harri haapasalo lean production
Post on 30-May-2018
216 Views
Preview:
TRANSCRIPT
-
8/14/2019 Harri Haapasalo Lean Production
1/21
arri Haapasalo: Lean production 5.4.2006
niversity of Oulu, Waste minimizationnd resources use optimization course 1
Lean productionHarri Haapasalo; D.Sc. Tech., M.Sc. Econ.
Professor in Industrial Engineering and Management
Department of Industrial Engineering and Management
e-mail: harri.haapasalo@oulu.fi, office TF320
Lean production is a philosophy the philosophy of avoiding waste in
the production system (Parks 2003)
Waste minimization and resources use optimization
Outline1.Defining Lean Production2.What leads us to Lean?3.How to Implement lean?4.Where to go after Lean Agility? Value Nets?
Lean production Is a multi-dimensional approach that incorporates a wide range of
management practises, including: just-in-time, quality systems, work teams, cellular manufacturing, supplier management, etc.,in an integrated system
The main force is that these systems can operate synergistically tocreate efficient and high quality system that manufactures finishedproducts at the pace of customer demand with little or no waste.(zbayrak, 2005)
The focus of lean approach is essentially the elimination of wasteor muda.
Shortly defined lean is doing more with less. (Agarwal et al. 2005)
-
8/14/2019 Harri Haapasalo Lean Production
2/21
arri Haapasalo: Lean production 5.4.2006
niversity of Oulu, Waste minimizationnd resources use optimization course 2
Five fundamental concepts to lean
thinking to promote lean production
value,
value stream,
flow,
pull production and
perfection
Another approach definingcornerstones for Lean manufacturing
Cellular Manufacturing
Pull Scheduling (Kanban)
Six Sigma/Total Quality Management
Rapid Setup
Team Development
-
8/14/2019 Harri Haapasalo Lean Production
3/21
arri Haapasalo: Lean production 5.4.2006
niversity of Oulu, Waste minimizationnd resources use optimization course 3
From functions to processes - flow
M
anagement
P
roduction
Sales
Functions rules
M
anagement
P
roduction
Sales
Core prcesses defined
But functions still rules
M
anagement
P
roduction
Sales
Core processses
Are dominating
Product creation
Order delivery process
Customer relationship MGMT
The idea is to emphasize
leanness in horizontal level
Prosess map by Rummler andBrache
Customer
Sales
Prodcution
Puchasing
Generate
order
Check
order
Receive
order
Submit
order
Receive
order
Start manu-
facturing
Purchase
parts
Pack
product
Receive
parts
Forward
product
Receive
product
-
8/14/2019 Harri Haapasalo Lean Production
4/21
arri Haapasalo: Lean production 5.4.2006
niversity of Oulu, Waste minimizationnd resources use optimization course 4
Leanness means developing a value streamto eliminate all waste (Christopher & Towill2001)
focus on waste waste can be: overproduction waiting inventory or work in process processing waste
transportation motion making defective produts underutilizing people
WASTE = MUDA
Targets for prodcutionmanagement
OHJATTAVUUS ALHAISETKUSTANNUKSET
TUOTANNON TAVOITTEET
TOIMITUSKYKYLAATU
TYMATERIAALI POMA
KYTT-OMAISUUS
VAIHTO-OMAISUUS
OHJATTAVUUS
LPISYAIKA JOUSTAVUUS
KAPASITEETIN VARASTOIHIN JAKET:IINSITOUTUVANPOMANPIENENTMINEN
TOIMITUS-
KYKY
OHJATTAVUUS ALHAISETKUSTANNUKSET
TUOTANNON TAVOITTEET
TOIMITUSKYKYLAATU
TYMATERIAALI POMA
KYTT-OMAISUUS
VAIHTO-OMAISUUS
OHJATTAVUUS
LPISYAIKA JOUSTAVUUS
KAPASITEETIN VARASTOIHIN JAKET:IINSITOUTUVANPOMANPIENENTMINEN
TOIMITUS-
KYKY
OHJATTAVUUS ALHAISET
TUOTANNON TAVOITTEET
TOIMITUSKYKYLAATU
TYMATERIAALI POMA
KYTT-OMAISUUS
VAIHTO-OMAISUUS
OHJATTAVUUS
LPISYAIKA JOUSTAVUUS
KAPASITEETIN VARASTOIHIN JAKET:IINSITOUTUVANPOMANPIENENTMINEN
TOIMITUS-
KYKY
Controllability LowCosts
Targets for production
Ability to deliverQuality
WorkMaterials Capital
High productivity
Fixedassets
Floatingasets
Conrollability
Lead time Flexibility
High utilizationOf capasity
DeceasingTied in capitalIn inventories andWork In Progress
Ability to
deliver
-
8/14/2019 Harri Haapasalo Lean Production
5/21
arri Haapasalo: Lean production 5.4.2006
niversity of Oulu, Waste minimizationnd resources use optimization course 5
Inconsistency of purposes
for production managementAbility to deliver
Lead time
Minimize floating assetsInventories, WIP
Maximize utilizationrate of capasity
OPTIMUM
Changing Face ofManufacturing
AgileLeanJust-in-CaseOverallPosture
Materials
Finance
People
Philosophy
Strategic leadership;
Process-oriented
Teams;
Company-oriented
Individuals;
Self-oriented
Value ChainSupply ChainAdversarialsuppliers
Integrated perfncemanagement
Activity basedLabour allocation
Mass customisation;
Customer value
Just-in-Time;
Customer Service
Mass production;Product oriented
2000+1990s1980s
-
8/14/2019 Harri Haapasalo Lean Production
6/21
arri Haapasalo: Lean production 5.4.2006
niversity of Oulu, Waste minimizationnd resources use optimization course 6
Manufacturing Issues
Falling sales where to find new customers?
Input costs increasing, sales income falling
No time to introduce new methods
No money to develop new products / processes
How to increase output without increasing costs?
Too small to compete OR
Too big to react quickly to changing market
Increasing complexity of legislation and regulation
What can I / we / anybody do aboutit?
Company Actions: Howcan we Compete?
Competitive Strategies:
80s
Quality
Delivery
Price
Flexibility
Image
90sPorter
Focus
&
Differen-tiation
2000+Treacy &Wiersema
Value
Proposition
-
8/14/2019 Harri Haapasalo Lean Production
7/21
arri Haapasalo: Lean production 5.4.2006
niversity of Oulu, Waste minimizationnd resources use optimization course 7
Lean Thinking roots are in
Toyota Philosophy Doing it all for the Customer
Levelled production
Pull system
Continuous-flow production
Takt time
Multi-skilling
TQM
TPM
Poka Yoke
SPC
Standardised work
Kaizen
workcentre
workcentre
K K
store
replacement batches
kanbanswithdraw & process
Item Qnty Day 1 Day 2 Day 5
Runner 100 20 20 20Repeater 27 7 7Stranger 5 5
Load 132 27 27 25Capty 135 27 27 27
Uncompeti ti ve Competi ti ve
Competito
r
Continu
ousim
provem
entSelf
Presentchange
Competitiveness
Time
time
Upper action limit
Upper warning limit
average
action?
Lean Manufacturing
Builds on roots but with specific focuson: Lead time reduction
Regular production
New products
Flexibility improvement
Variability reduction
Cost reduction
-
8/14/2019 Harri Haapasalo Lean Production
8/21
arri Haapasalo: Lean production 5.4.2006
niversity of Oulu, Waste minimizationnd resources use optimization course 8
Customer focus Lean production aims to optimize performance of the
production system against a standard of perfection tomeet unique customer requirements (Howell 1999)
Going Lean
the value needs to be created in the eyes of thefinal customer,
focus on value is therefore translated across
functional and company boundaries, the lean message suggests that the focus on
attention should not be on the company orfunctional department but instead on the completevalue stream (Hines et al. 2000)
to reach this point every company involved insupply chain has to go lean,
this is very demanding part, which needscollaboration and time.
-
8/14/2019 Harri Haapasalo Lean Production
9/21
arri Haapasalo: Lean production 5.4.2006
niversity of Oulu, Waste minimizationnd resources use optimization course 9
How to go leanObjective MethodUnderstand customers and
what value they want
Setting the direction,targets and checking
results1
Define the internal valuestream
An internal framework fordelivering value2
Eliminate waste, make info& products flow, pulled by
customer needs
Appropriate method tomake necessary change3
Extend the definition ofvalue outside your
company
Externalise the value focusto the whole value stream
4
Continually aim forperfection
Strive for perfection in theproduct and in all
processes and systems5
Levels of Lean thinking(Simons & Zokaei 2005)
-
8/14/2019 Harri Haapasalo Lean Production
10/21
arri Haapasalo: Lean production 5.4.2006
niversity of Oulu, Waste minimizationnd resources use optimization course 10
Lean Toolbox derived from
Toyota Philosophy
Value stream mapping1. Define value precisely from the end customer perspective.- specific product needs- specific capabilities- specific price, delivery and quality expectations2. Identify the entire value stream for each product line and eliminate waste.- Product definition and development- Material transformation- Information management3. Make the value added activities flow.- Through radical shifts in process methodology and organizational structure- Improving processes from end-to-end by eliminating scrap, downtime and WIP- Moving towards continuous operations vs. batch processing4. Provide what the customer wants only when the customer wants it.- Let the end customer pull products from the manufacturing value stream- Minimize finished goods inventories and WIP5. Pursue perfection through continuous improvementWhen lean principles are applied throughout the value stream, odd things begin to
happen;- People recognize there is no end to reducing effort, time, space and mistakes,- Your products become more closely aligned with the customer needs.
-
8/14/2019 Harri Haapasalo Lean Production
11/21
arri Haapasalo: Lean production 5.4.2006
niversity of Oulu, Waste minimizationnd resources use optimization course 11
Example of process map Note value-add time -vs- lead time
Prosess map by Rummler andBrache
Customer
Sales
Prodcution
Puchasing
Generate
order
Check
order
Receive
order
Submit
order
Receive
order
Start manu-
facturing
Purchase
parts
Pack
product
Receive
parts
Forward
product
Receive
product
-
8/14/2019 Harri Haapasalo Lean Production
12/21
arri Haapasalo: Lean production 5.4.2006
niversity of Oulu, Waste minimizationnd resources use optimization course 12
5S - the foundation for a
disciplined approach to workplace
5S is derived from five Japanese words starting withletter Sthat describe principles of goodhousekeeping: 1. Sort 2. Set in Order 3. Shine 4. Standardize 5. Sustain
It cleans and organizes areas around machinery and
equipment. It creates a safer work environment, removes clutter,
creates a labelling system for ease of recognition,introduces audit procedures, and creates a moreinviting work place. (Piatkowski 2004)
TPM is a systematic methodologyto eliminate equipmentbreakdowns and quality defects
productive maintenance involving total employeeparticipation and it must be carried out on acompanywide basis
system of preventive maintenance plans andprocedures for the equipments life span TPM focuses its methodology on elimination of six
major obstacles to equipment effectiveness:1. Equipment failure2. Setup and adjustment3. Idling and minor stoppages4. Reduced speed5. Production of scrap and defects6. Reduced yield from start-up to stable production
-
8/14/2019 Harri Haapasalo Lean Production
13/21
arri Haapasalo: Lean production 5.4.2006
niversity of Oulu, Waste minimizationnd resources use optimization course 13
Key to Lean Manufacture is
measurement Need clear, objective focus on value
Example: OEE (Overall Equipment Effectiveness) A composite measure of the ability of a process to carry out
value adding activity
OEE = % availability x % output achieved x % perfect output
If change to a process increases OEE it is worthwhileActual Available Production Time
Theoretical time minus planned downtime and shutdowns
This is the realistic best available production time (100%)
Planned Downtime
PM, Shutdowns,
Holidays
Machine Running Time
Actual production hours minus downtimes
This is possible production if 100% performance
Unplanned Losses
Breakdowns, HR,
Set-up time
Availability
Net Operating Time
Machine speed against theoretical speed
This is the possible output if 100% quality
Speed losses
Idling, minor
stopages
performance
Performance
Useful Production Time
Material in minus product out
This is the real output
Quality Losses,
adjustments, Set-up
wasteQuality
OEE
OPTIMUM
Error Proofing
a systematic approach for anticipating anddetecting potential defects and preventingthem from reaching either internal or
external customer Error proofing is also mentioned in literature
with closely related terms such as, failsaving, poka yoke, zero defects and designfor manufacture and assembly.
Error Proofing seeks to proactiveidentification and prevention of errors at thesource.
-
8/14/2019 Harri Haapasalo Lean Production
14/21
arri Haapasalo: Lean production 5.4.2006
niversity of Oulu, Waste minimizationnd resources use optimization course 14
Setup Time Reduction Setup is a set of activities needed to prepare for the
next part to be produced Setup time is the total amount of elapsed time from
completion of the last good part from the previoussetup to the first good part from the new setup
There are two elements to setup time reduction: equipment modifications such as technical improvements, elimination of waste in setup methodology
Both activities will contribute significantly tominimize setup time
Continuous Flow
It studies production pace, manpower requirements,equipment utilization, and manufacturingmethodologies
is defined as movement of material from value-added process to value-added process withouttransport time or storage in buffers
all the knowledge of lean methodologies, tools, andprocess are put to an ultimate test of generatingcost reductions and improvements to quality,efficiency, and performance
-
8/14/2019 Harri Haapasalo Lean Production
15/21
arri Haapasalo: Lean production 5.4.2006
niversity of Oulu, Waste minimizationnd resources use optimization course 15
Pull System Pull system includes vital elements such as,
kanban to promote JIT and visual controlling For unique items consumed in production
lines, uniform containers (kanban) can beused to standardize lot sizes to signal theneed to replenish materials and simplifytransport between the vendor and customer
Materials can be pulled into production linesas needed to support the requiredproduction rate of finished goods
Standardized Work
Standardized work is the optimum combination ofoperators, machines and materials to ensure that atask is completed the same way every time with
minimum waste. This may sound a trivial but it isnt. Standardized work seeks to establish and clarify thebest method of production at the present time.
Standards must be specific and scientific meaningthat they are based on facts and analysis, not oncustom, guessing or memory
Standards must be adhered to; they are useless if no one follows them. for a standard to be standard, it will be consistently
followed and respected.
-
8/14/2019 Harri Haapasalo Lean Production
16/21
arri Haapasalo: Lean production 5.4.2006
niversity of Oulu, Waste minimizationnd resources use optimization course 16
Elements of the standard
operations (Monden 1983)
Agile a step on from lean?
Roots of agile in America defence industry developing the abilityto react and reorganise to successful equipment bids
Lean and agile have common components
quality, reliability, improvement, etc But lean is process focused, agile is boundary focused
Ability to thrive in constant, unpredictable change Key attributes of agile
Customer value focus (solutions not products) Flexibility to adapt to fundamental market changes
Not simply changes in product mix
Competing from multiple fronts, possibly virtually Organisational knowledge, including ability to adapt IT systems to
support new processes
Sometimes Agility has been defined as a sum of Lean andFlexibility
-
8/14/2019 Harri Haapasalo Lean Production
17/21
arri Haapasalo: Lean production 5.4.2006
niversity of Oulu, Waste minimizationnd resources use optimization course 17
Types of flexibility Planning flexibility the system's ability at the
planning stage to take up a structure suited to therelevant range of tasks.
Commissioning flexibility (teettminen) thesystem's ability to be adapted or set up for the giventasks, so that the system's capability can be verifiedand it remains constant.
Insensitivity (epherkkyys) the ability to function inspite of variations in the assembly.
Versatility (muunnettavuus) the ability to changeover directly to other foreseen tasks.
Adaptability (mukaantuvaisuus) the ability to bechanged over to unforeseen tasks.
Flexibility of re-use the ability to be rebuilt forother tasks.
Flexibility vs agility
agilityis an ability to quickly respond tochanges in an uncertain and changing
environment, or even cause changes thatare favourable to the organisation whereas flexibilityis taken to mean the
ability of companies to respond to a varietyof customer or other requirements whichexist within defined constraints
flexibility is an important aspect in agility agility is more external and flexibility is
internal
-
8/14/2019 Harri Haapasalo Lean Production
18/21
arri Haapasalo: Lean production 5.4.2006
niversity of Oulu, Waste minimizationnd resources use optimization course 18
Different views on lean -vs-
agileTraditionalTraditional LeanLean AgileAgile
The journey
LeanLean AgileAgile
Make to stockLow variety
Mass, repetitiveCost minimiser
Make/Engineer to order,High variety, Service culture
Product Innovator?Customer intimate?
A spectrum of companies
ComplementaryStock
(to decouple)
LeanLean AgileAgileMaterial
supplierscustomer
Make to forecast Make to order
Upstream variation Downstream variation
LEAN vs. AGILE(Christopher 2000)
-
8/14/2019 Harri Haapasalo Lean Production
19/21
arri Haapasalo: Lean production 5.4.2006
niversity of Oulu, Waste minimizationnd resources use optimization course 19
Establishing Foundations for
Lean, Agile
Need the classic pre-requisites for anyprogramme Strategy
Commitment
Objectives
Communication
Empowerment
Establish framework
Activity plan, cost, time and execution
Measurement and evaluation system
Culture
change
Use of
champion
Developing towards anagile supply chain
Goldmans (1995) distinctive forces that drive towards agility:1) market fragmentation,2) production to order in arbitrary lot sizes,
3) information capacity to treat masses of customers asindividuals,4) shrinking product lifetimes,5) convergence of physical products and services,6) global production networks,7) simultaneous inter-company co-operation and competition,8) distributed infrastructures for mass customization,9) corporate reorganization and10) pressure to internalize prevailing social values.
-
8/14/2019 Harri Haapasalo Lean Production
20/21
arri Haapasalo: Lean production 5.4.2006
niversity of Oulu, Waste minimizationnd resources use optimization course 20
speed, flexibilityand quality
Theoretical framework for the
agile supply chain
Agilesupplychain
Processintegration
Marketsensitive
responsiveand flexible
demand driven
VirtualICT utilization
Networkbased
modular design andmodular manufacturing
processes
Value net,
value-adding partnership (VAP)
a group of independent companies working close to each otherto manage the flow of products and services through the wholevalue chain
digitally linked network of customer-supplier relationships that
creates value to all of its counterparts, Customer aligned. Collaborative and systemic. Agile and scalable. Fast flow. Digital.
Value creation VA, NVA, NNVA
1. Non-value adding (NVA);(Type two MUDA)
2. Necessary but non-value adding (NNVA);
(Type one MUDA)3. Value-adding (VA)
-
8/14/2019 Harri Haapasalo Lean Production
21/21
arri Haapasalo: Lean production 5.4.2006
6 principles of ICT system in SCM
Information must be readily and consistently available to all thatneed it. Information availability can reduce operating and planninguncertainty.
Information must be accurate. Increased information accuracydecreases uncertainty and reduces inventory requirements.
Information must be timely. The delay between when an activityoccurs and when it is visible in the information system reducesplanning effectiveness and increases inventory.
Information should be appropriately formatted. The rightinformation must be in the right structure and sequence.
Information systems must be exception-based in order to highlightproblems and opportunities.
Information systems should be flexible to be able to meet both
system users and customers needs.
Bowersox & Closs (1995)
Useful literature
James Womack & Daniel Jones, 1996, LeanThinking: Banish Waste and Create Wealth inyour Corporation(Simon & Schuster)
John Bicheno, 2000, The Lean Toolbox, 2ndedn (Picsie Books)
Peter Hines & David Taylor, 2000, GoingLean: a guide to implementation(LeanEnterprise Research Centre, Cardiff BusinessSchool)
Imai, M. 1997. Gemba Kaizen: acommonsense, low-cost approach tomanagement New York, McGraw-Hill
top related