8/2/2011 1 Chuck Ray Chuck Ray School of Forest Resources School of Forest Resources The Pennsylvania State University The Pennsylvania State University LEAN MANUFACTURING FOR LEAN MANUFACTURING FOR LEAN MANUFACTURING FOR LEAN MANUFACTURING FOR KILN DRYING OPERATIONS KILN DRYING OPERATIONS “Current Plant Measures Current Plant Measures May Not Support Lean” ‐ Armstrong Flooring AME Lean Conference “Lessons Learned”
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Lean Manufacturing for Kiln Drying Operations 2€¦ · Lean Manufacturing Six Sigma W J I i Set‐up reduction Visual manufacturing Total Preventive Maintenance ust‐n‐T me Production
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8/2/2011
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Chuck RayChuck Ray
School of Forest ResourcesSchool of Forest Resources
The Pennsylvania State UniversityThe Pennsylvania State University
LEAN MANUFACTURING FORLEANMANUFACTURING FORLEAN MANUFACTURING FOR LEAN MANUFACTURING FOR KILN DRYING OPERATIONSKILN DRYING OPERATIONS
“Current Plant MeasuresCurrent Plant Measures May Not Support Lean”
• First demonstrated through the Toyota Production System
• Is a set of principles, concepts, and techniques
• Is a socio‐technical system
• Designed to continuously eliminate waste and lcreate value
• Is the current de facto standard of the manufacturing world
What is the greatest challenge to making your company Lean?
• Time involved; cost of doing business
• Managing yield issues
• Employee development and active engagement
• Managing inventory levels
• Yield vs. getting the parts required to complete orders
• Cost of possibly changing the manufacturing process
• Managing raw material quality and lead time• Managing raw material quality and lead time
• Assigning cost of carrying inventory
• Controlling inventory vs. customer demand vs. lean manufacturing principles to improve yield
(from PSU Lean Research Planning Meeting, 9-11-03)
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What factors determine Lean production for your operation(s)?
• Increase inventory turns
• Yields
• Manpower/employee efficiencies
• Overall material cost
• Overhead costs
• Lead time vs. order size
ff i i i h l h i• Effectiveness in managing the supply chain
• Customer willingness to pay for lean benefits (fast delivery, better yield, meet small quantity specifications)
(from PSU Lean Research Planning Meeting, 9-11-03)
What does JIT mean in your business?
• Reduce inventory
• Managing material deliveries to match production schedule• Managing material deliveries to match production schedule
• Not hearing the customer complain
• Reduced lead times
• Raw material JIT is virtually non‐existent in our industry
• Having inventory on the ground for next day delivery to customers
• Our customer base is two fold. 1. Lumber shipments (1‐3 days for 70% of customer base. The balance want material within a few weeks.) This is for KD lumber with maybe some value added millwork. 2. Moulding/components (4 – 10 days for 90% of the customer base.)
(from PSU Lean Research Planning Meeting, 9-11-03)
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How much have you been able to reduce lead times over the past ten years?
• 8‐10 weeks to < 2 weeks on some stock items8 10 weeks to < 2 weeks on some stock items
• Very little discounting existing inventory
• Only marginally, but we have always been strong in this area
• 6‐8 weeks down to 2‐3 weeks on average
• Only through inventory increases which has been primarily from market conditions and raw material availability
• Approximately 33%
• Very little, product has become more customized
• For the dimension mill, 10‐15 days down to 3 days
• Not much, mostly by accident
(from PSU Lean Research Planning Meeting, 9-11-03)
What processes in your operations cause the most problems?
• Controlling waste
• Communication from each level of business
• Inventory control
• Varying cost of material
• Raw material acquisition
• PROCEDURES
• Unexpected downtimes
• Shipping
• Material size and quality variations, plywood thickness variations, laminate defects
• Sanding – solid wood and veneer
(from PSU Lean Research Planning Meeting, 9-11-03)
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Is Lean Production primarily about cost reduction, or not?
• What is the objective of the current effort?
• What tools are being applied?
• What outcomes are necessary?
It depends:
• Are you being beat on cost alone, or is the challenge bigger than that?
Benefits of Lean Manufacturing
Lean Benefits from a Cabinet Company
102030405060708090
100
Red
uct
ion
Rat
e (%
)
010
Safetyreduction inlost work
days
incidentrate
redcution
Customercomplainreduction
Defectquality
reduction
Plant cycletime
reduction
WIPreduction
total costreduction
R
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“U i L O l A C t“Using Lean Only As a Cost Reduction Program WillLead to Failure”
Armstrong Flooring‐ Armstrong Flooring
Safety• 98% reduction in lost work days• Incident rate reduced from 6.4 to 2.9 in last three years• Five‐year trend in reduction of Incident Rate• Received the 2001 and 2002 Masco Platinum Safety Award Quality• 66% Improvement in DPPM • Customer complaints dropped from one per day to less than one per
week• Control plans in place for all processesEquipment Uptime• Uptime above 99%• TPM program implemented• Predictive program implementedDeliveryDelivery• On‐time delivery of 99.7% in 2002• Improved plant cycle time from over 5 days to 17 hours• Reduced WIP by over 80%Cost• Reduced total cost by 7.1% in 2002• Reduced total cost by 2.3% in 2001
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Let’s first briefly review…
What is Lean Production d t b ?supposed to be, anyway?
Lean Manufacturing
Si Si J I iWSix Sigma
Set‐up reduction Visual manufacturing
Total Preventive Maintenance
Just‐In‐Time Production
Waste Elimination
Cellular/Flow Manufacturing
Pull System 5S
KAI
ZEN
KAI
ZEN
Team Work / Employee empowermentTeam Work / Employee empowerment
• “All portions of the Lean Enterprise must be Lean”
• Wood Products Industry Challenge:
– Is this feasible with wood as a raw material?
– Does one link in the chain have to be “Fat”?
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• “All WIP must be reduced to near zero”
Traditional Lean Requirement:
• Wood Products Industry Challenge:
– Producing components from lumber to a precise order file, and discarding the rest, d f l d ld f hdefinitely decreases yield from the raw material. Are these yield losses offset by the gains from running lean?
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“I guarantee I can reduce in‐process inventory. But every time we’ve reduced inventory in the Rough Mill, costs go up.” – a plant manager
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Traditional Lean Requirement
• “Lean companies organize a flexible & p g fresponsive supply chain”
• Wood Products Industry Challenge:
• Are sawmills flexible & responsive ?
• Do your purchasing strategies encourage supplier flexibility or volume discounts ?
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Traditional Lean Requirement
• “All employees must be empowered”All employees must be empowered
• Wood Products Industry Challenge:
– Can our hourly employees adapt to Lean?
– Can leadership systems change?p y g
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Traditional Lean Requirement
• Must have“Self‐discipline for employees”• Have everyone accept 5S as a personal goal.