Kanban Order to Produce

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WORLD CLASS Quality-Cost-Time-Flexibility Propagate Best Practices DTP SPC/Quality Tools Mistake Proofing TQM Supplier Certification T EN Kanban M Level Loading RESOURCE PLANNING ER TPM W Cross Training EXECUTION PO SMED EM Standard Work Micro Layout LAYOUT Visual Controls 5S Value Stream Mapping Macro Layout

STANDARDIZATION

Kanban • Today’s Agenda – Introduction – Kanban video – Benefits – Push vs. Pull systems – Kanban process – Visual factory – Tiny Tag factory activity

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Introduction to Kanban • Kanban – Any signal to indicate when more parts are needed – Card, empty bin, empty space, signal light

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Kanban System • A pull system that uses color-coded cards attached to parts or part containers to regulate the upstream production and delivery flow. • Making a certain a mount of all the products, every day

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Kanban Video

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The Eight Deadly Wastes 1. 2. 3. 4. 5. 6. 7. 8.

Overproduction Waiting Transportation Over Processing Inventory Motion Wasting Talent Making Defects

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Takt Time Takt Time - customer demand rate. Takt time sets the pace of production to match the rate of customer demand. It is the drum or heartbeat of any lean system. The concept carries backward through a process stream. Every step is synchronized with the final output. Customer 11/13/2010

Retailer

Manufacturer

Suppliers

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Takt Time Calculation Calculated by taking the work time available and dividing it by the number of units sold. Net Operating Time 480 min. Lunch/Breaks - 50 min. Maintenance/Cleanup - 30 min. Net time available 400 min. 400 min x 60 sec/min 1000 Units/Day

Takt Time = 24 Sec./Unit 11/13/2010

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Pull versus Push Production Strategy

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Push System Push System – Products are provided to the consumer based on forecasts or schedules. • Build product to forecast • Create excess inventory
Extra Inventory costs
Extra floor space
Expired product
Damaged product 11/13/2010

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Large Lot Size

Disadvantages of Large Lot Size Inventory waste – large sums of money are tied up in stored products

Quality loss – Good product becomes defective as it sets in storage, from bumping, scraping, water damage

Customer waiting – Customers must wait until a long run is finished before getting their portion of the run 11/13/2010

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Push System

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Push System

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Pull System

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Kanban Card

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How many pull signals • What obstacles should be considered in establishing maximum inventory levels? – Long change over times – Long lead times – Machine downtime – Schedule increases / decreases – Large process or transfer or batch sizes – Poor quality – Long cycle times 11/13/2010

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How will the pull system change your job? • More time for constructive activities that will make your job and working conditions better • Only run the parts that are needed. Shut down time can be spent on: – Preventive maintenance – Quality improvements – House keeping – Team meetings 11/13/2010

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• Implementation of a pull system is affected by many factors: – The process itself – Cost and availability of transportation – Relationship and logistics with supplier – Level scheduling – Containerization – Supplier and customer floor space

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Pull System Conclusion •Pull System is a flexible and simple method of controlling/balancing the flow of resources. – Produce exactly what the customer wants – Minimum inventory – Small lots – Simplifies production scheduling and MRP –Management by sight/signals –The Pull takes place throughout the supply chain, not just inside your production facility 11/13/2010

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Pull at your company • Identify the opportunity for Kanbans – In your department – With your suppliers – With your customers

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Pull System Scheduling

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Courtesy of Ingersoll-Rand Co., Southern Pines, NC © 2009 RLM & Associates LLC

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Production Leveling - Heijunka

Pull System Scheduling • Workstation

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Pull System Scheduling

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Kanban cards

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Kanban Cards • Production Kanban – describes how many of what item a particular operation needs to produce. • Withdrawal Kanban – is used to pull items from a preceding operation or a supermarket.

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Supermarket System • A stocking system in which materials are stored by the operation that produces them until they are retrieved by the operation that needs them. When the store is full, production stops

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Kanban Supermarkets

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Kanban Supermarkets •Vendor maintained kanbans

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Kanban Limits • Workstations

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FIFO

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Visual Factory

Visual Factory Management Definition: Innovative method of providing valuable information to everyone!

Employee involvement and management support is CRUCIAL!!!!

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Be colorful with signs, displays and visuals

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Visual Management

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Visual Management

Visual Management

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Visual Management

Visual Management

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Visual Controls

Benefits of Visual Controls 1. Cleaner and Safer Workplace 2. Decreased Inventories 3. Less Wasted Time 4. Improved Morale 5. Improved Product Quality 11/13/2010

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Kaizen Kai + zen (Change for the better)

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6σ

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Kaizen Defined • Continuous, incremental improvement of an activity to create more value with less waste. A process of continually making small incremental, ongoing changes.

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Kaizen Benefits • Small-scale improvements are easier and faster. • The risks are lower because they generally have limited effect. • The accumulated effect is often greater than a single large improvement 11/13/2010

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Kaizen and the Company • Kaizen respects people—all else are tools • Kaizen focuses on humanizing the workplace and eliminating hard mental and physical work. • The goal of Kaizen is to eliminate waste in the value stream. • Kaizen involves everyone, at all levels! 11/13/2010

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Kaizen Involvement • Continual, incremental change in all areas— large and small, internal and external. • Overarching strategy for business • Toyota and Canon receive 100 suggestion per employee per year

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Involvement cont. • Senior Mgt – responsible for defining the Kaizen organization, setting goals, and creating the culture in which Kaizen can thrive. • Middle Mgt – required to ensure that the employees have the skills, materials and tools. • Supervisors – make sure that Kaizen is occurring on both an individual and workgroup level. 11/13/2010

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Kaizen Teams

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Change Management • The Lean journey is paved by kaizen events • Lean concepts are simple -- sustaining is hard • Lean is a business strategy and must be supported by top mgt.

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Eliminating Waste • Focus on eliminating waste in the value stream – Transportation – Waiting – Overproduction – Defects – Inventory – Movement – Extra Processing – Wasting Talent 11/13/2010

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Plan-Do-Check-Act Cycle Methodology for implementing Kaizen

• Plan – Define the steps you need to make the change, and predict the results of the change. • Do – Carry out the plan in a trial or test environment, on a small scale, under controlled conditions. • Check – Examine the results of our trial. • Act – Implement the changes you’ve verified on a broader scale. 11/13/2010

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Project Selection • Analyze the VSM and select biggest contributing problem areas • Don’t try to fix the entire value stream in a few projects • Projects can be selected at 3 levels 1. Individual Level 2. Management Level 3. Work Team Level 11/13/2010

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1. Individual Projects • Empowers every employee to improve their work area • Very low investment projects • Employees implement the ideas

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2. Management Projects • Conducted by task forces and cross-functional teams
Reduce bureaucracy within the organization and its systems
Ensure that the measurement and business systems support a Lean enterprise
Ensure that requisite facility improvement are in place

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3. Work Team Projects • Larger and more involved, but still follow the small, incremental, low-investment model that individual projects follow.
Timed agenda
Before and after pictures for improvement
Meets in area near the work space
Uses key data for improvement

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Kaizen event or blitz (Creativity before capitol)

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A larger scale Kaizen project over an area Entire PDCA cycle completed in 5 days Normal production is halted for 3-5 days Cross-functional team consisting of member of senior management, the VS owner, area workers, and support functions.

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Pre-Event: People • Project Leader • Lean Champion • Team Members

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Training • • • • • • •

Lean training 8 Wastes Project scope Overview with goals Team charter Review the current Value Stream Map Set up plant walk-through

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Next – Current State Analysis • • • • • •

Brainstorm ideas for future state map Select methods for improvement Identify items or material you need Communicate with target area people Build team consensus and select actual tasks Organize tasks

– A Tasks - the team can do without permission – B Tasks - requiring help from maint., IT, accounting 11/13/2010 © 2009 RLM & Associates LLC – C Tasks - requiring management approval

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Effort and Impact Matrix

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Implementation • • • • • • •

Implement 5S Establish one-piece flow Implement process changes – do the work Instruction of changes Identify additional improvements Pilot test changes in work area Plan for Day 4

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Observe and Refine • • • •

Validate improvements Verify full-rate production Refine improvements Establish work standards

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Finally – Sustain and Celebrate • • • • • •

Establish visual controls Complete all changes to standards Develop a 30-day action item follow-up list Document improvements Calculate savings Celebrate!

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Now What? • List some of your opportunities for a Kaizen event.

Tiny Tag Co. Activity

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Manufacturing Costs Tiny Tags Company Push System Unit Cost

Cum. Cost

Count

Pull System

Total

Count

Total

Kaizen Count

Total

Card

$

0.50

$

0.50

10

$

5.00

5

$ 2.50

1

$ 0.50

Hole Punch

$

0.50

$

1.00

2

$

2.00

1

$ 1.00

0

$

Reinforce Hole

$

0.30

$

1.30

3

$

3.90

1

$ 1.30

1

$ 1.30

Dot enhancement

$

0.20

$

1.50

1

$

1.50

1

$ 1.50

0

$

Install string

$

0.40

$

1.90

10

$

19.00

1

$ 1.90

1

$ 1.90

$

0.20

$

2.10

1

$

2.10

1

$ 2.10

1

$ 2.10

$

33.50

$

6.30

$

(27.20)

Batch Total Costs

Finished Packets

$

2.10

3

$ 10.30

4

$ 8.40

-

-

$ 5.80

5

$ 10.50

Total Revenue Profit

$ (1.90)

$ 4.70

Cost includes raw material, labor, and overhead

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Tiny Tag Co. results Push System Card Hole Punch Reinforce Hole Dot enhance Install string Batch Packet WIP Total

Unit Cost $ 4.00 $ 1.25 $ 1.00 $ 0.75 $ 0.50 $ 0.25 $ 0.25

Cum. Cost $ 4.00 $ 5.25 $ 6.25 $ 7.00 $ 7.50 $ 7.75 $ 8.00

Count 9 5 2 6 12 1 1

$ $ $ $ $ $ $ $

Total 36.00 26.25 12.50 42.00 90.00 7.75 8.00 222.50

Pull System Count 5 1 1 1 1 1 1

$ $ $ $ $ $ $ $

Total 20.00 1.25 1.00 0.75 0.50 0.25 0.25 24.00

Costs includes raw material, labor, and overhead

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