Lean Manufacturing

A Brief History of Lean

Lean thinking first appeared in the 1920s Henry Ford used it to improve his manufacturing flow lines while producing his famous Ford model T.

As Kiichiro Toyoda, Taiichi Ohno, and others at Toyota looked at this situation in the 1930s, and more intensely just after World War II, it occurred to them that a series of simple innovations might make it more possible to provide both continuity in process flow and a wide variety in product offerings. They therefore revisited Fords original thinking, and invented the Toyota Production System.

What is Lean?

Lean manufacturing is not only a project or program. It is way of thinking. Lean production focuses on eliminating waste in processes (i.e. the waste of work in progress and finished good inventories). Lean production is not about eliminating people. Lean production is about expanding capacity by reducing costs and shortening cycle times between order and ship date. Lean is about understanding what is important to the customer.

How is the objective accomplished?

Lean production is aimed at the elimination of waste in every area of production including customer relations, product design, supplier networks and factory management. Its goal is to incorporate less human effort, less inventory, less time to develop products, and less space to become highly responsive to customer demand while producing top quality products in the most efficient and economical manner possible.

Customer expectations: The right quality At the right moment At the right place For the righ cost In the right Mount In other words: Value

The challenge For Serco

Improving the Quality Training Employees (Lean Manufacturing, Kaizen,Six Sigma) Improving manufacturing processes and eliminate defects Reducing the costs (production and material costs) Reducing the Lead Time Lead over competitors (innovation, technology, product) Higher quality Higher profits Higher system flexibility in reacting to changes in requirements improved More strategic focus Improved cash flow through increasing shipping and billing frequencies The GOAL(Make More Profit)

Six crucial factors for our leadership

= QUALITY PRODUCT = DESIGN

= HIGHER PROFIT PRICE = LOWER INVESTMENT OF PRODUCT UNIT

= RELIABLE DELIVERY DATE BETER ANTICIPATION = SHORTER DELIVERY DATE (LEAD TIME)

Lean = Purpose + Process + People

Purpose = Successful organizations solve customer problems by providing what customers want, when they want, where they want, cost effectively. Process = (value stream) is those actions that must be taken properly in the proper sequence at the proper time to create value for customers by solving problems. People = engaging everyone touching every value stream to operate and improve it steadily (kaizen) and dramatically (kaikaku). Whats a Lean Process? Every step is: Valuable as judged by the customer. Capable a good result every time. Available ready whenever needed. Note: Capability x availability = stability. Adequate just enough capacity. Flexible able to switch quickly at low cost from one product/task to the next.

Whats a Lean Process?

Steps and links are coordinated by: Flow in adjacent, process sequence. Pull through some type of authorization from each down-stream step for the next up-stream step to take some action (when flow is impossible.) Leveling through heijunka at one pace-maker point in the process. Velocity is maximized; lead time is minimized. Muda, mura, and muri are eliminated! Muda = any activity that consumers resources(including time) but creates no value for the customer. Mura = variation in the operation of a process not caused by the end customer. Muri = overburden on equipment, facilities & people caused by mura and muda. No problem is problem.

1:3&3:1
1 : 3 & 3 : 1 With this Its meant that 1 person has 3 tasks and 3 persons are able to fulfill 1 task. By following this simple rule we create a powerful company. Multi- Skilled Workforce as employees are empowered to do many jobs, they must be provided with adequate training

KAIZEN
Kaizen (Japanese for continuous improvement ) is a Japanese philosophy that focuses on continuous improvement throught all aspects of live. By improving standardized activities and processes, Kaizen aims to eliminate waste. Implementation The Toyota Production System (TPS) is known for kaizen, where all line personnel are expected to stop their moving production line in case of any abnormality and, along with their supervisor, suggest an improvement to resolve the abnormality which may initiate a kaizen. The cycle of kaizen activity can be defined as: standardize an operation measure the standardized operation (find cycle time and amount of in-process inventory) gauge measurements against requirements innovate to meet requirements and increase productivity standardize the new, improved operations continue cycle ad infinitum.

The foundation of the Kaizen method consists of 5 founding elements:

1. 2. 3. 4. 5. Teamwork Personal discipline Improved morale Quality circles Suggestions for improvement

Out of this foundation three key factors in Kaizen arise: Elimination of waste (muda) and inefficintie 5S for good housekeeping Standardization.

1.Elimination of waste (muda) and inefficintie

What Are The 8 Different Types Of Muda?
MUDA is a term from lean manufacturing, which basically means waste. The entire philosophy of lean manufacturing is to run a process as lean as possible. In order to accomplish this, you need to know what MUDA is and the different types. The following is a list of the 8 different forms of MUDA: 1. Making products or services that no one really wants. This would be a scenario where you basically run equipment to keep operators busy. You have no orders or production requirements for this, but you think it looks good just to be doing something. 2. Defective products or flawed services (mistakes). Any time you must rework something, you are losing money. Not only are you losing time, which is a labor cost, but more than likely you are having to run this part though all of the processes again, costing you labor and material.

1.Elimination of waste (muda) and inefficintie

3. Overproduction - making too much of something. This is done by carelessness. You over run your requirements because your processes are normally out of control. You can not depend on your process to make the exact amount required, so a few extra ensures you get the orders out the door. 4. Inventory. Just think about it. It is sitting there taking up square footage, labor costs, and materials. Until it moves out the door for an order, it is a waste. 5. Unnecessary process, or non value added steps. Quality is a perfect example. The customer wants a good product. They pay for this. But each time you add inspection points you do not get to charge more. So, in essence, you are adding non value steps.

6. Unnecessary movement of people. Anytime a person must walk somewhere you are losing money.

1.Elimination of waste (muda) and inefficintie

7. Unnecessary movement of things. Anytime you must move a part from station to station, you are not adding any value to the part. So, once again, you are wasting time. 8. Waiting or queuing. This is the easiest one to notice. If you just look around, you can see people waiting on processes, other people, and on products. Other candidate wastes:

Latent Skill Organizations employ their staff for specific skills that they may have. These employees have other skills too, it is wasteful to not take advantage of these skills as well. It is only by capitalizing on employees' creativity that organizations can eliminate the other seven wastes and continuously improve their performance. Danger Unsafe work areas creates lost work hours and expenses. Poor Information Age of electronic information and enterprise resourse planning systems (ERP) requires currenr / correct master data details.

1.Elimination of waste (muda) and inefficintie

Material In branches where the material cost is relatively high, loss of raw materials, intermediates and finished products can be a very important area of focus. Breakdown Due to poor maintenance, equipment used to produce may breakdown. This can cause delays in production regularly. This is why we implement a TPM program (Total Productive Maintenance).Is a method used to achieve maximum equipment effectiveness through employee involvement.

Using the Value Stream Map to Eliminate Waste

Value-Added Non-Value-Added: Hold all waste in a CLOSED MITT Complexity Labor Overproduction Space Energy Defects
Materials Idle Materials

Transportation Time
Typically 95% of all lead time is non-value-added

Here is how it works

1)Review all the wastes. Talking about it is where it all begins since everyone needs to have the same perspective. How can you run a railroad if everyone has a different view of what time is? When getting started dont talk about it in a classroom go to the Gemba, or where the rubber hits the road, and have a preliminary look-see. The more folks know what is going on - and why you are looking for waste the less suspicion that somethings afoot. The whole point of Lean is to drive waste out of your enterprise. 2) Apply the following Process for Factory Tours a) Each team appoints: > one note taker or scribe and - > one photographer > one spokesperson (for the debrief below in #4) b) Identify wastes and take photographs Scribe: Document notes for every photograph including > Process name > Where in the process > Why significant > What effect does it have? c)Teams report back to training room and organize the photos within the Close Mitts categories d) Prepare to debrief what you saw and the significance of the wastes identified 3) Develop a worksheet you can customize to your hearts content in order to make it fit what youre doing. If you dont have 10 wastes then get creative pick yours. (See Checking the Waste Excel doc.) 4) Create your action Plan just do it !

5S+2 - Workplace Organization

A safe, clean, neat, arrangement of the workplace provides a specific location for everything, and

eliminates anything not required.

In Lean manufacturing, we refer to this as 5S. Examples: EMTs, fire department, etc.

SORT
Perform Sort Through and Sort Out, - red tag all unneeded
items and move them out to an established quarantine area for disposition within a predetermined time. When in doubt, move it out!

Before Sort red tagging

After Sort "Red" tagging

Set in Order

Identify the best location for remaining items and label them. A place for everything & everything in its place. To arrange essential items so that they are easy to locate and easy to use. To make it obvious something is missing or does not belong there. But Set also includes evaluating ergonomics, value added vs non-value added, elimination of waste, and continuous improvement. The objective is to arrange the work area so that discrepancies can easily be identified and corrected. When your workplace has been Set, the employees spend less time looking for things and less energy performing their work.

After Set

Sweep (Systematic Cleaning)

Clean everything, inside and out. Use visual sweeps to ensure everything is
where it should be and that junk is not accumulating.
Everything in the work area can and should be cleaned: Equipment, Machines, Tools, Workbenches, Storage areas, Floors, Aisles, Containers, Cabinets, Carts

Before Shine

After Shine

Standardize
Create the rules for maintaining and controlling the first 3 Ss. Use visual controls. Standardize helps prevent the first three Ss from set backs. It is the glue that holds the first three together. Standardize helps communicate the expectations for the first three Ss. The objective is to establish guidelines so that Sort, Set, Shine become daily routine procedures. Typical guidelines include: Inventory,Tools, Locations, Colors, Symbols, Floor Markings, Area Checklists

After Standardize... Five S+2 Standardization Checklist

 Ensure adherence to the 5S standards through communication, training, self-discipline

and rewards.
Keep the momentum going or the first four S's will fade away.Both Standardize and Sustain are about changing Five S +2 habits over the long term. If you change habits, behavior changes. . . And when you change enough behaviors, your culture changes.Sustain refers to the commitment behind the whole Five S+2 program.Sustain means you not only tell your employees to do Five S+2, you make sure they comprehend the program. Rather than just ordering them to fit Five S+2 into their schedules, you need to appropriate time. Instead of demanding their compliance, you need to recognize and reward Five S+2 achievements.

Sustain

After Sustain

After Sustain

Safety
Almost all accidents are preventable. Tools, materials, pallets, etc are no longer left in aisles or stacked too high, thus creating a much safer work environment.

SMAINTENANCE
Through the implementation of Five S+2 operators learn to take ownership of the process. It becomes their daily responsibility to keep their machinery clean . . . And clean machinery runs better. Clean equipment makes it much easier to identify new leaks and normal wear of the equipment. Successful Five S+2 programs always have superior Preventative Maintenance programs . . . Resulting in more production uptime and increased output.

5S How can this help me?

Helps to create and maintain an organized, clean, safe and high performing visual workplace 5s enables anyone to distinguish between normal and abnormal behavior at a glance

5s encourages continuous improvement, zero defects, cost reduction and a safe workplace
Improves your workplace, processes and products through employee involvement 5S AUDIT (Excel sheet)

A more efficient, less wasteful workplace

Standardization
How to arrive at standardisation? For many companies the most important method of standardisation is the writing of procedures and work instructions. This often results in thick books that are never used and, as a result, improved working methods evaporate, as we say above, like snow in the sun. To prevent this, the following principles are employed: a standard is only necessary if it will influence the quality, time and/or costs of the process. a standard is preferably embedded in the system in the following order: 1. Failsafe (Poka Yoke) 2. Visual guide 3. Visual aid 4. Procedure or work instruction at the work place. a standard is drafted by the user(s) and is available at the workplace concerned. a procedure or work instruction is written in the form of a Single Point Lesson (EPL): consists of one sheet of A-4, concerns one subject and is made as visual as possible.

Results of Standardisation
The result of standardisation is that the organisation becomes transparent and the Visual organisation becomes a fact. This leads to an increased effect of the improvement efforts in the organisation. The additional result of standardisation is a knowledge sharing culture in which knowledge transfer between employees is an everyday occurrence.

POKA YOKE
Poka-yoke is a Japanese term that means fail-safing,foolproof, or a method of preventing errors by putting limits on how an operation can be performed in order to force the correct completion of the operation.

Three types of Poka-Yoke: The contact method identifies defects by whether or not contact is established between the device and the product.Color detection and other product property techniques are considered extensions of this. The fixed-value method determines whether a given number of movements have been made. The motion-step method determines whether the prescribed steps or motions of the process have been followed.
Poka-yoke either give warnings or can prevent, or control, the wrong action. It is suggested that the choice between these two should be made based on the behaviors in the process, occasional errors may warrant warnings whereas frequent errors, or those impossible to correct, may warrant a control poka-yoke.

Poka-Yoke example

3.5 inch diskette cannot be inserted unless diskette is oriented correctly. This is as far as a disk can be inserted upside-down. The beveled corner of the diskette pushes a stop in the disk drive out of the way allowing the diskette to be inserted. This feature, along with the fact that the diskette is not square, prohibit incorrect orientation

Visual Controls
Simple signals that provide an immediate understanding of a
situation or condition. They are efficient, self-regulating, and worker-managed.

Examples:
Kanban (stock signal) Cards

Color-coded dies, tools, pallets

Lines on the floor to delineate storage areas, walkways, work areas etc.

Lights to indicate production status

Location signs on shop floor and in the office Identification labels everywhere

Standardized Work
Graphic = Good
Tools are illustrated Parts are pictured and numbered Spatial relationships are clearly shown Small items enlarged to show assembly detail All items are either physically labeled or identified by number in assembly graphic

Visual Inspection Example

Specify what to inspect
Clear inspection criteria Dont overload operator with complex content or criteria

No missing screws All screws seated

Standardized Work

The PDCA Cycles

The fundamental idea behind KAIZEN comes straight from the Deming/Shewhart PDCA cycle (is a flow chart for learning and process improvement).

The PDCA Cycles PDCA ("Plan-Do-Check-Act") is an iterative four-step problem-solving process typically used in quality control.

Identifying and Verifying Causes

The Ishikawa diagram (or fishbone diagram or also cause-and-effect diagram) are diagrams, that shows the causes of a certain event. A common use of the Ishikawa diagram is in product design, to identify potential factors causing an overall effect. Causes Causes in the diagram are often based on a certain set of causes, such as the 6 M's, 8 P's or 4 S's, described below. Cause-and-effect diagrams can reveal key relationships among various variables, and the possible causes provide additional insight into process behaviour. Causes in a typical diagram are normally grouped into categories, the main ones of which are: The 6 M's Machine, Method, Materials, Maintenance, Man and Mother Nature. The 8 P's Price, Promotion, People, Processes, Place / Plant, Policies, Procedures, and Product (or Service). The 4 S's Surroundings, Suppliers, Systems, Skills

Quality Improvement Diagram

Most Ishikawa diagrams have a box at the right hand side, where the effect to be examined is written. The main body of the diagram is a horizontal line from which stem the general causes, represented as "bones". These are drawn towards the lefthand side of the paper and are each labeled with the causes to be investigated, often brainstormed beforehand and based on the major causes listed above. Off each of the large bones there may be smaller bones highlighting more specific aspects of a certain cause, and sometimes there may be a third level of bones or more. These can be found using the 5 Whys technique. When the most probable causes have been identified, they are written in the box along with the original effect. Questions for Proces Improvement
5W What? Purpose Key Questions What is done? Is the purpose accomplished? Why is it necessary? What if it were eliminated? What would make it unnecessary? Where is it performed? What alternate locations are aviable? Can the departments be reorganized? What other sequences would work? Can it be combined with another event? What are the implications of other sequences? Who performs the task? Who else could perform it? What other methods are available? What other process technologies exist? Can smaller-scale processes be used? Strategy Eliminate

Why?

Place

Where?

Combine Rearrange

Sequence

When?

Person Means

Who? How?

Simplify

Pareto Chart
Purpose Of A Pareto Chart A pareto chart is used to graphically summarize and display the relative importance of the differences between groups of data.

How To Construct A Pareto Chart A pareto chart can be constructed by segmenting the range of the data into groups (also called segments, bins or categories). For example, if your business was investigating the delay associated with processing credit card applications, you could group the data into the following categories:
No signature Residential address not valid Non-legible handwriting Already a customer Other

The left-side vertical axis of the pareto chart is labeled Frequency (the number of counts for each category), the right-side vertical axis of the pareto chart is the cumulative percentage, and the horizontal axis of the pareto chart is labeled with the group names of your response variables. You then determine the number of data points that reside within each group and construct the pareto chart, but unlike the bar chart, the pareto chart is ordered in descending frequency magnitude. The groups are defined by the user.

What Questions The Pareto Chart Answers What are the largest issues facing our team or business? What 20% of sources are causing 80% of the problems (80/20 Rule)? Where should we focus our efforts to achieve the greatest improvements? The fundamental idea behind the use of Pareto diagrams for quality improvement is that the first few (as presented on the diagram) contributing causes to a problem usually account for the majority of the result. Thus, targeting these "major causes" for elimination results in the most cost-effective improvement scheme.

JIT (Just-in-Time)
In Kaizen , JIT is a collection of concepts and techniques for improving productivity. JIT is a process aimed at increasing value-added and eliminating waste by providing the environment to perfect and simplify the processes. What is JIT? Just-in-time manufacturing means producing the necessary items in necessary quantities at the necessary time. Putting this concept into practice means a reversal of the traditional thinking process. In conventional production processes, units are transported to the next production stage as soon as they are ready. In JIT, each stage is required to go back to the previous stage to pick up the exact number of units needed. Benefits: Reduced operating costs Greater performance and throughput Higher quality Improved delivery Increased flexibility and innovativeness

JIT Components:
Production Leveling Pull System Kamban (label or signboard) system Good Housekeeping Small Lot Production Setup Time Reduction Total Preventive Maintenance (TPM) Total Quality Control (TQC) JIT Purchasing Line Balancing Flexible Manufacturing Small-group Activities (SGA) Kamban a Communication Tool in JIT Production System. Being a very important tool for just-in-time production, kamban has become synonymous with the JIT production system.

Push vs. Pull Systems

Push System
Resources are provided to the consumer based on forecasts or schedules

Pull System
A method of controlling the flow of resources by replacing only what has been consumed

Pull System
Pull system consists of:
Production based on actual consumption Small lots Low inventories Management by sight Better communication

Pull System Flow Diagram

Information Flow

Supplier

Raw Matl

Process A

Process B

Process Fin. Goods C

Customer

Parts Flow Kanban Locations

Pull System Methods

Kanban: A visual signal telling us what we need to produce.

Cards, open spots, etc.

Two-bin System: Used for commonly produced items, sub-assemblies. When a bin is empty, fill it. Ensures there is always material available while minimizing inventory

Supermarket or Grocery Store System: Controlled & limited shelf space. Replenish items to the shelf as needed.

Value stream mapping

Follow a product or service from beginning to end

Draw a visual representation of every process in the material & information flow

Value Stream Mapping

Helps us see where value is created, and where waste exists:

A visual approach, by product family

Shows flow of both material & information Helps us see which specific Lean tools can be used to improve flow and eliminate waste Two maps will be made: Present State (how it is) & Future State (how it should be) Will guide the creation of an action plan to make the should be into a reality for that product family

Value stream map

Mapping the Future State

Determine Available Time/Demand. Determine where continuous flow is possible. Determine what pull systems will be used. Determine pacemaker operation. Determine how pacemaker will be scheduled/leveled. Determine increment of work released at pacemaker. Identify necessary process improvements to achieve future state flow

Future State Value Stream Map

Definition of Value-Added
Value-Added

Any activity that increases the market form or function

of the product or service. (These are things the customer is willing to pay for.)

Non-Value Added (Waste or muda)

Any activity or use of resources that does not add

market form or function or is not necessary. (These activities should be reduced, integrated, simplified, or eliminated.)

Lean = Meeting customer demand in a timely way

Takt Time is the pace or rhythm of work production needed to meet customer/client demand.
It is the available work time in a specified time period/frame divided by the number of units of work needed/demanded in that same time frame. It takes into account any shifts worked and makes allowances for planned unavailable times (for team briefings, standup/standing meetings, breaks, planned maintenance, etc.). Takt Time is a useful concept for balancing demand and supply/resources. It is simple to use where the demand rate is consistent and/or consistently known but can also be very useful where demand fluctuates and where the time resources are variable (staff come and go; there are interruptions, etc.).

Takt Time = Available Time Customer Demand

Example: If your customer requires 3 units a day, the Takt Time in minutes for one work day (using 7.5 actual work hours) will be 7.5 hrs. / 3 units = 450 minutes (7.5 hrs.X 60 mins. )/ 3 units = 150 minutes per unit This means the specified unit of work needs to be completed/delivered every 150 minutes. Therefore, every step/unit needs to be done/delivered every 150 minutes. Every effort should be made to first identify and eliminate waste in order to equalize the actual time variations in each step within the process -- and then to balance the workload.

Remember the Following in Determining Takt Time

1. Determine the appropriate time frame/time period for the process and step you want to look at. For example, consider the following: How long should people wait? If you dont want people waiting even a day, then a day might be appropriate. The process itself may suggest the appropriate time period. (i.e. if the process is repeated weekly, then weekly might be appropriate). Be consistent and use the same time frame/period for the measurements. For example, staff time per week / # of units of work per week.

2.

3.

When determining staff time in the process (value stream) in the period chosen: Allow for vacations, sick time, breaks in staff time. For example, the number of minutes in a work week is 2400, which -- taking such exclusions into account -- becomes 1886 actual work minutes available per week.
In balancing workloads, consider the proportion of time staff are working in any particular process/value stream. Staff may be involved in more than one process. For example, a full-time employee may only be available .25 FTE for the process youre considering or you may also need or be able to balance workloads among processes, not just steps within one process.

4.

How You Can Use Takt Time

1. 2. 3. 4. Compare current worker cycle time against Takt Time. Identify steps to rebalance work and, if necessary, adjust the amount of work so each employee has a full job. This avoids the build up of Work in Process or waste due to waiting. Consider the inputs each worker receives to do the work and take steps to adjust these to match Takt Time. Regularly (each week in most cases or whatever the appropriate time period is for your process) recalculate your Takt Time to ensure it reflects current circumstances and adjust staffing levels accordingly. How Using Takt Time Can Help You Takt Time can provide the underlying rhythm for the work process. This helps to make the process and outputs more consistent and predictable/reliable, with all the workers responding to that same rhythm. It provides clear and immediate feedback for the worker. This is important not only for performance and problem identification but can also act as motivation for change. It provides information that can be used to balance work flow and workload, as well as the resources required to do the work.

Takt Time ( Examples )

Takt Time: The rate (time) at which a person/item/document/ action, etc. needs to be completed at each step in a process in order to meet customer demand/for work not to pile up. It is the actual work touch time and is independent of the number of people doing the work. It is simply the number of work minutes in a week, or other chosen time frame, divided by the number of units of work to do (demanded by the customer) in that same time. Calculation: Time Available = Time per item # Items/Documents/Actions/People
Example: There are 11,018 claims that come into your unit each week. You have 27.5 staff to process these claims. What would be the pace
at which each claim has to be processed in each step to meet the demand in a timely way? 1,886 work minutes a week available (1 ) = .17 minutes for each claim 11,018 claims per week A claim would have to be processed roughly every 10 seconds in (each step of) the process in order to have no backlog (meet customer demand) for that week.

Staffing Needs: You can now use this Takt Time to help you determine the actual number of staff you need to do each step in order to meet customer demand (with no backlog) for the selected time period. Calculation: Cycle Time (the time it really takes/piece) Takt Time (the time demanded/piece)

= Minimum Number Staff Needed

Example: However, in Step 3 each claim takes 9 minutes, not the .17 minutes demanded by time and volume. Given this, how many staff do
you actually need in Step 3 to do the work, with no backlog, to meet customer demand for the week? 9 actual minutes in Step 3 .17 available minutes = 53 staff

This means that you need roughly twice times the number of staff you currently have available for that Step in order to have no backlog for the week. You should always first determine if the current 9 minute cycle time can be reduced by streamlining the step/process and by identifying and removing bottlenecks, inefficiencies, and other wastes, etc.

Takt Time ( Examples )

Determining Staffing/Resource Needs: You can also use Takt Time to balance the work load or to right-size your process. Calculation: Cycle Time (minus waste-the time it really takes per piece) Takt Time (the time demanded/piece) = Minimum Number of Staff Needed

Example: Each claim takes about 4 minutes in Step 2, not the 0.17 minutes required by time and volume. Given this, how many staff do
you need to do the work in this step with no backlog in order to meet customer demand for the week? 4 actual minutes per claim in Step 2 0.17 available minutes per claim

= 23.5 staff

This means that you generally will need about four fewer staff than you have available to work on claims in Step 2 for the week. As a result, you can explore other options for balancing work loads in other steps in the process or areas where additional staffing is needed, providing expanded or enhanced services, etc. See also examples below.

Balancing the Workload within the Process: You can also use Takt Time to balance the work load within the process itself. In order to get a claim out every .17 minutes, every step within the claim process should move a claim every 0.17 minutes.
Example: In order to prevent bottlenecks, each step along the process should put out one claim every .17 minutes. You study each step to
determine how much time it takes each step to actually do to its part. You find that Step 7 is taking 5 minutes. An adjustment has to be made; but, after getting rid of waste, it still takes 4.5 minutes. If its a matter of people (rather than equipment/other resources), is more staffing capacity needed at that step? 4.5 actual minutes per claim in Step 7 0.17 available minutes per claim

= 26.5 staff

This means that you generally will need more staff capacity to work on Step 7 than in Step 2. As a result, you might want to explore options for balancing work loads, such as bringing in staff working on other steps that may take less than 0.17 minutes/where there are more staff than needed. But, note also that this step does not require all your available staffs time.

Takt Time ( Examples )

Balancing the Workload within the Process: Lets look at a couple of other steps
Example: Step 5 is taking 5 seconds and Step 9 is taking 4 seconds. There is a person on each of these steps.
.08 actual minutes per Step 5 claim .17 available minutes per claim = .47 staff .07 actual minutes per Step 9 claim .17 available minutes per claim = .41 staff Does there need to be a person on each of these steps, or can one person do both of these steps in less than .17 minutes? Can you do some cross-training and take one of the two staff and put that one person on both steps? And use the second person elsewhere where additional resources are needed?

Another Example of Takt Time: In this example, you cannot assume that you can accurately extrapolate this Takt Time to a full work week. You should also form the practice of routinely checking to see if and when Takt Time changes. There may, for example, be predictable fluctuations in the demand rate (e.g. highest number of demand on Monday, tapering off toward the end of the week). Calculation: Time Available___________ = Time per item Takt Time (the time demanded/piece)
Example: Unemployment applications with requests for new and continued compensation come in by telephone, by mail, on the web, and in
person. In a week that contained a holiday, 12,441 requests were made. 1509 work minutes available/4-day week = .12 minutes per request 12,441 requests for the 4-day week Using 1,886 work minutes available for a five-day week, there would be 1509 minutes available to process these applications. An application would have to be processed every .12 minutes or roughly every 7 seconds from start to finish, at every step of the process, in order to have no backlog for that week.

Traditional Plant Layout

Plant Layout for Flow

Raw Stock
QC Rec Ship

Shear

Stamp

Screw Machine Lathe Drill

QC

Brake

Mill

Assembly

Weld

Grind

Finish

Parts Stock

Obstacles to Flow
Monuments:
Unmovable items in the plant, i.e., large pieces of equipment, structural supports or walls, etc. Too expensive to move or replace, yet not in the proper place to allow good product flow.

What do we do about monuments?

We have to leave them where they are (for now)! We do our best to work around them. Put in place the best flow given the monuments, but must always be looking for a better way.

Impact of Batch Size Reduction

Batch & Queue Processing
Process A 10 minutes 10 minutes Process B Process C

10 minutes

Lead Time 30+ minutes for total order 21+ minutes for first piece

Continuous Flow Processing

Process Process Process A B C

12 min. for total order 3 min. for first part

The Ideal Lot Size

Ideal lot size is one
Velocity = The smaller the lot size, the faster the parts will flow through the manufacturing process Flexibility = The smaller the lot size, the more variety in demand the system can handle

More Lean Tools

Setup Reduction or Quick Changeover (SMED) Point of Use Storage (POUS) Quality at the Source Visual Inspection Pull (including Kanban, Two Bin, Min/Max) Cellular Manufacturing Total Productive Maintenance

Setup Reduction or Quick Changeover (SMED)

Definition: Minimizing the time from last good piece of the current product run to first good piece of the next (different) product run.

The Single Minute Exchange of Dies method consists of 3 steps:

1. Separate internal and external activities (internal: activities while machine is stopped,external: activities while machine is running). 2. Convert internal activities into external activities 3. Eliminate and/or reduce all activities (Internal and external) Schematically: = internal = external The analysis consists of the following 4 phases: 1. mixed phase 2. separated phase 3. transferred phase 4. improved phase

Setup Reduction or Quick Changeover

Preparation Remove/Install Tooling Change Machine Settings Make Trial Pieces & Adjust Reduce the complexity and increase the efficiency of setups by standardizing as much of the hardware and methodology as possible.

Percent of time of changeover

Making trial pieces and adjusting 30% 50%
15% 15%

Preparation, after-process adjustment, checking, return to storage of parts, tools, fixtures, move materials 5% Removing parts, blades, jigs, etc.; mounting same for next lot, move materials Machine settings, measurements

No/Low Cost Solution: Use of Positioning Pins

Positioning Pins

Positioning Pins

No/Low Cost Solution: One-Turn Methods

Pear-Shaped Hole Method

Tighten Here

Attach and Remove Here

Other Functional Clamps

Quick Changeover: Visual Controls

Quick Changeover
Clearly labeled cutter size and style

All regular router cuts needed in this workcell stored at router table.

Standardization & Setup Reduction

Common fasteners and fittings standardize on the sizes
and types.

Standardized carrier plates, fixtures, shut heights, etc. Standardized procedures along product families, where
the product families share common manufacturing processes & equipment.
across all operations and shifts.

Share information and communicate best practices

Monitor & track setup times relative to standard time.

Point of Use Storage (POUS)

Raw material, components used, and information is
present at workstation where used

Works best if vendor relationship permits frequent, ontime replenishment and small shipments

Simplifies physical inventory tracking, storage, and

handling

Quality at the Source

Source Inspection: Operators must be certain that the product
they are passing to the next workstation is of acceptable quality.

Operators must be given the means to perform inspection at the

source, before they pass it along.

Samples or established standards are visible tools that can be

used in the cell for such purposes.

Process documentation defining quality inspection

requirements for each workstation needs to be developed.

Cellular Manufacturing
Cellular manufacturing is an approach that helps build a variety of products with as little waste as possible. Equipment and workstations are arranged in a sequence that supports a smooth flow of materials and components through the process, with minimal transport or delay. A cell consists of the people and the machines or workstations required for performing the steps in a process or process segment, with the machines arranged in the processing sequence. Arranging people and equipment into cells helps companies achieve two important goals of lean manufacturing one-piece flow and high-variety production. One Piece Flow: One-piece flow is the state that exists when products move through a process one unit at a time, at a rate determined by the needs of the customer. The goals of one-piece flow are to make one part at a time all the time, without unplanned interruptions, and to achieve this without lengthy queue times. High-Variety Production: Given the fact that customers expect variety and customization, as well as specific quantities delivered at a specific time, it is necessary to remain flexible enough to serve their needs. Cellular manufacturing offers companies the flexibility to give customers the variety they want. It does this by grouping similar products into families that can be processed on the same equipment in the same sequence. It also encourages companies to shorten the time required for changeover between products. This eliminates a major reason for making products in large lots that changeovers take too long to change the product type frequently.

Moving to Cellular Manufacturing/Flow Production

Stage 1
Production in Specialized Departments
Dept A Dept B Dept C

Stage 2
Production in Product Cell
C C Inv C C
Dept E

A A Inv A A
Dept D

Inv Inv Inv Inv

B B B

Inv Inv Inv

Inv

Inv

Inv

Inv

D Inv D D

C
Inv

Inv

Inv

E E

Inv

Inv

Stage 3
Production in Compact Cell with One-Piece Flow

Stage 4
Production in Compact Cell with One-Piece Flow and Separation Man/Machine

D E C D

C
A B

What is Total Productive Maintenance (TPM)?

Total Productive Maintenance (TPM)

Increase Overall Equipment Effectiveness (OEE) Systematic approach to the elimination of equipment downtime as a waste factor Enlisting the intelligence and skills of the people who are MOST familiar with the factory machines: the equipment operators Charting/analyzing equipment performance to identify root cause of problems, and implementing permanent corrective actions

Improve existing planned maintenance systems

Provide training to upgrade operations and maintenance skills Involve everyone and utilize cross-functional teamwork

What is Effective Maintenance?

PLANNED MAINTENANCE The scheduling of maintenance activities on a time based or usage basis regardless of the current performance levels of the equipment. PREVENTATIVE MAINTENANCE A systematic approach to eliminate catastrophic failure/breakdowns through regular care and attention, early diagnosis and rectification. PREDICTIVE MAINTENANCE A systematic approach utilising history and equipment condition monitoring to predict and prevent catastrophic failure/breakdowns. BREAKDOWN MAINTENANCE When all else fails ensuring that equipment availability is achieved in the shortest possible time whilst eliminating root cause faults with sustainable repairs. EFFECTIVE EQUIPMENT DESIGN A systematic approach to equipment design which maximises equipment availability, minimises life cycle costs and eliminates waste.

Overall Equipment Effectiveness ( OEE )

Overall Equipment Effectiveness (OEE) is a total measure of performance that relates the availability of the process to the productivity and quality. OEE is the Key Performance Indicator (KPI) for TPM. OEE will measure the impact of change on a process caused by eliminating process, or equipment losses. A World Class Company should achieve 85% OEE on key equipment.

The method distinguishes 6 loss types, and 3 categories: 1. Availability 2. Speed losses 3. Quality rate The method's strength is that it makes the losses more transparent, and from experience we know that a good analysis provides a very good "picture" of the actual situation, which helps to determine both short and longer term improvement activities, including quantified benefits from each of the improvements.

Gross Available hours Gross Available hours (#days/year: 365, 24 hours/day, 7 days/week) Planned Downtime For example: vacation, holidays, not 168 hours/week, not enough load. 1. Breakdowns/Machine failures Downtime because of machine failures 2. Setup and adjustment For example between product types, including "warmup time" after the actual changeover. Changeover time should be included here, and should not be included in the planned downtime. Changeover time can be reduced by applying the SMED System. 3. Small stops When these have not been causes by logistics. Small stops are typically shorter than 5-10 minutes. Small stops are typically minor adjustments, for example cleaning etc. This in contrast with machinefailures, where you will usually need maintenance personnel to solve it. 4. Speed losses Speed losses are caused when a machine runs more slowly than its optimal/maximum speed. 5. Rejects during production This includes all rejects and repairs during normal production, so after running in/warmup phenomena. 6. Rejects during running in/ warmup This includes all rejects and repair during startup/running in/ warmup.

Loss Elimination through TPM?

The calculation of the OEE index is as follows: Availability = (Planned production time - Unscheduled Downtime)/Planned production time The Production time = Planned production time - Dwontime The Performance = Cycle time x number of products processed/ Production time Now remains the Net Production time (= time products are produced) The Yield (Quality Rate) = (# processed products - # rejected products)/(# processed products) The OEE-index = Availability x Performance x Yield

Availability

Speed losses

Quality rate

Lean Workforce Practices

Teams
With identified goals and measured performance With rotation of highly specified jobs

Cross-trained and multi-skilled employees

Who can work many operations within a cell and operations in different cells

Continuous improvement philosophy

Process quality, not inspection Use of participatory decision-making processes
Gap analysis, team-based problem solving, project management, etc.

Implementation Success Factors

Unyielding leadership Strategic vision based on Lean enterprise as part of
company strategy

Observe outside successes and failures Ability to question EVERYTHING Deep commitment to EXCELLENCE Consistency Clear channels of communication

Comparison of Traditional vs. Lean

Traditional

Complex Forecast Driven Excessive Inventory Speed Up Value-Added Work Large Batch Production Long Lead Time

Lean

Simple and Visual Demand Driven Inventory as Needed Reduce Non-ValueAdded Small Lot Size Minimal Lead Time

Quality Inspected-in Functional Departments

Quality Built-in Value Stream Managers

Must Not
Flex Muscles Throw fits

Quality of a GOOD Leader

Must

Give up

Blame the worker Blame the Measure

Think of at least 7 ways to do better

Go to the Shop Floor

Kaizen your Standard Work

Show Boat Cover up Hide in the office Tamper with the Measure

Intimidate

Lead by Example

Empower the Team

Set goals Throw People at Problems

Have a vision Celebrate Success

Stress out

Create smoke screens

Grovel

Be clueless

Provide the right tools

Observe the process Find the Waste

Communicate direction

Steps to Create a Lean Entreprise

1. 2. 3. 4. 5. Specify value in the eyes of the customer Identify the value stream and eliminate waste Use a pull system that is triggered by the customer Involve and empower employees Continuously improve in the pursuit of perfection

Kaikaku
Kaikaku, does mean radical change, and is also the Kaizen Blitz, which came directly from Toyota. We must innovate and bring radical change in order to compete internationally today and then we put people into teams and encourage them to do continuous improvement. Ten Kaikaku commandments: "Throw out the traditional concept of manufacturing methods. "Think of how the new method will work; not how it won't work. "Don't accept excuses. Totally deny the status quo. " Don't seek perfection. A 50% implementation rate is fine as long as it is done on the spot. "Correct mistakes the moment they are found. "Don't spend money on Kaikaku. "Problems give you a chance to use your brains. "Ask 'Why' five times. "Ten person's ideas are better than one person's knowledge. Kaikaku knows no limits.

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Total Quality Management (TQM)

TQM is a management philosophy that seeks to integrate all organizational functions (marketing, finance, design, engineering, and production,customer service, etc.) to focus on meeting customer needs and organizational objectives. TQM must be practiced in all activities, by all personnel, in Manufacturing, Marketing, Engineering, R&D, Sales, Purchasing, HR, etc. Demings 14 Point Plan for TQM

Principles of TQM :
Management Commitment

1. Plan (drive, direct) 2. Do (deploy, support, participate) 3. Check (review) 4. Act (recognize, communicate, revise) Employee Empowerment 1. Training 2. Suggestion scheme 3. Measurement and recognition 4. Excellence teams Fact Based Decision Making 1. SPC (statistical process control) 2. DOE, FMEA 3. The 7 statistical tools 4. TOPS (FORD 8D - Team Oriented Problem Solving) Continuous Improvement 1. Systematic measurement and focus on CONQ 2. Excellence teams 3. Cross-functional process management 4. Attain, maintain, improve standards Customer Focus 1. Supplier partnership 2. Service relationship with internal customers 3. Never compromise quality 4. Customer driven standards