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Lean
Manufacturing
Lean Manufacturing is a philosophy of operations whose
base objectives are increasing speed while eliminating
all forms of waste. This is a highly focused methodology
that emphasizes the reduction of non-value added activities
in the manufacturing process, as well as in the processes
that support manufacturing. A manufacturer that has adopted
the lean principles uses the minimum amount of manpower,
materials, money, machines, space, etc., to get the job
done in order to achieve world class levels in cycle time
and quality.
Lean Manufacturing has identified
and focuses on eliminating 7 forms of waste from daily
operations:
1. Waiting
2. Overproduction
3. Production of Defects / Rework
4. Excess Inventory and Raw Materials
5. Motion of Personnel
6. Transportation of Product
7. Unnecessary Processing
Just-In-Time
(JIT)
Our Just-in-Time (JIT) methodology is tightly coupled
to the Toyota Production System, developed by Taiichi
Ohno, Shigeo Shingo and others. It encompasses the successful
execution of all manufacturing activities required to
produce a product, from design engineering to delivery,
including all stages of manufacturing, from raw material
to final product. Central to the methodology is the use
of Kanbans and pull systems to synchronize the end-to-end
manufacturing process, resulting in lower inventories
and higher levels of on-time delivery. When properly adapted
to the organization, JIT supports Lean Manufacturing and
has the ability to strengthen our client’s competitiveness
in the marketplace, by reducing wastes while improving
product quality and production efficiency. There are also
strong cultural aspects associated with the implementation
of JIT, supported by our philosophy around the application
of cross functional teams.
Single
Minute Exchange of Dies (SMED)
A tool used to reduce the time it takes to change over
a machine or a process, typically referred to as change
over or set-up time. Set up time is measured from the
time the last good part is completed by an operation,
until the first good part of the next production run is
completed. Dr. Shigeo Shingo pioneered the concept of
Single Minute Exchange of Dies (SMED) in order to reduce
the fixed cost associated with the set up. The basic concept
behind SMED is the reduction of setup time (cost), which
allows smaller batch sizes to be produced and results
in shorter manufacturing cycle times and lower work-in-process
inventory. This concept is especially beneficial as it
allows the manufacturing system to quickly adjust to changes
in production schedules, driven by design or customer
requirements.
SMED identifies and isolates the two components of setup
time: internal set-up activities and external set-up activities.
SMED uses a simple approach to achieving short changeover
times by using the following steps:
• Separating internal and external set-up
• Converting internal set-up to external
• Streamlining the steps in the process
Total
Predictive Maintenance (TPM)
Total Predictive Maintenance was originated by the Canadian
Air Force and then migrated to many high capital cost
enterprises such as Airline, Power Plants, Mines and Semiconductor
Plants. When a plant goes into a lean manufacturing flow,
there is more emphasis on uptime of equipment. Cells where
equipment fails begin to shut down the plant, and the
plant maintenance people need to react quickly. Consequently,
Mean Time Between Failure (MTBF) and Mean Time to Repair
(MTTR) become key metrics. TPM begins to focus on the
diagnostic side of maintenance: anticipating where the
failure will occur and when, reducing both diagnosis and
repair time, and ultimately focusing on eliminating the
root cause of downtime altogether. The goal becomes Zero
Breakdowns and Zero Defects - a philosophy of continuous
improvement.
Total
Quality Management (TQM)
A very complete methodology that became popular in the
U.S., at the same time as JIT in the late 80’s.
TQM focuses on quality management systems, Voice of the
Customer, the next operation as customer, total process
yield, and Statistical Process Control. When a plant goes
into a lean manufacturing flow, there is more emphasis
on process and product quality. When processes are found
to be out of control, cells must stop the process and
quickly find and eliminate the root cause. This begins
to shut down the plant, and the process engineers and
management need to react quickly. Our TQM methodology
provides the quality systems and process controls that
support Lean Manufacturing and instills a culture of continuous
improvement.
Six-Sigma
A more recent version of TQM first developed by Motorola
in the late 80’s and modernized by General Electric
in the late 90's. Jim Lotterer, founding partner at BLMC,
was one of the first practitioners at Motorola's Automotive
Division to develop this methodology. Initially, six-sigma
focused on attaining at least a 10 times improvement in
all performance measures, in a two to five year time frame.
BLMC works with clients to establish objectives for this
type of rapid improvement. We then provide client teams
the six-sigma tools to reach the objectives. Six Sigma
has now expanded into design and white collar operations
as a process to improve quality, eliminate non-value added
tasks and reduce cycle time. It is generally used by operations
for cellular improvements and by BLMC in end-to-end process
improvement, across the enterprise.
Kaizen
Kaizen is a philosophy of continuous incremental improvement…
It is the pursuit of actions whose output is intended
to improve existing processes. During the course of a
BLMC engagement, we implement organizational systems and
mechanisms that help create and foster a climate for continuous
improvement.
The nature of a restructuring project requires that very
aggressive organizational goals and objectives are established.
We use the basics of Kaizen in conjunction with the Design
Teams to involve as many people in the organization as
possible. These Kaizen or Continuous Improvement teams
take the project from implementation to maturity. When
we involve everyone in the improvement process, we find
that results are attained faster and with less resistance.
Five
S
5S is a philosophy of order. It focuses on cleaning, organizing,
developing, and maintaining a productive work environment.
Part of the Toyota Production System, the five Ss are the
first letter of five Japanese words for specific types of
order. Many companies use English words to describe the
five principles while trying to keep the integrity of the
original Japanese meanings. A good example is:
- Seiri (Sort)
Distinguish between what is needed and not needed and remove
all unnecessary items. Arrange all remaining items neatly
and in efficient locations with all items clearly marked
and labeled. -
Seiton (Storage)
"A place for everything, and everything in its place".
Create visually marked places for all necessary items
and maintain their correct placement after use.
-
Seiso (Shine)
Cleaning and looking for ways to keep clean using schedules
and guidelines. -
Seiketsu (Standardize)
Make standards clear, obvious, and useful. First discover
all necessary information and standards and then create
a visible and useful chart/checklist that aids in employee
efficiency. -
Shitsuke (Sustain)
After defining the rules of engagement, creating systems
that will help ensure that employees follow the rules.
| Some benefits of 5S
include but are not limited to: |
Tangible:
• Reduce Defects – Higher Quality
• Reduce Waste – Lower Costs
• Reduce Injuries – Increased Safety
• Reduce Delays – Reduce MTTR, Increase
On-time Delivery, Increase Productivity
• Reduce Red Ink – Corporate Growth
Intangible:
• Makes the workplace more pleasant and efficient
• Makes jobs more satisfying
• Removes obstacles and frustrations at work
• Makes communication easier
• Provides opportunities for personnel to contribute to
workplace organization |
Pull
Systems
Kanbans, perhaps the most widely known form of pull systems,
also has it’s origins in the Toyota Production System.
The Japanese word Kanban (Kan-Card, Ban-Signal
or in English “Signal Card”) represents the
information necessary to produce only what is needed, when
it is needed. Kanbans signal the order, quantity, type,
and location of what needs to be produced at a specific
moment in time. They in essence serve as a work order that
can visually control the Work-In-Process throughout the
entire manufacturing area.
In order for Kanbans to be effective
there must be systems in place that support the concept.
The most important of these systems is the enforcement of
adherence to Kanban Rules-of-Engagement. If the rules that
govern the Kanban system are violated, the integrity of
the kanbans themselves becomes corrupted. Some basic and
simple rules that are fundamental and necessary are:
1. Do not send defective parts to the subsequent process.
2. The downstream operation draws only what is needed.
3. Refill only the exact quantity that was withdrawn by
the subsequent process.
4. If there is no Kanban signal to produce, an operation
must stop production.
5. Kanbans are returned to previous operations for replenishment
6. Very high levels of FIFO must be maintained. (>90%)
Performance
Boards
We believe that it is essential to measure the right parameters.
By creating performance boards within production cells,
management will have clear visibility into the productivity
and effectiveness of operations. Stand-Up meetings should
be held around performance boards to analyze the past and
plan improvements for the future. A hidden benefit of performance
boards is human nature to perform at exceptional levels
when their efforts are visible. Employees invariably strive
to meet or achieve their goals when they know that their
efforts will be viewed by anyone who enters their work space.
See Examples Below:
| Hourly |
Target |
Shift |
7:00AM |
8:00AM |
9:00AM |
etc.. |
Act |
Var |
Act |
Var |
Act |
Var |
Act |
Var |
| Output |
100/hr |
Day |
98 |
2 |
x |
x |
x |
x |
x |
x |
| Night |
100 |
0 |
x |
x |
x |
x |
x |
x |
| FPY |
95% |
Day |
90% |
(5%) |
x |
x |
x |
x |
x |
x |
| Night |
95% |
0 |
x |
x |
x |
x |
x |
x |
| Linearity |
100% |
Day |
99% |
1% |
x |
x |
x |
x |
x |
x |
| Night |
99% |
1% |
x |
x |
x |
x |
x |
x |
| Daily |
Target |
Shift |
MON |
TUE |
WED |
etc.. |
Act |
Var |
Act |
Var |
Act |
Var |
Act |
Var |
| Output |
100/hr |
Day |
98 |
2 |
x |
x |
x |
x |
x |
x |
| Night |
100 |
0 |
x |
x |
x |
x |
x |
x |
| FPY |
95% |
Day |
90% |
(5%) |
x |
x |
x |
x |
x |
x |
| Night |
95% |
0 |
x |
x |
x |
x |
x |
x |
| Cycle
Time |
8hrs |
Day |
7.5 |
(.5) |
x |
x |
x |
x |
x |
x |
| Night |
8.2 |
.2 |
x |
x |
x |
x |
x |
x |
| OEE |
92% |
Day |
90% |
(2%) |
x |
x |
x |
x |
x |
x |
| Night |
95% |
3% |
x |
x |
x |
x |
x |
x |
| Weekly |
Target |
Shift |
WW1 |
WW2 |
WW3 |
etc.. |
Act |
Var |
Act |
Var |
Act |
Var |
Act |
Var |
| Output |
100/hr |
Day |
98 |
2 |
x |
x |
x |
x |
x |
x |
| Night |
100 |
0 |
x |
x |
x |
x |
x |
x |
| FPY |
95% |
Day |
90% |
(5%) |
x |
x |
x |
x |
x |
x |
| Night |
95% |
0 |
x |
x |
x |
x |
x |
x |
| Cycle
Time |
8hrs |
Day |
7.5 |
(.5) |
x |
x |
x |
x |
x |
x |
| Night |
8.2 |
.2 |
x |
x |
x |
x |
x |
x |
| OEE |
92% |
Day |
90% |
(2%) |
x |
x |
x |
x |
x |
x |
| Night |
95% |
3% |
x |
x |
x |
x |
x |
x |
| DPPM |
50 |
Day |
66 |
11 |
x |
x |
x |
x |
x |
x |
| Night |
50 |
0 |
x |
x |
x |
x |
x |
x |
| 5S
Audit |
A- |
Day |
A |
+1 |
x |
x |
x |
x |
x |
x |
| Night |
A |
+1 |
x |
x |
x |
x |
x |
x |
Cross
Functional Teams
Our cross functional team methodology is the key to the
successful completion of projects. We work with our clients
to establish cross functional teams and provide them the
tools and training to see the true state of the operation…
this gets them to the same level of understanding as we
have, so that we jointly own the problem. We establish
large cross functional teams, usually 15 to 30 people
from the client who will be the basis for the design team,
and ultimately the implementation team. A large portion
of the team comes from the area being rethought. We look
for the informal leaders that people will value hearing
from and who can lead change. In a manufacturing project,
we would expect 50% of the people to be operators or technicians,
some percentage to be engineers, and some to be administrative.
No Managers! After the first few weeks the design team
owns the problem and feels responsible for the solution
and is anxious to implement it. BLMC then moves to a teaching
role and advisory position. We transfer knowledge as we
work with the teams to analyze and design the To-Be state.
But early on, they begin to take responsibility for the
project.
Factory
Automation
The optimization of design and implementation of material
handling and assembly automation in a factory or warehouse
application with the intent of improving quality, reducing
inventory, reducing cycle time, improving changeover time,
and allowing high mix and high volume product strategies.
This methodology includes how to work with a systems integrator
or factory automation house in order to lower the cost
of automation and the time to develop the automation.
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