Eliminating Flow Wastes!

Transcription

1 SOLE Mid-Atlantic Conference March 30, 2005 Eliminating Flow Wastes!

2 OBJECTIVES Conventional Silo Focused Process 1 Kaizen Creating Lean Value Stream Flow Eliminate Waste within Value Stream Processes - Improving Flow from Suppliers to Point-of-use - Eliminating Wastes throughout the Value Stream - Synchronizing & Controlling Work-in-process Flow - Lean Performance Metrics to Sustain Improvements APPROACH PRODUCTS All Rights Reserved. For permission to use this material, please contact James Price, (859) x 407, 2004 Suppliers Value Stream Focus Process Kaizen Process 1 4 Customer Analyze, then Streamline Value Stream Operations - Align Lean Principles with Value Stream Elements - Apply Value Stream Improvements to an Actual Case Study CO. - Focus on Work-in-process & Materials Control & Synchronization - Discuss Methods to Effectively Sustain Improvements Shorter Lead Time, Higher Quality, & Lower Costs - Understanding of Value Stream Flow & its Impediments - Understanding Lean s Ability to Sustain Efficient Flow - Awareness of the Business Value of a Flow Focus - Best Practices for Sustaining Lean Improvements

3 SOLE Mid-Atlantic Lean Enterprise Conference Creating Lean Value Stream Flow Discuss value stream and work cell flow principles and how they improve productivity and business performance Discuss value, value streams, continuous flow, pacing, balancing work, pull mechanisms, quality at the source, lean work process flow, and value stream mapping Apply these lean principles to actual production processes to demonstrate their value in satisfying customers, shortening lead time, assuring quality, and reducing costs

4 SOLE Mid-Atlantic Lean Enterprise Conference Creating Value Stream Flow Segment 1 2:00 to 3:30 Value Stream Flow Principles Producing to a Tempo Standardizing Flow Activities Balancing Work Mistake Proofing Reducing Changeover Interruptions Assuring Quality Pull Processes Work Cell Flow Segment 2 4:00 to 5:00 Value Stream Mapping Move-All Forklift Case Study Visual Process Control JIT Feeder Process Synchronization Just-in-time Materials Flow Future State Transformation Wrap Up & Discussions

5 Improving customer satisfaction by reducing lean time!

6 Value Stream Flow Kaizen VALUE STREAM = All steps, both VA & NVA, required to bring the product from raw material to customer Product Group Value Stream Suppliers Process 1 Process 2 Customer You ll probably have to create Value Stream Managers Kaizen Conventional View: No single person responsible for product family Departmental Mgrs, have authority over their Silo only Primary reason why focus has been on process vice value stream improvement With Lean Focus: VS Mgrs responsible across functional & departmental boundaries Responsible for their product s Future State vision VS Mgrs, have authority to make changes happen Report directly to Sr. Mgmt All Rights Reserved. For permission to use this material, please contact James Price, (859) x 407, 2004

7 How Bad it Can Get!

8 What Happens When Your Manufacturing Lead Time Exactly Matches Your Customer s Allowance? You are Impacted by Every Change! Customer s Product Delivered Product Order Finished Customer Desires Product Product Order Begun Turning Your Manufacturing Cycle Within Your Customer s Time Allowance to Buy your Products Reducing Lead Time Desired Design Change! Less Quantity Needed! Need for the Product Quicker! Product Manufactured Time Need for the Product Quicker!

9 Customer s Product Delivered Customer Desires Product Reducing Lead Time Product Order Finished Product Order Begun Pace Operations Continuous Flow! Eliminate Handling! Lead Time Is Reduced by Eliminating Wastes! Remove Wastes! Continuous Improvement! Standardize Everything! Smooth & Balance Workload! Remove Delays! Time

10 Customer s Product Delivered Customer Desires Product Reducing Lead Time Product Order Finished Desired Design Change! Product Manufactured Product Order Begun Reducing Your Manufacturing Lead Time Allows You to Schedule per Your Plans and Avoid Most Changes Less Quantity Needed! Need for the Product Quicker! Need for the Product Quicker! Time

11 Ideal Value Stream Flow 1 DOS Parts Suppliers Daily Receiving C/T= 30 m U/T= 100% XOXO Cutting C/T= 60 m U/T= 100% Cutting C/T= 60 m U/T= 100% 90/60/30 day forecast ADJ- Next Day Order ADJ- Welding C/T= 90 m U/T= 100% Welding C/T= 90 m U/T= 100% Welding C/T= 90 m U/T= 100% 5 th Machine required due to 80% Availability Production Control Visual Control Board ADJ- ADJ- Machining C/T= 120 m U/T= 80% Machining C/T= 120 m U/T= 80% Machining C/T= 120 m U/T= 80% Machining C/T= 120 m U/T= 80% Machining C/T= 120 m U/T= 80% ADJ- ADJ- ADJ- ADJ- ADJ- 90/60/30 day forecast Send Next Weekly Order Made one! Send Next! Packaging C/T= 30 m U/T= 100% Customers 1 DOS Daily Shipping C/T= 30 m U/T= 100% Customer Order Frequency = 1 product every 33 minutes Flow is Sized to produce 1 product every 30 minutes

12 Ideal Value Stream Flow Parts Suppliers Customers C/T= 120 m Daily Daily U/T= 80% Con XOXO WIP 1 DOS 1 DOS Receiving C/T= 30 m U/T= 100% Cutting C/T= 60 m U/T= 100% Cutting C/T= 60 m U/T= 100% 90/60/30 day forecast ADJ- Next Day Order ADJ- Best Throughout Rate = 1/30 mins Best Throughput Time = 180 mins DUE DATE Kit ing PULL Storefronts Processes Welding C/T= 90 m U/T= 100% Welding C/T= 90 m U/T= 100% Welding C/T= 90 m U/T= 100% ADJ Production Control Visual Control Board ADJ- ADJ- ADJ Machining Machining C/T= 120 m U/T= 80% Machining C/T= 120 m U/T= 80% Machining C/T= 120 m U/T= 80% Machining C/T= 120 m U/T= 80% ADJ- ADJ- ADJ- ADJ- ADJ- 90/60/30 day forecast Weekly Order Packaging C/T= 30 m U/T= 100% Shipping C/T= 30 m U/T= 100% L/T: WIP = 1 ~ 180 m WIP = 5 ~ 750 m WIP = 10 ~ 3,000 m ADJ ADJ L/T: WIP = 1 ~ 30m WIP = 5 ~ 150m WIP = 10 ~ 300m L/T: WIP = 1 ~ 30 m WIP = 5 ~ 150 m WIP = 10 ~ 300 m L/T: WIP = 1 ~ 30 m WIP = 5 ~ 150 m WIP = 10 ~ 300 m L/T: WIP = 1 ~ 30 m WIP = 5 ~ 150 m WIP = 10 ~ 300 m L/T: WIP = 1 ~ 30 m WIP = 5 ~ 150 m WIP = 10 ~ 300 m L/T: WIP = 1 ~ 30 m WIP = 5 ~ 150 m WIP = 10 ~ 300 m Flow s Common Denominator is 30 minutes per product along its flow!

13 What makes a Value Stream Flow? Parts Suppliers 90/60/30 day forecast Next Day Order Production Control Visual Control Board 90/60/30 day forecast Weekly Order Customers C/T= 120 m Daily Daily U/T= 80% Con XOXO WIP 1 DOS 1 DOS Receiving C/T= 30 m U/T= 100% Cutting C/T= 60 m U/T= 100% Cutting C/T= 60 m U/T= 100% ADJ- ADJ- Welding C/T= 90 m U/T= 100% Welding C/T= 90 m U/T= 100% Welding C/T= 90 m U/T= 100% Maximize value-added & minimize waste Shortest possible lead time Smallest work-in-process buffers possible One-piece-at-a-time where possible Minimum material, space, people Man & machine separated Consistent productivity & quality Machining Machining C/T= 120 m U/T= 80% Machining C/T= 120 m U/T= 80% Machining C/T= 120 m U/T=80% Machining C/T= 120 m U/T= 80% ADJ- ADJ- ADJ- ADJ- ADJ- ADJ- ADJ- Packaging C/T= 30 m U/T= 100% Shipping C/T= 30 m U/T= 100% Flexible workforce Perfect quality passed downstream Abnormalities immediately apparent Simple, single purpose automation Multi-process handling

14 Synchronized Production What happens to a Lean Flow if a machine breaks down? if a defective part is included with good parts? Assembly Plant Welding Answer! Flow is disrupted! Stamping 2nd Tier Solution! 1 st Tier Immediately alert to problems, then correct immediately!

15 The beat of your business!

16 Takt - Pacing the Flow Synchronizes pace of assembly to match pace of sales. Rate for assembling a product based on rate of sales. Takt Time = Effective Working Time per Shift Customer Requirement per Shift 27,000 sec 460 pieces = 59 seconds 8 hrs = 28,800 secs 1,800 secs (Lunch) = 27,000 secs

17 One Piece Flow Replenishment Signal Customer Orders Raw materials Step # 1 Step # 2 Step # 3 Customer Product Flow Reduces inventories of parts & WIP Rapidly readjusts to changing orders Enforces quality at the source Allows fast defect feed back Exposes problems (Stops Process)

18 Importance of Leveled Sequencing Cumulative Work Time at Work Centers t Worker will fall way behind Demand Perfect Match of Demand to Capacity! Unleveled sequencing No. units produced # Leveled sequencing Leveling prevents starvation Allows much smaller buffers Cumulative Work Time At Work Centers t No. units serviced #

19 Try to Schedule Only 1 Point Magnitude of Fluctuations = Higher Inventories Schedule Customer Process 1 Process 2 Process 3 Process 4 Schedule Process 1 Storefront Pacemaker The pacemaker should be operated with minimal volume fluctuations and batching. Low changeover times and frequent changeovers. Pacemaker Process 2 Process 3 Process 4 Customer Storefront Manufacturing Lead Time

20 Pull Process Workload Balancing Load Leveling Device - Levels Work, Mix, Volume, & Time Work Content Categories S-A S-B Release Pitch Increments 8:00 8:20 8:40 9:00 9:20 EE S-B DD S-A BB S-B XX S-C Work Unit XX S-B XX S-A XX S-A XX S-C XX S-A XX S-B XX S-C ConWIP Card Made one! Send Next! S-C CC S-C FF S-C Workload Balance Device XX S-C XX S-B XX S-A WIP Limit = 50 Units of work Exit = 20 Units/Day Average Cycle Time = Unit WIP / Exit Rate = 50 Units / 20 Units per Day Work Content = 2.5 Days AA = Highest Value BB = Medium Value CC = Lowest Value XX S-A Requires 1-2 hours XX S-B Requires 3-5 hours XX S-C Requires 6-12 hours

21 Pacing Production 1 2 M/H takes Kanbans to the Heijunka box M/H picks up next kanban at Heijunka pacing device 3 M/H drops kanban off at Fabrication (authorizing them to build 20 more products) 4 M/H picks up the last 20 mins worth of boxes in tote 5 (1 Pitch = 1 Tote = 20 pcs) M/H moves 20 boxes to Finished Goods Storefront Move-All Forklifts Retrieve Kanban 2 Deliver Kanban 3 Pre-requisite for lean is that both the mix & volume be leveled 20 Fabrication Takt= 60 sec C/T= 55 sec 3 Carry Kanbans to Heijunka Deliver Parts 4 5 Retrieve Parts LH RH Daily Shipping Staged

22 Balancing Work through Sequencing PC Arrays kanbans on board to balance work between workstations 1,2,3,4,.n over time for mix, volume, work & time content, and priority Every hour a Column of kanbans are passed to the pacemaker to launch down the lane Workstations are work-loaded evenly over the work period, thus products flow consistently to shipping Schedule 1 2 XOXO 3 4 n Work Station Loading Visual Sequencing Board Launch Times = Pitch n n n n 4 3 n n Balance Work Content 1 4 n n n 3 4 n n n Balance Work Station Loading Process 1 Pacemaker Process 2 Process 3 n 4 3 n Station Station Customer Storefront n Station n n 0.2 X time 2 X time requirement 10 X time Rqmt

23 Assuring Consistent Quality!

24 Standardizing Work Standardized Work Definition Best combination of worker and machine to achieve output with minimum labor, space, inventory, and equipment Objectives To establish and clarify the guidelines for manufacturing Provides a tool for improvement Where there is no standard, there can be no improvement!

25 Standardizing Work Purpose of Standardizing Work To document the process Develop operator instructions Provide training aid (for new operators) Reduce variations in the process Reduce opportunities for error Describe the best methods at the present time Clearly illustrate the relationship between TAKT time and cycle time Operator Cycle Time Time to complete one cycle of an operation (manual operations, walking, inspecting, unloading/loading machines, & gauging) Does not include waiting for machine auto cycle to finish This is different from the historical definition

26 Value & Flexibility of Standardizing Work B Processes Team Member Team Mate A Team Mate B SOP B SOP C Standardizing Work SOP D A SOP E F SOP SOP A B G SOP Cell is manned as necessary by demand

27 Creating the common denominator!

28 Leveling Work 60 sec Takt Customer Demand Rate 39 sec 46 sec 62 sec 40 sec With padding 55 sec Balanced Work Content Goal Shared Process 1 sec Machine Weld Grind Polish Assy Dedicated Processes

29 Leveling Work 60 sec Takt Customer Demand Rate 1 sec Grind Weld Grind Grind Polish Polish Polish Assemble Assemble With padding 55 sec Balanced Work Content Goal Machine Weld Grind Polish Assy Excess team member redeployed!

30 Assuring continuous flow!

31 Mistake Proofing Jidoka (Autonomaton) Definition: Use of automation to Mistake-Proof the detection of defects, freeing up team members to perform multiple tasks Purpose: Achieve zero defects & promote flow within a JIT process Functions: Separate human work from machine work Develop defect prevention devices Autonomation: automated with a human touch

32 Mistake Proofing poka-yoke Contact Example Top View Parts Flow Side View No Notch Good pin Bad pin Pins with notches proceed Pins without notches are stopped Good Part! Bad Part!

33 Mixed product production, without impact!

34 Changeover Reduction Multiple Fixtures Multiple Drill Sizes Example Objective! Make products as needed, not in batches Single Fixture * From J.T. Black, Designing and Implementation of Lean Manufacturing Systems and Cells, in Handbook of Cellular Manufacturing Systems, S.A. Irani, ed., John Wiley, 1999.

35 Quality at the Source Toyota s Quality Assurance!

36 Quality at the Source Components Source Inspection Focus on the Error, the source of mistakes Error Prevention 100% Inspection 100% Correction QUALITY AT THE SOURCE Error Prevention [Jidoka & poke yoke] Processes that stop on detection of a mistake Process that correct themselves Self & Successor Inspection 100% Self Inspection 100% Successor Inspection Feedback Immediate Document in Standard Work Immediate Corrective Actions Intellectually Engaged Worker Tools Signaling System Andon - Alert Visual Controls Response System Stop & Fix Eliminate Cause

37 Defect/Problem Discovered LOW Much Higher Own Process Cost to Correct Defect or Problem QUALITY at the SOURCE LOWERS COST Next Process End of the Line Ability to Find & Eliminate Defect or Final Inspection Problem Customer Much Higher LOW

38 Producing Only What s Needed!

39 Pull Processes Conventional Push Factory Flow We! MRP Pushed Receipts Raw Materals Buffer raw materials because we can t trust our suppliers to deliver on-time Feeders Parts Stockroom Assembly Buffer WIP between feeder & assembly because we can t manage flow within our own plant Finished Goods Customer Driven Orders We! Buffer Finished goods to protect us from erratic customer demands & order changes Inventories are maintained: Just-in-case a problem develops As hedges against a failure to perform As a result of mismatches between supply and demand

40 The Pull System A production system driven by actual consumption and controlled by synchronized replenishment signals It is simple, highly visible and cost effective, and, most importantly, it really works! Responds quickly to day-to-day deviations Continuously advises everyone the next steps necessary to maintain synchronization within the system Enables a higher level of production activity & inventory control Supplier order Replenishment Signals Customer Order Receiving Production Shipping Customer Raw materials Product Flow Product Delivery

41 Storefront Kanban Process [ Low to moderate variety, small batch, and rapid setup ] 1) Customer process goes to storefront and withdraws what it needs when it needs it. 2) Supplying process produces to replenish what was withdrawn. Production kanban Withdrawal kanban Supplying Process Customer Process A Product Product B Storefront Employ: 2 cards if stations widely separated 1 card if stations close

42 Pull Processes Storefront Kanban Process A B Production Kanban Produce Authorizations In In In C Upstream Store Front In D Store Front Process Flow In F Customer Store Front Withdrawal Kanban Get Authorizations Downstream Unit Movement Replenishment Orders In Buffer Storefront

43 Pull Processes Signal Kanban Process - Machines - Packaging - Feeder Cells Signal kanban [ Moderate variety, large batch, high volume, and long setup ] Withdrawal kanban Supplying Process Customer Process A Batch Of Products Individual Product B Storefront

44 Pull Processes Continuous Work-in-Process (ConWIP) Lanes (ConWIP) Production Control Sequence Make [ High variety, low volume product mix ] Release for next sequenced product A B C In-Process In-Process In-Process Strict processing rule Must cap WIP at work centers Appropriate when processes are spread out

45 Feeder Process Synchronization Continuous Work-in-Process (ConWIP) Kit ing Storefront Process Make Customer Service Sequence [ High variety, low volume work unit mix ] ConWIP Release for next sequenced work unit Upstream Process A Upstream Process B Upstream Process C All Components Available Kit ing Storefront D In-Process A- E In-Process A- F In-Process Adjusted down stream of Kit ing storefront

46 Passing WIP one piece at a time!

47 Work Cell Flow Enhanced Flow Objective: Create a good balance between high specialization Conventional I I I and worker/equipment flexibility and adaptability I versus I Just-in-time I I Characteristics Long lead times Backtracking & cross flows High WIP quantities No quality feedback Lumpy flow thru process Slow quality feedback I I Characteristics Shortened lead times No backtracking or cross flows Lower WIP quantities Smooth flow thru process Immediate quality feedback High level of flexibility Less specialization, higher skills

48 Work Cell WIP Flow Value & Flexibility of Creating Work Cells B Machines In/Out Buffers Buffer Worker Worker A B C X D A Worker X s Path Y E F Worker X Worker Y A Worker Y s Path G Workers X & Y double output over Worker A alone Material & WIP Flow

49 Assure constant safety and best possible ergonomics Minimize walking distance Remove movement obstacles Leave NO! room for WIP to accumulate Do all work at waist level Convey, Don t Carry Pass WIP continuously by balancing work Shadow board tools at point of use Use gravity to convey WIP Put IN & OUT buffers at same spot Suspend tools over point of use Eliminate tool changeover delays (e.g., bit changes, etc.) Work Cell Flow Cell Layout Design B A C X D 5-10 feet Y E F G

50 Work Cell Flow Linked Work Cells Workcell Workcell Workcell Workcell A B C D In Out In Out In Buffer Buffer Out in Out Buffer Finished Products Raw Materials Upstream Production Flow Downstream WIP/Parts Movement Withdrawal kanbans In/Out Buffer

51 Cellular Work Processing Focused Product Assembly Cells Cross-assignments Drill Saw Router Sander Cell Cell Cell Cell Drill -Weld - Finish - Assy Saw -Weld - Finish - Assy In Out In Out In Router -Weld - Finish - Assy Sander -Weld - Finish - Assy Out in Out Parts & WIP Customer Customer Customer Customer Parts & WIP Parts & WIP Parts & WIP Advantages: Self & Successor inspection Significantly shortened lead time Continuous flow no in-baskets Demand balanced between cells Teaming approach balanced work Inter-cell task standardization Built in pacing mechanisms Firm authority & responsibilities Cross-trained flexible cells Flexible reassignment between cells

52 Visualizing Your Flow!

53 Value Stream Flow Mapping If you don t know where you are. How will you get where you re going? A) Follow your product s process path from beginning to end, and draw a visual representation of every activity in the material & information flow. Q? How can we flow information so that each process accomplishes only what s needed by the next process exactly when its needed? B) Then draw an aggressive, yet feasible Future State map of how value should flow. All Rights Reserved. For permission to use this material, please contact James Price, (859) x 407, 2004

54 Raw Materials Receiving Fabric Cut Orders To Source Sewing Example Value Stream Orders From Customer Customer Shop Orders to Floor Shipping Upholstery Final Assy Frame Assy Foam Cut Foam Assy Auto Seat Manufacturer All Rights Reserved. For permission to use this material, please contact James Price, (859) x 407, 2004

55 Example Current State Map Process Icon Box Data Box Icon C/T = Cycle Time = Process beginning to end C/T=60 sec C/O=0 sec U/T = 94% Avail=24,000 s Shifts = 3 Scrap = 2 % C/O = Changeover Time Uptime All Rights Reserved. For permission to use this material, please contact James Price, (859) x 407, 2004

56 Example Current State Map Information Flow Inventory Buffer PUSH Arrow Icon Material Flow All Rights Reserved. For permission to use this material, please contact James Price, (859) x 407, 2004

57 A Real World Example!

58 Move-All Forklift Teaching Case Study Electric & IC Forklift Truck Manufacturer Fortune 500 Privately owned corporation Three factories in the U.S. and three factories overseas Case study plant produces approximately 12-14,000 high variety, highly optioned forklift trucks annually Three hundred plus suppliers, twenty outside U.S. U.S. retail dealer network Primary processes: frame welding, painting, and assembly Most parts delivered by suppliers in lessthan-full-truckloads (LTL) Enterprise Resource Planning (ERP) business system Concentration on Light Internal Combustion models (6 broad variants) OHG = Overhead Guard CTWT = Counterweight Upright LBR = :Load Bearing Rack

59 Move-All Forklift Example Case Study Plant Layout Heavy Welding Area Production Areas Material Areas

60 Move-All Forklift Teaching Case Study MRP Driven Day # 1 Day # 3 Day # 5-7 Day # 7-9

61 Move-All Forklift Teaching Case Study

62 Move-All Forklift Teaching Case Study Problems: Assembliers must call forward what is required Everything moved by forklift Empty backhauls Forklifts severely underutilized Light loads Traffic congestion & accident risks Cardboard debris at work centers All material handled >5 times Line stops for shortages or moves on without them MRP never knows current availability status Excessive Point-of-use (POU) Storage

63 Move-All Forklift Teaching Case Study Original Receipt Processing Process Dump it on the floor! 1 Characteristics Handled Each Item > 5 Times Everything was unloaded onto dock for receipt processing Everything was then relocated to the drop zone Everything was then put up in a storage location Everything was then moved to the line when called for via radio

64 Move-All Forklift Teaching Case Study Forklift Required For Everything Little Working Space Work Cell Design Engineered Operator s Input Heavy IC Work Center

65 Internal Combustion Line - Teaching Case Study Current State Map I Parts Suppliers 18x Daily 5 DOS Parts Kit ing I I I I 1 DOS 7 2 DOS 2.3 DOS.9 DOS CTWT Warm 4 Parts Weld 9 Frame Weld 7 I I.7 DOS.4 DOS 6 week forecast Weekly fax I.7 DOS I 1.5 DOS I 1 DOS I.8 DOS I 1 DOS 11.2 DOS 6.1 DOS Daily Shop Orders Subassembly 3 Subassembly 5 CTWT Paint 8 Parts Paint 7 Frame Paint 5 I Production Control MRP 2.4 DOS I 1.8 DOS I 1 DOS I 1.1 DOS I 1.5 DOS I 1.7 DOS Pushed Daily Schedules Instrument 2 Engine 6 Drive Train 6 CTWT Cure 3 Parts Cure 3 Frame Cure 2 Assembly 90/60/30 day forecast Weekly Order 57 F/L day 1 shift FTL=5 F/Ls 165 Mins 182 Mins 185 Mins 55 Mins 68 Mins 76 Mins I 2.6 DOS I 1 DOS I 1.5 DOS I 3.2 DOS I 2.1 DOS I 1.5 DOS Daily Shipping Schedule I Current State 63.7 DOS Value Add Time 123 Team Members 5 M/Hs 25 Best Case Current State 17.5 DOS Value Add Time I I 1 DOS Options 9 I 1.1 DOS 9.5 DOS 11.9 DOS 1 DOS 1.1 DOS Forklift Dealers 13x Daily Shipping 5 Inspection 7 I 1.3 DOS 63.7 DOS hrs

66 Autopilot for production & logistics!

67 Visual Process Control Results Several surveys on what people retain indicate: People Remember about.. 10% of what the HEAR 25% of what they SEE 50% of what they SEE & HEAR 75% of what they DO 90% of what they SEE, HEAR, & DO

68 Forklift Assembly Teaching Case Study Color Coding Colors are used to identify common material management controls for each of the production lines These include: Kanbans Line dedicated parts labels & tags Signage along lines Production & quality control documents TPM location designators Value Everyone knows at-a-glance where everything belongs & goes Kanbans/documents can easily be shuffled into any progressive order desired

69 Move-All Forklift Example Case Study Color Coded, Day-by-day Frame, Component, and Part Tracking Tags OHG = Overhead Guard Blue Monday Green Tuesday White Wednesday Red - Thursday Yellow Friday Tan - Other CTWT = Counterweight Upright LBR = Load Bearing Rack

70 Bringing parts together gracefully!

71 Move-All Forklift Example Case Study Type Specific Color-coded Kanban Cards - Sequence - Withdrawal - Production

72 Move-All Forklift Example Case Study Sequenced WIP Pull Weld-Paint-Assembly Process Uses Dollies as Production Kanbans Caps WIP & balances workload

73 Move-All Forklift Example Case Study Welded Frame Pull Sequencing Process [Wednesday] 3-Day Cycle Card /Tag Wall Pockets Color Code By Day

74 How the Parts Move!

75 Move-All Forklift Example Case Study Dealer Dealer Dealer

76 Move-all Wheel P/C Louisville, KY Stamping Cell Louisville, KY Dedicated Loop System X O X O Daily Move-All Wheel Mounting cell Finishing Cell X O X O Move-All Valves P/C Bardstown, KY X O X O Daily Move-All Valves Maching cell Bardstown, KY Inter-Facility Materials Flow X O X O Shipped In Sequential Buckets 2x1d E-KB Qty E-KB Qty Failures Full Containers Empty Containers Are Kanbans Rolling 3-Day MASTER SCHEDULE MRP Missed Shipments Move-All Forklift P/C Lexington, KY X O X O Daily Move-All Forklifts Lexington, KY 2 hrs 6 hrs.8 hrs 1.5 hrs 1 hr 1. Move-All Sells a Forklift 2. Move-All PC Broadcasts Rqmts 3. Milk Run Routes pick up Parts 4. Failed Shipments Expedited TT= 11.3 hrs In-P= 8.8 hrs Trans= 2.5 hrs VAT=?? m.

77 Move-All Forklift Teaching Case Study WAREHOUSE becomes STOCKROOM! Expended = Next Pull 1 st Step not all Suppliers JIT Not Toyota s JIT

78 Daily Bucket (-) Move-All Forklift Example Case Study Marshalling Yard & Metering Process Docks PC A MRP Creates forecasts & Supplier Delivery Schedules Shelves & Lanes Parts Back flushed On Completion

79 Dolly Delivery Trains Move-All Forklift Example Case Study Improving Kanban Replenishment Source: World-Class Warehousing and Material Handling, Frazelle, 2002

80 Move-All Forklift Example Case Study Right Sized Totes/Tubs/Racks In/Use KB Wall Pocket Parts Flow Rack A Container Retrograde C B Withdrawal Kanban Gun Barcode Scan to Record Transactions

81 The most important part!

82 Internal Combustion Line - Teaching Case Study Future State Map Parts Suppliers Daily Receiving 5 Weld Kits S S S CTWT Warm 3 Parts Weld 9 Frame Weld 7 E-kanban 2.2 DOS Parts Kits S C.2 DOS C.2 DOS C S.5 DOS 2.2 DOS.9 DOS S 6 week forecast Kit E-kanban Sequence Kanbans & Build Tags Subassembly 3 Subassembly 5 CTWT Paint 7 Parts Paint 6 Frame Paint 5 S Production Control C.4 DOS C.5 DOS C.5 DOS C.6 DOS Visual Control Board C Instrument 2 Engine Drive Train CTWT Cure Parts Cure Frame Cure Daily Shipping Schedule Assembly Kiting Storefront 90/60/30 day forecast Weekly Order 57 F/Ls day 1 shift FTL=5 F/Ls Options 165 Mins 182 Mins 185 Mins 55 Mins 68 Mins 76 Mins C.8 DOS C.9 DOS C.8 DOS C.8 DOS C 1.2 DOS C Current State 63.7 DOS Value Add Time 123 Team Members 5 M/Hs Shipping 5 9 Inspection 2 Adjusted-.6 DOS Frame By-Pass.2 DOS.6 DOS 2.6 DOS 5.1 DOS 2.3 DOS.3 DOS 22 Future State 13.4 DOS Value Add Time 110 Team Members 3 M/Hs 2.1 DOS A-.3 DOS A- 1.2 DOS Forklift Dealers 13x Daily 5 A- A DOS hrs

83 Internal Combustion Line - Teaching Case Study Future State Map Parts Suppliers Daily Receiving 5 Weld Kits S S S CTWT Warm 3 Parts Weld 9 Frame Weld 7 E-kanban 2.2 DOS 2.2 DOS.9 DOS 165 Mins Parts Kits S C.2 DOS C.2 DOS C S.9 DOS S 6 week forecast Kit E-kanban Sequence Kanbans & Build Tags Subassembly 3 Subassembly 5 CTWT Paint 7 Parts Paint 6 Frame Paint 5 S Production Control C.4 DOS C.5 DOS C.5 DOS C.6 DOS Visual Control Board C Instrument 2 Engine Drive Train CTWT Cure Parts Cure Frame Cure C.8 DOS C.9 DOS C.8 DOS C.8 DOS C 1.2 DOS C Daily Shipping Schedule Assembly Kiting Storefront 90/60/30 day forecast Weekly Order Best Case Current State 57 F/Ls day 1 shift FTL=5 F/Ls 17.5 DOS Value Add Time Options Shipping 5 9 Inspection 2 Adjusted-.6 DOS Frame By-Pass.2 DOS.6 DOS.6 DOS.6 DOS 2.1 DOS.3 DOS 182 Mins 185 Mins 55 Mins 68 Mins 76 Mins 22 Best Case Future State 6.7 DOS Value Add Time 2.1 DOS A-.3 DOS A- 1.2 DOS Forklift Dealers 13x Daily 5 A- A- 6.7 DOS hrs

84 Achieving the Future State Lean Transformation Framework New Future State Map Lessons Learned Changes in plans Value Stream Kaizen Prioritized Kaizens All Rights Reserved. For permission to use this material, please contact James Price, (859) x 407, 2004

85 Conventional Silo Focused Process 1 Kaizen OBJECTIVES Creating Value Stream Flow Eliminate Waste within Value Stream Processes PRODUCTS Value Stream Focused Process Process - Improving Flow from Suppliers to Customers Suppliers Eliminating Wastes throughout the Value Stream - Synchronizing & Controlling Work-in-process Flow - Organizing Materials Delivery to Just-in-time - Creating Continuous Flow within Tightly Organized Work Cells - Visually Controlling & Synchronizing Flow - Sustaining Improvements through Lean Performance Metrics Shorter Lead Time, Higher Quality, & Lower Costs - Smoother, more Efficient Flow all Along the Value Stream - Identification & Prioritization of Process Kaizens - Effective Transformation Planning & Prioritization - Tie-in of Transformation to Business Objectives - Best Practices for Sustaining Lean Improvements Kaizen Customer All Rights Reserved. For permission to use this material, please contact James Price, (859) x 407, 2004