Productivity Improvement Program Through Lean Manufacturing

Presented By: Boston Industrial Consulting, Inc.

Agenda For Lean Manufacturing Program
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Program Objective What is Lean Manufacturing? Pressures Requiring Companies to Become Lean. Typical Approach to Cost Reduction Batch Manufacturing vs. Lean Manufacturing Formula for Successful Lean Manufacturing Implementation Obstacles to Avoid Expected Results of Lean Manufacturing Actual Lean Manufacturing Case Study Roadmap to Success

1. Program Objectives
• To understand the differences between Lean Manufacturing Systems and the traditional Batch Manufacturing approach. • To understand the key requirements of a successful Lean Implementation Program. • To present an actual case study that has been successfully executed by Boston Industrial Consulting; reviewing the goals, approach, problems and the results achieved.

Waste is defined as activities that do not add value to the product. What is Lean Manufacturing? • Lean is a Team Based continuous improvement process designed for long term maximization of company resources. • Lean Manufacturing utilizes techniques and principles that improve efficiencies of value added activities. .2. • Lean is an approach to achieving manufacturing excellence based upon the continued elimination of waste.

2. What is Lean Manufacturing? Value Added Activities: • Transform raw materials and information into parts or products. . Non –Value Added Activities: • Consume resources that do not contribute to the physical change of the product.

W.I.P.What is Lean Manufacturing? Eliminating Waste • Waste in Operations: walking.standby. Failure to meet std output per hour person ..backtracking.searching.crowded conditions. redundant handling • Waste in Flow of Goods overproduction.rework.changeover • Waste in Layout: distances traveled.

What is Lean Manufacturing? Eliminating Waste • Waste in Equipment Line stops. broken down / antiquated. poor production yields • Other Waste poor housekeeping practices. not having the right information Lead time reduction is achieved by identifying and eliminating waste.improper tools. damaged materials.2. .

Pressures Requiring Companies To Become Lean Past Conditions Sellers Market Rapid Expansion High Unit Volume High Quality Delivery & Service Financial Muscle Current Reality Buyers Market Slower Growth & Shrinking Markets Flexibility Higher Quality Quicker Delivery and Better Service Asset Utilization .3.

O.’s 3.on time to satisfy requirements .V. & processes • External – rework due to vendors.3. High Costs • Labor • Material • Burden . Late Delivery • Internal Customers – on time to satisfy requirements • External Customers. Pressures Requiring Companies To Become Lean 1. Poor Quality • Internal – between depts.Overhead 2.S.

Typical Approach to Cost Reduction 5% 25% Material Burden Direct Labor 70% The primary focus is typically on direct labor to achieve Cost Reduction Benefits.4. .

G. Purchased Parts.Typical ApproachTo Cost Reduction 10% 35% Material Burden Direct Labor 55% Most manufacturing costs are found in Materials: Raw Materials. & F. WIP. Inventory .

Total Cost Time .5. Lean Mfg 1.0 COST & TIME •Traditional Manufacturing (Batch and Queue) OP 3 OP 2 RM OP 1 WIP WIP FG Total Cost •Lean Manufacturing (One Piece Flow) (Cellular Manufacturing) RM Time OP 3 OP 2 OP 1 FG Costs increase the longer product is moved.staged and stored. Batch Mfg Vs.

Batch Characteristics: • Expensive Machinery with high throughput capability. • Machine Utilization is usually high. Results: • High Capital investment • Overproduction • Lack of Flexibility to meet customer demands • Long Lead –Times • Excessive W.P. Vs.I. Lean Mfg. the machine runs whether there is a demand for the part or not • Long Setup Times which lead to Large Lot Sizes • Push System are prevalent creating excessive W.P.Batch Mfg.I. • Poor utilization of Floor Space • Excessive Rework .

P.Batch Mfg. Error Proofing – Source Inspection Visual Factory Flexible Low Cost Automation • • • • • • • • • • • Resulting In: Reduced Costs Reduced inventory Reduced Obsolescence Reduced WIP Reduced Cycle Times Reduced Scrap Improved Quality Increased Productivity Improved Utilization of Space Reduced Lead – Times Reduced Material Handling . Lean Characteristics • • • • • • • • • Kaizen – Quick Step Pull Systems Waste Elimination Tact Time/Line Balancing Point of Use / Kanban Work Cells – O.F. Lean Mfg. Vs.

Why Lean Manufacturing? In Today’s Environment the Market Demands: • Low Costs / Price • High Quality • Greater Variety of Products • Faster Response Times .

But how? . • Today the price is fixed by the consumer.Why Lean Manufacturing? Pricing: The New Reality The Old Model: Cost + Profit = Price (Fixed) (Fixed) (Derived) The New Model: Price – Profit = Cost (Fixed) (Fixed) (Derived) • In the past the price was derived by the company. • The only solution is to reduce total costs. • The challenge is for the manufacturer to meet that price while maintaining a profit.

2.Formula For Success The BIC approach to implementing a Lean program is executed in (5) Steps: 1. Define the Goals & Establish a Baseline Choose The Pilot Study and Evaluate Operator Training Full Implementation . 4. 3. 5.

• • • • • • • • • • Improve profit margin by 20% Improve lead time to the customer by 50% Improve quality by 30% Reduce inventory by 40% Increase productivity 30% Long Lead times Bottlenecks Excessive inventory Quality issues (internal & external) High Costs (labor materials & overhead) Identify obvious problems: .Formula For Success Step1: Define Goals & Establish Baseline With management define the goals and objectives of the program.

# of turns $$ & Number of Returns for defective product Profit Margin Benchmark • Compared to other departments in the same facility • Compared to other facilities in the same company • Compared to other companies in the same industry .Formula For Success Establish a baseline for future comparison • • • • On time delivery to customer % $$ of inventory on hand.

or customer. product family. Perform a Pareto Analysis: • • • • • By Volume (QTY) By Sales Dollars By Scrap By Costs By Customer Divide and Conquer: • Based on Pareto Analysis choose 1 item for study • Pick an Item with high probability of success .Formula For Success Step 2: Choosing The Pilot Pick an important product.

methods analysis. Present to management for approval • • • • • • • • • • .I. Tact time analysis. handling analysis. labor analysis.O. space analysis and value engineering analysis Interview Key People and identify Key assumptions Identify Bottleneck in process Identify Waste in process Brainstorm with key personnel Document short and long term improvements Make recommendations Quantify savings and benefits Summarize Capital Costs Perform an R.Formula For Success Step 3: Study and Evaluate Pilot • • • • Gather data Observe processes Flow Chart Process Perform engineering studies: capacity analysis.

SME. • Review proposed operating procedures. and IIE. . layouts and equipment with personnel. • Emphasize the expected savings and benefits.Formula For Success Step 4: Training • Expose required personnel to techniques of Lean Manufacturing as contained in this document as view training films developed by professional associations such as AME.

Formula For Success Step 5: Implementation Establish Core Project Team • Review scope and objectives for validation • Select team leader • Select team facilitator Specify. Bid and Select Equipment • • • • Develop detailed specs for equipment Source vendors for competitive bid Coordinate site visits with venders Make recommendations .

Formula For Success Step 5: IMPLEMENTATION Develop Detailed Project Schedule • • • • Establish detailed move sequence Coordinate in-house activities to plan Coordinate vender activities to plan Conduct weekly –bi weekly meetings as required Install Equipment • Interface with venders for proper installation • Assure equipment conforms to customer specs • Develop punch list for debug .

Formula For Success • Run pilot for process debug training of personnel • Run production • Measure results • Sign – off and approval .

Lean Manufacturing Checklist
Data Integrity:
• Inventory accuracy 95% • B.O.M. accuracy 99% • Routing accuracy – standards & process

Education:
• All operators trained in Lean • Individual operators • All functional organizations are represented on “Teams”

Lean Manufacturing Checklist
Material Flow:
• Weekly delivery of 80% of materials delivered to Point of Use • Parts are produced only at the quantity required • Continuous Flow Manufacturing is prevalent throughout

Quality:
• All inspection sequences have been eliminated – source inspection practiced whenever possible • Q.C. departments are replaced with process audit functions

Lean Manufacturing Checklist
Planning:
• Daily Rates and level scheduling established and met on due date • MRP system is used for internal planning, customer committing, and vendor schedules and capacity planning • Management participates in the planning and replanning process and commits to a realistic capacity level • Customer service 100% as committed and production equals demand

Process Changes:
• Single digit setups established • Where feasible work –orders are eliminated or simplified and priorities controlled by “Demand Pull” • All functional organizations are represented on “Teams”

Lean Manufacturing Checklist Process Changes • Reduction in the number of active vendors and they are part of the production planning process • Simplify Manufacturing Process to. – Provide management by sight – Identify and surface problems with immediate resolution • Manufacturing is actively involved in the design of the product for manufacturability .

Lean Manufacturing Checklist Process Changes: • Manufacturing Engineering is located on the production floor and immediately available • Manufacturing processes are adhered to and formal change processes are established • Manufacturing production lines have been relayed out to provide mixed model runs and minimum material handling • Compensation for employees is measured on a team contribution basis .

Inventory Material Flow Distances & Space Reduction Reduction in Vendor Base Increased Productivity Units/Employee Improved Quality (Scrap & Rework) Reduced Cumulative Lead Times Goal 30% 80% 40% 50% 50% 20% 50% decrease10x the value added time Actual Results .I. Reduced F.G.Lean Manufacturing Benchmarks Areas For Improvement Reduced Raw Material On Hand Reduced W.P.

Obstacles to Avoid Trying to do Too Much at One Time: • Walk before you run • Divide and conquer • Minimize the scope of the program Starting with a Tough Project: • Choose a project with a high probability for success • A tough project can stop momentum in its tracks Setting Unrealistic Goals: • • • • Benchmark compare to other departments in the same facility Compare to other facilities in the same company Compare to other companies within the same industry .

Obstacles to Avoid Lack of a Detailed Execution Plan: • Provides instruction and direction • Helps maintain focus • A road map to success Lack of Leadership or a Champion • • • • • A person that is committed to success A person that can motivate A person that can lead A person that can empower others A person that can sustain momentum .

Obstacles to Avoid Employees That Are Not Exposed to Lean: • An informed employee usually contributes • An educated employee understands why it’s happening • Cross training is essential People and Resistance to Change: • • • • Unfreeze – explain why change is necessary Educate – expose to fundamentals of Lean Empower – make part of the decision making process Refreeze – strong belief in that Lean is the answer .

Is Focused on Continuous Improvement Is Biased For Action Puts Creativity Before Capital Is Totally Involved .The End Result A Dynamic workforce that .

Inc.Case Study #1 Moore North America. .

Forms Handling Equipment. Inc. New Hampshire $60M 140. Company Profile: Location: Sales: Space: Products: Dover.000sf Platens.Painting and Electrical / Mechanical Assembly Processes: . Roll Feed Equipment & Contract Manufacturing Fabrication.Moore North America. Machining.

document current conditions Choose The Pilot Study and Evaluation Operator Training Full Implementation . Approach: • • • • • • Define the Goals Establish the Baseline. Inc.Moore North America.

.Moore North America. Goals and Objectives of Program: • To develop a Master Plan utilizing Lean Manufacturing techniques and principles which will allow for the consolidation and integration of off–site warehouse activities into the main manufacturing site. Inc.

Inc.selective rack throughout • Congestion at the docks . 100% Inspection of purchased equipment • Antiquated material handling equipment • Excessive amount of obsolete F.excessive movement of materials to and from 28. Current Conditions .Warehousing: • Process Flows .G. inventory ($2M) • Excessive amount of inactive spare parts inventory (50%) • Poor utilization of cube .Moore North America.66% of supplier items requires incoming inspection.lack of lay down areas .000sf off-site warehouse • Poor Vendor quality .

Manufacturing: • Batch Manufacturing – all subs go to warehouse before proceeding to next operation in the process • Large queue areas to stage W.Moore North America.I. Current Conditions . Inc. • Poor Planning – assuming in finite capacity • Too many priorities – everything is “hot” • Lack of capacity at critical work centers creating bottlenecks • Antiquated and idle equipment prevalent throughout • Direct Labor Personnel performing excessive non-value added activities • Long Set up times for critical pieces of equipment .P.

Moore North America. located on assembly floor • Sub assembly operations located great distance from where used. • B.’s not accurate • Poor Planning .Too much material / too little material on hand .P. • Lack of Material availability and frequent parts shortages.M.Assembly: • Batch assembly throughout • Excessive W.I.O. Current Conditions . Inc.

.subs assemblies not inspected until Final Assembly • Lack of formal assembly documentation – assemblers are trained on the fly by other employees • Lack of formal training – Workforce is getting old at the same time. their expertise will be lost when they retire.Assembly: • Planning assumes infinite capacity at work centers • Lack of in-process Quality Systems . Current Conditions . Inc.Moore North America.

$15M . Inc.G.000 • F. inventory .$4M • Inventory Turns – 4 per year • Cumulative lead times – 30 days • Warehouse Floor Space – 28. Baseline: • On time delivery – 88% • Raw material inventory on hand .Moore North America.

Inc.Moore North America. Choosing The Pilot: Perform Pareto Analysis (Areas to Study): • • • • • Platens Machine Shop Fabrication Assembly Warehouse Divide and Conquer: • • • Prioritize areas for study Develop team profile Establish multi functional project team .

Program Overview . • Establish Tact Times •Line Balancing Results •Floor Space –33% •WIP – 91% •Costs -30% •Lead time.Results Program Overview Goal Platens Machining & Fabrication •Reduce set up times by 50%.75% •Lot size 30% •Set up 30% •Floor space 28% •Labor 15% •Floor space 35% •Lead times – 50% • Vendor base 30% •Inc. •Reduce lot sizes by 50% Assembly Warehouse •Reduce costs by 22% •Improve workflow •Reduce lead times by 50% Reduce Space by 65% Reduce inc. insp By 50% •Reduce vendor base •Establish vendor qualification specs •Move materials to point of use Studies & Techniques •One piece flow •Line balancing •Automation • Materials cost reduction analysis •Setup reduction •Cellular mfg. •Kaizen Blitz •Point of use staging. •One piece flow mfg. inspection 30% •Space – 80% .

Program .Moore North America. Inc. .5M in sales).Platens: Goals & Objectives • Moore to reduce Platen costs by 12% the first year and 22% over a two year period or Moore would lose the Platen business to a competitor ($2.

Moore North America. Inc. BIC Approach – Platens: • Observe current process • Perform engineering studies and evaluation – – – – – Detailed time studies – operations – identify bottleneck Detailed time studies – set ups Man machine charts Process flow charts Waste elimination analysis – non-value added elements • • • • • Gather and analyze data Develop proposed manufacturing process Develop Layout Quantify savings Present finding to management .

698 33% .08 12% 8.84 $18. Cellular Manufacturing Cost Comparison Savings Summary (PN 15300580) Current Platen Manufacturing $5.17 30% $3.52 $0.Current vs.55 $25.57 29% $1.40 Delta % $1. ft.48 Proposed $3.34 7% $0.38 $22. 2.4’ Platen .803 sq.41 Materials Floor Space/OH Rework Totals $19. ft.18 $0.501 sq. 5.

12.41 Proposed 5. $3.84 % 33% 98% 29% 29% 60% 29% 30% 75% 88% 34% 0. 5 pieces. 350 units 4 Increased flexibility/set-up/lot size reduction 2. $5.08 pcs. 1 hr. Cost Improved manufacturing process time Current 8.L.501 sq. 200 pieces.1128 pcs./hr.9 14% 22 hrs.ft. 0.ft. Proposed Benefits Summary 4 ft Platen (PN 15300580) Tangible Benefits Reduced floor space Reduced WIP / Batch Size Reduced D.803 sq. Increased productivity Improved quality Reduced cumulative lead-time Reduced inventory Reduced head count 8./hr.4’ Platen Current vs.5 8% 7. 3000 units 6 .5 hrs.5 hrs.

Intangible Benefits •Improved utilization of resources •Easier to manage-visual control WIP •Easier to identify bottlenecks and make adjustments •Promotes team work-empowers employees •Promotes continuous flow manufacturing-keep product moving •Minimize non-value added elements in the process •Easier to schedule-level load •Improved customer service •Easier to quantify desired results-measure for success .

38 $25.50 30% $1. ft. 5.80 $18.46 7% $0.30 Materials Floor Space/OH Rework Totals $20.803 sq.55 $29.18 $0. 2.17 30% $4.06 Delta % $2. Cellular Manufacturing Cost Comparison Savings Summary (PN 15301240) Current Platen Manufacturing $8.13 14% 8.698 32% .18 Proposed $5.Road Runner Current vs.501 sq.33 $0. ft.

120 hrs. inventory Reduced head count Current 8. 200 pieces. 3000 units 7 Increased flexibility/set-up/lot size reduction 3. $8.L.5 hrs.8 14% 33 hrs.Road Runner Platen Current vs.501 sq. 350 units 5 % 33% 98% 30% 43% 45% 30% 75% 88% 29% .80 2 hrs./pc.173 hrs. ft. Cost Improved manufacturing process time Increased productivity Improved quality Reduced cumulative lead-time Reduced F./pc. 5.G.03 Proposed 5. 5 pieces.ft. $5.5 hrs. . 8. Proposed Benefits Summary Road Runner (PN 15301240) Tangible Benefits Reduced floor space Reduced WIP Reduced D.3 8% 7. .803 sq.

Intangible Benefits •Improved utilization of resources •Easier to manage-visual control WIP •Easier to identify bottlenecks and make adjustments •Promotes team work-empowers employees •Promotes continuous flow manufacturing-keeps product moving •Minimizes non-value added elements in the process •Easier to schedule-level load •Improved customer service •Easier to quantify desired results-measure for success .

f. .Current Platens Layout 8.051s.

f.Proposed Conceptual Platens Layout 5. .803s.

I.R. Fixture T.O. for 4’ Platen Closed Loop Conveyor System Total $ 35K $ 15K $ 02K $ 50K $102K $ 20K $ 20K $ 40K $142K Soft Costs: Relocate Equipment/Machinery Build and Relocate Test Room Total Total Costs .F.R. / C.I.Platens – Capital Summary Hard Costs: Automated Platen Wash System T.

400 RR Platens: $4.I.07 / unit x 20.O.6K / year • R.R.000 units/month Savings: 4’ platens: $3.6K = . $142K / $226.000 units / year = $61.200 • Total Savings = $226.O.13 / unit x 40.000 units / year = $165.63 years . Current Yearly Requirements: 5.Platens .I.

Case Study #2 The Rival Company Division of The Holmes Group. . Inc.

Fans.The Rival Company Company Profile: Location: Sales: Space: Products: Clinton & Sedalia.000sf Crock Pots. Assembly and Distribution. Injection Molding. Heaters. Machining. Time Frame: 15 –18 months . Ice Cream Makers Processes: Stamping. Missouri $600M 800.

. improve quality and reduce manufacturing lead times leading Rival towards World Class Manufacturing Excellence • Reduce inventory levels to allow the opportunity for manufacturing in one location with minimal outside warehouse support areas.The Rival Company Study Objective: • To introduce Lean Manufacturing techniques that would reduce production costs.

I.P.The Rival Company Current Conditions: • • • • • • • • • • • Excessive raw material and W. inventories Remote manufacturing facilities costs Remote warehousing costs: Critical labor supply Seasonal product lines Congested manufacturing areas Excessive handling and material movement High manufacturing costs High scrap and reject levels Lack of automation and material handling systems Lack of data collection systems .

The Rival Company Approach: • Identify key areas and or products for study • • • • • Crock pot assembly process Scrap reduction Inventory reduction Plant consolidation Material cost reduction • Establish “teams” • Perform Kaizen analysis for quick hits .

problem and issue analysis Work is done outside team meetings (collaboratively) Team uses good team-working skills • Facilitative Leadership • Consensus • Team reports to “Management Implementation Team” .The Rival Company Approach .Define Team Activity: • • • • • Team works to documented implementation plan Teams meet on a weekly basis Team does task.

6 mm savings •$2 mm savings •$7 mm savings •$9 mm costs •R. Buy •Detailed operations analysis Results •8 ppl /line •$1. •Vendor Partnerships •Make vs. •Source inspection •Y.O.4 mm savings •Value Eng. Profile •Improved Planning •Vendor Deliveries •25% reduction •$1. 1.I.The Rival Company Program Overview Goal Crock Pot Assembly •Reduce costs 30% •Increase productivity 20% • 5s’ •Line Balancing •Automation •Kaizen Blitz Scrap Reduction • Reduce by 50% Inventory Reduction • Reduce $ by 25% Material $ Reduction •Reduce materials costs by 15% Plant Consolidate • Reduce operating costs Techniques Used •Handling •Vendor quality specs.D $750k savings • Inv.23 .T.

The Rival Company Program – Crock Pot Assembly (10 lines) Goals & Objectives: • Reduce Direct Labor Costs • Increase Productivity • Reduce Scrap Rate .

The Rival Company Approach – Crock Pot Assembly Observe the Process: • Establish Accurate Labor Standards • Perform Methods Analysis • Integrate Recommended Changes Into the Process • Establish the “Tact Time” • Determine Line Staffing • Rebalance the Line • Identify Benefits and Projected Savings .

The Rival Company
Current Conditions
• Lines not balanced • Assembly standards are tight • Line speed too high / frequently stops • Assemblers working at 130% • Excessive rework • Poor work place layouts • Lack of good ergonomic techniques and tools • Poor location of materials • Lack of back up equipment • • • • • • • •

Recommendations
Use ribbon band heaters-1 Use push in wire connectors-1 Combine wrap & crimp op.-1 Use snap in switch–1 Use single piece instructions –1 Automate labeling-1 Establish Engineering Standards-1 Re-balance the line to gating station (combine tasks)-1 • Provide ergonomic tools and equipment

The Rival Company
Program Results:
Current Process:
• 26 assemblers @130% performance level • 2,771 crocks/shift • 10% scrap rate • Net 2,494 crocks/shift

Proposed Process:
• 18 assemblers @100% performance level • 2,502 crocks/shift • 3% scrap rate • Net 2,472 crock /shift

The Rival Company
Savings Per Assembly Line:
Method People Min / Crock L.B.E. Crocks /person/shift 82

Current

26

5.46

62%

Proposed

18

3.24

77%

139

Delta

8

2.22

15%

57

Delta $$$

$160,000

The Rival Company Capital Costs Per Assembly Line: Conveyor Automatic Label Applicator Ergonomic Handling Equipment Superstructure Computerized Test Equipment Totals $ $ $ $ $ 25K 35K 20K 05K 25K $115K .

= .I.15MM ---------------------------------------$169K x 10 Lines = $1.I.69M R. Cost Of Change -------------------------.= Total Savings $115K x 10 Lines = $1.68 YEARS .The Rival Company TOTAL PROGRAM R.O.O.

Crock Pot Prototype Line .

Prototype Crock Pot Assembly Line Pre-form & Crimp .

Position Bottom Cover & Position Eyelet and Nut .

Case Study #3 Polaroid Corporation .

and Distribution Time Frame: 12-16 weeks Location: Sales: Space: .Polaroid Corporation Company Profile: Norton. Blister. Cartons.000sf Distribution 60. MA $750M 240. Film Packs Processes: Shrink. Special Manual Assembly (Promotions). Skin.000sf Packaging Products: Camera’s.

costs and improve lead times.Polaroid Corporation Goals And Objectives: • Analyze the existing packaging operation to reduce D. • Identify methods for process improvements • Develop plan for execution and implementation .L.

Polaroid Corporation Current Conditions Schedule: • Frequent Changes • Assumes Infinite Capacity • Poor Planning ( Capacity. Man-loading. Due Dates) • Responsibility for Execution of Schedule • (Who????) .

Continuously Training . Learning Curve • Products. People.Polaroid Corporation Current Conditions Organization: • Markson Rosenthal on Site 8 Weeks. Systems • Lack of Formally Trained Supervisors • Lack of APICS Certified Planners • Supervisors Expediting Not Supervising • Contract Work Force. Equipment.

Indirect) – Staging Requirements (Where) . Pickup – Staffing Requirements (Direct. Standards. Assembly Process Sheets • Lack of Formal Operating Procedures For: – Materials Delivery.Polaroid Corporation Current Conditions Operating Procedures: • Lack of Documentation: Prints.

Polaroid Corporation Current Conditions Process Flow: • Processes Are Overstaffed.Excessive Time Spent to Locate Parts and Move Them to Line • Excessive WIP on Floor • Product Sits in Staging for Long Periods of Time • No ‘Go-to’ Lines to Minimize Downtime . Poor Utilization of People • People Idle for Long Periods of Time • Long Set up Times .

.5 DEVELOP TACT TIME . Proposed Staffing Comparison PID 100491 DESCRIPTION 4PK BRICK CURRRENT PROPOSED QTY / MO PROCESS STAFFING STAFFING 678 SHRINK 9 6 COMMENTS LD BRICK TO MACH .653 900 39...667 475.2 LD CLIP STRIP TO SEALER .10 SLEEVE TO 4 PK .14 STAFF TO MACHINE CYCLE TIME .METHODS TIME STUDY 6MIN /UNIT DEVELOP TACT TIME -METHODS 627495 15 CT CLIP STRIP 300 SHRINK 20 10 118180 616233 109855 103008 CAM PKT KIT W/JOY KIT WINGS BUSINESS ADDITION CAM KIT POKT CAM / FILM DISPLAY CAM OS BOX W/$12.04MIN LD WHT TO BLUE CTN ..34MIN STAFF TO MACHINE CYCLE TIME ..000 MIDGET 3 MIDGETS ZED THEILE JR 14 10 STAFF TO MACHINE CYCLE TIME .300 CSTM-PK CSTM-PK CSTM-PK CSTM-PK 19 17 22 18 105 8 8 8 10 50 624250 T600 SGL GBL 128...15 ASY STRIPS -1.METHODS DEVELOP TACT TIME .Polaroid Corporation Actual Vs.01 REBATE TOTAL PEOPLE CSTM PK 1.000 14 13 41 146 9 13 32 82 .01MIN 118690 624247 T600 3PK -10CT T600 GL GABLE 20 CT TOTAL PEOPLE AUTO PK TOTAL PEOPLE ALL 98.454 5.

Lack of Formal Process Documentation .

Lack of “Go To” Lines .

Poor Planning & Utilization of Resources .

F. Sits in Staging for Long Periods of Time .G.

Batch Assembly .

Poor Housekeeping Practices – 5S’ .

Poor Staffing .Imbalance in Process .

Poor Planning – Waiting for Parts .

Poor Utilization of Resources – Batch Assembly .

Polaroid Corporation RECOMMENDATIONS: • Hire an Experienced APICS Certified Planner to Schedule the Operation.(Who. Staff and Dedicate Material Handling Personnel to Handle Workload and Move Material. Why. Where. Establish Formal Daily Operating Procedures to Move and Stage Materials . What) • • . When.

Polaroid Corporation RECOMMENDATIONS: Staging Options (Inbound) • Stage to Designated Central Area. • Have Dedicated Material Handling Personnel Pull by Order and Deliver Directly to the Point of Use. Manifest and Move to Point of Use. Take Direction from Steve O. Manifest. and Move to Secondary Staging Area Near Required Process • Stage to Designated Area by Material Type. .

. Keep in Returns Rack According to Plan/Schedule.Polaroid Corporation RECOMMENDATIONS: Staging Options (Outbound) • Stage Materials 3-Deep Along Back Wall As Originally Designed and Staff Appropriately So That Orders Are Processed Immediately Upon Completion • Install Pallet Rack in Designated Area for Returns. If Part Remains in Rack for More Than 1-Week. Return to Warehouse.

Execution of Schedule. Staffing.Polaroid Corporation RECOMMENDATIONS: • • • Markson Rosenthal Should be Responsible for Running the Operation. Develop Methods (One Piece Flow) and Standards for All Manual Packaging Operations and Develop the Tact Time for Each Job to be Run). • . Equipment to be Used. Polaroid Should Supply Forecast and any Changes in Schedule with Adequate Notice.

Certified Planner .Group Leaders .QC for Corrective Action .Data Entry Personnel .Materials Personnel .Ops Manager .Human Resources .Polaroid Corporation RECOMMENDATIONS: • Develop a Stable and Well-Trained Workforce • Revisit Organizational Structure and Personnel In Both Markson Rosenthal and Polaroid Organizations.Master Scheduler .Facilities Support (Mechanics) . .Experienced Supervisors .Industrial Engineer .

Polaroid Corporation RECOMMENDATIONS: • Change Format and Agenda of Morning Meetings • Eliminate Reports that are Not Used to Initiate Corrective Action • Provide Work Force with Tools and Equipment to Efficiently Perform Their Daily Task • Establish Vendor Relationships: more frequent delivery of corrugation • Immediately implement Kaizen Blitz to make easy and quick changes that will reduce costs and improve lead times .

Are the Results What We Expected? • Repeating the Cycle Continuously .What Needs to Be Done? • Action .Solving Problems Together • Training .Just Do It! • Follow Up .Polaroid Corporation What Does Kaizen Mean? • Continuous Improvement • Rapid Change With Immediate Results • Teamwork .

Polaroid Corporation Specific Examples of a Kaizen Blitz • Process Flow Analysis .Poke Yoke • Any Area Where Improvement can be Made! . Cycle Time • Implementing Visual Control / Visual Factory Techniques • Working towards a Production on Demand for Materials • Implementing Quick change Tooling & Fixturing • Developing Mistake Proofing Devices .Line Balancing TAKT Time vs.

Polaroid Corporation How Does the Process Work? • Select the Type of Kaizen Blitz • Pull Team Together • Training on What the Quick Step will Consist of and How to Do It • Establish Kaizen Blitz Goals • Perform the Kaizen Blitz .Go Out and Do It • Document Before / After Improvements • Establish Follow Up Items • Presentation to Management of Kaizen Blitz • Monitor and Repeat Process as Needed .

Polaroid Corporation Program Results: • Staff automated packaging equipment to machine cycle time • One piece flow implemented resulting in: – – – – – Reduced labor Increased productivity Improved quality Improved utilization of floor space Improved lead time to the customer • Established “Go to Lines” – reduced setup/downtime • Implemented Point of use staging for materials .50% less downtime • Results: – Reduction of 42 people from the current level of 146 .

One Piece Flow Prototype Line .

One Piece Flow Assembly Area .

Packaging Area Layout .

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