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Proprietary of VEM Technologies Pvt Ltd. Hyderabad-072 India. April 2006 1

Good Morning

&

Welcome
http://d/VGS-FILES/leanmfg/Lean%20Awareness%20Training/SuppyLean.ppthttp://e/CUT00004.MPG

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Best In Class Results

Work-in-process: Weeks to days

Quality (rejects): >20% to 1,000 feet to 50% reduction

People: Significant reallocation and utilization of creativity

AerospaceMachine Tools

Chemicals

Automotive

Consumer ProductsPharmaceuticals

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Balanced use of people, equipment and

material that gives us the lowest

manufacturing cost

Lowest manufacturing cost assumes all

waste is eliminated

What is Lean

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5/57Proprietary of VEM Technologies Pvt Ltd. Hyderabad-072 India. April 2006 5

What Is Lean Production

Wide product variety at low volume with many options - Short batch size / QC

High first-time quality in products - Six Sigma

Rapid response to market shifts - Flexibility

Low capital spend per unit produced - Waste elimination

Dramatically lower production costs - BIC cost

To develop sustainable competitive edge

across the value chain

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Waste

Waste

Waste

Waste: Waiting for materials,

watching machine running, producing

Defects, looking for tools, fixing

Machine breakdown, producing

Unnecessary item, etc.

Waste : Transportation, storage,Inspection and rework.

Waste : Unnecessary movementOf machine, setup time, machine

Breakdown, unproductive maintenance,

Producing defective products, producing

Products when not needed, etc.

How Material Spend Time in Typical Factory

How people spend Time in Typical Factory

How Machines Are Utilized in Typical Factory

ValueAddedPortion of Time

Value-Added

Portion of Time

Value-Added

Portion of Time

WASTAGE

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TYPES OF WASTES

1. OVER PRODUCTION

2. WAITING TIME3. UNNECESSARY TRANSPORT OR CONVEYANCE

4. OVER PROCESSING OR INCORRECTPROCESSING

5. EXCESS INVENTORY

6. UNNECESSARY MOVEMENT

7. DEFECTS.

8. UNUSED EMPLOYEE CREATIVITY

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ELIMINATING WASTE

1. Overproduction. Production items for which there are no orders, whichthere are no orders, which generates such wastes as overstaffingand storage and transportation costs because of excess inventory.

2. Waiting (time on hand). Workers merely serving to watch an automatedmachine or having to stand waiting for the next processing step,tool, supply, part, etc., or just plain having no work because ofstock outs, lot processing delays equipment down time, andcapacity bottlenecks.

3. Unnecessary transport or conveyance. Carrying work in process (WIP)long distance, creating inefficient transport, or moving material,parts, or finished goods into or out of stronge or betweenprocesses.

4. Over processing or incorrect processing. Taking unneeded steps to

process the parts. Inefficiently processing due to poor tool andproduct design, causing unnecessary motion and producingdefects. Waste is generated when providing higher qualityproducts than is necessary.

Cont..

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5.Excess inventory.Excess raw material, WIP or finished goods causinglonger lead times, obsolescence, damaged goods, transportation and

storage costs, and delay. Also, extra inventory hides problems such asproduction imbalances, late deliveries from suppliers, defects,equipment downtime, and long setup times.

6. Unnecessary movemnt. Any wasted motion employees have to performduring the course of their work, such as looking for, reaching for, orstacking parts, tools, etc. Also, walking is waste.

7. Defects. Production of defective parts or correction. Repair or rework,scrap, replacement production, and inspection mean wastefulhandling, time, and effort.

8. Unused employee creativity. Losing time, ideas, skills, improvements,and learning opportunities by not engaging by not engaging or

listening to your employees.

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Over production creates more problems and obscures the real cause of the problems.

Extra

Paperwork

Extra

People

Extra inventoryExtra handling

Extra Space

Extra interest charges

Extra machinery

Extra defects

Extra overhead

BY-PRODUCTS OF OVERPRODUCTION

Waste of overproduction

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Inventory Covers Problems

Long

Transportation

Absen-

teeism

VendorDelivery

Quality

problemsMachine

Breakdown

PoorScheduling

Communi

cation

problem

Lack of

House-Keeping

Long set-

Up Time

LineImbalance

Sea of

Inventory

Finished

Product to

customersRaw material

VEM

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A B

MULTIPLE MACHINE HANDLING

BEFORE

LoadAutomatic

OperationUnload

A

Load

Automatic

OperationUnload

Time

B


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AB

LoadAutomatic

OperationUnload

& loadA

Automatic

Operation

Unload

Time

BLoad

Automatic

Operation

Unload

& load

W

A

L

K

W

A

L

K

W

A

L

K

W

A

L

K


AFTER

CHECKLIST

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CHECKLIST

1. Do similar mistakes occur over and over again in your areaof operation?

[Yes/No/Dont Know]2. Is any time or money spent on rectifying these mistakes?

[Yes/No/Dont Know]3. Do any policy statements or standards exist for doing

things right first time?[Yes/No/Dont Know]

4. Do Managers know the responsibility for correcting theseproblems?

[Yes/No/Dont Know]5. Do Manager accept the real cost of rectifying mistakes?

[Yes/No/Dont know]6. Do you see the need for improvement in your area of

operation?[Yes/No/Dont know]

Lean Framework

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PullProduction

One-piece

Flow

Lean Production System

JUST IN TIME Just what is

needed.

In just the amountneeded.

At just the

moment needed. Utilizing the

minimum:Material, Labor,Equipment andSpace

Zero DefectsDetection andCorrection

Prevention:Mistake

ProofingDFM/DFAOPEX

Value Stream Mapping/5S/TPM/Quick Change

Continuous Improvement Through the Elimination of Waste

Takt TimeProduction

StandardizedWork

Minimum Workin Process

Kanban

Focus onOEE

Material

Machine

People

Lean Framework

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Non-Value-Adding Activity

7 Deadly Symptoms of Wastes

Defects

Waiting

Inspection

Storage/Inventory

EquipmentDowntime

Over / UnderEarly / Late Production

Rework / re-

Value-Adding (5%)

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Opportunity Model

Current State Vision 50% ValueAdding

50% Non-Value Adding95% Non-Value Adding

5% ValueAdding

Through everyone eliminating waste

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Cell Design

Quick Changeover

Total Productive Maintenance (TPM)

Mistake Proofing

5S / Visual Workplace

Value Stream Mapping

Kanbans / Supermarkets

. . . Key Tools . . .

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Lean Production Objectives

Fewer delivered defects

Shorter product lives & lead times

Less time for uptake of new technologies

Less time to respond to market shifts

Lower levels of effort

Lower capital investment (space, tools, inventories, etc.)

High speed of Production

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1) What Is Cell Design?

The linking of value-adding operations in sequence ofmanufacture to minimize non-value added activities,moving toward one-piece flow.

A means for achieving leanproduction management.

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Definition: Value-Adding

Any operation or activity that changes,converts, or transforms material into theproduct that the customer is willing to payfor.

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Definition: Non-Value-Adding

Any operation or activity that takes time andresources but does not add value to theproduct sold to the customer.

Benefits of Cell Design

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Benefits of Cell Design

Reduce Non-Value Added activities

Shorter lead timesSmaller space requirement

Simpler production of part families

Improved flexibility and scheduleactualization

Most effective use of resources

Equipment MaterialPeople

LAYOUT IMPROVEMENTS

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Before After Improvement

Floor space 1148sq.ft 720 sq.ft 37%

In-process Inventory 4000 pcs 10 pcs 99%

Number of Operators 2.7 2 25%

Output per person 168 217 23%

Scrap 100(indexed)

26 (indexed) 74%

Summary of Improvement

LAYOUT IMPROVEMENTS

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LAYOUT IMPROVEMENTS

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Before After

In-process

Inventory

1800 pcs 7 pcs

Number of

Operators

7 3

IMPROVEMENT ACHIEVED

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Before After

No. Operators 10 4

Inventory

(indexed)

100

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Summary of Improvement

Before Present ProposedNumber ofOperators

4 2 1-2

Work in Process

(Pcs.)

542 12 9

Floor Space (sq.ft.) 1075 920 580

Conveyor (ft.) 140 10 0

Number ofBranches

5 3 1

MATERIAL FLOW IN A PROCESS ORIENTED LAYOUT

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Storage

Lathe

Paint

Receiving

Plating

Assembly

Mill

Grinder

Saw

Storage

VEM

TYPES OF WASTE IN PROCESSES ORIENTED LAYOUT

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1.Difficult coordination and production scheduling

2. Transportation waste

3. Accumulation of in-process inventory

4. Double or triple handling of materials

5. Extremely long production lead time

6. Difficulty in identifying cause of defects7. Flow of material and operators work difficult to

standardize

8. Difficulty in improvement due to lack of

standardization.

Material Flow in a Product-Oriented LayoutVEM

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Material Flow in a Product Oriented Layout

Receiving

Building

Services

Lathe

Paint

Saw

Lathe

Mill

Assembly

Saw

Grinder

Paint

Plating

Assembly

Miscellaneous

AssemblyStorage

Note: Material Floe

VEM

2) Quick Changeover:

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The Key to Lead Time Reduction

Less adjustment less error less rework

Smaller runs fewer defects and scrap Machine and scheduling flexibility reduces the need for all

types of inventory

Less inventory less space less carrying cost

Less waste reduced lead time

Reduced lead time is a key to competitive advantage!

VEM

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Two Examples of Ways to Eliminate

Adjustment

Standardized Die Height

Block

Locating pin

VEM

VEM

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Railed Cart

Die Cart

Load used die

Load new dieRollerConveyor

Rail

VEM

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1

2

3 4

OLD METHOD

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1

Rail

NEW METHOD

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Machine

12A

Address

Color coding

Die storage area

(Close to the point

Of use)

Reduction of External Setup by Work place

Organization

) P ?

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3) What Is TPM?

TPM means Total Productive Maintenance

(or Total Productive Manufacturing)Definition:A common sense team approach to

maintaining the condition of equipment,managing its life cycle and and improving the

reliability of the process. It relies heavily uponoperator ownership of equipment, continuousimprovement, and planned maintenance. TPM isa team approach that involves operators,supervisors, skilled trades, engineering and

anyone else who has a stake in the equipment.

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Heat

vibration

oil

Leak

Dirtiness

Noise

Initial Symptoms of Machine Trouble

Benefits of TPM

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Assists in meeting Net goal

Increases each departments ability to be a reliable

supplier Increases each departments production capacity

Helps insure that each departments equipment can

produce Quality products on time

Provides each department with accurate fact basedinformation for decision making

Increases operator morale by providing a means toeliminate reoccurring problems

Reduces the stress of dealing with equipmentbreakdowns

EXAMPLES OF TPM EFFECTIVENESS

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P(Productivity)

Labour productivity increased:140% (Company M)150% (Company F)

Value added per person increased:147% (Company A)117% Increase (CompanyAs) Rate pf operation increased17% (68% - 85%) (Company T) Breakdowns reduced.98% (1,000 20 cases/mo.) (company TK)

Q(Quantity)

Defects in process reduced90% (1.0% - 0.1%) (Company MS) Defects reduced70% (0.23% -- 0.08%) (Company T)

Claims from Clients reduced50% (Company MS)50% (Company F)25% (CompanyNZ)

C(Cost) Reduction in manpower30% (Company TS)30% (Company C)

Reduction in maintenance costs:15% (Company TK)30% (Company F)30%(Company NZ) Energy conserved.30% (Company C)

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D(Delivery)

Stock reduced (by days):50% (11 days 5 days (Company T)

Inventory turnover increased:200% (3 6 times/mo (Company C)

S(Safety)Environment

Zero accidents company M)

Zero pollution (Every Company)

M(Morale)

Increase in improvement ideas submitted:230% Increase (36.8 83.6/

person per year) (Company N) Small group meetings increased:200% (2-4 meetings/mo) (company C)

Five Major Causes of Machine Troubles

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1. Failure to maintain fundamental machinerequirements, e.g., housekeeping, Oiling, bolt

tightening, etc.2. Failure to maintain correct operating conditions, e.g.,

temperature, vibration, pressure, speed, torque, etc.

3. Lack of skills, e.g., operators mis-operation,

maintenance crews errors.4. Deterioration, e.g., of bearings, gears, fixtures, etc.

5. Design deficiency, e.g., materials, dimension, etc.

Note:- Generally, a combination of these elements

causes machine troubles.

How the Losses

Red ce Effecti eness

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Reduce Effectiveness

1. Equipment failures

2. Setup and adjustment

3. Idling and minor stoppages

4. Reduced speed

5. Defects in process

6. Startup and reduced yields

Operating time

Total available time

Net operatingtime

Valuable

operatingtime

Downtime

losses

Speed

losses

Def

ect

losses

Equipment Effectiveness Six Major Losses

Fi El t f P d ti d th M t C D f t C i Sit ti

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Five Elements of Production and the Most Common Defect-Causing Situations

Operator

Procedure

Materials

Machines

Information

Inappropriate procedures

or standards

Human Mistakes

Excessively

variable materials

Worn machine parts

Lack of / Mis-interpreted

Information

Product/Process Design Impacts all 5 Elements

F b i tiSubassembly Final Ware- Market

Finished Goods Inventory Helps smooth production Activities

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FabricationAssembly

Ware

house

Market

Finished

Goods

Inventory

Wh t i Z D f t C t l?

4) Mistake Proofing

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What is Zero Defect Control?

A quality approach for achieving zero defects in

production processes

Four Elements of Zero Defect Control

Source Inspection

100% detection - no defect forwarding

Immediate Feedback

Mistake Proofing Devices

Definition: Mistake Proofing

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g

A process improvement that prevents theproduction of faulty products.

Benefits of Mistake Proofing

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Enforces standard operational procedures

Prevents product damage

Prevents machine damage

Signals or stops a process if an error ismade or a defect created

Eliminates variation leading to incorrectactions

Six Most Common

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Six Most CommonMistake Proofing Devices

Guide pins of different sizes

Error detection and alarms

Limit switches

Counters Checklists

Scales

Fi t U d P k Y k

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RightDirection

Wrong

direction

Fixture

(no fixture)

Fixture Used as Poka-Yoke

i i S i h d k k

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Limit switch

Right

PositionWrong

Position

Limit Switch Used as Poka- Yoke

5)Workplace Organization --The 5SS

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Sort (Organization) Set In Order (Stabilize)

Shine (Cleanliness and Inspection)

Standardize (Adherence)

Sustain (Self-discipline)

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