lean manufacturing event - airedale partnership - the vision for

LEAN MANUFACTURING EVENT

28 February 2005Ramada Bankfield Hotel, Bingley

Welcome & introductions

Robert BroughBrokerage &Network

CoordinatorMick Milner

Airedale & Bradford Manufacturing Alliance

LEAN MANUFACTURINGfor SMEs

David LittleSME Support Network

School of Computing & Engineering

Supporting best practice manufacturing in local industry

LEAN MANUFACTURING

• What is it?

• Why do it?

• Key Principles of Lean

• How to start?

What is Lean Manufacturing?

• A manufacturing philosophy?

• An extension of Just-In-Time manufacture?

• A practical approach to improving manufacturing performance across the whole supply chain?


It is all of those things

Lean manufacturing is a set of operating principleswhich a manufacturing company may apply to optimise its provision of value to customers

This involves the elimination of waste and the improvement of material flow


Lean is simply a thought process, not a tool, used to look at your business whether it is manufacturing, service or any other activity where you have a supplier and a customer.

The key thought processes within Lean are identifying 'waste' from the customer perspective and then determining how to eliminate it.

Waste is defined as any activities that a customer would not want to pay for and that add no value to the product or service from the customer's perspective.

Adapted from: Lean Advisors inc


In fact implementing lean is 80% about people and only 20% about technical issues.

Having said that, there are many useful lean tools and techniques to help us achieve lean


Lean manufacturing aims to establish a more predictable manufacturing system.

Then things happen as planned. Deliveries are

on time, product is produced to specification,

machines run as expected and, above all :

CUSTOMERS GET EXACTLY WHAT THEY WANT!

Why Lean ?

… there is nothing more wasteful than producing something you do not need immediately and then storing it in a warehouse. Both people and machines are wasted and the warehouse puts your money to sleep.

Taichi Ohno

Why do it?

Waiting or in a queue Handling Run

70 90 100

Throughput Efficiency in batch manufacture:

For Batch of 20

Value added to specific material ~ 2.5% of time

This means that up to 97.5% of throughput time is wasted!!!

Why do it?• Inventory down by 90%

• Lead-time down by 90%

• Set-up times down by 75%

• Space requirements down by 50%

• Quality up by 95%

Case Study from Black & Decker

Why do it?

Above all, a lean factory employs well

motivated trained and empowered staff to

effectively add value for its customers.

And remember – value is what the customer

is prepared to pay for !

£

The Key Principles of Lean Manufacture:

Five key principles underpin the lean Philosophy:

• Elimination of waste in all activities

• Creating a smooth flow of material to the customer

• Dealing with the root cause of problems

• Synchronisation of demand and supply

• Development of people

Principle 1 - The Elimination of WASTE

Reduction of manufacturing cost by the elimination of waste in all its forms

Taiichi Ohno of Toyotaidentified 7 main sources of Muda or Waste.

Waste is anything otherthan the minimum amountof time, plant, materials, space and energy which is absolutely essential to add value and to deliver what the customer wants.

Principle 1 - The Elimination of WASTETraditional accounting aims Lean Manufacturing aims to

to reduce costs by: to reduce costs by:

- Reducing direct labour and - Increasing the added value

material costs element in design & production

- Running machines longer - Reducing or eliminating

& faster non value-adding activity

- Considering inventory as - Considering inventory as a

an asset liability

Principle 2 - Create Smooth Material Flows

Get it inKeep it moving

Get it out

Principle 2 - Create Smooth Material Flows

• Deliver to the point of use• Assured suppliers eliminate inspection

(they do it for you )• Avoid queues• Keep handling simple (Toyota manhandle)

Intermittent flow in a BATCH environmentindicates need for BPI

Material Wait Move Queue Setup RUN Wait MoveIssue to Op 1 to Op 2

Adding Value

In batch manufacture, by far the largest element is queue time

Principle 3 - Deal with the Root Cause of any Problem

Eliminate problems at source:

• All problems have symptoms and root causes

• Stop treating symptoms. Tackle the root causes

• Change how your firm tackles problems from

fire fighting to root cause analysis

Problems are not just management’s responsibility

Principle 3 - Deal with the Root Cause of any Problem

Common approaches to Root Cause Analysis:

• The 5 Whys

• Ishikawa (fish-bone) diagrams

• Correlation charts

Stop the process until solved- Remember, problems are not just management’s responsibility

Temperature

Positive correlation

More defects with increased temperature.

No. of Defects

Principle 4 - Synchronisation of Supply

and Demand• Set level production rates and maintain these

• Plan rate changes well in advance

• Maintain fewer reliable suppliers

• Include suppliers in information loop

Principle 5 - Development of PeopleThis principle underpins all Lean Manufacture:

• Empowerment

• Security of employment

• Suggestion schemes

• Mutual trust

• Supportive automation

• Consultation and concensus

Do not expect a first class contribution if you treat staff as second class citizens

Elimination of waste is a Continuous Improvement process as shown by the ‘river of inventory’ concept below:

So much for the theory – What should I do?

There are several ways to implement Lean Manufacturing. Ones we use are:

• The visual factory

• Business Process improvement

Usually in that order

Workplace OrganisationA building needs a firm foundation. So does a manufacturing company. In Lean Manufacturing, that foundation is the factory and office environment itself. There are seven key building blocks to workplace organisation and these must all be taken into account

The Visual Factory

Seven key elements to visual control:

1. Visual HousekeepingMake housekeeping visual. • Colour coding and coloured tags make it clear if items

of inventory or equipment are in the wrong place. (If they are in the wrong place - move them!!!)

• Use shadow boards

The Visual Factory

The Visual FactorySeven key elements to visual control:

2. Visual TerritoryDefine each production area or cell visually. For example:

• Lines on the floor for gangways• Clearly displayed signs• Designated locations for any necessary workpieces or .

. Tools• Designated team areas

3. Visual Quality

Use visual quality indicators at each work centre to display thelevel of process control and product quality. For example:

• Statistical Process Control Charts - SPC.• Run Charts• Scatter Diagrams

The Visual Factory


No. of Defects

Temperature


4. Visual Production Control

Control production and the movement of inventory visually. For example:

• Visual production boards and wall plans• Kanbans• Visual Targets and and achievement for output

The Visual Factory

Target: 200 Actual: 178

The Visual Factory


5. Visual DocumentationDisplay procedures and instructions visually at each work centre. For example:

• Standard operating procedures• Assembly drawings • Checklists

.

The Visual Factory


6. Visual SafetyDisplay warnings of workplace danger prominently. Use colour coding to identify the right equipment for each job.

7. Visual ImprovementUse storyboards to show improvement activities to include:

• The problem.

• The improvement target.

• The collected data.

• The action planned.

• The action taken.

• The achievement to date.

By implementing these seven visual control devices, we can see

whether things are under control. Early identification of small

problems often prevents big problems.

The Visual FactorySeven key elements to visual control:

The Visual Factory

But where should we start????????

The Visual Factory

A team-based 5s project is a suitablestarting point

Workplace Organisation : 5 S or 5 C

The 5 S's are a simple, logical set of steps to help improve the workplace organisation and the keep it up to scratch.

The 5 S’s are sometimes referred to as the 5 C's.

5 S 5 C

Sort • Separate necessary items from unnecessary ones Clear Out

Straighten • A place for everything • Everything in its place. Configure

Shine • Critical examination to

ensure good working order

Clean and Check

Standardise • Simplify • Make abnormalities

obvious Conform

Sustain

• Everyone knows the standard

• Everyone follows the rules

Custom and Practice

5 S : Step 1 : SORT

Purpose: To ensure that un-needed items and clutter removed from the workplace. Sort or clean-out the workplace and eliminate the clutter by removing everything from the workplace that is: • Not required. • Or only used infrequently.

This includes: • Inventory - Materials, parts and subassemblies. • Tools. • Fixtures. • Machines. • Storage equipment - Bins, containers and stillages• Moving equipment - Trolleys and forklifts. • Paperwork - Documentation and drawings.

The work area should contain: • Only what is needed to do the job • And nothing more

Techniques and Tips

...Do ......Do NOT • Put red tags on

items you are unsure about.

• After a specified time, if the item isn't needed - get rid of it.

• Don't keep anything that is broken. Fix it or throw it away.

• Don't keep anything that is obsolete.

• Don't store anything on the shop floor.

• Move items that are only used infrequently to a designated place.

RED TAGS

A ‘Red Tag Attack’ is a good way to implement SORT:

Get a set of red tags, choose an area of the factory and put a red tag on anything not required in the next week.

Item………...…………. Date………..Description……………………Quantity……………. Value £….Reason for Removal Action- Obsolete - Disposal- Defective - Locate & remote store- Not needed soon - Locate & local store- Use unknown

5 S : Step 2 : STRAIGHTEN

Purpose: To ensure that what remains is organised in the most effective way. After everything that is not necessary is gone - reorganise what's left. Reorganisation and orderliness pay off because: • The workplace is tidy. • A tidy workplace supports effective operations. • Because operators don't waste time searching for

materials, tools or paperwork. Every essential item should be: • Classified. • Labelled. • Clearly visible. • Close at hand.

Techniques and Tips

The company may have to invest in infrastructure. But many techniques are inexpensive - just common sense at work.

....Do ......Do NOT • Store frequently used items

close by. • Store tools on

shadowboards. • Store heavy items low and

light items high. • Use wheeled carts. • Colour code pipes,

connections, etc. • Have specific locations for

specific items. • Use painted squares on floor

to locate items.

• Don't move material,

parts or tools to the work centre unless they are about to be used

5 S : Step 3 : SHINE

Purpose: To bring the work area back to its original condition. After the workshop is reorganised, clean and paint and refurbish to the appropriate standard of appearance. • Paint the walls • Paint the floors • Paint machines and equipment

Techniques and Tips

• Clean inside and out • Remove all stains - on

floor .or machine. • Improve lighting. • Perform routine

maintenance checks: check oil daily... replace filters etc.

• Use aircraft style checks: Check items at start of shift

• Don't forget unseen areas. • Don't rely on someone

else: Routine cleanliness is everyone's responsibility.

DO DO NOT

5 S : Step 4 : STANDARDISEPurpose: To develop procedures and operating practices (example – archiving) which make sure the improvements are maintained. After the workplace is reorganised and clean - make the new, refurbished workplace the standard.

Ask these questions:• Who decides the standard?• Who decides the routine cleaning, inspection and • maintenance activities that will support the standard?

Techniques and Tips

......Do ......Do NOT • Make standards visible. • Post standards at work

centres. • Use cleaning and

inspection checklists: What job? What standard? Who does it?

• Use pictures as well as words.

• Use colour codes to match procedures to products.

• Don't rely on verbal communications: Diagrams or written standards are better.

• Don't forget the abnormal situation: Standards should say what to do when things go wrong as well as right.

5 S : Step 5 : SUSTAINPurpose: To develop procedures and operating practices which make sure the improvements are maintained. After the workplace is reorganised and clean and the standard is set so maintain thisthrough self-discipline.Ask these questions:• Is the standard still valid?• How often should the standard be reviewed?To maintain the new standard, the company should: • Introduce an auditing procedure. • Monitor - measure & record performance against the new standard• Take corrective action when performance falls below standard.

Techniques and Tips

....Do ......Do NOT • Measure housekeeping

performance against the new standard.

• Use other key indicators: Quality and productivity.

• Use work area performance boards to make the new standard and performance visible to everyone.

• Forget - The new standard will not last forever. It can be - and should be - improved.

• 5S is a process of continuous improvement.

The Visual Factory

Health and Safety

By conforming to health and safety legislation, a company demonstrates its commitment to providing a safe working environment for its people.

The use of the 5s approach creates a more pleasant, productive and safer working environment.

Setting up a 5s project

Key Actions:

• Pick a logical area• Select a team• Have a brain-storm session• Develop a Milestone Plan• Do it!!!


Remember:

• It is YOUR project• Done your way• To your plan• So lets hit the TARGET!


And here is one we did earlier!

Case Study

Precision engineers, established 15 years, employing 14, based in Huddersfield

Sub-contractors to aerospace, electronics and general engineering

MD approached us because of bottlenecks, lack of flexibility and poor communications in the workforce and wondered if lean would help

Thomas Brown Engineering

Typical 5S project -

Before


Typical MAS intervention project - 5S.

Before

Our Approach…• Avoid complex language – Keep it Simple• Take photographs, before and after• Sell the benefits people understand – more

space, better organisation, cleaner etc• Establish and stick to the timescale• Stress “What’s In It for Me”

The Method…

• A soft diagnostic• Suggest and agree areas for work• Teams of 5-8• Set of Rules• Homework for each member• Use a Facilitator


After


Typical MAS intervention project - 5S.

After


• 10% increase in productivity• 20% of space released• Improved shop floor operations• Better team-working• Increased motivation of staff• Safer and more pleasant working

environment

Set Up Reduction Project

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Thank you for listening

Any Questions?

Supporting best practice manufacturing in local industry

Lean Manufacturing Event

LUNCH AND NETWORKING

and close

lean manufacturing event - airedale partnership - the vision for

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