Welcome to Principles of Lean Manufacturing

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1 v3.0 The LE101 Experience Welcome to Principles of Lean Manufacturing 2018 Time Wise Solutions. All rights reserved.

2 The Real World Your External Customers What do they expect from you? Where do you fall short of Customer Delight? What do your customers say about you? Your Internal Stakeholders What are the goals for the business? Where do you fall short? 2

3 What is the Time Wise 101 Simulation? A learning experience that demonstrates the benefits of using Lean Manufacturing methods in a make-to-stock operation to achieve breakthrough business performance Lean concepts Lean methods and why they are used 3

4 How it Works You are immersed in an exciting manufacturing scenario as new employees of Time Wise, Inc. In four rounds, Lean manufacturing concepts are introduced and then applied in a realistic simulation The end results are measurable improvements which drive customer satisfaction and financial business objectives 4

5 Learning Objectives To learn by doing To experience the frustrations inherent in traditional manufacturing environments To participate in applying Lean principles in a simulated shop floor environment To witness the benefits of becoming a Lean enterprise 5

6 Overview Orientation to Time Wise, Inc. Intro to Lean Manufacturing Round 1 Business as Usual Round 2 Lean Foundations 5S, Standardized Work, Visual Management, and Plant Layout Round 3 Cycle Time Reduction Round 4 Demand-based Manufacturing Setup Reduction, Lot Size Reduction, Point of Use Storage, Quality at the Source Organizational Culture, TPM, Pull Systems / FIFO, Flow Manufacturing 6

7 Agenda Discussion Orientation to Time Wise, Inc. Simulation Round 1 Business as Usual 7

8 Orientation to Time Wise, Inc. Time Wise, Inc. is a traditional manufacturing company Manufactures specialty clocks Make-to-stock production 8

9 Products Promised Delivery Times 4 minutes After Order 5 minutes After Order All orders are filled First-In, First-Out (FIFO) 9

10 Quadrant Markers Quadrant markers are placed according to Work Instructions 10

11 Ornamental Plates Ornamental plates are positioned according to Work Instructions 4 inches from top 3/8 inch from right side 11

12 Hand Color Black clocks get yellow hands Blue clocks get white hands 12

13 Example Engineering Packet BOM--Black Diamond Clock # Name Mat'l Qty 1 Back Yellow 1 2 Spacer Clear 1 3 Ornament Plate Black 1 4 Face Black 1 5 Washer Brass 1 6 Movement Black 1 7 Retaining Nut Brass 1 8 Minute Hand Yellow 1 9 Hour Hand Yellow 1 10 AA Battery Charge 1 11 Quad Marker Green 1 12 Quad Marker Blue 1 13 Quad Marker Gray 1 14 Quad Marker Red 1 13

14 Production Batching 6 per batch 4 per batch 14

15 The Bottom Line Sells for $25 Materials cost $5.00 Sells for $30 Labor cost: Facilities cost: Materials cost $7.50 $7.50/person/shift $10.00/table/shift 15

16 Production Facility Sales Office *MONUMENTS Production Scheduling Vendor Kitting Area *Shipping Dock/Whs. WIP Storage Rework Area Clock Assembly Back Assembly Inspection Area Tool Crib Hand Assembly Face Assembly 16

17 Clock Assembly and Test Process Step 1: Face Assembly Attach quadrant markers to face Step 2: Back Assembly Attach ornamental plate to frame Step 3: Clock Assembly Attach motor, Face, and frame Step 6: Rework Correct defects Step 5: Inspection Check for defects Step 4: Hand Assembly Attach hands to motor shaft 17

18 Production Scheduling Process Customer Orders (demand) Customer Order Forms Shipments to Customers Production Forecast Factory Order Forms Finished Goods Warehouse 18

19 Simulation Roles Sales Representative Production Scheduler Kitters - 2 Material Handler Face Assembler Back Assembler Clock Assembler Hand Assembler Inspector Reworker Warehouse Clerk Instruction Crib Attendant Tool Crib Attendant Industrial Engineers - 2 Trucker Vendor Processes Customer Order Generates Factory Order from forecast Organizes raw materials for Factory Orders Moves product between ALL workstations Attaches quadrant markers to face Attaches ornamental plate to back Assembles clock Adds hands Inspects clocks for defects Repairs failed clocks Matches clocks to Customer Orders Controls work instructions Controls tools Monitors production process Ships products to the customer Supplies clock hands to TWI 19

20 Company Policies All shifts are 15 minutes Keep busy at all times Yell if you need materials moved Handle all material First-In, First-Out (FIFO) No Cherry-picking orders Only the Material Handler can move materials Stay at your workstation The boss is always right! 20

21 Round 1: Business as Usual Objectives Deliver all customer orders on time Minimize operational costs Maximize financial performance Let s go to Work! 21

22 Round 1 Performance Results Scoreboard Why were customer orders late or not delivered? What contributed to - Delays? - WIP Build Up? - General Chaos? 22

23 Agenda Discussion Historical & Conceptual Basis of Lean Lean Methods Foundations Simulation Round 2 23