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  • There are two parts to the Lean Manufacturing module. Part 1 focuses on a basic overview of Lean Principles, and describes “waste” in some detail. Part #2 deals more with the “flow” component of Lean. The background required for these modules is limited to “an understanding of manufacturing systems”. Two approaches can be taken for this presentation. If a more senior audience is the focus, senior undergraduates, graduate students or industry practitioners, then the focus of implementation roadblocks can be maintained. For a less experienced audience, principles concerning more common examples (like office work and McDonalds) will make a more interesting “case” for examples. There is a Case Study that is used to illustrate Waste Reduction and Value Stream Mapping principles.
  • The focus here is on the trends towards smaller lot sizes, more frequent change over and higher flexibility required today.
  • There is no good reference here. The web site is not operational at this time. Hopefully by August 2002, the introductory chapter will be available.
  • Time & Motion studies - Fredrick Taylor Interchangeable parts - Eli Whitney
  • Term “lean” coined by John Krafcik, one of the research members on Jim Womack’s MIT team for the 5 year study.
  • The sooner product ships, the sooner Cedar Works gets paid The faster material moves through the system Less money tied up in inventory in the system
  • Who decides what is valuable? ---->>> Customer
  • Discuss each Ask for examples of each type from different work areas at Cedar Works. Transition to Mercury Marine video . After video, tee up introduction of Cedar Works Production System and Lean Manufacturing. “ So what do you think it will take for Cedar Works to steadily eliminate waste, or NVA from their operations?? Discussion
  • What we have here is a pretty fundamental relationship. Each party wants something; the customer and Cascade. The essential ingredients that make the whole thing go are: Value to the Customer Profit to Cascade These are the two fundamentals that MUST be there for a company to grow and thrive. If only one side of this flow takes place, the company will soon be out of business; if the customer does not receive adequate value if the company doesn’t make sufficient profit As for value to the customer, what determines if the customer is getting good value? Answer: Desired product and features at low cost. As for Cascade, what determines how much profit you make? Answer: Sales Price - Cost to produce Transition to next slide
  • Show sample Standardized Work from Cedar Works Bring training manual
  • Show left hand side first , 1. Determine Cost to produce an item 2. Add profit you want 3. This gives you Price to the customer If you want to increase your profit under this system, how do you do it? --->>> Raise the price to the customer. reveal right hand side This is what most companies operated in the 60’s and 70’s, just pass the cost along to the customer. But as the markets get more and more competitive, do you think this strategy will still work?? NO!! So if Cascade wants to increase their profits now a days, how could they do it?? Discussion Transition to next slide......
  • Show left hand side first , 1. Determine Price customer is willing to pay 2. Subtract the Cost to produce an item 3. This leaves your profit Under this system if you want to increase your profit, how do you do it? ---->>> Lower Cost. How do you suppose you lower Cost?? Elimination of Non-Value Added Activity. Elimination of Waste !! What exactly is waste? Discussion
  • Discussion None of these activities adds Value. Some are important or necessary, but None add value.
  • Slide set#5a

    1. 1. Lean Manufacturing - An Overview Dr. Richard A. Wysk [email_address] Fall 2008
    2. 2. Broad Agenda <ul><li>Overview of Lean Manufacturing </li></ul><ul><ul><li>Lean according to R. Wysk Set-up reduction and rapid response production systems </li></ul></ul><ul><ul><li>Changing in order to change more quickly </li></ul></ul><ul><li>Case Study </li></ul><ul><ul><li>Lean at home in the kitchen </li></ul></ul><ul><li>Some models and discussions </li></ul><ul><ul><li>Learning/forgetting </li></ul></ul><ul><ul><li>6 sigma in rapid response systems </li></ul></ul>
    3. 3. Agenda <ul><li>Review brief history of manufacturing systems </li></ul><ul><li>Distinguish between mass, craft and lean manufacturing </li></ul><ul><li>Introduce key Concepts of Lean Manufacturing </li></ul><ul><li>Review the kinds of changes needed to be considered a lean manufacturer. </li></ul>
    4. 4. Readings <ul><li>Chapter 18 of Computer Aided Manufacturing , Wang, H.P., Chang, T.C. and Wysk, R. A., 4 th Edition (2008 expected) </li></ul><ul><li> </li></ul>
    5. 5. Objectives <ul><li>To identify waste elements in a system </li></ul><ul><li>To apply value stream analysis to a complex engineering/manufacturing system </li></ul><ul><li>To implement 3 M’s in a complex engineering environment </li></ul><ul><li>To be able to identify and implement the 5Ss of lean </li></ul>
    6. 6. Craft Manufacturing <ul><li>Late 1800’s </li></ul><ul><li>Car built on blocks in the barn as workers walked around the car. </li></ul><ul><li>Built by craftsmen with pride </li></ul><ul><li>Components hand-crafted, hand-fitted </li></ul><ul><li>Good quality </li></ul><ul><li>Very expensive </li></ul><ul><li>Few produced </li></ul>
    7. 7. Mass Manufacturing <ul><li>Assembly line - Henry Ford 1920s </li></ul><ul><li>Low skilled labor, simplistic jobs, no pride in work </li></ul><ul><li>Interchangeable parts </li></ul><ul><li>Lower quality </li></ul><ul><li>Affordably priced for the average family </li></ul><ul><li>Billions produced - identical </li></ul>
    8. 8. Lean Manufacturing <ul><li>Cells or flexible assembly lines </li></ul><ul><li>Broader jobs, highly skilled workers, proud of product </li></ul><ul><li>Interchangeable parts, even more variety </li></ul><ul><li>Excellent quality mandatory </li></ul><ul><li>Costs being decreased through process improvements. </li></ul><ul><li>Global markets and competition. </li></ul>
    9. 9. Definition of “Lean” <ul><li>Half the hours of human effort in the factory </li></ul><ul><li>Half the defects in the finished product </li></ul><ul><li>One-third the hours of engineering effort </li></ul><ul><li>Half the factory space for the same output </li></ul><ul><li>A tenth or less of in-process inventories </li></ul>Source: The Machine that Changed the World Womack, Jones, Roos 1990 Materials Labor Equipment Energy Methods Products
    10. 10. Lean Manufacturing <ul><li>is a manufacturing philosophy which shortens the time line between the customer order and the product shipment by eliminating waste . </li></ul>Customer Order Waste Time Customer Order Time (Shorter) Business as Usual Waste Lean Manufacturing Product Shipment Product Shipment
    11. 11. The Nature of Lean Mfg <ul><li>What Lean Mfg is not </li></ul><ul><ul><li>JIT </li></ul></ul><ul><ul><li>Kanban </li></ul></ul><ul><ul><li>Six sigma </li></ul></ul><ul><li>Characteristics </li></ul><ul><ul><li>Fundamental change </li></ul></ul><ul><ul><li>Resources </li></ul></ul><ul><ul><li>Continuous improvement </li></ul></ul><ul><li>Defined </li></ul><ul><ul><li>“ A system which exists for the production of goods or services, without wasting resources.” </li></ul></ul>
    12. 12. Introduction <ul><li>In 1926 Henry Ford wrote </li></ul><ul><ul><li>“ To standardize a method is to choose out of the many methods the best one, and use it. Standardization means nothing unless it means standardizing upward. </li></ul></ul><ul><ul><li>Today’s standardization, instead of being a barricade against improvement, is the necessary foundation on which tomorrow’s improvement will be based. </li></ul></ul><ul><ul><li>If you think of “standardization” as the best that you know today, but which is to be improved tomorrow - you get somewhere. But if you think of standards as confining, then progress stops.” </li></ul></ul>
    13. 13. Kaizen vs Reengineering <ul><li>Creating an useable and meaningful standard is key to the success of any enterprise. </li></ul><ul><li>Businesses usually utilize two different kinds of improvements. </li></ul><ul><ul><li>Those that suppose a revolution in the way of working. </li></ul></ul><ul><ul><li>Those that suppose smaller benefits with less investment. </li></ul></ul>Kaizen Final situation Initial situation time Reengineering productivity
    14. 14. Kaizen vs Reengineering <ul><li>The evolution consists of continuous improvements being made in both the product and process. </li></ul><ul><li>A rapid and radical change ( kaikaku ) process is sometimes used as a precursor to kaizen activities. </li></ul><ul><ul><li>Carried out by the utilization of process reengineering or a major product redesign. </li></ul></ul><ul><ul><li>Require large investments and are based on process automation. </li></ul></ul><ul><ul><ul><li>In the U.S., these radical activities are frequently called “kaizen blitzes”. </li></ul></ul></ul>
    15. 15. Kaizen vs Reengineering <ul><li>If the process is constantly being improved (continuous line), the innovation effort required to make a major change can be reduced (discontinuous line in the left). </li></ul><ul><ul><li>Otherwise, the process of reengineering can become very expensive (discontinuous line in the right). </li></ul></ul>Kaizen Final situation Initial situation time Reengineering productivity
    16. 16. What makes a manufacturing system lean? – the 3 M’s of lean <ul><li>muda – waste </li></ul><ul><li>mura - inconsistency </li></ul><ul><li>muri - unreasonableness </li></ul>
    17. 17. What makes a manufacturing system Lean?
    18. 18. Definitions <ul><li>Systems </li></ul><ul><ul><li>Recognition </li></ul></ul><ul><ul><li>Efficiencies </li></ul></ul><ul><li>Waste </li></ul><ul><ul><li>Muda </li></ul></ul><ul><ul><li>7 types </li></ul></ul><ul><ul><li>Truly lean </li></ul></ul>
    19. 19. Waste <ul><li>“ Anything that adds Cost </li></ul><ul><li>to the product </li></ul><ul><li>without adding Value” </li></ul>
    20. 20. 7 Types of Muda <ul><li>Excess (or early) production </li></ul><ul><li>Delays </li></ul><ul><li>Transportation (to/from processes) </li></ul><ul><li>Inventory </li></ul><ul><li>Inspection </li></ul><ul><li>Defects or correction </li></ul><ul><li>Process inefficiencies and other non-value added movement (within processes) </li></ul>
    21. 21. 7 Forms of Waste Types of Waste CORRECTION WAITING PROCESSING MOTION INVENTORY CONVEYANCE OVERPRODUCTION Repair or Rework Any wasted motion to pick up parts or stack parts. Also wasted walking Wasted effort to transport materials, parts, or finished goods into or out of storage, or between processes. Producing more than is needed before it is needed Maintaining excess inventory of raw mat’ls, parts in process, or finished goods. Doing more work than is necessary Any non-work time waiting for tools, supplies, parts, etc..
    22. 22. Let’s use lean for something we know about – cooking for a party
    23. 23. Excess /Over-production – As applied to fast food preparation <ul><li>________________ </li></ul><ul><li>________________ </li></ul><ul><li>________________ </li></ul><ul><li>________________ </li></ul><ul><li>________________ </li></ul><ul><li>________________ </li></ul>
    24. 24. W aiting/Delays <ul><li>__________ </li></ul><ul><li>__________ </li></ul><ul><li>__________ </li></ul><ul><li>__________ </li></ul><ul><li>__________ </li></ul><ul><li>__________ </li></ul>
    25. 25. Transportation/M ovement <ul><li>_________ </li></ul><ul><li>_________ </li></ul><ul><li>_________ </li></ul><ul><li>_________ </li></ul>
    26. 26. Layout efficiency
    27. 27. I nventory <ul><li>_________ </li></ul><ul><li>_________ </li></ul><ul><li>_________ </li></ul><ul><li>_________ </li></ul>
    28. 28. Inspection <ul><li>__________________ </li></ul><ul><li>__________________ </li></ul><ul><li>__________________ </li></ul><ul><li>______________ </li></ul><ul><li>______________ </li></ul><ul><li>______________ </li></ul>
    29. 29. C orrections and defects <ul><li>____________ </li></ul><ul><li>____________ </li></ul><ul><li>____________ </li></ul><ul><li>____________ </li></ul><ul><li>____________ </li></ul>
    30. 30. P rocessing inefficiencies <ul><li>__________________ </li></ul><ul><li>__________________ </li></ul><ul><li>__________________ </li></ul><ul><li>__________________ </li></ul>
    31. 31. P rocessing inefficiencies <ul><li>Automatics vs. manual </li></ul>
    32. 32. Over- P rocessing inefficiencies <ul><li>Two people doing some thing that one could do </li></ul><ul><li>Workplace layout </li></ul><ul><ul><li>Congestion </li></ul></ul><ul><ul><li>Labeling </li></ul></ul><ul><li>Automatics vs. manual </li></ul>
    33. 33. Over- P rocessing inefficiencies <ul><li>Material waste </li></ul>
    34. 34. Manufacturing inefficiencies <ul><li>Processes (value added) </li></ul><ul><ul><li>Inefficient process selection </li></ul></ul><ul><ul><li>Inefficient process operation </li></ul></ul><ul><ul><li>Too much direct labor </li></ul></ul><ul><li>Delays </li></ul><ul><ul><li>Schedules </li></ul></ul><ul><ul><li>Blocking </li></ul></ul><ul><ul><li>Congestion </li></ul></ul><ul><li>Quality </li></ul><ul><ul><li>Any defects </li></ul></ul><ul><ul><li>Rework </li></ul></ul><ul><li>Set-up </li></ul><ul><ul><li>Setting up a machine instead of running it </li></ul></ul><ul><ul><li>Accumulation of tooling and other processing needs </li></ul></ul>
    35. 35. Machining example <ul><li>CNC versus manual </li></ul><ul><ul><li>Tool changer </li></ul></ul><ul><ul><li>Pallet changer/bar feeder </li></ul></ul>
    36. 36. How do CAD/CAM systems work? <ul><li>Developing NC code requires an understanding of: </li></ul><ul><ul><li>Part geometry </li></ul></ul><ul><ul><li>Tooling </li></ul></ul><ul><ul><li>Process plans </li></ul></ul><ul><ul><li>Tolerances </li></ul></ul><ul><ul><li>Fixturing </li></ul></ul><ul><li>Most CAD/CAM systems provide access to: </li></ul><ul><ul><li>Part geometry </li></ul></ul><ul><ul><li>Tooling </li></ul></ul>
    37. 37. Instructions can be generated for a generic NC machine <ul><li>A set of tool paths and positions can be automatically generated </li></ul><ul><li>These paths can be edited and modified </li></ul><ul><li>These paths and instructions can then be “posted” to a specific machine </li></ul>
    38. 38. The Design Process : Then and Now Before CAD After CAD
    39. 39. Exercise (3-5 minutes) <ul><li>Discuss how CAD/CAM helps in Lean Manufacturing? Elaborate on any one aspect. </li></ul><ul><li>What advantages does CAD/CAM approach offer in NC Programming? </li></ul>
    40. 40. CAD/CAM Support <ul><li>AutoCAD </li></ul><ul><li>Pro Engineer </li></ul><ul><li>Solidworks </li></ul><ul><li>MasterCAM </li></ul>
    41. 41. What do I need to begin MasterCAM? <ul><li>Part geometry </li></ul><ul><ul><li>Draw or import </li></ul></ul><ul><li>Tooling </li></ul><ul><ul><li>Library or create </li></ul></ul><ul><li>Process plans </li></ul><ul><li>Fixtures </li></ul><ul><ul><li>Define orientation and location </li></ul></ul>
    42. 42. Who wants what... Customer Low Cost High Quality Availability Your Company Profit Repeat Business Growth Cash !! $ Value !!
    43. 43. Elements of Lean Manufacturing <ul><li>Waste reduction </li></ul><ul><li>Continuous flow </li></ul><ul><li>Customer pull </li></ul><ul><li>50, 25, 25 (80,10,10) Percent gains </li></ul>
    44. 44. Benefits of Lean Manufacturing <ul><li>50 - 80% Waste reduction </li></ul><ul><ul><li>WIP </li></ul></ul><ul><ul><li>Inventory </li></ul></ul><ul><ul><li>Space </li></ul></ul><ul><ul><li>Personnel </li></ul></ul><ul><ul><li>Product lead times </li></ul></ul><ul><ul><li>Travel </li></ul></ul><ul><ul><li>Quality, costs, delivery </li></ul></ul>
    45. 45. Setting the Foundation <ul><li>Evaluating your organization </li></ul><ul><ul><li>Management culture </li></ul></ul><ul><ul><li>Manufacturing culture </li></ul></ul><ul><li>Lean Manufacturing Analysis </li></ul><ul><ul><li>Value stream (from customer prospective) </li></ul></ul><ul><ul><li>Headcount </li></ul></ul><ul><ul><li>WIP </li></ul></ul><ul><ul><li>Inventory </li></ul></ul><ul><ul><li>Capacity, new business, supply chain </li></ul></ul>
    46. 46. Tools of Lean Mfg/Production <ul><li>Waste reduction </li></ul><ul><ul><li>Full involvement, training, learning </li></ul></ul><ul><ul><li>Cellular mfg </li></ul></ul><ul><ul><li>Flexible mfg </li></ul></ul><ul><ul><li>Kaikaku (radical change) </li></ul></ul><ul><ul><li>Kaizen (continuous improvement) & standard work </li></ul></ul><ul><ul><li>5S </li></ul></ul><ul><ul><li>Jidoka (autonomation) </li></ul></ul><ul><ul><li>Poka-yoke (visual signals) </li></ul></ul><ul><ul><li>Shojinka (dynamic optimization of # of workers) </li></ul></ul><ul><ul><li>Teien systems (worker suggestions) </li></ul></ul><ul><ul><li>Six sigma </li></ul></ul>
    47. 47. Tools (cont.) <ul><li>Continuous Flow (10% - 25%) </li></ul><ul><ul><li>SMED (Shingo) </li></ul></ul><ul><ul><li>Andon </li></ul></ul><ul><ul><li>Takt time </li></ul></ul><ul><ul><li>Line balancing </li></ul></ul><ul><ul><li>Nagara (smooth production flow) </li></ul></ul>
    48. 48. Tools (cont.) <ul><li>Customer pull (10%- 25%) </li></ul><ul><ul><li>Just-in-time </li></ul></ul><ul><ul><li>Kanban </li></ul></ul>
    49. 49. Standardized Work <ul><li>Captures best practices </li></ul><ul><li>Posted at the work station </li></ul><ul><li>Visual aid </li></ul><ul><li>Reference document </li></ul><ul><ul><li>work sequence </li></ul></ul><ul><ul><li>job layout </li></ul></ul><ul><ul><li>time elements </li></ul></ul><ul><ul><li>safety </li></ul></ul><ul><li>Developed with operators </li></ul><ul><li>Basis for Continuous Improvement </li></ul>
    50. 50. Other Tools <ul><li>Visual Factory </li></ul><ul><li>Error Proofing </li></ul><ul><li>Quick Change-over </li></ul><ul><li>Total Productive Maintenance </li></ul>
    51. 51. 5S Programs <ul><li>Seiri (sort, necessary items) </li></ul><ul><li>Seiton (set-in-order, efficient placement) </li></ul><ul><li>Seison (sweep, cleanliness) </li></ul><ul><li>Seiketsu (standardize, cont. improvement) </li></ul><ul><li>Shitsuke (sustain, discipline) </li></ul>
    52. 52. <ul><li>“ Ability to understand the status of a production area in 5 minutes or less by simple observation without use of computers or speaking to anyone.” </li></ul><ul><li>5-S </li></ul><ul><ul><li>1S Sift and Sort (Organize) </li></ul></ul><ul><ul><li>2S Stabilize (Orderliness) </li></ul></ul><ul><ul><li>3S Shine (Cleanliness) </li></ul></ul><ul><ul><li>4S Standardize (Adherence) </li></ul></ul><ul><ul><li>5S Sustain (Self-discipline) </li></ul></ul>Visual Factory
    53. 54. Price Increase Some Profit Bigger Profit Price to Sell Cost to Produce Cost + Profit = Price 1 2 3 1 2 3
    54. 55. Cost Reduction Some Profit Bigger Profit Price to Sell Cost to Produce Price - Cost = Profit 1 2 3 1 2 3
    55. 56. <ul><li>What value is </li></ul><ul><li>Added by: </li></ul>Sorting Counting Acknowledgments Moving Expediting Inspecting Returns to Suppliers Repackaging Scrap Storing Invoices Rework Loading / Unloading Receiving Report
    56. 57. Toyota Production System Best Quality - Lowest Cost - Shortest Lead Time Through shortening the Production Flow by Eliminating Waste Just in Time “The right part at the right time in the right amount” <ul><li>Continuous Flow </li></ul><ul><li>Pull System </li></ul><ul><li>Level Production (Heijunka) </li></ul>Jidoka “Built in Quality” <ul><li>Manual / Automatic Line Stop </li></ul><ul><li>Labor-Machine Efficiency </li></ul><ul><li>Error Proofing </li></ul><ul><li>Visual Control </li></ul>Flexible, Capable, Highly Motivated People Standardized Work Total Productive Maintenance Robust Products & Processes Supplier Involvement Operational Stability
    57. 58. Very Frequent Change-over 8 hours change over Right Hand change over Left Hand change over Right Hand change over Left Hand Left Hand change over Right Hand change over Left Hand change over Right Hand change over Left Hand change over Right Hand change over Left Hand change over Right Hand change over
    58. 59. Building in Quality <ul><li>Machines intelligence to be self-operating and self-stopping </li></ul><ul><li>People served by machines, not vice versa </li></ul><ul><li>Quality built-in, not inspected-in </li></ul><ul><li>Efficiency human work separated from machine work, people freed to do value-added work </li></ul>JIDOKA
    59. 60. Quality as part complexity increases <ul><li>Number of features P{Good Part} P{Good Part} </li></ul><ul><li>3 sigma 4 sigma </li></ul><ul><li>1 99.73% 99.98% </li></ul><ul><li>10 97.33% 99.83% </li></ul><ul><li>100 76.31% 98.31% </li></ul><ul><li>1000 6.69% 84.36% </li></ul>P{good part} = [P{good dimension and good location}] # of features
    60. 61. Planning for Quality <ul><li>Plan for control limits well outside process variability </li></ul><ul><li>Monitor the process; not the product </li></ul><ul><li>Make sure that process/procedures do not go out of control </li></ul>
    61. 62. Error Proofing <ul><li>Preventing accidental errors in the manufacturing process </li></ul><ul><ul><li>Error detection </li></ul></ul><ul><ul><li>Error prevention </li></ul></ul><ul><li>A way to achieve zero defects. </li></ul>
    62. 63. Performance barriers Arrivals 60 minutes between parts Service 55 minutes/part
    63. 64. Performance barriers (con’t) <ul><li>Arrivals Service Wait in system </li></ul><ul><li>Constant Constant 0 minutes </li></ul><ul><li>Random (Poisson) Constant 300 minutes </li></ul><ul><li>Random (Poisson) Random (Poisson) 600 minutes </li></ul>
    64. 65. End - Waste Elimination Questions?