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Principles of Lean Manufacturing with Live Simulation

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  1. Principles of Lean Manufacturing with Live Simulation

  2. Course Agenda Welcome Introduction to Simulation Round One of Simulation Introduction to Lean Manufacturing Implementing Lean – Standardized Work, 5S System, Visual Controls, and Plant Layout Round Two of Simulation Implementing Lean – Teams, Quick Changeover, Batch Reduction, POUS, Quality @ Source Round Three of Simulation Implementing Lean – Pull/Kanban, Cellular Flow, TPM Round Four of Simulation Implementation Course Evaluation

  3. MEP Lean Websites http://www.mep.nist.gov For firms http://www.mepcenters.nist.gov For MEP centers only

  4. Recommended Readings • Lean Thinking, by Jim Womack • Becoming Lean, by Jeffrey Liker • The Machine That Changed the World, by Jim Womack and Daniel T. Jones • The Goal, by Eli Goldratt • World Class Manufacturing: The Next Decade, by Richard Schonberger • Others can be found on the Lean website

  5. Course Agenda Welcome Introduction to Simulation Round One of Simulation Introduction to Lean Manufacturing Implementing Lean – Standardized Work, 5S System, Visual Controls, and Plant Layout Round Two of Simulation Implementing Lean – Teams, Quick Changeover, Batch Reduction, POUS, Quality @ Source Round Three of Simulation Implementing Lean – Pull/Kanban, Cellular Flow, TPM Round Four of Simulation Implementation Course Evaluation

  6. Orientation Orientation to Buzz Electronics Enterprises (BEE)

  7. Product Catalog Buzz Electronics Enterprises

  8. Blue Avenger Basic model for everyday use Buzz Electronics Enterprises The Blue Avenger

  9. Red Devil Industrial model for commercial use Buzz Electronics Enterprises The Red Devil

  10. The Bottom Line $7.50/person/shift Labor cost: Facilities cost: $10.00/table/shift BEE The Blue Avenger Sells for $20 Materials cost $5.00 The Red Devil Sells for $30 Materials cost $7.50

  11. Production Process Orientation BEE • Sales Representative Processes “Customer Order” • Production Scheduler Generates “Factory Order” from forecast • Kitter(s) Organizes raw materials for “Factory Orders” • Material Handler Moves product between ALL workstations • Spring Assembler Inserts Springs • Resistor Assembler Inserts Resistors • LED Assembler Inserts LEDs • Diode Assembler Inserts Diodes Assembly • Inspector Conducts functional tests • Reworker Repairs failed boards • Warehouse/Ship Clerk Matches boards to “Customer Orders” • Instruction Crib Attendant Controls work instructions • Production Supervisor Supervises production • Industrial Engineer Monitors production process • Trucker Ships products to the customer

  12. Production Facility Orientation BEE Sales Office Production Control Kitting Area Shipping Dock Finished Goods Whse. Rework Area WIP Storage Diode Assembly Inspection Area LED Assembly Resistor Assembly Spring Assembly

  13. Circuit Board Orientation BEE Blue and Red Boards A B C D E 1 2 3 4 5 EXAMPLE: 1)Insert spring into‘C3’

  14. Product Components Orientation + + - - BEE Springs Resistors Diodes LEDs

  15. Product Routing 6v 6v TEST TEST LED x1 Resistors BEE Blue Springs Resistor Diodes LED x5 x1 x2 x1 Red Springs x5 x3

  16. 6v 6v Circuit Board Assembly BEE The Red Devil test A B C D E 1 2 3 4 5

  17. Production Batching BEE The Blue Avenger 6 per batch 4 per batch The Red Devil

  18. BEE Production Scheduling Process Shipments to customers Customer orders (demand) Customer order forms Production forecast Factory order forms Finished Goods Warehouse

  19. Customer Service Targets BEE Promisedshipments to customers Promised shipments to customers 4 minutes after order 5 minutes after order All orders are filled “first-in, first-out” (FIFO)

  20. Company Policies Buzz Electronics Enterprises • All shifts are 20 minutes • Keep busy at all times • Yell if you need parts • Handle all parts first-in, first-out (FIFO) • Only the Material Handler can move parts • Stay at your workstation • The boss is always right!

  21. Course Agenda Welcome Introduction to Simulation Round One of Simulation Introduction To Lean Manufacturing Implementing Lean -- Standardized Work, 5S System, Visual Controls, and Plant Layout Round Two of Simulation Implementing Lean – Teams, Quick Changeover, Batch Reduction, POUS, Quality @ Source Round Three of Simulation Implementing Lean -- Pull/Kanban, Cellular Flow, TPM Round Four of Simulation Implementation Course Evaluation

  22. Round One: Buzz Electronics Buzz Electronics is a traditional manufacturing company.

  23. Round One: Debrief • Discuss results • Discuss the process • Lessons learned • Relationship to real world • “What if” scenarios • Continuous improvement

  24. Course Agenda Welcome Introduction to Simulation Round One of Simulation Introduction To Lean Manufacturing Implementing Lean -- Standardized Work, 5S System, Visual Controls, and Plant Layout Round Two of Simulation Implementing Lean – Teams, Quick Changeover, Batch Reduction, POUS, Quality @ Source Round Three of Simulation Implementing Lean -- Pull/Kanban, Cellular Flow, TPM Round Four of Simulation Implementation Course Evaluation

  25. Mass Production Material LEDs Diodes Springs Shipping Receiving Warehouse Warehouse Storage Repair Kitting Testing Ship Value-Added Time : Minutes Time in Plant : Weeks ORDER CASH

  26. History of Manufacturing People Product Work Environment

  27. Cycle Time “One of the most noteworthy accomplishments in keeping the price of Ford products low is the gradual shortening of the production cycle. The longer an article is in the process of manufacture and the more it is moved about, the greater is its ultimate cost.” Henry Ford, 1926

  28. Lean Is Market Driven Every morning in Africa, a gazelle wakes up. It knows it must run faster than the fastest lion or it will be killed. Every morning a lion wakes up. It knows it must outrun the slowest gazelle or it will starve to death. It doesn’t matter whether you are a lion or a gazelle—when the sun comes up, you had better be running.

  29. Defining Lean Lean has been defined in many different ways. “A systematic approach to identifying and eliminating waste (non-value-added activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection.” The MEP Lean Network

  30. Definition of Value Added • Value Added • Any activity that increases the market form or function of the product or service. (These are things the customer is willing to pay for.) • Non-Value Added • Any activity that does not add market form or function or is not necessary. (These activities should be eliminated, simplified, reduced, or integrated.)

  31. Lean = Eliminating the Wastes Non-Value Added Value Added • Overproduction • Waiting • Transportation • Non-Value Added Processing • Excess Inventory • Defects • Excess Motion • Underutilized People Typically 95% of all lead time is non-value added

  32. Brainstorm Wastes What wastes were apparent in Buzz Electronics?

  33. Eight Wastes Overproduction motion Inventory Waiting Transportation defects Underutilized People Non-Value Added Processing

  34. Overproduction • Making more than is required by the next process • Making it earlier than is required by the next process • Making it faster than is required by the next process • Causes of overproduction • Just-in-case logic • Misuse of automation • Long process setup • Unlevel scheduling • Unbalanced workload • Over engineering • Redundant inspections

  35. Inventory Waste • Any supply in excess of a one-piece flow through your manufacturing process • Causes of excess inventory • Misconception that this protects the company from inefficiencies and unexpected problems • Product complexity • Unleveled scheduling • Poor market forecast • Unbalanced workload • Misunderstood communications • Reward system • Unreliable shipments by suppliers

  36. Defects • Inspection and repair of material in inventory • Causes of defects • Weak process control • Poor quality • Unbalanced inventory level • Deficient planned maintenance • Inadequate education/training/work instructions • Product design • Customer needs not understood

  37. Processing Waste • Effort that adds no value to the product or service from the customers’ viewpoint • Causes of processing waste • Product changes without process changes • Just-in-case logic • True customer requirements not clearly defined • Over-processing to accommodate downtime • Lack of communication • Redundant approvals • Extra copies/excessive information

  38. Waiting Waste • Idle time created when waiting for…? • Causes of waiting waste • Unbalanced work load • Unplanned maintenance • Long process setup times • Misuses of automation • Upstream quality problems • Unlevel scheduling

  39. People Waste • The waste of not using people’s mental, creative, and physical abilities • Causes of people waste • Old guard thinking, politics, the business culture • Poor hiring practices • Low or no investment in training • Low pay, high turn-over strategy

  40. Motion Waste • Any movement of people or machines that does not add value to the product or service • Causes of motion waste • Poor people/machine effectiveness • Inconsistent work methods • Unfavorable facility or cell layout • Poor workplace organization and housekeeping • Extra “busy” movements while waiting

  41. Waste of Transportation • Transporting parts and materials around the plant • Causes of transportation waste • Poor plant layout • Poor understanding of the process flow for production • Large batch sizes, long lead times, and large storage areas

  42. Lean Building Blocks Pull/Kanban Cellular/Flow TPM Quality at Source POUS Quick Changeover Standardized Work Batch Reduction Teams 5S System Visual Plant Layout Value Stream Mapping Continuous Improvement

  43. Course Agenda Welcome Introduction to Simulation Round One of Simulation Introduction To Lean Manufacturing Implementing Lean -- Standardized Work, 5S System, Visual Controls, and Plant Layout Round Two of Simulation Implementing Lean – Teams, Quick Changeover, Batch Reduction, POUS, Quality @ Source Round Three of Simulation Implementing Lean -- Pull/Kanban, Cellular Flow, TPM Round Four of Simulation Implementation Course Evaluation

  44. Round Two: Company Instruction Learn how to implement new Lean techniques • Standardized Work • 5S System • Visual Controls • Plant Layout

  45. Standardized Work • Operations safely carried out with all tasks organized in the best known sequence and using the most effective combination of these resources: • People • Materials • Methods • Machines

  46. Workplace Organization A safe, clean, neat, arrangement of the workplace provides a specific location for everything, and eliminates anything not required.

  47. Elements of a 5S Program • Sort—Perform “Sort Through and Sort Out,” by placing a red tag on all unneeded items and moving them to a temporary holding area. Within a predetermined time the red tag items are disposed, sold, moved or given away. “When in doubt, throw it out!” • Set in Order—Identify the best location for remaining items, relocate out of place items, set inventory limits, and install temporary location indicators. • Shine—Clean everything, inside and out. Continue to inspect items by cleaning them and to prevent dirt, grime, and contamination from occurring. • Standardize—Create the rules for maintaining and controlling the first 3 S’s and use visual controls. • Sustain—Ensure adherence to the 5 S standards through communication, training, and self-discipline.

  48. Visual Controls • Simple signals that provide an immediate understanding of a situation or condition. They are efficient, self-regulating, and worker-managed. • Examples: • Kanban cards • Color-coded dies, tools, pallets • Lines on the floor to delineate storage areas, walkways, work areas, etc. • Andon lights

  49. Plant Layout Ship QC Rec Raw Stock QC Screw Machine Shear Stamp Drill Lathe Assembly Brake Mill Weld Grind Finish Parts Stock

  50. Course Agenda Welcome Introduction to Simulation Round One of Simulation Introduction To Lean Manufacturing Implementing Lean -- Standardized Work, 5S System, Visual Controls, and Plant Layout Round Two of Simulation Implementing Lean – Teams, Quick Changeover, Batch Reduction, POUS, Quality @ Source Round Three of Simulation Implementing Lean -- Pull/Kanban, Cellular Flow, TPM Round Four of Simulation Implementation Course Evaluation