Approaches to Lean & Agile Mfg

8/9/2019 Approaches to Lean & Agile Mfg

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LEAN and AGILEapproaches to manufacturing

and process improvement

Dr Peter Ball

Centre for Strategic Manufacturing

www.dmem.strath.ac.uk/csm/

[email protected]

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DMEMDMEM


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The frog!

Rebbit!

OoC

5OoC

10OoC

Uh oh!

Rebbit!

Poikilothermic (= dont try this at home)


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A Lean and Agile Manufacturing

What are they?

What are the benefits? How to do it?

Case studies

Sources of further information


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Lean Thinking roots in Toyota Philosophy

Doing it all for the Customer

Levelled production Pull system

Continuous-flow production

Takt time

Multi-skilling

TQM

TPM

Poka Yoke

SPC

Standardised work

Kaizen

workcentre

workcentre

K K

store

replacement batches

kanbanswithdraw & process

Item Qnty Day 1 Day 2 Day 5

Runner 100 20 20 20

Repeater 27 7 7

Stranger 5 5Load 132 27 27 25

Capty 135 27 27 27

Uncompetitive Competitive

Competit

or

Contin

uousim

provem

entSe

lf

Presentc

hange

Compe

titi

ven

ess

Time

time

Upper action limit

Upper warning limit

average

action?


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What is Lean Manufacturing?

Builds on roots but with specific focus on:

Lead time reduction Regular production

New products

Flexibility improvementVariability reduction

Cost reduction


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Lean Characteristics & Benefits

Characteristics Benefits (higher )

Customer Driven

Customer Driven

Profit Driven

Profit Driven

Team Based

Team Based

Fewer Players

Fewer Players

Devolved responsibility

Devolved responsibility

Customer Satisfaction

Customer Satisfaction

Profitability

Profitability

Greater Control

Greater Control


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Improving business performance

Increase turnover

Sell more Charge more

Reduce cost Reduce direct material cost

Improve production efficiency/effectiveness

Increase the rate of adding value


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Time based competitiveness - some rules

0.05 to 5 Value actually added between 0.05% - 5% of total time

Source: survey of industry (by Boston Consulting Group?)

3 / 3Why no value being added:

Waiting for completion of batches

Waiting for physical / intellectual rework

Waiting for management decision

3 x 2 Lean competitors enjoy x3 avg growth rate, x2 profit margin

1/4 - 2 - 20 For every quartering of total time, productivity doubles,

costs reduce by 20%


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What is World Class Manufacturing?

Being the best

Being the lowest

cost producer

Delighting the

customer?

Schonbergersagenda?


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What is World Class Manufacturing?

Product quality right

first time, every time

Product quality right

first time, every time

Reduction of waste

in the manufacturing

system

Reduction of waste

in the manufacturing

system

Flexibility & control to

satisfy customer ontime, every time

Flexibility & control to

satisfy customer ontime, every time

Managing through

people, teams and

aligning all to goals

Managing through

people, teams and

aligning all to goals


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How to go lean

Objective Method

Understand customers and

what value they want

Setting the direction,

targets and checking

results1

Define the internal value

stream

An internal framework for

delivering value2

Eliminate waste, make info

& products flow, pulled by

customer needs

Appropriate method to

make necessary change3

Extend the definition ofvalue outside your

company

Externalise the value focusto the whole value stream

4

Continually aim for

perfection

Strive for perfection in the

product and in all

processes and systems5


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Cornerstone of Lean Manufacturing

Value stream mapping Construct process map of the value stream

Avoid using existing maps, may be out of date or have

misconceptions

Analyse the process map

Focus on customer

Identify value-added and non-value-added activities Calculate the value-add ratio

Reduce and eliminate wasteful steps

(several value streams exist in a value chain,

e.g. key product line to key customer)

Many mapping tools (process activity,

supply chain response, quality filter, etc.)

Many mapping tools (process activity,

supply chain response, quality filter, etc.)

Conduct all improvements in context of value-add ratio


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Example of process map

Note value-add time -vs- lead time


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Demand amplification mapping

Many tools exist including demand amplification

mapping

Concerned with batching and response time

Spreadsheet example from IOM publication shows

effect


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Capability of processes and the dangers

Need to establish capability in all processes Need capable machines

Need capable suppliers etc.

Danger is that you can base lean on poor foundations Focus on assembly area when machine shop is not capable

Focus on production processes when supplier is not capableNeed to be careful with available literature, can assume

You have sales and operations planning

You have capable machines

etc.

If your production planning function was likely

to produce infeasible plans occasionally wouldyou trust them?!

If your production planning function was likely

to produce infeasible plans occasionally wouldyou trust them?!

See roots of lean

thinking slide


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Capability / variance

Variation of output of a process can give rise to defects

internally and/or passed onto customerAim to reduce process variation to increase reliability of

a process

This is the foundations of Six Sigma methodology

Nominal

Upper

specificationlimit

Lower

specificationlimit

36

Defects 1350 parts per million

Defects 0.001 ppm


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Six Sigma

A complete methodology for improving the business or simply a process

reliability concept?

Key to Motorola, GE and other businesses at all levels

Executive visionExecutive vision

Assess & kickoffAssess & kickoff

Deploy strategyDeploy strategy

MeasurementMeasurement

AnalysisAnalysis

ImprovementImprovement

ControlControl

Select champions

Train and set up structure

Map, id critical input/output variables

Determine variance

Design of experiments

Use control charts

Projectim

plementation


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Agile a step on from lean?

Roots of agile in America defence industry developingthe ability to react and reorganise to successful

equipment bidsLean and agile have common components

See Lean Thinking Roots slide (quality, reliability,improvement, etc)

But lean is process focused, agile is boundary focused

Ability to thrive in constant, unpredictable change

Key attributes of agile Customer value focus (solutions not products)

Flexibility to adapt to fundamental market changes

Not simply changes in product mix Competing from multiple fronts, possibly virtually

Organisational knowledge, including ability to adapt IT systemsto support new processes


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Different views on lean -vs- agile

TraditionalTraditional LeanLean AgileAgile

The journey

LeanLean AgileAgile

Make to stock

Low variety

Mass, repetitive

Cost minimiser

Make/Engineer to order,

High variety, Service culture

Product Innovator?

Customer intimate?

A spectrum of companies

ComplementaryStock

(to decouple)

LeanLean AgileAgileMaterial

supplierscustomer

Make to forecast Make to order

Upstream variation Downstream variation


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Establishing Foundations for Lean, Agile

Need the classic pre-requisites for any programme Strategy

Commitment

Objectives

Communication

Empowerment

Establish framework

Activity plan, cost, time and execution

Measurement and evaluation system

Culturechange

Use of

champion


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Key to Lean Manufacture is measurement

Need clear, objective focus on value

Example: OEE (Overall Equipment Effectiveness) A composite measure of the ability of a process to carry out

value adding activity

OEE = % availability x % output achieved x % perfect

output

If change to a process increases OEE it is worthwhileActual Available Production Time

Theoretical time minus planned downtime and shutdowns

This is the realistic best available production time (100%)

Planned Downtime

PM, Shutdowns,

Holidays

Machine Running Time

Actual production hours minus downtimes

This is possible production if 100% performance

Unplanned Losses

Breakdowns, HR,

Set-up time

Availability

Net Operating Time

Machine speed against theoretical speed

This is the possible output if 100% quality

Speed losses

Idling, minor

stopages

performance

Performance

Useful Production Time

Material in minus product out

This is the real output

Quality Losses,

adjustments, Set-up

waste

Quality

OEE


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OEE Example Calculation

Performance

G. Total dozens produced = 3869 dozen

H. Balanced Speed (180 BPM=0.067) = 0.067

I. Performance (HxG / Ex100) = 85%

Quality

J. Rejects during operating time = 20 dozen

K. Rate of quality products (G-J / Gx100) = 99%

Overall Equipment Effectiveness

OEE (F x I x K / 10000) = 52%

Loading Time

A. Working Time = 525 mins

B . Line Off Time = 30 minsC. Loading Time (A-B) = 495 mins

Line Off Time

Lunch break 30 mins

Asset Care 0 mins

Availability

D. Downtime = 190 mins

E. Operating Time (C-D) = 305 mins

F. Availability (E divided by C x 100) = 62%

Downtime

Start up 30 mins

Shut down 20 mins

Breakdown 40 mins

Changeovers 90 minsMaterials Supply 10 mins


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Cost benefit analysis

Costs Benefits (higher )

InvestigationInvestigation

ImplementationImplementation

Project specificProject specific

Customer SatisfactionCustomer Satisfaction

ProfitabilityProfitability

Greater ControlGreater Control


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Summary

Strategy that encompasses business [profit] objectives

and customer order winning [and maintaining] criteria

Achieve short-term, KPI-driven improvements

consistent with strategy

Plan and act for sustainable change


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Example: Rolled metal manufacture (batch)

Major initiative to remove waste Significant formal education and training

Targeted specific product stream

From supplier to customer

Mapped out processes and established measures

ResultMajor quality improvements, 60% drop customer complaints

Other significant financial benefits

Short / long term EVA moved negative to neutral

(EVA=Economic Value Add -> sustainable

investment)Openness of data systems!


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Example: Bottled water (process)

Phase 1 Education and training of teams

Use of DTI funding via TCS Programme (tcd.co.uk)

Full integration of sales, purchasing, manufacturing

Improved management information system

(Soft) greater teamwork, responsiveness

From 80% to 100% peak season stock cover

Sales up 30%, same headcount

Phase 2 (underway) Production processes focus

Introducing OEE Focus on waste

CI, include quick changeovers

Ambitious, achievable targets

Self-managed work teams

DEPALLETISER

TOPSTAR/DUBUITT

RINSER

FILLER

CAPPER

LABELLER

OCME (S/wrapper)

HANDLE APPLICATOR

PALLETISER

STRETCHWRAPPER

CASE SEALER

CASE ERECTOR

CASE PACKER

FILLING

HAL

L

BOTTLIN

G

HALL


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Example: Whisky bottling (process)

Use of OEE as key measure

Specific focus on bottling lines Low OEEStart / stop

Breakdowns

Introduced asset care

5S Sort, Straighten, Sweep, Standardise, Self discipline

Quick changeovers

Reliability centred maintenance

Asset care programme brought 0.5m savings in 6

months


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Useful sources of information

www.competitiveSCOTLAND.com Seminars, resources & discussion for Scottish manufacturing

Centre for Strategic Manufacturing web site dmem.strath.ac.uk/csm/ (this presentation, resources, lean courses)

James Womack & Daniel Jones, Lean Thinking: Banish Waste and CreateWealth in your Corporation (Simon & Schuster, 1996)

John Bicheno, The Lean Toolbox, 2nd edn (Picsie Books, 2000)http://www.picsie.co.uk/ (10?)

Peter Hines & David Taylor, Going Lean: a guide to implementation (LeanEnterprise Research Centre, Cardiff Business School, 2000)

Institute of Operations Management (IOM) Papers and courses on Lean, Agile, etc, see iomnet.org.uk

Seminars (e.g. Recently: Lean at Boots, 5S at Ratheon)

Pande, Neuman, Cavanagh, R.R. 2000 "The Six Sigma Way, McGraw-HillISBN 0-07-135806-4 (20)

For knowing about it without actually dealing with the detail

Breyfogle 1999 "Implementing Six Sigma - Smarter Solutions Using StatisticalMethods" Wiley-Interscience ISBN 0-471-29659-7 (60) Good for detail if you actually want to implement it

Agile http://www.agility.co.uk/ or internet search for agile (care with agility!)


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LEAN and AGILEapproaches to manufacturing

and process improvement

Dr Peter Ball

Centre for Strategic Manufacturing

p d ball@strath ac uk

CentreforS

trate

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CentreforS

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DMEMDMEM

These slides can be downloaded from:www.dmem.strath.ac.uk/csm/

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Approaches to Lean & Agile Mfg

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