Lean Manufacturing 1

Internal Challanges

Corporate Objectives

Sales/Marketing Goals

External Challanges

NEW MARKET ENTRANTS

CUSTOMERS

COMPETITION (GLOBALLY)

PROCUREMENT - SUPPLIER RELATIONSHIPS

3 forms of activity

Value Adding

Non-Value Adding, unavoidable

Non-Value Adding, avoidable

value adding

Any operation customer is willing to pay for

non value adding, unavoidable

ANYTHING THAT IS NECESSARY FOR US TO PERFORM VALUE-ADD OPERATIONS BUT UNAVOIDABLE

non value avoidable

ANY OPERATION THAT THE CUSTOMER IS NOT WILLING TO PAY FOR AND/OR IS NOT NECESSARY

types of production waste

DOWNTIME

D - DEFECTS

O - OVERPRODUCTION

W - WAITING

N - NON-UTILIZED TALENT

T - TRANSPORTATION

I - INVENTORY

M - MOTION

E - EXTRA PROCESSING

functional loss

Equipment failure and setup/adjustment

functional reduction

minor stoppages, speed, quality defects/rework, and yield

equipment failure and setup/adjustment losses

Effect availability

minor stopages and speed losses

Effect performance rate

quality defect and rework; yield

Effect quality rate

OEE

Overall Equipment Effectiveness

Measures the percentage of scheduled production time that was truly productive or a machine/line

3 components of OEE

Availability, performance, and quality

Standard cycle time

It is the observed minimum cycle time that produces quality products while the process is running at the best achievable standard operating conditions. Not mathematically derived

Production Capacity

Demonstrated capacity/OEE

demonstrated capacity

Total good parts

installed capacity

Total Possible Calendar Time / Std. Cycle Time

OEE Benefits

Measure Equipment Performance

Large Capacity Issues into small solvable problems

Stability

Machine View

Operator Usable - Track performance vs Standard

Improvement Project - Root cause, ideas

Value Stream

ANY ACTIVITY THAT IS REQUIRED TO DESIGN, ORDER, PRODUCE, AND DELIVER A PRODUCT TO THE CUSTOMER

3 Components of Value Stream

FLOW OF MATERIALS

TRANSFORMATION OF RAW MATERIALS INTO FINISHED PRODUCT

FLOW OF INFORMATION TO SUPPORT FIRST TWO

Value Stream Mapping

GRAPHICS AND ICONS ARE GROUPED TOGETHER TO ILLUSTRATE THE SEQUENCE AND MOVEMENT OF INFORMATION, MATERIALS, AND ACTIONS WITHIN A VALUE STREAM.

3 Sections of Value Stream Mapping

Information flows (top), material flows (middle), lead time ladder (bottom)

Process of Value Stream Mapping

ONLY WORK WITH A VALUE SIREAM WHERE YOU INTEND TO MAKE AN IMPLEMENIATION.

HAVE ONE PERSON DO THE MAPPING - DON'T SPLIT IT UP.

IT IS IMPORTANT TO LIMIT THE SCOPE OF YOUR WORK TO A SINGLE PRODUCT FAMILY.

Product Family

A GROUP OF PRODUCTS THAT PASS THROUGH SIMILAR PROCESSING STEPS AND THROUGH COMMON EQUIPMENT IN YOUR DOWNSTREAM PROCESSES.

Value Stream Mapping Objectives

FLEXIBLE PROCESSES TO RESPOND QUICKLY TO CHANGING CUSTOMER REQUIREMENTS

SHORTEN LEAD TIME (FROM ORDER TO DELIVERY)

CONNECTED PROCESS WITH FLOW AND PULL

SIMPLIFY THE FLOW OF INFORMATION WITHIN THE VALUE STREAM

A CLEAR UNDERSTANDING OF CUSTOMER REQUIREMENTS; REQUIRED RATE, VOLUME, MIX, SEQUENCE

CREATE A PACE SETTER PROCESS

Value Stream Mapping Benefits

HELPS WITH VISUALIZING BEYOND THE PROCESS LEVEL - SEEING FLOW

HELPS YOU SEE THE SOURCES OF WASTE

PROVIDES A COMMON LANGUAGE FOR TALKING ABOUT MANUFACTURING PROCESSES

HELPS MAKE DECISIONS ABOUT FLOW APPARENT - EASY TO DISCUSS

TIES TOGETHER LEAN CONCEPTS AND TECHNIQUES

CAN BECOME THE BLUEPRINT FOR LEAN IMPLEMENTATION - FUTURE STATE PLAN

SHOWS HOW INFORMATION FLOW AND MATERIAL FLOW ARE LINKED TOGETHER

QUALITATIVE TOOL THAT HELPS IN HOW YOUR FACILITY SHOULD OPERATE TO CREATE FLOW

Value Stream Mapping Tips

USE THE CURRENT STATE MAP ONLY AS A FOUNDATION FOR FUTURE STATE MAP

FUTURE STATE MAP ONLY REPRESENTS THE CONCEPT

FUTURE STATE MAP CREATION NEEDS SO FACILITATION FROM LEAN EXPERT

THE PURPOSE OF MAPPING IS ACTION

DON'T DEVELOP ANY MAP BEFORE ITS TIME

SOMEONE WITH MANAGEMENT CLOUT HAS TO LEAD

PLAN DO CHECK ACT