LEAN MANUFACTURING. Mark Sheffer, Vice President, Operations, Tyco Plastics, Covington, GA

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1 LEAN MANUFACTURING Mark Sheffer, Vice President, Operations, Tyco Plastics, Covington, GA What is it with the world today? Everyone wants to be thin!...skinny is sexy...lean is Mean... Society seems to be obsessed with staying fit and trim. You see it in magazines, on billboards, on television, and in the theater...everywhere! But it hasn't always been that way. From ancient times, through the Middle Ages, even into the early part of the modem era, larger was generally thought to be better...more desirable. Just look at art history. It is awash with full figured beauties, both on canvas and in stone. Why are we now, all of a sudden, so fascinated with the lean physique?,:- ~... -.,.~ Perhaps it is because modem medicine has shown us that obesity is inversely related to personal health. Similarly, the business world, and more specifically the manufacturing sector, has discovered that, indeed, lean is better. The Lean Enterprise is healthier, more efficient, more responsive, more adaptable, and yields products and services of higher quality and greater value. Companies that have fully embraced the concepts of this progressive new approach to doing business have gained a significant competitive advantage in the global economy. Is Lean Manufacturing just another flash-in-the-pan management fad? Was it created just to give management consultants another opportunity to pick up valuable fee days from clients, who feel they must keep their companies at the bleeding edge and measure success by how well they use the latest buzzwords? Absolutely not. As a matter of fact, Lean Manufacturing is really nothing new. It simply combines the best of the progressive management techniques introduced over the past 30 years into one simple model. The key word here is simple...simple to understand, simple to implement, and simple to maintain.., and it works! Lean Manufacturing has been defined in many ways but perhaps the best characterization is that it is: "A systematic approach to identifying and eliminating waste (non-valuable added activities) through continuous improvement, by flowing the product at the pull of the customer in the pursuit of perfection"(mep Lean Network 14). A value added activity is any activity, which increases the market form or function of the product or service. Conversely, a non-value added activity is any activity that does not add market form or function, or, more simply stated, not necessary. Waste comes in many forms. Since Lean Manufacturing's main focus is the elimination of waste, methods of elimination vary accordingly. The eight common forms of wastes in the manufacturing process are waste of motion, overproduction, inventory, waiting, defects, transportation, extra processing, and underutilization of manpower. The information in Table I describes these forms of waste and their causes. 343

2 I Table 1. "8 Manufacturing Wastes" Form Overproduction- making more than & required by the next process Inventory- any supply in excess of a one-piece flow through the manufacturing process Defects- inspection and repair of material in inventory Extra Processing- effort that adds no value to the product or service from the customers' viewpoint Waiting idle time created when waiting for...? Manpower- the waste of not using people's mental creative, physical skills & abilities Motion- any movement of people or machines that does not add value to the product or service Transportation- transportation of parts and materials around the plant Causes Just-in-case logic, misuse of automation, long process set-up, unlevel scheduling, unbalanced workload, over engineered, redundant inspections Protects the company from inefficiencies and unexpected problems, product complexity, unleveled scheduling, poor market forecast, unbalanced workload, unreliable shipments by suppliers, misunderstood communication, reward systems Weak process control, poor quality, unbalanced inventory level, deficient planned maintenance, inadequate education/training/work instructions, product design, customer needs not understood Product changes without process changes, just-in-case logic, true customer requirements undefined, over processing to accommodate downtime, lack of communications, redundant approvals, extra copies/excessive information Unbalanced workload, unplanned maintenance, long process set-up times, misuses of automation, upstream quality problems, unlevel scheduling Old guard thinking, politics, the business culture; poor hiring practices; low or no investment in training; low pay, high turn over Poor people/machine effectiveness, inconsistent work methods, unfavorable facility or cell layout, poor workplace organization and housekeeping, extra "busy" movements while waiting Poor plant layout; poor understanding of the process flow for production; large batch sizes, long lead times, and large storage areas 344

3 i What strategies and specific tools are used to eliminate waste using the Lean Manufacturing approach? As indicated in Figurel and Table 2 below, many of the building blocks of Lean Manufacturing are not original, but came from many different techniques developed and introduced independently over the past 30 years by a host of visionary management experts. Lean Manufacturing's main contribution is that it brings the best of these concepts into a fully integrated, simplistic approach of reducing costs and increasing value. _-.---._.,, ---. ~... ~... 1on:...::,~.::- _--~,,,, _..'.".~_ Figure 1. Lean Building Blocks 345

4 Table 2. Lean Building Blocks -i Strategies/Tools Standardized Work Workplace Organization Visual Controls Plant Layout Source Teams POUS Pull~anban Takt Time Quick Changeover Cellular Description Operations safely carried out with all tasks organized in the best-known sequence and by using the most effective combination of people, materials, methods, and machines. A safe, clean, neat, arrangement of the workplace that provides a specific location for everything, and eliminates anything not required. The "5 S" program: sort; straighten; shine; spread; standardize. Simple signals that provide an immediate understanding of a situation or condition that are efficient, self-regulating, and worker managed. Examples: Kanban cards; Color-coded dies; tool, pallets; Lines on the floor to delineate storage areas, walkways, work areas, etc.; Andon lights. Based on process flow; cellular structure. Minimizes transportation of materials. Process Control instead of Acceptance Sampling. Emphasizes cooperation. Point of use storage of equipment and materials. Simplifies scheduling, reduces WIP, and assures that quality problems are addressed on a real time basis. Matches labor requirements with the demand rate. Critical path analysis helps reduce downtime associated with changeovers. Objectives are to create a flexible layout with visual management, minimal material handling, and makes 100% use of people. 346

5 Implementation of a Lean Manufacturing initiative begins with education. It is human nature to resist change, therefore the first step in training is to help everyone gain a vision of the road ahead and understood his or her role in the new order. Perhaps the most effective approach is to have the workforce participate in an interactive, hands-on simulation, which involves the actual Lean Manufacturing transformation of a "classroom factory." Many NIST Manufacturing Extension Partnership centers around the country are currently offering Lean Manufacturing 101 to industry. Many of these seminars feature hands-on, interactive, simulations in which participants play the role of factory workers and actually participate in the Lean transformation. Through successive Kaizen events, they help drive waste out of the manufacturing system using the techniques of Lean Manufacturing. By the end of a 6-hour session, it is not uncommon to see a work cell of three participants producing more units than 30 participants produced earlier in the session, with a tenfold reduction in defect level. Now we are talking buy-in!?. It is a small step from the simulation to the factory floor. Most associates fully embrace the opportunity to have a positive impact, both on their individual jobs, and on the success of the company. It is very important that an achievable, yet highly visible issue is addressed during the first Lean initiative. After an early win, just step back and watch your plant become a Lean Factory. Acknowledgements The Manufacturing Extension Partnership Network. Principles of Lean Manufacturing With L&e Simulation. Huntsville" Alabama Technology Network, Womack P., James, and Daniel T. Jones. Lean Thinking. New York: Simon and Schuster,