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1
Wealth Creation
through
Lean Manufacturing
( Concepts, Tools, Techniques and Applications)
2
Learning Objectives
How waste erodes wealth and affects survival ?
Introduction to Lean System Thinking
Typical waste...
3
Introduction to Lean / Lean manufacturing
4
What is Lean ?
Lean is achieving “More with LESS”.
It means
 achieving more with given resources or
 achieving more wi...
5
What is Lean Manufacturing ?
Lean manufacturing system can be understood by relating to the human body. If
the person ap...
6
What is Lean System Thinking ?
Similarly, Lean System or Lean Organization means free from unnecessary
waste in the enti...
7
Misconception about Lean / Lean Manufacturing
8
Misconception about Lean?
There are some misunderstandings about lean and its application .Some of the
misconception abo...
9
•Lean can be implemented only in large organization
No. One of the assumptions is that implementing lean requires invest...
10
•Lean is for during lean seasons
One of the most misconception is that lean implementation is for not peak season
as ev...
11
•Lean is only for automobile and ancillary organizations
No. As said, Lean is not specific to any industries. Wherever ...
12
Where can i apply Lean concepts ?
Typical Foundry Process
13
Origin and Brief history of Lean / Lean Manufacturing
14
Foundation
of Toyota
Jidoka
JIT –
World War II 1950 1960 1970 1980 1990 2000
TPS as System
Supplier Development
Transpl...
1515
The “founders” of Lean: History of Toyota and their production system TPS
1616
Why Lean / Lean Manufacturing ?
17
Why there is need for Lean in today’s context ?
18
 Globalization
 Competition
Technology
Variants
On time delivery
 No inventory
Speed
 Towards Zero defect
19
Internal Challenges for organization…
Reduce
Cost
Improve
Quality
“Cheaper”“Faster”
Reduce
Lead Time
“Better”
Net Margi...
20
What is Purpose of Organization ?
21
Maximizing Value to Stakeholders
Value is different for each stakeholder !!!
2222
Understanding Value / Waste in manufacturing
23
What is VALUE ?
24
In Manufacturing Context ,
Value is defined thru Waste
25
Definition of Waste
 Useless Consumption or Expenditure
 Use of Resources without adequate return
Waste is alternativ...
26
Customer - ask
for Product /
Service
Customer - get
Product / Service
Activities adding
value from
Customer’s view &
re...
27
Customer - ask
for Product /
Service
Customer - get
Product / Service
Activities adding
value from
Customer’s view &
re...
28
“Value addition” in Shop Floor
29
Let us understand Value Chain ……
30
Material
cost
Process
Cost
Factory
Fixed cost
Quality
Cost
Non
Factory
Fixed Cost
Logistics
Cost
TAX
Profit MRP
Typical...
31
Material
cost
Process
Cost
Factory
Fixed cost
Quality
Cost
Factory
Non Fixed
Cost
Logistics
Cost
TAX
Profit
MRP
Rs 500 ...
32
Material
cost
Process
Cost
Factory
Fixed cost
Quality
Cost
Factory
Non Fixed
Cost
Logistics
Cost
TAX Profit MRP
By comp...
33
Material
cost
Process
Cost
Factory
Fixed cost
Quality
Cost
Factory
Non Fixed
Cost
Logistics
Cost
TAX Profit MRP
Rs 500 ...
34
How to improve value in value chain ?
35
Excellence in Manufacturing
Through
Lean Concepts and application
36
How we achieve excellence in Manufacturing ….
5 S
Lean Manufacturing
TPMTQM
Continuous Improvement (Kaizen)
Leads to VA...
3737

High Productivity

Consistent Quality

Cost-effective

On time Delivery

Safe for people to work

High People ...
38
Strength of chain
depends on the
weakest link of the chain
39
Typical waste in manufacturing process / setup
40
Typical Wastes in Manufacturing System
1. Over production
2. Over processing
3. Defective Product / Rejection/ Rework
4...
41
Type
of Waste
Description / Examples Causes for Waste
Over
Production
Producing more than demand
Producing faster than ...
42
Type
of Waste
Description / Examples Causes for Waste
Over
Processing
Processing more than specification or
requirement...
43
Type of
Waste
Description / Examples Causes for Waste
Inventory Either in WIP or as finished goods
Unbalanced processes...
44
Type of
Waste
Description / Examples Causes for Waste
Movement
Moving the product from one location
to another .
Proces...
45
Type of
Waste
Description / Examples Causes for Waste
Motion
Unnecessary Operator Motion in
workplace
Poor Workplace La...
46
Type of
Waste
Description / Examples Causes for Waste
Defectives /
Rework /
Rejections
Inspect ,segregate , rework and
...
47
Type of Waste Description /
Examples
Causes for Waste
Idle
Equipment
Equipment not performing value
added process or un...
48
Type of Waste Description / Examples Causes for Waste
Delay or
waiting
People not working or idle due to
waiting for ma...
49
Type of Waste Description / Examples Causes for Waste
Over Production Producing More than demand
Producing soon than re...
50
Typical Lean Tools for eliminating / reducing waste in
manufacturing process / setup
51
Housekeeping and Visual Management
Quick Changeover Methodologies
Flow Manufacturing
Mistake Proofing Techniques
Applic...
52
Tool / Technique Description Purpose
5S
Systematic approach for housekeeping that
ensure the parts , tools are in right...
53
Overall Equipment Effectiveness
54
OEE provides simple, consistent, and proven way of measuring the
effectiveness of any productivity initiatives or lean ...
55
What is OEE?
Overall Equipment Effectiveness (OEE) is one of the best METRIC used for monitoring
and improving the Effi...
56
Elements of OEE :
Availability:
It measures manufacturing productivity losses from down time .i.e. the events that
stop...
57
World class OEE for discrete manufacturing process
Generally, world class OEE for discrete manufacturing process is con...
58
Calculating OEE
OEE is calculated from three categories like availability, performance, and quality
OEE = Availability ...
59
Availability:
Availability is the ratio of actual operating time to planned operating time ….
It measures the downtime ...
60
Planned shutdown time
It is planned shutdown for valid reasons like morning meetings, lunch break; refresh
break, sched...
61
Break up of down time (110 min ) can be
Machine breakdown -20 min
Operator not available – 30 min
Material not availabl...
62
Say std time per piece = 3 min
So standard qty can be produced during operating time = 300/3 =100 pieces
Suppose, in a ...
63
Important Steps in OEE Improvement Process
•Identify the facility or equipment or line to be measured
•Understand the c...
64
Sample OEE Tracking format
Location : Machining / Press /Assembly / Heat treatment
1
Shift A
Shift
B
Shift C
Utilisatio...
65
Why do lean Implementation fail ?
66
Lack of CEO and Top Management involvement
Not Educating or creating awareness about Lean and its purpose
Delegation to...
67
10 Commandments for Transformative Results ..
1. Challenge Fixed ideas
2. Think how it can be done rather it won’t
3. D...
68
Steps in implementing lean initiatives
69
Steps in Implementing Lean Initiatives
Awareness creation on the need
Commitment and demonstration by Leaders and Sen...
70
Some Turn around case examples in our clients business
Industry Results delivered
Casting and Machining •Business turno...
71
Thank you for your Interest
To understand more about its relevance to your business, please mail us to
ganesh@winningmi...
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Wealth creation through lean manufacturing concepts, tools and techniques

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Basic awareness on lean, lean manufacturing, typical misconceptions about lean applications, value creation methods, value addition by manufacturing, typical wastes in any organization and suitable lean tools, techniques to reduce or eliminate waste.How typical waste elimination in entire value chain contributes wealth through case study examples.

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Wealth creation through lean manufacturing concepts, tools and techniques

  1. 1. 1 Wealth Creation through Lean Manufacturing ( Concepts, Tools, Techniques and Applications)
  2. 2. 2 Learning Objectives How waste erodes wealth and affects survival ? Introduction to Lean System Thinking Typical wastes in Organizational / Manufacturing Process Typical Tools and Techniques to eliminate/ reduce waste  Implementation challenges and change management  Application of OEE measurement on productivity Improvements  Potential waste elimination opportunities
  3. 3. 3 Introduction to Lean / Lean manufacturing
  4. 4. 4 What is Lean ? Lean is achieving “More with LESS”. It means  achieving more with given resources or  achieving more with less resources . Mainly it is elimination or reduction of waste in the entire value chain .
  5. 5. 5 What is Lean Manufacturing ? Lean manufacturing system can be understood by relating to the human body. If the person appears “lean”, then general assumption is that he/she is free from unnecessary FAT in the body, hence free from unnecessary side effects like BP, Pain in joints, laziness etc. And the person is perceived as healthy, more flexible, active etc.. The same way ,Lean manufacturing means , manufacturing system is free from unnecessary fats like high inventory, high rejection, high breakdowns or line stoppages factors etc which leads to more flexible in delivery, less lead time,first time right , low cost of manufacturing and free flow of communication etc .
  6. 6. 6 What is Lean System Thinking ? Similarly, Lean System or Lean Organization means free from unnecessary waste in the entire value chain starting from extended supply chain system to customer, even after sales service system . Lean system Thinking is more than application of Tools and Techniques. It is a culture of continuous improvement or a way of working or winning mindset of everyone working for the organization.
  7. 7. 7 Misconception about Lean / Lean Manufacturing
  8. 8. 8 Misconception about Lean? There are some misunderstandings about lean and its application .Some of the misconception about lean are •Lean means cost cutting No. Cost cutting means cutting down the expenses whether it is essentially required or not .Lean is focusing more on cutting down the waste or unnecessary expenses, which is not adding value to customer ,inturn to business. •Lean is for manpower productivity Partially true. Lean is focusing on waste elimination or reduction in any form like man, machine, material, and method. By eliminating or reducing wasteful activities in format, manpower, material, machine, or process efficiency is improved. Hence, it is not only on manpower productivity alone.but for all factors of manufacturing. •Lean is applicable for manufacturing organization only No. As said, lean is all about waste elimination. As long as activities are there in any organization, waste will be present .Wherever waste is there, Lean is applicable. It is not only applicable for manufacturing.
  9. 9. 9 •Lean can be implemented only in large organization No. One of the assumptions is that implementing lean requires investment and only large organization can afford .Actually, understanding the lean concept, tools, and techniques is easy and does not require investment. Lean thinking and practices can be implemented in any size of the organization. In fact, Lean can be easily implementable in small and medium scale organization because of its size and activities involved. •Lean is all about 5S and Visual Boards No. Most of the people think that doing Housekeeping (5S) and putting display boards is lean manufacturing. Ofcourse fundamental requirement for waste elimination is housekeeping , ie keeping the workplace in order ,but that alone is not constituting Lean system. Lean is beyond implementing housekeeping practices. Similarly visual management is one of the elements of lean system in which display and control boards are part of it. Hence, Lean is beyond 5S and visual boards or even it is beyond any lean tools and techniques. It is philosophy and way of conducting daily management.
  10. 10. 10 •Lean is for during lean seasons One of the most misconception is that lean implementation is for not peak season as everyone is busy with activities and lean is for during lean season. Lean is nothing do with the busyness of people either peak or lean period. Lean is for waste elimination or reduction. In fact, implementing and practicing lean concepts during peak period may give more savings. •Lean can be useful during recession Same as above assumption. There is no right time as recession or booming economic environment. In fact, if Lean is understood well and lean thinking is implemented internally, external factors will not affect the organization much.
  11. 11. 11 •Lean is only for automobile and ancillary organizations No. As said, Lean is not specific to any industries. Wherever there are activities involved, Lean can be implementable. Why it is popular in auto and ancillary industries, because the lean concept was evolved and tested first in auto industries. •Lean implementation is time bound No. No organization can claim that they implemented lean system thinking ,because fundamental of lean is zero waste, zero accident , zero defects and it is impossible to achieve and thus it calls for continuous improvement or excellence journey .Lean implementation is a process or journey .. It is not a destination.
  12. 12. 12 Where can i apply Lean concepts ? Typical Foundry Process
  13. 13. 13 Origin and Brief history of Lean / Lean Manufacturing
  14. 14. 14 Foundation of Toyota Jidoka JIT – World War II 1950 1960 1970 1980 1990 2000 TPS as System Supplier Development Transplants  Source : Toyota 1933 The “founders” of Lean: History of Toyota and their production system TPS 1924 : Sakichi Toyoda developed an automatic loom with quality stop1924 : Sakichi Toyoda developed an automatic loom with quality stop 1933 : Kiichiro Toyoda (son) left the Toyoda Automated Loom Company and founded the Toyota Motor Corporation 1933 : Kiichiro Toyoda (son) left the Toyoda Automated Loom Company and founded the Toyota Motor Corporation 1939: Faced with a small and highly diversified Japanese automotive market and low capital – especially after the Second World War 1939: Faced with a small and highly diversified Japanese automotive market and low capital – especially after the Second World War 1950 :Taiichi Ohno (Production Manager) developed the “Toyota Production System”, which main focus is on “Just-in-time,” Jidoka (Intelligent Automation), and Kaizen (Continuous Improvement) 1950 :Taiichi Ohno (Production Manager) developed the “Toyota Production System”, which main focus is on “Just-in-time,” Jidoka (Intelligent Automation), and Kaizen (Continuous Improvement) Toyota Motor Company achieved efficiency in mass production in an environment that is highly diversified and marked by low piece numbers. Toyota Motor Company achieved efficiency in mass production in an environment that is highly diversified and marked by low piece numbers. Sakichi Toyoda Kiichiro Toyoda Taiichi Ohno
  15. 15. 1515 The “founders” of Lean: History of Toyota and their production system TPS
  16. 16. 1616 Why Lean / Lean Manufacturing ?
  17. 17. 17 Why there is need for Lean in today’s context ?
  18. 18. 18  Globalization  Competition Technology Variants On time delivery  No inventory Speed  Towards Zero defect
  19. 19. 19 Internal Challenges for organization… Reduce Cost Improve Quality “Cheaper”“Faster” Reduce Lead Time “Better” Net Margin Production Costs
  20. 20. 20 What is Purpose of Organization ?
  21. 21. 21 Maximizing Value to Stakeholders Value is different for each stakeholder !!!
  22. 22. 2222 Understanding Value / Waste in manufacturing
  23. 23. 23 What is VALUE ?
  24. 24. 24 In Manufacturing Context , Value is defined thru Waste
  25. 25. 25 Definition of Waste  Useless Consumption or Expenditure  Use of Resources without adequate return Waste is alternatively termed as NON VALUE ADDED
  26. 26. 26 Customer - ask for Product / Service Customer - get Product / Service Activities adding value from Customer’s view & ready to pay Activities needed for statutory regulations & customer not ready to pay. Activities are not needed and wasteful. customer not ready to pay Example: change shape of material , aesthetic improvement , protection Example: business process automation, documentation, accounting ,auditing certification Example: storage , moving , inspection, rectification Lead Time =Money Customer to Customer Process
  27. 27. 27 Customer - ask for Product / Service Customer - get Product / Service Activities adding value from Customer’s view & ready to pay Activities needed for statutory regulations & customer not ready to pay. Activities are not needed and wasteful. customer not ready to pay Lead Time =Money Goal is maximize VALUE ADDED and eliminate NON VALUE ADDED (WASTE) activities In Customer to Customer processes Customer to Customer Process
  28. 28. 28 “Value addition” in Shop Floor
  29. 29. 29 Let us understand Value Chain ……
  30. 30. 30 Material cost Process Cost Factory Fixed cost Quality Cost Non Factory Fixed Cost Logistics Cost TAX Profit MRP Typical Value Chain in Manufacturing setup
  31. 31. 31 Material cost Process Cost Factory Fixed cost Quality Cost Factory Non Fixed Cost Logistics Cost TAX Profit MRP Rs 500 Rs 350 Rs 2500Rs 300Rs 250 Rs 200 Rs 100 Rs 300 Rs 500 Where do Manufacturing have control ??? Typical Value Chain in Manufacturing setup
  32. 32. 32 Material cost Process Cost Factory Fixed cost Quality Cost Factory Non Fixed Cost Logistics Cost TAX Profit MRP By competition & demand / supply By Statutory and Tax regulations Always on pressure to meet Stakeholders ExpectationPartial Control by Factory Where do Manufacturing have control ??? Typical Value Chain in Manufacturing setup
  33. 33. 33 Material cost Process Cost Factory Fixed cost Quality Cost Factory Non Fixed Cost Logistics Cost TAX Profit MRP Rs 500 Rs 350 Rs 2500Rs 300Rs 250 Rs 200 Rs 100 Rs 300 Rs 500 Typically 45-65 % of Value Chain Cost –under manufacturing Control Typical Value Chain in Manufacturing setup
  34. 34. 34 How to improve value in value chain ?
  35. 35. 35 Excellence in Manufacturing Through Lean Concepts and application
  36. 36. 36 How we achieve excellence in Manufacturing …. 5 S Lean Manufacturing TPMTQM Continuous Improvement (Kaizen) Leads to VALUE Maximization to Stakeholders Key Initiatives : Six sigma Q Total Employee Involvement
  37. 37. 3737  High Productivity  Consistent Quality  Cost-effective  On time Delivery  Safe for people to work  High People Morale Measure of Excellence -PQCDSM
  38. 38. 38 Strength of chain depends on the weakest link of the chain
  39. 39. 39 Typical waste in manufacturing process / setup
  40. 40. 40 Typical Wastes in Manufacturing System 1. Over production 2. Over processing 3. Defective Product / Rejection/ Rework 4. Material and Man Movement 5. Inventory 6. Idle Equipment 7. Delay / Waiting for material / man / decisions 8. Unnecessary motion in workplace operations Mostly all the wastes are interrelated
  41. 41. 41 Type of Waste Description / Examples Causes for Waste Over Production Producing more than demand Producing faster than required speed Long Setups in Equipments , Unbalanced Processes Over Production
  42. 42. 42 Type of Waste Description / Examples Causes for Waste Over Processing Processing more than specification or requirement Process not defined well, communication gap ,lack of work standardisation Over Processing
  43. 43. 43 Type of Waste Description / Examples Causes for Waste Inventory Either in WIP or as finished goods Unbalanced processes ,Time delay, Unrealistic demand / supply, Quality issues , Unreliable Equipment, scheduling Inventory
  44. 44. 44 Type of Waste Description / Examples Causes for Waste Movement Moving the product from one location to another . Process layout ; Centralized storage Material or Man Movement
  45. 45. 45 Type of Waste Description / Examples Causes for Waste Motion Unnecessary Operator Motion in workplace Poor Workplace Layout, Non standardized work methods,Lack of ergonomic designed workplace Motion in workplace
  46. 46. 46 Type of Waste Description / Examples Causes for Waste Defectives / Rework / Rejections Inspect ,segregate , rework and Rejection Incapable processes / equipment, Lack of trained people , Poor maintenance Quality issues
  47. 47. 47 Type of Waste Description / Examples Causes for Waste Idle Equipment Equipment not performing value added process or underutilized Over capacity , Poor maintenance, scheduling variability, Changeover loss Idle Equipment
  48. 48. 48 Type of Waste Description / Examples Causes for Waste Delay or waiting People not working or idle due to waiting for material / machine / decision or planning problems Unbalanced process or schedule variability Delay or waiting
  49. 49. 49 Type of Waste Description / Examples Causes for Waste Over Production Producing More than demand Producing soon than required speed Long Setups in Equipments , Unbalanced Processes Inventory Either in WIP as finished goods Unbalanced processes ,Time delay, Unrealistic demand / supply, Quality issues , Unreliable Equipment, scheduling Transport Moving the product from one location to another Process layout ;Centralized storage Motion Unnecessary Operator Motion Poor Workplace Layout, Non standardized work methods Quality issue Inspect ,segregate , rework and Rejection Incapable processes / equipment, Lack of trained people , Poor maintenance Idle Equipment Equipment not performing value added process or underutilized Over capacity , Poor maintenance, scheduling variability Delay or waiting People not working or idle Unbalanced process or schedule variability Summary of wastes
  50. 50. 50 Typical Lean Tools for eliminating / reducing waste in manufacturing process / setup
  51. 51. 51 Housekeeping and Visual Management Quick Changeover Methodologies Flow Manufacturing Mistake Proofing Techniques Application of Problem Solving Methodologies, Tools and Techniques Application of Ergonomics
  52. 52. 52 Tool / Technique Description Purpose 5S Systematic approach for housekeeping that ensure the parts , tools are in right place with right identification To reduce waste on Motions and searches .also to ensure safe work environment Cellular Manufacturing Organizing work group of 3 to 15 people in manufacturing family of products from end to end. Simple workflow usually results in improvement in quality, lead-time and inventory. Continuous flow It is a concept of moving a product throughout value chain at constant rate rather than in batches Synchronized production .no delay or temporary storage results in other side effects Quick Changeover Uses work simplification of each setup process and reduce waste and time. Also makes the changeover process as more predictable To reduce changeover time and then encourage low batch production. Also improves the availability time of equipment or facility Mistake Proofing Uses wide variety of technique to prevent mistake in process To avoid rejections or rework and also enhances the availability TPM Uses predictive and preventive maintenance technique with problem solving approach To increase availability , process capability of facility Lean Tools
  53. 53. 53 Overall Equipment Effectiveness
  54. 54. 54 OEE provides simple, consistent, and proven way of measuring the effectiveness of any productivity initiatives or lean manufacturing programmes or TPM programmes
  55. 55. 55 What is OEE? Overall Equipment Effectiveness (OEE) is one of the best METRIC used for monitoring and improving the Efficiency of manufacturing processes. The manufacturing processes can be machining, fabrication, assembly line etc OEE is a simple, holistic, and powerful metric. OEE takes into account the typical sources of manufacturing productivity losses and groups them in THREE categories like AVAILABILITY, PERFORMANCE, and QUALITY. By grouping so in different categories, it distills the complex manufacturing losses into simple metrics .It helps us to understand the losses with clarity and helps to choose the right lean tool for each loss. In addition, it helps us to verify the effectiveness of action against each manufacturing productivity losses
  56. 56. 56 Elements of OEE : Availability: It measures manufacturing productivity losses from down time .i.e. the events that stops planned production like machine breakdown, changeover, material not available, operator not available etc. Performance: It measures manufacturing productivity losses from slow cycles .i.e. the factors that cause the process to operate at less than the standard or possible speed. Quality: It measures manufacturing productivity loss from manufactured parts do not meet the specification or quality requirements. Together all three measure like Availability, Performance and Quality combine into one FACTOR as OEE Score .This one complete measure OEE reflects the manufacturing efficiency and effectiveness.
  57. 57. 57 World class OEE for discrete manufacturing process Generally, world class OEE for discrete manufacturing process is considered 85 % or greater than 85 % It is arrived from Availability (90 %) * Performance (95%) * Quality (100 %) = 85 % Generally, from the study, it is indicated that average OEE score for discrete manufacturing process is around 60 %.If we aim for excellent OEE standard of 85 %, then we can realize that there is so much opportunity to move from 60 % to 85 % through loss elimination or reduction initiatives.
  58. 58. 58 Calculating OEE OEE is calculated from three categories like availability, performance, and quality OEE = Availability * Performance * Quality Pl note that OEE is not calculated as addition or average of three categories, it is calculated by multiflying three categories For example Availability = 75 % Performance =90 % Quality = 89 %, Then OEE= 75 % * 89 % * 90% = 60 %
  59. 59. 59 Availability: Availability is the ratio of actual operating time to planned operating time …. It measures the downtime loss Availability = Operating Time / Planned Operating Time Operating time = planned operating time – downtime loss For example Availability =Operating Time (300 min) / Planned Operating Time (400 min) =75 % Planned Operating time: Available time per shift – planned shutdown time Available time per shift Say 8 hrs i.e. 8 * 60 = 480 min
  60. 60. 60 Planned shutdown time It is planned shutdown for valid reasons like morning meetings, lunch break; refresh break, scheduled maintenance check etc For example , Morning meeting – 10 min ; Lunch break – 30 min ;Refresh break – 20 min Scheduled maintenance check – 10 min Hence planned shutdown time = 10 + 30+20+ 10 =70 min Hence, planned operating time is 480 -70 = 410 min Actual Operating Time Planned operating time – down time =410 – 110 =300 min
  61. 61. 61 Break up of down time (110 min ) can be Machine breakdown -20 min Operator not available – 30 min Material not available – 10 min Changeover loss – 50 min Hence, Availability = actual operating time / planned operating time =300/ 410 = 73 % Performance: Performance is the ratio of actual qty produced during operating time / standard qty can be produced during operating time. From above example, Actual operating time = 300 min
  62. 62. 62 Say std time per piece = 3 min So standard qty can be produced during operating time = 300/3 =100 pieces Suppose, in a given operating time, actual qty produced is 270 pieces, then Performance = 270 / 300 =90 % Quality: Quality is the ratio of good qty produced to total qty produced. For example, Total qty produced = 270 pieces Good qty = 240 pieces Quality = 240 / 270 =89 %
  63. 63. 63 Important Steps in OEE Improvement Process •Identify the facility or equipment or line to be measured •Understand the current OEE level •Collect shift wise/ day wise data for specified period •Identify the loss pattern •Classify the losses in each category •Prioritize the losses •Choose the right lean tool for elimination or reduction of losses •Implement the solution •Monitor the OEE trend and loss
  64. 64. 64 Sample OEE Tracking format Location : Machining / Press /Assembly / Heat treatment 1 Shift A Shift B Shift C Utilisation Reason for Non Utilisation Setting chaneover in min 20 30 Machine Breakdown in min 35 54 Operator not available in min 35 34 57 Material not available in min 40 ….. …… Total Non Utilised min 130 64 111 Total available time min 480 480 480 Utilisation % 0.73 0.87 0.77 Performance No of minutes machine used 350 416 369 Standard Tonnage / used minutes 10 11.8 10.54 Actual Tonnages produced 8 9 10 Reason for Performance loss …… ……. Performance % 0.8 0.76 0.95 Quality Total Tonnages produced 8 9 10 Quality acceptable Tonnages 6 8.2 9 Reason for Quality Issues ….. ….. Quality % 0.75 0.91 0.9 OEE 43.75 60.23 65.63 Sample OEE format
  65. 65. 65 Why do lean Implementation fail ?
  66. 66. 66 Lack of CEO and Top Management involvement Not Educating or creating awareness about Lean and its purpose Delegation to down without support Changing priority based on the production volume Not understanding the Big Picture of organizational problem Keen on technical knowhow of tools and not on implementation Lack of people involvement or engagement No Indepth implementation of tools Lack of facilitation and patience Aversion to experimentation and trial
  67. 67. 67 10 Commandments for Transformative Results .. 1. Challenge Fixed ideas 2. Think how it can be done rather it won’t 3. Deny status quo 4. Don’t seek perfection 5. Correct Mistakes as soon as they found 6. Innovation does not need money 7. Problems are opportunities 8. Ask WHY 9. Ideas of 10 are better than knowledge of 1 10.Innovations never ends
  68. 68. 68 Steps in implementing lean initiatives
  69. 69. 69 Steps in Implementing Lean Initiatives Awareness creation on the need Commitment and demonstration by Leaders and Senior Management Selection of Champions or External Facilitator Set Key Performance Indicators and Targets Training and education on Concepts ,Tools and Techniques Implementation and Handholding the team Review the KPI’s and Facilitation
  70. 70. 70 Some Turn around case examples in our clients business Industry Results delivered Casting and Machining •Business turnover increase by 45%, From loss making to profitability; •Customer service improvement from 60 % to > 85% Auto component machining •Manufacturing cost reduction by 7 % •Inventory reduction by 50 % Auto Vehicle manufacturing 40 % reduction in delivery lead time Casting and Machining 35 % growth in sales turnover Auto chain manufacturing 15 % increase in plant output in 4 months Casting and machining Profitability increase by 3 times Machined comp manufacturing Increase in profitability by 2% despite sales volume drop
  71. 71. 71 Thank you for your Interest To understand more about its relevance to your business, please mail us to ganesh@winningmindssolutions.com mobile : +91 90259 33666 For Business and Life Excellence articles and case studies please visit website : www.winningmindssolutions.com

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