lean manufacturing

Lean Manufacturing

Professor Deborah NightingaleSeptember 26, 2005

Source: Tom Shields, Lean Aerospace Initiative

Content

• General lean concepts in factory design

• Manufacturing Video

• Manufacturing System Design Framework

• Conclusions

ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology

© Deborah Nightingale, 2005 Massachusetts Institute of TechnologyESD.61J / 16.852J: Integrating the Lean Enterprise

Lean from the Toyota Production System Shows How It All Relates

JIT

JI DOKA

Leveled & Balanced Production

Cost control through the elimination of waste

TPS

KaizenStandardized Work

Right Qty Right Mix Right Time

Perfect Quality

Engaged and Creative Workforce

Aerospace Factory Designs Have Many Things to Consider

Inputs

• Production volume

• Product mix

• Product design

•

• Complexity

• Process capability

• Type of organization

•

•

•

•

•

•

•

Factory Design

Focus

Frequency of changes

Worker skill/knowledge Here

Outputs Cost Quality Performance Delivery Flexibility Innovativeness


Benefits from a Focus on Process Rather Than Operation Improvements

• Operations• Value adding • Transportation • Delay (2 types) • Inspection

• Factory Design • Layout choices • Operation policies • Process Technology • Tapping human

knowledge

X X Store in Warehouse

Move to Staging

Store at Staging

Move By AGV

Machine

X X Part B

Part A

Ope r atio n

Factory Design

I X

Storage Value Adding Inspection Transport

Types of Operations


Traditional Manufacturing

l Assembly

Center

i

Treat lyion and

Machining Center

MM

MMG

GGG

G G

L

L

L

L

L

L

DD D

D D

MC

MC D

1

4

2

3

5 10

7 6

8

9

12

13

11

Fina

Receiving, Incoming Inspect on,

and Shipping

Heat

Injection Molding Center

Component SubassembInspectTest Center

The material flow could take up to millions of different paths, creating waste of transportation and waiting at virtually every step.


Cellular Manufacturing

iing

Treat

MG

GL

D

M

M

G

G

LD

D D

MC MC

MG

GL

D

MG

GL

D

MG

GL

D

MG

GL

D

MG

GL

D

M

M

G

G

LD

D D

Work Flow

Receiving, Incoming Inspect on,

and Shipp

Heat

Injection Molding Center

Rather than route the materials required through the entire plant, materials flow to the head of each work cell, through each process in the cell, then to final assembly. This eliminates most of the transportation and waiting we would see in the traditional approach.


Only Understood Processes Can Be Improved

• Establish models and/or simulations to permit understanding • Ensure process capability & maturation • Maintain challenge of existing processes

Tools

• Five Whys

• Process flow charts

• Value stream mapping

• Statistical tools

• Data collection and discipline


Definite Boundaries Exist Between Flow and Pull

Flow • MRP used for planning

and control • Group technology • Reduce the number of

flow paths • Batch or single items • Inventory to buffer flow • Process control • Minimize space & distance

traveled with contiguous processing established

Pull • Takt time • Balanced production • Level production • Response time less than

lead time • Standard work • Single item flow • Correct problems

immediately - STOP if necessary


JILean Tools Can Apply even if

T System Not Logical • Value stream mapping • Work groups to implement

change • Visual displays and

controls • Error proofing • Standardized work • Quick changeover • Total productive

maintenance • Rapid problem solving • Self inspection • Five Sʼs

Source: J. Miltonburg, Manufacturing Strategy ©1995, p31.



Content




• Conclusions


Production Operations Transition-To-Lean Roadmap

Prepare

• Select initial implementation scope

• Define customer

• Define value -Quality, Schedule, and Target Cost

• Select initial implementation scope

• Define customer

• Define value -Quality, Schedule, and Target Cost

• Record current state value stream

• Chart product and information flow

• Chart operator movement

• Chart tool movement

• Collect baseline data

• Record current state value stream

• Chart product and information flow

• Chart operator movement

• Chart tool movement

• Collect baseline data

• Standardize operations

• Mistake proof processes

• Achieve process control

• Implement TPM• Implement self-

inspection• Eliminate/

reduce waste• Cross train

workforce• Reduce set-up

times• Implement cell

layout• Implement visual

controls

• Standardize operations

• Mistake proof processes

• Achieve process control

• Implement TPM• Implement self-

inspection• Eliminate/

reduce waste• Cross train

workforce• Reduce set-up

times• Implement cell

layout• Implement visual

controls

• Select appropriate production system control mechanism

• Strive for single item flow

• Level and balance production flow

• Link with suppliers

• Draw down inventories

• Reassign people• Re-deploy/

dispose assets

• Select appropriate production system control mechanism

• Strive for single item flow

• Level and balance production flow

• Link with suppliers

• Draw down inventories

• Reassign people• Re-deploy/

dispose assets

Define Value

IdentifyValue Stream Implement Flow

Implement Total System Pull

IMPROVED COMPETITIVE

POSITION

• Develop a future state value stream map

• Identify takt time requirements

• Review make/buy decisions

• Plan new layout• Integrate

suppliers• Design visual

control system• Estimate and

justify costs• Plan TPM

system

• Develop a future state value stream map

• Identify takt time requirements

• Review make/buy decisions

• Plan new layout• Integrate

suppliers• Design visual

control system• Estimate and

justify costs• Plan TPM

system

Design Production System

ENTRY

6/5/00

• Integrate with Enterprise Level

• Establish an Operations Lean Implementation Team(s)

• Develop implementation strategy

• Develop a plan to address workforce changes

• Address Site Specific Cultural Issues

• Train key people

• Establish target objectives (metrics)

• Integrate with Enterprise Level

• Establish an Operations Lean Implementation Team(s)

• Develop implementation strategy

• Develop a plan to address workforce changes

• Address Site Specific Cultural Issues

• Train key people

• Establish target objectives (metrics)

• Build vision• Establish need• Foster lean

learning• Make the

commitment• Obtain Sr.

Mgmt. buy-in

• Build vision• Establish need• Foster lean

learning• Make the

commitment• Obtain Sr.

Mgmt. buy-in

Phase 5 Phase 6Phase 1 Phase 2 Phase 3 Phase 4Phase 0

Adopt Lean Paradigm

Phase 7

Strive for Perfection

Expand Internally/Externally

Enterprise / Production System Interface• Financial• Information

• Quality• Safety

• Training and Human Resources• Workforce/Management Partnership

+

• Institutionalize 5S• Institute Kaizen events• Remove system barriers

• Expand TPM• Evaluate against

target metrics

• Evaluate progress using lean maturity matrices

• Team development• Optimize quality

Top Leadership

LeanRoadmap

Supply Chain/External Environment• Legal• Environmental

Commitment

• Procurement• Engineering

• Government Reqd. Systems(MMAS, EVMS, etc.)

++

++

© 2000 Massachusetts Institute of Technology


Content




• Conclusions


Background

• Matured aerospace industry

• Industrial innovation theory

• Implications on the aerospace industry


Matured Aerospace Industry

• Customers demanding specific capabilities

• Cost and affordability moreprominent

• Innovation characteristics have changed


ʼ iInnovation Model

Utterback s Dynam cs of

• Rate of productinnovation highest during formative years

• As product matures rate of process innovation overcomes product innovation

• Very mature products have low levels of both product & process innovations

Source: William Abernathy & James Utterback, 1978


Theory in Application N

umbe

r of F

irms

Fluid Phase:

innovation, many firms

founded shifts to process

Emergence of theign

Specific Phase:Stable, small number of firms

Destabilizing changes in technology

Utterbach's Dynamics of Innovation

Rapid technology Transition Phase: Shakeout, competition

Dominant Des

competition shifts to price

or process can destroy industry!

Time Source: Data (cars), from Entry and Exit of Firms in the U.S. Auto Industry: 1894-1992. National Academy of Science: theory concepts from Utterback, Dynamics of Innovation, 1994


Domi

1958

1995

nant Design?


Dominant Design?

1953

1972

2002


0

10

20

30

40

50

0

5

10

15

20

25

30

35

1860 1880 1900 1920 1940 1960 1980 2000

Year

Aeronautics: Jet transport and jet fighter-bomber

Cars: enclosed steel body

Typewriters: Open, moving carriage

Natural progression?

Government intervention motivated by cold war

Num

ber of major U

.S.

Aerospace com

panies

Industrial evolution and the emergence of the dominant design

Num

ber o

f maj

orty

pew

riter

com

pani

es

80

60

40

20

Num

ber o

f maj

orau

tom

obile

com

pani

es

l

Extension of Theory to the Aerospace Industry

Source: Murman, et a ., Lean Enterprise Value, 2002


Result: Heritage equipment, facilities and mindsets drive manufacturing system design

IndustryImplications for the Aerospace

• Producibility and cost are more competitive factors

• Manufacturing inputs should carry more weight

• Emphasis should be on process innovation

• Firm core competencies must match industrial maturity

• Manufacturing strategy cannot be stepchild to platform strategy

Result: Heritage equipment, facilities and mindsets drive manufacturing system design


A holistic manufacturing system design framework to ensure process considerations are integral

to the product development processl

Proposal

A holistic manufacturing system design framework to ensure process considerations are integra

to the product development process

Characteristics • Uses principles of systems engineering • Visual depiction of “design beyond factory floor” ideas • Manufacturing as part of the product strategy • Manufacturing system design is strategy driven, not product

design driven • Combines multiple useful tools • Provides insights into order and interactions


DesignManufacturing System

• Manufacturing system “infrastructure” design • Manufacturing strategy • Operating policy • Partnerships (suppliers) • Organization structure details

• Manufacturing system “structure” design• Buildings, location, capacity • Machine selection • Layout • WIP


Stakeholders

Corporate Level

Business Unit

Product StrategyProduct StrategySuppliersSuppliers Product DesignProduct Design ManufacturingManufacturing MarketingMarketing

[Interpret] [Seek approval]

Manufacturing SystemManufacturing System DesignDesignSociety Employees Mgmt Govt.Suppliers Customers Stockholders

(Corporate Strategy)

(Business Strategy)

Requirements/Considerations/Constraints

OptimizingManufacturing System Design/Selecti

lement (pilot)

on

Mod

ifica

tions

Imp

Evaluate/Validate

Stakeholders

Corporate Level

Business Unit

Product Strategy Product Strategy Suppliers Suppliers ProductProduct DesignDesign Manufacturing Manufacturing MarketingMarketing

Requirements/Considerations/Constraints

Manufacturing System Design/Selection

Implement (pilot)

Evaluate/Validate

[Interpret][Seek approval]

DFMA, IPT3-DCEConcurrent Engineering

• VSM • Kaizen• Trial & Error• Kaikaku

- Miltenburg, - 3P, - 2D plots, - MSDD - AMSDD - design Kaizen

Manufacturing System Manufacturing System DesignDesign

Mod

ifica

tions

Fine Tune

Finalized Product Design

Make/BuyRisk-sharing Partnerships

- Analytical Tools, - Simulation Tools

Customer NeedsTechnical FeasibilityFeasible performance guarantees

Following the framework process will result in thedevelopment of effective manufacturing system that

meets the goals of the corporation (Vaughn & Shields)

Insights from the Framework

• Linkage of strategy and manufacturing system design

• Three important characteristics• Phase presence • Phase timing • Breadth across functions

(Vaughn & Shields)

Following the framework process will result in the development of effective manufacturing system that

meets the goals of the corporation


•

Conclusions

Competitive advantage from manufacturing excellence (enterprise strategy)

• Performance more closely related to how system designed (not production volume)

• Manufacturing as a true participating partner with the other functions (coequal status)


lean manufacturing

Automotive

lean enterprise page

g g ld d d work flow

dd d d d mc mc d

lean roadmap

g g ld d d mc mcm g

ji lean tools

materials flow

mmg ggg g g