M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P MTES maryland technology extension service Management Information Session Lean Manufacturing.

M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I PMTESmaryland technology extension service

Management Information Session

Lean Manufacturing

Maryland Technology Extension Service

Contributions made by the Lean Manufacturing Working Group

* Locally known as Alabama Technology Network/University of Alabama, Huntsville; Georgia Manufacturing Extension Partnership; Massachusetts Manufacturing Partnership; Michigan Manufacturing Technology Center; Delaware Valley Industrial Resource Center; and Tennessee Manufacturing Extension Partnership

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maryland technology extension service

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OBJECTIVE

To present a brief introduction to Lean Manufacturing to address the following:

1. What are the benefits of Lean Manufacturing?

2. What parts of the Organization are affected by Lean?

3. What are the “Keys To Success” in implementing Lean?

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What Are The Benefits of Lean?

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WHY COMPANIES INTRODUCED CELLULAR MANUFACTURING

1. On-Time delivery

2. Improved response

3. Reduced inventory

4. Improved quality

5. Improved workflow

6. Achievement of flexibility

7. Culture change

8. Delegation of accountability

9. Better use of plant

10. Better use of skilled labor

11. Job satisfaction

12. Information FlowFrom Ingersoll Engineers’ Study in “Making Manufacturing Cells Work” Edited by Lee R. Nyman, 1992

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LEAD TIME AND INVENTORY RESULTS

LEAD TIME % of Companies

No Change 4%

Decreased up to 25% 38%

Decreased 25%-50% 30%

Decreased more than 50% 28%

INVENTORY % of Companies

No Change 18%

Decreased up to 25% 30%

Decreased 25%-50% 33%

Decreased more than 50% 19%

“A majority of companies rated their overall investment as small or none.”

From Ingersoll Engineers’ Study in “Making Manufacturing Cells Work” Edited by Lee R. Nyman, 1992

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Customer Rejects Avg. 65% Reduction Manufacturing Lead-time Avg. 59% Reduction Lot Size Avg. 59% Reduction On-Time Delivery Avg. 95%

– 60% based on customer request date

– 40% based on promised date to customer

Approximate increase in unit Avg. 208% Increase

sales volume for specific

major products since 1990

From “AMERICA’S BEST - INDUSTRYWEEK’S Guide to World-Class Manufacturing Plants”

JIT/Continuous-flow Manufacturing 1993 1994 1995

96% 96% 100%

INDUSTRYWEEK - BEST PLANTS

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Lead Time Reduction

Productivity Increase

WIP Reduction

Quality Improvement

Space Utilization

0 25 50 75 100

Percentage of Benefits Achieved

Flexibility Skill Enhancement Visual Mgmnt

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Simplified Scheduling Less Transactions Less Variation, “More” Predictability Forecasts Become More Accurate Quicker Response To Design Changes Quicker Market Response Problems Are Visible Product Team Organization - Eliminates

Departmental Conflicts Facilitates Cross Training Facilitates Alternate Pay Schemes (Pay

For Skills)

ADDITIONAL BENEFITS

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BUSINESS GOALS THAT “LEAN” SUPPORTS

Turn Sales Orders into Profits as Quickly as Possible Decrease the time period from buying or fabricating components until you get paid by the customer for the finished product.

Increase ProfitsReduce Costs and Increase Sales.

Use Limited Resources Wisely People, Equipment, Buildings, etc.

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What is

Lean Manufacturing?

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Lean is a System strategy.

Successful implementation is in the Details.

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Toyota Production System Pull Manufacturing

Just-In-Time

Lean Manufacturing

JIT/TQC/EI/TPM

Short Cycle Manufacturing

One-Piece-Flow

Cellular Manufacturing Demand Flow Manufacturing

Stockless Production Focused Flow Manufacturing

Agility Value Adding Manufacturing

Group Technology Time Based Management

Synchronous Flow Manufacturing End-Lining Operations Continuous Flow Manufacturing

MANY NAMES, BUT THE SAME CONCEPT

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“A team based approach to identifying and eliminating waste (non-value-adding activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection”

DEFINING LEAN (OR ONE PIECE FLOW, OR JIT, OR …..)

ANOTHER DEFINITION

“A manufacturing philosophy that shortens the time line between the customer order and the shipment by eliminating waste (non-value-adding activities).”

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Value AddedAny activity that increases the market form or function of the product or service. (These are things the customer is willing to pay for.)

Non-Value Added = Waste Any activity that does not add market form or

function or is not necessary. (These activities should be eliminated, simplified, reduced or integrated.)

DEFINITION OF VALUE ADDED

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Typically 95% of Total Lead Time is Non-Value Added!!!

RUNTIME

Order Processing, Transport, Storage, Waiting, Rework, Machine Setup, Inspection, Machine Breakdowns, etc...

Total Lead Time

LEAN = ELIMINATING THE WASTES

Raw StockQ C Rec Ship

Shear

Screw Machin

e

Q CStamp

AssemblyBrak

eMill

Lathe

Weld FinishGrind Parts Stock

Drill

Value-Added Time : MinutesTime in Plant : Weeks

ORDER CASH

FUNCTIONAL PLANT LAYOUT

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1. Overproduction

2. Motion

3. Inventory

4. Waiting

5. Transportation

6. Extra Processing

7. Defects

8. Underutilized People

** Producing goods and services that

don’t meet customer needs

**James Womack, “Lean Thinking”

THE 8 WASTES

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The Lean Techniques

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Cell– A grouping of dissimilar work stations or operations into a flow

line to produce a specific product or product family.– Cells can be formed to produce a complete assembly, a

portion of an assembly, or a component(s).– Continuous Flow refers to producing one product at a time

within the cell.

Functional Department– A grouping of similar workstations or operations that perform

the same type of function. (e.g. All lathes are located in one area, and all grinders are located in a separate area.)

DEFINITIONS

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Cell Advantages Over Functional Department

1. Shorter Lead Time

2. Improved Quality - Quicker problem identification

3. Improved Quality - Less potential rework or scrap

4. Less Material Handling

5. Improved Coordination

6. Reduced Inventory

7. Departmental conflicts eliminated

8. Simplified Scheduling

9. Less Space Required

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FUNCTIONAL DEPARTMENTS AND CELLS

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Case Study

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Original Functional Layout

CASE STUDY - INJECTION MOLDER / ASSEMBLER

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Improved Flows - Product Group #1

NOTES METRICS

• 6 Cells • Flow Distance reduced from 280’ to 34’• Warehouse removed from process • Lead-time (molding through packaging)• Controlled amount of buffer reduced from 9 days to 5 hours• Color coding per cell • Lead-time (including all WIP) • Parts boxed for shipment in cell reduced from 9 days to 2.5 days• Molding Final Inspection eliminated • 65% WIP reduction

• 14% Reject reduction • Transactions Reduced 67%+

CASE STUDY - INJECTION MOLDER / ASSEMBLER

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Change

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If we all know we need to improve, the question becomes: why don’t we?

BARRIERS TO IMPROVEMENT

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IMP

RO

VE

ME

NT

TIME

RESISTANT TO CHANGE“IT WILL NEVER WORK”

WAIT AND SEE “SHOW ME”

READY FOR CHANGE“LET’S GET STARTED”

ATTITUDE CURVE

RANGE OF ATTITUDES

NU

MB

ER

OF

PE

OP

LE

LEARNING CURVE

Involvement leads to Ownership which leads to Commitmentwhich leads to Success.

CHANGE CURVES

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Prepare and Motivate People – Widespread orientation to CI, quality, training and

recruiting workers with appropriate skills– Create common understanding of need to change

to lean

Employee Involvement– Push decision making and system development

down to the “lowest levels”– Trained and truly empowered people

Share information and manage expectations Identify & empower champions, particularly

operations managers– Remove roadblocks (I.e., people, layout, systems)– Make it both directive yet empowering

KEYS TO SUCCESS

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Summary

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1. Lean Manufacturing is a broad system strategy, but successful implementation is in the details.

2. Lean Manufacturing is an Organization-wide Change Process.

3. Successful Implementation requires commitment & involvement across all levels.

4. Lean solutions are usually no cost/low cost.

5. “World Class” companies are implementing the Principles of Lean Manufacturing.

SUMMARY

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THE “END”

M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P MTES maryland technology extension service Management Information Session Lean Manufacturing.

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