Lean knowledge

DMA Kulasooriya ISL-Certified SixSigma Black Belt

Email: Kulasooriyadma@yahoo.com

Hotline: 0777 536668

Doing More With Less

Knowledge

DMA Kulasooriya Consultant – Six Sigma and Lean Practices

ISL Certified Six Sigma Black Belt

Hotline: 0777 536668

Agenda

• Five Principles of lean

• Identify Value

• Value Stream Mapping

• Creating Flow

• Pull From the Customer

• Continual Improvement

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Non- Cost Principle of

Toyota

Traditional View: Cost + Profit = Sales Price

Lean View: Profit = Sales Price – Cost

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Compress the time

required to create value

(Look for one piece flow)

Produce only

what and when

needed

(Kanbans)

Relentlessly

eliminating

Perfection Specify

Identify the

value stream

Continuously apply

the lean principles to

attack waste

Value defined by

the customer.

Agree what this is

Define the chain

of value adding

steps from raw

material to

Customer

‘Lean’ principles

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Learning to See

Whenever there is a product for a customer, there is a value stream.

The Challenge lies in seeing it.

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Value Stream Mapping

VSM is visualization tool oriented to the Toyota version of lean manufacturing (Lean Production System)

It helps people to understand and streamline work processes and then apply certain tools of Toyota production System

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A value stream is all the actions (both value added and non-value added ) currently required to bring a product through the main flows essential to every product

1. Production flow from raw material in to the arms of the customer

2. The design flow from concept to launch

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Value –Stream Mapping (VSM) is a

pencil and paper tool that helps you

to see and understand the flow of

material and information as a

product makes it way thorough the

value stream.

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What is Value Stream Mapping

A value stream is all the actions currently required to bring a product

\service from raw form through to the arms of the customer.

Total Value Stream

Suppliers In-house activities Customer /end user

IMPORTANT

Always start at the customer

end of the stream.

-What do they see as value?

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Value –Stream Mapping Steps

Product

Family

Current-state Drawing

Future –State Drawing

Work plan & Implementation

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Current – State Map

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Drawing the Current-State

Map - Tips

• DIY – While walking along the actual

pathways of material and information flows

• Begin at the shipping end and work

upstream – Voice of Customers in Mind

• Always draw by hand in pencil

• Drawing by hand means that you can do it

yourself.

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Mix in Bowl Pour into Mould Cook in Microwave Present

Batch Size = 1

Cycle Time = 10

No. Operators = 1

per shift

Shift =

Days/Nights

Batch Size = 1

Cycle Time = 2

No. Operators = 1

per shift

Shift =

Days/Nights

Batch Size = 2

Cycle Time = 60

No. Operators = 1

per shift

Shift =

Days/Nights

Require basic information at each of the stages.

How to Draw the Current State Map Material Flow

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Step - 01 Draw customer, supplier and production control icons.

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Step - 02 Enter customer requirements per month and per day

Step - 03 Calculate daily production and container requirements.

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Step - 04 Draw outbound shipping icon and truck with delivery frequency.

Step -05 Draw inbound shipping icon, truck and delivery frequency

Step - 06 Add process boxes in sequence, left to right.

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Step -07 Add data boxes below

Step -08 Add communication arrows and note methods and frequencies.

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Step -09 Obtain process attributes and add to data boxes.

Step -10 Add operator symbols and numbers.

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Step- 11. Add working hours.

Step- 12. Cycle and Lead Times

Step -13 Calculate Total Cycle Time and Lead Time

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Value Added: Any process that changes the

nature, shape or characteristics

of the product, in line with

customer requirements e.g

welding, assembly

(Maximise)

Non Value Added: Any work carried out, which

is necessary under current

conditions, but does not

increase product value e.g

setup, part movement,

tool changing, maintenance, etc

(Minimise)

Waste: All other meaningless, non-

essential activities that don’t add

value to the product (Minimise)

Value Added, Non-Value Added and Waste

Value Analysis

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Value-Add (VA) vs. Non-Value-Add

(NVA) Analysis

• Purpose is to distinguish process steps

that customers are willing to pay for from

those they are not

• Objectives

• Identify and eliminate the hidden costs that do not add value for

the customer

• Reduce unnecessary process complexity, and thus errors

• Reduce the process lead time, improve PCE

• Increase capacity by better utilizing resources

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Value Classifications

CVA- Any activity in a process that

is essential to deliver the service or

product to the customer

( customers would be willing to pay for

this work if they knew you were doing

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BNVA – Activities that are

required by the business to execute

VA work, but add no real value from

a customer standpoint.

NVA – Activities that add no value

from the customer's perspective and

are not required for financial, legal, or

other reasons

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Future – State Mapping

The Purpose of value-Stream Mapping is to highlight sources of waste and eliminate them by implementation of a future-state value stream that can become a reality within a short period of time.

The Goal is to build a chain of production where the

individual processes are linked to their customers either by continuous flow or pull, and each process gets as close as possible to producing only what its customers need when they need it.

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Some Test to asses the Leanness

• Calculate Stock Productivity

• Calculate OEE

• Process Cycle Efficiency (PCE)

• Changeover Time (COT)

• Competencies of People – Multi –Skilled

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Stock Productivity

Stock Productivity = Stock Turnover * Gross Profit Margin

PCE = (Total Processing Time/Lead Time)* 100

Process Cycle Efficiency

Overall Equipment Effectiveness (OEE)

OEE = Available time* Performance * Quality Rate

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Overall Equipment Effectiveness (OEE)

OEE = Available time* Performance * Quality Rate

Available time = Scheduled Time – Down time

Scheduled time

Performance Efficiency = Standard CT * Total Production

Actual Cycle time * Total Production

Quality Rate = Total Production – Total Rejected

Total Production

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1.What is the takt time based on the available working time of

your downstream processes that are closest to the customer?

2. Will you build to a finished good supermarket from which the

customer pulls or directly to shipping?

3. Where can you use continuous flow processing?

4. Where will you need to use supermarket pull systems in

order to control production upstream processes

Motto:

What can we do with what we have? (Don’t think about Product design, Processing Machinery,

Remote location etc.)

Key Questions for the Future State..

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Lean Manufacturing is to get one process to make only what the

next process needs when it needs it. – Linking all processes –

from the final customer back to raw material – in a smooth flow

without detours that generates the shortest lead time, highest

quality, and lower cost

Takt Time – Synchronizes pace of production to match pace of

TT = Available working time per day/ Customer demand rate

per day

Guideline -01: Produce to your takt time

What Makes a Value Stream Lean?

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PDF file –Takt time

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Line Balancing - Current State

TAKT 30’m

A B C D E F G Operation

1 1 1 1 1 1 1 # Operators

Total C\T= 214’m

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30 28 30

Line Balancing – Future State

TAKT 30’m

AB C D E F G Operation

1 2 1 1 1 1 # Operators

Total C\T= 164’m

Combined Operation

Increase labour + jig

Add shift

SMED, 5S

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History of Takt Time

Takt is a German word which refers to the

beat of music. It can also mean cycle, rhythm or

repetition time. Sometimes it refers to the baton

of an orchestra leader.

During the 1930's, Germany and Japan were part

of the Axis and German engineers helped

organize the Japanese aircraft industry. They

used the analogy of a conductor's baton setting

rhythm for the entire orchestra. After the war,

Toyota picked up the word and concept for its

Just In Time or TPS.

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Takt Time Pre-Requisites

• Provide fast response (with in takt) to

problems

• Eliminate causes of unplanned

downtime

• Eliminate changeover time in down

stream, assembly type processes

• High process capability – Low defect

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Benefits of Takt Time

Production Stability- by limiting

overproduction, it stabilizes the system and

prevents buildups of inventory and the

subsequent stops and starts.

Workcell Design- Takt time helps cell

designers. In an ideal workcell, all tasks are

balanced, they all require the same time to

execute and that time equals the Takt time. If

any operation requires more than the Takt time,

the cell cannot produce at the necessary rate.

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Work Cell Design

Psychological- immediate feedback of performance

is a powerful motivator. When a workcell team tracks

takt time, they have a heightened awareness of

output rates and potential problems. They attempt to

achieve the Takt time on each cycle and immediately

make necessary corrections

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Guideline 02: Develop Continuous

FLOW wherever possible

Continuous flow refers to producing

one piece at a time, with each item

passed immediately from one process

step to the next without stagnation in

between.

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Cell Manufacturing

The concept of a small group of operators

performing all work necessary to make a

part , component or assembly is called cell

manufacturing.

The place where they work is called a

manufacturing cell.

There are both manual and automated cell

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Work Cell Operations

• Manual Process -An operator picks up the

material at the in box, walks from one station to

the next , performing the operation at each , then

drops off the completed material at the out box .

•The operator is able to produce one complete

unit with each circuit around the cell. The

process runs smoothly and continuously

producing as many as needed.

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Cell Operations – Cell with one operator and Six Workstations

Operator

Raw materials – In box Finished Items – out box

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Work Cell operations

•Typically cell is arranged in a U or L shaped

layout so the operator can easily reach

everything and step quickly from one station to

the next.

•The operator must be capable of performing the

operations at every workstation, including parts

inspection, equipment set up, and routine

maintenance

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One Piece Flow

One-Piece Flow is the

opposite of batch production.

Instead of building many

products and then holding

them in queue for the next

step in the process, products

go through each step in the

process one at a time,

without interruption.

Producing products one at a

time continuously improves

quality and lowers costs.

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Cell with two operator – Rabbit chase

In out

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Cell with two operator – Divided Cells

In out

Cell Design

Work Cell Size:

Answer depends on the number and kinds of

operations required to make a part or product and

on the number of operators required to staff the

cell: Multi skills need only a fewer number

Number of Operators : e.g. 10-15

Number of Operations: e.g.5-8

Cycle Time and Cell Capacity

Takt Time : is the target – It is the rate at which the cell

should produce

Cycle time : is the rate at which the cell actually

produces

The actual cycle time of an assembly cell is determined entirely by the

amount of time operators in the cell need to perform assembly tasks and

move between stations

When the cell has only one operator, the actual cycle

CT = € Task times + € Walk times

Cell Capacity = Time Available/ CT

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Guideline 03: Use Supermarkets to control Production where continuous flow does not extend upstream

There are often spots in the value stream

where continuous flow is not possible and

batching is necessary

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• Some processes are designed to operate

at very fast or slow cycle times and need to

change over to serve multiple product

families

• Some processes , such as those at

suppliers are far away and shipping one

piece at a time is not realistic

• Some processes have too much lead time

or are too unreliable to couple directly to

other processes in a continuous flow

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Product Product

Supermarket

“Production”

Kanban

“Withdrawal”

Kanban

Supplier

Process

Customer

Process

• Customer Process goes to supermarket and withdraws what it needs when it

needs it

• Supplying process produces to replenish what was withdrawn

• Purpose: Controls production at supplying process without trying to schedule

Use of Supermarket to Control Production

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Guideline 04: Try to send the customer schedule to only one production process

By using supermarket pull systems, you will

need to schedule only one point in your door-

to-door value stream. This point is called the

Pacemaker Process, because how you control

production at this process sets the pace for all

the upstream processes.

The pacemaker process is frequently the most

downstream continuous flow process in the

door-to-door value stream.

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How to Implement

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How to make a Process Lean

• Asses the degree of Leanness

•Calculate Takt Time

• Identify Pace Maker

• Line Balancing

• Create a Continuous Flow

• Design Pull where it is necessary

• Scheduling and Load Leveling

• Identify Kaizen Projects

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Assessing the Degree Leanness

Category Score

Leadership 0%

Culture 0%

Communication 0%

Visual Workplace and Visual Manufacturing 0%

Operator Flexibility 0%

Continual Improvement 0%

Source Inspection(Poka Yoke) 0%

SMED/Quick Changeover 0%

Quality 0%

Supply Chain 0%

Balanced Production 0%

Total Productive Maintenance 0%

Pull Systems 0%

Standardized Work 0%

Accounting Systems 0%

Engineering 0%

Performance Measurement 0%

Customer Communication/ Satisfaction 0%

Lean knowledge

Business

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