LEAN FLOW TECHNOLOGY

- MODULE LFT101 - LEAN FLOW TECHNOLOGY STRATEGY FOR YOUR FUTURE

STRATEGY FOR YOUR FUTURE PURPOSE Lean Flow Technology Definition. Elimination of Wasting. Benefits. Market Share. Margin. Pay-Back. Traditional Organization Vs. Process Organization. Measurable Results. 20 Major Steps. Quality Productivity Inventory Turnover. Transition to Lean Flow Technology Roadmap.

An Advanced Manufacturing Technology based upon a Production Flow Process that Pulls Material into and through the Process in Response to Customer Demand. LFT Precursor to "Business Reengineering"

LEAN FLOW ATw #Op = TAKT TECHNOLOGY TAKT = ATw = H(S) Σ Dc Σ ( Dc x AT ) Σ Dc

ELIMINATION OF WASTING ELIMINATION OF NON-VALUE ADDED ACTIVITIES NON-VALUE ADDED : If it doesn't add value in the Eyes of Customer. We should target it for ELIMINATION.

7 TYPES OF WASTES 1. Overproduction ahead of Demand. 2. Waiting for the next process step or information. 3. Transporting materials unnecessarily. 4. Inventory that is more than bare minimum. 5. Over Processing. 6. Motion by Employees that is unnecessarily. 7. Producing non-conforming Parts.

BUT THE MUST STUPID IS 8. Not Utilizing the Talent and Knowledge of HUMAN RESOURCES.

CUSTOMERS SATISFACTION "Promise the Best, and Deliver What is Promised" Our Customers. Our Investors. Our Partners. Our Associates.

METHOD OR MAGIC? LFT is a Method. LFT provides a Focus. LFT provides at the Management Commitment an Opportunity for Change.

" TO BOOST PROFITS" Reduces Cycle Time. Improves Flexibility. Improves Quality. Improves Productivity. Reduces Rework and Scrap. Improves Response Time. Reduces Space. Reduces Investment. Reduces Inventory. MARKET SHARE GAINS MARGIN IMPROVEMENT PAY-BACK IMPROVEMENT

" BY PRODUCING IN DEMAND" F.G.I. F.G.I. LEAD TIME LEAD TIME Week(s) Day(s)

TRADITIONAL MANUFACTURING Steel Part Dept Coils Dept Final Ass'y - 3 Copper Dept Coils Feeder Copper Feeder Mixed-Model Main Line Final Ass'y - 1 Final Ass'y - 2 Control Panels Dept Steel Parts Feeder Panels Feeder

TOYOTA PRODUCTION SYSTEM LEAN FLOW TECHNOLOGY Total Business Strategy. Designed for all Discrete and Process Industries. Driven by Actual Demand. Adjust Product Mix Daily. Carry some Raw Materials for flexibility with Minimal In-process and Finished Goods. Zero Working Capital. TOYOTA PRODUCTION SYSTEM Production System. Designed for Paced Lines Automobile Industry from the 70 s & 80 s. Driven by Forecasts. Changing the Product Mix Requires Line Design Changes and Re-training. Focus to Raw Material with massive expensive Finished Goods. Just-In-Time Raw Materials.

HIERARCHICAL ORGANIZATION LIMITATIONS Focused on Tasks and Activities. Hierarchical Structure vs. Process. Slow and Unresponsive.

PROCESS ORGANIZATION Enabling Process Human Resources Systems Finance Legal LFT PROCESSES Strategy Development Order Acquisition Order Fulfillment Customer Service Idea Concept Proposal Order Inquiry Concept Product Order Payment Resolution CUSTOMERS Centers of Excellence "Coach" Engineering "Coach" Financial "Coach" Marketing "Coach" Manufacturing

TRADITIONAL ORGANIZATION ORDER FULFILLMENT PROCESS Marketing Finance Manufacturing Order Entry Finance Credit Check Logistic Scheduling Inventory Availability Invoice Collections Shipping Production

LFT ORGANIZATION ORDER FULFILLMENT PROCESS Metrics : External : Quality. On-Time Delivery. Internal : Cycle Time. Costs. Inventory Turns. ONE PROCESS LFT Order Entry Credit Check Manufacturing SUB-PROCESSES Shipping Invoicing Collections CUSTOMERS

PROVIDES Step by Step Process. Mathematical Basis. Not subjective. One Manufacturing Language. Customers Lean Technology. Flexible System to make Any Model, Any Day, to Customers Demand. Mixed-Model Manufacturing Power. Measurable Results. TAKT = H(S) Σ Dc Fully Supported by ORACLE Flow Manufacturing (R.11). Demand Management, Mixed-Model Line Design & Balancing, Production Execution and Kanban Management. ORACLE Flow Manufacturing is a registered trademark of Oracle Corporation

MEASURABLE RESULTS Reduction in Injuries-Rate : 10-15%. Reduction in Non-Quality Costs : 5-20%. On-Time Delivery Improvement : 98%. Reduction in Work In Process : >70%. Space Savings : 25-35%. Capacity or Productivity Improvement : 25-50%. Reduction in Cycle Time : >60%. "Double Digit" Inventory Turns. Flexible Employees, Trained and Certified.

NEXT MANUFACTURING GENERATION

WORKING SMARTER NOT HARDER Training - Certification Flexible Employees Simple, Visual Signals PLANT A T : In Training C : Certified M : Master François Alain Peter Zlimir Henri Gilles Steve Assembly 1 Bending Coils Test Tubes Brazing Seq. # 22227777-000 / 22227777-CDT / 33338888-000 / 33338888-CDT Overlap Process Proof Test Vacuum HFC22 Insulation Montage 2 Final Test Packing C C C C T C M C C M C C C M M M M M M C C M C CProduct P/N COFFRET ELECTRIQUE TWK 530-536 NBL/NBL-OC M C M M C C M M C C C C C C M C C M M M C T C M T Task T C M T C C M C T M C M T 10 Déballer passe-fils 0.2 Mach Labor D/S Qty I/E Mach Labor Mach Labor D/S Qty I/E Dist. TQC Process I.D. Assemblage Coffret Description 20 Engager passe-fils droit dans tôle coffret X 0.2 30 Fixer contacteur 24V - 1 vis - 1 rondelle - 1 fil de terre X 0.6 X Type 45CG20AJ / 45FG20AJ 40 Fixer contacteur 24V - 1 vis - 1 rondelle X 0.3 50 Fixer relais de démarrage sur support - 1 vis X 0.6 X A l'opposé du pli. Taille 530 : Type 3ARR3CT1OV5 Taille 536 : Type 3ARR3CT6A5 60 Fixer S/Ens. Relais sur tôle coffret - 2 vis X 0.3 0.5 Relais à l'intérieur du coffret 70 Fixer condensateur ventilateur - 1 Ecrou (Gauche) X 0.5 A gauche - Marquage visible - 4µF 80 Raccorder Fil N 7 sur condensateur ventilateur (Gauche) X 0.3 Cosse M/F sur borne Gauche X 90 Raccorder Fil N 7 sur contacteur puissance X 0.3 Cosse M/F sur borne Centre/Droite Au centre - Marquage visible 100 Fixer condensateur compresseur - 1 Ecrou X 0.6 VA DEMAND FLOW TECHNOLOGY Setup Required Move Taille 530 : 35µF Taille 536 : 40µF 110 Fixer S/Ens. Support borniers - 2 vis X 1.0 Côté gauche au ras du pli. 120 Raccorder Fil N 2 sur condensateur compresseur X 0.3 X Borne Inférieure/Gauche 130 Raccorder Fil N 2 sur bornier puisance X 0.3 Borne Repère "N" 140 Raccorder Fil N 21 sur bornier puissance X 0.3 X Borne Repère "L" 150 Raccorder Fil N 20 sur bornier puissance X 0.3 X Borne Repère "N" 160 Raccorder Fil N 6 (Rouge) sur bornier puissance X 0.3 Borne Repère "N" 170 Raccorder Fil de Terre (V/J) sur bornier puissance X 0.3 Borne Repère "Terre" 180 Raccorder Fil N 4 (Noir) sur contacteur puissance X 0.3 X Borne Haut/Supérieur/Gauche. 190 Raccorder Fil N 5 (Bleu) sur condensateur compresseur X 0.3 Borne Droite. 200 Evacuer S/Ensemble Coffret 0.1 0.2 Quality Criteria OP01 OP02 OP03 OP04 OP05 OP06 OP07 OP08 OP09 RIP02 Ergonomic Implementations OP11 OP12 OP32 OP31 RIP02 OP21 RIP01 Graphic Methods Safety Tools

20 MAJOR STEPS 1. Organization. 2. Identification of Products. 3. Product Synchronization. 4. Mixed-Model Process Map. 5. Demand at Capacity Dc. 6. Factors Influencing Demand. 7. Sequence of Events. 8. Mixed-Model Line Design. 9. Family of Products. 10.Response Optimization. 11.Operational Definition. 12.Kanban Management. 13.Operational Method Sheets. 14.Physical Implementation. 15.Employees Involvement. 16.Daily Demand Management. 17.Daily Staffing Flexibility. 18.Continuous Improvement. 19.Suppliers Management. 20.Key "LFT Measures". 1..2..3..4..5..6..7..8..9..10..11..12..13..14..15..16..17..18..19..20

ENABLING "KEY GOALS" "Zero Defect" Quality : SOE's, Training and Certification, Method Sheets. Verify, TQC, "Touch for Quality", POKA-YOKE, Feedback from Quality Criteria on SOE's. ISO9000 Certification. Safe Workplaces. Ergonomic Implementation reduces Number of Accidents. Flexibility reduces the Repetitive nature of Work. Employees Development. We Invest in Training while empowering our Associates to Manage and Improve our Processes.

QUALITY DEFECTS ANALYSIS FOCUS TEAMS PROCESS RE-DESIGN (POKA-YOKE) PRODUCT RE-DESIGN SUPPLIER QUALITY ENGINEERING STATISTICAL PROCESS CONTROL LFT+ SIX SIGMA METHODS VERIFY AND TQC's SEQUENCE OF EVENTS REENGINEER FLOW TRAINING CERTIFICATION

PRODUCTIVITY ORGANIZE TEAMS DESIGN FOR MANUFACTURING SEQUENCE OF EVENTS REENGINEER FLOW ELIMINATE NON-VALUE ADDED REDUCE THE LITTLE WAITS ALL DAYS HOLES IN PROCESS FOCUS AND MEASURE TRAINING CERTIFICATION VERIFY AND TQC's FLEXIBLE WORKSTATIONS

INVENTORY TURNOVER CERTIFIED SUPPLIERS CONSIGNMENT INVENTORY SUPPLIERS DAILY DEMAND MANAGEMENT FOCUS AND MEASURE RESULTS LINE DESIGN KANBAN MANAGEMENT >QUALITY <REWORK <TPc/t FEWER SUPPLIERS SUPPLIER DEMAND VISIBILITY MANAGE FGI DOWN DAILY DEMAND MANAGEMENT Not METHOD

TRANSITION ROADMAP Phase 1 Adopt LFT Thinking Phase 2 Organization & Education Phase 3 Data Gathering Phase 4 Application & Line Design Phase 5 Shop Floor Rearrangement Phase 6 Improvement Phase 7 Performance Measures Build Company Strategy Foster LFT Learning Make the Commitment Obtain Management Full Buy-in Phase 8 Perfection Remove Barriers Maintain & Improve the Level of LFT Expertise Deploy LFT Methodology no later than Product Definition Phase Define Core Objectives & Scope of of Project Select Project Leader Define Benefits Inform & Communicate the Stakes of of Project Select Product & Process Team Leader Select Implementation Team Members Define Project Milestones Train Implementation Team to to LFT Prepare Evolution of of Employees Train all all Employees Eliminate NVA Institute 5S Improve Quality Institute Kaizen Events Implement the Design for Manufacturing concept Identify Products Define Demand at at Capacity List Material used to to make each Product Identify Processes Draw Current Value Stream Maps & Product Synchronization Create Mixed-Model Process Map Validate Demand at at Capacity Collect all all Factors Influencing Demand Define Product Families Select Representative Products Write Standard SOE's for all all Representative Products Define Changeover & Setup Times Encourage "Key" Suppliers to Implement LFT Methodology Review Modify BOM's Calculate Takt-Time Validate all all Standard SOE's Calculate Line Design Optimize Cycle Times Finalize Product Synchronization Write all all SOE's Calculate Validate Final Line Design Define Pull Sequences & Types of of Kanbans Define Validate Inventory Strategy Calculate Kanban Quantities Define Operations & Resources Draw Operational Method Sheets Define Operators Abilities Define Validate Capital Expenditure Plan & ROI Define Validate Implementation Milestone Plan Draw Validate Implementation Lay-Out Build Transition Stock of of Finished Goods Define Rules & Procedures Cross-Train Operators Implement Cells and Lines Implement Kanbans and Supply with Material Build & Implement Work-In-Process Implement Visual Control Systems Adapt Computer Systems to to One Piece Flow Production Management Organize Flexibility of of Operators Reassign Operators Re-deploy Assets Start-Up Lines & Cells Measure Performance Involve Employees Eliminate Reduce Waste Manage Daily Customer Demands Associate "Key" Suppliers to to Kanban Management Improve Flexibility of of Operators Reduce Optimize Setup Times Implement SMED Eliminate Quality Criteria (TQC) Implement Poka-Yoke Implement TPM Achieve Processes Control (SPC) Analyze Performance Measures Certification Program

ATw #Op = TAKT Discuss Philosophy Seq. # Overlap H(S) TAKT = Product P/N COFFRET ELECTRIQUE TWK 530-536 NBL/NBL-OC DEMAND FLOW TECHNOLOGY 22227777-000 / 22227777-CDT / 33338888-000 / 33338888-CDT Task VA Mach Labor D/S Qty I/E S Dc Setup Required Move Mach Labor Mach Labor D/S Qty I/E Dist. TQC Process I.D. Assemblage Coffret Quality Criteria Description 10 Déballer passe-fils 0,2 20 Engager passe-fils droit dans tôle coffret X 0,2 30 Fixer contacteur 24V - 1 vis - 1 rondelle - 1 fil de terre X 0,6 X Type 45CG20AJ / 45FG20AJ 40 Fixer contacteur 24V - 1 vis - 1 rondelle X 0,3 50 Fixer relais de démarrage sur support - 1 vis X 0,6 A l'opposé du pli. X Taille 530 : Type 3ARR3CT1OV5 Taille 536 : Type 3ARR3CT6A5 60 Fixer S/Ens. Relais sur tôle coffret - 2 vis X 0,3 0,5 Relais à l'intérieur du coffret 70 Fixer condensateur ventilateur - 1 Ecrou (Gauche) X 0,5 A gauche - Marquage visible - 4µF 80 Raccorder Fil N 7 sur condensateur ventilateur (Gauche) X 0,3 X Cosse M/F sur borne Gauche 90 Raccorder Fil N 7 sur contacteur puissance X 0,3 Cosse M/F sur borne Centre/Droite Au centre - Marquage visible Implement Technology. X 0,6 Taille 530 : 35µF Taille 536 : 40µF X 1,0 Côté gauche au ras du pli. X 0,3 X Borne Inférieure/Gauche X 0,3 Borne Repère "N" X 0,3 X Borne Repère "L" X 0,3 X Borne Repère "N" X 0,3 Borne Repère "N" X 0,3 Borne Repère "Terre" 100 Fixer condensateur compresseur - 1 Ecrou 110 Fixer S/Ens. Support borniers - 2 vis 120 Raccorder Fil N 2 sur condensateur compresseur 130 Raccorder Fil N 2 sur bornier puisance 140 Raccorder Fil N 21 sur bornier puissance 150 Raccorder Fil N 20 sur bornier puissance 160 Raccorder Fil N 6 (Rouge) sur bornier puissance 170 Raccorder Fil de Terre (V/J) sur bornier puissance 180 Raccorder Fil N 4 (Noir) sur contacteur puissance X 0,3 X Borne Haut/Supérieur/Gauche. 190 Raccorder Fil N 5 (Bleu) sur condensateur compresseur X 0,3 Borne Droite. 200 Evacuer S/Ensemble Coffret 0,1 0,2 John Costanza JcIT Institute of Technology Inc.

SUMMARY LFT Definition. LEAN FLOW TECHNOLOGY STRATEGY FOR YOUR FUTURE Elimination of Wasting. Benefits. Market Share, Margin, Pay-Back. Traditional Organization Vs. Process Organization. Measurable Results. 20 Major Steps. Quality Productivity Inventory Turnover. Transition to Lean Flow Technology Roadmap.

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