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1. Introduction The proper flow of materials through manufacturing processes allows industries to generate and maintain a competitive edge. This edge is the ability to meet customer demand for on time delivery, generating good customer satisfaction. The proper selection of material handling systems and manufacturing concepts such as lean manufacturing (Hobbs 2004) help to facilitate increases in productivity. Lean manufacturing is based on the elimination of waste, both value added and non-value added, from the processes that are used to produce goods and services (Feld 2001). These lean tools also contribute to creating a safer and more ergonomic work environment. Material handling is defined, simply, as moving material. This is the popular perception that many hold, but in fact material handling includes much more than simply moving material. For a significant number of manufacturers, material handling can account for more than one-half of the total cost of manufacturing. The flow, movement, and storage of materials in the manufacturing processes of firms often require a great deal of resources, both employees and equipment. Material handling is also regarded as being a non-value added function that is still necessary for the successful completion of the manufacturing process and can have a marked affect on the ability of a firm to meet managerial goals (Myers and Stephens 2000). The cost generated by material handling systems can be reduced if steps can be taken to improve these systems. Productivity and the incidence rate of injuries, specifically lost time injuries, can also be improved by positive changes to material handling systems.
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The problem addressed by this research is to implement lean manufacturing in a material handling system of a petroleum drill bit manufacturing company. Lean manufacturing has been mandated by higher level management as a tool that will be used to assist in waste reduction. Operational group must define the objectives of lean manufacturing and deploy the tools to specific work cells. A best practice of lean manufacturing implementations is to approach the event slowly by implementing in a single pilot cell and then continue to spread to other areas of the organisation (Wilson 2008). Our case study will be limited to the implementation of the developed methodology and lean manufacturing principles in a single cell to support the use of this best practice. A review of lean manufacturing literature related to materials handling is presented in Section 2 of this paper. Based on the methods and tools available, a methodology is developed in Section 3 which can be used to implement lean concepts in materials handling systems. The step by step procedure described in the methodology is then followed by a case study in Section 4. The performance evaluation of the lean implementation is summarised in Section 5. Our concluding remarks are presented in Section 6.
2. Lean manufacturing in materials handling Lean manufacturing is a tool that many companies focus on for continuous improvement of processes. Long term strategies as well as short term goals of these firms involve implementation of lean manufacturing to eliminate waste and boost performance. However, many of these companies only undertake the initial strategic move of defining lean manufacturing as a philosophy and never provide functional roadmaps to daily operational teams for the implementation of lean manufacturing. Biddle (2006) indicates that the time and resources to sustain lean manufacturing are often not provided by top management to operational teams. One of the key areas where a sustained lean manufacturing implementation can have great affects on the performance of a company is material handling. Flinchbaugh (2005) points out that lean manufacturing applied to material handling should encompass all available lean manufacturing tools, consist of a complete view of the technique, and not be an extension or single facet of a lean manufacturing implementation. Management should look at the problem completely and consider all key concepts and techniques, regardless of the focus of the lean manufacturing implementation (Cutcher-Gershenfeld 2002). Five key steps for implementing lean manufacturing to material handling systems are defined by Harris and Harris (2006). These steps include: (1) (2) (3) (4) (5) Develop a plan for every part. Build the purchased parts market. Design delivery routes. Implement pull signals. Continuously improve the system.
While these steps are valid for many material handling systems, they do not provide a method for determining specific goals for a lean manufacturing implementation into the material-handling system. Schieber (1999) approaches the problem of determining a more effective way of handling stock packaging materials in a food industry firm. The method used to conduct the study was focused on employee involvement and reducing the occurrence of back
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injuries by manually handling the stock material. Cochran et al. (2000) states that system design methods must be tied into the objectives of the system, and piece-wise implementations are ineffective if the overall objectives are not understood. This point relates directly back to the need of developing a method to define the specific objectives of a lean manufacturing implementation. Review of lean literature indicates that no specific methodology for determining objectives of lean manufacturing in regards to material handling is available. The significance of developing such a methodology can help operational teams to determine what exactly they wish to accomplish when implementing any given cell: . . . . What does the solution need to provide? What waste is to be reduced? How will the process be affected? What metrics should be used to evaluate the results?
3. Methodology The methodology used to determine objectives of lean manufacturing in a material handling system of a machine cell involves several steps. These steps begin with management input to determine the goals of the business unit and the operational group. A lean manufacturing assessment must be conducted to determine the potential locations of waste reduction. Development of a lean manufacturing strategy will help determine how lean manufacturing assists in the overall implementation strategy and how the potential solutions can be prioritised for selection and implementation. The definition of objectives for lean manufacturing are determined as a result of the prioritisation and comparisons of possible solutions and the overall strategy. The implementation of lean manufacturing tools and solutions development assists in determining how the implementation of the tools and solutions will fit into the process and how several concepts can be followed as guidelines to help ensure the success of the implementation. Finally, the solution is implemented and monitored through selected metrics to gauge continuous improvement and reinforce objectives and goals of both the work cell and business unit.
3.1 Management input Management input includes the objectives of the organisation as defined by higher management as well as the business objectives of the operational groups and teams. The primary goal of the operational group is to define the specific tasks, processes, and resources that will be used in the production unit to meet the business goals defined by higher management (Stevenson 2002). The key focus, regardless of what tool is implemented, is meeting the goals of the operational group so that the higher level goals of the organisation can be reached and customer needs met. The input of management is very important. This input lays the basis for deployment of the methodology and affects the development of any possible solutions. Many facets of the organisation beyond high level production management affect the overall performance and objectives of the operational groups. Even though these operational groups or plants report through the higher level production management group, they also take some
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direction and input from other functional groups such as human resources, finance and accounting, technology and research and health, safety and environmental groups.
3.2 Lean assessment Once the business unit goals of the operational group have been defined, a lean manufacturing assessment must be undertaken to determine where areas of opportunity exist for improvement. With material handling being the focus of this research, the lean manufacturing assessment should focus on the way that materials flow through the processes of the organisation and how this material flow affects what is expected of the operational group. The assessment must be done while keeping in mind that the focus of any lean manufacturing implementation is the removal of waste from the system. The lean manufacturing assessment can be carried out in a variety of ways. The two most effective ways of assessing are (1) value stream mapping, looking at the current process flow and what is desired in the future flow, and (2) analyse the facility layout, including logistics used to move products in relationship to where the products originate and their destination. A typical value stream map would look at all steps of the process as the product moves from one operation to the next, including all the time that the product would spend in queue, in transport, being worked on, and waiting for set-ups and administrative work to be completed. When addressing material handling, value stream mapping and analysis of facility layout must take into account every movement of the product regardless of the distance or time that it takes to perform the movement.
3.3 Development of lean strategy The development of a lean manufacturing implementation strategy that is in line with operational group objectives is very important. The development of this strategy will show how lean manufacturing tools are tied into business unit objectives and thus lead to the definition of operational group objectives. The first step in the development of the strategy is to decide the location of the initial implementation within the value stream. The area that this decision will point to will be based on the results of the value stream, the area that has exhibited the most waste, and management needs, specifically what areas can or cannot be addressed based on capital requirements or operational importance. Once the area, or cell, of the initial implementation is identified every occurrence of material handling in the cell must be reviewed and compared against the objectives of the operational group. The business objectives of the operational group can consist of such things as specific productivity or through-put numbers, engineering and safety goals, raw materials and consumables projections, direct hours, and overtime hours worked versus those planned. Management must prioritise them and compare them against any possible solution that is presented to eliminate waste in material handling from the chosen cell.
3.4 Definition of objectives of lean manufacturing Once the solutions and their affects on the goals have been prioritised, the decision to move forward with an implementation can be made. The selected solution will have a set of steps or processes that must be carried out for successful implementation.
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The process steps of the solution, their completion, and the series of metrics selected to measure them are the objectives of lean manufacturing in regards to material handling systems of the selected cell. These objectives of lean manufacturing are based on the operational group and what they must accomplish to meet the greater goals.
3.5 Implementation of lean tools and solution development The selected solution should be developed using all available lean manufacturing tools. Both the equipment used as well as the process involved in material handling should be examined to determine the best steps when applying these tools to the area that has been selected to eliminate waste. It is most beneficial when a holistic approach is used. Feld (2001) stresses that there are five primary elements of lean manufacturing and that these elements cover the full range of issues that surface during an implementation. These elements and the tools associated with them give the basis of the tools and measurement techniques that can lead to a successful solution and implementation. Some examples of tools that can be applied to the solution or used to implement that solution are cell layout, operational rules, total productive maintenance and 5S. Each of these tools approaches the lean manufacturing solution and implementation from either the process standpoint, such as cell layout and operational rules, or from the equipment layout, such as total productive maintenance and 5S. When combined with effective metrics for material handling, such as travel distance, space utilisation or productivity, optimal benefits can be gained in the elimination of waste.
3.6 Solution implementation and monitoring The implementation of the specific solution must be performed by the individuals who are responsible for operations in the pilot cell. If these employees do not have responsibility for making the improvement, then they will feel that they cannot be held accountable for its success and therefore will have no vested interest in making it work. The team chartered with the implementation must keep this in mind and to maximise return when assigning members of the pilot cell who will assist with the implementation. To monitor the implementation, metrics should be selected carefully. Each metric selected should not only correspond to the defined goals and objectives but also to the lean manufacturing tools and solution component used to meet these goals and objectives. The importance of monitoring the implementation and recording metrics plays into one of the most important factors of lean manufacturing, continuous improvement. All metrics should be recorded and charted to show how the solution is progressing. These charted solutions need to be made available to all employees, especially to those of the work cell where the implementation is taking place. The best way to show these metrics to all employees is to post them in the location of the cell. By posting the metrics in the work cell, several things can be accomplished. The first is that the employees in the cell can have constant visibility of how the implementation and solution are affecting their performance and reaching the objectives of the cell. The second is that confidence is built in the philosophy of lean manufacturing. The third is that all members of the organisation can see how and when additional efforts may be needed to continuously improve the effort to reduce waste in the system.
The case study was performed at a manufacturing facility of the industry leader for petroleum field diamond drill bits for oilfield services industry. The facility is approximately 15,000 square feet and accommodates roughly 100 direct employees, support staff, and management. The facility is divided into a series of heat process and machine tool cells that allows for the production of a variety of product lines. The industry focus and use of material handling systems is a result of the need to move parts and components of parts through a variety of manufacturing processes. Material handling systems in the industry must be able to blend into this mix of machine tools and heat process cells, giving operators the ability to bring products to market. In this case study, top management has prescribed that lean manufacturing needs to be phased in to complement total quality management in defining the culture of the company. The purpose of the case study was to develop a solution for a material handling problem by following the steps outlined in the methodology section for lean implementation in regards to a selected work cell.
4.1 Management input To begin the study, information was collected from the operational group on specific business goals of the facility. Discussion was also held on how important material handling is to the facility and the need to make improvements wherever opportunities exist. Management did, however, discuss the need for any immediate changes to have minimal negative affects to production due to the current business environment. To align with best practices of implementing lean in a pilot cell and with a project that could result in an easy-win, it was determined that the material handling needs of a single cell would be initially addressed. It was also determined that the pilot cell would be chosen by the following factors: the results of the lean manufacturing assessment, business needs, and management discretion. Table 1 displays the information collected from the management on business unit goals. This table also displays the specific goals of the operational group. These goals will be instrumental in defining the objectives of lean manufacturing in regard to material handling during the deployment of the methodology.
Table 1. Business unit and operational group goals. Operational group goal (research focus) Improve productivity by 10% Improve cycle time by 5% to ensure OTD rate maintained Implement one lean manufacturing project Increase capacity by 25% Reduce recordable incident rate by 25% Reduce hand injury rate by 30% Mitigate material handling risks
Focus Operations
Business unit goal Improve overall productivity by 10% Maintain on-time-delivery rate Begin lean manufacturing implementation Increase overall capacity by 20% Reduce recordable incident rate Identify and mitigate hand safety risks Address material handling risks
Growth Safety
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Figure 1 shows the general layout of the crown machine cell and a lean assessment was arranged for the cell. The lean manufacturing assessment included the first stage of value stream mapping, creation of a current state map, as well as assessing the opportunities that exist in the current state map. The current state map outlines the steps of the crown machining process before any opportunities are addressed and aids in identifying waste in the process. The current state map is displayed in Figure 2. It is important to keep in mind that this current state map is based on material handling in the cell and not the actual operations of the cell, machining and assembly of drill bit components. For this reason a modified value stream map was used in place of a conventional value stream map. Value stream maps can be represented in several ways depending upon the scope of the project. Tapping et al. (2002) indicate that the value stream map can define activities and measure times from receiving to finishing of parts; it can define activities that take place from time of order until cash is received; it can define activities and measure time from conceiving product to its launch; or it can be geared toward the specific scope of the project. The basis of the value stream map developed is determined based on the ability to coordinate lean manufacturing tools to the specific details and scope of the lean manufacturing projects undertaken. When the value stream map data is tabulated, it helps to show where changes to the material handling operations may have an impact on waste reduction. Based on the information collected in Table 2, process stream A has the greatest opportunity for improvement. The potential areas for improvement or waste locations in Process Stream A can be summarised as below: (1) The reduction of time to transport and place shank components in the inventory area. (2) The reduction of handling shanks from inventory area to the crown machine cell. (3) The reduction of staging time in the crown machine cell. (4) The reduction of handling time to move the component into the machine to attach to the crown.
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Figure 2. Material handling value stream map CM cell (CM, crown machine).
With these potential waste locations identified, the next step is to develop a lean manufacturing strategy based on business unit objectives to remove waste. 4.3 Development of lean strategy With the decision made to begin the implementation in the crown machine cell and with the areas of opportunity identified, the methodology leads to developing the lean manufacturing strategy. The lean manufacturing strategy was developed by reviewing business unit goals and comparing the potential opportunities to these goals. From the list of goals for the research location listed in Table 1, the following truncated goals were selected for the comparison: (1) Improvements to productivity. (2) Improvements to cycle times.
Process stream Handling time 120 minutes 30 min/week (15 min 2 deliveries per week) 60 minutes 180 min/week (90 2 times per week) 1 day 490 min/week (7 min 70 parts) 25 minutes 350 min/week (5 min 70 parts) 180 minutes 420 min/week (6 min 70 parts) 25 minutes 280 min/week (4 min 70 parts) Yes Yes Yes Yes Yes Queue time Yes
Process step
Opportunity
Comments
Shank storage
Part moved into machine for assembly to bit crown Bit crown furnace operation
Process controlled
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Table 3. Solution comparison.
Business goals Solution 1. Move location of shank inventory Waste location Affected 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Y Y Y N Y Y Y N Y Y Y Y N N N Y Y Y Y Y A Y Y Y N Y Y Y N Y Y Y Y N N N N Y Y Y Y B N Y Y N Y Y Y N Y Y Y N N N N Y Y Y Y Y C N Y Y N Y Y Y N Y Y Y Y N N N Y Y Y Y Y D N Y N N Y Y Y N Y Y Y Y N N N Y Y Y Y Y Total impact factor 1 4 3 0 8 4 4 4 0 12 4 4 4 3 15 0 0 0 3 3 4 4 4 4 16
2.
3.
Change the way shanks are delivered and handled in the crown machine cell
4.
Incorporate new lifting and handling devices to attach shank to the crown
5.
Change the way that shanks are staged in the crown machine cell
Waste locations: (1) the reduction of time to transport and place shank components in the inventory area. (2) The reduction of handling shanks from the inventory area to the crown machine cell. (3) Reduction of staging time in the crown machine cell. (4) Reduction of handling time to move the component into the machine to attach to the crown. Business goals: (A) improve productivity; (B) improve cycle time; (C) reduce recordable incident rate; (D) reduce hand injuries.
(3) Reduction in recordable incident rate. (4) Reduction in hand injuries. The goals of increasing capacity and mitigating a material handling risk were not used for the comparison. The main reason for this is that because by the nature of this research the result of any solution will be the implementation of a lean manufacturing project that will identify and mitigate material handling risks. A second reason is that addition of resources, such as machines and personnel, is not within the scope of this research. Therefore, any gains made from a solution will be potential productivity increases, through-put increases and safety improvements. The research will not focus on gains that result from adding resources that will have a direct affect on increasing capacity. The waste locations used in the comparison were those defined through the value stream analysis. These areas of potential opportunity are included in Table 3, which displays the comparison. Several generalised solutions for the areas of opportunity
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were generated. Each solution was compared for its possible affect on the areas of opportunity and on the goals of the research location. The results reported in Table 3 display the areas of opportunity that can be addressed that will have the greatest impact on meeting managerial goals. These results show the best potential solution for meeting the requirements of management and also give the general idea behind any future development of specific solutions. In examining the potential solution ideas, it is evident that only three unique solutions have been presented. Solutions 2, 3, and 5 can be combined into the more general potential solution of Improving shank handling within the crown machine cell. Table 3 also shows that these three solutions individually have a greater total impact factor than either of the other unique potential solutions.
4.4 Definition of objectives of lean manufacturing Several general solutions were developed that have the potential of addressing the identified waste locations and meet business goals. Based on the potential solutions listed in Table 3 and the description of the potential solutions, the following prioritisation was made: (1) Improving shank handling and staging within the crown machine cell. (2) Move location of shank inventory. (3) Incorporate new lifting and handling devices to attach the shank to the crown. The prioritisation list provides the priority that lean manufacturing project solutions should be implemented in the cell. The prioritisation list along with the information gathered from the comparison, waste locations, and company goals can be used to clearly define what the objectives of lean manufacturing are in application to material handling in the crown machine cell. The top three objectives of lean manufacturing in regards to material handling for the crown machine cell are: (1) Develop and implement a solution for improved shank handling and staging in the crown machine cell. (2) Reduce the potential for recordable injuries, specifically hand injuries, through implementing the developed solution for improved storage of shank components in the crown machine cell by reducing manual handling of the shanks and improving the ease in which shanks can be identified and retrieved. (3) Increase the productivity and through-put of cell operators through implementing a staging device and procedure that will create a Kanban system for operators so parts can be pulled through the cell. These priorities call for the development of an improved staging system and procedure to use in eliminating waste from the material handling system of the crown machine cell. Several lean manufacturing tools were used to assist in the development of a storage device that could place the components for ease of use and conform to reducing the space demands that the previous method of staging shanks in the cell required. The primary lean manufacturing tools that were used to develop the staging device and the specifications for placement and use in the crown machine were centred on the five primary elements of lean
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Table 4. Lean manufacturing tools used to develop solution. Primary element Tool Usage
Provide a comparison between the current state and the future state once the solution is implemented. This tool will assist in gathering metrics for plotting process improvement. Metrics Space utilisation Optimise available space and show improvement by comparing current space with space needed and used for new system. Travel distance Offer a metric to use for determining if the exposure to handling parts has reduced for the goals of minimising recordable hand injuries and improving productivity. Process control Visual control Compare visual signals to determine if the new system utilises visual cues that signal the need for re-supply of parts that improve upon current methods. 5S housekeeping Implement 5S to reduce clutter in the cell and improve cell cleanliness reducing hazards that can lead to injury. Organisation Training Cell operators must be trained to properly utilise the new system with the specifications outlined by the lean implementation Communication plan Clear communications must exist between management, cell operators and inventory personnel. This will allow for the clear flow of information for the purpose of reporting results, issues and needs. Roles and responsibilities All personnel involved must know exactly what their duties and functions are and how they should be carried out. Logistics Kanban pull system A pull system can be utilised for the purpose of moving inventory through the cell instead of having parts pushed in before they are prepared for processing Operational rules Clear rules on the operations of the cell must be put in place. This will ensure that operators, regardless of shift, know exactly what it is they are expected to do and conversely inventory personnel and management know exactly how they must support.
manufacturing defined by Feld (2001). Table 4 displays the five elements and the tools selected for use from each element. They can be used as a baseline for development of a handling and staging system that can mitigate material handling issues in the crown machine cell.
4.5 Implementation of lean tools and solution development The first project selected to implement was to develop a device that would restructure the way that shanks were stocked when needed at point of use. The project called for the development and fabrication of a device that could store shanks vertically, holding a maximum number of parts safely. A vertical storage arrangement would allow for optimised space utilisation. The device would also allow the operator to retrieve parts
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based on size while keeping to the lean manufacturing concept of point of use, having everything needed within 30 seconds or 10 steps. The solution also needed to accommodate safety requirements as well as reinventing the method used for handling and staging shank components in the crown machine cell. To complement the implementation of the new staging device, a parts flow plan was created to ensure smooth flow of materials from inventory and receiving to the staging location. Figure 3 displays a conceptual drawing of the device. The device was designed to support the storage of 46 shanks. Each level of storage was designed for various sized shanks. The top level was designed to support shank sizes 1 to 4 inches (38 mm to 115 mm), the middle levels were designed for shank sizes 4 to 7 f inches (115 mm to 200 mm) (the most common sizes), and the bottom level was designed for sizes 7 f to 9 inches (200 mm to 228 mm). Placing the shanks in this manner ensures that the operator will not have to manipulate the larger parts from high positions. This creates a more ergonomic location where only small parts, 30 lb (13.5 kg) or less, are handled from the higher storage positions and the larger heavier shanks are stored lower allowing for crane rigging or lifting using the legs.
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The base was designed at 30 inches (762 mm) square with the top level 52 inches (1320 mm) above the base and each level approximately 10 inches (254 mm) below the preceding. Storage arms were approximately 11 inches (279 mm) long spaced 36 degrees apart and at a 30 degree angle from the base. Each level was designed for 360 degree rotation. Rotation of each level gives the operator the ability to handle shanks that are staged at any location on the device from one location in as near a proximity to the machining controls as possible considering safety and space constraints. The main thought in the development of the device was the use of the lean manufacturing tools selected from Table 4. The device was designed vertically to maximise space utilisation and enable it to be placed as closely as possible to the operators control unit on the NC lathe used in the cell. Each row was configured to hold a specific number of parts, with the entire device holding enough parts to supply the cell for approximately 3 to 4 days. This would allow for restocking, on average, twice a week, unless customer demand of specific completed bits forced parts lower in the order queue to be elevated. This visual cue system that provides specific locations for parts to be stored and pulled as needed creates a Kanban pull system. Tiered rows and storing parts by size also provides a visual signal that the operator can use to determine when the restock needs to occur or if certain sizes that will be needed have been stocked when required. The implementation of the project provided the opportunity for the cell to also undergo a rearrangement that could be performed based on lean manufacturings 5S theory. Altering the shank staging method to prevent the parts from being stored on flat surfaces and on the floor removed a potentially hazardous situation, which coincides with a portion of this theory. The opportunity to clean and sort through other cell tools and work spaces fell naturally in line with the implementation supporting the 5S concept and lean manufacturing project implementation. A plan was put in place to train operators once the device was implemented. All operators, inventory personnel, and management must be fully aware of best practices when using the device and when manipulating to load or unload the device. To reinforce the implementation and training, all employees involved must have clear communications to keep materials flow moving as required. All employees must have clear knowledge of what their respective roles and responsibilities are based on operational rules of the cell. To support the creation, a materials flow plan was put in place during the implementation. The purpose of the materials flow plan was to minimise the amount of movement out of the cell that operators had to make to retrieve shanks stored in inventory or not yet moved to inventory from shipping and receiving. Inventory personnel would be responsible for placing shanks on the device in the cell, placing any excess parts in the inventory area to use at the next restocking. It would then be the cell operators responsibility to inform inventory personnel of any rapid reduction in stock levels so an accelerated restock could occur. Cell operators also had the responsibility of informing management of such events so adjustments could be made to supply levels from vendors or scheduling to maintain process output.
4.6 Solution implementation and monitoring All necessary engineering and production drafting was performed for the device and submitted for quote proposal. Once proposals were returned the best overall solution,
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a mix of delivery and cost, was chosen and the device was ordered. While waiting for the device to arrive, all necessary arrangements were made in the cell for installation. Cell operators were consulted and brought in for a training session in just-in-time with Kanban pull system and 5S. Cell operators, inventory personnel, and management were brought together and given explanations and training on how the implementation would take place and their specific roles and responsibilities. After the initial training cell operators were coached on how to perform the 5S on the cell with the knowledge that any necessary support from management would be provided. Once the device arrived, the 5S exercise had been completed and the installation could occur. The device was put into place and anchored, stocked with initial parts from inventory, and placed into service. A brief break-in period was allowed for operators, inventory personnel, and management to become accustomed to the new method of shank handling and staging in the crown machine cell. Once this break-in period was over, monitoring of key metrics began and a new value stream map created for material handling in the cell. The new device was placed in a more strategic location to work in accordance with the 5S exercise performed by the cell operators. The new cell layout is displayed in Figure 4. The device prevented parts from being stored on the floor and on flat work spaces such as tables and carts which occupied an enormous amount of space in the cell. The device put one half weeks worth of shanks in a space 36 inches 36 inches (912 mm 912 mm) compared with the 30 inches 48 inches (762 mm 1200 mm) work table, two carts measuring 28 inches 30 inches (712 mm 762 mm) and an area on the floor approximately 36 inches 36 inches (912 mm 912 mm). Saving this space allowed for easier passage through the cell and a safer work environment. The new value stream map, or future state map, is displayed in Figure 5.
5. Performance evaluation The top three objectives of lean manufacturing in regards to material handling in the crown machine cell were compared with the metrics that were captured to weigh the
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Figure 5. Future state value stream map CM cell (CM, crown machine).
impact of the implementation of the solution. Table 5 displays the comparison of the future state map performed after the implementation and the current state map created before the implementation. As seen from the table, several improvements were made. The first objective was to develop and implement a solution for improved shank handling and staging in the crown machine cell. The shank staging device was developed to facilitate meeting this objective. The device was designed specifically to accommodate the geometry of the shank allowing for ease of loading as well as ease of shank selection and retrieval without increasing the time needed to perform these tasks.
Table 5. Comparison of current state and future state maps. Process step 120 minutes 30 minutes 60 minutes 180 minutes 1 day 490 minutes 25 minutes 350 minutes 80 minutes 1 day 210 minutes 40 minutes Total time variance 30 minutes 30 minutes Current step Future state map Variance 90 minutes 30 minutes (30 minutes) 60 minutes 180 minutes (80 minutes) None 490 minutes 25 minutes 140 minutes (40 minutes) 865 minutes
Process stream
Shank materials arrive to inventory Queue time Travel to inventory area for storage Travel to crown machine cell for staging Queue time Shank storage Shank staging Queue time Travel to crown machine cell as needed Queue time Parts moved into machine for assembly to bit crown Place excess shanks in inventory area
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The second objective was to reduce the potential for recordable injuries by reducing manual handling of shanks through improved methods to identify and retrieve the parts from staging. A key metric that can be used to determine exposure time to handling parts is the amount of time that the parts spend in transit, either during transfer between work locations or during processing. It is clear from Table 5 that the implementation of the solution had a marked affect on handling times. The handling time from inventory to assembly was approximately 1020 minutes per week as compared to 330 minutes per week. The third objective of increasing productivity and through-put of the cell can be measured in a similar way to that of reducing exposure to potential incident. As can be seen in Table 5, the operations after the implementation of the device saved approximately 865 minutes per week, or 14.4 hours. If conservatively averaged at 14 hours per week across the entire year of continuous operation, 50 weeks of production time, this adds up to a time saving of 700 hours. This is a substantial waste reduction and can be shifted either to improved productivity or labour cost savings. If this saving is used to affect productivity, the facility can transform 700 hours into additional throughput. An example is if it takes 50 hours to produce a completed part, then an additional 14 parts per year can be produced. If the savings are taken as a direct cost reduction, then if labour rates were charged, for example, at $30 per hour, a saving of $21,000 could occur. These examples give an idea of how using the methodology to develop a solution that defines managements objectives and offers a way to meet those objectives can positively affect the reduction of waste in the process of material handling.
6. Conclusions The manufacturing environment has had many tools available for the act of process improvement. Lean manufacturing has proved to be one of the most successful tools that manufacturing facilities can employ. However, this tool is often mandated by higher level management as a way to reduce waste from manufacturing systems without a specific road map to carry this out on a case by case basis. Providing this road map is the responsibility of operational units. A methodology was developed using several lean manufacturing concepts and the material handling issues identified through assessing the cell selected for the implementation. Once the methodology was developed, it was applied to a case study at a leading manufacturing facility of the drill bit manufacturer. Specific objectives of lean manufacturing were defined through careful use of the methodology and potential solution concepts identified. A specific solution was developed from the process of implementing the project using many lean manufacturing tools. Key metrics were determined and monitored. It was clear that the solution provided a method by which to eliminate a great deal of waste from the material handling system. Due to this, the solution was carried to other facilities with cells that performed the same or similar processes. By providing a methodology for management to determine and meet goals, operational groups can move toward providing road maps for the implementation of lean manufacturing projects.
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