Lean Manufacturing Conf Papers

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    Lean Implementation andIssuesDr.Raj Mohan, [email protected]

    Plant LayoutPlant Layout Key ElementsKey Elements

    House

    keep

    ing

    Qua

    lityFirs

    t

    Plan

    tLayou

    t

    Lean People

    Product Design

    Value StreamMapping

    ANDON

    Lean Layouts

    One Piece Flow

    Load Leveling / LineBalancing (Heijunka)

    A cornerstone of LMS. VSM was used to understandcurrent flow, identify waste and execute principles toeliminate waste and arrive at the optimum future state.

    Plant LayoutPlant Layout Value Stream MappingValue Stream Mapping Plant LayoutsPlant Layouts Andon SystemsAndon Systems

    Stopped module

    Materials

    Maintenance

    Production

    Quality

    Module Running

    Andon communication systems make abnormalconditions immediately visible and apparent.Response systems are developed and adhered toin order to assure quick response and resolution

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    Plant LayoutPlant Layout 1Pc1Pc Flow / Manage by Takt TimeFlow / Manage by Takt Time

    0

    10

    20

    30

    40

    50

    60

    70

    1 2 3 4 5 6 7 8 9 10 11 12 13

    OPERATIONS

    CYCLETIMEIN

    SECOND

    0

    10

    20

    30

    40

    50

    60

    70

    1 2 3 4 5 6 7 8 9 10 11 12

    OPERATIONS

    CYCLET

    IM

    EI

    NS

    ECOND

    Decreasing line Takt time to coincide withcustomers Takt time. Reduce waste bybuilding what is needed when it is needed.

    Plant LayoutPlant Layout LevelLevel Loading / Line Balancing (HeijunkaLoading / Line Balancing (Heijunka))

    Heijunka allows the set up of robust flexibleoperations that optimize labor using strategicbuffering and level loaded schedules to balancethe work load.

    Plant 2 FrontLine - AFTER

    0.00

    10.00

    20.00

    30.00

    40.00

    50.00

    60.00

    1 0 2 0 3 0 4 0 5 0 7 0 8 0 9 0B 1 0 0 1 10 1 30 1 4 0 1 5 0 1 60 1 7 0 1 80 1 90 2 0 0 2 20 2 30 2 40 2 7 0 2 90 3 00 3 1 0 3 50 3 8 0 3 90 4 10 4 2 0 4 30 4 40 4 50 4 6 0 4 80 5 00 5 2 0 5 30 5 4 0 5 60 5 70

    Stations

    Tim

    e[

    sec.]

    WeightedAverage[Sec.]@ 65JPH

    TAKTTIME[TT]= 55.4s(65JPH)

    CUSTOMERTAKT TIME[TT] = 57.1s(63JPH)

    Material FlowMaterial Flow Key ElementsKey Elements

    House

    keep

    ing

    Qua

    lityFirs

    t

    Ma

    teria

    lFlow

    Plan

    tLayou

    t

    Lean People

    Product Design

    Lean Containers &Packaging

    Plan For Every Part(PFEP) / Plan For EveryStation (PFES)

    Central Material StoragePull Systems (Kanban)

    Exportshippingsupport.comExportshippingsupport.com

    Another cornerstone of LMS. Right-sized containers is the keyenabler of Lean Material Flow and effects the entire value stream. Itensures proper workstation design and layouts which optimizesvalue added labor, freight and protects product

    Material FlowMaterial Flow LeanLean Containers & PackagingContainers & Packaging

    Understand TheTRUE COSTS

    Of Incorrect Packaging

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    Tool and process used to determine flow rates, storage anddelivery systems and line side presentation requirements.Designing stations from operator out to ensure operator success

    Material FlowMaterial Flow PlanPlan For Every Part / Station (PFEP / S)For Every Part / Station (PFEP / S)

    L W H

    1 LatchASM -Floor,O/B,2RS,60%L H,920 L0033097AF,01 BAE 24 Returnable 12 15 10 2400 480 20 2 60 3 4 120 5 24 720 30 48 11 LatchASM -Floor,I/B,2RS,60%LH, 920 L0033099AF,01 BAE 15 Returnable 12 15 10 0 0 2 0 0 4 0 2 24 0 0 48 01 LatchASM -Floor,O/B,2RS,40%RH, 920 L0033100AF,01 BAE 24 Returnable 12 15 10 0 0 2 0 0 4 0 2 24 0 0 48 02 CableASM- LatchSynch,2RS,40%RH L0033114AD,01 Capro 150 Returnable 32 15 8 0 0 2 0 0 4 0 2 24 0 0 18 02 CableASM- LatchSynch,2RS,60%LH L0033115AD,01 Capro 135 Returnable 48 15 8 0 0 2 0 0 4 0 2 24 0 0 18 02 CableASM- Synch40%I/BMaster L0064674AD,01 Capro 145 Returnable 48 15 8 0 0 2 0 0 4 0 2 24 0 0 18 02 60%I/BMASTERSYNCHCABL L0064675AE,01 Capro 135 Returnable 48 15 7.5 0 02 CableASM- FloorLatchReleaseO/B40%/60% L0064677AC01 Capro 290 Returnable 32 15 8 0 0 2 0 0 4 0 2 24 0 0 18 0

    2 CableASM- FloorLatchReleaseI/B60% L0064682AC,01 Capro 290 Returnable 32 15 8 0 0 2 0 0 4 0 2 24 0 0 18 0

    Part Delivery Inventory control - SupermarketInventoryControl - Line Side

    Station

    #PDM #

    Color

    Code

    Supplier/Container Usage

    ContainerSizeAvg

    Wkly

    Usage

    (830)

    Avg

    Daily

    Usage

    (830/5)

    Cntnrs

    perday

    Part Information

    Super

    Market

    (Y/N)

    Min.Inv.

    Hours

    on

    hold

    Stationside

    inventory

    SupplierStd

    Pack

    Std.

    Cntnr

    Cntnr

    Retrn

    or

    Expnd

    Row Part Description

    MaxInv.

    Hours

    on

    holdMin Inv.Min

    Contnr

    Max

    Inv.

    Max

    Contr

    Bulk/

    Supermarket

    Storage

    Bulk

    Storagefor

    Supermarke

    t

    Stationside

    inventory

    Max

    Inventory

    HoursOH

    ~

    Include

    Safety

    Stock

    Max

    Inv.

    Max

    CntnrCntnr

    per

    pallet

    #of

    Spots

    Controls Inventory. Inventory costs and abnormalconditions are made visible and immediately dealt with.

    Material FlowMaterial Flow Central Material StorageCentral Material Storage

    Material FlowMaterial Flow Pull Systems (Kanban)Pull Systems (Kanban)

    Pull systems are employed to regulate productionflow. Tuggers are used to deliver sequenced parts.This levels production, materials flow, operatorflow and controls inventory

    The Carrot ModelWe see and want

    the leafy green easy

    stuff-

    The lean tools andtechniques

    But, the part we

    really want is

    below the surface

    and it takes hard

    work and effort to

    get to it (and youhave to get your

    hands dirty!)

    Most

    organizations

    never get deep

    enough into the

    lean process to

    achieve true

    success

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    Direct

    ExecutiveSteering

    Committee

    Provide Strategic Direction

    Provide Resource Make Decisions Meet RegularlyGuide Deployment

    Plan

    HeadquartersLean Support

    Team

    Provide Tactical Direction

    Coordinate Planning Develop Training Material

    Coordinate Training

    Develop Operating Standards Provide Lean Expertise Support Implementation

    Assess Progress

    Implement

    Plant LeanFacilitators

    Develop & Integrate Plans

    Execute Plans Conduct Training

    Assist Implementation

    Lean Resident Resource

    Conduct Assessment Process

    Established structure to drive implementation and a common approach. Drives accountability by assigning responsibility.

    LMS Deployment StructureLMS Deployment Structure

    Lean VisionDr. Raj Mohan

    Chief Mentor, Man2succeed(International Management Consultants and Training

    Providers)[email protected]

    Lean Manufacturing!!!!

    Eliminating Manufacturing Waste

    Produce what you need, only as much asyou need, when you need

    TaiichiOhno Toyota Production System

    If something is not needed in a particularquantity at a particular time, why produce

    it? Usual answer: to meet production targets!

    What, how much and when arethe essential elements of demand.

    Paradigm Shift2000 to 2010

    In 2000

    Manufacturing

    Based andEvent Driven

    NOW

    Value chainFocused andProgramDriven

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    DirectLabour

    Othercosts

    Lean

    Transfor-mation Lea

    nMgt

    LowGrowth

    Spending

    SupplyChain

    Trans-action

    volume

    Then Now

    Three Levels of CultureThree Levels of Culture

    What we see:

    Andon, Kanban, Charts,People look engaged,Clean and orderly, andLittle inventory

    What they say: CustomerFirst,

    Respect for People &Continuous Improvement

    .

    What is at their Core:All team associates deeply committed to

    the company mission of contributing to

    society through high-value added

    manufacturing.

    .

    Artifacts

    & Behavior

    Norms& Values

    UnderlyingAssumptions

    Customer Service PerformanceCustomer Service Performance New AchievementsNew Achievements

    Reduced from 15% to 40%Storage

    Order Shipped Complete and On-Time Improvements over 12%

    OSCOT

    Reduced by 45% to 70%Freight Cost

    Reduced between 18% and 30%Finished goods

    inventory

    Improved over 20%

    Materialsprocessing

    velocity

    New Lean Culture

    SustainableLean

    Culture

    RightEnterpriseBehaviour

    CustomerDriven

    Response

    TalentRecruiting

    & Mgt

    AppropriateMeasure-

    ment

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    Means and Measures

    Business strategy identifies culture design

    Employees see how culture drives right

    behaviors

    Future-state cultural design codifies change

    needs (Building premises and standards)

    Cash flow builds confidence in the cultural

    investment (Lean Culture)

    Bonding Cultural change with winning formula

    Components + Metrics = Success / ExcellenceSource: Hofstede Cultural Scores for Japan, U.S., and World Average

    0

    10

    20

    30

    40

    50

    60

    70

    80

    90

    100

    Power Distance Individuality Uncertainty

    Avoidance

    Long Term

    Thinking

    Japan

    U.S.

    World

    Is it Surprising Lean is Challenging inIs it Surprising Lean is Challenging in India with world leaders ahead?India with world leaders ahead?

    Green and Lean Energy Area

    15-30% of a manufacturing companys monthly energybill creates greenhouse gases.

    The energy management within a facility - benchmarkcompetitors.

    Lean methodologies can be used to reduce waste in theconsumption of energy within a manufacturing facility.

    The ultimate goal - eliminate equipment not needed in

    the process. If elimination is not possible, minimize the use

    plot energy consumption to predict maintenance schedulesand replacement cycles. 23

    G.A.S. Index: Global AssetSustainability Index

    G.A.S. Index = Availability * Performance *Quality * EnergyEfficiency

    Availability = All downtime / Scheduled time

    Performance = Actual output for scheduledtime / Design output for scheduled time

    Quality = Total production minus defects orrework / Total production

    Energy Efficiency = Design energyconsumption/Actual energy consumption24

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    25

    Example: Motor Efficiency

    90,000 Watts 100 HP 76,000 Watts

    1HP = .746 kWatts

    15,400 Watts (17.4%)

    Motor EfficiencySavings (US)

    Energy Savings = 90kW x 8,000 hrs./year x(1-(.828/.94)) = 87,336 kWh/yr.

    At an average cost of 11 cents per kWh, theestimated savings would be $9,607 per year.

    Motor operating cost:

    (100 HP x .746 kW/HP x 8,000 hrs. x $.11/KWh) / .94 efficiency = $69,838 per yr.

    26

    Spend less andSpend less andgrowgrow

    Lean

    Mgt

    Low GrowthSpending

    Supply Chain

    Trans-actionvolume

    Lean Scope

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    ...that car up ahead

    Looking through...

    How we usually do it...

    How it should be done!

    Down onDown onthe shop floor ,the shop floor ,

    better demand

    input on designs (for

    manufacturability)

    betters tools for production

    flexibility

    ease of access to relevant

    information

    Manufacturing wantsManufacturing wants

    just like any other supplier!just like any other supplier!

    Challenges &Vision

    Capacity promisingCapacity promisingassumptions across theassumptions across thesupply websupply web

    Traditional countermeasure:under-capacity planning

    Future countermeasure:real options planning

    Challenges &Vision

    Instability of ECO processInstability of ECO process

    Traditional countermeasure:ECO clumping on a fixed schedule (bus)

    Future countermeasure:process integration upstream

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    Challenges &Vision

    Instability of transitionInstability of transitionmanagementmanagement

    Traditional countermeasure:buffers

    Future countermeasure:budget-achieved, life ends

    Challenges &Vision

    Balancing flexibility (reach)Balancing flexibility (reach)with stability (differentiablewith stability (differentiablerichness)richness)

    Traditional countermeasure:year-to-year internal policy and metric mgmt

    Future countermeasure:shared policy in the supply web

    Challenges &Vision

    Shared record accuracyShared record accuracy

    Traditional countermeasure:recent history-->few successes!

    Future countermeasure:data model simplification andstandards

    Lean e-Manufacturing-Choice

    Benefits

    30% throughput increase with no

    corresponding asset increase (yields

    greater share)

    turns increase of 50-100% coupled

    with service increase

    30-50% reduction in cost of quality

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    A long journey that needs commitment,A long journey that needs commitment,

    patience, longpatience, long--term thinking, positiveterm thinking, positive

    mindset and attitude, and continuousmindset and attitude, and continuous

    improvement which are merged togetherimprovement which are merged together

    as operational excellence and as a strategicas operational excellence and as a strategic

    weapon.weapon.

    Lets start the journey and Do our Best!Lets start the journey and Do our Best!

    Lean isLean is

    Dr.Raj Mohan,Chief Mentor, Man2succeed

    Lean Assessment

    Nine Key areas ofAssessment

    Inventory

    The Team Approach

    Processes

    Maintenance

    Layout & Material Handling

    Suppliers

    Setup Quality

    Production Control & Scheduling

    Inventory we failin this area

    Inventory monitoring by Middle LevelManagers

    Inventory turnover

    Industry index comparison

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    Team Approach

    Compensation to Operatives ?

    Job Security

    Attrition

    Training

    Cross-functional Work teams

    Quality Teams IntrinsicMotivation

    TrustTrust

    Initiative

    Ideas

    Mastery

    Learning

    Coaching

    Control

    Contributors to Self-Efficacy

    StandardizedWork System

    SuggestionSystem

    Respons-ibility

    AwarenessMeaningful-

    ness

    Contributors to Satisfaction Cross-functional

    Teams

    Processes

    No of large-scale processes

    Flexibility

    Operating capacity

    Technology adoption Level

    Maintenance

    Uptime records

    Unplanned Maintenance

    Preventive Schedules

    Overall equipment effectiveness

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    Layout andMaterial Handling

    Space Utilisation

    Free Flow ofmaterial

    Free flow of people

    Process flowoptimisation

    Housekeeping

    Can we imagine a situation likethis?

    Supplier

    Average number of suppliers

    Inspection requirements (How much/Howmany pieces)

    Delivery frequency

    Defect rate

    SetupSetup

    No missing screws

    All screws seated

    Worker skill improvementManager worker co-operation inimprovement studies

    Specify what to inspect

    Clear inspection criteria

    Dont overload operator withcomplex content or criteria

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    Quality

    SPC training

    Defect rate

    Process defectsmonitoring

    Production ControlScheduling

    Work in process storage

    Kanban possibilities

    On-time delivery