Issuu on Google+

Remove Waste with LEAN Making CRPs & nonprofits more effective Craig Cochran


Introduction • Polly Wessel

To be discussed during the presentation.

2


What is LEAN? • Producing what is needed, • When it is needed, • With the minimum amount of materials, equipment, labor, and space

3


IT’S ALL ABOUT SPEED!

Mouse busting through maze goes here!!! Too big of file.

4


Common Misconceptions about Lean • It’s a factory thing • It won’t work here • We tried that • It’s all about one-piece flow • 5-S is cleaning up your desk • We’re different • Zero inventory • Lean is only Kaizen or Kanban • Doesn’t work for new products • Customers and Suppliers are

not “LEAN”. Why us? Demand Chain Solutions

5


Lean Enterprise Principles 1. 2. 3. 4. 5.

Specify value in the eyes of the customer. Identify the value stream and eliminate waste. Make value flow at the pull of the customer. Involve and Empower employees. Continuously improve in pursuit of perfection.

A Value added activity is:  Important to the customer.  Transforms information or material.  DONE RIGHT THE FIRST TIME. 6


Company name removed to product the Guilty

WOW! 7


Lean Production‌ is a philosophy which shortens the time line between the customer order and the product delivery (good or service) by identifying and eliminating waste. Business as Usual

Customer Order

Product delivery

Waste Time

Lean Manufacturing

Customer Order

Waste

Time (Shorter)

Product delivery

8


Where is the REAL opportunity?

Typical non-value to value-added ratio: 99% NVA

1% VA

Most companies go after this: and maybe get this.

Best chance for improvement involves dealing with the waste inherent in the very process

Demand Chain Solutions

9


8 Types of Wastes        

Overproduction Defects - Rework or Scrap Inventory Waiting of parts/people/machines/paperwork Transportation of parts, people, paper Extra Processing beyond requirements Motion of people, machines Unused employee ideas

10


A Culture of Teamwork

“The corporation simply cannot afford to deprive itself of the intelligence, imagination, and initiative of 90% of the people who work for it, that is, the workers."

Peter Drucker, Concept of the Corporation, 1946

11


Lean Leadership • A New View of Managing “My job is to help you succeed.”

• Lead From the Front “We’re in this together.”

• Involve the Employees “What would make your job easier and better?”

• Provide Training and Resources “What do you need? How can I help?” 12


A Look Back ‌ The Origins of What We Now Call Lean

13


Where Did Lean Come From? • Frederick Taylor • Henry Ford’s Model T factories • Developed by Toyota from late 1940s • Adopted in North America in 1980s • 1990: Machine That Changed the World coins the term “Lean”

14


Henry Ford and The Model T High Volume with Low Variety • Continuous Flow • Elimination of Waste • Standardized Work

Highland Park, Michigan 1st Moving Assembly Line - 1913

15


1950’s Japan: Toyota Motor Co. • A return to the lessons of Henry Ford • Training Within Industry • The Supermarket applied to the factory • Quality lessons of Deming and Juran • Taiichi Ohno leads the way

16


The Evolution of Lean Machine That Changed the World (Lean!)

World War II and Training Within Industry Henry Ford

1910s

Toyota

1940s

1950s

Japan Study Tours Healthcare, Government, Military

Japanese plants in USA

1980s

100+ years of discovery (and re-discovery)

1990

2000s


The Major Elements of Lean

What Does a Lean Organization Look Like?

18


VA vs. NVA Value Added Activities (VA) • Activities that transform materials into the finished product • Customer willing to pay for

Non-Value Added Activities (NVA) • Customer is NOT willing to pay for • Need to eliminate or minimize

19


Common Lean Tools •

Workplace Organization (5S)

Visual Controls

Mistake-Proofing

Pull Systems – Respond to Demand

Value Stream Mapping

20


5S - Workplace Organization 5 Steps to a Cleaner, Safer, More Organized Workplace

1. Sort 2. Set in Order 3. Shine 4. Standardize 5. Sustain

21


A Place for Everything

What non-standard conditions do you see? 22


Home Address Labels

23


Visual Controls

Any device or symbol that effectively places information at the point of use with few words or none at all.

24


What do these buttons do?

25


Visual Controls In the aerospace industry, it’s critical that mechanics know where all their tools are to avoid foreign object damage.

FOD

26


Make the Standard Condition Obvious

What is the standard?

27


Quality at the Source

Three rules of defective work: – Do not accept it – Do not create it – Do not pass it on

Employees must have the tools and the authority to make this happen. 28


Mistake-Proofing / Poka-yoke

29


Mistake-Proofing Example

30


Advantages of a Pull System • Production controlled by actual demand • Limited inventory of each item • Easy to see and respond to changes in demand • Managed at the point of use

31


Everyday Pull System What triggers replenishment? How do we know what to replace?

32


Copy Paper Replenishment

Triangle shows reorder point and procedure 33


Value Stream Mapping

A visual representation showing all the material and information flows in a process. • Follow the path of the product or service • Gain a common understanding of the process • Where are the opportunities? • What tools and resources are needed? The best map in the world is wasted unless it leads to action. 34


Current State Example - Invoicing

35


How Do We Get There? •

Specify value by specific product

• Identify the value stream for each product • Make value flow without interruptions • Let the customer pull value from the producer • Pursue perfection Source: Lean Thinking, Womack & Jones, 1996

36


It Starts at the Top • Commit to Lean • Lead From the Front • Involve the Employees • Provide Training and Resources • Establish a Culture of Continuous Improvement

37


It’s All About People

“Manpower is something that is beyond measurement. There is no limit to what can be accomplished when everyone begins to think.”

- Taiichi Ohno 38


Don’t miss this Course! “Attaining Customer Loyalty” September 13-14, 2011 Las Vegas, NV • Fun, interactive, and practical • Offered at NO COST to NISH affiliate organizations • Register: https://www.nishacademy.org • Or contact Cora Chaply at: 571-226-4534

39


For more information:

Craig Cochran Business Coach

678-699-1690 craig.cochran@innovate.gatech.edu


Smart and practical books:

www.patonprofessional.com 41


Juan Bezanilla Engineering Manager ReadyOne Industries jbezanilla@readyone.org


KAIZEN EVENT NWDS - Navy Woman Dress Shirt

ReadyOne Industries September 2008 Engineering Department


TEAM MEMBERS

Leader:

Consultant: Juan Reyes (Engineer)

Juan Bezanilla

Flor Loeza (Supervisor)

Facilitator:

Gerardo Ulloa (Operator)

Héctor Hernández

Rosa Armendáriz (Utility)

Visitors:

(Mfg. Mgr.) Members:

(Mfg Engr.)

Marina Hernández (Final Auditor)

Maria

Marcelo Lujan (Maintenance)

Art

Elena Jimenez (QC Mgr) Macias (Project Mgr)


Definition:

Kaizen is a daily activity, the purpose of which goes beyond simple productivity improvement. It is also a process that, when done correctly, humanizes the workplace, eliminates overly hard work (“muri"), and teaches people how to perform experiments on their work using the scientific method and how to learn to spot and eliminate waste in business processes.


Purpose: KAIZEN EVENT is a structured procedure for identifying and eliminating all the waste as possible. Translation: The original kanji characters for this word are: 改 善 In Japanese this is pronounced "kaizen". 改 ("kai") means "change" or "the action to correct“ 善 ("zen") means "good"


Our Product Navy Woman Dress Shirt


Flow Chart

Shirt, Woman’s Dress Blue (Long Sleeve)


Layout Before

Navy Woman Dress Shirt Spaghetti Chart

Capacity = 50 Machines. Area = 4,002 Sq. Ft. (29’x138’) Walking Distance = 1,056 Ft. Lead Time = 19 hours. W.I.P. = 399 parts. People = 13 Op. + 1 Mtrl. Handle


250

200

50

AVERAGE = 62 sec.

150 146 113

100

33 50 45 56 52

8 21 49 57

28 40 27 18 40 33 13 35 36 48 36 23 122

31 119 139

70 92

25 41 46

Operation Number

NORMAL TIME (seconds) 42 14 44 28 21 37 27 23

C

350

Q

72 10 72 0 10 72 2 10 4 72 10 72 6 10 72 8 11 2 72 12 72 0 12 72 2 12 4 72 12 72 6 12 72 8 17 2 72 17 72 4 17 72 6 17 8 72 18 72 0 18 72 2 18 4 72 13 72 4 13 72 6 14 0 72 14 72 4 15 72 2 15 4 72 15 7 72 16 72 0 16 4 72 16 72 6 19 72 0 19 2 72 19 72 4 19 72 6 13 0 72 22 72 4 19 72 8 20 0 72 20 72 2 20 72 4 20 6 72 20 72 8 21 72 0 21 2 72 21 72 4 2 72 2 2 22 0 72 -A 22 72 0-B 22 0C

TIME (seconds)

Time Study Chart * Before * N.W.D.S. Time Study per Operation NORMAL TIME (seconds)

500

450

400

321

300

236

107 134 131

91 74 31

0


Production Scene = Before =

Navy Woman Dress Shirt’s Pictures Before Kaizen Event


Production Scene * Before *

Navy Woman Dress Shirt’s Pictures Before Kaizen Event


Production Scene * Before *

Navy Woman Dress Shirt’s Pictures Before Kaizen Event


Fixing the Scene


Fixing the Scene

KAIZEN EVENT start working


Improves

Performing the New Layout


Layout After Navy Woman Dress Shirt Spaghetti Chart

Capacity = 31 Machines Area = 1,720 Sq. Ft. (50’x38-15’x12’) Walking Distance = 366 Ft. Lead Time = 1 hour W.I.P. = 30 parts People = 9 Op. + 1 Material Handle


Time Study Chart * After * N.W.D.S. Time Study per Operator NWDS Loading, After KAIZEN 500

AVERAGE

450

= 325 sec.

365

350

328

350

342

321

300

285

300

324

309

250 200 150 100 50

WORKING TIME (By Operator)

dรก Ar m en

lfo

os a

od o R

R ReadyOne Associate

riz

Lo ya

rra Pa th a M ar

Ar za M ar

ia

el Is ab

on G Irm a

te

Vi lla

z zรก le

cio Lu ar do G er

Ta o Ar tu r

ge l

Va

la m an

rg a

s

te s

0

An

TIME (seconds)

400


Production Scene * After *

Navy Woman Dress Shirt’s Pictures After Kaizen Event


Production Scene * After *

Navy Woman Dress Shirt’s Pictures After Kaizen Event


Summary Navy Woman Dress Shirt Objectives

Save

Before

After

Quantity of Machines

38 %

50

31

Area (Sq. Ft.)

57 %

4,002

1,720

Walking Distance (Ft.)

65.3 %

1,056

366

Lead Time (Hrs.)

94.7 %

19

1

91 %

399

36

ReadyOne Associates

35.7 %

14

9

Labor ( $$/ Day )

29.28 %

733.60

514.80

Production Rate

- 40 %

60

36

W.I.P. (units)


Requirements TAKT TIME CALCULATION Units Required by December 19th. Production Required: Production Done:

Available Time per Day: ( 8 Hrs X 3600 seconds)

3,744 -1,774

8 28,800 -1,200 -2,400

1,970

25,200 Available seconds per Shift

Available days from October 1st to December 19th October: 25 November: 15 December: 15

55

Daily Production Calculation: ( 1,970 / 55 )

Takt Time:

seconds per Unit.

(25,200 / 36) The Loading according to Takt Time: needs:

36

704

Hours per Shift seconds per Shift ( - Break of 20 minutes) ( 5 minutes / hour / restrictions)

4.2

Operators.

Due to Ratio 75 / 25 we have to increase the Operators Numbers to:

9

( 2 Non-Disabled & 7 Disabled)

* Due to individual restrictions of the personnel


Save & Cost SAVING CALCULATION BEFORE KAIZEN EVENT Operators: Hrs / day: Worked Hrs: Labor Rate: Labor Cost: Labor Save:

14 8 112 6.55 $733.60

AFTER KAIZEN EVENT

IDEAL (LEAN)

9 8 72 7.15 $514.80 $218.80 daily A: $12,034.00 project

B:

Cost of Working with Ratio 75 - 25

5 8 40 7.15 $286.00 $447.60 daily $24,618.00 project

B - A:

EFFICIENCY CALCULATION BEFORE KAIZEN EVENT SAH's: 0.7116 Units / Day: 60 Worked Hrs: 112 Efficiency: 38.12%

AFTER KAIZEN EVENT

A:

WHAT TO DO: A - B - C

IDEAL (LEAN)

0.7116 36 72

0.7116 36 33.6

35.58%

76.24%

B: Increase the Qty of the parts. 0.7116 60 72

@ 4.2 op B:

with 9 op

59.30%

NOTE: Finished project during 33 days (November 12, 2008)

COST FOR 1% OF EFFICIENCY Cost of Working with ratio 75 - 25: $12,584.00 Cost of the Efficiency with Ratio 75 - 25: 64.42% (100% - Actual%) $195.34

$228.80 daily $12,584.00 project

C: Decrease Operators

@ 5 op C:

0.7116 36 40

64.04%

NOTE: With 100% Disabled


Kent A. Walters Goodwill Industries of Southeastern WI, Inc. Executive Director, Goodwill Great Lakes Kent.walters@goodwillsew.com Joseph J. Nikolaus Director, Black Belt Goodwill Industries of Southeastern WI, Inc. joseph.nikolaus@goodwillsew.com


Discussion & Questions Remove Waste with Lean

Juan Bezanilla Engineering Manager ReadyOne Industries El Paso, TX jbezanilla@readyone.org


Session Evaluation Information

SESSION TITLE: Tools2 SESSION CODE: Q-T1045


Quality Tools Showcase- Remove Waste with LEAN_Part 2-Presentation