460 operations - 4.20

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Eight W astes Q uality atthe Source (TQ M) 5S System V isualC ontrols D esign for M anufacturing K aizen Team s PointofU se Storage Takt Tim e G roup Technology Q uick Setup (SM ED) Standardized W ork Plant Layout B atch Size R eductions C ellular M anufacturing V alue Stream M apping (V SM ) Single-Piece Flow TotalProductive M aintenance (TPM ) Pull/K anban System (JIT) Lean Enterprise

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Page 1: 460   operations - 4.20

Value Stream Mapping

EightWastes

Quality at theSource (TQM)

5S SystemVisual Controls

Design forManufacturing

KaizenTeams

Point of UseStorage

TaktTime

GroupTechnology

QuickSetup (SMED)

StandardizedWork

PlantLayout

Batch SizeReductions

CellularManufacturing

Value Stream Mapping (VSM)

Single-PieceFlow

Total ProductiveMaintenance (TPM)

Pull / KanbanSystem (JIT)

Lean Enterprise

Page 2: 460   operations - 4.20

Lean Management Principles1. Specify value in the eyes of the

customer

2. Identify and map the value stream and

3. Eliminate the eight deadly wastes

4. Make value flow

5. Pull work at the rate of customer demand

6. Involve and empower employees

7. Continuously improve (kaizen) in the pursuit of perfection

                                   

                                   

Page 3: 460   operations - 4.20

Six Steps to Lean

AwarenessRevolution

Step 1

ValueStream

Mapping

Step 3

The 5S's

Step 2

StandardOperations

Step 6

ProductionLeveling

Step 5

FlowProduction

Step 4

Begins in mindsof top managersInstruct and

train operatorsin new methodsIdentify wastes

and non-valueadded activitiesEmbrace spirit

of continuousimprovement

What, Where, andHow Many?Make Organization

and Cleanliness asvisual as possiblePromote the 5S's

implementation

Identify and mapthe activitiesrequired to bringa product fromraw materials tothe final customerEstablish the

Future State mapfor implementingimprovements inthe value stream

Arrange facilitylayout accordingto the sequence ofprocessesOrganize lines in

U-shaped cellsChange from lot

production tosingle-piece flowProduction

schedule based oncustomer demandrate (takt time)

Define workmethods mosteffective increating qualityproducts better,faster, cheaperRegulate

processes andinventory toprevent waste

Use takt time tocalculate daily andmonthly outputrequirementsSpread out

product varietyevenly in scheduleReduce setup

times and leadtimes on partsreplacementDesign a smoother

production flow

Page 4: 460   operations - 4.20

Value Stream Mapping Objectives of Lean Manufacturing

Get one process to make only what the next process needs when it needs it

Link all the processes from final customer back to raw material in a smooth flow without detours that generates the highest quality, shortest lead time, and lowest cost

Lean Motto “Better, Faster, Cheaper”

Key Question How can you on the shop floor actually get one

process to produce only what the next process needs when it needs it?

Page 5: 460   operations - 4.20

Cycle Time (CT) How often a part or product family actually is completed by a process,

as timed by observation. Also, the time it takes an operator to go through all of their work elements before repeating them

Value Added Time (VA) or Total Product Cycle Time (TPCT) Time of those work elements that actually transform the product in a

way that the customer is willing to pay for or total of cycle times Production Lead Time (PLT)

The time it takes one piece to move all the way through a process or a value stream, from start to finish. Envision timing a marked part as it moves from beginning to end

Usually: VA < CT < PLT Takt Time

Synchronizes pace of production to match pace of customer demand

Lean Measurements

Page 6: 460   operations - 4.20

Sensei Definition

Teacher in Japanese Sen

Idea of being before, older Sei

Life Belief that those who are older are

more experienced and therefore, presumably wiser

To be called a sensei is considered a great honor in Japan, achieved only after many years of education, experience, and dedicated service

Sen Sei

                                            

Page 7: 460   operations - 4.20

Value Stream Mapping Definition

All the actions (both value and non-value added) currently required to bring a product through the main flows essential to every product

Communication all along the supply chain regarding orders and order forecasts

Material transport and conveyance Production planning and scheduling Network of processes and operations through which

material and information flow from raw material into the arms of the customer

Objective Cover door to door production flow inside a plant,

including shipment to the plant’s customer and delivery of supplied parts and material

You design a future state and start the implementation

Page 8: 460   operations - 4.20

Value Stream Mapping Reasons for Mapping

Helps you visualize the flow rather than one process Helps you to see the sources of waste Provides common language for talking about manufacturing

processes Makes decisions about the flow apparent, so you can discuss them Ties together lean concepts and techniques Forms the basis of an implementation plan. Becomes a blueprint

for lean implementation Shows the linkages between the information flow and material flow More useful than quantitative tools and layout diagrams. It is a

qualitative tool that describes in detail how your facility should operate in order to create flow and value

Page 9: 460   operations - 4.20

Current State Mapping - 9 Steps Step 1: Determine Product Family and Company

Data Step 2: Gather Information about the Customer Step 3: Walk the Process Step 4: Document Customer Information Step 5: Gather Process and Inventory Data Step 6: Gather Information on Suppliers Step 7: Add Information Flows Step 8: Sketch How Material Moves between

Process Boxes Step 9: Draw Timeline with Total Lead Time and

Value-Added Time

Page 10: 460   operations - 4.20

Value Stream Mapping IconsProcess Name

ManufacturingProcesses

PUSHArrow

TruckShipment

Inventory

Buffer orSafety Stock

KaizenLightening Burst

Finished Goodsto Customer

Data BoxOutsideSources

I

300 pieces1 Day

MATERIAL FLOW ICONS

Uptime

OperatorWithdrawal

ManualInformation Flow

First-In-First-OutSequence Flow

Supermarket

GENERAL ICONS

INFORMATION FLOW ICONSWeekly

Schedule OXOX Coil

20

ElectronicInformation Flow

Kanban Post

WithdrawalKanban

Load LevelingSchedule ProductionKanban

SignalKanban

Kanban Arrivingin Batches

"Go See"Scheduling

Sequenced-Pull Ball

FIFO

Max 20 pieces

1

State StreetAssembly

C/T = 1 second

Uptime=85%

1 Operator

C/O = 1 hour1x

Daily

OPS460 > Course Documents > Visio Tutorials > Value Stream Mapping Icons

Page 11: 460   operations - 4.20

Furniture Value Steam Distribution

1000 chairs/wk500 Type "D"500 Type "T"

Shipping

Foam Assy

Sewing Upholstery Final AssyFabric Cut

Frame Assy

Foam Cutting

C/O = 15 mins

Batch=5 Days

Batch=60 Layer

C/O=20 minsTotal C/T=150s

C/O=2 mins

Total C/T=501s

C/O=0

Total C/T=395s

C/O=0

Suppliers

PRODUCTIONCONTROL

C/T=60 secs

C/O=0

C/T=60 secs

C/O=0

2 Weeks

I

2 Weeks

I

2 Weeks

I

Fabric WeeklyOther biweekly

Weekly Schedule

3 Days

I

1.5 Days

I

3 Days

I

1 Day

I

Daily ShipList

2-WeekSchedule

To Frane andFoam Areas

WeeklyOrders

WeeklyOrders

5 WeekForecast

Fabric

Frames

Foam

4 Days

I

5 Days

I

5 Days

I

Daily

Tickets

Furmiture ManufacturingCurrent State Map

3 6 2

Furniture Manufacturing Current State Map

Page 12: 460   operations - 4.20

Current State Mapping Steps Step 1: Determine Product Family

and Company Data Select Product Family

Create a Product-Process Matrix Rely on Downstream Processes (closer to

the customer) to differentiate products Keep it simple, do not try to produce the

perfect product-process matrix Group products into product families Select a Product Family for mapping

Gather Company Data Days per work month Number of Shifts Total Hours per Shift Time for Breaks and lunch for each Shift

Page 13: 460   operations - 4.20

Current State Mapping Steps Step 2: Gather Information about the

Customer Where is the customer(s) located? What are customer requirements? What are their packaging requirements? Product variety Number of Shifts Types of material handling for product

(pallets, containers)

Page 14: 460   operations - 4.20

Current State Mapping Steps Step 3: Walk the Process

Go the gemba (shop floor, engineering area, production control and order management department)

Walk the process at least once before you draw the Current State Map

Put yourself in the position of the customer and begin at the downstream end and walk back upstream:

Design, order, and physical product from launch back to original concept

Delivery back to sales Finished product back to raw materials

Involve everyone with knowledge to share

Page 15: 460   operations - 4.20

Current State Mapping Steps Step 3: Walk the Process

As you walk, ask the following questions: Does this product provide the value sought by the

customer? Is the customer willing to pay for this activity? Do design, order, and product flow continuously through

the necessary activities to reach the customer? Can the customer get just what they want, when they want

it without holding mountains of inventory? Is the value stream performance continuously improving?

If you answer no, ask a few more questions: Who is in charge of the value stream for each product? Who will be the change agent to lead the charge? Where is it most useful to start?

Page 16: 460   operations - 4.20

Material and Information flows

Process Name Process Name Process NameProcess NameProcess Name

III

I

MATERIAL

INFORMATION

Orders Forecast

Suppliers Customers

Value Stream MappingMaterial and Information Flows

DownstreamUpstream

Page 17: 460   operations - 4.20

Current State Mapping Steps Step 4: Document Customer

Information Define Customer with Factory Icon Place Customer Requirements in the

Data Box Rate of Delivery Mode of Transportation

Customer

Daily

Page 18: 460   operations - 4.20

Current State Mapping Steps Step 5: Gather Process and Inventory Data

Walk the Process and Sketch the Process Boxes Fill in the Data Boxes for Each Process

Cycle Time (C/T) (seconds) Changeover Time (C/O) Process Reliability (Uptime %) Final Inspection or defect % Number of People Number of Shifts Available or Effective Working Time (seconds)

Document Inventory Location Quantity in Inventory

Bake Oven

C/T = 120 secs

Uptime=100%

FIT=100%

C/O = 0

120

I

Page 19: 460   operations - 4.20

Current State Mapping Steps Step 6: Gather Information on

Suppliers Define Suppliers with a Factory Icon Who are your main suppliers? How are materials delivered? Mode of

transportation What is the quantity delivered? How often?

Supplier

Weekly

1860

I

Page 20: 460   operations - 4.20

Current State Mapping Steps Step 7: Add Information Flows

How does the customer communicate requirements?

Manual Information (Fax) Electronic Information Kanban

How does supplier know what to send and when to send it?

How are the requirements communicated to each process?

MRP Kanban “Go See” Scheduling

PRODUCTIONCONTROL

Weekly Schedule

WeeklyOrder

MRP

Page 21: 460   operations - 4.20

Current State Mapping Steps Step 8: Sketch how

material moves between Process Boxes Push System Pull System First-In, First-Out (FIFO)

Bake Oven

C/T = 120 secs

Uptime=100%

FIT=100%

C/O = 0

Washer

C/T = 60 secs

Uptime=100%

FIT=100%

C/O = 0

120

I

FIFO

Max 20 pieces

Page 22: 460   operations - 4.20

Current State Mapping Steps Step 9: Draw timeline with

total production lead time and value-added time For each Process Box

Determine value-added time for each process

Compute Days of Inventory Inventory/Daily Customer

Requirements Total Lead time (LT)

Sum of lead time through each process and inventory

Value-Added (VA) Time Sum of value-added times

60 secs

.5 Days LT=8.5 days

VA=480 secs

Final Test

C/T = 60 secs

Uptime=98%

FIT=99%

C/O = 20 mins

180

I

Shipping

For Final Test, value-added time equals cycle time

Inventory Days = 180 Units 360

Customer Requirements

= .5 Days

Page 23: 460   operations - 4.20

Current State Mapping - 9 Steps Step 1: Determine Product Family and Company

Data Step 2: Gather Information about the Customer Step 3: Walk the Process Step 4: Document Customer Information Step 5: Gather Process and Inventory Data Step 6: Gather Information on Suppliers Step 7: Add Information Flows Step 8: Sketch How Material Moves between

Process Boxes Step 9: Draw Timeline with Total Lead Time and

Value-Added Time

Page 24: 460   operations - 4.20

Acme Current State Map

Page 25: 460   operations - 4.20

EMC Supply AssignmentABCDistribution

ShippingInjectionMolding Mechanical

AssemblyElectricalAssembly

FinalAssembly

Configure &Test

8 daysgaylords

I

3220

I1,360

I

1,825

I

2,400

I

AspenPlastics

1 xWeekly

C/T=90-140 sec

Uptime=100%

C/O=0

C/T=105-180 sec

Uptime=100%

C/O=0

C/T=60-150 sec

Uptime=100%

C/O = 0

C/T= 30-60 sec

Uptime = 83%

Yield = 95%

C/O = 1 hourC/T=90-200 sec

Uptime=95%

C?O=3-5 min

PRODUCTIONCONTROL

Weekly Build Schedule

MRP

Daily Order

12 Week Forecast

80-200 sec5.33 days

90-240 sec

4.0days

105-300 sec

3.0days

60-240 sec

1.4 days29.0 days mold C/T

365-1,040 sec P/T

8 Days

30-60 sec

EMC Supply Current State Map

StanleySteel Co.

Weekly Fax

Tues &Thurs

VariousCustomers

Daily Order6 week forecast

AspenFoundry

Weekly Fax

10 Day Firm Order

6 WeekForecast

6 Week Forecast

Stamping

C/T= 1 sec

Uptime=95%

C/O= 45 min

Welding

C/T=30-45 sec

Uptime=90%

C/O= 5 min

Hand Deburr

(Alternate)

C/T=30-60 sec

Uptime=100%

C/O=0

C/T=60 sec

C/O=0

P/T=60 min

Uptime=90%

Deburr

C/T=10-30 sec

Uptime=95%

C/O=0

1,750

I

2xWeekly

4 dayscoils

I

640

I

Bake Oven

1000 lbgaylords 500 ft coils

1400I

4 days3.9

days1 second 30-45 sec

.78 days

350I

5 days 3.1 days10-60 secs 60 mins

1.94 days

7.2 days

1 1 2 2

Daily ShipSchedule

1

1

1 1

1

CustomOrders

(Various)

Custom Orders(Daily)

3,700 pcs/month

2 Shifts

1 box=3-24 pcs

185 pcs/day

4,400 pcs/month

2 Shifts

1 box=3-24 pcs

220 pcs/day

900 pcs/month

1 box = 1-24 pcs

45 pcs/day

USPS1x daily

1x Daily

6 week forecast

19.4 days paint C/T

22.5 stamp C/T

5 daysCastings

I

Page 26: 460   operations - 4.20

Exercise-Flextronics Flextronics

Printed Circuit Facility Timisoara, Romania Manufacturing

• Printed Circuit Boards and Flexible/Rigid Circuits

Assignment Apply the 9-Step Value Stream

Mapping Methodology• Round Days of Inventory to the

nearest single decimal Compute

• Total Production Lead Time

• Value Added Time

Page 27: 460   operations - 4.20

Exercise-Flextronics Solution

Page 28: 460   operations - 4.20

Value Stream Mapping Progress Value Stream Approval Form Monday, 1 November

Presentation 5-Minute PowerPoint Presentation

– 2 Team Members Organization Selected for Project History and Location Product Family for Mapping Status of Project

Assignment Due Email PowerPoint Slides to Professor Haug

– No later than noon on Monday, 1 November Team Meeting and Attendance Form

Page 29: 460   operations - 4.20

Value Stream Mapping Process

Product Family

Current State Drawing

Work Plan & Implementation

Future State Drawing

Understand how the valuecurrently flows

Design a Lean flow

Plan how to get thereand execute the plan

Define the Value Stream

Page 30: 460   operations - 4.20

Lean VSM Project Questions Does the shop floor (gemba) promote waste-free flow of parts through

the process? Is the work area messy and disorganized? Does the shop floor apply

the principles of 5S? How are these principles applied? How would you rate the organization using the Crane Aerospace 5S scoring sheet?

Is manufacturing managed through a push or pull system? How are orders communicated to the upstream process? How are components passed to the downstream process?

Does production occur in large lots, small batches or one-piece flow Is customer demand being met? Does the company work to takt time?

Have they determined the pitch? Are there many forms of inventory, transportation, waiting, and

motion waste? How long are changeover or setup times?

Page 31: 460   operations - 4.20

Current State Mapping Tips Always use paper and draw by hand with a pencil and

eraser (you will make mistakes!) Wear comfortable shoes Develop Current State Map with managers and operators

responsible for moving product from start to finish Begin with a quick walk along the entire door-to-door value

stream Map the whole value stream yourself; do not break it into

segments and assign each segment to a team member Always collect current stream information while walking

along the actual pathways of materials and information flows yourself

Begin at shipping and work upstream Bring your stopwatch and do not rely on standard times or

information that you do not personally obtain

Page 32: 460   operations - 4.20

Crane Aerospace Mapping Tips Use post-it notes paper for Value Stream Mapping

Easier to move post-it notes than to redraw the map

Use a roll of butcher paper or presentation sheets so you can use a wall and see the whole Value Stream Map

Use string or ribbon to show material & information flows Decide whether to count all parts or sample Best to map production lines between Tuesday - Thursday Use someone from the line to walk you through it first, post-it note

process, come back and get real data Calculate production lead time for inventory triangles by dividing

quantity of inventory by the customer daily requirement This is a really neat trick! It turns a count of inventory into the number of

production days that inventory represents

Title and date map See with your hands. No arm chair Lean!

Page 33: 460   operations - 4.20

Crane Aerospace Value Stream Map

Page 34: 460   operations - 4.20

Crane Aerospace Value Stream Map Detailed

Page 35: 460   operations - 4.20

Typical Process Data Box C/T (cycle time)

Time that elapses between one part coming off the process to the next part coming off, in seconds

C/O (Changeover time or Setup Time) Time to switch from producing one product to another

Uptime (on-demand machine uptime) Available or Effective Working Time (in seconds) Overall Equipment Effectiveness (OEE) EPE (economic production batch size)

“every part every _____________” Number of operators Number of product variations Pack size Scrap rate

Page 36: 460   operations - 4.20

Overall Equipment Effectiveness Definition

Overall Equipment Effectiveness (OEE) is a total productive maintenance (TPM) measure of how effectively equipment is being used and operating

Computation Calculated from 3 elements

Availability Rate - measures downtime losses from equipment failures and adjustments as a percentage of scheduled time

Performance Rate - measures operating speed losses – running at speeds lower than the design speed and stoppages lasting a few seconds

Quality Rate - expresses losses due to scrap and rework as a percentage of total parts run

OEE = Availability Rate ● Performance Rate ● Quality Rate Example

OEE = 0.90 ● 0.95 ● .0.99 = .846 ● 100 = 84.6%

Page 37: 460   operations - 4.20

OEE Elements

Page 38: 460   operations - 4.20

OEE Example

Page 39: 460   operations - 4.20

Precision Machining Fabricates water jet parts CNC Auto Lathe Center

CNC Machining Data Schedules 460 minutes per shift Design production rate 845 parts

per shift Operates time 420 minutes per shift Actual production 805 parts Inspection rejects 40 parts

Assignment What is the Overall Equipment

Effectiveness?

Exercise: OEE

Page 40: 460   operations - 4.20

Targeting Improvement Key Questions for Improvement

What is the mission statement for the organization?

What are the company’s strategic goals and objectives?

What type of improvements are needed and why?

How do these improvements support the business goals?

What is the cost and time frame for achieving these improvements?

How do we measure lean key performance indicators for evaluating improvements?

Page 41: 460   operations - 4.20

Analyzing the Map Scan the Current State Map for waste

Overproduction and Idle Materials Process time versus waiting time

Non Value-Added processes Defects

Fault finding and rework loops Incapable Processes

High scrap rates Poor Uptime percentages Low Overall Equipment Effectiveness

Transportation Long distances between processes

Mark waste problems on copy of the Current State Map

Page 42: 460   operations - 4.20

Current State Metrics Total Value Stream Lead time (LT)

Sum of lead time through each process and inventory

Value-Added (VA) Time Sum of value-added times

On-Time Delivery Defective Parts Per Million (PPM) Uptime Available Work Time per Shift

60 secs

.5 Days LT=8.5 days

VA=480 secs

Final Test

C/T = 60 secs

Uptime=98%

FIT=99%

C/O = 20 mins

180

I

Shipping

For Final Test, value-added time equals cycle time

Inventory Days = 180 Units 360

Customer Requirements

= .5 Days

Page 43: 460   operations - 4.20

Lean Performance Metrics Inventory Turns

Annual cost of goods sold/Average value of inventory investment

Days of inventory on-hand Defective parts per million (PPM) Total value stream work-in-process inventory Total product cycle time or total value-added time Total production lead time Capacity available per shift Total uptime

Actual operating time/Available production time

On-time delivery Overall equipment effectiveness (OEE) First time yield (FTY) capability

Page 44: 460   operations - 4.20

Improvement Targets Reduce total production lead time Reduce inventory Reduce setup or changeover times Reduce cost

Labor Scrap Rework

Increase production capacity Decrease floor space required Reduce order lead time

Page 45: 460   operations - 4.20

Value Stream Mapping Process

Product Family

Current State Drawing

Work Plan & Implementation

Future State Drawing

Understand how the valuecurrently flows

Design a LEAN flow

Plan how to get thereand execute the plan

Define the Value Stream

Page 46: 460   operations - 4.20

The Future State Map“You can’t get to where you want go if you

don’t know where it is”Chinese Proverb

The Future State Map is drawn using the same format as the Current State Map, but all improvements are included on the map

Provides a basis for creating a detailed implementation plan to get from the Current State to the Future State

Page 47: 460   operations - 4.20

Future State Icons

Supermarket

Coil

20

OXOX

FIFO

Max 20 pieces

Kaizen

Kanbanpaths

Signalkanban

Withdrawalkanban

Productionkanban

First-inFirst-out

flow

Kanbanpost

Withdrawal

Kanban arrivingin batches

Kaizenlightning

burst

Leveling mixand/or volume

Future State Icons

Kanbanpaths

Sequenced-Pull Ball

Page 48: 460   operations - 4.20

3 Stages of Future State Mapping Focus on Demand

Determine Takt time and pitch Determine whether you need a finished goods supermarket Determine whether you can meet demand using current production methods Determine whether you need buffer and safety inventories Determine which improvements methods you will use

Focus on Flow Perform line balancing Plan for work cells Determine how to control production upstream Determine which improvement methods you will use

Focus on Leveling Decide on paced withdrawal or a heijunka system and design or refine the kanban

system Determine the route of the runner and map all material and information flow Determine which improvement methods you will use and add useful data

Page 49: 460   operations - 4.20

Takt Time

EightWastes

Quality at theSource (TQM)

5S SystemVisual Controls

Design forManufacturing

KaizenTeams

Point of UseStorage

TaktTime

GroupTechnology

QuickSetup (SMED)

StandardizedWork

PlantLayout

Batch SizeReductions

CellularManufacturing

Value Stream Mapping (VSM)

Single-PieceFlow

Total ProductiveMaintenance (TPM)

Pull / KanbanSystem (JIT)

Lean Enterprise

Page 50: 460   operations - 4.20

Future State Questions/Decisions Demand

1. What is the takt time for the chosen product family? Takt Time is the average rate of delivery Requires concentrated effort to:

– Provide fast response to problems

– Eliminate causes of unplanned downtime

– Eliminate changeover time in downstream, assembly-type processes

Page 51: 460   operations - 4.20

Takt Time Takt Time

The rate of customer demand or how often the customer requires one finished item

Takt time is used to: Design assembly and pacemaker processes Assess production conditions Calculate pitch Develop material handling containerization and routes Determine problem-response requirements

Heartbeat of a Lean System

Page 52: 460   operations - 4.20

Takt Time Calculation Synchronizes pace of production to match pace of sales

Available Work Time per ShiftTakt time =

Customer Demand Rate per Shift

Takt Time = AWT / CR

Takt time = Targeted Operational Cycle Time

AWT = Available Work Time per shift in seconds

CR = Customer Demand Rate in units per shift

Pitch = (Takt time • pack size) Pack size is the number of parts one finished goods container holds Example: (30 seconds • 20 pieces per container) = 10 minutes

Page 53: 460   operations - 4.20

Takt Time Examples Takt Time Examples

Takt Time = AWT / CR

= (28,800 seconds) / 1600 loaves per shift

= 18 seconds

Takt Time = AWT / CR

(page 44) = 27,000 seconds / 455 pieces

= 59 seconds

Takt time = Targeted Operational Cycle Time

AWT = Available Work Time per Shift = 27,000 seconds per day

CR = Customer Demand Rate per Shift = 455 pieces per shift

Page 54: 460   operations - 4.20

60 seconds27,600 sec

460 pieces

Acme Takt Time

Page 55: 460   operations - 4.20

Future State Questions/Decisions Demand

2. Should you build directly to customer order to shipping or to a finished goods supermarket?

Supermarket A controlled standard inventory of items that is used to schedule production at an upstream

process and supply downstream processes

Acme Stamping Should Acme build steering brackets to a finished goods supermarket or directly to

shipping?

Steering brackets are small and easy to store parts Only two product varieties Customer demand is unpredictable Solution: Finished Goods Supermarket/Kanban = 20-bracket trays

Page 56: 460   operations - 4.20

20

Kanban based on customer packaging 20-bracket

tray

Build to Shipping or Supermarket

20

Page 57: 460   operations - 4.20

Material flow3. Where can you use continuous flow processing? Continuous flow produces one piece at a time with

each piece passing immediately to the next process Mapping icon for continuous flow is the Process Box Continuous flow combines two or more processes into one

Future State Questions/Decisions

Weld + Assembly

Page 58: 460   operations - 4.20

Continuous Flow Production Each process makes only the one piece that the next

process needs. Motto: “Make one, Move one” Transfer batch size is one Also called “Single-Piece Flow” or “One-Piece Flow”

Batch-and-Queue Producing more than one piece of an item and then

moving these items forward to the next operation before they are all actually needed there

Items wait in line for the next processing step Also called “Batch-and-Push” or “Push System”

Continuous Flow

Page 59: 460   operations - 4.20

Batch-and-Queue Processing

Continuous Flow Processing

Process time/product = 1 min

Original Batch = 10 parts

Revised Batch = 1 part

Page 60: 460   operations - 4.20

Operator Balance Chart

Acme Continuous FlowAcme Stamping: Operator Balance Charts

Current Cycle Times Cycle Times After Process Kaizen

46 s

62 s

Spot

Wel

d #2

Ass

embl

y #1

39 sSp

ot W

eld

#1

20

10

0

60

50

40

30

60

50

Ass

embl

y

Wel

dA

ssem

bly40 s

30

Stam

ping

1 sec

Ass

embl

y #2

takt time60 seconds

20

10

0

Wel

d

40

Page 61: 460   operations - 4.20

Cell Layout Guidelines 1 Place machines and workstations close together to

minimize walking distance Remove obstacles from the efficient operator walking

path Try to keep the inside width of a cell at around 5 feet

to allow flexibility in reallocating work elements among team members

Eliminate spaces and surfaces where work-in-process inventory can accumulate

Maintain consistent heights for work surfaces and point of use

Locate the leadoff and final processes near one another Avoid up-and-down and front-to-back transfers of the

workplace

Page 62: 460   operations - 4.20

Cell Layout Guidelines 2 Use gravity to assist operators in placing parts and materials

wherever possible Install flexible utility drops from the ceiling to make layout

adjustment easier Keep hand tools as close as possible to the point of use and orient

them in the direction that they are used by the operator Use dedicated hand tools instead of tools that require bit changes Absolutely ensure safety and good ergonomics Keep manual, operator-based work steps close together to allow

flexible work element distribution and value-added operator work Segregate Level 5 automation and continuous-cycle operations (like

ovens) from manual operators or operator-based work flow Level 5 automation (Automatic load, cycle, unload, transfer)

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Cell Work Distribution 1 Split the Work

Work divided among operators so each performs one takt time worth of the total work content

First operator assigned first and last work elements

The Circuit (Rabbit Chase) Assigning all work elements to

every operator and having the next operator follow the first operator with a gap of a few work stations

Limited to 2-3 operators skilled in every work element

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Alternative Work Combinations

1Lathe

2Drill

6Drill

5Inspect

4Mill

3Mill

10Pack

9Inspect

7Test

8Drill

25 Seconds

25 Seconds 27 Seconds

Market demand = 220,000 units per year

Takt time = 27 seconds Split the Work

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Cell Work Distribution 2 Reverse Flow

Operators move in the opposite direction from the work pieces flowing through the cell

Operators start at finished goods Requires one work-in-process

product holding position between each operation

Combinations Combination of splitting the

work and a circuit or reverse flow

Some operators work at specific stations while one or more pairs work in circuits or reverse flows

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Staffing for Increased Demand

1Lathe

2Drill

6Drill

5Inspect

4Mill

3Mill

10Pack

9Inspect

7Test

8Drill

18 Seconds

16 Seconds

36 seconds

Market demand = 312,000 units per year

Takt time = 19 seconds

Combination Split the Work and

Circuit

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Cell Work Distribution 3 One-operator-per-station

Manual work with no automated equipment

Each operator performs all of their work elements at a single work station and then passes work on to the next station

The Ratchet Number of work stations one

greater than the number of operators

Each operator works at two work stations and moves back and forth between stations every takt increment

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Cellular Manufacturing Advantages Reduced Material Handling Reduced Tooling Reduced Setup Time Reduced Expediting Reduced Work-In-Process (WIP)

Inventory Reduced Part Makespan Improved Human Relations Improved Operator Expertise Shorten design time by starting

with a similarly designed part

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Cellular Manufacturing Disadvantages

Increased Capital Investment Lower Machine Utilization Decreases Flexibility Possible Operator Conflicts

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Material Flow4. Where will you need to use supermarket pull systems

to control production of upstream processes? Use supermarkets where continuous flow is not

possible upstream and you must batch production Some processes operate at very fast or slow cycle times and

need to change over to multiple product families Some processes are not close enough for single piece flow

(location of suppliers) Some processes have too much lead time or cannot be coupled

with other processes Control production to downstream processes with supermarket-

based pull systems

Future State Questions/Decisions

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Supermarket

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Pull Systems Kanban

Customer withdraws what it needs when it needs it using “Withdrawal Kanban”

Supplying process produces to replenish what was withdrawn using a “Production Kanban”

First In, First Out (FIFO) Lane between two decoupled process. FIFO Lane or chute

holds a specific amount of inventory When the FIFO lane gets full, the supplying process stops

producing until the customer has used some of the inventory

Sequenced Pull There are too many part numbers to hold inventory of

each in a supermarket Supplying process produces a predetermined quantity

directly to the customer process’s order Sometimes called the “golf ball system”

FIFO

Max 20 pieces

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Number of Kanban Card Sets

k = Expected demand during lead time + Safety Stock

Size of container

k = D L ( 1 + S )

C

k = Number of kanban card sets (a set is a card)

D = Average number of units demanded over some time period

L = Lead time to replenish an order (same units of time as demand)

S = Safety stock expressed as a percentage of demand during lead time

C = Container size

73

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Kanban Card Determination Problem data

A switch assembly is assembled in batches of 4 units from an “upstream” assembly area and delivered in a special container to a “downstream” control-panel assembly operation

The control-panel assembly area requires 5 switch assemblies per hour

The switch assembly area can produce a container of switch assemblies in 2 hours

Safety stock has been set at 10% of needed inventory

74

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Kanban Calculations k = Expected demand during lead time + Safety Stock

Size of container

k = D L ( 1 + S ) = 5 (2) (1.10) = 2.75 or 3

C 4

75

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Acme SupermarketsState StreetAssembly

18,400 pces/mo12000 "L"6400 "R"

2 Shifts

Tray=20 pieces

1xDaily

MichiganSteel Co.

PRODUCTIONCONTROL

6-WeekForecast

DailyOrder

Shipping

Staging

Stamping

200 T

1

EPE=1 Shift

C/O < 10 mins

Weld+Assembly

Takt=60 seconds

C/O=0 Uptime=100%

C/T=56 seconds

2 Shifts

L

R

Coils

(At the press)

20

2 days

Coi

ls

Coils

BinBatch

1.5 days

Daily(Milk Run)

Coils Supermarket

Finished Goods Supermarket

Stamped Parts Supermarket

Milk Run

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First In, First Out (FIFO) Lane

An Example of a “First In, First Out (FIFO) Lane”

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Information Flow5. At what single point in the production stream will you

send the customer schedule to trigger production? Schedule at only one point (pacemaker process) Pacemaker Process

Series of production steps that are dedicated to a particular product family and respond to orders from external customers

How well you operate here determines:

(1) how well you serve the external customer

(2) the demand pattern for upstream fabrication processes

Material transfers from pacemaker to finished goods needs to occur as a continuous flow

Future State Questions/Decisions

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Schedule

Schedule

Scheduling

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Information Flow6. How will you level the production mix at the pacemaker

process? Heijunka

The act of leveling the variety and/or volume of items produced at a process over a period of time

Used to avoid batching and volume fluctuations, especially at pacemaker process

Mapping icon for leveling inserted into an information flow arrow:

Future State Questions/Decisions

OXOX

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Pacemaker Process!50B 70A 80C 50B 70A 80C

Mixed Production

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Daily delivery Kanban = 20 pieces/tray 30 trays of “L” drive

brackets (600 pieces) 16 trays of “R” drive

brackets (320 pieces) Level the Weld/Assembly

cell’s production mix

Acme HeijunkaState StreetAssembly

18,400 pces/mo12000 "L"6400 "R"

2 Shifts

Tray=20 pieces

1xDaily

PRODUCTIONCONTROL

Shipping

Staging

920 pieces/day

Weld+Assembly

Takt=60 seconds

C/O=0 Uptime=100%

C/T=56 seconds

2 Shifts

L

R

20

2 days

20

OXOX

Daily Order

2020

20

Production Mix First Shift Second Shift RLLRLLRLLRLLRLLRLLRLLRL LRLLRLLRLLRLLRLLRLLRLLR

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Information Flow7. What increment of work will you consistently release

and take away at the pacemaker process? (leveling the volume)

Paced withdrawal A timed sequence of withdrawal of finished product from the

pacemaker process

Pitch Basic unit of your production schedule for a product family Frequency which you withdraw finished goods from a pacemaker

process as well as the schedule of release to that process Often based on the customer’s ship quantity Pitch = Takt Time • Pack Size

Future State Questions/Decisions

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= Takt Time • Pack Size

Leveling the Volume

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Pitch Pitch = Takt Time • Pack Size Pitch = 60 seconds • 20 brackets per tray = 20 minutes

Acme Pitch

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Supporting Improvements8. What process improvements will be necessary for

the value stream to flow as your future-state design specifies (uptime, changeover, training)?

Reduction in changeover time and batch size at stamping Goals: “Every Part Every Day” to “Every Part Every Shift”

Elimination of 10 minute changeover time between “L” and “R” drive fixtures in welding

Improvement in Uptime (80%) of Spot Weld #2 because tied to other processes in continuous flow

Elimination of waste in weld/assembly cell to reduce work content to less than 165 seconds to require only 3 operators

Mark these ideas with lightening kaizen burst

Future State Questions/Decisions

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Implementation Process

Value Stream Manager Point Kaizen

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Acme Future-State Map

State StreetAssembly

18,400 pces/mo12000 "L"6400 "R"

2 Shifts

Tray=20 pieces

Acme Stamping Future State Map

1xDaily

MichiganSteel Co.

Daily(Milk Run)

PRODUCTIONCONTROL

DailyOrder

90/60/30 DayForecasts

6-WeekForecast

DailyOrder

1.5 days 1 day1 second

2 days168 seconds

LT = 4.5 days

VA = 169 secs

Shipping

Staging

Stamping

200 T 1

920 pieces/day

EPE=1 Shift

C/O < 10 mins

Weld+Assembly

Takt=60 seconds

C/O=0 Uptime=100%

C/T=56 seconds

2 Shifts

total work<168 secsWeld

Changeover

WeldUptime

Changeover

L

R

Coils

(At the press)

20

2 days

20

Coi

ls

Coils

BinBatch

1 day

OXOX

Daily Order

2020

20

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Acme Future State Performance

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House of Lean-5S

EightWastes

Quality at theSource (TQM)

5S SystemVisual Controls

Design forManufacturing

KaizenTeams

Point of UseStorage

TaktTime

GroupTechnology

QuickSetup (SMED)

StandardizedWork

PlantLayout

Batch SizeReductions

CellularManufacturing

Value Stream Mapping (VSM)

Single-PieceFlow

Total ProductiveMaintenance (TPM)

Pull / KanbanSystem (JIT)

Lean Enterprise

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Six Steps to Lean

AwarenessRevolution

Step 1

ValueStream

Mapping

Step 3

The 5S's

Step 2

StandardOperations

Step 6

ProductionLeveling

Step 5

FlowProduction

Step 4

Begins in mindsof top managersInstruct and

train operatorsin new methodsIdentify wastes

and non-valueadded activitiesEmbrace spirit

of continuousimprovement

What, Where, andHow Many?Make Organization

and Cleanliness asvisual as possiblePromote the 5S's

implementation

Identify and mapthe activitiesrequired to bringa product fromraw materials tothe final customerEstablish the

Future State mapfor implementingimprovements inthe value stream

Arrange facilitylayout accordingto the sequence ofprocessesOrganize lines in

U-shaped cellsChange from lot

production tosingle-piece flowProduction

schedule based oncustomer demandrate (takt time)

Define workmethods mosteffective increating qualityproducts better,faster, cheaperRegulate

processes andinventory toprevent waste

Use takt time tocalculate daily andmonthly outputrequirementsSpread out

product varietyevenly in scheduleReduce setup

times and leadtimes on partsreplacementDesign a smoother

production flow

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5S System and Visual Control 5S System and Visual Control makes:

Workplace production activities, tools, parts, processes, and results visual and clear, so defects and wastes are self apparent and obvious to everyone involved

Foundation: “A place for everything, and everything in its place, clean and ready for use”

Five Pillars of the Visual Workplace (5S’s) A method used by front-line workers to organize a visual and lean

workplace to improve safety, reduce waste, simplify work processes, improve equipment maintenance, and ensure product quality

Seiri (say-ree) Organization Sort Seiton (say-ton) Orderlines

Stabilize Seiso (say-so) Cleanliness Shine Seiketsu (say-ket-soo) Standardized Cleanup Standardize Shitsuke (she-soo-kay) Discipline Sustain

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Five Pillars of the Visual Workplace Japanese English Boeing Description of the Steps Seiri Organization Sort Distinguish between necessary

and unnecessary items in the workplace and discard the latter

Seiton Orderliness Simplify Arrange all items remaining after seiri in an orderly manner so they can be easily accessed

Seiso Cleanliness Sweep Keep the machines and working environments clean, removing stains, spots, debris, and dirt

Seiketsu Standardized Standardize Expand the concepts of cleanliness Cleanup to oneself and continuously practice the above three steps

Shitsuke Discipline Self-Discipline Build self-discipline and establish (Sustain) standards for engaging in and

improving the previous four steps■ Safety

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Meaning of the 5S’s

Sort Simplify

SweepStandardize

Self-Discipline

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Eight Tips for Implementing 5S1. The president must take the ultimate

responsibility

2. Every 5S policy decision requires company authorization

3. Promote company-wide participation

4. Explain the 5S’s until everyone understands them

5. Be persistent and meticulous

6. Be quick and ruthless when red-tagging and making signboards

7. Have the President participate in 5S patrols

8. 5S’s are the company’s road to survival

Company

5S

Program

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Sort - Organization Definition

Organization means clearly distinguishing between (1) what is needed and to be kept; (2) what is unneeded and to be discarded

Motto: “When in doubt, throw it out”

Wastes in factories and offices Unneeded inventory lead to extra cost Unneeded documents and materials require additional

warehouse space and shelving Unneeded transportation requires extra pallets and carts Extra people needed to manage the growing inventory Unneeded items make designing layout more difficult Red-tag strategy means sticking red tags on every unneeded

item in a facility that is waste or appears to contribute to waste

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Example of a Red Tag RED TAG

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Red Tag and Signboard Strategies

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Dilbert – 5S Program

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Simplify - Orderliness Definition

Orderliness means organizing the way needed things are kept so that anyone can find and use them easily

Essential Points For the necessary items arrange them so that everyone can see

where it is kept, can easily pick it up, use it, and return it to its proper place

Standardization of where items are kept Signboard strategy is implemented to clearly display where to

keep all the needed items Other techniques: First-In-First-Out (FIFO), Painting,

Improving the Layout of Parts and Operator Motion, and Document Organization

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Type

Identification Markers

Location Markers

Quantity Markers

Standard Methods

Tags

Andon

Kanban

Performance Display

Defect Display

Personnel Board

Examples

Signboards, name labels, photos, or shapes of items.

Tape strips, color coding, numbering.

Signs indicating number (min/max), standard files, number of spaces for itemsindicators of normal operating values.

Charts of cycle time and work sequence, standard procedures, flowcharts,photos of operation or process flows.

Errors, excess or extremes (red flag), “broken” items or process

Visual (lights, flags) and audio (bells, buzzers, tones) signals to draw immediateattention for help.

Card, empty container or blank information space signaling that activity or

Process schedule and quantities, quality, costs, safety, or improvement activities.

Tables or boards or other forum / venue showing defective processes, information, or paperwork.

Availability (in/out), assignment and location of department personnel, cross-training status vs. plan.

movement is authorized.

Types of Simplifying

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Inventory Signboards

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Standard Responsibility, Authority, Accountability

(RAA) Placard

Color Code Flag

Boeing-Point of Use

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Crane 4-819 RHGS Incoming Material

Before 5S After 5S

Inventory Signboards

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Alcoa-Intalco Example Before 5S After 5S After Visual Blitz

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Shadow Boards and Identification

Shadow board

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Crane Aerospace Shadow Board

Lazy Susan for hand tools

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Tool Pallet Kit Examples

Boeing-Shadow Boxes

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Arrange and Identify for ease of use

“Anyone should be able to easily understandproper arrangement and sub-optimal arrangement.”

Crane Simplify, Arrange, Identify

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Orderliness Improvements

Before Improvement After Improvement

Before Improvement

Before Improvement After Improvement

After Improvement

Work Method Improvements

1. Equipment Operation

2. Retrieval of Parts

3. Layout of Parts

2

31

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Sweep - Cleanliness Definition

Cleanliness means sweeping floors and keeping things in order

Essential Points The “make it shine” strategy is part of daily work habits Regular company-wide cleanup days should be held two to four

times per year When you visit a company’s factory or office, go to the toilet and

look around. Its condition will indicate the state of the company’s cleanliness improvement consciousness

Purpose Turns the workplace into a nice, bright place for everyone Keep everything in top condition so when someone needs to use

something, it is ready for use

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Standardize-Standardized Cleanup Definition

Standardized Cleanup means the Organization, Orderlinesss, and Cleanliness are being maintained

Essential Points Conditions revert to their previous levels People must learn to regularly deal with unneeded items and

mixed up tool storage sites at the end of every day Floor must be swept of litter every two to three days It does not take long for production and office workers to start

accumulating unneeded items Implement the “5 Whys” (5W) or “5 Whys and 1 How” (5W1H)

approach to determine the root cause for problems in the factory Standardized Cleanup exists only as long as Organization,

Orderliness, and Cleanliness are maintained

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5 Whys The U.S. Standard railroad gauge (distance between the rail tracks)

is 4 feet and 8.5 inches, which is a very odd number Why was that gauge used?

Because that is the way they built the railroads in England, and the U.S. railroads were built by English expatriates

Why did the English people build them like that?Because the first railroads were built by the same people who built the pre-railroad tramways, and that is the gauge they used

Why did “they” use that gauge then?

Why did the wagons use that odd wheel spacing?

Why did the old wheel ruts have that distance for the wheel spacing?

Because if they tried to use any other spacing, the wagons would break on some of the old, long distance roads because that was the spacing of the old wheel ruts

Because the first long distance roads in Europe were built by Rome for the benefit of their legions, and the ruts were the spacing of Roman war chariots based on the back ends of 2 horses

Because the people who built the pre-railroad tramways used the same jigs and tools they used for building wagons, which used that wheel spacing

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“And, Now for the Rest of the Story” Space Shuttle Rocket Boosters

The Space Shuttle has two giant solid rocket boosters (SRBs) built by Morton Thiokol at a factory in Utah

The engineers who designed the SRBs wanted them wider However, the SRBs had to be shipped by train from Utah to the

launch site in Florida The railroad from Utah ran through a mountain tunnel The SRBs had to fit through the tunnel, and the tunnel is slightly

wider than the railroad track

Result The design width specification of one of the major components

on the world’s most advanced space vehicle was determined by the width of a Roman chariot or more accurately by the width of two horse’s rear ends

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Crane Level 3 Office

“The Goal”

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Standardize Process Define “best” way for each process

Document the process making changes clearly

Communicate the new process to everyone

Review 5S steps and discuss “lessons learned”

Standard Work Standard Work Sheet Time Observation Form Operator Balance Chart Standard Work Combination Form Process Capacity Form

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Self-Discipline or Sustain Definition

Discipline means always following specified (and standardized) procedures and continually looking for ways to improve

Essential Points Discipline is best taught by the example and behavior of factory

supervisors and managers Three points for enforcing discipline

Be compassionate, not passionate Take care of the problem immediately Employees should be criticized by their workplace leaders, not

directly by the supervisor or manager Visual Control through red-tags, kanbans, signboards, and

painting divider lines to show if Sort (Organization), Simplify (Orderliness), and (Sweep) Cleanliness, are being maintained

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Building Discipline1. Be polite in addressing others, starting with “good morning”

2. If you have a work uniform, wear it neatly and with pride

3. Good workplaces are made and destroyed by 5S conditions

4. Divider lines can mark the difference between life and death

5. Sort, Simplify, and Sweep must be maintained

6. Apply Simplify to disorder and Sweep to dirt

7. Inspect before working

8. Immediately reprimand any slacking off on 5S conditions

9. Know how to correct others and receive corrections from others

10. Address the source or root cause of disorder or dirt

11. Money is limited but wisdom is limitless

12. Stick to a hands on, here and now approach

13. For reports, 3 pages are unsatisfactory, 2 pages are better, & 1 page is best

14. For meetings, 3 hours are wasteful, 2 hours are better, & 1 hour is best

15. Improvement requires effort and effort requires enthusiasm

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Visible Workplace

“With the 5S’s implemented, we have an easy to observe gemba (workplace), and the andon clearly shows

where and when we have problems”

Andon

Jidoka

Gemba5S’s

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Crane 4-819 RHGS Assembly Bench

Before 5S After 5S

• Lower shelf is used to track production through the assembly and test operations• In the above photo - 3 units are ready for ATP and 1 unit is ready for final inspection• The top shelf is for customer returns and units in rework loop

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Crane 5S Level of Factory Excellence

Level Sorting Distinguish between what is needed and not needed Level of Excellence Comments1 Necessary and unnecessary items are mixed together in the work area. 1 2 3 4 52 Necessary and unnecessary items are separated (excess inventory, Obsolete tools & Equip)3 All unnecessary items have been removed from the work area.

4Documented method has been established to maintain work area free of unnecessary items. Use of Red Book.

5 Employees continually seeking improvement opportunities.

Level Simplifying A place for everything and everything in its place Level of Excellence Comments

1 Tools, supplies and materials randomly located. 1 2 3 4 52 Designated location established for all items as needed.3 Designated locations are marked to make organization more visible

(color coding, outlining, labeling, numbering, etc).

4Documented method has been established to recognize with visual sweep if items are out of place or exceed quantity limits. Use of Red Book.

5Vehicle developed to provide continual evaluation and process in place to implement improvements.

Level Sweeping Does this area present a will organized professional environment? Level of Excellence Comments1 No Visuals in place. Factory / work areas and machinery are dirty and disorganized. 1 2 3 4 52 Some Visuals in place & Work / break areas are cleaned on a regularly scheduled basis.3 Visual controls in place as required & Work / break areas are cleaned daily.4 Visual controls practiced continually. Housekeeping tasks are practiced continually. Red Book

5General appearance of excellent visual controls. Area has developed a method of preventative cleaning and maintenance.( Stop the mess before it happens)

Level Standardizing Develop standards and stick to them Level of Excellence Comments1 No attempt is being made to document or improve current processes. 1 2 3 4 52 Methods are being improved but changes haven't been documented.3 Information on process improvements and reliable methods are shared with employees.

4Changes are being incorporated and documented.(Past 5S sheets, Value Stream Implementation Plans, Process Improvement Sheets. OpEx Metrics are being tracked and demonstrate area improvement). Use of Red Book.

5Employees are continually seeking elimination of waste with all changes documented and information shared with all.

Level Self-Discipline Set good example, stick to the rules and follow up the other 4S. Level of Excellence Comments1 Minimal attention is spent on adhering to the 5 S’s. 1 2 3 4 52 A recognizable effort has been made to adhere to the 5 S’s.3 Adherence to 5 S policy and procedures.4 Documented methods have been put into place to ensure Self-discipline. Use of Red Book5 General appearance of a confident understanding of and adherence to the 5S program.

EVALUATOR'S NAME:_____________________________ TOTAL 5S LEVEL OF EXCELLENCE: _________________