lean manufacturing techniques applied to product … -- product... · lean manufacturing techniques...

53
LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT PACKAGING APRIL 24, 2012 PETER L. KING LEAN DYNAMICS LLC

Upload: hoangliem

Post on 11-Mar-2018

226 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

LEAN MANUFACTURING

TECHNIQUES

APPLIED TO PRODUCT

PACKAGING

APRIL 24, 2012

PETER L. KING

LEAN DYNAMICS LLC

Page 2: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

2

AGENDA

What Is Lean?

Lean adaptations for process industry challenges

Lean Tools for packaging operations

1) Standard Work

2) Point Of Use Storage

3) 5S

4) SMED –changeover improvement

5) Package To Order

6) Value Stream Mapping

7) Product Wheels

© 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

Page 3: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

3 © 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

ORIGINS OF LEAN

Page 4: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

4 © 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

What is known as “Lean Manufacturing” or “Lean

Production” today is based heavily on manufacturing

principles developed by Toyota in the 1950s – 1980s

Toyota Production System

THE EVOLUTION OF LEAN

Page 5: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

5 © 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

Eli Whitney, Honore’ Blanc

- Interchangeable parts

Frederick Taylor - Scientific management

Henry Ford - Flow, velocity

Toyota - Mapping, Focus on Waste, Kaizen

MIT IMVP - “Lean” (1989)

Good summary of principles & benefits

Created high level of awareness

THE EVOLUTION OF LEAN

Page 6: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

6 © 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

THE ESSENCE OF LEAN

So what is TPS – what is Lean:

An intense focus on elimination of waste

An intense focus on the final customer and what he values

Manufacturing at a rate equal to customer demand ~ TAKT

A focus on the worker and the value he can bring

A strong value for FLOW

Lean philosophies can be summed up in 5 key principles

Page 7: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

7 © 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

LEAN FOCUS

Lean focuses on waste

Waste is eliminated by a

relentless pursuit of perfection

1. DEFINE VALUE IN

CUSTOMER TERMS

2. MAP THE VALUE

STREAM

3. MAKE WORK FLOW

4. FLOW AT THE PULL

OF THE CUSTOMER

5. RELENTLESSLY

PURSUE PERFECTION

Lean focuses on Value

Value is defined by the customer

Lean focuses on flow

Flow is at the pull of the

customer

Page 8: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

JUST-IN-TIME RIGHT PART, RIGHT

AMOUNT, RIGHT TIME

• Takt • Continuous Flow • Pull Systems • Quick Changeover • Integrated Logistics

OPERATIONAL STABILITY

LEVEL PRODUCTION - STANDARDIZED WORK

VISUAL MANAGEMENT

TOTAL PRODUCTIVE MAINTENANCE (TPM)

JIDOKA (BUILT IN QUALITY)

• Automatic Stops • Andon • Person-Machine Separation • Error Proofing • In-station Quality Control • 5 Whys

HIGHLY MOTIVATED PEOPLE

CONTINUOUS IMPROVEMENT

WASTE ELIMINATION

TPS

BEST QUALITY * LOWEST COST

SHORTEST LEAD TIME * BEST SAFETY * HIGH MORALE

THE TPS HOUSE – THE PRODUCTION SYSTEM

The Toyota Production System is often depicted as a house

Attributed to Fujio Cho, a disciple of Taichi Ohno

Page 9: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

9

FLOW

STANDARDIZATION & STABILITY

QUALITY

PEOPLE ENGAGEMENT

& CONTINUOUS

IMPROVEMENT

TPS

THE TOYOTA PRODUCTION SYSTEM (TPS) HOUSE

MEETING CUSTOMER NEEDS

WITH THE HIGHEST QUALITY IN THE SHORTEST TIME

© 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

Page 10: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

LEAN IS NOT ABOUT COST REDUCTION!

Lean, world-class athletes

getting into shape:

Don’t try to lose weight

Try to lose fat

Try to build muscle

10 © 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

Lean, world-class manufacturing operations

Don’t try to cut costs

Try to cut waste

Try to build muscle

A trained, capable workforce

Standardized, disciplined processes

Page 11: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

11 © 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

SEEING THE FLOW

VALUE STREAM MAPPING

Page 12: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

CUSTOMER

SERVICE

REPS

ORDER

GRANTS

MATERIAL

RELEASES

SALES &

OPERATIONS

PLANNING

DEMAND

MANAGEMENT

PROCESS

CUSTOMER FORECASTS

(QUARTERLY)

ORDERS

PRODUCTION

SUPERVISOR

CAPACITY FORECAST

(MONTHLY)MASTER PRODUCTION

SCHEDULE (MONTHLY)

DAILY PRODUCTION

SCHEDULE (WEEKLY)

SCHEDULE UPDATES (DAILY)

AGGREGATED

DEMAND

(MONTHLY)

CURRENT

INVENTORIES

Frequency

Lot Size

1 Car/Day

140K lbs

Transp time 7 Days

Frequency

Lot Size

1.8 Cars/Day

140K lbs

Transp time 7 Days

SUPPLIER 1

SUPPLIER 2

SHEET

FORMING

(4)

SLITTING

(3)

CALENDARING

BONDING

(4)

CHOPPING

(3)

WRAPPING

PACKAGING

LABELING 5 546

6

Order Lead

Time

# SKUs

1 Week

4

Order Lead

Time

# SKUs

1 week

6

Invtry

Days

# SKUs

322M sq Ft

42

2,000

Invtry

Days

#

SKUs

4000

7

1000

Invtry

Days

#

SKUs

3650 R

21

200

Invtry

Days

#

SKUs

2500 R

12.6

50

Invtry

Days

#

SKUs

6.3M lbs

16

6

15 Min

16 Days

17 Min

12.6 Days 21 Days

10 Min

7 Days

10 Min

3 M

8 Min

42 Days

CUSTOMERS,

DISTRIBUTORS

Quantity/time

TAKT

230M Sq Ft/Mo

320K Sq Ft/Hr

Lead time Exp 7 Days

Frequency

Lot Size

12 Trucks/Day

648K Sq Ft

Transp time 3 Days

KEY

K = 1,000

M = 1,000,000

B = 1,000,000,000

NVA Time = 99 Days

VA Time = 73 Min

Effective

Capacity 11.8

9.5TAKT

Utilization 80%

15 MinLead time

Yield 87%

90%Reliability

UPtime 73.6%

50# SKUs

Batch size 1 roll

9 daysEPEI

C/O time 1 hr

2 RollsC/O loss

Avail time 168 hr/wk

3 x 8 x 7Shift schd

(Master Rolls/Hr)

Effective

Capacity 8.9

8.3TAKT

(Master Rolls/Hr)

Utilization 93%

17 MinLead time

Yield 87%

98%Reliability

UPtime 61%

200# SKUs

Batch size 1 roll

13 daysEPEI

C/O time 45 Min

~ 0C/O loss

Avail time 168 hr/wk

3 x 8 x 7Shift schd

Effective

Capacity 10.3

7.2TAKT

(Bonded Rolls/Hr)

Utilization 70%

10 MinLead time

Yield 98%

95%Reliability

UPtime 69%

1000# SKUs

Batch size 1 roll

7 daysEPEI

C/O time 5 Min

~ 0C/O loss

Avail time 168 hr/wk

3 x 8 x 7Shift schd

Effective

Capacity 29

24TAKT

Utilization 83%

10 MinLead time

Yield 100%

98%Reliability

UPtime 98%

1800# SKUs

Batch size 1 Slit Roll

7 daysEPEI

C/O time 0

0C/O loss

Avail time 168 hr/wk

3 x 8 x 7Shift schd

(Slit Rolls/Hr)

Effective

Capacity 200

120TAKT

Utilization 60%

8 MinLead time

Yield 100%

98%Reliability

UPtime 98%

2000# SKUs

Batch size 1 Cut Roll

7 daysEPEI

C/O time 0

0C/O loss

Avail time 168 hr/wk

3 x 8 x 7Shift schd

(Cut Rolls/Hr)

RAW MATERIAL

ORDERS (MONTHLY)

RAW MATERIAL

ORDERS (MONTHLY)

SCHEDULE UPDATES (DAILY)

Information Flow

Material Flow

VSM COMPONENTS

Timeline

Data boxes

12 © 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

Page 13: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

13

LEAN THINKING

FOR PROCESS OPERATIONS

© 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

Page 14: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

PROCESS VS ASSEMBLY

Parts Manufacturing and Assembly

Automobiles

Cell phones

Computers

Power tools

Appliances

Aircraft

Medical instruments

Consumer electronics

Lawn mowers

Process Operations

Chemical reactions

Physical transformations

Mixing, blending

Extrusion

Sheet forming

Process Products

Automotive and house paints

Foods and beverages

Personal care products

Synthetic fibers

Sheet goods

Films

Glass and ceramics

14 © 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

Page 15: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

15

Lean was developed for discrete parts manufacture

Process operations are different…

They behave differently from discrete parts operations

Lean does apply to process operations

Often with even more benefit

But must be adapted to recognize the differences

© 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

LEAN THINKING FOR PROCESS OPERATIONS

Page 16: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

Mat

eria

l F

low

Part nos.

or SKU’s

Parts

Sub-

assemblies

Assemblies

Sub-

systems

Systems

Adapted from Synchronous Manufacturing Umble & Srikanth, 1990

“A” PROCESS

© 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED 16

Page 17: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

Finished Products

Mat

eria

l F

low

Adapted from Synchronous Manufacturing

Umble & Srikanth, 1990

“V” PROCESS

© 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED 17

Page 18: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

RAW MATERIALS = 6 TYPES

MASTER ROLLS = 50 TYPES

PACKAGED ROLLS = 2000 TYPES

CUT ROLLS = 1800 TYPES

BONDED ROLLS 200 TYPES

SLIT ROLLS = 1000 TYPES

© 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED 18

EXAMPLE OF A “V” PROCESS

SHEET GOODS MANUFACTURING

PROCESS

Page 19: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

MANAGING COMPLEXITY

© 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED 19

Page 20: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

20

STANDARD WORK

© 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

LEAN TOOLS

Page 21: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

21

LEAN PRINCIPLE:

Standardized tasks and processes are the foundation for continuous improvement and employee empowerment.

Every task should be standardized

Every task should be examined for improvement possibilities

No improvement should be implemented until tested, validated, authorized, documented, and communicated

The improvement becomes the new standard

Why Standard work?

Variation can cause defects

Variation causes confusion

Variation inhibits Continuous Improvement

© 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

LEAN TOOLS – STANDARD WORK

Page 22: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

22

POINT OF USE STORAGE

© 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

LEAN TOOLS – POUS

Page 23: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

23

Point of use Storage is storing materials as close to the

location where they are used as is possible

Tools needed for product changeover

Changeover parts: filters, screens

Materials for future campaigns: labels, caps

Tools needed for minor repairs

Repair parts: fuses, lamps, etc.

And located within easy reach

Benefits:

Eliminates searching for tools, parts, materials

Reduces downtime

Speeds product changeovers

© 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

LEAN TOOLS – POUS

Page 24: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

24

Five S, 5S

1 Sort (Seiri)

2 Straighten (Seiton)

3 Shine (Seiso)

4 Standardize (Seiketsu)

5 Sustain (Shitsuke)

© 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

LEAN TOOLS – 5S

Page 25: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

5S ~ THE FIVE STEPS

Sort through everything in the area - get rid of anything that is

not needed

Arrange all tools, equipment, and materials in a way that

facilitates smooth work flow. Locate everything as close to

the precise point of use as possible

Clean the entire area, including all surfaces, so that defects,

equipment problems, and any abnormal conditions will be

very apparent. Make sure that al tools, parts, and fixtures

are clean.

Establish systems and processes to maintain the first 3 S’s

including placards or signs describing standard work, and

shadow boards indicating tool location. Make it easy to put

things in their proper place, and difficult not to.

Develop a managing process, with regular audits to insure

that this becomes the way the workplace is organized and

maintained.

1 Sort (Seiri)

2 Straighten (Seiton)

3 Shine (Seiso)

4 Standardize (Seiketsu)

5 Sustain (Shitsuke)

25 © 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

Page 26: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

EXAMPLE OF A 5S IMPLEMENTATION

26

Filling lines to load house paint into 1 gallon buckets

Eight (8) lines – installed at different times over a 40 year period

Different control systems – different operator interfaces

5S changes

Removed all unnecessary tools and equipment

Cleaned floor, walls, equipment surfaces

Standardized on a pegboard design for tools

Standardized on an operator interface

Not only is the area cleaner and less cluttered …

……. Operators can easily move from machine to machine as needed

© 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

Page 27: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

BENEFITS OF 5S

27

5S appears simple and straightforward, but the benefits

are huge!

Easier to work in an uncluttered work area

Tools are readily at hand – eliminates time searching

Creates more operator ownership for their work area

Problems become much more visible

A clean uncluttered area is a safer area

The discipline of 5S builds the discipline needed for

Standard Work

© 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

Page 28: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

28

CHANGEOVER IMPROVEMENT

SINGLE MINUTE EXCHANGE of DIES

© 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

LEAN TOOLS - SMED

Page 29: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

Identify tasks

which can be

external

Move external tasks

outside the changeover

window

Simplify

Internal tasks

Perform

Internal tasks

in parallel

SMED IMPROVEMENT STEPS

CHANGE

OVER

CHANGE

OVER PRODUCT A PRODUCT B PRODUCT C

EXTERNAL

TASKS

EXTERNAL

TASKS

PRODUCT A

CHANGEOVER

PRODUCT B INTERNAL TASKS

EXTERNAL

TASKS

EXTERNAL

TASKS

PRODUCT A INTERNAL TASKS PRODUCT B

EXTERNAL

TASKS

EXTERNAL

TASKS

PRODUCT A INTERNAL TASKS

INTERNAL TASKS PRODUCT B

EXTERNAL

TASKS

EXTERNAL

TASKS

PRODUCT A INTERNAL TASKS PRODUCT B

29 © 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

Page 30: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

SMED APPLIED TO PACKAGING OPERATIONS

Tasks which could be external

Bring new label stock to area

Bring new cardboard packaging into area

Remove old labels, cardboard, etc.

Tasks which could be done in parallel

Flushing supply lines

Adjusting mechanical fixtures

Replacing labels

Replacing cardboard stock in carton erector

Tasks which could be simplified

Everything!

30 © 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

Page 31: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

31 © 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

9:

North West Line Change Over W/Fluid Cleanout 6/30/2011

20 min 20 min 20 min 20 min 20 min 20 min 20 min 20 min 20 min 20 min 20 min

La

b

Te

ch

nic

ian

Me

ch

an

ic 3

Me

ch

an

ic 2

Me

ch

an

ic 1

Le

ad

Op

era

tor

Op

era

tor

2O

pe

rato

r 1

Bottles off

Line Drop Packer Set UpTaper and

Palletizer

Set Up

Caps, Bottles,

Cartons

Delivered to

Line

Labels

to Line Drop Packer Set Up

Case

Erector Set

Up, Set Up

Carton

Date Coder

Fluid Cleanout

& Take

Sample To Lab

Fluid

CleanoutMettler Scale and

Labeler Set Up

Cap

Sealer,

Cap

Detect

or

VideoJ

et Set

Up

Unscrambler

Changeover

Fluid Change From: xxx To: xxx

Start: xxxxam Complete: xxxxam Total Time: x hrs xx min

Bottle Change: XX oz To XX oz

Lab Testing

Capper/Filler Changeover

Capper/Filler Changeover

Remove

Labels

&

Cartons

Remove

Caps

From

Line

Page 32: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

32

FINISH TO ORDER

PACKAGE TO ORDER

© 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

LEAN TOOLS - FTO

Page 33: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

33 © 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

FTO IN PROCESS SUPPLY CHAINS

FTO is sometimes done with process products – at the final

point of sale

Thus a very high degree of variety can be supplied – with modest

inventories

House paint is stocked in hardware stores only in base colors

Small amounts of pigment are added in the store to supply the full range of colors and shades

Page 34: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

34 © 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

FTO IN PROCESS PLANTS

FTO is also done within process plants

Crop protection products – fertilizers, pesticides, fungicides –

are produced in a small number of formulations

There can be tremendous variety in packaging

Material is often held in bulk, and bagged to order

Paper and plastic sheet goods are sometimes

stored as bonded or coated mother rolls

They are then slit (and chopped) to order

Page 35: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

RAW MATERIALS = 6 TYPES

MASTER ROLLS = 50 TYPES

PACKAGED ROLLS = 2000 TYPES

CUT ROLLS = 1800 TYPES

BONDED ROLLS 200 TYPES

SLIT ROLLS = 1000 TYPES

© 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED 35

EXAMPLE OF A “V” PROCESS

SHEET GOODS MANUFACTURING

PROCESS

FINISH-TO-ORDER POINT

Page 36: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

36 © 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

BENEFITS OF A FTO STRATEGY

Reduced dependence on forecasts

Differentiation based on true demand

Highly differentiating steps are usually near the end

Reduced finished product inventory

Reduced total inventory

Final process steps more available to meet real needs

Improved customer service levels

Requires the ability to store materials prior to the F-T-O or Pkg-T-O Point

Page 37: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

37

PRODUCT WHEELS

© 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

LEAN TOOLS – PRODUCT WHEELS

Page 38: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

Many of our production lines must package a wide variety of

products : fluid, bottle size, labels, carton size

© 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

PRODUCT WHEELS FOR PACKAGING LINES

Should we run a regular

campaign cycle?

How long should the overall

campaign be?

How much of each material

should we make on each cycle?

Product Wheel design can answer all of these questions

38

Page 39: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

If we’re making several materials on a regular cycle, is

there an optimum sequence?

Sometimes this is obvious ……

But some times not

© 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

PRODUCTSHEET

WIDTH

BASIS

WEIGHT

POLYMER

TYPE423 J 12 3 J

403 L 10 3 L

403 J 10 3 J

423 L 12 3 L

426 J 12 6 J

406 R 10 6 R

406 L 10 6 L

426 R 12 6 R

406 J 10 6 J

409 L 10 9 L

409 J 10 9 J

489 J 8 9 J

429 L 12 9 L

489 R 8 9 R

489 L 8 9 L

429 R 12 9 R

PRODUCTPOLYMER

TYPE

SHEET

WIDTH

BASIS

WEIGHT489 J J 8 9

403 J J 10 3

406 J J 10 6

409 J J 10 9

423 J J 12 3

426 J J 12 6

489 L L 8 9

403 L L 10 3

406 L L 10 6

409 L L 10 9

423 L L 12 3

429 L L 12 9

489 R R 8 9

406 R R 10 6

426 R R 12 6

429 R R 12 9

Again – Product Wheel design has tools for determining

this.

39

PRODUCT WHEELS FOR PACKAGING LINES

Page 40: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

DETAILED PRODUCT WHEEL CONCEPT

A

C

B

D

E F G

H

I

J K

PRODUCTS (SPOKES)

CHANGE-OVERS

The sequence is optimized for minimum changeover loss

The sequence is fixed

Some low-volume products may not be made every cycle

Spokes can have different lengths, based on the Takt for each product

The amount actually produced can vary from cycle to cycle, based on actual consumption

Thus the time can vary slightly from cycle to cycle

40 © 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

Page 41: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

Product wheels support a Pull replenishment system

Each spoke is designed based on average historical demand

What is actually produced on any spoke is just enough to

replenish what has been consumed from inventory

Product Wheels can be compatible with MRP

Product wheels can be employed in a Make-to-Stock

(MTS) or a Make-to-Order (MTO) environment

MTS and MTO products can be made on the same

wheel

PRODUCT WHEEL APPLICABILITY

41 © 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

Page 42: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

Product Wheels were applied

to several packaging lines at

an automotive fluid

manufacturer.

PRODUCT WHEEL EXAMPLE

42 © 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

Results

Inventories were reduced

Many low volume products now Make-to-Order

Brought structure & discipline – ended the chaos

Page 43: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

43

VALUE STREAM MAPPING

EXAMPLES

© 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

LEAN TOOLS - VSM

Page 45: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

FLOW LIMITATIONS IN A CEREAL PLANT

45

PACKAGING

STORAGE SILOS

SHAPE MANUFACTURING

FLAKE MANUFACTURING

© 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

Page 46: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

POOR COORDINATION IN A CEREAL PLANT

46

PACKAGING

STORAGE SILOS

SHAPE MANUFACTURING

FLAKE MANUFACTURING

The INFORMATION FLOW portion of the VSM shows

that the culprit is poor scheduling, no synchronization

© 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

The VSM

shows the

packaging area at

75% Utilization

But - silos often

fill up, so flake or

shape production

goes down

Page 47: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

VALUE STREAM MAPPING – SALAD DRESSING

47 © 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

THROUGHPUT INCREASES

IN A SALAD DRESSING PLANT

Page 48: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

© 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED 48

VALUE STREAM MAPPING – SALAD DRESSING

High speed bottling machine

300 bottles per minute

Page 49: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

49

HOMOGENIZER

EFF CAPACITY 60 GPM

75 GPMTAKT

UTILIZATION 125%

90%OEE

WAREHOUSE

Salad Dressing

Bottle Filling Line

SURGE

TANK

BOTTLE

FILLING

MACHINE

EFF CAPACITY 300 Bot/Min

400 BPMTAKT

UTILIZATION 133%

85%OEE

BOTTLE

CAPPER

EFF CAPACITY 500 BPM

400 BPMTAKT

UTILIZATION 80%

94%OEE

ACCUMULATING

BOTTLE

CONVEYOR

BOTTLE

LABELER

EFF CAPACITY 360 BPM

400 BPMTAKT

UTILIZATION 111%

82%OEE

CASE

PACKER

EFF CAPACITY 33 cases.min

34 cases/minTAKT

UTILIZATION 101%

73%OEE

NOTE: All capacities and Takt are relative to 24 oz bottles,

which is the primary size run on his line

SHRINK

WRAP

TUNNEL

EFF CAPACITY 122 cases/min

34 cases/minTAKT

UTILIZATION 28%

90%OEE

CASE

PATTETIZER

EFF CAPACITY 100 cases/min

34 cases/minTAKT

UTILIZATION 34%

94%OEE

PALLET

STRETCH

WRAPPER

EFF CAPACITY 224 pallet/hr

26 pallet/hrTAKT

UTILIZATION 12%

92%OEE

PALLET

LABEL

PRINTER

APPLICATOR

EFF CAPACITY 170 pallet/hr

26 pallet/hrTAKT

UTILIZATION 15%

76%OEE

BN #1 BN #2 BN #3 BN #4

Current State VSM, with the higher Takt requirement

© 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

VALUE STREAM MAPPING – SALAD DRESSING

Page 50: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

50

Value Stream Mapping

To understand bottlenecks

To find opportunities to better synchronize operations

To understand reasons for unnecessary inventory

To see opportunities to reduce/eliminate waste

Standard work, POUS, 5S

To simplify operations

To reduce variation

To eliminate lost time

To build operating discipline

SUMMARY

© 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

Page 51: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

51

SMED

To speed up changeovers

Faster changeovers = more production time, shorter campaigns,

less inventory

Finish-To-Order, Package-To-Order

Reduce finished goods inventory

Improve fill rates, service levels

Product Wheels

Optimize campaign size, production sequence

Level production to match takt within reasonable time periods

Reduce inventory, increase predictability

SUMMARY

© 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

Page 52: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

TO LEARN MORE …..

The material in this presentation is featured in

Productivity Press

May 2009

52 © 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

Page 53: LEAN MANUFACTURING TECHNIQUES APPLIED TO PRODUCT … -- Product... · lean manufacturing techniques applied to product packaging april 24, 2012 peter l. king lean dynamics llc

53 © 2011 - LEAN DYNAMICS LLC - ALL RIGHTS RESERVED

QUESTIONS?

[email protected] www.LeanDynamics.US