Lean assignment -1

Summary:

This document will give a good view of manufacturing via lean. Most manufacturing
companies have already started approaching lean manufacturing system. The main
objective of lean methodology is to reduce waste and aims at supplier integration for
the common achievable goal in manufacturing by reducing the non value added time. i.e,
raising ratio of value added time to non value added time and waste. Here the case of a
automotive manufactures is considered after some serious trouble in business. The
manufacturer after losing few successive business and with some serious issues, look
forward for lean implementation.

The current state mapping analysis gives the current process flow and the level of
inventory at various product families. And with this the future mapping is to be drawn
for some serious implementation which will focus and resolve all the current state map.

Introduction of the Organisation:

M Automotive parts (MAP) is one leading manufacturing company, located at Midlands.

They are first tier supplier to automotive industries. With the current trend of mass
production, they lost two major orders to overseas competitors, along with employee
redundant of 20%.

Lean Introduction:

Lean manufacturing is a variation on the theme of efficiency; it is a present-day instance

of the larger recurring theme in human life of increasing efficiency, decreasing waste,
and using empirical methods

Lean principles come from the Japanese manufacturing industry.

Lean is nothing but is set of tools that elimination of waste. As waste is eliminated
quality improves while production time and cost are reduced.

Examples:

Value Stream Mapping

Pull systems

Poka-yoke

Toyota production system follows the lean operation principles. Whose goal is cost
reduction by the elimination of waste these principle is nothing but pull processing,

Pull processing:

a) Perfect first-time quality,

b) Waste minimization

c) Continues improvement

d) Flexibility

e) Building and maintaining a long term relationship with suppliers

f) Automation load levelling and production flow and visual control

Lean implementation is mainly focused on getting the right things, to the right place, at
the right time, in the right quantity and minimizing waste.

Seven Wastes of Lean:

As learned, lean is a tool eliminate waste in any form in chosen sector. Waste mean
performances that consume time, capital and space, but do not contribute to fulfilling
customer needs. They are classified under the following categories.

1. Over production : Considered as greater source of waste

2. Waiting time: This is time spend waiting by labour or equipment waiting to add value to the
product.
3. Transportation: Unnecessary transportation of WIP is another waste.
4. Process: Operations that do not add value, but are done just due to some poor work (i.e. re-
work)
5. Inventory: Inventory of all types.
6. Motion: Unnecessary movement of man and material.
7. Defective goods: Total cost of poor quality could be high, includes poor quality and scrap
material, waste of labour time, and time expecting orders
Tools and Techniques of Lean:

Lean aim is to reduce the waste, mean if we do any work it is simple sufficient to
recognize, to do and to manage. Lean is help to short methods to produce the product in
right way and reduce waste and cost reduce more with less time, inventory, space,
people, and money.

The manufacturing process is depended on the lean techniques that are being used to
improve the production process. Those techniques are based on the following
applications:

Value: the main information is taken from what and up to what amount the
customer is willing to afford to buy that object.

The value stream: this gives us the information about the processing steps that
are used to remove the non-value work processes from the designing process to
the usage of the customer.

Flow: this removes the wastage from the process without any obstacles. The flow
can be reduced for inventory and expertise.

Pull: it is the way in which we can make the lining of the products as well as the
processes from the production process based on the usage of the customer.

Perfection: it is the way of motivating to get the things done right the in the first
time by using the application of continuous improvement.

By following lean techniques we can easily identify the places of Non-value added time
and then accordingly the yamazumi board is drawn and from which, we can calculate
the takt time.

The most commonly accepted and used few tools are,

Value Mapping: Value stream mapping is tool typically used during lean initiatives to
present pictorially the flow of material and information as a product or service makes
its way through the value stream. A value stream map is often used to identify where to
focus future improvement efforts to reduce or eliminate non value added activities,
cycle time and costs.
5 S Housekeeping: Work place are well organised by using Japanese plan, which
directly reduces the waste of looking and searching for equipment. It consists of 5 steps,
each starting with the letter S, hence the name 5 S housekeeping are Sort, Straighten,
Sweep, Standardise, Self Discipline

Poka-yoke is otherwise known as mistake proofing concept. The important view of this
concept is to stop the process whenever a defect occurs, and explain the cause as well as
prevent it from reoccurring and also provides source of the defect. Alternatively on-
line adjustment can be made to the product or process, which enables the continuous
process improvement. As production lot sizes are constantly reduced which results in
defect free parts. This system avoids the defects to happen in manufacturing work flow.
Although this concept developed for manufacturing systems (Shingo, .S. 1986, Zero
Quality Control)

SMED Single Minute Exchange of Dies, a concept by Shigeo Shingo at Toyota, objective is
to reduce all factory setups by 59/60ths. In other words, a setup of one hour should take
one minute. The adoption of SMED to the traditional mass production system is a tough
job. This method also used to reduce waste the main objective is to reduce the
changeover time. Two elements for set up time is Internal (machine need to stop) and
external (machine need not to stop). Improvement can be made in simplified methods:
jigs, clamps, and quick-release. (Shingo, .S. 1986, Zero Quality Control)

Kan Ban: Kan Ban is otherwise defined as the two bin system. It is material control
system which only calls for materials when required. Inventories are not maintained up
at line side or in part of finished goods.

Performance Measures: Measures will influence the objective of the company, as what
we measure is what we achieve. Performance measures are such as:

Dock to Dock (DTD)

First Time Through (FTT)

Build to Schedule (BTS)

Overall Equipment Efficiency (OEE)

Visual Management: Visual Management should enable the manufacturing time at the
production facilities within 3 minutes. With reference to the Machine availability,
Production targets, Buffers etc.

Yamazumi: A Yamazumi chart is a stacked bar chart that shows the balance of cycle
time workloads between a number of operators typically in an assembly line or work
cell. The Yamazumi chart can be either for a single product or multi product assembly
line. Yamazumi is a Japanese word that literally means to stack up. Toyota uses
Yamazumi work balance charts to visually present the work content of a series of tasks
and facilitate work balancing and the isolation and elimination of non value added work
content.

Takt time: It is the ratio between the time available and the customer demand.

Takt time = time available / customer demand

Value Stream Mapping:

Its the most commonly used lean techniques to analyse the flow of material to the
customer. This is highly advantages in visually showing the current flow and delay and
identifies the part family. Also helps in drawing future state mapping by analysing the
current state.

Current State of MAP:

MAP availability:

20 days a month.
2 Shifts a day (6AM-2PM and 2PM-10PM) = 16 Hours.
30 mints lunch and two 15 mints break = 30+ (2*15) = 60Mints = 1Hour break
per shift.
Available time per day = 2 shifts * (8-1) hour = 14 Hours.

Customer Requirement:

1400 car parts per month = (1400/20days) = 70 sets per day

Single set comprises of 4 parts (AZ123, AZ124, AZ223 and AZ224) = Hence
(70*4) 280 parts are to flow in line to meet requirement.
 And BZ111 is assembled to AZ123A and AZ124A; hence its flow is to be twice the
required sets. (2*70) = 140 components.

Takt Time Calculation:

Takt time = time available/customer demand

= (2shifts * 7 hours * 60 mints * 60 secs)/(70 sets * 4 parts)

= 180 Secs

Inventory days calculation:

Invent days = Summation of inventory/ Demand for next operation

(i.e, AZ operation one)= (1800 AZ123A + 2600 AZ124A + 2400 AZ223 + 1700 AZ224)/
280

= 30.357 Days

Value Added Time calculation (VAT):

All operations, that change the physical shape of the product and helps in getting
the final requirement of customer.

Non Value Added Time calculation (NVAT):

Any operations, that support the value added process, and supports it without
taking part in direct operation. Ie setting up machine, tools.

Lead time calculation:

Its the time taken by the product to reach customer, right from the reach of raw
materials.

Critical Path:

It is the path of higher time in a parallel flow process. In here, the BZ process
holds the high value added time and this path of process is critical path of the product
family.
Critical Analysis:

Analysing under 7 wastes of Lean:

1, Over production:

Its very clear from the current state mapping that the operation 1 of AZ family does over
production and there is very high inventory, if this could be controlled then major part
of the non-value added time would be saved for the process. This area has lots of room
for improvement.

2, Waiting time:

Due to the heavy production at operation 1 of AZ family, the waiting time of product is
more than 30days for operation 2. This waiting time in sense increases the high
investment of inventory. And until assembly 1 there is huge amount of inventory taking
place, which consumes more time than that of the critical path.
3, Transport:

There isnt much transport other than moving from department to department, though
this isnt quite high can be looked as a option for improvement.

4, Process:

There is no much of process delay, still SMED tools could probably drop the setup times
and other process delays.

5, Inventory:

Investments over inventory is significantly quite higher in all levels of process, the
change over the push to pull and JIT could help in dropping inventory totally and Kan
Ban also could be used as a tool in dropping inventory.

6, Motion:

This doesnt show the motion between cells, but the other tools of lean could be
employed to find the motion and controlled.

7, Defective Goods:

Defective goods are common everywhere, but the way of control defers. The easy and
better way of controlling is to stop the poor quality material there itself and stop
passing it to next departments. Once this is followed there isnt need for a thorough
check at final assembly, where some critical parts could hide from text just because of
pre assembly.

Conclusion:

This current state gives a clear view for future and good improvements for future. The
current system has lots of inventory and high lead time, which takes most part of the
assets, reducing inventory turnover. There is also a unnoticed problem of sharing
information, while the customer produces orders on daily basis, it easy to adopt to a JIT
manufacturing system, for which they need to get their suppliers ready for JIT. And also
redesigning cells will give good utilisation of machines.
References:

Jeffrey P. Wincel (2003) Lean Suppy Chain Management. New York: Productivity
Michael A. Lewis (2000) 'Lean production and sustainable competitive advantage'. Univ
of Warwick 20 (8), 1-20
Peter Hines, Matthias Holweg and Nick Rich (2004) 'Learning to evolve'. Emeraldinsight
24 (10), 1-8
Paul D. Ericksen, Nathan J. Stoflet, and Rajan Suri (2007) 'Manufacturing Critical Oath
Time (MCT)'. Technical report 1 1-4
Andrew Greasley (1992) Operation Management
Windey Garner (2010) Lean Operations, Lecture notes. Coventry: Coventry University
Liker, Jeffrey (1998) Becoming Lean. Productivity.
Reference / Why implement Benefits of lean Tools used People issues
Source encountered
Operation Elimination of Eliminating 5S
Management by waste wastes Kaizen
Andrew Greasley Continuous Drop in kanban
improvement movements of
Cellular men, material and
manufacturing tools.
Continuous
progress and
achievable target
Mass Customise mass Varity of products Product process MC systems
customisation / production and high flexibly. matrix used.
Production
Value streem Get continuous High customer Critical analysis
mapping in make flow in high satisfaction of bottle neck
to order variety process Variety operation
environment continuous flow
Manufacturing Quick response Reduce lead time QRM Quick
Critical path time to market Reduced setup Response
Advanced time Manufacturing
manufacturing
A New view to Compounding Capability to Four phase
Lean by Johnston factors such as compete in the methodology
David logistics costs next generation
dropped
Lean supply chain Taking lean to Effective supplier Two wave Case studies
by Jeffrey P. supplier base base, and good methodology
Wincel Continuous understanding Kaizen
improvement Improves process
by eliminating
waste.
Literature Review:

Lean is the best tool for the advancing manufacturing system, it aims for eliminating waste in all
forms. This also gives continuous improvement and be a effective tool for flexi production
system. This tool eliminates the most part of material in stock by dropping inventory, thus it
requires only very adequate space for the plant. And this was the key reason for the birth of
lean. This particular tool is good enough in dropping lead time, and increased delivery
performance. And also runs with low operational cost.

Lean is more than about just cutting cost, companies must often look forward beyond shop floor
to cut cost. Its a tool looking forward for continuous improvement. This reduces the project risk
and risk of financial risks. Lean is set up with its own goals and strategy, it targets for quality
improvement and stays competitive in market, and reduces time.

The lean isnt a hard thing to achieve, just by following these.

1. Design simple manufacturing system

2. Recognise that there is always room for improvement
3. Continuously improve lean manufacturing system.

This has the following benefits for implementation, it first of all improves quality, reduces
inventory, requires less space for the plant, enhance the overall flexibility in manufacturing,
makes identifying future kaizen simpler, and ensures safer work environment with improving
workers moral value.