1. Welcome To Demand Flow Technology Workshop
Principles of Lean Manufacturing

2. 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

3. 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.

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

5. 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.

6. 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.

7. 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.

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

9. 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

10. 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

11. 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

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

13. 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

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

15. Product Synch

16. 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.

18. 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.

19. SOE

20. 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

21. 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.

22. 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

23. 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

24. 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

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

26. 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.

27. 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

28. 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.

29. 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

30. 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)

31. 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

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

33. 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

34. 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)

35. 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.

36. 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

37. 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

38. Measuring Linearity
Example: during a nine-day period the production rate is (4) per day:
=36
Actual production was:
=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.

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

40. QUESTIONS???