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

Lean Manufacturing Toolbox Tim Conway tconway@mnasq.org 13 November, 2018 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 Tim Conway Lean Manufacturing Toolbox 2 Cypress Review—Confidential 1

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 Tim Conway Lean Manufacturing Toolbox 3 Lean Manufacturing Concepts Tim Conway Lean Manufacturing Toolbox 4 Cypress Review—Confidential 2

Lean Manufacturing Lean Manufacturing is derived from the Toyota Production System (TPS) Objective: “The Machine that Changed the World”  Create maximum value for the customer by continual focus on elimination of waste MIT researchers coined the term “lean manufacturing” in this 1990 book to Areas of focus: describe the Toyota  Improve the flow of work to expose waste and quality Production System problems  Eliminate waste Tim Conway Lean Manufacturing Toolbox 5 Lean Focus: Value Stream Value Stream is the set of key actions required to create and deliver a product or service to the customer. Everything not in the value stream is potential waste Suppliers Fab Processing Customers “Whenever there is a product (or service) for a customer, there is a value stream. The challenge lies in seeing it.” Tim Conway Lean Manufacturing Toolbox 6 Cypress Review—Confidential 3

Lean’s Core Strategies 1. Eliminate waste Waste Inflexibility Variability 3. Maximize flexibility and synchronization 2. Control variability to customer demand Tim Conway Lean Manufacturing Toolbox 7 Types of Activities Three types of activities in Lean Thinking 10% Value-Added 50% Elements of work Non-Value Added (Waste) 40% Incidental Tim Conway Lean Manufacturing Toolbox 8 Cypress Review—Confidential 4

Types of Activities 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 Tim Conway Lean Manufacturing Toolbox 9 Types of Activities Incidental  Activity that does not directly add value but is necessary to ensure completion or integrity of 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 Tim Conway Lean Manufacturing Toolbox 10 Cypress Review—Confidential 5

Types of Activities 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 Tim Conway Lean Manufacturing Toolbox 11 Why Waste Elimination is Important Non-Value Add Non-Value Add & Incidental & Incidental 90% 81% Value Add 19% Value Add 10% Eliminating 10% of non-value added activity can nearly double the productivity Tim Conway Lean Manufacturing Toolbox 12 Cypress Review—Confidential 6

Types of Lean Wastes: “TIM WOOD” Transportation Defects Inventory WASTE Over- Motion processing Over- Waiting production Tim Conway Lean Manufacturing Toolbox 13 Waste – Transportation  Transport of raw materials or completed product Material flow Painting deck  Excessive transportation slows down the 5 production pace  Handoffs between areas increases risks of 7 4 errors 6 8  Handoffs also increase risk of miscommunication between areas 1 3  Visual management of the line is difficult 2 Excess distance from Stop 4 to Stop 5 Tim Conway Lean Manufacturing Toolbox 14 Cypress Review—Confidential 7

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 other problems in the system • System inflexibility • Poor line pacing • Poor process capability • Variation in machine availability Tim Conway Lean Manufacturing Toolbox 15 Waste – Motion  Unnecessary or excessive motion of people or machines  Example: operator has to go to the office 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 1 hour Distance= 70 ft walking time Frequency = 30 times per shift per shift Walking time = 2 minutes Tim Conway Lean Manufacturing Toolbox 16 Cypress Review—Confidential 8

Waste – Waiting  Waiting on parts, tools, people or Waiting time information  Waiting can also be within-process Takt time: 40 seconds 40  Symptom: production pace is highly 36 variable 32  Symptom: workload is not leveled among Time (seconds) 28 operations 24 20  Excess capacity and high WIP levels 16 compensate for the variable pace 12 8 4 0 Operation 1 Operation 2 Operation 3 Operation 4 Operation 5 Operation 6 Operation 7 Operation 8 Tim Conway Lean Manufacturing Toolbox 17 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 other types of wastes such as inventory, waiting and defects Tim Conway Lean Manufacturing Toolbox 18 Cypress Review—Confidential 9

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 Tim Conway Lean Manufacturing Toolbox 19 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 Quantity major disruption to the production pace 400 350 300 250 200 150 Reworked 100 50 0 1 4 7 10 13 16 19 22 25 28 Day Tim Conway Lean Manufacturing Toolbox 20 Cypress Review—Confidential 10

The 8th Type of Waste Under-utilization of resources and talents “I waste time each day “Our team spends a lot waiting on reports to be of time collecting delivered from other metric data that we feel 1 departments.” is not relevant.” 7 2 “Are there online The 8th type of “I spend a lot of time training resources that waste is under- doing paperwork that we can use so we don’t utilization of people really has no benefit.” have to wait for a 6 3 class.” 5 4 Tim Conway Lean Manufacturing Toolbox 21 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 Tim Conway Lean Manufacturing Toolbox 22 Cypress Review—Confidential 11

Flow  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) From To Value add Value add Internal buffer A 2 1 Wait 1 2 3 4 5 5 3 4 Wait Tim Conway Lean Manufacturing Toolbox 23 Pace  Determine the rate of customer demand  Synchronize all process steps to that rate  Only produce what is needed when needed without waiting or inventory From To WIP WIP (Work in progress) 1 2 3 4 5 1 2 3 4 5 Tim Conway Lean Manufacturing Toolbox 24 Cypress Review—Confidential 12

Pull  Only produce what the customer wants when they want it  Set up clear system to produce on customer orders From From To To Signal to do work Signal to do work Flow of work Flow of work Push Push Push Push Pull Pull Pull Pull WIP WIP WIP WIP Signal Signal Signal Signal 5 1 2 3 4 5 1 2 3 4 Tim Conway Lean Manufacturing Toolbox 25 Level  No asset or person under or over utilized  This requires work standards and cross training From To 1 2 3 4 5 1 2 3 4 5 Time per activity Time per activity 1 2 3 4 5 1 2 3 4 5 Tim Conway Lean Manufacturing Toolbox 26 Cypress Review—Confidential 13