Applying Lean Manufacturing Concepts When Making Upholstery Furniture Frames

Upholstery Frame Workshop NCSU Wood Products Extension Hickory, North Carolina December 10th, 2009

Harry Watt Business Improvement Specialist harry_watt@ncsu.edu

Lean Mfg Supports Getting Quality Products to Customers On Time and at a Profit!

Discrimination Policy Statement

The work upon which this project is based was funded in whole or in part through a grant awarded by the Wood Education and Resource Center, Northeastern Area State and Private Forestry, U.S. Forest Service. In accordance with Federal Law and U.S. Department of Agriculture policy, this institution is prohibited from discriminating on the basis of race, color, national origin, sex, age, or disability. (Not all prohibited bases apply to all programs.) To file a complaint of discrimination, write USDA, Director, Office of Civil Rights, Room 326-W, Whitten Building, 1400 Independence Avenue, SW, Washington, DC 20250-9410 or call (202) 720-5964 (voice and TDD). USDA is an equal opportunity provider and employer.

USFS Under Utilized Species Project

Supports Using Minor Hardwoods in the Eastern US Forest for Making Upholstery Furniture Frames Species Include Beech, Sycamore, Black Gum, Sweet Gum, Tupelo, Wormy Red Maple and Hackberry All Under $500 Per Thousand Board Feet for Green Lumber in Truck Load Quantities = Utility Grade Prices These Species Offer Great Economy for Lumber and Plywood Frames

Lean Manufacturing Attempts to Change the Company Culture for Improvement

Common Company Unity Goals

Continuous Improvement Over Time Consistent Monthly and Yearly Profitability A Regular Look for Inefficiency and Waste Empowerment of All Employees at All Levels

We May Have More Positive Upholstery Furniture Stories Coming in the Future
Legacy

Furniture Recently Written Up in the Charlotte Observer Conover Location Small Manufacturer, 35 Employees See Handout for the Article
Medical Furniture

Lean Manufacturing is Really a Business Improvement Technique

Improvements Based On: Faster Delivery Time Less Inventory $ Investments Reduced Waste of All Types Better Product Quality Improved Labor Productivity Reduced Factory Overhead Costs Improve Business Competitiveness
LM Has Many Similarities to the Better/Faster/Cheaper Concepts

LM Impacts Monthly Income Statement

Revenues = Sum of $Price x Quantity Expenses: Materials Direct Labor Factory Overhead General, Sales and Administrative Overhead
Think Like a Boss and Understand the Monthly Profit and Loss Statement = Income Statement!

Example P & L-Current Performance

With No Lean Manufacturing Applied Sales Units/Mo 1,000 Fraction 1.000 $/Unit $/Month $400 $400,000

Expenses Materials Direct Labor Factory Overhead 0.400 0.220 0.330 $160,000 $88,000 $132,000 $380,000 $20,000 5.0%

Operating Profit % Profitability on Sales

Example P & L-5% Improved Performance

With Lean Manufacturing Applied Sales Units/Mo 1,050 Fraction 1.05 $/Unit $/Month $400 $420,000

Expenses (5% Improvement) Materials Direct Labor Factory Overhead

0.380 0.209 0.314

$159,600 $87,780 $131,670 $379,050 $40,950 9.8%

Operating Profit % Profitability on Sales

LM Materials Improvement

Use

Lower Cost Materials

Improve Material Yields Reduce $Inventory Investment Reduce Waste for Remakes and Repairs Visual Scheduling System Can Reduce Overproduction

Direct Labor Improvement

Can

Reduce the Need for Specialized Labor

Improve Employee Effectiveness and Efficiency Reduce Waste of Rework and Repairs Visual Scheduling System Empowers Employees

Twin Table CNC Routers Can Grow Labor Productivity

Factory Overhead Improvement

Reduce

the Need for Supervision and Management

Reduce Inventory and Supplies $ Reduce Floor Space Requirements Simpler Equipment Can Be Less Expensive

Information Board is for the Rough Mill Crew to Know the Companys Schedule and Their Performance Levels

Apply LM Concept for Lumber and Plywood Frames

Pull

Flow Perfection Elimination of Waste Five Ss

Implement the 5 Ss Everywhere

Warehouses

and Supply Rooms Production Work Centers Offices

1. Sort 2. Set in Order 3. Shine and Inspect 4. Standardize 5. Sustain

Value Stream Mapping for Lumber and Plywood Frames

Create

a Process List of the Processing Steps

Classify Each Step as Processing, Wait, Storage, Inspection, Etc. Identify the Communications Needed by the Crew to Process the Frames Include Purchasing, Design ,Engineering

Exposed Wooden Frames

May Show Arms, Backs, Legs Wood Species Must Have Good Finishing Attributes Can Connect to Lumber and Plywood Interior Parts

Frame Makers Can Include Lumber and Plywood in Their Frame Designs

Curved Parts Come From Lumber Glued Up Panels That Are Bandsawn or Plywood CNC Machined

Can Use a CNC Band Saw for Lumber Edge Glued Panels

LM Frame Designer
A Frame Designer Can Work on a PC Linked to Others Use Modeling Software Link to Sales and Customers Can Become a Active Agent to Grow Sales and Profitability = a Team Player!

Frame Designer/Engineer = a Star

Can Support Sales to Quickly Create Concept Models Can Quickly Get Modified Products Into Production Can Provide Ideas to Meet the Needs of Customers Companies Need to Tap the Resources Now Available in the Design/Engineering Department to Grow Company Success

Sales & Marketing

Design & Engineering

Modify Existing Unit

Flow Chart for a Lumber Frame That is Modified From an Existing Unit

Purchasing & & Production Control

Creates New Unit

Rough Mill Ripping & Chop

Machine Room Multiple Machines (Trim/Bore/Dowel/Notch)

Frame Assembly Finishing Upholstery Dept

Applying LM for Lumber Frames

Think of Standardizing Rip Widths of Parts Can Stock Lumber Rip Strips Ready to Process Set Up Cellular Trim, Bore, Dowel and Notch Work Cells for Fast Processing of Small Order Quantities

Can Order Rough Lumber Sorted to Standard Widths for Better Rip Yields

LM Layouts for Lumber Frames

Tie All Operations Together With Conveyors to Eliminate Non-Value Added Labor and Time Delays Can Use Manual Equipment With Fixtures for Fast Setups and Changeovers Scheduling is Important to Reduce Frames Waiting for the Upholstery Department
Conveyors Between Work Centers Can Eliminate Labor Wasting Pallet Jacks and Shop Trucks

VSM Example for Plywood Frame

Example Flow Chart for a Plywood Frame

Sales & Marketing

Goal is to Link Directly From the Designers Software to the CNC Router, Eliminate Any Additional Machining, Then Go Directly to Assembly

Design & Engineering

Modify Existing Unit

Purchasing & & Production Control

Creates New Unit

CNC Machining

Frame Assembly Finishing Upholstery Dept

LM Layouts for Plywood Frames

Recent Advances in Plywood Frame Design Can Limit Machining to One Trip to a CNC Router Material Handling at the CNC Router Becomes Very Important Scheduling the Cutting of Frames is Also Very Important
A 3-D Model of a Plywood Frame

LM Advances for All Frames

Must Look at How to Better Support the Later Upholstery Operations Transportation to the Upholstery Shop Finishing Spring Up Spring Cover Fabrics
A 3-D Model of a Plywood Frame

Management Links to Lean Manufacturing

Managers

Must Move to Open Management Methods

Managers Have to Devote Time to Meetings Managers Have to Relate Company Goals to LM Efforts

LM Requires Bosses With Great Personal Skills

Linking Lean Manufacturing to Company Goals

LM Supports Fast Responses to Customer Demands LM Supports Low Inventory Investment LM Supports Lower Factory Overhead LM Can Support Significantly Higher Profitability

Selling LM to Fellow Employees

Want Top Management to Appeal to All Employees Want Employees to Offer Improvement Ideas Anywhere in the Company Want to Offer Training Classes in LM to Any Employee Performance of LM Projects Should Be Posted

LM Success Requires Supply Chain Support

Must Cooperate With Up Field Vendors Must Cooperate With Down Field Vendors Must Cooperate With Support Organizations