Agenda Lean Methods Benefits of L6S Description of Lean Strategic Viewpoint Operational Level Six...
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Agenda Lean Methods Benefits of L6S Description of Lean Strategic Viewpoint Operational Level Six Sigma Description of 6s methodology 6s tools and techniques Implementation of L6S 1
Agenda Lean Methods Benefits of L6S Description of Lean Strategic Viewpoint Operational Level Six Sigma Description of 6s methodology 6s tools and techniques
Agenda Lean Methods Benefits of L6S Description of Lean
Strategic Viewpoint Operational Level Six Sigma Description of 6s
methodology 6s tools and techniques Implementation of L6S 1
Slide 2
2 Lean Enterprise Key Drivers Total Organizational Buy-in Lean
Manufacturing Techniques Manufacturing flexibility Process velocity
Total Quality Management Products Processes Sales, Operations, and
Inventory planning Forecasting Production Smoothing Capacity
Planning Lean replenishment New Product Introduction Delivery
Performance
Slide 3
3 Lean Six Sigma Six Sigma Variation Focus Rigorous problem
solving and control (DMAIC) Process and product design (DFSS) Data
driven: Y=f(X) Process Control Lean/Kaizen Focus on eliminating
waste Cycle time and inventory focus Redesign processes/Standardize
Broad involvement Common sense approach based on observation
Slide 4
4 Six Sigma Lean/Flow Reduced Cycle Time Improved On-Time
Delivery Reduced New Product Lead Time Improved Customer
Satisfaction Improved Employee Flexibility Improved Capital
Utilization/Capacity Improved Customer Responsiveness Reduced
Defects Improved Capability Improved Yields Improved Quality Lean 6
Sigma Synergy Reduced Cycle Time Reduced Defects Improved
Capability Improved On-Time Delivery Reduced New Product Lead Time
Improved Customer Satisfaction Improved Employee Flexibility
Improved Capital Utilization/Capacity Improved Yields Improved
Quality Improved Customer Responsiveness Lean 6 Sigma Synergy
Slide 5
5 Improve Response Time Reduce Cycle Time Reduce WIP Reduce
Quality Defects Improve Supplier Quality Improve Material
Availability Establish Standardized Work Improve Admin. & Mfg.
Process LEAN 66 Balanced L6S tool use
Slide 6
6 Financial Implications Income Statement Balance Sheet
Financial Implications
Slide 7
7 MFG. SPACE REDUCTION REDUCE INVENTORY EQUIPMENT SIZE,&
REQUIREMENTS & NUMBERS REDUCED 20% - 30% LEAD TIME REDUCTION
INCREASING PRODUCTIVITY Data from 1,500 nation wide manufacturing
events: Avg lead time reduction: 52% Avg productivity increase: 24%
Avg WIP decrease: 43% Avg reject rate decrease: 38% Avg floor space
decrease: 32% Source: Quality in Manufacturing, Mike Peterman, Jan
2001, V12, p24
Slide 8
8 Raw Material Product Costs Direct Labor Manufacturing
Overhead Selling and administrative Raw Material Inventory Work In
Process Inventory Finished Goods Inventory Mfg Costs Balance Sheet
Cost of Goods Sold Selling and Administrative expenses Income
Statement Current Assets Financial Implications Sales
11 Cost of Quality Prevention Costs Quality Engineering Quality
training Quality Circles SPC Activities Appraisal Costs Incoming
test & inspection Supplies for inspection Maintenance of test
equipment Internal Failure Costs Net cost of Scrap Rework labor
& Overhead Downtime Analysis of cause of defect External
Failure Costs Field servicing Warranty Product recalls Returns and
allowances
Slide 12
12 Lean Methods
Slide 13
13 Improvements HBR; Decoding the DNA of the Toyota Production
System; Sep-Oct. 1999 HBR; Learning to Lead at Toyota; May 2004
Companies often implement tools of TPS without the underlying
principles. Tools aid in the implementation of a temporary best
practice until a new problem is discovered.
Slide 14
14 Toyota Production System Rule 1- How people work is highly
specified Content Sequence Timing Outcome Standard Operating
Worksheet Takt time
Slide 15
15 Toyota Production System Rule 2- Every customer-supplier
connection must be direct No question on Supplier (internal or
external) Number of units required Timing of delivery Kanban
Service Requests
Slide 16
16 Toyota Production System Rule 3- Pathway for every product
and service must be simple and direct Flow along a simple specified
path Does not mean each path is dedicated to only one product
Product Process Matrix Rule 4- Improvement must be made in
accordance with the scientific method at the lowest possible
level
Slide 17
17 Improvements People at all levels Assembly line operators
Supervisors Management Executives Structure work and improvements
as experiments
Slide 18
18 Improvements Active experimentation for improvement Standard
work Gaps between what is expected through improvements and what is
actually obtained become immediately evident. Operators are
responsible for operational improvements Management helps them
understand that responsibility and facilitate improvements.
Slide 19
19 Example of Formal CI (Kaizen) Engines Transmissions
Eng:Trans Assy Group 1 Group 2Group 3 Group 5Group 4 Group CI
(Weekly) Operational Committee (Monthly) Steering Committee
(Quarterly)
Slide 20
20 Batch vs. Lean Batch (Traditional) This was a push system
driven by forecast with each process responding at its own pace An
order for 900 units over a month gets produced at the end of the
month when all parts are received Characteristics: Work orders,
weekly or monthly production buckets, hot lists Results: Large WIP,
Hidden bottlenecks, High defect rates, Long lead times Lean Nothing
is moved or produced until the previous process is completed.
Scheduled delivery of parts spread out over a month. Say 45/day.
Results: Only necessary amount is produced, waste is visible,
customer first mentality
Slide 21
2004 Pharogen, Ltd 21 RAW MATERIAL FINISHED PRODUCT TO CONSUMER
SEA OF INVENTORY POOR SCHEDULING MACHINE BREAKDOWN QUALITY PROBLEMS
LINE IMBALANCE ABSENTEEISM LACK OF HOUSE KEEPING LONG SET-UP TIME
SUPPLIER DELIVERY COMMUNICATION PROBLEMS LONG TRANSPORTATION Hidden
Waste
Slide 22
2004 Pharogen, Ltd 22 RAW MATERIAL FINISHED PRODUCT TO CONSUMER
SEA OF INVENTORY POOR SCHEDULING MACHINE BREAKDOWN QUALITY PROBLEMS
LINE IMBALANCE ABSENTEEISM LACK OF HOUSE KEEPING COMMUNICATION
PROBLEMS LONG TRANSPORTATION LONG SET-UP TIME SUPPLIER DELIVERY
Exposed Waste
Slide 23
23 Process Efficiency Reducing unnecessary wait-time between
value added steps Process cycle efficiency= Value Added Time/Total
Lead Time
Slide 24
24 Lean Six Sigma Journey Status Quo Lean Methods
Implementation Six Sigma Projects: Implementation
Slide 25
25 Lean Six Sigma strategy Time 6 Project Time 66 Company
Performance Process Improvement Project Implemented Maintenance of
Process Performance CI 6 Sigma Data driven methodology to magnify
impact of process improvements attained through lean efforts
Control techniques applied to sustain improvements and minimize
their erosion Standardize improvements to maintain gains on Key
Process Indicators Continuous Improvements (Kaizen) Use small teams
to optimize process performance through rapid incremental
improvements Apply intellectual capital of team members intimate
with process Company Performance
Slide 26
26 Customer Order Cycle Time Completed vs. Daily Production
Schedule Yield Linearity Workforce Skill Speed to Market: Product
Development Process Continuous Improvement: Savings
Measurements
29 Lean Manufacturing Company Tools Value Stream Mapping TPM
5s/Workplace Organization Standardized Work Visual Organization
Seven WastesQuality at the SourceTeams KaizenQuick ChangeoverKanban
TaktOne Piece FlowPull Cellular
Slide 30
30 The 5 S To Sort Eliminate whats not absolutely necessary To
Standardize Improvement of the workstation. Be organized to reduce
clutter. To Set in Order Ensure space for each thing, and a thing
for each space. No more searching. To Shine Maintain a clean and
orderly space to make problems easily identifiable. Eliminate
rejects and scrap. To Sustain Maintain continuous effort. This is a
way of life. Visual Control and the Workstation
Slide 31
31 Lean Methods: 5S o Sort o Shine o Set in Order o Standardize
o Sustain
Slide 32
32 Lean Methods: 5S Clear, shiny aisle ways Color coded areas
No work-in-process ( WIP ) One-Piece Flow Operator Methods
Sheets
Slide 33
33 Lean Methods : Visual Workplace Traditional Toolbox and
workbench set up. Access to control panel difficult. Tools now on
tool board. Tool outline makes it easy to tell when a tool is out
of place or missing. Better access to control panel.
Slide 34
34 Lean Methods : Poke-Yoke Poka-yoke systems consist of three
primary methods: 1. Contact 2. Counting 3. Motion-Sequence Each
method can be used in a control system or a warning system. Each
method uses a different process prevention approach for dealing
with irregularities. Toggle Switches
Slide 35
35 Lean Methods : Poke-Yoke Poka-yoke systems consist of three
primary methods: 1. Contact 2. Counting 3. Motion-Sequence Each
method can be used in a control system or a warning system. Each
method uses a different process prevention approach for dealing
with irregularities. Count the number of parts or components
required to complete an operation in advance. If operators finds
parts leftover using this method, they will know that something has
been omitted from the process.
Slide 36
36 Lean Methods : Poke-Yoke Poka-yoke systems consist of three
primary methods: 1. Contact 2. Counting 3. Motion-Sequence Each
method can be used in a control system or a warning system. Each
method uses a different process prevention approach for dealing
with irregularities. The third poka-yoke method uses sensors to
determine if a motion or a step in a process has occurred. If the
step has not occurred or has occurred out of sequence, the the
sensor signals a timer or other device to stop the machine and
signal the operator.
Slide 37
37 THREE PRINCIPLE RULES WORK TO TAKT TIME ONE PIECE FLOW PULL
SCHEDULING Lean Line Design
Slide 38
38 Create Process Flow Charts Develop Standard Operation
Worksheets Define Product/Process Matrices Create Multi-Product
Process Flow Charts Calculate Takt Review Actual Requirements vs.
Design Develop Standard Operations Create the Facility Layout
Define Cells Lean Line Design
Slide 39
39 Lean Methods Process Flow Charts Understand current state
Improve process flow
Slide 40
Car Assembly PH1001,2,4 Jorge Monreal Taiichi Ohno 060Bolt
underside of engine to frame 20.0 20.0 59.4 050 Bolt driver cabin
to safety capsule 6.2 3.4 39.4 Torque to 80 ft-lbs 040Bolt rear
engine & shield to frame 4.2 3.2 30.7 Torque in sequence per
OMS 030 Bolt safety capsule to frame 6.2 2.4 24 Torque to 20 ft-lbs
020 Bolt hood to Mainframe 6.2 6.2 15.3 Torque to 20 ft-lbs 010 X
Place mainframe in assy fixture 4.1 4.1 6.6 Wear safety helmet 27.9
59.4 59.4 015 X Obtain Hood 2.5 4.1 9.1 Do not scratch or damage
025 X Obtain safety capsule 2.5 6.2 17.8 Ensure safety decals are
on 035 XObtain rear engine & shield 2.5 2.4 26.5 Check for
proper option: turbo/NA 045 XObtain driver cabin 2.5 3.2 33.2 005 X
Carry mainframe to assembly fixture 2.5 2.5 Ensure parts to BOM
Standard Operation Worksheet
Slide 41
41 Product/Process Matrix LubeTestAssyPaintShip JEEP XXXX SUV
XXX Yugo XX Van XXXX Pinto XX AssyPaintLubeTestShip Van XXXX SUV
XXX Jeep XXXX Yugo XX Pinto XX SUVs Lemons Product Family
Slide 42
42 Define product families based on products with similar
process flow charts Assy Paint Test Ship Jeep Yugo SUVLube Van
Pinto Multi-Product Process Flow Charts Used for Line Design
Slide 43
43 Takt Work Time/day (minutes/day) Takt Time = Customer
Requirements/day (units/day) Every 9 minutes and 33 seconds, each
operation must be completed. One shift: 8 hours x 60 min/hr = 480
mins Lunch = - 30 mins 2x breaks = - 30 mins Total available time
per shift = 420 mins CUSTOMER REQUIREMENTS: 45 units/day (Daily
Production Schedule) 9 min. 33 sec. Takt Time = 420 Min/Day 45
Units/Day = Takt Time
Slide 44
44 Demand, Capacity, Production Leveling Demand Time Production
Schedule Capacity Time 20% 45 units/day Yr 1 Product Family: SUVs
(Products Van, Jeep, SUV)
Slide 45
45 Mixed Model Production Product Family: SUV Demand per month
(20 working days): 900 units (Jan-Feb) Per shift demand: 45 units
Takt = 9.33 minutes Possible Model Mix: 50% Vans; 25% SUVs; 25%
Jeeps Vans: 0.50 x 900 = 450 Vans SUVs: 0.25 x 900= 225 SUVs Jeeps:
0.25 x 900= 225 Jeeps Daily Production sequence: 45 units
Van-Van-SUV-Jeep-SUV-Van-SUV-Jeep-Van-Van-SUV
Slide 46
46 Group into equal splits For Two workstations Split= 59.4/2 =
29.7 30.7 28.7 Car Assembly PH1001,2,4 Jorge Monreal Taiichi Ohno
060Bolt underside of engine to frame 20.0 20.0 59.4 050 Bolt driver
cabin to safety capsule 6.2 3.4 39.4 Torque to 80 ft-lbs 040Bolt
rear engine & shield to frame 4.2 3.2 30.7 Torque in sequence
per OMS 030 Bolt safety capsule to frame 6.2 2.4 24 Torque to 20
ft-lbs 020 Bolt hood to Mainframe 6.2 6.2 15.3 Torque to 20 ft-lbs
010 X Place mainframe in assy fixture 4.1 4.1 6.6 Wear safety
helmet 27.9 59.4 59.4 015 X Obtain Hood 2.5 4.1 9.1 Do not scratch
or damage 025 X Obtain safety capsule 2.5 6.2 17.8 Ensure safety
decals are on 035 XObtain rear engine & shield 2.5 2.4 26.5
Check for proper option: turbo/NA 045 XObtain driver cabin 2.5 3.2
33.2 005 X Carry mainframe to assembly fixture 2.5 2.5 Ensure parts
to BOM Line Splits Standard Operations Wkst 1 Wkst 2
Slide 47
47 Operator Methods Sheets
Slide 48
48 Operator training Matrix Name Operation 10-Mnfrm Operation
20-Hood Assy Operation 30- Seat Assy Operation 40-Engine Assy
Operation 50-Cab Assy Operator One X 4/14/04 X 5/20/04 X 6/20/04
Operator Two X 5/20/04 X 4/14/04 X 6/20/04 Operator Three X 5/20/04
X 4/14/04 X 6/20/04 Operator Four X 5/20/04 X 4/14/04 X
6/20/04
Slide 49
49 Flexible workforce People move to where work needs to be
performed Help out in case of slow down: above or below Reduce
repetitive stress Rotate positions every 4-6 months Allows for some
imbalance in the line Operator training Matrix
Slide 50
50 MILLING BORING DRILLDRILL / TAP HONE FINISH One operator for
eight machines Tool room support changes tools Standard work-
Operator Sequencing Standardized Tooling * Set up reduction * Point
of use Manufacturing Cells: Machine Shop TAKT TIME 9.3 MIN Send to
Engine Assy line every 9.3 Minutes
Slide 51
51 MAIN ASSY. LINE MACHINE SHOP KIT CARTS KIT BINS TOOL RACKS
PART CARTS TEST PART KIT CART PARTS TOOL & PART KIT RACKS
ENGINE BLOCK / PISTON & CRANK- SHAFT MANUFACTURING
MANUFACTURING SUPPORT MAINTENANCE * LINE STOPPAGES * MACHINE
MALFUNCTION * FACILITY SERVICES ENGINE ASSY. LINE * ASSEMBLY OF
FIVE ENGINE MODELS TAKT TIME 9.3 MIN. TAKT TIME 9.3 MIN ENGINE TEST
(ALL MODELS) DIRECT SHIP TO ASSEMBLY LINE EVERY 9.3 MIN TAKT TIME
9.3 MIN TOOL ROOM * FILLS THE BINS, RACKS EVERY TWO HOURS. *
SUPPORTS ASSEMBLY LINE Line Replenishment Person
Slide 52
Continuous Flow Traditional Batch Manufacturing Single Piece or
Continuous Flow Manufacturing 3-4-52
Slide 53
53 Lean Line Design Engines Transmissions Eng:Trans Assy
Operators are crossed-trained: One up/One down PH2534 PH5345 PH5213
PH5015 Footprints (Large Parts) Kanban Replenishment PH5016 Color
coded Takt Time = 9 min. 33 sec. KIT CARTS RHLH
Slide 54
54 Kanban Design Material Storage Supermarket A A B B C C A A B
B C C D DA A BBCCDD
Slide 55
55 Kanban Design A A BBCCDD Full Empty Full Two identical bins
at the line Same card on both containers Must cover the delivery
time to obtain additional material Replace when empty Requires
disciplined execution