the hidden factory by julian kalac
TRANSCRIPT
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Finding the
Hidden Factory
Prepared by Julian Kalac, P.EngLean Six Sigma Master Black Belt
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HURRY UP AND WAIT—PUSH SYSTEM
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PULL SYSTEM CONTINUOUS FLOW
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BATCH & QUE PRODUCTIONPUSH
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THE PERFECT FACTORYPULLCONTINUOUS FLOW
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Hidden Factory
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Shipped on time and customer happyWe Made $$$$
ProductionMaterialShip order CUSTOMER
• No Wasted Time• No Wasted Money• No Wasted Resources• No Wasted Material
? ?
99% Customer Quality
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The truth
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The Hidden Factory
$50000-material scrap costs
$350,000 transportation costs
Lost orderWrong order shipped
ProductionMaterial Ship order CUSTOMER
Hidden Factory
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Hidden Factory
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Hidden Factory
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Hidden Factory
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Where is the hidden factory?
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Eliminating the WastesValue Added
Typically 95% of all lead time is non-value added
1. Overproduction2. Waiting3. Transportation4. Non-Value Added Processing5. Excess Inventory/Material6. Defects7. Excess Motion8. Underutilized People
Non-Value Added
5%
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The 8th WasteNot utilizing operators to their full potential
Lack of cross-functional trainingOver relying on a select few while others are Inadequately trained
Operators are unable to rotate and help each other out to balance the work-load
High overtime, increased pressure stress
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ProcessValue Added
Adds value to the output and
customer is willing to pay
for.
Optimize
Non-Value Added
Does not add value to the output, and
customer isn’t willing to pay
for.
Eliminate
Business-Value Added
Does not add value to output, customer will not pay for, but
is necessary.(Legal, Safety, Etc.)
Minimize
LEAN VALUE ADD/NON VALUE ADD
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Cycle Time is dictated by the slowest (bottleneck) operation in the cell.
40 min
20 min
25 min
15 min
30 min
1
54
3
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•What operation controls the cycle?•How can you relieve the bottleneck?
Basic Lean Concepts
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• Maintain buffer in front of bottleneck – (never starve the bottleneck !)
• Improve bottleneck operation• Cross train on bottleneck
–Creates a visual work place–Continuous Improvement–Cell Support–Balance activities / operations
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Bottleneck Management:
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Managing Bottlenecks
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THANK YOU