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TRANSCRIPT
LEAN MANUFACTURING
TECHNIQUES
APPLIED TO PRODUCT
PACKAGING
APRIL 24, 2012
PETER L. KING
LEAN DYNAMICS LLC
2
AGENDA
What Is Lean?
Lean adaptations for process industry challenges
Lean Tools for packaging operations
1) Standard Work
2) Point Of Use Storage
3) 5S
4) SMED –changeover improvement
5) Package To Order
6) Value Stream Mapping
7) Product Wheels
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3 © 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED
ORIGINS OF LEAN
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What is known as “Lean Manufacturing” or “Lean
Production” today is based heavily on manufacturing
principles developed by Toyota in the 1950s – 1980s
Toyota Production System
THE EVOLUTION OF LEAN
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Eli Whitney, Honore’ Blanc
- Interchangeable parts
Frederick Taylor - Scientific management
Henry Ford - Flow, velocity
Toyota - Mapping, Focus on Waste, Kaizen
MIT IMVP - “Lean” (1989)
Good summary of principles & benefits
Created high level of awareness
THE EVOLUTION OF LEAN
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THE ESSENCE OF LEAN
So what is TPS – what is Lean:
An intense focus on elimination of waste
An intense focus on the final customer and what he values
Manufacturing at a rate equal to customer demand ~ TAKT
A focus on the worker and the value he can bring
A strong value for FLOW
Lean philosophies can be summed up in 5 key principles
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LEAN FOCUS
Lean focuses on waste
Waste is eliminated by a
relentless pursuit of perfection
1. DEFINE VALUE IN
CUSTOMER TERMS
2. MAP THE VALUE
STREAM
3. MAKE WORK FLOW
4. FLOW AT THE PULL
OF THE CUSTOMER
5. RELENTLESSLY
PURSUE PERFECTION
Lean focuses on Value
Value is defined by the customer
Lean focuses on flow
Flow is at the pull of the
customer
JUST-IN-TIME RIGHT PART, RIGHT
AMOUNT, RIGHT TIME
• Takt • Continuous Flow • Pull Systems • Quick Changeover • Integrated Logistics
OPERATIONAL STABILITY
LEVEL PRODUCTION - STANDARDIZED WORK
VISUAL MANAGEMENT
TOTAL PRODUCTIVE MAINTENANCE (TPM)
JIDOKA (BUILT IN QUALITY)
• Automatic Stops • Andon • Person-Machine Separation • Error Proofing • In-station Quality Control • 5 Whys
HIGHLY MOTIVATED PEOPLE
CONTINUOUS IMPROVEMENT
WASTE ELIMINATION
TPS
BEST QUALITY * LOWEST COST
SHORTEST LEAD TIME * BEST SAFETY * HIGH MORALE
THE TPS HOUSE – THE PRODUCTION SYSTEM
The Toyota Production System is often depicted as a house
Attributed to Fujio Cho, a disciple of Taichi Ohno
9
FLOW
STANDARDIZATION & STABILITY
QUALITY
PEOPLE ENGAGEMENT
& CONTINUOUS
IMPROVEMENT
TPS
THE TOYOTA PRODUCTION SYSTEM (TPS) HOUSE
MEETING CUSTOMER NEEDS
WITH THE HIGHEST QUALITY IN THE SHORTEST TIME
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LEAN IS NOT ABOUT COST REDUCTION!
Lean, world-class athletes
getting into shape:
Don’t try to lose weight
Try to lose fat
Try to build muscle
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Lean, world-class manufacturing operations
Don’t try to cut costs
Try to cut waste
Try to build muscle
A trained, capable workforce
Standardized, disciplined processes
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SEEING THE FLOW
VALUE STREAM MAPPING
CUSTOMER
SERVICE
REPS
ORDER
GRANTS
MATERIAL
RELEASES
SALES &
OPERATIONS
PLANNING
DEMAND
MANAGEMENT
PROCESS
CUSTOMER FORECASTS
(QUARTERLY)
ORDERS
PRODUCTION
SUPERVISOR
CAPACITY FORECAST
(MONTHLY)MASTER PRODUCTION
SCHEDULE (MONTHLY)
DAILY PRODUCTION
SCHEDULE (WEEKLY)
SCHEDULE UPDATES (DAILY)
AGGREGATED
DEMAND
(MONTHLY)
CURRENT
INVENTORIES
Frequency
Lot Size
1 Car/Day
140K lbs
Transp time 7 Days
Frequency
Lot Size
1.8 Cars/Day
140K lbs
Transp time 7 Days
SUPPLIER 1
SUPPLIER 2
SHEET
FORMING
(4)
SLITTING
(3)
CALENDARING
BONDING
(4)
CHOPPING
(3)
WRAPPING
PACKAGING
LABELING 5 546
6
Order Lead
Time
# SKUs
1 Week
4
Order Lead
Time
# SKUs
1 week
6
Invtry
Days
# SKUs
322M sq Ft
42
2,000
Invtry
Days
#
SKUs
4000
7
1000
Invtry
Days
#
SKUs
3650 R
21
200
Invtry
Days
#
SKUs
2500 R
12.6
50
Invtry
Days
#
SKUs
6.3M lbs
16
6
15 Min
16 Days
17 Min
12.6 Days 21 Days
10 Min
7 Days
10 Min
3 M
8 Min
42 Days
CUSTOMERS,
DISTRIBUTORS
Quantity/time
TAKT
230M Sq Ft/Mo
320K Sq Ft/Hr
Lead time Exp 7 Days
Frequency
Lot Size
12 Trucks/Day
648K Sq Ft
Transp time 3 Days
KEY
K = 1,000
M = 1,000,000
B = 1,000,000,000
NVA Time = 99 Days
VA Time = 73 Min
Effective
Capacity 11.8
9.5TAKT
Utilization 80%
15 MinLead time
Yield 87%
90%Reliability
UPtime 73.6%
50# SKUs
Batch size 1 roll
9 daysEPEI
C/O time 1 hr
2 RollsC/O loss
Avail time 168 hr/wk
3 x 8 x 7Shift schd
(Master Rolls/Hr)
Effective
Capacity 8.9
8.3TAKT
(Master Rolls/Hr)
Utilization 93%
17 MinLead time
Yield 87%
98%Reliability
UPtime 61%
200# SKUs
Batch size 1 roll
13 daysEPEI
C/O time 45 Min
~ 0C/O loss
Avail time 168 hr/wk
3 x 8 x 7Shift schd
Effective
Capacity 10.3
7.2TAKT
(Bonded Rolls/Hr)
Utilization 70%
10 MinLead time
Yield 98%
95%Reliability
UPtime 69%
1000# SKUs
Batch size 1 roll
7 daysEPEI
C/O time 5 Min
~ 0C/O loss
Avail time 168 hr/wk
3 x 8 x 7Shift schd
Effective
Capacity 29
24TAKT
Utilization 83%
10 MinLead time
Yield 100%
98%Reliability
UPtime 98%
1800# SKUs
Batch size 1 Slit Roll
7 daysEPEI
C/O time 0
0C/O loss
Avail time 168 hr/wk
3 x 8 x 7Shift schd
(Slit Rolls/Hr)
Effective
Capacity 200
120TAKT
Utilization 60%
8 MinLead time
Yield 100%
98%Reliability
UPtime 98%
2000# SKUs
Batch size 1 Cut Roll
7 daysEPEI
C/O time 0
0C/O loss
Avail time 168 hr/wk
3 x 8 x 7Shift schd
(Cut Rolls/Hr)
RAW MATERIAL
ORDERS (MONTHLY)
RAW MATERIAL
ORDERS (MONTHLY)
SCHEDULE UPDATES (DAILY)
Information Flow
Material Flow
VSM COMPONENTS
Timeline
Data boxes
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13
LEAN THINKING
FOR PROCESS OPERATIONS
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PROCESS VS ASSEMBLY
Parts Manufacturing and Assembly
Automobiles
Cell phones
Computers
Power tools
Appliances
Aircraft
Medical instruments
Consumer electronics
Lawn mowers
Process Operations
Chemical reactions
Physical transformations
Mixing, blending
Extrusion
Sheet forming
Process Products
Automotive and house paints
Foods and beverages
Personal care products
Synthetic fibers
Sheet goods
Films
Glass and ceramics
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15
Lean was developed for discrete parts manufacture
Process operations are different…
They behave differently from discrete parts operations
Lean does apply to process operations
Often with even more benefit
But must be adapted to recognize the differences
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LEAN THINKING FOR PROCESS OPERATIONS
Mat
eria
l F
low
Part nos.
or SKU’s
Parts
Sub-
assemblies
Assemblies
Sub-
systems
Systems
Adapted from Synchronous Manufacturing Umble & Srikanth, 1990
“A” PROCESS
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Finished Products
Mat
eria
l F
low
Adapted from Synchronous Manufacturing
Umble & Srikanth, 1990
“V” PROCESS
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RAW MATERIALS = 6 TYPES
MASTER ROLLS = 50 TYPES
PACKAGED ROLLS = 2000 TYPES
CUT ROLLS = 1800 TYPES
BONDED ROLLS 200 TYPES
SLIT ROLLS = 1000 TYPES
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EXAMPLE OF A “V” PROCESS
SHEET GOODS MANUFACTURING
PROCESS
MANAGING COMPLEXITY
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20
STANDARD WORK
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LEAN TOOLS
21
LEAN PRINCIPLE:
Standardized tasks and processes are the foundation for continuous improvement and employee empowerment.
Every task should be standardized
Every task should be examined for improvement possibilities
No improvement should be implemented until tested, validated, authorized, documented, and communicated
The improvement becomes the new standard
Why Standard work?
Variation can cause defects
Variation causes confusion
Variation inhibits Continuous Improvement
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LEAN TOOLS – STANDARD WORK
22
POINT OF USE STORAGE
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LEAN TOOLS – POUS
23
Point of use Storage is storing materials as close to the
location where they are used as is possible
Tools needed for product changeover
Changeover parts: filters, screens
Materials for future campaigns: labels, caps
Tools needed for minor repairs
Repair parts: fuses, lamps, etc.
And located within easy reach
Benefits:
Eliminates searching for tools, parts, materials
Reduces downtime
Speeds product changeovers
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LEAN TOOLS – POUS
24
Five S, 5S
1 Sort (Seiri)
2 Straighten (Seiton)
3 Shine (Seiso)
4 Standardize (Seiketsu)
5 Sustain (Shitsuke)
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LEAN TOOLS – 5S
5S ~ THE FIVE STEPS
Sort through everything in the area - get rid of anything that is
not needed
Arrange all tools, equipment, and materials in a way that
facilitates smooth work flow. Locate everything as close to
the precise point of use as possible
Clean the entire area, including all surfaces, so that defects,
equipment problems, and any abnormal conditions will be
very apparent. Make sure that al tools, parts, and fixtures
are clean.
Establish systems and processes to maintain the first 3 S’s
including placards or signs describing standard work, and
shadow boards indicating tool location. Make it easy to put
things in their proper place, and difficult not to.
Develop a managing process, with regular audits to insure
that this becomes the way the workplace is organized and
maintained.
1 Sort (Seiri)
2 Straighten (Seiton)
3 Shine (Seiso)
4 Standardize (Seiketsu)
5 Sustain (Shitsuke)
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EXAMPLE OF A 5S IMPLEMENTATION
26
Filling lines to load house paint into 1 gallon buckets
Eight (8) lines – installed at different times over a 40 year period
Different control systems – different operator interfaces
5S changes
Removed all unnecessary tools and equipment
Cleaned floor, walls, equipment surfaces
Standardized on a pegboard design for tools
Standardized on an operator interface
Not only is the area cleaner and less cluttered …
……. Operators can easily move from machine to machine as needed
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BENEFITS OF 5S
27
5S appears simple and straightforward, but the benefits
are huge!
Easier to work in an uncluttered work area
Tools are readily at hand – eliminates time searching
Creates more operator ownership for their work area
Problems become much more visible
A clean uncluttered area is a safer area
The discipline of 5S builds the discipline needed for
Standard Work
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28
CHANGEOVER IMPROVEMENT
SINGLE MINUTE EXCHANGE of DIES
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LEAN TOOLS - SMED
Identify tasks
which can be
external
Move external tasks
outside the changeover
window
Simplify
Internal tasks
Perform
Internal tasks
in parallel
SMED IMPROVEMENT STEPS
CHANGE
OVER
CHANGE
OVER PRODUCT A PRODUCT B PRODUCT C
EXTERNAL
TASKS
EXTERNAL
TASKS
PRODUCT A
CHANGEOVER
PRODUCT B INTERNAL TASKS
EXTERNAL
TASKS
EXTERNAL
TASKS
PRODUCT A INTERNAL TASKS PRODUCT B
EXTERNAL
TASKS
EXTERNAL
TASKS
PRODUCT A INTERNAL TASKS
INTERNAL TASKS PRODUCT B
EXTERNAL
TASKS
EXTERNAL
TASKS
PRODUCT A INTERNAL TASKS PRODUCT B
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SMED APPLIED TO PACKAGING OPERATIONS
Tasks which could be external
Bring new label stock to area
Bring new cardboard packaging into area
Remove old labels, cardboard, etc.
Tasks which could be done in parallel
Flushing supply lines
Adjusting mechanical fixtures
Replacing labels
Replacing cardboard stock in carton erector
Tasks which could be simplified
Everything!
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9:
North West Line Change Over W/Fluid Cleanout 6/30/2011
20 min 20 min 20 min 20 min 20 min 20 min 20 min 20 min 20 min 20 min 20 min
La
b
Te
ch
nic
ian
Me
ch
an
ic 3
Me
ch
an
ic 2
Me
ch
an
ic 1
Le
ad
Op
era
tor
Op
era
tor
2O
pe
rato
r 1
Bottles off
Line Drop Packer Set UpTaper and
Palletizer
Set Up
Caps, Bottles,
Cartons
Delivered to
Line
Labels
to Line Drop Packer Set Up
Case
Erector Set
Up, Set Up
Carton
Date Coder
Fluid Cleanout
& Take
Sample To Lab
Fluid
CleanoutMettler Scale and
Labeler Set Up
Cap
Sealer,
Cap
Detect
or
VideoJ
et Set
Up
Unscrambler
Changeover
Fluid Change From: xxx To: xxx
Start: xxxxam Complete: xxxxam Total Time: x hrs xx min
Bottle Change: XX oz To XX oz
Lab Testing
Capper/Filler Changeover
Capper/Filler Changeover
Remove
Labels
&
Cartons
Remove
Caps
From
Line
32
FINISH TO ORDER
PACKAGE TO ORDER
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LEAN TOOLS - FTO
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FTO IN PROCESS SUPPLY CHAINS
FTO is sometimes done with process products – at the final
point of sale
Thus a very high degree of variety can be supplied – with modest
inventories
House paint is stocked in hardware stores only in base colors
Small amounts of pigment are added in the store to supply the full range of colors and shades
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FTO IN PROCESS PLANTS
FTO is also done within process plants
Crop protection products – fertilizers, pesticides, fungicides –
are produced in a small number of formulations
There can be tremendous variety in packaging
Material is often held in bulk, and bagged to order
Paper and plastic sheet goods are sometimes
stored as bonded or coated mother rolls
They are then slit (and chopped) to order
RAW MATERIALS = 6 TYPES
MASTER ROLLS = 50 TYPES
PACKAGED ROLLS = 2000 TYPES
CUT ROLLS = 1800 TYPES
BONDED ROLLS 200 TYPES
SLIT ROLLS = 1000 TYPES
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EXAMPLE OF A “V” PROCESS
SHEET GOODS MANUFACTURING
PROCESS
FINISH-TO-ORDER POINT
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BENEFITS OF A FTO STRATEGY
Reduced dependence on forecasts
Differentiation based on true demand
Highly differentiating steps are usually near the end
Reduced finished product inventory
Reduced total inventory
Final process steps more available to meet real needs
Improved customer service levels
Requires the ability to store materials prior to the F-T-O or Pkg-T-O Point
37
PRODUCT WHEELS
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LEAN TOOLS – PRODUCT WHEELS
Many of our production lines must package a wide variety of
products : fluid, bottle size, labels, carton size
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PRODUCT WHEELS FOR PACKAGING LINES
Should we run a regular
campaign cycle?
How long should the overall
campaign be?
How much of each material
should we make on each cycle?
Product Wheel design can answer all of these questions
38
If we’re making several materials on a regular cycle, is
there an optimum sequence?
Sometimes this is obvious ……
But some times not
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PRODUCTSHEET
WIDTH
BASIS
WEIGHT
POLYMER
TYPE423 J 12 3 J
403 L 10 3 L
403 J 10 3 J
423 L 12 3 L
426 J 12 6 J
406 R 10 6 R
406 L 10 6 L
426 R 12 6 R
406 J 10 6 J
409 L 10 9 L
409 J 10 9 J
489 J 8 9 J
429 L 12 9 L
489 R 8 9 R
489 L 8 9 L
429 R 12 9 R
PRODUCTPOLYMER
TYPE
SHEET
WIDTH
BASIS
WEIGHT489 J J 8 9
403 J J 10 3
406 J J 10 6
409 J J 10 9
423 J J 12 3
426 J J 12 6
489 L L 8 9
403 L L 10 3
406 L L 10 6
409 L L 10 9
423 L L 12 3
429 L L 12 9
489 R R 8 9
406 R R 10 6
426 R R 12 6
429 R R 12 9
Again – Product Wheel design has tools for determining
this.
39
PRODUCT WHEELS FOR PACKAGING LINES
DETAILED PRODUCT WHEEL CONCEPT
A
C
B
D
E F G
H
I
J K
PRODUCTS (SPOKES)
CHANGE-OVERS
The sequence is optimized for minimum changeover loss
The sequence is fixed
Some low-volume products may not be made every cycle
Spokes can have different lengths, based on the Takt for each product
The amount actually produced can vary from cycle to cycle, based on actual consumption
Thus the time can vary slightly from cycle to cycle
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Product wheels support a Pull replenishment system
Each spoke is designed based on average historical demand
What is actually produced on any spoke is just enough to
replenish what has been consumed from inventory
Product Wheels can be compatible with MRP
Product wheels can be employed in a Make-to-Stock
(MTS) or a Make-to-Order (MTO) environment
MTS and MTO products can be made on the same
wheel
PRODUCT WHEEL APPLICABILITY
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Product Wheels were applied
to several packaging lines at
an automotive fluid
manufacturer.
PRODUCT WHEEL EXAMPLE
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Results
Inventories were reduced
Many low volume products now Make-to-Order
Brought structure & discipline – ended the chaos
43
VALUE STREAM MAPPING
EXAMPLES
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LEAN TOOLS - VSM
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LEAN TOOLS - VSM
FLOW LIMITATIONS
IN A CEREAL PLANT
FLOW LIMITATIONS IN A CEREAL PLANT
45
PACKAGING
STORAGE SILOS
SHAPE MANUFACTURING
FLAKE MANUFACTURING
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POOR COORDINATION IN A CEREAL PLANT
46
PACKAGING
STORAGE SILOS
SHAPE MANUFACTURING
FLAKE MANUFACTURING
The INFORMATION FLOW portion of the VSM shows
that the culprit is poor scheduling, no synchronization
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The VSM
shows the
packaging area at
75% Utilization
But - silos often
fill up, so flake or
shape production
goes down
VALUE STREAM MAPPING – SALAD DRESSING
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THROUGHPUT INCREASES
IN A SALAD DRESSING PLANT
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VALUE STREAM MAPPING – SALAD DRESSING
High speed bottling machine
300 bottles per minute
49
HOMOGENIZER
EFF CAPACITY 60 GPM
75 GPMTAKT
UTILIZATION 125%
90%OEE
WAREHOUSE
Salad Dressing
Bottle Filling Line
SURGE
TANK
BOTTLE
FILLING
MACHINE
EFF CAPACITY 300 Bot/Min
400 BPMTAKT
UTILIZATION 133%
85%OEE
BOTTLE
CAPPER
EFF CAPACITY 500 BPM
400 BPMTAKT
UTILIZATION 80%
94%OEE
ACCUMULATING
BOTTLE
CONVEYOR
BOTTLE
LABELER
EFF CAPACITY 360 BPM
400 BPMTAKT
UTILIZATION 111%
82%OEE
CASE
PACKER
EFF CAPACITY 33 cases.min
34 cases/minTAKT
UTILIZATION 101%
73%OEE
NOTE: All capacities and Takt are relative to 24 oz bottles,
which is the primary size run on his line
SHRINK
WRAP
TUNNEL
EFF CAPACITY 122 cases/min
34 cases/minTAKT
UTILIZATION 28%
90%OEE
CASE
PATTETIZER
EFF CAPACITY 100 cases/min
34 cases/minTAKT
UTILIZATION 34%
94%OEE
PALLET
STRETCH
WRAPPER
EFF CAPACITY 224 pallet/hr
26 pallet/hrTAKT
UTILIZATION 12%
92%OEE
PALLET
LABEL
PRINTER
APPLICATOR
EFF CAPACITY 170 pallet/hr
26 pallet/hrTAKT
UTILIZATION 15%
76%OEE
BN #1 BN #2 BN #3 BN #4
Current State VSM, with the higher Takt requirement
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VALUE STREAM MAPPING – SALAD DRESSING
50
Value Stream Mapping
To understand bottlenecks
To find opportunities to better synchronize operations
To understand reasons for unnecessary inventory
To see opportunities to reduce/eliminate waste
Standard work, POUS, 5S
To simplify operations
To reduce variation
To eliminate lost time
To build operating discipline
SUMMARY
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51
SMED
To speed up changeovers
Faster changeovers = more production time, shorter campaigns,
less inventory
Finish-To-Order, Package-To-Order
Reduce finished goods inventory
Improve fill rates, service levels
Product Wheels
Optimize campaign size, production sequence
Level production to match takt within reasonable time periods
Reduce inventory, increase predictability
SUMMARY
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TO LEARN MORE …..
The material in this presentation is featured in
Productivity Press
May 2009
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QUESTIONS?
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