10/26/2010

Plant Layout – Key Elements

Value Stream
Mapping

ANDON

Lean Layouts

Housekeeping

Quality First

Plant Layout

One Piece Flow

Load Leveling / Line
Balancing (Heijunka)

Lean Implementation and Product Design

Issues Lean People

Dr.Raj Mohan, drrmm2s@gmail.com

Plant Layout – Value Stream Mapping Plant Layouts – Andon Systems

• A cornerstone of LMS. VSM was used to understand Andon communication systems make abnormal
current flow, identify waste and execute principles to conditions immediately visible and apparent.
eliminate waste and arrive at the optimum future state. Response systems are developed and adhered to
in order to assure quick response and resolution

Stopped module

Materials

Maintenance

Production

Quality

Module Running

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Plant Layout – Plant Layout –

1Pc Flow / Manage by Takt Time Level Loading / Line Balancing (Heijunka)

Heijunka allows the set up of robust flexible

Decreasing line Takt time to coincide with operations that optimize labor using strategic
customer’s Takt time. Reduce waste by buffering and level loaded schedules to balance
building what is needed when it is needed. the work load.
Weighted Average [Sec.] @ 65 JPH
70 Plant 2 Front Line - AFTER
70 TAKT TIME [TT] = 55.4s (65JPH)

60 CUSTOMER TAKT TIME [TT] = 57.1s (63JPH)

60
C Y C LE TIM E IN S E C ON D S

50
CYCLE TIME IN SECONDS

50
60.00
40 40
50.00

30 40.00

T im e [ s e c .]
30
30.00
20 20
20.00
10 10.00
10
0.00
0 0 10 20 30 40 50 70 80 90B 100 110 130 140 150 160 170 180 190 200 220 230 240 270 290 300 310 350 380 390 410 420 430 440 450 460 480 500 520 530 540 560 570
1 2 3 4 5 6 7 8 9 10 11 12 13 1 2 3 4 5 6 7 8 9 10 11 12 Stations
OPERATIONS
OPERATIONS

Material Flow – Key Elements Material Flow –

Lean Containers & Packaging
• Another cornerstone of LMS. Right-sized containers is the key

Lean Containers & enabler of Lean Material Flow and effects the entire value stream. It
Packaging ensures proper workstation design and layouts which optimizes

Plan For Every Part value added labor, freight and protects product
(PFEP) / Plan For Every
Station (PFES)
Housekeeping

Central Material Storage

Quality First

Material Flow
Plant Layout

Pull Systems (Kanban)

Understand The
Exportshippingsupport.com TRUE COSTS
Of Incorrect Packaging
Product Design
Lean People

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Material Flow – Material Flow – Central Material Storage

Plan For Every Part / Station (PFEP / S)

Tool and process used to determine flow rates, storage and

delivery systems and line side presentation requirements.
Designing stations from operator out to ensure operator success
Controls Inventory. Inventory costs and abnormal
conditions are made visible and immediately dealt with.
Part Information Supplier/Container Usage Part Delivery Inventory Control - Line Side Inventory control - Supermarket

Max Bulk
Bulk /
Cntnr Avg Avg
Min. Station side Max Station side Inventory Supermarket
Storage for
Container Size Super Inv. inventory Inv. inventory Hours OH Supermarke
Color Std Std. Retrn Wkly Daily Cntnrs Station Storage
Row Part Description PDM # Supplier Market Hours Hours ~ t
Code Pack Cntnr or Usage Usage per day #
(Y/N) on on Include
Expnd (830) (830/5)
hold Min Inv. Min hold Max Max Safety Max Max Cntnr
L W H Contnr Inv. Contr Stock Inv. Cntnr per # of
pallet Spots
1 Latch ASM - Floor, O/B , 2RS, 60% LH, 920 L0033097AF,01 BAE 24 Returnable 12 15 10 2400 480 20 2 60 3 4 120 5 24 720 30 48 1
1 Latch ASM - Floor, I/ B, 2RS, 60% LH, 920 L0033099AF,01 BAE 15 Returnable 12 15 10 0 0 2 0 0 4 0 2 24 0 0 48 0
1 Latch ASM - Floor, O/B , 2RS, 40% RH, 920 L0033100AF,01 BAE 24 Returnable 12 15 10 0 0 2 0 0 4 0 2 24 0 0 48 0
2 Cable AS M - Latch Synch, 2RS, 40% RH L0033114AD,01 Capro 150 Returnable 32 15 8 0 0 2 0 0 4 0 2 24 0 0 18 0
2 Cable AS M - Latch Synch, 2RS, 60% LH L0033115AD,01 Capro 135 Returnable 48 15 8 0 0 2 0 0 4 0 2 24 0 0 18 0
2 Cable AS M - Synch 40% I/B Master L0064674AD,01 Capro 145 Returnable 48 15 8 0 0 2 0 0 4 0 2 24 0 0 18 0
2 60% I/B MASTER S YNCH CABL L0064675AE,01 Capro 135 Returnable 48 15 7.5 0 0
2 Cable AS M - Floor Latch Release O/B 40%/60% L0064677AC01 Capro 290 Returnable 32 15 8 0 0 2 0 0 4 0 2 24 0 0 18 0
2 Cable AS M - Floor Latch Release I/ B 60% L0064682AC,01 Capro 290 Returnable 32 15 8 0 0 2 0 0 4 0 2 24 0 0 18 0

Material Flow – Pull Systems (Kanban) The Carrot Model

We see and want
the leafy green easy
Pull systems are employed to regulate production stuff-
flow. Tuggers are used to deliver sequenced parts. The lean tools and
This levels production, materials flow, operator techniques…
flow and controls inventory
Most But, the part we
organizations really want is
never get deep below the surface
enough into the and it takes hard
lean process to work and effort to
achieve true get to it (and you
success have to get your
hands dirty!)

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LMS Deployment Structure

• Established structure to drive implementation and a common approach.

• Drives accountability by assigning responsibility.

Provide Strategic Direction

Direct

Executive
Provide Resource

Make Decisions
Steering
Meet Regularly
Committee
Guide Deployment

Provide Tactical Direction

Plan

Coordinate Planning
Headquarters
Develop Training Material
Lean Support
Coordinate Training

Develop Operating Standards
Team
Provide Lean Expertise
Implement

Support Implementation

Assess Progress Lean Vision
Plant Lean
Develop & Integrate Plans Dr. Raj Mohan
Facilitators
Execute Plans

Conduct Training Chief Mentor, Man2succeed

Assist Implementation

Lean Resident Resource
(International Management Consultants and Training

Conduct Assessment Process Providers)
drrmm2s@gmail.com

Lean Manufacturing!!!!
Paradigm Shift
Eliminating Manufacturing Waste 2000 to 2010
“Produce what you need, only as much as
you need, when you need”
» Taiichi Ohno – Toyota Production System

“What”, “how much” and “when” are

the essential elements of demand. NOW
If something is not needed in a particular In 2000 Value chain
Focused and
quantity at a particular time, why produce Manufacturing Program
it? Based and Driven
Event Driven
– Usual answer: to meet production targets!

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Three Levels of Culture

What we see:
Supply Andon, Kanban, Charts,
Chain People look engaged,
Direct Artifacts
Labour Low Trans- Clean and orderly,
.
and
Growth action & Behavior Little inventory
Lean Spending volume
Transfor-
mation Lea Norms
What they say: Customer
First,
.

Other n & Values Respect for People &

costs
Mgt Continuous Improvement
What is at their Core:
Underlying All team associates deeply committed to
Assumptions the company mission of contributing to
society through high-value added
Then Now manufacturing.

Customer Service Performance –

New Lean Culture
New Achievements
Right
Storage • Reduced from 15% to 40%
Enterprise
Behaviour
• Order Shipped Complete and On-Time
OSCOT • Improvements over 12%

Appropriate Sustainable Customer

Freight Cost • Reduced by 45% to 70% Measure- Lean Driven
ment Culture Response

Finished goods • Reduced between 18% and 30%

inventory
Materials Talent
Recruiting
processing • Improved over 20%
& Mgt
velocity

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Is it Surprising Lean is Challenging in India with world leaders ahead?

Means and Measures 100

90
Japan
• Business strategy identifies culture design 80 U.S.
World
70
• Employees see how culture drives right
60
behaviors 50

• Future-state cultural design codifies change 40

needs (Building premises and standards) 30

20
• Cash flow builds confidence in the cultural 10

investment (Lean Culture) 0

Power Distance Individuality Uncertainty Long Term
• Bonding Cultural change with winning formula Avoidance Thinking

Source: Hofstede Cultural Scores for Japan, U.S., and World Average
Components + Metrics = Success / Excellence

G.A.S. Index: Global Asset

Green and Lean – Sustainability Index
Energy Area

• 15-30% of a manufacturing company’s monthly energy G.A.S. Index = Availability * Performance *

bill creates greenhouse gases.
• The energy management within a facility - benchmark
competitors.
• Lean methodologies can be used to reduce waste in the
consumption of energy within a manufacturing facility.
• The ultimate goal - eliminate equipment not needed in
the process.
• If elimination is not possible, minimize the use
– plot energy consumption to predict maintenance schedules
and replacement cycles.
Quality * Energy
Efficiency
• Availability = All downtime / Scheduled time
• Performance = Actual output for scheduled
time / Design output for scheduled time
• Quality = Total production minus defects or
rework / Total production
• Energy Efficiency = Design energy
23 consumption/Actual energy consumption 24

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 10/26/2010

Example: Motor Efficiency Motor Efficiency

Savings (US)

90,000 Watts 76,000 Watts

100 HP

• Energy Savings = 90kW x 8,000 hrs./year x

1HP = .746 kWatts (1-(.828/.94)) = 87,336 kWh/yr.
15,400 Watts (17.4%)
• At an average cost of 11 cents per kWh, the
estimated savings would be $9,607 per year.
• Motor operating cost:
– (100 HP x .746 kW/HP x 8,000 hrs. x $.11/KWh
) / .94 efficiency = $69,838 per yr.
25 26

Spend less and

grow

Supply Chain

Low Growth Trans-action

Spending volume

Lean
Mgt Lean Scope

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 10/26/2010

Looking through... Down on

the shop floor ,
...that car up ahead
Manufacturing wants
How we usually do it...  better demand

 input on designs (for

manufacturability)

 betters tools for production

flexibility
How it should be done!
 ease of access to relevant
information

just like any other supplier!

Challenges & Challenges &

Vision
Capacity promising
assumptions across the
supply web
Traditional countermeasure:
under-capacity planning
Future countermeasure:
real options planning
Vision
Instability of ECO process
Traditional countermeasure:
ECO clumping on a fixed schedule (“bus”)
Future countermeasure:
process integration upstream

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Challenges &
Vision
Instability of transition
management
Traditional countermeasure:
buffers
Future countermeasure:
“budget-achieved, life ends”
Challenges &
Vision
Shared record accuracy
Traditional countermeasure:
recent history-->few successes!
Future countermeasure:
data model simplification and
standards
10/26/2010
Challenges &
Vision
Balancing “flexibility” (reach)
with “stability” (differentiable
richness)
Traditional countermeasure:
year-to-year internal policy and metric mgmt
Future countermeasure:
shared policy in the supply web
Lean e-Manufacturing-Choice
 30% throughput increase with no
corresponding asset increase (yields
greater share)
Benefits  turns increase of 50-100% coupled
with service increase
 30-50% reduction in cost of quality
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Lean is…
“A long journey that needs commitment,
patience, long-
long-term thinking, positive
mindset and attitude, and continuous
improvement which are merged together
as operational excellence and as a strategic
weapon.”

Let’s start the journey and Do our Best! Lean Assessment

Dr.Raj Mohan,
Chief Mentor, Man2succeed

Nine Key areas of Inventory – we fail

Assessment in this area

• Inventory • Inventory monitoring by Middle Level

• The Team Approach Managers
• Processes • Inventory turnover
• Maintenance
• Industry index comparison
• Layout & Material Handling
• Suppliers
• Setup
• Quality
• Production Control & Scheduling

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Contributors to Satisfaction
Cross-
Team Approach Meaningful-
ness
Awareness
Respons-
ibility
functional
Teams
Suggestion
System

• Compensation to Operatives ? Standardized

Work System
Learning
• Job Security
• Attrition Mastery
Coaching
• Training Initiative
Control
• Cross-functional Work teams Ideas
• Quality Teams Contributors to Self-Efficacy Intrinsic
Motivation

Trust

Processes Maintenance

• No of large-scale processes • Uptime records

• Flexibility • Unplanned Maintenance
• Operating capacity • Preventive Schedules
• Technology adoption Level • Overall equipment effectiveness

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 10/26/2010

Can we imagine a situation like

this?
Layout and
Material Handling
• Space Utilisation
• Free Flow of
material
• Free flow of people
• Process flow
optimisation
• Housekeeping

Setup
Supplier

•Worker skill improvement

•Manager worker co-operation in
• Average number of suppliers improvement studies
• Inspection requirements (How much/How •Specify what to inspect
many pieces) •No missing screws

• Delivery frequency •All screws seated

• Defect rate

•Clear inspection criteria

•Don’t overload operator with
complex content or criteria

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Quality

• SPC training Production Control • Work in process storage

Scheduling
• Defect rate • Kanban possibilities
• Process defects • On-time delivery
monitoring

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