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A Practitioner’s GuideTo Lean Manufacturing

Full Edition

SamplePresentation

Vincent A. Amaro, Jr.


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Evolver™ - A Practitioner’s Guide o Lean Manufacturing. Copyright © 2006by Lean Manufacturing Consulting, Inc. and Vincent A. Amaro Jr. Printed and bound in theUnited States. First Printing 2006

Notice Of Rights

All Rights Reserved. No part of this book may be reproduced, stored in a retrieval system, ortransmitted in any form or by any means, electronic, mechanical, photocopying, recording, orotherwise, without prior written permission from Lean Manufacturing Consulting, Inc. Forinformation on obtaining permission for reprints or excerpts, please contact:Lean Manufacturing Consulting, Inc.27022 Via BanderasSan Juan Capistrano, California 92675

Notice Of Liability Te information in this book, as well as the Evolver™ Presentation, is distributed on an “as is”

basis, without warranty. While every precaution has been taken in the preparation of thisbook and presentation, neither the author nor Lean Manufacturing Consulting, Inc. shallhave any liability to any person or entity with respect to any liability, loss, or damage causedor alleged to be caused directly or indirectly by the instructions contained in this book or theEvolver™ Presentation.

Attention Corporations, Universities, Colleges, and Professional Organi-

zations: Quantity discounts on the Evolver™ program are available on bulk and/or specialsales. Special books, booklets, or book excerpts can also be created to fit your specific needs.For more information, please contact:

Lean Manufacturing Consulting, Inc.27022 Via BanderasSan Juan Capistrano, California 92675http://www.leanmanufacturingconsulting.com/http://learnevolver.com/949.481.5055949.433.9713

[email protected]

ISBN-10: 0-9787411-0-2ISBN-13: 978-0-9787411-0-5


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Contents

viiiAbout The Author

1 1Introduction

What is Lean Manufacturing? 2What is Evolver™? 3Course Objectives 4Defining Value 5

Fundamental Lean Objectives 6

2 7Waste Identication - The Seven Forms Of Waste

Waste Identification 8Over-Production Waste 9Fixing Defects Waste 12Unnecessary Motion Waste 14Inventory Waste 16Over-Processing Waste 18

ransportation Waste 21Waiting Waste 22

3 25Lean Tools And Concepts

Important erms 26Level Loading 27 Achieving Level Loading 29

Before Level Loading (Example) 31 After Level Loading (Example) 32

Te “Outside Process Effect” - Another Evolver ™ Exclusive 33Using Te “Outside Process Effect” 35

Level Loading Final Toughts 37One-Piece-Flow 38 When o Apply One-Piece-Flow 39Batch Or Batch Processing 41

ixPreface


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Best-Batch-Flow - Another Evolver™ Exclusive 42Deciding On Te Optimum Batch Size 43

Batch Size Reduction Mistakes 44Push System 46 Push System Example 47

Pull System 49 Pull System Example 50Establishing Lead imes 51 Establishing Acceptable Lean imes In

A Best-Batch-Flow Application 52Te Daisy Chain Approach o Batch Processing -

Another Evolver™ Exclusive 57 Daisy Chain Example 59 Example - Results 65 Example - Advantages 65 Implementing Te Daisy Chain Approach 66

Daisy Chain Approach Advantages 67 Daisy Chain Approach Limitations 67Cross-raining Employees 68

4 71Conducting Time Studies

Conducting ime Studies 72 ools Required 73 ime ypes 74 Getting Started 76

Observations And aking Notes 78 After Te ime Study Is Complete 80 ime Study Example 81 Te Measuring Wheel Results 82 ips For Collecting ime 83

5 85Shop Floor Layouts - The Correct Way

Layout Section Objectives 86Functional Layout 87

Functional Layout Example 89Product Layout 90 Product Layout Example 91What Is A Cell? 92Te Cellular Objective 92Dedicated Work Cells 93Family Work Cells - Another Evolver™ Exclusive 94


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Expansive Cellular Layout (ECL) - Another Evolver™ Exclusive 96 Getting Started 99Combining Cellular Approaches 100Te raditional “U” Shaped Cell 101Present Layout vs. New Layout 102

Beginning Your Present Layout 103 Equipment Labeling 105 Spaghetti Diagrams 106 Spaghetti Diagram Example (Before Changes) 107 Spaghetti Diagram Example (After Changes) 108 Walking Te Existing Process 109Designing A New Layout Outline 110 Working With Monuments 111 People Considerations 112 Equipment Considerations 113 Beginning Your New Layout 116

Marking Te Floor 117 Marking Te Floor (Example) 118 Walking Te New Process 119 Final Toughts: Planning And Equipment Moving 120

6 123Quality Tools And Concepts

What Causes Defects? 124Covert Operations 126 Sporadic 127

On-Going 128Final Inspection Yield (FIY) 130 Final Inspection Yield Example #1 132 Final Inspection Yield Example #2 133Perfect Pass Percentage (PPP) 134 Perfect Pass Percentage Example 135Preventing Defects 136 Error-Proofing 139 Error-Proofing Examples At Home 140 Error-Proofing At Work 140Standard Work Instructions 141 Standard Work Instruction (Example) 14480/20 Rule 145 80/20 Pareto Chart Example 146Te 5 Whys 147 Using Te 5 Whys In Business 148 Asking Why In Te Workplace 149


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7 151Self-Directed Work Teams-

The Holy Grail Of Lean Manufacturing

Self-Directed Work eams 152Why Invest In Your Employees? 154Who Knows More About A Process? 155

Moving Te Decision Making Process? 157Interpersonal Skills 158Coordination And Cooperation Between Interdependent eams 159Establishing Self-Directed Work eams - ips For Managers 161Establishing Self-Directed Work eams - Getting Started 163

8 165Facilitating And Managing Change

During A Lean Transition

What ypes Of Changes Can You Expect DuringA Lean ransition? 166Common Reactions o Change 168

Vocalizing Anger Or Concern 169 Te Silent reatment 171 Attempting Sabotage 172 Interested, Excited And/Or Cooperative 173Why Do Employees Resist Change? 174What Causes Resistance o Change? 175Minimizing Resistance o Change 177When Changes Are Proposed In Your Area 178ips For Facilitators And Managers 179

9 181The 5S System

Introduction o Te 5S System 182Te 5S’s Are: 185Getting Started - ips For Te Lean Facilitator 186Sorting 188Simplifying 190Standardizing 191 Standardizing Example 193

Sweeping (Routine Cleaning) 194Sustaining Te Changes 195Making 5S Events More Successful 196 Te Point-Of-Use Concept 197 Shadow Boards 198 Shadow Board Example #1 199 Shadow Board Example #2 201 Shadow Board Example #3 202


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Visual Controls 204Visual Control Example #1 205

Visual Control Example #2 207 Visual Control Example #3 2095S Results - Hardware Project 210

5S Results - Wood Finishing Project 2125S Results - Metal Fabrication Project 216

10 219Tips For Getting Started

Evolver™ Lean Event Classifications 220 Level 1 Event 221 Level 2 Event 222 Level 3 Multipart Event 222What Not o Do 223

Te Blanket Approach o Lean Deployment 224Te Spoon-Fed Approach 226ake Small Steps 228rying New Ideas! 229ools In Your oolbox 230Cookie Cutter Approach 231Te Success Of Te First Project -

Eliminating Te Self-Fulfilling Prophecy 232Project Selection Situations 233Scope Creep 234Don’t Make It Personal! 234

A Final Note... 235

236Glossary Of Terms


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viii

Vincent A. Amaro, Jr. is the founder and President of Lean ManufacturingConsulting, Inc. Mr. Amaro has dedicated his career to the developmentof world class manufacturing operations using Evolver™ lean manufactur-ing techniques, which have provided numerous firms a competitive ad-

vantage in today’s global marketplace. Mr. Amaro has over 25 years ofexperience in manufacturing, including extensive experience as a machin-ist.

Mr. Amaro began his career in manufacturing while serving a tool and dieapprenticeship during the early 1980’s. During his career, he has workedfor a variety of firms ranging from aerospace to medical devices and has

held several positions including experimental machinist, tool and die maker, mold maker, tooldesigner, manufacturing engineer, process engineer, Plant Manager, and Vice President of Op-

erations.

Mr. Amaro also has extensive international and multi-plant managment experience havingworked at the executive level in Japan, Indonesia, China and Hong Kong.

Having worked his way up from the shop floor, Mr. Amaro has the ability to quickly recognizeand solve problems, as well as the ability to earn the respect of the rank and file employees. Tecombination of in-depth manufacturing knowledge and real “hands-on” experience differenti-ates him from other executives at his level.

During his career, Mr. Amaro has successfully completed hundreds of lean projects of various

sizes and complexities. He is a dynamic leader who is an expert in the implementation of leanmanufacturing and the turn around of failing product lines resulting in millions of dollars insavings. Mr. Amaro holds a Bachelor’s degree in Business Management and an MBA in GlobalBusiness Management.

Mr. Amaro is available for both direct (Full ime Regular) and contract positions.Contact: [email protected] or phone 949-433-9713

About Te Author


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ix

Over the last 15 years, firms attempting to re-main competitive in a global economy haveturned to lean manufacturing. Te recent

popularity of lean manufacturing has led tothe publication of countless books and articleson the topic. For the most part, these publica-tions provide a general overview of lean man-ufacturing rather than a practical application.

In addition to the countless books and articles,new lean approaches and methodologies havealso appeared, each promising consumersamazing results. Yet, none of these so called

lean approaches are even remotely applicablein all manufacturing applications, especiallyfor firms with low volume/high mix applica-tions or those working in job shop environ-ments.

Some lean programs, such as Six Sigma, placetoo much emphasis on statistical analysis andon the creation of an internal corporate hier-archy. Te statistical analysis in and of itselfdoes nothing to improve the bottom line, nor

does it provide any foundation for a culturalchange. At some point, those using a statisti-cal approach must return to basic lean man-ufacturing principles if they wish to addresstheir findings. Meanwhile, the creation of aninternal class system only serves to furtherwiden the gap within the corporate hierarchy.

Furthermore, most of these lean programsfail to address the importance of self-directedwork teams and effective interpersonal skillsthat are required for a full lean manufacturingdeployment, that is until now, meet Evolver™.

What Is Evolver™?Te purpose of Evolver™ is to provide userswith highly effective lean tools that work foreveryone, from executive management to the

rank and file, in any type of manufacturing environment. Evolver™ is a common sense, realworld approach that was written by a manu-

facturing professional specifically for manu-facturing firms.

Many of the original lean concepts that wereestablished by those involved in the originaloyota Production System are written in a

very rigid manner making them highly effec-tive in select environments and difficult or im-possible to apply in others. However, manylean practitioners will lead you to believe

that the original concepts are applicable in allmanufacturing environments. Tis is unfortu-nate because many firms beginning their leantransition waste too much time attempting tomake the original concepts “work” in their en-

vironments. When the original lean conceptscan not be applied, this causes frustration,failure, and the loss of time and money. Tereality is that many of the original conceptsmust be slightly “tweaked” or accompanied bycomplementary concepts to make them ap-

plicable in a greater number of manufacturingenvironments.

Evolver™ provides the necessary changes tothe original concepts and introduces newcomplementary lean concepts and approachesthat can work in any environment. When ap-plicable, both the original lean concepts andthe Evolver™ exclusive concepts are presentedin this guide to provide firms the opportunityto select the right tool for their individual ap-plications. Evolver™ also demonstrates how,when and where to apply both the originalconcepts, as well as the Evolver™ exclusive ap-proaches. Tis is a practitioner’s guide to leanmanufacturing, not a lean overview. WithEvolver™, there is something for everyone.

Preface


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x Preface

Te “Getting Started” section of this guide cov-ers many important topics and offers sugges-tions not mentioned in traditional books andseminars that are intended to be lean over-

views. Te “Getting Started” section contains

information and tips that can only be taughtby an actual practitioner of lean manufactur-ing. Tese tips can make the difference be-tween experiencing a smooth lean transitionor failing miserably.

At the end of the day, lean manufacturing inany form is nothing more than the applica-tion of common sense combined with a new“tool” or a new way of “looking” at a manu-facturing process. With this in mind, a lean

implementation should not cost firms tens ofthousands of dollars to implement. Evolver™offers a highly effective low-tech approachthat allows firms to make a difference in theworkplace immediately, without requiring alarge expenditure.

Purpose Of Tis GuideTis guide is intended to serve two main pur-poses: 1) to provide valuable information and

additional insight on each of the lean toolscontained in the Evolver™ program beyond of-fering mere definitions, which can be found inany number of sources, and 2) to act as a studyguide/train-the-trainer program for those in-terested in becoming lean trainers using theEvolver™ program. Tere are numerous leantrainers who are well-rehearsed in the class-room, but lack real hands on practical lean ex-perience. If this describes you, this book willnot only serve to make you a more informed

trainer, but it will also help to shorten thelearning curve between being well-rehearsedto becoming a seasoned lean practitioner.Tose designated by their organizations toprovide lean training should familiarize them-selves with the entire contents of this guide.

Who Should Read Tis Guide?Tis book should be read by CEO’s, presidents,cost accountants, operations managers, mate-rials managers, quality managers, productionplanners, lean trainers and anyone interested

in learning more about the lean concepts pre-sented by Evolver™.

Te Evolver™ Slide PresentationTe Evolver™ presentation consists of over 200slides, each containing valuable and practicalinformation. Te purpose of the presentationis to be used as a training tool for lean enter-prise deployment. Please expect to spend aminimum of two full days training partici-pants. Due to the intensity of this trainingprogram, the Evolver™ program is separatedinto ten chapters to provide the option of con-ducting the training over a longer period oftime.

How o Use Tis GuideTe top left hand corner of each page of theguide contains a slide from the Evolver™ pre-sentation. Te text below each slide containsadditional information and insight about each

lean topic discussed in the slide. Te chap-ters of the book, as well as the slides, are in thesame order as the presentation.


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11

Over-Production W as te (C ont.)

• T o eliminate over-production was te, production quantities

should be based on a combination of:

• customer demand; and

• the time required to set-up a piece of equipment.

• E xample: Let’s as sume that a customer orders only one

part.

• It takes four hours to set-up the machine and tenminutes to run the part.

• In this case, it would not make sense to produce strictly

based upon customer demand.

• You would need to find the lowest run quantity that

covers your machine set-up costs while keeping your

inventory levels to a minimum.

Over-Production Was te

• Occurs when firms produce more parts than theircustomers need at a given time.

• T his type of was te consumes raw materials and pays

employees to produce parts that are not needed by the

customer.

• Additional cos ts attributed to over-production was te include

the cost of carrying unnecessary inventories, and the loss

of floor space and equipment required to store the extra

parts.


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12 Chapter 2 - Te Seven Forms Of Waste

Over-production waste is one of the morecommon forms of waste found in manufac-turing facilities. Based upon my experience,

when a company encounters problems withextremely long lead times and high inventorycosts, they are usually producing too manyparts that are not required at that particularmoment in time. Tis normally occurs whenproduction batch sizes are too large and whenpush systems are in place. (Note: Push andpull systems are covered in Chapter 3, “Leanools and Concepts.”)

When firms overproduce, raw materials areconsumed and employees are paid to produceparts that are not yet needed. In addition tothe material and labor costs of producing theseparts, there are storage and inventory costs toconsider. If over-production waste is to bereduced or eliminated, production quantitiesshould be based as close to customer demandas possible. In general, factors such as thetype of products, production processes, prod-uct mix and volume, will have an influence on

your optimum batch sizes.

In recent years, the concept of one-piece ora continuous flow has been made popular bythose teaching traditional lean manufactur-ing. Tis is similar to the assembly line con-cept where parts travel from one station (orstep) to another in one continuous flow, fromraw materials or components to a finished as-sembly using what is known as a pull system.Tis type of approach reduces WIP (workin process), reduces lead times and virtuallyeliminates overproduction. In a true pull sys-tem, the previous step in a production processonly produces the amount of products thatare to be consumed by the following steps in aproduction process, thereby eliminating over-production. Te last step of the production

process is the heartbeat or focal point of thesystem which is driven strictly by customer de-mand. As a result of firms striving to achieve

one-piece-flow, the words “batch” and “batchprocessing” are frowned upon by traditionallean manufacturing practitioners.

Despite the fact that a continuous or “one-piece-flow” is a great goal to have when im-plementing lean manufacturing, in manycases there are other constraints that makeone-piece-flow either unattainable or simplynot as cost effective as many lean practitioners

would lead you to believe. For many business-es, where numerous short-production runsand diverse product lines exist, one-piece-flow may not be the best course of action. Incases such as these, you need to get creative.For example, you may have the ability to applythe one-piece-flow concept at the componentlevel vs. the top assembly level or apply one ofthe exclusive Evolver lean tools such as best-batch-flow. Best-batch-flow can be describedas simply analyzing a production process and

deciding the best batch size or best-batch-flow.Tis simple, but highly effective approach re-quires the analysis of a current batch size andattempts to find a happy medium betweenproducing too many parts (over-producing)and producing barely enough. (Note: One-piece-flow and best-batch-flow are covered inChapter 3, “Lean ools and Concepts .”)

When deciding on an optimum batch size,one must decide which is more expensive,carrying some additional inventory or reduc-ing capacity and paying more for the partsthat you produce. As a rule of thumb, I preferto reduce set-up times first. Ten, I find theoptimum batch size (best-batch-flow) basedon the new set-up times. As a word of cau-tion, I have often witnessed manufacturing

Over-Production Waste


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13

firms during a lean transition drastically re-duce their batch size to the extent that it coststhem more money and reduces capacity, thusfurther straining their production. Tis nor-mally occurs for a few reasons:

Failure to consider the set-up costs whenproducing a product. Te cost to set-upthe machine must be rolled into the cost ofthe total quantity of parts produced dur-ing a single run or batch.Management attempts to reduce batchsizes on machines requiring long set-upsbefore a “set-up reduction” program is inplace.Management does not consider the ma-chine down time that occurs during a long

set-up. Tis reduces capacity.

Improperly set-up Material Resources Plan-ning (MRP) Systems will also cause overpro-duction, thus creating a push system. Teactual MRP system itself is not the problem,as the MRP software only performs what theoperator tells it to do. You can still have alean environment and have an MRP systemin place. Here are some suggestions that haveworked for me in the past:

Reduce your set-up times first.Establish a best-piece-flow for all of yourcomponents and enter these numbers intothe system (these are the minimum run or“batch” sizes).Enter your customer orders into the MRPcomputer system on a daily basis and run

your MRP on a daily basis.With this particular approach, it is possibleto produce on a daily schedule based on a

combination of customer demand and theestablished best-batch-flow estimates. Tisapproach still reduces inventory to the bareminimums, maintains or improves capacityand virtually eliminates most overproductionproblems without the use of a one-piece-flowsystem.

1.

2.

3.

••

•

Important Note: Te best lean manufac-turing concepts require nothing more thana little common sense to apply. With this inmind, it is important to do what is right andwhat makes sense for a particular project. For

example, some important project goals couldbe cost reduction, improved quality, employeesatisfaction, providing value to your custom-ers, etc. Te lean methods used to achievethese goals are not as important as long as theymake sense and they achieve results. Do whatworks best for your particular application!


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14 Chapter 3 - Lean ools and Concepts

L evel L oading

• Level loading occurs when parts move through each stepof the manufacturing process at a similar rate, thus

eliminating bottlenecks in the manufacturing process.

• A bottleneck is a term used to describe the s teps within a

manufacturing process that take longer to complete than

other operations.

In its simplest description, level loading oc-curs when parts (either a batch of parts or

single pieces) move through each step of themanufacturing process at a similar rate. Temain requirement for level loading is thateach step in the manufacturing process takesapproximately the same time to complete.When this occurs, parts can move at a similarrate from one step to another step becoming alevel loaded manufacturing process.

Te concept of level loading can often be dif-ficult to explain in a group setting because dif-

ferent firms have different needs. Individualswho have been involved in manufacturing forsome time may quickly object to the theoryof level loading because some steps in “their”processes take longer then others to complete.Terefore, imagine a manufacturing processin a “perfect world” where every step in the

manufacturing process takes exactly the sametime to complete. If this perfect world existed,

parts (either a single piece or a batch of parts)could move from step to step at a similar rate.Tis constitutes a level loaded manufacturingprocess. In a traditional lean program, instructorsteach the participants to use the concept oflevel loading only in a one-piece-flow setting.One-piece-flow, also known as single-piece-flow, is the concept of moving one piece at atime through a series of steps within a work

cell, ultimately producing a completed prod-uct or assembly. In a one-piece-flow environ-ment, parts are not staged or queued in frontof the operators. Instead, each piece movesdirectly from one step to the next step. Nobatching! While one-piece-flow may be anexcellent concept for firms with high volume/

Level Loading


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15

low mix operations, for those with volumestoo low to justify a dedicated piece of equip-ment for each process, one-piece-flow is NOthe answer.

Unlike a traditional lean program whichfrowns on the use of batch processing, Evolv-er™ acknowledges the fact that one-piece-flowis not for everyone. However, the concept oflevel loading is for everyone! Whether youare using one-piece-flow or batch process-ing, having a level loaded process eliminatesbottlenecks, waiting waste, and establishes asmooth production flow throughout the facil-ity. (Note: Te concepts of one-piece-flowand batch processing are discussed in greater

detail following level loading.)


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B efore L evel L oading (E xample)

Unleveled Manufacturing Process

0

2

4

6

8

10

12

14

16

18

Step 1 Step 2 Step 3 Step 4 Step 5

Time (minutes) required to

complete each step in a

manufacturing process

Can you find the bottlenecks?

Tis is an example of an unleveled manufacturing process.Tere are five manufacturing steps with times varying from 4 minutes to 16 minutes.

Steps 2 and 3 have the lowest times and Step 4 has the longest time.Te biggest bottlenecks are Steps 4 and 5.

••

••

Before Level Loading (Example)


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17

When to Apply One-Piece-Flow

One-P iece-Flow Is Not F or E veryone

• One-piece-flow is best applied on product lines ormanufacturing processes that produce a large number of

similar or identical parts.

• B es t applied in a ce llular environment, either in a dedicated

manufacturing cell or dedicated assembly ce ll.

• Not recommended for firms where short-production runs

and highly diverse product lines exist.

• Not recommended in a s maller “job shop” or a machine

shop environment that performs multiple machine set-ups

each day.

Te concept of one-piece-flow has long beenconsidered the ultimate goal for those usingtraditional lean manufacturing techniques.Contrary to popular belief, one-piece-flow isnot for everyone. One-piece-flow is best ap-plied on high volume/low mix product linesusing a dedicated work cell. While one-piece-flow may be an excellent concept for firms withhigh volume/low mix product lines, for thosewith volumes too low to justify a dedicatedpiece of equipment for each manufacturing

process, one-piece-flow is NO the answer.

One-piece-flow is also not the best choicefor those in a smaller “job shop” or machineshop environment that performs multiple ma-chine set-ups each day. (Note: For those of

you who have a machine shop that produces

components for an assembly operation, theone-piece-flow concept may be applied suc-cessfully during an assembly process after theindividual parts are machined using a dedi-cated assembly cell, assuming that you havethe volume and equipment to support a one-piece-flow process.)

In addition, one-piece-flow is not the bestchoice in adhesive operations that require along cure time or in processes that require

heat treating. Tese types of processes nor-mally work better in a batch environment us-ing the “outside process effect.”

In conclusion, one-piece-flow works bestwhen you have a dedicated work cell withdedicated machinery that is always set-up to

When o Apply One-Piece-Flow

One-Piece-Flow Is Not For Everyone


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perform the same operation day after day. Ifthis describes your manufacturing operation,then the one-piece-flow concept is for you.For everyone else, there is the best-batch-flowconcept which is found in the upcoming seg-

ment.


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19

P ush S ys tem E xample

• P arts a re pushed from one step in a manufacturing

process to the next step where they sit in queue waiting to

be processed.

• P arts are made for inventory.

• Not driven by customer demand.

• G enerally, the process es a re not level loaded.

Inventory

Step 1 Step 3Step 2 Step 4

Push System (Example)Te slide depicts a typical push system. Aseach step in the production process is com-

pleted, the parts are pushed to the next stepwhere they sit in a staging or queuing areawaiting to be processed. Generally, whenthese parts are finally completed, they will bestored in an inventory location until the cus-tomer places an order.

Key Points In a push system, the process begins atStep 1 with a work order created to replen-ish inventory. Parts are then pushed fromstep to step. Conversely, in a pull system,the process “technically” begins at the endof the manufacturing process (after Step4) when the customer orders a part.

Te steps in this example are not level

•

•

loaded, which may explain why Step 2 hasso many parts and Step 4 looks as if it is

ready to run out of work.

Although level loading and push systems aretwo completely different concepts, based onmy experience, firms that utilize push systemsusually have unleveled operations. Whenpush systems are in place, employees are ac-customed (culture) to seeing parts queued orstaged at each step in the operation. As a re-sult, little or no thought is given to level load-ing the manufacturing process. In fact, most

operators become nervous and fear job losswhen they do not have several jobs staged infront of their machine!

Tis does not imply that there is always a di-rect correlation or relationship between the


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two concepts, meaning one problem contrib-utes to the other problem. However, a combi-nation of the two problems severely disruptsthe flow of materials through the manufactur-ing processes. Te good news is that these

problems are easily rectified with the properlean training and lean concept application.


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21

Functional DepartmentA functional department is best described asa department that is designated to performa specific centralized function or operation.Functional department examples include: thelathe department, the mill department, the in-spection department, the stockroom depart-ment, the accounting department, the humanresources department, etc. Poor functionallayouts exist when steps within a manufac-turing process are not arranged with productflow in mind.

Flow Flow in a lean application is best described ashow (good or bad) parts travel through theproduction process. Good production flow issimilar to an automotive freeway where traf-fic travels (flows) in a smooth manner withoutinterruption. Using the same analogy, poorproduction flow is similar to driving a car incongested city traffic where it starts and stops,does not move smoothly, and lacks a directpath. In other words, a layout with poor pro-

duction flow is not smooth, nor is it the short-est distance between two points.

Functional LayoutA functional layout is a factory layout thatmeets the following conditions:

Its operations or steps are separated intofunctional departments.Te arrangement of the functional depart-ments throughout the factory does not

take into consideration the actual productor part being produced. In other words,the functional departments are arrangedin a manner which contributes to exces-sive transportation waste and poor pro-duction flow.

Other problems associated with functional

•

•

layouts include poor communication betweenoperators, as well as problems with the detec-tion and isolation of defects. When you have

a manufacturing process with functional de-partments scattered throughout the facility,the long distance between the various stepstends to hinder communication between theoperators and the interdependent depart-ments. Tis lack of communication oftencontributes to a whole host of other problemsin the manufacturing process.

For example, I once performed a time study

on a fabrication process. Te material was cutincorrectly due to of a faulty cutting fixture.Te welders who received the incorrectlycut material filled the gaps with weld, whichwastes both time (labor) and materials (weld-ing wire). Due to the heavy globs of weld,employees in the grinding and deburr depart-ments wasted both time (labor) and materials(sanding belts and discs) grinding down theglobs of weld. All of this unnecessary waste oflabor and materials occurred because the em-

ployees from the various departments nevercommunicated since their departments werephysically far apart from each other. In fact,the distance between these departments wasso far apart that the leads in each departmentalso failed to communicate!

Functional Layout


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22 Chapter 5 - Creating Effective Shop Floor Layouts - Te Correct Way

Functional Layout Example

Departmentor Step 1

Department

or Step 4

Departmentor Step 5

Department

or Step 2

Department

or Step 3Finish

DepartmentIn this slide the term “department” is used

to describe a functional department. For ex-ample, the lathe department, the mill depart-ment, the inspection department, etc.

StepA step is a sequence in a production process.Within each step, you may have multiple op-erations occurring, either simultaneously orconsecutively. For example, within one stepwe may perform both a drill and tapping op-

eration.

OperationAn operation is the type of work (mill, lathe,drilling, tapping) being performed within astep.

Te term “department or step” is used in thisslide to illustrate how a part moves within a

manufacturing process. Although the wordsdepartment and step are different terms, theproblems associated with poorly arranged de-partments or steps are very similar. Keep thisin mind.

Tis is an example of a functional layout. Tereare five (departments or steps) in this example.Te arrows depict the “flow” or the directiona part travels through the manufacturing pro-cess. Notice how the various departments or

steps are not arranged in any logical order re-sulting in transportation waste. Tis is an ex-ample of poor production flow. If this type oflayout resembles your facility, consider chang-ing it immediately to a product layout which isdescribed on the following page.

Functional Layout (Example)


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23

Begin by accurately drawing every item on theshop floor. Tis includes machinery, cabinets,

trashcans, employee toolboxes, material carts,aisles, doors, etc. If it is on the floor, draw it!

Draw the equipment as accurately as possible.Avoid the temptation of drawing “boxes” in-stead of drawing an accurate footprint of amachine. Yes, it takes a little longer to drawthe equipment correctly; however, it is a smallinvestment that pays large dividends for yearsto come. Your new layouts will be easier tocreate and easier for others to read. Te entire

Evolver™ program focuses on reducing costsand eliminating non-value added activities.With this in mind, I would not advise you todo something that actually takes more time ifit was not necessary.

ools Required Normally, when I begin a layout, I utilize the

following tools:wo 30 foot tape measures or two 25 foottape measures. I personally prefer the 30foot tape measures as the extra five feetmay save some time. Use these tape mea-sures for laying out the building parameteror an area designated for lean improve-ment.One 15 foot tape measure for measuringequipment. Te 15 foot tape is lighter andeasier to maneuver when measuring ma-chines and other equipment on the shopfloor. (Note: A 12 foot tape measure alsoworks fine for this task.)One 100 foot tape measure (the type thatwinds up manually). Normally, I only usethe 100 foot tape measure for measuringaisles. You could also use the 100 foot tape

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Beginning Your Present Layout

B eginning Your P res ent L ayout

• E very item on the shop floor needs to be drawn (i.e. ,machinery, cabinets , toolboxes , material ca rts , aisles ,

doors, etc.) .

• Accuracy is important! Meas ure equipment as accurately

as poss ible. S hortcuts here may caus e you problems later!

• Tools required – Use tape measures and a measuring

wheel. Avoid las er tools unles s you have proven them to

be accurate.

• If you own drafting software, use it.


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measure if you are measuring an emptybuilding or an area without equipment.A measuring wheel for performing aquick accuracy check. (Important Note:Avoid the temptation of using the mea-

suring wheel as a shortcut. I only use thewheel when I have an extremely long dis-tance and a perfectly straight line for thewheel to travel. If you are going to use thewheel, use it correctly and with accuracy.When taking a measurement, try to walkin a straight line. Also, take notice of yourhandle position. I prefer to start the mea-surement and stop the measurement withthe handle at 90 degrees (vertical). I dothis because moving the handle changes

the measurement reading. Yes, it’s only afew inches, but I prefer to be as accurate aspossible. Do it right the first time!Black magic markers - I use black magicmarkers to write on the floor. For exam-ple, let’s assume that you are measuring adistance of about 45 feet. Measure off thefirst 30 feet with your tape measure. Tenmake a small mark on the floor with themarker. From there you can use the markon the floor to measure the remaining 15feet of distance. Ten simply add up thetwo measurements. Tis approach is greatwhen you cannot run a measuring wheelin a straight line due to equipment or oth-er obstructions on the factory floor.

Drafting Software If you have drafting software, use it. It is fasterand more accurate than using a piece of paper,plus it allows you to establish layers in your

drawing.

Layer Suggestion (Drafting Soft- ware)Te following is just a suggestion. Tis is mypersonal preference and what has worked wellfor me in the past. If you have a more effective

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method or merely your own personal prefer-ence, that’s okay too.

Create layers for the following:Create a layer for the building or area pe-

rimeter. Tis is where you will draw yourbuilding or area.Create a layer for your present layout. Ialways keep a copy of the present layout,even after the changes are made because itallows me to refer to how things were pre-

viously arranged. I simply turn the layoutoff and on as required. You never knowwhen you might need to look at the oldlayout. Having a layer for the present lay-out also helps with the new layout because

you can switch back and forth to checkaisle spacing, machine spacing, etc.Create a layer for your new layout. Tisis where you will draw your new layout.Having a layer for the new layout allows

you to start with a clean uncluttered draw-ing.

1.

2.

3.


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Walking The E xis ting P roces sPresent Layout

• W alk the manufacturing process that you are trying toimprove (follow the path that the parts travel).

• Meas ure the total distance traveled with the meas uring

wheel. (Note: Y ou can als o meas ure the individual

distance of each manufacturing step. T hen, you can add

your individual distances to obtain your total distance

traveled.)

• Us ing your layout, create a s paghetti diagram as you walk

the process to illustrate the movement of the product

through the facility.

• C reate a description of every step of the process .

Te purpose of walking the process is to gath-er information about how a part or family of

parts travel through the manufacturing pro-cess. Te information gathered while walkingthe process is somewhat different than the in-formation gathered during a time study.

In a detailed time study, we are interested incollecting detailed information regarding amanufacturing process or a step within a pro-cess for the purpose of collecting and improv-ing run times, removing waste, looking forcost reductions, error-proofing, etc.

When you walk a process for the purpose ofcreating a new layout, we are interested in col-lecting information about how a part or fam-ily of parts travel through the manufacturingprocess for the purpose of improving the lay-out or creating a cell.

Examples include:How are the parts transported (cart, pal-

let, bins, etc.)?How heavy are the parts? Do you needspecial handling equipment for the parts?How heavy is the tooling? Where is thetooling located? Do you need special lift-ing equipment for the tooling?If you are using best-batch-flow, what arethe optimum batch sizes?How wide do your aisles need to be?How much space is required around eachmachine?

What are the power requirements for eachmachine?

(Note: Te topics of equipment and peopleconsiderations are discussed in greater detailin the upcoming segment.)

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Walking the Existing Process - Present Layout


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• W ho will be impacted by your move?• Have you included them in your decision making proces s?

• Is there an approval process required for the move? If so,

complete this first.

Designing A New LayoutPeople Considerations

Before you begin, deeply consider who will beimpacted by your move. You need to considereveryone! Tis includes, but is not limitedto: the rank and file employees, maintenancestaff, shop floor supervisors, middle and up-per management, office employees and eventhose in different departments. Tere is noth-ing worse than spending days working on alayout only to discover someone has createda “roadblock” and your new plan needs to bealtered. What is even worse is discovering a

roadblock in the middle of a move! ake yourtime and consider everyone.

Sometimes a move may require an approvalfrom management. If so, you may want toconsider obtaining the approval first. Hint:I personally prefer to create a “rough draft”

layout which often helps management visual-ize what you are trying to accomplish. It iseasier to obtain approval when they can seethe end results. Remember, money is the op-erative language for management. In additionto your rough draft, advise management ofthe projected savings. Always be conservativewith this number! It is perfectly fine to exceed

your original savings estimate; however, fallingshort will destroy your credibility in a hurry.

Designing a New Layout -

People Considerations


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27

S tandard Work Ins truction - E xample

1. Attach air line to detail #1 and apply air pressure to value per blueprint.

2. Meas ure torque to spec. 99-996S S ection 2.1 (S ee F igure #2).

3. Torque should measure between 10 and 15 inch pounds with air

pressure applied.

4. L ever Torque T es t per blueprint P N#27022 R ev. B .

5. Place valve (in closed position) & details 1 and 2 into test fixture

Figure 1. Position of valves and details 1 & 2 Figure 2. Actual torque test in progress

Detail #1

Detail #2

Tis example is very similar to a page froman actual work instruction used in the torque

testing of a valve lever. Prior to having thiswork instruction, employees relied solely onthe blueprint to assemble and test the part.Te blueprint did not show the employeeswhat tools to use, how to assemble the partor how to actually perform the test. With theabsence of a standard work instruction, eachemployee had his/her own method of com-pleting the task. While each employee did infact get the job done, it took some employeesmuch longer to complete the same task than

others.

o eliminate the confusion, all of the employ-ees that assembled this product attended alean event and created a set of standard workinstructions. During every step of the pro-cess, each employee explained how he/she

built the product. Te employees then votedfor the best method of performing each step of

the assembly process. During the lean event,we also discovered that a few employees hadfabricated “custom tools” that made certainportions of the assembly process easier andfaster. Upon this discovery, we duplicated thecustom tools and integrated them in the stan-dard work instructions. Work instructionscan be more or less detailed than this exampleas long as the task is accomplished.

Standard Work Instruction - Example


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28 Chapter 7 - Self-Directed Work eams

S elf-Direc ted Work T eams

• A s elf-directed work team is an individual department,area, activity, or process where employees are empowered

to make all of the routine or “day-to-day” decisions

regarding their respective jobs.

• Decis ions or opinions from management are only required

when an event out of the routine occurs.

• E xample: If the roof suddenly begins leaking, inform

management.

In a self-directed work team, employees aretaught and empowered to make all of their

daily decisions regarding their respective jobs. Self-directed work teams also have “de-partmental or area leads” that have the sameauthority as a traditional supervisor, but servea different function. Instead of micro-manag-ing the employees, the lead is present to assistin making decisions that are not a part of theroutine process, as well as to perform othersupervisory tasks that are integral to runninga department, such as time and attendance,etc. Te following example is provided to bet-

ter illustrate what activity is considered “rou-tine” and what events require supervisory ormanagement intervention.

Company A is a bicycle manufacturer with

self-directed employees. Tey assemble bicy-

cles from parts produced in-house and from

outside sources. Te bicycle assemblers are

experienced and they know how to perform

their jobs. Each day when the assemblerscome to work, they are handed a schedule.

Te schedule indicates what types of bicycles

to build and the length of time the company

expects the employees to spend building each

bicycle. With a work schedule and a time

standard, each employee is aware of what is

required of them. As long as the employees

build bicycles correctly and within the com-

pany’s time standards, they do not require a

supervisor standing over them. Assembling

bicycles is a routine part of their normalworkday.

oday, when the assembly employees arrived

at work, they quickly discovered that the bi-

cycle frames had serious flaws in the paint.

Dealing with defective bicycle frames is not

Self-Directed Work eams


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part of their day-to-day routine. In this type

of situation, the lead person is useful in as-

sisting the work team members with resolv-

ing the problem.

Requirements For Building Self-Directed Work eams

Quality Management - op and middlemanagement, supervisors, and depart-ment leads all need to take less of a super-

visory role and more of a leadership/men-toring role.Quality Employees – Let’s face the facts.Te old saying, “when the cat’s away themice will play,” does have some truth to it.Based on my experience, most employeesgo to work with the intention of perform-ing a good job. As a result, most employ-ees do not have a problem performing ina self-directed work team. In fact, theyprefer it! For the small percentage of em-ployees that require some babysitting, thedepartment lead or lead person is there tokeep an eye on things and act as a checkand balance.ools and Measurement Systems -

Other requirements for self-directed workteams include tools such as work sched-ules, and performance measurement sys-tems that assist the employees in managingthemselves. Tese are the same or similarset of tools that a manager or supervisorwould use to schedule work and measureemployee performance.raining – Employees require appropri-ate training to succeed in their positionsand become as self-sufficient as possible.

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30 Chapter 7 - Self-Directed Work eams

Having worked my way through the ranksfrom a machinist to a Vice President of Op-erations, I know firsthand what it is like tobe on both sides of the fence. Based on mypersonal experience, I can make the follow-

ing statement very comfortably: the highera manager is on the organizational chart, theless he/she is likely to know about the day-to-day activities and details of the factory opera-tion.

While working as a machinist earlier in mycareer, I encountered my fair share of jobsthat were very difficult to run. In addition,I also made my fair share of mistakes. A

friendly note to any machinists reading this:Te little “tink” sound that you hear beforethe tap breaks in half has stressed out myday on more than one occasion! Wheneverpossible, I hid both my struggles and my mis-


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31

Te main objective of the 5S is to establish aneat and organized work environment where

everything has a place and everything is readyto use at a moments notice. However, prop-erly facilitated 5S events go far beyond basichousekeeping by improving operator efficien-cies, reducing various forms of waste and in-creasing employee job satisfaction. A cleanand organized workplace is the foundationfor lean initiatives and the early stages towardbecoming a world-class manufacturer. By us-ing the 5S system, you can quickly achieve anorganized workplace, establish standard work

methods, and create the self-discipline re-quired to sustain the results. Te 5S system

can be used by itself or as part of a larger morecomplex lean event.

Te 5S System

A clean and organized

workplace is the foundation

for lean initiatives and the

early stages toward becoming

a world-class manufacturer.

T he 5S S ys tem

• T he 5S sys tem establishes a culture that is focuse d oncreating a clean, organized, and safe work environment.

• T his is accomplished through a combination of:

• waste elimination exercises;

• visual controls; and

• standard work procedures.

• T he 5S system is an excellent tool for firms just beginning

their lean transition.


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32 Chapter 9 - Te 5S System

Te changing of corporate culture is one of themost difficult challenges a firm faces during

the lean transition. Te 5S system is a greatstarting point for building teamwork within adepartment or manufacturing process simplybecause it may be the first time that the em-ployees have a real voice to make the changesthat they want in their respective processes.

Tis in turn creates a sense of accomplish-ment, pride, and best of all, ownership of theirdepartment. When the employees have own-ership of their departments, the real lean tran-

sition begins. Tis is when employees beginmaking process improvements on their ownor bringing to the surface problems that needimmediate attention.

Current Management and the Rela-

tionship to Cultural Change

If the current manager has an autocratic ap-proach and is not well-respected in the work-place, the cultural change will not take placeuntil the autocratic manager either changeshis/her management approach or is removedfrom the area. While this may seem like aharsh statement, there is no need to sugarcoatthe truth – autocratic managers have no placein a lean environment.

Te ultimate goal in lean manufacturing is thecreation of self-directed work teams. A self-di-rected work team is an individual department,area, activity, or process where employees areempowered to make all of the “day-to-day”decisions regarding their respective jobs. Itis not possible to have an autocratic manager

Te 5S System (Cont. )

• E stablishing standard workpractices while improving

quality.

• F reeing up was ted floor

space.

• E liminating the search for

items, tools, etc.

• Improving process flow.

• E stablishing work teams.

• R educing inventory byestablishing realistic needs

for raw materials, supplies,

tools and other equipment.

• C hanging the corporate

culture – T his is one of the

most important benefits of

a 5S .

T he 5S S ys tem (C ont.)

R es ults Include, B ut Are Not Limited To:


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33

and a self-directed work environment at thesame time.

Te better the leadership and managementstyle of the current manager, the shorter the

transition to a self-directed work team. How-ever, if the current manger has caused sub-stantial damage, meaning that the employeesare absolutely miserable when they drive intothe parking lot simply because of the pres-ence of the current manager, the transition toa self-directed work team will probably neverhappen.

Cultural change does not occur overnight! Ittook years to create the current culture and it

will take some time to change it.

The real lean transition

begins when employees

possess ownership of their

departments.


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34 Chapter 9 - Te 5S System

Project BackgroundIn this work cell, employees assemble hard-ware kits (screws, nuts, bolts, caps, assemblyinstructions, etc.) for household furnishingproducts. Te completed hardware kits areshipped along with the other main compo-nents and later assembled by the customer.

Before Photo DescriptionTe before photo depicts the area prior to thelean event. As you can see, the area was verydisorganized. Although many boxes appearto be labeled, most of the boxes containedmore than one part making it very difficult fora newer employee to assemble a kit correctly.

In addition, the area was very dark due to thehigh piled storage racks which surrounded thearea and a lack of proper lighting. Notice theinoperable track lighting that was installed onthe upper left side of the photo.

Major ProblemsTe hardware itself was not identified cor-

rectly.Various components were mixed togetherin old torn up boxes.Te employees spent more time lookingfor parts than assembling the kits!Absence of a bill of materials.

As you can imagine, customers complained

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5S Results - Details for the Hardware Project

5S R es ults - Hardware P rojectBefore And After Photos

V is ual C ontrols - All of the

bins are labeled and

arranged in a logical order.

Documents

Lean Manufact Evolver_sample