lean implementation guide

Upload: santosh-s-myageri

Post on 09-Apr-2018

222 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/8/2019 Lean Implementation Guide

    1/51

    Lean

    manufacturingimplementation

    guide

    1

  • 8/8/2019 Lean Implementation Guide

    2/51

    Paretoanalysis

    Resourcecapacity

    analysis

    Processanalysis

    7typesof wasteanalysis

    4Mstability

    Cell layout design

    Workingmethoddesign

    Productionschedule

    designand

    implementation

    Performancemeasures

    Visual production

    management

    Cellular layoutimplementation

    5S

    Leanassessment

    Productionplanningand

    control analysis

    Lean manufacturing implementation process flow

    2

  • 8/8/2019 Lean Implementation Guide

    3/51

    Step 1. Lean assessment

    Carry out lean assessment by analysing following:

    Culture and Awareness

    Workplace Organisation and Visual Management

    Standardised Work

    Flexible Operations

    Continuous Improvement

    Error Proofing

    Quick Changeover Total Productive Maintenance

    Material Control

    Level Production

    Lean assessment can be carried out for a complete organisation or for specific

    production cells.

    A recommended lean assessment questionnaire is shown in appendix A.

    3

  • 8/8/2019 Lean Implementation Guide

    4/51

    Step 2. Pareto analysis

    Pareto analysis is required in order to identify significant products. Subsequent

    improvement initiatives should be focused on the significant products in order to

    maximise the benefits. For example, reducing the walking distance for a product

    which is 60% of the total production volume would be far more beneficial than

    reducing the walking distance for a product which is only 5% of the total

    production volume.

    To complete a Pareto analysis complete following steps:

    Step 1 - take a set of data and calculate the combined total:

    PART N

    3502 033506 04

    3532 03Step 2 Calculate the percentage contribution for each part number by dividing

    its quantity by the combined total:

    4

  • 8/8/2019 Lean Implementation Guide

    5/51

    PART NU

    3502 03 143506 04 09

    3532 03 02

    Step 3 sort individual percentages in descending order, i.e. from highest to lowest:

    PART NUM

    3570 03 063564 04 01

    3546 02 02

    5

    (152 / 20910) X100= 0.73%

  • 8/8/2019 Lean Implementation Guide

    6/51

    Step 4 Calculate cumulative percentage:

    P a rt n u

    3 5 7 0 0 3 0

    3 5 6 4 0 4 0Pareto analysis can be carried out for any type of information although the production

    quantity and the sales value are considered to be the most significant in a manufacturing

    environment. Blank Pareto analysis form is shown below:

    6

    ADD

    =

  • 8/8/2019 Lean Implementation Guide

    7/51

    Part Number

    7

  • 8/8/2019 Lean Implementation Guide

    8/51

    Step 3. Resource capacity overview

    In order to ensure that the relevant resources, e.g. machines, have enough

    capacity to produce the required quantities it is necessary to complete the

    resource capacity analysis. Resource capacity analysis consists of the following

    steps:

    Step 1 Determine the required production quantity for each part number

    Step 2 Obtain relevant process information for each part number i.e. process

    steps and the corresponding cycle times

    Step 3 Multiply the required production quantity for each part number by the

    cycle time for each individual process step

    Step 4 Calculate the total required time for each resource

    Step 5 Calculate the total available time for each resource. The

    estimated/calculated changeover time should be deducted from the total available

    time

    Step 6 Compare the total required time against the total available time in order

    to highlight any capacity shortages

    For shared resources the analysis needs to include all part numbers which are to

    be produced on that particular resource.

    Sample calculation is shown below:

    8

  • 8/8/2019 Lean Implementation Guide

    9/51

    Part Number De

    4440 03 02

    4440 03 02

    4440 03 024440 03 02

    4440 03 02

    Equals:

    Part Number Des

    4440 03 02

    4440 03 02

    4440 03 02

    4440 03 02

    4440 03 02

    Therefore, to complete 1000 sockets part number 4440 03 02 we would require

    20 work hours on Kitako and 28.6 hours on Gildemeister. If there is more than

    one part number required then same process should be repeated for other part

    numbers and the required time per machine(s) added together to calculate total

    required time.

    For example, if we add another two part numbers (4562 04 03 and 4636 03 03)

    and assume that their volumes are 600 and 800 respectively, tables would look

    as follows:

    Part num berD es

    4562 04 03

    4562 04 039

    Qty X Process time

  • 8/8/2019 Lean Implementation Guide

    10/51

    P a r t n u m b e rD e s

    4 6 3 6 0 3 0 3

    4 6 3 6 0 3 0 34 6 3 6 0 3 0 3

    4 6 3 6 0 3 0 34 6 3 6 0 3 0 3

    4 6 3 6 0 3 0 34 6 3 6 0 3 0 3

    4 6 3 6 0 3 0 3

    By adding the times for individual machines we can come to the conclusion that

    to produce 1000 4440s, 600 4562s and 800 4636s well need 42 hours on

    Kitako and 58.36 hours on Gildemeister.

    In order to calculate a realistic available time on any machine it is important to

    take into the consideration the time that will be required for the changeovers.

    Time required for the changeovers is classed as downtime and has to be

    deducted from the total available time in order to establish time available for the

    production.

    10

  • 8/8/2019 Lean Implementation Guide

    11/51

    Step 4. Process analysis

    The purpose of the process analysis is to create a detailed map of a particular

    process, which is showing all of the steps undertaken in order to convert the raw

    materials into a finished product. The analysis should focus on the following five

    aspects:

    Operation/Cycle time

    Delay/Waiting

    Inspection

    Transport or movement (distance and time)

    Storage

    Process steps need to be recorded in the order in which they are performed.

    Three methods for process mapping that are recommended are:

    Value stream mapping

    o For detailed instructions on how to create value stream maps refer

    to appendix B. Process flow diagram

    Spaghetti diagram

    11

  • 8/8/2019 Lean Implementation Guide

    12/51

  • 8/8/2019 Lean Implementation Guide

    13/51

    Meaning of the icons used for the value stream maps is as follows:

    ( Strategos Inc.)

    13

  • 8/8/2019 Lean Implementation Guide

    14/51

    14

  • 8/8/2019 Lean Implementation Guide

    15/51

    Bevel box machining/assembly process flow diagram

    G o o d s In w a r d

    I n s p e c t i o n

    15

  • 8/8/2019 Lean Implementation Guide

    16/51

    G o o d s In w a r d

    Comparison of the lead times for different batch sizes shows that the overall lead time

    increases proportionally. Therefore, larger the batch size longer it would take for the parts

    to reach the next stage of the process. Potential solution is to split the batch i.e. transfer

    the parts to the next station more often rather than wait fir the whole batch to be complete.

    This would result in the complete assemblies being completed quicker and thus being

    delivered to customer in less time as well.

    Spaghetti diagram

    Purpose of the spaghetti diagram is to illustrate the route that the product takes while

    being processed as well to record the distance travelled. A sample of a spaghetti diagram

    16

  • 8/8/2019 Lean Implementation Guide

    17/51

    showing the route and distance that the ball pins had to travel before the introduction of

    lean manufacturing is shown below:

    Spaghetti diagram is a very effective tool in identifying how much time is taken up by

    transporting the part while it is being processed. It is important to note that the customers

    will normally only pay for the value added work e.g. CNC, milling drilling, assembly etc.

    while the walking and transportation of parts is considered as non-valued adding and as

    such is unlikely to be paid for by the customers. Reducing the non-value added content of

    the production would help to ensure that the products that the company is producing are

    competitively priced.

    17

  • 8/8/2019 Lean Implementation Guide

    18/51

    Step 5. Production planning and control

    analysis

    The purpose of this stage is to understand how the work is planned,scheduled and controlled. During this stage following questions need to be

    answered:

    What method is used to calculate/set the required production quantities?

    How often are finished products delivered to customers?

    What method is used to determine the order in which different part

    numbers are produced?

    Are all process steps carried out in-house or are there external sub-con

    steps?

    Is the quantity that each cell is required to produce per week/month

    levelled, i.e. are there fluctuations in volume from one month to another?

    What scheduling method is used to schedule the following:

    o Machines

    o People

    o Sub-con operations

    18

  • 8/8/2019 Lean Implementation Guide

    19/51

    How much involvement do shop floor operators have in the planning,

    scheduling and control process?

    Are there any performance measurement tools in place?

    How often is the information relating to the performance communicated to

    the production planning department?

    How are the adjustments to the original plans communicated to the

    relevant departments?

    Are the missed deliveries recorded? (How late and in what quantities)

    Are the root causes of late deliveries determined and recorded?

    19

  • 8/8/2019 Lean Implementation Guide

    20/51

    Step 6. Seven types of waste analysis

    The main objective of lean manufacturing is to minimise or completely eliminatewaste from the manufacturing process. The most significant seven types of waste

    found in manufacturing are:

    Rejects

    o Determine the number of rejected parts

    o Determine the cost of the rejected parts

    o Determine the root cause

    o Analyse the root causes in order to establish potential patterns

    Rework

    o Determine how much time was spent reworking faulty products

    o Determine the root cause

    o Analyse the root causes in order to establish potential patterns

    Inventory

    o Determine the quantity of products in stores

    o Determine the amount of space required to store products

    o Determine the cost of handling inventory

    o Determine the root cause(s) for the inventory

    o If possible calculate the financial value of inventory

    Transportation

    o Determine the distance that the product has to travel while being

    converted into a finished product

    o Determine the frequency, i.e. every time, 1/10 etc.

    20

  • 8/8/2019 Lean Implementation Guide

    21/51

    o Calculate the total amount of time spent transporting products. If

    possible calculate the cost of transporting the products

    o Determine the root cause(s) of transportation

    Overproduction

    o Determine if more products have been produced than what the

    customers require

    o Determine the root cause(s) for the overproduction

    o Determine what happens to the excess products

    o Determine the effect of the overproduction in terms of:

    Machine time

    Operator time

    Raw materials

    Excessive processing

    o Determine if any additional process steps have been carried out

    other than those specified on the route card/works order/standard

    operating procedure or any other official documents stating the

    required process steps

    o Determine the route cause for the additional process steps

    o Determine the overall duration of the additional process steps

    Queuing

    o Determine how long does a part have to wait between arriving at the

    machine and being fully processed

    o Determine the root cause for the waiting, e.g. waiting for the

    machine/operator to become available or the product is a part of a

    batch of products

    21

  • 8/8/2019 Lean Implementation Guide

    22/51

    Following form can be used to record the different types of waste that are found

    within the process:

    22

  • 8/8/2019 Lean Implementation Guide

    23/51

    23

    W

  • 8/8/2019 Lean Implementation Guide

    24/51

    Step 7. Create stability within 4M

    For any improvement initiative to be effective there has to be a basic level ofstability within 4M Machines, Manpower, Materials and Methods (processes).

    Machines:

    Adequate capacity to produce required volume

    Adequate capability to produce good quality parts in required volumes

    Adequate up-time, i.e. no unplanned stoppages such as breakdowns

    Preventive maintenance procedures in place

    Manpower:

    Sufficient number of operators

    Operators trained to carry out all required tasks

    Multi skilled operators capable of performing a variety of tasks

    Operators trained in tools and techniques of lean manufacturing

    Materials:

    Sufficient level of raw materials to produce the required production volume

    Raw materials need to be fit for purpose i.e. no quality issues

    Methods:

    Define the most effective and efficient way to convert a raw material into

    finished product

    24

  • 8/8/2019 Lean Implementation Guide

    25/51

    Standardise the most effective and efficient way to convert a raw material

    into finished product

    25

  • 8/8/2019 Lean Implementation Guide

    26/51

    Step 8. Design cell layout

    For the conditions in which Pailton Engineering Ltd. operates, product family

    based cell layout is considered to be the most suitable. Product family based

    cell layout means that the machines required to machine a family of products

    are grouped together and therefore products do not need to be moved or

    transported excessively as all required machines are placed relatively close to

    each other. Product families are normally formed of products with similar:

    Manufacturing processes

    Required equipment

    Material

    Required surface finish

    Size and shape of the product

    Or

    Belonging to the same assemblies

    Additionally, it is recommended that the machines within the cell are positioned in

    a U shape and that the machines are positioned in line with the process flow.

    Other important rules of cell design are:

    All parts should follow generic flow, i.e. travel in the same direction

    Backtracking should be avoided

    All process steps should be contained within the cell

    o If all process steps are contained within a cell than the travelling

    distance and the time is reduced

    o Single piece flow is only applicable where machines are short

    distance away from each other

    o Multitasking is only applicable where machines are short distance

    away from each other.

    26

  • 8/8/2019 Lean Implementation Guide

    27/51

    o If possible relocate additional machines into the cell. If for example

    the machine is a shared resource but a large proportion of its

    capacity is dedicated to one product family then that machine

    should be located in the cell that is dedicated to the product family.

    It is more beneficial that parts which only use the machine for

    example 5% of the time are transported to the machine rather than

    the parts which use 60% of the capacity.

    o If additional machine is not available consider purchasing additional

    machine. To justify the purchase, calculate the cost of transporting

    the parts to be processed. General rule is that if the cost of the new

    machine is matched by savings that the new resource will bring

    within two years, then purchasing new resource is recommended.

    Additional benefit is that, by having a dedicated resource, the

    amount of time spent scheduling work is reduced. Also having a

    dedicated resource will reduce the amount of time that the part has

    to wait to be processed.

    o Dedicated resources also reduce the number of changeovers.

    o It may be possible to contain all process steps within the cell by

    changing product design thus enabling the existing machines to fullyprocess the part. A good example is the bevel gear cell, by

    standardising gear design it was possible to process all gears on

    the machines that were already within the bevel gear cell. Following

    the design change it was no longer necessary to transport gear to

    shaft cell for the second CNC op.

    27

  • 8/8/2019 Lean Implementation Guide

    28/51

    Step 9. Working method design

    To design a most effective and efficient working method, the following four step

    methodology is recommended:

    (Source: Art of Lean Inc.)

    Step I Break down the job

    List all details of the job exactly as done by the present method

    Be sure details include all:

    o Material handling

    o Machine work

    o Hand work

    Step II Question every detail

    Use these types of questions:

    o Why is it necessary?

    o What is its purpose?

    o Where should it be done?

    o When should it be done?

    o Who is best qualified to do it?

    o

    How is the best way to do it?

    Also question the materials, machines, produce design, layout, work place, safety

    and house keeping.

    28

  • 8/8/2019 Lean Implementation Guide

    29/51

    Step III Develop the new method

    Eliminate unnecessary details

    Combine details when practical

    Rearrange for better sequence

    Simplify all necessary details

    o Make the work easier and safer

    o Pre-position materials, tools, and equipment at the best places in

    the proper work area

    o Use gravity feed hoppers and drop delivery chutes

    o Let both hands do useful work

    o Use jigs and fixtures instead of hands for holding work

    Work out your ideas with others

    Write up your proposed new method

    Step IV Apply the method

    Sell your proposal to the boss

    Sell the new method to the operators

    Get final approval of all concerned on safety, quality, quantity and cost

    Put the new method to work. Use it until a better way is developed

    Give proper credit where due

    While designing the new working method it is important to keep the original

    objective of the lean manufacturing in mind elimination of seven types of waste.

    Any recommended working method is required to deliver the required volume of

    29

  • 8/8/2019 Lean Implementation Guide

    30/51

    products, at the required quality standard, in the required time and to ensure that

    the seven types of waste are either minimised or eliminated.

    In addition to the listed four steps, it is also recommended that a new working

    method should be founded on the use of takt time. Takt time calculates the rate at

    which the parts should be produced in order to meet the customer demand. Takt

    time is calculated using the following formula: Available time / Customer demand.

    For example, if available time per day is 485 minutes and the customer demand

    is 190 products then the takt time or the rate at which parts must be produced is

    as follows: 485 (minutes) / 190 (products) = 2.55 minutes.

    Therefore, in order to meet the customer demand one part must be produced

    every 2.55 minutes.

    Final step of the work method design stage is to standardise the most effective

    work method steps. This is normally done by issuing a standard operating

    procedure which outlines all of the required steps as well as the sequence in

    which each of the steps is performed. Following example is a standard operating

    procedure for the bevel gear cell (issue level 1):

    30

  • 8/8/2019 Lean Implementation Guide

    31/51

    Once the working method has been clearly defined, a decision concerning the

    shape of the cell can be made.

    Two of the most common shapes are line and u shape cell:

    M/C 1

    Line

    31

  • 8/8/2019 Lean Implementation Guide

    32/51

    M/C 2

    M/C 1

    U shape

    Although these cell formations are considered to be the most common, they are

    not the only ones. Cell formation should be such that it delivers the most efficient

    process while at the same time adhering to the cell layout design

    recommendations listed in the Step 8 Design cell layout.

    Number of the operators manning the cell will depend on the manual work

    content. If the takt time is used, the manual content for any operator should not

    exceed the takt time as this would mean that the required rate is not achieved. In

    situations where it is possible for one operator to operate more than one machine

    the U shape cell layout is recommended. For example, the walking distance

    between any of the machines within the U shape layout would not be too great

    so the operators could operate various combinations of machines, although it is

    not recommended for operators to cross other operators paths. On the other

    hand, within the line shaped layout, it would be difficult for an operator to operate

    machines 1 and 5 due to the potential distance between them. Additionally, the

    operator would have to cross the working space of the other operators which is

    not recommended.

    32

  • 8/8/2019 Lean Implementation Guide

    33/51

    Step 10. Cellular layout implementation

    In order to successfully introduce a cellular layout it is important to create a plan

    which will take into the account several key aspects:

    Tasks

    A detailed list of all required tasks, which will lead to the successful layout

    implementation, must be created. Additionally, a process flow diagram

    highlighting the order in which the tasks are performed is also required.

    Resources

    For each listed task there must be allocated a person responsible for the

    completion of the task in line with the project requirements. Timing

    Each task of the layout implementation must have a due date.

    Training

    Any identified training activities need to be performed before the new

    layout is introduced.

    Facilities

    The requirements of the new cell in terms of facilities such as electricalinstallations, air supply, storage racking, health and safety equipment,

    display boards and material transfer equipment should be in place prior to

    the implementation.

    33

  • 8/8/2019 Lean Implementation Guide

    34/51

    Step 11. 5S

    The philosophy behind the 5S is that a tidy and organised work place wherethere is a place for everything and everything is in its place is a good foundation

    for a number of lean tools and techniques such as visual management and

    standard operating procedure among others. 5S has also been proven as a waste

    reducing technique. For example, if required tooling and parts are easily located

    and accessed it would take less time to retrieve them than if the same parts or

    tools are not correctly identified, are mixed with other parts and tools and are

    located on the other side of the factory.

    5S technique is comprised of the following five steps:

    Sort

    Red tag and remove all unnecessary items from the work area. Only parts

    that are planned to be used frequently should be kept within the work area.

    Red tag

    Straighten

    34

    N:

    TION:

    BY:

    ION:

    ROPRIATE BOX)

    D BY:

    SCRAP

    MOVETOCENTRAL LOCATION

    OTHER

    (SPECIFYBELOW)

  • 8/8/2019 Lean Implementation Guide

    35/51

    Place all items in their optimal position, in accordance with the process

    flow and health and safety guidelines, among others. All locations should

    be correctly identified and labelled.

    Shine

    Maintain a clean working area.

    Standardise

    Create easy to follow standard operating procedures in order to ensure

    that required 5S standards are maintained. Having detailed 5S standard

    operating procedure will ensure that there is no ambiguity regarding the

    required standards and the steps required to achieve it.

    Sustain

    As reported frequently, sustain stage is possibly one of the most difficult to

    achieve. Initial results are often impressive but over time standards do tend

    to slip as the workers lose the motivation or the focus shifts elsewhere.

    Benefits of 5S can be significant and it is therefore important to maintain

    the same standards in order to maximise the benefits.

    Examples of poor 5S practices are shown below:

    35

  • 8/8/2019 Lean Implementation Guide

    36/51

    Examples of good 5S practices:

    36

  • 8/8/2019 Lean Implementation Guide

    37/51

    In order to maintain high standard of 5S it is recommended to introduce 5S audits, which

    will be carried out by both the operators and supervision. By regularly assessing the

    various aspects of the cell, a generally safe and healthy, efficient and clean working

    environment can be achieved with very little effort.

    Pailton Engineering Ltd has piloted the 5S audit sheet on the bevel gear and the ball pin

    cells and will be introducing the same throughout the company progressively. A sample

    of the piloted audit sheet is shown on the next page.

    37

  • 8/8/2019 Lean Implementation Guide

    38/51

    38

  • 8/8/2019 Lean Implementation Guide

    39/51

    Step 12. Production schedule design and

    implementation

    Purpose of the production scheduling is to create a plan of how to produce therequired number of components and in the required time. In addition to the variety

    of rules that have to be followed while creating a production schedule there are

    also several guidelines suggested by the principles of lean manufacturing:

    Small batch sizes

    Size of the batches produced should be as small as economically viable. By

    running smaller batches it is possible to produce higher mix of products while at

    the same time keeping the inventory level low. Large batches take up the large

    amounts of production capacity, could possibly mask potential quality issues and

    the excess products (above what the customers require for a given period) need

    to be stored and managed. Storage and management of stock requires storage

    space as well as operators to manage it.

    Levelled production

    If possible, monthly production should be levelled i.e. quantities produced each

    month should be as similar as possible. Producing significantly different volume of

    products from one month to another means that while one month the production

    cell may be under utilised, in another month the required quantity may exceed the

    available cell capacity. Scheduling similar production quantities each month also

    means that each month a similar number of work hours is required in order to

    produce the required quantity

    Load levelling can be demonstrated by using the monthly production table for the

    socket cell (2005):

    39

  • 8/8/2019 Lean Implementation Guide

    40/51

    From the table it can be seen that the volumes for individual part numbers

    differed significantly from one month to another and therefore the total quantity

    that the cell had to produce was significantly different as well. In some months

    cell had produced just over 4000 socket while in some months it had produced

    over 10000 sockets. Additionally, there appears to be no established pattern of

    production.

    The alternative to this production schedule is the levelled production schedule,

    which is created by calculating average monthly production volumes and then

    producing that same volume every month. This method was tested on the bevel

    gears cell and it has proven itself to be successful. It is still likely that the

    customer requirements may vary from month to month, i.e. they can order less

    than average one month and more than average in another month. However, the

    experience from the bevel gears cell has proven that customer requirements

    usually balance out over the period of 1-3 months. Therefore, if the customers

    order less than average one month, the excess stock is kept and is used to

    supplement the average produced quantity when the customer demands exceeds

    the monthly production. Additionally, it is important to run the levelled schedule in

    conjunction with the MRP system and to consult it before the monthly production

    40

  • 8/8/2019 Lean Implementation Guide

    41/51

    quantities are set. MRP may just confirm the original schedule but it also may

    identify unexpected peaks or troughs which may call for an adjustment to the

    original schedule. Example of a levelled schedule for a socket cell is shown

    below:

    From the table it can be seen that the total production for each month is very

    similar, production quantity for individual part number is the same every time and

    the different parts are produced at regular intervals i.e. every month or every two

    months. Additional benefit of the levelled schedule is that the number of hours

    required to produce the planned quantities is similar each month which makes the

    managing of the resources easier as well each month you require similar

    number of both the machine and operator hours.

    Minimise the changeover duration through product sequencing

    41

    P N F o r g i n4 4 4 0 0 34 1 6 9 0S

  • 8/8/2019 Lean Implementation Guide

    42/51

    Significant time saving could be made by simply scheduling similar products

    together. For example, products that use same forgings could be produced one

    after the other and, as the changeover from one part to another that uses the

    same forging may only mean a quick program change, the changeover duration is

    minimal. On the other hand if a product is followed by another that uses a

    distinctly different forging, the changeover duration might be several hours.

    Although it may not be always possible to completely minimise the changeover

    duration, by scheduling parts with similar characteristics in sequence significant

    time savings could be achieved. Following table illustrates the recommended

    monthly product mix for the socket cell:

    o

    o

    Product sequence in this case is based on the raw forgings. If two part numbers

    are produced from the same forging then the changeover duration when changing

    from one part number to the other is minimal, normally just a machine program

    change. On the other hand if two part numbers that use different forgings are

    scheduled one after the other then the changeover may take up to 8 hours.

    42

  • 8/8/2019 Lean Implementation Guide

    43/51

    Therefore, when the production sequence for a period of time (week, month etc.)

    is planned, part numbers should be sequenced in such way that the changeover

    duration is minimised. In the case of the socket cell, part numbers that are

    produced using the same or similar forging should be sequenced together. From

    the table it can also be seen that some part numbers are produced every two

    months but in larger quantities. This is because these part numbers cant be

    successfully sequenced with other part numbers and their changeovers will

    always be fairly long. In order to minimise the negative impact, these parts are

    therefore produced less often but in higher quantities.

    It is strongly recommended that changeovers should be reduced in all areas of

    the production. Reducing the changeovers will enable production cells to produce

    smaller batches more often. This will result in lower inventory levels, less work in

    progress to manage and the parts will be transfer more often to the final

    assembly. Transferring parts more often to the assembly will also mean that the

    assembly area will not need large amounts of space to store incoming parts. If the

    parts are delivered to the assembly area more often and in smaller quantities then

    the final assembly can be performed more often as and when the parts arrive -

    finished products can then be moved out of the assembly area and sent to the

    customers. On the other hand, if assembly receives 1000 parts and only 100 are

    required then the remaining 900 will have to be stored somewhere on the

    assembly area. If assembly receives 100 parts and 100 parts are required there is

    nothing left to store no need for the storage space and no need to manage the

    parts at a later date.

    Production should be scheduled in easy to manage time intervals

    As the performance measurements are drawn from the production schedule,

    scheduling the production in short time intervals means that any potential

    problems will be detected very early and can therefore be easily fixed. On the

    other hand, if the progress is only assessed once a month, by the time the

    potential problem is detected it may already be too late to correct it.

    43

  • 8/8/2019 Lean Implementation Guide

    44/51

    Production schedules should be co-ordinated

    In cases where there are multiple components that make up an assembly, the

    production of the individual components should be co-ordinated so that they are

    available for the assembly at relatively similar times. For example if socket

    assembly requires a ball pin and a socket, the matching ball pin and the socket

    need to be available at the same time in order for the assembly to be completed.

    If only one of the parts is available the assembly can not be completed until the

    other part is available as well.

    44

  • 8/8/2019 Lean Implementation Guide

    45/51

    Step 13. Performance measurement

    In order to effectively control the production process it is important to measurea number of important aspects. The most important benefit of the performance

    measurement activities is that they highlight the progress against the intended

    target. Frequent and focused measurement of the performance will help to

    establish whether the intended target will be achieved as well as identifying

    issues that, if unattended, will result in the company failing to meet its targets.

    It is recommended that the performance should be measured frequently in

    order to identify any potential problems before they escalate to the point

    where there isnt enough time to bring the production back on track.

    One of the simplest forms of performance measurement is hourly output

    measurement table, as shown below:

    StartThe objective of the table is to measure the output hour by hour and compare

    it against the target value. Based on the results the company can then decide

    if any further actions, overtime for example, are required to bring the

    production back on track. The same principle can be used to create weekly,

    monthly and so on, performance measurement tables. The principle is that

    you set the target production quantities for a given period of time and then

    compare the actual performance against the targets.

    Performance measurement is a very important aspect of the production

    control as without it is very difficult to establish whether the company is

    45

  • 8/8/2019 Lean Implementation Guide

    46/51

    meeting its targets. Additionally, if the performance is not assessed in a timely

    manner, by the time problems are highlighted it may already be too late to fix

    them.

    Performance measurement can be applied to a variety of production aspects:

    Operator skills matrix

    o Skill level

    o Ability to perform variety of tasks

    o Job rotation

    Output per employee

    Total monthly output

    Delivery performance

    Schedule adherence

    5S performance

    Rejects

    Rework duration

    Changeover duration

    Work in progress level

    Inventory level

    Product lead time

    Machine downtime

    o Planned

    o Unplanned

    Warranty claims Customer complaints

    Absenteeism

    Accidents at work

    Example of a performance measuring chart used within Pailton is shown below:

    (Bevel gear cell, August 2006, week 1)

    46

    Inc

    rease

    De

    crease

  • 8/8/2019 Lean Implementation Guide

    47/51

    Same type of information can be shown in following format:

    Monthly production - August

    0

    500

    1000

    1500

    2000

    2500

    3000

    1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

    Day

    Quanti

    Required Total

    Actual Total

    By frequently monitoring the production of bevel gear it was possible to spot

    problems very early and then put corrective measures in place overtime, night

    47

  • 8/8/2019 Lean Implementation Guide

    48/51

    shift, quality inspection, quarantine poor quality raw material, change the

    production sequence etc. Performance measurement, combined with some

    additional improvements, has resulted in the bevel gear cell completely

    eliminating the production arrears.

    48

  • 8/8/2019 Lean Implementation Guide

    49/51

    Step 14. Visual management

    The purpose of the visual management is to communicate important information

    to relevant people but in a quick and easy to understand manner. In order to

    demonstrate this concept we will use an example from the bevel gear cell. In

    order to communicate the production schedule a simple storage rack was used:

    In addition to the storage rack a following chart was also created:

    49

    Wednesday

    3564

    Thursday

    3546

    Wednesday

    3564 (2)

    Friday 3546

    (2)

    Wednesday

    3564

    Thursday

    3546

    Wednesday

    3564Friday 3546

    Tuesday

    3564

    Thursday

    3546

    Wednesday

    3564Friday 3546

    Tuesday

    3564

    Thursday

    3546

    Wednesday

    3564

    Thursday

    3546

    Tuesday

    3564

    Tuesday

    3564 (2)

    Monday

    3534

    Monday

    3534

    Tuesday

    3564

    Monday

    3564

    Tuesday

    3534

    Tuesday

    3534

    Monday

    3564

    Monday

    3564

    Tuesday

    3534

    Monday

    3564

    Monday

    3564

    week 3 as per schedule

    week 4 as per schedule

    Week 4

    Week 3

  • 8/8/2019 Lean Implementation Guide

    50/51

    Each box on the chart represents a location for the plastic box in which bevel

    gears are stored after they are complete. At the beginning of the week the

    operator will load the rack with the required number of the boxes. Each box

    will also have a corresponding label which specifies the gear part number.

    During the production the operator will remove a plastic box as specified by

    the diagram, i.e. on Monday the operator will produce bevel gear part number

    3564. If the production is on target, at the end of working day on Monday the

    four locations on the rack marked as Monday will be empty. If the marked

    locations are not empty it will be a clear sign that the production is behind. On

    the other hand, if the location marked as Tuesday is empty that will mean that

    the production is ahead. So, the rack and the diagram tell the operator what to

    produce and when to produce it. Also, they tell the production management

    whether the production is on target or not simply just by comparing the

    planned diagram against what is physically on the rack. Visual management

    on the bevel gear cell has also been extended beyond the one week period:

    50

  • 8/8/2019 Lean Implementation Guide

    51/51

    Monthly production - August

    0

    500

    1000

    1500

    2000

    2500

    3000

    1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Day

    Quantity

    Required Total

    Actual Total

    Just by comparing the planned against actual line, production management

    can determine if the production for the month is on target and then can decide

    if any further measures are required.