Beyond Lean Manufacturing

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Nora Hines
6 years ago
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1 PRODUCT CONFIGURATION MANAGEMENT Beyond Lean Manufacturing 1

2 Agenda State of discrete manufacturing productivity Strategies for competitive advantage Suggestions for getting started and Questions 2

3 Agenda State of discrete manufacturing productivity Strategies for competitive advantage Suggestions for getting started and Questions 3

4 Most manufacturers have implemented relevant lean concepts Quality Six Sigma Poka-Yoke (error proofing) Zero Defects TQM Production JIT Demand Flow Technology Quick Changeover Kanban Lean has been a life preserver People High Performance Work Teams Kaizen Process 5S (sort, set in order, shine, standardize, and sustain) Value Stream Mapping 4

Look where it s gotten us Productivity only improved <2% a year 16% 14 12 10 8 6 4 2 0-2 Computer Equipment &

5 Look where it s gotten us Productivity only improved <2% a year 16% Computer Equipment & Components All other durable goods DURABLE MANUFACTURING PRODUCTIVITY COMPOUND GROWTH 5

6 Productivity Why? Productivity slips as cost rise over time Lean projects used capital which drove productivity back down As lean projects drove down costs, productivity rose Labor + Materials + Energy + Purchased Services Time 6

7 Look where it s gotten us 16% While labor productivity rose, productivity of all resources was flat DURABLE MANUFACTURING PRODUCTIVITY COMPOUND GROWTH 7

8 Agenda State of discrete manufacturing productivity Strategies The best strategies for competitive may not advantage be the most obvious ones Suggestions for getting started and Questions 8

9 Strategies for competitive advantage Next Wave of Lean Breakthrough Strategies Automatically create BOMs & routes Partner Reconnaissance Finish design automation Flexible Sales 9

10 Strategies for competitive advantage Next Wave of Lean Breakthrough Strategies Automatically create BOMs & routes Partner Reconnaissance Finish design automation Flexible Sales 10

11 Automatically create BOMs & routings as customer orders arrive Setup Take Prep for mfg Maintenance BEFORE Set up 1,000,000s of star parts with unique BOMs & routings for each feature combination Take an order for a customized product Search for the right star part that matches the product as customized Make changes to 100,000s of BOMs & routes when manufacturing changes & options are introduced AFTER Set up rules so a unique BOM & routing can be created as customized products are ordered Take an order for a customized product Dynamically create BOMs and routings by following the rules Change 1 set of rules 11

12 Shop drawings are now a standard part of the manufacturing process Receive Ship Shop drawings are a key strategy to reduce defects in customized products Create shop drawings Make product They are generally drawn by individuals once an order has been received Errors in that manual process can cause significant downstream problems 12

13 Downstream effects of shop drawing errors Eroded customer confidence Receive Materials Receive Ship Notified of Error Materials Receive Ship Materials Lead Time Create shop drawings Expedited Lead Time Quote to Sales Cycle Make product Ship Inspect - Install Find Cause Expedited Re-make Ship Inspect - Install Unexpected customer delay Costs to expedite, re-make, re-ship & re-install Extra mgt & customer service time to be ultraresponsive & then to regain trust 13

14 Typical process fix: Add improved drawings Q/A Receive Materials Receive Ship Notified of Error Materials Receive Ship Materials Lead Time Create shop drawings Q/A Expedited Lead Time Quote to Sales Cycle Make product Ship Inspect - Install Find Cause Expedited Re-make Ship Inspect - Install 14

15 Better process fix: Automate drawings Automate Drawings Receive Materials Receive Ship Eliminates downstream effects of drawing errors Materials Lead Time Quote to Sales Cycle Automate Drawings Create shop drawings Q/A Make product Ship Inspect - Install Eliminates drawing labor Reduces order-to-ship time Engineers focus on innovation rather than assisting CAD operators with shop drawings 15

16 Strategies for competitive advantage Next Wave of Lean Breakthrough Strategies Automatically create BOMs & routes Partner Reconnaissance Finish design automation Flexible Sales 16

17 Partner Reconnaissance Good Better Best Material Planning Strategies Use past orders as demand Use ERP quotes as demand Use partner quotes as demand Materials planners typically use planning bills Materials forecast accuracy can be improved by incorporating dealer and distributor quotes into the planning process s will experience fewer order delays Receive Quote Materials Receive Ship Materials Lead Time Quote to Sales Cycle Make product for customer 17

18 Flexible Sales Flexible Manufacturing OBJECTIVES Remain efficient even as volume and variety change Prepare for planned changes and react to unplanned changes OBJECTIVES Flexible Sales Dynamically adjust market offerings to stay within limits of manufacturing flexibility Improve profit, given the customer s need and manufacturing flexibility COMPONENTS CNC machines, material handling and control system COMPONENTS Manufacturing triggers for sales tactics Second-generation sales tactics 18

19 Working together Flexible Manufacturing Flexible Sales example 1: A work center has down-time for a two-week swap out of a CNC titanium milling machine. When you are sole supplier When you can offer alternatives Quote as usual but push ship date based on CTP Dynamically remove from quote options list Maximize appearance of stable product portfolio Maximize appearance of fast lead time When demand is time sensitive Dynamically create alternate routing resulting in higher price Maximize appearance of being highly responsive 19

20 Working together Flexible Manufacturing Flexible Sales example 1: A work center has down-time for a two-week swap out of a CNC titanium milling machine. When you are sole supplier When you can offer alternatives Quote as usual but push ship date based on CTP Dynamically remove from quote options list Maximize appearance of stable product portfolio Maximize appearance of fast lead time When demand is time sensitive Dynamically create alternate routing resulting in higher price Maximize appearance of being highly responsive 20

21 Working together Flexible Manufacturing Flexible Sales When you are sole supplier Quote as usual but push ship date based on CTP Maximize appearance of stable product portfolio example 2: A work center is scheduled to reach capacity in it s ability to deal with a specific operation for a month When you can offer alternatives When demand is time sensitive Dynamically remove from quote options list Dynamically create alternate routing resulting in higher price Maximize appearance of fast lead time Maximize appearance of being highly responsive 21

22 Working together Flexible Manufacturing Flexible Sales When you are sole supplier Quote as usual but push ship date based on CTP Maximize appearance of stable product portfolio example 2: A work center is scheduled to reach capacity in it s ability to deal with a specific operation for a month When you can offer alternatives When demand is time sensitive Dynamically remove from quote options list Dynamically create alternate routing resulting in higher price Maximize appearance of fast lead time Maximize appearance of being highly responsive 22

23 Agenda State of discrete manufacturing productivity Strategies for competitive advantage Survey Suggestions results for and getting suggestions started and for getting Questions started 23

24 Ways to get started Explore Infor manufacturing ideas Infor.com Network with us to discuss the breakthrough strategies See case examples of the Next Wave of Lean strategies 24

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Five Tips to Achieve a Lean Manufacturing Business

Five Tips to Achieve a Lean Manufacturing Business Executive Overview Introduction The more successful manufacturers today are those with the ability to meet customer delivery schedules while maintaining