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21ST CENTURY MANUFACTURING “NOT WITHOUT THE BASICS”
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EVOLUTION OF MANUFACTURING PROCESSES, SYSTEMS AND TOOLS
• 1950-1960 – Manual systems began migrating onto the fist computers, Order Point, Min-Max, EOQ, Scheduling Boards migrated into the first MRP systems
• 1970-1980 – Computer systems became more sophisticated (DBMOP, COPICS), MRP became MRPII
• 1990-2009 – Introduction of complex ERP systems, Internet, Extranet, new tools Lean, SCM, Six Sigma, Kanban, Kaizen, VMI, etc.
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DURING THIS EVOLUTION PROCESS, SYSTEMS AND TOOLS WERE BEING
IMPLEMENTED
• New concepts were being introduced
• Companies invested in education and training
• Manufacturing came out of the closet
• Investment in Technology was being made
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MANUFACTURING SEEMS TO HAVE A COMMON GOAL
• We were all in it together
• Learning the new tools and applying these techniques
• Manufacturing began to have a common language
• The Basics were being implemented in companies from small to large
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THE FUNDAMENTAL BUILDING BLOCKS (BASICS)
• Bill of Materials• Inventory Management• Shop Floor Control (Routings)• Formal Purchasing• Master Production Scheduling• Material Requirement Planning• Capacity Planning • Forecasting• Production Control• Material Management
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THE BASICS REQUIRED
• Accuracy that approaches 100%
• Detailed and continuous training and education
• Accountability
• Management Desire
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THIS EVOLUTION HAS NEVER STOPPED
• New systems, processes and tools exist today that have been developed to meet the demands of a very complex manufacturing environment
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THE NEW ENVIRONMENT BRINGS
• Challenging Global Competition
• Tremendous Cost Pressures
• Environmental Issues
• Fast Paced Technology Change
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WORK FORCE REDUCTION
Due To Cost Pressures Companies Have Been Forced To Reduce Their Workforce
“Few Skilled Employees Wearing Many Hats”
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EDUCATION AND TRAINING
Companies have drastically cut back on the amount they spend for education and training
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KNOWLEDGE DRAIN
• Continued employee drain starting in the 60’s and continuing today at an alarming pace.
• This is leaving a large knowledge void especially when it comes to the basics
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TO COMPETE TODAY, MANUFACTURING MUST FIND A
WAY TO EMBRACE AND IMPLEMENT 21ST CENTURY
SYSTEMS, TOOLS AND PROCESSES
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21ST CENTURY TOOLS AND PROCESSES
• LEAN MANUFACTURING• LEAN SUPPLY CHAIN MANAGEMENT• SIX SIGMA• ERP• MIX MODEL SCHEDULING• KANBAN• VMI• VALUE MAPPING• S&OP• DEMAND MANAGEMENT
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DESIRE TO CHANGE
In most cases we have found that the driving reason for a company to embrace new tools and systems is when their business is facing a major threat.
Formula for Change
x xVision
ofFuture
Discontentwith
Present
Pathof
Low Risk
Equals
CHANGE
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THE CHALLENGE
• Implementation of advanced
• Systems
• Processes
• Tools
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ROAD BLOCKS
The Basic Systems, Processes and Tools cannot support the desired change to 21st Century thinking.
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REASONS FOR THE ROAD BLOCKS
• Core competencies have eroded over time and cannot support new thinking without major improvement.
• Core competencies were never in place or accurate. (Company operating on manual)
• Management and workforce desire does not match need.
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REQUIREMENTS FOR IMPLEMENTING 21ST CENTURY TOOLS
1. Well trained workforce (APICS Trained and Certified).
2. The Basics in Place and being used to run the business.
3. Accurate Data Base (BOM’s, Routings, Inventory).
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REQUIREMENTS (CONT).
4. Basic workflows in place
• Forecasting• Master Production Scheduling• MRP• Inventory Management
• Shop Floor Control
• Capacity Requirements Planning• Purchasing
4. Optimization of your Operating Systems
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EDUCATION AND TRAINING REQUIRED
• APICS Basics
• Supply Chain Certification
• Team Building
• Systems Specific
• Applying The Tools
• Six Sigma
• ?
PUT THE BASICS TO WORK
• Lean Tools and Processes
• Lean Concepts from Order to Cash
• Lean Accounting Let Finance lead the way to the money
• Lean Supply Chain Management
• Lean ERP (Optimize Your ERP Implementation)
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LEAN HOUSE WITHOUT WASTE
Customer focused – Inspired people – Community – Financial success
Reduce inventory, Increase thru-put, Reduce operating expense
Waste Elimination thru Continuous Improvement5-S Value Stream
MappingPull
ProductionKanban Visual
WorkplaceCellular
ProcessesSingle Piece
FlowSet up
Reduction
Multi-skilledWorkers
StandardWork
VariationElimination
ErrorProofing
Total ProductiveMaintenance
LeanTraining
RewardMechanisms
BalancedScorecard
Design ForManufacture
Quality FunctionDeployment
SupplierCertification
Recruiting& Initiation
ThinkingProcesses
ProblemSolving
CommunicationTools
LevelLoading
LeanAccounting
Results
Core values
Lean focus
Value-AddedMgmt.
Just-In-Time
The 5 pillars
HR Systems Mgmt. Behavior Communication TrainingEnablers
Lean Cycle
Lean Tools
Cost Quality Delivery
Flexibility Time Service
Safety Morale
TotalQualityMgmt.
Emp.Involve-ment
Supply
Chain
Mgmt.
ELIMINATION OF THE 7 WASTES
1. Waste of over-production– Quantity– Timing
2. Waste of waiting (delay)– Leveling of production flow– Line balancing– Lack of parts– Machine downtime
3. Waste of transportation– Improve plant layout– Decrease distance– Improve method
4. Waste of process itself– Should we produce these products?– Is this the best way?– Use of value engineering, value analysis
ELIMINATION OF THE 7 WASTES (cont.)
5. Waste of stock– Small lots– SMED– Inventory is costly– Space reduction
6. Waste of motion– Have parts nearby– Arm's length
7. Waste of making defective products– Prevention– Poka-yoke– Find it when made– Self-inspection– Successive inspection– Process capability
LEAN/AGILE MANUFACTURINGFACTORY FLOW CORE PRINCIPLES
1. Everything moves within four hours
2. If the downstream center can't use it – Don’t do it!
3. Everything moves to point of consumption
4. Eliminate steps in process
5. No paperwork
6. No material handling
7. No labor reporting
8. No computer transactions/systems
9. Assume "pipe line" flow (no backflow)
10. No inspection or testing (robustness)
LEAN/AGILE MANUFACTURINGFACTORY FLOW CORE PRINCIPLES (cont.)
11. No subassemblies
12. Carrier control (robustness)
13. All parts and processes under SPC control
14. No holding containers
15. Direct ship from last operation
16. Direct receipt for first operation
17. No inventory
18. Standardized processes
19. Standardized components
20. Standardized tools
21. Universal packaging
22. Universal assembly lines
23. Universal equipment
LEAN SCHEDULING THE ADVANCED PLANNER’S ROLE IN THE
LEAN MIXED-MODEL SCHEDULING PROCESS
1. Prepare ABC analysis2. Combine like items (product family - customer families)3. Identify business rules for customer service levels4. Develop inventory and shop floor philosophy
Lead time Lot sizes Safety stock5. Communicate with supply chain6. Develop setup matrix7. Develop order launch rules (priority planning)8. Develop manufacturing loading strategies Certain products to certain lines Standard setup tools for "A" items
Load leveling/final assembly scheduling rules9. Develop customer allocation matrix10. Load software order modifiers11. Document all rules12. Manage all exception messages13. Post implementation review (quarterly)
ABC ANALYSIS OF ADVANCED MANUFACTURING STRATEGIES
Primary Purpose• Inventory philosophy • Customer service philosophy
• Manufacturing strategy (mixed-model matrix)• Expediting or priority planning strategy• Purchasing strategy• Distribution strategy
InventoryClass
DollarVolume
Number ofUnits
“A” 80% 20%“B” 15% 30%“C” 5% 50%
LEAN SCHEDULING THE ADVANCED PLANNER’S ROLE IN THE
LEAN MIXED-MODEL SCHEDULING PROCESS
1. Prepare ABC analysis2. Combine like items (product family - customer families)3. Identify business rules for customer service levels
4. Develop inventory and shop floor philosophy
Lead time Lot sizes Safety stock5. Communicate with supply chain6. Develop setup matrix7. Develop order launch rules (priority planning)8. Develop manufacturing loading strategies Certain products to certain lines Standard setup tools for "A" items
Load leveling/final assembly scheduling rules9. Develop customer allocation matrix10. Load software order modifiers11. Document all rules12. Manage all exception messages13. Post implementation review (quarterly)
A B C D E F G H
(BxC) (.5xE) (BxF) (A÷Ex4)
# of Items
% ofTotal
Weeks Supply SafetyStock
SafetyStock
Weighted
Lot SizeWeeksSupply
AveCycleStock
Lot Size
Weighted
# of Setups
Per Month
A ITEMS 50 80% 2.0 1.6 1 .5 .4 200
B ITEMS 500 15% 4.0 .6 4 2 .3 500
C ITEMS 1000 5% 8.0 .4 8 4 .2 500
TOTALS 2.6 .9 1200
MIXED-MODEL MATRIX
TOTAL 3.5 WEEKS OF INVENTORY
LEAN SCHEDULING THE ADVANCED PLANNER’S ROLE IN THE
LEAN MIXED-MODEL SCHEDULING PROCESS
1. Prepare ABC analysis2. Combine like items (product family - customer families)3. Identify business rules for customer service levels4. Develop inventory and shop floor philosophy
Lead time Lot sizes Safety stock5. Communicate with supply chain
6. Develop setup matrix7. Develop order launch rules (priority planning)8. Develop manufacturing loading strategies Certain products to certain lines Standard setup tools for "A" items
Load leveling/final assembly scheduling rules9. Develop customer allocation matrix10. Load software order modifiers11. Document all rules12. Manage all exception messages13. Post implementation review (quarterly)
LEAN JOB SEQUENCINGSETUP/CHANGEOVER MATRIX (HOURS)
EXAMPLES:Sequence: D - A - C - B - ES/U hours: 10 + 4 + 4 + 2 = 20 HOURSSequence: A - B - D - E - CS/U hours: 1 + 1 + 3 + 3 = 8 HOURS
FROM
TO A B C D E
A - 3 1 10 2
B 1 - 4 2 4
C 4 6 - 4 3
D 2 1 3 - 6
E 3 2 2 3 -
KAIZENKAIZEN: KAIZEN means improvement. Moreover it means continuing improvement in personal life, home life, social life, and working life. When applied to the workplace KAIZEN means continuing improvement involving everyone – managers and workers alike.
Policy Deployment: the process of implementing the policies of a KAIZEN program directly through line managers and indirectly through cross-functional organization.
TQM (Total Quality Management): organized KAIZEN activities involving everyone in a company – managers and workers – in a totally integrated effort toward improving performance at every level. This improved performance is directed toward satisfying such cross-functional goals as quality, costs, scheduling, manpower development, and new product development. It is assumed that these activities, ultimately, lead to increased customer satisfaction.
TYPICAL KAIZEN BLITZ
1. Education KAIZEN Lean Blitz process One piece flow 5S Takt time
1. Form into teams Team training
1. Review target area Tour Process instructions Blueprints
1. Clean area Floors Machines Cabinets
Day One:
Start cell designs
1. Brainstorm flow (type of machines)
2. Identify utilities
3. Identify tooling
4. Identify inventory (signaling)
5. Identify type of parts (SMED)
6. Identify inbound and outbound suppliers and customers (carrier control)
TYPICAL KAIZEN BLITZ
Day Two:
Rough out new cell design
1. Machine and bench placement
2. Tool and fixture placement (5S)
3. Utility drops
4. Hand tool storage
5. Kanban squares (size carriers)
6. New setup reduction methodology
7. Chalk up floor
Some teams “split up” into sub teams
TYPICAL KAIZEN BLITZ
Day Three:
1. Move machines and connect
2. Move tools and fixtures onto/into position
3. Move inventory into Kanban areas
4. Practice “rapid” setup/changeover
5. Run cell
6. Start documentation
7. Painting Machines Lines on floor Etc.
TYPICAL KAIZEN BLITZ
Day Four:
1. Realign cell
2. Make changes/adjustments, etc.
3. Install sustaining processes Education/training Documentation (step-by-step) Measurements Control boards Disciplines Safety
3. Final cleanup Touch up, painting etc.
3. Final presentation
4. Victory dinner
TYPICAL KAIZEN BLITZ
Day Five:
Refine Refine Refine
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LETS DISCUSS THE FOLLOWING:
• Lean Manufacturing
• Supply Chain Management
• Vendor Managed Inventory
• Kanban
• Six Sigma
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DISCUSSION (CONT)
• ERP Implementation
• Back Flushing
• Purchasing Portals
• Capacity Planning
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PATH FORWARD
1. This begins with desire, without desire change will not take place.
2. Develop internal champions and teams that will work on optimizing the basics
3. Develop an education and training matrix by employee
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PATH FORWARD (CONT)
4. Review all business rules
5. Review and update all order modifiers
6. Implement Inventory, Bill of Material and Routing, and Cycle Counting
7. Value Map your existing systems and bench mark against 21st Century best practices
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SUMMARY
• To Meet The Competitive Challenges That Face Manufacturing Companies In The 21st Century, It Is Critical That We Continue To Evolve And Embrace Change. This Change Can Only Happen If Its Built On A Solid Foundation Of The Basics.
THERE ARE TWO WAYS TO GET ON TOP OF AN OAK TREE
YOU CAN CLIMB IT,
OR
YOU CAN SITON AN ACORN