group 6: may adejinle ika lambogo kevin rosenquist lean manufacturing
TRANSCRIPT
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GROUP 6 :
MAY ADEJINLE
IKA LAMBOGO
KEVIN ROSENQUIST
Lean Manufacturing
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May
•IntroductionMay
•MethodKevin
•Results
Ika
•Discussion
AGENDA:
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INTRODUCTION
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Introduction EMD builds, sells, and services railway
transport locomotives.
Manufacture diesel engine solutions for: Marine ships, Oil rigs, and Power generators.
EMD products can be found operating in over 70 countries from Argentina – Zimbabwe.
The Company is the only diesel-electric locomotive manufacturer to have produced more than 72,500 engines and has the largest installed base in both North America and worldwide
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Benefit of recent acquisition: EMD can compete with rival manufacturer, General Electric
Headquarters is located in LaGrange, Illinois Includes engineering facilities and parts-manufacturing
operations.
EMD Plant in London, Ontario Final assembly of the locomotives is conducted here in
London Their products are then exported to customers around the
world.
INTRODUCTION
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INTRODUCTION
EMD customers attain new levels of availability, reliability and asset utilization through: Technological Improvements Proactive Environmental Measures Customer-Focused Solution
EMD pride itself for listening to and supporting customers, pursuing continuous improvement, and building on a reputation for manufacturing excellence.
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VALUES
1. Focus on the Customer
2. Deliver on Our Commitments - Achieve Results
3. Lead with Integrity and Trust
4. Act Quickly and with a Sense of Urgency
5. Creatively Innovate Our Products and Services
6. Communicate Our Vision and Purpose
7. Develop and Motivate Our People
8. Continuously Improve Our Processes
9. Work in Teams
10. Recognize and Reward those who Walk this Talk
MISSION
To restore Electro-Motive to its position as
market leader - not by recreating the past, but
by embracing the future
VISION We will:
Be highly responsive to customer needs and
issues
Deliver more reliable, more fuel efficient, more
innovative, and more cost-effective
locomotives, parts, and services
Make money, enabling a return on investment
and business reinvestment
Grow, through identifying new ways to better
serve our customers
INTRODUCTION
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INTRODUCTION
Questions For You!
Which company recently acquired EMD?
What year?
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METHOD
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Introduction to Lean: Lean is a methodology that emphasizes the
minimization of activities that do not add value to the customer
Used to increase and sustain quality, improve process, and reduce costs by eliminating waste.
2 common goals of Lean: To improve quality by having the company understand its
customers’ needs & wants To eliminate waste
METHOD
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Brief History of Lean: Lean principles come from Toyota, but was first
coined in 1988 by John Krafcik in an article called “Triumph of the Lean Production System.” The Ford Factor Toyota in 1953
The idea finally took hold in the US in the late 1970’s and 1980’s due to Japanese manufacturing competitors’ price & quality.
METHOD
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Toyota Production System:
Toyota Production System (TPS) is another term for Lean
TPS has two pillar concepts:
Just-in-Time (JIT) – Continuous Flow
Jidoka – focuses on the “Human Touch”
METHOD
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Lean Tools
5S Process: Seiri, Seiton, Seiso, Seiketsu, Shitsuke (Sort, Set in Order,
Shine, Standardize, and Sustain).
METHOD
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Lean Tools
Kaizen Japanese for “Improvement”, is a philosophy that
focuses on continuous improvement of processes
METHOD
Define
Measure
Analyze
Improve
ControlDMAIC
Framework
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Lean Tools
Kanban Japanese for “Sign-Board” or “Billboard”, is a
scheduling system used to determine what to produce, when to produce and how much to produce.
METHOD
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METHOD
Over Production Transportation
Inventory Motion
Types of Waste
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METHOD
Question For You!
Name One Type of Waste?
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RESULTS
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Interview BackgroundOne-on-One Interview:
Earl McDonald II, CPIM, CSCP, the Master Scheduler at EMD
Email Interview: Jim Albrecht, Director of Central Technical Services at
EMD LaGrange
RESULTS
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Early History of Lean at EMD1980’s - 1990’s
EMD worked on leaning the business Companies’ lean advances soon disappeared & relapsed.
Recent History of Lean at EMDLate 2000’s
EMD reassessed its lean implementation from the 80’s & 90’s and decided that they needed to successfully reinstate lean to survive.
Hired employees that understand what it takes to implement lean (General Motor, Consulting Leadership)
RESULTS
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Challenges of Implementing Lean at EMDKeeping the factory floor organized following
the 5S process.Started organizing their 800,000 square foot,
750 employee LaGrange plant over 2 years ago, but they are not done.
Employees need to be intrinsically motivated to implement and sustain lean initiatives.
RESULTS
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RESULTS
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Challenges of Implementing Lean at EMDKeeping the factory floor organized following
the 5S process.Started organizing their 800,000 square foot,
750 employee LaGrange plant over 2 years ago, but they are not done.
Employees need to be intrinsically motivated to implement and sustain lean initiatives.
RESULTS
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RESULTS
ERP SYSTEM Undergoing Change Management
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BenefitsResults were realized as soon as lean was
implements in 2008. The main benefits were seen in the assembly
of the engine itself. What used to take about 3weeks now only takes 3days
EMD’s OSHA recordable injury frequency dropped by nearly 80%
RESULTS
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Impact of Lean Lean has positively impacted almost every
facet of the organizationReduction in:
80% Scrap rates 75% Labor per part manufactured 60% Inventory levels in the operations 30% Fuel consumption
RESULTS
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Impact of Lean What kinds of LEAN tools are used by
EMD? We value stream map, 5-S, some Kanban, and poka
yoke are used in our manufacturing engineering new product introduction processes. We are managing flow with some Kanban, and are controlling flow to enable the pull systems to be exercised.
RESULTS
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EMD utilizes lean tools: Total Quality Management 7 Step corrective action processes Leadership Development/Training for various levels of
the organization. Various quality control tools
Flowcharts Run Charts Check Sheets Histograms Pareto Charts Fishbone Diagrams (cause and effect) Scatter Diagrams
RESULTS
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EMD Focuses Heavily on 8 Wastes:OverproductionTransportationInventoryMotionWaitingOver-ProcessingDefectsUnused Human Talent
RESULTS
90%
9%
1%
Preventable WasteUnavoidable WasteRaise your hand if you are paying atten-tion
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EMD Defines WasteOverproduction:
Corrected by leadership giving direction
Transportation: EMD focuses on unnecessary movement of parts.
RESULTS
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EMD Defines WasteInventory:
Inconsistent processes and bad planning create inventory shortages/overages
RESULTS
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EMD Defines Waste
Motion: Overhead bridge cranes are all over the place, and
crane operators need to travel the length of the warehouse to get them.
People have to get out of the way and wait for the piece to be set down before passing
RESULTS
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RESULTS
EMD Defines Waste
Waiting: Equipment and Human time
not utilized and unnecessary inventory.
Causes higher costs, increased cycle times, and heightened quality risk.
Ex: When cranes are overhead, workers sometimes have to wait long periods of time until it is safe to pass.
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EMD Focuses Heavily on Waste:
Over Process: Result from poor product design requirements and
specifications. A lot of rework is needed with welding and retooling.
RESULTS
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EMD Defines Waste
Defects: Difficult to prevent when there is clutter with
inventory and inconsistent flow. EMD can find some issues with software (emissions
testing)
Waste of Unused Human Talent: This waste is hard to measure. Example: Microsoft Excel
RESULTS
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Question For You!
What was the primary challenge in implementing Lean at EMD?
RESULTS
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DISCUSSION
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EMD’s Approach to Quality:DISCUSSION
STRENGTH WEAKNESSKnowledgeable leadership pool that
understands leadership behaviorLack of Lean Culture
Training New Employee 4 hours of training for new employee
Customer FocusRecognize Benefits of Kanban, but
does not use it.
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Effectiveness of LeanImplemented in 2008
2 months initiate the first improvement 2.5 years & on going process Main difficulty was to create 5S environment in
800,000 sq foot facility with 750 employees.
DISCUSSION
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Effectiveness of Lean:
DISCUSSION
Result of Reduction in EMD due to Lean0%
10%
20%
30%
40%
50%
60%
70%
80%
Scrap Rates Inventory
Labor/Part Fuel Consumption
80%
Scr
ap R
ates
60% Inv
ento
ry
75% L
abor
/par
t 35
% F
uel
Consu
mpt
ion
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Recommendation
DISCUSSION
EMD needs to implement a better strategy for “Change Management” & Training
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Future DirectionWe believe that EMD will continually improve
their lean manufacturing processes. Culture of teamwork Improvement Communication Urgency to change
EMD will be able to see much better improvements in the productivity, costs, quality, and so on.
DISCUSSION
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Question For You!
Name 1 Strength & 1 Weakness at EMD?
DISCUSSION
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Lessons Learned
We learned how Lean was incorporated into a company.
Communication Time management is very crucial Early is better than late!
DISCUSSION
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QUESTION?