Title: Principles of Lean Manufacturing with Live Simulation
1Principles of Lean Manufacturing with Live
Simulation
2Course Agenda
- Welcome
- Introduction to Simulation
- Round 1 of Simulation
- Introduction to Lean Manufacturing
- Standardized Work, 5S System, Visual Controls,
and Plant Layout - Round 2 of Simulation
- Teams, Quick Changeover, Batch Reduction, POUS,
and Quality at the Source - Round 3 of Simulation
- Pull/Kanban, Cellular Flow, and TPM
- Round 4 of Simulation
- Implementation
- Course Evaluation
3360vu Lean Web Sites
- http//www.360vu.com
- For firms
- http//www.360vu.net
- For MEP centers only
4Recommended Readings
- Lean Thinking by Jim Womack
- Becoming Lean by Jeffrey Liker
- The Machine That Changed the World by Jim Womack
and Daniel T. Jones - The Goal by Eli Goldratt
- World Class Manufacturing The Next Decade by
Richard Schonberger - Others can be found on the Lean website
5Course Agenda
- Welcome
- Introduction to Simulation
- Round 1 of Simulation
- Introduction to Lean Manufacturing
- Standardized Work, 5S System, Visual Controls,
and Plant Layout - Round 2 of Simulation
- Teams, Quick Changeover, Batch Reduction, POUS,
and Quality at the Source - Round 3 of Simulation
- Pull/Kanban, Cellular Flow, and TPM
- Round 4 of Simulation
- Implementation
- Course Evaluation
6Orientation
Orientation
to Buzz Electronics Enterprises (BEE)
7Product Catalog
Buzz Electronics Enterprises
8Buzz Electronics Enterprises
The Blue Avenger
9Buzz Electronics Enterprises
The Red Devil
10BEE
The Bottom Line
The Blue Avenger
Sells for 20
Materials cost 5.00
The Red Devil
Sells for 30
Materials cost 7.50
11Production Process Orientation
BEE
- Sales Representative Processes Customer Order
- Production Scheduler Generates Factory Order
from forecast - Kitter(s) Organizes raw materials for Factory
Orders - Material Handler Moves product between ALL
workstations
- Spring Assembler Inserts Springs
- Resistor Assembler Inserts Resistors
- LED Assembler Inserts LEDs
- Diode Assembler Inserts Diodes
Assembly
- Inspector Conducts functional tests
- Reworker Repairs failed boards
- Warehouse/Ship Clerk Matches boards to Customer
Orders - Instruction Crib Attendant Controls work
instructions - Production Supervisor Supervises production
- Industrial Engineer Monitors production process
- Trucker Ships products to the customer
12Production Facility Orientation
BEE
Sales Office
Production Control
Kitting Area
Shipping Dock
Finished Goods Whse.
Rework Area
WIP Storage
Diode Assembly
Inspection Area
LED Assembly
Resistor Assembly
Spring Assembly
13Circuit Board Orientation
BEE
Blue and Red Boards
A
B
C
D
E
1
2
3
4
5
EXAMPLE 1) Insert spring into C3
14Product Components Orientation
BEE
Springs
Resistors
Diodes
LEDs
15Product Routing
BEE
Blue
LED
Springs
Resistor
Diodes
x1
x5
x1
x2
Red
Springs
x5
16BEE
Circuit Board Assembly Example
Red Devil
A
B
C
D
E
1
2
3
4
5
17Production Batching
BEE
The Blue Avenger
6 per batch
4 per batch
The Red Devil
18BEE
Production Scheduling Process
Shipments to customers
Customer order forms
Customer orders (demand)
Factory order forms
Finished Goods Warehouse
Production forecast
19Customer Service Targets
BEE
Promised shipments to customers
Promised shipments to customers
4 minutes after order
5 minutes after order
All orders are filled first-in, first-out (FIFO)
20Buzz Electronics Enterprises
Company Policies
- All shifts are 20 minutes
- Keep busy at all times
- Yell if you need parts
- Handle all parts first-in, first-out (FIFO)
- Only the material handler can move parts
- Stay at your workstation
- The boss is always right!
21Course Agenda
- Welcome
- Introduction to Simulation
- Round 1 of Simulation
- Introduction to Lean Manufacturing
- Standardized Work, 5S System, Visual Controls,
and Plant Layout - Round 2 of Simulation
- Teams, Quick Changeover, Batch Reduction, POUS,
and Quality at the Source - Round 3 of Simulation
- Pull/Kanban, Cellular Flow, and TPM
- Round 4 of Simulation
- Implementation
- Course Evaluation
22Round One Buzz Electronics
- Buzz Electronics is a traditional manufacturing
company.
23Round One Debrief
- Discuss results
- Discuss the process
- Lessons learned
- Relationship to real world
- What if scenarios
- Continuous improvement
24Course Agenda
- Welcome
- Introduction to Simulation
- Round 1 of Simulation
- Introduction to Lean Manufacturing
- Standardized Work, 5S System, Visual Controls,
and Plant Layout - Round 2 of Simulation
- Teams, Quick Changeover, Batch Reduction, POUS,
and Quality at the Source - Round 3 of Simulation
- Pull/Kanban, Cellular Flow, and TPM
- Round 4 of Simulation
- Implementation
- Course Evaluation
25Mass Production
Material
Diodes
LEDs
Springs
Shipping Warehouse
ReceivingWarehouse
Storage
Repair
Kitting
Testing
Ship
Value-Added Time Minutes Time in Plant Weeks
ORDER
CASH
26History of Manufacturing
People
Product
Work Environment
27Reduced Lead Time
- One of the most noteworthy accomplishments in
keeping the price of Ford products low is the
gradual shortening of the production cycle. The
longer an article is in the process of
manufacture and the more it is moved about, the
greater is its ultimate cost. - Henry Ford, 1926
28Lean Is Market Driven
- Every morning in Africa, a gazelle wakes up. It
knows it must run faster than the fastest lion or
it will be killed. Every morning a lion wakes
up. It knows it must outrun the slowest gazelle
or it will starve to death.
It doesnt matter whether you are a lion or a
gazelle when the sun comes up, you had better
be running.
29Defining Lean
- Lean is
- 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
30Definition of Value-Added
- Value-Added
- Any activity that increases the market form or
function of the product or service. (These are
things the customer is willing to pay for.)
- Non-Value-Added
- Any activity that does not add market form or
function or is not necessary. (These activities
should be eliminated, simplified, reduced, or
integrated.)
31Lean Eliminating Waste
Value-Added
- Non-Value-Added
- Overproduction
- Waiting
- Transportation
- Non-value-added processing
- Excess inventory
- Defects
- Excess motion
- Underutilized people
Typically 95 of all lead time is non-value-added.
32Brainstorm Wastes
- What wastes were apparent in Buzz Electronics?
33Eight Wastes
Overproduction
motion
Inventory
Transportation
Waiting
defects
Underutilized People
Non-Value-Added Processing
34Overproduction
- Making more than is required by the next process
- Making earlier than is required by the next
process - Making faster than is required by the next
process - Causes of overproduction
- Just-in-case logic
- Misuse of automation
- Long process setup
- Unlevel scheduling
- Unbalanced workload
- Over engineered
- Redundant inspections
35Inventory Waste
- Any supply in excess of a one-piece flow through
your manufacturing process - Causes of excess inventory
- Need for buffer against inefficiencies and
unexpected problems - Product complexity
- Unleveled scheduling
- Poor market forecast
- Unbalanced workload
- Misunderstood communications
- Reward system
- Unreliable shipments by suppliers
36Defects
- Inspection and repair of material in inventory
- Causes of defects
- Weak process control
- Poor quality
- Unbalanced inventory level
- Deficient planned maintenance
- Inadequate education, training, or work
instructions - Product design
- Customer needs not understood
37Processing Waste
- Effort that adds no value to the product or
service from the customers viewpoint - Causes of processing waste
- Product changes without process changes
- Just-in-case logic
- True customer requirements not clearly defined
- Over-processing to accommodate downtime
- Lack of communication
- Redundant approvals
- Extra copies or excessive information
38Waiting Waste
- Idle time created when waiting for?
- Causes of waiting waste
- Unbalanced workload
- Unplanned maintenance
- Long process setup times
- Misuses of automation
- Upstream quality problems
- Unlevel scheduling
39People Waste
- The waste of not using peoples mental, creative,
and physical abilities - Causes of people waste
- Old guard thinking, politics, the business
culture - Poor hiring practices
- Low or no investment in training
- Low pay, high turnover strategy
40Motion Waste
- Any movement of people or machines that does not
add value to the product or service - Causes of motion waste
- Poor people or machine effectiveness
- Inconsistent work methods
- Unfavorable facility or cell layout
- Poor workplace organization and housekeeping
- Extra busy movements while waiting
41Waste of Transportation
- Transporting parts and materials around the plant
- Causes of transportation waste
- Poor plant layout
- Poor understanding of the process flow for
production - Large batch sizes, long lead times, and large
storage areas
42Lean Building Blocks
Continuous Improvement
Cellular/Flow
Pull/Kanban
TPM
Quick Changeover
Quality at Source
POUS
Standardized Work
Batch Reduction
Teams
Value Stream Mapping
5S System
Visual
Plant Layout
43Course Agenda
- Welcome
- Introduction to Simulation
- Round 1 of Simulation
- Introduction to Lean Manufacturing
- Standardized Work, 5S System, Visual Controls,
and Plant Layout - Round 2 of Simulation
- Teams, Quick Changeover, Batch Reduction, POUS,
and Quality at the Source - Round 3 of Simulation
- Pull/Kanban, Cellular Flow, and TPM
- Round 4 of Simulation
- Implementation
- Course Evaluation
44Round Two Company Instruction
- Learn how to implement new Lean techniques
- Standardized Work
- 5S System
- Visual Controls
- Plant Layout
45Standardized Work
- Operations safely carried out with all tasks
organized in the best known sequence, and using
the most effective combination of these
resources - People
- Materials
- Methods
- Machines
46Work Place Organization
- A safe, clean, neat arrangement of the workplace
provides a specific location for everything, and
eliminates anything not required.
47Elements of a 5S Program
- Sort Perform Sort Through and Sort Out, by
placing a red tag on all unneeded items and
moving them to a temporary holding area. Within
a predetermined time the red tag items are
disposed, sold, moved or given away. When in
doubt, throw it out! - Set in Order Identify the best location for
remaining items, relocate out of place items, set
inventory limits, and install temporary location
indicators.
- Shine Clean everything, inside and out.
Continue to inspect items by cleaning them and to
prevent dirt, grime, and contamination from
occurring. - Standardize Create the rules for maintaining
and controlling the first three Ss and use
visual controls. - Sustain Ensure adherence to the 5S standards
through communication, training, and
self-discipline.
48Visual Controls
- Simple signals that provide an immediate
understanding of a situation or condition. They
are efficient, self-regulating, and
worker-managed. - Examples
- Kanban cards
- Color-coded dies, tools, pallets
- Lines on the floor to delineate storage areas,
walkways, work areas, etc. - Andon lights
49Plant Layout
Raw Stock
QC
Rec.
Ship
ScrewMachine
Shear
QC
Stamp
Assembly
Brake
Mill
Lathe
Drill
Finish
Weld
Grind
Parts Stock
50Course Agenda
- Welcome
- Introduction to Simulation
- Round 1 of Simulation
- Introduction to Lean Manufacturing
- Standardized Work, 5S System, Visual Controls,
and Plant Layout - Round 2 of Simulation
- Teams, Quick Changeover, Batch Reduction, POUS,
and Quality at the Source - Round 3 of Simulation
- Pull/Kanban, Cellular Flow, and TPM
- Round 4 of Simulation
- Implementation
- Course Evaluation
51Round Two Buzz Electronics
- Buzz Electronics begins its Lean Transformation.
- Changes in the organization
- Standardized Work
- 5S System
- Visual Controls
- Plant Layout
52Round Two Debrief
- Discuss results
- Discuss the process
- Lessons learned
- Relationship to real world
- What if scenarios
- Continuous improvement
53Lean Building Blocks
Standardized Work
5S System
Visual
Plant Layout
54Course Agenda
- Welcome
- Introduction to Simulation
- Round 1 of Simulation
- Introduction to Lean Manufacturing
- Standardized Work, 5S System, Visual Controls,
and Plant Layout - Round 2 of Simulation
- Teams, Quick Changeover, Batch Reduction, POUS,
and Quality at the Source - Round 3 of Simulation
- Pull/Kanban, Cellular Flow, and TPM
- Round 4 of Simulation
- Implementation
- Course Evaluation
55Round Three Company Instruction
- Learn to implement more new Lean techniques
- Teams
- Quick Changeover
- Batch Reduction
- Point Of Use Storage (POUS)
- Quality at the Source
56Lean Workforce Practices
- Teams
- With rotation of highly specified jobs
- Cross-trained and multi-skilled employees
- Who can work many operations within a cell and
operations in different cells - Continuous improvement philosophy
- Process quality, not inspection
- Use of participatory decision-making
- Quality Control Circles, team-based
problem-solving, suggestion systems, etc.
57Quick Changeover
- Definition The time between the last good piece
off the current run and the first good piece off
the next run. - Before Shigeo Shingos Single Minute Exchange of
Die (SMED) improvements, basic setup tasks and
related time breakdowns
Percent of time of changeover
Preparation, after-process adjustment, checking,
storing, and moving materials, parts, and tools
30
Removing and mounting of parts and tools
50
Machine measurements, settings, and calibrations
5
15
Trial runs and adjustments
58Impact of Batch Size Reduction
Batch and Queue Processing
Process C
Process A
Process B
10 min.
10 min.
10 min.
30 min. for total order, 21 min. for first piece
Continuous Flow Processing
Process B
Process A
Process C
12 min. for total order, 3 min. for first part
59Batch Size Reduction
- The best batch size is one piece flow, or make
one and move one!
60Point Of Use Storage (POUS)
- Raw material is stored at workstation where used
- Works best if vendor relationship permits
frequent, on-time, small shipments - Simplifies physical inventory tracking, storage,
and handling
61Quality at the Source
- Source Inspection Operators must be certain that
the product they are passing to the next work
station is of acceptable quality. - Operators must be given the means to perform
inspection at the source, before they pass it
along. - Samples or established standards are visible
tools that can be used in the cell for such
purposes. - Process documentation defining quality inspection
requirements for each work station may need to be
developed.
62Course Agenda
- Welcome
- Introduction to Simulation
- Round 1 of Simulation
- Introduction to Lean Manufacturing
- Standardized Work, 5S System, Visual Controls,
and Plant Layout - Round 2 of Simulation
- Teams, Quick Changeover, Batch Reduction, POUS,
and Quality at the Source - Round 3 of Simulation
- Pull/Kanban, Cellular Flow, and TPM
- Round 4 of Simulation
- Implementation
- Course Evaluation
63Round Three Buzz Electronics
- Buzz Electronics continues its Lean
Transformation. - More changes in the organization
- Teams
- Quick Changeover
- Batch Size Reduction
- Point Of Use Storage (POUS)
- Quality at the Source
64Round Three Debrief
- Discuss results
- Discuss the process
- Lessons learned
- Relationship to real world
- What if scenarios
- Continuous improvement
65Lean Building Blocks
Cellular/Flow
Pull/Kanban
TPM
Quick Changeover
Quality at Source
POUS
Standardized Work
Batch Reduction
Teams
5S System
Visual
Plant Layout
66Course Agenda
- Welcome
- Introduction to Simulation
- Round 1 of Simulation
- Introduction to Lean Manufacturing
- Standardized Work, 5S System, Visual Controls,
and Plant Layout - Round 2 of Simulation
- Teams, Quick Changeover, Batch Reduction, POUS,
and Quality at the Source - Round 3 of Simulation
- Pull/Kanban, Cellular Flow, and TPM
- Round 4 of Simulation
- Implementation
- Course Evaluation
67Round Four Company Instruction
- Learn to implement more new Lean techniques
- Pull / Kanban
- Cellular / Flow
- Total Productive Maintenance (TPM)
68Push versus Pull Systems
- Push System
- Resources are provided to the consumer based on
forecasts or schedules
- Pull System
- A method of controlling the flow of resources by
replacing only what has been consumed
69Pull System
- Pull System is a flexible and simple method of
controlling or balancing the flow of resources - Eliminating waste of handling, storage,
expediting, obsolescence, repair, rework,
facilities, equipment, excess inventory
(work-in-process and finished)
- Pull System consists of
- Production based on actual consumption
- Small lots
- Low inventories
- Management by sight
- Better communication
70Pull System Flow Diagram
Supplier
Customer
Fin. Goods
Raw Matl.
Process B
Process A
Process C
Information Flow
Part Flow
Kanban Locations
71Cellular Manufacturing
- Linking of manual and machine operations into the
most efficient combination to maximize
value-added content while minimizing waste.
Punch
De-burr
Cut to size
Form
Package
Sand
72Refining the Cell Five Step Process
- Group products
- Measure demands establish Takt time
- Review work sequence
- Combine work in balance process
- Design cell layout
73Step 1 Group Products
Processing Steps
Product
Products with similar processing requirements
are grouped into product families
74Step 2 Establish Takt Time
- Takt Time Demand Rate
- Takt Time (Work Time Available Number of
Units Sold) - Takt Time (1200 seconds 115 boards) 10.4
sec/board - Cycle Time Takt Time Minimum Number of People
- Goal Produce to Demand
75Step 3 Review Work Sequence
- Observe sequence of tasks each worker performs
- Break operations into observable elements
- Identify value-added versus non-value-added (NVA)
elements and minimize NVA - Study machine capacity, cycle times and
changeover times
76Step 4 Combine Work to Balance Process
Unbalanced Line
Balanced Line
Seconds
Seconds
Operations
Operations
Takt Time 10 seconds
77Step 5 Design and Construct Cell
- Design goals
- Flexible layout
- Lot size 1
- Point of Use Storage (POUS)
- Visual management
- Mixed models
- Simplify flow
- Integrate process operations
- Materials flow one way
- Minimize materials handling
- Concentrate on value-added motion
- Establish material replenishment procedure
- Make use of people 100
- Promote visibility and flexibility
- Operators stand for flexibility
78Transition to Flexibility
Traditional
Optimal
Assembly Line
79Total Productive Maintenance (TPM)
- Systematic approach to the elimination of the six
major equipment losses - Setup and adjustment
- Breakdowns
- Idling and minor stoppages
- Reduced speed
- Startup
- Defects and rework
- Enlisting the participation of all employees to
create an environment that fosters improvement
efforts in safety, quality, cost, delivery, and
creativity - Charting or analyzing equipment performance to
identify root cause of problems, and implementing
sustainable improvements
80Course Agenda
- Welcome
- Introduction to Simulation
- Round 1 of Simulation
- Introduction to Lean Manufacturing
- Standardized Work, 5S System, Visual Controls,
and Plant Layout - Round 2 of Simulation
- Teams, Quick Changeover, Batch Reduction, POUS,
and Quality at the Source - Round 3 of Simulation
- Pull/Kanban, Cellular Flow, and TPM
- Round 4 of Simulation
- Implementation
- Course Evaluation
81Round Four Buzz Electronics
- Buzz Electronics continues its Lean
Transformation. - Changes in the organization
- Pull / Kanban
- Cellular / Flow
- Total Productive Maintenance (TPM)
82Round Four Debrief
- Discuss results
- Discuss the process
- Lessons learned
- Relationship to real world
- What if scenarios
- Continuous improvement
83Lean Building Blocks
Cellular/Flow
Pull/Kanban
TPM
Quick Changeover
Quality at Source
POUS
Standardized Work
Batch Reduction
Teams
5S System
Visual
Plant Layout
84Course Agenda
- Welcome
- Introduction to Simulation
- Round 1 of Simulation
- Introduction to Lean Manufacturing
- Standardized Work, 5S System, Visual Controls,
and Plant Layout - Round 2 of Simulation
- Teams, Quick Changeover, Batch Reduction, POUS,
and Quality at the Source - Round 3 of Simulation
- Pull/Kanban, Cellular Flow, and TPM
- Round 4 of Simulation
- Implementation
- Course Evaluation
85Continuous Improvement
- Old Adage
- If you always do what you always did, youll
always get what you always got. - Competitive Corollary
- If the other guy gets better, youre going to
get less.
86Lean Building Blocks
Continuous Improvement
Cellular/Flow
Pull/Kanban
TPM
Quick Changeover
Quality at Source
POUS
Standardized Work
Batch Reduction
Teams
5S System
Visual
Plant Layout
87Barriers to Improvement
- If we all know we need to improve, the question
becomes why dont we?
88Keys to Success
- Prepare and motivate people
- Widespread orientation to Continuous Improvement
and quality, train and recruit workers with
appropriate skills - Create common understanding of need to change to
Lean - Involve employees
- Push decision-making and system development down
to the lowest levels - Train and truly empower people
- Share information and manage expectations
- Identify and empower champions, particularly
operations managers - Remove roadblocks (i.e., people, layout, systems)
- Make system both directive yet empowering
89Keys to Success (continued)
- Execute pilot projects prior to rolling out
culture across organization (e.g., model lines,
kaizen blitzes) after early wins in operations,
extend across entire organization - Foster an atmosphere of experimentation
- Willingness to take risks (safety nets)
- Patience, tolerance of mistakes, etc.
- Install enlightened and realistic performance
measurement, evaluation, and reward systems - Do away with rigid performance goals during
implementation - Measure results, not number of activities or
events - Tie long-term improvements to key macro-level
performance targets (e.g., inventory turns,
quality, delivery, overall cost reductions)
90Implementation Success Factors
- Unyielding leadership
- Strategic vision, based on Lean Enterprise as
part of company strategy - Observation of outside successes and failures
- Ability to question everything
- Deep commitment to excellence
91Benefits of Lean
Percentage of Benefits Achieved
0 25 50 75 100
Lead Time Reduction
Productivity Increase
WIP Reduction
Quality Improvement
Space Utilization
92Typical Objections
- How should you deal with these objections to
Lean? - It takes too much discipline.
- It takes too long to implement.
- My process is too complex, I have to deal with
too many uncontrollable variables, like late
supplier shipments, sick people, etc. - My process requires a large batch size.
- It doesnt make sense in my industry.
- Its unclear to me how Lean will work with my
MRP system.
93Getting Started Value Stream Mapping
- A simple, visual approach to
- Focusing on a product family
- Creating a clear picture of current material and
information flow associated with that product
family - Identifying Lean tools and techniques that can
improve flow and eliminate waste - Incorporating those ideas in a new picture of how
material and information should flow for that
product group - Creating an action plan that makes the new
picture a reality for that product family
94Lean Building Blocks
Continuous Improvement
Cellular/Flow
Pull/Kanban
TPM
Quick Changeover
Quality at Source
POUS
Standardized Work
Batch Reduction
Teams
Value Stream Mapping
5S System
Visual
Plant Layout
95Conclusion
- Lean
- Simple and visual
- Demand driven
- Inventory as needed
- Reduce non-value-added
- Small lot size
- Minimal lead time
- Quality built
- Value stream managers
- Traditional
- Complex
- Forecast driven
- Excessive inventory
- Speed up value-added work
- Batch production
- Long lead time
- Inspected-in
- Functional departments
96Thank You.