the evolution of lean cars chemicals · dupont company – 42 years r & d – 9 years project...
TRANSCRIPT
Peter L. King
Lean Dynamics, LLC
September 2014
THE EVOLUTION OF LEAN
FROM CARS TO CHEMICALS
TO SUPPLY CHAINS .… AND BEYOND
BS Electrical Engineering – Virginia Tech
DuPont Company – 42 years
R & D – 9 years
Project management – 15 years
Lean manufacturing & supply chain consulting – 18 years
Lean Dynamics – 2007 to present
Consult with companies in process industries
Lean for the Process Industries – Productivity Press, 2009
The Product Wheel Handbook – Productivity Press, 2013
Value Stream Mapping for the Process Industries – Productivity Press, 2015
Several articles in IE Magazine, APICS Magazine, Target (AME)
Frequent presenter of PID webinars
Frequent speaker at IIE, APICS, ASQ, OpEx conferences
PETER L KING
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AGENDA
Lean Origins and System
Lean Migration into Process Industries
Continuing Lean Evolution
Supply Chains
Complete Enterprise
Service Industries
Cultural Requirements
Q & A
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LEAN as we know it was developed by Toyota – beginning
in 1950 and continuing today
It was built on the pioneering work of
Eli Whitney, Honore’ Blanc, Marc Brunel
Frederick Taylor
Henry Ford
THE EVOLUTION OF LEAN
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A SIMPLIFIED VIEW OF THE TPS HOUSE
FLOW SHORT CYCLE
TIME
STANDARDIZATION & STABILITY
QUALITY
TPS
MEETING CUSTOMER NEEDS
WITH THE HIGHEST QUALITY IN THE SHORTEST TIME
HIGHLY ENGAGED AND
EMPOWERED PEOPLE
CONTINUOUS IMPROVEMENT
WASTE ELIMINATION
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THE EVOLUTION OF LEAN
The lean concepts, methods, and tools pioneered by Toyota quickly spread to other discrete parts assembly manufacturers -
Automobiles
Motorcycles
Appliances
Electronics
Etc.
But was slow to move into Process Manufacturing
“We’re different”
“It doesn’t fit”
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PROCESS VS ASSEMBLY
Discrete Parts Manufacturing and Assembly
Automobiles
Cell phones
Computers
Power tools
Appliances
Aircraft
Medical instruments
Consumer electronics
Lawn mowers
Process Operations
Chemical reactions
Physical transformations
Process Products
Automotive and house paints
Foods and beverages
Personal care products
Synthetic fibers
Sheet goods
Films
Glass, ceramics
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PROCESS INDUSTRY CHARACTERISTICS
Differences - Process vs Assembly
Equipment size and mobility
Asset productivity vs labor productivity
Poka Yoke
One piece flow??
……
…………
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CHALLENGES IN PROCESS INDUSTRIES
Example of being blinded by Paradigms:
Cellular Manufacturing
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EXAMPLE OF A TRADITIONAL FUNCTIONAL LAYOUT
R E
C E
I V I N
G
S H
I P P
I N G
PAINT
LATHE DRILL PRESS
ASSEMBLY
WELDING
GRINDING
MILL
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11
TRADITIONAL FUNCTIONAL LAYOUTS
Why Functional Layouts were popular Easy to manage
Easy to equip and staff
Required only one skill
Labor productivity
could be optimized
Problems they caused Flow was sporadic, not well synchronized
Flow was not visual
Very high levels of WIP could accumulate
Quality often suffered
R E
C E
I V I N
G
S H
I P P
I N G
PAINT
LATHE DRILL PRESS
ASSEMBLY
WELDING
GRINDING
MILL
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CELLULAR MANUFACTURING IN ASSEMBLY PLANTS
To remedy these difficulties, Toyota developed
Work Cells
Two step process
1. Arrange all parts into similar groups (“Group Technology”)
2. Arrange the equipment into work cells
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13
CELLULAR MANUFACTURING IN ASSEMBLY PLANTS
Benefits of Cells
Flow can be well synchronized
Flow can be very visible
Lot size can be smaller
one-piece flow is practical
Quality improves
WIP is reduced
Set-ups are generally faster
Labor productivity can be maintained
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CHALLENGES IN PROCESS INDUSTRIES
So.. Cellular Manufacturing is great for parts and assembly,
but will it work in process industry plants?
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15
TYPICAL PROCESS INDUSTRY FOOTPRINT
FUNCTIONAL CONFIGURATION
Step 2 Reactor 2
Step 2 Reactor 1
Step 2 Reactor 3
Step 2 Reactor 4
Step 3 Machine 2
Step 3 Machine 1
Step 3 Machine 3
Step 4 Machine 2
Step 4 Machine 1
Step 4 Machine 3
Step 4 Machine 4
MATERIA
L FLO
W
Step 1 Tank 2
Step 1 Tank 1
Step 1 Tank 3
Step 1 Tank 4
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PAPER MANUFACTURING EQUIPMENT CONFIGURATION
Packaging
Roll Forming Machine 1
Roll Forming Machine 2
Roll Forming Machine 3
Roll Forming Machine 4
Roll Bonder 1
Roll Slitting Machine 1
Roll Bonder 2 Roll Bonder 3 Roll Bonder 4
Roll Slitting Machine 2
Roll Slitting Machine 3
Chopper 1
Chopper 2
Chopper 3
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PAINT MANUFACTURING EQUIPMENT CONFIGURATION M
ATERIA
L FLO
W Resin
Polymerization1
Resin Polymerization
2
Resin Polymerization
3
High Speed Dispersion 1
High Speed Dispersion 2
High Speed Dispersion 3
1 6 5 4 3 2 7 8
9 14 13 12 11 10 15 16 Tint & Shade
1 2 3 4 5 6
Drum Filling Tank Truck Loading
18
TYPICAL PROCESS INDUSTRY FLOW PATTERNS
Step 2 Reactor 2
Step 2 Reactor 1
Step 2 Reactor 3
Step 2 Reactor 4
Step 3 Machine 2
Step 3 Machine 1
Step 3 Machine 3
Step 1 Tank 2
Step 1 Tank 1
Step 1 Tank 3
Step 1 Tank 4
Step 4 Machine 2
Step 4 Machine 1
Step 4 Machine 3
Step 4 Machine 4
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19
PROCESS INDUSTRY CONCERNS
Functional layouts cause
similar problems
in process plants
Flow is not synchronized
Flow is not visible
Quality suffers
Long time from defect to discovery
Variation or tolerances multiply
Root cause failure analysis is difficult
Inventory accumulates almost without limit
Pull replenishment systems are difficult to implement
Equipment performance (OEE or UPtime) deteriorates
Step 2
Reactor 2
Step 2
Reactor 1
Step 2
Reactor 3
Step 2
Reactor 4
Step 3
Machine 2
Step 3
Machine 1
Step 3
Machine 3
Step 4
Machine 2
Step 4
Machine 1
Step 4
Machine 3
Step 4
Machine 4
Step 1
Tank 2
Step 1
Tank 1
Step 1
Tank 3
Step 1
Tank 4
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SO ~ WHY NOT CELLS?
Process Industry barriers to cells
Equipment is massive
Footprint often 200 ft x 50 ft
Weight can be hundreds of tons
Process piping, hydraulic lines
Labor productivity is not the biggest issue
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21
THINK LOGICAL FLOW, NOT GEOGRAPHIC FLOW
Step 2 Reactor 2
Step 2 Reactor 1
Step 2 Reactor 3
Step 2 Reactor 4
Step 3 Machine 1
Step 3 Machine 3
Step 1 Tank 2
Step 1 Tank 1
Step 1 Tank 3
Step 1 Tank 4
Step 4 Machine 2
Step 4 Machine 1
Step 4 Machine 3
Step 4 Machine 4
Step 3 Machine 2
CELL 1 CELL 2 CELL 3 CELL 4
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SYNTHETIC RUBBER PRODUCTION
A synthetic rubber manufacturing plant
End uses: gaskets, seals, industrial hoses, tires
Three major grades: Type F, Type J, Type R
Several SKUs within each grade
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23
SYNTHETIC RUBBER CURRENT STATE VSM
CUSTOMER SERVICE
REPS
ORDER GRANTS
MATERIAL RELEASES
SALES & OPERATIONS
PLANNING DEMAND
MANAGEMENT PROCESS
ORDERS
PRODUCTION SUPERVISOR
CAPACITY FORECAST ( MONTHLY )
MASTER PRODUCTION SCHEDULE ( MONTHLY )
DAILY PRODUCTION SCHEDULE ( WEEKLY )
AGGREGATED DEMAND
( MONTHLY )
CURRENT INVENTORIES
CASTING ROLLS
( 6 )
ROPE CUTTING
( 6 ) 6 6
Invtry
Days
# SKUs
ZZZZ
42
XXXX
Invtry
Days
# SKUs
XX
7
1000
CUSTOMERS , DISTRIBUTORS
Quantity / time
TAKT
ZZZZZ
XXXX
Lead time Exp 7 Days
BAGGING PALLETIZING
( 3 ) 3
Eff Cap ZZ
XX TAKT Eff Cap ZZ
XX TAKT
Eff Cap ZZ
XX TAKT
PRODUCTION SUPERVISOR
Frequency
Lot Size
1 Car / Day
zzz
Transp time zzz
SUPPLIER 1
SUPPLIER 2
WEIGH TANKS ( 3 )
EMULSION STRIPPING
( 3 )
POLYMER KETTLES
( 6 ) 1 3 1
Order Lead Time
# SKUs
zz
z zz
Order Lead Time
# SKUs
zz
z
Invtry
Days
# SKUs
XX
8
200
Invtry
Days
# SKUs
XX
10
50
Invtry
Days
# SKUs
6 . 3 M lbs
z
6
Eff Cap ZZ
XX TAKT
Eff Cap ZZ
XX TAKT Eff Cap ZZ
XX TAKT
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Polymerization Kettle 1
Polymerization Kettle 2
Polymerization Kettle 3
Polymerization Kettle 4
Polymerization Kettle 5
Polymerization Kettle 6
Weigh
Tank 1
Weigh
Tank 2
Weigh
Tank 3
Emulsion
Strip 1
Emulsion
Strip 2
Emulsion
Strip 3
Casting Roll 1 Casting Roll 2 Casting Roll 3
Casting Roll 4 Casting Roll 5 Casting Roll 6
Bagging
line 1
Bagging
line 2
Bagging
line 3
Cutter 1
Cutter 2
Cutter 3
Cutter 4
Cutter 5
Cutter 6
SYNTHETIC RUBBER MANUFACTURING CONFIGURATION
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25
SYNTHETIC RUBBER PRODUCTION ISSUES
Problems and issues:
No coordination between areas
Flow not synchronized
Batches built up between steps
High WIP
Flow patterns had extreme variation (5,000 possible routes!)
Flow not visible, often confusing
Batches sometimes had to be “ditched”
Each grade produced once per month – high FPI
Transitions long and complex
Yield loss on start-up
Polymerization Kettle 1 Polymerization Kettle 2 Polymerization Kettle 3 Polymerization Kettle 4 Polymerization Kettle 5 Polymerization Kettle 6
Weigh
Tank
1
Weigh
Tank
2
Weigh
Tank
3
Emulsion Strip 1 Emulsion Strip 2 Emulsion Strip 3
Casting Roll 1 Casting Roll 2 Casting Roll 3
Casting Roll 4 Casting Roll 5 Casting Roll 6
Bagging line 1 Bagging line 2 Bagging line 3
Cutter 1 Cutter 2 Cutter 3 Cutter 4 Cutter 5 Cutter 6
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SYNTHETIC RUBBER FUTURE STATE ~ VIRTUAL CELLS
Polymerization Kettle 1
Polymerization Kettle 2
Weigh Tank 1
Emuls
Strip 1
Casting Roll 1
Casting Roll 4
Bagging
line 1
Cutter 1 Cutter 2
Type F CELL
Polymerization Kettle 3
Polymerization Kettle 4
Weigh Tank 2
Emuls
Strip 2
Casting Roll 2
Casting Roll 5
Bagging
line 2
Cutter 3 Cutter 4
Type J CELL
Polymerization Kettle 5
Polymerization Kettle 6
Weigh Tank 3
Emuls
Strip 3
Casting Roll 3
Casting Roll 6
Bagging
line 3
Cutter 5 Cutter 6
Type R CELL
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SYNTHETIC RUBBER – BENEFITS OF CELLS
Results:
Transitions much faster
Properties back on aim within minutes
Yield losses dramatically reduced
Asset productivity significantly increased
Management by value stream, not by process function
Quantitatively:
Scrapped material down by 72%
Variability reduced by 50%
Lead time reduced by 28%
Time to reach aim properties: 5 hours 5 minutes
Capacity increased by several million pounds per year
$$
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LEAN EVOLUTION
Toyota – 1950s on
Other Japanese manufacturers – 1960s – 1970s
Manufacturers in North America, Europe – 1980s
Process manufacturers – late 1980s
Global supply chains – 1990s
Pull principles
Global logistics
Procurement
Sales & Ops Planning
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LEAN EVOLUTION
Complete enterprises – 2000s
Legal
Finance
HR
Service industries – 2000s
Banking
Health Care
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LEAN EVOLUTION
Capital Project Execution Systems
Current system dysfunctional
Cost overruns
Late start-ups
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Used Value Stream Mapping to analyze causes
Future State VSMs defined process improvements
Used Cross-Functional Process Maps (swim lane charts) to map details
BARRIERS TO LEAN MIGRATION
1. Lack of vision
Blinded by the technique
Failure to see the underlying principle
2. Lack of appreciation for the cultural requirements
The nature of change
Critical Success Factors for sustainability
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CULTURE IS FUNDAMENTAL!
LEAN has a full set of very effective improvement tools
Tools are great, but it’s really all about the CULTURE
The “hard stuff” is easy
The “soft stuff” is hard!
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IT’S ALL ABOUT THE CULTURE!
WORK STANDARDS
MUTUAL TRUST
> ENGAGE
> ENABLE
> ENLIGHTEN
> ENCOURAGE
> EMPOWER
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IN CONCLUSION ….
WORK STANDARDS
MUTUAL TRUST
> ENGAGE
> ENABLE
> ENLIGHTEN
> ENCOURAGE
> EMPOWER
34
It’s not about the WHAT, It’s about the WHY
It’s not about the METHOD, its about the CONCEPT
Focus more on the PRINCIPLE involved
…………Than on the TECHNIQUE
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TO LEARN MORE …..
Productivity Press
May 2009
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CONTACT INFORMATION
Peter L. King www.LeanDynamics.US
302-528-2700
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