Lean Manufacturing and Automation: what’s the relationship?

1. Lean Manufacturing and Automation: what’s the relationship? Bashar Abdo Bosch Rexroth Corporation Linear Motion and Assembly Technologies

2. Presentation outline • The confusion of “Lean” • Simply Lean • Common lean misconceptions • Automation and lean • Conclusion Linear Motion and Assembly Technologies

3. Why the Confusion • The glut of lean on the information superhighway • The profitable commercialization of the lean enterprise • Outsourcing the lean implementation • Knee-jerk dismissal of automation without a proper “TCO” evaluation • Highly complex/diversified manufacturing processes due to competitive pressures • Inadequate understanding and analysis of “Waste” and “Value add” • Companies today • Are trying to do too much with too little • Possess inadequate understanding of the concept of lean • Are trying to conform to the letter rather than the spirit of the philosophy Linear Motion and Assembly Technologies

4. Are we confused yet? One Piece Flow First Time Quality Zero Defects Lean Plus TQM Waste Reduction Just in Time Team work Pull Operator Empowerment Automation = Waste Flexibility 7 W’s Continuous improvement Efficiency Takt Time Value Stream Mapping Team work Six Sigma 5 S’s Kanban 3 P’s BlackBelt TPM MTO Kaizen Linear Motion and Assembly Technologies

5. What is Lean Manufacturing? A manufacturing concept designed to provide the optimum framework for efficient, competitive production. The lean production system is a management philosophy that embraces all aspects of industrial operations by focusing on the reduction of waste from the value stream to remain competitive in a world driven economy Linear Motion and Assembly Technologies

6. The “Value Add” and “Waste” debate • ANDON systems • Office space and layout • Ergonomics (chairs / work cells / automated VS. manual adjustability) • Sophisticated MES systems • Amenities / perks / necessities vs. luxuries • Total reliance on human flexibility (poor system execution, wasted motion, walking, time away from work) • Company receptionist • Training /Marketing /R&D • Automation • Offshore outsourcing- A quick lean fix One size does not fit all We need to be careful not to propagate or implement lean ideas without compelling evidence to their necessity Linear Motion and Assembly Technologies

7. The Warning Wrong or inadequate understanding of the lean philosophy has not only led to confusion but also to wasteful manufacturing practices in the name of “Lean”. Linear Motion and Assembly Technologies

8. Lean - Specific Misconceptions • Misconception: Lean principles apply to the shop floor only, without consideration of the total enterprise • A full understanding of the lean manufacturing principles and cultural ramifications is essential for a successful outcome • The adoption of the Lean environment needs to flow from the top down not vice versa. • Haphazard implementation may lead to minor and temporary improvements, but will not succeed in bringing a company-wide philosophy shift that is necessary for a long term sustained growth • Biggest improvements come from applying lean principles to all parts of the enterprise. • Bottlenecks are not always on the shop floor - manufacturing bottlenecks tend to be more visible Linear Motion and Assembly Technologies

9. Lean - Specific Misconceptions • Misconception: Lean principles along with OEE metrics automatically lead to quality improvements • Quality metrics are not always clearly defined and quantified • Cost of Quality should not be scaled evenly with production cost and the cost of non-conformance. • A full analysis of the process with a comprehensive FMEA is required before making process changes due to OEE study results Linear Motion and Assembly Technologies

10. Lean - Specific Misconceptions • Misconception: Lean principles can be fully applied for the short term without proper future consideration • A future –oriented enterprise should evaluate all current developments in light of future goals and objectives • Product development and R&D should not be left out. Bottom line for now without future considerations is a recipe for disaster Linear Motion and Assembly Technologies

11. Lean - Specific Misconceptions • Misconception: Lean = Reduced cost or “less of everything” • Yes, But: • A narrow financial view can interfere with true lean initiatives. • Less of everything is a double edged sword • The leaner the enterprise the more exposed and vulnerable to rapid shifts in the market • Always consider future contingencies in your lean implementation Linear Motion and Assembly Technologies

12. Lean - Specific Misconceptions • Misconception: Elimination of Conveyance technology is essential to lean production • Rationale • Inefficient use of space “Cost of square foot” • But • When every inch of space is fully utilized there will not be room for operators to move freely to perform their functions nor for service personnel to perform routine maintenance • Cost of space, although significant, is relative to location, application, manufacturing methods, product, country and continent. (Japan and Europe) • Full automation is impossible without the efficient use of conveying technology Linear Motion and Assembly Technologies

13. Lean - Specific Misconceptions • Misconception (cont.): Elimination of Conveyance technology is essential to lean production systems • Rationale • Additional cost of Conveyor when operators are available to perform the added motion • Have we considered the cost of ergonomics, insurance, fatigue, loss of production time, impact of walking and added motion on the total cycle time? • Rationale • Conveyors are “non value add” or “Waste” • That depends on the size or weight of the product • System cycle time / Production Takt time • The extent of use of the conveyor • Have you done a comparative ROI analysis? Linear Motion and Assembly Technologies

14. Lean - Specific Misconceptions • Misconception:“U”-shaped work cells are necessary for lean production Rationale • Operators are in close proximity to each other ( facilitate communication and camaraderie) • Too much of a good thing • Works better in eastern cultures • Operator size and personal space needs • Rationale • Necessary to isolate incoming and outgoing goods • Straight line production may provide the same or better product flow. • Design of the cell should consider the easy movement of the operators within the cell • Production layout should optimize the use of space, not add more constraints. • Don’t follow the “letter of the law” to the detriment Linear Motion and Assembly Technologies

15. Lean - Specific Misconceptions • Misconception: The use of fully automated assembly lines is not lean • Rationale • Initial cost of investment (Capital) • Cost is relative to ROI • What about high volume production? • Manual production does not always equal improved quality • Rationale • Dedicated nature of assembly equipment • Flexible use of robotics in automation negates the argument of dedication • Design, define and purchase flexible automation with the future in mind • Study and factor in the cost of future system re-tooling (Don’t be lazy, do your homework) Linear Motion and Assembly Technologies

16. Lean - Specific Misconceptions • Misconception (cont.): The Use of fully automated assembly lines is not lean • Rationale • Shorter product life cycles • Cost analysis needs to be performed for ROI prior to investment • Does not apply to all types of products and/or processes • Does not apply for high volume production • Rationale • Inefficient use of Shop floor (shape and style of automation) • Speed of automation allows for full utilization of time and space • Have you (really) explored all available options? Linear Motion and Assembly Technologies

17. To automate or not to automate? That is the question Linear Motion and Assembly Technologies

18. JAPAN Geography Questions • Which country is the largest user and implementer of the lean philosophy? • Which country is the largest user of automation? • Which country is the largest user of robotics? Linear Motion and Assembly Technologies

19. The Japanese Model Data taken from World Robotics ISSN 1020-1076 Linear Motion and Assembly Technologies

20. Rules of Thumb • Automated production and parts transfer is always the right choice when justified through cost cutting and increased process reliability. • Don’t try to automate for image sake. Some production processes are simply economically “un-automatable” • Perform a thorough analysis of your “waste” in light of your own business goals. Don’t give up your uniqueness to try to fit in. • The combination and balance of manual and automated manufacturing is the job of the manufacturing engineers and should be closely scrutinized for applicability, fit and function. • Justifiable robotic automation provides the necessary flexibility to react to the constant shift in demand and production capacity requirements. • Multiple shift production should be automated, if possible. • Semi-automated work cells with manual loading and unloading should be avoided unless required for quality reasons. Linear Motion and Assembly Technologies

21. Rules of Thumb • No two systems are the same. One size does not fit all. • Carefully consider the cultural differences. • Processes that require constant or regular adjustment or decisions are definitely human processes. • If we make the human into a machine, why not use a machine? • Precision assembly should be automated • Redundant tasks may require automation • Dangerous or non-ergonomic tasks should be automated • Eg. Soldering (fumes) • Cold environments • Multi-shift operations (one system vs. 3 operators) – Automation is justified in most three-shift operations Linear Motion and Assembly Technologies

22. Summary Guidelines Predictable Quantity Requirements, High Volume Predictable product Mix Long production Cycle Uncertainty in Product Mix Uncertain Quantity Requirements, Low Volume Linear Motion and Assembly Technologies

23. Beware of Lean? • Possible dangers arising from misinterpretation of the Lean theory: • Discouragement of innovation in automation technology • Reduction of the technical and sophisticated work force in the US • Getting left behind while the rest of the world moves forward with technology • Reduction of expert and technical training • Reliance and dependence on manual labor to lead the future of manufacturing in the US • Taking a step backwards and relinquishing our lead in the evolution of manufacturing technology Automation is the reason for the boom of the American economy in the past century. Don’t confuse lean thinking with regression Linear Motion and Assembly Technologies

24. Conclusion A true lean operation is created when both customers and investors are fully satisfied • Automation is critical to lean manufacturing due to miniaturization, increased quality demands, sophisticated product designs, increased use of clean room manufacturing, and competitive global economy. Linear Motion and Assembly Technologies