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8/8/2019 Lean Manufacturing Conf Papers
1/13
10/26/20
Lean Implementation andIssuesDr.Raj Mohan, [email protected]
Plant LayoutPlant Layout Key ElementsKey Elements
House
keep
ing
Qua
lityFirs
t
Plan
tLayou
t
Lean People
Product Design
Value StreamMapping
ANDON
Lean Layouts
One Piece Flow
Load Leveling / LineBalancing (Heijunka)
A cornerstone of LMS. VSM was used to understandcurrent flow, identify waste and execute principles toeliminate waste and arrive at the optimum future state.
Plant LayoutPlant Layout Value Stream MappingValue Stream Mapping Plant LayoutsPlant Layouts Andon SystemsAndon Systems
Stopped module
Materials
Maintenance
Production
Quality
Module Running
Andon communication systems make abnormalconditions immediately visible and apparent.Response systems are developed and adhered toin order to assure quick response and resolution
8/8/2019 Lean Manufacturing Conf Papers
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Plant LayoutPlant Layout 1Pc1Pc Flow / Manage by Takt TimeFlow / Manage by Takt Time
0
10
20
30
40
50
60
70
1 2 3 4 5 6 7 8 9 10 11 12 13
OPERATIONS
CYCLETIMEIN
SECOND
0
10
20
30
40
50
60
70
1 2 3 4 5 6 7 8 9 10 11 12
OPERATIONS
CYCLET
IM
EI
NS
ECOND
Decreasing line Takt time to coincide withcustomers Takt time. Reduce waste bybuilding what is needed when it is needed.
Plant LayoutPlant Layout LevelLevel Loading / Line Balancing (HeijunkaLoading / Line Balancing (Heijunka))
Heijunka allows the set up of robust flexibleoperations that optimize labor using strategicbuffering and level loaded schedules to balancethe work load.
Plant 2 FrontLine - AFTER
0.00
10.00
20.00
30.00
40.00
50.00
60.00
1 0 2 0 3 0 4 0 5 0 7 0 8 0 9 0B 1 0 0 1 10 1 30 1 4 0 1 5 0 1 60 1 7 0 1 80 1 90 2 0 0 2 20 2 30 2 40 2 7 0 2 90 3 00 3 1 0 3 50 3 8 0 3 90 4 10 4 2 0 4 30 4 40 4 50 4 6 0 4 80 5 00 5 2 0 5 30 5 4 0 5 60 5 70
Stations
Tim
e[
sec.]
WeightedAverage[Sec.]@ 65JPH
TAKTTIME[TT]= 55.4s(65JPH)
CUSTOMERTAKT TIME[TT] = 57.1s(63JPH)
Material FlowMaterial Flow Key ElementsKey Elements
House
keep
ing
Qua
lityFirs
t
Ma
teria
lFlow
Plan
tLayou
t
Lean People
Product Design
Lean Containers &Packaging
Plan For Every Part(PFEP) / Plan For EveryStation (PFES)
Central Material StoragePull Systems (Kanban)
Exportshippingsupport.comExportshippingsupport.com
Another cornerstone of LMS. Right-sized containers is the keyenabler of Lean Material Flow and effects the entire value stream. Itensures proper workstation design and layouts which optimizesvalue added labor, freight and protects product
Material FlowMaterial Flow LeanLean Containers & PackagingContainers & Packaging
Understand TheTRUE COSTS
Of Incorrect Packaging
8/8/2019 Lean Manufacturing Conf Papers
3/13
10/26/20
Tool and process used to determine flow rates, storage anddelivery systems and line side presentation requirements.Designing stations from operator out to ensure operator success
Material FlowMaterial Flow PlanPlan For Every Part / Station (PFEP / S)For Every Part / Station (PFEP / S)
L W H
1 LatchASM -Floor,O/B,2RS,60%L H,920 L0033097AF,01 BAE 24 Returnable 12 15 10 2400 480 20 2 60 3 4 120 5 24 720 30 48 11 LatchASM -Floor,I/B,2RS,60%LH, 920 L0033099AF,01 BAE 15 Returnable 12 15 10 0 0 2 0 0 4 0 2 24 0 0 48 01 LatchASM -Floor,O/B,2RS,40%RH, 920 L0033100AF,01 BAE 24 Returnable 12 15 10 0 0 2 0 0 4 0 2 24 0 0 48 02 CableASM- LatchSynch,2RS,40%RH L0033114AD,01 Capro 150 Returnable 32 15 8 0 0 2 0 0 4 0 2 24 0 0 18 02 CableASM- LatchSynch,2RS,60%LH L0033115AD,01 Capro 135 Returnable 48 15 8 0 0 2 0 0 4 0 2 24 0 0 18 02 CableASM- Synch40%I/BMaster L0064674AD,01 Capro 145 Returnable 48 15 8 0 0 2 0 0 4 0 2 24 0 0 18 02 60%I/BMASTERSYNCHCABL L0064675AE,01 Capro 135 Returnable 48 15 7.5 0 02 CableASM- FloorLatchReleaseO/B40%/60% L0064677AC01 Capro 290 Returnable 32 15 8 0 0 2 0 0 4 0 2 24 0 0 18 0
2 CableASM- FloorLatchReleaseI/B60% L0064682AC,01 Capro 290 Returnable 32 15 8 0 0 2 0 0 4 0 2 24 0 0 18 0
Part Delivery Inventory control - SupermarketInventoryControl - Line Side
Station
#PDM #
Color
Code
Supplier/Container Usage
ContainerSizeAvg
Wkly
Usage
(830)
Avg
Daily
Usage
(830/5)
Cntnrs
perday
Part Information
Super
Market
(Y/N)
Min.Inv.
Hours
on
hold
Stationside
inventory
SupplierStd
Pack
Std.
Cntnr
Cntnr
Retrn
or
Expnd
Row Part Description
MaxInv.
Hours
on
holdMin Inv.Min
Contnr
Max
Inv.
Max
Contr
Bulk/
Supermarket
Storage
Bulk
Storagefor
Supermarke
t
Stationside
inventory
Max
Inventory
HoursOH
~
Include
Safety
Stock
Max
Inv.
Max
CntnrCntnr
per
pallet
#of
Spots
Controls Inventory. Inventory costs and abnormalconditions are made visible and immediately dealt with.
Material FlowMaterial Flow Central Material StorageCentral Material Storage
Material FlowMaterial Flow Pull Systems (Kanban)Pull Systems (Kanban)
Pull systems are employed to regulate productionflow. Tuggers are used to deliver sequenced parts.This levels production, materials flow, operatorflow and controls inventory
The Carrot ModelWe see and want
the leafy green easy
stuff-
The lean tools andtechniques
But, the part we
really want is
below the surface
and it takes hard
work and effort to
get to it (and youhave to get your
hands dirty!)
Most
organizations
never get deep
enough into the
lean process to
achieve true
success
8/8/2019 Lean Manufacturing Conf Papers
4/13
10/26/20
Direct
ExecutiveSteering
Committee
Provide Strategic Direction
Provide Resource Make Decisions Meet RegularlyGuide Deployment
Plan
HeadquartersLean Support
Team
Provide Tactical Direction
Coordinate Planning Develop Training Material
Coordinate Training
Develop Operating Standards Provide Lean Expertise Support Implementation
Assess Progress
Implement
Plant LeanFacilitators
Develop & Integrate Plans
Execute Plans Conduct Training
Assist Implementation
Lean Resident Resource
Conduct Assessment Process
Established structure to drive implementation and a common approach. Drives accountability by assigning responsibility.
LMS Deployment StructureLMS Deployment Structure
Lean VisionDr. Raj Mohan
Chief Mentor, Man2succeed(International Management Consultants and Training
Providers)[email protected]
Lean Manufacturing!!!!
Eliminating Manufacturing Waste
Produce what you need, only as much asyou need, when you need
TaiichiOhno Toyota Production System
If something is not needed in a particularquantity at a particular time, why produce
it? Usual answer: to meet production targets!
What, how much and when arethe essential elements of demand.
Paradigm Shift2000 to 2010
In 2000
Manufacturing
Based andEvent Driven
NOW
Value chainFocused andProgramDriven
8/8/2019 Lean Manufacturing Conf Papers
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DirectLabour
Othercosts
Lean
Transfor-mation Lea
nMgt
LowGrowth
Spending
SupplyChain
Trans-action
volume
Then Now
Three Levels of CultureThree Levels of Culture
What we see:
Andon, Kanban, Charts,People look engaged,Clean and orderly, andLittle inventory
What they say: CustomerFirst,
Respect for People &Continuous Improvement
.
What is at their Core:All team associates deeply committed to
the company mission of contributing to
society through high-value added
manufacturing.
.
Artifacts
& Behavior
Norms& Values
UnderlyingAssumptions
Customer Service PerformanceCustomer Service Performance New AchievementsNew Achievements
Reduced from 15% to 40%Storage
Order Shipped Complete and On-Time Improvements over 12%
OSCOT
Reduced by 45% to 70%Freight Cost
Reduced between 18% and 30%Finished goods
inventory
Improved over 20%
Materialsprocessing
velocity
New Lean Culture
SustainableLean
Culture
RightEnterpriseBehaviour
CustomerDriven
Response
TalentRecruiting
& Mgt
AppropriateMeasure-
ment
8/8/2019 Lean Manufacturing Conf Papers
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10/26/20
Means and Measures
Business strategy identifies culture design
Employees see how culture drives right
behaviors
Future-state cultural design codifies change
needs (Building premises and standards)
Cash flow builds confidence in the cultural
investment (Lean Culture)
Bonding Cultural change with winning formula
Components + Metrics = Success / ExcellenceSource: Hofstede Cultural Scores for Japan, U.S., and World Average
0
10
20
30
40
50
60
70
80
90
100
Power Distance Individuality Uncertainty
Avoidance
Long Term
Thinking
Japan
U.S.
World
Is it Surprising Lean is Challenging inIs it Surprising Lean is Challenging in India with world leaders ahead?India with world leaders ahead?
Green and Lean Energy Area
15-30% of a manufacturing companys monthly energybill creates greenhouse gases.
The energy management within a facility - benchmarkcompetitors.
Lean methodologies can be used to reduce waste in theconsumption of energy within a manufacturing facility.
The ultimate goal - eliminate equipment not needed in
the process. If elimination is not possible, minimize the use
plot energy consumption to predict maintenance schedulesand replacement cycles. 23
G.A.S. Index: Global AssetSustainability Index
G.A.S. Index = Availability * Performance *Quality * EnergyEfficiency
Availability = All downtime / Scheduled time
Performance = Actual output for scheduledtime / Design output for scheduled time
Quality = Total production minus defects orrework / Total production
Energy Efficiency = Design energyconsumption/Actual energy consumption24
8/8/2019 Lean Manufacturing Conf Papers
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10/26/20
25
Example: Motor Efficiency
90,000 Watts 100 HP 76,000 Watts
1HP = .746 kWatts
15,400 Watts (17.4%)
Motor EfficiencySavings (US)
Energy Savings = 90kW x 8,000 hrs./year x(1-(.828/.94)) = 87,336 kWh/yr.
At an average cost of 11 cents per kWh, theestimated savings would be $9,607 per year.
Motor operating cost:
(100 HP x .746 kW/HP x 8,000 hrs. x $.11/KWh) / .94 efficiency = $69,838 per yr.
26
Spend less andSpend less andgrowgrow
Lean
Mgt
Low GrowthSpending
Supply Chain
Trans-actionvolume
Lean Scope
8/8/2019 Lean Manufacturing Conf Papers
8/13
10/26/20
...that car up ahead
Looking through...
How we usually do it...
How it should be done!
Down onDown onthe shop floor ,the shop floor ,
better demand
input on designs (for
manufacturability)
betters tools for production
flexibility
ease of access to relevant
information
Manufacturing wantsManufacturing wants
just like any other supplier!just like any other supplier!
Challenges &Vision
Capacity promisingCapacity promisingassumptions across theassumptions across thesupply websupply web
Traditional countermeasure:under-capacity planning
Future countermeasure:real options planning
Challenges &Vision
Instability of ECO processInstability of ECO process
Traditional countermeasure:ECO clumping on a fixed schedule (bus)
Future countermeasure:process integration upstream
8/8/2019 Lean Manufacturing Conf Papers
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Challenges &Vision
Instability of transitionInstability of transitionmanagementmanagement
Traditional countermeasure:buffers
Future countermeasure:budget-achieved, life ends
Challenges &Vision
Balancing flexibility (reach)Balancing flexibility (reach)with stability (differentiablewith stability (differentiablerichness)richness)
Traditional countermeasure:year-to-year internal policy and metric mgmt
Future countermeasure:shared policy in the supply web
Challenges &Vision
Shared record accuracyShared record accuracy
Traditional countermeasure:recent history-->few successes!
Future countermeasure:data model simplification andstandards
Lean e-Manufacturing-Choice
Benefits
30% throughput increase with no
corresponding asset increase (yields
greater share)
turns increase of 50-100% coupled
with service increase
30-50% reduction in cost of quality
8/8/2019 Lean Manufacturing Conf Papers
10/13
10/26/20
A long journey that needs commitment,A long journey that needs commitment,
patience, longpatience, long--term thinking, positiveterm thinking, positive
mindset and attitude, and continuousmindset and attitude, and continuous
improvement which are merged togetherimprovement which are merged together
as operational excellence and as a strategicas operational excellence and as a strategic
weapon.weapon.
Lets start the journey and Do our Best!Lets start the journey and Do our Best!
Lean isLean is
Dr.Raj Mohan,Chief Mentor, Man2succeed
Lean Assessment
Nine Key areas ofAssessment
Inventory
The Team Approach
Processes
Maintenance
Layout & Material Handling
Suppliers
Setup Quality
Production Control & Scheduling
Inventory we failin this area
Inventory monitoring by Middle LevelManagers
Inventory turnover
Industry index comparison
8/8/2019 Lean Manufacturing Conf Papers
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Team Approach
Compensation to Operatives ?
Job Security
Attrition
Training
Cross-functional Work teams
Quality Teams IntrinsicMotivation
TrustTrust
Initiative
Ideas
Mastery
Learning
Coaching
Control
Contributors to Self-Efficacy
StandardizedWork System
SuggestionSystem
Respons-ibility
AwarenessMeaningful-
ness
Contributors to Satisfaction Cross-functional
Teams
Processes
No of large-scale processes
Flexibility
Operating capacity
Technology adoption Level
Maintenance
Uptime records
Unplanned Maintenance
Preventive Schedules
Overall equipment effectiveness
8/8/2019 Lean Manufacturing Conf Papers
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10/26/20
Layout andMaterial Handling
Space Utilisation
Free Flow ofmaterial
Free flow of people
Process flowoptimisation
Housekeeping
Can we imagine a situation likethis?
Supplier
Average number of suppliers
Inspection requirements (How much/Howmany pieces)
Delivery frequency
Defect rate
SetupSetup
No missing screws
All screws seated
Worker skill improvementManager worker co-operation inimprovement studies
Specify what to inspect
Clear inspection criteria
Dont overload operator withcomplex content or criteria
8/8/2019 Lean Manufacturing Conf Papers
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Quality
SPC training
Defect rate
Process defectsmonitoring
Production ControlScheduling
Work in process storage
Kanban possibilities
On-time delivery