Professional Documents
Culture Documents
1. Overproduction
2. Transport
3. Delay
4. Processing
5. Inventory
6. Motions
7. Defects
EQUIP.
LONG COST
SETUPS
LOT SIZES
2000 2000 2000
GOOD: If Demand
= 1000 units/day
SUPER
A B PRESS C
BAD: If Demand
Press Capacity = 300 units/day
1000 units/day
What Can Happen When I Overproduce?
Dept. Dept.
A B
Dept.
C
Dept.
D
NOTE: If a product has 100 independent parts and all 100 parts have 99% on-
time reliability, then what is the probability of successful production? =
(.99) 100
Example - Delay and Transport Wastes
DEPARTMENTAL LAYOUT
BATCH LOTS
Dept. B
Inspection
Lot Delay
CENTRAL STORES
Queue Delay
Dept. A
ORDER KITTING
Queue Delay
Lot Delay
4. Waste of Processing
• Excessive scrap
• Breakdowns
• Running out of materials
• Excessive tool wear
• Poor yield
• Inadequate process control
Step Change
20
16
12
0
1 4 7 10 13 16 19
5. Waste of Inventory
INVENTORY ON-HAND INVENTORY REQUIRED
Finished Product
to Customer
Raw Material
Sea of Inventory
“What Waste?”
Inventory Hides Waste
Finished Product
to Customer
Raw Material
Hidden
Wastes $ $
$ LONG
SET-UP
$$ $ $
TIME
POOR
FORECASTING COMMUNICATION
MACHINE PROBLEMS
BREAKDOWN
$ QUALITY
PROBLEMS
ABSENTEEISM
LONG
LINE
$ LACK OF
HOUSEKEEPING
SUPPLIER
DELIVERY
IMBALANCE
LEADTIME
Inventory Hides Waste
Finished Product
to Customer
Raw Material
$ $ LONG $ $
POOR
SET-UP
TIME
$ Sea of
FORECASTING COMMUNICATION Inventory
MACHINE PROBLEMS
BREAKDOWN
QUALITY
PROBLEMS ABSENTEEISM LONG
LINE LEADTIME
LCK OF IMBALANCE
HOUSEKEEPING SUPPLIER
DELIVERY
Excessive
Walking
Assembly
Point
Repair
Area
Scrap
Flow production
1. Workers placed together
2. Each works on a single unit
(One-by-one production)
Assembly
Running
Commutators Front Axles
Boards
Who said
“You can have any color you want
Assembly
as long as it is black”
Assembly
Why is there an
impact on lead time
with shorter travel?
Assembly
Fuel
Seats Glass
Systems Tubes Screws
X
12
Achieving Our Vision
4th S - Standardize
11 10
3rd S - Shine
9 8
Employees
Revenue
(Indexed to 2003)
Facility area
Std Combo Capacity Analysis Takt Time &
Layouts
(7
options/Model)
& Std Work
Sheets
New products
Operations
(# People & #
Bar Chart
Machines)
Future Info &
Material Flow
2.00
2nd S - Straighten
5th S - Sustain
Target
13
Aftermarket growth
6th S – Safety
Current
plan
Information &
Material Flow
7
1.50
Progress & Built In Whole 2004 LE
Newspaper
Sourcing strategy
Process Spaghetti
Chart
6
1.00
Team
Members &
Charter Info
Photos
products and
process
Employee
PQ
Analysis
skill transition
Process Matrix &
Process At
(X Map) – Part
A Glance
Families
2
ERP1 S - Sort
st
3 4 5
0.50
00 01 02 03 04E 05E 06E 07E 08E