Lean Manufacturing

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LEAN GLOSSARY

5 WHY’s 5S BATCH BATCH AND QUEUES BENCHMARKING BOTTLE NECK

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5 WHY’s
The 5 why's typically refers to the practice of asking, 5 times, why the failure has occurred in order to get to the root cause/causes of the problem. There can be more than one cause to a problem as well. In an organizational context, generally root cause analysis is carried out by a team of persons related to the problem. No special technique is required.

5S
Five terms beginning with 'S' utilized to create a workplace suited for visual control and lean production. 'Seiri' means to separate needed tools, parts, and instructions from unneeded materials and to remove the latter. 'Seiton' means to neatly arrange and identify parts and tools for ease of use. 'Seiso' means to conduct a cleanup campaign. 'Seiketsu' means to conduct seiri, seiton, and seiso at frequent, indeed daily, intervals to maintain a workplace in perfect condition. 'Shitsuke' means to form the habit of always following the first four Ss. SORT: Eliminate everything not required for the current work, keeping only the bare essentials. SIMPLIFY: Arrange items in a way that they are easily visible and accessible. SWEEP: Clean everything and find ways to keep it clean. Make cleaning a part of your everyday work. STANDARDIZE: Create rules by which the first 3 S’s are maintained. SELF-DISCIPLINE: Keep 5S activities from unraveling

BATCH
Making or doing activities in groups, lots, or batches in which each part or finished good in the batch is identical. Can happen in both office/admin. and manufacturing environments. Creates “waste”.

BATCH AND QUEUES

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Producing more than one piece of an item and then moving those items forward to the next operation before they are all actually needed there. Thus items need to wait in a queue. Also called "Batch-and-Push." Contrast with continuous flow.

BENCHMARKING
An improvement process in which a company or organization compares its performance against best-in-class companies or organizations, determines how those companies or organizations achieved their performance levels, and uses the information to improve its own performance. The subjects that can be benchmarked include strategies, products/programs/services, operations, processes and procedures.

BOTTLE NECK CELL
An arrangement of people, machines, materials and methods such that processing steps are adjacent and in sequential order so that parts can be processed one at a time (or in some cases in a constant small batch that is maintained through the process sequence). The purpose of a cell is to achieve and maintain efficient continuous flow.

CHANGE-OVER (QUICK CHANGE OVER / SMED / SET-UP REDUCTION)
When a piece of equipment (office and manufacturing) has to stop producing in order to be fitted for producing a different item. For example, the installation of a different processing tool in a metal working machine, a different color paint in a painting system, a new plastic resin & mold in an injection molding machine, loading different software, and so on.

QUICK CHANGEOVER
Quick Changeover is a method for rapidly and efficiently converting a process from running the current product to running the next product. It can, and often is, used in starting up a process and rapidly getting it to running condition with minimum waste. Quick Changeover is a concept that says all changeovers (and startups) can and should take less than 10 minutes. Closely associated is an advanced concept of OTED (One-Touch Exchange of Die), which says changeovers can and should take less than 100 seconds. 98113253.docLean Drive: 98113253.doc 3

We have worked with a number of companies who have reduced their setup and changeover time from several hours to 30 minutes or less on the first try. SMED can be applied to critical processes to reduce batch sizes, reduce work-in-process inventories, achieve shorter lead times, and thereby reduce product costs (bottom-line $) and increase flexibility to meet changing customer demands.

CONCURRENT ENGINEERING
The restructuring of the engineering process so that the input of all concerned parties, including manufacturing, sales and even customers, are heard from during a project's conception.

CONTINUOUS FLOW
Each process (in the office or plant setting) makes or completes only the one piece that the next process needs, and the batch size is one - single-piece flow or one-piece flow – opposite of batch-and-queue.

CONTINUOUS FLOW PRODUCTION
In its purest form continuous flow means that items are processed and moved directly to the next process one piece at a time. Each processing step completes its work just before the next process needs the item, and the transfer batch is one. Also known as "one-piece flow" and "make one, move one". Flow is the most effective and efficient way to deliver any good or service for a customer. The focus is on aggressively removing process waste. Using flow, you will reduce lead times, operating costs, and improve quality. Your customers will see better, more consistent service. Your operators will work at a steadier pace in a safer, more ergonomically designed environment.

CONTINUOUS IMPROVEMENT
See Kaizen– continually make the process better. The process is never perfect.

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CYCLE TIME
How long it takes a person to complete their total task or activity before starting again.

COST
Cost is defined, in general, as an outlay of a resource, consciously made with the expectation of a benefit to the organization.

DIRECT COST
The cost of resources used that can be traced directly to decisions. Other Types Of Cost: - Variable Cost (Cost that change in total proportion to changes in the related level of total activity or volume) - Fixed Cost (Cost that remains unchanged in total for a given time period despite wide changes in the related level of total activity or volume) - Indirect Cost (The cost of resources used that are necessary for logistics or infrastructure but that cannot be traced directly to specific products or services provided) - Period Cost (The cost of resources used in a period that cannot be traced easily to either products or production processes) - Product Cost (The costs of all resources used to produce a product. These include direct and indirect production costs) - Opportunity Cost (The forgone value of an alternative that is precluded by choosing another alternative)

DMAIC
The DMAIC process is the heart of Six Sigma. DMAIC refers to a data-driven quality strategy for improving processes, and is an integral part of the company's Six Sigma Quality Initiative. DMAIC is an acronym for five interconnected phases: Define, Measure, Analyze, Improve, and Control.

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FLEXIBLE AUTOMATION
The ability to switch quickly from one product to another by shortening setup times.

FLEXIBLE MANUFACTURING SYSTEM
Integrates combinations of various types of capital equipment, primarily in metal-cutting applications. A system is flexible if it is capable of processing a number of different work-pieces simultaneously and automatically, with the machines in the system carrying out the system’s operation in any sequence.

FLOW
In its purest form continuous flow means that items are processed and moved directly to the next process one piece at a time. Each processing step completes its work just before the next process needs the item, and the transfer batch is one. Also known as "one-piece flow" and "make one, move one".

FLOW DISTANCE
The distance a part or document travels during the manufacturing operation.

GREEN BELT
An employee of an organization who has been trained on the improvement methodology of Six Sigma and will lead a process improvement or quality improvement team as *part* of their full time job. Their degree of knowledge and skills associated with Six Sigma is less than that of a Black Belt or Master Black Belt. Extensive product knowledge in their company is a must in their task of process improvement. The green belt employee plays an important role in executing the Six Sigma process at an organization level.(See Six Sigma Belts)

HEIJUNKA - A simple tool for leveling production

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The act of leveling the variety and/or volume of items produced at a process over a period of time. Used to avoid excessive batching of product types and/or volume fluctuations, especially at a pacemaker process. For lean managers who accept the notion that leveling by volume and mix produces benefits throughout the value stream, the problem remains of how to control production so that true heijunka (leveling) is consistently achieved. Toyota came up with a simple answer many years ago in the form of the heijunka box.

A typical heijunka box has horizontal rows for each member of a product family, in this case five. It has vertical columns for identical time intervals of production, in this case 20 minutes. Production control kanban are placed in the slots created, in proportion to the number of items to be built of a given product type during a time interval. In this example, the shift starts at 7 a.m. and kanban are withdrawn by a material handler every 20 min. for distribution to the pacemaker point along the value stream. (In a lean production system of this type, there is only one pacemaker point along the value stream where production instructions are introduced. From that point back up the stream, parts are replenished at each break in continuous flow by means of simple pull loops from upstream parts supermarkets.) In the first 20 min., the value stream will produce one kanban of Type A, two kanban of Type B, one kanban of Type C and one kanban of type D. Whereas the slots represent the timing of material and information flow, the kanban in the slots each represent one pitch of production for one product type. (Pitch is takt time multiplied by packout quantity. This concept is important because it represents the minimum amount of material that can be moved from one operation to the next, and the number of items called for by a kanban are sized to this amount.)

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In the case of Product A, the pitch is 20 min., and there is one kanban in the slot for each time interval. However, the pitch for Product B is 10 min., so there are two kanban in each slot. Product C has a pitch of 40 min., so there are kanban in every other slot. Products D and E share a production process with a pitch of 20 min. and a ratio of demand for Product D versus Product E of 2:1. Therefore, there is a kanban for Product D in the first two intervals of the shift, and a kanban for Product E in the third interval, and so on in the same sequence. Used as illustrated, the heijunka box consistently levels demand by short time increments, 20 min. in this case. This is in contrast to the mass-production practice of releasing a shift’s, or a day's or a week's worth of work to the production floor. Similarly, the heijunka box consistently levels demand by mix. For example, it ensures that Product D and Product E are produced in a steady ratio in small batch sizes. Production process stability introduced by leveling makes it vastly easier to introduce lean techniques ranging from standard work to continuous flow cells. As the mura (unevenness in productivity and quality) and muri (overburden of machines, managers and production associates) introduced by traditional production control recede, muda (waste) declines as well. When every process is leveled by volume and mix, it is a different world for employees -- who are no longer overburdened; for customers -- who get better products on the date promised; and for manufacturers -- who get to keep the money saved when muda, mura and muri are all reduced.

JIT (Just In Time)
Producing or conveying only the items that are needed by the next process when they are needed and in the quantity needed. Can even be used between facilities or companies.

KAIZEN (Change in Better)
This is the Japanese word for improvement. Kaizen implies more than improvement in basic production processes. Kaizen represents a philosophy whereby an organization, and the individuals within it, undertake continual improvements of all aspects of organizational life.

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This is a critical tool supporting companies and organization in their ongoing improvement activities identified through enterprise Value Stream Mapping. Kaizen is applied as part of a system level approach to improvement. Kaizen events improve companied end to end process through the introduction of flow and pull to improve lead time, process flexibility and customer responsiveness. Kaizen events move companies away from traditional lengthy projects where valuable resources spend more time in meeting rooms and completing updates than in making change happen. Kaizen is a focused approach that brings critical resources together and empowers participants to not only root cause and determine solutions but most importantly to implement the change. Time and effort is spent on the shop floor or wherever the value stream problem exists. Kaizen is action focused!

KANBAN (Signal)
A signaling device that gives instruction for production or conveyance of items in a pull system.

LEAD TIME
The time that elapses between receiving an order and shipping the product or service to the customer.

LEAN
Lean is simply a thought process, not a tool, used to look at your business whether it is manufacturing, service or any other activity where you have a supplier and a customer/receiver. The key thought processes within Lean are identifying 'waste' from the customer perspective and then determining how to eliminate it. Waste is defined as the activity or activities that a customer would not want to pay for and/or that add no value to the product or service from the customer's perspective. Once waste has been identified in the Current State, a plan is formulated to reach the Future State in an effective manner that encompasses the entire system.

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Level-Loading & Mixed-Level-Loading
(A.k.a. Heijunka, Balancing) A Technique used to balance production throughput according to the needs of customers (Demand). Comments: Level-Loading is loading your production system according to the exact needs (+ or -) of your customers. Ideally it is based on the consumption of products customers are "pulling" from your system. Mixed-Level-Loading supports the same concept as Level-Loading which is to supply your customers with exactly what they need when they need it. However, "mixing" includes producing perhaps many different models of products in correct quantities and ratios to satisfy customer demand for a variety of products with shorter than average lead-times. Level and Mixed-Level Loading are advanced Lean methods and require a good deal of Lean implementation before they can be very successfully applied in "real world" plants. You must have the ability to switch from one product to another very quickly (usually automatically) to make this system work. Often you will need to modify tooling to accept a variety of parts so that no changeover process is required at all. Example: One particular client of ours is an automotive OEM plant. They are so good at MixedLevel-Loading that on one small conveyor you will often see 2 or 3 Toyota parts followed by 1 or 2 GM parts, followed by 4 or 5 Nissan parts, followed by 2 Toyota parts, followed by 6 or 8 Ford parts, followed by... Finding the right "mix" to satisfy each customer "real-time" is much easier than being able to produce that mix. Putting all the best Lean tools in place will enable you to eventually take your production to this pinnacle level of performance.

MATERIAL FLOW
Movement of physical product through the value stream.

MRP (MATERIAL REQUIREMENT PLANNING)
A software tool which enables a manufacturer to plan, allocate and track material and financial resources for a production process.

MIXED MODEL
Mixed Model flow is making value flow by taking out the waste in your value stream so that multiple products are made in each time period. This is accomplished by making the mixed model flow part perform as if it were a dedicated asset.

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Each product flows at the rate of customer demand, even though mixed products are being made. The Mixed Model workshop is for the more advanced lean practitioner. Mixed Model flow is typically introduced in the lean journey as a tool to deploy when the company is faced with products with significantly different cycle and process times that are competing for the same resources. Mixed Model is part of the overall kaizen event identified in the implementation plan. The Mixed Model workshop teaches practical ways to manage mixed products through the enterprise value stream in order to optimize flow, pull and eliminate process waste. Practical on floor exercises help the student to practice what they are learning - as they learn it.

MONUMENT
Any design, scheduling, or production technology with scale requirements necessitating that designs, order, and products be brought to the machines to wait in a queue for processing.

MUDA
See “Waste”

ON PIECE FLOW
In its purest form continuous flow means that items are processed and moved directly to the next process one piece at a time. Each processing step completes its work just before the next process needs the item, and the transfer batch is one. Also known as "one-piece flow" and "make one, move one".

PRODUCT FAMILY
A group of products that go through the same or similar downstream or "assembly" steps and equipment.

PRODUCTIVITY
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The ratio of measured outputs over measured inputs (i.e. - widgets produced per man-hour).

PULL SYSTEM
To produce or process an item only when the customer needs it and has requested it. The customer can be internal or external.

PUSH
To produce or process an item without any real demand from the customer – usually creates inventory and all other 'wastes'.

SENSEI
Teacher, one who has gone before.

SIX SIGMA
Approximately 3 errors per million. Six Sigma means the elimination of variance in the process in order to allow flow using the necessary analytical tools and process. Sigma Sigma Sigma Sigma Sigma Sigma 1: 2: 3: 4: 5: 6: Defects Defects Defects Defects Defects Defects per per per per per per million million million million million million = = = = = = 690,000 308,537 66,807 6,210 233 3.4

Six Sigma has two key methodologies: DMAIC and DMADV, both inspired by W. Edwards Deming's Plan-Do-Check-Act Cycle: DMAIC is used to improve an existing business process, and DMADV is used to create new product or process designs for predictable, defect-free performance. DMAIC Basic methodology consists of the following five steps: Define the process improvement goals that are consistent with customer demands and enterprise strategy Measure the current process and collect relevant data for future comparison Analyze to verify relationship and causality of factors. Determine what the relationship is, and attempt to ensure that all factors have been considered

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Improve or optimize the process based upon the analysis using techniques like Design of Experiments Control to ensure that any variances are corrected before they result in defects. Set up pilot runs to establish process capability, transition to production and thereafter continuously measure the process and institute control mechanisms

DMADV Basic methodology consists of the following five steps: Define the goals of the design activity that are consistent with customer demands and enterprise strategy Measure and identify CTQs (critical to qualities), product capabilities, production process capability, and risk assessments Analyze to develop and design alternatives, create high-level design and evaluate design capability to select the best design Design details, optimize the design, and plan for design verification. This phase may require simulations Verify the design, set up pilot runs, implement production process and handover to process owners Some people have used DMAICR (Realize). Others contend that focusing on the financial gains realized through Six Sigma is counter-productive and that said financial gains are simply byproducts of a good process improvement Statistics and robustness The core of the Six Sigma methodology is a data-driven, systematic approach to problem solving, with a focus on customer impact. Statistical tools and analysis are often useful in the process. However, it is a mistake to view the core of the Six Sigma methodology as statistics; an acceptable Six Sigma project can be started with only rudimentary statistical tools. Still, some professional statisticians criticize Six Sigma because practitioners have highly varied levels of understanding of the statistics involved. Six Sigma as a problem-solving approach has traditionally been used in fields such as business, engineering, and production processes.

SIX SIGMA BELTS
Master Black Belt Black Belt Green Belt Yellow Belt

SMED

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Single Minute Exchange of Die or SMED is a method for rapidly and efficiently converting a process from running the current product to running the next product. It is also often referred to as Quick Changeover The SMED method can, and often is, used in starting up a process and rapidly getting it to running condition with minimum waste. SMED or Single Minute Exchange of Die is a concept that says all changeovers (and startups) can and should take less than 10 minutes ... hence the phrase Single Minute. Closely associated is an advanced concept of OTED (One-Touch Exchange of Die), which says changeovers can and should take less than 100 seconds.

STANDARD WORK
A precise description of each work activity specifying cycle time, Takt time, the work sequence of specific tasks, and the minimum inventory of parts on hand needed to conduct the activity.

SUPERMARKET
A controlled inventory of items that is used to schedule production at an upstream process. Very visible.

TAKT TIME
The rate of demand from the customer. Takt Time = Available Operating Time/Requirement

THEORY OF CONSTRAINT
Theory of Constraints describes methods to maximize operating income when faced with some bottleneck and some non-bottleneck operations.

THROUGHPUT COSTING
Counts only unit-level costs as the cost of a product or service. All other costs of resources used are counted as operating costs (or expenses). The throughput (under throughput costing) is sales revenue minus all unit-level spending for direct costs.

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Timing is the key in distinguishing between absorption, variable, and throughput costing. All manufacturing costs will ultimately be expensed under all three methods. Under throughput costing, only the unit-level spending for direct costs are included in the product cost. All other committed costs are expensed as period costs during the period in which they are incurred. Under variable costing, the fixed manufacturing-overhead costs are expensed during the period in which they are incurred. Under absorption costing, fixed manufacturing-overhead costs are held in inventory as product costs until the period during which the units are sold. Then those costs flow into cost-of-goods-sold expense. Throughput, variable and absorption costing will not result in significantly different income measures in a JIT setting. Under JIT inventory and production management, inventories are minimal and as a result inventory changes are also minimal. The three methods result in significantly different income measures only when inventory changes significantly from period to period.

TPM (Total Productive Maintenance)
A series of methods, originally pioneered by Nippondenso (a member of the Toyota group), to ensure that every machine in a production process is always able to perform its required tasks so that production is never interrupted. A system for designing or selecting, correcting, and maintaining equipment so that breakdowns rarely occur during production activities.
   

The most efficient use of equipment A company-wide Preventive Maintenance system Includes all employees Autonomous maintenance driven

Types Of Maintenance Maintenance Prevention: Designing or selecting equipment that will run with minimal maintenance and is easy to service when necessary. Predictive Maintenance: Determining the life expectancy of machine parts or components in order to replace them at their optimum times. Corrective Maintenance: Improving the performance of existing equipment or altering equipment to changing manufacturing needs.

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Preventive Maintenance: Scheduling and planning maintenance activities so that smooth operation of equipment may continue. Autonomous Maintenance: Involving production employees in all aspects of the machine maintenance process. 5 Pillars Of TPM Goals of TPM Zero Unplanned Downtime Zero Defects Zero Speed Losses Zero Accidents A Long Healthy Machine Life Cycle With Minimum Repair Costs
    

TQPM (Total Quality Management)
A systematic customer focused approach to continuous performance improvement. A philosophy and set of guiding principles which represent the foundation for continuously improving the organization through employee involvement. The application of quantitative methods and human resources to improve the materials and services supplied to and by an organization and all the processes within the organization and the degree to which the needs of the customer are met. The integration of fundamental management techniques, existing improvement efforts, and technical tools, under a disciplined approach to focus on continuous improvement.

VALUE
A product or service's capability provided to a customer at the right time, at an appropriate price, as defined in each case by the customer.

VALUE ADDED
Activities or work essential to ensure a product or service meets the needs of the customer.

VALUE STREAM
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All activities, both value added and non value-added, required to bring a product group or service from order to the hands of the customer, and a design from concept to launch to production to delivery.

VALUE STREAM MAPPING
A pencil-and-paper tool used: a) to follow a product or information (or both) activity path from beginning to end and draw a visual representation of every process (value and non-value) in the material and information flows. b) then to design a future state map which has waste removed and creates more flow) to end up with a detailed implementation plan for the future state.

VISUAL FACTORY
An environment where it is easy for everyone to 'see' the current status of the process or 'system' and the visual give immediate information to the individuals to understand 'how the operation is doing'. Visual Control applied to the workflow, enables the day-to-day workplace to be self-explaining, self-regulating, and self-controlling. It is an essential element of Lean implementation in that it provides the ability to manage variances in process conditions (machines, materials, methods, manpower, and methods), and in product outcomes (quality, delivery, cost) at the SOURCE where the product is being made, while the product is being made. Visual Control can easily be applied in any workplace to:
 Schedule and Delivery Controls  Quality Controls  Work Controls  Facility Controls  Equipment/Tooling/Fixturing Controls  Performance Improvement Controls  Material Flow Controls

Faster response to problems and more thorough countermeasures possible with Visual Control as compared to traditional management controls, enable achievement of:
 90% reduction in materials waste  75% reduction in floor space  900% improvement in product quality  90% reduction in lead time

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 50%

reduction in variable costs etc.

WASTE
Anything that does not add value to the final product or service, in the eyes of the customer. An activity the customer wouldn't want to pay for if they knew it was happening.

W.I.P. (Work In Progress or Work In Process)
Items (material or information) between machines or processes or activities waiting to be processed.

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