lean manufacturing

Canada Post Puts Its

Stamp on a Lean Transformation

Mohammed Ajmal Sheriff.F

m.Tech-manufacturing engineering.

b.s.abdur rahman university.3/10/2013 1

LEANMANUFACTURING

LEANMANUFACTURINGCanada Post Puts Its

Stamp on a Lean Transformation

3/10/2013 2

CALGARY MAIL PROCESSING PLANT

•Built in 1975•350,000 sq.ft•430 employees on three shifts daily and weekends•Processes 425 million pieces of mail annually•One of two mechanized processing plants in Alberta

Lean

Manufacturing



b.s.abdur rahman university.

“I used to think that we weren’t a manufacturing company; we didn’t produce anything,” “but you can lean out mail operations. What we’re looking for is flow; in one door and out another.” said Don McLellan, director, mail operations, at the Calgary facility.

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Traditional manufacturing

WITH

Postal operation

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CUSTOMER ORDER & RECEIVE PRODUCT

RAW MATERIAL

MANUFACTURING PLANT

CUSTOMER SUPPLIESMATERIAL/PRODUCT

MAIL PROCESSING PLANT

END CUSTOMER

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Major problems

• More Takt time• More Cycle time• More Conveyor system• More maintainance• Back injuries to employees• Jammed parcels

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Closer Look :

• Batch and Queue postal operation had many waste• Like wait time of letters and parcel to be transported and processed.• Large batches of mail require excess space, equipment and handling.• Moving mail faster doesn’t improve cash flow, but it does reduce the number of containers, forklifts and conveyors.• Waste motion.• Missorted letters of parcels are equivalent to defects and rework.• “We look more at flow because we have no control over what comes in at any point in time.” Flow between processes is maintained by FIFO (first-in, first-out) lanes., said CarliSanderson, manager projects, at Calgary.

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Four stream:

• Letters• Parcels• Express mail• Publications and advertising mail

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“Each value stream has had success with applying lean,” said McLellan.

Here’s a look at how it was done in pubs and ad mail.

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Sweating the details:

• Value streamAction required to bring a product from concept to

Launch and from order to delivery.

• Value stream mappingPrevious-state mapCurrent-state mapFuture-state map

• Operator balance chart (OBC)• Standard Work Document

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Sample Current-state map:

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Sample Current-state map:

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TAKT TIME:

`

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Team members observed and timed operators lifting bags, reading destination tags, opening bags, dumping out the bundles of mail, reading addresses,

tossing bundles of mail into containers, etc. T=24Sec

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Operator Balance Chart (OBC):

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Conveyor system:

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STANDARD WORK DOCUMENT:

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Lift assist arm :

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Score for publications and

Advertising Mail cell:

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RESOLVED PROBLEMS:

• 3.2 million square feet of space freed-up for consolidation, reducing reliance on leases

• 10 years of consecutive profitability • Returned dividends to the Canadian government each year, including $59 million in 2005 • Reduced reliance on material handling equipment, overhead conveyors, forklifts, etc. • Dramatically reduced on-floor inventories, reducing lead time, and improving quality • Freed-up capacity and an increase in available machine time • Improved labor relations –no labor disruptions since starting lean (The company said no one would lost their employment because of lean.)

Lean

Manufacturing




Thank You



b.s.abdur rahman university.3/10/2013 17

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