will save 170,000 gallons of water per day and over $17,000 over three months Source: www.epa.gov 49
    •  Guest Speaker: Ayub Jake Salik ◦ Who am I & What I do ? Lean Background and Basics ◦ Definition of Lean ◦ History of Lean ◦ Value and Waste Lean Drivers and Tools ◦ What Drives Lean Transformation? ◦ What Tools Are Used? Class Activity Making It Happen ◦ Requirements for Success ◦ Industry Examples Case Study Q&A 50
    •  Lean Background and Basics ◦ Definition of Lean ◦ History of Lean ◦ Value and Waste Lean Drivers and Tools ◦ What Drives Lean Transformation? ◦ What Tools Are Used? Class Activity Making It Happen ◦ Requirements for Success ◦ Industry Examples Case Study Lean Transformation 51