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Manufacturing 98 ConferenceSeptember 9-16, 1998

A Lean Manufacturing Road Map--Getting There From Here--Gettin

g There From HereThursday, September 10, 1998Thursday, September 10, 1998

Management, #412Management, #412Larry Zimmer

Manufacturing Engineering, Inc.

Manufacturing 98 Conference

September 9-16, 1998

Chicago, Illinois



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TODAYS SESSION--DISCUSSION ITEMSTODAYS SESSION--DISCUSSION ITEMS

YOUR OBJECTIVES

LEAN MANUFACTURING

An Overview

Characteristics of a Lean

Process

Comparison to Traditional

Manufacturing

BENEFITS OF LEAN

Summary

An Example--Howit Works

THE JOURNEY --IMPLEMENTING LEAN

People Empowerment /

Continuous Improvement

Skilled Technical Implementation

Risk Reduction

TECHNICAL IMPLEMENTATION

REVISITED

A Roadmap From Here to There

--Getting Started

QUESTIONS



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QUESTION:QUESTION:

WHAT DO YOU WANT TO

ACCOMPLISH?



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LEAN MANUFACTURING

A JOURNEY,

NOT A DESTINATION!

LEAN MANUFACTURING

A JOURNEY,

NOT A DESTINATION!



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LEAN MANUFACTURING--AN OVERVIEWLEAN MANUFACTURING--AN OVERVIEW

q Waste is eliminated through continuous improvement efforts

q Focus is on product value stream, eliminatingnon-value added operations: storage, transportation, inspection

q The lean manufacturing mindset:

-- Concepts, way of thinking not techniques-- Culture not the latest management tool

q Continuous product flow is achieved through:-- Physical rearrangement (e.g., manufacturing cells)-- System structure &control mechanisms

q Single-piece flow / small lot production: achieved through-- Equipment set up time reduction-- Attention to machine maintenance-- Orderly, clean work place

q Pull production /Just-in-time inventory control



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LEAN MANUFACTURING CHARACTERISTICSLEAN MANUFACTURING CHARACTERISTICS

q Processing:

-- A part moves to a production operation,

-- Is processed immediately, and

-- Moves immediately to the next operation

q With short order-to-ship cycles times, production is

based on orders rather than forecasts

q Inventories (RM, WIP, & FG) are minimized

q Quick changeovers of machines & equipment allow

different products to be produced with one-piece flow

insmall batches

q Layout is based on product flow

q Quality of each item is assured during processing Manufacturing Engineering, Inc.


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TRADITIONAL MANUFACTURING CHARACTERISTICSTRADITIONAL MANUFACTURING CHARACTERISTICSq Production scheduled based on forecast

q Build to inventory

q Large batch sizes

q Layout based on department / function

q Central store room or production floor used for

product stagingq Lot sampling used to check product quality

COMPANIES USING THESE APPROACHES HAVE

OPPORTUNITIES TO MAKE IMPROVEMENTS Manufacturing Engineering, Inc.


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BENEFITS OF LEAN MANUFACTURING

WHAT IF I TOLD YOU IT IS POSSIBLE TO.WHAT IF I TOLD YOU IT IS POSSIBLE TO.

qDecrease yourmanufacturing cycle timesfrom weeks to days (70% or more)

qReduce your inventories 50% or morewhile increasing your customer service levels

q

Increase capacity 50% or more in your current facilities

qMaintain or increase your throughput while-- Reducing your indirect labor by 50% or more-- Reducing your direct labor by 10% or more



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BENEFITS OF LEAN MANUFACTURING(CONT.)

qImprove your flexibility in reacting to changes in requirements

qAllow more strategic management focus

q Increase shipping and billing frequencies, thus

improving cash flowqBottom-line: IMPROVE NET INCOME

qDo all this with a payback period of SIX MONTHS OR LESS

WHAT IF I TOLD YOU IT IS POSSIBLE TO.WHAT IF I TOLD YOU IT IS POSSIBLE TO.



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LEAN MANUFACTURING--AN EXAMPLELEAN MANUFACTURING--AN EXAMPLE

-- 3 PROCESSES: A, B, C

-- PROCESSING TIME AT EACH = 3.2 MIN./UNIT

BATCH A B C TOTAL

1000 3200 min. 3200 min. 3200 min. 9600 min.

(20 shifts)

10 32 min. 32 min. 32 min. 96 min.

(.2 shifts)

SAVINGS = 19.8 SHIFTSTOTAL INVENTORY = 3000+ parts vs. 30

FIRST PART THROUGH SYSTEM = 6403+ minutes vs. 67+



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HOW IS THIS DONE?HOW IS THIS DONE?

q PEOPLE EMPOWERMENT /

CONTINUOUS IMPROVEMENT

q SKILLED TECHNICAL IMPLEMENTATION

q RISK REDUCTION



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LEAN MANUFACTURING PROCESSLEAN MANUFACTURING PROCESS

WASTE REDUCTION

TRADITIONAL

MANUFACTURING

LEAN

MANUFACTURING

CONTINUOUS IMPROVEMENT

PEOPLE TECHNICAL RISKEMPOWERMENT IMPLEMENTATION REDUCTION



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LEAN MANUFACTURING--

A JOURNEY, NOT A DESTINATION

WASTE REDUCTIONCONTINUOUS IMPROVEMENT



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EMPLOYEE EMPOWERMENTEMPLOYEE EMPOWERMENT

qManagement Philosophy / Priority

q Improvement: Everyones Job

qWork Station / Cell Improvements

qSuggestions / Implementation

qKaizen Improvement Teams



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EMPLOYEE EMPOWERMENTEMPLOYEE EMPOWERMENT(CONT.)(CONT.)

qAndon Control

qGoal: Continuous Improvement

qExtensive Training

-- Lean Concepts

-- Kaizen Approach

-- Empowerment

-- Ongoing Reinforcement



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SKILLED TECHNICAL IMPLEMENTATIONqLean Manufacturing Concepts & Principles

qCellular Manufacturing & Facility Layout

qMaintenance Improvement Programs

qMachine Changeover Time Reduction

qProcess Development

qMaterial Handling Solutions

q Inspection Systems

qManufacturing Process Simulation



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WHY ARE BOTH EMPOWERMENT &WHY ARE BOTH EMPOWERMENT &

SKILLED TECHNICAL IMPLEMENTATIONSKILLED TECHNICAL IMPLEMENTATION

IMPORTANT?IMPORTANT?STUDIES* CONCLUDE:

q Technical implementation of lean yieldssome improvement

q Involvement of manufacturing workers

(empowerment) yields some improvement

q In combination, result is a multiplier effect (i.e.,improvement is greater than the two individually)

* 1.Dynamic Duo, Industry Week Census of

Manufacturers, Dec. 1,1997, p. 42

2. Becoming Lean, Chapter 4, p. 103 Manufacturing Engineering, Inc.


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RISK REDUCTIONRISK REDUCTIONqTime Up Front

--Information Gathering

--Identifying Potential Savings

qRoad Map-- Big Hits First

-- Narrow The Scope

-- Save Time & Capital

qAdditional Facility Time: Training / Working With People-- To Assure Results

qComputer Simulation

-- Predict Performance Before Implementation Manufacturing Engineering, Inc.


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RISK REDUCTION (CONT.)RISK REDUCTION (CONT.)

qPhased Implementation

-- For Control & Manageability

qBenchmark Against Others In Industry

qMilestone Reviews

q If You Use Outside Resources:

-- Fixed Contract Pricing

-- Tie Payments To Milestone Completion-- Results Warranty

-- Payback In Six Months Or Less



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qTraining

qValue Engineering / Product Design Analysis

qKaizen Improvement Teams

qPoka-Yoke Methods to Assure Zero Defects

qPre-Automation: Equipping Machines to Detect

Abnormalities & Stop Automatically

CONTINUOUS IMPROVEMENTCONTINUOUS IMPROVEMENT



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SKILLED TECHNICAL IMPLEMENTATION

REVISITED

q Information Gathering / Defining:1). Product Groupings

2). Current Processes3). Lean Process Team

qEmployee Training & Empowerment (Ongoing)

q Initial Team Design Elements1). Finalize Definition Of Current Process Flow2). Process Review (e.g., Matl Handling, Layout,

Maintenance, Quality, Technology Improvements)3). Design Manufacturing Cells / 1-Piece Flow Approach4). Define Maintenance Requirements / Program

5). Machine Set Up Time Reduction Program

A ROAD MAP



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SKILLED TECHNICAL IMPLEMENTATIONREVISITED

A ROAD MAP (CONT.)

q In-Process Design Review

q

Team Refinement Of Design1). Finalize Initial Design Elements (As Needed)2). Simulation3). Work Standardization4). Error-Proofing

5). Update Of Potential SavingsqDesign Review

q Installation

qStart Up / Control Manufacturing Engineering, Inc.


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SKILLED TECHNICAL IMPLEMENTATIONREVISITED

A ROAD MAP (CONT.)

qContinuation Of Team Design Efforts

1). Small Lot Production2). Just-In-Time Inventory Control / Kanban3). Pull Production

qDesign Reviews

q Installation (Continuation)

qStart Up / Control Of New Elements

GOAL = WASTE ELIMINATION THROUGH

CONTINUOUS IMPROVEMENT Manufacturing Engineering, Inc.


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For additional information, please contact:For additional information, please contact:

Name: Larry Zimmer

Company: Manufacturing Engineering, Inc.

Address: 1145-F Chesapeake Ave.Columbus, Ohio 43212

Phone: 614-487-8985

Fax: 614-487-8799

Email: [email protected]

Web Site Address: www.MfgEng.com


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