lean manufacturing toolbox - mnasq.org · tim conway lean manufacturing toolbox 36 value stream...

Lean Manufacturing

Toolbox

Tim Conway

[email protected]

17 January, 2018

Lean Manufacturing Toolbox 2Tim Conway

Are You A Lean Practitioner?

Do you…

▪ Have a drop zone for your keys, wallet, purse, etc?

▪ Organize your kitchen silverware by type and size?

▪ Have a set location for your garage shop tools?

▪ Set out your work clothes the night before?

▪ Wash your car windshield while the gas is pumping?

▪ Prefer round-abouts over stop lights for low-volume intersections?

If you strive to be efficient and organized then you’re a lean practitioner


Production Line (Old Style)

Lucy and Ethel wrap chocolate

© CBS


Production Line

From this…

To this…


Production Line

To this…

▪ Numerous steps

▪ Re-entrant flows

▪ Numerous tools

▪ Multi-chamber tools

▪ Definition of “unit” can change

▪ Batching


Lean is Applied to Processes

Process approach to continuous improvement

▪ Just about everything we do can be described as a process

▪ All processes vary

To improve we must:

▪ Identify our customers

▪ Collect / evaluate requirements

▪ Determine the key process actions that provide value to the customer

▪ Measure the process performance

▪ Improve the process by attacking waste, variability and inflexibility

While our process complexities can vary widely, the goal remains the same

▪ Efficiently and effectively maximize the value provided to the customer!


Agenda

This workshop covers the following topics:

▪ Lean Manufacturing Concepts

▪ Lean Tools

Desired outcomes; upon completion of this course, you will be able to:

▪ Define the concept of a Value Stream

▪ Define Value-Added, Non-Value-Added and Incidental activities

▪ Define 7 types of wastes

▪ Discuss 4 strategies to remove waste

▪ Describe the usage of several lean tools


Lean Manufacturing Concepts


Lean Manufacturing is derived from the

Toyota Production System (TPS)

Areas of focus:

▪ Improve the flow of work to expose waste

and quality problems

▪ Eliminate waste

Objective:

▪ Create maximum value for the customer by

continual focus on elimination of waste

Lean Manufacturing

▪ “The Machine that

Changed the World”

▪MIT researchers

coined the term “lean

manufacturing” in this

1990 book to

describe the Toyota

Production System


Lean Focus: Value Stream

Value Stream is the set of key actions required to create and deliver a product

or service to the customer.

Everything not in the value stream is potential waste

“Whenever there is a product (or service) for a customer, there is a

value stream. The challenge lies in seeing it.”

Suppliers Fab Processing Customers


Lean’s Core Strategies

1. Eliminate waste

Waste

VariabilityInflexibility

3. Maximize flexibility and synchronization to customer demand

2. Control variability


Types of Activities

Three types of activities in Lean Thinking

10%

40%

50%Non-Value

Added

(Waste)

Incidental

Value-Added

Elements

of work


Value-Added▪ Activity that directly affects the

end product in a way that the

customer is willing to pay for

▪ (Typically 10-15% of activity

before optimization)

Examples:

▪ Impacts form, fit or function of

the product, such as adding

layer to a semiconductor chip

▪ Gathering data that enhances

the value of the product

Types of Activities


Incidental▪ Activity that does not directly

add value but is necessary to

ensure completion or integrity

of value-added tasks

▪ Adds cost and in theory could

be reduced without affecting

the product.

▪ (Typically 30-50% of activity

before optimization)

Examples:

▪ Product inspection and testing

▪ Tool qualification testing

Types of Activities


Non-Value Added▪ Activity that does not add value

▪ Waste

Examples:

▪ Reworking or redoing

▪ Building finished good inventory

▪ Providing more data than the

customer ordered

Types of Waste:

▪ Transportation

▪ Inventory

▪ Motion

▪ Waiting

▪ Overproduction

▪ Over-processing

▪ Defects

Types of Activities


Non-Value Add

& Incidental

90%

Non-Value Add

& Incidental

81%

Value Add

10%

Value Add

19%

Why Waste Elimination is Important

Eliminating 10% of non-value added activity can nearly double the productivity


Inventory

Motion

Waiting

Over-

processing

Defects

Over-

production

WASTE

Types of Lean Wastes: “TIM WOOD”

Transportation


▪ Transport of raw materials or

completed product

▪ Excessive transportation slows

down the production pace

▪ Handoffs between areas increases

risks of errors

▪ Handoffs also increase risk of

miscommunication between areas

▪ Visual management of the line is

difficult

Waste – Transportation

Painting deckMaterial flow

5

13

84

2

76

Excess

distance

from Stop 4

to Stop 5


▪ Excess inventory increases

manufacturing cycle time and

customer lead time

▪ Inventory increases operational

costs (e.g., storage cost, risk of

obsolescence)

▪ High inventory levels are a

symptom of other problems

in the system

• System inflexibility

• Poor line pacing

• Poor process capability

• Variation in machine availability

Waste – Inventory


▪ Unnecessary or excessive motion

of people or machines

▪ Example: operator has to go to the

office to phone the inspector every

time a product lot is completed

▪ Motion waste is usually caused by

the layout not being optimized for

the process

Waste – Motion

Office

Distance= 70 ft

Frequency = 30 times per shift

Walking time = 2 minutes

1 hour

walking time

per shift


▪ Waiting on parts, tools, people or

information

▪ Waiting can also be within-process

▪ Symptom: production pace is

highly variable

▪ Symptom: workload is not leveled

among operations

▪ Excess capacity and high WIP

levels compensate for the variable

pace

Waste – Waiting

Waiting time

0

1

2

3

4

5

6

7

8

9

10 Takt time: 9 seconds

Opera

tio

n 1

Opera

tio

n 2

Opera

tio

n 3

Op

era

tio

n 4

Opera

tio

n 5

Opera

tio

n 6

Opera

tio

n 7

Opera

tio

n 8

Tim

e (

seconds)


▪ Overproduction occurs when

product at any step of the process

is processed sooner, faster, or in

greater quantities than customers

demand

▪ Examples: batch processing,

pushing product bubble to next

step

▪ Overproduction can increase the

impact of other types of wastes

such as inventory, waiting and

defects

Waste – Overproduction


▪ Overprocessing is performing

additional processing over and

above the true customer

requirements

▪ Examples: over-etching, over-

polishing, double-checks

▪ May result from internal standards

that are tighter than the true

customer requirements in order to

provide risk mitigation

Waste – Overprocessing


▪ Defect is anything that prevents the

product, service or process from

performing its intended function

▪ Requires additional resources, line

capacity and buffer inventory to

avoid major disruption to the

production pace

Waste – Defects

0

50

100

150

200

250

300

350

400

1 4 7 10 13 16 19 22 25 28

▪Reworked

Quantity

Day


The 8th Type of Waste

Under-utilization of resources and talents

“Are there online

training resources that

we can use so we don’t

have to wait for a

class.”

“I spend a lot of time

doing paperwork that

really has no benefit.”

“I waste time each day

waiting on reports to be

delivered from other

departments.”

“Our team spends a lot

of time collecting

metric data that we feel

is not relevant.”1

7

5 4

3

2

The 8th type of

waste is under-

utilization of people6


Fabricating wafers (product)

Incidental

Value Added

Overproduction

Motion

? Types of Activities and Wastes

Walking to a meeting

Transportation

Defect

Motion

Value Added


Holding finished goods

Inventory

Defect

Motion

Transportation


Building ahead for the lunch rush

Transportation

Overproduction

Over-processing

Motion


Putting extra chips in the batter

Overproduction

Defect

Motion

Over-processing


Repainting to cover up issues

Overproduction

Over-processing

Defect

Motion


Lean Manufacturing: Principles

Flow: Near Continuous Flow, Small

Batch Sizes

Pace: Synchronized Between Steps,

Aligned to Customer Needs

Pull: Scheduling at Each Step Linked to

Customer Demand

Level: Resources Balanced to Reduce

Over or Under-Utilization

Stability: Enabler of Flow, Pace, Pull & Level, Leading to

Decreased Waste and Increased Business Impact


▪ Map out entire business process

▪ Identify waste and incidental steps

▪ Eliminate waste and streamline incidental tasks/steps

▪ Eliminate other blockages to flow (e.g. batching)

1 2

3 4

5

Wait

Wait

Value add

Internal buffer

A

1 2 3 4 5

Value addFrom To

Flow


▪ Determine the rate of customer demand

▪ Synchronize all process steps to that rate

▪ Only produce what is needed when needed without waiting or inventory

1 2 3 4 5

WIP (Work in progress)

1 2 3 4 5

WIPFrom To

Pace


▪ Only produce what the customer wants when they want it

▪ Set up clear system to produce on customer orders

From To

1 2 3 4 5

From

Push

WIP

Push

WIP

Push

WIP

Push

WIP

Signal to do workFlow of work

1 2 3 4 5

To

Pull

Signal

Pull

Signal

Pull

Signal

Pull

Signal

Signal to do workFlow of work

Pull


Level

▪ No asset or person under or over utilized

▪ This requires work standards and cross training

1 2 3 4 5

From

Time per activity

21 543

1 2 3 4 5To

Time per activity

21 543


Lean Tools


Lean Tools

Common lean tools include:

1. Value Stream Mapping (VSM)

2. Spaghetti Diagrams

3. Continuous Flow Manufacturing; Theory of Constraints (TOC)

4. Visual Factory

5. 5S

6. Poka-Yoke

7. Total Productive Maintenance (TPM)

8. Setup Reduction

9. Kaizen


Value Stream Mapping (VSM)

Objective: Identify and Eliminate Waste

1. Map the process; identify the current state. Include relevant data such as processing

and waiting times and failure rates.

2. Classify activities as Value-Added (green), Non-Value-Added (red) or Incidental (yellow)

3. Identify the desired future state. Eliminate, combine, streamline tasks.

4. Define action plan to achieve the future state


Final VSM (Current & Future State Maps)

Enter Ideas in

Tracking

Spreadsheet

$

Available?

Deliver

Payouts

Customer: Idea Submitter / Implementer

Deliverable: Idea Status Available (at least weekly)

Deliverable: Payout (at least monthly)

Supplier: Idea Submitter / Implementer

Deliverable: Approved Idea Form and Status Updates

Supplier: Finance

Deliverable: Idea Payout Money (bi-monthly)

CMI Idea System Administration

Y

N

Prepare

Labels

Place $ in

Envelopes

Close

Payout

Sheet

Collect

Approved

Idea Forms

Collect

Idea Status

Updates

0.9

hrs/wk

1.7-2.0

hrs/wk

0.3

hrs/wk

0.3

hrs/wk

0.1

hrs/wk

1.5-2.0

hrs/wk

2.2-2.7

hrs/wk

2.7-3.5

hrs/wk

1.0-1.5

hrs/wk

0.3

hrs/wk

Update Status

in Tracking

Spreadsheet

Update Status

in Tracking

Spreadsheet

Daily Logging and Weekly Payouts

Value-Added: 5.2 - 6.5 hrs/wk

Incidental: 4.0 - 5.0 hrs/wk

Non-Value-Added: 1.8 - 2.1 hrs/wk

Total: 11.0 - 13.6 hrs/wk

Current State Map

Future State Map

Deliver

Payouts

Prepare

Labels

Place $ in

Envelopes

Close

Payout

Sheet

Collect

Approved

Idea Forms

Collect

Idea Status

Updates

0.9

hrs/wk0.3

hrs/wk

0.5-0.7

hrs/wk

0.7-1.0

hrs/wk

0.5-1.5

hrs/wk

0.5-1.0

hrs/wk

0.3

hrs/wk

Update Status

in Tracking

System

Update Status

in Tracking

System

Daily Logging and Bi-Weekly Payouts

Value-Added: 2.5 – 4.0 hrs/wk

Incidental: 1.5 – 2.0 hrs/wk

Non-Value-Added: 0.0 hrs/wk

Total: 4.0 – 6.0 hrs/wk

0.3

hrs/wk


VSM is called “Material and Information Flow” by Toyota

The top part of the map is for information flow ( from right to left)

The bottom part of the map is for material flow (from left to right)

VSM with Information Flow (Toyota System)


Spaghetti Diagrams

Spaghetti diagrams show the path taken by a person or product lot through a

portion of the processing flow

▪ Highlights handoffs and potentially wasted motion in the process


Continuous Flow Manufacturing

Continuous Flow Manufacturing (CFM)

Objective: move material one piece at a time, at a rate determined by the needs

of the customer

▪ Supports the Flow, Pace, Pull and Level objectives of Lean Manufacturing

Utilizes a number of techniques

▪ Kanban (pull system) to signal when the next operation needs product

▪ Poka-Yoke (mistake proofing) to prevent defects from proceeding

▪ Inspections and self-checks to catch defects

▪ Total Productive Maintenance to ensure high line capability

▪1 ▪2 ▪3 ▪4 ▪5 ▪1 ▪2 ▪3 ▪4 ▪5

▪ WIP (Work in progress)


Theory of Constraints (TOC)

Developed by Eli Goldratt

▪ “The Goal” (1986) and “Theory of Constraints” (1990)

Objective

▪ Maximize throughput and minimize cycle time

Three basic measures

▪ Throughput

▪ Inventory

▪ Operational Expense

Focus

▪ Identify bottleneck constraint and reduce it’s impact


Theory of Constraints (cont.)

Procedure

▪ Identify the system constraint

▪ Ensure non-constraints are managed to provide materials and resources to the constraint

▪ Work to resolve the root causes of the constraint

▪ Repeat; look for new constraints

Drum – Buffer - Rope

▪ Goal: Ensure a smooth flow of material to the constraint

▪ Drum: The pace of the operation as determined by the constraint

▪ Buffer: Inventory at the bottleneck to ensure it never waits

▪ Rope: Feedback mechanism to ensure buffer is maintained at the proper inventory level

TOC promotes the Flow, Pace, Pull and Level principles


Visual Factory

Visual Factory communicates critical information quickly

Objective: Make relevant problems obvious to all in real time

R O U T E

Relevant EngageObviousUnderstand

QuicklyTimely

• Key

Performance

Indicators

• Key Steps

• Key Locations

• In Plain Site

• Simple (e.g.,

light tower)

• Show Status

vs Standard or

Goal

• Colors to

Highlight

Issues

• Emphasize

Visual

Displays (not

numbers)

• Update

Regularly

• Ideally Update

Automatically

• Create

Urgency

• Create

Ownership

• Drive Action


Visual Factory (cont.)

Visual Factory examples

Light Tower allows

real time visual

notification of

problems

Blue tape makes it

obvious when

setup is not per

standard


5S

5S is an important element of visual control

▪ Enables detection of non-standard practices

Instills order and cleanliness in the workplace by:

▪ Establishing orderly workplace

▪ Sustaining the new order

Achieved by:

▪ Sort: clear out unnecessary items

▪ Set in Order: arrange & mark optimum work area layout

▪ Shine: clean workplace regularly

▪ Standardize: document best practices

▪ Sustain: maintain workplace best practices


Poka-Yoke (Mistake Proofing)

Pronounced POH-kah YOH-kay

▪ It is a translation of a shortened Japanese phrase meaning “to make mistakes impossible”

Developed by S. Shingo of Toyota

▪ Shingo calls it “Zero Quality Control” (ZQC)

Why is Poka-Yoke important?

▪ It has extremely high impact, usually at little cost

▪ Conceptually is one of the simplest tools to learn

Poka-Yoke has two parts:

▪ Making mistakes impossible (prevention and solution)

▪ Making mistakes immediately obvious (detection)

Example

▪ Machine part design only allows the correct install orientation


Total Productive Maintenance (TPM)

Total Productive Maintenance (TPM) originated in Japan as a method for

improved machine availability through better utilization of maintenance and

production resources.

TPM is a critical adjunct to lean manufacturing.

TPM enhances lean efforts

and facilitates productivity

1. Starts with 5S / Visual Factory

2. Analyzes downtime events by cause,

frequency, and duration

3. Prevents downtime using effective

Preventive Maintenance (PM)

4. Predicts downtime using Predictive

Maintenance

5. Expands role of Operator as first point of

early warning and prevention


Total Productive Maintenance (TPM)

TPM eliminates waste and lost time:

▪ Due to equipment downtime and setup

▪ Due to idling and minor stoppages

▪ Due to discrepancies between designed and

actual speed of equipment

▪ Due to process defects

▪ Due to quality problems at startup

Photo source:

http://blogs.rhsmith.umd.edu/stephen/2010/10/

Maintenance losses

▪ Maintenance labor parts & supplies

▪ Outside resources

Defect Losses

▪ Process defects

▪ Reduced yield

Downtime Losses

▪ Equipment breakdown

▪ Setup and adjustment

Speed Losses

▪ Idling and minor

stoppages

▪ Reduced

operating speed


TPM: Overall Equipment Effectiveness

Total Time

Ava

ilabili

ty A Operations Time (Scheduled Time)

*Non-

scheduled

Time

B Uptime*UPDT, PDT

*Setup

Perf

orm

ance

C Manufacturing Time

D Productive Time* Speed

Losses

* Idle

Time

Qualit

y E Actual output

F Good output*Scrap/rework

*Startup losses

OEE = B/A x D/C x F/E = F/A

Availability Rate x Performance Rate x Quality Rate


Setup Reduction

Setup Reduction (SUR)

▪ Also known as Single Minute Exchange of Die (SMED) or Quick Changeover

Objective

▪ Reduce changeover and setup times to <10 min

Benefits

▪ Increases operational flexibility, especially for high-mix, low-WIP

▪ Reduces waste (waiting, inventory)

▪ Increase area utilization and capacity


Setup Reduction (cont.)

Techniques

▪ Convert Internal Setup (IS) activities to External Setup (ES)

• Internal Setup must be performed while the machine/process is stopped

• External Setup can be performed while the machine/process is still running

▪ Remove useless setup steps, adjustments and quals

▪ Simplify tooling (jigs, clamps, interlocks, etc.)

▪ Simplify procedures

▪ Do procedures in parallel

▪ Standardize (checklists)


Kaizen

“Kai” means “change.” “Zen” means “good” (for the better).

Kaizen typically means small improvements, carried out on a continual basis

and involving all people in an organization.

Objective: Reduce losses and inefficiencies in the workplace

Example Kaizen system: Idea System

A version of Kaizen called Kaizen Blitz is a focused, short-term effort to resolve

a specific issue. Typically <1-2 wks.


Lean Summary

Lean Principles: Flow, Pace, Pull, Level

Lean Tools

Kaiz

en

On-time Delivery

Goals

Setu

p R

eduction

TP

M

Poka-Y

oke

5 S

Vis

ual F

acto

ry

Cont. F

low

Mfg

VS

M

Lean Focus: Enhance Value Stream

Lean Strategies: Eliminate Waste, Control Variability, Increase Flexibility & Synchronize

to Customer Demand


Summary

Thank you for attending!

This course has covered the following:

▪ The concepts of Lean Manufacturing and Value Stream

▪ Types of activities: Value-Added, Non-Value-Added and Incidental

▪ The 7 types of wastes

▪ 4 strategies to remove waste

▪ Several lean tools

Questions?


Attachment: To Batch or Not To Batch


Small Queue Batches Reduce Inter-Step Wait Times


Small Queue Batches Reduce Inter-Step Wait Times

710

16

0

5

10

15

20

1-pc 2-pc 4-pc

Cycle

Tim

e (

min

)

Queue Batch Size

Cycle Time vs Queue Batch Size


Process Batching Capacity Allows Units to Process in Parallel

To minimize cycle time, match the queue batches to the process capacity

710

16

0

5

10

15

20

1-pc 2-pc 4-pc

Cycle

Tim

e (

min

)

Queue Batch Size

Cycle Time vs Queue Batch Size(Process Batch Capacity = 1)

75

8

0

5

10

15

20

1-pc 2-pc 4-pc

Cycle

Tim

e (

min

)Queue Batch Size


75 4

0

5

10

15

20

1-pc 2-pc 4-pc

Cycle

Tim

e (

min

)

Queue Batch Size


lean manufacturing toolbox - mnasq.org · tim conway lean manufacturing toolbox 36 value stream...

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