M FG Roadmap

Manufacturing 98 Conference
September 9-16, 1998
A Lean Manufacturing Road Map --Getting There From Here

Thursday, September 10, 1998 Management, #412
Larry Zimmer
Manufacturing Engineering, Inc.
Manufacturing 98 Conference September 9-16, 1998 Chicago, Illinois
TODAYS SESSION--DISCUSSION ITEMS

YOUR OBJECTIVES LEAN MANUFACTURING

THE JOURNEY --IMPLEMENTING LEAN
People Empowerment / Continuous Improvement
An Overview Characteristics of a Lean Process Comparison to Traditional Manufacturing Summary An Example--How it Works

Skilled Technical Implementation Risk Reduction
TECHNICAL IMPLEMENTATION REVISITED
BENEFITS OF LEAN

A Roadmap From Here to There --Getting Started
QUESTIONS
QUESTION:
WHAT DO YOU WANT TO ACCOMPLISH?
LEAN MANUFACTURING
A JOURNEY, NOT A DESTINATION!

LEAN MANUFACTURING--AN OVERVIEW

q q q
Waste is eliminated through continuous improvement efforts Focus is on product value stream, eliminating non-value added operations: storage, transportation, inspection The lean manufacturing mindset: -- Concepts, way of thinking not techniques -- Culture not the latest management tool Continuous product flow is achieved through: -- Physical rearrangement (e.g., manufacturing cells) -- System structure & control mechanisms Single-piece flow / small lot production: achieved through -- Equipment set up time reduction -- Attention to machine maintenance -- Orderly, clean work place Pull production / Just-in-time inventory control
LEAN MANUFACTURING CHARACTERISTICS

Processing: -- A part moves to a production operation, -- Is processed immediately, and -- Moves immediately to the next operation q With short order-to-ship cycles times, production is based on orders rather than forecasts q Inventories (RM, WIP, & FG) are minimized
q
Quick changeovers of machines & equipment allow different products to be produced with one-piece flow in small batches Layout is based on product flow Quality of each item is assured during processing
q q
TRADITIONAL MANUFACTURING CHARACTERISTICS

q
Production scheduled based on forecast Build to inventory Large batch sizes Layout based on department / function Central store room or production floor used for product staging
q q q q
Lot sampling used to check product quality

COMPANIES USING THESE APPROACHES HAVE OPPORTUNITIES TO MAKE IMPROVEMENTS
BENEFITS OF LEAN MANUFACTURING

WHAT IF I TOLD YOU IT IS POSSIBLE TO.
q Decrease your manufacturing cycle times
from weeks to days (70% or more)

q Reduce your inventories 50% or more
while increasing your customer service levels

q Increase capacity 50% or more in your current facilities q Maintain or increase your throughput while
-- Reducing your indirect labor by 50% or more -- Reducing your direct labor by 10% or more
BENEFITS OF LEAN MANUFACTURING (CONT.)

WHAT IF I TOLD YOU IT IS POSSIBLE TO.
q Improve your flexibility in reacting to changes in requirements
q Allow more strategic management focus q Increase shipping and billing frequencies, thus
improving cash flow

q Bottom-line: IMPROVE NET INCOME q Do all this with a payback period of SIX MONTHS OR LESS
LEAN MANUFACTURING--AN EXAMPLE

-- 3 PROCESSES: A, B, C -- PROCESSING TIME AT EACH = 3.2 MIN./UNIT BATCH 1000 A 3200 min. B 3200 min. C 3200 min. TOTAL 9600 min. (20 shifts) 10 32 min. 32 min. 32 min. 96 min. (.2 shifts) TOTAL INVENTORY = 3000+ parts vs. 30 SAVINGS = 19.8 SHIFTS
FIRST PART THROUGH SYSTEM = 6403+ minutes vs. 67+

HOW IS THIS DONE?

q
PEOPLE EMPOWERMENT / CONTINUOUS IMPROVEMENT SKILLED TECHNICAL IMPLEMENTATION RISK REDUCTION

LEAN MANUFACTURING PROCESS

WASTE REDUCTION TRADITIONAL MANUFACTURING LEAN MANUFACTURING
CONTINUOUS IMPROVEMENT
PEOPLE EMPOWERMENT
TECHNICAL IMPLEMENTATION
RISK REDUCTION
LEAN MANUFACTURING-A JOURNEY, NOT A DESTINATION
WASTE REDUCTION CONTINUOUS IMPROVEMENT
EMPLOYEE EMPOWERMENT
q Management Philosophy / Priority q Improvement: Everyones Job q Work Station / Cell Improvements q Suggestions / Implementation q Kaizen Improvement Teams
EMPLOYEE EMPOWERMENT (CONT.)

q Andon Control q Goal: Continuous Improvement q Extensive Training
-----
Lean Concepts Kaizen Approach Empowerment Ongoing Reinforcement

SKILLED TECHNICAL IMPLEMENTATION

q Lean Manufacturing Concepts & Principles
q Cellular Manufacturing & Facility Layout q Maintenance Improvement Programs q Machine Changeover Time Reduction q Process Development q Material Handling Solutions q Inspection Systems q Manufacturing Process Simulation
WHY ARE BOTH EMPOWERMENT & SKILLED TECHNICAL IMPLEMENTATION IMPORTANT?

STUDIES* CONCLUDE:
q
Technical implementation of lean yields some improvement Involvement of manufacturing workers (empowerment) yields some improvement In combination, result is a multiplier effect (i.e., improvement is greater than the two individually)
* 1. Dynamic Duo, Industry Week Census of Manufacturers, Dec. 1,1997, p. 42 2. Becoming Lean, Chapter 4, p. 103
RISK REDUCTION
q Time Up Front
--Information Gathering --Identifying Potential Savings q Road Map -- Big Hits First -- Narrow The Scope -- Save Time & Capital q Additional Facility Time: Training / Working With People -- To Assure Results q Computer Simulation -- Predict Performance Before Implementation
RISK REDUCTION (CONT.)

q Phased Implementation
-- For Control & Manageability

q Benchmark Against Others In Industry q Milestone Reviews q If You Use Outside Resources:
-- Fixed Contract Pricing -- Tie Payments To Milestone Completion -- Results Warranty -- Payback In Six Months Or Less
CONTINUOUS IMPROVEMENT
q Training
q Value Engineering / Product Design Analysis q Kaizen Improvement Teams q Poka-Yoke Methods to Assure Zero Defects q Pre-Automation: Equipping Machines to Detect
Abnormalities & Stop Automatically

A ROAD MAP q Information Gathering / Defining: 1). Product Groupings 2). Current Processes 3). Lean Process Team q Employee Training & Empowerment (Ongoing) q Initial Team Design Elements 1). Finalize Definition Of Current Process Flow 2). Process Review (e.g., Matl Handling, Layout, Maintenance, Quality, Technology Improvements) 3). Design Manufacturing Cells / 1-Piece Flow Approach 4). Define Maintenance Requirements / Program 5). Machine Set Up Time Reduction Program
SKILLED TECHNICAL IMPLEMENTATION REVISITED

A ROAD MAP (CONT.) q In-Process Design Review q Team Refinement Of Design 1). Finalize Initial Design Elements (As Needed) 2). Simulation 3). Work Standardization 4). Error-Proofing 5). Update Of Potential Savings q Design Review q Installation q Start Up / Control Manufacturing Engineering, Inc.

A ROAD MAP (CONT.)
q Continuation Of Team Design Efforts
1). Small Lot Production 2). Just-In-Time Inventory Control / Kanban 3). Pull Production q Design Reviews q Installation (Continuation) q Start Up / Control Of New Elements GOAL = WASTE ELIMINATION THROUGH CONTINUOUS IMPROVEMENT Manufacturing Engineering, Inc.
For additional information, please contact:

Name: Larry Zimmer Company: Manufacturing Engineering, Inc. Address: 1145-F Chesapeake Ave. Columbus, Ohio 43212 Phone: 614-487-8985 Fax: 614-487-8799 Email: Zimmer@MfgEng.com Web Site Address: www.MfgEng.com

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Manufacturing 98 Conference

September 9-16, 1998

A Lean Manufacturing Road Map --Getting There From Here

Manufacturing Engineering, Inc.

TODAYS SESSION--DISCUSSION ITEMS

YOUR OBJECTIVES LEAN MANUFACTURING

THE JOURNEY --IMPLEMENTING LEAN

People Empowerment / Continuous Improvement

Skilled Technical Implementation Risk Reduction

TECHNICAL IMPLEMENTATION REVISITED

A Roadmap From Here to There --Getting Started

Manufacturing Engineering, Inc.

Manufacturing Engineering, Inc.

A JOURNEY, NOT A DESTINATION!

LEAN MANUFACTURING--AN OVERVIEW

LEAN MANUFACTURING CHARACTERISTICS

TRADITIONAL MANUFACTURING CHARACTERISTICS

Lot sampling used to check product quality

BENEFITS OF LEAN MANUFACTURING

from weeks to days (70% or more)

while increasing your customer service levels

BENEFITS OF LEAN MANUFACTURING (CONT.)

improving cash flow

LEAN MANUFACTURING--AN EXAMPLE

FIRST PART THROUGH SYSTEM = 6403+ minutes vs. 67+

HOW IS THIS DONE?

PEOPLE EMPOWERMENT / CONTINUOUS IMPROVEMENT SKILLED TECHNICAL IMPLEMENTATION RISK REDUCTION

LEAN MANUFACTURING PROCESS

LEAN MANUFACTURING-A JOURNEY, NOT A DESTINATION

WASTE REDUCTION CONTINUOUS IMPROVEMENT

Manufacturing Engineering, Inc.

EMPLOYEE EMPOWERMENT (CONT.)

Lean Concepts Kaizen Approach Empowerment Ongoing Reinforcement

SKILLED TECHNICAL IMPLEMENTATION

WHY ARE BOTH EMPOWERMENT & SKILLED TECHNICAL IMPLEMENTATION IMPORTANT?

RISK REDUCTION (CONT.)

-- For Control & Manageability

Abnormalities & Stop Automatically

SKILLED TECHNICAL IMPLEMENTATION REVISITED

SKILLED TECHNICAL IMPLEMENTATION REVISITED

SKILLED TECHNICAL IMPLEMENTATION REVISITED

For additional information, please contact:

Manufacturing Engineering, Inc.

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