Welcome to the Lego Widget Flow Factory! Expectations Welcome to the Lego Widget Flow Factory! Our goal today: run a manufacturing simulation 4 times make a simple Lean Manufacturing change on each run Measure the results of each change in a ScoreBox To illustrate some important concepts about Lean Manufacturing. The waste of batch processing / mass production Batch Size Reduction Continuous Flow Learning to See Andy Rogish, Performance Management, rogisha@yoder.com, 239-728-2535 x211

Factory Setup The Operators The Product The Parameters Operator 1 8 Material Handler Operator 3 The Parameters 9 Quality Inspector Making Lego Widget 4 Rounds of Production 10 Employees Production Demand = 12 Operator 4 10 Customer Operator 5 Andy Rogish, Performance Management, rogisha@yoder.com, 239-728-2535 x211

ScoreBox Lead Time- time it takes to produce one complete item, from start to finish. Or, sum of each operator’s cycle time. WIP- Work in Process. How many pieces remain on the production floor after customer demand is met? Total Finished Units- In this case, Customer Demand. Total Operators- Number of people working in the process. Total Elapsed Time- Amount of time from when the first unit is begun to the time the last unit is finished and delivered to the customer. Total duration. Total Operator Time- Total Operators(D) x Total Elapsed Time(E). Total amount of manpower spent on this operation. Productivity- Total Operator Time(F) / Total Finished Units(C). Total amount of manpower spent per piece (in this case, converted to people-seconds per piece). Hours per Thousand is a productivity measure, a more Lean measure is Seconds per Unit. Andy Rogish, Performance Management, rogisha@yoder.com, 239-728-2535 x211

Round #1 Rules The customer wants 12. Produce in batches of 12. Each operator must finish 12 before passing to the next operator. If you finish 12, keep working! Andy Rogish, Performance Management, rogisha@yoder.com, 239-728-2535 x211

Do you think batch size reduction will make a difference? Round #2 Rules The customer wants 12. Produce in batches of 6. Each operator must finish 6 before passing to the next operator. If you finish with 12, keep working! Do you think batch size reduction will make a difference? Andy Rogish, Performance Management, rogisha@yoder.com, 239-728-2535 x211

Why it made a difference. “Batch Processing” Why it made a difference. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Operator 1 m Operator 2 Operator 3 Operator 4 Batch Processing Drop a new widget into this process, how long before it finishes? Effects of “Batch” Manufacturing Long Lead Times Excess WIP / Inventory Creates Waste (Wait, travel, over-production, etc….) Resource Consumption (Handling, floor space, workers) Increases Chances for Poor Quality Continuous Flow Does it take longer to go into the downtown heart of large city at rush hour or at 02:00 am? It is the same distance, and same amount of traffic lights. The difference is the amount of inventory – in terms of cars - on the road! Andy Rogish, Performance Management, rogisha@yoder.com, 239-728-2535 x211

Batch & Queue Nightmare The Old Process meets the New Process. One cart of product moving to growing (in a kaizen that eventually improved the process by 40%), has to wait to get through because of batched raw material narrow the hall, and a batch of 12 carts moving through on one side, and a batch of 9 carts sitting on the other side. Andy Rogish, Performance Management, rogisha@yoder.com, 239-728-2535 x211

Do you think continuous flow will make a difference? Round #3 Rules The customer wants 12. Produce in batches of 1. Each operator must finish 1 before passing to the next operator. If you finish 12, keep working! Do you think continuous flow will make a difference? Andy Rogish, Performance Management, rogisha@yoder.com, 239-728-2535 x211

Why it made a difference. “Continuous Flow” Why it made a difference. Suppose you had to perform the process pictured above: Which method would be faster? Batch Processing / Mass Production do as many as you can, build inventory whenever possible Continuous Flow make one - move one OR Fold each letter until all the letters are folded Stuff each envelope until all the envelopes are stuffed. Seal each envelope until all the envelopes are sealed Apply stamps until all the stamps are applied Go to the mail box. Fold one letter Stuff one envelope with the folded letter Seal the envelope Apply a stamp. Repeat steps 1-4 for each unit. Go to the mail box. Which method would be faster if it was done by 1 person? Which method would be faster if it was done by 3 people? Making an assembly line of 3 people would merely hide the waste. Apply the lesson from the Lego Widget Factory – ‘make one – move one’ would be faster. Andy Rogish, Performance Management, rogisha@yoder.com, 239-728-2535 x211

Value Waste Learning to See Two Forms of Waste Does it change the form, fit, or function of the product? Is the Customer willing to pay for this activity? Waste Two Forms of Waste Necessary Waste- activity that adds no value to the product, but can not be eliminated because of current technology, culture, or politics. Unnecessary Waste- can be eliminated 8 Characteristics of Waste Learning to See means learning to see the flow of activities that create a product, and the associated value and waste associated with my daily activities. The goal is to implement continuous, incremental improvement, always working to eliminate waste and increase value to the customer. Andy Rogish, Performance Management, rogisha@yoder.com, 239-728-2535 x211

8 Characteristics of Waste Andy Rogish, Performance Management, rogisha@yoder.com, 239-728-2535 x211

8 Characteristics of Waste Andy Rogish, Performance Management, rogisha@yoder.com, 239-728-2535 x211

Round #4 Rules The customer wants 12. Form a kaizen team to improve the process, applying the Lean tools that you have learned to eliminate the 8 forms of waste. If you finish 12, keep working! Andy Rogish, Performance Management, rogisha@yoder.com, 239-728-2535 x211

The House of Lean Continuous Improvement Employee Involvement Quick Changeover Standardized Work Batch Reduction Teams Quality at Source 5S System Visual Plant Layout POUS Cellular/Flow Pull/Kanban TPM Value Stream Mapping Continuous Improvement Employee Involvement Andy Rogish, Performance Management, rogisha@yoder.com, 239-728-2535 x211

Operator 5 – Yellow or Orange Operator 6 – Yellow or Orange Pull Systems Operator 5 – Yellow or Orange Operator 6 – Yellow or Orange Operator 7 – Red, Green, or Blue Customer Order Name: Fred’s House of Widgets Date Wanted: Immediately Item: Widget Qty: 4 Customization: Red 4 dots, Yellow 2 dots Customer Order Name: Widgets ‘R-US Date Wanted: Immediately Item: Widget Qty: 4 Customization: Orange 2 dots, Green 4 dots Customer Order Name: Widget-Mart Date Wanted: Immediately Item: Widget Qty: 4 Customization: Blue 4 dots, Yellow 2 dots Andy Rogish, Performance Management, rogisha@yoder.com, 239-728-2535 x211

Pull Systems Andy Rogish, Performance Management, rogisha@yoder.com, 239-728-2535 x211