finalreport (autosaved)

8/11/2019 finalreport (Autosaved)

1/23

1 | P a g e

INDE 7397

Improving Productivity at Hardy Machines with Lean

Report

by

Kartheek Vadlapatla1278272

M.S., Industrial Engineering

University of Houston - Systems


2/23

2 | P a g e

Acknowledgement

I wish to thank President Ankur Goel of Hardy Machine and Design and Dr. SharukhIrani for their tremendous contributions and support towards the completion of the

project. I am also grateful to my project supervisor Dr. Suresh Khator who without

his help and guidance this project would not have been completed. I also show my

gratitude to my friends who contributed in one way or the other in the course of theproject.


3/23

3 | P a g e

Table of Contents

Title Page No:

Acknowledgement 2

Table of ContentsList of Tables

List of Figures

Introduction 4

Problem Statement

Goal and Objective 6

1. Proposal 15S

1.1Data collected at Hardy

1.2

Need for 5S

1.3Steps in 5S implementation

2. Proposal 2S.M.E.D

2.1Data collected at Hardy

2.2

Need for S.M.E.D

2.3Steps in implementation of S.M.E.D

3. Conclusion

References


4/23

4 | P a g e

LIST OF TABLES

Table 1- Time studies performed during the CNC Lathe setup

Table 2 - Time studies are performed during the Milling machine setup

Table 3 - Internal and External activities during CNC Lathe machine 406 setup

Table 4 - Internal and External activities during CNC Lathe machine 408 setup


5/23

5 | P a g e

LIST OF FIGURES

Figure 1Time consumed to perform various operations during CNC Lathe setup

Figure 2 - Time consumed to perform various operations during milling setup

Figure 3 - Percentage of Value added and Non Value Added Work

Figure 3Rack used for placing Milling Tools

Figure 4Empty Micrometer Box

Figure 5Milling tool Holder without screw

Figure 7Grinding Dust

Figure 8Machine is down for 3 Hours due to hydraulic pump failure caused by Oil Leak

Figure 9 - Oil spilling

Figure 10 - Scrap material on shop floor can cause trip hazard

Figure 11 - Fork Lift blocking the path of crane used for moving job pieces

Figure 12job Pieces damaged by the fork lift because the where not placed in the proper

location on the Shop floor

Figure 13 - Red Tag

Figure 14 - 5S Audit for Hardy Machine and Design

Figure 15

Percentage of internal and external activities during Machine 406 Setup

Figure 16Percentage of internal and external activities during Machine 406 Setup


6/23

6 | P a g e

Introduction

Hardy Machine & Design, Inc. is a modern job shop specialized in manufacturingcomponents for Oil and Gas, Aerospace and Health Industry. The company has over

25 years of experience in its field and this experience is combined with current

working methods and techniques. The company has reached a leading position in

Precision Machining, Fabrication and Welding. The companys principles are toinvest into high class machines and the newest machining methods and to keep the

working environment in an excellent shape.

Hardy is a Make to Order (MTO) Job shop which manufactures a wide variety of

products in low volumes. In a job shop environment the demand for customized

products vary from day to day and Customers expectations are unpredictable. As aresult of customization, manufacturing environments gets complicated. Added to

this, customers also expect the product to be delivered only a short period of timeafter placing their orders. This situation creates competition among Hardy and their

competitors to manufacture and deliver products as fast as possible whileemphasizing the importance of minimizing lead times.

Problem Statement

Major problems at Hardy Machine and Design are their longer setup times and

inventory/Tooling management. Firstly, longer lead times are causing customerdissatisfactory. Secondly, regarding the Tooling management, Hardy loosing

machine spindle time due lack of point of use of tools and spending large amount ofmoney in purchasing misplaced and lost Tools.

Goal and Objective

The purpose of this project is to identify the root cause for Non value added activities

that increases the setup time and inventory, and to propose LEAN methodologies toincrease the productivity without sacrificing Quality


7/23

7 | P a g e

1.Proposal 1 - 5S

The 5S-operation model is one part of the Lean model. It is just one of the manytools which the Lean-ideology includes.5S was originally developed by JIT expert

Hiroyuki Hirano. The 5S frame work is an extension of Hiranos earlier work on

Just in Time production Systems.5S represents a simple housekeeping approach to

improve work environment. In general, 5S approach include the control over thework flow rather than workers behavior. It is relatively inexpensive to implement.

It makes job safer and easier. It encourages preventive approach that preventsproblems before they occur. It provides a practical approach for dealing with real

problems, faced by the workers. 5S consists of five (5) different phases. The names

of the phases come from Japanese and all of them begin with the letter s. That is

where the name 5S stems from. The phases are:

- Seiri = Sort- Seiton = Stabilize/Set in order

- Seiso = Shine/Sweep

- Seiketsu = Standardize

- Shitsuke = Sustain.

The two most important elements are Sort and Set in Order. The success of

improvement activities depends on them. The 5S system sounds so simple but it onimportant lean methodology, without implementing 5S other Lean concepts cannot

be implemented [1]. Moreover, Cleanliness and order characterize significant issuesboth for customers and potential labor force. The starting point is that profitable and

high-quality tasks can be conducted only in a clean environment. The basic idea is

to increase productivity, to improve the level of quality and to raise work ethic.

These factors are reached when the working environment is clean and in good order.5S is a practical tool for maintaining these. It helps to find and eliminate problems

in time. The 5S-model is special because it can be applied in to an office as well asin the production of a company. Systematic and disciplined operations are developed

with the 5S-model.


8/23

8 | P a g e

1.1 Data Collected at Hardy

Table 1- Time studies performed during the CNC Lathe setup


9/23

9 | P a g e

Figure 6Time consumed to perform various operations during CNC Lathe setup

Setup31%

Search for Supervisor

3%Discussion with

Supervisor

1%Search for Tools

7%Search for Bolt

6%

Search for Handle

17%

Operator is out of office

35%

Setup Search for Supervisor Discussion with Supervisor

Search for Tools Search for Bolt Search for Handle

Operator is out of office

Work Time

31%

Non value added

Time

69%

Work Time Non value added Time


10/23

10 | P a g e

Table 2 - Time studies are performed during the Milling machine setup

Figure 7 - Time consumed to perform various operations during milling setup

0

5

10

15

20

25

30

DurationSetup Search for Holder Search for Drill

Fixing Drill and Holder Search for two collets Fixing collet to Drill Holder

Search for second tool Holder Fixing Tool holder and Tool


11/23

11 | P a g e

Figure 8Percentage of Value added and Non Value Added Work

Figure 9Rack used for placing Milling Tools

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%100%

Value added Work Non Value Added work

VA vs. NVA Work


12/23

12 | P a g e

Figure 10Empty Micrometer Box Figure 11Milling tool Holder without

screw

Figure 8Machine is down for 3 Hours

due to hydraulic pump failure caused by

Oil Leak

Figure 9 - Oil spilling Figure 10 - Scrap material on shop

floor can cause trip hazard

Figure 7Grinding Dust


13/23

13 | P a g e

1.2 Need for 5S:

During interaction with Operators and Management, and after performing Timestudies for Setup Operation, we had noticed that time for searching and picking up

tools, equipment and other materials was significantly too long. Added to this rework

due improper material Handling Techniques is also high. Useless time goes by and

it harms the fluency of work. Hence by implementing 5S Philosophy, theproductivity and the quality can be increased, work in-processes and lead-times canbe reduced, better working circumstances can be created, searching times and costs

can be decreased, Moreover, it also helps in rising company image.

In fig-1, the activities marked yellow, performed by the Lathe operator can beeliminated by implementing 5S.This activities add up to 30% of setup time.

Similarly, in fig-2, the non-value added time that adds up to 41% can be eliminated

by 5S. It is found that the milling operators needs 10-15 mins to find the tools placed

the rack (Fig4) and some of the tools are lost or misplaced due lack of dedicatedstorage place(Fig5,6). This can be eliminated by implementing First S and Second

S (sort and set in order) in 5S Philosophy. Grinding dust (Fig -7) can lead to healthhazard and Oil spills (Fig 9) on shop floor can lead to slipping hazard. This can

eliminated by implementing shine.

Figure 11 - Fork Lift blocking the path of

crane used for moving job pieces

Figure 12 job Pieces damaged by the fork lift

because the where not placed in the proper

location on the Shop floor


14/23

14 | P a g e

Added to this, other benefits of implementing 5S are:

To gain control on equipment, material & inventory placement and position

To eliminate the waste that result from uncontrolled processes.

To ensure that improvements are sustained

To Standardize critical processes such as Tool storage ,Machine clean up andMachine maintenance

To improve consistency of shop supervision

1.3 Steps in 5S implementation:

Phase 1 - Sort

The first phase is called Sort. Main point in this first phase is simply to sort

everything. Every tool, object and instrument is looked through and every one ofthose will be recognized and the demands of those are evaluated. This phase also

includes a task where criterions are created. Removable products will be sorted and

after that, disposed of. Also useful products will be sorted and new places are createdafter sorting.

Mostly used method in sorting-phase is Red-tag program. The removable or

somewhere else storable products are marked with a red tag. That tag tells, for

example, as shown in Fig 1, the name of the inspector, date, demand, reason of the

tag, storage place and disposition date. Jigs, molds, junk and work-in process are

often accumulated all over the stations and the purpose is to get rid of all these. First,all the tagged products are moved into the red tag area and after that, eitherpositioned again or removed for good.


15/23

15 | P a g e

Figure 13 - Red Tag

Removing useless items clarifies working environment and gives more space to act.Sorting helps everybody to keep places clean and in good order. Moving and safety

at work gets better, it saves and increases space, clarifies processes and gives achance to save up in cleaning.

Phase 2

Set in Order

The main purpose of stabilization is to find practical depository for every requisiteinstrument and those depositories should be marked properly. Every single item,

which is necessary in working, will be organized in a way that those can be foundeasily when needed. Setting in order assures that it is a snap for everyone to find,

take in use and put away the needed item. Target of all these actions is to eliminatepointless searching, improve safety at work and make working environment better.

Places of the equipment are not the only things which are marked. It is advisable tomark tools itself for example with colored cable ties. Marking off the floor and

dividing it into stations is a wise thing to do. That creates passages and clarifiesmovements in the production areas. When pulling the lines, it is useful to mark

places for pallets, pallet jacks and garbage cans at the same time. Color-codes and

signs are used to prevent the equipment getting mixed-up.


16/23

16 | P a g e

Phase 3 - Shine

It is not enough if phases one and two alone are implemented. First two phases

remove problems in relation to space but one problem is hiding around the corner.

Dirt wear down machines and makes quality worse. Third phase, Shine, is createdfor these problems. Everything will be cleaned up when operation model reaches

this point, Floors, tools, tool racks, devices and especially machines. Engine lifeincreases and everything will be ready for instant use when those are cleaned. This

leads automatically into situation where everything is kept in top condition.

Phase 4 - Standardize

Carrying out a 5S-campaign once in a cell or work station is a pushover. Withoutdaily discipline and clear follow-up and operation routines it is too easy to return

into old habits. That is why the management level should set annual 5S-goals for

every station and employee. Fourth phase is Standardization. This stage is destinedto create procedures and routines. Those should be guiding three (3) earlier phasesinto continuous and developing course of actions. Purpose of this phase is to take in

use and maintain all that, which is created earlier in sorting, stabilizing and shining.

Target is to change constant methods into standards which employees are expectedto obey. Mundane tasks are established and those are followed precisely. Instructions

should be so crystal clear that almost everyone could check the station with the help

of those standard methods. Actions are being supervised and followed by persons.Everyone should know what to do. Check lists are created in standardization phase

and on by a way of those the level of operation model is monitored.

Phase 5 - Sustain

Last phase is sustaining the level which is reached with four earlier phases. Standardsmethods and balanced workplace are maintained and followed all the time. Methods

that are under adoption are improved continuously. Improvement has to be one part

of sustain because the environment should be improved with the help of results from

follow-up. Internal audition lists should be created in the phase five, and auditions

should be made at regular intervals. The results from the auditions should begathered and put on to bulletin boards so that everyone can see and follow up the

development of 5S-actions. Evaluation should include, happened changes andcomparison to earlier months. Audition is essential tool in progress of pushing

cleanliness and sustaining a creditable level of order.


17/23

17 | P a g e

Figure 14 - 5S Audit for Hardy Machine and Design


18/23

18 | P a g e

Proposal 2 - S.M.E.D

Single Minute Exchange of Die is one of the many Lean production methods for

reducing waste in manufacturing process. It provides a rapid and efficient way of

converting a manufacturing process from running current product to running the nextproduct. This rapid changeover is helpful in reducing production lot sizes andthereby improving flow. It is also often referred to as Quick Changeover (QCO).

Performing faster changeovers is important in manufacturing, or any process,because they make low cost flexible operations possible.

The concept of SMED is created by shigeo shingo, one of the main contributors toToyota Production system. According to Shingo, if the change over time can be

reduced, then the economic lot size could be reduced, directly reducing expenses.

Shingo also stated that large lot sizes requires higher stock levels to be kept in restof the process and these hidden costs, are also reduced by smaller lot sizes through

implementing SMED [2].

The following eight techniques [3] should be considered during the implementation

of SMED:

1. Separate internal from external setup operations

2. Convert internal to external setup.

3. Standardize function, not shape.

4. Use functional clamps or eliminate fasteners altogether.5. Use intermediate jigs.

6. Adopt parallel operations.

7. Eliminate adjustments.

8. Mechanization.

In general, the idea behind the SMED methodology is to convert internal setup

operations to external operations. This method is highly recommended to reducechangeover time, thereby allowing extra production time to increase output [4].


19/23

19 | P a g e

2.1 Data collected at Hardy:

Further analysis has been made, to identify the percentage Non value added

internal activities performed during setup operation and results are shown in table

3 and table 4.Table 3 - Internal and External activities during CNC Lathe machine 406 setup


20/23

20 | P a g e


Results:

Total Time required for setup60 mins

Time for Internal setup34 Mins

Time for External Setup26 mins

External40%

Internal60%

Machine 406 SetuExternal Internal

Table 4 - I nternal and External activiti es dur ing CNC Lathe machine 408 setup


21/23

21 | P a g e


Results:

Total Time required for setup31 mins

Time for internal setup16 Mins

Time for External Setup15 mins

2.2 Need for SMED:

As seen in figure 1 and figure 2, Non-Value Added can be reduce to 40% by

implementing 5S, the activities like discussion with the supervisor, and fixing drill

and holder cannot be eliminated.

From table 2 and table 3, it can be noted that the more than 50 % of activities

performed during the setup are external operation. This activities are performed

as internal operation. By implementing the concept of S.M.E.D, Non Value Added

time can be further reduced.

External48%Internal

52%

Machine 408 Setu

External Internal


22/23

22 | P a g e

2.3 Steps in implementation of SMED:

The SMED methodology consists of two phases. In the first phase, a distinction is

made between internal and external setup tasks. Internal setup operations are

those that must be performed when the machine is stopped. These operations

occur on-line to the machine. External operations are those that can be performed

while the machine is in operation. It is more efficient to perform these tasks off-

line from the machine. Once the operations are classified as either external or

internal, the external operations can be moved off-line to reduce machine

downtime.

In the second phase of SMED, all aspects of the setup, both internal and external,

are streamlined to make them more efficient. Internal setup efficiency results in

labor savings and less downtime machine capacity. External efficiency does notdirectly improve downtime, but gives better utilization of labor. Since at the factory

or line level labor can be a constraint on doing setups, it can also indirectly reduce

downtime.

Conclusion:

By implementing 5S and S.M.E.D the setup time can be reduced by 70%.This

projects can also help Hardy to minimize tooling issues and reduce inventory.


23/23

23 | P a g e

References:

[1] 5S for Operators: 5 Pillars of the Visual Workplace (For Your

Organization!) PaperbackMarch 1, 1996 byHiroyuki Hirano

[2] Eliyahu Goldratt, 1990, Theory of Constraints, North River Press, Massachusetts,

pp. 40

[3] Shigeo Shingo, 1989, A study of Toyota Production System, Productivity Press,

New York, pp. 47

[4] Greg Lane, 2007, MadeToOrder Lean, Productivity Press, New York, pp. 66
http://www.amazon.com/Hiroyuki-Hirano/e/B001K8OF3O/ref=dp_byline_cont_book_1http://www.amazon.com/Hiroyuki-Hirano/e/B001K8OF3O/ref=dp_byline_cont_book_1http://www.amazon.com/Hiroyuki-Hirano/e/B001K8OF3O/ref=dp_byline_cont_book_1http://www.amazon.com/Hiroyuki-Hirano/e/B001K8OF3O/ref=dp_byline_cont_book_1

finalreport (autosaved)

Documents