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Kenneth J. Andrews EMP-5179-1-1
Manufacturing Systems: EMP-5179
Dr. Ken AndrewsHigh Impact Facilitation
Fall 2010
Kenneth J. Andrews EMP-5179-1-2
www.highimpactfacilitation.com/EMP-5179/OttawaU.htm
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Logistics
Class times
Breaks
After-class activities
References
Assessment
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Program Overview (Modules & Weeks)
7. Quality at Source
8. Customer Ints.
9. QFD & DFM
10. Teams & Change
11. Term Papers
1. Intro. ToManuf. Systems
2. Lean & JIT
3. Push vs. PullProcess Impr.
4. TQ Tools & Techs.
5. Value Stream Maps
6. Manuf. Metrics 12. Final Exam (Dec 13)
No Class on Nov 8?
No Class on October 11
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Every Company has Three Types of Management Systems
Technology Management
Systems
People Management
Systems
BusinessManagement
Systems
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What is a “Manufacturing System”?
Interactions of many processes, products and design decisionsmade in the engineering of a product.
Machine requirements planningProcess planningProduction planningConcurrent engineering
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Craft Manufacturing
Late 1800’s
Car built on blocks in the barn as workers walked around the car.
Built by craftsmen with pride
Components hand-crafted, hand-fitted
Excellent quality
Very expensive
Few produced
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Mass Manufacturing
Assembly line - Henry Ford 1920s
Low skilled labor, simplistic jobs, no pride in work
Interchangeable parts
Lower quality
Affordably priced for the average family
Billions produced - identical
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Lean Manufacturing
Cells or flexible assembly lines
Broader jobs, highly skilled workers, proud of product
Interchangeable parts, even more variety
Excellent quality mandatory
Costs being decreased through process improvements.
Global markets and competition.
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Manufacturing Issues
Falling sales – where to find new customers?
Input costs increasing, sales income falling
No time to introduce new methods
No money to develop new products / processes
How to increase output without increasing costs?
Too small to compete OR
Too big to react quickly to changing market
Increasing complexity of legislation and regulation
What can I / we / anybody do about it?
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How Does Your Company Compete?
Price
Innovative Products
Customised and Tailored Solutions
Branded Products
Removing hassle from the Customer
Interpersonal Relationships
‘Informal’ homeworkthinking assignment:
1-2 examples for each.
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Company Actions: What Can We Do?
• Fact-based management (Performance Measurement, KPIs)
• Do you know your competitive position?
• Do you know your industry best practice?
• Do you have a balanced scorecard?
• Do you have a means of monitoring critical inputs and processes?
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Company Actions: What Can We Do?
Mobilise your people
• Process focus
• Visual management
• Lean manufacturing
• Six Sigma
• Teamwork
• Delegation / Respect / Trust
• Change manifesto
Simple Tools and Techniques –
Not Rocket Science!
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What’s Lean Thinking
Looking at manufacturing as three primary processes that create value for consumers: product development, order to delivery, service through the product’s life cycle.
Asking what value really is from the standpoint of the customer. (The purpose of the process.)
Asking how the process currently performs and how it could perform better.
Asking what people and business processes are needed to support the value creating processes.
Aligning purpose, process, and people in search of the perfect process.
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Definition of “Lean”
Half the hours of human effort in the factory
Half the defects in the finished product
One-third the hours of engineering effort
Half the factory space for the same output
A tenth or less of in-process inventories
Source: The Machine that Changed the World Womack, Jones, Roos 1990
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Was Ford the First Lean Thinker?
Ford saw a total system when others saw parts.
By 1914 at Highland Park the full system of “flow production” was largely in place:
A comprehensive gauging system to prevent more than one bad part from being made – poka yoke.
A widespread practice of taking the process to the product to create fabrication activities resembling cells.
Continuous flow in most assembly activities, made possible by interchangeable parts & standard work.
A crude system of preventing over/under production.
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Lean Manufacturing
A manufacturing philosophy which shortens the time line between the customer order and the product shipment by
eliminating waste.
CustomerOrder
Waste ProductShipment
Time
CustomerOrder
ProductShipment
Time (Shorter)
Business as Usual
Waste
Lean Manufacturing
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Price Increase
Some ProfitSome ProfitBigger ProfitBigger Profit
Price to Sell
Price to Sell
Cost to ProduceCost to
Produce 1
2
3
1
2
3
Cost + Profit = PriceCost + Profit = Price
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Cost Reduction
Some ProfitSome Profit
Bigger ProfitBigger Profit
Price to Sell
Price to Sell
Cost to ProduceCost to
Produce
1
2
3
1
2
3
Price - Cost = ProfitPrice - Cost = Profit
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Traditional View of Manufacturing
A key objective was to fully utilize production capacity so that more products were produced with fewer workers and machines.
This thinking led to large queues of in-process inventory waiting at work centers.
Large queues meant workers and machines never had to wait for product to work on, so capacity utilization was high and production costs were low.
This resulted in products spending most of their time in manufacturing just waiting, an arrangement that is unacceptable in today’s time-based competition.
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Toyota Production System Pull Manufacturing Just-In-Time World Class Manufacturing
Lean ManufacturingJIT/TQC/EI/TPM
Short Cycle ManufacturingOne-Piece-Flow Cellular Manufacturing Demand Flow Manufacturing
Stockless Production Focused Flow Manufacturing
Agility Value Adding Manufacturing
Group Technology Time Based Management
Synchronous Flow Manufacturing Continuous Flow Manufacturing
Many Names – Same Concepts
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The Toyota Production System
5S Programme &
Standardisation
Increase Profits By Eliminating Waste
JIT
JIT
Just In TimeProcessing
Jid
oka
Jidoka
Jidoka:No Defects Passed on
Flexibility to Make Only What Customer Wants
WasteElimination
“Production Smoothing” Foundation
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Capacity Utilization
10 20 30 40 50 60 70 80 90 100
30
10
20
% Capacity Utilization
60Production Lead Times (days)
40
50Traditional
Manufacturing
JITManufacturing
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Time-Based Competition
It is no longer good enough for firms to be high-quality and low-cost producers.
To succeed today, they must also be first in getting products and services to the customer fast.
To compete in this new environment, the order-to-delivery cycle must be drastically reduced.
JIT is the weapon of choice today in reducing the elapsed time of this cycle.
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Expectations from Suppliers
Frequent deliveries.
Hours (not days) lead time.
Rapid response capability (not from stocks).
Delivery to assembly line at the right time in the right sequence without inspection.
Reliability (quality and timing).
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Supplier Relationships
Long-term, steady relationships with a few suppliers.
Negotiation based on a long term commitment to productivity and quality improvement.
Interested in supplier capabilities.– Continuous improvement.– Product/process technology.– Design for manufacturability.
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What’s in it for a Supplier?
A Stable Manufacturing Environment.– Steady production volume.
Leaner Processes.– Cost/Flexibility/Quality
Profits.
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The Future ~ It’s Not What It Used To Be
The future - will not be an extension of the past
Competition - is NOT company vs. company… but rather infrastructure vs.. infrastructure
Value (seen by your customer) now defined by speed, convenience, personalization and prices
Knowledge as the source of competitive advantage
Velocity is the game – time is the currency of the future
Sharing – we’re more willing to share/learn from others
Game changing technology – it’s everywhere
Kenneth J. Andrews EMP-5179-1-29
Program Overview (Modules & Weeks)
7. Quality at Source
8. Customer Ints.
9. QFD & DFM
10. Teams & Change
11. Term Papers
1. Intro. ToManuf. Systems
2. Lean & JIT
3. Push vs. PullProcess Impr.
4. TQ Tools & Techs.
5. Value Stream Maps
6. Manuf. Metrics 12. Final Exam (Dec 13)
No Class on Nov 8?
No Class on October 11
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