The Thinking Approach LEAN CONCEPTS , IL Holdings, LLC All rights reserved 1

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1 The Thinking Approach LEAN CONCEPTS All rights reserved 1

2 Tools to Drive Kaizen Activity TECHNICAL THINKING TO DEVELOP A LEAN SYSTEM All rights reserved 2

3 TECHNICAL TOOLS Two key questions When do I need them? What are they? Tools to Measure Tools to Improve UNDERSTANDING SKILLS LEAN TRANSFORMATION All rights reserved 3

4 TOOLS TO IMPROVE Stability Problem Solving Standardized Work Jidoka Heijunka All rights reserved 4

5 TOOLS TO IMPROVE All rights reserved 5

6 Customer Order PRODUCTION LEVELING Resource Requirement MAX Overtime Production THINKING MAX MIN MIN Sequence Balance Volume Style Regular Hour Production Resource Requirement All rights reserved 6

7 LEVEL PRODUCTION BY VOLUME How do we accomplish this? TAKT TIME Daily Production Requirment: 1824 units/month 16 work days/month = 114 units/work day Daily Production Time: 1 shift per day: 6:00 4:30 30 min lunch (2x) 15 min break 570 min/work day Takt Time: 570 min/day 114 units/day = 5 min/unit All rights reserved 7

8 LEVEL VOLUME LOT PRODUCTION What happens if our customer needs more than one style? What happens if we build in complete batches? Example: 114 UNITS / 570 MINUTES 56 UNITS 29 UNITS 29 UNITS 280 MINUTES 14UTES 14UTES Production Sequence: AAAAAAAA..BBBBB CCCCC All rights reserved 8

9 EFFECTS OF BATCH BUILDING 1 FINAL ASSEMBLY LINE Steady withdrawal at regular intervals SHIPPING 2 3 SUPPLIER PROCESSES What does Takt Time mean? What does this mean for supplier processes [1,2,3]? How can we achieve this with batch production? All rights reserved 9

10 WAYS TO MANAGE BATCH PRODUCTION Example 1: Where is the waste? A [56] FINAL LINE Machine Operator CT = 10 min Material Withdrawal B [29] SHIPPING SCHEDULE CT = 20 min TT = 5 min C [29] SHIPPING CT = 40 min All rights reserved 10

11 WAYS TO MANAGE BATCH PRODUCTION Example 2: Where is the waste? A [56] FINAL LINE Machine Operator CT = 10 min Material Withdrawal B [29] SHIPPING SCHEDULE CT = 20 min TT = 5 min C [29] SHIPPING CT = 40 min All rights reserved 11

12 LEVEL BY VOLUME AND STYLE Alternative to traditional batch building New Production Requirements: A every 10 min B every 20 min C every 20 min New Production Sequence: ABACABACABACABAC All rights reserved 12

13 Example 3: SEQUENCED Did we make an PRODUCTION improvement? A [56] FINAL LINE Machine Operator CT = 10 min 10 MIN Material Withdrawal B [29] SHIPPING SCHEDULE 20 MIN CT = 20 min TT = 5 min C [29] SHIPPING 20 MIN CT = 40 min Minimum manpower, minimum inventory All rights reserved 13

14 CYCLE TIME CYCLE TIME MANPOWER EFFICIENCY BEFORE TAKT TIME Unbalance causes waiting C C C C B B B B A A A A Must staff for max production AFTER TIME TAKT TIME C C C C B B B B A A A A Staffing to a weighted average requires fewer people! TIME All rights reserved 14

15 CONVEYOR EXAMPLE B STOP POINT C STOP POINT A STOP POINT PITCH PITCH A A A C TAKT TIME B WORK PROCESS A C B All rights reserved 15

16 SUMMARY Sequenced, level production by volume and style Makes production waste(s) visible! Manpower Inventory BENEFITS 1. More efficient distribution of labor 2. Reduced machine requirements 3. Reduced inventory requirements All rights reserved 16

17 CLOSING DISCUSSION QUESTIONS All rights reserved 17