lean manufacturing for kiln drying operations 2€¦ · lean manufacturing six sigma w j i i...

8/2/2011

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Chuck RayChuck Ray

School of Forest ResourcesSchool of Forest Resources

The Pennsylvania State UniversityThe Pennsylvania State University

LEAN MANUFACTURING FORLEANMANUFACTURING FORLEAN MANUFACTURING FOR LEAN MANUFACTURING FOR KILN DRYING OPERATIONSKILN DRYING OPERATIONS

“Current Plant MeasuresCurrent Plant Measures May Not Support Lean”

‐ Armstrong FlooringAME Lean Conference“Lessons Learned”

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Lean Lean ManufacturingManufacturing

• First demonstrated through the Toyota Production System

• Is a set of principles, concepts, and techniques

• Is a socio‐technical system

• Designed to continuously eliminate waste and lcreate value

• Is the current de facto standard of the manufacturing world

What is the greatest challenge to making your company Lean?

• Time involved; cost of doing business

• Managing yield issues

• Employee development and active engagement

• Managing inventory levels

• Yield vs. getting the parts required to complete orders

• Cost of possibly changing the manufacturing process

• Managing raw material quality and lead time• Managing raw material quality and lead time

• Assigning cost of carrying inventory

• Controlling inventory vs. customer demand vs. lean manufacturing principles to improve yield

(from PSU Lean Research Planning Meeting, 9-11-03)

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What factors determine Lean production for your operation(s)?

• Increase inventory turns

• Yields

• Manpower/employee efficiencies

• Overall material cost

• Overhead costs

• Lead time vs. order size

ff i i i h l h i• Effectiveness in managing the supply chain

• Customer willingness to pay for lean benefits (fast delivery, better yield, meet small quantity specifications)


What does JIT mean in your business?

• Reduce inventory

• Managing material deliveries to match production schedule• Managing material deliveries to match production schedule

• Not hearing the customer complain

• Reduced lead times

• Raw material JIT is virtually non‐existent in our industry

• Having inventory on the ground for next day delivery to customers

• Our customer base is two fold. 1. Lumber shipments (1‐3 days for 70% of customer base. The balance want material within a few weeks.) This is for KD lumber with maybe some value added millwork. 2. Moulding/components (4 – 10 days for 90% of the customer base.)


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How much have you been able to reduce lead times over the past ten years?

• 8‐10 weeks to < 2 weeks on some stock items8 10 weeks to < 2 weeks on some stock items

• Very little discounting existing inventory

• Only marginally, but we have always been strong in this area

• 6‐8 weeks down to 2‐3 weeks on average

• Only through inventory increases which has been primarily from market conditions and raw material availability

• Approximately 33%

• Very little, product has become more customized

• For the dimension mill, 10‐15 days down to 3 days

• Not much, mostly by accident


What processes in your operations cause the most problems?

• Controlling waste

• Communication from each level of business

• Inventory control

• Varying cost of material

• Raw material acquisition

• PROCEDURES

• Unexpected downtimes

• Shipping

• Material size and quality variations, plywood thickness variations, laminate defects

• Sanding – solid wood and veneer


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Is Lean Production primarily about cost reduction, or not?

• What is the objective of the current effort?

• What tools are being applied?

• What outcomes are necessary?

It depends:

• Are you being beat on cost alone, or is the challenge bigger than that?

Benefits of Lean Manufacturing

Lean Benefits from a Cabinet Company

102030405060708090

100

Red

uct

ion

Rat

e (%

)

010

Safetyreduction inlost work

days

incidentrate

redcution

Customercomplainreduction

Defectquality

reduction

Plant cycletime

reduction

WIPreduction

total costreduction

R

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“U i L O l A C t“Using Lean Only As a Cost Reduction Program WillLead to Failure”

Armstrong Flooring‐ Armstrong Flooring

Safety• 98% reduction in lost work days• Incident rate reduced from 6.4 to 2.9 in last three years• Five‐year trend in reduction of Incident Rate• Received the 2001 and 2002 Masco Platinum Safety Award Quality• 66% Improvement in DPPM • Customer complaints dropped from one per day to less than one per

week• Control plans in place for all processesEquipment Uptime• Uptime above 99%• TPM program implemented• Predictive program implementedDeliveryDelivery• On‐time delivery of 99.7% in 2002• Improved plant cycle time from over 5 days to 17 hours• Reduced WIP by over 80%Cost• Reduced total cost by 7.1% in 2002• Reduced total cost by 2.3% in 2001

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Let’s first briefly review…

What is Lean Production d t b ?supposed to be, anyway?

Lean Manufacturing

Si Si J I iWSix Sigma

Set‐up reduction Visual manufacturing

Total Preventive Maintenance

Just‐In‐Time Production

Waste Elimination

Cellular/Flow Manufacturing

Pull System 5S

KAI

ZEN

KAI

ZEN

Team Work / Employee empowermentTeam Work / Employee empowerment

The Structure of Lean Manufacturing.

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What’s unique about wood production?

• Yield!

• Seasonality of raw material

– e.g., log supply in winter

• Non‐integrated, fiercely competitiveNon integrated, fiercely competitive supply chain

Traditional Lean Requirement:

• “All portions of the Lean Enterprise must be Lean”

• Wood Products Industry Challenge:

– Is this feasible with wood as a raw material?

– Does one link in the chain have to be “Fat”?

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• “All WIP must be reduced to near zero”

Traditional Lean Requirement:


– Producing components from lumber to a precise order file, and discarding the rest, d f l d ld f hdefinitely decreases yield from the raw material. Are these yield losses offset by the gains from running lean?

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“I guarantee I can reduce in‐process inventory. But every time we’ve reduced inventory in the Rough Mill, costs go up.” – a plant manager

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Traditional Lean Requirement

• “Lean companies organize a flexible & p g fresponsive supply chain”


• Are sawmills flexible & responsive ?

• Do your purchasing strategies encourage supplier flexibility or volume discounts ?

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• “All employees must be empowered”All employees must be empowered


– Can our hourly employees adapt to Lean?

– Can leadership systems change?p y g

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• Must have“Self‐discipline for employees”• Have everyone accept 5S as a personal goal.

• sort, straighten, scrub, standardize, self‐discipline

• Set an example and model behavior.• Get everyone involved.• Integrate into daily work routine.

• Is this Easy for most wood products industry employees?– (research says it is Not; but practice says “It is!”)

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In order to quantify and q ycustomize Lean for Wood

Products, we need standard measures for each specific type p yp

of operation.

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Lean Indices for various wood production facilities

4

6

8

10

12

14

Lean

Ind

ex

The macro lean indexes from our general industry model.

0

2

Secondary Manufacturing Primary Manufacturing

3.25

3.33

Log Yard

Saw Mill

Green Lumber Yard 5.15

3.25

3.33

Log Yard

Saw Mill


3.25

3.33

Log Yard

Saw Mill


3.25

3.33

Log Yard

Saw Mill

Green Lumber Yard

Log Yard

Saw Mill

Green Lumber Yard

Log YardLog Yard

Saw MillSaw Mill

Green Lumber Yard Green Lumber Yard 5.15

Assembly & Finishing

Kiln Drying

Lumber Warehouse Dried Lumber Yard

Component Warehouse

Dimension Mill

2.85

11.663.94

4.04

5.163.85

Assembly & Finishing

Kiln Drying


Component Warehouse

Dimension Mill

2.85

11.663.94

4.04

5.163.85

Assembly & FinishingAssembly & Finishing

Kiln Drying


Component Warehouse

Dimension Mill

2.85

11.663.94

4.04

5.163.85

Kiln Drying


Component Warehouse

Dimension Mill

Kiln Drying

Lumber Warehouse

Kiln Drying Kiln Drying

Lumber Warehouse Lumber Warehouse Dried Lumber Yard

Component Warehouse

Dimension Mill

Dried Lumber YardDried Lumber Yard

Component Warehouse

Dimension Mill

Component Warehouse

Dimension Mill

Component WarehouseComponent Warehouse

Dimension Mill

2.85

11.663.94

4.04

5.163.85

Packaging

Product Warehouse

Component Warehouse5.16

2.97

7.49

Average “Lean Indices” across the hardwood supply chain.

Packaging

Product Warehouse


2.97

7.49

PackagingPackaging

Product Warehouse Product Warehouse


2.97

7.49

Component WarehouseComponent WarehouseComponent WarehouseComponent WarehouseComponent WarehouseComponent Warehouse5.16

2.97

7.49

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Composite panelLumber

Lumber Warehouse(Inventory)

Dry lumber Labor Energy

EnergyLabor

Composite panel Warehouse (inventory)

Panel Labor Energy

EnergyLabor

4.53 7.26

Composite panel



EnergyLabor


Panel Labor Energy

EnergyLabor

4.53 7.26

Composite


Dry lumber Labor

EnergyLabor


Panel Labor Energy

EnergyLabor

4.53 7.26

Composite


Dry lumber Labor

EnergyLabor


Panel Labor Energy

EnergyLabor

4.53 7.26

Composite


Dry lumber Labor

EnergyLabor


Panel Labor Energy

EnergyLabor Composite


Dry lumber Labor

EnergyLabor


Panel Labor Energy

EnergyLabor Composite panel


Dry lumber Labor

EnergyLabor


Panel Labor Energy


Dry lumber Labor

EnergyLaborLumber


Dry lumber Labor



EnergyLabor


Panel Labor Energy


Panel Labor Energy

EnergyLabor

4.53 7.26

Purchased Dimension

Import Dimension Assembly & Finishing(Inventory)

Labor

Other Material

By product Dimension part By product Component

Panel mill& Machining(Inventory)

Dimension & Machining(Inventory)4.13 4.60

2.91

Purchased Dimension


Labor

Other Material




2.91

Purchased Dimension


Labor

Other Material

Purchased Dimension


Labor

Other Material

Purchased Dimension


Labor

Other Material




2.91




2.91



Dimension & Machining(Inventory)








4.13 4.60

2.91

FurnitureBy product

Packaging & Warehouse(Inventory)

Labor Energy

ShippedFurniture

By product

Import Furniture3.00

FurnitureBy product


Labor Energy

ShippedFurniture

By product

Import Furniture3.00

FurnitureBy product


Labor Energy

ShippedFurniture

By product

Import Furniture

FurnitureBy product


Labor Energy

ShippedFurniture

By product

Import Furniture3.003.003.00

Lean indices of a furniture company.

LogBy productSold log

Log

Yard (Inventory)

Labor Energy

Saw Mill

Labor Energy

4.04

4.97


Log

Yard (Inventory)

Labor Energy

Saw Mill

Labor Energy

4.04

4.97


Log

Yard (Inventory)

Labor Energy

Saw Mill

Labor EnergyLogBy productSold log

Log

Yard (Inventory)

Labor Energy

Saw Mill


Log

Yard (Inventory)

Labor Energy

Saw Mill


Log

Yard (Inventory)

Labor Energy

Saw Mill


Log

Yard (Inventory)

Labor Energy


Log

Yard (Inventory)

Labor EnergyLog

Yard (Inventory)

Labor Energy

Saw Mill

Labor Energy

4.04

4.97

By productWaste

(Inventory)

Energy

Kiln (Inventory)

Labor By productGreen Lumber

Green Lumber

Lumber Yard (Inventory)

Labor Energy

Sold lumber

Purchased green lumber


4.13

3.23

By productWaste

(Inventory)

Energy

Kiln (Inventory)


Green Lumber


Labor Energy

Sold lumber



4.13

3.23

By productWaste

(Inventory)

Energy

Kiln (Inventory)


Green Lumber


Labor Energy

Sold lumber



By productWaste

(Inventory)

Energy

Kiln (Inventory)


Green Lumber


Labor Energy

Sold lumber



By productWaste

(Inventory)

Energy

Kiln (Inventory)


Green Lumber


Labor Energy

Sold lumber



By productWaste

(Inventory)

By productWaste

(Inventory)

Energy

Kiln (Inventory)


Green Lumber


Labor Energy

Sold lumber



Energy

Kiln (Inventory)


Green Lumber


Labor Energy

Sold lumber By productGreen Lumber

GreenLumber


Labor Energy

Sold lumber



4.13

3.23

By productWaste

Shipped lumber By products

Dry lumber

Lumber Warehouse (Inventory)

Labor Energy

10.44

By productWaste


Dry lumber


Labor Energy

10.44

By productWaste


Dry lumber


Labor EnergyBy productWaste


Dry lumber


Labor EnergyBy productWaste


Dry lumber


Labor Energy

10.44

Lean indices of a saw mill.

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The single largest difference between similar companies, when measuring the input/output ratios, is energy consumptionis energy consumption.

What would a Lean kiln drying operation look like?

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1. Optimize energy usage

R l kil h k f h t t d i l k• Regular kiln checks for hot spots and air leaks

• Upgrades to controls, boilers, and venting systems

• Implementation of advanced control algorithmsalgorithms

• Monitor energy usage/bd ft/species/size

• Utilize air drying for slow moving products, and as pre‐dry for all products

2. Optimize kiln scheduling• Think of “kiln‐days” as limiting constraint

• Maximize profitability subject to kiln‐day constraints

• Think in terms of $ per kiln‐day

• Don’t dry unprofitable products, convert to boiler fuel or open‐market biomass

• Eliminate re‐dry; initial dry to EMC, final dry at order…instead of “just‐in‐time”, think FIT “finish‐in‐time”

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Gross Gross total

species thick grade LumberDry Sales Sales Cost Raw Margin Margin kiln drying drying

mbft $/mbf $ $/mbf $ $/mbf $ capacity days days

Entire Mix

By LumberDry Model Total 11323 1702.05 19272310 1261.46 14,283,513 440.5897 $4,988,796.88 8451.5

By PSU Model Total 12381 $5,370,397.00 8497

Sample results

S. Maple 4/4 high 261 1,300 339,300 1,000 261,000 300 78,300 40000 12 78

1 com 23 850 19,550 500 11,500 350 8,050 40000 12 7

LumberDry 2 com 0 0 0 0 0 0 0 40000 12 0

5/4 high 12 1,500 18,000 1,050 12,600 450 5,400 40000 12 4

1 com 8 900 7,200 550 4,400 350 2,800 40000 12 2

6/4 high 60 1,500 90,000 1,075 64,500 425 25,500 45000 18 24

1 com 15 1,050 15,750 675 10,125 375 5,625 45000 18 6

8/4 high 132 1,575 207,900 1,150 151,800 425 56,100 47500 18 50

1 com 35 1,200 42,000 775 27,125 425 14,875 47500 18 13

10/4 high 9 1,700 15,300 1,300 11,700 400 3,600 50000 26 5

1 com 6 1,400 8,400 1,000 6,000 400 2,400 50000 26 3

12/4 high 10 1,900 19,000 1,400 14,000 500 5,000 50000 26 5

1 com 0 0 0 0 0 0 0 50000 26 0

571 1,370 782,400 1,007 574,750 364 207,650 197

Reduced Cost

S. Maple 4/4 high 313.2 1,300 407,160 1,000 313,200 300 93,960 40000 12 94 -196.67

1 com 27.6 850 23,460 500 13,800 350 9,660 40000 12 8 -246.67

PSU 2 com 0 0 0 0 0 0 0 40000 12 0 103.33

5/4 high 14.4 1,500 21,600 1,050 15,120 450 6,480 40000 12 4 -346.67

1 com 9.6 900 8,640 550 5,280 350 3,360 40000 12 3 -246.67

6/4 high 72 1,500 108,000 1,075 77,400 425 30,600 45000 18 29 -287.22

1 com 18 1,050 18,900 675 12,150 375 6,750 45000 18 7 -237.22

8/4 high 158.4 1,575 249,480 1,150 182,160 425 67,320 47500 18 60 -294.47

1 com 42 1,200 50,400 775 32,550 425 17,850 47500 18 16 -294.47

10/4 high 10.8 1,700 18,360 1,300 14,040 400 4,320 50000 26 6 -220.89

1 com 7.2 1,400 10,080 1,000 7,200 400 2,880 50000 26 4 -220.89

12/4 high 12 1,900 22,800 1,400 16,800 500 6,000 50000 26 6 -320.89

1 com 0 0 0 0 0 0 0 50000 26 0 179.11

685 1,370 938,880 1,007 689,700 364 249,180 237

3. Minimize lumber movement• Random inventory storage (inefficient)

• Designated inventory layout (good)

• Dynamic inventory assignment (better)

• Strive for moving “front” of green and dry lumber loading

• Track raw material flows by BTU value

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4.Other ideas• Consider out‐sourcing of drying operations to

ffi i t tmore efficient operators

• Conversely, offer custom‐drying capacity to local cabinet/furniture/log home companies

• Partial and/or mixed kiln loads

• Dedicated “finish” kilns• Dedicated “finish” kilns

• Smaller deliveries

Can we illustrate non lean impactCan we illustrate non‐lean impact on drying operations?

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Sample data set for current ISPM standard

Estimation of fuel consumption per treatment schedule

Required MeasuredHT treatment

(oC/min)

Required Minimum

Temperature (oF)

Measured Minimum

Temperature (oF)

Preheating Time (min)

Treatment Duration

(min)

Kiln Operation time (min)

Fuel Consumption (BTU/pallet)

56/30 133 140 96.1 30 116.128 4775

60/60 140 147 105.9 60 145.897 5999

71/75 160 167 143.0 75 193.014 7936

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CO2 Emission ComparisonCarbon emission for one pallet in different treatment types

10

15

20

25

30

on F

ootp

rint (

CO

2 eq

.)

Production Transportation Treatment End of Life

0

5

HT 56/30 HT 60/60 HT 71/75 MB RF

Treatment Type

Car

bo

Loads Treated per DayTimeline for Heat Treating Pallets

60/60

71/75

Hea

t T

reat

men

t

1st load 2nd load 3rd load

0.00 4.00 8.00 12.00 16.00

56/30

Time

12:00 PM8:00 AM 4:00 PM 8:00 PM

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Longer treatment time incurs opportunity cost for the industry

Cost of heat treating pallet with different treatment types and loads

0.245

0.464

0.679

0.40

0.60

0.80

st (

$/pa

llet)

450,000 Pallets/yr600 Pallets/load1 kiln for one plantOpportunity Cost included

0.00

0.20

56/30 60/60 71/75

Treatment Type

Cos

3 loads/day 2.4 loads/day 2 loads/day

Summary

• Get lean to survive and to thriveGet lean to survive and to thrive

• Lean requires more investment in inventory, supply chain, and quality; less in production

• Lean production requires continuous improvement and employee training

• For lean kiln drying, focus on energy and kiln utilization

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Thanks for your attention…

[email protected]

lean manufacturing for kiln drying operations 2€¦ · lean manufacturing six sigma w j i i...

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