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  • If you have already spoke to these cells in explaining the circle chart, just skip past them and tell your audience that you spoke to this on the previous chart and this is for their reference.
  • This cell depicts a pictorial view of the process to achieve a Lean Enterprise. Note that the process repeats itself - Lean is a never ending process Identify value - Ask: Is this something for which the customer would be willing to pay? or Does the activity change the form, fit, or function of the product or service? Value stream - Determine the set of all actions required to bring a product/service into the hands of the customer -- order to delivery, cradle to grave, design concept to launcht. Actions fall into 3 categories. Value-activity The activity does provide value to the customer Non-value added activity that cannot be avoided due to uncontrollable constraints Non-value added activity that can be eliminated (Studies have shown) Production typically has about 5-10% of total processing time that adds value Business Processes typically have about 1 to 0.5% value added time Flow - is the progressive achievement of tasks along the value stream with minimal queues, no stoppages, scrap, or backflows Pull - No one upstream should produce a product or service until the downstream customer asks for it. Material or information in only presented when needed and requested Perfection - Strive for perfection, not just to get ahead of your current competition.
  • This cell depicts the 7 types of waste as defined by Taichi Ohno of Toyota along with techniques to eliminate waste. Examples: Waiting: Late delivery of info or product; product or information sitting in a queue waiting for the next step Unnecessary motion: Data sent to wrong person, redundant activities Processing: Too many design changes, Excessive custom formatting (AOP), Unnecessary serial production Inventory: Preparing/receiving reports that are not needed, Stock-piling of parts or product; building ahead of customer demands Moving items: Just because you are busy getting or moving something doesn’t mean that you are performing value-added work. Making too much: unnecessary email traffic;WIP build-up; reports that are no longer useful Fixing defects: The farther along in a process that defects are found, the more expensive it is to fix them. Business processes also have a cost of poor quality, though it is rarely measured.
  • Again, some examples of poor leveling of work to Takt Time. The bottom example, tries to depict a situation in which one out of the four original workers (25%) could be removed entirely if they can eliminate 22 sec of non-value added activity. When leveling a work cell in the “real” world (since it is very difficult to get stations perfectly balanced), it is a good idea to try and set it up so that you have a “downward sloping curve”; ie worker A’s cycle time may be 100 sec, worker B’s cycle time may be 98 sec, worker C’s cycle time may be 97 sec, and so on. This gives the cell a natural pull system which is more easily sustained.
  • Compare and contrast a stream with its eddies and pools where water may sit and stagnate or run in the opposite direction of the current vs. a water pipe which has fast flowing water and no chance for stagnation. Examples: business process - Software Control Library removed 10 queues to help increase flow (should have gotten into leveling) manufacturing - Manchester post-coat (prior to workshop) didn’t know when you’d get a product thru unless it was hand carried (expedited). Set up with leveled work stations and standard WIP to reduce cycle time and establish a predictable flow of 17 hrs.
  • MRP is a push system. The required amount is released based on a schedule not according to need A pull system replenishes need when required by the next operation
  • Top scenario is a push system: feast and famine for the operators, don’t know when you can get anything out, etc. Bottom scenario is the pull system
  • We need to provide the employees with the most efficient way to perform the task that meets our safety requirements in areas such as ergonomics As turnover occurs the process is documented so there is no loss in process technique, quality efficiency etc. The documented process yields certain measurable performance factors that are a baseline for future reference In providing the most efficient way to produce the product in terms of quality, the probability of error is reduced which increases the yield to the customer
  • Design forms and databases with error proofing techniques in mind Examples: 1. Expense Reports designed a new form for handing in expense reports. All reports must be submitted in a special green envelop (eliminates sorting). This envelop also has a checklist on the front that must be filled out before the expense report will be accepted. (Eliminated almost all the errors for missing data that the checklist asks about) 2. Environmental Effects Engineering implemented a Design Capture Worksheet that requires all bidding activity to define a better scope of the testing required, and reminds design engineers of the often forgotten information required when performing qualification testing. (Eliminating unnecessary delays in bidding and makes sure that all the details are captured in the bid)
  • The earlier you catch a mistake the less costly it is. Ask the audience how they treat errors in the products they buy. Fix the errors at the source. Better yet find ways to error proof.
  • The idea behind this cell is to instigate a second set of eyes for detecting errors, but not relying on end of the line inspection. Each step in the process has the responsibility to check the most common problems from the process step in front of it. Once this check is complete, the process completes their part of the task.
  • Welcome

    1. 1. Welcome Supply Management and Lean Manufacturing
    2. 2. Supply Chain Management ref: “Designing and Managing the Supply Chain”, Simchi-Levi et al., 2000. Chapters 1, 4 and 8.
    3. 3. Supply Chain Management <ul><li>The term supply chain was first introduced by Houlihan (1984), and has since been defined in different ways: </li></ul><ul><li>&quot;A supply chain is a system through which organizations deliver their products and services to their customers.&quot; (Poirier and Reiter, 1996). </li></ul><ul><li>&quot;A supply chain is an integrated process wherein raw materials are manufactured into final products, then delivered to customers (via distribution, retail, or both).&quot; (Benita, 1999). </li></ul>
    4. 4. A Simple Supply Chain Model
    5. 5. Complexity of Supply Chains <ul><li>Likely to be complex due to: </li></ul><ul><li>The large mesh of inter-linked suppliers, manufacturers and distributors. </li></ul><ul><li>The fact that each participant (supplier, manufacturer and distributor) may be a member of a large number of other supply chains. </li></ul><ul><li>The dynamic nature of the supply chain. </li></ul>
    6. 6. Supply Chains <ul><li>It takes a cereal carton more than three months to move from the factory to supermarkets (Simchi-Levi et al. 2000). </li></ul><ul><li>In 1997 supply chain issues in the United States consumed 10 percent of the U.S. Gross National Product (GNP) </li></ul><ul><li>Lead time reduction of increasing importance: </li></ul><ul><ul><li>reduced inventory levels </li></ul></ul><ul><ul><li>reduced obsolescence </li></ul></ul><ul><ul><li>improved response to customers </li></ul></ul>
    7. 7. Supply Chain Example Johnson Controls Chrysler Ford General Motors Technotrim Milliken & Company Lear Favesa Soft Trim Suppliers Dudek & Bock Spring Rockford Spring R. R. Spring Hardware Suppliers Canadian Fab Douglas & Lomason Collins & Aikman Textileather Specialty Screw Excel/Atwood
    8. 8. Supply Chains Chrysler 30% Chrysler 70% Supply Chain Cost in the Average New Vehicle? Trend
    9. 9. Lean Manufacturing
    10. 10. Lean Guiding Principles PERFECTION PULL FLOW VALUE STREAM VALUE
    11. 11. Types of Waste Waiting - Time spent waiting on items required to complete task (i.e., Information, material, supplies, etc.) Unnecessary Motion - Any motion that does not add value to product or service. Processing - Effort and time spent processing information or material that is not adding value Inventory - Material or information that is waiting for processing Moving items - Transporting information or material by mail, cart, conveyor, or foot travel Making too much -Producing more information or product than the ultimate customer requires Fixing defects - Time spent repairing or reworking material or information
    12. 12. Lean Toolkit <ul><li>Workload Leveling </li></ul><ul><li>Flow Processes </li></ul><ul><li>Pull Systems </li></ul><ul><li>Standard Work </li></ul><ul><li>Visual Controls </li></ul><ul><li>Error Proofing </li></ul>Lean Tools
    13. 13. <ul><li>Enables the process to run as efficiently as possible, using the minimum number of people </li></ul><ul><li>Maximizes the utilization of each person </li></ul><ul><li>Makes a process more predictable </li></ul>Workload Leveling Lean Toolkit
    14. 14. <ul><li>Workload Leveling </li></ul>TT Worker A B C D Won’t Make Plan Worker A B C D Lots Of Free Time TT TT Worker A B C D Poor Balance Worker A B C D TT 100 100 Only 22 Sec. More To Save 25% On Labor Lean Toolkit
    15. 15. <ul><li>A basic principle of Lean is to make value flow as quickly as possible through the Value Stream </li></ul><ul><ul><li>Must have quick decisions, made at the lowest possible level </li></ul></ul><ul><ul><ul><li>Eliminate approvals </li></ul></ul></ul><ul><ul><li>Must have information available to the “new” decision makers </li></ul></ul>Establishing Flow and Pull Lean Toolkit
    16. 16. <ul><li>Flow Processes </li></ul><ul><li>All operations within a process should be rearranged in a sequential fashion with minimal distance between operations </li></ul><ul><ul><li>Isolated functional activities should be co-located as much as possible with the rest of the process activities </li></ul></ul><ul><ul><li>Office layouts should be process/activity oriented versus functional </li></ul></ul><ul><ul><li>Isolated machines should be moved and incorporated into the line as much as possible </li></ul></ul><ul><li>Flow assumes that material/products will not be stagnant at any point and time from receiving to the shipping of finished products </li></ul><ul><li>The intent of continuous flow is to increase the velocity of and make the cycle time predictable </li></ul>Lean Toolkit
    17. 17. <ul><li>Pull Systems </li></ul><ul><li>A Pull System is a way to manage the Lean Enterprise System </li></ul><ul><li>Pull System vs. Push System </li></ul><ul><ul><li>A Pull System occurs when the previous process produces only as many products that are consumed by the following process </li></ul></ul><ul><ul><li>A Push System produces just as many units as it can and sends them to the next process whether the next process needs them or not </li></ul></ul><ul><li>Pull Systems minimize waste </li></ul><ul><li>Strive for Single-Piece Flow, to minimize wait times & queues </li></ul>Lean Toolkit
    18. 18. <ul><li>Pull Vs. Push </li></ul>PROCESS C PROCESS B PROCESS A PROCESS C PROCESS B PROCESS A Lean Toolkit
    19. 19. Pull Vs. Push in Product Development Verification Design/ Code Requirements Definition Verification Design/ Code Requirements Definition This engineer could be helping with requirements definition This pile of system requirements goes through the process like a rat through a snake.
    20. 20. <ul><li>Represents the current best, easiest, and safest way to do a job </li></ul><ul><ul><li>Documented processes constantly change as employees make continuous improvements </li></ul></ul><ul><li>Preserves know-how and expertise </li></ul><ul><li>Provides a way to measure performance </li></ul><ul><li>Provides a means for preventing recurrence of errors and minimizing variability </li></ul><ul><li>Improves schedule compliance, customer satisfaction, productivity, and cost competitiveness </li></ul>Standard Work Lean Toolkit
    21. 21. <ul><li>Takt Time (Available Work Time / Daily Demand) </li></ul><ul><li>Work Sequence (Sequence of Tasks performed) </li></ul><ul><li>Standard WIP (The minimum number of parts in a process that are required for work to progress) </li></ul><ul><li>Note: To apply these in the office environment, the process must be: </li></ul><ul><ul><ul><li>Observable </li></ul></ul></ul><ul><ul><ul><li>Repetitive </li></ul></ul></ul>Elements of Standard Work Lean Toolkit
    22. 22. <ul><li>Visual Controls are means, devices, or mechanisms that help us manage our processes in order to: </li></ul><ul><li>Use Visual Controls to: </li></ul><ul><ul><li>Make the problems, abnormalities, or deviation from standards visible to everyone so that corrective action can be taken </li></ul></ul><ul><ul><li>Display the process status in an easy to see format </li></ul></ul><ul><ul><li>Provide instruction </li></ul></ul><ul><ul><li>Convey information </li></ul></ul><ul><ul><li>Provide immediate feedback to the team </li></ul></ul>Visual Control & Visual Management Lean Toolkit
    23. 23. <ul><li>“ How we are doing” at a glance </li></ul><ul><ul><li>What we are working on </li></ul></ul><ul><ul><li>The level of performance </li></ul></ul><ul><li>Providing information immediately to people working in the area </li></ul><ul><li>Promotes communication </li></ul>Visual Control - The Concept Visual Management - The Concept “ The ability to manage a system or process by metrics that are visual to the workplace” Lean Toolkit
    24. 24. <ul><li>Error Proofing </li></ul><ul><li>Error Proofing is a way to prevent an error from being created or potentially passed to the next operation of a process </li></ul><ul><ul><li>Allows people to concentrate on their work without paying unnecessary attention to preventing mistakes </li></ul></ul><ul><li>Error proofing techniques include: </li></ul><ul><ul><li>Use of different colored paper for different processes </li></ul></ul><ul><ul><li>Colored files/binders </li></ul></ul><ul><ul><li>Checklists </li></ul></ul><ul><ul><li>Log sheets </li></ul></ul><ul><ul><li>Screen prompts </li></ul></ul>Lean Toolkit
    25. 25. <ul><li>Early Detection of Errors Lowers Costs </li></ul><ul><li>Defects Own Next End of Final End user’s </li></ul><ul><li>Found at: Process Process Line Inspection Hand </li></ul><ul><li>Cost to $1 $10 $100 $1000 $10000 </li></ul><ul><li>the Company: </li></ul><ul><li>Impact to Very Minor Rework/ Significant Warranty </li></ul><ul><li>the Company: Minor Delay Reschedule Rework Reputation </li></ul><ul><li> Delay Lost Market </li></ul>Lean Toolkit
    26. 26. <ul><li>Successive Checks </li></ul>Process B Check A Check B Process C Process A SW Engineer A SW Engineer B SW Engineer C Process A Problems 1. 2. 3. Process B Problems 1. 2. Lean Toolkit
    27. 27. Review Participation Successive Checks in Product Development Software Design Peer Review Peer Review Code Requirements Definition Systems Engineer Software Engineer Software Team Member Engineers work with producers and customers of their processes in order to ensure a quality result. Systems Participation Verification Engineer … Prevent problems at end of development cycle. Also work with other experts and key end consumers to ensure that critical tasks can be accomplished. Verification, for example. Lean Toolkit
    28. 28. Successful Lean Tool Implementations <ul><li>Travel Expense Reporting </li></ul><ul><ul><li>Single-piece flow, process standardization, error proofing </li></ul></ul><ul><ul><li>50% reduction in cycle time </li></ul></ul><ul><ul><li>48% productivity improvement </li></ul></ul><ul><ul><li>60% reduction in travel distance </li></ul></ul>Lean Toolkit