Implementation of Lean at Rheem Manufacturing Dr. Joan A. Burtner Associate Professor and Chair Department of Industrial Engineering and Industrial Management Mercer University School of Engineering Macon, GA

Chair, Dept of Ind. Egr/ Ind Mgt 2014 Introduction Background on the Evolution of Lean Manufacturing Overview to Lean Principles Highlights of Implementation of Lean Practices at Rheem Manufacturing Co. in Milledgeville, GA Dr. Joan Burtner Chair, Dept of Ind. Egr/ Ind Mgt 2014

Evolution of Lean Manufacturing Total Quality Management Toyota Production System Six Sigma Process Improvement Theory of Constraints Value Stream Mapping Womack and Jones - Lean Thinking Rother and Shook - Learning to See Dr. Joan Burtner Chair, Dept of Ind. Egr/ Ind Mgt 2014

Continuous Improvement Process (with a lean spin) Clarify improvement needs (objectives) Observe operation(s) through your own eyes Identify problems based on observations Resolve problems (kaizen) New ideas become new standard operating procedure Maintain new methods Continuously repeat steps 1 through 6 Dr. Joan Burtner Chair, Dept of Ind. Egr/ Ind Mgt 2014

Chair, Dept of Ind. Egr/ Ind Mgt 2014 Wasteful Practices Waiting Transportation Overproduction Processing Inventory Motion Defective Products Dr. Joan Burtner Chair, Dept of Ind. Egr/ Ind Mgt 2014

5S’s Modified from Besterfield (SIMPLIFY or SORT) SIMPLIFY MEANS CLEARLY DISTINGUISHING BETWEEN WHAT IS NEEDED AND KEPT AND WHAT IS UNNEEDED AND THROWN OUT (STRAIGHTEN) STRAIGHTEN MEANS ORGANIZING THE WAY WE KEEP NECESSARY THINGS, MAKING IT EASIER TO FIND AND USE THEM (SCRUB or SHINE) SCRUB MEANS KEEPING THE FLOORS SWEPT, MACHINES AND FURNITURE CLEAN, AND ALL AREAS NEAT AND TIDY (STABILIZE or STANDARDIZE) STABILIZE DEVELOP BEST PRACTICES AND STANDARD OPERATING PROCEDURES BASED ON WHAT WAS LEARNED FROM THE FIRST THREE S’S (SUSTAIN) SUSTAIN MEANS ACHIEVING THE DISCIPLINE OR HABIT OF PROPERLY MAINTAINING CORRECT 5S PROCEDURES Dr. Joan Burtner Chair, Dept of Ind. Egr/ Ind Mgt 2014

Lean Metrics (Quantitative) Lead-times Inventory Inventory Turns Work In Process Workable Floor Space Efficiency Cycle Time Dr. Joan Burtner Chair, Dept of Ind. Egr/ Ind Mgt 2014

Building Blocks of a World Class Company One – Piece Work Flow Kanbans Work Balancing Cellular Layout Quality Improvements Poka Yoke TPM SMED 5’s Visuals Work Teams Dr. Joan Burtner Chair, Dept of Ind. Egr/ Ind Mgt 2014

Typical Improvement Projects Time studies Line Balances Creating work cells Housekeeping (5 S’s) Visual Control Dr. Joan Burtner Chair, Dept of Ind. Egr/ Ind Mgt 2014

General Guidelines for Visual Control at Rheem Work Stations Should Include: Work instructions (S.O.P.’S) Quality instructions Safety reminders Clearly marked part delivery locations Tool boards (where needed) Production boards (where needed) Layouts Dr. Joan Burtner Chair, Dept of Ind. Egr/ Ind Mgt 2014

Implementation of Visual Control at Rheem Spring and Summer 2003 Kaizen and 5 S All Assembly Lines Created Zoned Housekeeping Layouts for All Major Production Areas Designated Part Delivery and Storage Locations Placed Production and Quality Status Boards Began Drafting Standard Operating Procedures and Safety Reminders for All Work Stations Dr. Joan Burtner Chair, Dept of Ind. Egr/ Ind Mgt 2014

Kaizen of an Assembly Line 1 Before After Dr. Joan Burtner Chair, Dept of Ind. Egr/ Ind Mgt 2014

Kaizen of an Assembly Line 2 Before After Dr. Joan Burtner Chair, Dept of Ind. Egr/ Ind Mgt 2014

Using Work Teams at Rheem Cross-functional work teams for solving problems Composition of Work Teams Upper management Supervisors Co-op Students Engineers Assembly Line Workers Dr. Joan Burtner Chair, Dept of Ind. Egr/ Ind Mgt 2014

CONTINOUS IMPROVEMENT TOOLS FOR BALANCING WORK Takt Time Available Daily Work Time Time Observation Standard Work Flow Diagrams Cellular Layout Work Distribution Sheet Dr. Joan Burtner Chair, Dept of Ind. Egr/ Ind Mgt 2014

Chair, Dept of Ind. Egr/ Ind Mgt 2014 Time Observation Observe a process or machine Enter each task component onto a form Note exceptions or non-repeating tasks Calculate the average cycle time for each task Add all average element times to find the cycle time of the total process Dr. Joan Burtner Chair, Dept of Ind. Egr/ Ind Mgt 2014

Standard Work Flow Diagram Used to help identify the flow of the operation(s) you are observing Used as a layout for developing an improved process An excellent tool to use to develop standard work procedures Dr. Joan Burtner Chair, Dept of Ind. Egr/ Ind Mgt 2014

Chair, Dept of Ind. Egr/ Ind Mgt 2014 Cellular Layouts The arrangement of manufacturing work cells to allow for a flowing process With this concept, work can performed without the need for large inventory batches The parts enter the beginning of the cell as raw materials and exit the cell as completed units Dr. Joan Burtner Chair, Dept of Ind. Egr/ Ind Mgt 2014

Chair, Dept of Ind. Egr/ Ind Mgt 2014 Acknowledgments Rheem Manufacturing Permission to use training materials Permission to use photos ISE and IDM Students Permission to use student work Dr. Joan Burtner Chair, Dept of Ind. Egr/ Ind Mgt 2014

Questions and Discussion Contact Information Dr. Joan Burtner Burtner_J@Mercer.edu 478 301-4127 Dr. Joan Burtner Chair, Dept of Ind. Egr/ Ind Mgt 2014