THE EVOLUTION OF LEAN

Transcription

1 THE EVOLUTION OF LEAN FROM CARS TO CHEMICALS TO SUPPLY CHAINS. AND BEYOND Peter L. King Lean Dynamics, LLC September 2014

2 PETER L KING BS Electrical Engineering Virginia Tech DuPont Company 42 years R & D 9 years Project management 15 years Lean manufacturing & supply chain consulting 18 years Lean Dynamics 2007 to present Consult with companies in process industries Lean for the Process Industries Productivity Press, 2009 The Product Wheel Handbook Productivity Press, 2013 Value Stream Mapping for the Process Industries Productivity Press, 2015 Several articles in IE Magazine, APICS Magazine, Target (AME) Frequent presenter of PID webinars Frequent speaker at IIE, APICS, ASQ, OpEx conferences 2

3 AGENDA Lean Origins and System Lean Migration into Process Industries Continuing Lean Evolution Supply Chains Complete Enterprise Service Industries Cultural Requirements Q & A 3

4 THE EVOLUTION OF LEAN LEAN as we know it was developed by Toyota beginning in 1950 and continuing today It was built on the pioneering work of Eli Whitney, Honore Blanc, Marc Brunel Frederick Taylor Henry Ford 4

5 A SIMPLIFIED VIEW OF THE TPS HOUSE TPS MEETING CUSTOMER NEEDS WITH THE HIGHEST QUALITY IN THE SHORTEST TIME FLOW SHORT CYCLE TIME HIGHLY ENGAGED AND EMPOWERED PEOPLE CONTINUOUS IMPROVEMENT WASTE ELIMINATION QUALITY STANDARDIZATION & STABILITY 5

6 THE EVOLUTION OF LEAN The lean concepts, methods, and tools pioneered by Toyota quickly spread to other discrete parts assembly manufacturers - Automobiles Motorcycles Appliances Electronics Etc. But was slow to move into Process Manufacturing We re different It doesn t fit 6

7 PROCESS VS ASSEMBLY Discrete Parts Manufacturing and Assembly Automobiles Aircraft Cell phones Medical instruments Computers Consumer electronics Power tools Lawn mowers Appliances Process Operations Chemical reactions Physical transformations Process Products Automotive and house paints Foods and beverages Personal care products Synthetic fibers Sheet goods Films Glass, ceramics 7

8 PROCESS INDUSTRY CHARACTERISTICS Differences - Process vs Assembly Equipment size and mobility Asset productivity vs labor productivity Poka Yoke One piece flow?? 8

9 CHALLENGES IN PROCESS INDUSTRIES Example of being blinded by Paradigms: Cellular Manufacturing 9

10 S H I P P I N G EXAMPLE OF A TRADITIONAL FUNCTIONAL LAYOUT LATHE DRILL PRESS R E C E I V I N G GRINDING ASSEMBLY WELDING MILL PAINT 10

11 S H I P P I N G TRADITIONAL FUNCTIONAL LAYOUTS Why Functional Layouts were popular Easy to manage Easy to equip and staff Required only one skill Labor productivity could be optimized Problems they caused Flow was sporadic, not well synchronized Flow was not visual Very high levels of WIP could accumulate Quality often suffered R E C E I V I N G LATHE DRILL GRINDING WELDING MILL PRESS ASSEMBLY PAINT 11

12 CELLULAR MANUFACTURING IN ASSEMBLY PLANTS To remedy these difficulties, Toyota developed Work Cells Two step process 1. Arrange all parts into similar groups ( Group Technology ) 2. Arrange the equipment into work cells 12

13 CELLULAR MANUFACTURING IN ASSEMBLY PLANTS Benefits of Cells Flow can be well synchronized Flow can be very visible Lot size can be smaller one-piece flow is practical Quality improves WIP is reduced Set-ups are generally faster Labor productivity can be maintained 13

14 CHALLENGES IN PROCESS INDUSTRIES So.. Cellular Manufacturing is great for parts and assembly, but will it work in process industry plants? 14

15 MATERIAL FLOW TYPICAL PROCESS INDUSTRY FOOTPRINT FUNCTIONAL CONFIGURATION Step 1 Tank 1 Step 1 Tank 2 Step 1 Tank 3 Step 1 Tank 4 Step 2 Reactor 1 Step 2 Reactor 2 Step 2 Reactor 3 Step 2 Reactor 4 Step 3 Machine 1 Step 3 Machine 2 Step 3 Machine 3 Step 4 Machine 1 Step 4 Machine 2 Step 4 Machine 3 Step 4 Machine 4 15

16 PAPER MANUFACTURING EQUIPMENT CONFIGURATION Roll Forming Machine 1 Roll Forming Machine 2 Roll Forming Machine 3 Roll Forming Machine 4 Roll Bonder 1 Roll Bonder 2 Roll Bonder 3 Roll Bonder 4 Roll Slitting Machine 1 Roll Slitting Machine 2 Roll Slitting Machine 3 Chopper 1 Chopper 2 Chopper 3 Packaging 16

17 MATERIAL FLOW PAINT MANUFACTURING EQUIPMENT CONFIGURATION Resin Polymerization 1 Resin Polymerization 2 Resin Polymerization 3 High Speed Dispersion 1 High Speed Dispersion 2 High Speed Dispersion Tint & Shade Drum Filling Tank Truck Loading 17

18 TYPICAL PROCESS INDUSTRY FLOW PATTERNS Step 1 Tank 1 Step 1 Tank 2 Step 1 Tank 3 Step 1 Tank 4 Step 2 Reactor 1 Step 2 Reactor 2 Step 2 Reactor 3 Step 2 Reactor 4 Step 3 Machine 1 Step 3 Machine 2 Step 3 Machine 3 Step 4 Machine 1 Step 4 Machine 2 Step 4 Machine 3 Step 4 Machine 4 18

19 PROCESS INDUSTRY CONCERNS Functional layouts cause Step 1 Tank 1 Step 1 Tank 2 Step 1 Tank 3 Step 1 Tank 4 similar problems Step 2 Reactor 1 Step 2 Reactor 2 Step 2 Reactor 3 Step 2 Reactor 4 in process plants Step 3 Machine 1 Step 3 Machine 2 Step 3 Machine 3 Flow is not synchronized Flow is not visible Quality suffers Long time from defect to discovery Variation or tolerances multiply Step 4 Machine 1 Root cause failure analysis is difficult Inventory accumulates almost without limit Step 4 Machine 2 Pull replenishment systems are difficult to implement Equipment performance (OEE or UPtime) deteriorates Step 4 Machine 3 Step 4 Machine 4 19

20 SO ~ WHY NOT CELLS? Process Industry barriers to cells Equipment is massive Footprint often 200 ft x 50 ft Weight can be hundreds of tons Process piping, hydraulic lines Labor productivity is not the biggest issue 20

21 THINK LOGICAL FLOW, NOT GEOGRAPHIC FLOW Step 1 Tank 1 Step 1 Tank 2 Step 1 Tank 3 Step 1 Tank 4 CELL 1 CELL 2 CELL 3 CELL 4 Step 2 Reactor 1 Step 2 Reactor 2 Step 2 Reactor 3 Step 2 Reactor 4 Step 3 Machine 1 Step 3 Machine 2 Step 3 Machine 3 Step 4 Machine 1 Step 4 Machine 2 Step 4 Machine 3 Step 4 Machine 4 21

22 SYNTHETIC RUBBER PRODUCTION A synthetic rubber manufacturing plant End uses: gaskets, seals, industrial hoses, tires Three major grades: Type F, Type J, Type R Several SKUs within each grade 22

23 SYNTHETIC RUBBER CURRENT STATE VSM SUPPLIER 1 Order Lead Time # SKUs zz z PRODUCTION SUPERVISOR SUPPLIER 2 Order Lead Time # SKUs zz zz z Frequency Lot Size Transp time 1 Car / Day zzz zzz Invtry Days # SKUs 6. 3 M lbs z 6 WEIGH TANKS ( 3 ) Eff Cap TAKT 1 ZZ XX Invtry Days # SKUs XX POLYMER EMULSION KETTLES STRIPPING ( 6 ) 3 ( 3 ) 1 Eff Cap TAKT ZZ XX Invtry Days # SKUs XX Eff Cap TAKT ZZ XX CAPACITY FORECAST ( MONTHLY ) SALES & OPERATIONS PLANNING AGGREGATED DEMAND ( MONTHLY ) MASTER PRODUCTION SCHEDULE ( MONTHLY ) DEMAND MANAGEMENT PROCESS CUSTOMER SERVICE REPS PRODUCTION SUPERVISOR CURRENT INVENTORIES MATERIAL RELEASES ORDER GRANTS ORDERS DAILY PRODUCTION SCHEDULE ( WEEKLY ) Invtry Days # SKUs XX CASTING ROLLS ( 6 ) Eff Cap TAKT ZZ XX ROPE CUTTING 6 ( 6 ) 6 Eff Cap TAKT ZZ XX BAGGING PALLETIZING ( 3 ) 3 Eff Cap TAKT ZZ XX Invtry Days # SKUs ZZZZ 42 XXXX CUSTOMERS, DISTRIBUTORS Quantity / time TAKT Lead time Exp ZZZZZ XXXX 7 Days 23

24 SYNTHETIC RUBBER MANUFACTURING CONFIGURATION Weigh Tank 1 Weigh Tank 2 Weigh Tank 3 Polymerization Kettle 1 Polymerization Kettle 2 Polymerization Kettle 3 Polymerization Kettle 4 Polymerization Kettle 5 Polymerization Kettle 6 Emulsion Strip 1 Emulsion Strip 2 Emulsion Strip 3 Casting Roll 1 Casting Roll 2 Casting Roll 3 Casting Roll 4 Casting Roll 5 Casting Roll 6 Cutter 1 Cutter 2 Cutter 3 Cutter 4 Cutter 5 Cutter 6 Bagging line 1 Bagging line 2 Bagging line 3 24

25 Weigh Tank 1 Weigh Tank 2 Polymerization Kettle 1 Polymerization Kettle 2 Polymerization Kettle 3 Polymerization Kettle 4 Polymerization Kettle 5 Polymerization Kettle 6 Emulsion Strip 1 Emulsion Strip 2 Emulsion Strip 3 Casting Roll 1 Casting Roll 2 Casting Roll 3 Casting Roll 4 Casting Roll 5 Casting Roll 6 Cutter 1 Cutter 2 Cutter 3 Cutter 4 Cutter 5 Cutter 6 Bagging line 1 Bagging line 2 Bagging line 3 Weigh Tank 3 SYNTHETIC RUBBER PRODUCTION ISSUES Problems and issues: No coordination between areas Flow not synchronized Batches built up between steps High WIP Flow patterns had extreme variation (5,000 possible routes!) Flow not visible, often confusing Batches sometimes had to be ditched Each grade produced once per month high FPI Transitions long and complex Yield loss on start-up 25

26 SYNTHETIC RUBBER FUTURE STATE ~ VIRTUAL CELLS Type F CELL Weigh Tank 1 Type J CELL Weigh Tank 2 Type R CELL Weigh Tank 3 Polymerization Kettle 1 Polymerization Kettle 2 Polymerization Kettle 3 Polymerization Kettle 4 Polymerization Kettle 5 Polymerization Kettle 6 Emuls Strip 1 Emuls Strip 2 Emuls Strip 3 Casting Roll 1 Casting Roll 2 Casting Roll 3 Casting Roll 4 Casting Roll 5 Casting Roll 6 Cutter 1 Cutter 2 Cutter 3 Cutter 4 Cutter 5 Cutter 6 Bagging line 1 Bagging line 2 Bagging line 3 26

27 SYNTHETIC RUBBER BENEFITS OF CELLS Results: Transitions much faster Properties back on aim within minutes Yield losses dramatically reduced Asset productivity significantly increased Management by value stream, not by process function Quantitatively: Scrapped material down by 72% Variability reduced by 50% Lead time reduced by 28% $$ Time to reach aim properties: 5 hours 5 minutes Capacity increased by several million pounds per year 27

28 LEAN EVOLUTION Toyota 1950s on Other Japanese manufacturers 1960s 1970s Manufacturers in North America, Europe 1980s Process manufacturers late 1980s Global supply chains 1990s Pull principles Global logistics Procurement Sales & Ops Planning 28

29 LEAN EVOLUTION Complete enterprises 2000s Legal Finance HR Service industries 2000s Banking Health Care 29

30 LEAN EVOLUTION Capital Project Execution Systems Current system dysfunctional Cost overruns Late start-ups Used Value Stream Mapping to analyze causes Future State VSMs defined process improvements Used Cross-Functional Process Maps (swim lane charts) to map details 30

31 BARRIERS TO LEAN MIGRATION 1. Lack of vision Blinded by the technique Failure to see the underlying principle 2. Lack of appreciation for the cultural requirements The nature of change Critical Success Factors for sustainability 31

32 CULTURE IS FUNDAMENTAL! LEAN has a full set of very effective improvement tools Tools are great, but it s really all about the CULTURE The hard stuff is easy The soft stuff is hard! 32

33 IT S ALL ABOUT THE CULTURE! > ENGAGE > ENABLE > ENLIGHTEN > ENCOURAGE > EMPOWER WORK STANDARDS MUTUAL TRUST 33

34 IN CONCLUSION. It s not about the WHAT, It s about the WHY It s not about the METHOD, its about the CONCEPT Focus more on the PRINCIPLE involved Than on the TECHNIQUE > ENGAGE > ENABLE > ENLIGHTEN > ENCOURAGE > EMPOWER WORK STANDARDS MUTUAL TRUST 34

35 TO LEARN MORE.. Productivity Press May

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37 CONTACT INFORMATION Peter L. King