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Lean Manufacturing Training Series
Lean Overview©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Lean Overview and Lean Overview and SimulationSimulation
Lean Manufacturing Training Series
Lean Overview2
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Workshop StaffWorkshop Staff
Instructor President and Owner,
Buzz Electronics Enterprises
Lean Manufacturing Training Series
Lean Overview3
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
EDI ServicesEDI Services
Advanced Technology Development Center (ATDC)
Economic Development Services Business and Industry Services
Lean Manufacturing Training Series
Lean Overview4
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Business & Industry ServicesBusiness & Industry Services
Energy Environmental Information Technology Marketing and Strategic Planning Process Productivity Quality & International Standards
Lean Enterprise
Lean Manufacturing Training Series
Lean Overview5
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Regional Field Office NetworkRegional Field Office NetworkAlbany
Athens
Augusta
Brunswick
Carrollton
Cartersville
Columbus
Dalton
Douglas
Dublin
Gainesville
Griffin
Macon
Newnan
Rome
Savannah
Warner Robins
(229) 430-4188
(706) 542-8900
(706) 737-1414
(912) 634-4860
(770) 836-6665
(770) 387-4002
(706) 649-1661
(706) 272-2702
(912) 389-4717
(478) 275-6543
(770) 531-4550
(770) 233-5577
(478) 751-6362
(770) 254-7592
(706) 802-5957
(912) 963-2509
(478) 953-3155
www.edi.gatech.edu/lean
Lean Manufacturing Training Series
Lean Overview6
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Learning ObjectivesLearning Objectives
Learn techniques to improve profitability. Experience the impact of Lean practices
on a production process. Learn techniques for reducing inventory
levels. Learn how to eliminate waste.
Lean Manufacturing Training Series
Lean Overview7
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
You Will Learn AboutYou Will Learn About
The differences between traditional and lean manufacturing
Identifying areas of wasteThe impact of waste reduction on:
Productivity Quality Profitability Customer Satisfaction
Lean Manufacturing Training Series
Lean Overview8
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Workshop AgendaWorkshop Agenda
1. Introduction & Orientation Production Round 1
2. Lean BackgroundLean Tools 1-6
3. Production Round 2
4. Lean Tools 7-12Production Round 3
5. How to Implement LeanSummary with Q&A
Break
Lunch
Break
Break
Lean Overview
Lean Manufacturing Training Series9
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Lean Overview and Lean Overview and SimulationSimulation
Orientation to Buzz Electronics Enterprises (BEE)
Lean Manufacturing Training Series
Lean Overview10
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Buzz Electronics EnterprisesBuzz Electronics Enterprises
Product Catalog
Lean Manufacturing Training Series
Lean Overview11
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
The Blue AvengerThe Blue Avenger
Basic model for
every day use
Lean Manufacturing Training Series
Lean Overview12
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
The Red DevilThe Red Devil
Industrial model for
commercial use
Lean Manufacturing Training Series
Lean Overview13
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
The Gold BuzzThe Gold Buzz
Premium model for the
sophisticated user
Lean Manufacturing Training Series
Lean Overview14
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
The Bottom LineThe Bottom Line
The Blue Avenger Sells for $20 Materials cost $5.00
The Red Devil Sells for $30 Materials cost $7.50
The Gold Buzz Sells for $50 Materials cost $10.00
Labor Cost = $7.50/person/shiftFacilities Cost = $10.00/table/shift
Lean Manufacturing Training Series
Lean Overview15
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
BEEBEE Production Process Orientation Production Process Orientation1. Sales Representative2. Production Scheduler3. Kitter(s)4. Material Handler5. Spring Assembler6. Resistor Assembler7. LED Assembler8. Diode Assembler9. GoldBuzz Assembler10. Inspector11. Reworker12. Warehouse/Shipping Clerk13. Packager14. Industrial Engineer(s)15. Instruction Crib Attendant
Processes Customer OrdersGenerates Factory Orders from forecastOrganizes raw materials for Factory OrdersMoves product between ALL workstationsInserts springsInserts resistorsInserts LEDsInserts diodesProduces complete boardConducts functional tests (all boards)Repairs failed boardsMatches boards to Customer OrdersPackages finished productPerform engineering functionsControls work instructions
Lean Manufacturing Training Series
Lean Overview16
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
BEEBEE Production Facility Orientation Production Facility Orientation
Sales Sales OfficeOffice
Production Production ControlControl
ReworkReworkAreaArea
Diode Diode AssemblyAssembly
Kitting Kitting AreaArea
GoldBuzzGoldBuzzAssemblyAssembly
Inspection Inspection AreaArea
ResistorResistorAssemblyAssembly
Finished Finished Goods Whse.Goods Whse.
WIP WIP StorageStorage
LED LED AssemblyAssembly
SpringSpringAssemblyAssembly
Shipping Shipping DockDock
Lean Manufacturing Training Series
Lean Overview17
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
BEEBEE Circuit Board Orientation Circuit Board Orientation
A B C D E
1
2
3
4
5
Blue, Red, or Gold Boards
C-3
Lean Manufacturing Training Series
Lean Overview18
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
BEEBEE Product Components Orientation Product Components Orientation
Resistors
Diodes
Buzzers
Transistors
Springs
Jumpers
LED’s
-+
-+
+-
Lean Manufacturing Training Series
Lean Overview19
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
BEE Product RoutingBEE Product Routing
Blue
LEDx1
Test
9v
Springsx5
Resistorx1
Diodesx2
Red
LEDx1
Resistorsx3
Test
9v
Springsx5
Gold
Springsx8
TEST
9v
Resistorsx3
Transistorsx2
Jumperx1
Buzzerx1
Lean Manufacturing Training Series
Lean Overview20
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Example Circuit Board AssemblyExample Circuit Board Assembly
Red Devil
A B C D E1
2
3
4
59v
Lean Manufacturing Training Series
Lean Overview21
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Inserting ComponentsInserting Components
Lean Manufacturing Training Series
Lean Overview22
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Production BatchingProduction Batching
6 per batch
4 per batch
Hand-crafted 1-at-a-time
Lean Manufacturing Training Series
Lean Overview23
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
BEEBEE Production Scheduling Process Production Scheduling Process
Customerorderforms
Factoryorderforms
FinishedGoods
Warehouse
Customerorders
(demand)
Production forecast
Shipments to
customers
Lean Manufacturing Training Series
Lean Overview24
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
BEEBEE Customer Service Targets Customer Service Targets
4 minutes after order
5 minutes after order
6 minutes after order
Promisedshipments
tocustomers
Blue
Red
Gold
All orders are filled “first-in, first-out”Late shipments are discounted by 30%
Lean Manufacturing Training Series
Lean Overview25
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
BEEBEE Company Policies Company Policies
1. All shifts are 20 minutes.
2. Keep busy at all times.
3. Yell if you need parts.
4. Handle all parts first in-first out.
5. Only the material handler can move parts.
6. Stay at your workstation.
7. The boss is always right!
Lean Overview
Lean Manufacturing Training Series26
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Round 1Round 1
Let’s Get To Work!!
Lean Manufacturing Training Series
Lean Overview27
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
ResultsResults
Production Round # (20 Minutes)
>20 5% 22 53>20 13% 11 2118 25% 4 8
1
Mfg. Cycle Time (Min)
% On-Time
Delivery
Initial Units In Process
including FG
# Units in Ending WIP including
FG
Lean Manufacturing Training Series
Lean Overview28
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
ResultsResults
Production Round # (20 Minutes)
Sales ($)
Total Costs ($)
Profit ($)
1464
# of Units Sold
(late+ontime)
1 660.00 1,004.50 -344.50
Lean Manufacturing Training Series
Lean Overview29
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
A Manufacturing Background Lean Manufacturing Foundation: Waste Reduction Lean Manufacturing: Basic Concepts Lean Manufacturing: Further Concepts
Lean Manufacturing AgendaLean Manufacturing Agenda
Lean Manufacturing Training Series
Lean Overview30
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Profile of a Traditional ManufacturerProfile of a Traditional Manufacturer
Characteristics of your operation:
Lean Manufacturing Training Series
Lean Overview31
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Profile of a Traditional ManufacturerProfile of a Traditional Manufacturer
Inventory built to forecast Inventory used to satisfy customer
demand Excessive work in process (WIP) Large batch sizes Focused on a small piece Cost-cutting focus Department/work center efficiency
measures
Lean Manufacturing Training Series
Lean Overview32
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Customer Requirements
1800’s 1900’s1700’s Time 2000
• High volumes/High Inventories• Cost cutting focus/Efficiency
• Mass production/Automation• Assembly lines/Divided labor
TRADITIONAL
• Custom-made, one at a time• Highly skilled craftsperson• Non-standardized work• Non-interchangeable parts
CRAFT
Manufacturing HistoryManufacturing History
Lean Manufacturing Training Series
Lean Overview33
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Manufacturing TodayManufacturing Today
Speed Quality
And Flexibility
At the Lowest Prices
Global competition is drivingCustomers to seek and expect:
Lean Manufacturing Training Series
Lean Overview34
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Manufacturing HistoryManufacturing HistoryCustomer
Requirements
1800’s 1900’s1700’s Time 2000
• Custom-made, one at a time• Highly skilled craftsperson• Non-standardized work• Non-interchangeable parts
CRAFT
• Mass production/Automation• Assembly lines/Divided labor• High volumes/High Inventories• Cost cutting focus/Efficiency
TRADITIONAL
AnotherApproach?
Lean Manufacturing Training Series
Lean Overview35
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
concept by TPS; terminology by Womack an umbrella for good business practices a strategy for decreasing the time between
order placement AND delivery of goods or services
What is Lean Manufacturing?What is Lean Manufacturing?
Lean Manufacturing Training Series
Lean Overview36
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
A systematic approach to
identifying and eliminating waste
(non-value added activities)
through continuous improvement
by flowing the product
at the pull of the customer
in pursuit of perfection.
-- The MEP Lean Network
NIST DefinitionNIST Definition
Lean Manufacturing Training Series
Lean Overview37
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Lean ThinkingLean Thinking
“Where’s the bottleneck in my
company?”
“A group of interacting, interrelated, or interdependent elements forming a complex whole.”
American Heritage Dictionary, 3rd Edition
Lean Thinking begins with the SYSTEM
Lean Manufacturing Training Series
Lean Overview38
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
A Manufacturing Background
Lean Manufacturing Foundation:
Waste ReductionLean Manufacturing:
Basic ConceptsLean Manufacturing:
Further Concepts
Lean Manufacturing AgendaLean Manufacturing Agenda
Lean Manufacturing Training Series
Lean Overview39
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Foundation of Lean ManufacturingFoundation of Lean Manufacturing
Waste identification and reduction Value adding vs. non-value adding 5S Layout/Flow Point-of-Use Storage Setup Time Reduction Batch Size Reduction
Lean Manufacturing Training Series
Lean Overview40
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
What’s Stopping Industry?What’s Stopping Industry?
Lean Manufacturing Training Series
Lean Overview41
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Waste DefinedWaste Defined
Does NOT add value Does NOT result in conformance to
customer specs Customer would NOT pay
for it!
Lean Manufacturing Training Series
Lean Overview42
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Value AddedValue Added
Transform materials to product Meets customer expectations Customer would pay for it!
Lean Manufacturing Training Series
Lean Overview43
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Non-Value AddedNon-Value Added
Does not add value Is not necessary Should be eliminated, simplified,
reduced, or integrated
Lean Manufacturing Training Series
Lean Overview44
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Studying WasteStudying WasteVALUE ADDEDVALUE ADDED Drilling
MachiningCutting
WeldingAssembling Parts
Painting
Storing
Set - ups Inspecting
Moving
Conveying WaitingDeciding
Reworking
Traveling
Transporting
Paperwork
NON-VALUE NON-VALUE ADDEDADDED
NON-VALUE ADDED BUT ESSENTIALNON-VALUE ADDED BUT ESSENTIAL
Lean Manufacturing Training Series
Lean Overview45
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Where is Waste?Where is Waste?
Overproducing Defects - Rework or Scrap Inventory Waiting of parts/people/machines/
paperwork Transportation of parts, people, paper Extra Processing Motion of people, machines Unused employee ideas
Lean Manufacturing Training Series
Lean Overview46
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Waste in Your PlantWaste in Your Plant
Product Leadtime
95% 5%
Traditional Focus
Lean Focus
Value Adding activitiesNon-Value Adding activities
Lean Manufacturing Training Series
Lean Overview47
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Lean Manufacturing AgendaLean Manufacturing Agenda
Lean Background
Lean Manufacturing Tools 1-6
Lean Manufacturing Tools 7-12
How to Implement Lean
Lean Manufacturing Training Series
Lean Overview48
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Lean Manufacturing ToolsLean Manufacturing Tools
1) 5S
2) Layout/Flow
3) Point-of-Use Storage
4) Setup Time Reduction
5) Batch Size Reduction
6) Using Takt Time to Balance
Lean Manufacturing Training Series
Lean Overview49
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
5S5S
A safe, clean, neat arrangement of the workplace which provides a specific location for everything and eliminates anything not required.
Lean Manufacturing Training Series
Lean Overview50
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
A Place for EverythingA Place for Everything
Lean Manufacturing Training Series
Lean Overview51
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
5S Workplace Organization5S Workplace Organization
1. Sort
2. Set in Order
3. Shine
4. Standardize
5. Sustain
Lean Manufacturing Training Series
Lean Overview52
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Benefits of 5SBenefits of 5S
Removes safety hazards Eliminates waste caused by disorder
Searching for parts and tools Highlights abnormal situations Working with poorly-maintained equipment
Increases employee morale and pride Impresses current/potential customers
Lean Manufacturing Training Series
Lean Overview53
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Layout/FlowLayout/Flow
The physical positioning of - processes, - departments, - equipment, and - work areas
to optimize an organization’s effectiveness in achieving its operating objectives.
Lean Manufacturing Training Series
Lean Overview54
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Traditional Layout/FlowTraditional Layout/Flow
Departmental Specialty
Lean Manufacturing Training Series
Lean Overview55
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Lean Layout/FlowLean Layout/Flow
Product Focus
Lean Manufacturing Training Series
Lean Overview56
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Point-of-Use StoragePoint-of-Use Storage
Raw materials stored where used Frequent, small shipments from vendors Requires trustworthy workforce Simplifies physical inventory tracking
Lean Manufacturing Training Series
Lean Overview57
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Point-of-Use Storage of PartsPoint-of-Use Storage of Parts
Lean Manufacturing Training Series
Lean Overview58
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Printer Cart with Paper Storage Printer Cart with Paper Storage
Lean Manufacturing Training Series
Lean Overview59
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Benefits of Point-of-Use StorageBenefits of Point-of-Use Storage
Reduces material handling requirements
Easier to determine raw material needs
Reduces waiting for parts
Lean Manufacturing Training Series
Lean Overview60
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Setup TimeSetup Time
The time from the last good product of the previous run to the first consistently good product of the next run. Gathering necessary items Exchanging parts Positioning parts Making adjustments
Lean Manufacturing Training Series
Lean Overview61
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Benefits of Setup Time ReductionBenefits of Setup Time Reduction
Increases overall capacity Improves machine uptime Reduces start-up waste Makes smaller batches economical Reduces lead time
Lean Manufacturing Training Series
Lean Overview62
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Batch Size ReductionBatch Size Reduction
…Producing smaller amounts between runs
Large Batch Size
Is it me or does this seem
inefficient?
One-Piece Flow
Kathy, reducing batch size was a
great idea!
Lean Manufacturing Training Series
Lean Overview63
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Benefits of Batch Size ReductionBenefits of Batch Size Reduction
Reduces overall lead time Reduced WIP and inventory costs Less impact from quality problems Easier to maintain FIFO/lot control Greater flexibility Less reliance on forecasts
Lean Manufacturing Training Series
Lean Overview64
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Takt TimeTakt Time
Speed at which a product must be manufactured in order to satisfy customer demand
Calculated Value
Lean Manufacturing Training Series
Lean Overview65
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Takt Time CalculationTakt Time Calculation
=Takt TimeTime Available
DemandExample:
Time Available = 8 hours per dayDemand = 100 widgets per day
TaktTime=
8 hours
100 widgets0.08 hours = = 4.8 minutes
Lean Manufacturing Training Series
Lean Overview66
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Takt Time/ Cycle Time Bar ChartTakt Time/ Cycle Time Bar Chart
Takt time = 1.35
1.8
1.5
1.2
.9
.6
.3
0OP. 1 2 3 4 5 6 7 8
Min
utes
Lean Manufacturing Training Series
Lean Overview67
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Benefits of Takt TimeBenefits of Takt Time
Indicates what is required of process Provides target for production Paces production to demand Used to determine resource needs Used to balance production process
Lean Manufacturing Training Series
Lean Overview68
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
QuestionQuestion
How can Round 1 be improved?
Lean Overview
Lean Manufacturing Training Series70
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Round 2Round 2
Let’s Get To Work!!
Lean Manufacturing Training Series
Lean Overview71
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
ResultsResults
Production Round # (20 Minutes)
>20 5% 22 53>20 13% 11 2118 25% 4 8
5 51% 13 847 67% 7 247 100% 4 5
1
Mfg. Cycle Time (Min)
% On-Time
Delivery
Initial Units In Process
including FG
# Units in Ending WIP including
FG
2
Lean Manufacturing Training Series
Lean Overview72
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
ResultsResults
Production Round # (20 Minutes)
Sales ($)
Total Costs ($)
Profit ($)
1464
652412
# of Units Sold
(late+ontime)
1 660.00 1,004.50 -344.50
2 2,620.00 1,732.00 888.00
Lean Manufacturing Training Series
Lean Overview73
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Lean Manufacturing Tools 1-6Lean Manufacturing Tools 1-6
1) 5S
2) Layout/Flow
3) Point-of-Use Storage
4) Setup Time Reduction
5) Batch Size Reduction
6) Using Takt Time to Balance
DID IT WORK?
Lean Manufacturing Training Series
Lean Overview74
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Lean Manufacturing AgendaLean Manufacturing Agenda
Lean Background
Lean Manufacturing Tools 1-6
Lean Manufacturing Tools 7-12
How to Implement Lean
Lean Manufacturing Training Series
Lean Overview75
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Lean Manufacturing Tools 7-12Lean Manufacturing Tools 7-12
7) Visual Controls
8) Quality at the source
9) Standardized Work
10)Workforce/management practices
11)Pull Systems – Make to Order
12)Total Productive Maintenance (TPM)
Lean Manufacturing Training Series
Lean Overview76
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Visual ControlsVisual Controls
Simple visual signals Efficient Self-regulating Worker managed
Lean Manufacturing Training Series
Lean Overview77
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Types of Visual Controls Types of Visual Controls
Lights
Cards
Inventory
Lean Manufacturing Training Series
Lean Overview78
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Types of Visual ControlsTypes of Visual Controls
Red Zone
Yellow Zone
Green Zone
Part #17086910Shaft
Standard Pack: 100 pcs.Number of Signals: 10
Part #17089234Clutch
Standard Pack: 30 pcs.Number of Signals: 15
Information
Lean Manufacturing Training Series
Lean Overview79
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Visual Control in an Office SettingVisual Control in an Office Setting
Lean Manufacturing Training Series
Lean Overview80
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Visual Control in a FactoryVisual Control in a Factory
In the aerospace industry, it’s critical that mechanics know where all their tools are to avoid foreign object damage.
Lean Manufacturing Training Series
Lean Overview81
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Benefits of Visual ControlsBenefits of Visual Controls
Immediate understanding of condition Improved safety and housekeeping Reduced potential defects Reduced work-in-process Self-regulating Easy to use
Lean Manufacturing Training Series
Lean Overview82
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Quality at the SourceQuality at the Source
Places responsibility for quality on the worker doing the job
Promotes doing the job right the first time
Pass Fail
Lean Manufacturing Training Series
Lean Overview83
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Benefits of Quality at the SourceBenefits of Quality at the Source
Reduces need for rework Prevents work on defective product Simplifies prevention and repair of
defects
Lean Manufacturing Training Series
Lean Overview84
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Standardized WorkStandardized WorkWhere there is no Standard, there can be no Kaizen. -- Masaaki Imai
Three Elements of Standard Operations:
1. Takt Time
2. Work Sequence
3. Standard WIP
Standard Operations Sheet
Debur
Machine
Drill
Grind
QA
Clean
2
4
356
1
Takt Time
4 min
Cyc Time
4 min
Std WIP
= 6
Quality Chk Safety Focus # of Emp
2
Make it V
isible!
Lean Manufacturing Training Series
Lean Overview85
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Why the Emphasis on Standardization? Why the Emphasis on Standardization?
Continue to revise the standard; IMPROVE!!!
It is the foundation for continuous improvement -----------(promotes Kaizen)
Makes MBWA more effective
Builds trust
Improves Training/Cross Training
Encourages/provokes “How can this work even – better?” thinking among employees
Promotes team environment
Lean Manufacturing Training Series
Lean Overview86
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Workforce PracticesWorkforce Practices
Cross-trained employees Multi-skilled workers Employee problem-solving teams Team-based cells Continuous improvement philosophy
These require effective leadership, a culture change, and respect for the workforce!
Lean Manufacturing Training Series
Lean Overview87
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Benefits of Workforce PracticesBenefits of Workforce Practices
Increased morale and job security Quicker response to schedule changes Efficient handling of problems Improved communication, cooperation,
and trust Better understanding of the “big picture” Increased acceptance of management
decisions Increased flexibility
Lean Manufacturing Training Series
Lean Overview88
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Management PracticesManagement Practices
Must be a partnership NOT a quick fix Requires discipline Requires senior
management commitment Avoids “yet another
program” syndrome
Lean Manufacturing Training Series
Lean Overview89
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
The Waste of Work-in-ProcessThe Waste of Work-in-Process
Ties up capital Decreases flexibility Increases opportunity for scrap Requires more physical space Lowers customer satisfaction
Lean Manufacturing Training Series
Lean Overview90
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Push vs. Pull SystemsPush vs. Pull Systems
Pull System
End-of-line authorizes production to replace only what has been consumed
Push System
Schedules production based on forecast
11 22 33Product Flow Product Flow
Signal Flow
Signal Flow
Lean Manufacturing Training Series
Lean Overview91
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Characteristics of a Push SystemCharacteristics of a Push System
Lean Manufacturing Training Series
Lean Overview85
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-Working 30327
Characteristics of a Push SystemCharacteristics of a Push System
Forecast driven production schedule
Keep machines and people busy
Not responsive to real-time changes
Takes a lot of management effort
“I don’t need any of this
stuff!”
“Sorry, the schedule says
you do.”
Lean Manufacturing Training Series
Lean Overview92
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Characteristics of a Pull SystemCharacteristics of a Pull System
Lean Manufacturing Training Series
Lean Overview85
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-Working 30327
Characteristics of a Pull SystemCharacteristics of a Pull System
Production controlled by actual demand
Limited inventory of each item
Easy to see and respond to changes in demand
Managed at the point of use
Lean Manufacturing Training Series
Lean Overview93
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Benefits of a Pull SystemBenefits of a Pull System
Manufactures only what is needed Improves communication of customer
needs Provides common system for moving
material Eliminates scheduling complexities Reduces lead time and WIP Inventory counts quick and easy
Lean Manufacturing Training Series
Lean Overview94
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
11 22 33Product Flow Product Flow
Signal Flow
Signal Flow
XX
How Does Pull Work?How Does Pull Work?
X
Lean Manufacturing Training Series
Lean Overview95
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Lean production is not possible without highly reliable equipment.
Proactive, productive maintenance eliminates equipment-related waste and improves equipment reliability.
Proactive, productive maintenance is a shared responsibility.
Total Productive MaintenanceTotal Productive Maintenance
Basic Principles:
Lean Manufacturing Training Series
Lean Overview96
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Benefits of TPMBenefits of TPM
Unplanned downtime 50-60%
Breakdown costs 70-80%
Spare parts costs 15-30%
Product defects 85-90%
Lead times 50-75%
On time deliveries 50-95%
2 - 5 Years:
Lean Manufacturing Training Series
Lean Overview97
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
QuestionQuestion
How can Round 2 be improved?
Lean Overview
Lean Manufacturing Training Series99
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Round 3Round 3
Let’s Get To Work!!
Lean Manufacturing Training Series
Lean Overview100
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
ResultsResults
Production Round # (20 Minutes)
>20 5% 22 53>20 13% 11 2118 25% 4 8
5 51% 13 847 67% 7 247 100% 4 5
4 100% 14 113 100% 12 94 100% 8 2
1
Mfg. Cycle Time (Min)
% On-Time
Delivery
Initial Units In Process
including FG
# Units in Ending WIP including
FG
2
3
Lean Manufacturing Training Series
Lean Overview101
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
ResultsResults
Production Round # (20 Minutes)
Sales ($)
Total Costs ($)
Profit ($)
1464
652412
762612
6 300.00 60.00 240.00
Round 3 Total Profit 2,115.00
# of Units Sold
(late+ontime)
1 660.00 1,004.50 -344.50
2 2,620.00 1,732.00 888.00
Export Subtotal
1,875.003 2,900.00 1,025.00
Lean Manufacturing Training Series
Lean Overview102
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Lean Manufacturing AgendaLean Manufacturing Agenda
Lean Background
Lean Manufacturing Tools 1-6
Lean Manufacturing Tools 7-12
How to Implement Lean
Lean Manufacturing Training Series
Lean Overview103
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Manufacturing HistoryManufacturing History
Customer Requirements
1800’s 1900’s1700’s Time 2000
• Mass production /Automation• Assembly lines / Divided labor• High volumes / High Inventories• Cost cutting focus / Efficiency
TRADITIONAL
• Reduced WIP• Reduced inventories• Multi-skilled workforce• Production based on demand
LEAN
• Custom-made, one at a time• Highly skilled craftsperson• Non-standardized work• Non-interchangeable parts
CRAFTCRAFT
Lean Manufacturing Training Series
Lean Overview104
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Lean vs. TraditionalLean vs. Traditional
LEANSimple and visual Demand driven Inventory as needed Run by value adders Small lot sizes Minimal lead time
TRADITIONAL Complex Forecast driven Excessive inventory Overhead run Batch production Long lead time
Lean Manufacturing Training Series
Lean Overview105
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
OperationsSupply Chain
Administrative
Product Development
Inventory Management
Total Quality
Metrics
Product Lead Time
Where Lean AppliesWhere Lean Applies
A holistic approach to eliminating waste in the entire system
Lean Manufacturing Training Series
Lean Overview106
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
• Determining the product families
• Understanding how the shop floor currently operates. (Foundation for future state.)
• Designing a lean flow & how to get there.
•DO IT!
Product Family
Current-State Drawing
FUTURE-STATE DRAWING
Implementation
REPEAT
Value Stream Mapping
107
Value Stream Map IconsValue Stream Map IconsGeneral IconsGeneral Icons
Material FlowMaterial Flow
Information FlowInformation Flow
Manual Information Flow
Electronic Information Flow
Production ScheduleLook
Ship Scheduledaily
Ship Scheduledaily
Movement of ProductionMaterials
Movement of Finished Goods
Inventory Truck Shipment
Rail Shipment
I1 X daily
Process Outside Sources Data Box Operator Kaizen Burst
Supplier/Customer
C/T = 20 secS/U = 10 minUptime = 90%
Process
F I F O
ABC
Pull of MaterialsSupermarketFirst in/First out Buffer
ABC
Production Instruction
Card
Leveling Box
R
B
GMaterial
Withdraw CardKanban
PostSignal
Kanban
Current State Map: Buzz Electronics
Processing Time = 195 sec
CT = 30
Resister
1 person
C/O = 60
CT 20
Kitting
2 people
C/o 0
CT = 50
Spring
1 person
C/O 60
CT = 15
Test
1 person
C/O = 0
CT = 30
LED
2 people
C/O = 60
CT = 10
Ship
2 people
C/O = 0
30 Secs
5 Red, 5 Blue
Supplier
C/O = 40
Diode
1 person
C/O = 0
I30I I
64I I
7I
I6I
I12I I
4I I
0I
Customer
30 Secs
Production Control
Buzz
Industrial Engineer
Sales
20 Min Forecast
Factory Order Forms
Production Reports
Quality Report
Shipping Report
Customer Orders
Order every 10 Sec
300 sec
640 sec
20 sec 50 sec 30 sec
60 sec
40 sec
70 sec 120 sec
30 sec
40 sec 0 sec
10 sec15 sec
Lead Time = 1425 sec
TAKT Time = 10 Sec
Lean Manufacturing Training Series
Lean Overview109
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
How to Get Lean by Cutting WasteHow to Get Lean by Cutting Waste
Understand WHAT and WHERE waste exists Map value streams Measure each process Identify non-value added activities
Create a PLAN to eliminate waste IMPLEMENT plan to eliminate waste MEASURE and review results, then REPEAT
Lean Manufacturing Training Series
Lean Overview110
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Lean Building BlocksLean Building Blocks
Batch Reduction
Standardized Work Setup Reduction Teams
Quality at Source
5S System Visual Plant Layout
POUS
Cellular/FlowPull/Kanban TPM
ValueStreamMapping
Continuous Improvement
Lean Manufacturing Training Series
Lean Overview111
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
SummarySummary
Continuous improvement in steps Tried many ideas and made adjustments Cut lots of waste and increased capacity Shared information and cross-trained
employees Changed our management style Bottom line benefits:
Improved service to the customer (throughput) Reduced work-in-process inventory Increased profits!
Lean Manufacturing Training Series
Lean Overview112
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
Ideas to Take BackIdeas to Take Back
Lean Manufacturing does work Gain buy-in from top management Form a team to lead implementation Build employee awareness and buy-in
Lean Manufacturing Training Series
Lean Overview113
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
To Learn How Lean Fits Your PlantTo Learn How Lean Fits Your Plant
Call Georgia Tech for a free consultation Read books on lean manufacturing Ask us for an on-site Executive Briefing Tour a plant Have the Lean Overview presented in your
plant
Learn, Plan, Implement, Succeed!
Lean Manufacturing Training Series
Lean Overview©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
114
How Georgia Tech Can HelpHow Georgia Tech Can Help
Lean Manufacturing Executive Briefing Attend a network meeting Lean Manufacturing Courses On-Site Coaching Services Assisting your suppliers www.edi.gatech.edu/lean
Lean Manufacturing Training Series
Lean Overview115
©2003 Georgia Tech Research Corporation. All Rights Reserved. LO-30813
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