Lean and automation

22.11.2011

Case presentasjon fra en private label produsent

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Valcon – The ”How” Management Consulting Company

Customer Experience Management - Winning the Customer

Operational Excellence – Lean management

Commercial Excellence – The Price & Service is Right

Strategy & Organisation – Being First

Valcon is a ”hands-on” management consulting firm creating lasting

footprints by focusing on areas where high impact on results are crucial

to establish a long lasting competitive advantage for their clients.

Valcons expertise are cross-functional and offers integrated solutions to

complex challenges and situations.

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Valcon’s Operational Excellence Services

LEAN MANUFACTURING

SUPPLY CHAIN

TRANSFORMATION STRATEGY & ANALYSIS

PERFORMANCE

MANAGEMENT

TURNAROUND

PROCUREMENT

EFFECTIVENESS SALES EXCELLENCE

LEAN FINANCE & ADM

Unødige

prosesser

Ansvarsskift

Avbrytelser

og info søk

Over-

servicering

Ventetid

Oppgaver

i kø

Feil

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Some of our Operational Excellence “footprints”

Global Manufacturing & Distribution Strategy, Lean implementation

New Scandinavian SCM organization. Forecasting and planning, Procurement

Nordic/Baltic integration (organisation, processes, performance management)

Joint distribution CDK/CCDK. ABC/PM on SC processes, Lean/TPM implementation

Global Distribution Strategy. ABC. New SCM organization, Turn-around in OEM division

Global Supply Chain restructuring project. Forecasting. ABC

Lean/TPM implementation, Supply Chain optimisation, ABC on Operations

Supply Chain strategy and implementation, Cost reduction programme

European Manufacturing & Distribution Strategy

Lean implementation. Restructuring of Parcel business and distribution network

Lean SCM strategy and procurement assessment

ABC on Sales, R&D and Operations

Supply Chain Management/ Lean logistics, Profit improvement project

Prognosis tools for inventory management, LEAN

Accelerated inventory reductions

and a procurement project

Global Supply Chain analysis

ABC on operations. Global SC strategy

LEAN, Supply Chain strategy

Review of Operation Strategy, Forecasting

Supply Chain Strategy. Sourcing, Forecasting. ABC.

Supply Chain strategy, Lean enterprise, Procurement

Production Strategy, ABC, Supply Chain development

LEAN Manufacturing implementation

Inventory Management model, Warehouse structure planning

Sales & Supply Chain optimisation

Strategy, LEAN, Profit Management, Sales Excellence, Inventory reduction

Warehouse structure planning, Inventory planning tools, LEAN

Supply Chain cost analysis & Sales practice integration

Global Manufacturing & Distribution Strategy, Lean implementation

Global Manufacturing & Distribution Strategy, Lean implementation

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The challenge

Implement a new and improved Lean production line for major mattress group.

How do you increase capacity and efficiency at your factory?

For the group, a entirely new concept based on Lean automation principles was the answer.

Issues:

Lack of space.

Work at the factory was marred by poor flow and interaction.

Poor overview of how things were progressing.

The percentage of errors in production specifications was too high.

Quality defects too frequent.

Raw materials were not always ordered in due time, leading to further interruptions in production.

Lead time was to long, generating a lot of WIP

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Six products with forty variants are run on one line

IKEA

IKEA Tjøme IKEA Tafjord

IKEA Tveit

IKEA Torod IKEA Tårsta

IKEA Trandal

Flatpacked

Visco elastic

7 cm

Flatpacked

Latex

7 cm

Rollpacked

Latex

Innercover

5 cm

Rollpacked

Foam

5 cm

Rollpacked

Foam

4 cm

Rollpacked

Polyfiber in quilt

2 cm

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Satisfactory basic Lean set up in factory before improvement:

Max capacity: 750.000 pcs on 3 shifts with over 130 persons

A lot of manual handling and transportation with forklifts and dollies

Lead time 72 hours or longer

To much poor ergonomics lifting heavy products etc

A lot of work in progress

Work centre concept – factory within factory

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Lean was implemented already without full impact.

The factory has been working with basic Lean for 4 years, without good impact

Implemented 5S, Kaizen

Kan Ban systems, SOP

Dedicated Lean team with 3 persons

Implemented visual management systems

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Valcon introduced Lean automation approach

Analysis

• Detailed analysis of process

materials and finished goods

• Process analysis

• Automation analysis

• Value stream mapping:

product, material, information

• Waste analysis

• Time studies

• Tact time / work balance

• Simulation

Training and coaching:

• Lean production principals

• Performance Measurement

Design

• Continuous flow in sewing

production lines

• High level of automation

• Lean supply chain model

• 5S concept enhanced

• Quality control and SOPs

• Performance Management

KPI concept real time

• Lean organization Model

Implementation

• RFQ tender process

• Evaluation and bidding

• Hands on implementation

• High degree involvement -

Management and Shop floor

workers

• Install solutions

Continuous

improvement

• Kaizen events

• Lean meeting structure

• Communication tools

• Performance measurement

Boards electronic

• Improved automation

• Improvement logs

• Deviation system

• Lean management tools

10 months from start to finish

Training and coaching:

• Performance Measurement

• Tact time /line optimization

• Teams

• Lean principals: Shop Floor

Training and coaching:

• Performance Measurement

• Communication tools

• Kaizen

Training and coaching:

• Continuous flow

• Tact time and work balance

• RFID robotics

• Quality assurance and SOPs

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Increase productivity by minimum 20%

Introduce high degree of automation

Add full traceability to products

Improve quality of products

Better work environment and minimal forklift traffic

Overall project objectives

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Lean automation gave considerable impact:

Area Before Improvement Results

Capacity: 1 million pcs on 3 shifts with less than 130 persons 750.000 >130 FTE + 250.000 >130 FTE > 30%

Lead time reduced from 72 hours down to 3 hours 72 hours - 69 hours 96%

Work in progress from 24 hours down to 1 hours work 24 hours - 23 hours 96%

Automatic packing and robotized palletizing Manual Ergonomics > 30%

Work centre concept enhanced to total integration Buffers between Integrated > 30%

Automatic handling and transportation with conveyors Trolleys+ forklift Automatic conveyors > 30%

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Simulation and engineering process based on Lean principals

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Advanced IT tools with RFID was necessary to control the system

Deliver

forklift Quilting

Report: Material

delivered

Stock

Finished

Goods

Assigned

location

APP M3 (MOVEX)

Daily production planning

Release MO

Release material picking

list with bar code

Stock

Borders

Wool

stockinet

Pick

lists

MO

foam

prun

MO

Foam dep Foam

Cutting &

gluing

Day -1

Foam cutting MO

Material requirements

Eton select

Planning sewing and assembly

Import MO

Detail prun

Border

sewing

RM

warehouse Tics

Fillings Latex

Fiber

Other

Day 1

Deliver material

Start production

prun

Sewing Assembl

filling

Line controller PLC

Control RFID foam pallets,

Packing, Palletizing robots,

Pallets, labelling pallets

Foam pallets

With RFID

assigned

Foil

Packing

Robot

palletizin

3 labels

Print

apply

RFID

database

Label

pallet

Pallet

Conveyor

PLC

Report: FG pallet

Assign location

Update WMS

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Automatic pick-up from quilt machines to overhead conveyor

Light tables with in line quality assurance and check

IT system line controller informatics tools to reduce overproduction

RFID and Barcode textile tracing to end customer

Example of Lean automation: Quilting process transformation

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Automatic transportation and handling using overhead conveyors

Improved ergonomics

Improved flow

IT tools to manage and balance workstations

Example of Lean automation: Sewing process transformation

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Automatic foam and Latex handling by the conveyor system and robots

Automatic cover transportation and faults handling

Automatic RFID labeling and tracking of products and raw materials

Example of Lean automation: Assembly process transformation

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The most “difficult” and heaviest job is now fully automatic.

Example of Lean automation: Packing & palletizing process transformation

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Automatic process balancing for each workstation

Automatic transportation in whole system

Informatics support with process supervising and managing

Shorter internal lead time gives higher flexibility

Example of Lean automation: Improved flow and balancing using IT tools

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Collecting and store data in one unique RFID tag about:

Raw material, source which supplier and suppliers batch numbers

Monitor flow trough all of the workstations

Identifying products through the production process and in warehouse

Example of Lean automation: Product traceability & identification by

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Increased quality check on quilting machines using light worktables

Using RFID tags to deliver more accurate data to define problem areas in whole process

Using robots to add repetitiveness in packing and palletizing process

Using conveyors thus reducing the risk of damaging covers and foam in the transportation process

Example of Lean automation: Improved quality by

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Summary of successful Lean automation

Automation of internal transportation of foam and covers

Automation of all „heavy lifting” jobs, especially in packing area

Reduced non-value added time in whole process

Improved ergonomics

Introducing KPI performance measurement and visualization system

Improved flow and production control

Reducing lead time from 72 hours down to 3 hours

Reducing WIP from 24 hours down to 1 hours work

The project increased productivity by

0 0,5 1 1,5 2 2,5 3 3,5 4 4,5

Before

After

Units per man-hour

Over 30% increase in

productivity

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Agile manufacturing is the future

What is Agility?

Agile = Quick moving, Active, Quick, Brisk, Sprightly, Nimble

"For a company, to be agile is to be capable of operating profitably in a competitive

environment of continually, and unpredictably, changing customer opportunities."

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Agile manufacturing is the future

"Agility is a name. It's a name for the reorganization of production, adapted to distinctively new

market forces that have undermined the mass production organization of business that has

dominated the 20th century. These new forces include:

Intensifying global competition

The fragmentation of mass markets into niche markets

Cooperation among companies, including companies that are direct competitors

Evolving customer expectations toward individualized products, and expecting much more

than reliability as quality.

Break with mass production; emphasis on mass customization.

Greater flexibility for customized products

Scope is enterprise wide

Formation Virtual enterprises

Emphasis on thriving in environment marked by continuous unpredictable change

Acknowledgement and attempts to be responsive to change.

The organization of business in a way that is adapted to these new market-place forces is what

we call agile.