Welcome To Demand Flow Technology Workshop Principles of Lean Manufacturing

Objectives Develop the knowledge of what the philosophies and techniques are and why they are important Total picture of the the demand flow technology business strategy Understand and establish how to perform the techniques and skills learned Exercises and feedback Technical information and examples

Cycle 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.

WHAT IS DFT ANYWAY? Ask participant’s what are they expecting from this course. Also, what is their definition of DFT.

Lean 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 doesn’t matter whether you are a lion or a gazelle – when the sun comes up, you had better be running. Look at the top 500 companies 20 years ago and notice the change. Competition is stiff. Market drive. What the customer “really” wants and will pay for.

Defining DFT DFT has been defined in many different ways: 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.

Defining DFT A manufacturing technology that focuses an aggressive flow process that seeks to eliminate or minimize non-value added work in the production process while emphasizing quality throughout the process.

Primary Objective to build a HIGH QUALITY product in the SHORTEST PRODUCTION time and at the LOWEST POSSIBLE COST

What are the advantages of DFT People – the number of people needed to produce the daily rate is calculated daily Processes and quality checks are documented (A.I., OMS & SOE’s) Quality built into the product Kanban Less material in WIP and RIP

What are the advantages of DFT Component kanban – two-bin system NVA work is minimized or eliminated Processes are in a constant continuous improvement state Speed-to-market Next day Customer Responsiveness

Cost Distribution Labor – 10% Pay Cut Layoff Work Harder Overhead – 20% Benefits Utilities Training & Education Material – 70% Eliminate Scrap Eliminate Inventory Demand Flow Business Strategy

Cost to the Company Defect Found At ….. Station 1 One-Down Operation Out-of-Box FG’s Customer Cost exponentiate through the process

Traditional Mfg. Vs. Demand Flow Mfg. Scheduling techniques Fabrication & subassembly production Departmental build Schedule, queue and batch work time Material movement External Inspection Mathematical technology Mixed-model flow process Flow line design Build the product in total work content time or less Minimum material movement TQC & verify

Product Synchronization A relationship of the processes in a flow to produce a product.

Product Synch

Matrix of products across the top and processes along the side Process Mapping Matrix of products across the top and processes along the side Line design is based on target volume out to 6 to 12 to 18 months into the future. Typical manufacturing includes multi level bills of material with scheduling and queue time. DFT strives to eliminate scheduling and queue times.

Sequence of Events Defines quality criteria against each work element, value-added steps and time estimates. Specific work content for product & processes Value added – if the customer is willing to pay for it. Ask for examples of non-value added activities? Testing, moving product, setup/changeover, inspection if it is for our verification purposes Time – reasonable & generous amount of time to do the work and TQC and verify Often times there is more than one way to do things.

SOE

Operational Method Sheet (OMS) A “colored” graphic representation of quality criteria and work content defined by the S.O.E. to be performed at an operation Work Content TQC – check someone else work Verify – check your own work Consist of TQC (check someone else’s work), work content and verify (check your own work) Work in motion Show example of A.I/OMS

Demand at Capacity - Dc The highest targeted volume output of products that is planned to be achieved by a demand flow manufacturing process Dc = Marketing, forecast and sales will help determine (seasonal) Demand is build any model any day to meet customer demand.

Dc Dc = Pv Wd 400 units per month 100 units per month 20 days = 5 units/day Dc = Designed Daily Rate He = Effective Work Hours S = Shifts per day 400 units per month 20 days = 20 units/day Dc = demand at capacity (units/day) Pv = Targeted monthly volume (units/month) Wd = Number of work days per month Example: If the targeted monthly volume for a dual picker is 2002 (Pv) and the number of work days is 22 (wd), what is the daily capacity? 2002 / 22 = 91

Total Product Cycle Time (TPCT) The calculated work content through the longest path of the processes required to build a product Money Picker (6633D) = 30 min/prs 0.5 Stacker (7835H) = 42 min/prs 0.7 Transport (7836B) = 23min/prs 0.383 Printer (1670A) = 40 min/prs 0.66 Primary reasons for TPct: 1. Help determine the minimum inventory requirement 2. Response time to the customer 3. Provides opportunities for continuous improvement By focusing on the total product cycle time, businesses can improve customer response time

TAKT The calculated target of work content time to be performed independently by a person or machine in a demand flow line German word for rhythm, beat or tempo Design a line around a 1 shift operation Other shifts can surge for additional capacity

TAKT Conversion 100’s or Minutes 7.66/5 = 1.532 hr/unit (IDM) 92 min/unit 7.66/20 = 0.383 hr/unit (R/L transport) 23 min/unit 7.66/111 = 0.069 (Picker) 4.14 min/unit

Stations Money Picker Actual Time TAKT Time 30 minutes assembly time = 7.24 = 7 stations DFT recommends that station be no more than 10. You lose teamwork, team too big to reach a decision, loss to align balance.

Resources Resources can be: Operations – labor Machines Pieces – batch equipment People - flexible Example: of batch equipment on keyboard line or any tool that operates in mass production

Flexible Employees Employees in a DFT line have a minimum flexibility of three operations: Primary One up-stream One down-stream Fluctuation in demand Absenteeism Value of employees increases Discuss flexing Discuss loss to align balance and show example.

People (Dr) Resources are calculated daily to determine the requirement to produce the daily rate Dc x L H x S Money picker 50 x .50 (8) X (1) =3.125 3 people If daily rate is 100 and labor hours is 20 minutes. How many people are required to build that product? 100*.33 = 4.125 8x1 Review handouts

Tools used when actual time at an operation exceed TAKT Line Balancing Tools Tools used when actual time at an operation exceed TAKT Relocate work Reduce or eliminate non-value added work content Add resources or duplicate resources Move inventory and time (Kanban)

Certification Meet TAKT Train others Meet quality criteria Flex PPM Goals – customer acceptance 4,500 Final Test – 4,000 Customer Acceptance – 4,500 In process – 1,500 Units/Hour – 4.75

In-Process Kanban (IPK) A visual signal that identifies when work needs to be performed in a line

Kanban Card A card used as a communications signal to pull material based on demand Signal to work In process kanban (IPK) Wet the Line

Pull Sequence Every part that is kanban pulled must have a definable path that identifies the supply and consumption points (e.g Line, Rip, Wip, FG’s)

Mixed Model Line A primary goal of demand flow manufacturing is to design flow lines to produce families of similar products. The mixed model line has the ability to build a range of volumes of any product, any day, based on the direction of actual customer demand.

Backflush The method used to relieve RIP (Raw in Process) inventory of a product’s bill of material quantity when a product is complete Illustrate: Model 44SL 2301 – 1 2604 – 4 4329 – 1 After backflush, 1 unit of a 44sl is on hand in FG’s

Communication Lights Management Light – A light that can be seen from a wide area to identify if action needs to be taken on the line e.g Andon

Measuring Linearity Example: during a nine-day period the production rate is (4) per day: 4+4+4+4+4+4+4+4+4=36 Actual production was: 3+4+5+3+4+5+3+4+5=36 Traditionally we would say this is o.k. Actually the sum of the total deviation is 6 or 84% Suggested Goal = 90% Linear planning will determine the production volume required to satisfy the demand of our customer. Our goal is to deliver high quality products to the customer on a timely basis while minimizing or inventory and keeping the production process as linear and flexible as possible. In flow manufacturing, one of the main objectives is that the production process becomes linear and that the daily rate be achieved every day - no more no less. If the daily rate is met in less than a 8 hour shift, the balance of the shift should be used for equipment maintenance, process improvements, cleaning, meetings, quality, training, etc.   Why Linearity? (1)     Wide variations in the daily rate usually mean overtime will be needed to catch up. (2)     Wide variations in production causes quality problems. Finished goods analyses consistently reveal that units produced at the end of a hectic production month have nearly twice that units produced at normal times of the month. (3)     The consistency of production tends to promote consistency of quality. That consistency also raises customer satisfaction. Materials can promise an order to a customer on a specific day and have reasonable expectations that the unit will be produced at that date. (4)     Linearity is substantially more cost efficient. It produces higher quality and customer satisfaction. The short-term focus of a daily rate eases performance monitoring and makes goals more attainable. Measuring Linearity Actual production compared against the planned daily production rate will yield deviations. Can be figured per daily, weekly and monthly basis. Here’s the formula for calculating linearity percentage. Linearity Index %= (1-[sum of deviations] x 100) Units Produced Each cause of deviation should be listed and analyzed - the objective is to eliminate such causes and achieve greater linearity.

Formula Recap Perform an example all the way through. 4500 Money Pickers, March 2002 How many stations would you need? TAKT? People?

QUESTIONS???