lean manufacturing pp presentation

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Next Generation Next Generation

Lean ManufacturingLean Manufacturing

Carlo Carlo ScodanibbioScodanibbio presents:presents:

”” if it doesn't add value, if it doesn't add value,

it is wasteit is waste””

a training event organised by:a training event organised by:

….the world has changed….

Key-Words: lean, manufacturing, power, point, presentation, value, waste, client, service, industry, perform, performance, world, class,

operations, adding, management, productive, process, takt, time, pitch, buffer, safety, inventory, finished, goods, supermarket, wip, work, in

progress, continuous, flow, processing, batch, push, pull, otdr, on-time, delivery, rate, kanban, production, levelling, stock, unbalance, bottleneck,

pipeline, 5S, lot, conveyor, one-piece, one, piece, cell, u-cell, line, sequence, equipment, cycle, vertical, layout, total, quality, poka-yoke, defects,

zero, inspection, testing, discipline, mistake-proofing, creativity, set-up, machine, inlet, outlet, people, method, tpm, maintenance, 6, big, losses,

autonomous, quick, change, over, change-over, internal, external, stream, mapping, materials, information, current, future, state, map, arrow,

diagram, group, technology, razing, kaizen, improvement, hr, human, resources, strategy, strategies, tei, employee, involvement, responsibilities,

course, carlo, scodanibbio

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COMPLEXITYCOMPLEXITY

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clients are monstersclients are monsters……..

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manufacturingmanufacturingyesterdayyesterday today/tomorrowtoday/tomorrow

Approach:Approach:

Make good products Make good products

cheaply and quicklycheaply and quickly

The present market cake is not

growing much larger, but varietyvariety is,

due to diversity of customers’ needs.

Besides, customers request and

expect shorter delivery schedulesshorter delivery schedules,

higher qualityhigher quality, and high reliabilityhigh reliability.

This dictates a “higher varietyhigher variety--small small

lotslots” style of production, featuring

high quality, speedy delivery and

assured safety/reliability.

PQCDS approachPQCDS approach(diversified PRODUCTS, of high (diversified PRODUCTS, of high

QUALITY, at low COST, with QUALITY, at low COST, with

speedy DELIVERY and assured speedy DELIVERY and assured

SAFETY/RELIABILITY)SAFETY/RELIABILITY)

QCD approachQCD approach(Quality (Quality -- Cost Cost -- Delivery)Delivery)

SellerSeller’’s Markets Market BuyerBuyer’’s Markets Market

Costs associated Costs associated

with with WasteWaste could could

be built into be built into

ProductProduct’’s prices price

Clients are no Clients are no

longer prepared to longer prepared to

subsidise subsidise

manufacturersmanufacturers’’

costs associated costs associated

with with WasteWaste


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Factory Management Factory Management

determines Production determines Production

CapacityCapacity

Costs + Profit = Selling PriceCosts + Profit = Selling Price

(Product(Product--Out approach)Out approach)

Customers determine Customers determine

Production Capacity Production Capacity

Selling Price Selling Price -- Profit = CostsProfit = Costs

(Market(Market--In approach)In approach)

(Estimate(Estimate--based Levelling)based Levelling) (Reality(Reality--based Levelling)based Levelling)


Profit is something that Profit is something that

comes naturally out of comes naturally out of

the manufacturing and the manufacturing and

marketing processmarketing process

Profit is something Profit is something

that must be created that must be created

and earned through and earned through

hard workhard work

Manufacturing Cycle Manufacturing Cycle

TimeTime

>> Selling Cycle Time>> Selling Cycle Time

Manufacturing Cycle Manufacturing Cycle

Time Time

--> = Selling Cycle Time> = Selling Cycle Time


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ManufacturingManufacturing

is the businessis the business

of makingof making

productsproducts

ManufacturingManufacturing

is a is a

SERVICESERVICE

INDUSTRYINDUSTRY


why enterprises donwhy enterprises don’’t t ““performperform””......…….the root causes of poor performance date .the root causes of poor performance date

back to over 2 centuries agoback to over 2 centuries ago……....

…….we have gone into the .we have gone into the

21st century, with 21st century, with

enterprises designed in the enterprises designed in the

18th and 19th centuries to 18th and 19th centuries to

perform well in the 20thperform well in the 20th……....

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VAMVAM

VALUE ADDING VALUE ADDING

MANAGEMENTMANAGEMENT

the VAM approach to the productive processthe VAM approach to the productive process

process process

time time

analysisanalysis

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homework ?homework ?

..oh, yes !!!..oh, yes !!!

SEWSEWSYSTEMATIC SYSTEMATIC

ELIMINATION OF WASTEELIMINATION OF WASTE

VALUE!VALUE!

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SUMMARY OF THE MAIN TYPES OF WASTESUMMARY OF THE MAIN TYPES OF WASTE

��OverproductionOverproduction

��TransportationTransportation

��Waiting/idlingWaiting/idling

��DefectsDefects

��ControlControl

��MotionMotion

��UnUn--needed processing stepsneeded processing steps

��StockStock

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WASTE WASTE –– THE TABLE OF EXCUSES THE TABLE OF EXCUSES -- OLDOLD1) That's the way we have always done it1) That's the way we have always done it

12) I wasn't hired to do that12) I wasn't hired to do that

11) I thought I told you11) I thought I told you

10) I'm so busy I just can't get around to it10) I'm so busy I just can't get around to it

9) I didn't think it was very important9) I didn't think it was very important

8) I forgot8) I forgot

7) Wait till the boss comes back & ask him7) Wait till the boss comes back & ask him

6) That's his job 6) That's his job -- not minenot mine

5) I am waiting for an OK5) I am waiting for an OK

4) No one told me to go ahead4) No one told me to go ahead

3) That's not in my department3) That's not in my department

2) I didn't know you were in a hurry for it2) I didn't know you were in a hurry for it

WASTE WASTE –– THE TABLE OF EXCUSES THE TABLE OF EXCUSES -- NEWNEW1) That's the way we have always done it1) That's the way we have always done it

12) All machines eventually give problems12) All machines eventually give problems

11) We must control quality or clients will complain11) We must control quality or clients will complain

10) Set10) Set--up time cannot be reduced furtherup time cannot be reduced further……..

9) We need stock: it9) We need stock: it’’s a good investments a good investment

8) Impossible8) Impossible

7) You mean we are stupid the way we do it???7) You mean we are stupid the way we do it???

6) Managers and consultants6) Managers and consultants……. Only able to mess us up. Only able to mess us up

5) We have tried in the past, and it didn5) We have tried in the past, and it didn’’t workt work……

4) Why change? We are already so busy4) Why change? We are already so busy……..

3) This way we know it works3) This way we know it works……..

2) There is no better way, believe me2) There is no better way, believe me……..

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spot the waste!spot the waste!

the productive process the productive process

in manufacturingin manufacturing

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some definitionssome definitions

the productive process in manufacturingthe productive process in manufacturing

the productive process in manufacturingthe productive process in manufacturingsome definitionssome definitions

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““cataloguecatalogue”” manufacturingmanufacturing


““cataloguecatalogue”” manufacturingmanufacturing


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““orderorder”” manufacturingmanufacturing

TRADITIONAL SOLUTIONTRADITIONAL SOLUTION

AccommodateAccommodate a new Customer Order to fit into

actual Production Plan or declinedecline new Order.

If new Order can be “squeezed in”, often this may

only be done at the expenses of delaying Orders-

on-hand through a Production Plan rescheduleProduction Plan reschedule.



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TAKT TIME TAKT TIME -- EXAMPLEEXAMPLEPRODUCT: Brake Cylinder

PRODUCT CODE: BC 0183

MONTH PRODUCTION SCHEDULE

22 Working days

2 Shifts of 8 Hours each

Theoretical working time per shift (h:min) 8:00

Breaks & precautionary resting time (h:min) 0:20

Effective working time per shift (h:min) 7:40

Effective working time per day (h:min) 15:20

Effective working time per day (sec) 55.200

REQUIREMENT

Monthly requirement (pieces/month) 18.000

Daily requirement (pieces/day) 818

EFFECTIVE WORKING TIME PER DAYEFFECTIVE WORKING TIME PER DAY 55.200 (seconds/day)

TAKT TIMETAKT TIME = ------------------------------------------------------ = ------------------------------ = 67 (seconds/piece)67 (seconds/piece)

DAILY REQUIREMENTDAILY REQUIREMENT 818 (pieces/day)


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OVERPRODUCTION

spot the waste!spot the waste!Manufacturing Industry Manufacturing Industry -- 22

FACTS AND FIGURESFACTS AND FIGURES

Current sales: 500.000 packs/year Current sales: 500.000 packs/year –– slight peak in summerslight peak in summer

Current production (only from March to October): 18.000 packs/daCurrent production (only from March to October): 18.000 packs/day (8 hours)y (8 hours)

Current TAKT: 6.336.000/500.000 = 12,6 secondsCurrent TAKT: 6.336.000/500.000 = 12,6 seconds

Current speed of production: 28.800/18.000 = 1,6 seconds/packCurrent speed of production: 28.800/18.000 = 1,6 seconds/pack

Production Speed: 7,8 times faster than TAKTProduction Speed: 7,8 times faster than TAKT

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OPERATIONAL TAKT TIMEOPERATIONAL TAKT TIME

It is used to balance the productive process to cater for cater for

possible failurespossible failures (equipment downtime, absenteeism,

sudden change in customer demand…..).

Faster than the real Takt Time, it’s a fictitious,

precautionary timeprecautionary time.

In the previous example (TAKT TIME = 67 seconds), the

OPERATIONAL TAKT TIME might be set at 60 seconds.


PITCHPITCHCustomers normally expect products to be delivered in standard packstandard pack--out out

quantitiesquantities (cartons, pallets…..).

Pitch is the amount of time – based on TAKT TIME – required for any upstream

operation to release a predetermined pack-out quantity of product (or

components, sub-assemblies….) to a downstream operation.

Therefore

PITCH = TAKT TIME x PACKPITCH = TAKT TIME x PACK--OUT QUANTITYOUT QUANTITY

In the previous example, if the Brake Cylinders were packed in cartons of 24,

the PITCH would be 67 x 24 = 1608 seconds (26,8 minutes)


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BUFFER INVENTORY (BUFFER STOCK)BUFFER INVENTORY (BUFFER STOCK)Buffer Stock is used when Customer Demand suddenly increasesCustomer Demand suddenly increases, and the

productive process is not capable of meeting a reduced TAKT TIME.


FINISHED GOODS SUPERMARKETFINISHED GOODS SUPERMARKETA system used in the most downstream zone of a productive process to store a a

set amount of finished goods, ready to be despatchedset amount of finished goods, ready to be despatched to Customers.

System used wherever is not feasible to achieve a continuous flow.

NB: The SUPERMARKET Stock Level does not include BUFFER nor

SAFETY Stocks.

SAFETY INVENTORY (SAFETY STOCK)SAFETY INVENTORY (SAFETY STOCK)Safety Stock is used to cater for possible internal problemspossible internal problems (from power

outages to poor equipment reliability, quality problems, etc.).

in a LEAN environment, both types of Stock are considered temporin a LEAN environment, both types of Stock are considered temporary measuresary measures

WIP WIP –– WORK IN PROGRESSWORK IN PROGRESSThe number of workwork--piecespieces (products, by-products,

semi-products….) requiredrequired or anyhow “present” at any

processing station for processing.

DAYS OF WIP ON HANDDAYS OF WIP ON HANDSum of all WIP present along the entire manufacturing

process of a product, divided by the (average) daily

volume of product delivered to customers.


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which flow component is which flow component is ““eatingeating”” leadlead--time ???time ???

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PUSH and PULL PRODUCTION METHODSPUSH and PULL PRODUCTION METHODS




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BATCH (PUSH) PRODUCTION vs. BATCH (PUSH) PRODUCTION vs.

CONTINUOUS FLOW (PULL) PRODUCTIONCONTINUOUS FLOW (PULL) PRODUCTION

the productive process in manufacturingthe productive process in manufacturing

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ONON--TIME DELIVERY RATE (OTDR)TIME DELIVERY RATE (OTDR)Degree of reliabilityreliability of any upstream operation to release in due time its output

to a downstream operation.

A Flow System may compound problems and reduce considerably the overall

process’ OTDR unless the entire process is improved/streamlined:


the the kanbankanban method method

overviewoverview

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the the kanbankanban methodmethod

Pull-style re-ordering system by which a downstream

process requests goods from an upstream process.

The request is by means of a rere--ordering Tagordering Tag

(kanbankanban).

The method may be extended to the entire

manufacturing process or only to part of it.

It is normally applied to repetitive operations.

simplified examplesimplified example

the the kanbankanban methodmethod

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flash 1flash 1

the the kanbankanban methodmethodsimplified examplesimplified example


flash 2flash 2

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flash 3flash 3


flash 4flash 4

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flash 5flash 5


flash 6flash 6

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flash 7flash 7


flash 8flash 8

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� work-pieces’ containers must contain always the

same (prepre--defineddefined) number of itemsnumber of items

� the parking areaparking area of “full” containers is pre-defined and

fixed

� a kanban tag is always for a pre-defined number of

pieces (base quantitybase quantity)

�� multiples of the base quantitymultiples of the base quantity are produced against a

corresponding number of tags

the the kanbankanban method method –– the rulesthe rules

� tags must necessarily be attached to containersattached to containers

� containers may be moved only if the associated tag is

there

� a kanbankanban tag showstag shows: item description - item code -

quantity of items in the container - total number of

items to be produced

the the kanbankanban method method –– the rulesthe rules

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the the kanbankanban method method –– types of types of kanbankanban::

SIGNAL SIGNAL KanbanKanban::Printed Card indicating the number of parts that need to be producedparts that need to be produced to

replenish what a downstream operation has pulleddownstream operation has pulled

WITHDRAWAL WITHDRAWAL KanbanKanban::Printed Card indicating the number of parts to be removedparts to be removed from a previous

operation to be supplied downstreamto be supplied downstream

PRODUCTION PRODUCTION KanbanKanban:Printed Card indicating the number of parts that need to be producedparts that need to be produced to

replenish what customers have pulledcustomers have pulled

��stockstock and wipwip can be accurately measuredmeasured and knownknown at a

glance

the the kanbankanban method method –– benefits benefits -- remarksremarks

the the kanbankanban method is a method is a ““pullpull”” production method, production method,

but not necessarily a but not necessarily a ““flowflow”” and and ““leanlean”” methodmethod

� the higher the inefficiencies above, the higher the wip

�production planning must consider : non-conformities -

equipment losses - set-ups

��production planningproduction planning based on the kanban method is easiereasier

��overproductionoverproduction is eliminated or at least controlledcontrolled

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kanbankanban in actionin action

PRODUCTION LEVELLINGPRODUCTION LEVELLINGEvenly distributingdistributing over a day (or a shift) the workthe work required all along the

product’s manufacturing process to meet customers demandto meet customers demand (based on

TAKT TIMETAKT TIME)

(Unlevelled production means some Processing Stations fall behind with their

schedule, causing idle time downstream, while other wait for work)

(Production Levelling applies to the entire Manuf. Process)


METHODS FOR PRODUCTION LEVELLINGMETHODS FOR PRODUCTION LEVELLINGCM=“Catalogue” Manufacturing OM=“Order” Manufacturing

•• Continuous FlowContinuous Flow (all situations that allow it – CM and OM)

•• KanbanKanban (all situations – CM and combination OM/CM)

•• Paced WithdrawalPaced Withdrawal (narrow variety of products along the same

processing line - CM only)

•• HeijunkaHeijunka Box/Runner systemBox/Runner system (large variety of products along the

same processing line – CM only)

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PACED WITHDRAWALPACED WITHDRAWALSystem for moving small batches of product from one

Processing Station to the next at time intervals equal at time intervals equal

to the to the pitchpitch (or a small multiple of it).

The pitch determines the frequency with which

containers are released from Processing Station to

Processing Station and eventually to shipping.


the the ““stockstock”” issueissue

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effects of the effects of the ““pushpush”” (and (and

““nonnon--leanlean”” pull) methodspull) methods

the the ““stockstock”” issueissue

the STOCK issuethe STOCK issue

why does stock pile up ?why does stock pile up ? ((……and sometimes floods the factoryand sometimes floods the factory……))

(OBSOLETE) MENTALITY(OBSOLETE) MENTALITY

PROCESS UNBALANCES & BOTTLENECKSPROCESS UNBALANCES & BOTTLENECKS

PRODUCTS CONVERGING FROM VARIOUS PROCESSESPRODUCTS CONVERGING FROM VARIOUS PROCESSES

PRODUCT DISTRIBUTION TO VARIOUS PROCESSESPRODUCT DISTRIBUTION TO VARIOUS PROCESSES

WAITING FOR WAITING FOR ““ROAMINGROAMING”” OPERATORSOPERATORS

WAITING FOR CHANGEWAITING FOR CHANGE--OVEROVER

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““ENDEND--OFOF--THETHE--MONTHMONTH”” FEVERFEVER

SEASONAL PRODUCTION/SALESSEASONAL PRODUCTION/SALES

and ERRORS; MISUNDERSTANDINGS; and ERRORS; MISUNDERSTANDINGS;

WRONG PLANNING (PRODUCTION and PROCUREMENT);WRONG PLANNING (PRODUCTION and PROCUREMENT);

INADEQUATE STOREINADEQUATE STORE--KEEPING/KEEPING/

/ADMINISTRATION/STOCK MANAGEMENT; /ADMINISTRATION/STOCK MANAGEMENT;

TECHNICAL/COMMERCIAL OBSOLESCENCE; etc. etc.TECHNICAL/COMMERCIAL OBSOLESCENCE; etc. etc.…….. ..


why does stock pile up ?why does stock pile up ? ((……and sometimes floods the factoryand sometimes floods the factory……))

how much does stock cost ? how much does stock cost ?

…one year of carrying raw materials, wip and finished goods can cost 35% of their value…..


……one year of carrying raw materials, one year of carrying raw materials,

wipwip and finished goods can cost 35% and finished goods can cost 35%

of their valueof their value……....

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LEAN MANUFACTURING LEAN MANUFACTURING

and FLOW PRODUCTIONand FLOW PRODUCTION

the target:the target:

p i p e l i n e f l o wp i p e l i n e f l o w

c o n t i n u o u s f l o wc o n t i n u o u s f l o w

Lean Manufacturing uses less of everything Lean Manufacturing uses less of everything

compared with mass production:compared with mass production:

half the human effort in the factory, half the half the human effort in the factory, half the

manufacturing floor space, half the investment manufacturing floor space, half the investment

in tools, half the engineering hours to develop in tools, half the engineering hours to develop

a new product in half the time. a new product in half the time.

Also it requires keeping far less than half the Also it requires keeping far less than half the

needed inventory and results in fewer needed inventory and results in fewer

defectsdefects……....James P Womack – Daniel T Jones – Daniel Roos

(The machine that changed the world)

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APPROACHESAPPROACHES

to to

TOTAL TOTAL

PRODUCTIVITYPRODUCTIVITY

in in

MANUFACTURINGMANUFACTURING

FIGHTING WASTE IN PRODUCTIONFIGHTING WASTE IN PRODUCTIONthe enemies and the weaponsthe enemies and the weapons

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FIGHTING WASTE IN PRODUCTIONFIGHTING WASTE IN PRODUCTIONthe enemies and the weaponsthe enemies and the weapons

the the ““SOCOSOCO”” (5S) approach(5S) approach

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the nonthe non--socosoco factoryfactory

a a socosoco storystory

5S in action5S in action

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a a socosoco factoryfactory


a a socosoco factoryfactory


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LOT (BATCH) LOT (BATCH)

PRODUCTIONPRODUCTIONVS.VS.

FLOW FLOW

PRODUCTIONPRODUCTION

LOT PRODUCTIONLOT PRODUCTION VS. FLOW PRODUCTIONVS. FLOW PRODUCTION

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fake flow productionfake flow production

the conveyor methodthe conveyor method


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““batch productionbatch production”” vs. vs.

““oneone--piece flowpiece flow””

batch production vs. onebatch production vs. one--piece flowpiece flow

analysis

ANALYSISANALYSIS

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UU--CELL CELL

MANUFACTURINGMANUFACTURING

ONEONE--PIECE FLOWPIECE FLOW

UU--CELL MANUFACTURINGCELL MANUFACTURINGTRADITIONAL LINE/UTRADITIONAL LINE/U--LINE COMPARISONLINE COMPARISON

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UU--CELL MANUFACTURINGCELL MANUFACTURINGTRADITIONAL LINE/UTRADITIONAL LINE/U--LINE COMPARISONLINE COMPARISON

MAIN TYPES OF PRODUCTION CELLSMAIN TYPES OF PRODUCTION CELLS

UU--CELL MANUFACTURINGCELL MANUFACTURING

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UU--CELL MANUFACTURINGCELL MANUFACTURINGMAIN TYPES OF PRODUCTION CELLSMAIN TYPES OF PRODUCTION CELLS

cell manufacturingcell manufacturing

labourlabour--intensive situationintensive situation

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ASSEMBLY CELLS ASSEMBLY CELLS -- ERGONOMICSERGONOMICSRemember the three primary ergonomic operating zones:Remember the three primary ergonomic operating zones:

the optimum work zonethe optimum work zone

the optimum grab zonethe optimum grab zone

the maximum grab zonethe maximum grab zone

parts presentation, the assembly sequenceparts presentation, the assembly sequence

and tool organisation should all be limitedand tool organisation should all be limited

to the optimum zones as much as possibleto the optimum zones as much as possible

Remember: people move in arcs, not straight linesRemember: people move in arcs, not straight lines

THE CLASSIC 7 REQUIREMENTS FOR THE CLASSIC 7 REQUIREMENTS FOR

CONTINUOUS FLOW MANUFACTURINGCONTINUOUS FLOW MANUFACTURING

1. 1. ““OneOne--piecepiece”” flowflow

2. Machines/Workplaces positioned in 2. Machines/Workplaces positioned in

processing sequenceprocessing sequence

3. 3. ““CompactCompact”” Equipment (both specialised & Equipment (both specialised &

general purpose)general purpose)

4. Multi4. Multi--process operations (worker moves process operations (worker moves

from operation to operation down the from operation to operation down the

line)line)

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5. Well studied cycle5. Well studied cycle--time (process must be time (process must be

synchronised to keep pace with Clientssynchronised to keep pace with Clients’’

needs/next processneeds/next process’’ needs)needs)

6. Multi6. Multi--skilled workersskilled workers

7. Standing (chair7. Standing (chair--free) operationsfree) operations

THE CLASSIC 7 REQUIREMENTS FOR THE CLASSIC 7 REQUIREMENTS FOR

CONTINUOUS FLOW MANUFACTURINGCONTINUOUS FLOW MANUFACTURING

continuous flow golden rulescontinuous flow golden rules

Production Production ““pitchpitch”” coco--ordinated with Customersordinated with Customers’’ needs.needs.

1st RULE1st RULE

MANUFACTURING CYCLEMANUFACTURING CYCLE--TIME = TAKT TIMETIME = TAKT TIME

(Produce daily what you sell daily....Produce daily what you sell daily....)

number of items to be produced = number of items to be produced =

number of items required by Customersnumber of items required by Customers

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MANUFACTURING CYCLEMANUFACTURING CYCLE--TIME = TAKT TIMETIME = TAKT TIME

MICROMICRO--MIX = MACROMIX = MACRO--MIXMIX

continuous flow golden rulescontinuous flow golden rules1st RULE1st RULE

2nd RULE2nd RULE

Large pieces of equipment, intended for Large pieces of equipment, intended for

batch production or designed for FMS batch production or designed for FMS

(Flexible Manufacturing System) are not (Flexible Manufacturing System) are not

suited for Flow Production/Onesuited for Flow Production/One--Piece FlowPiece Flow

BASE EQUIPMENT CAPACITY / BASE EQUIPMENT CAPACITY /

/ UTILISATION ON TAKT/ UTILISATION ON TAKT--TIMETIME


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3rd RULE3rd RULE

Market demand data are directed only to Market demand data are directed only to

the Assembly process (final process), and the Assembly process (final process), and

from here relayed upfrom here relayed up--streamstream

PULL PRODUCTION PRINCIPLEPULL PRODUCTION PRINCIPLE


4th RULE4th RULE

An horizontal (job shop) layout is not An horizontal (job shop) layout is not

suited to Flow Production/Onesuited to Flow Production/One--Piece FlowPiece Flow

VERTICAL LAYOUT (FLOW LAYOUT)VERTICAL LAYOUT (FLOW LAYOUT)


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labour/machines situationlabour/machines situation

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Lean Manufacturing and Lean Manufacturing and

Total Quality ManagementTotal Quality Management

THE POKATHE POKA--YOKE DISCIPLINEYOKE DISCIPLINE

100% TESTING APPROACHES100% TESTING APPROACHES

THE 6 SIGMA METHODOLOGYTHE 6 SIGMA METHODOLOGY

FLOW PRODUCTION FLOW PRODUCTION -- THE QUALITY ISSUETHE QUALITY ISSUE

““If a system is not If a system is not

fundamentally designed for fundamentally designed for

quality, all the SPC consultants quality, all the SPC consultants

in the world wonin the world won’’t help. Your t help. Your

fate is designed infate is designed in”” [Jim Swartz]

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The 5 QA Achievement Levels


5) Processes do not create defects to begin with5) Processes do not create defects to begin with

4) Processes do not send defects downstream4) Processes do not send defects downstream

3) Factory reduces defects3) Factory reduces defects

2) Factory does not deliver defective products2) Factory does not deliver defective products

1) Factory delivers defective products1) Factory delivers defective products

Flow Production is Flow Production is

based on QA level 5: based on QA level 5:

ZERO DEFECTSZERO DEFECTS


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Quality Inspection Quality Inspection builtbuilt--intointo the the

productive process: 100% inspectionproductive process: 100% inspection

PokaPoka--Yoke devices builtYoke devices built--into the into the

productive process for guaranteed qualityproductive process for guaranteed quality

If defects occur, the process is stopped, If defects occur, the process is stopped,

and the cause/s found and eliminatedand the cause/s found and eliminated

No double check/double inspectionNo double check/double inspection

Inspection Department IS Inspection Department IS

the Production Departmentthe Production Department


6 Sigma methodology in extreme or 6 Sigma methodology in extreme or

well suited situationswell suited situations

100% testing100% testing

Flash Images of fully automated Flash Images of fully automated

and semiand semi--automated calibrating automated calibrating

and testing lines for the and testing lines for the ““Common Common

RailRail”” Diesel Injection System.Diesel Injection System.

Lines engineered by AEA Lines engineered by AEA SrlSrl of Italy.of Italy.

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a worlda world--class enterprise dedicated class enterprise dedicated

to 100% quality testingto 100% quality testing

100% testing100% testing100% testing

The 6-SigmaThe 6The 6--SigmaSigma

MethodologyMethodologyMethodologyoverview

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pokapoka--yokeyoke

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MISTAKEMISTAKE--PROOFING IN EVERYDAYPROOFING IN EVERYDAY’’S LIFES LIFE


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POKAPOKA--YOKE APPLICATIONSYOKE APPLICATIONS

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POKAPOKA--YOKE APPLICATIONSYOKE APPLICATIONS

POKAPOKA--YOKE APPLICATIONS YOKE APPLICATIONS -- CYTOCARECYTOCARE

BEFORE

Syringes loading by means of

rollers and force of gravity.

Possibility of mistaken loading.

AFTER

Dedicated loading system.

No possibility of mistakes.

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YEARS 2000YEARS 2000

FACTORS OF COMPETITIVENESSFACTORS OF COMPETITIVENESS

C r e a t i v i t yC r e a t i v i t y

the 6 thinking hatsthe 6 thinking hats

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EXERCISE???EXERCISE???

……..oh, yes!!!..oh, yes!!!pokapoka--yoke ityoke it……..

FLOW PRODUCTION FLOW PRODUCTION -- THE QUALITY ISSUETHE QUALITY ISSUEThe “turn-this-board” strategy

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FLOW PRODUCTION FLOW PRODUCTION -- THE QUALITY ISSUETHE QUALITY ISSUEThe “turn-this-board” strategy

FLOW PRODUCTION + UFLOW PRODUCTION + U--CELL MANUFACTURINGCELL MANUFACTURING

the correct approach to equipmentthe correct approach to equipment

Capacity: conservative rather than optimisticCapacity: conservative rather than optimistic

Adhere to the oneAdhere to the one--piecepiece--flow ruleflow rule

Equipment conceived for qualityEquipment conceived for quality

Fast enough to cope with the Fast enough to cope with the TaktTakt--TimeTime

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Specialised, inexpensive machines (not GP)Specialised, inexpensive machines (not GP)

Compact, easy to moveCompact, easy to move

Standardised, easy to operateStandardised, easy to operate

Man & Machine: separate valueMan & Machine: separate value--addingadding



Fast to setFast to set--up, easy to maintainup, easy to maintain

Inlet and Outlet on the same sideInlet and Outlet on the same side

Simple, human automationSimple, human automation

Simple, foolSimple, fool--proof devices/accessoriesproof devices/accessories



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why machine inlet and outlet why machine inlet and outlet

should be on the same sideshould be on the same side


First improve people, then methods, First improve people, then methods,

then equipmentthen equipment

Go for the Go for the ““poor manpoor man”” approachapproach

Be Be ““people orientedpeople oriented”” and and

““customercustomer--orientedoriented”” rather rather

than than ““machinemachine--orientedoriented””



69


labour/machines situation2labour/machines situation2

UU--CELL MANUFACTURINGCELL MANUFACTURING

70

cell productioncell production

oneone--piece flowpiece flow

continuous flowcontinuous flow

HEAVY MECHANISATION / HEAVY MECHANISATION /

AUTOMATIONAUTOMATION

LEAN MANUFACTURING LEAN MANUFACTURING

and TPMand TPM

TOTAL PRODUCTIVE MAINTENANCETOTAL PRODUCTIVE MAINTENANCE

72

““traditionaltraditional”” TPMTPM

PARTICIPATIVEPARTICIPATIVE PROGRAMS DESIGNED TO INCREASE EQUIPMENT EFFECTIVENESS (PRODUCTIVITY - QUALITY -SAFETY) AIMING AT VARIOUS GOALS:

definitiondefinition

�AUTONOMOUS MAINTENANCE ACTIVITIES TO

MAINTAIN BASIC EQUIPMENT CONDITIONS

�ELIMINATION OF ACCELERATED DETERIORATION

�RESTORATION OF EQUIPMENT TO OPTIMAL

OPERATING CONDITIONS

�ELIMINATION OF THE 6 BIG LOSSES6 BIG LOSSES, IN ORDER TO

MAXIMISE EQUIPMENT EFFECTIVENESS

““traditionaltraditional”” TPMTPMgoalsgoals

�INCREASE IN EFFICIENCY AND COST-EFFECTIVENESS

OF MAINTENANCE FUNCTION

�INCREASE OF OPERATION AND MAINTENANCE SKILLS

�MAINTENANCE PREVENTION

�MAINTAINABILITY IMPROVEMENT AND DEVELOPMENT

OF A MAINTENANCE SYSTEM FOR THE EQUIPMENT

LIFE

73

““traditionaltraditional”” TPMTPM

�TOTAL INVOLVEMENT OF PEOPLE FROM ALL DEPTS.

THAT PLAN, DESIGN, USE OR MAINTAIN EQUIPMENT

�AND OTHERS

�MAX. SAFETY AND ENVIRONMENT CONSERVATION/

/POLLUTION CONTROL

�INVOLVEMENT OF TOP MANAGEMENT

goalsgoals

““todaytoday’’ss”” TPMTPM

today’s TPM focuses on the entire

productive processproductive process to assure that the right equipment is part of a valuevalue--

adding/wasteadding/waste--freefree series of operations

and to assure (by deploying “traditional”TPM approaches) that equipment

contributes “effectively” to the primary objective of valuevalue--generationgeneration

74

spot the wastespot the waste……

……around machinesaround machines……

75

THE 6 BIG LOSSESTHE 6 BIG LOSSES

76



77

PREVENTIVE MAINTENANCEPREVENTIVE MAINTENANCE

AUTONOMOUS MAINTENANCEAUTONOMOUS MAINTENANCE

the hearts of TPMthe hearts of TPM

The new relationship between The new relationship between

Maintenance and ProductionMaintenance and Production

CAN TPM BE ASSOCIATED TO OTHERCAN TPM BE ASSOCIATED TO OTHER

yes, it can!

PREDICTIVE MAINTENANCEPREDICTIVE MAINTENANCE

(or CBM – CONDITION BASED MAINTENANCE)

for instance:

and others

IPF IPF –– INSTRUMENT PROTECTIVE FUNCTIONINSTRUMENT PROTECTIVE FUNCTION(emergency shut-down systems – gas and fire systems)

RCM RCM –– RELIABILITY CENTRED MAINTENANCERELIABILITY CENTRED MAINTENANCE(for critical rotating equipment and as a “maintenance policy-maker”)

RBI RBI -- RISKRISK--BASED INSPECTIONBASED INSPECTION (for pressure vessels and piping)

““TECHNICALTECHNICAL”” MAINTENANCE DISCIPLINES?MAINTENANCE DISCIPLINES?

78

ACHIEVING QUICK CHANGEACHIEVING QUICK CHANGE--OVEROVER

1. Changing1. Changing--over efficiently over efficiently

and effectively requires a and effectively requires a

high level of knowledge high level of knowledge

and ability, which areand ability, which are

the result of long the result of long

training and experiencetraining and experience

OBSOLETE, TRADITIONAL ASSUMPTIONS ON C/OOBSOLETE, TRADITIONAL ASSUMPTIONS ON C/O

79


2. Producing in large lots2. Producing in large lots

mitigates the effects andmitigates the effects and

counterbalances the costscounterbalances the costs

of long c/o timesof long c/o times


3. Producing with the 3. Producing with the

criterion of "economic lot criterion of "economic lot

size" does also size" does also

counterbalance the cost counterbalance the cost

of (large) inventory, of (large) inventory,

consequent to largeconsequent to large--lotlot

productionproduction

80


E.L.S. (ECONOMIC LOT SIZE) = E.O.Q. (ECONOMIC ORDER QUANTITY)E.L.S. (ECONOMIC LOT SIZE) = E.O.Q. (ECONOMIC ORDER QUANTITY)

effects of long seteffects of long set--upsups

81

changechange--over timeover time

= interval of time elapsed between = interval of time elapsed between

production of production of last defectlast defect--free itemfree item

(product, by(product, by--product, workproduct, work--piece....) piece....)

of of previous lotprevious lot, and , and first defectfirst defect--free free

itemitem of of next lotnext lot

definitionsdefinitions

INTERNAL CHANGEINTERNAL CHANGE--OVER TIMEOVER TIME

throughout this time throughout this time no no

value is added to productsvalue is added to products

Interval of time during which Interval of time during which the productive the productive

process stopsprocess stops: this : this should beshould be the real and proper the real and proper

changechange--over timeover time, that begins when the current , that begins when the current

lot process finishes, and ends when the next lot lot process finishes, and ends when the next lot

process produces the 1st defectprocess produces the 1st defect--free item.free item.


82

EXTERNAL CHANGEEXTERNAL CHANGE--OVER TIMEOVER TIME

part of this time may elapse before Internal part of this time may elapse before Internal

ChangeChange--Over Time, and part afterOver Time, and part after

Interval of time during processing (of previous Interval of time during processing (of previous

and next lot), during which and next lot), during which changechange--over related over related

activitiesactivities (like transport, preparation, etc.) may (like transport, preparation, etc.) may

and and should beshould be implemented by various implemented by various

personnel (fitters, workers, operators....).personnel (fitters, workers, operators....).


OVERALL CHANGEOVERALL CHANGE--OVER TIME OVER TIME = = Internal ChangeInternal Change--Over Time + Over Time +

External ChangeExternal Change--Over Time.Over Time.


83


objectivesobjectives

streamlinestreamline (essential) (essential) external c/o activitiesexternal c/o activities

eliminateeliminate/minimise /minimise adjustmentsadjustments

minimise timeminimise time required for (essential) required for (essential) internal c/o activitiesinternal c/o activities

make make easyeasy all c/o operations, so that they can be implemented all c/o operations, so that they can be implemented

by medium/lowby medium/low--skilled workersskilled workers

eliminate eliminate wastewaste


objectivesobjectives

streamlinestreamline (essential) (essential) external c/o activitiesexternal c/o activities

eliminateeliminate/minimise /minimise adjustmentsadjustments

minimise timeminimise time required for (essential) required for (essential) internal c/o activitiesinternal c/o activities

make make easyeasy all c/o operations, so that they can be implemented all c/o operations, so that they can be implemented

by medium/lowby medium/low--skilled workersskilled workers

eliminate eliminate wastewaste

84

flow production and quick changeflow production and quick change--overover

the missing link...the missing link...Charlie Rev. 0 Charlie Rev. 0

22 minutes22 minutes

85

CHANGECHANGE--OVER CHECKOVER CHECK--TABLETABLE

back to Charlieback to Charlie……

rev. 1rev. 1Charlie Rev. 1 Charlie Rev. 1

4 minutes4 minutes

86

from SMED to OTEDfrom SMED to OTED

Charlie Rev. 5 Charlie Rev. 5

1 second1 second

is it possible?is it possible?

a QCO casea QCO casepositioning jig for automated positioning jig for automated

robotrobot--welding of silencerswelding of silencers

87

QCOQCOdream or reality?dream or reality?

……are Lean are Lean

Manufacturing Manufacturing

and Flow and Flow

Production Production

suited to you?suited to you?

88

The answer is always:The answer is always:

yes!!yes!!

LEAN MANUFACTURINGLEAN MANUFACTURING

PRINCIPLESPRINCIPLES

IN THE MININGIN THE MINING

INDUSTRYINDUSTRY

89

LEAN THINKING PRINCIPLES IN THE MINING INDUSTRYLEAN THINKING PRINCIPLES IN THE MINING INDUSTRY

2 main operational processes:2 main operational processes:

��the ore treatment processthe ore treatment process

��the extraction processthe extraction process

EXAMPLES

Spot the Waste!Spot the Waste!

Mining Industry: Ore ProcessingMining Industry: Ore Processing

90

LEAN MANUFACTURINGLEAN MANUFACTURING

ANDAND

THE CONTINUOUSTHE CONTINUOUS

PROCESS INDUSTRYPROCESS INDUSTRY

LEAN MANUFACTURING AND THE LEAN MANUFACTURING AND THE

CONTINUOUS PROCESS INDUSTRYCONTINUOUS PROCESS INDUSTRY

Targets:Targets:

c) c) assure the Flowassure the Flow: through TPM & other technical : through TPM & other technical

Maintenance disciplinesMaintenance disciplines

b) b) pull the Flowpull the Flow: relate Operations to the Market: relate Operations to the Market

a) a) balance the Flow:balance the Flow: through Continuous Flow techniquesthrough Continuous Flow techniques

91

LEAN MANUFACTURING AND THE LEAN MANUFACTURING AND THE

CONTINUOUS PROCESS INDUSTRYCONTINUOUS PROCESS INDUSTRY

��eliminate the residual waste around the Floweliminate the residual waste around the Flow

Additional Target:Additional Target:

EXAMPLES

The Control Room syndromeThe Control Room syndrome

92

VALUE VALUE

STREAM STREAM

MANAGEMENTMANAGEMENT

Descending from Value Adding Management and Process Engineering,

Value Stream Management (VSM) is a discipline for planning and

linking “lean” initiatives.

VALUE STREAM MANAGEMENTVALUE STREAM MANAGEMENT

This is done operationally by deploying the Value Stream Mapping

technique, that calls for systematic data collection and analysis.

The primary target:

Manufacturing leadManufacturing lead--time (throughput time) reduction time (throughput time) reduction

through waste eliminationthrough waste elimination

Although it might be used for improving any process, VSM is generally adopted to

improve the Manufacturing (operations) process.

93

How?How?

Understanding/analysing Flow of Materials and Flow of Information

along the selected Value Stream/s.

To become effective, VSM must be understood, supported and driven by

Top Management – and understood/known operationally by Managers,

Supervisors, Team Leaders and key frontline personnel.

VSM actually does link the needs of Top Management (aiming at

tangible improvement results) with the needs of the

operations/improvement groups (needing practical tools).

The common tool for both is the VSM storyboardstoryboard (a poster size

framework holding all key data for planning lean initiatives).



VSM storyboardVSM storyboard

94

9 major steps:

A) Strong commitment to “lean”

B) Identify, select and choose “Value StreamsValue Streams” (per “product” or “class of products”)

C) Learn “lean” practices

D) “Current StateCurrent State” Mapping

E) Determine applicable “metrics”

F) “Future StateFuture State” Mapping

G) Set Kaizen-style Improvement Plans

H) Implement Improvement Plans

I) Monitor



A) Strong Commitment to A) Strong Commitment to ““LeanLean””

Key Points:

Top Management must “understand” LEAN

TM must never confuse a lean exercise with a cost-cutting exercise

TM must understand that the lean project must be top-driven, supported

and monitored in all its stages

TM must make a “loud declarationloud declaration” that the enterprise is now going

into the lean direction

+ Appointment of a Lean Project + Appointment of a Lean Project

Manager (LPM)Manager (LPM)

95


B] Identify, select and choose Value Stream/sB] Identify, select and choose Value Stream/s

Value StreamValue Stream:

Is that sequence of processing activities that produce as an output a

product or range of products (or service/s, or both).

A value stream is a process, the entire process required to produce a

product or range of products, including all its processing stations,

manufacturing lines, etc.

It begins in the incoming raw materials area, and ends at the product/s

despatching area.

under the VSM angle of view, a value stream begins at under the VSM angle of view, a value stream begins at

supplier's premises and ends at client/s' premisessupplier's premises and ends at client/s' premises

How many Value Streams?How many Value Streams?


c] Learn lean practicesc] Learn lean practices

Key Points:

Formal and informal training

Including: awareness generation/sensitisation to identification +

elimination of waste - rather comprehensive presentation of lean

benefits, limitations, constraints and implications - an initial, broad

presentation of the available lean disciplines and their areas of

deployment - illustration of practical VSM procedures and tools - tips

on how to generate and maintain the "lean momentumlean momentum".

+ Train the Trainers program!+ Train the Trainers program!

Train: Train: allall those concerned!those concerned!

96

VALUE STREAM MAPPINGVALUE STREAM MAPPING

the the ““StoryboardStoryboard””

D) Mapping the D) Mapping the ““Current StateCurrent State””

PRELIMINARY STEP:

Round-the-table Team work

• The LPMLPM re-defines the Project

• highlights the reasons for selecting the chosen value stream/s

• re-explains briefly the VSM approach/procedures

• re-defines the operational Teams appointed for the task

• sets time-frames

• and assigns duties to the co-ordinators (subsub--PMPM) of the Operational

Teams


97


OPERATIONAL STEPS:

1) Map the Process1) Map the Process (Arrow DiagramArrow Diagram) – identifying all Processing

Components (both ValueValue--addingadding AND nonnon--ValueValue--addingadding) in the

selected value stream process - clearly identifying Value-adding

Operations points (Processing StationsProcessing Stations) – draft Process’ Map to

scale


all physical constraints (pillars, walls, etc.) as well as any dall physical constraints (pillars, walls, etc.) as well as any difference ifference

of floor level must be indicatedof floor level must be indicated

Benefits (for the Future State):

• illustrating all physical constraints may come extremely useful to

identify both criticalities and opportunities

• it open the doors to Process RazingProcess Razing and Group TechnologyGroup Technology studies

PROCESS MAPPINGPROCESS MAPPING

98

PROCESS MAPPINGPROCESS MAPPING

The symbols

(VSM icons)

Or your own!

VALUE STREAM MAPPINGVALUE STREAM MAPPINGD) Mapping the D) Mapping the ““Current StateCurrent State””

OPERATIONAL STEPS:

2) Preliminary Drafting of the CS2) Preliminary Drafting of the CS

99



OPERATIONAL STEPS:

2) Preliminary Drafting of the CS2) Preliminary Drafting of the CS



OPERATIONAL STEPS:

4) Drafting the Current State 4) Drafting the Current State –– Flow of MaterialsFlow of Materials

100



OPERATIONAL STEPS:

4) Drafting the Current State 4) Drafting the Current State –– Flow of MaterialsFlow of Materials

Use the TimeTime LineLine in the lower part of the Current State Map to show

significant time-related (hours, days or weeks) data, such as:

- overall typical or average time to processtime to process at each Processing Station

- typical/average time gaptime gap between Processing Stations – etc.



OPERATIONAL STEPS:

5) Data Collection (Current State 5) Data Collection (Current State –– Flow of Information)Flow of Information)

TargetTarget: identify all relevant data regarding information flow for the

selected Value Stream/s between:

- Client/s and Enterprise

- Enterprise and Supplier/s

- within the Enterprise: to Production Management, Planning and

Scheduling. Two essential "units" must be investigated:

the let's call it CentralCentral ProcessingProcessing UnitUnit

and the let's call it ProductionProduction Planning/ControlPlanning/Control UnitUnit

101



OPERATIONAL STEPS:

5) Mapping Current State 5) Mapping Current State –– Flow of InformationFlow of Information

VALUE STREAM MAPPINGVALUE STREAM MAPPINGE) Determine applicable E) Determine applicable ““MetricsMetrics””

VITAL! to compare (eventually) the present state of affairs

with a proposed, future, leaner one.

Details are not so important, especially for Top Management.

What TM needs is INDICESINDICES! (few, global and meaningful)

the selected Metric Parameters/Indices the selected Metric Parameters/Indices

must be must be ““universallyuniversally”” agreedagreed

102

Identify and enter in the Storyboard pertinent “Metrics”.

RecommendedRecommended Metric Parameters/Indices describing broadly but effectively the system "performance“:

Total Cycle-Time (ΣΣΣΣ Value-Adding Time)

Throughput Time

Ratio: Ratio: ΣΣΣΣΣΣΣΣ ValueValue--Adding Time/Throughput TimeAdding Time/Throughput Time

Defective Parts per Million (DPPP) Defective Parts per Million (DPPP) –– or Sigma Levelor Sigma Level

Overall Equipment EffectivenessOverall Equipment Effectiveness

Inventory turns

Days of inventory on-hand

Total ProcessTotal Process’’ WIPWIP

Uptime Rate

On-time Delivery (OTD) Index


Identify and enter in the Storyboard pertinent “Metrics”

The “Metrics” area should be conveniently subdivided to display:

- The Current State MetricsCurrent State Metrics

- The FutureFuture StateState MetricsMetrics

- The proposedproposed SystemSystem PerformancePerformance ImprovementImprovement


103

F) Mapping the F) Mapping the ““Future StateFuture State””

Implemented by the various VSM Teams by deploying:

- Their "lean" know-how

- Creative Thinking


The goal:

Produce a proposed, Future State Map that will be "leanerleaner" than the

present one (as lean as possible), bringing up a number of KaizenKaizen--style style

Improvement ProjectsImprovement Projects suited to the circumstance

The real targets are:

- Continuous FlowContinuous Flow

- PulledPulled by the Client/s

- With as little residual waste as possibleas little residual waste as possible

- With the shortest possible Throughput Timeshortest possible Throughput Time

- Maximising the main "lean" index: ΣΣVAVA--Time / Throughput TimeTime / Throughput Time


OPERATIONAL STEPS

1) Draw icons representing Client/s, Supplier/s, Central Processing Unit

and Production Planning/Control Unit – prepare Data Boxes


104

OPERATIONAL STEPS

7) PROCESS RAZING/GROUP TECHNOLOGY STUDY

This is where the previously drawn Process MapProcess Map (using the Arrow Arrow

DiagramDiagram tool) comes handy.

The study serves to identify machines/equipment/processing stations

required to process a number of products (or parts).

Target of the study: “group” together similar families of products or

parts, having in common similar processing steps carried out using

similar machines/processing stations.

Result of the study: a GROUP TECHNOLOGY LineGROUP TECHNOLOGY Line (or CellCell)

suitable to process all the concerned products/parts.

VALUE STREAM MAPPINGVALUE STREAM MAPPINGF) Mapping the F) Mapping the ““Future StateFuture State””

PROCESS ROUTE ANALYSIS PROCESS ROUTE ANALYSIS -- GROUPGROUP--TECHNOLOGYTECHNOLOGY

exampleexample

105

PROCESS ROUTE ANALYSIS PROCESS ROUTE ANALYSIS --GROUPGROUP--TECHNOLOGYTECHNOLOGY

exampleexample


exampleexample

106


exampleexample


exampleexample

107


exampleexample


exampleexample

The VSM Team tackling this

particular area of the Future

State may conclude that it is

possible to establish "Flow Flow

ProcessingProcessing" by means of 2

Group Technology CellsGroup Technology Cells (GT

Cells): the first to handle

processing of Products b and c,

and the second to handle

processing of Products a and d -

each manned by a multi-

skill/multi-function operator

108


OPERATIONAL STEPS

8) Brainstorming: is there any physical constraint or limitation

imposed by the factory layout (refer to Process Mapping)?

On the other hand, is there any hidden opportunity arising from the

factory layout that can be exploited?


Remember: the force of gravityforce of gravity

exists everywhere and is

freefree ofof chargecharge!


OPERATIONAL STEPS

8) Brainstorming: how will you then control upstream

production: KANBANKANBAN? - pure PULL/FLOW PULL/FLOW ? - ININ--

PROCESSPROCESS SUPERMARKETS SUPERMARKETS ? - or traditional

MRPMRP?


The real challenge is to try to go

for pure PULL/FLOWPULL/FLOW all along

the future value stream, if at all

possible.

109


OPERATIONAL STEPS

14) Finally, draw FLOW OF MATERIALSFLOW OF MATERIALS in the Future State Map



OPERATIONAL STEPS

15) Draw the Flow of InformationFlow of Information (electronic and manual): to/from

Customer/Supplier - to/from Production Planning/Control from/to

Processing Stations (include Production Supervisors' boxes in

between as required)


NB1: In a much leaner and pull system the Flow of Information between the

Planning/Control Unit and the Processing Stations becomes extremely simple:

information on orders to be produced are transmitted to the most downstream Station

(4/5/6 in the example) and simultaneously to the others. The entire system then gets

into motion in a pull style, and the continuous flow gets established.

NB2: In the VSM exercise also the entire Planning/Control Unit, as well as the

Central Processing Unit, may get totally "re-engineered" to suit the new system.

In a "lean" system no functional area remains untouched! In a "lean" system no functional area remains untouched!

110

G) SET KAIZENG) SET KAIZEN--STYLE LEAN IMPROVEMENT PLANSSTYLE LEAN IMPROVEMENT PLANS

The VSM Teams now have on hand all what is required to get to the

Future State system.

All data are available.

The systems (present and future) are no mystery.

The "direction" (the lean directionthe lean direction) is clear.

All is clear.

What is missing are three main items:

� A complete list of what needs to be done to get there

� In what sequence (what comes first, and second, and third......)

� The "who-is-going-to-be-in-charge-of-what“ issue



Eventually a "Lean Lean

Master PlanMaster Plan" can be

produced


111

WHAT A WHAT A

DIFFERENCE, DIFFERENCE,

COMPARED TO COMPARED TO

A TRADITIONAL A TRADITIONAL

IMPROVEMENTS IMPROVEMENTS

LISTLIST……..


� Calculate the overall investment associated with the implementation

of the Lean Master Plan

� Calculate the benefits associated with the implementation of the Lean

Master Plan (by comparison: CURRENT METRICS/FUTURE CURRENT METRICS/FUTURE

METRICSMETRICS)

� Calculate the ROIROI

� Get the LMP formally approved by Top Management

� Post the approved LMP next to the Storyboard


112

H] IMPLEMENT IMPROVEMENT PLANSH] IMPLEMENT IMPROVEMENT PLANS

KEY POINTS

� Lean Project PlanningLean Project Planning! (Last Planner Last Planner –– PPC PPC –– 5Why5Why)

� Review/touch-up as required


A Lean ProjectLean Project is ongoingongoing!

The target is a moving target.

There is no end to the lean trip.....There is no end to the lean trip.....

Implementation Time SpanImplementation Time Span: open debate

I] MONITORI] MONITOR

KEY POINTS

�� Continuous Monitoring/ControlContinuous Monitoring/Control!

� EverybodyEverybody!

� Co-ordinated by LPM

� Regular reportingreporting to Top Management

�� CelebrateCelebrate Milestone achievements!


FINAL REMARKSFINAL REMARKS

No easy/simple shortcut to VSM!

In simple cases: Spaghetti DiagramSpaghetti Diagram

And/or: start from downstream and “hithit thethe wallwall”!

113

CAN FLOW PRODUCTION BE CAN FLOW PRODUCTION BE

EXTENDED FACTORYEXTENDED FACTORY--WIDE ?WIDE ?

RELATIONSHIP WITH RELATIONSHIP WITH

SUPPLIERS IN A SUPPLIERS IN A

WORLDWORLD--CLASS CLASS

ENVIRONMENTENVIRONMENT

the the

““VENDORSVENDORS’’ CLASSIFICATION, CLASSIFICATION,

EVALUATION & RATINGEVALUATION & RATING””

disciplinediscipline

114

the valuethe value--chainchain

115

VENDORS CLASSIFICATIONIV CLASS - "NORMAL"

SUPPLIER

III CLASS - "PERFORMING" SUPPLIER II CLASS - "INTEGRATED"

SUPPLIER (Operational Comakership)

I CLASS - "PARTNER"

SUPPLIER

(Business Comakership)

RELATIONSHIP

DEVELOPMENT

CONVENTIONAL APPROACH° Negotiation focused on price° Minimal infos & quality specs° Conflictual interests° Little reciprocal trust° Governed by contractual power° Single-order purchases with little exception° Short-term purchases horizon° Many suppliers

"IMPROVEMENT" APPROACH° Primary attention to quality/price ratio° Large infos° More reciprocal trust° Many open orders & extensive purchases planning° Start-up of long-term relationship° Reduction of suppliers number (= selection)° Some experimental comakership° Target: vendor's improvement° Decentralization of production and responsibilities

OPERATIONAL INTEGRATION° Great attention to "total" process° Long-term relationship regularly (+- yearly) reviewed° Open infos (including market's feed-back)° High level of trust° Mutually agreed vendor's "recovery" procedures° Price fluctuations allowed with mutually agreed criteria° Systematic (and jointly defined) vendor's Kaizen programs (price-quality-process)° Open orders as a rule° Consulting/training services to Vendor

STRATEGIC INTEGRATION° Great attention to common business° Open doors, open "value-chain" and open info system° Benchmarking together° Full trust: vendor thrives on vendee's business and vendee thrives on vendor's support to business° Top level agreement on policies and strategies° Proper business partnership with some suppliers

QUALITY

ISSUE

° Vendor responsible only for conformity to specs° Systematic acceptance Inspections/Tests° Max guarantee only on a 100% test basis (sampling/AQL techniques and free-pass carry high risk)° Some inspections at source° Some "formal" certification (2nd and 3rd party) of vendor's QA system

° Extensive certification of vendor's QA

system

° Vendor's rating on "absolute" quality° Start-up of "auto-certification" programs

° Vendor responsible for conformity to use

° Quality improvement programs imposed to vendor

° Mix tests on acceptance/free-pass

° Extensive auto-certification° Focus on vendor's CWQC system° Quality guaranteed and auto-certified with jointly agreed criteria)° Vendor's global responsibility on consequences of non-conformities (product liability)° Free-pass with/without bonus° Integrated improvement programs (QA – TQM)

° Maintenance of auto- certification° Focus on GWQC° Co-design of quality specs and QFD° Free-pass as a rule° Vendor's globally responsible for end-user's satisfaction

LOGISTICS

° Buffer stocks: safe/necessary ° Start-up of JIT supplies (mainly Kanban)° Some buffer stocks

° JIT supplies (frequent/small-lots) directly to productive areas° No buffer stocks° Some synchro-supplies

° Global vendor's integration in vendee's productive flow – synchro supplies only° Common informatics and planning

PRODUCT-

PROCESS

DEVELOPMENT

° None/minimal vendor's involvement ° Some vendor's involvement° Vendee's imposition of vendor's process improvement programs

° Co-engineering & Co-design° Some common use of QFD° Some joint R & D investments

° Extensive, joint PPD and QFD° Extensive, joint R & D investments° Global involvement

EVALUATION

& RATING

° Price° Quality: compliance to specs° Reliability & Performance° Evaluation of QA system (2nd party certification)

° QA system evaluation/audit° Rating based on "absolute" quality° Evaluation/Rating based on Total Costs of (non-) quality

° Global Process capability audit° Evaluation and rating at Total Costs

° Global Vendor's Organization audit

MOTTO "Shop around for the best price" "Let's improve together" "The productive process starts at

vendor's premises"

"Let's make business together"

116

comakershipcomakership

the present and the futurethe present and the future

International Lean Supply Chain International Lean Supply Chain -- exampleexample

117

EXERCISE???EXERCISE???

……..oh, yes!!!..oh, yes!!!earn a diplomaearn a diploma……

OPERATIONS MANAGEMENT OPERATIONS MANAGEMENT

in a lean environmentin a lean environment

““simple is beautiful!simple is beautiful!””

““small is beautiful!small is beautiful!””

118

small is beautiful!small is beautiful! -- 11

PaulanerPaulaner BrBrääuhausuhaus

Clock TowerClock Tower

Cape Town WaterfrontCape Town Waterfront

121

small is beautiful!small is beautiful! -- 22

Bakeries todayBakeries today

123

small is beautiful! small is beautiful! -- 33

williamwilliam

124

williamwilliam

small is beautiful! small is beautiful! -- 44

edithedith

125

edithedith

LM and PEOPLELM and PEOPLE

and: the importance of Top Management commitment and: the importance of Top Management commitment

in implementing a LM programin implementing a LM program

126

…….so, you would like your people to be:.so, you would like your people to be:

ResponsibleResponsible

EfficientEfficient

Serious and reliableSerious and reliable

Dedicated to their workDedicated to their work

Committed to improvementCommitted to improvement…………

CostCost--consciousconsciousAccountableAccountable

????????

????????????

127

…….so, you would like your people to be:.so, you would like your people to be:

Efficient Efficient –– Responsible Responsible -- CostCost--

conscious conscious -- Dedicated to their work Dedicated to their work --

Serious and reliable Serious and reliable –– Accountable Accountable ––

Committed to improvementCommitted to improvement………… --

???? ???? -- ????? ????? -- ??????????????????????????

..in a nutshell: you would like your people to..in a nutshell: you would like your people to

performperform

128

This is possible: it can be achievedThis is possible: it can be achieved……

…….it depends on you, .it depends on you,

entrepreneurs and managersentrepreneurs and managers……....

..it..it’’s just your choice..s just your choice..

But:But: there are 3 necessary stepsthere are 3 necessary steps……

…….you would like your people to be: responsible .you would like your people to be: responsible –– accountable accountable ––

efficient efficient -- dedicated to their work dedicated to their work –– committed to improvementcommitted to improvement…………

THE 3 NECESSARY STEPSTHE 3 NECESSARY STEPS

1) Understand the environmental 1) Understand the environmental

change and manage itchange and manage it

2) Be prepared to abandon the 2) Be prepared to abandon the

““formulaformula””

3) Have a clear direction and tell 3) Have a clear direction and tell

people about itpeople about it……..

4) 4) …….and something more.and something more……....

129

Why do all traditional HR management and Why do all traditional HR management and

motivational techniques somehow fail?motivational techniques somehow fail?

Management by Objectives, Effective Leadership, Diversification,

Z Theory, Situational Leadership, Effective Communication, Zero-

based-Budgeting, Decentralisation, Team Building, Management

by Exception, Dale Carnegie techniques, Interpersonal Skills,

Quality Circles, Excellence, Restructuring, Portfolio Management,

Interactive Management, Matrix Organisational Structure, Total

Quality Management, ISO 9000..... and One-Minute Managing......

Why is communication so difficult in Why is communication so difficult in

many Traditional Enterprises?many Traditional Enterprises?

Why isWhy is therethere a communication problema communication problem in in

many enterprises?many enterprises?

And why is And why is ““talking to peopletalking to people”” considered a considered a

waste of time in many enterprises?waste of time in many enterprises?

..we have to look at organisational structures..we have to look at organisational structures……

130

……..that support an effective ..that support an effective

Employee Involvement scheme Employee Involvement scheme

and allow higher levels of and allow higher levels of

PerformancePerformance

ORGANISATIONAL ORGANISATIONAL

STRUCTURESSTRUCTURES

ORGANISATIONAL STRATEGIES

131

effective Human Resourceseffective Human Resources

Management StrategiesManagement Strategies

EFFECTIVE HR MANAGEMENT STRATEGIESEFFECTIVE HR MANAGEMENT STRATEGIES

132

““...the worst thing that could possibly ...the worst thing that could possibly

happen to an enterprise and its employees happen to an enterprise and its employees

is the adoption of an ineffective H R is the adoption of an ineffective H R

Management strategy......Management strategy......””

EXAMPLES OF EXAMPLES OF ““MISMIS--MATCHMATCH””

E2 M2

M1

E1

133

finally:finally:

a a ““traditionaltraditional”” enterprise is like a lawn mowerenterprise is like a lawn mower……

……if a person at the top is the most important, see what if a person at the top is the most important, see what

happens if a person at the bottom walks awayhappens if a person at the bottom walks away……..

134

As people's best motivations come from their As people's best motivations come from their own own

ideasideas, TEI stimulates people to release, in a , TEI stimulates people to release, in a

channelled mode, their channelled mode, their own creative energyown creative energy

for the benefit of the Customers, the Organisation's for the benefit of the Customers, the Organisation's

and their ownand their own

TEI is TEI is everyoneeveryone in the Organisation deeply involved, in the Organisation deeply involved,

using own using own brain powerbrain power, in , in problemproblem--solvingsolving, , learning, ,

continuous improvementcontinuous improvement activities, and systematic activities, and systematic

search for opportunitiessearch for opportunities

in a nutshell

HIGH (TOTAL) INVOLVEMENTHIGH (TOTAL) INVOLVEMENT

TEI is a system for organisational and people's TEI is a system for organisational and people's

changechange. .

It is a system that improves people's working It is a system that improves people's working

conditions by their own actions.conditions by their own actions.

TEI is a system for direct participation of people to TEI is a system for direct participation of people to

Organisation's success, by letting them take Organisation's success, by letting them take

responsibilitiesresponsibilities. .

TEI wants people to be responsible for their own TEI wants people to be responsible for their own

motivation and their own improvement: simply by motivation and their own improvement: simply by

letting them know the letting them know the scorescore........


in a nutshell

135

TEI is a system that TEI is a system that

stimulates people to stimulates people to

become become responsibleresponsible agentagent

for their own for their own securitysecurity..


in a nutshell

…….responsible.responsible agentagent for for

their own their own securitysecurity……..

the worm

136

TEI represents a continuous TEI represents a continuous

challengechallenge to people, by letting them to people, by letting them

set the path to their set the path to their fulfilmentfulfilment at at

work, work, enjoyingenjoying the very process......the very process......


in a nutshell

high involvementhigh involvement……..

137

high involvement in manufacturinghigh involvement in manufacturing……..

involvement: special cases involvement: special cases

138

involvement: special cases involvement: special cases

Necessary rolesNecessary roles……. . with simple job descriptions (1 with simple job descriptions (1 –– 2 items)2 items)

Retailing personnelRetailing personnel

Service establishments personnelService establishments personnel

Public officialsPublic officials

BottomBottom--ofof--thethe--ladder personnelladder personnel

The IWT triumph!The IWT triumph!

139

high involvementhigh involvement……..

getting highly involvedgetting highly involved……..

140

the Pygmalion effectthe Pygmalion effect

BELIEVE IN BELIEVE IN

PEOPLE!PEOPLE!

Mc Mc GregorGregor and the Xand the X--Y theoryY theory

LegaLega del del filofilo dd’’orooro

http://www.legadelfilodoro.itNon-profit Organisation – Osimo – Italy

Assisting the blind, deaf and dumb.

Communication: MALOSSI

141

a practical model for TEIa practical model for TEI

142

….shift

from: TGIF

to: TGIM!!to: TGIM!!

TEI and beyond - TEP: TOTAL EMPLOYEE PERFORMANCE

143

…….so you would like your people to be: responsible .so you would like your people to be: responsible –– accountable accountable ––


THE CHOICE IS YOURSTHE CHOICE IS YOURS……

methods

traditional

responsibilities

limited

waste

involvement

high

little/none

Job Satisfaction??Job Satisfaction??

…….so you would like your people to be: responsible .so you would like your people to be: responsible –– accountable accountable ––


THE CHOICE IS YOURSTHE CHOICE IS YOURS……

methods

lean

value added

high

responsibilities

high

involvement

Job Satisfaction!!Job Satisfaction!!

high

144


Lean ManufacturingLean ManufacturingA course presented by Carlo A course presented by Carlo ScodanibbioScodanibbio

Organised by:Organised by:

CREDITSCREDITS

The documentary material of this course is based on papers and wThe documentary material of this course is based on papers and works by:orks by:

and on personal experience and development by Carlo and on personal experience and development by Carlo ScodanibbioScodanibbio

Copyright Copyright ©© Carlo Carlo ScodanibbioScodanibbio 20092009


Lean ManufacturingLean Manufacturing

““““““““a cultural a cultural a cultural a cultural a cultural a cultural a cultural a cultural revolutionrevolutionrevolutionrevolutionrevolutionrevolutionrevolutionrevolution””””””””

145

LEAN MANUFACTURING

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