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    2013 Gemba Academy LLC. All rights reserved.

    Cellular ManufacturingLean Manufacturing Series

    Gemba Academy provides over 750 online Lean and SixSigma training videos to over 2,000 companies worldwide.

    For more information visit GembaAcademy.com

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    2 2013 Gemba Academy LLC. All rights reserved.

    Disclaimer and Approved Use

    Disclaimer! This presentation is intended for use in training individuals within an organization. The

    handouts, tools, and presentations may be customized for each application.

    ! THE FILES AND PRESENTATIONS ARE DISTRIBUTED ON AN "AS IS" BASIS WITHOUTWARRANTIES OF ANY KIND, EITHER EXPRESSED OR IMPLIED.

    Copyright

    !

    This presentation is copyrighted by Gemba Academy LLC.

    Approved Use

    ! The presentation may not be re-sold or re-distributed without express written permissionof Gemba Academy LLC.

    Current contact information can be found at: GembaAcademy.com

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    3 2013 Gemba Academy LLC. All rights reserved.

    Contents

    1. Introduction

    2. Background and History

    3. Components and Implementation

    4.

    Knowledge Check

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    4 2013 Gemba Academy LLC. All rights reserved.

    Introduction

    Cellular Manufacturing is a workplace design reflectingconcepts of lean manufacturing. Waste is reduced and

    resources are combined to provide maximum efficiency.

    Cellular manufacturing, sometimes called cellular or

    cell production, is the idea of manufacturing an entire

    product or small product line in the same work cell.Process and product changeovers are minimized and

    part operations are linked to help reduce waste and

    eliminate overproduction.

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    5 2013 Gemba Academy LLC. All rights reserved.

    Background and History

    At Toyota in the 1950s Taiichi Ohno and Shigeo Shingobegan to incorporate Ford production techniques into

    what would become the Toyota Production System

    Toyota soon discovered that factory workers had far

    more to contribute than just muscle power. This

    probably originated in the Quality Circle movement.

    This culminated in team development and cellular

    manufacturing.

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    6 2013 Gemba Academy LLC. All rights reserved.

    Components & Implementation

    Types of Factory Layouts

    Fundamentals of Cellular Layouts

    Advantages and Limitations

    Advanced Cellular Manufacturing

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    7 2013 Gemba Academy LLC. All rights reserved.

    Effective Facility Layout

    Minimize material handling costs

    Utilize space efficiently & effectively

    Utilize labor efficiently & effectively

    Eliminate bottlenecks Eliminate wasted or redundant movement

    Incorporate safety & security measures

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    8 2013 Gemba Academy LLC. All rights reserved.

    Basic Layouts

    There are three basic types of layouts:! Process

    ! Product

    ! Fixed-position

    Fixed-position! Flexible and Mixed-Model manufacturing systems

    ! Cellular

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    9 2013 Gemba Academy LLC. All rights reserved.

    Process Layout

    A layout that groups similar activities together indepartments of work centers according to process or

    functions that they perform.

    Advantages! Deep knowledge of the process

    ! Common tooling and fixtures

    ! Most Flexible -- can produce many different part types

    Disadvantages! Spaghetti flow -- everything gets all tangled up

    ! Lots of in-process materials

    ! Hard to control inter-department activities

    ! Can be difficult to automate

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    10 2013 Gemba Academy LLC. All rights reserved.

    Product Layout

    A facility layout that arranges activities in a lineaccording to the sequence of operations that need to

    be performed to assemble a product, while minimizing

    material handling costs.

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    11 2013 Gemba Academy LLC. All rights reserved.

    Product Layout

    Layout corresponds to the sequence of operations, smoothand logical flow lines result

    Work from one process is fed directly into the next, small in-

    process inventories result

    Total production time per unit is short

    Machines are located as to minimize distances betweenconsecutive operations, material handling is reduced

    Little skill is usually required by operators at the production

    line; hence, training is simple, short and inexpensive

    Simple production planning and control systems are possible

    Less space is occupied by work in transit and for temporary

    storage

    Lower variable cost per unit

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    12 2013 Gemba Academy LLC. All rights reserved.

    Product Layout

    Advantages! Stable rate of output.

    ! Work-in-process inventory is low.

    ! Total production time/unit is reduced.

    !

    Space is effectively utilized.

    ! Labor pool is large

    Disadvantages! If one machine fails the whole process stops.

    ! Changes in product design can render the layout obsolete.

    !

    Bottlenecks govern the speed.

    ! Large support staff required.

    ! High fixed costs.

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    13 2013 Gemba Academy LLC. All rights reserved.

    Fixed Position Layouts

    The product remains stationary for the entiremanufacturing cycle.

    Equipment, workers, materials, and other resources are

    brought to the production site.

    Advantages! Material movement is reduced

    ! Promotes job enlargement by allowing individuals or teams the

    perform whole job

    ! Continuity of operations and responsibility results from team

    !

    High flexibility; can accommodate changes in product design,

    product mix, and production volume

    ! Independent of production centers allows scheduling to achieve

    minimum total production time

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    14 2013 Gemba Academy LLC. All rights reserved.

    Fixed Position Layout

    Disadvantages! Increased movement of personnel and equipment

    ! Equipment duplication may occur

    ! Higher skill requirements for personnel

    !

    General supervision required

    ! Cumbersome and costly positioning of material and machinery

    ! Low equipment utilization

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    15 2013 Gemba Academy LLC. All rights reserved.

    Hybrid Layouts

    Flexible & Mixed-Model! High level of complexity

    ! Mathematically intensive

    Cellular

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    16 2013 Gemba Academy LLC. All rights reserved.

    Cellular Layouts

    The cellular approach is to organize the entiremanufacturing process for particular or similar products

    into one group of team members and machines known

    as a "Cell".

    These "cells" are arranged in a U-shaped layout to

    easily facilitate a variety of operations.

    Parts or assemblies move one at a time (or in small

    batch sizes).

    The parts are handed off from operation to operationwithout opportunity to build up between operations.

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    17 2013 Gemba Academy LLC. All rights reserved.

    Cellular Layouts

    Fast setup and quick changeovers are essential toCellular Manufacturing systems since production runs

    are shorter.

    Setup reduction principles are used to achieve one

    piece flow and mixed model synchronization.

    All cells concentrate on eliminating waste.

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    18 2013 Gemba Academy LLC. All rights reserved.

    Work Cells - Advantages

    Increased machine utilization

    Team attitude and job enlargement tend to occur

    Compromise between product layout and process

    layout, with associated advantages

    Supports the use of general purpose equipment

    Shorter travel distances and smoother flow lines thanfor process layout

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    19 2013 Gemba Academy LLC. All rights reserved.

    Work Cells - Advantages

    Reduced work-in-process inventory

    Less floor space required

    Reduced raw material and finished goods inventories

    required

    Reduced direct labor costs

    Heightened sense of employee participation

    Increased utilization of equipment machinery

    Reduced investment in machinery and equipment

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    20 2013 Gemba Academy LLC. All rights reserved.

    Work Cells - Limitations

    Higher skill levels required of employees than forproduct layout

    Compromise between product and process layout, with

    associated limitations

    Depends on balanced material flow through the cell;

    otherwise, buffers and work-in-process storage arerequired

    Lower machine utilization than for process layout

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    21 2013 Gemba Academy LLC. All rights reserved.

    Functional vs. Cellular Material Flow

    Many

    Element Functional Cellular

    Moves

    Travel Distance

    Routings

    Route Structure

    Few

    More Less

    Complex Simple

    Variable Fixed

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    22 2013 Gemba Academy LLC. All rights reserved.

    Functional vs. Cellular People

    Fragmented

    Element Functional Cellular

    Responsibility

    Problem Solving

    Quality

    Focused

    Difficult Team

    Erratic Consistent

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    23 2013 Gemba Academy LLC. All rights reserved.

    Functional vs. Cellular Inventory

    Large

    Element Functional Cellular

    Lot Sizes

    Queues

    Stocking Policy

    Scheduling

    Small

    More than 10 Less than 10

    Make to Stock Make to Order

    Complex Simple

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    24 2013 Gemba Academy LLC. All rights reserved.

    Functional vs. Cellular Customer Service

    Weeks

    Element Functional Cellular

    Response

    Delivery Speed

    DeliveryReliability

    Hours

    Weeks-Months Days

    Erratic Consistent

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    25 2013 Gemba Academy LLC. All rights reserved.

    Creating Cells

    First, define the cells by the following criteria:! Processes required

    ! Part numbers and attributes

    ! Market segments / customers

    !

    Degree of automation

    Good intuition

    Careful study

    Group Technology (GT)

    Production Flow Analysis (PFA)

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    26 2013 Gemba Academy LLC. All rights reserved.

    Creating Cells

    Selecting the Products

    Engineering the Process

    Designing the Infrastructure

    Layout the Workcell

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    27 2013 Gemba Academy LLC. All rights reserved.

    Creating Cells

    Team selection is crucial! Identify important skills needed such as teamwork and

    leadership skills

    ! Create a process map

    !

    Develop a checklist for selecting members

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    28 2013 Gemba Academy LLC. All rights reserved.

    Part Families

    Part families withsimilarity in

    manufacturing process

    Part families withsimilarity in shape

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    29 2013 Gemba Academy LLC. All rights reserved.

    Part Family Formation

    Various levels macro and micro

    Macro entire factories (focused factories) can

    specialize in a particular type of part

    Micro families can be based on similarities in part

    geometry (group shafts, flat parts, gears, etc),

    process requirements (castings, forgings, sheet metalparts, heat-treated parts, printed circuit boards)

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    30 2013 Gemba Academy LLC. All rights reserved.

    Finding Part Families

    Visual Inspection of physical parts or photographs toidentify similarities.

    Coding and Classification of parts by examining design

    and/or manufacturing attributes.!

    OPITZ System

    ! MICLASS System

    Here a code is assigned to specific features of the part.! Is the part cylindrical or prismatic?

    ! Does it have threads?

    !

    Does it have through slots?

    ! Does it require heat treatment?

    This requires a large initial time investment in codingand classifying all parts.

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    31 2013 Gemba Academy LLC. All rights reserved.

    Visual Inspection

    Easiest and least expensive method

    Classification takes place by looking at their

    photographs or physical parts

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    32 2013 Gemba Academy LLC. All rights reserved.

    Parts Classification And Coding

    Coding is done by a system called OPTIZ SYSTEM

    Digit sequence for the code is

    12345 6789 ABCD

    Form code SupplementaryCode

    SecondaryCode

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    33 2013 Gemba Academy LLC. All rights reserved.

    Production Flow Analysis

    PFA is a technique that uses Operation RoutingSummaries as input. It clusters the parts that require

    the same processes. These parts can then be

    assembled into a part family. The processes can be

    grouped into a cell to minimize material handlingrequirements.

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    34 2013 Gemba Academy LLC. All rights reserved.

    PFA - Organizational View

    1. Production Flow Analysis consists of 5 differentanalyses:

    2. Company Flow Analysis

    3. Factory Flow Analysis

    4.

    Group Analysis

    5. Tooling Analysis

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    35 2013 Gemba Academy LLC. All rights reserved.

    Company Flow Analysis

    A Planning technique used for the division of largecompanies into factory components. It aims to simplify

    the flow of materials between factories.

    Uses FROM-TO charts and frequency charts and a flow

    analysis

    Is not a decision making model, but presents data in away that decisions can be made based on a companys

    goal.

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    36 2013 Gemba Academy LLC. All rights reserved.

    Factory Flow Analysis

    An attempt is made at this stage to find major groupsof departments, and major families of components

    which can be completely processed in these

    departments

    The goal is to change factories from process

    organization to product organization and to minimizeinterdepartmental material flow

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    37 2013 Gemba Academy LLC. All rights reserved.

    Factory Flow Analysis - Methodology

    Study and map the existing flow system

    Identify the dominant material flows between shops (or

    buildings)

    Determine the Process Route Number (PRN) for each

    part

    Analyze the part by PRN.

    Combine closely associated processes at departments

    that complete most of the parts they make

    If parts are observed to backtrack then such flows areeliminated by minor redeployment of equipment

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    38 2013 Gemba Academy LLC. All rights reserved.

    Group Analysis

    The flows in each of the individual shops (identified byFFA) are analyzed.

    Operation sequences of the parts that are being

    produced in a particular shop are analyzed to identify

    manufacturing cells.

    Loads are calculated for each part family to obtain theequipment requirements for each cell

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    39 2013 Gemba Academy LLC. All rights reserved.

    Group Analysis

    Essentially, while forming and rearranging the PFAmatrix we were performing Group Analysis.

    Those same algorithms are also employed in PFA

    activities other than Group Analysis (namely CFA, FFA

    etc..)

    Choice of algorithm or technique that is best suited is,for the most part, a problem specific issue

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    40 2013 Gemba Academy LLC. All rights reserved.

    Line Analysis

    A linear or U-layout is designed for the machinesassigned to each cell.

    The routings for each part assigned to the cell and the

    frequency of use of each routing are used to develop a

    cell for:! Efficient transport

    ! Minimum material handling and travel by operators.

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    41 2013 Gemba Academy LLC. All rights reserved.

    Tooling Analysis

    A Tooling Analysis helps to schedule the cell byidentifying families of parts with similar operation

    sequences, tooling and setups.

    It seeks to sequence parts on each machine to

    sequence all the machines in the cell to reduce setuptimes and batch sizes.

    This increases available machine capacity on

    bottleneck work canters in the cell.

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    42 2013 Gemba Academy LLC. All rights reserved.

    PFA: Assumptions

    Each component is equally important in terms of cost

    Lot size & its associated cost are not directly related to

    grouping procedure

    Routing is assumed to be optimal

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    43 2013 Gemba Academy LLC. All rights reserved.

    PFA: Advantages

    Reduces flow distances

    Better suited to JIT and pull manufacturing as the

    overall flow is much straighter

    Simple and Easy to implement

    Experience: Lots of Research and Background and

    support software

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    44 2013 Gemba Academy LLC. All rights reserved.

    PFA: Weakness

    PFA is suitable mostly for small-sized applications, butit has difficulties coping with some large cell formation

    problems when the Machine-Part Matrix becomes more

    complex because of problem size

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    45 2013 Gemba Academy LLC. All rights reserved.

    Line Balancing

    Line balancing a important part in Cellular System

    Improper balance leads to several effects! Excess Inventory

    ! Idle Equipment

    !

    Idle People! Individual Frustration

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    46 2013 Gemba Academy LLC. All rights reserved.

    Empowered Employees in Cells

    Goals and tracking charts are maintained and posted.

    Problems are solved through daily cell meetings and

    problem solving teams.

    The inventory management system is a KANBAN instead

    of a work order/kit picking system.

    Cells are responsible for planning, scheduling andexpediting directly with vendors.

    They establish and maintain a KANBAN system with the

    vendors.

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    47 2013 Gemba Academy LLC. All rights reserved.

    Advanced Cellular Manufacturing

    The cell operates like an independent business withtotal responsibility for quality, manufacturing and

    delivery of the product to the customer.

    All cells have the resources within their organization to

    accomplish their mission.

    The requirements are known and goals are established

    Cell members are flexible and work in teams to

    accomplish their goals including continuous

    improvement.

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    2013 Gemba Academy LLC. All rights reserved.

    Knowledge Check

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    49 2013 Gemba Academy LLC. All rights reserved.

    What are some results of effective facilitylayout? (Mark all that apply)

    1. Minimize material handling costs

    2. Utilize space efficiently &

    effectively

    3. Utilize labor efficiently &

    effectively

    4. Eliminate bottlenecks

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    50 2013 Gemba Academy LLC. All rights reserved.

    What are the basic types of layouts? (Mark all thatapply)

    1. Process

    2. Product

    3.

    Fixed-position

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    51 2013 Gemba Academy LLC. All rights reserved.

    What are some of the disadvantages of processlayout? (Mark all that apply)

    1. Spaghetti flow -- everythinggets all tangled up

    2.

    Little in-process materials

    3. Hard to control inter-

    department activities

    4. Can be difficult to automate

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    52 2013 Gemba Academy LLC. All rights reserved.

    What are the advantages of product layout? (Markall that apply)

    1. Stable rate of output.

    2. Work-in-process inventory is

    low.

    3. Total production time/unit is

    increased.

    4. Space is effectively utilized.

    5. Labor pool is large.

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    53 2013 Gemba Academy LLC. All rights reserved.

    What are the disadvantages of fixed positionlayout? (Mark all that apply)

    1. Increased movement ofpersonnel and equipment

    2. Equipment duplication may

    occur

    3.

    Higher skill requirements forpersonnel

    4. Cumbersome and costly

    positioning of material and

    machinery

    5.

    Low equipment utilization

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    54 2013 Gemba Academy LLC. All rights reserved.

    What are the advantages of cellular layouts overproduct and process layouts? (Mark all that apply)

    1. Increased machineutilization

    2. Team attitude and job

    enlargement tend to

    occur3. Supports the use of

    general purpose

    equipment

    4. Shorter travel distances

    and smoother flow lines

    than for process layout

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    55 2013 Gemba Academy LLC. All rights reserved.

    What is the purpose of the Ushape of a cell?(Mark all that apply)

    1. Easily facilitate a varietyof operations.

    2. Parts or assemblies move

    one at a time (or in small

    batch sizes).3.

    The parts are handed offfrom operation to

    operation without

    opportunity to build up

    between operations.

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    56 2013 Gemba Academy LLC. All rights reserved.

    How can you determine which parts should be inwhich cell?

    o

    A) Company Flow Analysis

    o B) Factory Flow Analysis

    o C) Production Flow Analysis

    o D) Group Analysis

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    57 2013 Gemba Academy LLC. All rights reserved.

    How can you implement cellular manufacturing in yourcurrent organization?

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    58 2013 Gemba Academy LLC. All rights reserved.

    Congratulations!!!

    You have completed the course.

    Visit Superfactory (www.superfactory.com) for more

    information on manufacturing excellence.