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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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