Generic Lean Overview For Future Employer Of Alan S Desrocher


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  • 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
  • Let’s look at it from a customer’s viewpoint. Does the customer care about all these problems?? Discuss a few in depth. ROLE PLAY: pick someone for each part Customer - Subcontractor Resaw - Small parts Shipping - Assembly at West Union Walk through the role play problem example at each work station. “ Does the customer care?? ” NO!! What does the customer care about?? Low Cost High Quality Availability / On-time delivery What does Cascade care about? Profit Market share Repeat business Why are these things important to Cascade ?? Jobs - Income (Salary & Profit sharing) Employment - Future growth - Job security High inventories High scrap Wasted matl’s Absenteeism Machine downtime Late deliveries Low profit margin Long set-up time
  • Discussion None of these activities adds Value. Some are important or necessary, but None add value.
  • 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 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
  • Show sample Standardized Work from Cedar Works Bring training manual
  • Generic Lean Overview For Future Employer Of Alan S Desrocher

    1. 1. Lean Six Sigma Manufacturing Overview Machine Shop 2009
    2. 2. What does Alan Desrocher bring to the table <ul><li>Strategic programs </li></ul><ul><ul><ul><li>Tactical approaches </li></ul></ul></ul><ul><ul><ul><ul><li>Cultural elements to both </li></ul></ul></ul></ul>
    3. 3. Objectives <ul><li>Review brief history of manufacturing systems </li></ul><ul><li>Distinguish between mass 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. Objectives <ul><li>Understand where we are as a “Lean Culture” using a Lean Improvement Roadmap Assessment </li></ul><ul><li>Distinguish between what has been learned second hand or thoroughly taught, we don’t want to reinvent the wheel </li></ul><ul><li>Reinforce key Concepts of Lean Manufacturing if known </li></ul><ul><li>Review the kinds of changes needed to be considered a lean manufacturer. </li></ul><ul><li>Dig in </li></ul>
    5. 5. Objectives <ul><li>Using the designed Roadmap we’ll be displaying throughout the organization where we are and where we want to go </li></ul><ul><li>Using the Roadmap we’ll be assuring that all employees are communicated to….. at the level that they feel confident that we are heading </li></ul><ul><li>“ together towards excellence” ! </li></ul><ul><li>Using the Roadmap we’ll be monitoring our progress and celebrating our successes and understanding and correcting our failures </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>Excellent 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
    10. 10. 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
    11. 11. New Paradigm: Non-Blaming Culture <ul><li>Management creates a culture where: </li></ul><ul><li>Problems are recognized as opportunities </li></ul><ul><li>It’s okay to make legitimate mistakes </li></ul><ul><li>Problems are exposed because of increased trust </li></ul><ul><li>People are not problems - they are problem solvers </li></ul><ul><li>Emphasis is placed on finding solutions instead of “who did it” </li></ul>SOLUTIONS PROBLEMS
    12. 12. 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
    13. 13. Waste <ul><li>“ Anything that adds Cost </li></ul><ul><li>to the product </li></ul><ul><li>without adding Value” </li></ul>
    14. 14. Customer Role Play re: Value Add <ul><li>Notes only on this page. </li></ul>
    15. 15. <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
    16. 16. 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..
    17. 17. Who wants what... Customer Low Cost High Quality Availability Your Company Profit Repeat Business Growth Cash !! $ Value !!
    18. 18. Price Increase Some Profit Bigger Profit Price to Sell Cost to Produce Cost + Profit = Price 1 2 3 1 2 3
    19. 19. Cost Reduction Some Profit Bigger Profit Price to Sell Cost to Produce Price - Cost = Profit 1 2 3 1 2 3
    20. 20. Just in Time Manufacturing <ul><li>Produce according to customer demands: </li></ul><ul><li>What is needed </li></ul><ul><li>When it is needed </li></ul><ul><li>In the quantity it is needed </li></ul><ul><li>Utilize - Continuous flow processing </li></ul><ul><li>- Pull system </li></ul>
    21. 21. JIT Element - Continuous Flow Processing Batch Processing 10 minutes 10 minutes 10 minutes Total Batch A processing time : 30 minutes Continuous Flow Processing Total Batch A processing time : 12 minutes Only 3 minutes for 1st part <ul><li>Product requires three processes that take one minute each </li></ul><ul><li>Processing first batch in batches of 10 requires 30 minutes </li></ul><ul><li>Processing first “batch” one-at-a-time requires only 12 minutes </li></ul>
    22. 22. JIT Element - Pull System <ul><li>Following processes withdraw what they need when they need it. </li></ul><ul><li>Preceding processes replenish what is taken away. </li></ul>Upstream Processes Downstream Processes New Product Needed Product Pull Withdrawal Kanban Production Kanban Store A B C D E F G H I J K L M N O P Q
    23. 23. Production Scheduling Assumptions <ul><li>Production Schedules will always change </li></ul><ul><li>Production will never go according to schedule. </li></ul>
    24. 24. Takt Time Takt Time Volume (Daily production requirement) Time (Available seconds per working day) = Cycle Time = Actual time required for a worker to complete one cycle of his process Sets pace of production to match pace of sales.
    25. 25. Takt Time TAKT Time = Net Available Time to Work ÷ Customer Demand <ul><li>Net available time is the amount of time available for work to be done. This excludes break times and any expected stoppage time (for example scheduled maintenance, Team Briefings etc). </li></ul><ul><li>As an example, if you have a total of 8 hours in a shift (gross time) less 30 minutes lunch, 30 minutes breaks (2 x 15 mins), 10 minutes Team Brief and 10 minutes for basic Operator Maintenance checks, then; </li></ul><ul><li>Net Available Time to Work = (8 hours x 60 minutes) - 30 - 30 - 10 - 10 = 400 minutes. </li></ul><ul><li>If Customer Demand was, say, 400 units a day and you were running one shift, then your line would need to make one part per minute to be able to keep up with Customer Demand. In reality, people can never maintain 100% efficiency and there may also be stoppages for other reasons, so allowances will need to be made for these instances and thus you will set up your line to run at a proportionally faster rate to account for this. </li></ul>
    26. 26. Very Frequent Change-overs 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
    27. 27. 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
    28. 28. Quality Processes Yield Quality Results Consistent Process Desired Results Inconsistent Process Inconsistent Results Traditional = People doing whatever they can to get results Lean = People using standard process to get results
    29. 29. Henry Ford - Standards “ 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. Today’s standardization, instead of being a barricade against improvement, is the necessary foundation on which tomorrow’s improvement will be based. 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.” Henry Ford, 1926 Today & Tomorrow
    30. 30. <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>Standardized Work
    31. 31. Continuous Improvement A D E C B 1 min. Takt Time (1 min.) Operators A D E C B 1 min. Takt Time (1 min.) Operators Cycle Time
    32. 32. <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>Other Tools
    33. 33. <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
    34. 34. Cascade
    35. 35. 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>
    36. 36. Quick Change Over <ul><li>QCO is used to: </li></ul><ul><li>Reduce time needed to change over from one set-up to another. </li></ul><ul><li>Improve first time capability. </li></ul><ul><li>Improve repeatability of change over operations </li></ul>
    37. 37. <ul><li>TPM is a structured approach to maintaining equipment and insuring stable manufacturing processes. </li></ul><ul><li>Everybody gets involved. </li></ul>Total Productive Maintenance
    38. 38. Impact on You!! <ul><li>First Time Quality </li></ul><ul><li>Standardized Work </li></ul><ul><li>Error Proofing </li></ul><ul><li>Root Cause Analysis </li></ul><ul><ul><li>Problem Solving </li></ul></ul><ul><li>Change Request Forms </li></ul><ul><li>Predictable Processes </li></ul><ul><ul><li>Machine Reliability </li></ul></ul><ul><ul><li>Total Productive Maintenance </li></ul></ul><ul><ul><li>Improved up-time </li></ul></ul><ul><li>Reduced scrap & repairs </li></ul><ul><li>People </li></ul><ul><li>Skilled, multi-function workers </li></ul><ul><ul><li>Training </li></ul></ul><ul><ul><li>Employee development </li></ul></ul><ul><li>Small Group Activity </li></ul><ul><ul><li>Quality </li></ul></ul><ul><ul><li>Safety </li></ul></ul><ul><ul><li>Productivity </li></ul></ul><ul><ul><li>Cost </li></ul></ul><ul><li>Structured feedback meetings </li></ul><ul><li>Empowerment </li></ul><ul><ul><li>Involvement </li></ul></ul><ul><ul><li>Accountability </li></ul></ul><ul><ul><li>Responsibility </li></ul></ul><ul><ul><li>Authority </li></ul></ul><ul><li>Safety & Ergonomics </li></ul><ul><li>Just in Time </li></ul><ul><li>Kanban production </li></ul><ul><li>Min / Max levels </li></ul><ul><li>Smaller Lots </li></ul><ul><li>Quick Change Over </li></ul><ul><li>Less inventory </li></ul><ul><li>Less reliance on schedules </li></ul>
    39. 39. What to Expect in the Future <ul><li>Training </li></ul><ul><li>Communication </li></ul><ul><li>Elimination of Waste (NVA) </li></ul><ul><li>Continuous Improvement </li></ul><ul><li>Visual Factory </li></ul><ul><li>More efficient layouts </li></ul><ul><li>Roles & Responsibilities </li></ul><ul><li>More involvement / ownership </li></ul><ul><li>Long term GROWTH!! </li></ul>
    40. 40. Evidence of Progress toward Lean <ul><li>Smaller lot sizes </li></ul><ul><li>Increased capacity / throughput </li></ul><ul><li>Higher inventory turns </li></ul><ul><li>More available floor space </li></ul><ul><li>Improved workplace organization </li></ul><ul><li>Improved quality : reduced scrap / re-work </li></ul><ul><li>Reduced inventories : raw, WIP, FG </li></ul><ul><li>Reduced lead times </li></ul><ul><li>Greater gross margin </li></ul><ul><li>Improved participation & morale </li></ul>