1 © the delos partnership 2005 application of lean- integration related to factory

1 © The Delos Partnership 2005

Application of Lean- IntegrationApplication of Lean- Integration

Related to Factory


Lean is elimination of wasteLean is elimination of waste

RunRun

RunRun Setup

Setup

ReceiveReceiveSuppliersSuppliers InspectInspect StoreStore

PickPickSetup

Setup QueueQueue

InspectInspect

Operation 10

QueueQueue Setup

Setup RunRun

Operation 20

InspectInspect

StoreStoreQueueQueueInspectInspectStoreStore

CustomersCustomers

Operation 30


Acceptable QualityAcceptable Quality

5 % Defect level = 50,000 ppm

2 % Defect Level = 20,000 ppm

0.02 % Defect Level = 200 ppm

3.4 Parts Per Million = 6 sigma


Quality Tools requiredQuality Tools required

• Simpler ideas force higher quality

• Quality is in the process not the product

• Operators need to do root cause analysis to identify process problems– Hence pareto charts– Histograms– Run charts


Quality problems identified from Quality problems identified from the process chartsthe process charts

0

5

10

15

20

25

Mon Tue Wed Thu Fri Mon Tue Wed Thu Fri

0

5

10

15

20

25

UCL

LCL

Result

Problems


Reduce Process VariabilityReduce Process Variability

0

5

10

15

20

25

30

35

40

% of ItemsObserved

EliminateEliminateproblemsproblems

Reduce the variationReduce the variation


Economic Order QuantityEconomic Order Quantity

£0

£1,000

£2,000

£3,000

£4,000

£5,000

£6,000

£7,000

100 200 300 400 500 600

InventorySet up

Minimum Cost


Set up- DefinitionSet up- Definition

• The time taken between the completion of the last good quality piece and the start of production of the next good quality piece

• Time can be categorised into– External set up time– Internal set up time


SMED – how to achieveSMED – how to achieve

• Take a video• Record all activities related to change-over• Record as internal or external• Set up group of operators• Brainstorm ways to reduce internal, or

convert internal to external• Implement• Do it again and again


Set Up ReductionSet Up Reduction

Stage Step Time Changeover Type Improvements

Total Step Internal External Waste

Startup 0’.00”

1 Clean Hopper with air blower

32’00” 32’00” A smaller hooper than 150kg ?

2 Get cleanser to put in hopper

34’00” 2’00” Relocate cleanser

3 Keep cleaning injector

52’00” 18’00” Avoid walking to switch

4 Feed ABS pigment to hopper

60’00” 8’00” Unnecessary?

5 Use air blower to clean hopper

67’00” 7’00” Cassette type min-hoppers ?

6 Do a free shot to inject plastic into mould

96’50” 29’50” Moulds with 25 kg too large. Unnecessary step

Process Colour Change Responsible A Jones Item Housing

Machine Mitsubishi Measured By B Brown Changeover time 96’50”


Set –up Time reductionSet –up Time reduction

• Objective is– Smaller Batch sizes– Quicker Lead Times– More flexibility

• It is not to– Fill up with extra production– Reduce people


Today’s job shop Today’s job shop environmentenvironment

Drilling Department

Turning Department

Sanding Department

Finishing Department

GoodsOut


Tomorrow’s flow Tomorrow’s flow environmentenvironment

Flow Line 1Flow Line 1

Flow Line 2Flow Line 2


Review Material FlowsReview Material Flows

Kitting area

Kitting area

Kittingarea

Kittingarea

ProductionProduction



StoresStores Stores or Work-in-Process ?Stores or Work-in-Process ?


Define Systems and Define Systems and ProceduresProceduresEvery material movement needs a

transaction

Material movement can be recorded by discrete issue or backflush

In = +

Out = -

In = +

Out = -


Backflush Technique Backflush Technique

• Backflushing is a technique for downdating inventory

• Uses Bill of Material to work out what has been used

• Supports an environment in which works orders are not used

• Allows bulk replenishment• Simplifies material control


Handle Structure with BOM’s Handle Structure with BOM’s at every level ?at every level ?

12345 Case of Paper Clips

12345 Case of Paper Clips

12346 Cardboard Case

12346 Cardboard Case

12347 Box of 100 Clips

12347 Box of 100 Clips

12351 Label Case

12351 Label Case

12352 Sellotape

12352 Sellotape

12350 Label for Carton

12350 Label for Carton

12360 Paint

12360 Paint

12361 Wire

12361 Wire

12370 Painted clip in box

12370 Painted clip in box

12353 Painted Clip

12353 Painted Clip

12349 Box

12349 Box


How to trigger actionHow to trigger action

VARIETY

LOW HIGH

V

O

L

LOW WTL WTL

HIGH KANBAN WTL

/KANBAN


Factory – working the planFactory – working the plan

AND/OR

What do I make next ?

Kanban

WorkTo

Lists


KanbanKanban

Means “visible signal”

Replaces need for Work to List

Replaced by– Card– Empty square– Tennis Ball– Empty package


KanbanKanban

• Visible instruction to make or move• Highlights problems• Requires line balance• Requires Andon – traffic light operation• Operator responsible for own quality• Must not pass on known defects• Small batch quantity required


KanbanKanban

• Works to keep the “Kanban” full

• When full must stop

• Do not build extra

• Result is – less WIP– Improved Quality– Shorter Lead times


Kanban vs WTLKanban vs WTL

• Visible feedback• Signal driven not date driven

– Both require feedback– Good Quality helps both– Problem solving tools should support both– WTL needs MRP and CRP; Kanban needs

SOP and RCCP


Eliminate WasteEliminate Waste

“5 S’s”– Organisation– Orderliness– Cleanliness– Standard Clean up– Discipline

Japanese

Seiri - sorting, i.e., proper arrangement

of all items, storage, equipment, tools, inventoryand traffic

Seiton orderliness Seiso cleanliness Seiketsu standardization Shitsuke self-discipline


HousekeepingHousekeeping

“Pick it up your mother does not work here”

Clean, tidy ordered workplace

Locations for everything– Tools – shadow boards– Supplies – clear locations– Materials– Gloves, Overalls etc - cupboards


MRP “Spreadsheet”MRP “Spreadsheet”

1 2 3 4 5 6 7 8 9Projected

Gross Requirements2020 2020 4040 2020 2020

Scheduled Receipts 3030 3030Projected Available Balance

00

Planned Order Release

Weeks

Part Number Description :

14356 Red Barrel

Lead Time : 3 pds

Order Quantity : 30

Safety Stock : 100

Scrap % = 5

1010 1010 2020 2020 1010 -20-20 1010 -10-10 2020

3232 3232

1010 2020

3232 3232


-20-20-20-20

Lean ERP “Spreadsheet”Lean ERP “Spreadsheet”

1 2 3 4 5 6 7 8 9Projected

Gross Requirements2020 2020 4040 2020 2020

Scheduled Receipts 3030Projected Available Balance

00

Planned Order Release

Weeks

Part Number Description :

14356 Red Barrel

Lead Time : 1 pds

Order Quantity : 1/1

Safety Stock : 0

Scrap % = 0

1010 1010 00 00 00 00 00

1010 4040

00 00

2020 2020


Challenges for Financial Challenges for Financial supportsupport

1. Eliminate transactions2. Eliminate Standard Costing3. Implement Target Costing4. Move from Profit to Cash Flow reporting5. Report by Value Stream6. Implement Monthly Sales and Operations

Planning and eliminate the budget.7. Measure Performance by Performance

Measures and not actual versus budget


Eliminate TransactionsEliminate Transactions

1. Invoicing – is this necessary ?

2. Purchase Orders – eliminate three way matching. Pay suppliers on production

3. Works orders – eliminate

Inspection Prevention

Low Volume

High Volume


Where does Value get added ?Where does Value get added ?

Budget

July August September October November December

MarketingPlan

ManufacturingPlan

FinancialPlan

Corporate“Input”

SuperCorporateInput


Change Minds not just Change Minds not just systemssystems

Successful change

Successful change

CULTURECULTURE

TEAMWORKSHARED VISION

COMMUNICATIONWAYS OF WORKING

ACCURACY AND DISCIPLINEPOLICIES AND PROCEDURE

HARDWAREPLANNING TOOLS

LEAN TOOLSAGILE TOOLSSOFTWARE

ACCURATE DATAVALID SCHEDULES

TOOLSTOOLS


Integration is the keyIntegration is the key

SimplicityQuality

1 © the delos partnership 2005 application of lean- integration related to factory

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