beyond lean operational excelence in mro
TRANSCRIPT
7/23/2019 Beyond Lean Operational Excelence in Mro
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©2014 Duggan Associates. All Rights Reserved.
dugganinc.com
Beyond Lean: AchievingOperational Excellence
in MRO
Kevin J. Duggan, President
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© 2 0 1 4 D u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
Kevin J. DugganPresident, Duggan Associates
• Speaker, author, and educator in applying advanced
lean techniques to achieve Operational Excellence
• Author of three books:
– Design for Operational Excellence: A Breakthrough Strategy for
Business Growth – Creating Mixed Model Value Streams
– The Office That Grows Your Business: Achieving Operational
Excellence in Your Business Process
• Kevin has assisted many major corporations
worldwide including United Technologies Corporation,
FMC Technologies, Caterpillar, Singapore Airlines, IDEX
Corporation, GKN, Parker Hannifin and more.
• Kevin has been published in over 30 trade and
consumer publications and has appeared on CNN and
the Fox Business Network.
© 2 0 1 4 D u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
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© 2 0 1 4 D u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
Pop Quiz
How will you achieve OperationalExcellence?
A. Continuous improvement activities
B. Improve utilization of resources
C. Global sourcingD. All of the above
E. None of the above
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© 2 0 1 4 D u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
Pop Quiz
Continuous improvementactivities are done to:
A. Eliminate waste
B. Improve productivity
C. Increase efficiencyD. All of the above
E. None of the above
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© 2 0 1 4 D u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
Companies have done continuous
improvement activities for years…
Continuous Improvement
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© 2 0 1 4 D u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
Continuous Improvement
Pareto
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A l l R i g h t s R e s e r v e d .
Continuous Improvement
Impact
Effort
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u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
Lean Thinking ... Womack & Jones
Lean thinking is about
having each employee see
waste and eliminate it.
It is about developing a
culture of continuous
improvement.
Its about flowing Value to
the customer1996
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A l l R i g h t s R e s e r v e d .
The Jump to OperationalExcellence
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A l l R i g h t s R e s e r v e d .
The Lean Journey
Sustain
Improve
Sustain
Improve
Sustain
Improve
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A l l R i g h t s R e s e r v e d .
Mature lean company
Operational Excellence
Time in Years
L e v e l o f i m p r o v e m e n t
1 5 10
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A l l R i g h t s R e s e r v e d .
Operational Excellence
Operational Excellence
Time in Years
L e v e l o f i m p r o v e m e n t
1 5 10
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u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
Operational Excellence
Operational Excellence
Time in Years
L e v e l o f i m p r o v e m e n t
1 5 10
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© 2 0 1 4 D
u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
Answering the Tough Questions…
The Jump to OperationalExcellence
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© 2 0 1 4 D
u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
Why do you do Continuous Improvement?
In Your Operation…
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u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
How do you know where to improve next?
In Your Operation…
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© 2 0 1 4 D
u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
Why do you strive to create end-to-end flow?
In Your Operation…
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u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
What causes the death of flow?
In Your Operation…
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u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
What would your shop floor look like if you
applied every CI tool?
In Your Operation…
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© 2 0 1 4 D u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
What would your office look like if you
applied every CI tool?
In Your Operation…
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© 2 0 1 4 D u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
What would your supply chain look like
if you applied every CI tool?
• On the receiving dock?
• On the supplier’s shipping dock?
• In production control?
In Your Operation…
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© 2 0 1 4 D u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
Where will your lean journey take you?
In Your Operation…
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© 2 0 1 4 D u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
1. Why do you do Continuous Improvement?
2. What is the best way to do Continuous Improvement?
3. How do you know where to improve next?
4. Why do you strive to create flow?
5. What causes the death of flow?
6. What would your shop floor look like if you applied every CI tool?
7. What would your office look like if you applied every CI tool?
8. What would your supply chain look like if you applied every CI tool?
9. Where do you believe your lean journey will take you?
Nine Tough Questions
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© 2 0 1 4 D u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
“Each and every employee can see the flow
of value to the customer, and fix that flowbefore it breaks down.”
Operational Excellence
SM
Kevin J. Duggan
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© 2 0 1 4 D u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
Operational Excellence
Does your operation ‘Start’ every time?
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© 2 0 1 4 D u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
Operational Excellence
And if you could, how would you
spend your time?
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© 2 0 1 4 D u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
The Eight Steps to AchieveOperational Excellence
1. Design a lean flow using lean guidelines.
2. Implement a lean flow.
3. Make the lean flow visual.4. Create standard work for the lean flow.
5. Make abnormal flow visual.
6. Create standard work for the abnormal flow.
7. Teach employees to maintain and improve the flow tothe customer.
8. Free management to work on offense.
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D u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
Operational Excellence
Step 1: Design Lean Value Streams
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D u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
Design Lean Value Streams
Product
Family
Definition
Current StateMap
Future State Map
Implementation
Plan
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D u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
Part Number S a w
( x 2 )
G r i n d ( x 2 )
D r i l l
M i l l ( x 3 )
M a c h i n e D e b u r r
H e a t T r e a t
C N C L a t h e 1
C N C D u a l S p i n d l e L a t h e
M a n u a l D e b u r r
H o n e
P o l i s h
S t a m p
C a r b u r i z e
S u b A s s e m b l y
P a i n t
F i n a l A s s e m b l y
T e s t
I n s p e c t i o n
S h i p
767-577 x x x x x x A x A x x x x458-743 x x x x A x x A x x x x x
187-192 x x x x x A x x x x x x
199-225 x x x x x x x A A x x x x
281-849 x x A x x x x x x x
981-156 x x x x x x A x A x x x x
623-405 x x x x A x x A x x x x x
606-723 x x x x A x x A x x x x x
689-529 x x A x x x x x x x
554-086 x x x x x A x x x x x x
345-008 x x x x x x x A x x x x x418-690 x x A x x x x x x x
583-930 x x x x A x x A x x x x x
565-451 x x x x x x A x A x x x x480-231 x x x x A x x A x x x x x
212-660 x x x x x A x x x x x x
799-398 x x x x x A x x x x x x
238-561 x x x x x x A x A x x x x
542-429 x x x x A x x A x x x x x
623-444 x x A x x x x x x x
Product Family X-Map
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D u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
Part Number Family S u b A s s e m b l y
P a i n t
F i n a l A s s e m b l y
T e s t
I n s p e c t i o n
S h i p
542-429 Pump X X X X
480-231 Pump X X X X
623-405 Pump X X X X458-743 Pump X X X X
565-451 Pump X X X X
767-577 Pump X X X X
981-156 Pump X X X X
238-561 Pump X X X X
583-930 Pump X X X X
606-723 Pump X X X X
345-008 Pump X X X X
199-225 Pump X X X X799-398 Cylinder X X X X
187-192 Cylinder X X X X
554-086 Cylinder X X X X
212-660 Cylinder X X X X
689-529 Piston X X X X X
623-444 Piston X X X X X
418-690 Piston X X X X X
281-849 Piston X X X X X
Product Family X-Map
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D u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
Work Content Times
Part Number Family S u b A s s e m b l y
P a i n t
F i n a l A s s e m b l y
T e s t
I n s p e c t i o n
S h i p Work
Content
542-429 Small Pump 10 15 8 15 48
480-231 Small Pump 10 15 8 15 48623-405 Small Pump 10 15 8 15 48
458-743 Small Pump 10 15 8 15 48
565-451 Medium Pump 30 20 16 15 81
767-577 Medium Pump 30 20 16 15 81
981-156 Medium Pump 30 20 16 15 81
238-561 Medium Pump 30 20 16 15 81
583-930 Large Pump 45 40 35 15 135
606-723 Large Pump 45 40 35 15 135
345-008 Large Pump 45 40 35 15 135
199-225 Large Pump 45 40 35 15 135
799-398 Cylinder 23 100 15 15 153
187-192 Cylinder 23 100 15 15 153
554-086 Cylinder 23 100 15 15 153
212-660 Cylinder 23 100 15 15 153
689-529 Piston 25 18 10 5 15 73
623-444 Piston 25 18 10 5 15 73
418-690 Piston 25 18 10 5 15 73281-849 Piston 25 18 10 5 15 73
There should
be no more
than a 30%
variation in the
work content.
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D u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
Product and Process Families
• A product family is a group of products that gothrough similar downstream processes or“assembly” steps.
• A process family is a group of products that gothrough similar upstream shared processes.
Upstream (Shared Resources) Downstream (“Assembly”)
FAMILY A
FAMILY B
FAMILY C
Current State Map
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Steel Street
Assembly
18,400 pcs/mo.
- 12,000 “L” - 6,400 “R”
Tray = 20 pieces
2 Shifts
Shipping
Staging
C/T = 40 secs
C/O = 0
Uptime = 100%
2 Shifts
27,600 sec.avail.
1x
Daily.
C/T = 62 secs
C/O = 0
Uptime = 100%
2 Shifts
27,600 sec.avail.
C/T = 46 secs
C/O = 10 mins
Uptime = 80%
2 Shifts
27,600 sec.avail.
C/T = 39 secs
C/O = 10 mins
Uptime = 100%
2 Shifts
27,600 sec.avail.
C/T = 1 secs
C/O = 1 hour
Uptime = 85%
2 Shifts
27,600 sec.avail.
Michigan
Steel Co
500 ft coils
Tues &
Thurs.
MRP
Production
Control
90/60/30 day
Forecasts
Daily
Order
6 Week
Forecast
Weekly Fax
5 days 7.6 days 1.8 days 2.7 days 2 days 4.5 days
1 sec 39 secs 46 secs 62 secs 40 secs
Production
Lead Time
= 23.6 days
Processing
Time = 188 s
Current State Map
Assembly #2
1
Assembly #1
1
S.Weld #2
1
S.Weld #1
1
Stamping
1
I
Coils
5 Days
1200L
640R
I
2700L
1440R
I
1600L
850R
I
1100L
600R4600L
2400R
I I
Weekly Schedule
Daily Ship
Schedule
Learning to See Mike Rother John Shook Lean Enterprise Institute 1998
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D u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
Improving the Flow of Value
Using practical lean guidelines to
develop a Lean Future State.
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D u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
Lean Guidelines
• Takt time
• Finished goods strategy
• Continuous flow
•
FIFO• Pull
• Schedule only one point
• Interval
• Pitch
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D u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
Takt Time
• Customer demand rate• Synchronizes the pace of production to the
pace of sales
Takt Time =Available Time
Sold Units
=6600 minutes/wk
15 pieces/wk= 440 min
Jan Feb March April May June …
CURRENT DEMAND PROFILE
Units
Sold
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D u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
Takt Capability
Engines
Received
Jan Feb March April May June July Aug Sept……..
Takt Capability Mode 1
Takt Capability Mode 2
Takt Capability Mode 3
May need to have preset capabilities to matchchanging customer demand
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D u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
Finished Goods Strategy
Customer
shippingassembly
To Shipping
supermarket
Customer
shippingassembly
To Supermarket
Learning to See Mike Rother John Shook Lean Enterprise Institute 1998
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D u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
FIFO – First In First Out
FIFO
-Sets the sequence of production
-Controls the amount of inventory
FIFO
Process BProcess A
h d l l
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D u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
Branch Takt = 20.9 min./pc.
Small
ShaftLarge Shaft
Cylinder
C/T =
10min.
C/T =
25
min.C/T =
18
min.
Small
Impeller
Medium
Impeller
Large
Impeller
C/T =
8 min.
C/T =
25
min.
C/T =
29
min.
Shared Resource Calculations
h d li l i
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D u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
Scheduling Only One Point
flowcustomer
FIFO FIFO
pull
1 2 3 4
customer
supermarket
1 2 3 4
Learning to See Mike Rother John Shook Lean Enterprise Institute 1998
flow
i h l
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D u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
Aerospace: Engine Overhaul – Schedule 3 points
FIFO FIFO7 8 9
flow
FIFO FIFO4 5 6
flow
FIFO FIFO1 2 3
flow
pull
Induction
Assembly
Repair
bli hi i l
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D u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
Establishing an interval
100Titanium ArmD
300Aluminum ArmC
600Steel ArmB
1000Plastic ArmA
Weekly
DemandProduct
Production capability - 400 per day
E bli hi i l
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D u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
Establishing an interval
100Titanium ArmD
400400400400400Total:
300Aluminum ArmC
400200Steel ArmB
200400400Plastic ArmA
FriThursWedTuesMonDescriptionProduct
Interval = 1 week
E bli hi i l
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D u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
Establishing an interval
2020202020Titanium ArmD
400400400400400Total:
6060606060Aluminum ArmC
120120120120120Steel ArmB
200200200200200Plastic ArmA
FriThursWedTuesMonDescriptionProduct
Interval = 1 day
Pi h
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© 2 0 1 4 D u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
Pitch
Types
• Standard Pitch: Qty * Takt
• Inverse: When takt is long (Our demand is one aircraft
every two days)
• Floating: Large mix in process times
Attributes of Pitch
• Physical
• Visual• Anticipated
• Binary
Creating the Future State Map
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I II III
Michigan
Steel Co
500 ft coils
Steel Street
Assembly
18,400 pcs/mo
- 12,000 “L”
- 6,400 “R”
Tray = 20 pieces
2 Shifts
Shipping
Staging
C/T = 40 secs
C/O = 0
Uptime = 100%
2 Shifts
27,600 sec.avail.
C/T = 62 secs
C/O = 0
Uptime = 100%
2 Shifts
27,600 sec.avail.
C/T = 46 secs
C/O = 10 mins
Uptime = 80%
2 Shifts
27,600 sec.avail.
C/T = 39 secs
C/O = 10 mins
Uptime = 100%
2 Shifts
27,600 sec.avail.
C/T = 1 secs
C/O = 1 hour
Uptime = 85%
E.P.E=2 Weeks
27,600 sec.avail.
MRP
Production
Control
90/60/30 day
Forecasts
Daily
Order
6 Week
Forecast
Weekly Fax
Weekly Schedule
Daily Ship
Schedule
5 days 7.6 days 1.8 days 2.7 days 2 days 4.5 days
1 sec 39 secs 46 secs 62 secs 40 secs
Level
Load Box
Uptime
Weld
Changeover
Total work
<168 secs
C eat g t e utu e State ap
Production
Lead Time
= 23.6 days
Processing
Time = 188 s
Assembly #2
1
Assembly #1
1
S.Weld #2
1
S.Weld #1
1
Stamping
1
Tues &
Thurs.
1x
Daily.
Quality
The Lean Value Stream
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Stamping Weld + Assembly Shipping
aa
aa
Daily Orders
2 3 5
6
7
8 4
Weld
Changeover
Total work
<165 secs
Uptime
Michigan
Steel Co
500 ft coils
Steel Street
Assembly
18,400 pcs/mo
- 12,000 “L”
- 6,400 “R”
Tray = 20 pieces
2 Shifts
Production
Control
90/60/30 day
Forecasts
Daily
Order
6 Week
Forecast
Daily Fax
1
1.5 days 1.5 days 2.0 days
1 sec 165 secs
Production
Lead Time
= 5 days
Processing
Time = 166 s
Quality
FIFO
Learning to See Mike Rother John Shook Lean Enterprise Institute 1998 © 2 0 1 4 D u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
L G id li f th Offi
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© 2 0 1 4 D u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
Lean Guidelines for the Office
• Takt Capability
• Continuous flow Processing Cells
• FIFO
• Work Flow Cycles
• Standard Work for Flow
• Single Point initialization
• Visual Indicators• Changes in Customer Demand
P i C ll
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© 2 0 1 4 D u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
Processing Cell
Forms
In
Out
Engineer
Estimator
Purchasing
Sales
Th D t il L I l t ti
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© 2 0 1 4 D u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
The Details - Lean ImplementationChecklist
Task Number Team Members
Kit TrayTraced
Cut out
Photo Documented
Labeled
Kit Cart Work SurfaceDesigned Designed
Built Built
AOS Review Tooling
U/R Hardware review Specials Tooling Identified/documentedU/R Hardware l ist electronic documentation Tooling Identif ied
Sequence review Color Coded
In for update Tooling Presentation
Hardware Trays PPEFilled Identified
Labled Plaque created
Installation Review Check List
Th D t il B l i th W k
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© 2 0 1 4 D u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
The Details - Balancing the Work
Assembly Lean Design
Day 1 Day 2
Event Kickoff meeting Re-cap of Day 1 Results/Progress
- Review Vision / Objectives Review Day 2 Agenda
Day 1 Agenda Day 2 Agenda
Review VSM Concepts / Lean Principles Continue / complete Op Sheet Review
Define/Calculate Takt Time Begin Installation / Mechanic Balance Charts
- Target Hours vs. Actual Hours discussion
Create Aircraft Zones to assist with - Balance work content against Takt time based upon
Install sequence determination (Team) consistent increments of work determination
Determine Install Sequence for 1st Position: Begin Point-of Use Design by Assembly
- Installs to be shifted to Major assembly - Pull k its out for each install
- Installs mov ed back from other Units - Create lists for required T ools / Hardware
- Installs mov ed forward to other Units & Consumables by install / ins tall group
Break up into teams for physical design (Team) Develop Tool / Material Presentation options
- Identify T eam leaders and members - Sk etch options for material/tool presentation
- Divide up installations by skill - Work with support reps to prototype options
- Test in use / revise as needed
Perform brief Op Sheet review (Team) - Document EH&S issues throughout
- Identify/document major problems by AOS (red pen)
- Missing components/tools/op steps wrong, etc.
- Determine consistent time increments by Op Step
Day 1 Wrap-up (Team) Day 2 Wrap-up (Team)
Th Ei ht St t A hi
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© 2 0 1 4 D u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
The Eight Steps to AchieveOperational Excellence
1. Design a lean flow using lean guidelines.
2. Implement a lean flow.
3. Make the lean flow visual.
4. Create standard work for the lean flow.
5. Make abnormal flow visual.
6. Create standard work for the abnormal flow.
7. Teach employees to maintain and improve theflow to the customer.
8. Free management to work on offense.
O ti l E ll
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© 2 0 1
4 D u g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
Operational Excellence
Operational Excellence
Time in Years
L e v e l o
f i m p r o v e m e n t
1 5 10
Operational Excellence
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g g a n A s s o c i a t e s .
A l l R i g h t s R e s e r v e d .
Operational Excellence
Questions?