Lean Manufacturing

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Lean Thinking

Diederik Naessens Director Technology

Afkantpersen

Ponsmachines

Lasersnijmachines

Flexible Manufacturing Systems

discrete • Short lead-times

DISCRETE MANUFACTURING
• Hybrid typology (ATO - MTO - ETO..) • Modularity in products • Options with constraints • Unstable demand • Unpredictable productmix • Constraint planning • MRP / MPS / SIC....component • Important procurement • Long lead time for components • Subcontracting (parts and operations) • After sales service • Multi-site / multi-company activity • Complex logistics

A RESONATING SYSTEM
Resonating output Assemblyplanning Manufacturing Assembly

Variability

Orders

Feedback

UNPREDICTABLE OUTCOME



The variability having its origin in “coincidences” is reflected in the unpredictability of part availability Synchronization ?? Delivery accuracy??





Complexity / Uncertainty

High

COMPLEXITY

DURABLE CONSUMER PRODUCTS

CAPITAL GOODS

HIGH -VOLUME PRODUCTS Low CONSUMER PRODUCTS

FASHION ARTICLES SPARE PARTS

Low

High

UNCERTAINTY


Source : De Vlerick School voor Management

Two important transformations

• High-end ERP – implementation (INFOR ERPLN)
(ERP : Entreprise Resource Planning)

• Lean Transformation



What is Lean Thinking ?
Lean Thinking is a methodology to : - specify value - arrange value generating actions in the best sequence - perform these actions without interruption as soon as someone asks for - perform these actions in an always more efficient way. Lean Thinking gives immediate feedback in order to covert waste in value.

Lean Thinking Principles

Jim Womack

&

Dan Jones

The customer stands central


Value is only determined by the customer and is always related to a specific

The 5 principles of Lean Thinking
1.

Specify value per specific product Identify the value stream for each product Let the value flow without interruptions in a continuous way. Let the customer pull the value Persu perfection

2.

3.

4.

5.

Specifying value




Lean Thinking starts with an attempt to precisely define the value of a specific product with well defined functionalities at a fixed price in a dialog with the customer. The existing production resources and technologies are at that moment of secondary importance. The company has to be re-engineered in view of production lines with dedicated resources.

Specifying value


In a Lean Thinking exercise, you must try to take the place of: - the design on its way from concept to launching - the order on its way of the information path from demand up to delivery. - the physical product during its transformation from base material up to finished product. and describe what is happening to you at each step of the value stream.

Let the customer pull


We design, schedule, manufacture what and when according to the customer needs Sales forecasts are not necessary.



Lean Thinking


Lean Thinking stands for radical improvement (kaikaku) in contrast with continuous incremental improvement (kaizen).



In practice now.....

Lean Thinking


Value must been seen through the eyes of the customer. The great virtue of Lean Thinking is not directly to provide state-of-the art solutions for a complex problem, but to change the logic of working so that the problems more or less disappear. Lean Manufacturing eliminates and/or visualizes waste





Is there a better way ??


The Lean Thinking gives a clear answer: In order to efficiently control the throughput, delivery times, WIP and inventory in a complex environment, it is essential that manufacturing and assembly are performed at a pre-defined pace or takt and that the operations are carried out in a continuous flow. This is the “push” characteristic of Lean Thinking. This takt is determined by the business plan, and the resources of the bottle-neck activity -whatever they are- must be able to follow this takt.





Continuous flow instead of batch-and-queue


In the continuous-flow layout, the production steps are arranged in sequence, usually within a cell, and the product moves from one step to the next with no buffer of work-in-process in between. ( ≠ Kanban )



Continuous flow instead of batch-and-queue

LEAN CELL FOR HYDRAULIC CYLINDERS AND CONTROL SYSTEMS Lead time reduction from 4 months to 3 weeks Zero inventory

Continuous flow


As soon as continuous flow is implemented, a drastic reduction is noticed in: throughput time inventory

 

Why ???

Variability….


If the utilization rate of a production unit becomes close to the limits of capacity, the average cycle times will increase in a highly non-linear fashion. If variability reduction is feasible and affordable, it offers the best of all results. It should be the first thing to start with in order to optimize a production system. Lean Thinking is a technique that by nature reduces the controllable variability. On the “random” variability, the Lean Thinking has no grip.





Lean Thinking is counterintuitive


Keeping every employee busy and every machine fully utilized to justify capital investment are not the highest priority anymore. Continuous-flow layout replaces batch-and-queue production methods





Push and pull…..


A push system schedules the release of work based on demand A pull system authorizes the release of work, based on the status of the production environment.



We let the customer pull …..but a well defined takt is essential !!



Lean transformations where waste is eliminated mostly imply other process technologies and new product concepts that can be kept surprisingly simple.

Is there something wrong with MRP?

 

…certainly not ! Also in a Lean transformed environment , PRP (Project Requirements Planning) and MRPII (Manufacturing Resource Planning) are needed as robust control systems and should be treated with due respect. …

Application of the Finite Capacity Schedulers within the Lean Environment


  

Control of the manufacturing at the highest level with monitoring of takt and offsets and triggering of events. Support of the cell logic Optimization of the assembly activity in the most detailed way. Planning of the job shop activity of the internal supplier.

LEAN CELL FOR HYDRAULIC CYLINDERS AND CONTROL SYSTEMS Lead time reduction from 4 months to 3 weeks Zero inventory

Visibility…

Looking for perfection


By letting the value flow faster and faster, new causes of waste come to surface. The more we pull harder, the more points for improvement become visible.

Visibility…


The stimulation for improvement is strenghtened by the transparency typical for Lean Thinking. In a lean system, to everyone (....workmen, suppliers, customers, distributers, ...) everything is visible so that is becomes easier to detect points for improvement. Lean Thinking is not only an antidote against waste, it is also an antidote against stagnating.

“Perfection is like Infinity”

Lean Thinking and the organization


Lean Thinking breaks the conviction that functions must be grouped in departments.



BU CNC press brakes

F. Valcke

BU Conv. Pr. Brakes & shears

DIVISION CNCPRESS BRAKES & SHEARS

Responsibility Center
J Hemberg

BU LaserMachines

DIVISIONAL STRUCTURE

BU Turret Punch presses

DIVISION LASERMACHINES & PUNCH PRESSES

Responsibility Center

F. De Bie

DIVISION CUSTOMER SERVICES

Planning After Sales resources Interventions and After Sales-admin. Statistical analysis Spare parts IT-support for After Sales

Development After Sales in subsidiaries Technical documentation Training (internal / external) Installation management

Warranties Revisions Upgrading and retrofit Consultancy Quality

BU After Sales

Quality measurements Contract management

Responsibility Center
G. Porte D. Naessens B. Florizone W. Serruys Gert Thienpont

Finances

Logistics
Expense Center

Engineering / R& D
Product design Software development Research & Development Safety / Environment Safety requir. products (extern. comm.)

Human Resources & Payroll
Expense Center Expense Center
HRM Human resources management Payroll Training

Financial control & reporting Order processing Accounts payable Accounts receivable Accounting Budgets & budget control Liquidity & cash management Invoicing Cost accounting & project calculation Product shipping / Packaging Assurances FIN

Logistic systems DNSN Inventory control / Inventory Material storage /Orderpicking Logistics subsidiaries Global capacity control

Expense Center

Procurement Subcontracting (negotiations) Global sourcing/subsidiaries Material receiving

LOG

ENG
P. Deferme

D. Naessens

D. Naessens

Information Systems
Electronic Data Processing Datacollection Computer Aided Manufacturing Repro

Production support & mainten.
Expense C
Repair machines & production FCLS Systems Maintenance installations & DWFF infrastructure Tool management Operations on conv. machines OND

Sales & Marketing
Order servicing & Contracts Order processing Marketing & Publicity Price setting Project budgetting Democenter

ICT

VKP

Expense C.

Expense C

C.

.

KLT

PON

Engineering (ST) Safety products Desktop Publishing Routings. Process development Project Planning Assembly planning

Order processing Material Requirem. Planning. Capacity Requirem. Planning. Shopfloor planning Production release Purchasing (call off) Subcontracting (call off)

Production Final assembly Final inspection After Sales support Installation Training Performance measurement

Quality analysis Second hand. /retrofit Preventive maintenance

LAS

CON

Engineering (ST) Safety products Desktop Publishing Routings. Process development Project Planning Assembly planning

Order processing Material Requirem. Planning. Capacity Requirem. Planning. Shopfloor planning Production release Purchasing (call off) Subcontracting (call off)

Production Final assembly Final inspection After Sales support Installation Training Performance measurement

Quality analysis Second hand. /retrofit Preventive maintenance

AFK

e

The Lean Thinking alternative


The Lean Thinking alternative redefines the functions, departments, roles and the whole organization in view of a positive contribution to the generation of value in such a way that it is in the interest of the employee that value flows.

Value stream


The value stream must be looked at as a whole: in a departmental oriented organization, the different departments tend to only look after their own interests and do not care about the problems the other departments around them encounter.

 

Lean Thinking breaks with the conviction that employees deliver an excellent performance. Finally it is the customer who decides whether or not he buys the product at the set price.



The problem is mostly not the competence of the people who control the system according to a certain logic,…. The problem is the logic itself…..



Localization


The product team (team leader, buyer, planner, production manager,…) must be placed as close as possible to the physical happening. Transparency and visual control are very important advantages of the Lean Thinking. In a classic batchand-queue environment, the employee only sees a small part of the task and there is no feedback.



Expectations
Improvement and better control of throughput (synchronized manufacturing) More efficient and simpler organization Better control of the flow of financial resources Higher customer satisfaction Reduced inventory Higher delivery performance Lower quality cost



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