Implementing the Lean Transformation in a Flow Processing Environment. Derek Steeple De Montfort University

Transcription

1 Implementing the Lean Transformation in a Flow Processing Environment Derek Steeple De Montfort University

2 The Nature of Customers They pay the bills - usually They know what they want - most of the time If you have a need you have to buy If you have a product you can t necessarily sell it No customers - no business Sales and no profit - no business

3 Market Qualifying Criteria Required to enable a company to operate in a market place

4 Order Winning Criteria If a company is qualified to operate in a market place order winning criteria are those factors which have to be satisfied to have a possibility of winning an order

5 QCD Performance Measures PPM not right first time Value added per employee (VAPE) Overall equipment effectiveness (OEE) Stock turns Floor space utilisation People productivity (PP) Delivery schedule adherence

6 What is World Class Manufacturing? Being the best? Being the lowest cost producer? Delighting the customer? Schonberger s Agenda?

7 What is World Class Manufacturing? Product quality right first time - every time Reduction of waste in the manufacturing system Managing through people, teamworking and orientating all individuals to a set of customer- and profit-driven goals Flexibility and control in satisfying customer requirements on time - every time

8 World Class and Lean The Lean Transformation is seen today as the best way of achieving World Class Objectives

9 The 7 Wastes Scrap Waiting Inventory Motion Transportation Over production Over processing

10 The Value Stream Company infrastructure Personnel management Profit margin Technological development Acquisition Logistics Operations Marketing & Sales Service Primary activities

11 A Lean Manufacturing System What it is What the benefits are How to do it Case studies

12 Roots of Lean Thinking in Toyota Post-war rebuilding of Japanese industry Study of American Auto industry Mass production, large-batch Fordism wouldn t work Market was small Manufacturing flexibility was needed Ingenious people created simple tools

13 Toyota Philosophy and Framework 1 Doing it all for the Customer Levelled production Pull system Continuous-flow processing Takt Time Multiskilling

14 Toyota Philosophy and Framework 2 TQM TPM PokaYoke AQP SPC Standardised work Kaizen

15 What is Lean Manufacturing Lead time reduction Regular production New products Flexibility improvement Variability reduction Cost reduction

16 Characteristics of Lean Production Customer Driven Profit Driven Team Based Fewer Players Devolution of Responsibility

17 Characteristics of Lean Supply Total acquisition cost driven Supplier reduction Co-operative relationships Information Exchange

18 Benefits of Lean Manufacturing Increased customer satisfaction Improved profitability More controllable system

19 There are only two ways to improve business performance Increase turnover Reduce costs

20 There are only two ways of increasing turnover Sell more Charge more

21 There are only three ways of reducing costs Reduce direct material costs Improve production effectiveness/efficiency Increase the rate of adding value

22 Typical Cost Distribution (Automotive sector) 15% labour 50% raw material 35% overhead Essential to concentrate on lean production, lean supply and the rate of adding value (lean overheads)

23 Case Studies An automotive veneer-component manufacturer A coconut and nut processor A non-ferrous foundry supplying the automotive and aerospace industries.

24 Case Study Veneer Trim Primary and secondary manufacture were decoupled due to a lacquering process with a 3- day, post-finish cure time. The rest of manufacturing also having a process focus. 5 pre-lacquer functional areas, 6 post lacquer functional areas. The final operation was known as Finals inspection not assembly.

25 Analysis of Waste Identified Scrap Inadequate product costing Poor productivity High WIP Poor customer service As the main problems.

26 Solution The factory was relayed out using product-focused manufacturing cells No more Finals Visual management systems backed up by a spreadsheet-driven production and capacity planning system. Available to Promise facility to understand the consequence of imposed short-term schedule changes A performance reporting facility for calculating real-time product profitability using elements of throughput accounting principles

27 Case Study Coco(nut) Processor A combination of flow processing and batch manufacturing The main problems were poor planning, high raw material stocks poor customer service. A manual visual management manpower and machine planning system was implemented and TPM techniques were utilised to improve process reliability.

28 Case Study Foundry The main flow line produced the main casting box however was supplied by mould cores from a batch-manufacturing area of PLC-controlled, core-blowing machines In addition secondary flow line and small batch motorsport areas supplied from this latter area

29 Problems High customer returns High scrap Poor overall equipment effectiveness Poor customer delivery performance Poor control of core WIP

30 Solutions Line balancing techniques were used to improve the flow of work Kaizen techniques involving operators from the front and back ends of the production line were implemented to eradicate process waste. A spreadsheet-based capacity planning system using Drum-Buffer-Rope techniques was developed and used to improve machine utilisation and ensure there was sufficient WIP to supply the line.

31 Sequence to Implement a Lean Initiative Culture change Use of Champion Waste mapping Measurement Implementation Evaluation

32 Establishing a Foundation for Lean Manufacturing 1 Strategy Commitment Objectives Communication Empowerment Establish framework Activity plan, cost, time and execution Measurement and evaluation system

33 Establishing a Foundation for Lean Manufacturing 2 No blame culture Education and Communication Top down alignment process Bottom up enabling process Selection of flexible teams and Champion

34 How to Implement Lean Manufacturing 1 Process Mapping Manufacturing Business / information Relationships / change Measurement and Prioritisation

35 How to Implement Lean Manufacturing 2 Tools / Techniques / Philosophies JIT One piece flow SMED Poka Yoke TQM Visible management Transparent cost structure Activities team based

36 Implementing Lean Supply Commitment to supply chain improvements Increase rate of adding value Open behaviour and open book Intra- and inter-organisational problem solving teams Shared benefits

37 Making the Business Case for a Lean Manufacturing System Cost benefit analysis Costs Development/investigation Implementation Project specific Benefits Improved customer satisfaction Improved profitability More controllable system

38 The Costing Myth Cellular manufacturing must increase unit costs Machinery and equipment must be duplicated Certain skills are finite Aha!

39 The Costing Reality of Functional Layouts Encourage overproduction, poor quality Extend lead times Reduce visibility Over-complicate scheduling Increase WIP Make finished goods difficult to control Don t focus on problem solving

40 Justifying a Lean System Identify manufacturing labour variances Identify overtime Identify scrap Identify cost of rectification Identify WIP Cost customer service

41 Justifying a Lean System Forget standard costing Examine before and after actual costs Identify costs of change Identify Kaizen opportunities post-change SMED TPM Scrap and rework

42 Six Conditions for Success Strategy Development and policy deployment Process Improvement Problem Solving Team Work Supply Development New Product Development

43 Summary Strategy that encompasses business [profit] objectives and customer order winning [and maintaining] criteria Achieve short-term, KPI-driven improvements consistent with the strategy Plan and act for sustainable change