LEAN MANAGEMENT PRESENTATIONon

CSSC

Group 1

Abhishek Agarwal Akshay Hiremath

Arushi Bafna Atanu Misra

Chetan Gupta Debolina

Pratik Patil

Brief Overview

About Company

50-year-old spring manufacturing and metal stamping firm in U.S.

Business Motto We make the tough jobs

ISO9000 certified

Family of Products:

Stamped products

Coiled Products

Multi-side Bent Products

Close to 800 customers

Problems Faced

Slow sales growth at 2% to 3%

Intense global competition

Global vendors provide lower cost , similar quality products

Leveraging comparative advantage of low labor cost (assembling products)

Increased competition in aerospace

Customer related issues

Less understanding of their needs

On-time delivery issues

Focus on Improving manufacturing efficiency, respond to customer demands with higher quality, low cost and shorter delivery lead times

Products

Stamping

Hydraulic Press

Forming

Bending

Punching

Cutting

Spring

Coiling

Cutting

Bending

Product Types

Cigarette Lighter Metal Head

Connectors for Electrical

Equipment parts

Coatings

Different Widths, Elasticity, lengths

Metal Sheets Metal Wires

Spring (Automated)

Bending

Metal Rods/WiresInitial ProductKey Points

Demand from same upstream and downstream processes

Quality Check

First Piece after tool change

Periodic drawn

Last piece of lot

Different products meeting in final assembly

6000 items product line

Decentralization done twice with evolved Hub and Spoke Model

Secondary Operations

Grinding

Deburring

Washing

Plating

Heat Treatment

Packaging

Current Plant Operations: Computer Generated Master Schedule

Computer GeneratedMaster Schedule

Provided each process andwork stations withinstructions

Each process separated byWIP inventory

Process Improvement Initiations

SEAL Teams

Lean ManufacturingConsultants

Associations forManufacturing Excellence

TSSC

Lean Manufacturing Consultants

Firstly, SEAL team was trained in the following 3 areas

Reducing WIP for a stamped metal part run on a 200-ton power press

Reducing set-up times for a high performance spring looping and wire forming machine

Reducing WIP in a connector clamp part stamping line

RESULTS

Day 1

Training on how to conduct a kaizen meeting

Introduction to requisite tools

Order of Steps to be followed

Day 2

Each team documented for its process a baseline work setup that included footprint & machinery layout, product and information flows & signals

Operator motion was documented using standard worksheets

Findings were presented and analyzed

Day 3

Brainstorming session generation of new ideas for CI

Day 4 & 5

Teams worked within the context of improvements to make them error proof and to identify and eliminate wasted efforts

Still Challenges were faced on how to implementthe techniques on CSSCs other product areasbecause of different equipment andmanufacturing process

Kaizen Blitzes:Cross-functional team consisting of AME (Association for Manufacturing Excellence)

trainers was set up for brainstorming on Kaizen initiatives

Objectives:

Reduce repackaging

by 90%

Reduce cycle time by 30%

Visually scheduling the jobs to be shipped and display shipping man-hour load

Eliminating tasks equivalent to 2 full-time people

Initiatives:

Revamp physical layout to reduce walking distance by 94%

Consolidated tasks from 22 steps to 16 steps per shipment

Smoothened work flow by introducing support person and visual cues

Short term to do lists: Creation and improvement of visual

controls

Tapping of floors Clearing labels of all shelves to be done

using existing revamping teams

Long term to do lists: Improving measurements Reducing stock levels Simplifying paperwork and

certification process for every

shipment

Association for Manufacturing Excellence: Kaizen Blitzes

Visual Tour of Organization

Reviewed SEAL Team Results

Toyota Supplier Support Center

Conditional Mutual Agreement:

1. No Workers be laid off due to TSSC

productivity improvements

2. Long Term Commitment to TSSC

3. CSSCs success be used to teach competitor

companies about TPS.

SEAL Teams: Solutions through Employee

Action & Leadership

Cross functional teams

19 missions initiated in different divisions

Goals were set and Results analyzed

Results not achieved

Visual Kanban System

Set-Up Time Reduction

Quick Changeover

REASONS FOR SELECTING THE COIL SPRING LINE

TSSC wanted to implement TPS in areas where learning potential

was the greatest.Plethora of

complications in the coil

production area.

Spring line was far-away from Lean.

Practical Reason Moving a 700 lbs. coiling equipment is

easier and faster than moving a 300 ton stamping press.

Spring line had more business than the other

units.

Long and short production runs.

Multiplicity of processes.

A large number of different part orders

Lot of WIP.

Long lead times.

Poor communication within the department

IMPLEMENTATION ON THE COIL SPRING LINE

MAPPING THE PRODUCTION PROCESS AS-IS

Steel wire was coiled into a spring

on a winding machine.

The ends of the coil were shaped as specified by a kick-

press.

The spring is set to its correct length

and stiffness.

The springs are ground.

The springs are heated to impart

strength and hardness to them.

The springs are then washed.

The springs are finally packed as per

the orders.

The packaged springs are then

sent to the distribution centers.

Examining Data Collection of first hand information about quantities of part numbers, machines used to run

parts, machine layouts, order sizes, Total Prod. Volume, delivery frequencies.

Organizing Data Mapping of workflows and grouping parts based on

similar processes

Questioning Data- Reorganizing data vis--vis implementation of changes.

PROCESS ANALYSIS BY TSSC

RESULTS OF ANALYSIS AND ACTIONS TAKEN

Two types of spring orders.

A-type Large quantities, repetitive production, scheduled deliveries.

B-type Lesser volume, uncertain delivery schedules.

Number of commonalities between the two types were found.

Grinding and the subsequent processes increased the process time.

High set-up time of spring coiling machine.

High overall changeover time.

Re-arrangement of medium coil machines based on part groupings.

Grinding, heating, washing were combined in a cell.

Shifting the kick-press machine close to coil-machine to reduce the changeover and no-activity time, and motion.

Placing the required tools close to machines.

Increasing operator awareness, and skills.

Visual Management- Use of instruction cards, marking of defects, photos, sketches.

Synchronization- Simultaneous arrival of set-up card, blueprint, material at the machines.

Focused on implementing a pull system.

FINDINGS ACTIONS

Recommendations 1: Value Stream Mapping

Value-stream maps are the blueprints for lean transformations because it shows you where you could apply lean techniques, such as kaizen events, for maximum effect

Represents every process in the material and information flow of a product or product family, along with key data

By establishing a direction for the companys improvement efforts maps become the blueprints for the lean transformation

Identifying the target kaizen activities for bigger and more sustainable impact

Gaining a better understanding of the linkages between material and information flow

Visualize improvements to the overall production flow, instead of spot improvements to single processes

Create the basis for an effective lean implementation plan by designing how a facilitys door -to-door material and information flow could operate

Give operators, engineers, and managers a common language and process for continuous improvement

It helps to identify the bottleneck process, the various waste element areas in the entire manufacturing process

Helps to identify manufacturing value-add ratio (productivity) and percentage of NVA and ENVA.

Conducting a VSM exercise will help the company in following ways,

Recommendation 2: Implementing Mixed Pull system

Categorization of springs based on customer demand.

A- 60% demand, B-25% demand, C-15% demand.

Designing a replenishment pull system for A-category springs.

Designing a sequential pull system for B and C- category springs to cope demand variations.

Usage of empty containers instead of Kanbans. (Kanbans are considered as inventory).

Further arrangements to convert the entire process into a sequential-pull system.

PRODUCTIONSCHEDULING

CUSTOMER

ORDER

Steel wire was

coiled into a

spring

WINDING

Coils are shaped

as specified

KICK-PRESS

Spring is set to

correct length

and stiffness

TUNING

Spring is

ground, heated

and washed

GRINDING CELL

Springs are

packed as per

orders

PACKAGING SHIPPING

Daily Schedule

FIFO FIFOFIFOFIFOFIFO

Implementing Mixed Pull system

Recommendation 3 : Improving set-up and changeover time

Applying SMED by:

Separating (move elements to external)

Converting (modify elements so they can be external, or remove them completely)

Streamlining (complete elements faster).

Operators knowledge of machines are deepened.

Slide tooling will help operators exchange plates quickly.

Restricting range of parts on the general purpose machines.

Inspection of only the first sample of products. (Machines will recognize errors)

Making the change-over time visual.

Maintaining Setup boxes next to machines for each part number

Using slides tooling and mounting devices to use more than one part and provide some degree of automation.

Adapting changes in the machine itself to permanently assist

Challenge

Recommendation 4: Development of Good Metrics and not just Missions

Under SEAL team, too many goals were assigned

Lack of awareness about company vision and strategic goals

Different groups pursued different agendas and effort is not linked to company strategy

Lack of participation from operators and employees

Feedback was tactical (short-term results) and not strategic

Proposal: Create a Performance Measurement Framework

Reflects the goals and objectives of organization

Helps managers at all levels understand both drivers and results of their activities

Metrics present information and quantified measures Helps to identify what should be done

Helps to identify who should do it

Foster process understanding and individuals and teams at all levels relate to it

Proposed Performance Measurement Framework

Strategic Objectives Value Stream Goal Value Stream Measures Cell Critical Success

factors

Cell Goals Cell Measures

Increased Sales and

market share

Increase customer

satisfaction

Create Continuous improvement

culture

Educate workforce

Timely Delivery

Reduce order fulfillment time

Reduce inventory

(RM / FG)

Improve Quality

Improve Productivity

Increase Output

per unit cost of

production

Optimize use of labour

Employee

advancement

Eliminate poor

financial

management

Delivery-on-time

On-time shipments Dock-to-Dock

time

Manufacturing cycle time

First Time Through Capacity

Utilization

Value added-to-sales ratio

Average cost per unit

Product yield per

employee

Average cross

training per person

Eliminate obstacles

to flow

Use Standard Work

Make products on

time

Effective Visual

Pull

Quick Changeover

on machines

Quality Operator

participation

Labour

productivity

Increase training

Reduce Cycle Time

Set-up time reduction

Eliminate machine

downtime

Introduce Single

Piece Flow

Reduce motion

Consistent Tool

change

Eliminate

Variability

Reduce inspection

time

Reduce overtime Increase Cross-

Training

Implement 5S

WIP-to-SWIP

OEE First Time Through

Walking Distance

Set-up time Machine

Utilization

Cross-Training

Chart and Skill

Chart

5S Audit

Press

Secondary Press

Spring

SC

MC

SC

AL

T

ForSlide

To Customer

Staging

Secondary Operations

Grinding

Deburring

Washing

Plating

Heat Treatment

WIP StoreProcesses

Raw Material

Supplier

Customer

Packaging

At CSSC: Challenge

Instructions from Centralized

Production Control Team

Production on basis of

availability of material

Parts added to WIP/Finished Goods Store

Recommendation 5 : Proposed Information flow:

Customer Co-ordinate Raw Material, Order and Shipment The raw Material supplier be intimated (w.r.t lead time) about

the raw Material that has to be supplied to CSSC Plant

Dedicated Shipping team to draw order from the Market Pull from Shipment according to order Sequence

Order Material

according to

requirements

Pull from Shipment according to Order

sequence

Dedicated Shipping team to draw order from

Market

Standardization:

Formulate parameters for new parts and document them.

Machine Specifications, running speeds and settings be

recorded.

Establish minimum required skill for a specific part and

machine.

Part Delivery details be documented for future orders.

PPC (Production Planning and Control) manuals be prepared.

Kaizan improvements and Cost improvements

Knowledge sharing be done across the employees and teams to

learn best practices.

Recommendation 6 : Standardization & Automation

Automation:

Establish minimum Level 3 Automation through the

plant.

Automatically loading of parts

Operation based on specific count e.g. cutting to a

specific size

Automatically shutting down in case of unmatched

material

Can be used in Material Handling and improving

material flow across the consuming cells and raw

material areas.

Challenges : Cost Recommendation 7Introduce Value Stream Costing because it serves the following purposes,

So, how can this corporation go about implementing VS costing

Report the costs by Value stream and not by departments

Generating Weekly value stream income statements because more frequent income statements give

better understanding, better control, and timely lean improvement activities

(Perfection)

Introduction of control through visual management because it empowers VS teams to make

better and faster improvements

The resources (man, machine, material) in the company should be assigned to the entire value stream and not to an individual

departments

Introduction of a shared service department which will do all

daily allocations and calculations and appointment of a VS

Manager (Value and Accountability)

Standardizing the production process and all the back end

operations

Continuously monitoring the activities across entire VS and

identifying problems, RCA and implementing Solutions

Difficulty in assigning costs for hundreds of product part numbers and complex parts

Difficulty in measuring profitability

Increase in costs due to redundant purchasing and sales and hence difficulty in assigning the costs

Focus on entire value stream and not on a single operationLean focused information

Simplified financial reporting that is common to everyone

Most of the costs involved can be directly allocated to the Value

stream rather than independently assigning it to separate departments

IMPLEMENTING CELLULAR LAYOUT

Steel wire was coiled into a spring on a winding machine.

The ends of the coil were shaped as

specified by a kick-press.

The spring is set to its correct length and

stiffness.

The springs are ground.

The springs are heated to impart strength and

hardness to them.

The springs are then washed.

The springs are finally packed as per the

orders.

The packaged springs are then sent to the distribution centers.

Going a Step Further

AUTOMATING THE UPSTREAM PROCESS

Item and Qty. check

Safety stock check

Obsolete reference

check

Vendor & Price check

Max./Min. lot size check

Rounding val. check

Correct qty. check

Mode check

Without Automation

Automated Inputs to System

Safety Stock check ,Obsolete reference ,Vendor & price check ,Max./Min lot

size check ,Rounding val. Check ,Correct qty. check.

Item & Qty. Check Mode check

Post Automation

No. of steps before automation: 8

No. of steps post automation:

2

i.e. 75%(6/8) improvement in

efficiency over current process,

assuming all process steps

took equal time.

DIVISON-ED/M1, M2 and MC (SOE) AREA-VENDOR MANAGEMENT

Under utilization of highly skilled workforce

Human resources involved in manual work which can be automated

Billable hours invested in non value added activities

Wastage of direct revenue over non value adding activities

Opportunity cost lost in form of revenue which could have been generated in the same time through the same labor

Estimated Revenue Impact

No. of hours for manual work by buyer per day 4

Total Hours worked in a day 9

No. of working days in a month 20

Wasted time (hours) in a month 80

Buyer's monthly salary 45000

Per day salary 2250

Per hour salary 250

Amount of money wasted for a day for the 4 hours 1000

Amount of money wasted for the month 20000

Amount of money wasted in the year 240000

Opportunity cost 240000

Total money wasted 480000

After Automation

Revenue saved 480000

Efficiency increased (in hrs.) = (9-5)/9*100 44.44444

Inefficiencies in manual process

THANK YOU