Mr. Al Hammonds

Manufacturing and Quality Director

Strategic Partnership for Industrial Resurgence

The Center for Industrial Effectiveness, University at Buffalo

And

Instructor, UB Department of Industrial Engineering

Lean Manufacturing

And

Six Sigma

EAS 590 – February 25, 2004 used again March 2, 2005

Flow Manufacturing Modules/Agenda

Identifying the Value Streams

Improve Flow

Determine Resources to Meet Customer Demand

Process Design for Flow

Identify the Value Streams and Draw Product SynchronizationCalculate Total Product Cycle Time and Identify Critical Path Prepare the Financial Report Card (Optional)

Prepare the Process Flow Chart and Lead Time Reduction GraphEliminate Non-Value Added Time on the Critical Path to Reduce TPc/tStabilize the Processes in Preparation for Flow

Prepare Process Map and Product SynchronizationsGather Data from the Production ProcessCalculate Takt TimeDetermine Required Machine and Labor Resources

Calculate Planned Cycle TimeAssign Work Elements to Machines and OperatorsEstablish Material & Information FlowFinalize and Validate the DesignFormalize & Implement

Plant Wide Flow Plan

Identify Activity RelationshipsAnalyze Material Flow DensityEstablish Block Layout

Flow Manufacturing Manual

• Establish a Team• Define the Problem• Gather and Analyze Data• Redefine Operations and

Procedures • Formalize and Validate Changes• DO IT AGAIN!

Design New or Modify Existing Manufacturing Systems:

Flow Manufacturing Contents• 6 “How-To” Chapters

• Value Stream Identification• Improve Flow • Determining Resources to Meet Customer

Demand• Process Design for Flow• Plant-Wide Flow Plan• Financial Report Card

Flow Manufacturing Contents• 9 Operational Definitions

1. Process Integration & Flexible Work Cells

2. Elimination of Waste

3. Constraint Management

4. Level Scheduling

5. Delphi PDP

6. Simulation for Flow Manufacturing

7. Value Stream

8. Lean Guidelines Equipment & Workstations

9. Synchronous Assist Devices

Value Stream•Definition

•Within Manufacturing, the Value Stream is defined as:

“The set of all specific actions required to bring a specific product through the physical transformation task proceeding from raw materials to a finished product in the hands of the customer.”

Value Stream

• Objectives

1. Understand the Definition and Purpose of Value Streams.

2. Understand Total Product Cycle Time.

3. Understand how to Analyze a Value Stream.

FM-05 Plant Wide Flow Plan

PLATE

SAW

RECEIVE

STORE

PAINT

TURN GRINDMILL

ASSY

WELD

Material Flow in a Process Oriented Layout

Material Flow in a Product Oriented Layout

RECE

IVE

GEN

ERAL

SER

VICE

S

PAINT

WELD

TURN

SAW

SAW

STO

RE

PAINTTURN

MILL ASSY

GRIND

PLATE

ASSY

FM-02 Improving Flow•Purpose

•Reduce TP c/t Using Quality Network Leadtime Reduction:

•Value Added / Non-Value Added

•Process Flow Chart

•Lead Time Reduction Graphic

•Interdependent Element Analysis

Lead Time Reduction Graphic Tool

ORIGINAL

Non-ValueAdded

ValueAdded

Process 2Process 1

Process 3Wash

Process 4

PLANNEDIMPROVEMENTS

Non-ValueAdded

ValueAdded

Process 1/2

Process 3/Wash

Process 4

POTENTIAL WITHCOMBINATION

Non-ValueAdded

ValueAdded

Process 1/2/3/Wash/4

Electronic Version Available (Developed by Global Manufacturing

Systems Group)

Improving Flow - Implementation

• Map out Process with VA / NVA time.

• Ask WHY? WHY? WHY? WHY? WHY?

• Generate Solutions considering all of the interdependent elements.

• IMPLEMENT Improvements.

FM-03 Determine Resources

This phase collects the data needed for flow process design and determines the machine and labor resources required to meet customer demand.

Purpose

FM-03 Determine Resources

• Engage the team in the data gathering process.

• Learn the tools of data gathering.

• Capture work elements as completely as possible.

Objectives

Takt Time

Takt Time = Scheduled Runtime

Total Customer Requirements

Scheduled Run Time:Time scheduled to run per day - breaks, lunches,meetings, planned maintenance

Process Design for Flow - Strategies

• Defining Flow Concepts• Planned Cycle Time• Defining Machine and Manual Operations• Defining Material and Information Flow• Finalize Layout• Formalizing Best Practices

One piece flow is the goal

Buffers only needed where an imbalance between operations exists - use formula

Strategically place buffers

Use standard quantities that fit in the operator envelope

Buffer Size Determination

Validate Process Design / Finalize Layout

• Validate and Optimize Process Design• Verify machine and operator cycle times are

below Planned Cycle time.• Perform computer or manual simulation if

necessary.

• Formalize Layout• Exact location of equipment to scale.• Incorporate material flow.• Apply workplace organization.• Show any buffers or storage points.

Process Design for Flow - Implementation

• Generate Concepts

• Determine Planned Cycle Time

• Define Operations and Draft PFP Chart

• Map Material and Information Flow

• Finalize Layout

• Formalize Best Practices using PFP

FM-06 Financial Report Card• Plant and Product

– End Items / Product Mix– Product Cost Percentages (Mat’l/Labor/Overhead)

• Inventory– Inv $ by RAW, WIP, FGI

• Productivity– Uptime / Overtime / Staffing (Salaried & Hourly)

• Quality– Scrap & Rework Costs / PPM

• Floor Space• Flow Manufacturing

– Total Product Cycle Time – Work Content, Non-value Added, Value Added

Focused on Identifying Potential Savings

Six Sigma / Kaizen / Lean What does it all mean?

Essential Tools for Survival

Presented by:Thom MarraFebruary, 2004

Six Sigma / Kaizen / Lean – Why does any of this matter?

The Old Testament

• Customer Satisfaction

• Quality (for its own sake)

• Cost Reduction

• Market Share

• Market Research

Six Sigma / Kaizen / Lean – Why does any of this matter?

The New Testament

• Customer Loyalty

• Customer Retention

• Zero Defections

• Lifelong Customers

Culture - SWOT

• Strengths (core competencies)

• Weaknesses

• Opportunities

• Threats

• Different Strokes for different folks

People – Power in the People

Typica l O rgan iza tion C hart

C E O

Six Sigma vs. Kaizen

Kaizen

• A problem solving methodology• A systems approach• 7 QC tools• 7 Management tools - Affinity diagram, Tree

diagram, Process decision program chart (PDPC), Matrix diagram, Interrelationship digraph (I.D.), Prioritization matrices, Activity network diagram

• Teams / everyone• Kaizen is a process oriented way of thinking. It

rewards for improvement in the process & trusts (has faith) the results will follow.

Six Sigma

• Six Sigma means something different to every company: a goal, a philosophy, a tool box, customer focus, a management system

• 3.4 defects per million opportunities• Stresses breakthrough improvement, not

incremental improvement• Should be part of a larger business system• Emphasizes a very structured approach –

DMAIC• Bottom-line driven

History of Six Sigma

• The statistical tools created < 1980’s• Zero defect concepts introduced – Crosby (late 70’s

early 80’s)• The PC & statistical software – late 80’s• Methodology created (MAIC) (Motorola, Allied Signal,

GE) – late 80’s early 90’s• Today – a metaphor for Business and Process

Excellence

Six Sigma – Why Do Six Sigma?

• Money

• Customer Satisfaction

• Quality

• Impact on Employees

• Growth

• Competitive Advantage

Six Sigma – Why not Six Sigma?

• The company has a strong, effective performance and process improvement effort in place

• Current changes are already overwhelming

• Potential gains aren’t sufficient to finance the investments

Six Sigma – What to Solve?

• Project cost savings

• Customer satisfaction deliverables

• Processes

• Problems

• Targeted location

• Design

• Supplier processes

Six Sigma – Roles

• Executive

• Champion

• Process owner

• Master Black Belt

• Black Belt

• Green Belt

• White Belt

Data driven

Data driven

““Statistics is the art and science of Statistics is the art and science of

discovering what is at first difficult to discovering what is at first difficult to

see and later becomes obvious.”see and later becomes obvious.”

- Author unknown- Author unknown

Uncertainty

Variability

Statistics

Six Sigma - DMAIC

• Define

• Measure

• Analyze

• Improve

• Control

Six Sigma - DFSS

DFSS – Design for Six Sigma

• QFD – Quality Function Deployment

• Robust Design and Process

• FMEA – Failure Mode and Effects Analysis

• Design for X

• Special design tools