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by Julian Kalac, P.Eng
Lean Six Sigma Master Black Belt
“Lean” is a Japanese methodology that focuses on producing high quality products faster, better and at lowest cost.
Lean is about eliminating waste (scrap, rework) and doing things right the 1st time.
Lean is NOT ELIMINATING JOBS, it’s about creating jobs by becoming more productive!
It’s NOT about work harder, but rather smarter”
Single Piece Flow Just-In-Time Eliminate Waste
•Process parts one-at-a-
time or in small lots
instead of in large
batches or economies of
scale
•Quick changeovers
•Balanced and
continuous flows instead
of stop and start
processing
•Have just the right
amount of inventory you
need, when you need it,
where you need it
•Optimize the amount
of inventory required
•Ensure that your
resources are ready to
support the flow
•Never knowingly pass
on a defect
•Improve the capability
of your processes
•Fix failure modes
when they occur
•Determine and resolve
the deeper root causes
= =
The Toyota Production System
“Classic Lean” Strength
“Supply Chain Management” Strength
“Classic Six Sigma” Strength
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Customers demand shorter lead times, improved quality & reduced prices
Increase through-put and quality and reduce time wasted and frustration by working on non-value add activities.
Gain new business
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INSANITY “Doing the same thing over and over again and expecting different results”
Albert Einstein
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6
How people feel
Keep momentum moving MOST CRITICAL TIME IN CHANGES
After results from changes are seen
The systematic elimination of waste and re-alignment of resources to deliver value to the customer faster, better, & more consistently
Lean also is:
◦ Pursuit of excellence
◦ Continuous Improvement of performance and quality
◦ .
◦ Increasing inventory “turns” and throughput
◦ Simplifying and redefining processes
◦ Measuring & monitoring processes
◦ Empowering the workforce (80%)
Leading to Leading to Eliminate
Waste Reduced Cycle
Times Increased Capacity
Focus: Eliminate waste, non-value add steps, process constraints and bottle necks that cause problems in work
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1. Define Customer requirement—TAKT TIME (demand/time)
2. Map out the Current process (Value Stream Map) and identify Value-Add vs Non-Value-Add activity
3. Get the stream to “flow” by Reducing/Eliminating the 7+1 Sins Waste, i.e. material handling, setup time, downtime, walking
4. Line balance the Cycle Times & implement internal customer “PULL” system, (continuous flow)
5. Manage the Bottleneck process by implementing Flexible Work Cells with Cross Functionally trained operators who help do each others job and to keep the “flow going”
Takt Time
◦ Drum beat of production ◦ Based on actual internal or external
demand
Available production time
customer demand
Takt Time =
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1. Producing Defects (SCRAP)
2. Reworking parts due to process problems
3. OVER-TIME to make up lost time (In-efficiencies)
4. Time Waiting i.e. Set-Up/Change-Over time, delivery of supplier materials
5. Wasting time walking around and looking for tools, material, people,
6. Moving parts from one area to another & staging them into (WIP)
7. Carrying excess Inventories of parts more than needed ($$ tied up)
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Not utilizing operators to their full potential Over relying on a select few while others are Inadequately trained Operators are unable to rotate and help each
other out to balanance the work-load High overtime increasing pressure and stress
Elements of Lead Time ◦ Lead Time = total process time from
initiation to design to build to ship to payment
◦ Batch & Queue – Accumulate orders, then wait to be processed
◦ Setup time – prepare to process next job
◦ Run time – processing time per unit Often less than 1% of cycle time
Only value added step of Lead time
Mistake proofing ◦ Eliminate/minimize chance for human error
◦ Poka yoke =
to avoid (yokeru) inadvertent errors (poka)
◦ Detection Poka yoke
Notifies of imminent process failure but requires operator interaction to avoid mistakes
◦ Prevention Poka Yoke
Stops the process before failures occur
Does not allow defects to pass through the process
Pull Systems
Production scheduling method used to link downstream activities to upstream activities
Work begins based upon a demand signal (kanban) from a downstream customer, either internal or external
Avoids overproduction, work backlog, and disconnects within a process
Nothing is produced until the downstream customer signals a need
Cycle Time is the actual production rate – It is the time
between two successive finished items coming out of your production cell.
Cycle Time is dictated by the slowest (longest) operation
in the cell.
40 min
20 min
25 min
15 min
30 min
1
5 4
3
2
•What operation controls the cycle? •What is the Critical Path? •How can you relieve or shift the bottleneck?
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High-Level Process Map
Suppliers, Departments, Customers
Mid-Level Process Map
Specific Area ex Production
Detail-Level Process Map
Specific process/operation
(most commonly used)
Stop
Start Stop
Start
Start
Stop
Stop
Customer
Batch WIP 1
Test failures
Batch WIP 2
Production
Defects detected
Customer Defects
Late Orders
QC I
Rework Test
Rejects
QC I2
REWORK1
Sub-Assy Riveting
Shipping
Supplier
Sub-Assy2 WIP2
Final-Assy Test 2
Hurry Need To ship!!!
NVA = 38%
Cost = 32%
DLV+Scrap
VA= 62%
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15 coils/shift 8 20 26 39 31 10 20
4
13
19
20 8 40 20 20 20
20 20 20 20
Start Loop coils 180 deg
twist & prep Skin Electric
PressCoil form
Model
checkM/C tapePre-tape
Final Tape
Apply
Mylar
Micalast
Load Micalastic
Impregnation
Final
Press &
CureRemove
Mylar
Final
gauge
ECP
Tape
ECP
oven
cure
Strand &
Final testPack &
ShipStop
Rotation schedule: Based on the cycle times above every 2Hrs, Rotate Final Taping operators with operators from “Skinning”, Electric Pressing. Coil forming & Model-checking.
This will increase productivity from 28 Coils/Day to 40 Coils/Day and
ensure max exposure to F/T not more then 2hrs/day. Needed: Cross-functional training and ~ 1 week learning curve to achieve 85% operator efficiency
Increased Coil Productivity by 30% from 28 to 40 Coils/day = $420K/Year
Increased direct labour utilization by 26% =$240K/Year
Reduced in-process scrap from 20% to under 4%
OEE improvement of 24% (from 62% to 84%)
Flexible work Cells & cross functionally trained workers able to help manage bottleneck efficiently
MOL order on Final Tape exposure complied with
Total Operational Savings = $ 800K
Workers can do each others work, help out when someone is sick, on holidays, quit
Workers help improve bottleneck operations by helping out each other
Variety in work making it more full-filling
Training new workers
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10
15
20
25
30
35
40
45
1 2 3 4 5 6 7 8 9 10 11 12
Avg
Co
ils/D
ay
Week
Coil Productivity by week Avg Coils/Day
Baseline
Target
30
40
50
60
70
80
90
100
1 2 3 4 5 6 7 8 9 10 11 12
Direct Labour Utilization
DLV Baseline TargetWeek
% U
tilizati
on
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Setup Time ◦ Starts when last piece of previous job is complete; ends when
first good piece of next job is complete
Internal set-up: While machine is shut-down
◦ Strive to minimize this as process is not producing parts
External set-up: While machine is working ◦ Prepare for set-up, get all tools/parts needed ready and
beside the press before starting set-up
Level 1 (Workstation Achievements) ◦ Data and reports (hard & soft) are sorted into piles,
sections, drawers and multiple file locations: Cluttered Level 2 (Workstation Achievements)
◦ Data & reports are sorted into files, binders and single locations
◦ Metrics, basic labelling, some visual controls ◦ Appearance is cleaner and more organized
Level 3 (Workstation Achievements) ◦ All files, data and reports are organize and labelled ◦ Metrics, information and 5S maps are available and
posted ◦ Maintenance of 5S activities, audits of 5S performance
Level 4 (Work Group Achievements) ◦ Common standards for metrics, filing, labelling, file
naming ◦ Simple, clear and effective Visual Controls & Driver
Measure Boards ◦ Maintenance of Work Group 5S activities, audits of 5S
performance Level 5 (Site and Business Unit (BU) Achievements)
◦ Common standards for metrics, filing, labelling, file naming
◦ Simple, clear and effective Visual Controls ◦ Maintenance of 5S activities, 5S audits
Can usually find
things
Can find things in
a reasonable
amount of time
Can find any file
or doc. In 30
seconds
Close colleagues
can find any file
or doc. In 30
seconds
Any colleague
can find any file
or doc. In 30
seconds
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