client logo 1© the delos partnership 2006 january 2006 lean enterprise implementation workshop
TRANSCRIPT
1© The Delos Partnership 2006January 2006
Client Logo
LEAN ENTERPRISELEAN ENTERPRISEImplementation WorkshopImplementation Workshop
2© The Delos Partnership 2006January 2006
Client Logo
How will we proceed ?How will we proceed ?
Day one : Team building and actual physical flow-mapping.
Day two : Supports flow-mapping, existing issues identification and documentation, target flow design.
Day three : Target flow presentation to sponsor, operational solution design and test.
Intersession
Day four : Performance measurement, change modelling, project execution structure design.
Day five : Project planning, action plans, costs and benefits, return on investment, final presentation to sponsor.
3© The Delos Partnership 2006January 2006
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OBJECTIVE DAY 2OBJECTIVE DAY 2
To document the support processes.
Learn differences between batches and continuous flow.
See a real HEAT team in action.
Set SMART objectives.
Identify issues in existing flows.
4© The Delos Partnership 2006January 2006
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PROGRAM DAY 2PROGRAM DAY 2
Support flow mapping.
Waste identification and documentation.
Continuous flow and batch processes.
Lunch
Video watching and debriefing.
New process performances target.
Introduction to problem solving tools.
New process rough design.
5© The Delos Partnership 2006January 2006
Client Logo
I
Time OP=4,5h
Waiting= 12 h
TRS = 38%
3 shifts
Tuesday + Wednesday
I I I Shipment
1X/day
18400 Bx./mth.
Box=200 units
2 shifts Raw Material
ABC Provider
XYZ Client
Mix & Comp.
3
Packaging
3
CQ & AQ
R.M. 14 days
½ F.G. F.G. F.G. Time OP=0,5
Time Eq=3d
Uptime = 85%
3 shifts
.
Time OP= 12h.
Waiting = 5 hr.
TRS = 35%
Avail Cap. = xx
Man Freq.= 2 mth
Elapsed time = 1411,2
VA time = 40,5 h
14 d.
12 h.
35 d.
4,5 h
2 d.
24 h
4.5 d
Lean Workflow analysisLean Workflow analysis
0,8 d. 2 d. 0,5 d.
V = 2,87 %
Information Flow Forecast
Orders
MPS
S&OP
MRP DCP
RCCP
Sched.
Purch.
Sup. Sch.
Control
Shift Plan
6© The Delos Partnership 2006January 2006
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Information system interactionsInformation system interactionsW
eekly
Daily
Production Qualité Méthodes Maintenance
Mon
thly
PIC
Perfo UIP
PDPMensuel
PDPHebdo. Perfo
Cellule
RQP
PerfoQualité
UIP AQMéthodes
AQLigne
QualitéProduit
QualitéProcess
Plan ChargeMéthodes
Perfo
Plan ChargeSecteur
Perfo
SAMAS
SAMIS
RAP
RSA
RHP
RQM
RMP
MensuelGTX
7© The Delos Partnership 2006January 2006
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Information feedback flowsInformation feedback flows
Weekly
Mon
thly
Production Qualité Méthodes Maintenance
Qualité produit
SAMIS
SAMAS
RHPPDP
Hebdo
PDP Mensu
el
PIC
Perfo cellule
Plan charge
Méth+Perfo
Remonté des indicateurs performance méthodes
Perfo qualité
UIP
Perfo UIP
Remonté des indicateurs qualité et plan d ’action
associés
A.Q. Méthode
s
Plateau technique indus GPR / GPU
Actions correctives A.Q.
méthodes
Actions correctives A.Q.
indus
Mensuel GTx
A.Q. Ligne
Plan charge
Sect+Perfo
Exemple plan d ’action D.A.C.
RMP
Définition des plages de maintenance.
8© The Delos Partnership 2006January 2006
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Weekly
Mon
thly
Decision flows.Decision flows.
Production Qualité
Qualité produit
SAMIS
SAMAS
RHP
Perfo cellule
Mensuel GTx
Méthodes Maintenance
PIC
Plan charge
Méth+Perfo
Plan de charge méthodes sur les 3 ans à venir.
Perfo qualité
UIP
Perfo UIP
Planification plan d ’action proposé.
A.Q. Ligne
Plan charge
Sect+Perfo
Prise en compte des DAC avec date de
solde.
A.Q. Méthode
s
Plateau technique indus GPR / GPU
Prise en compte des Pb remontés avec date de
réalisation.
Prise en compte des Pb remontés avec date de
réalisation.
PDP Mensu
el
Revue et prise en compte par la production des plages de maintenance
RMP
9© The Delos Partnership 2006January 2006
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TeamworkTeamwork
Describe your process (support flow)
1 h preparation
½ h presentation
½ h sharing
10© The Delos Partnership 2006January 2006
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PROGRAM DAY 2PROGRAM DAY 2
Support flow mapping.
Waste identification and documentation.
Continuous flow and batch processes.
Lunch
Video watching and debriefing.
New process performances target.
Introduction to problem solving tools.
New process rough design.
11© The Delos Partnership 2006January 2006
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7 Type of waste7 Type of waste
1. Over production
2. Motion
3. Transportation
4. Waiting
5. Over Processing
6. Storage/Inventory
7. Defects
20 % of batches require a second analysis before
approval
Suppliers schedule are transferred
manually to a spreadsheet
12© The Delos Partnership 2006January 2006
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CALL IT CALL IT TWENTY?TWENTY?
…22 TO BE …22 TO BE ON THE SAFE ON THE SAFE
SIDE!SIDE!
TEN TEN PLEASE!PLEASE!
CALL IT CALL IT TWENTY?TWENTY?
…22 TO BE …22 TO BE ON THE SAFE ON THE SAFE
SIDE!SIDE!
TEN TEN PLEASE!PLEASE!
What’s your mother maiden name?
How do you spell that?
What’s your mother maiden name?
How do you spell that?
££££££££ ££££££££ ££
££££ ££
13© The Delos Partnership 2006January 2006
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Lean Workflow analysisLean Workflow analysis
I
Time OP=4,5h
Waiting= 12 h
TRS = 38%
3 shifts
Tuesday +
Wednesday
I I I Shipment
1X/day
18400 Bx./mth.
Box=200 units
2 shifts Raw Material
ABC
Provider
XYZ
Client
Mix & Comp.
3
Packaging
3
CQ & AQ
R.M.
14 days
½ F.G. F.G. F.G. Time OP=0,5
Time Eq=3d
Uptime = 85%
3 shifts
.
Time OP= 12h.
Waiting = 5 hr.
TRS = 35%
Avail Cap. = xx
Man Freq.= 2 mth
Elapsed time= 1411,2
VA time = 40,5 h
14 d.
12 h.
35 d.
4,5 h
2 d.
24 h
4.5 d 0,8 d. 2 d. 0,5 d.
V = 2,87 %
Information Flow Forecast
Orders
MPS
S&OP
MRP DCP
RCCP
Sched.
Purch.
Sup. Sch.
Control
Shift Plan
I
Time OP=4,5h
Waiting= 12 h
TRS = 38%
3 shifts
Time OP=4,5h
Waiting= 12 h
TRS = 38%
3 shifts
Tuesday +
Wednesday
Tuesday +
Wednesday
I I I Shipment
1X/day
18400 Bx./mth.
Box=200 units
2 shifts Raw Material
ABC
Provider
ABC
Provider
XYZ
Client
XYZ
Client
Mix & Comp.
3
Mix & Comp.
3
Packaging
3
CQ & AQ
R.M.
14 days
½ F.G. F.G. F.G. Time OP=0,5
Time Eq=3d
Uptime = 85%
3 shifts
.
Time OP=0,5
Time Eq=3d
Uptime = 85%
3 shifts
.
Time OP= 12h.
Waiting = 5 hr.
TRS = 35%
Avail Cap. = xx
Man Freq.= 2 mth
Time OP= 12h.
Waiting = 5 hr.
TRS = 35%
Avail Cap. = xx
Man Freq.= 2 mth
Elapsed time= 1411,2
VA time = 40,5 h
14 d.
12 h.
35 d.
4,5 h
2 d.
24 h
4.5 d 0,8 d. 2 d. 0,5 d.
V = 2,87 %
Information Flow Forecast
Orders
MPS
S&OP
MRP DCP
RCCP
Sched.
Purch.
Sup. Sch.
Control
Shift Plan
Suppliers schedule are transferred manually to a
spreadsheet
Suppliers schedule stability is under 20%
at 2 weeks
20 % of batches require a second analysis before approval
80 % of packaging material issues are under quoted LT
Packaging material inventory accuracy
= 85%
Purchasing process LT
= 8 days
No visibility on customer’ inventory
Transportation time buffer = 8 days
Lack of visibility to organise
transportation
Inventory status not updated on time
No visibility on quarantine batches scheduled release
14© The Delos Partnership 2006January 2006
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15© The Delos Partnership 2006January 2006
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Problems, Concerns & IssuesProblems, Concerns & Issues
N° Name Comment123456789
1011121314
Step
16© The Delos Partnership 2006January 2006
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VA & NVA ANALYSIS:VA & NVA ANALYSIS:
What did you learn during this activity?
What are the major waste areas you identified?
17© The Delos Partnership 2006January 2006
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PROGRAM DAY 2PROGRAM DAY 2
Support flow mapping.
Waste identification and documentation.
Continuous flow and batch processes.
Lunch
Video watching and debriefing.
New process performances target.
Introduction to problem solving tools.
New process rough design.
18© The Delos Partnership 2006January 2006
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or
CHOICE CRITERIACHOICE CRITERIA
19© The Delos Partnership 2006January 2006
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Time is a competitive weaponTime is a competitive weapon
Why ?“If we are competitors and I am able:
• To understand the market faster than you,
• To manufacture a wider variety of product on same line,
• To jump from one product to next at lower cost,
• To make as much profit on small batches as on large ones,
• To present new solutions faster than you,
• Or to do a majority of the above,
then, I shall win!”
Source: Thomas A. Stewart, Japan’s Hot New Strategy, Fortune, Sept. 1992
20© The Delos Partnership 2006January 2006
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Quality
Cost
Time is the key to ‘lean’Time is the key to ‘lean’
Time
21© The Delos Partnership 2006January 2006
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Processdesign
Equipment reliabilityQuality
Valid plans
Paperwork
Manufacturingchangeovers
Planning
Logi
stic
s
INVENTORY HIDES WASTEINVENTORY HIDES WASTE
Waste = Non Value Added Activities Needed today Not needed
INV
EN
TO
RY
22© The Delos Partnership 2006January 2006
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INVENTORY HIDES WASTEINVENTORY HIDES WASTE
Where do we have inventory?
-
-
-
-
Why do we have inventory?
-
-
-
23© The Delos Partnership 2006January 2006
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Flow implementation techniquesFlow implementation techniques
1. Focus on existing products.
2. Ignore actual workstations, jobs and assignments borders (generally organised by departments).
3. Re-invent work processes and tools to eliminate backward flows, rejects and stops.
24© The Delos Partnership 2006January 2006
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U shaped lineStraight line
Waste
Monuments
The waste of shared equipmentsThe waste of shared equipments
25© The Delos Partnership 2006January 2006
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Grinding Finishing
MachiningMilling
TM
Pol Pol
Pol
MM
MM
MM
MM
MM
MM
MA
MA
MA
MA
TBN
TBN
TCC
CNC CNC
CNC CND
CNC CND
Inv.
TMTM
Tooling
TBN MM MA
CNC
Pol
ToolingInv.
ToolingInv.
TCC
TM
TBN MAMM
CNC
CNC
CNCCNDPolTM
TBN MM
MA
CNDMATM
Inv. &Tooling Pol
MM
MM
MM
Job shops or flow shopsJob shops or flow shops
26© The Delos Partnership 2006January 2006
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Typical resultsTypical results
Lead Time 40-90% Reduction
Inventory 30-70% Reduction
Cost of Quality 50-90% Reduction
Settings and changeovers 70-90% Reduction
Surface 40-70% Reduction
Future results Business excellence is a necessity to survive in the future. Challenge
for most business is to improve their key factors by a magnitude of
10!
27© The Delos Partnership 2006January 2006
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Line shapesLine shapes
What are the advantages of U shaped lines?
-
-
-
-
-
-
-
28© The Delos Partnership 2006January 2006
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One month Un mois
Planning
Production Scheme
One month
10 1015 1525 2550 50
200300500
1000
ABCD
Daily output
One month
200300500
1000
ABCD
Production plan
A 10B 15C 25D 50
Faster and slimer process with a daily mix output of 100 pieces
Fat and slow process with an average output of 100 pieces
Flox Batch
AA
BB
CC
DD
AABBCCDD
Continuous Flow Vs BatchContinuous Flow Vs Batch
29© The Delos Partnership 2006January 2006
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Continuous Flow Vs BatchContinuous Flow Vs Batch
With a batch organisation what are the wastes we generate?
-
-
-
How is-it possible to avoid it with continuous flow?
-
-
-
30© The Delos Partnership 2006January 2006
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Production Scheme
People
Equip-ment
Method
Flexible workers
Standing up
In work sequence
Multi product lines
One piece at a time
Flow driven (takt time)
Specialised workers
Seated
Grouped by function
Multi task lines
Batch size
Machine cycle driven
Flow BatchContinuous Flow Vs BatchContinuous Flow Vs Batch
31© The Delos Partnership 2006January 2006
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1. Equipment set in work sequence
2. Piece flow
3. Synchronised flow
4. One worker works on several operations
5. Flexible operator
6. Stand-up
CONDITIONS FOR FLOW CONDITIONS FOR FLOW MANUFACTURINGMANUFACTURING
32© The Delos Partnership 2006January 2006
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Adequate equipmentsAdequate equipments
It is essential each machine be converted from one manufacturing to next almost instantaneously …
… and lot size be “adequate” to insert instantaneously in production flow.
33© The Delos Partnership 2006January 2006
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Throughput Efficiency (TE) = Work content x 100%Time in system
5 Weeks
15 hours total work
Minimise lead timesMinimise lead times
34© The Delos Partnership 2006January 2006
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CapableCapable
– Right every time
Process quality: Specialist Quality Control (e.g. 6 ) Workplace Management (Genba Kanri)
35© The Delos Partnership 2006January 2006
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What is 6 sigma?What is 6 sigma?
Simple: Eliminate defects Eliminate the opportunity for defects
Complex Vision Measurement of performance Philosophy Tool for:
Customer focusBreakthrough improvementContinuous improvement People involvement
36© The Delos Partnership 2006January 2006
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PPM % Non Defective
2 308,537 69.1%3 66,807 93.32%4 6,210 99.379%5 233 99.9767%6 3.4 99.99966%
EffectivenessEffectiveness
37© The Delos Partnership 2006January 2006
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Workplace ManagementWorkplace Management
Real OperationalTeamwork
StandardOperating
Procedures
Daily/WeeklyTeam
Meetings
TeamPerformance
Targets
The Role of the Supervisor
38© The Delos Partnership 2006January 2006
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ReliableReliable
Always able to run
Machine reliability: 5S TPM
39© The Delos Partnership 2006January 2006
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The 5S’sThe 5S’s
1. Sort out
2. Simplify
3. Sweep
4. Standardise
5. Self discipline
40© The Delos Partnership 2006January 2006
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Total Productive MaintenanceTotal Productive Maintenance
TOTAL - Business wide
PRODUCTIVE - Improve equipment performance
MAINTENANCE - Machine systems support
41© The Delos Partnership 2006January 2006
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Pillars of TPMPillars of TPM
OEE IMPROVEMENT
AUTONOMOUSMAINTENANCE
PLANNEDMAINTENANCE
SKILLSDEVELOPMENT
MAINTENANCEPREVENTION
STANDARDISATION
5S (WORKPLACE ORGANISATION)
RELIABILITYRELIABILITYAND AVAILABILITYAND AVAILABILITY
42© The Delos Partnership 2006January 2006
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Autonomous MaintenanceAutonomous Maintenance
‘Maintenance is like looking after children. On a day to day basis you don’t require a doctor. In a factory your machines don’t require a technician. Production operators should think of their machines in the same way as a mother thinks of her children.’
Senior Japanese Maintenance Adviser, Nissan (U.K.) 1986.
43© The Delos Partnership 2006January 2006
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FlexibleFlexible
– to change mix and volume on demand Machine flexibility (SMED) Manpower flexibility
44© The Delos Partnership 2006January 2006
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SMED PurposeSMED Purpose
1. To increase equipment availability and efficiency through less machine downtime
2. To increase process flexibility and responsiveness through smaller batch sizes and reduced lead times
3. To increase capital productivity through reduced stock levels
Process1. Identify internal and external changeover time
2. Transfer internal to external
3. Reduce internal and external
Tools1. VCR
2. HEAT
3. Management support
45© The Delos Partnership 2006January 2006
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V. Jones
P. Daniels
R. Hope
B. Crosby
Op. 1 Op. 2 Op. 3 Op. 4
Manpower flexibility - ILUDOManpower flexibility - ILUDO
46© The Delos Partnership 2006January 2006
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AdequateAdequate
– with capacity to avoid bottlenecks
Machine Capacity (OEE)
0
20
40
60
80
100
120
140
160
Cutting Grinding Drilling Printing Furnace
Ho
urs
in
wee
k
Planned Non-run
Breakdown losses
Changeover losses
Quality losses
Good Running
47© The Delos Partnership 2006January 2006
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OEEOEE
DEMAND TIME
DEFECTS
‘MISSING MINUTES’& SLOW RUNNING
EQUIPMENT STOPPAGES & BREAKDOWNS
UTILISATION
AVAILABILITY
QUALITY
24/7
48© The Delos Partnership 2006January 2006
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Extended capacity mappingExtended capacity mapping
Capacity per weekin equivalent units
raw materialsupplier
first tier supplier
Time
finalass
paint
subass
press blank
pickle
cold roll
hot roll
servicecentre
secondtier supplier
49© The Delos Partnership 2006January 2006
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PROGRAM DAY 2PROGRAM DAY 2
Support flow mapping.
Waste identification and documentation.
Continuous flow and batch processes.
Lunch
Video watching and debriefing.
New process performances target.
Introduction to problem solving tools.
New process rough design.
50© The Delos Partnership 2006January 2006
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PARADIGMEPARADIGME
• A philosophical and theoretical framework of a scientific school or discipline within which theories, laws, and generalizations and the experiments performed in support of them are formulated; broadly : a philosophical or theoretical framework of any kind
A set of rules:
1) Setting borders
2) Dictating what to do to be successful in those borders.Joel Barker.
51© The Delos Partnership 2006January 2006
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VIDÉOVIDÉO
Speed race for house building
52© The Delos Partnership 2006January 2006
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House building raceHouse building race
What have you seen? --------
Does it relates to your definition of HEAT?
53© The Delos Partnership 2006January 2006
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PROGRAM DAY 2PROGRAM DAY 2
Support flow mapping.
Waste identification and documentation.
Continuous flow and batch processes.
Lunch
Video watching and debriefing.
New process performances target.
Introduction to problem solving tools.
New process rough design.
54© The Delos Partnership 2006January 2006
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SMART OBJECTIVESSMART OBJECTIVES
Specific
Measurable
Attainable
Results-focused
Timely
Concrete, use action verbs.
Numeric or descriptive, quantity, quality, cost.
Feasible, appropriately limited in scope, within the committee's control and influence.
Measures outputs or results (not activities), includes products, accomplishments.
Identifies target date, includes interim steps and a plan to monitor progress.
Increase
velocity
from
2,87% to
5%
98% on time delivery98%
right
1st time
55© The Delos Partnership 2006January 2006
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Build your SMART objectiveBuild your SMART objective
1- Brainstorming
2- Affinity diagramming
3- Consensus
Time
Cost
Quality
56© The Delos Partnership 2006January 2006
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Your ObjectiveYour Objective
Time
-
-
Cost
-
-
Quality
-
-
57© The Delos Partnership 2006January 2006
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PROGRAM DAY 2PROGRAM DAY 2
Support flow mapping.
Waste identification and documentation.
Continuous flow and batch processes.
Lunch
Video watching and debriefing.
New process performances target.
Introduction to problem solving tools.
New process rough design.
58© The Delos Partnership 2006January 2006
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Tools for continuous Tools for continuous improvementimprovement
Flow Chart
Check Sheet
Pareto Chart
Cause &effect
diagram
Run Chart
Histogram
Scatterdiagram
Controlchart
59© The Delos Partnership 2006January 2006
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Seven management &Seven management &planning toolsplanning tools
a b c d e f
ajk
l
bfg
t
cd
kz
dfa
r
escp
fin
q
poln X O O
mdrt X V
scgt X
qckr V X
cgzt X
lmpo O V X
vhds X
x x xo o
Affinity diagram
Interrelationshipdigraph
Tree diagram
Prioritizationmatrices
Matrix diagram
Activity-networkdiagram
Process-decisionprogram chart
Kn
ow
nU
nkn
ow
n
60© The Delos Partnership 2006January 2006
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A universal process for improvement
padc
DEMING CIRCLE PDCADEMING CIRCLE PDCA
P = Plan• Define a problem or opportunity• Analyse the situation. Study and define the
problem; brainstorm for causes and corrective actions; and think creatively to determine the best approach and best possible corrective actions.
• Develop an implementation plan
D = Do• Implement corrective action• Document the procedures and observations• Use data-gathering tools to collect information.
C = Check• Analyse information.• Monitor trends.• Compare obtained results against expected result
from the plan.
A = Act• If the results are as expected, do nothing.• If the results are not as expected, repeat the
PDCA cycle.• Document the process and the revised plan.
originally conceived by Walter Shewhart in 1930's
61© The Delos Partnership 2006January 2006
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Six Sigma, Lean, TQM, …Six Sigma, Lean, TQM, …
Deming1 Define the problem2 Justify choice3 Set objectives4 Plan activities5 Document start point6 Analyse7 Identify solutions8 Implement solutions
Check 9 Check results10 Standardise11 Plan new actions
Define Plan
Measure
Do
Act
Activity
Analyse
Improve Design
VerifyConrol
Six-sigma
62© The Delos Partnership 2006January 2006
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padcpadc
Failure and continuityFailure and continuity
Deming Circle includes a right
to failure.
padcpadc
padcpadc
a
a
padcpadc
a
63© The Delos Partnership 2006January 2006
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Statistical Process ControlStatistical Process Control
UCL (calculated) =statistical upper control limit
UCL (process) =pre-determined, acceptable process upper control limit
UCL (quality) =pre-determined, acceptable quality upper control limit
LCL (calculated) =statistical lower control limit
LCL (process) =pre-determined, acceptable process lower control limit
LCL (quality) =pre-determined, acceptable quality lower control limit
64© The Delos Partnership 2006January 2006
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Statistical Process ControlStatistical Process Control
65© The Delos Partnership 2006January 2006
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Statistical Process ControlStatistical Process ControlAlso for discrete qualityAlso for discrete quality
66© The Delos Partnership 2006January 2006
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PROGRAM DAY 2PROGRAM DAY 2
Support flow mapping.
Waste identification and documentation.
Continuous flow and batch processes.
Lunch
Video watching and debriefing.
New process performances target.
Introduction to problem solving tools.
New process rough design.
METALSUPPLIER
PRODUCTION PLANNING
SAPManugistics
WeeklyProduction
Plan DailyDespatchSchedule
500 ft coils
18 days
2 permonth
WELDINGPRESSINGSTAMPING
WeeklyFax
6 weekForecast 60 + 30 day
Forecasts
EPE = 2 weeks
C/O 1-2hrs
OEE = 61%
C/T 1 second
EPE 1 week
C/O 0.3-2hrs
OEE = 57%
C/T 3 seconds
EPE 1 week
C/O 0.3-1hrs
OEE = 76%
C/T 10 seconds
EPE 1 week
C/O N/A
Capacity 70%
C/T 440 seconds
ASSEMBLY TEST
EPE 1 week
C/O 10 mins
Capacity 35%
C/T 34 seconds
DESPATCH
CUSTOMER
1 second
4 days 2 hours 30 days
Current State Map
Production Lead Time = 60 days
Value Added Time = 8 min 8 sec
Daily Order
1 xDaily
3 seconds 10 seconds 440 seconds
4 days4 days
34 seconds
5 variants 5 variants 5 variants 156 variants 156 variants
METALSUPPLIER
PRODUCTION PLANNING
DailyDespatchSchedule
500 ft coils
VendorManagedInventory
STAMP + PRESS
60 + 30 dayForecasts
EPE shift
C/O 10 mins
OEE = 77%
C/T 6 seconds
EPE shift
C/O N/A
Capacity 70%
C/T 300 seconds
WELD + ASSY 1
EPE As required
C/O N/A
Capacity 55%
C/T 164 seconds
CUSTOMER
6 hours
Future State Map
Production Lead Time = 1.3 daysValue Added Time = 7 min 50 s
Daily Order
1 xDaily
6 seconds 300 seconds
1 day
164 seconds
5 variants 156 variants5 variants
ASSY 2 + TEST + DESPATCH
69© The Delos Partnership 2006January 2006
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Steps for a future state mapSteps for a future state map
1. Reassess the Value Position
2. Reassess the Make / Buy position
3. How best to make and stock?
4. How best to schedule?
5. Improve process capability
6. Organisational issues
70© The Delos Partnership 2006January 2006
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1. Reassess the Value Position1. Reassess the Value Position
Customer Intimacy
•Responsive and reliable deliveries•Configurable product / service solutions•Customer partnerships•Service support
Product Leadership•Product / service reliability•Premium product functionality
Operational Excellence
•Cost effective products•Source product from lowest cost area
71© The Delos Partnership 2006January 2006
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Downstream vertical integration
Raw materials supplier
Component maker
Assembly operation
Wholesaler Retailer
Raw materials supplier
Component maker
Assembly operation
Wholesaler Retailer
Upstream vertical integration
Stages owned by the organisation
2. Reassess the Make / Buy 2. Reassess the Make / Buy positionposition
72© The Delos Partnership 2006January 2006
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3. How to make and stock?3. How to make and stock?
• What is the production lead time compared to the customer required (or desired) lead time?
• Which planning model (MTS,ATO, MTO etc) is most appropriate?
• Where can improved collaboration over planning and schedules help reduce uncertainty and improve responsiveness?
• Should new planning systems (e.g. Vendor Managed Inventory or direct line feed) be used?
• How can value be increased along the chain at minimum cost? (e.g. pack sizes, technical advice)
73© The Delos Partnership 2006January 2006
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- Hewlett Packard - deskjet printers: power supply module, power cords & manual
mfg D.C.
Factory localisation
D.C.mfg
Distribution Centre localisation
Postponed assemblyPostponed assembly
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Agile Supply ChainAgile Supply Chain
Agile Process
AgileProcess
Materialsupplier
Customer
Decouplingpoint JIT manufacturing JIT finishing
Market DemandDownstreamcapacity
Upstreamcapacity
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Lean Supply ChainLean Supply Chain
Market DemandUpstreamcapacity
Lean Process
LeanProcess
Materialsupplier
Customer
DecouplingpointJIT manufacturing Stock finishing
Downstreamcapacity
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Lean & Agile Supply ChainLean & Agile Supply Chain
Lean Process
AgileProcess
Materialsupplier
Customer
DecouplingpointStock manufacturing Order finishing
Market DemandUpstreamcapacity
Downstreamcapacity
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Lean / Agile BalanceLean / Agile Balance
Intensity Uncertainty level
Lean Agile 1 2 3 4
4 1
3 2
2 3
1 4
Importance
Strong - Medium - Low Lean Agile
Integrated Supply Chain
Lead Time Reduction
Waste elimination
Process flexibility
Smoothed planning
Process reengineering
Importance of continuous improvement techniques
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Decoupling pointDecoupling point
Where is decoupling point:
NoneFinish goods
BulkRaw material
Supply Chain Name
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4. How to schedule?4. How to schedule?
EPE…• Should the process be batch build or build to customer Takt (or vary by
process)?• Takt time? (How do you understand customer demand?)• Where can you flow? • Where should you use supermarket-based pull? • At what single point in the production chain do you trigger production?• How much work do you release and take away?• How do you level the production mix?
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TaktTakt
Definition:“The stroke in keeping time”
(Chambers’s Dictionary)
The frequency at which parts should be produced in order to meet the customer’s requirements; the ‘heartbeat’ of the process.
Available Working TimeTakt Time =
Number of pieces required
Available Working TimeTakt Time =
Number of pieces required
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Scheduling systemsScheduling systems
• Make to Forecast (push)• Make to Demand (pull)• Kanban trigger signals• CONWIP trigger signals• MRP/Works Orders• Supermarkets (and FIFO lanes) control production between
points of flow without a written schedule• Pacemaker process
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5. Improve process capability5. Improve process capability
Which problems (e.g. bottlenecks, inventory, long changeovers) to focus on improving ?
Each step in the process should be: Valuable – of value to the customer Capable – right every time Reliable – always able to run Flexible – able to change mix and volume in line with demand Adequate – with capacity to avoid bottlenecks
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ValuableValuable
– of value to the customer
1. Waste elimination
2. Lead time reduction (Flow)
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Design your new process to Design your new process to reach your objectivesreach your objectives
Physical flow.
Information (support) flow.
People: aptitudes, abilities and attitudes.
Technologies & tools.
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Design your new process to Design your new process to reach your objectivesreach your objectives
1h30 Physical flow mapping.
3/4h Internal presentation.
3/4h Synthesis.
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ConclusionConclusion
Your opinion on today
Program for tomorrow
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How will we proceed ?How will we proceed ?
Day one : Team building and actual physical flow-mapping.
Day two : Supports flow-mapping, existing issues identification and documentation, target flow design.
Day three : Target flow presentation to sponsor, operational solution design and test.
Intersession
Day four : Performance measurement, change modelling, project execution structure design.
Day five : Project planning, action plans, costs and benefits, return on investment, final presentation to sponsor.
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See you tomorrow!