PROFIT SOLUTION SEMINAR November Lean Manufacturing and Dowel Construction for the Cabinet and Furniture Industry

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1 PROFIT SOLUTION SEMINAR November 2009 Lean Manufacturing and Dowel Construction for the Cabinet and Furniture Industry

2 Implementing Lean Manufacturing for the Cabinet and Furniture Industry Phil Mitchell North Carolina State University Wood Products Extension November 2009

3 Congratulations on Attending This Seminar!

4 Today s Learning Objectives REVIEW LEAN BASICS More work will be needed to make your company lean. Business improvement always sought LEAN IS A JOURNEY Becomes a way of life Not an easy journey

5 What advantages do domestic manufacturers have? ADVANTAGES

6 What is Lean Manufacturing? Lean is a manufacturing system focuses on customer provide a product

7 What is Lean Manufacturing? Strategy derived from Toyota Production System Key Thrust Increase value-added work by eliminating waste reducing incidental work

8 What are the benefits to your company of being Lean?

9 What are the manufacturing benefits of being Lean? Reduction of lead time Operational flexibility Increased productivity Reduction of work-in-process inventory Improved quality Increase floor space

10 The Key Lean Concepts Eliminate WASTE Only add VALUE to your product Understand your product s VALUE STREAM Create FLOW in your process Organize your VALUE STREAM to be continuous Create PULL in your process Only respond to downstream customer demand Pursue PERFECTION Relentless continuous improvement

11 Value Concept What defines value in your product?

12 Waste Concept What is Waste? Anything that adds cost and does not add value Non-value activity, such as: wait time unnecessary motion rework excess inventory

13 Value Added vs. Non-value Added Value added Any activity that physically changes the material Cutting Ripping Boring Non-value added Moulding Gluing Fastening Finishing Sewing Assembly Any activity that consumes resources but does not physically change the material. Stacking Sorting Searching Counting Set-up Warehousing Hogging Conveying Waiting

14 Value vs. Waste Key Lean Concept Any human activity which absorbs resources but creates NO VALUE Commit your professional life to remove WASTE and you approach LEAN The most dangerous kind of waste is the waste we do not recognize. - Shigeo Shingo

15 Types of Waste (7 + 1) Defects repairing of mistakes, rework Over Production making things that are not immediately needed Waiting production delays Non-value added processing steps doing more than what the customer wants (over processing) Transportation non value step often caused by inefficient workplace layout Inventory unnecessary raw materials, work in process, and finished goods inventory Motion poor workplace design resulting in inefficient or unnecessary human motion Employees as a resource (underutilized) D O W N T I M E = W A S T E

16 The Key Lean Concepts Value defined by the final customer. Value Stream the combination of all the tasks required to manufacture a product 1. Information management 2. Physical transformation 3. Product concept Flow Pull Perfection

17 The Key Lean Concepts Value defined by the final customer. Value Stream the combination of all the tasks required to manufacture a product. Flow the goal of continuous process flow Reduce wait time to zero Opposite of batch processing Pull Perfection

18 The Key Lean Concepts Value - defined by the final customer. Value Stream the combination of all the tasks required to manufacture a product. Flow reduce the amount of time that any work waits to zero. Pull Replacing batch processing with process flow in place, lead time is sharply reduced Customer pull the number and type of product Perfection

19 The Key Lean Concepts Value defined by the final customer. Value Stream the combination of all the tasks required to manufacture a product. Flow reduce the amount of time that any work waits to zero. Pull customer pulls the number and type of product from the manufacturer as needed. Perfection the goal of continuous improvement. Never achieved or lean journey over Process and technological advantage

20 Lean Factory Requirements Process Stability Factory Flow Continuous Improvement Path

21 Process Stability Produce consistent results over time Required to create lean processes. Instability due to variability in process. Variability may be due to People Equipment Product Materials

22 Process Stability Tools What tools can we use? Workplace Organization Increase Operational Availability Identifying Process Instability Production Leveling Visual Controls

23 Does your shop/ factory look like this?

24 The 5S System Sort remove what is not needed Set in Order make what is needed easy to find Shine and Inspect clean and repair; methods, schedule, assign, Standardize develop system (rules) to maintain what has been done Sustain self discipline, communication, commitment to maintain established procedures

25 First S - Sort Throw Away and Purge How often do you use it? Arrange the workplace for accessibility Separate and Scrap

26 Red Tag Technique DATE: CATEGORY: Raw Material WIP Finish Goods Tools RED TAG TAG NO: Equipment Furniture Office Material Books / Mags Supplies Others DESCRIPTION OF ITEM: LOCATION: REASON TAGGED: QUANTITY: DISPOSITION REQUIRED: Discard Reduce Quantity Store in Area Sell / Transfer Store Other (Specify) Remotely There are five steps: 1. Prepare Red Tags 2. Attach Red Tags to unneeded items 3. Remove Red-tagged items to a temporary holding area 4. Evaluate red-tagged items and decide the outcome 5. Dispose of items

27 The 5S System

28 Second S Set in Order The objectives of Set in Order are: Decide and organize tools (things) How and where to keep Easy to find and use Obvious when missing

29 Second S Set in Order Everything has a place and is in it s place when not in use. Courtesy of Great Lakes Industry, Inc. Example of a tool stand Courtesy of Archfield Consulting

30 Second S Set in Order Notes lines on floor and staged carts Cart Store Fixture Mfg Conveyor Furniture Mfg Organized Assembly Area

31 Third S Shine and Inspect Cleanliness, Inspection and Repair Scrub, clean, paint Inspect for missing bolts, wires, leaks, safety hazards. Fix things Clean filters, check gauges. Integrate daily maintenance activities

32 Third S Shine and Inspect Before After

33 Fourth S Standardize Develop Standards to ensure workplace organization is maintained. Everyone should participate Everyone must adopt and follow standards Only after prior three S s are complete Maintain & improve Developing visual and written statements

34 Fifth S Sustain To make 5S a habit: Develop new awareness and skills. Management support Ongoing, company-wide communication. 5S part of daily work. Total employee involvement. Self discipline

35 Process Stability Tools What tools can we use? Workplace Organization Increase Operational Availability Identifying Process Instability Production Leveling Use of Visual Controls

36 Increase Operational Availability Questions to address: How often does equipment break down? How long are setups? Does equipment start and stop too often? Does equipment run at 100%? What speed does equipment need run? Do you manufacture quality products?

37 Increase Operational Availability Total Productive Maintenance TPM assigns basic maintenance to team members Inspection, cleaning, lubrication, and tightening TPM Goals: Develop equipment knowledgeable operators Create well-engineered equipment Create an environment for enthusiasm and creativity Maximize equipment productivity and capacity

38 Increase Operational Availability Setup Time Reduction Single Minute Exchange of Dies (SMED) Goal: Reduce setup to under 10 minutes (single digit minutes) Two types: 1.Internal Set-up: Activities performed when machine is shut down. 2.External Set-up: Activities performed while the machine is running

39 Process Stability Tools What tools can we use? Workplace Organization Increase Operational Availability Identifying Process Instability Production Leveling Use of Visual Controls

40 Process Stability and Instability Process Stability Capability to produce consistent results over time. Basic process stability is needed to begin creating lean processes. Process Instability Variability in the process.

41 Process Instability High degree of process variation Pieces produced Pieces per labor hour. Changing the plan when a problem occurs Stopping work on one order to change to another order Starting work on an order before all materials ready Work-in-process (WIP) variation Frequent use of the words: usually, normally, typically

42 Process Stability Tools What tools can we use? Workplace Organization Increase Operational Availability Identifying Process Instability Production Leveling Use of Visual Controls

43 Production Leveling Distributing production volume and mix evenly over time. Leveling the production mix will: Shorten the lead time Reduce finished goods and WIP inventories Reduce unevenness and strain on personnel Help determine resource requirements Leveling achieved by Process control and management Mix customer orders (build-to-order) Finished goods produced (build-to-stock)

44 Process Stability Tools What tools can we use? Workplace Organization Increase Operational Availability Identifying Process Instability Production Leveling Use of Visual Controls

45 Visual Factory Create visual systems Workplace will speak Identify problems Minimize errors Communicate about: Work environment Safety Operations Storage Quality Equipment

46 Factory Flow Pull System Kanban Customer Demand Rate Value Stream Mapping Production Flow & Production Leveling

47 The Pull System PULL or Just-in-Time Developed to provide what is needed when needed quantity needed. Characteristics of the Pull System: Simple - Visual Use only what is required Limit inventory

48 Avoid the Push System Traditional manufacturing system Just in case concept Push product thru factory Big inventory buffer Between suppliers In the factory Between customers and factory.

49 Flow Example Part Family found in many casegood SKU s: Parting Rails Such As: Top End Rails Bottom End Rails Top Side Rails Bottom Side Rails Common Processes: Mould Trim & Tenon Bore Sand

50 Traditional (Batch) Factory Flow WIP WIP WIP WIP WIP WIP WIP WIP WIP Moulder Moulder Moulder Moulder WIP WIP WIP WIP Machining Department (portion) WIP WIP WIP WIP WIP WIP Double End Tenoner WIP WIP WIP WIP Double End Tenoner WIP WIP WIP WIP WIP WIP WIP WIP WIP WIP WIP WIP WIP WIP WIP WIP V e r t i c a l B o r i n g Sanding Department WIP WIP WIP WIP WIP WIP WIP WIP WIP WIP WIP WIP WIP WIP WIP WIP Products transported long distances Large batch sizes Large Work-in-Process levels Long lead times Defects passed on Operators are single process oriented Slow product flow

51 Cellular Factory Flow Parting Rail Cell Parting Rail Blanks Infeed Moulder Table Double End Tenoner Vert. Boring Sanding Table Exit Machined Parting Rails Processes grouped together Small lot sizes Reduced Work-in-Process levels Rapid changeovers required Machine reliability a must Fast product flow shorter lead times Defects prevention Multi-functional operators

52 JIT System The goal of JIT is to make value flow so that the customer can pull. Two components of JIT are:

53 Kanban System Kanban (kon bon) System of visual tools Synchronize and provide instruction Kanban- Requirement to be visual. Card Empty bin Empty space on floor Empty pallet Ping pong balls, etc

54 Single Card Withdrawal Kanban System Product from Production W Withdrawal Card W W To Customer W W Withdrawal Collection Box

55 Customer Demand Rate (Takt Time) Rate needed to produce a part or product based on customer s order rate. Calculation: Takt Time = Work Time Available Number of Units Sold Work Time Available: total scheduled time less planned breaks Number of Units Sold over same time period as Work Time Available. Takt Time = 8 hours per day 100 units per day = sec 100 units = 288 sec per unit ( 4 min 48 sec ) The goal is to produce parts based on Customer Takt Time

56 Value Stream Mapping Tool to create a process map that includes major process steps and information flow. Flow depicting information and process Value Stream Map can be done at total factory level or single process level. Key metrics Process Steps Inventory Waste Cycle Time Yield Changeover Time.

57 Value Stream Mapping From Lean Production Simplified

58 Select a Product Family Group of products that pass through similar processing steps or common equipment. Specific product line Manufacturing cell Product Family

59 Production Flow Analysis Raw Data Part Style Mould Tenon Trim Router Bore Dovetail Shape End Rail 207 X X X X Drawer Front 207 X X X End Panels 207 X X Pilaster 207 X X Top 207 X X Pilaster 259 X X Base Support 259 X X X End Panels 259 X X X Top 259 X Top Rail 259 X X X X Information from route sheets Sort and group by common operations Start with most common parts or products

60 Production Flow Analysis Sorted Data Part Style Mould Tenon Trim Router Bore Dovetail Shape End Rail 207 X X X X Top Rail 259 X X X X Pilaster 207 X X Pilaster 259 X X Base Support 259 X X X End Panels 207 X X Top 207 X X End Panels 259 X X X Drawer Front 207 X X X Top 259 X

61 Production Leveling Produce in smaller quantities to be more aligned with actual customer consumption. Self imposed leveling Manufacture at an ideal smoothness Highest degree of flexibility Responsiveness to changing customer demand. Slow and steady production can beat fast and jerky production (think turtle vs. hare).

62 Production Leveling Requires precise timing and flexibility Problems cause delays and must be addressed Requires frequent changeovers Force equipment setup times to be reduced. Employees may be uncomfortable Higher level of performance required Difficult to implement Humans wired to avoid risks Avoidance costs money and is NOT Lean.

63 Resistance to change

64 Production Leveling But The Lean process.. Structures manufacturing and support systems Identifies areas that require effort & management Minimizes risks Smoothes the production process Allows more time for Continuous Improvement.

65 Toyota Model From class notebook dated 5/89

66 Continuous Improvement Path Lean Production a path that one follows needs to be approached with humility quest for lifelong learning profound respect for people.

67 From The Toyota Way Fieldbook

68 Lean Resources Lean Thinking (1996, 2003) by James P. Womack and Daneil T. Jones. The Toyota Way (2004) by Jeffrey Liker The Toyota Way Fieldbook (2006) by Jeffrey Liker and David Meier Lean Production Simplified (2002) by Pascal Dennis Lean Manufacturing for the Small Shop (2001) by Gary Conner

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