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1

LEAN MANUFACTURING PART 1

2Helping Our Customers Be More Successful . . .

Our Vision

1. Best-in-Class:

– Quality, Delivery, Price, Safety, Speed, Attitude

2. Realistic, Profitable Growth:

– Add volume for current customers

– Add new customers and markets

– Expand operations as required

3. Conservative & Safe Company:

– Diversified customer base

– Conservative debt structure

– Financially capable customers

4. Have Fun:

– Have the right customers, employees & action plans

3Helping Our Customers Be More Successful . . .

RWD - 2014 Goals

• DELIVERY, Target to achieve and Maintain Zero Customer Lates

• LEAN, Increase our Lean audit score to 60%.

• PRODUCTIVITY, Increase earned hours to 6.0 hrs per person per day

• SAFETY, Decrease our safety score to 5.

• QUALITY, Achieve an average PPM score of no more than 50 PPM.

• COST REDUCTIONS, implement cost reductions of $1.0M/yr.

• INVENTORY, Reduce Inventory to 10 days

4Helping Our Customers Be More Successful . . .

October 23, 2013

Meeting Room 5S

Pens, markers and eraser are

placed in the Green Basket

Keyboard and mouse location

Please ensure all chairs are placed IN the

tile area when finished with meeting

PLEASE PUT TV BACK WHEN DONE

5

| | 5

INSANITY “Doing the

same thing over and over again and expecting different results”

Albert Einstein

6

Mancor Lean Requirements:

All employees will be provided with CI / Lean training

Each department / cell/ work area employee will be part of the areas CI

team.

Each operation is required to implement 5S based on the Mancor 5S

Standard.

Each Operator to participate and put forward improvement suggestions

Each operation is required to implement 5S based on the Mancor 5S

Standard.

Each operation is required to have weekly audits and must participate in the

Mancor 5S program.

All areas of the operations must have a Tier 2 visual control board and each

department / cell must have a Tier 1 board.

5S Visual Management Program should be led by a CI Team.

Helping Our Customers Be More Successful . . .

7

For lean to succeed

• “People are the Power behind Successful LEAN

Implementation!!”

• Training, Action Items, Tracking KPI metrics and

Accountability

• All employees need to be involved (office & plant)

• It must be supported from the top down

• It is a people transformation,” an ongoing journey to

change their mindset and the culture to become lean

thinkers.

Helping Our Customers Be More Successful . . .

8

| | 8

Change Cycle

8

How people feel

Keep momentum

moving

After results from

changes are seen

9

What is Lean Manufacturing?

• Lean manufacturing is an improved & efficient way to

manufacture and deliver customer products on-time

and within quality specifications

• In other ways, lean manufacturing can be considered

as “trimming the fat” from production/manufacturing

processes which cause defects, wasted time, longer

cycle times, frustration, late customer deliveries, etc.

10 10

Lean Overview: What is Lean?

– The systematic elimination of waste and re-alignment of

resources to deliver value to the customer faster, better, &

more consistently

• Lean also is:– Pursuit of excellence– Continuous Improvement of performance and quality– Increasing inventory “turns” and throughput– Simplifying and redefining processes– Measuring & monitoring processes– Empowering the workforce (80%)

– Focus: Eliminate waste, non-value add steps, process constraints and – Bottle necks that cause problems in work throughput– Approach: Intuitive and broad - “inch-deep, mile wide”

Leading to Leading toEliminate

Waste

Reduced

Cycle Times

Increased

Capacity

11

Definition of Value Added

Value Added

Any activity that is adding value to the part and the

customer is paying for. Example: any process where you

are doing something to the part (cutting, welding,

riveting, bending)

Non-Value Added

Any activity that does not add Value to the part.

Example: moving parts from one area to another,

reworking parts, set-up/change-overs, repairs

12

Lean = Eliminating the Wastes

Value Added

Typically 95% of all lead time is non-value added

1. Overproduction

2. Waiting

3. Transportation

4. Non-Value Added Processing

5. Excess Inventory/Material

6. Defects

7. Excess Motion

8. Underutilized People

Non-Value Added

5%

13

How to implement LEAN MANUFACTURING

Starts with education/training:

5S in order to make the place safer and organized

Continue with the Five Principles of Lean Thinking

1. Identify the TAKT time (customer demand/time)

2. Complete a PFD/VSM and focus on VALUE

ADD vs NON-VALUE ADD activities (WIP)

3 Line Balancing

14

How to implement LEAN MANUFACTURING cont

• 4. Improve process bottlenecks by:

Reducing Waste & moving from “PUSH TO PULL”

system using internal customer system

Improve process/material flow using KAIZEN cell

layout changes, i.e. L, U shape work-cells

Try to Poke Yoke or Error Proofing to improve

processes and not rely on operators, (human error)

Implement in-process checks as part of the

operation (“Check & Balance”)

• 5. Continue to improve and strive for perfection

15

Lean Manufacturing tools--continued

• Example of 5S would be a shadow-board with all the tools

needed in a specific location so that there is a visual

presence of the tools or if they are missing.

• SMED—Single Minute Exchange Die, is a process where

long changeovers which take hours are improved and

reduced to single minutes

• One-Piece-Continuous-Flow, instead of Batching and Que

(producing & storing into WIP

16

What’s the end result?

Improved customer satisfaction on existing products by

consistently meeting their demands

Cost savings $$ due to improved efficiencies and

productivity within the process

New business opportunities with existing and new

customers

Increased moral and less frustration in the work place

Secured jobs

17

| | 17

Introduction ‘5S’

May 2008

19

How often are these dies used?

21

What about our Plant?

Helping Our Customers Be More Successful . . .

22

How long does it take to find parts?

Helping Our Customers Be More Successful . . .

2424

So…what is the

problem?

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

May2013

Sept2013

Nov2013

Jan2014

Mar2014

May2014

July2014

Sept2014

28.80%29.60%

RWD Lean Score

May 2013 Sept 2013 Nov 2013 Jan 2014 Mar 2014 May 2014 July 2014 Sept 2014

1 Year Target = 60%

2 Year Target = 80%

?

26

Mancor RWD Audit Scorecard

Yellow= No Change

27

Key areas for improvement

Lean Leadership

Developing a Lean Culture through training and

engagement of workers/supervisors/managers

Creating a Safe Environment using Lean (5S)

Standard Operating Procedures (SOP)

Develop an Internal Responsibility System, where

everyone is involved and has responsibility

Helping Our Customers Be More Successful . . .

2929

5S Technique

1st Sort (Purge )

2nd Straighten (Set in Order)

3rd Shine (Clean )

4th Standardize

5th Sustain (Discipline)

1. Sort2. Straighten

3. Shine

4. Standardize

5. Sustain

Sort out what you don’t

need !!

3131

Set Up Red Tag Procedures

• Identify what you USE

• Place Red Tags on all items that are

- duplicates

- in need of repair or attention

- not needed

Keep Red Tags for 1 week then move it to storage

Write on tag info about item – Date– Location removed from– Action needed?– Your name

5S RED TAG

Date: _____________________________________

Name of Item _______________________________

_________________________________

Originated From (Location) ___________________

_________________________________

Suggested Action

Throw Away

Move to Storage

Return to _________________________

Other _________________________

Your Name ________________________________

Form: 5SA - Rev. 01/04

5S RED TAG

Date: _____________________________________

Name of Item _______________________________

_________________________________

Originated From (Location) ___________________

_________________________________

Suggested Action

Throw Away

Move to Storage

Return to _________________________

Other _________________________

Your Name ________________________________

Form: 5SA - Rev. 01/04

3333

Set Up Red Tag Area

Red Tag Area

3434

Locate by Frequency of Use

• Frequently – within easy reach

• Infrequently – need to take a few steps to get but

still in area

• Rarely – can be in storage - well labeled and

mapped to easily find them when needed

“A Place for everything and

everything in its place”

1. Sort

2. Straighten3. Shine

4. Standardize

5. Sustain

7/29/2015

Department Reference #

Confirmed By Date Chapter Rev. PageIssuerProduction manager

Rivet Cell 7.2Rivet Cell - Shadow Boards

111May 11, 2006Scheduler

Cleaning Station

Rags

Shovel

Straw Broom

Cleaner

Push Broom

Colour coded cart used for storing riveting

anvils, blocks for the fixture, and stands

StandsBlocks

Riveting Anvils

Backing Blocks

37

Punch Press Die Rack Example

1. Sort

2. Straighten

3. Shine4. Standardize

5. Sustain

The next step is to thoroughly

clean the work area

3939

Shine—Inspection/Prevention

•Use cleaning of equipment as a form of

regular inspection

•check for abnormal wear or

conditions that might lead to

equipment failure

•less damage and downtime

•Eliminate sources of contamination

and dirt whenever possible

4040

Advantages of ‘Shine’

• A clean and clutter free workplace creates safe workplace for workers

• Customers get a Positive Image of the company

• Maintenance easier (leaks and changes are more obvious, easier to evaluate and repair)

1. Sort

2. Straighten

3. Shine

4. Standardize5. Sustain

Document the best practices in your

work area

October 23, 2013

Meeting Room 5S

Pens, markers and eraser are

placed in the Green Basket

Keyboard and mouse location

Please ensure all chairs are placed IN the

tile area when finished with meeting

PLEASE PUT TV BACK WHEN DONE

1. Sort

2. Straighten

3. Shine

4. Standardize

5. Sustain

This is the Discipline to keep it that way - do

regular audits!

45

Example of 5S Audit ChecklistReference #

Department: 9.4.2To maintain a 5S compliance environment, daily 5S activities must be performed throughout the day and at end of shift

It is everybody's responsibility to ensure their work area is 5S compliant

DAILY 5S CHECKLIST

1000T Press

Week Starting: Monday

Tuesd

ay

Wednesd

ay

Thurs

day

Friday

ITEM

Ha

ni

D.

Ed

mar

H.

Jan

K

Ha

ni

D.

Ed

gar

H.

Comments

1

Are all Personal Protective Equipment being

Used? Are the equipment safety features

working?

2Are the cell operating standards documented and

clearly posted at the workstations?

3 Is the area setup as per visual flow diagram?

4 Is the Work Order Board up to date?

5 Are consumables available and easily accessible?

6Are all inbound & outbound materials and related

parts in their marked locations?

7Are all the tools in the tool cart accounted for and

in the proper location?

8

Are all required measuring tools and gauges, in

good working order, properly stored and available

at the workstation?

9

Is there evidence of prior shift cleanups being

performed? Are all cleaning Tools & Supplies

accounted for in shadowboards?

10 Is the area clear of not needed items?

11Are Rework or Rejects taking up production floor

space?

12Are required counter balance pressure gauges

calibrated/set within range for top die weight?

13 Is Daily Maintenance Performed and Reported?

Total Score 0 0 0 0 0 0

Potential Score 12 12 12 12 12 60

SUSTAIN EXAMPLE

47

Punch Press BEFORE

48

Punch Press AFTER

Helping Our Customers Be More Successful . . .

49

Ownership and pride

5050

General Manager’s Office (Wayne) Before

Before

51

General Manager’s Office Before

Helping Our Customers Be More Successful . . .

52

General Manager’s Office Before

Helping Our Customers Be More Successful . . .

53

General Manager’s Office - AFTER

54

General Manager’s Office

BEFORE AFTER

Helping Our Customers Be More Successful . . .

55

General Manager’s Office

BEFORE AFTER

Helping Our Customers Be More Successful . . .

56

General Manager’s Office

BEFORE AFTER

Helping Our Customers Be More Successful . . .

5757

Assignment

• Implement 5S in your area

• When is it due? 2 weeks (1 week to SORT + 1

week to Straighten)

• Others will audit your area

• Best area gets a prize

• I will take BEFORE PICTURES of your project area!

58

59

Earl’s office B4 2S

60

Before and After 2S

61

Before and After

Fastest 5S person -Louie

• Monday October 28, 2013 Louie started his

long journey of 5S

• Louie had to climb a mountain to get to his

computer

• After 3 garbage cans of junk and 72Hrs

later, Louie achieved “Mission Impossible”

• Louie won a prize

63

Louie work station Monday Oct 28-2013

63

64

Louie work station Tue Oct 29-2013

64

65Helping Our Customers Be More Successful . . .

Louie work station Tue Oct 29-2013

Louie winner 1st worker to 5S his work station

7/29/2015

Louie –First to 5S his work station

7/29/2015

69

Next Step: 5S training & implementation by department:

Punch Press/Tool Room Oct. 23 Project Due Nov 6th

CNC/Maintenance Oct. 23 Project Due Nov 6th

Laser Oct 25 Project Due Nov 8th

Brake Press Oct. 25 Project Due Nov 8th

Trunnion Weld Oct 29 Project Due Nov 12th

Engineering October 30 (1-2) Project Due Nov 13th

Robot/Manual Weld Oct 31 Project Due Nov 14th

Assy Nov 1 Project Due Nov 15th

Paint/QA/Office Nov 8 Project Due Nov 22th

Shipping/Receiving Nov 8 Project Due Nov 22th

Helping Our Customers Be More Successful . . .

70

Quiz

What are the 5S’s?

(1 min)

70

7171

Review Quiz Answers

1st Sort (Purge )

2nd Straighten (Set in Order)

3rd Shine (Clean )

4th Standardize

5th Sustain (Discipline)

72

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