Lean Manufacturing Toolbox Tim Conway tconway@mnasq.org 13 - - PDF document

Cypress Review—Confidential 1

Lean Manufacturing Toolbox

Tim Conway tconway@mnasq.org 13 November, 2018

Lean Manufacturing Toolbox 2 Tim Conway

Are You A Lean Practitioner?

Do you…

• Have a drop zone for your keys, wallet, purse, etc.?
• Organize your kitchen silverware by type and size?
• Have a set location for your garage shop tools?
• Set out your work clothes the night before?
• Wash your car windshield while the gas is pumping?
• Prefer roundabouts over stop lights for low-volume intersections?

If you strive to be efficient and organized then you’re a lean practitioner

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Agenda

This workshop covers the following topics:

• Lean Manufacturing Concepts
• Lean Tools

Desired outcomes; upon completion of this presentation, you will be able to:

• Define the concept of a Value Stream
• Define Value-Added, Non-Value-Added and Incidental activities
• Define 7 types of wastes
• Discuss 4 strategies to remove waste
• Describe the usage of several lean tools

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Lean Manufacturing Concepts

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Lean Manufacturing

Lean Manufacturing is derived from the Toyota Production System (TPS) Objective:

• Create maximum value for the customer by continual

focus on elimination of waste

Areas of focus:

• Improve the flow of work to expose waste and quality

problems

• Eliminate waste

“The Machine that Changed the World” MIT researchers coined the term “lean manufacturing” in this 1990 book to describe the Toyota Production System

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Lean Focus: Value Stream

Value Stream is the set of key actions required to create and deliver a product

• r service to the customer.

Everything not in the value stream is potential waste

“Whenever there is a product (or service) for a customer, there is a value stream. The challenge lies in seeing it.”

Suppliers Fab Processing Customers

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Lean’s Core Strategies

• 1. Eliminate waste

Waste Variability Inflexibility

• 3. Maximize flexibility

and synchronization to customer demand

• 2. Control variability

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Types of Activities

Three types of activities in Lean Thinking

10% 40% 50%

Non-Value Added (Waste) Incidental Value-Added

Elements

• f work

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Value-Added

• Activity that directly affects the

end product in a way that the customer is willing to pay for

• Typically 10-15% of activity

before optimization Examples:

• Impacts form, fit or function of

the product, such as adding layer to a semiconductor chip

• Gathering data that enhances

the value of the product

Types of Activities

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Incidental

• Activity that does not directly

add value but is necessary to ensure completion or integrity

• f value-added tasks
• Adds cost and in theory could

be reduced without affecting the product.

• Typically 30-50% of activity

before optimization Examples:

• Product inspection and testing
• Tool qualification testing

Types of Activities

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Non-Value Added

• Activity that does not add value
• Waste

Examples:

• Reworking or redoing
• Building finished good inventory
• Providing more data than the

customer ordered Types of Waste:

• Transportation
• Inventory
• Motion
• Waiting
• Overproduction
• Over-processing
• Defects

Types of Activities

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Non-Value Add & Incidental

90%

Non-Value Add & Incidental

81%

Value Add

10%

Value Add

19%

Why Waste Elimination is Important

Eliminating 10% of non-value added activity can nearly double the productivity

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Inventory Motion Waiting Over- processing Defects Over- production

WASTE

Types of Lean Wastes: “TIM WOOD”

Transportation

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Waste – Transportation

• Transport of raw materials or completed

product

• Excessive transportation slows down the

production pace

• Handoffs between areas increases risks of

errors

• Handoffs also increase risk of

miscommunication between areas

• Visual management of the line is difficult

Painting deck

Material flow

5 1 3 8 4 2 7 6 Excess distance from Stop 4 to Stop 5

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Waste – Inventory

• Excess inventory increases manufacturing

cycle time and customer lead time

• Inventory increases operational costs (e.g.,

storage cost, risk of obsolescence)

• High inventory levels are a symptom of
• ther problems in the system
• System inflexibility
• Poor line pacing
• Poor process capability
• Variation in machine availability

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Waste – Motion

• Unnecessary or excessive motion of

people or machines

• Example: operator has to go to the
• ffice to phone the inspector every

time a product lot is completed

• Motion waste is usually caused by the

layout not being optimized for the process

Office Distance= 70 ft Frequency = 30 times per shift Walking time = 2 minutes 1 hour walking time per shift

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Waste – Waiting

• Waiting on parts, tools, people or

information

• Waiting can also be within-process
• Symptom: production pace is highly

variable

• Symptom: workload is not leveled among
• perations
• Excess capacity and high WIP levels

compensate for the variable pace Waiting time

4 8 12 16 20 24 28 32 36 40 Takt time: 40 seconds Operation 1 Operation 2 Operation 3 Operation 4 Operation 5 Operation 6 Operation 7 Operation 8 Time (seconds)

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Waste – Overproduction

• Overproduction occurs when product at

any step of the process is processed sooner, faster, or in greater quantities than customers demand

• Examples: batch processing, pushing

product bubble to next step

• Overproduction can increase the impact of
• ther types of wastes such as inventory,

waiting and defects

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Waste – Overprocessing

• Overprocessing is performing additional

processing over and above the true customer requirements

• Examples: over-etching, over-polishing,

double-checks

• May result from internal standards that

are tighter than the true customer requirements in order to provide risk mitigation

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Waste – Defects

• Defect is anything that prevents the

product, service or process from performing its intended function

• Requires additional resources, line

capacity and buffer inventory to avoid major disruption to the production pace

50 100 150 200 250 300 350 400 1 4 7 10 13 16 19 22 25 28

Reworked

Quantity Day

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The 8th Type of Waste

Under-utilization of resources and talents

“Are there online training resources that we can use so we don’t have to wait for a class.” “I spend a lot of time doing paperwork that really has no benefit.” “I waste time each day waiting on reports to be delivered from other departments.” “Our team spends a lot

• f time collecting

metric data that we feel is not relevant.” 1 7 5 4 3 2 The 8th type of waste is under- utilization of people 6

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Lean Manufacturing: Principles

Flow: Near Continuous Flow, Small Batch Sizes Pace: Synchronized Between Steps, Aligned to Customer Needs Pull: Scheduling at Each Step Linked to Customer Demand Level: Resources Balanced to Reduce Over or Under-Utilization Stability: Enabler of Flow, Pace, Pull & Level, Leading to Decreased Waste and Increased Business Impact

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• Map out entire business process
• Identify waste and incidental steps
• Eliminate waste and streamline incidental tasks/steps
• Eliminate other blockages to flow (e.g. batching)

1 2 3 4 5 Wait Wait Value add Internal buffer A 1 2 3 4 5 Value add

From To

Flow

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• Determine the rate of customer demand
• Synchronize all process steps to that rate
• Only produce what is needed when needed without waiting or inventory

1 2 3 4 5 WIP (Work in progress) 1 2 3 4 5 WIP

From To

Pace

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• Only produce what the customer wants when they want it
• Set up clear system to produce on customer orders

From To 1 2 3 4 5

From

Push WIP Push WIP Push WIP Push WIP Signal to do work Flow of work

1 2 3 4 5

To

Pull Signal Pull Signal Pull Signal Pull Signal Signal to do work Flow of work

Pull

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Level

• No asset or person under or over utilized
• This requires work standards and cross training

1 2 3 4 5 From

Time per activity 2 1 5 4 3

1 2 3 4 5

To

Time per activity 2 1 5 4 3

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Lean Tools

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Lean Tools

Common lean tools include:

• 1. Value Stream Mapping (VSM)
• 2. Spaghetti Diagrams
• 3. Continuous Flow Manufacturing; Theory of Constraints (TOC)
• 4. Visual Factory
• 5. 5S
• 6. Poka-Yoke
• 7. Total Productive Maintenance (TPM)
• 8. Setup Reduction
• 9. Kaizen

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Value Stream Mapping (VSM)

Objective: Identify and Eliminate Waste

• 1. Map the process; identify the current state. Include relevant data such as processing

and waiting times and failure rates.

• 2. Classify activities as Value-Added (green), Non-Value-Added (red) or Incidental (yellow)
• 3. Identify the desired future state. Eliminate, combine, streamline tasks.
• 4. Define action plan to achieve the future state

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Final VSM (Current & Future State Maps)

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VSM is called “Material and Information Flow” by Toyota The top part of the map is for information flow ( from right to left) The bottom part of the map is for material flow (from left to right)

VSM with Information Flow (Toyota System)

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Spaghetti Diagrams

Spaghetti diagrams show the path taken by a person or product through a portion of the processing flow

• Highlights handoffs and potentially wasted motion in the process

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Continuous Flow Manufacturing

Continuous Flow Manufacturing (CFM) Objective: move material one piece (process unit) at a time, at a rate determined by the needs of the customer

• Supports the Flow, Pace, Pull and Level objectives of Lean Manufacturing

Utilizes a number of techniques

• Kanban (pull system) to signal when the next operation needs product
• Poka-Yoke (mistake proofing) to prevent defects from proceeding
• Inspections and self-checks to catch defects
• Total Productive Maintenance to ensure high line capability
• 1
• 2
• 3
• 4
• 5
• 1
• 2
• 3
• 4
• 5
• WIP (Work in progress)

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Theory of Constraints (TOC)

Developed by Eli Goldratt

• “The Goal” (1986) and “Theory of Constraints” (1990)

Objective

• Maximize throughput and minimize cycle time

Three basic measures

• Throughput
• Inventory
• Operational Expense

Focus

• Identify bottleneck constraint and reduce it’s impact

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Theory of Constraints (cont.)

Procedure

• Identify the system constraint
• Ensure non-constraints are managed to provide materials and resources to the constraint
• Work to resolve the root causes of the constraint
• Repeat; look for new constraints

Drum – Buffer - Rope

• Goal: Ensure a smooth flow of material to the constraint
• Drum: The pace of the operation as determined by the constraint
• Buffer: Inventory at the bottleneck to ensure it never waits
• Rope: Feedback mechanism to ensure buffer is maintained at the proper inventory level

TOC promotes the Flow, Pace, Pull and Level principles

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Visual Factory

Visual Factory communicates critical information quickly Objective: Make relevant problems obvious to all in real time R O U T E

Relevant Engage Obvious Understand Quickly Timely

• Key

Performance Indicators

• Key Steps
• Key Locations
• In Plain Site
• Simple (e.g.,

light tower)

• Show Status

vs Standard or Goal

• Colors to

Highlight Issues

• Emphasize

Visual Displays (not numbers)

• Update

Regularly

• Ideally Update

Automatically

• Create

Urgency

• Create

Ownership

• Drive Action

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Visual Factory (cont.)

Visual Factory examples

Light Tower allows real time visual notification of problems Blue tape makes it

• bvious when

setup is not per standard

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5S

5S is an important element of visual control

• Enables detection of non-standard practices

Instills order and cleanliness in the workplace by:

• Establishing orderly workplace
• Sustaining the new order

Achieved by:

• Sort: clear out unnecessary items
• Set in Order: arrange & mark optimum work area layout
• Shine: clean workplace regularly
• Standardize: document best practices
• Sustain: maintain workplace best practices

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Poka-Yoke (Mistake Proofing)

Pronounced POH-kah YOH-kay

• It is a translation of a shortened Japanese phrase meaning “to make mistakes impossible”

Developed by S. Shingo of Toyota

• Shingo calls it “Zero Quality Control” (ZQC)

Why is Poka-Yoke important?

• It has extremely high impact, usually at little cost
• Conceptually is one of the simplest tools to learn

Poka-Yoke has two parts:

• Making mistakes impossible (prevention and solution)
• Making mistakes immediately obvious (detection)

Example

• Part design only allows the correct install orientation

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Total Productive Maintenance (TPM)

Total Productive Maintenance (TPM) originated in Japan as a method for improved machine availability through better utilization of maintenance and production resources. TPM is a critical adjunct to lean manufacturing.

TPM enhances lean efforts and facilitates productivity

• 1. Starts with 5S / Visual Factory
• 2. Analyzes downtime events by cause,

frequency, and duration

• 3. Prevents downtime using effective

Preventive Maintenance (PM)

• 4. Predicts downtime using Predictive

Maintenance

• 5. Expands role of Operator as first point of

early warning and prevention

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Total Productive Maintenance (TPM)

TPM eliminates waste and lost time:

• Due to equipment downtime and setup
• Due to idling and minor stoppages
• Due to discrepancies between designed and

actual speed of equipment

• Due to process defects
• Due to quality problems at startup

Photo source: http://blogs.rhsmith.umd.edu/stephen/2010/10/

Maintenance losses

• Maintenance labor parts & supplies
• Outside resources

Defect Losses

• Process defects
• Reduced yield

Downtime Losses

• Equipment breakdown
• Setup and adjustment

Speed Losses

• Idling and minor

stoppages

• Reduced
• perating speed

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TPM: Overall Equipment Effectiveness

Total Time Availability A Operations Time (Scheduled Time) *Non- scheduled Time B Uptime *UPDT, PDT *Setup Performance C Manufacturing Time D Productive Time * Speed Losses * Idle Time Quality E Actual output F Good output *Scrap/rework *Startup losses OEE = B/A x D/C x F/E = F/A Availability Rate x Performance Rate x Quality Rate

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Setup Reduction

Setup Reduction (SUR)

• Also known as Single Minute Exchange of Die (SMED) or Quick Changeover

Objective

• Reduce changeover and setup times to <10 min

Benefits

• Increases operational flexibility, especially for high-mix, low-WIP
• Reduces waste (waiting, inventory)
• Increase area utilization and capacity

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Setup Reduction (cont.)

Techniques

• Convert Internal Setup (IS) activities to External Setup (ES)
• Internal Setup must be performed while the machine/process is stopped
• External Setup can be performed while the machine/process is still running
• Remove useless setup steps, adjustments and quals
• Simplify tooling (jigs, clamps, interlocks, etc.)
• Simplify procedures
• Do procedures in parallel
• Standardize (checklists)

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Kaizen

Definition

• “Kai” means “change.” “Zen” means “good” (for the better).
• Kaizen typically means small improvements, carried out on a continual basis and involving

all people in an organization.

Objective

• Reduce losses and inefficiencies in the workplace

Example:

• Idea System

A version of Kaizen called Kaizen Blitz is a focused, short-term effort to resolve a specific issue. Typically <1-2 wks.

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Lean Summary

Lean Principles: Flow, Pace, Pull, Level Lean Tools

Kaizen Kaizen

On-time Delivery Goals

Setup Reduction Setup Reduction TPM TPM Poka Poka-

• Yoke

Yoke 5 5 S S Visual Factory Visual Factory

• Cont. Flow Mfg
• Cont. Flow Mfg

VSM VSM

Lean Focus: Enhance Value Stream

Lean Strategies: Eliminate Waste, Control Variability, Increase Flexibility & Synchronize to Customer Demand

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Summary

Thank you for attending! This presentation has covered the following:

• The concepts of Lean Manufacturing and Value Stream
• Types of activities: Value-Added, Non-Value-Added and Incidental
• The 7 types of wastes
• 4 strategies to remove waste
• Several lean tools

Questions?

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Attachment: To Batch or Not To Batch

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Small Queue Batches Reduce Inter-Step Wait Times

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Small Queue Batches Reduce Inter-Step Wait Times

7 10 16

5 10 15 20 1-pc 2-pc 4-pc Cycle Time (min) Queue Batch Size

Cycle Time vs Queue Batch Size

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Process Batching Capacity Allows Units to Process in Parallel

To minimize cycle time, match the queue batches to the process capacity

7 10 16

5 10 15 20 1-pc 2-pc 4-pc Cycle Time (min) Queue Batch Size

Cycle Time vs Queue Batch Size (Process Batch Capacity = 1)

7 5 8

5 10 15 20 1-pc 2-pc 4-pc Cycle Time (min) Queue Batch Size

Cycle Time vs Queue Batch Size (Process Batch Capacity = 2)

7 5 4

5 10 15 20 1-pc 2-pc 4-pc Cycle Time (min) Queue Batch Size

Cycle Time vs Queue Batch Size (Process Batch Capacity = 4)