Lean assignment -1

Summary:

This document will give a good view of manufacturing via lean. Most manufacturing

companies have already started approaching lean manufacturing system. The main

objective of lean methodology is to reduce waste and aims at supplier integration for

the common achievable goal in manufacturing by reducing the non value added time. i.e,

raising ratio of value added time to non value added time and waste. Here the case of a

automotive manufactures is considered after some serious trouble in business. The

manufacturer after losing few successive business and with some serious issues, look

forward for lean implementation.

The current state mapping analysis gives the current process flow and the level of

inventory at various product families. And with this the future mapping is to be drawn

for some serious implementation which will focus and resolve all the current state map.

Introduction of the Organisation:

M Automotive parts (MAP) is one leading manufacturing company, located at Midlands.

They are first tier supplier to automotive industries. With the current trend of mass

production, they lost two major orders to overseas competitors, along with employee

redundant of 20%.

Lean Introduction:

Lean manufacturing is a variation on the theme of efficiency; it is a present-day instance

of the larger recurring theme in human life of increasing efficiency, decreasing waste,

and using empirical methods

Lean principles come from the Japanese manufacturing industry.

Lean is nothing but is set of tools that elimination of waste. As waste is eliminated

quality improves while production time and cost are reduced.

Examples:

Value Stream Mapping

Pull systems

Poka-yoke

Toyota production system follows the lean operation principles. Whose goal is cost

reduction by the elimination of waste these principle is nothing but pull processing,

Pull processing:

a) Perfect first-time quality,

b) Waste minimization

c) Continues improvement

d) Flexibility

e) Building and maintaining a long term relationship with suppliers

f) Automation load levelling and production flow and visual control

Lean implementation is mainly focused on getting the right things, to the right place, at

the right time, in the right quantity and minimizing waste.

Seven Wastes of Lean:

As learned, lean is a tool eliminate waste in any form in chosen sector. Waste mean

performances that consume time, capital and space, but do not contribute to fulfilling

customer needs. They are classified under the following categories.

1. Over production : Considered as greater source of waste2. Waiting time: This is time spend waiting by labour or equipment waiting to add value to the

product.3. Transportation: Unnecessary transportation of WIP is another waste.4. Process: Operations that do not add value, but are done just due to some poor work (i.e. re-

work)5. Inventory: Inventory of all types.6. Motion: Unnecessary movement of man and material.7. Defective goods: Total cost of poor quality could be high, includes poor quality and scrap

material, waste of labour time, and time expecting orders

Tools and Techniques of Lean:

Lean aim is to reduce the waste, mean if we do any work it is simple sufficient to

recognize, to do and to manage. Lean is help to short methods to produce the product in

right way and reduce waste and cost reduce more with less time, inventory, space,

people, and money.

The manufacturing process is depended on the lean techniques that are being used to

improve the production process. Those techniques are based on the following

applications:

Value: the main information is taken from what and up to what amount the

customer is willing to afford to buy that object.

The value stream: this gives us the information about the processing steps that

are used to remove the non-value work processes from the designing process to

the usage of the customer.

Flow: this removes the wastage from the process without any obstacles. The flow

can be reduced for inventory and expertise.

Pull: it is the way in which we can make the lining of the products as well as the

processes from the production process based on the usage of the customer.

Perfection: it is the way of motivating to get the things done right the in the first

time by using the application of continuous improvement.

By following lean techniques we can easily identify the places of Non-value added time

and then accordingly the yamazumi board is drawn and from which, we can calculate

the takt time.

The most commonly accepted and used few tools are,

Value Mapping: Value stream mapping is tool typically used during lean initiatives to

present pictorially the flow of material and information as a product or service makes

its way through the value stream. A value stream map is often used to identify where to

focus future improvement efforts to reduce or eliminate non value added activities,

cycle time and costs.

5 S Housekeeping: Work place are well organised by using Japanese plan, which

directly reduces the waste of looking and searching for equipment. It consists of 5 steps,

each starting with the letter S, hence the name 5 S housekeeping are Sort, Straighten,

Sweep, Standardise, Self Discipline

Poka-yoke is otherwise known as mistake proofing concept. The important view of this

concept is to stop the process whenever a defect occurs, and explain the cause as well as

prevent it from reoccurring and also provides source of the defect. Alternatively ‘on-

line’ adjustment can be made to the product or process, which enables the continuous

process improvement. As production lot sizes are constantly reduced which results in

defect free parts. This system avoids the defects to happen in manufacturing work flow.

Although this concept developed for manufacturing systems (Shingo, .S. 1986, Zero

Quality Control)

SMED Single Minute Exchange of Dies, a concept by Shigeo Shingo at Toyota, objective is

to reduce all factory setups by 59/60ths. In other words, a setup of one hour should

take one minute. The adoption of SMED to the traditional mass production system is a

tough job. This method also used to reduce waste the main objective is to reduce the

changeover time. Two elements for set up time is Internal (machine need to stop) and

external (machine need not to stop). Improvement can be made in simplified methods:

jigs, clamps, and quick-release. (Shingo, .S. 1986, Zero Quality Control)

Kan Ban: Kan Ban is otherwise defined as the two bin system. It is material control

system which only calls for materials when required. Inventories are not maintained up

at line side or in part of finished goods.

Performance Measures: Measures will influence the objective of the company, as what

we measure is what we achieve. Performance measures are such as:

Dock to Dock (DTD)

First Time Through (FTT)

Build to Schedule (BTS)

Overall Equipment Efficiency (OEE)

Visual Management: Visual Management should enable the manufacturing time at the

production facilities within 3 minutes. With reference to the Machine availability,

Production targets, Buffers etc.

Yamazumi: A Yamazumi chart is a stacked bar chart that shows the balance of cycle

time workloads between a number of operators typically in an assembly line or work

cell.  The Yamazumi chart can be either for a single product or multi product assembly

line. “Yamazumi is a Japanese word that literally means to stack up”. Toyota uses

Yamazumi work balance charts to visually present the work content of a series of tasks

and facilitate work balancing and the isolation and elimination of non value added work

content.

Takt time: It is the ratio between the time available and the customer demand.

Takt time = time available / customer demand

Value Stream Mapping:

It’s the most commonly used lean techniques to analyse the flow of material to the

customer. This is highly advantages in visually showing the current flow and delay and

identifies the part family. Also helps in drawing future state mapping by analysing the

current state.

Current State of MAP:

MAP availability:

20 days a month.

2 Shifts a day (6AM-2PM and 2PM-10PM) = 16 Hours.

30 mints lunch and two 15 mints break = 30+ (2*15) = 60Mints = 1Hour break

per shift.

Available time per day = 2 shifts * (8-1) hour = 14 Hours.

Customer Requirement:

1400 car parts per month = (1400/20days) = 70 sets per day

Single set comprises of 4 parts (AZ123, AZ124, AZ223 and AZ224) = Hence

(70*4) 280 parts are to flow in line to meet requirement.

And BZ111 is assembled to AZ123A and AZ124A; hence its flow is to be twice the

required sets. (2*70) = 140 components.

Takt Time Calculation:

Takt time = time available/customer demand

= (2shifts * 7 hours * 60 mints * 60 sec’s)/(70 sets * 4 parts)

= 180 Sec’s

Inventory days calculation:

Invent days = Summation of inventory/ Demand for next operation

(i.e, AZ operation one)= (1800 AZ123A + 2600 AZ124A + 2400 AZ223 + 1700 AZ224)/

280

= 30.357 Days

Value Added Time calculation (VAT):

All operations, that change the physical shape of the product and helps in getting

the final requirement of customer.

Non Value Added Time calculation (NVAT):

Any operations, that support the value added process, and supports it without

taking part in direct operation. Ie setting up machine, tools.

Lead time calculation:

It’s the time taken by the product to reach customer, right from the reach of raw

materials.

Critical Path:

It is the path of higher time in a parallel flow process. In here, the BZ process

holds the high value added time and this path of process is critical path of the product

family.

Critical Analysis:

Analysing under 7 wastes of Lean:

1, Over production:

Its very clear from the current state mapping that the operation 1 of AZ family does over

production and there is very high inventory, if this could be controlled then major part

of the non-value added time would be saved for the process. This area has lots of room

for improvement.

2, Waiting time:

Due to the heavy production at operation 1 of AZ family, the waiting time of product is

more than 30days for operation 2. This waiting time in sense increases the high

investment of inventory. And until assembly 1 there is huge amount of inventory taking

place, which consumes more time than that of the critical path.

3, Transport:

There isn’t much transport other than moving from department to department, though

this isn’t quite high can be looked as a option for improvement.

4, Process:

There is no much of process delay, still SMED tools could probably drop the setup times

and other process delays.

5, Inventory:

Investments over inventory is significantly quite higher in all levels of process, the

change over the push to pull and JIT could help in dropping inventory totally and Kan

Ban also could be used as a tool in dropping inventory.

6, Motion:

This doesn’t show the motion between cells, but the other tools of lean could be

employed to find the motion and controlled.

7, Defective Goods:

Defective goods are common everywhere, but the way of control defers. The easy and

better way of controlling is to stop the poor quality material there itself and stop

passing it to next departments. Once this is followed there isn’t need for a thorough

check at final assembly, where some critical parts could hide from text just because of

pre assembly.

Conclusion:

This current state gives a clear view for future and good improvements for future. The

current system has lots of inventory and high lead time, which takes most part of the

assets, reducing inventory turnover. There is also a unnoticed problem of sharing

information, while the customer produces orders on daily basis, it easy to adopt to a JIT

manufacturing system, for which they need to get their suppliers ready for JIT. And also

redesigning cells will give good utilisation of machines.

References:

Jeffrey P. Wincel (2003) Lean Suppy Chain Management. New York: Productivity

Michael A. Lewis (2000) 'Lean production and sustainable competitive advantage'. Univ

of Warwick 20 (8), 1-20

Peter Hines, Matthias Holweg and Nick Rich (2004) 'Learning to evolve'. Emeraldinsight

24 (10), 1-8

Paul D. Ericksen, Nathan J. Stoflet, and Rajan Suri (2007) 'Manufacturing Critical Oath

Time (MCT)'. Technical report 1 1-4

Andrew Greasley (1992) Operation Management

Windey Garner (2010) Lean Operations, Lecture notes. Coventry: Coventry University

Liker, Jeffrey (1998) Becoming Lean. Productivity.

Reference / Source

Why implement Benefits of lean Tools used People issues encountered

Operation Management by Andrew Greasley

Elimination of waste

Continuous improvement

Cellular manufacturing

Eliminating wastesDrop in movements of men, material and tools.Continuous progress and achievable target

5SKaizenkanban

Mass customisation / Production

Customise mass production

Varity of products and high flexibly.

Product process matrix used.

MC systems

Value streem mapping in make to order environment

Get continuous flow in high variety process

High customer satisfactionVariety continuous flow

Critical analysis of bottle neck operation

Manufacturing Critical path time

Quick response to market

Advanced manufacturing

Reduce lead timeReduced setup time

QRM – Quick Response Manufacturing

A New view to Lean by Johnston David

Compounding factors such as logistics costs dropped

Capability to compete in the next generation

Four phase methodology

Lean supply chain by Jeffrey P. Wincel

Taking lean to supplier base

Continuous improvement

Effective supplier base, and good understandingImproves process by eliminating waste.

Two wave methodologyKaizen

Case studies

Literature Review:

Lean is the best tool for the advancing manufacturing system, it aims for eliminating waste in all

forms. This also gives continuous improvement and be a effective tool for flexi production

system. This tool eliminates the most part of material in stock by dropping inventory, thus it

requires only very adequate space for the plant. And this was the key reason for the birth of

lean. This particular tool is good enough in dropping lead time, and increased delivery

performance. And also runs with low operational cost.

Lean is more than about just cutting cost, companies must often look forward beyond shop floor

to cut cost. Its a tool looking forward for continuous improvement. This reduces the project risk

and risk of financial risks. Lean is set up with its own goals and strategy, it targets for quality

improvement and stays competitive in market, and reduces time.

The lean isn’t a hard thing to achieve, just by following these.

1. Design simple manufacturing system

2. Recognise that there is always room for improvement

3. Continuously improve lean manufacturing system.

This has the following benefits for implementation, it first of all improves quality, reduces

inventory, requires less space for the plant, enhance the overall flexibility in manufacturing,

makes identifying future kaizen simpler, and ensures safer work environment with improving

workers moral value.