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Manufacturing 98 Conference

September 9-16, 1998

A Lean Manufacturing Road Map --Getting There From Here


Thursday, September 10, 1998 Management, #412
Larry Zimmer
Manufacturing Engineering, Inc.
Manufacturing 98 Conference September 9-16, 1998 Chicago, Illinois

Manufacturing Engineering, Inc.

Manufacturing 98 Conference
September 9-16, 1998

TODAYS SESSION--DISCUSSION ITEMS


YOUR OBJECTIVES LEAN MANUFACTURING


THE JOURNEY --IMPLEMENTING LEAN

People Empowerment / Continuous Improvement

An Overview Characteristics of a Lean Process Comparison to Traditional Manufacturing Summary An Example--How it Works

Skilled Technical Implementation Risk Reduction

TECHNICAL IMPLEMENTATION REVISITED

BENEFITS OF LEAN

A Roadmap From Here to There --Getting Started

QUESTIONS

Manufacturing Engineering, Inc.

Manufacturing 98 Conference
September 9-16, 1998

QUESTION:
WHAT DO YOU WANT TO ACCOMPLISH?

Manufacturing Engineering, Inc.

Manufacturing 98 Conference
September 9-16, 1998

LEAN MANUFACTURING

A JOURNEY, NOT A DESTINATION!


Manufacturing Engineering, Inc.

Manufacturing 98 Conference
September 9-16, 1998

LEAN MANUFACTURING--AN OVERVIEW


q q q

Waste is eliminated through continuous improvement efforts Focus is on product value stream, eliminating non-value added operations: storage, transportation, inspection The lean manufacturing mindset: -- Concepts, way of thinking not techniques -- Culture not the latest management tool Continuous product flow is achieved through: -- Physical rearrangement (e.g., manufacturing cells) -- System structure & control mechanisms Single-piece flow / small lot production: achieved through -- Equipment set up time reduction -- Attention to machine maintenance -- Orderly, clean work place Pull production / Just-in-time inventory control
Manufacturing Engineering, Inc.

Manufacturing 98 Conference
September 9-16, 1998

LEAN MANUFACTURING CHARACTERISTICS


Processing: -- A part moves to a production operation, -- Is processed immediately, and -- Moves immediately to the next operation q With short order-to-ship cycles times, production is based on orders rather than forecasts q Inventories (RM, WIP, & FG) are minimized
q

Quick changeovers of machines & equipment allow different products to be produced with one-piece flow in small batches Layout is based on product flow Quality of each item is assured during processing
Manufacturing Engineering, Inc.

q q

Manufacturing 98 Conference
September 9-16, 1998

TRADITIONAL MANUFACTURING CHARACTERISTICS


q

Production scheduled based on forecast Build to inventory Large batch sizes Layout based on department / function Central store room or production floor used for product staging

q q q q

Lot sampling used to check product quality


COMPANIES USING THESE APPROACHES HAVE OPPORTUNITIES TO MAKE IMPROVEMENTS
Manufacturing Engineering, Inc.

Manufacturing 98 Conference
September 9-16, 1998

BENEFITS OF LEAN MANUFACTURING


WHAT IF I TOLD YOU IT IS POSSIBLE TO.
q Decrease your manufacturing cycle times

from weeks to days (70% or more)


q Reduce your inventories 50% or more

while increasing your customer service levels


q Increase capacity 50% or more in your current facilities q Maintain or increase your throughput while

-- Reducing your indirect labor by 50% or more -- Reducing your direct labor by 10% or more
Manufacturing Engineering, Inc.

Manufacturing 98 Conference
September 9-16, 1998

BENEFITS OF LEAN MANUFACTURING (CONT.)


WHAT IF I TOLD YOU IT IS POSSIBLE TO.
q Improve your flexibility in reacting to changes in requirements

q Allow more strategic management focus q Increase shipping and billing frequencies, thus

improving cash flow


q Bottom-line: IMPROVE NET INCOME q Do all this with a payback period of SIX MONTHS OR LESS
Manufacturing Engineering, Inc.

Manufacturing 98 Conference
September 9-16, 1998

LEAN MANUFACTURING--AN EXAMPLE


-- 3 PROCESSES: A, B, C -- PROCESSING TIME AT EACH = 3.2 MIN./UNIT BATCH 1000 A 3200 min. B 3200 min. C 3200 min. TOTAL 9600 min. (20 shifts) 10 32 min. 32 min. 32 min. 96 min. (.2 shifts) TOTAL INVENTORY = 3000+ parts vs. 30 SAVINGS = 19.8 SHIFTS

FIRST PART THROUGH SYSTEM = 6403+ minutes vs. 67+


Manufacturing Engineering, Inc.

Manufacturing 98 Conference
September 9-16, 1998

HOW IS THIS DONE?


q

PEOPLE EMPOWERMENT / CONTINUOUS IMPROVEMENT SKILLED TECHNICAL IMPLEMENTATION RISK REDUCTION


Manufacturing Engineering, Inc.

Manufacturing 98 Conference
September 9-16, 1998

LEAN MANUFACTURING PROCESS


WASTE REDUCTION TRADITIONAL MANUFACTURING LEAN MANUFACTURING

CONTINUOUS IMPROVEMENT

PEOPLE EMPOWERMENT

TECHNICAL IMPLEMENTATION
Manufacturing Engineering, Inc.

RISK REDUCTION

Manufacturing 98 Conference
September 9-16, 1998

LEAN MANUFACTURING-A JOURNEY, NOT A DESTINATION

WASTE REDUCTION CONTINUOUS IMPROVEMENT

Manufacturing Engineering, Inc.

Manufacturing 98 Conference
September 9-16, 1998

EMPLOYEE EMPOWERMENT
q Management Philosophy / Priority q Improvement: Everyones Job q Work Station / Cell Improvements q Suggestions / Implementation q Kaizen Improvement Teams
Manufacturing Engineering, Inc.

Manufacturing 98 Conference
September 9-16, 1998

EMPLOYEE EMPOWERMENT (CONT.)


q Andon Control q Goal: Continuous Improvement q Extensive Training

-----

Lean Concepts Kaizen Approach Empowerment Ongoing Reinforcement


Manufacturing Engineering, Inc.

Manufacturing 98 Conference
September 9-16, 1998

SKILLED TECHNICAL IMPLEMENTATION


q Lean Manufacturing Concepts & Principles

q Cellular Manufacturing & Facility Layout q Maintenance Improvement Programs q Machine Changeover Time Reduction q Process Development q Material Handling Solutions q Inspection Systems q Manufacturing Process Simulation
Manufacturing Engineering, Inc.

Manufacturing 98 Conference
September 9-16, 1998

WHY ARE BOTH EMPOWERMENT & SKILLED TECHNICAL IMPLEMENTATION IMPORTANT?


STUDIES* CONCLUDE:
q

Technical implementation of lean yields some improvement Involvement of manufacturing workers (empowerment) yields some improvement In combination, result is a multiplier effect (i.e., improvement is greater than the two individually)

* 1. Dynamic Duo, Industry Week Census of Manufacturers, Dec. 1,1997, p. 42 2. Becoming Lean, Chapter 4, p. 103
Manufacturing Engineering, Inc.

Manufacturing 98 Conference
September 9-16, 1998

RISK REDUCTION
q Time Up Front

--Information Gathering --Identifying Potential Savings q Road Map -- Big Hits First -- Narrow The Scope -- Save Time & Capital q Additional Facility Time: Training / Working With People -- To Assure Results q Computer Simulation -- Predict Performance Before Implementation
Manufacturing Engineering, Inc.

Manufacturing 98 Conference
September 9-16, 1998

RISK REDUCTION (CONT.)


q Phased Implementation

-- For Control & Manageability


q Benchmark Against Others In Industry q Milestone Reviews q If You Use Outside Resources:

-- Fixed Contract Pricing -- Tie Payments To Milestone Completion -- Results Warranty -- Payback In Six Months Or Less
Manufacturing Engineering, Inc.

Manufacturing 98 Conference
September 9-16, 1998

CONTINUOUS IMPROVEMENT
q Training

q Value Engineering / Product Design Analysis q Kaizen Improvement Teams q Poka-Yoke Methods to Assure Zero Defects q Pre-Automation: Equipping Machines to Detect

Abnormalities & Stop Automatically


Manufacturing Engineering, Inc.

Manufacturing 98 Conference
September 9-16, 1998

A ROAD MAP q Information Gathering / Defining: 1). Product Groupings 2). Current Processes 3). Lean Process Team q Employee Training & Empowerment (Ongoing) q Initial Team Design Elements 1). Finalize Definition Of Current Process Flow 2). Process Review (e.g., Matl Handling, Layout, Maintenance, Quality, Technology Improvements) 3). Design Manufacturing Cells / 1-Piece Flow Approach 4). Define Maintenance Requirements / Program 5). Machine Set Up Time Reduction Program
Manufacturing Engineering, Inc.

SKILLED TECHNICAL IMPLEMENTATION REVISITED

Manufacturing 98 Conference
September 9-16, 1998

SKILLED TECHNICAL IMPLEMENTATION REVISITED


A ROAD MAP (CONT.) q In-Process Design Review q Team Refinement Of Design 1). Finalize Initial Design Elements (As Needed) 2). Simulation 3). Work Standardization 4). Error-Proofing 5). Update Of Potential Savings q Design Review q Installation q Start Up / Control Manufacturing Engineering, Inc.

Manufacturing 98 Conference
September 9-16, 1998

SKILLED TECHNICAL IMPLEMENTATION REVISITED


A ROAD MAP (CONT.)
q Continuation Of Team Design Efforts

1). Small Lot Production 2). Just-In-Time Inventory Control / Kanban 3). Pull Production q Design Reviews q Installation (Continuation) q Start Up / Control Of New Elements GOAL = WASTE ELIMINATION THROUGH CONTINUOUS IMPROVEMENT Manufacturing Engineering, Inc.

Manufacturing 98 Conference
September 9-16, 1998

For additional information, please contact:


Name: Larry Zimmer Company: Manufacturing Engineering, Inc. Address: 1145-F Chesapeake Ave. Columbus, Ohio 43212 Phone: 614-487-8985 Fax: 614-487-8799 Email: Zimmer@MfgEng.com Web Site Address: www.MfgEng.com

Manufacturing Engineering, Inc.