Lean Manufacturing and Implications to Procurement

Transcription

1 Lean Manufacturing and Implications to Procurement Peter Tyszewicz VP-Manufacturing & Product Development BC Supply Chain Council September 23, 2004

2 Introduction to Lean History & Definition Lean Thinking and Techniques Lean and Procurement Focus Lean Simulation Implementation & Philosophy Resources 2

3 An Evolution From Mass to Lean Production Not entirely Japanese United States Japan 1900 Time and Motion F. Taylor Interchangeable Parts E. Whitney Jidoka S. Toyoda Mass Production Henry Ford Today and Tomorrow, 1926 Just-In-Time K. Toyoda 1945 Supermarket System U.S. Productivity and Quality Seminars Toyota Production System Taiichi Ohno 1973 U.S. consumers look for smaller cars; Big 3 market share decline begins 1st Oil Shock Japanese industry recognizes TPS and dissemination begins

4 Lean is a philosophy that recognizes WASTE as the primary driver of cycle time, cost, and quality and employs techniques to continually drive out the waste in processes Business as Usual CUSTOMER ORDER Waste PRODUCT SHIPMENT Time Lean Manufacturing CUSTOMER ORDER Waste PRODUCT SHIPMENT Quality Cost Time (Shorter) 4

5 What is Waste? VALUE: An activity that transforms or shapes raw materials or information to meet customer needs WASTE: Activities that consume time, resources and space, but do not contribute to satisfying customer needs Customers will pay for value, increasingly they will not pay for waste. 5

6 Value and Waste Typically, where is effort directed? Of the time material is in the plant, what is the typical % of value added processing time? Moving Counting Sorting Acknowledging Orders Storing Invoicing Expediting What Value is Added by: Rework Inspecting Repackaging Returns to Supplier Creating Scrap Loading/Unloading Receiving Report 6

7 Types of Waste Categorized 1. Overproduction 2. Excess inventory 3. Defects 4. Non-value added processing 5. Waiting 6. Excess motion 7. Transportation 8. Underutilized people 7

8 Attributes of Lean -Accompanied by many proven techniques- Operational Stability Just-In-Time Standardization & Continuing Improvement Built In Quality 8

9 A Model of Lean Manufacturing Just-In-Time The right part at the right time in the right amount Material Control - Pull System or Kanban Level Production Flexible Operations Quick Change-Over /SMED Continuous-One Piece Flow Small Lot/Batch Production Shortest Lead Time Lowest Cost Standardization & Continuing Improvement The drivers of lean production Standardized Work Continuous Improvement Activity Waste Recognition & Elimination-VSM People Enabling Systems Best Quality Built In Quality Quality in the Process Manual & Automatic Line Stops Andon System Error Proofing Poka-Yoke Visual Management Equipment Total Productive Maintenance Labor-Machine Efficiency Robust Products & Processes Operational Stability People Cultural Awareness Supplier Involvement Workplace Organization-5S 9

10 Thinking Lean Specify value can only be defined by the ultimate customer Identify the value stream exposes the enormous amounts of waste Create flow reduce batch size and WIP Let the customer pull product through the value stream make only what the customer (internal/external) has ordered Seek perfection continuously improve quality and eliminate waste From Lean Thinking by Womack and Jones 10

11 Value Stream Mapping (VSM) Applicable to manufacturing, administration or service Mapping the Current State for Manufacturing -Minimize/eliminate non-value add processes- Storage Machine Inspect Storage Transport Assemble Storage Q/T: 180 min. MCT: 5 min. Q/T: 30min. Q/T: min. Q/T: 3 min. C/T: 35 min. Q/T: min. WIP: 60. Set-up: 180 min. WIP: 45. WIP: 105 WIP: 60. Set-up: 60 min. WIP: 150. Batch size: 15 Yield: 88% Batch size: 15 Scrap: 4.5% Scrap: 1.5% Rework: 2.3% Rework: 8.3% 3 hrs 5 mins. 30 mins. 10 days 3 mins. 35 mins. 20 days 11

12 Value Stream Mapping (VSM) Applicable to manufacturing, administration or service Mapping the Current State for Admin or Service: Issuing PO, Issuing Checks, Requisition, Processing a Claim -Minimize/eliminate non-value add processes- Storage Analyze Data Approval Transport Storage Format Report Storage Q/T: 180 min. MCT: 5 min. Q/T: 30min. Q/T: 3 min. Q/T: min. C/T: 35 min. Q/T: min. WIP: 60. Set-up: 180 min. WIP: 45. WIP: 60. WIP: 105 Set-up: 60 min. WIP: 150. Batch size: 15 Yield: 88% Batch size: 15 Scrap: 4.5% Scrap: 1.5% Rework: 2.3% Rework: 8.3% 3 hrs 5 mins. 30 mins. 3 mins. 10 days 35 mins. 20 days 12

13 The VSM Process Creating Spaghetti Chart Before After Before After Improvement Inventory / WIP 96 Modules 32 Modules 66% Part Travel Distance 2.3 Miles 320 Feet 97% Lead Time 27 Days 2 Days 93% Assembly Operations 8.5 Hours 6 Hours 29% 13

14 Just In Time-Batch Issues Continuous One Piece Flow and Small Batch Production A production run that requires three processes with a tact time of one minute each Batch Processing Process 1: Cycle Time is 10 minutes for 10 part batch. Process 2:: Cycle Time is 10 minutes for 10 part batch. Process 3: Cycle Time is 10 minutes for 10 part batch. Total Batch A Processing Time: 30 minutes for 10 parts 21 minutes lead-time for the first part Continuous Flow, Small Batch Processing Process 1: Cycle Time 1 minute per part. Process 2: Cycle Time 1 minute per part. Process 3: Cycle Time 1 minute per part. Total Processing Time: 12 min. for 10 parts Only 3 minutes for 1st part The The advantage of of continuous flow, flow, small small batch processing; Processing production run run in in batches of of requires minutes Processing production run run in in batches of of one one requires only only minutes 14

15 Excess WIP 15

16 Inventory Hides True Production Problems and NVA Activities Lean Gets rid of the rocks and the expensive inventory! DECREASING INVENTORY LEVEL GENERATING DEFECTIVE PRODUCTS LONG SET UPS REWORK DELAY IN DELIVERIES POOR HOUSEKEEPING MACHINE BREAKDOWNS MIXED MATERIALS 16

17 5S Policy Statement Tools and techniques available to support 5S It is the responsibility of all the employees, located at all facilities and offices to implement 5S and to maintain it through a regular audit procedure. 5S Defined Sorting (SEIRI ): clearly distinguish needed items from unneeded items and eliminate items causing clutter. Systemize (SEITON ): keep needed items in the correct place to allow for easy and immediate use. Shine (SEISO) : keep work areas clean and tidy. Standardize (SEIKETSU): use agreed methods for consistency. Sustain (SHITSUKE ): QuestAir will provide the time and tools for continuous improvement. QuestAir Technologies Inc. S 3S Checklist Date: Auditor(s): Department: Score Comments Unnecessary items or inventory S Any objects on walkways O Storage areas for defective or used items R Storage areas for future production T Any unneeded documents and drawings Are there current work cell visuals in place Total Score /30 S All storage areas established Y Storage spaces clearly labeled S Cabinets and shelves orderly T Production, lab. areas and walkways lit E All hand tools storage properly identified M Bulk materials appropriately stored I Sufficient signage throughout the area Z Tools for cleaning visible and accessible E All safety zones clear and unhindered Total Score /45 S Walkways, entrances and floors clean H Walls and windows clean I Washrooms and trash cans clean N Machines free of debris, oil and dirt E Puddles of oil, water or any liquids anywhere Total Score /25 Auditor's comments: Score rating: Audit Schedule: 1 - POOR, 5 - BEST GRAND TOTAL of st week of the month - Laminate Area 2-nd week - Machine Development 3-rd week - Seal Development and Office Areas 4-th week - Prototype testing area 17

18 Evidence of 5S 18

19 In Need of 5S 19

20 Benefits of 5S Supporting zero defect initiatives defects hard to see when there is clutter designated storage reduces tool/part selection errors clean equipment tends to operate more consistently Lower waste levels free up space for VA ed activities buying too many of everything Reduce process delays visible conditions less wasted motion / movement reduce potential injury safety hazards identified quicker exits are kept clear Reduce mechanical breakdown crud causes failures abnormalities are visible regular checking = reduced downtime Reducing tool change time equipment cleanliness = shorter tool change time clearing space = machine logical storage of tools/dies with visual status Improve customers investors & suppliers perception first impressions important grocery or hospital mentality evidence of 5S is typical of world class or best in class operations Signifies stability & control trust and respect are gained from employees & customers sign of discipline and pride establishes credibility with stakeholders denotes a growth orientated company 20

21 Lean -Focus on Procurement- Visual Material Management VMI Simple-bin replenishment Elegant-link into ERP Partnerships and Collaborations Joint DFMA reviews Lean Assessment How good is your supplier? Which Lean attributes do they apply? 21

22 Project Rooms X-Functional Lean Project Management Project Management Charters Schedules Risk Assessment Manufacturing PFMEA Value Stream Engineering DFMA DFMEA Exploded Views Testing Results Purchasing Exploded Actual Costs Targets Costs Suppliers & performance DFMA Reviews Sales 22 Benchmark

23 Visuals Business Unit Operating Metrics Pictures of Metrics board not shown Job BOM, labour Cost Warranty Cost Customer Open NCRs Manufacturing Interruptions Engineering Hours per job Sales Types of inquiries Quote response Reasons for lost sales Sales to date Purchasing Supplier Performance 23

24 Visuals Purchasing and Material Management-Kanban 2-Bin Kanban System Once bin is empty, second bin moves down Kanban from empty bin is remove Parts arrive and Kanban is then put back into full bin Order is place into ERP system 24

25 Visuals Purchasing and Material Management-Kanban 2 Crate Kanban Supplier receives one and must fill in all the components for a kit prior to return 25

26 Visuals Purchasing and Material Management-VMI Vendor Managed Inventory Moderate value purchased parts & multiple users -User scans part -supplier notified of consumption-part cost is charged automatically to appropriate project code and G/L-Supplier replenishes and reconciles 26

27 Visuals Purchasing and Material Management-VMI Low Value Items Fasteners, screws etc Cost to order typically exceeds value of order Supplier visits and maintains top up of bins 27

28 Visuals Making Scrap Visual-to employees and suppliers Automotive Radiator Water Pipes 28

29 QuestAir Manufacturing Approach -Supplier Collaboration for non-core- Focus on Core Strengths Laminate Structures Valve Design Packaging Testing Development Partnerships for Non Core Local Suppliers Tier 1 & 2 Auto-parts suppliers Process equipment suppliers Volume manufacturers Integration New Product Development & Project Management Processes to integrate core and non core aspects Machine not shown 29

30 Manufacturing Approach -Supply Chain Leverage &Pre-Fabricated H-3200 Modules- Pictures not shown Pictures not shown Pictures not shown As received from supplier Assembled & tested with beds, valves and remaining ROP Prepare for shipping Package and Ship 30

31 Manufacturing Processes Documented process flow and procedures to eliminate errors & to capture lessons learned Pictures not shown 31

32 Simulation Understand by doing For further information on the simulation that was conducted, please contact me directly. I can also suggest other sources for more extensive Lean Simulations. Lean Waste 32

33 Implementing Lean Executive Support Identify and support Lean champions Perform an assessment tied to company strategic, operational, and marketing plans Identify priority areas Develop strategic lean roadmap Leverage readily available Lean training materials and resources to learn techniques Don t rely on the consultant for implementation or long-term Use consultants that have varied industry experience to get you up the learning curve Get an early win applying a Lean Technique-then promote it! 5S, Manufacturing Cell, Set-Up Reductions, Inventory Reductions, Work Standardization Establish improvement teams to progressively Blitz highest priority areas in the company 33

34 The Lean Start Implementing Lean is Counterintuitive and challenging to implement: Small flexible rather than large economies of scale machines Shutting down equipment when no requirement is pulled There is no step-by-step cook book Varies from organization to organization Requires an assessment of the company in order to map out the strategy Company culture plays a big part Toyota 14 Principles Stresses It s a way to work Lean procurement is an inherent element of Lean Manufacturing Suppliers need to be aligned or selected for their ability to work in a Lean environment Purchasing professionals should be thinking Lean Traditional EOQ approaches need to be challenged 34

35 Supplier Assessments Do you recognize Lean in your Supply Base? Mini-Lean Assessment General Sales/yr Margins Lab$/yr Raw Mat/yr SqFt Cap % Communication Goals/Obj QC Probs Targets Visuals The Wall Empl Locations Measurables Pareto Scrap/QC Downtime Perf M/C Up Suplr Qual People X-Training Flexibility Teams/Contimpr Training Production Balance WIP Bottlenecks Movement Ded'ed Cells ID NVA Maintenance PM Sch Set-Up Time Freq Scheduled Flex Equip Other SRED M&A Error Proof Poke-Yoke DFMA co-op VSM Material FINV Raw Pull Storage Supermrkts Recv'g Windows Housekeeping Clean Clutter Std Vis Cntrls 35

36 Lean Resources Sources: g.htm Good Primers: Local Lean Community/CME Affiliates: BC Manufacturing Consortium (CME) Contact: Werner Knittel-VP BC Div. (604) David Chao-Managing Director/Lean Sensei (604) High Performance Manufacturing (HPM)-Ontario, Cooperates with CME David Hogg-President

37 Lean Manufacturing and Implications to Procurement Peter Tyszewicz VP-Manufacturing & Product Development office cell Ed Wolosezky- Manager-Quality and Purchasing Jason Penner-Purchaser