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International Expert Workshopon Lean Manufacturing
Balázs Németh, Phd.
The National Localization IndabaDurban
5 June 2014
Background� Hungary (Central Eastern Europe)� 93 000 square km, 10 Million People� Major industries
� Automotive� Chemicals & Pharmaceuticals� Information Technology� Manufacturing (Metal fabrication, pressing etc.)� Electronics (Shrinking, contract manufacturing was
leaving)� Food Industry + Agriculture� Construction Industry� Clothing & Textiles used to be big (not anymore)
2
Common goal: Improving productivity
Productivity =
Output
Input
(Shareholders, managers, employees, customers)
Satisfaction
Commitment
6
Reponses
� TQM� Six Sigma� Automation� BPR� Cost Cutting, Right Sizing� Outsourcing� Lean� TPM� Theory of Contraints
7
8
Historical Overview
Industrialization
Automotive
TQM
xxxxxxxxx xxxxxxx
Baldridge award
ISO 9000,
Six Sigma
BPM
19301955
1965
1980
1987
1992
Artisans
SPC
PDCA
QC Japan
Aerospace
TQC
EFQMBenchmarking
5S
Automotive
ISO/TS 16949
Lean
1999
Walter A.
ShewhartHenry Ford
Frederick W.
Taylor
Kaoru Ishikawa
W. Edwards Deming
Armand W. Feigenbaum
Philip B. CrosbyJoseph M. Juran
Mikel HarryRobert Camp
James HarringtonGenichi Taguchi
Taichi Ohno
Daniel Jones
James Womack
Shigeo Shingo
Hiroyuki Hirano
Toyota Production System
Taichi OhnoShigeo Shingo
„All we doing is looking at the timeline from the moment the customer gives us an order to the point when we collect the cash. And we are reducing that time by removing non value added wastes.” Taichi Ohno
10
11
Lean approach
Order Payment
Material received Product delivered
Material payment
Material ordered
Lead time from order to payment
Lead time from cash to cash
Lead time of transformation system
Lead time of order fulfillment
5 Principles of Lean Management
1. Specify value from the standpoint of the end customer by product family.
2. Identify all the steps in the value stream for each product family, eliminating whenever possible those steps that do not create value.
3. Make the value-creating steps occur in tight sequence so the product will flow smoothly toward the customer.
4. As flow is introduced, let customers pull value from the next upstream activity.
5. Pursue perfection. As value is specified, value streams are identified, wasted steps are removed, and flow and pull are introduced, begin the process again and continue it until a state of perfection is reached in which perfect value is created with no waste.
(Daniel Jones, James Womack)
Value
Value stream
Flow
Pull
Perfection
12
LEAN modules
JITPeople
involvment
JIDOKABuilt inquality
LEAN thinking, culture
KAIZENWaste elimintaion
Visual mgmt. 5SStandardization
TPMSTABLE OPERATION
LSM
13
Application of Lean Practices
StrategicGoals
Values,Principles
LEAN BehaviourPractices
ProcessesStandards
14
15
MISSION
POLICY
Kurt MedlitschF&C Manager
Jim CallusPlant Manager
Carl Friedrich WayandPurchasing Manager
Peter LendvayHuman Resource Manager
Karl-Heinz PreissLogistics Manager
Péter MajorFacility Manager
Csaba MáthéOperation Manager
András HáryTQ Manager
STRATEGY
OBJECTIVES
QUALITY POLICYQUALITY POLICYQUALITY POLICYQUALITY POLICY
• The Philips Szombathely management commits itself to the continuous improvement of the integralquality of our products, services, processes and the entire organization. We strive to satisfy totally ourstakeholders (to exceed customer expectations, create value for shareholders, provide steady andchallenging workplace for people and act as a responsible member of the community) in order to sustaina long-term profitable business.
ENVIRONMENTAL POLICYENVIRONMENTAL POLICYENVIRONMENTAL POLICYENVIRONMENTAL POLICY
The management and employees of Philips Szombathely take responsibility asglobal corporate citizen for continuous reduction of the actual and potential
pollution of the environment and decrease specific energy consumption. Weregularly registrate all actual and potential pollution of the environment, either theair, the ground or the water. We comply with all applicable laws, regulations, andintegrate the guidelines of environmental protection into all applicable processes.
PHILIPS VALUESPHILIPS VALUESPHILIPS VALUESPHILIPS VALUES
• Develop mutual benificial partnership with customers and suppliers, ensuringinvolvement and participation in defining requirements for joint improvement ofproducts and related services.
• Entrepreneurship - encourage innovative behavior and recognise thecontribution of teams and individuals.
• Create an environment and atmosphere where people like to work at PHILIPSSzombathely and contribute to our joint objectives.
• To be a responsible and supportive member of the local and national communitywe operate in.
• Improve capabilities and manage business effectively in a dynamic businessenvironment in order to achieve profitable business growth.
Szombathely, Oct 2001
The strategy of Philips Szombathely is:The strategy of Philips Szombathely is:The strategy of Philips Szombathely is:The strategy of Philips Szombathely is:1. Become Region Europe manufacturing centre for 17”/19” CRT Monitors and LCD1. Become Region Europe manufacturing centre for 17”/19” CRT Monitors and LCD1. Become Region Europe manufacturing centre for 17”/19” CRT Monitors and LCD1. Become Region Europe manufacturing centre for 17”/19” CRT Monitors and LCD2. Szombathely products become the most competitive for the European market2. Szombathely products become the most competitive for the European market2. Szombathely products become the most competitive for the European market2. Szombathely products become the most competitive for the European market3. Exploit supply chain throughput and leadtime advantages of regional manufacturing3. Exploit supply chain throughput and leadtime advantages of regional manufacturing3. Exploit supply chain throughput and leadtime advantages of regional manufacturing3. Exploit supply chain throughput and leadtime advantages of regional manufacturing4. Develop strong business partnership with branded Europe and OEM Region4. Develop strong business partnership with branded Europe and OEM Region4. Develop strong business partnership with branded Europe and OEM Region4. Develop strong business partnership with branded Europe and OEM Region5. Drive productivity and line rate 5. Drive productivity and line rate 5. Drive productivity and line rate 5. Drive productivity and line rate increase to 3000 and beyond on CRT lines andincrease to 3000 and beyond on CRT lines andincrease to 3000 and beyond on CRT lines andincrease to 3000 and beyond on CRT lines and toward 2500 on LCD line per shift output toward 2500 on LCD line per shift output toward 2500 on LCD line per shift output toward 2500 on LCD line per shift output6. Develop and implement world-class HR management structure6. Develop and implement world-class HR management structure6. Develop and implement world-class HR management structure6. Develop and implement world-class HR management structure7. Develop labour flexibility model to support business needs7. Develop labour flexibility model to support business needs7. Develop labour flexibility model to support business needs7. Develop labour flexibility model to support business needs8. Implement Ariba system and LSDB as well as prepare for implementation of SAP and I28. Implement Ariba system and LSDB as well as prepare for implementation of SAP and I28. Implement Ariba system and LSDB as well as prepare for implementation of SAP and I28. Implement Ariba system and LSDB as well as prepare for implementation of SAP and I29. Implement PBE-BEST program9. Implement PBE-BEST program9. Implement PBE-BEST program9. Implement PBE-BEST program
Financial IFO > 8MEUR Cash Flow > 10.5 MEUR NOC Turns > 20.3 COO/Box-Ex. W&D < 7.6 EUR Inventory Turns > 22.2 Profit Margin > 2.2 % Customer CLISP > 95 % CROT =100 % FCR 17” < 1.8% CROV =100 % FCR 19” < n.a. IFIR < 1000 dppm FCR- FPM < 1.5% Process FOR-17” < 2 % FOR-FPM < 2 % FOR-19” < 4 % Environmental objectives: Recycling Rate > 87% Competence ISO & DOR Compliance =100 % QIT Participation Rate > 50% PBE Score > 500 Training > 2.5 % Order Fulfilment Audit on A level
The mission of Philips Monitors Szombathely is to become world classmanufacturer in Europe.
PHILIPS Szombathely Business Policy Szombathely Business Policy Szombathely Business Policy Szombathely Business Policy
MONITOR 2001MONITOR 2001MONITOR 2001MONITOR 2001
Gábor NémethEngineering Manager
Copy No.:
Példa
Business Policy 2001
16
Philips practices
� PBE – Phililps Business Excellence Award� PBE validation audits (Bronze, Silver, Gold)� TQM Steering Group (Criteria Owners)� Business Improvement Programs (5-6 / year)� Quality Improvement Teams (QIT)� Quality Circles� Dashboard (Balanced Scorecard) � PDCA meetings
17
Hoshin Kanri - Policy Deployment
Vision, Mission
Strategy
Anual goals
Strategic Actions
Scorecard• Result to be achieved next year• Way of implementation•Measurement•Tartget value•Deadline
Impementation
Measure, CheckEvaluation
Gap AnalysisBenchmarking
tény
Present
Future
18
Herend Porcelain Manufactory Ltd.
� Customer Surveys� Continuous education � Own artisans school � International Partners, Close to the customer
Integrated Quality Management System� Problem solving � SPC� Employee ownership program� Employee Satisfaction Survey
Lean implementation program
1.0 Lean Philosophy and Culture
2.0 Lean Strategy and Vision (Future Value Stream)
4.0 Create Basic Stability – 4M
5.0 Transformation process - Gemba Kaizen Actions
3.0 Lean infrastructure (organization)
5.2 ContinuousFlow
5.2 ContinuousFlow
5.4 JIDOKA 0 deffects
5.4 JIDOKA 0 deffects
5.3 Pull System5.3 Pull System
5.1 LayoutOptimization
5.1 LayoutOptimization
19
Lean implementation steps� Gain Top Management commitment � Introduce and train the Lean philosophy and methods� Case for Change� Prepare Lean implementation program� Prepare the organization for Lean implementation (OD program)� Build strong foundation (Create Basic Stability, 5S, standard work,
visual control) � Prepare Current State Map of the Value Streams� Identify improvement points and opportunities (Bottlenecks) � Set up Kaizen System, involve and empower people� Proceed step by step (pilot project, Kaizen workshops) � Follow the 5 Lean principles (while improving the pilot areas)! � Continuously improve the System � Involve the Suppliers
20
Lean Assessment, Value Stream Mapping
LEAN AUDIT category results
3
3
3
3
33
3
3
0,56
2,14
1,94
2,13
1,20
2,702,43
2,70
2,50
3
0,00
1,00
2,00
3,00
4,00Pull system, continuous flow
Production - Effectiveness
Visual Control
Standard work
Disciline, TransparencyPDCA, corrective actions,
improvement
Flexible, motivated workforce
0 deffects, Built in Quality
Management support,conditions
Actual score Goal 21
Value Stream Analysis
1. Activity
2. Activity
3. Activity
CustomerSupplier
Value Addingpart
Non-ValueAdding part
Value adding time
Total time
1. Eliminate
2. Reduce3. Change
Value AddingMuda IMuda II
= 1-10-20% ??
Muda II Muda IVA
22
KAI ZEN
� Continuous improvement� Small frequent improvement by the
involvement of everyone. � Low cost (no investment)� Change of method � Perfection of the existing (standards) ways of
working� Long term process
Change + Better
24
• Defining expectations
• Comparing base
• Operation, process controlling
• Maintaining the achieved results
• Reproduceability
Time
Per
form
ance
„standard wedge“
P D
A C
Role of standards
26
� The Problem is a „Gap”� Deviation between the Ideal (Desired) and
Actual situation
� Quantify the Gap
A
I
Problem
27
Continuous improvement
6. Standardizesolution
7. Reflect on process and next problem
Analyze thesituatution
Define the problem
2. Collect andanalyze data
3. Analyzecauses
Implement solution
5. Evaluateresults
Senseproblem
1. Select theme
4. Planand…
Level ofExperience
Level ofThought
data 1data 2data 3
Reactive Improvement
Proactive Improvement
Process Control
(Shoji Shiba VW modell)
28
Recognition of Kaizen opportunities in the work environment
Muda
Waste
Muri
OverburdenStrain
Illogical
Mura
Irregularity Variability
29
Root Cause Analysis
5 Why - method
Cross Functional Problems
Functional Problems
Problem Root Cause AnalysisCountermeasures
31
Elements of effective Kaizen mechanism
Goa
ls, e
xpec
tatio
ns, S
tand
ards
Identify theproblem
Findingsolution
Problemanalysis
ImplementationPDCA
EvaluatingThe results
Problem centric„good sheperd” approach
Data collectionProblem catalogueFailure cardsBrain storming
Value Stream MappingKaizen workshop, 7 QC tools5 Why? 7 MUDA, 3MU, 4M..Structured problem solving
Sta
ndar
ds,p
roce
sses
, pra
ctic
e
Lean, Kaizen knowledge, methods, coordination
Empowermentdecisions, resources
Lean KPIsSPS AuditLayered Audit
Kaizen diaryMonitoring
Accountability, Recognition
32
5S implementation in Assembly area
Blocked material
Finnished goodsInventory
WIP inventory
Cleaning devices
WIP inventory
Blocked material
Inspection area
Finnished goods
36
Kaizen Workshop
idıÍV 2F
EgyD D
Egy
enge
t
ívez
For
rasz
t
Kié
get
Elő
nyom
at
Lera
k
idıÍV 2F
Elő
EgyD
Egy
enge
t
& E
lőké
szít
ívez
&m
ozg
For
rasz
t
Elő
nyom
at
& M
ozga
t
Before Kaizen After Kaizen
38
Kaizen workshop
Before KAIZEN After KAIZEN
Result: 50% area reduction, one piece flow, 60% inventory reduction, FIFO
39
40
Tevékenység Probléma Megtett akciók Eredmények
Kaizen elıtt Kaizen után
Dátum
ST 70Torziós rúd előkészítése
Rossz helyen van az anyag, az operátor nem éri el.
Csúszdás anyagbetöltés kialakítása, tároló áthelyezése
Kevesebbet kell mozogni az operátornak, kívülről FIFO rendszerben tölthető a sor
41
Operation Problem Actions Results
Before Kaizen After Kaizen
Date: 17.11.2010.
Safety issuesProducts are Not stored properly
Fast moving products are stored on „A” level on 1 palette
Storage system
Easy picking, lower risk of injury
42
Operation Problem Actions Results
Before Kaizen After Kaizen
Date: 05.10.2010.
Stair profile making
New „Kanban” trolleys have been introduced, min max levels indicated (visual control)
Reduced transportation, Moving time is 6 sec, 5 m
Stair profiles stored on pallets, moved with forklift (1,5 min moving time, 38 m)
maximum
minimum
Stair profil supermarket, pull system
OEE based improvements
Improvement Steps
Identify Waste
Quantify Waste
ObjectiveIncrease Machine availability by reducing machine waste through
collective problem solving.
ObjectiveIncrease Machine availability by reducing machine waste through
collective problem solving.
Identify gap betweeen actual and optimal operating time
Identify major source of waste on areas of:
Avilability, Performance and Quality
Identify Causes of
waste
Determine Countemeasur
esImplement Monitor
Results
43
Pareto Analysis –Frequency of failure types
Pareto for failure frequency
14
9
76
4
2 2 2 2 2 2 2
0
2
4
6
8
10
12
14
16
Tool exc
hange
rSeiz
ed do
or
Y axis
exch
ange
Pistol
(air)
exc
hang
e
Surfa
ce fa
ilure
on b
olste
r
Rotor e
xcha
nge
PLC fa
ilure
Hidrauli
c chu
ckOil l
eakin
gNC co
ntrol
Seized
chuc
kLa
mp
Failure type
Fre
quen
cy
44
45
Area Problem Suggestion Expcected result
Before Kaizen After Kaizen
Date: 11.18.2010. Turbomill
Tool Exchanger
Have spare part on hand at the machine to enable quick fixing
Failure, breakdown
Reduced down time
46
Operation Problem Suggestion Expected Result
Before Kaizen After Kaizen
Date: 11.18.2010. Turbomill
Machine Body Apply protection plate, regular cleaning, Quick fastener for faster cleaning
Seized Door, Waiting for Maintenance to clean
Reduced Down Time, Operator can fix the problem
Steps of SMED
1. Observe the current c/o process.
2. List all operations.
3. Measure the time for each operation.
4. Value-added analysis of activities (VA, NVA)
5. Eliminate unnecessary activities
6. Separate internal and external times
7. Prepare a current SMED diagram.
8. Transform internal activities to external time
9. Reduce the internal times
10. Reduce the external times
11. Prepare the improved SMED diagram.
12. Try out the new process and evaluate the proces s
13. Standardize the new process, prepare a checklis ttim
e
SMED SMED SMED SMED diagramdiagramdiagramdiagramExternal External External External ----InternalInternalInternalInternal
PresentPresentPresentPresent ImprovedImprovedImprovedImproved
Reduced timeReduced timeReduced timeReduced time47
Standard Operation Sheet
MINŐSÉG ELL.QUALITY CHECK
BIZTONSÁGSAFETY
ERGONÓMIAERGO
KRITIKUSCRITICAL
SORONLÉVŐ KÉSZLETIN PROCESS STOCK
MENNYISÉGNO.
OPERATOR
KÉZIHANDWORK
GÉPIMACHINE
MOZGÁSWALKING
sec 23,41 0,47sec
FT/ 2-os munkahely GYAKORISÁGFREQ
IDŐSZÜKSÉGTIME
Készítette Prepared by: Gyártómérnök
Csoportvezet ő T/L Műszakvezet ő S/L
Minőségbiztosítás
Munkabiztonság
ÜTEMIDŐTAKT TIME
23,88TELJES CIKLUSIDŐTOTAL CYCLE TIME
VÁRAKOZÁS A CIKLUSIDŐN BELÜLWAIT w/in CYCLE TIME
23,88KÉZI+MOZGÁSI IDŐKHANDWORK + WALK TIME
ÖSSZESÍTÉSSUB TOTALS
PPE lap szerint
BIZTONSÁGI KÖVETELMÉNYEK SAFETY REQUIREMENTS
Aláírások Signatures
AKTUÁLIS ÜTEMIDŐACTUAL TAKT TIME
JÓVÁHAGYÁS CONTROL BLOCK FELÜLVIZSG. DÁT. REV. DATE: 2010. jan.. 22.
CIKLUSONKÉNTI ALKATRÉSZEK SZÁMAPARTS PER CYCLE
12,50
6 Éltartam visszaírása.
7
1,00
4Szerszámcsere utáni mérés8
0,07
0,07
4
5 A daru kezelése szerszámcsere után.
3
Szerszámcsere.
EGYSÉGES MŰVELETI LAP - S TANDARD OPERATION SHEET
MUNKAELEM IDEJEELEMENT TIME
A gép munkaterének tisztítása.
SO
RS
Z.
#
0,03
2
1
Motor / Főtengely
0,03
4,00
ESETI FELADATOK INCIDENTAL WORK
0,03
0,07
0,20
MUNKAFOLYAMAT ÁBRAWORK FLOW DIAGRAM
MŰVELET NEVE, SZÁMAOPERATION NAME / #
Szerszámcsere előkészítése a kezelőpulton.
Szerszámcsere utáni gépindítás.
Szerszámcsere Heller 2/1 Szerszámcsere
0,10
MUNKAELEMEK JOB ELEMENTS
TERÜLET/CSOPORT:GROUP/TEAM
FOLYAMAT NEVE:Minden TipusPROCESS NAME
4
1
2
3
S16
0B
73S
276
S16
3
Lang Attila
1,00
0,01
A daru előkészítése a szerszámcseréhez.
1,00
MŰ-SZAK
Shift
MEL HELYE JES LOCATION:
S16
1S
159
S16
2
AC
1
5
6
4
7
Darú
TPM
Ken
ésH
idra
ulik
a
Kezelôpult
2
3
4
8
48
49
Standard Work Combination SheetMunka-kombinációs lap Termékazonosító Projektteam: Db/műszak kézi művelet
Kaizen terület /* téma Terület Operátor gépi mű
Heller 2/1 Terméknév Taktidő:
mozgás
No. Kézi Gépi Mozgás
1 60
2 90
3 30
4 20
5 140
6 80
7 50
8 20
9 10
10 55
11 15
12 70
13 75
14 55
15 75
16 25
17 10
18 40
19 60
20 10
21 70
22 30
23 35
24 15
25 10 10
26 90
27 15
28 15
Összesen 575 90 10 30 60 90 120 150 180 210 240 270 300 330 360 390 420 450 480 510 540 570 600 630 660 690 720 750 780 810 840 870 900 930 960 990 1020 1050 1080 1110 1140 1170 1200 1230 1260 1290 1320 1350 1380 1410 1440
Függeszték daru eltávolítása a gépb ől
Külső mérőeszközhöz megy
etalont ellen őriz
Etalon ellen őrzése bent
Első darab ellen őrzés bent
Darabot ellen őriz
Darabot visszavisz
Ajtó zárás vezérl ő nyomkodás
Külső vezérlő indítás
Tárcsát kocsira emel
Függeszték átrakása a másik tárcsára
Kapcsolódó felületek tisztítása
Új tárcsa beemelése a gépbe
Első darabra vár
Első darabot mér
Elment géprongyért
Munkateret tisztít
Új tárcsa rögzítése
Takarítás
Daru ellen őrzés napló kitöltés
Kocsit betol
Darut leereszt függesztéket felrak
Sapka
e
Függeszték felrakása a tárcsára
Tárcsa rögzítést old
Művelet
Gép kiáll végpontra
Gépet szerszámcsere helyzetbe hoz
Vezérlőt nyomkod
(SEC)
Before 2010.04.15.
After 2010.04.22.
25 min
11 min
5050
Task Problem Action Result
Before Kaizen After Kaizen
Date: 16 June 2012
Tool Change over
Place only for two tools, used and new marked with colors, smaller trolley
Difficult to store and handle
tools, ease to mix up
Less movement, no
mix up
Kaizen Workshop success factors � Proper Kaizen action preparation (data collection tools) � The definition of Kaizen workshop area (manageable, measurable and
visible)� Definition of Kaizen themes (relevant, motivating)� Definition of Kaizen goals quantifiable available) � Selection of team members (complementary to each other and
knowing the knowledge and methodology) � Go to the gemba, identification of development opportunities (Gemba
Kaizen, 3MU, 4M, PQCDSM) � Keep deadlines of actions and schedule (Kaizen log)� Management support, ensuring the conditions and resources
(maintenance, equipment, overtime, the availability of space) � Action (fast, efficient, PDCA)� Monitoring (the monitoring results, a clear assignment of
responsibilities)� Communication and education
51
Integrating Kaizen into daily work
� Plan kaizen activities of into daily work and give time to do it
� Make the Kaizen become part of everyday work
� Ensure implementation of the Kaizen necessary powers and resources
� Continually educate the workers and accompanied back to the Kaizen results
52
Preconditions of successful Kaizen activity
• Top management support
• Kaizen thinking, culture
• Chance to change things
• Available resources
• Interested and motivated people
• Feedback
53
54
Maintaining momentum
• Commited participation of the management „Actions speak louder, then words”
• Employee involvement
• Keep high level of motivation. Gain the people. Answering: „What is in it for me?” question
• Establish and continuously improve standards
• Education Kaizen
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