Lean for Process Manufacturing QAD Midwest User Group Meeting Stephen Dombroski – September 2011
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Lean for Process Manufacturing
QAD Midwest User Group Meeting
Stephen Dombroski – September 2011
• Overview of Lean Principles
• Specific Features of the Process industries
• Identifying Wastes in Process Industries
• Applying Lean Tools in Process Manufacturing
• QAD Tools for Lean in Manufacturing
Agenda
Overview of Lean Principles
• Origin- Derived from the Toyota Production System (TPS)
focused on minimizing waste in the production process
• Fundamentals- Best Quality- Lowest Cost- Shortest Lead Time- Minimize Waste through the Production Process
• Traditionally Applied to Discrete Manufacturing
Overview of Lean Principles
5
Overview of Lean PrinciplesTPS House
• TPS House
• Two Essential “Pillars”- Just in Time- “Jikoda” – Quality
• House Center- Motivated People
• Foundation- Heijunka – Level Production- Standardized Work – Definition of Specific Tasks- Kaizen – Continuous Improvement- Stability – Stable Environment
Overview of Lean Principles
• The Essence of Lean- Elimination of all Waste- Continuous Improvement- Produce when a customer wants it- Ensuring Quality
• Major Principles- Value- Value Stream- Flow- Pull- Perfection
Overview of Lean Principles
• Lean Today- What is Lean Today?
• A Concept?• A Philosophy?• A Practice?• A Process?
• Answer: All of the Above- Many ideas and philosophies and how to get
there.
Overview of Lean Principles
Process Industries – Specific Features
• Industries Categorized as Types- Discrete – Typically Assembly Manufacturing
• Finished product can be broken down to the original parts
- Automotive- Electronics- Tools
- Process – Flow Production, Reactive Production consisting of formulas and recipes• Once it is put together, you cannot take it apart
- Processed Foods- Beverages- Chemicals- Paper Products
Process Industries – What are They?
11
Process Versus Discrete Manufacturing
Industry Discrete Manufacturing Process Manufacturing
Examples Automotive Chemicals
Electronics Paints
Power Tools Processed Foods
Industrial Equipment Beverages
Home Appliances Paper and Plastic
Process Flow Model Many Raw Materials Few Raw Materials
Part Variety Material Variety
Little Final Differentiation High Final Differentiation
Primary Focus Waste Cycle Time and Waste
Over Production Over Production
Defects Yield Losses
Lot Size of One Lot Sized Based On Equipment
Primary Economic Drivers Labor Productivity Asset Productivity
Inventory Reduction Inventory Reduction
Increased Throughput
Reduction in Yield Losses
12
Process Versus Discrete Manufacturing
Industry Discrete Manufacturing Process Manufacturing
Primary Production Factor Labor Equipment
Setup, Changeover Processes Machine Setup Time to Clean Process Vessels
Tool Availability Time for Temperature Stabilization
Time for Pressures to Equilibrate
Tools Value Stream Mapping Supply Chain Mapping
Standard Work Value Stream Mapping
Poka-Yoke Poka-Yoke
SMED SMED
Cell Manufacturing Product Wheels
5S 5S
• Dynamics of Process Manufacturing- Volume and Variety- Capital (Equipment ) Versus Labor- Processes are Difficult to Stop and Start- Setups and Changeovers are Complex - Inventory Focus – Finished Product versus WIP- Inventory Accessibility (Hidden WIP)- Material Flow Patterns Production Process
• Flow patterns are reversed between process and discrete
Process Industries – Key Characteristics
14
Simple Process Industry Diagram
Finished Products
Packaging
Processing 2
Processing 1
Raw Materials
• Typically Fewer Raw Materials
• Dependent on Raw Natural Resources
• Equipment Typically Much Larger
• Equipment a Higher Impact on the Process
• High Degree of Product Differentiation
• Process Step based not Work Center based
Summary – Key Characteristics of Process Industries
Identifying Wastes in Process Industries
• Waste is the Major Principle of Lean and TPS- Identifying and eliminating waste is the
key to raising productivity.• Waste with Relationship to Costs
- Equating Waste with Customer Value
- Categorizing Waste• People• Material• Time
Identifying Wastes in Manufacturing
• Categories of Waste- Waste of Overproduction- Transportation Waste- Waste of Time (Waiting Periods)- Processing Waste- Waste of Inventory- Waste of Movement- Wasted of Defective Material, Yield Loss
Identifying Wastes in Manufacturing
• Overproduction - Making more product than demand requires- Batch Size or Campaign Size Practices- Process Variations
• Transportation - All movement of materials within the manufacturing operation- Disconnected Material Flow- Specialty Storage Areas- Facility Design
Categories of Waste
• Time (Waiting Periods) – Time waiting for material to arrive- Material Delivery- Curing/Hold Time- Inspection Time- Start Up Time
Categories of Waste
• Processing – Wastes in the Process- Processing necessary to identify potential issues - Inspection- Testing- Laboratory Operations- Rework Operations
• Inventory – Technically all in-process inventory is waste- Minimize excess amounts- Synchronizing production steps- Rate Synchronizations- Bottleneck Issues- Leftover Material – Heels- Campaign Sizes
Categories of Waste
• Movement – People Movement, moving from station to station- Time to move through the facility- Operators moving from step to step
• Defect Material, Yield Loss – Out of spec materials to process or customer standards- Wrong Thickness- Incorrect Potencies- Fat Content- Quality Defects
Categories of Waste
• Major Lean Principle is Waste- Identifying and Eliminating Waste Key to Successful
Lean Practices- Wastes can be detected in both discrete and process
environments
• Wastes Can be Segmented into Categories
• Waste is anything that can be measured by value
• Value is also Categorized- Value to the Business- Value to the Customer
Summary - Identifying Wastes in Process Manufacturing
Applying the Lean Tools in Process Manufacturing
• There are a Variety of Tools or Practices to enable the Lean Concept
• Traditionally, Lean focused on Discrete Production
• Most of the Traditional Lean Tools can be Applied to Process Manufacturing
Lean is a Concept, Practice and Philosophy
• The Traditional Lean Tools are:- Mapping of your processes- Time Management- Continuous Improvement- Organization- Quality- Minimizing Errors- Problem Solving
Lean Tools for Process
• Value Stream Mapping – Visual Diagram- Process Steps- Flow of Materials, Activities and Time for Each Step
Lean Tools for Process
• Takt Time- Time Mapping- Time interval in which each process step must be
completed to meet customer demand- Processing Time- Hold/Quality Time
• Kaizen- Japanese term for continuous improvement- Process of constantly looking for improvements in
processes- Kaizen is a philosophy
Lean Tools for Process
• 5S – Five Step Process for organizing all areas of the workplace
Lean Tools for Process
• Jidoka- One of the two Pillars- Philosophy of Quality- If a Quality Issue is detected, activities stop until it is
resolved
Lean Tools for Process
• SMED – Single Minute Exchange of Dies- Philosophy of analyzing all steps to a changeover,
setups- Minimize Time and Material Waste- Decreasing changeover time
• Poka-Yoke- Techniques for minimizing mistakes- Prevention of defective products, bad yields- Prevent equipment from being setup incorrectly- Sensors- Color Coding
Lean Tools for Process
• Five Whys – Always ask Why?- Philosophy of asking questions to solving a problem- Continue to ask questions - How did a problem occur?- Questions about the solutions so it is a sound solution
• Standard Work- Specific tasks to be performed in each production step- Operational sequence- Timing- Referred to as “SOP”s, Standard Operating Procedures
Lean Tools for Process
• TPM – Total Productive Maintenance- Practices of improving how is equipment is operated and
maintained
Lean Tools for Process
• Cellular Manufacturing- Dividing the process into families that require similar steps- Improves Quality- Reduces Changeovers- Reduces Variability- Improves Throughput
• Heijunka- Production Leveling or Production Smoothing- Load Leveling- Product Wheel
• Kanban- Process for visually signaling what is needed- What needs to be produced to replace what the customer has
purchased
Lean Tools for Process
• Just-In-Time- One of the two Pillars- Make What is Needed- Make it When it is Needed- Make the Exact Quantity Needed
Lean Tools for Process
• Lean Tools focus on:- Minimizing Waste- Minimizing Mistakes- Maximizing Utilization- Cost Effectiveness- Better Service to the Customer- Empowering Team Members
• These can be applied to any type of operation
• In Essence: Common Sense Business Practices
Summary - Lean Tools for Process Manufacturing
QAD Lean Manufacturing
• Supports Kanban and flow scheduling
• Enables tight inventory management
• Provides complete functionality to establish and execute Kanban processes
• Integrated visualization tool
• Most evolved suite of tools
• Uses the Power of QAD .NET
QAD Lean Manufacturing
• Buffer/Supermarket Data Identifies Details of Buffer Stock Calculations
Kanban Master Maintenance
Kanban Process Workbench
Push Pull
42
In many cases, organizations have not integrated Plant Operations into production business processes
Plant Operations Challenges
Manufacturing Process
Shipping & Receiving
Engineering Services
Direct Materials
ProductionOperators
Quality Assurance
Sales & Order Entry
Production Planning & Scheduling
Plant Operations
43
Align plant Operation with production’s goals and objectives
The Goal
Manufacturing Process
Shipping & Receiving
Engineering Services
Direct Materials
ProductionOperators
Quality Assurance
Sales & Order Entry
Production Planning & Scheduling
Plant Operations
• Increases on-time delivery performance and responsiveness to customer needs
• Improves customer satisfaction by allowing for better fulfillment strategies
• Build to actual demand rather than making stock
• Reduces working capital by reductions in inventory
Values of QAD Lean Manufacturing
Conclusion
Midwest User Group Meeting
• Lean Principles- JIT- Quality
• Process Industries Differentiators- Capital vs. Labor
• Wastes in Process Industries- Eliminating anything that decreases value
• Lean Tools for Process- Improve Quality- Adding Value
• QAD Lean Manufacturing- Build to actual demand- Inventory Management
• Lean is a Practice
Summary - Lean for Process Manufacturing
Questions
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