Lean Manufacturing

Mahesh Ghanekar

Lean Manufacturing
Toyota, Nagoya, Japan : Pioneers in modern Lean Management

ABC of Lean Manufacturing

Customer is not dependent on us, we are dependent on him. He is the purpose of it. He is not an outsider in our business. We are not doing him a favor by serving him, but he is doing us a favor. - Mahatma Gandhi

Fr id ay sd ay y ur sd ay ne da es da y

Th Tu

W ed

M on

Changeover Changeover

M on es Fr id ay ur sd ay ne sd ay da y

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Approach of Ford Buy any car of any color you like as long as it is black.
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Toyotas Dramatic Business Success

Toyotas annual profit at the end of fiscal year in March 2003 was $8.13 billion Larger than the combined earnings of GM, FORD and CHRYSLER. Market capitalization of $105 billion as of 2003 Higher than combined market capitalization of GM, FORD and CHRYSLER. In Aug 2003 Toyota sold more vehicles than Chrysler to become worlds third largest Auto manufacturer. Camry was the top selling passenger car in US and corolla is top selling small car in world. Lexus was introduced in 1989 and outsold BMW, Cadillac and Mercedes-Benz in 2002. Toyota best in its class for high quality, high productivity, flexibility and is top of quality ranking by J.D. Powers and Consumer reports. Invented Lean production which has triggered global transformation.

Toyota Flashback
Sakichi Toyoda, learned Carpentry and applied that skill to design wooden spinning machines. In 1926 stated Toyota Automatic Loom Works (Mistake proof looms) which became popular model. Toyodas son Kiichiro, negotiated patent rights to Platt Brothers and build a capital of 100,000 English Pounds for building the Toyota Motor Corporation, 1st car built in 1936. Visit to US automobile plants and Development of One piece flow, a core principle In 1948 Toyotas debt was eight times higher than its total capital value, they created system that changed the world. At Toyota Motor Company, Taichii Ohno and Shigeo Shingo, began to incorporate Ford production and other techniques into an approach called Toyota Production System

Objective of enterprise

Increase Profit Conventional equation. Selling price = Cost + Profit Redesigned equation. Profit = Selling price Cost

General Cost Cutting initiatives (reactive)

Cut costs on.. Training Travel Telephones Perks Etc.. Does it serve the purpose? Answer is simply NO

These methods dont attack the root cause.

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Cost Matrix
Processing Useful job from customer point of view. (VA) Conveyance Inspection Stagnation Do not add value to customer. (NVAs)

Remove waste Actual movement for reducing cost.

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The Heart Of Toyota Production System (Eliminate Waste)

Concept of 3M
MUDA Waste MURA Inconsistency / Imbalance MURI Strain
MURI MURA

MUDA

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Elimination of MUDA (waste)

What is MUDA ?
Operation = Work + MUDA Work = VA activities (Increases Value of product.)

MUDA = NVA activities (Increases Cost of Product.)

KAIZEN = (Improvement)
Work

MUDA

MUDA
Work

Efforts Density Effectiveness =

Work Work + MUDA

To 100%
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MURA = Unevenness Will add cost of

Variation in Quality. Unbalanced Capacities of Various Machines. People are too busy in one area and too idle in another. Uneven Training & Instructions. Irregularity in Tooling Quality. Using Equipment unreasonably or wastefully.

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MURI = Strain Will add cost of

Trying to use low precision equipment for high precision processing. Running machines beyond its designed capabilities. Strained postures for working. Doing a work manually that ought to be done by machines. Strain due to poor designs. Increased workload due wastages.

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MUDA (Waste)
MUDA of Overproduction MUDA of Stock. (Inventory) MUDA of Conveyance. (Transport) MUDA of Waiting. MUDA of Operation Itself. MUDA of Undesired Movement of worker. MUDA of Production of inferior goods.

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Traditional vs. Lean improvement

Time Transportation Staging Setup Casting Inspection

Machining

Assembly

Staging

Raw materials

Time

Value adding activities Non Value adding activities

Reduce time of Value adding Reduceprocess time of Non Value adding process to improve productivity

Finished Parts

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Toyota Production System

4 P Model TPS House

TPS : 14 Principles
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Principle 1 : Take Management Decisions On Long Term Philosophy, Even At The Expense Of Short Term Financial Goals

Mission statement comparison

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Principle 2 : Right Process Will Produce the Right Results

Create continuous work flow (One piece flow) to bring the problems to surface Faster means better flow Importance of TAKT TIME

Blow up process islands and create work cells that are grouped by product, rather than process.

Make One, Move One

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Principle 3 : Use Pull System To Avoid Overproduction Inventory is necessary to allow for smooth flow of material, but can lead to overproduction and create large banks of inventory Origination of KANBAN Scheduling systems are to be replaced with pull-replenishment systems

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Principle 4 : Level Out the Workload (Heijunka)

Eliminate : Muda, Mura, Muri

Work to the customer demand

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M on es Fr id ay ur sd ay ne sd ay da y

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A Typical manufacturing schedule of work to customer demand

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Principle 5 : Build a Culture of Stopping to Fix Problems, to Get Quality Right the First Time

Philosophy of Stopping or Slowing Down Andon (Signaling System)

Stopping Or Slowing Down High RFT Increased Productivity

Modern Quality Assurance Methods Jidoka (Equipments with Human Intelligence) Counter Measures and Error Proofing Poka Yoke Simple Quality Control with Involvement of Team Members Go & See, Analyze the Situation Ask WHY 5 Times.
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Principle 6 : Standardized Tasks are Foundation for Continuous Improvement & Employee Empowerment

F. W. Taylors Initiation of Standardization Role of Industrial Engineer Three Elements of Toyotas Standardization TAKT Time Sequence of Processes Inventory to be Maintained Involvement at the root level, Empowerment of the workforce Team work for better morale
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Principle 7 : Use Visual Control So No Problems are Hidden

Crisis Management Mentality Hear no problems until the hidden problems jumped up and bit you in the face Clean it Up and Make Visual 5 S - Seiri, Seiton, Seiso, Seiketsu, Shitsuke Simple Visual Indicators to Show Deviations One-paper Reports to online reports

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Principle 8 : Use Only Reliable, Thoroughly Tested Technology that Serves Your People and Processes

Use Technology to Support People and Not to Replace Them Use Human Technology and Systems Instead of New, Unproven Systems Reject or Modify Technologies that Conflict with Organization Culture Test the System Thoroughly, Plan it well and Implement it Quickly

Shoes Cleaning machine

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Principle 9 : Grow Leaders Who Thoroughly Understand the Work, Live Philosophy, and Teach it to others
Growing your leader rather than purchasing them. Constancy Of Purpose Gary Convis: The first American President of Toyota Motor Manufacturing.

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Toyota Leadership Model

Toyota Leaders

Bottom- Up (Development)

Group Facilitator Youre empowered!

Builder of Learning Organizations Here is our purpose and direction I will guide and coach.

Top-Down (Directives)

Bureaucratic Manager Follow The Rules!

Task Manager Here is what to do and how do it!

General Mgt. Expertise

In-Depth Understanding of work

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Principle 10 : Develop Exceptional People and Teams Who Follow Your Companys Philosophy

Developing excellent individual work while promoting effective team work. Increase job satisfaction Developing Teams at Toyota: Not a One- Minute proposition Work Groups are the focal point for solving problems. Motivation theories : Internal motivation
Satisfy lower level needs : Job security, good pay, safe working conditions, etc. Eliminate dissatisfiers and design work to create motivators (5S, ergonomics, HR policies, job rotation, continuous improvement). Motivation theories : External motivation Reward, Scientific Management, Rapid feedback, Goal setting ,etc.
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Principle 11: Respect Your Extended Network of Partners and Suppliers by Challenging Them and Helping Them Improve

Find Solid partners and Grow together to Mutual Benefit in the Long Term Cross Docking Partnering with suppliers while maintaining internal capability Working with suppliers for mutual learning of TPS. Jishuken : Voluntary study groups Operations Mgt. Consulting Division (OMCD) Toyota Supplier Support Center (TSSC) Saving Sick Suppliers Through TPS Supplier ratings from 1 to 5 Supplier Improvement Committee Developing Extended Learning Enterprise Means Enabling Others
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Supply Chain Need Hierarchy

Sa tisf a

Next Level of Improvement

ctio n

Learning Enterprise Enabling Systems Clear Expectations

s gre Re g sin Ne

Ne ed

S ed

Pro gre ss ing

atis

Stability

tion fac

Stable, Reliable Process

Fair and Honorable Business Relations

Identify and develop suppliers which will enable JIT. This will help site selection
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Principle 12: Go and See for Yourself to Thoroughly Understand the Situation (Genchi Genbutsu)
Deeply understanding and reporting what you see Ohno Circle : Watch and Think for yourself Think and speak based on personally verified data.

Data is of course important in manufacturing, but I place the greatest emphasis on facts. - Taiichi Ohno Without data all everyone has is an opinion - Edward Deming

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Principle 13 :Make Decisions Slowly By Consensus, Thoroughly Considering All Options; Implement Rapidly

Thorough Consideration In Decision Making Decision making- A major re-education process How you arrive at a decision is just as important as the quality of the decision. Leave no stone unturned; in fact inspect each stone under a microscope

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Broadly Consider Alternative Solutions With A Set Based Approach, contingency planning

Managers are trained to think in sets of alternative solutions Set Based Concurrent Engineering Design of Prius
Competition of Design of Suspension System Competition of Styling of Prius

Delaying Decisions One of the hardest lessons

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Principle 14 : Becoming a Learning Organization- Hansei & Kaizen

LEARNING- Have capacity to build on your past and move forward incrementally rather than reinventing the wheel with new personnel with each new project View errors as opportunities for learning Innovations with standardization Hansei: Self Reflection and Organizational Learning (Resp) Being honest about your own weaknesses & Focus on the negatives
Directing and Motivating Organizational Learning- Hoshin Kanri You get what you measure A process of Cascading Companys objectives down to root Establishing Target Matrix and evaluating against it. Updating the performance DAILY
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Problem resolution funnel

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Canada Post Corporation: (Lean in Repetitive Service Corporations)

Mail lead time- 26hrs, distance traveled -167 mts. Value added time- 12secs!! Reduction by going lean28% travel time 37% lead time 27% storage

Ship builder: Macro value stream map Genie Industries: From 5 inventory turns to 45 inventory turns

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Borrowing from the Toyota Way

The 13 tips: 1. Start with action in the technical system; follow quickly with cultural change 2. Learn by doing first and training second 3. Start with value stream pilots to demonstrate lean and provide a go see model 4. Use value stream mapping and help learn to see 5. Use Kaizen workshops 6. Organize around value streams 7. Make it Mandatory 8. A crisis may prompt a lean movement, but may not be necessary for turn around. 9. Be opportunistic in identifying opportunities 10. Realign metrics with a value stream perspective 11. Build on your companys roots to develop your own way 12. Hire or develop lean leaders and develop a succession system 13. Use experts for teaching and getting quick results

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Myth

Reality

What TPS is Not

A tangible recipe for success. A management project or program A set of tools for implementation A system for production floor only Implementable in a short or mid term period

What TPS Is
A consistent way of thinking A total management philosophy Focus on total customer satisfaction An environment of teamwork and improvement A never ending search for a better way Quality built in process Organized, disciplined work place Evolutionary

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Summary
Continuous Improvement & Respect for People- Two supporting pillars of TPS Focus on imbibing the value system and culture in the people rather than imposing it. Focus on quality; monetary gains, a derivative of it. Unique and nurtured approach to Lean Management. Emphasis on cultivation of the Talent Pool.

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Current state Future state Future state Current state

Waste Reduction through Value Stream Mapping.

TPS Principle 1 to principle 6 : Value stream mapping

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VALUE STREAM MAPPING

LEAN MANUFACTURING
VALUE Product worth for which the customer pays.

STREAM Flow of material and information from RM to FP. MAPPING Pictorial representation of material and information flow

USE VSM as a tool to drive all types of improvements.

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Value Stream Mapping

Mapping of all actions (VA & NVA) required to bring a product through
- Supplier to customer (Manufacturing) - Concept to Launch (R & E) - Order to Cash (Marketing)

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Basic contents of VSM

Process flow Information flow Lead Time

For charting VSM, effective icons are used.

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Value Stream Mapping.

Helps you visualize more than the single process level. Links the material and information flows. Provides a common language.

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Limitations of Value Stream Mapping.

Fails to handle multiple products that do not have identical
maps. Fails to relate transporting and queuing delays. Lacks conversion into economic measure i.e. value of the product. Fails to consider allocation and utilization of important resource like floor space. Fails to show criss-cross movements and non-sequential flow.

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7 steps to Value Stream Mapping

1. Select a product or product family: 2. Evaluate material/ information flow : Macro and Micro 3. Study layout/ flow for optimization. 4. Process Analysis: Method Time Study of every operation or
process step in detail.

5. Data Collection : Process, Information flow & Inventory (Raw

material, WIP & F.G.)

6. Map current value stream with ICONS. 7. Evaluate Capacity by C/T and Effective C/T

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1a) Select Product family/ processes to improve

1)Identify improvement priorities w.r.t. goal tree 20% processes in your company which brings 80% revenue, resources, cost increase, time increase, etc 20% of the customers mean 80% to you in terms of satisfaction Top 20% project types/ processes having long lead time (order to delivery, concept to launch, delivery to payment receipt. etc) 2) Carry out product and process route analysis. 3) Regroup products and process according to the process flow

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1b) Process route analysis.

A B C D E F G

PRODUCTES

1 X X X

X X

Process Steps & Equipment 2 3 4 5 6 7 X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X

X X

A Product Family
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2) Evaluate material/ information Flow

Forklift No. 1 Distance - 75 feet xxxx Supplier
1 Day

Receipt Unloading

Storage Avg.Inventory= Build rate - xx/day

Batch size -xx

Replenishment - Daily
Total Travel - 885 ft
Build Rate -xxday XX Machining
Forklift No. 3 Distance - 140 feet Forklift No. 2 Distance - 670 feet

Waiting - 1 hrs

Dock (Shop height)

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Swim Lane Process Mapping Purchase Order

User 1

Central Team

User 2 User 3 User 4 User 5

Material Requirement

Material issue request

PR raised

Manager 1 Head Supplier Store Plant

Material Requirement

Material issue request

PR raised

PR Approved

PO Received & Material sent Material request received Material issued Material received & Stored

Machine breakdown

Material used for Machine

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3) Study layout / Information flow for optimization.

Space wastages/ Unnecessary facilities/ machines / workstations/ counters Identify time-space wasters, etc.

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4) Process Study (manufacturing or non-manufacturing)

Actual Utilization of machines. VA/NVA activities during machining cycle. Operator utilization during Cycle Time Bottleneck analysis

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4a) Actual machines utilization

Oper ati onwi se VA-NVA acti vi ti es f or one shi f t
100% 80% 60% 40% 20% 0% 10 20 30 40 50 Op no 60 70 80 90 100

Non Value added tim e Value added tim e

NVA Activities shown includes set-up time, tool change time, which are to be minimized to maximum possible extent. NVA Activities shown includes queue wait times, waiting times, unnecessary information fill-up, etc which are to be minimized to maximum possible extent.
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4b) VA-NVA Activities within the cycle time

VA-NVA Activities
100% 80%

Time %

60% 40% 20% 0% Op #10 Op #20 Op #30 Op #40 Op #50

Non V alue added activities V alue A dded activities

Ope r ation no.

NVA activities : Dwell, Index, Tool change, etc.

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4c) Operator utilization during cycle

15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 10 20 30

Man Time(OL+OF) = Machine Time (MA) =

41.048
58.317

min
On Line

Machine Auto

min
MA OL OF

Time (min)

Offline

Machine Auto

40

50

60

Operations

70

80

90

100 110 120 130 140 150 160 170

Online offline processes

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4d) Bottleneck Analysis

C a p a c ity a s p e r F /F c yc le tim e
180 160 140 120 100 80 60 40 20 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

R e q u ire d c a p a c ity

O p e ra tio n n o .

Effective Cycle = Time

Cycle Time (C/T) (RFT) x (U/T)

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5) Data Collection
Collect as much as data relevant to the complete transformation process.
Process Information Inventory.

Ref :ACME Stamping Case Study data Sheet

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Manual Information Flow

6) Mapping Icons
Electronic Information Flow Kanban Post Signal Kanban

Kanban Arriving in Batches Withdrawal Kanban Schedule Production Kanban

XYZ Corporation Opn. = C/T = .. sec
C/O = .. min

Load Leveling

Information Flow Icons

PUSH Arrow Finished Goods to Customers

Assembly

Process

Outside Sources
MAX 50 PCS

shifts % scrap Uptime

Truck Shipment

../day Inventory

FIF O

Data Box

Withdrawal

First-In-First-Out Sequence Flow

Supermarket

Material Flow Icons

Kanban arriving in batches

Sequence-Pull Ball Buffer or Safety Stock

General Icons
UPTIME CHANGEOVER

Go See Scheduling

Kanban Path

Operator

Kaizen Lightening Burst

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6 week Forecast
Michigan

PPC
MRP

90/60/30 day Forecast Daily Order

Weekly Fax

State Street Assembly

18400 pcs/month

-12,000 L - 6,400 R Tray 20 pcs 2 Shifts

Tues/ Thurs

Weekly Schedule
Daily Ship Schedule

Daily

Current State VSM (dd/mm/yy)

I 5 days
Stamping =1 C/T = 1 sec
C/O = 60 min

I 4600 L 2400 R

Weld I =1 C/T = 38 sec

C/O = 10 min

I 1100 L 600 R

=1 C/T = 45 sec
C/O = 10 min

I 1600 L Weld II 850 R

Assy. I =1 C/T = 61 sec

C/O = 0 min

I 1200 L 600 R

Assy. II =1 C/T = 39 sec

C/O = 0 min

I 2700 L Staging 1400 R

2 shifts 200 Ton U/T 100% Shared m/c

2 shifts RFT 80% U/T 100%

2 shifts RFT 75% U/T 80%

2 shifts RFT 90% U/T 100%

2 shifts RFT 90% U/T 100%

5 days

1 sec

7.6 days

38 sec

1.8 days

45 sec

2.6 days 61 sec

2 days

39 sec

Lead 4.5 days Time : 23.5 days

183sec

Value Added

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6 week Forecast
Michigan Assembly

PPC

Weekly Fax

Information MRP
Weekly Schedule

90/60/30 day Forecast Daily Order

State Street Assembly

18400 pcs/month

Material feed

-12,000 L - 6,400 R Tray 20 pcs 2 Shifts

Tues/ Thurs

Daily Ship Schedule

Daily

Manufacturing
Stamping =1 C/T = 1 sec
C/O = 60 min

I 5 days

I 4600 L 2400 R

Weld I =1 C/T = 38 sec

C/O = 10 min

I 1100 L 600 R

=1 C/T = 45 sec
C/O = 10 min

I 1600 L Weld II 850 R

Assy. I =1 C/T = 61 sec

C/O = 0 min

I 1200 L 600 R

Assy. II =1 C/T = 39 sec

C/O = 0 min

I 2700 L Staging 1400 R

2 shifts 200 Ton U/T 100% Shared m/c

2 shifts RFT 800% U/T 100%

Supply Chain
2 shifts RFT 75% U/T 80% 2 shifts RFT 90% U/T 100%

2 shifts RFT 90% U/T 100%

5 days

1 sec

7.6 days

38 sec

1.8 days

45 sec

2.6 days 61 sec

2 days

39 sec

Lead 4.5 days Time : 23.5 days

183 sec 61 4.5 days

Value Added

5 days

14 days

Supply

Find out Root causes for problems

In Case of ACME Possible Causes.

Information delay. Unnecessary controls. No produce to customer demand. Shared facility. Setup time high on shared facility. No group working (TBWS)

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Value Stream Map Improvement

Points to note : 1) Equal thrust required on all areas of Supply Chain for improvement. 2) Group working doesnt necessarily mean reduction of manpower. Its a by-product of inventory reduction projects. 3) 80-20 analysis for inventory reduction projects for deciding the priority of implementation. 4) Categorization of project into Management Control and Group working 5) Further categorization of projects into Investment Vs Zero investment projects can be done. 6) Emphasis should be on Single Piece Flow from supplier to customer and waste reduction (in any form) 7) Simple Focused kaizen initiatives could increase productivity. 8) Senior management can focus on Value Stream Map with a global perspective where as Frontline Leadership can focus on Process Kaizen for internal processes.
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Inventory Hides Problems

Bad Design Lengthy Setups Inefficient Layout Poor Quality Machine Breakdown Unreliable Supplier

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Evolution of Super-Market concept for manufacturing.

Originated in USA Taichi Ohno observed this system and adapted the principles to manufacturing. Supermarket a) b) c) Just in time availability of all products as per customer demand. Inventory level Controlled within Super Market. Replenishment supported by KANBAN.

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Supermarket & Pull system.

Customer goes to supermarket and withdraws whatever he needs. And whenever he wants. Super Market systematically replenishes whatever is withdrawn
PRODUCTION

Kanban

WITHDRAWAL

Kanban

Supplying Process
New Product Withdrawn Product

Customer Process

Supermarket

Purpose:

- JIT/ Pull System / Inventory control supported by KANBAN This KANBAN pull acts as a way of controlling production at supplying process.

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Concept of Supermarket
Supermarket is a physical place where customer can get What he needs. At the time he needs. In the quantity he needs. ---- JIT Issues to address in management of the supermarket.. Where to keep supermarket? What to keep in the supermarket? What should be the issue system? What should be the re-order points? ---- KANBAN/ Pull System Same concept is applied to manufacturing activity.

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Translating Super-Market concept to Manufacturing

Step # 1 : The later process (Customer Process) goes to the earlier process (Supermarket) Step # 2 : Acquire required items at the required time in required quantities. Step # 3 : The earlier process immediately produces same quantity which is consumed and replenishes the stock level based on min-max quantities. Where to locate Super-Markets in the production process is a key issue.

Concept of supermarket applied to production uses KANBAN system. .

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KANBAN concept
What is KANBAN? A simple visual tool which communicates the needs of
customer.

Carries information What to produce. How much to produce. When required. Where required.

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Kanban Production Control System

A Kanban is a card that indicates a standard quantity of production (Production KANBAN, Withdrawal KANBAN) Kanbans maintain the discipline of pull production - A production kanban authorizes production - A withdrawal kanban authorizes the movement of goods
KANBAN issue Systems Two bin Card KANBAN Signal Kanban

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How KANBAN works

Customer

M
Assembly line Finish Goods Storage. Assembly Line Assembly Parts Storage.

Purchase d parts Storage

M M

Sub-assembly line finish parts storage. Sub-Assembly Line Sub-Assembly Parts Storage.

P M

Manufactured Parts Storages

M P
Manufacturing Shops Raw Material and purchased parts storage.

M
Suppliers
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A Sample Kanban
Part no.: 7412 Description: Slip rings Box capacity From : Machining M-2 Box Type Issue No. 25 A 3/5 To: Assembly A-4

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Future Value Stream Map

(Target Date : dd/mm/yyyy)

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Deriving Future State Map

Step by step approach.
a) b) c) d) e)
Decide TACT Time. Decide location of supermarkets. Decide batch quantity & Kanban Quantity. Define inventory levels in supermarkets. Define start point of Continuous flow Make one Move one. Define the scheduling point.

f) Integrated Maintenance Management g) List out and categorize Improvements Projects for developing value stream
map.

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a) Define TACT : Time Available to Complete Task

TACT = Takt (Japanese word for Rhythm)

TACT synchronizes pace of production
Example : .

59 sec.

Time Available / shift TACT = Customer Demand / Shift

59 sec.

59 sec.

59 sec.

TACT for ACME

Available Time = 510-30-10-10 ( per shift) = 460 min Production rate required per shift = 460 units/shift 460 min TACT = 460 = = 1 min 60 sec
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b) Decide Supermarket location

Determining the Supermarket Locations Check where continuous flow part is disturbed. Check where is the variability in the output or where are the shared facilities. Then based on the present scenario put supermarkets. In Case of ACME After Stamping there is continuous flow. This flow is disturbed at the shipment area since only one shipment / day. Before Stamping also there is no continuous flow. So supermarkets are required at .. i) At material receipt. ii) After Stamping iii) At Shipping

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c) Decide batch quantity.

Determining the Batch Quantity. Check what is unit load transport. Check what is customer requirement of batch. Check what is economic batch quantity for production purposes from setups point of view. In Case of ACME Since customer requirement is in multiples of 20-bracket trays, this is the choice for KANBAN size. Since 10 trays go on one pallet its a batch quantity. Setup problem exists at stamping machine but it is then resolved by putting up a supermarket.

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d) Inventory levels in supermarket.

Determining size for supermarkets
This decision is more of a strategic type & with some logic.

Lets consider case of ACME

Supermarket 1 Before stamping consider 0.5 day safety stock (till we reduce the changeover time) Supermarket 2 After Stamping +1 day rolling = 1.5 days.

Stamping is a shared facility, and setup time high. Also difference in Stamping cycle time and TACT is very high. So lets consider 1.5 day stock after stamping. (till we reduce changeover time.) Supermarket 3 At Shipping area Customer accepts the parts in a batch of 200 and as a requirement 920 brackets/day. For the next day there should be enough quantity so lets consider 1.5 days stock at shipping.
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e1) Single piece flow Stage working I

Stage working : Present

70 60 50 40 30 20 10 0

C/T (sec)

TACT Line = 60 sec

38 1 Stamp Weld I

45

61

39

Weld II

Assy. I

Assy. II

Manpower = Total Time/ TACT

Identify pacemaker process.

= 183 sec/60sec = 3.05 (4 Persons) TACT = 60 sec

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e2) Single piece flow Stage Working II

Stage Work : C oncept of effective C /T
C/ T (sec) Ef f ective C/ T
80 60 40 20 0

TACT Line = 60 sec.

38 48

45

75

61 68

39 44

Stamp

Weld I

Weld II

Assy. I

Assy. II

Effective Cycle = Time

Cycle Time (C/T) (RFT) x (U/T)

Manpower = Total Time/ TACT = 183 sec /60 sec = 3.05 (4 persons)
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e3) Single piece flow Stage Working III

Stage working : Before

Manpower = Total Time/ TACT = 183 sec/60sec

70 60 50 40 30 20 10 0

TACT Line
1 Stam p 38 Weld I 45 61 39 Assy. II

= 3.05 (4 Persons)
Weld II Assy. I

TACT = 60 sec

Aim : Define group working.

Manpower = Total Time/ TACT
Group working : Phase I

TACT Line
60 50 40 30 20 10 0

= 183 sec /60 sec

50 50

1 Stam p

38 Weld I

45 Weld II

= 3.05 (4 persons)

Assy. I

Assy. II

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e4) Single piece flow Stage Working IV

Aim: Productivity Improvement How : Identify Kaizens in that would help in this direction. How much: 1) Total time 183 min (excluding Stamping) 2) Manpower requirement 3.06 3) Plan for Kaizen's to reduce 4 work stations to 3 to be manned by 3 operators. Kaizen Kaizen's Required : Burst 1) Total work <180 sec. 2) Weld change over time reduction. 3) Welder uptime increase.
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Manpower Required = Total Work content TACT

= 170 = 3 persons 60

Group working : Phase I

TACT Line
60 50 40 30 20 10 0

1 Stamp

56 Station1

56 Station2

57 Station3

e5) Group working and Single piece flow. Four welding and assembly process boxes to be combined into one process box. It indicates continuous flow. A small schematic sketch shows cellular manufacturing idea.
Stamping

LH RH
=3 C/T = 57 sec C/O = 0 min 2 shifts 0% scrap Uptime 100%

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f) Integrated Maintenance Management

Why Maintenance Management
Maintenance Types Planned Maintenance Unplanned or breakdown Maintenance TPM
Essentials of Plant Maintenance Spares Management Skilled manpower availability Capable Equipments availability (Short term / long term) MIS for MTTR and MTBF

Factors affecting maintenance management Line Vs Batch production Service level (MTTR and MTBF) Planned Vs unplanned maintenance strategy, TPM Capital expenditure, revenue budgets In-house Vs External maintenance

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Why maintenance management

Productivity Quality Cost Delivery

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Maintenance Types
1. Planned Maintenance Strategies
Proactive approach Scheduled maintenance Online and Offline maintenance concept Costs 1. Unplanned or breakdown Maintenance As breakdown happens, reactive Make Available right people at right time Spares management becomes critical Administration & costs

1. TPM
Active involvement of the associate/ worker working on the particular machine Work as a team with Maintenance Autonomous maintenance by associate

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Essentials of Plant Maintenance

1. Spares Management
History Management On time, Right time, Right quantity, Right Place Optimized Inventory, Spares Life Management, spares disposal MRP for spares management 1. Skilled manpower availability Skilled manpower to be available at right time Multi-skilling is the key Can be hired but at additional cost 1. Capable Equipments availability (Short term / long term) 2. MIS for MTTR and MTBF Evaluate and track MTTR/ MTBF Monitor and Launch improvement projects to improve
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Kano Diagram : Spares Management

Satisfied Feeling

Auto requisition generation based on MRP Access to spare master from any desktop Disposal of spares associated with machine in case of any machine disposal.

Reduction in spares inventory. Reduction in obsolete spares inventory.

l na io ns e (Needisnotmet) im eD n "O

t ali u "Q

y
Physically Fulfilled Condition (Needismet)

Machine wise Spares consumption tracking. Centralized Spares purchasing cell. Decision support for what / when and how much to procure.. Machine wise critical spares list availability. Dissatisfied Feeling Various MIS reports.

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Factors affecting maintenance management

1. Line Vs Batch production
Different resources for line Vs Batch production Different strategies for improvement 1. Service level (MTTR and MTBF)
Zero Breakdown - What is service level expected How critical define before establishing processes Decide internal and external Support Planned maintenance is desirable always TPM improves MTBF Its proactive

1. Planned Vs unplanned maintenance strategy, TPM

1. Capital expenditure, revenue budgets : Need to decide first 2. In-house Vs External maintenance
Outsourcing is the strategy, or need of the hour. May outsource if In-house capability is unavailable, Less capacity problem can be solved by improvements.

Based on Value Stream Map priority complete uptime improvement projects 89

6 week Forecast
Michigan Assembly

PPC
MRP

90/60/30 day Forecast Daily Order

Weekly Fax

State Street Assembly

18400 pcs/month

-12,400 L - 6,400 R Tray 20 pcs 2 Shifts

Tues/ Thurs

Weekly Schedule

Quality improvement Projects

I 4600 L 2400 R I 1100 L 600 R

Group Working Projects

Daily Ship Schedule

Daily
I 1200 L 600 R I 2700 L Staging 1400 R

I 5 days
Stamping =1 C/T = 1 sec
C/O = 60 min

Weld I =1 C/T = 38 sec

C/O = 10 min

=1 C/T = 45 sec
C/O = 10 min

I 1600 L Weld II 850 R

Assy. I =1 C/T = 61 sec

C/O = 0 min

Assy. II =1 C/T = 39 sec

C/O = 0 min

2 shifts 200 Ton U/T 100% Shared m/c

2 shifts RFT 80% U/T 100%

2 shifts RFT 75% U/T 80%

5 days

1 sec

7.6 days

38 sec

SMED

1.8 days

45 sec

2.6 days 62 sec

TPM

2 shifts RFT 90 U/T 100%

2 shifts RFT 90% U/T 100%

2 days

39 sec

Lead 4.5 days Time : 23.5 days

Value Added 184 sec

6 week forecast
Michigan Steel Co.

PPC

90/60/30 day Forecast Daily Order

State Street Assembly
18400 pcs/month

Daily Order Daily Order

-12,400 L - 6,400 R

Daily

20

Load Leveling

Tray 20 pcs 2 Shifts

Coils

Batch tote Stamping LH RH

Weld+Assy
20

20
LH RH
Staging Shipping

Daily

=3 C/T =180 sec C/O = 0 min 2 shifts 0% scrap Uptime 100%

SMED
1.5 days

1.5 day
1 sec

1.5 days

180 sec

Lead Time : 4.5 days Value Added 180 sec 91

ACME Improvement Summary

ACME stamping Lead Time Improvement
(Days) Coils

Before After

Stamped Weld/ Finished Production Total parts Assembly Goods Lead Time Invento Turns 5 7.6 6.5 4.5 23.5 1.5 1.5 0 1.5 4.5

"If you can reduce your lead time by 75%, your productivity will be doubled and your cost per unit will go down by 20%." - Rick He calls this the 75/2/20 Rule. - X Manager in assembly at Toyota Motor, Georgetown, KY.

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f) Implementation of Future State Map.

Step by step improvement of Value Stream Map
1. List out all the projects required for future state map and make 80-20 2. 3. 4.
analysis based on improvements. Categorize for Management control project and Group working projects (TBWS) Evaluate No-investment and investment projects. Implement high gain projects first.

Management Drive is MUST.

Value Stream Map shows the where and how improvement is required to be done. Kaizen to be used as a tool for improvement in Issues like uptime, scrap/rejection rate.

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Advantages of Value Stream Mapping.

1. Relates to supply chain. 2. Links all the resources to customer requirements. 3. Provides blueprint for strategic planning. 4. More useful than quantitative tools 5. Ties together lean concepts and techniques. 6. Uses Basic IE techniques for analysis.

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Misunderstanding about VSM

1. VSM does not equal flow analysis or the process of designing
and creating optimum product flows

2. VSM, or Takt time, or lean flow, is only useful in highly

repetitive, high volume, low variety manufacturing

3. People tend to confuse between Pacemaker process and

bottleneck.

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Once we achieve Future State Map

It becomes our

Next Current State Map

96