manufacturing cells

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© 1998, Manufacturing Engineering, Inc. Improve Profits and Reduce Cycle Improve Profits and Reduce Cycle Time with Manufacturin g Cells and Time with Manufacturin g Cells and Simulation Simulation Jerry W. Hoskins Manufacturing Engineering, Inc. International Lean Manufacturing Conference, 1998

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© 1998, Manufacturing Engineering, Inc.

Improve Profits and Reduce CycleImprove Profits and Reduce CycleTime with Manufacturing Cells andTime with Manufacturing Cells andSimulationSimulation

Jerry W. Hoskins

Manufacturing Engineering, Inc.

International Lean Manufacturing Conference, 1998

© 1998, Manufacturing Engineering, Inc.

Manufacturing Cells andManufacturing Cells andSimulationSimulation

● Benefits

– Our Experience– Industry Week’s Census of Manufacturers

● The Cellular Manufacturing Process

● The Design Process with Simulation

● Implementation Examples

© 1998, Manufacturing Engineering, Inc.

The Market NeedThe Market Need

● On-time delivery

● High quality

● Responsive and flexible

● Excellent value

●● Lean, responsive suppliersLean, responsive suppliers

© 1998, Manufacturing Engineering, Inc.

CHARACTERISTICS OFCHARACTERISTICS OFTRADITIONAL MANUFACTURINGTRADITIONAL MANUFACTURING

● Production scheduled based on forecast

● Build to inventory

● Large batch sizes

● Layout based on department/function

● Central store room or production floor used for product staging

● Lot sampling used to check product quality

COMPANIES USING THESE APPROACHES HAVE

OPPORTUNITIES TO MAKE IMPROVEMENTS

© 1998, Manufacturing Engineering, Inc.

Results of Traditional Mfg.Results of Traditional Mfg.

● Lack flexibility

● Long cycle time

● Lack responsiveness

● Profits may be shrinking

● Hard to focus on strategic issues

© 1998, Manufacturing Engineering, Inc.

WHAT IF I TOLD YOU IT IS POSSIBLE TO….WHAT IF I TOLD YOU IT IS POSSIBLE TO….

● Decrease your Mfg cycle times from weeks to days (70% or more)

● Reduce your inventories 50% or morewhile increasing your customer service levels

● Increase capacity 50% or more in your current facilities

● Maintain or increase your throughput while-- Reducing your indirect labor by 50% or more

-- Reducing your direct labor by 10% or more

© 1998, Manufacturing Engineering, Inc.

WHAT IF I TOLD YOU IT IS POSSIBLE TO….WHAT IF I TOLD YOU IT IS POSSIBLE TO….

● Improve your flexibility in reacting to changes in requirements

● Allow more strategic management focus

● Increase shipping and billing frequencies,thus improving cash flow

● Bottom-line: IMPROVE NET INCOME

© 1998, Manufacturing Engineering, Inc.

All of this can be achieved withAll of this can be achieved withManufacturing CellsManufacturing Cells

© 1998, Manufacturing Engineering, Inc.

CHARACTERISTICS OFCHARACTERISTICS OFMANUFACTURING CELLSMANUFACTURING CELLS

● Processing: --

A part moves to a production operation,

-- Is processed immediately, and

-- Moves immediately to the next operation

● With short order-to-ship cycles times, production is based on orders

rather than forecasts

● Inventories (RM, WIP, & FG) are minimized

● Quick changeovers of machines & equipment allow different products

to be produced in small batches with one-piece flow

● Layout is based on product flow

● Quality of each item is assured during processing

© 1998, Manufacturing Engineering, Inc.

Characteristics of CellsCharacteristics of Cells

● No competition for these resources

● Resources are focused on producing the

product rather than maximizing the efficiency

● In-process inspection

● Team environment

● Rapid problem resolution

● Easy to process exceptions

© 1998, Manufacturing Engineering, Inc.

Example Manufacturing CellExample Manufacturing Cell

© 1998, Manufacturing Engineering, Inc.

INDUSTRY WEEK MAGAZINEINDUSTRY WEEK MAGAZINE

CENSUS OF MANUFACTURERSCENSUS OF MANUFACTURERS

December 1, 1997

Identified and Analyzed

Best Manufacturing and Performance Practices

© 1998, Manufacturing Engineering, Inc.

INDUSTRY WEEK MAGAZINEINDUSTRY WEEK MAGAZINECENSUS OF MANUFACTURERS (12/1/97)CENSUS OF MANUFACTURERS (12/1/97)

CONTINUOUS FLOW PRODUCTION

JUST-IN-TIME INVENTORY CONTROL

NOT ADOPTEDWIDELY

ADOPTED

CYCLE TIME (hrs) 38 18

CUSTOMER LT (days) 20 10

ON-TIME DELIVERY 92% 95%

TOTAL INVENTORY TURNS 5X 10X

WIP INVENTORY TURNS 10X 20X

© 1998, Manufacturing Engineering, Inc.

INDUSTRY WEEK MAGAZINEINDUSTRY WEEK MAGAZINECENSUS OF MANUFACTURERS (12/1/97)CENSUS OF MANUFACTURERS (12/1/97)

NOT ADOPTEDWIDELY

ADOPTED

CYCLE TIME (hrs) 48 16

CUSTOMER LT (days) 21 10

ON-TIME DELIVERY 90% 96%

TOTAL INVENTORY TURNS 5X 10X

WIP INVENTORY TURNS 9X 18X

QUICK MACHINE CHANGEOVER

(SET UP TIME REDUCTION) PROGRAMS

© 1998, Manufacturing Engineering, Inc.

Elements of Lean ManufacturingElements of Lean Manufacturing

- Dr. Arlie Hall’s Courses -- Dr. Arlie Hall’s Courses -

● 4 Basic Activities of Mfg.

● 5 Basic Principles of Lean Mfg.

© 1998, Manufacturing Engineering, Inc.

4 Basic Activities of Mfg.4 Basic Activities of Mfg.- - Dr. Arlie Hall’s Courses -Dr. Arlie Hall’s Courses -

● Operations M

● Inspection H

● Transportation H

● Storage H

© 1998, Manufacturing Engineering, Inc.

5 Basic Principles of Lean Mfg.5 Basic Principles of Lean Mfg. - Dr. Arlie Hall’s Courses -- Dr. Arlie Hall’s Courses -

● Employee Empowerment H

● Standardized Work H

● JIT Enabler

● Quality at the Source H

● Continuous Improvement Enabler

© 1998, Manufacturing Engineering, Inc.

The Design ProcessThe Design Process● Flow Chart the existing process

� ISO 9000 process representation

● Develop an assembly diagram

● Allocate products to cells

● Establish a team

● Determine the Takt time

● Integrate store room

● Describe process steps within the cell

SSii

mmuullaatteeCommunicateCommunicate

© 1998, Manufacturing Engineering, Inc.

The Design ProcessThe Design Process- Continued -- Continued -

● Equally load (balance) each employee

● Simulate and modify

● Implement

● Nurture the team

● Add JIT

● Continuously improve

SSii

mmuullaatteeCommunicateCommunicate

© 1998, Manufacturing Engineering, Inc.

Simulation as an Improvement ToolSimulation as an Improvement Tool● Powerful tool for evaluating performance

● Throughput, cycle time, shipments, and cost

● Bottlenecks in the process and allow the

designer to evaluate alternative solutions

● Strong advantage in dealing with variability

● No special programming

● Animation required

● Ability to import CAD drawings required

● 3D if desired

© 1998, Manufacturing Engineering, Inc.

Case StudyCase Study

● Apparel Manufacturing Cell

● Team Environment

● Results Achieved

© 1998, Manufacturing Engineering, Inc.

Apparel Manufacturing CellApparel Manufacturing Cell

● PROBLEM

� Manufacturer needed to cut cost and reduce cycle

time

● SOLUTION

� Process flow developed

� Assembly diagram developed

� 3 cells defined for the business

© 1998, Manufacturing Engineering, Inc.

Cell LayoutCell Layout

34

33

33

30

© 1998, Manufacturing Engineering, Inc.

ResultsResults

Shipments up 54% Cycle Time down 75%

© 1998, Manufacturing Engineering, Inc.

ResultsResults

● Employees working as a team

● WIP reduced dramatically

● Ability to easily expedite orders

● Enabled change in marketing strategy

● Much less supervision required

© 1998, Manufacturing Engineering, Inc.

For Additional InformationFor Additional Information

Jerry W. Hoskins

Manufacturing Engineering, Inc.

614-487-8985

[email protected]

www.MfgEng.co