best management practices for smes
DESCRIPTION
ideas for lean implementationTRANSCRIPT
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Best Management Practices for SMEsPresented by:Dr. Vinod KumarFeb 12, 2002
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Number of People Employed in Manufacturing Firms*Number of PeopleNumber of BusinessesPercent Employed
0-4130,046395-961,1671810-1962,8971920-9967,05719100-49916,475 4500+ 4,923 1________Total342,565100*Source: Small Business Administration, 1996
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A Typical Small BusinessServing a few customersMake-to-order operationsSeldom build to stockRarely able to forecastHundreds of part numbersKeeping customer happy through High Quality, Fast Delivery, and Good Price Enviable value-added ratios
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Lean...A Working DefinitionA 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
Quoted from the MEP Network
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Another Lean Definition Doing more with less:MaterialsElectricitySpacePaperworkTransportationWasteEffort
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Lean manufacturing techniquesTotal organizational buy-inSales, production, inventory planningTotal quality managementLean Enterprise Key DriversVision
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Chart1
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Sales, Production, Inventory Management
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Sales, Production, Inventory Management
Lean
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Goal
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Lean Manufacturing Techniques
Quality
Quality
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Total Quality Management
TOB
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Total Organizational Buy-in
all charts
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Lean Manufacturing TechniquesTotal Organizational Buy-inSales, Production, Inventory ManagementTotal Quality Management
LMTGoalActualTOBGoalActualSPIPGoalActualTQMGoalActual
Value stream mapping108Vision106PQR analysis108SPC106
Takt time107Action plan107Forecasting107Best practices107
One-piece flow106Policy deployment108Production smoothing108Process control108
Pull system107Enfranchisement108Kanban107Poka-yoke108
SMED (setup)108Performance-based pay108Supermarket106Waste reduction108
OEE108Skills training107Visual pull signals1085-S107
Flow velocity108CI culture108Capacity planning108ISO 9000 structure108
Productivity (labor cost)107Kaizen promotion office107Standard WIP108Quality assurance107
Facility layout108Morale108Inventory turns104Problem-solving tools108
Standard work107Visuals/communication107Product introduction102Supplier quality106
Jidoka (autonomation)108Lean training106Delivery performance108Information flow107
Machine reliability107Change management108First-pass quality108
TPM106WIIFM (incentives)108Prevention vs. detection108
Value-added ratio108Safety focus108
Line balancing108Profitability104
Handling reduction108Team building103
Sustainment of gains108Effective leadership109
Right-sized equipment109
all charts
Goal
Actual
Lean Manufacturing Techniques
Total Organizational Buy-in
Sales, Production, Inventory Management
Total Quality Management
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Lean Manufacturing Techniques012345678910Value Stream MappingTakt timeOne-piece flowPull systemSMED (setup)OEEFlow velocityProductivity (labor cost)Facility layoutStandard workJidoka (autonomation)Machine reliabilityTPMValue-added ratioLine balancingHandling reductionSustainment of gainsRight-sized equipment
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1 x Weekly
50,000 pieces weekly
Warehouse
Telecommunications
Inventory
Veneer prep planning
Shipping
Shipscommon carrier
Clipper
Long pine is hardto handle, slowsdown theoperation
Butt joint
CT calculated per 100
Fleecebacker
CT calculated per 100Butt joint tape runs upside down28 m/min
Sand
CT calculated per 10023 m/min(greatly depends onlength)
Package
100 pieces per bag20% waste betweenFB and pack
Staging
Total staging area27,000 ft2; thisproduct requires4,050 ft2 (15%)
CT 240 sec
SU N/A
UT 2-3 shifts/week
7,000 pieces/shift(should be 13,500)
I5,000pieces
CT 700 sec
SU 5 min
UT 90% D/S
10,000 pieces/shift
CT 575 sec
SU 3 min
UT 80% D/S
12,200 pieces/shift
CT 240 sec
SU 5 min
UT 100%/D 80%/S
12,750 pieces/shift
CT 333 sec
SU 3 min
UT 100%/D 40%/S
9,000 pieces/shift
I4 rolls
I21 rolls
I3,000pieces
I25,000ft2
I250,000ft2
15 min
1 day
4 hour
2 hour
1 day
1 day
1 day
2 hr
Value StreamAnalysis
Planning
Daily lineups(work assignments)
Note: 50% yield on log run pine
Warehouse
Warehouse
Warehouse
Warehouse
Warehouse
Warehouse
Warehouse
Telecommunications
Packaging
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Value Added vs. Non-value AddedValue added: Transforms raw material and information into parts or products
Non-value added: Consumes resources but does not contribute directly to the production of materials or product
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Typical Value-added % of Lead TimeValue-added activities 5%Non-value added activities 95%
Chart2
5
95
Sheet1
5
95
Sheet1
Typical Value-added %of Lead Time
Sheet2
Sheet3
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Chart3
106106106106
107107107107
108108108108
108108108108
108108108108
107107107107
108108108108
107107107107
108108108108
106106106106
107107107107
108108108108
108108108108
Total Quality Management
Sales
Sales
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Sales, Production, Inventory Management
Lean
Lean
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108
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106
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Goal
Actual
Lean Manufacturing Techniques
Quality
Quality
106106106106
107107107107
108108108108
108108108108
108108108108
107107107107
108108108108
107107107107
108108108108
106106106106
107107107107
108108108108
108108108108
Total Quality Management
TOB
TOB
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104
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Total Organizational Buy-in
all charts
1234
Lean Manufacturing TechniquesTotal Organizational Buy-inSales, Production, Inventory ManagementTotal Quality Management
LMTGoalActualTOBGoalActualSPIPGoalActualTQMGoalActual
Value stream mapping108Vision106PQR analysis108SPC106
Takt time107Action plan107Forecasting107Best practices107
One-piece flow106Policy deployment108Production smoothing108Process control108
Pull system107Enfranchisement108Kanban107Poka-yoke108
SMED (setup)108Performance-based pay108Supermarket106Waste reduction108
OEE108Skills training107Visual pull signals1085-S107
Flow velocity108CI culture108Capacity planning108ISO 9000 structure108
Productivity (labor cost)107Kaizen promotion office107Standard WIP108Quality assurance107
Facility layout108Morale108Inventory turns104Problem-solving tools108
Standard work107Visuals/communication107Product introduction102Supplier quality106
Jidoka (autonomation)108Lean training106Delivery performance108Information flow107
Machine reliability107Change management108First-pass quality108
TPM106WIIFM (incentives)108Prevention vs. detection108
Value-added ratio108Safety focus108
Line balancing108Profitability104
Handling reduction108Team building103
Sustainment of gains108Effective leadership109
Right-sized equipment109
all charts
Goal
Actual
Lean Manufacturing Techniques
Total Organizational Buy-in
Sales, Production, Inventory Management
Total Quality Management
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Quality System ManagementSpokes of TQM wheel symbolize a few critical indicators used to measure how well a company has addressed the quality aspects of doing business.Some Routine TQM Tools
Spaghetti diagramValue stream mappingLinearity charts (productivity and waste)Ishikawa diagram (cause and effect)Quality mapsProcess flow diagramsPareto analysis
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MudaWaste
Activities that absorb resources but create no value
Antidote: Lean thinking
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Waste Causes (In no particular order)Facility layoutExcessive setup timesIncapable processPoor preventive maintenanceUncontrolled work methodLack of training BoredomProduction planning/schedulingLack of workplace organization Lack of supplier quality and reliabilityLack of concern (accountability)
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Waste Causes (continued)
Passing on defective partsNot communicating improvementsOverproductionInventoriesMotionNon-value-added processesTransportationWaitingCounting
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Arrive at work
Drive to work
Eat Breakfast
Make lunch
Take shower
Yes
no
Press snooze button
Alarm clock rings
Getting to work
Process Flow Chart
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Deployment Flow Chart
_1028971689.doc
Pours coffee
Removes
coffee cup
Pays for
coffee
Washes cup
Dishwasher
Drinks coffee
Takes order
for coffee
Seats
customer
Makes coffee
Greets
customer
Enters
restaurant
Cook
Waitress
Customer
_1028971858.doc
Pours coffee
Removes
coffee cup
Pays for
coffee
Washes cup
Dishwasher
Drinks coffee
Takes order
for coffee
Seats
customer
Makes coffee
Greets
Customer
Customer
Enters
restaurant
Cook
Waitress
Customer
_1028971899.doc
Pours coffee
Removes
coffee cup
Pays for
coffee
Washes cup
Dishwasher
Drinks coffee
Takes order
for coffee
Seats
customer
Makes coffee
Greets
Customer
Customer
customer
Enters
restaurant
Cook
Waitress
Customer
_1028971853.doc
Pours coffee
Removes
coffee cup
Pays for
coffee
Washes cup
Dishwasher
Drinks coffee
Takes order
for coffee
Seats
customer
Makes coffee
Greets
customer
Enters
restaurant
Cook
Waitress
Customer
_1028971624.doc
Pours coffee
Removes
coffee cup
Pays for
coffee
Washes cup
Dishwasher
Drinks coffee
Takes order
for coffee
Seats
customer
Makes coffee
Greets
customer
Enters
restaurant
Cook
Waitress
Customer
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Spaghetti Diagram
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Pareto Chart Example
Chart1
48.2647058824
44.3235294118
5.4411764706
5.2941176471
4.6764705882
4.6176470588
2.4117647059
2.3529411765
2.2058823529
Minutes per day
Embark Downtime Causes
Sheet1
34 data pointstotals29-Jan28-Jan20-Jan19-Jan16-Jan15-Jan14-Jan13-Jan12-Jan7-Jan6-Jan5-Jan2-Jan30-Dec24-Dec23-Dec22-Dec19-Dec18-Dec17-Dec16-Dec15-Dec12-Dec11-Dec10-Dec9-Dec8-Dec4-Dec3-Dec2-Dec1-Dec26-Nov25-Nov24-Nov
reruns (infeed)48.31454555253045300020350110555779725701153580110018111953646322930530
setup time per day44.341501835174158726711612530814048551950751936101759962401535255037010
mechanical (seal booth)5.465120
jamb ups (seal booth)5.3715745911135210762956453839343924
jamb ups (buffing room)4.7149858244102646104684724572846
jamb ups (fancoater 2,4)4.62775269444664417964105275461110
grader (outfeed)2.415251032
mechanical (printer)2.450101010
mechanical (oven #1)2.2372
&CEmbark Downtime Nov 24-Jan 29
Sheet1
Minutes per day
Embark Downtime Causes
Sheet2
Sheet3
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Quality Map
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Ishikawa Diagram Example
Reasons for re-runs at Embark
Materials
Machines
Manpower (people)
Method
Management
Mother NatureFlat jambs (edges rough)Off-shore pineA splits inside step isroughBowed woodRequires lots of attentionSorting out flaws at printer corners is notergonomically soundCorners require too muchattention, other things getmissedNarrow applicator rolls transferink incorrectly to rabbitPrinter splattersStick and rag method ofcleaning splatterLighting a feed stationmay not lend itself tosorting out potentialreworkLeaky roof (cardboardcontainment)Viscosity variation in fancoating when it rains(humidity?)
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Chart2
106
107
108
108
108
107
108
107
108
107
106
108
108
108
104
103
109
Total Organizational Buy-in
Sales
Sales
108
107
108
107
106
108
108
108
104
102
108
Sales, Production, Inventory Management
Lean
Lean
108
107
106
107
108
108
108
107
108
107
108
107
106
108
108
108
108
109
Goal
Actual
Lean Manufacturing Techniques
Quality
Quality
106106106106
107107107107
108108108108
108108108108
108108108108
107107107107
108108108108
107107107107
108108108108
106106106106
107107107107
108108108108
108108108108
Total Quality Management
TOB
TOB
106
107
108
108
108
107
108
107
108
107
106
108
108
108
104
103
109
Total Organizational Buy-in
all charts
1234
Lean Manufacturing TechniquesTotal Organizational Buy-inSales, Production, Inventory ManagementTotal Quality Management
LMTGoalActualTOBGoalActualSPIPGoalActualTQMGoalActual
Value stream mapping108Vision106PQR analysis108SPC106
Takt time107Action plan107Forecasting107Best practices107
One-piece flow106Policy deployment108Production smoothing108Process control108
Pull system107Enfranchisement108Kanban107Poka-yoke108
SMED (setup)108Performance-based pay108Supermarket106Waste reduction108
OEE108Skills training107Visual pull signals1085-S107
Flow velocity108CI culture108Capacity planning108ISO 9000 structure108
Productivity (labor cost)107Kaizen promotion office107Standard WIP108Quality assurance107
Facility layout108Morale108Inventory turns104Problem-solving tools108
Standard work107Visuals/communication107Product introduction102Supplier quality106
Jidoka (autonomation)108Lean training106Delivery performance108Information flow107
Machine reliability107Change management108First-pass quality108
TPM106WIIFM (incentives)108Prevention vs. detection108
Value-added ratio108Safety focus108
Line balancing108Profitability104
Handling reduction108Team building103
Sustainment of gains108Effective leadership109
Right-sized equipment109
all charts
Goal
Actual
Lean Manufacturing Techniques
Total Organizational Buy-in
Sales, Production, Inventory Management
Total Quality Management
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Lean manufacturing techniquesTotal organizational buy-inSales, production, inventory planningTotal quality managementLean Enterprise Key DriversVision
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Managing ChangeFive Critical Needs for Bringing Change:VisionSkill (training)Incentive (acknowledge efforts, recognize accomplishments, offer feedback)ResourcesAction plan
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Thank You
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