This module is part #2 of the Lean introduction This module is part #2 of the Lean introduction. Although no formal course background is required, a bit of production control, layout and methods engineering is very beneficial. 9/18/2018

Readings “Even in a topsy-turvy world, just-in-time supply works,” by James P. Womack and Daniel T. Jones. Automotive News, Oct. 29, 2001. “Lean Time, Lean Measures,” by Michael San Filippo, January/February 2002 Interview. “Building the Lean Machine,” Advanced Manufacturing, January 2000. Chapter 18 of Computer Aided Manufacturing, Wang, H.P., Chang, T.C. and Wysk, R. A., 3rd Edition (2004 expected) http://www.engr.psu.edu/cim/active/chapter18.pdf There is no good reference here. The web site is not operational at this time. Hopefully by August 2002, the introductory chapter will be available. 9/18/2018

Exercise Readiness Assessment Test A.K.A. RAT AS A INDIVIDUAL, look at the detailed requirements for a production process. We will look at the Case Study and Key holder. What is the operation time for the Key holder at each workstation in a production system? How is this time related to the time required to produce a key holder? What is the difference between production time and setup time? Open Book / Open Notes 9/18/2018

Exercise Readiness Assessment Test A.K.A. RAT AS A TEAM, take 3 minutes to provide a written to answer the following questions: Did all operations require the same time? What is best operation to focus attention of for the key holder? Why? Closed Book / Closed Notes 9/18/2018

Objectives To apply the principles of flow to a complex manufacturing system To design the layout of process, product and cellular manufacturing systems To implement a pull system in a manufacturing environment To analyze efficiencies of reduced batch sizes The flow of this presentation is some basic background of factory flow and layout. The advantages of the basic layout are presented and then some characteristics of these systems are provided, I.e., you can not “pull” with a process layout. Cells simplify things by reducing the problem size. There is no detail on how to form cells or organize production control. These will come later. 9/18/2018

Exercise (3 – 5 minutes) Individually answer the following questions What percent of time does a part spend having “value added” to it while the part is on the shop floor? What are the top 5 causes of “non-value added” times? 9/18/2018

Quick Change Over QCO is used to: Reduce time needed to change over from one set-up to another. Improve first time capability. Improve repeatability of change over operations 9/18/2018

Total Productive Maintenance TPM is a structured approach to maintaining equipment and insuring stable manufacturing processes. Everybody gets involved. 9/18/2018

What to Expect in the Future Training Communication Elimination of Waste (NVA) Continuous Improvement Visual Factory More efficient layouts Roles & Responsibilities More involvement / ownership Long term GROWTH!! 9/18/2018

Types of Manufacturing Layout Process Layout Product Layout Cellular Layout 9/18/2018

FUNCTIONAL LAYOUTS ARE INEFFICIENT Lathe Milling Drilling L L M M D D D D L L M M Grinding L L M M G G Assembly L L G G A A Receiving and Shipping A G G A PROCESS-TYPE LAYOUT 9/18/2018

Process Layout Characteristics Advantages Deep knowledge of the process Common tooling and fixtures Most Flexible -- can produce many different part types Disadvantages Spaghetti flow -- everything gets all tangled up (can not “pull” materials with this layout) Lots of in-process materials Hard to control inter-department activities Can be difficult to automate 9/18/2018

PRODUCT LAYOUT Part #1 L L M D G A A Receiving L M G Part #2 L M D Shipping Part #3 9/18/2018

Product Layout Characteristics Advantages Easy to control -- input control Minimum material handling -- frequently linked to the next process Minimal in-process materials Can be more easily automated Disadvantages Inflexible -- can only produce one or two parts Large setup Duplicate tooling is required for all cells 9/18/2018

CELLULAR LAYOUT Cell #2 Cell #1 D D M I D I L Cell #3 M M L L D M I 9/18/2018

Cellular Layout Characteristics Advantages Control is simplified Common tooling and fixtures Flexible -- can produce many different part types - a part family?? Disadvantages Setup ?? Need to know about many different processes 9/18/2018

Evidence of Progress toward Lean Smaller lot sizes Increased capacity / throughput Higher inventory turns More available floor space Improved workplace organization Improved quality : reduced scrap / re-work Reduced inventories : raw, WIP, FG Reduced lead times Greater gross margin Improved participation & morale 9/18/2018

Lean Mfg Implementation Timeline LMA – 6 to 12 weeks (Prototype line/experimentation?) Management commitment – 4 to 6 months Prep for implementation – 6 to 8 months Model line development – 6 months to 1 year Program expansion – 1 to 3 yrs Beginnings of the ‘Lean Enterprise’ – 3 to 5 yrs 9/18/2018

Price Increase Bigger Profit Cost + Profit = Price Some Profit 3 Price to Sell 1 2 3 Bigger Profit 2 Some Profit Cost to Produce 1 Show left hand side first, 1. Determine Cost to produce an item 2. Add profit you want 3. This gives you Price to the customer If you want to increase your profit under this system, how do you do it? --->>> Raise the price to the customer. reveal right hand side This is what most companies operated in the 60’s and 70’s, just pass the cost along to the customer. But as the markets get more and more competitive, do you think this strategy will still work?? NO!! So if Cascade wants to increase their profits now a days, how could they do it?? Discussion Transition to next slide...... Cost + Profit = Price 9/18/2018

Cost Reduction Bigger Profit Price - Cost = Profit Some Profit Price to Sell 1 1 Some Profit 3 Bigger Profit 3 Cost to Produce 2 2 Show left hand side first, 1. Determine Price customer is willing to pay 2. Subtract the Cost to produce an item 3. This leaves your profit Under this system if you want to increase your profit, how do you do it? ---->>> Lower Cost. How do you suppose you lower Cost?? Elimination of Non-Value Added Activity. Elimination of Waste !! What exactly is waste? Discussion Price - Cost = Profit 9/18/2018

What value is Added by: Storing Counting Sorting Moving Acknowledgments Invoices What value is Added by: Expediting Rework Inspecting Discussion None of these activities adds Value. Some are important or necessary, but None add value. Loading / Unloading Scrap Returns to Suppliers Receiving Report Repackaging 9/18/2018

Toyota Production System Best Quality - Lowest Cost - Shortest Lead Time Through shortening the Production Flow by Eliminating Waste Just in Time “The right part at the right time in the right amount” Jidoka “Built in Quality” Manual / Automatic Line Stop Labor-Machine Efficiency Error Proofing Visual Control Continuous Flow Pull System Level Production (Heijunka) Flexible, Capable, Highly Motivated People Operational Stability Standardized Work Total Productive Maintenance Robust Products & Processes Supplier Involvement 9/18/2018

Just in Time Manufacturing Produce according to customer demands: What is needed When it is needed In the quantity it is needed Utilize - Continuous flow processing - Pull system 9/18/2018

Push System Example: MRP Lot arrival triggers production Material Information MRP Schedule triggers Production Example: MRP 9/18/2018

Pull Systems Material Withdrawal of material triggers production Information Production schedule is issued only to final assembly line. Production schedule for each of the preceding process is determined by transfer of parts Parts are pulled through the system from the end of the line to the start 9/18/2018

Parts are produced only when needed (or just in time) less delay or lead time, lower inventory KANBAN - is the manual system to implement the pull system JIT - refers to the whole system, the material flow and management philosophy 9/18/2018

JIT Systems Combines both the production control component and a management philosophy 4 basic tenets for the success of JIT Elimination of waste Employee Involvement Supplier Participation Total Quality Management 9/18/2018

Kanban Manual information system to control production. Material transportation, and inventory Literally means “visible record” or card In the the broad sense it is a communication signal from a downstream process (customer) to a upstream process (producer) 9/18/2018

Kinds of Kanban Two most common kanbans production kanbans (P- Kanban) authorizes a process to produce a fixed amount of product 9/18/2018

Kanban continued Transportation kanban (T- Kanban) authorizes transporting a fixed amount of product downstream 9/18/2018

JIT Element - Continuous Flow Processing Batch Processing 10 minutes 10 minutes 10 minutes Total Batch A processing time : 30 minutes Continuous Flow Processing Total Batch A processing time : 12 minutes Only 3 minutes for 1st part Product requires three processes that take one minute each Processing first batch in batches of 10 requires 30 minutes Processing first “batch” one-at-a-time requires only 12 minutes 9/18/2018

JIT Element - Pull System Following processes withdraw what they need when they need it. Preceding processes replenish what is taken away. Production Kanban Withdrawal Kanban Store A B C D E F G H I J K L M N O P Q Upstream Processes Downstream Processes Pull New Product Needed Product 9/18/2018

Production Scheduling Assumptions Production Schedules will always change Production will never go according to schedule. 9/18/2018

Takt time Takt time - takt, is a German term for rhythm. Takt time is the allowable time to produce one product at the rate customers are demanding it. This is NOT the same as cycle time, which is the normal time to complete an operation on a product (which should be less than or equal to takt time). 9/18/2018

Sets pace of production to Takt Time Time (Available seconds per working day) Takt Time = Volume (Daily production requirement) Sets pace of production to match pace of sales. Actual time required for a worker to complete one cycle of his process Cycle Time = 9/18/2018

Balanced Cycle Times A D E C B Operators 9/18/2018 Takt Time (1 min.)

Very Frequent Change-over Right Hand Left Hand Left Hand change over Right Hand 8 hours 9/18/2018

Building in Quality JIDOKA Machines intelligence to be self-operating and self-stopping People served by machines, not vice versa Quality built-in, not inspected-in Efficiency human work separated from machine work, people freed to do value-added work 9/18/2018

Quality Processes Yield Quality Results Inconsistent Process Inconsistent Results Traditional = People doing whatever they can to get results Consistent Process Desired Results Lean = People using standard process to get results 9/18/2018

Impact on You!! First Time Quality People Just in Time Standardized Work Error Proofing Root Cause Analysis Problem Solving Change Request Forms Predictable Processes Machine Reliability Total Productive Maintenance Improved up-time Reduced scrap & repairs People Skilled, multi-function workers Training Employee development Small Group Activity Quality Safety Productivity Cost Structured feedback meetings Empowerment Involvement Accountability Responsibility Authority Safety & Ergonomics Just in Time Kanban production Min / Max levels Smaller Lots Quick Change Over Less inventory Less reliance on schedules 9/18/2018

Exercise – (3 – 5 minutes) As a group, discuss a situation that you are familiar with where continuous flow would improve a systems performance. Is this flow limited to manufacturing? Prepare to respond to the entire class? 9/18/2018

Questions? There are no stupid questions! 9/18/2018