Lean Manufacturing Concepts Applied to Logging Businesses

Brian K. BrashawUniversity of Minnesota DuluthNatural Resources Research Institute

John McCoyEdge Forestry

2007 Logger ConferenceMinnesota Logger Education Program

OverviewHigh Performance Enterprise

The Competition is Fierce

Every morning in Africa, a gazelle wakes up. It knows it must run faster than the fastest lion or it will be killed. Every morning a lion wakes up. It knows it must outrun the slowest gazelle or it will starve to death.

It doesn’t matter whether you are a lion or a gazelle, when the sun comes up, you had better be running.

Presentation Overview

Overview of lean manufacturing8 WastesLean tools

Examples of lean wood products companies

Is any of this relevant to logging?

Natural Resources Research InstituteUniversity of Minnesota Duluth

NRRI Mission“To enhance near-term economic development of Minnesota’s natural resources in an environmentally responsible manner.”

Forestry/Forest Products works with 150+ companies and cooperators/year in Minnesota, Wisconsin, the Great Lakes region and throughout the world.

Wood Industry Sectors Served by NRRI

PrimaryLumber, OSB and composites, Paper residues, Pulp

SecondaryCabinetryMillwork and Fenestration (windows)Recreation ProductsWood FlooringWood FinishingFurniture (residential and office)Store fixturesHousingTransportation

Key Industry Issues in the Midwest

300,000+ employed in MN, WI, MI, IA

100,000 in primary (logging, lumber, paper and composites)200,000 in secondary (fenestration, millwork, cabinetry, flooring, furniture, and store fixtures among others)

Key Industry Issues

Slow implementation of new technology and best manufacturing practices

Key Industry Issues

Imported products/overseas manufacturing

Key Industry Issues

Reduction in resource availabilityHigh fuel costsHigh stumpage costsForest ownership changesSignificant equipment/technology investments

How can we improve?

NOTOCSix SigmaTPSAgileTQMLean Manufacturing

To help companies understand and implement lean . . .Our efforts have focused on:

Building capacity using wood specialistsCustomized wood industry manufacturing simulationsTraining in lean principles and transformationsTours of best practicesFacilitating initial project teams

Kaizen blitzesMultiweek events

Lean Manufacturing

Introduction toLean Building Blocks

Horner Flooring Company

Team “Panel Pushers”May 18, 2004

What is Lean Manufacturing and Continuous Improvement?

Lean Is ---

A business system for organizing and managing product development, operations, suppliers, and customer relations using systematic change and continuous improvement.

4 P’sDevelop long-term thinking and clear philosophy.The right process will produce the right results.Add value to your organization by developing your people and partners.Problem solving can drive organizational learning.

Lean

By accomplishing these activities we see more employee involvement

The ultimate Goal increased profit and competitiveness

The Work

Understand your value stream.Develop “eyes for waste” and remove it.Create process stability and flow.Standardize work and use visual controls.Change your culture by developing your people and partners.Become a learning organization through relentless reflection and continuous improvement.

Competitiveness = Time

“One of the most noteworthy accomplishments in keeping the price of Ford products low is the gradual shortening of the production cycles. The longer an article is in the process of manufacture and the more it is moved about, the greater is its ultimate cost.”

Henry Ford, 1926

Historic Ford Sawmill, Alberta, Michigan

Competitiveness = Waste

TPS is a management system in which the people are fully expected to fully utilize the facilities and machines to satisfy customer requirements while working towards absolute elimination of waste.

Taiichi OhnoPresident Toyota Motors

What is Value-Added?

Anything that someone is willing to give up or use resources for…

What is Waste (Non-Value)?

Anything that consumes resources without returning any value

Many of these wastes might still be considered necessary

Time In Manufacturing

5%

95%

Value AddedNon Value Added

Wood Education and Resource Center --- Princeton, WV 8-10 August, 2005

Daily

Stacking Drying Planing Shipping

Weekly

Customer

ProductionControl Weekly

Orders

PricingReport

TimberSale Inquiry

InvoiceWeekly

Schedule

C/T=6m C/T=3m F/T=15d C/T=2m

5 days

6 min

.5 days

3 min

22 days

15 days

15 days

2 min

15 days

VA = 15 dLT = 57.5 d

I35 MBF

I1.5 MMBF

I1 MMBF

I1 MMBF

1.36 MMBFmonthly

I374 MBF

Sawmilling

The Seven Deadly Wastes + 1

DefectsOverproductionWaitingNot using the talents of our peopleTransportationInventoryMotionExtra processing

Waste of Making and Correcting Defects

Money and time wasted to find and fix mistakes/defects

Waste of Overproduction

Making products Faster than needed!Making products Sooner than needed!Making More product than needed!

Waste of Waiting

Time lost when people, material or machines are waiting . . . . . . . .

Waste of not using the talents of our People

Considered by many to be the greatest waste . . the wasted potential for improvement that results when the people doing the work are not asked for their ideas on improving the manufacturing process.

Waste of Transportation

Transporting parts and materials around the plant

Waste of Inventory

Material in excess of the one-piece required for production

Waste of Motion

Any movement of people or machines that does not add value to the product.

Waste of Extra Processing

Activities that add no value to the product or service from the customer’s point of view

Visual example of a Lean OfficeValue Stream Walk-through

Current Process

PurchaseOrder

WorkOrder

Receive PO

Check Pricing

Check Date

Call Customer

Wait for Information from Customer

Receive Information

Create Yellow Sheet

Enter Partial Order Information

Copy Yellow Sheet

Deliver Yellow Sheet to Production Control

Deliver Yellow Sheet to QC

Wait for QC

Receive information

Wait

Look up Revision

Record Revision

Pull Print

Compare Information

Record Information

Log Information

Return Print

Deliver to Customer Service

Wait

Sign

Deliver to QC

Wait

Place in In Box

Wait

Make Copies

Wait

Highlight Recipients

Stamp Print

Staple Print

File

Deliver to Customer Service

Deliver to QC

Deliver to Tool Room

Deliver to Operations Manager

Deliver to Production Control

Wait

Confirm Date

Confirm Inventory

Create Sales Order

Create Work Order

End of Process

44 Process Steps5 People Involved

8 Waits1897’ of Travel

Typically 2-4 Weeks to Complete

New Process

Receive PO

Check Pricing

Call Customer

Create Sales Order

Look up Revision

Compare Prints

Check Material

Check Date

Create Work Order

End of Process

10 Process Steps1 Person Involved

0 Waits0’ of Travel

26 Minutes to Complete

Lean Building Blocks

MappingStreamValue

5S

Cellular/FlowPull/Kanban

Changeover Reduction

Teams

Supermarkets Quality

Batch Reduction

Standard Work Plant Layout

Visual Control

Continuous Improvement

TPM

Teams

ScroungeStealStashScrambleSearch

5 “S” – The 5 Pillars of the Visual Workplace

Sort – Clear out rarely used itemsStraighten – Organize and label a place for everythingShine – Clean itStandardize – Create procedures to maintain the first 3S’sSustain – Use regular audits.

Mill Work Benchs Before

After

Standard Work

Operations safely carried out with all tasks organized in the best known sequence, using the most effective combination of:

PeopleMaterialsMethodsMachines

PPE:9/5/2006 Tools:

Manager: Supervisor:Date: Date:

Auto Manual Wait Walk

Safety Poka Yoke In-Progress Stock

Use shadow markers to determine the board's width. Change the controls to accommodate the size.

5 s

Keep hands and loose clothing clear of log while it enters the Bull Edger.Feed into machine5

10 s

5 s1 Receive logs.

Check both sides of the log before running through the bull edger. If the log does not meet length or yield specs discard it in the slab chain.

Inspect logs.2

Take the logs from the Scragg and inspect the trimmed off sides. All waste and trim should go in the slab chain.

Key Quality Time Totals 0 25 s 0 0

7 Clean machine.

Periodically throughout the day and at each shift change clean the bull edger and the area surrounding it, especially the floor. This helps prevent accidents.

Sharpen the bull edger blades as needed or during downtimes as a preventative maintenance tool. Refer to the standardize procedure sheet for sharpening instructions.

Sharpen blade.6

5 s

4

3 Move to feeder Move log to bull edger feeder and line up on green line.

Determine size.

Work Elements Key Points Safety, Quality, Technique, Cost

Time Elements

Breakdown

Work Area Layout

Company: Cass Forest Products

Document #: Safety glasses, Steel toe bootsDate:

Approved By:

Standardized Worksheet Bull Edger Page 1 of 1

No.

This row of buttons determines the log widths.

Log feeds into here.

Shadow marker.

Plant Layout to create Flow

G L U EB O O T H

R u c k le s G u i l l o t i n e

Scrap

Clipper

SC

ISS

OR

LIFT

Table

Table

C H A L L E N G EG U IL L O T IN E

LO

NG

DE

IL

SP

LIC

ER

Head

Clipper

Table

Table

V e n e e rIn s p e c t i o n

SC

ISS

OR

LIFT

S i n k

K N IF E G R IN D E R

S t o r a g e C o n v e y o r V e n e e r S t r ip s

R i p S a w

B a n d S a w

D E I LS P L I C E R

Ruckles

Jointer

F I N I S H C L I P P E R

H O GS C R A P C O N V E Y O R

S U P VO F F I C E

D E I LS P L I C E R

CH

ALL

ENG

E

GU

ILLO

TIN

E

V e n e e rIn s p e c t i o n

V e n e e rIn s p e c t i o n

S t o r a g e C o n v e y o r V e n e e r S t r ip s

Visual control --- Like shelves in a supermarket, stock is replenished based on demand (customers go there to “shop”)

Communication between links in value stream w/o a written production schedule

Supermarkets

Filled supermarket

Changeover ReductionDefinition: The time between the last good piece off the current run and the first good piece off the next runBefore Shigeo Shingo’s “Single Minute Exchange of Die” (SMED), typical setup tasks and time breakdowns:

5%

15%

30%

50%

Preparation, after processadjustment, checking andmoving materials, parts andtools

Removing and mounting ofparts and tools

Machine measurements,settings, calibrations

Trial runs and adjustments

Visual Control

Total Productive Maintenance

A total quality management strategy focusing on improving equipment effectiveness and reliability. It is upper level directed and bottom driven.

Reduce maintenance costsEliminate equipment downtimeIncrease productivityAchieve a clean and safe workplaceProvide proper trainingEstablish open communicationPromote operator ownership of equipment Measure maintenance performanceSustain the improvements and gains

Sounds good…but how is this relevant for logging?

Continuous Improvement

A philosophy and a process in all organizational operations practiced by all employees.A creative methodology to increase the quality and value delivered to customers.A common sense, low cost approach to improvement.Little up, every day…

Three Improvement Systems

TIME

IMPROVEMENT

Co. B - Innovation Only

Co. C - Innovation, Standards, CI

Co. A - None

Every Problem is an Improvement Opportunity!

Few large issues

Few medium issues

Many small issues

Adapted from the Toyota Way Fieldbook (Liker and Meier 2005)

Typical companies

Few large issues

Few medium issues

Many small issues

Adapted from the Toyota Way Fieldbook (Liker and Meier 2005)

True lean improvements

Few large issues

Few medium issues

Many small issues

Adapted from the Toyota Way Fieldbook (Liker and Meier 2005)

The Work

Understand your value stream.Develop “eyes for waste” and remove it.Create process stability and flow.Standardize work and use visual controls.Change your culture by developing your people and partners.Become a learning organization through relentless reflection and continuous improvement.

Wood Education and Resource Center --- Princeton, WV 8-10 August, 2005

Delimb Skid Slasher Loading

Daily

Customer

ProductionControl

OrdersTimberSale Purchase

WeeklySchedule

C/T= C/T= C/T=

VA = d

LT = d

I I I I

Cords/week

Feller - B

C/T=

Eyes for Waste

Defects / fixing a mistakeOverproductionWaitingNot using the talents of your employeesTransportationInventoryMotionExtra or inappropriate processing

Eight Wastes

Defects / Mistakes

Violating sale requirements (rutting, not leaving species, outside boundary, damage to remaining trees, etc.)

Not understanding quality in a tree or logBringing rot into yardTree length vs. 100” (decay is hidden)Loss of weight/quality during summer

Logs dragged through dirtOut of spec logsMultiple handling damages logsLog split, shear potentiallyButt swell causes tree to be cut higher

Leaving “merchantable” or usuble material in the woods

Chipper Frass

ChipsLogging Debris

Timber sale losses

Lump sum sale volume to weight payment conversion loss

Customer receives lower value & increased process cost

Equal volumes of SpruceSound spruce aboveRed rot spruce below = 50% weight of sound spruce

Timber sale losses

Lump sum sale volume to weight payment conversion loss

Customer receives lower value & increased process cost

Sound Aspen aboveAspen with beginning & advanced decay (not dry rot)Rot in aspen usually retains water – aspen weight was 73% of sound aspen weightFactoring in dry rot & holes would likely increase wt loss to 30%

Overproduction

Winter logging 70+%Time limits – contract languageInventory volume is a target. Usually more wood than expected.Weather and road restrictionsMills over contract to ensure wood supplySpeculationContracts

WaitingWaiting for information from the owner, forester, county, buyer.Unbalanced production flow between feller-buncher, stroke delimber, skidders and slashers

Logs at landings waiting for pickup and deliveryTrucks waiting in wood to loadTrucks waiting at mill to unload

Wait for equipment, parts, maintenance, service truckRoad clearing, layout of road Transport to next job.Snow removal

Weather

People Talents (Unused employee creativity)

How well do we communicate between crews?Lack of standardized workDon’t track downtimeLack of operator driven maintenance Additional training opportunities

BenchmarkingBest practices, maintenance, simulation, techniquesMetrics productivity measurements

Current training Double shifting

Transportation or conveyance

Equipment is not taking an efficient entry rout or travel routsMovement around site, skiddingEmpty trucks lack of backhaulTrucks crossing taking wood to marketPlanning road vs. skidding distance

Motion or unnecessary movement

Multiple loading/unloadingPiles falling overPicking up/setting down in conventionalIn/out of equipment for maintenanceLooking for equipment, paperwork, etc.Organization of maintenance van, home, base, shopsMissed wood, visuals lackingSort in woods vs. sort at landing

Fellerbunchers, delimbers or slashers sort?CTL or forwarders sort?

Transportation, motion

Left: Dozer clears path around sale boundary for feller-buncherRight: GPS tracks feller-buncher as operator figures out lay of land & wood

People talents, motion

CTL processor GPS tract – 2 days.Operator efficiency can be increased with low cost, user friendly GPS technology coupled with basic operational planning.All subsequent operations – truck access, skidding, etc. benefit.

Sample of data available from GPS track log

**1221 feet total distance covered in one hour

3/12/07 Feller-Buncher movements in Feet

per Minute - From 10am to 11am

0:00:00

0:00:43

0:01:26

0:02:10

0:02:530:03:36

1

Distance (ft)

Tim

e (M

in:s

ec)

38 ft15 ft17 ft66 ft36 ft16 ft14 ft48 ft18 ft11 ft33 ft16 ft8 ft

Excess Inventory

Winter logging creates large inventoriesShutdowns by customersRoad restrictionsStanding inventory of purchased wood not loggedTops/ limbs/ biomassCut but not hauled, landings, concentration yardsCTL cut but not forwarded, and deliveredWeather (switching from winter to summer wood)

Extra or Inappropriate Processing

BMP’s – regulatory Cutting to 100” vs. tree length

Loses ?%Road building vs. skiddingBidding chaseOpen bid vs. sealed bidFixed length cutting

Variable length improves efficiency by 26%

Lean Building Blocks

MappingStreamValue

5S

Cellular/FlowPull/Kanban

Changeover Reduction

Teams

Supermarkets Quality

Batch Reduction

Standard Work Plant Layout

Visual Control

Continuous Improvement

TPM

Changing the culture . . Lean is not Mean!

The Challenge

“Change is never easy… particularly when things are going well”

“By re-inventing ourselves...and our companies...regularly...we will better serve our customers...prosper...and preserve our planet for future generations.”

Fujio ChoPresidentToyota Motor Corporation

Lean Manufacturing for the Wood Products IndustryBayport Public Library --- Bayport, MN 11-13 December, 2006

CitizensAgainst

EverythingVirtually

Assistance is Everywhere

www.lean.orgLocal lean manufacturing extension partnershipsTalk to industry adoptersBuy a book and get startedAttend a short courseHordes of lean consultants

Lean Implementation – How to Do It?

Find a change agent. This could be you—or anyone of the organization: the key is that this must be a leader who will take personal responsibility for the lean transformation. Get the lean knowledge. It’s important to draw from a true and thorough source of lean, whether from an ex-Toyota sensei or some other reputable source, so your internal change agents master lean thinking to the point where it becomes second nature. And always implement lean techniques as part of a system, not as isolated programs.Find or create a crisis. Unfortunately, few if any firms will take the necessary steps to adopt lean thinking across the board unless they are facing a crisis. Forget grand strategy for the moment. Start by simply eliminating waste everywhere possible. Map the value streams, beginning with the current state of how material and information flow now, then drawing a leaner future state of how they should flow and creating an implementation plan with timetable. (For the best resource teaching you how to do this, try Learning to See). Begin as soon as possible with an important and visible activity. Demand immediate results. As soon as you’ve got momentum, expand your scope. Link improvements in the value streams and move beyond the shop floor to office processes. Practice kaizen, or constant improvement, relentlessly!

#2 – Create/Implement the Plan

Training for ownership and managementLean manufacturingContinuous Improvement

Create the training planDocument expectations of employeesEstablish criteria for lean project selectionsDefine the structure for task teamsCreate a team and get a project completed.Assess results and continue to reap the benefits!

Building the Capacity of Minnesota’s Wood Products Industry

Kaizen Blitz (3-5 days)

ProduceImproveImplementObserve,Organize,& Define

Train

Building the Capacity of Minnesota’s Wood Products Industry

Multi-week blitzesStep 1 - Company selects a project

Can be completed in 8 weeksMust be measurable with significant impactBoundaries established

Step 2 - Meeting of team participantsCreate team charterLean training– Continuous improvement– Lean manufacturing tools

– Value stream mapping– Pull inventory replenishment systems– Setup reduction– Cellular manufacturing

Building the Capacity of Minnesota’s Wood Products Industry

Multi-week blitzes

Step 3 - Team meetingsFacilitate weekly team meetingsMonitor team progressAssure supportProvide assistance - training, advice

Step 4 - Meeting of all team participants plus company top management

Team presentations to the groupFull team participationUse visuals - Powerpoint presentation, video, digital photos, etc.Metrics of accomplishment

Lean Outcomes

Reduced work in progress25-90%

Decreased lead times25-90%

Increased floor space10-80%

Workforce developmentIncreased salesCost reductionsImproved quality

5-80%Improved worker motivation and productivity

25-70%

Economic

Economic

Stability and

Stability and

Growth

Growth

Ongoing Activities

Our team is continuing to work with new companies and is cooperating with our outstanding Manufacturing Extension Programs in Wisconsin, Minnesota, Michigan and Iowa by providing wood industry specific lean training and implementation assistance.

Thank you!

Project funding provided by USDA Forest Service WERC.