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Dr. David S. Cochran Jason Barnes Joe Sepkovich January 2829, 2016 EVALUATING AND SUSTAINING LEAN

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Page 1: EVALUATING AND SUSTAINING LEAN - Indiana University€¦ · EVALUATING AND SUSTAINING LEAN ... FR2 – Produce customer‐consumed quantity every time interval –from JIT ... Training

Dr. David S. CochranJason BarnesJoe Sepkovich

January 28‐29, 2016

EVALUATING AND SUSTAINING LEAN

Page 2: EVALUATING AND SUSTAINING LEAN - Indiana University€¦ · EVALUATING AND SUSTAINING LEAN ... FR2 – Produce customer‐consumed quantity every time interval –from JIT ... Training

© 2016 David S. Cochran, all rights reserved

TODAY’S AGENDA

• Welcome from the NE Indiana Advanced Manufacturing Lean Network

• Introductions:

• Name, company, position, anddescribe how you evaluate and sustain Lean

• Evaluation with the Manufacturing SystemDesign Decomposition (MSDD) assessment tool

• Collective System Design (CSD) to Design and Sustain Lean Enterprise and Manufacturing Systems

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© 2016 David S. Cochran, all rights reserved

AreJITandJidokaRequirementsorSolutions?

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© 2016 David S. Cochran, all rights reserved

INTRODUCTION OF THE MANUFACTURING SYSTEM DESIGN DECOMPOSITION (MSDD) EVALUATION

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© 2016 David S. Cochran, all rights reserved

LEAN IS THE RESULT OF ACHIEVING ALL OF THE REQUIREMENTS IN THE MSDD…  

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MSDD SURVEY IS THE EVALUATION TOOL

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RESULTS INDICATE AREAS THAT NEED IMPROVEMENT

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© 2016 David S. Cochran, all rights reserved

Weinviteyoutonowtakethesurvey…

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© 2016 David S. Cochran, all rights reserved

WhoaretheSystemDesigners?

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Page 13: EVALUATING AND SUSTAINING LEAN - Indiana University€¦ · EVALUATING AND SUSTAINING LEAN ... FR2 – Produce customer‐consumed quantity every time interval –from JIT ... Training
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© 2016 David S. Cochran, all rights reserved

FR1 – Provide a safe, healthy work environment – The Foundation

FR2 – Produce customer‐consumed quantity every time interval – from JIT

FR3 – Produce customer‐consumed mix every time interval – from JIT

FR4 – Do not advance a defect to the next customer operation – from Jidokathe best case is to not make a defect in the first place…

FR5 – Achieve FR1 through FR4 in spite of variation – Robust Design

FR6 – When a problem occurs accomplishing FR1 through FR4, rapidly identify the problem condition and resolve it in a pre‐defined way – Controllable Design

FR7 – Only Once FR1 through FR6 are achieved (the system is stable), Produce products with least time in system – Reduce cost further by reducing Standard WIP Inventory and additional Waste(s)

FUNCTIONAL REQUIREMENTS (FRs) OF MFG. SYSTEM DESIGN … TESTED WITH LEGOS

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COLLECTIVE SYSTEM DESIGN STEPS1. Determine System Boundary and Value Streams within a System Boundary 2. A New Tone… It’s the Work Method & System, Not the Person3. Identify Constituents/Customers (internal and external) Needs4. Translate Needs to Functional Requirements (FRs: what we want to achieve) for each 

Value Stream 5. Map Physical Solutions (PSs: how we propose to achieve) to FRs, determine PS 

Implementation Sequence and Standard Work Procedure  Content, Sequence, Time of all work

6. Plan, Do, Check, Act (PDCA): Learning loop to Improve the System Design Decomposition (Map) and Standard Work

7. Establish Organization Structure (test with physical (lego) models) using Collective System Design Map… that Knows How to Identify and Resolve Problems… called “Green Sheet Standard Work” 

8. Agree on Outcome Measures MFR and Implementation Measures on Doing Work MPS 

9. Use cost of not achieving System FRs to cost‐justify investments in resources to achieve deficient FRs

10. Sustainability – consequence of practicing Collective System Design (CSD)

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THE FLAME MODEL OF COLLECTIVE SYSTEM DESIGN (CSD) BEGINS WITH THE TONE OF PEOPLE

Structure

Tone/Mindset

Thinking

Standard Work

4 Layers ofa CSD

Precedenceof DesignRelationships

We see the resultsfrom our Thinking

We don’t seeour Thinking

CSD Flame Model

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© 2016 David S. Cochran, all rights reserved

WHY CSD?

• Provides a methodical way to communicate design relationships from high‐level to lowest‐level of implementation

• The Design decomposition (or mapping) process results in understanding path dependency

• Gets everyone one the same page about what the system must accomplish

• Once the System Design Map is built, we use it to justify investment to achieve the deficient FRs.

FR: Functional Requirement(s): What a Value Stream must achieve to satisfy the customer(s) need

PS: Physical Solution: Proposed Solution (Hypothesis) to Achieve FR

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© 2016 David S. Cochran, all rights reserved

• CSD creates a logic model / mental model of FR-PS relationships

Quality Predictable Output

IndirectLabor

DirectLabor

DelayReduction

Identifying and Resolving Problems

I

II

IV

III

V

VI

DP-R1Procedure for detection & response to production disruptions

FR-R1Respond rapidly to production disruptions

FR-R12Communicate problems to the right people

FR-R11Rapidly recognize production disruptions

DP-R12Process for feedback of operation’s state

DP-R11Subsystem configuration to enable operator’s detection of disruptions

FR-R13Solve problems immediately

DP-R13Standard method to identify and eliminate root cause

FR-R112Identifydisruptions where they occur

DP-R112Simplified material flow paths

FR-R122Minimize delay in contacting correct support resources

FR-R121Identify correct support resources

DP-R122Rapid support contact procedure

DP-R121Specified support resources for each failure mode

FR-R123Minimize time for support resource to understand disruption

DP-R123System that conveys what the disruption is

FR-R113Identify what the disruption is

DP-R113Context sensitive feedback

FR-Q1Operate processes within control limits

DP-Q1Elimination of assignable causes of variation

FR-Q2Center process mean on the target

DP-Q2Process parameter adjustment

FR-Q3Reduce variation in process output

DP-Q3Reduction of process noise

FR-Q11Eliminate machine assignable causes

DP-Q11Failure mode and effects analysis

FR-Q12Eliminate operator assignable causes

DP-Q12Stable output from operators

FR-Q122Ensure that operator consistently performs tasks correctly

DP-Q122Standard work methods

FR-Q121Ensure that operator has knowledge of required tasks

DP-Q121Training program

FR-Q13Eliminate method assignable causes

DP-Q13Process plan design

FR-Q14Eliminate material assignable causes

DP-Q14Supplier quality program

FR-Q123Ensure that operator human errors do not translate to defects

DP-Q123Mistake proof operations (Poka-Yoke)

DP-P1Predictable production resources (people, equipment, info)

FR-P1Minimize production disruptions

FR-P12Ensure predictable equipment output

FR-P11Ensure availability of relevant production information

FR-P14Ensure material availability

FR-P13Ensure predictable worker output

DP-P12Maintenance of equipment reliability

DP-P11Capable and reliable information system

DP-P14Standard material replenishment system

DP-P13Motivated work-force performing standard work

FR-P133Do not interrupt production for worker allowances

FR-P131Reduce variability of task completion time

DP-P133Mutual relief system with cross-trained workers

DP-P131Standard work methods to provide repeatable processing time

FR-P132Ensure availability of workers

DP-P132Perfect attendance program

FR-D2Eliminate wasted motion of operators

FR-D1Eliminate operators’ waiting on machines

DP-D2Design of workstations / work-loops to facilitate operator tasks

DP-D1Human-Machine separation

FR-I1Improve effectiveness of production managers

DP-I1Self directed work teams (horizontal organization)

FR-I2Eliminate information disruptions

DP-I2Seamless information flow (visual factory)

FR-D11Reduce time operators spend on non-value added tasks at each station

DP-D11Machines & stations designed to run autonomously

FR-D12Enable worker to operate more than one machine / station

DP-D12Workers trained to operate multiple stations

FR-D21Minimize wasted motion of operators between stations

DP-D21Machines / stations configured to reduce walking distance

FR-D22Minimize wasted motion in operators’ work preparation

DP-D22Standard tools / equipment located at each station(5S)

FR-D23Minimize wasted motion in operators’ work tasks

DP-D23Ergonomic interface between the worker, machine and fixture

DP- T1Reduction of transfer batch size (single-piece flow)

DP-T5Subsystem design to avoid production interruptions

FR-T53Ensure that support resources (people/automation) don’t interfere with one another

FR-T51Ensure that support resources don’t interfere with production resources

FR-T52Ensure that production resources (people/automation) don’t interfere with one another

FR-T1Reduce lot delay

FR-T5Reduce systematic operational delays

FR-T3Reduce run size delay

DP-T3Production of the desired mix and quantity during each demand interval

FR-T31Provide knowledge of demanded product mix (part types and quantities)

FR-T32Produce in sufficiently small run sizes

DP-T31Informationflow from downstream customer

DP-T32Design quick changeover for material handling and equipment

DP-T53Ensure coordination and separation of support work patterns

DP-T51Subsystems and equipment configured to separate support and production access req’ts

DP-T52Ensure coordination and separation of production work patterns

DP-T2Production designed for the takt time

FR-T2Reduce process delay(caused by ra > rs)

FR-T23Ensure that part arrival rate is equal to service rate (ra=rs)

FR-T22Ensure that production cycle time equals takt time

FR-T21Define takt time(s)

DP-T23Arrival of parts at downstream operations according to pitch

DP-T22Subsystem enabled to meet the desired takt time (design and operation)

DP-T21Definition or grouping of customers to achieve takt times within an ideal range

DP-T4Material flow oriented layout design

FR-T4Reduce transportation delay

DP-P142Parts moved to downstream operations according to pitch

FR-P142Ensure proper timing of part arrivals

DP-P141Standard work in process between sub-systems

FR-P141Ensure that parts are available to the material handlers

FR-1Maximize long-termreturn on Investment

DP-11Production to maximize customer satisfaction

FR113Meet customer expected lead time

FR-112Deliver products on time

DP-1Manufacturingsystem design

FR-11Maximizesalesrevenue

DP-13Investment based on a long term strategy

FR-13Minimizeinvestment over production system lifecycle

DP-12Elimination of non-value adding sources of cost

FR-12Minimize manufacturing costs

FR-111Manufacture products to target design specifications

DP-111Production processes with minimal variation from the target

DP-112Throughput time variation reduction

DP-122Reduction of indirect labor tasks

DP-121Elimination of non-value adding manual tasks

FR-122Reduce waste in indirect labor

FR-121Reduce waste in direct labor

DP-123Reduction of consumed floor space

FR-123Minimize facilities cost

DP113Mean throughput time reduction

FR-T221Ensure that automatic cycle time minimum takt time

FR-T222Ensure that manual cycle time takt time

DP-T223Stagger production of parts with different cycle times

FR-T223Ensure level cycle time mix

DP- T221Design of appropriate automatic work content at each station

DP- T222Design of appropriate operator work content/loops

FR-D3Eliminate operators’ waiting on other operators

DP-D3Balanced work-loops

FR-Q31Reduce noise in process inputs

DP-Q31Conversion of common causes into assignable causes

FR-Q32Reduce impact of input noise on process output

DP-Q32Robust process design

FR-R111Identify disruptions when they occur

DP-R111Increased operator sampling rate of equipment status

FR-P121Ensure that equipment is easily serviceable

DP-P121Machines designed for serviceability

FR-P122Service equipment regularly

DP-P122Regular preventative maintenance program

COLLECTIVE SYSTEM DESIGN (CSD) CAN EXTEND MSDD

Key Requirements

Quality On‐time & Rapid Delivery Resource Allocation

Problemsolving

Predict‐able

output

Delay reduction

Operation Costs

In‐vest‐ment

Quality

t

p t Xt

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© 2016 David S. Cochran, all rights reserved

DESIGN LANGUAGE EXPRESSES THINKING

MFRFR

PSStandard

Work

A PS is a hypothesisto achieve an FR

CustomerNeeds

1st Stepof Design

MPS

3rd Stepof Design

(as needed)

2nd Stepof Design

4th Stepof Design

(as needed)

Collective System Design (CSD) expresses the Thinking with FRs and PSs:

Functional Requirement (FR)

Physical Solution (PS)– Measure on an FR is MFR

–Measure on a PS is MPSNot every FR or PS requires a measure.

Design

ImplementationMeasure 

“Verification”

Outcome Measure

“Validation”

Standard work is a record of problems solved to date

Structure

Tone/Mindset

Thinking

Standard Work

CSD Flame Model

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COLLECTIVE SYSTEM DESIGN DECOMPOSITION / MAP

Legend: FR – Functional RequirementPS – Physical SolutionMFR – Performance Measure on FRMPS – Performance Measure on PSKPP – Key Performance Parametermain dependencysecondary dependency

Functional Requirement

Physical Solution

Performance Measure(on the FR)

Collective System Design Map:The Implementation Sequence of

PSs is critical –

Performance Measure(on the PS)

FR

MFR

PS

MPS

FR2

PS2

MPS1

FR3

MFR3

PS3

FR1

MFR1

PS1

MPS1

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© 2016 David S. Cochran, all rights reserved 22

COLLECTIVE SYSTEM DESIGN STEPS1. Determine System Boundary and Value Streams within a System Boundary 2. A New Tone… It’s the Work Method & System, Not the Person3. Identify Constituents/Customers (internal and external) Needs4. Translate Needs to Functional Requirements (FRs: what we want to achieve) for each 

Value Stream 5. Map Physical Solutions (PSs: how we propose to achieve) to FRs, determine PS 

Implementation Sequence and Standard Work Procedure  Content, Sequence, Time of all work

6. Plan, Do, Check, Act (PDCA): Learning loop to Improve the System Design Decomposition (Map) and Standard Work

7. Establish Organization Structure (test with physical (lego) models) using Collective System Design Map… that Knows How to Identify and Resolve Problems… called “Green Sheet Standard Work” 

8. Agree on Outcome Measures MFR and Implementation Measures on Doing Work MPS 

9. Use cost of not achieving System FRs to cost‐justify investments in resources to achieve deficient FRs

10. Sustainability – consequence of practicing Collective System Design (CSD)

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PDCA LEARNING LOOP TO IMPROVE CSD MAP & STANDARD WORK 

StandardWork

A PS is a hypothesis to achieve an FR

Plan

CheckStudy results using

MFR and MPS

ActWhat needsto change?

CSD MapFR1 FR2 FR3

PS1 PS2 PS3

DoImplement the Standard Work

Updated MFR / MPS

Collective System Design (CSD)implements a Learning Loop

through Standard Work23

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COLLECTIVE SYSTEM DESIGN STEPS1. Determine System Boundary and Value Streams within a System Boundary 2. A New Tone… It’s the Work Method & System, Not the Person3. Identify Constituents/Customers (internal and external) Needs4. Translate Needs to Functional Requirements (FRs: what we want to achieve) for each 

Value Stream 5. Map Physical Solutions (PSs: how we propose to achieve) to FRs, determine PS 

Implementation Sequence and Standard Work Procedure  Content, Sequence, Time of all work

6. Plan, Do, Check, Act (PDCA): Learning loop to Improve the System Design Decomposition (Map) and Standard Work

7. Establish Organization Structure (test with physical (lego) models) using Collective System Design Map… that Knows How to Identify and Resolve Problems… called “Green Sheet Standard Work” 

8. Agree on Outcome Measures MFR and Implementation Measures on Doing Work MPS 

9. Use cost of not achieving System FRs to cost‐justify investments in resources to achieve deficient FRs

10. Sustainability – consequence of practicing Collective System Design (CSD)

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Limited resources typically cause FRs to be taken off the table. CSD mapping enables assessment of the consequences that

would result if enterprise FRs are eliminated. 25% of the direct labor build hours 

were waste as a result of not achieving these 6 FRs on the program

System Design Certification teaches leaders how to achieve life cycle cost and quality targets

FR ID FR Description Direct Labor Hrs

Indirect Labor Hrs

Total Labor Hrs

111 Product Design Process 1,516 8,781 10,297

Q1 Mfg Products To Spec 6,384 5,971 12,355

P11 Production info Available 3,316 NA 3,316

P12 Tool Availability 1,471 3,866 5,337

P132 Worker Availability 630 NA 630

P15 Part Availability 5,145 6.409 11,554

TOTAL 18,462 25,027 43,489

USE COST OF NOT ACHIEVING FRs TO JUSTIFY INVESTMENT IN RESOURCES

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PEOPLE WITH DIFFERENT VIEWS OF THE SYSTEM…  WHAT IS THE IMPACT ON DECISION MAKING?

Thursday, January 28Participants

Friday, January 29Participants

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© 2016 David S. Cochran, all rights reserved

CONTACT US

David S. Cochran, Ph.D.Associate Professor and DirectorIPFW Center of Excellence in Systems Engineering

Office (260) 481‐0341Email [email protected]

Jason BarnesAssociate DirectorIPFW Center of Excellence in Systems Engineering

Office (260) 481‐6370Email [email protected]

Joe Sepkovich Senior Research AssociateIPFW Center of Excellence In System Engineering

Office (260) 445‐8798Email [email protected]

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