THE EVOLUTION OF LEAN CARS CHEMICALS · DuPont Company – 42 years R & D – 9 years Project management – 15 years Lean manufacturing & supply chain consulting – 18 years Lean

Peter L. King

Lean Dynamics, LLC

September 2014

THE EVOLUTION OF LEAN

FROM CARS TO CHEMICALS

TO SUPPLY CHAINS .… AND BEYOND

BS Electrical Engineering – Virginia Tech

DuPont Company – 42 years

R & D – 9 years

Project management – 15 years

Lean manufacturing & supply chain consulting – 18 years

Lean Dynamics – 2007 to present

Consult with companies in process industries

Lean for the Process Industries – Productivity Press, 2009

The Product Wheel Handbook – Productivity Press, 2013

Value Stream Mapping for the Process Industries – Productivity Press, 2015

Several articles in IE Magazine, APICS Magazine, Target (AME)

Frequent presenter of PID webinars

Frequent speaker at IIE, APICS, ASQ, OpEx conferences

PETER L KING

2 © 2014 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

AGENDA

Lean Origins and System

Lean Migration into Process Industries

Continuing Lean Evolution

Supply Chains

Complete Enterprise

Service Industries

Cultural Requirements

Q & A


LEAN as we know it was developed by Toyota – beginning

in 1950 and continuing today

It was built on the pioneering work of

Eli Whitney, Honore’ Blanc, Marc Brunel

Frederick Taylor

Henry Ford



http://en.wikipedia.org/wiki/File:Eli_Whitney_engraving_from_1846_memoir.jpg

http://en.wikipedia.org/wiki/File:Frederick_Winslow_Taylor_crop.jpg

http://en.wikipedia.org/wiki/File:Henry_ford_1919.jpg

A SIMPLIFIED VIEW OF THE TPS HOUSE

FLOW SHORT CYCLE

TIME

STANDARDIZATION & STABILITY

QUALITY

TPS

MEETING CUSTOMER NEEDS

WITH THE HIGHEST QUALITY IN THE SHORTEST TIME

HIGHLY ENGAGED AND

EMPOWERED PEOPLE

CONTINUOUS IMPROVEMENT

WASTE ELIMINATION



The lean concepts, methods, and tools pioneered by Toyota quickly spread to other discrete parts assembly manufacturers -

Automobiles

Motorcycles

Appliances

Electronics

Etc.

But was slow to move into Process Manufacturing

“We’re different”

“It doesn’t fit”


PROCESS VS ASSEMBLY

Discrete Parts Manufacturing and Assembly

Automobiles

Cell phones

Computers

Power tools

Appliances

Aircraft

Medical instruments

Consumer electronics

Lawn mowers

Process Operations

Chemical reactions

Physical transformations

Process Products

Automotive and house paints

Foods and beverages

Personal care products

Synthetic fibers

Sheet goods

Films

Glass, ceramics


PROCESS INDUSTRY CHARACTERISTICS

Differences - Process vs Assembly

Equipment size and mobility

Asset productivity vs labor productivity

Poka Yoke

One piece flow??

……

…………


CHALLENGES IN PROCESS INDUSTRIES

Example of being blinded by Paradigms:

Cellular Manufacturing


EXAMPLE OF A TRADITIONAL FUNCTIONAL LAYOUT

R E

C E

I V I N

G

S H

I P P

I N G

PAINT

LATHE DRILL PRESS

ASSEMBLY

WELDING

GRINDING

MILL


11

TRADITIONAL FUNCTIONAL LAYOUTS

Why Functional Layouts were popular Easy to manage

Easy to equip and staff

Required only one skill

Labor productivity

could be optimized

Problems they caused Flow was sporadic, not well synchronized

Flow was not visual

Very high levels of WIP could accumulate

Quality often suffered

R E

C E

I V I N

G

S H

I P P

I N G

PAINT

LATHE DRILL PRESS

ASSEMBLY

WELDING

GRINDING

MILL

© 2014 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

CELLULAR MANUFACTURING IN ASSEMBLY PLANTS

To remedy these difficulties, Toyota developed

Work Cells

Two step process

1. Arrange all parts into similar groups (“Group Technology”)

2. Arrange the equipment into work cells


13

CELLULAR MANUFACTURING IN ASSEMBLY PLANTS

Benefits of Cells

Flow can be well synchronized

Flow can be very visible

Lot size can be smaller

one-piece flow is practical

Quality improves

WIP is reduced

Set-ups are generally faster

Labor productivity can be maintained


CHALLENGES IN PROCESS INDUSTRIES

So.. Cellular Manufacturing is great for parts and assembly,

but will it work in process industry plants?


15

TYPICAL PROCESS INDUSTRY FOOTPRINT

FUNCTIONAL CONFIGURATION

Step 2 Reactor 2

Step 2 Reactor 1

Step 2 Reactor 3

Step 2 Reactor 4

Step 3 Machine 2

Step 3 Machine 1

Step 3 Machine 3

Step 4 Machine 2

Step 4 Machine 1

Step 4 Machine 3

Step 4 Machine 4

MATERIA

L FLO

W

Step 1 Tank 2

Step 1 Tank 1

Step 1 Tank 3

Step 1 Tank 4


© 2014 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED 16

PAPER MANUFACTURING EQUIPMENT CONFIGURATION

Packaging

Roll Forming Machine 1




Roll Bonder 1

Roll Slitting Machine 1

Roll Bonder 2 Roll Bonder 3 Roll Bonder 4



Chopper 1

Chopper 2

Chopper 3

© 2014 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED 17

PAINT MANUFACTURING EQUIPMENT CONFIGURATION M

ATERIA

L FLO

W Resin

Polymerization1

Resin Polymerization

2

Resin Polymerization

3

High Speed Dispersion 1



1 6 5 4 3 2 7 8

9 14 13 12 11 10 15 16 Tint & Shade

1 2 3 4 5 6

Drum Filling Tank Truck Loading

18

TYPICAL PROCESS INDUSTRY FLOW PATTERNS

Step 2 Reactor 2

Step 2 Reactor 1

Step 2 Reactor 3

Step 2 Reactor 4

Step 3 Machine 2

Step 3 Machine 1

Step 3 Machine 3

Step 1 Tank 2

Step 1 Tank 1

Step 1 Tank 3

Step 1 Tank 4

Step 4 Machine 2

Step 4 Machine 1

Step 4 Machine 3

Step 4 Machine 4


19

PROCESS INDUSTRY CONCERNS

Functional layouts cause

similar problems

in process plants

Flow is not synchronized

Flow is not visible

Quality suffers

Long time from defect to discovery

Variation or tolerances multiply

Root cause failure analysis is difficult

Inventory accumulates almost without limit

Pull replenishment systems are difficult to implement

Equipment performance (OEE or UPtime) deteriorates

Step 2

Reactor 2

Step 2

Reactor 1

Step 2

Reactor 3

Step 2

Reactor 4

Step 3

Machine 2

Step 3

Machine 1

Step 3

Machine 3

Step 4

Machine 2

Step 4

Machine 1

Step 4

Machine 3

Step 4

Machine 4

Step 1

Tank 2

Step 1

Tank 1

Step 1

Tank 3

Step 1

Tank 4


SO ~ WHY NOT CELLS?

Process Industry barriers to cells

Equipment is massive

Footprint often 200 ft x 50 ft

Weight can be hundreds of tons

Process piping, hydraulic lines

Labor productivity is not the biggest issue


21

THINK LOGICAL FLOW, NOT GEOGRAPHIC FLOW

Step 2 Reactor 2

Step 2 Reactor 1

Step 2 Reactor 3

Step 2 Reactor 4

Step 3 Machine 1

Step 3 Machine 3

Step 1 Tank 2

Step 1 Tank 1

Step 1 Tank 3

Step 1 Tank 4

Step 4 Machine 2

Step 4 Machine 1

Step 4 Machine 3

Step 4 Machine 4

Step 3 Machine 2

CELL 1 CELL 2 CELL 3 CELL 4


SYNTHETIC RUBBER PRODUCTION

A synthetic rubber manufacturing plant

End uses: gaskets, seals, industrial hoses, tires

Three major grades: Type F, Type J, Type R

Several SKUs within each grade


http://www.dupont.com/products-and-services/plastics-polymers-resins/thermoplastics/case-studies/high-flex-cable-for-bridges.html

23

SYNTHETIC RUBBER CURRENT STATE VSM

CUSTOMER SERVICE

REPS

ORDER GRANTS

MATERIAL RELEASES

SALES & OPERATIONS

PLANNING DEMAND

MANAGEMENT PROCESS

ORDERS

PRODUCTION SUPERVISOR

CAPACITY FORECAST ( MONTHLY )

MASTER PRODUCTION SCHEDULE ( MONTHLY )

DAILY PRODUCTION SCHEDULE ( WEEKLY )

AGGREGATED DEMAND

( MONTHLY )

CURRENT INVENTORIES

CASTING ROLLS

( 6 )

ROPE CUTTING

( 6 ) 6 6

Invtry

Days

# SKUs

ZZZZ

42

XXXX

Invtry

Days

# SKUs

XX

7

1000

CUSTOMERS , DISTRIBUTORS

Quantity / time

TAKT

ZZZZZ

XXXX

Lead time Exp 7 Days

BAGGING PALLETIZING

( 3 ) 3

Eff Cap ZZ

XX TAKT Eff Cap ZZ

XX TAKT

Eff Cap ZZ

XX TAKT

PRODUCTION SUPERVISOR

Frequency

Lot Size

1 Car / Day

zzz

Transp time zzz

SUPPLIER 1

SUPPLIER 2

WEIGH TANKS ( 3 )

EMULSION STRIPPING

( 3 )

POLYMER KETTLES

( 6 ) 1 3 1

Order Lead Time

# SKUs

zz

z zz

Order Lead Time

# SKUs

zz

z

Invtry

Days

# SKUs

XX

8

200

Invtry

Days

# SKUs

XX

10

50

Invtry

Days

# SKUs

6 . 3 M lbs

z

6

Eff Cap ZZ

XX TAKT

Eff Cap ZZ

XX TAKT Eff Cap ZZ

XX TAKT


Polymerization Kettle 1






Weigh

Tank 1

Weigh

Tank 2

Weigh

Tank 3

Emulsion

Strip 1

Emulsion

Strip 2

Emulsion

Strip 3

Casting Roll 1 Casting Roll 2 Casting Roll 3


Bagging

line 1

Bagging

line 2

Bagging

line 3

Cutter 1

Cutter 2

Cutter 3

Cutter 4

Cutter 5

Cutter 6

SYNTHETIC RUBBER MANUFACTURING CONFIGURATION


25

SYNTHETIC RUBBER PRODUCTION ISSUES

Problems and issues:

No coordination between areas

Flow not synchronized

Batches built up between steps

High WIP

Flow patterns had extreme variation (5,000 possible routes!)

Flow not visible, often confusing

Batches sometimes had to be “ditched”

Each grade produced once per month – high FPI

Transitions long and complex

Yield loss on start-up

Polymerization Kettle 1 Polymerization Kettle 2 Polymerization Kettle 3 Polymerization Kettle 4 Polymerization Kettle 5 Polymerization Kettle 6

Weigh

Tank

1

Weigh

Tank

2

Weigh

Tank

3

Emulsion Strip 1 Emulsion Strip 2 Emulsion Strip 3



Bagging line 1 Bagging line 2 Bagging line 3

Cutter 1 Cutter 2 Cutter 3 Cutter 4 Cutter 5 Cutter 6


SYNTHETIC RUBBER FUTURE STATE ~ VIRTUAL CELLS



Weigh Tank 1

Emuls

Strip 1

Casting Roll 1

Casting Roll 4

Bagging

line 1

Cutter 1 Cutter 2

Type F CELL



Weigh Tank 2

Emuls

Strip 2

Casting Roll 2

Casting Roll 5

Bagging

line 2

Cutter 3 Cutter 4

Type J CELL



Weigh Tank 3

Emuls

Strip 3

Casting Roll 3

Casting Roll 6

Bagging

line 3

Cutter 5 Cutter 6

Type R CELL


SYNTHETIC RUBBER – BENEFITS OF CELLS

Results:

Transitions much faster

Properties back on aim within minutes

Yield losses dramatically reduced

Asset productivity significantly increased

Management by value stream, not by process function

Quantitatively:

Scrapped material down by 72%

Variability reduced by 50%

Lead time reduced by 28%

Time to reach aim properties: 5 hours 5 minutes

Capacity increased by several million pounds per year

$$


LEAN EVOLUTION

Toyota – 1950s on

Other Japanese manufacturers – 1960s – 1970s

Manufacturers in North America, Europe – 1980s

Process manufacturers – late 1980s

Global supply chains – 1990s

Pull principles

Global logistics

Procurement

Sales & Ops Planning


LEAN EVOLUTION

Complete enterprises – 2000s

Legal

Finance

HR

Service industries – 2000s

Banking

Health Care


LEAN EVOLUTION

Capital Project Execution Systems

Current system dysfunctional

Cost overruns

Late start-ups


Used Value Stream Mapping to analyze causes

Future State VSMs defined process improvements

Used Cross-Functional Process Maps (swim lane charts) to map details

BARRIERS TO LEAN MIGRATION

1. Lack of vision

Blinded by the technique

Failure to see the underlying principle

2. Lack of appreciation for the cultural requirements

The nature of change

Critical Success Factors for sustainability


CULTURE IS FUNDAMENTAL!

LEAN has a full set of very effective improvement tools

Tools are great, but it’s really all about the CULTURE

The “hard stuff” is easy

The “soft stuff” is hard!


IT’S ALL ABOUT THE CULTURE!

WORK STANDARDS

MUTUAL TRUST

> ENGAGE

> ENABLE

> ENLIGHTEN

> ENCOURAGE

> EMPOWER


IN CONCLUSION ….

WORK STANDARDS

MUTUAL TRUST

> ENGAGE

> ENABLE

> ENLIGHTEN

> ENCOURAGE

> EMPOWER

34

It’s not about the WHAT, It’s about the WHY

It’s not about the METHOD, its about the CONCEPT

Focus more on the PRINCIPLE involved

…………Than on the TECHNIQUE


TO LEARN MORE …..

Productivity Press

May 2009


CONTACT INFORMATION

Peter L. King www.LeanDynamics.US

302-528-2700


http://www.leandynamics.us/

Documents

THE EVOLUTION OF LEAN CARS CHEMICALS · DuPont Company – 42 years R & D – 9 years Project management – 15 years Lean manufacturing & supply chain consulting – 18 years Lean