Lean ManufacturingOften called Flow Manufacturing because the goal is to keep materials moving from start to the shipping box.Compiled By : RVS & KS

Introduction to the Champions ProgramCreate a critical mass of leaders, practitioners and educators for our diverse operationsGet grounded in some of the basics of the Toyota Production SystemLearn-Apply Approach -- go to class, do homework, share, learn moreNOT every tool will be applicable or useful in every environment; facilitator and participants can discussCreate partners at other locations to share with, learn from and help

SPEED is the Primary GoalDecreasing the Cycle Time for all business processes is a key competitive differentiator in modern manufacturing.

Manufacturing Cycle Time is the target of FlowManufacturing techniques.

The techniques learned today can be applied for other critical processes from engineering design topurchasing

Why Lean @ EmersonMarket DEMANDS Speed!Record ON-TIME delivery to improveEMR in LOWER Quartile in ITO among major industrials!O.P. Excellent; ROTC mediocre!Has the Moving Jobs scenario PLAYED OUT?

Flow Manufacturing - Key CharacteristicsFocus on SPEEDProcess SIMPLIFICATION Pull through the process as against PushBalanced operations based on customer demandMinimal build unless tied to customer orderInvestments in Education and TrainingFocused & dedicated resources External resource in a complex situationExtend to Supply chain also

Whats Different?PROGRAMMATIC change rather than drive by cost reductionsNew performance standard - SPEEDNEW SKILLS applied to a reasonably good operationProvides a CONTEXT for change and improvementA HISTORY of success; both external and internal

Targeted BenefitsDeliverySpeedProductivityValueOverall ValueOperating ProfitAssets EmployedGrowthCostsPriceInflationQualityContainmentProductPromotionMarketWorkingFixedA/P-A/RInventoryCapacityFlexibilityLeveraging Customer DeliveryPerformance ImprovementPrimarySecondaryQuality

F - Designed, Built to Order (SEC Scenario) Examples: Capital equipment applications, Job ShopsLikely Environment:Shared resourcesFloating bottlenecksEngineering significant part of cycle time

Key Challenges and ConstraintsScheduling through bottlenecks which changeFaster Engr releasesProcessing ECOs

Likely Lean PrioritiesConstraint identification (bottlenecks)WIP control where applicableCycle Time reduction in Engineering and Order ReleaseWorkplace Organization

Sources of BenefitsRealistic commitmentsFlexible schedulingReduced expediting

How To - The PathOperationsStrategicPlanningPlanning andPreparationValue-StreamMappingProject Management and ExecutionData Collection- Baseline Metrics- Product / Process- Volume / Mix- Flow Charts- Work ContentCurrent StateFuture StateAction Plan Important Foundations: Employee Involvement Culture 5S - Workplace Organization Structured Problem SolvingPull Scheduling, KanbanContinualImprovement Quality Improvement Set-Up Reduction Error Proofing Preventive Maintenance Kaizen Six Sigma ToolsBalancing; Line Design; TrainingOther Tools and Training (as required)Lean Business Process DesignReadyAimFire

How To - The PathStage 1Stage 3Stage 4Stage 5Stage 2OperationsStrategicPlanningData Collection- Baseline Metrics- Product / Process- Volume / Mix- Flow Charts- Work ContentCurrent StateFuture StateAction Plan Foundations: Employee Involvement Culture 5S - Workplace Organization Structured Problem SolvingPull Scheduling, KanbanContinualImprovement Quality Improvement Set-Up Reduction Error Proofing Preventive Maintenance Kaizen Six Sigma ToolsBalancing; Line Design; TrainingOther Tools and Training (as required)Lean Business Process DesignStage 0 - Not StartedStage 1 - Planning and EducationStage 2 - AnalysisStage 3 - Lean ImplementationStage 4 - Lean OperationStage 5 - Continual Improvement

Value Stream Mapping is a high level big picture look at the flow of material and information from raw material through manufacturing to the customer. What is Value Stream Mapping?

Value Stream MappingWhat are the steps?

Select VSM ManagerSelect Product FamilyCurrent State MapFuture State MapPrioritizedImplementationPlanVSM Value Stream Manager

Value Stream MappingMapping the Current State

Begin with the Customer:

- What are the customer requirements - Daily Line Rate?- What is the Takt time or pace of production required to support your customers- Who are your main customers?What are the requirements of the top 5 customers?- What is the required frequency of shipments and quantities?

Analyzing Customer DemandUnderstand customer demand -- determine Line RatePace work to meet demand -- calculate Takt TimeBalance operations to match the paceAdapt to pull systems

Implementation SupportEmployee Involvement5 SVisual ControlMaintenance ManagementSet-UpProblem Solving

Wall-to-Wall ImplementationLine DesignPull and Kanban

KanbanDefinition: Japanese for signboard or signalBenefits:Keeps inventory information with the inventoryProvides visual and simple replenishment informationProvides simple production instructionProvides simple move instructionsCan provide simple procurement process

Pull Environment ChallengesLong Changeover Time and FrequencyLow Overall Equipment Effectiveness (OEE)Poor Quality at the Source of Adding ValueFew Multi-skill and Multi-craft EmployeesPoor Process StabilityPoor Work Place OrganizationPoor Problem Solving

Organizational Education Why? Who?Lean Manufacturing is a systemic process of Change; not merely rearrangement of the shop Converting from push to pull requires all key resources on the same pageCannot apply a formula or copy someone elseWho? Division Leadership needs fundamental educationManagement and Staff needs sound educational baseFlow leaders and implementers need advanced educationEveryone needs awareness

The C Word and LeanCultureChangeChange AgentManaging Projects of Change

ResourcesLean ExecutiveHelps insure appropriate resources for task; defends as neededSponsorEstablishes and defends appropriate budgets and human resource commitmentsKeeps to commitments for budgets and timingChampionProactively develops metrics and communicates improvements to rationalize investmentsPrepares realistic action plans based on budget limitationsManages projects carefully to protect resource commitmentsFront Line SupervisionWorks through issues to allow training and participationTeams / TargetsUnderstands level of resources allowed

5 X 5 DefinitionsKey Lean Executive - Point of Leadership in Organization that clearly communicates the Lean message; sets priorities; monitors organization progress; assigns primary rolesLean Sponsor - Point of accountability for the results (owns the process); sets priorities; allocates resources; resolves resistance

5 X 5 DefinitionsFront Line Supervision - Point of management of activities contributing to the performance of a process flow - calls near term actionsTeams / Targets - Those who may contribute to the new process or those who must adapt to the new processChampion - Educates, develops actions, facilitates teams, manages the program; coordinates resources

Success FactorsInvolved LeadershipPlanningProject management skillsSimplification before systemsA local ChampionEmployee ParticipationCapital for capacity and flexibility rather than cost reductionRecognition and Pride

Lean and Six Sigma

Lean and Six Sigma Working TogetherIDENTIFYING AND RESOLVING VARIATION THAT CAUSES WASTE

Lean Focus on WASTETypes of muda to be identified, eliminated, significantlyreduced:WASTE ELIMINATION/REDUCTIONOver - production: The demand is for 200 today: But, I can produce 250 and really kick ____!Waiting: Machine waiting for a person, person waiting for a machineUnnecessary/Excessive ProcessingInventory: You pay for it, you store it, you move it, you damage it, you lose it.DefectsUnnecessary Movement: people or materialsIndependent Inspection

LEAN

Six Sigma Focus on VARIATIONTypes of variation to be identified, eliminated, significantlyreduced:Process Capability - Does the process machine, tooling, and controls) meet desired specification?Human Capability - Does the operator operaterepeatably?Measurement System Analysis - Is the measurement system capable?Data Accuracy - Are instructions accurate?Materials Integrity - To specification? Consistent?Specification Integrity - Rational acrossrange of products?

Working Together Ensuring repeatable processes within Takt Time Eliminating unnecessary processes Stabilizing process uptimeReducing the chances for uncommon errors and defects; reduce tails Determining appropriate buffers to keep flowing Eliminating unnecessary inspection and testing

Creating the System for Success