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Copyright 2011 Beta Management Systems - All Rights Reserved Slide 2 The Need for Continual Improvement The need to reduce costs Slide 3 CONTINUAL IMPROVEMENT THE CUSTOMER WANTS : ONLY what is needed AS much as is needed WHEN it is needed ANYTHING MORE IS WASTE Slide 4 What we need to do: 100% right first time The right cost that affords the company a reasonable profit 100% on time Slide 5 What is lean ManufacturingWhat is lean Manufacturing AIM Lean production is aimed at the elimination of waste in every area of production including workshop management GOAL To incorporate less human effort, less inventory & less space To become highly responsive to customer demand while producing top quality products in the most efficient and economical manner possible. Slide 6 Lean Manufacturing ObjectivesLean Manufacturing Objectives Aim : Lower the cost of production by streamlining the process Reduce time spent on NON VALUE ADDING activities Focus on VALUE ADDING activities Eliminate all forms of waste from the process Understand and move towards the concept of ZERO Zero defects Zero inventory Zero delay Zero downtime Slide 7 Lean Manufacturing ObjectivesLean Manufacturing Objectives GOAL To become highly responsive to customer demand while producing top quality products in the most efficient and economical manner possible. Slide 8 All other meaningless, non essential activities (Eliminate) Any process that changes the nature, shape or characteristics of the product, in line with customer requirements. (Maximise) Any work carried out which is necessary under current conditions but does not increase product value. (Minimise) NON VALUE ADDED: VALUE ADDED: WASTE: Slide 9 Q C DQ C D The 3 criteria for assessing the production performance of a company: Quality Cost Delivery Slide 10 The 7 measures of Quality, Cost and Delivery are: Q C D 1. Not Right First Time 2. Delivery Schedule Achievement 3. People Productivity 4. Stock Turns 5. Overall Equipment Effectiveness 6. Value Added per Person 7. Floor Space Utilisation Primary impact Secondary impact Slide 11 Challenge all fixed ideas Do it now! No excuses Get to the root cause by repeatedly asking why? (5 Whys) Improvement is infinite Better is not good enough (Continual Improvement) Process Improvement SpiritProcess Improvement Spirit Slide 12 5S Made Easy:5S Made Easy: The first building block of continual improvement Seiri = Sort Seiton = Set in Order Seiso = Shine Seketsu = Standardise Shitsuke = Sustain Slide 13 The first building block of continual improvement Continuous Improvement Improvement Activity Standard Ops. Visual Management 7 Wastes 5S Slide 14 Sort Only have in the area that which is required Set in Order A place for everything & everything in its place Shine Determine the current condition of a machine or area and maintain it in good clean working order Standardise Ensure the current standard is maintained & improved Sustain Every employee understands the benefits & contributes to the improvement and endeavours to continually do so Slide 15 5S The Aim5S The Aim To promote a safe working environment To improve the organisation & standards of the workplace Create the best environment in which to produce a product Leads to a more efficient operation of the workshop or office Sustainable Continual ImprovementSustainable Continual Improvement Slide 16 5S - Sort5S - Sort Slide 17 Set in OrderSet in Order A place for everything & everything in its place. Workplace Organisation; 5SWorkplace Organisation; 5S Aim: To Create the best environment in which to produce a product. Slide 18 5S - Shine (Clean & Check) Aim: To determine the current condition of a machine or area and maintain it in good working order How: Manually clean from top down, identify/tag concerns Safety Critical items Quality Critical items Broken items etc. Equipment: Rags, Brushes, Brooms, Buff tags, Degreaser, Gloves, Safety Glasses, Photographs Slide 19 Aim:Ensure that the current standard is maintained and improved How:Make it easy to maintain Daily checklist and visual standards Establish clear responsibilities Audits Introduce to other operators/shifts Equipment: Photographs Checklist Slide 20 5S - Sustain Every employee follows the rules and understands the benefits and contributes to the improvement. Slide 21 Line Before 5S Slide 22 Line After 5S Line After 5S Slide 23 Visual ManagementVisual Management Slide 24 Continual ImprovementContinual Improvement The 7 WastesThe 7 Wastes Slide 25 The 7 Wastes The second building block of continual improvement Visual management Continual Improvement Improvement Activity Standard Ops. 7 Wastes 5S Slide 26 7W 7 Types of Waste7W 7 Types of Waste Overproduction Producing more than the customer demands Inventory Stocks of raw material, work in progress and finished goods Transportation Unnecessary moving or handling of parts Process Excessive movement in process cycle Idle Time Operator inactivity during cycle Operator Motion Any unnecessary or walking, bending, turning and reaching Bad Quality Producing scrap parts & Reworking of parts Slide 27 7W The Elimination of Waste7W The Elimination of Waste How: Identify bottlenecks and remove them Reduce set-up times (SMED) Reduce downtime (TPM) Reduce rework Reduce dead time Produce and purchase only what is needed (JIT) Identify, Categorise and Eliminate all waste and reduce costs Slide 28 7W - Overproduction7W - Overproduction What? Producing more than the customer demands Examples: Manufacturing ahead of customers schedule Over running an unstable process Why? Hides manufacturing problems Creates inventory resulting in ALL other wastes Consumes resources ahead of schedule Slide 29 7W - Inventory (Stocks of raw material, work in progress and finished goods) Before After Slide 30 7W - Transportation7W - Transportation What? Unnecessary moving or handling of parts Handling equipment moving with no parts Raw material batch sizes not matching production batch size Why? Transportation does not add value Slide 31 Previously 8 Journeys reduced to 2 Journeys 7W - Transportation7W - Transportation (Unnecessary moving or handling of parts) Paint Shop can now spray everything on the trailers. Slide 32 7W - Process7W - Process What? Excessive set-up or downtime (SMED) Inappropriate processes Excessive movement in process cycle Why? Because it does not add value Slide 33 7W Idle Time What? Operator inactivity during cycle Machine inactivity during cycle Why? When an operator or machine is idle, no value is being added to the product Slide 34 7W Operator Motion7W Operator Motion What? Any unnecessary or walking, bending, turning and reaching Why? These activities do not add value to the product Slide 35 7W Operator Motion7W Operator Motion (Any unnecessary or walking, bending, turning and reaching) OLD WAYNEW WAY Slide 36 7W Bad Quality7W Bad Quality What? Producing scrap parts Reworking of parts Why? It interrupts scheduled production It consumes resources Extra overtime to replace bad quality production Slide 37 If you would like to know more about Lean Production systems please contact us for a no obligation discussion If you would like to know more about Lean Production systems please contact us for a no obligation discussion Beta Management SystemsBeta Management Systems Copyright 2011 Beta Management Systems - All Rights ReservedCopyright 2011 Beta Management Systems - All Rights Reserved