lean for process manufacturing qad midwest user group meeting stephen dombroski – september 2011

Lean for Process Manufacturing

QAD Midwest User Group Meeting

Stephen Dombroski – September 2011

• Overview of Lean Principles

• Specific Features of the Process industries

• Identifying Wastes in Process Industries

• Applying Lean Tools in Process Manufacturing

• QAD Tools for Lean in Manufacturing

Agenda

Overview of Lean Principles

• Origin- Derived from the Toyota Production System (TPS)

focused on minimizing waste in the production process

• Fundamentals- Best Quality- Lowest Cost- Shortest Lead Time- Minimize Waste through the Production Process

• Traditionally Applied to Discrete Manufacturing


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Overview of Lean PrinciplesTPS House

• TPS House

• Two Essential “Pillars”- Just in Time- “Jikoda” – Quality

• House Center- Motivated People

• Foundation- Heijunka – Level Production- Standardized Work – Definition of Specific Tasks- Kaizen – Continuous Improvement- Stability – Stable Environment


• The Essence of Lean- Elimination of all Waste- Continuous Improvement- Produce when a customer wants it- Ensuring Quality

• Major Principles- Value- Value Stream- Flow- Pull- Perfection


• Lean Today- What is Lean Today?

• A Concept?• A Philosophy?• A Practice?• A Process?

• Answer: All of the Above- Many ideas and philosophies and how to get

there.


Process Industries – Specific Features

• Industries Categorized as Types- Discrete – Typically Assembly Manufacturing

• Finished product can be broken down to the original parts

- Automotive- Electronics- Tools

- Process – Flow Production, Reactive Production consisting of formulas and recipes• Once it is put together, you cannot take it apart

- Processed Foods- Beverages- Chemicals- Paper Products

Process Industries – What are They?

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Process Versus Discrete Manufacturing

Industry Discrete Manufacturing Process Manufacturing

Examples Automotive Chemicals

Electronics Paints

Power Tools Processed Foods

Industrial Equipment Beverages

Home Appliances Paper and Plastic

Process Flow Model Many Raw Materials Few Raw Materials

Part Variety Material Variety

Little Final Differentiation High Final Differentiation

Primary Focus Waste Cycle Time and Waste

Over Production Over Production

Defects Yield Losses

Lot Size of One Lot Sized Based On Equipment

Primary Economic Drivers Labor Productivity Asset Productivity

Inventory Reduction Inventory Reduction

Increased Throughput

Reduction in Yield Losses

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Process Versus Discrete Manufacturing

Industry Discrete Manufacturing Process Manufacturing

Primary Production Factor Labor Equipment

Setup, Changeover Processes Machine Setup Time to Clean Process Vessels

Tool Availability Time for Temperature Stabilization

Time for Pressures to Equilibrate

Tools Value Stream Mapping Supply Chain Mapping

Standard Work Value Stream Mapping

Poka-Yoke Poka-Yoke

SMED SMED

Cell Manufacturing Product Wheels

5S 5S

• Dynamics of Process Manufacturing- Volume and Variety- Capital (Equipment ) Versus Labor- Processes are Difficult to Stop and Start- Setups and Changeovers are Complex - Inventory Focus – Finished Product versus WIP- Inventory Accessibility (Hidden WIP)- Material Flow Patterns Production Process

• Flow patterns are reversed between process and discrete

Process Industries – Key Characteristics

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Simple Process Industry Diagram

Finished Products

Packaging

Processing 2

Processing 1

Raw Materials

• Typically Fewer Raw Materials

• Dependent on Raw Natural Resources

• Equipment Typically Much Larger

• Equipment a Higher Impact on the Process

• High Degree of Product Differentiation

• Process Step based not Work Center based

Summary – Key Characteristics of Process Industries

Identifying Wastes in Process Industries

• Waste is the Major Principle of Lean and TPS- Identifying and eliminating waste is the

key to raising productivity.• Waste with Relationship to Costs

- Equating Waste with Customer Value

- Categorizing Waste• People• Material• Time

Identifying Wastes in Manufacturing

• Categories of Waste- Waste of Overproduction- Transportation Waste- Waste of Time (Waiting Periods)- Processing Waste- Waste of Inventory- Waste of Movement- Wasted of Defective Material, Yield Loss

Identifying Wastes in Manufacturing

• Overproduction - Making more product than demand requires- Batch Size or Campaign Size Practices- Process Variations

• Transportation - All movement of materials within the manufacturing operation- Disconnected Material Flow- Specialty Storage Areas- Facility Design

Categories of Waste

• Time (Waiting Periods) – Time waiting for material to arrive- Material Delivery- Curing/Hold Time- Inspection Time- Start Up Time

Categories of Waste

• Processing – Wastes in the Process- Processing necessary to identify potential issues - Inspection- Testing- Laboratory Operations- Rework Operations

• Inventory – Technically all in-process inventory is waste- Minimize excess amounts- Synchronizing production steps- Rate Synchronizations- Bottleneck Issues- Leftover Material – Heels- Campaign Sizes

Categories of Waste

• Movement – People Movement, moving from station to station- Time to move through the facility- Operators moving from step to step

• Defect Material, Yield Loss – Out of spec materials to process or customer standards- Wrong Thickness- Incorrect Potencies- Fat Content- Quality Defects

Categories of Waste

• Major Lean Principle is Waste- Identifying and Eliminating Waste Key to Successful

Lean Practices- Wastes can be detected in both discrete and process

environments

• Wastes Can be Segmented into Categories

• Waste is anything that can be measured by value

• Value is also Categorized- Value to the Business- Value to the Customer

Summary - Identifying Wastes in Process Manufacturing

Applying the Lean Tools in Process Manufacturing

• There are a Variety of Tools or Practices to enable the Lean Concept

• Traditionally, Lean focused on Discrete Production

• Most of the Traditional Lean Tools can be Applied to Process Manufacturing

Lean is a Concept, Practice and Philosophy

• The Traditional Lean Tools are:- Mapping of your processes- Time Management- Continuous Improvement- Organization- Quality- Minimizing Errors- Problem Solving

Lean Tools for Process

• Value Stream Mapping – Visual Diagram- Process Steps- Flow of Materials, Activities and Time for Each Step


• Takt Time- Time Mapping- Time interval in which each process step must be

completed to meet customer demand- Processing Time- Hold/Quality Time

• Kaizen- Japanese term for continuous improvement- Process of constantly looking for improvements in

processes- Kaizen is a philosophy


• 5S – Five Step Process for organizing all areas of the workplace


• Jidoka- One of the two Pillars- Philosophy of Quality- If a Quality Issue is detected, activities stop until it is

resolved


• SMED – Single Minute Exchange of Dies- Philosophy of analyzing all steps to a changeover,

setups- Minimize Time and Material Waste- Decreasing changeover time

• Poka-Yoke- Techniques for minimizing mistakes- Prevention of defective products, bad yields- Prevent equipment from being setup incorrectly- Sensors- Color Coding


• Five Whys – Always ask Why?- Philosophy of asking questions to solving a problem- Continue to ask questions - How did a problem occur?- Questions about the solutions so it is a sound solution

• Standard Work- Specific tasks to be performed in each production step- Operational sequence- Timing- Referred to as “SOP”s, Standard Operating Procedures


• TPM – Total Productive Maintenance- Practices of improving how is equipment is operated and

maintained


• Cellular Manufacturing- Dividing the process into families that require similar steps- Improves Quality- Reduces Changeovers- Reduces Variability- Improves Throughput

• Heijunka- Production Leveling or Production Smoothing- Load Leveling- Product Wheel

• Kanban- Process for visually signaling what is needed- What needs to be produced to replace what the customer has

purchased


• Just-In-Time- One of the two Pillars- Make What is Needed- Make it When it is Needed- Make the Exact Quantity Needed


• Lean Tools focus on:- Minimizing Waste- Minimizing Mistakes- Maximizing Utilization- Cost Effectiveness- Better Service to the Customer- Empowering Team Members

• These can be applied to any type of operation

• In Essence: Common Sense Business Practices

Summary - Lean Tools for Process Manufacturing

QAD Lean Manufacturing

• Supports Kanban and flow scheduling

• Enables tight inventory management

• Provides complete functionality to establish and execute Kanban processes

• Integrated visualization tool

• Most evolved suite of tools

• Uses the Power of QAD .NET

QAD Lean Manufacturing

• Buffer/Supermarket Data Identifies Details of Buffer Stock Calculations

Kanban Master Maintenance

Kanban Process Workbench

Push Pull

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In many cases, organizations have not integrated Plant Operations into production business processes

Plant Operations Challenges

Manufacturing Process

Shipping & Receiving

Engineering Services

Direct Materials

ProductionOperators

Quality Assurance

Sales & Order Entry

Production Planning & Scheduling

Plant Operations

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Align plant Operation with production’s goals and objectives

The Goal

Manufacturing Process

Shipping & Receiving

Engineering Services

Direct Materials

ProductionOperators

Quality Assurance

Sales & Order Entry

Production Planning & Scheduling

Plant Operations

• Increases on-time delivery performance and responsiveness to customer needs

• Improves customer satisfaction by allowing for better fulfillment strategies

• Build to actual demand rather than making stock

• Reduces working capital by reductions in inventory

Values of QAD Lean Manufacturing

Conclusion

Midwest User Group Meeting

• Lean Principles- JIT- Quality

• Process Industries Differentiators- Capital vs. Labor

• Wastes in Process Industries- Eliminating anything that decreases value

• Lean Tools for Process- Improve Quality- Adding Value

• QAD Lean Manufacturing- Build to actual demand- Inventory Management

• Lean is a Practice

Summary - Lean for Process Manufacturing

Questions

lean for process manufacturing qad midwest user group meeting stephen dombroski – september 2011

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