Lean and automation. Case presentasjon fra en private label produsent
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1 Lean and automation Case presentasjon fra en private label produsent
2 Valcon The How Management Consulting Company Valcon is a hands-on management consulting firm creating lasting footprints by focusing on areas where high impact on results are crucial to establish a long lasting competitive advantage for their clients. Valcons expertise are cross-functional and offers integrated solutions to complex challenges and situations. Operational Excellence Lean management Customer Experience Management - Winning the Customer Commercial Excellence The Price & Service is Right Strategy & Organisation Being First 2
3 Valcon s Operational Excellence Services STRATEGY & ANALYSIS SALES EXCELLENCE SUPPLY CHAIN TRANSFORMATION PROCUREMENT EFFECTIVENESS LEAN MANUFACTURING LEAN FINANCE & ADM PERFORMANCE MANAGEMENT TURNAROUND Oppgaver i kø Feil Unødige prosesser Overservicering Ventetid Ansvarsskift Avbrytelser og info søk 3
4 Some of our Operational Excellence footprints Global Manufacturing & Distribution Strategy, Lean implementation New Scandinavian SCM organization. Forecasting and planning, Procurement Inventory Management model, Warehouse structure planning Global Manufacturing & Distribution Strategy, Lean implementation Strategy, LEAN, Profit Management, Sales Excellence, Inventory reduction Nordic/Baltic integration (organisation, processes, performance management) Joint distribution CDK/CCDK. ABC/PM on SC processes, Lean/TPM implementation Global Supply Chain restructuring project. Forecasting. ABC Lean/TPM implementation, Supply Chain optimisation, ABC on Operations Lean implementation. Restructuring of Parcel business and distribution network Supply Chain cost analysis & Sales practice integration Supply Chain strategy and implementation, Cost reduction programme Lean SCM strategy and procurement assessment Prognosis tools for inventory management, LEAN Global Distribution Strategy. ABC. New SCM organization, Turnaround in OEM division Sales & Supply Chain optimisation European Manufacturing & Distribution Strategy ABC on Sales, R&D and Operations Supply Chain Management/ Lean logistics, Profit improvement project Accelerated inventory reductions and a procurement project LEAN, Supply Chain strategy Supply Chain Strategy. Sourcing, Forecasting. ABC. Global Supply Chain analysis Warehouse structure planning, Inventory planning tools, LEAN Production Strategy, ABC, Supply Chain development Supply Chain strategy, Lean enterprise, Procurement LEAN Manufacturing implementation ABC on operations. Global SC strategy Review of Operation Strategy, Forecasting Global Manufacturing & Distribution Strategy, Lean implementation 4
5 The challenge Implement a new and improved Lean production line for major mattress group. How do you increase capacity and efficiency at your factory? For the group, a entirely new concept based on Lean automation principles was the answer. Issues: Lack of space. Work at the factory was marred by poor flow and interaction. Poor overview of how things were progressing. The percentage of errors in production specifications was too high. Quality defects too frequent. Raw materials were not always ordered in due time, leading to further interruptions in production. Lead time was to long, generating a lot of WIP 5
6 Six products with forty variants are run on one line IKEA Tafjord Flatpacked Visco elastic 7 cm IKEA Tjøme Rollpacked Foam 5 cm IKEA Torod Flatpacked Latex 7 cm IKEA Tårsta Rollpacked Foam 4 cm IKEA Tveit Rollpacked Latex Innercover 5 cm IKEA Trandal Rollpacked Polyfiber in quilt 2 cm IKEA 6
7 Satisfactory basic Lean set up in factory before improvement: Max capacity: pcs on 3 shifts with over 130 persons A lot of manual handling and transportation with forklifts and dollies Lead time 72 hours or longer To much poor ergonomics lifting heavy products etc A lot of work in progress Work centre concept factory within factory 7
8 Lean was implemented already without full impact. The factory has been working with basic Lean for 4 years, without good impact Implemented 5S, Kaizen Kan Ban systems, SOP Dedicated Lean team with 3 persons Implemented visual management systems 8
9 Valcon introduced Lean automation approach Analysis Design Implementation Continuous improvement Detailed analysis of process materials and finished goods Process analysis Automation analysis Value stream mapping: product, material, information Waste analysis Time studies Tact time / work balance Simulation Continuous flow in sewing production lines High level of automation Lean supply chain model 5S concept enhanced Quality control and SOPs Performance Management KPI concept real time Lean organization Model RFQ tender process Evaluation and bidding Hands on implementation High degree involvement - Management and Shop floor workers Install solutions Kaizen events Lean meeting structure Communication tools Performance measurement Boards electronic Improved automation Improvement logs Deviation system Lean management tools 10 months from start to finish Training and coaching: Lean production principals Performance Measurement Training and coaching: Continuous flow Tact time and work balance RFID robotics Quality assurance and SOPs Training and coaching: Performance Measurement Tact time /line optimization Teams Lean principals: Shop Floor Training and coaching: Performance Measurement Communication tools Kaizen 9
10 Overall project objectives Increase productivity by minimum 20% Introduce high degree of automation Add full traceability to products Improve quality of products Better work environment and minimal forklift traffic 10
11 Lean automation gave considerable impact: Area Before Improvement Results Capacity: 1 million pcs on 3 shifts with less than 130 persons >130 FTE >130 FTE > 30% Lead time reduced from 72 hours down to 3 hours 72 hours - 69 hours 96% Work in progress from 24 hours down to 1 hours work 24 hours - 23 hours 96% Automatic packing and robotized palletizing Manual Ergonomics > 30% Work centre concept enhanced to total integration Buffers between Integrated > 30% Automatic handling and transportation with conveyors Trolleys+ forklift Automatic conveyors > 30% 11
12 Simulation and engineering process based on Lean principals 12
13 Advanced IT tools with RFID was necessary to control the system Day -1 Foam cutting MO Material requirements MO Day 1 Deliver material Start production APP M3 (MOVEX) Daily production planning Release MO Release material picking list with bar code Pick lists Eton select Planning sewing and assembly Import MO Detail prun RFID database Line controller PLC Control RFID foam pallets, Packing, Palletizing robots, Pallets, labelling pallets Stock Finished Goods Assigned location MO foam RM warehouse Tics Fillings Latex Fiber Other prun prun Foam dep Foam Cutting & gluing Deliver forklift Quilting Sewing Assembl filling Foil Packing 3 labels Print apply Robot palletizin Label pallet Pallet Conveyor PLC Report: Material delivered Border sewing Stock Borders Wool stockinet Foam pallets With RFID assigned Report: FG pallet Assign location Update WMS 13
14 Example of Lean automation: Quilting process transformation Automatic pick-up from quilt machines to overhead conveyor Light tables with in line quality assurance and check IT system line controller informatics tools to reduce overproduction RFID and Barcode textile tracing to end customer 14
15 Example of Lean automation: Sewing process transformation Automatic transportation and handling using overhead conveyors Improved ergonomics Improved flow IT tools to manage and balance workstations 15
16 Example of Lean automation: Assembly process transformation Automatic foam and Latex handling by the conveyor system and robots Automatic cover transportation and faults handling Automatic RFID labeling and tracking of products and raw materials 16
17 Example of Lean automation: Packing & palletizing process transformation The most difficult and heaviest job is now fully automatic. 17
18 Example of Lean automation: Improved flow and balancing using IT tools Automatic process balancing for each workstation Automatic transportation in whole system Informatics support with process supervising and managing Shorter internal lead time gives higher flexibility 18
19 Example of Lean automation: Product traceability & identification by Collecting and store data in one unique RFID tag about: Raw material, source which supplier and suppliers batch numbers Monitor flow trough all of the workstations Identifying products through the production process and in warehouse 19
20 Example of Lean automation: Improved quality by Increased quality check on quilting machines using light worktables Using RFID tags to deliver more accurate data to define problem areas in whole process Using robots to add repetitiveness in packing and palletizing process Using conveyors thus reducing the risk of damaging covers and foam in the transportation process 20
21 Summary of successful Lean automation The project increased productivity by Automation of internal transportation of foam and covers Automation of all heavy lifting jobs, especially in packing area Reduced non-value added time in whole process Improved ergonomics Introducing KPI performance measurement and visualization system Improved flow and production control Reducing lead time from 72 hours down to 3 hours Reducing WIP from 24 hours down to 1 hours work After Units per man-hour Over 30% increase in productivity Before 0 0,5 1 1,5 2 2,5 3 3,5 4 4,5 21
22 Agile manufacturing is the future What is Agility? Agile = Quick moving, Active, Quick, Brisk, Sprightly, Nimble "For a company, to be agile is to be capable of operating profitably in a competitive environment of continually, and unpredictably, changing customer opportunities." 22
23 Agile manufacturing is the future "Agility is a name. It's a name for the reorganization of production, adapted to distinctively new market forces that have undermined the mass production organization of business that has dominated the 20th century. These new forces include: Intensifying global competition The fragmentation of mass markets into niche markets Cooperation among companies, including companies that are direct competitors Evolving customer expectations toward individualized products, and expecting much more than reliability as quality. Break with mass production; emphasis on mass customization. Greater flexibility for customized products Scope is enterprise wide Formation Virtual enterprises Emphasis on thriving in environment marked by continuous unpredictable change Acknowledgement and attempts to be responsive to change. The organization of business in a way that is adapted to these new market-place forces is what we call agile. 23
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