21-Aug-09Vative - Truly Innovative 1

ChangeChangeChangeChange

Without it, at best we remain the same,

with it, comes the opportunity to improve!!

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Previous Findings

Findings of VSM/VSD start 2009 :

Implement KANBAN for internal production processes feeding main line (Implemented)

Controlled FIFO between processes (Implemented)

Finished Goods supermarket may be able to reduce in size with the introduction of a new level planning system (Implemented)

Investigate supermarket feasibility by 80/20 analysis (Completed)

Reduce or eliminate batch building and move to single piece flow to reduce overall inventory (Implemented)

Improve final testing cell utilization and procedure

Optimize layout to group together logical work cell (Implemented)

Reduce compressor defect rate

The current process has an excellent Kanban system for store materials

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Action Plans - Production

Approved by

Vative - Steven FarrugiaResponsible person

16/03/2009 to 12/08/2009 (5 months)Timing for implementation

1. Implement 5S, conduct time studies and develop Standard Operating Procedures for main processes

2. Improved production material flow and consolidate logical process steps to form balanced work cells

3. Implement KANBAN for production area. Work towards single piece flow systems with FIFO between stations

other4. Implement Lean metrics, OEE monitoring and establish KPIs.

Understand customer demands, set targets & monitor5. Implement continuous improvement program and empower teams

to improve without management6. Provide vision planning and goals for business

Improvement idea

1. Standardisation and consolidation of processes2. Process orientation improvements to flow within work cells3. Pull System implementation through productionOther4. Transparency of processes5. Continuous Improvement circles6. Associate involvement and empowerment

Opportunity

ProductionFunctional Area

14th January 2009Audit Date

LBHC link

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Project details

Project commencement date: 16/03/2009

•80/20 analysis

•Time studies and labour planning for all main production

•CAD Layout of plant and layout planning for optimisation

•Grouping of logical work cells and labour balancing

•Implementation of SOPs throughout production main processes

•Analysis of production Kanban system requirements

•Training and implementation of complete Kanban System including 2 bin systems in production

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Lean Business Health Check

Areas assessed were – Production and Associate Involvement

Overall Audit Results

0%

20%

40%

60%

80%

100%Process Orientation

Pull System

Perfect Quality

Flexibility

Standardization

Transparent Processes

Continuous

Improvement

Associate Involvement

and Empowerment

Current

Last Audit

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Health Check findings

1. Business processes are extremely flexible

2. Well established pull systems

3. Great process orientation

4. Some establish quality systems

Further overall opportunities are:

• Standardisation and consolidation of processes

• Transparency of processes

• Continuous Improvement circles

• Associate involvement and empowerment

LBHC link

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Total Project Savings

Total project savings:

• Reduced process time by 30.1% reduction (Target 10% reduction)

• Reduction in Work In Progress by 83% 576 to 98 pieces (target 80% reduction)

• Reduce lead time through production process by 92% from 31.2 days to 2.5 days (target 85% reduction)

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Project Teams

The following teams implemented specific projects:

Team 1A Production

Team 1B Final Packaging

Team 2A Stores

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Team 1A

Production Colour Coded Kanban System

Production/Assembly

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Project Scope and Objectives

Opportunity Statement:

Setup permanent work stations for each area

Introduce a color code system for each work station

Reduce Work In Progress inventory

Reduce process times

Reduce chance of missing tools

Project helps (Quality, Cost & Delivery):

Waiting times, Defects, Motion, Inventory & Space

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Project Steps

Implementation Steps:

1. Plan layout of production work stations considering process flow

2. Remove all unwanted items from work areas using white tags

3. Arrange all work stations using color coding system

4. Work out what tools were needed for each station and order tools

5. Set up shadow boards for tools and color code tools to match stations

6. Assist in setting up 2 bin system for materials at each station

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Project Outcomes

Planned Improvements:

1. Reduced process time by 10% (actual 30.1% reduction)

2. Reduction in Work In Progress by 50% (actual 83% reduction)

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Project Outcomes

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Project Outcomes

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Project Outcomes

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Project Outcomes

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Project Outcomes

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Some Other Improvements

Vacuum pump saving

Mobile Gluing Unit

Innovation of shop floor to combine heat cell and cold tank assembly station utilizing existing vacuum pump and eliminating the need to buy a second vacuum pump.

Saving = approx. $1500

Innovation of shop floor to make the hot glue machine mobile to allow for flexibility and storage under workstation. This makes the unit easily accessible when it requires refilling.

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Team 1B

Improved process layout

Final Assembly & Packaging Area

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Project Scope and Objectives

Opportunity Statement:

Reduce packaging time

Optimise packing flow and efficiency

Optimise inventory qantities, locations and layout

Project helps (Quality, Cost & Delivery):

Waiting times, Motion, Inventory & Space

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Project Steps

Implementation Steps:

1. Plan new layout

2. Relocate shelf and table

3. Optimise layout to support single piece flow

4. Shelf setup

5. Container dispense for systematic supply of parts

6. Container labelling and relocation

7. Floor marking and min/max levels

8. Implement 2 bin systems

9. Final modifications, measure savings and presentation

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Project Outcomes

Planned Improvements:

1. Reduced process time by 39% (actual 58% reduction 13 to 6 min)

2. Reduction in travel disctance 15% (actual 75% reduction 53m to 13m)

3. Reduced time to restock supplies (Savings including in above)

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Project Outcomes

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Project Outcomes

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Team 2A

Implement 2 Bin Production Supply System

Stores

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Project Scope and Objectives

Opportunity Statement:

Reduce inventory in production areas

Reduce lead time to supply parts

Create milkrun replenishment system to eliminate waiting time for materials

Project helps (Cost & Delivery):

Waiting times, Overproduction, Motion, Inventory, transport & Space

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Project Steps

Implementation Steps:

1. 80/20 analysis of parts supply from stores to production

2. Establish Bill Of Materials for each station and calculate replenishment qty for each part type for each station

3. According to calculations select appropriate bin sizes and determine color coding for each station, then purchase materialsas required

4. Design trolley for empty bin holding location and train all staff how to use new system

5. Setup and label all bins with part no., qty, location and station number and then fill with correct qty of parts

6. Setup and train involved people about milkrun

7. Measure project savings and present to management

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Project Outcomes

Planned Improvements:

1. Reduced Work In Progress 80% (actual 83% reduction 576 to 98 pieces)

2. Reduction in lead time to replenish parts 50% (actual 63% reduction 2 hours to 44 minutes)

3. Reduced space used by excess WIP and materials by 20% (actual 20% savings from 15 work stations to 12 work stations)

4. Cleaner and tidier work stations (See pictures)

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Project Outcomes

Before After

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Project Outcomes

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Project Outcomes

Before After