Lean Production for the Small Company

A % 12 Lean Production for the Small Company Mike Elbert CRC Press Taylor & Francis Group Boca Raton London New York CRC Press is an imprint of the...
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A % 12

Lean Production for the Small Company

Mike Elbert

CRC Press Taylor & Francis Group Boca Raton London New York CRC Press is an imprint of the Taylor & Francis Group, an informa business A PRODUCTIVITY PRESS BOOK

Contents Preface About The Author

xi i..xv

1 Introduction Who Should Use This Book How to Use This Book Brief History of Lean Manufacturing The Philosophy of Lean Manufacturing and Business Systems Why Do We Need Lean Manufacturing and Business Systems?

1

7.

1 2 3 5 7

2 Fundamentals of Lean Production and Business Systems Nine Critical Wastes in Business Concerning Elimination of Waste Fundamentals of Lean Manufacturing The Five Whys Critical Importance of Management Commitment Establish Your Lean Team and Lean Leader The Lean Coach Lean Coach and Consultants Lean Team Lean Production and Your Employees Some Will Leave Us (Making the Really Tough Decision, Removing Human Roadblocks) Lean Systems versus Six Sigma

9 9 11 11 13 14 15 16 18 18 19 21 22

3 Tools for Continuous Improvement Step 1: Hands-On Example: Order out of Chaos: Housekeeping: 5S

25 25 25 26

vi • Contents 4 Beginning Your Journey Waste Walk Plant Manager: Waiting (Idle Time) Materials Manager: Excess Inventory Finished Goods: Overproduction Production Manager: Overproduction Quality Manager: Defects Purchasing Manager: Environmental Planning Manager: Transportation Manufacturing Engineering Manager: Excessive Motion Lean Leader: Overprocessing Current Lean Status

33 33 34 34 34 36 36 36 36 36 37 37

5 Value Stream Maps: The Amazing Tool (Critical to Your Success) What a Value Stream Map Is and Why You Need It Why a Value Stream Map Is Critical to Your Success How to Create a Value Stream Map Current State Map Creating the Map Gather Your Data How to Read a Value Stream Map Future State Map Creating the Future State Map Next, Compare the Current State Map to the Future State Map

39 39 40 41 41 41 42 54 54 61 72

6 Identify Your Projects Continuous Improvement Projects Identifying Your Projects from Your^Maps Which Project to Do First? Machine Tools and Takt Time Smoothing the Flow of Production Balancing Product Mix in the Work Cell Implementation Audits Who Should be Audited? Stabilizing Your Processes

77 77 78 79 86 87 89 90 91 92 94

7 Your First Kaizen Project Team What Is a Kaizen Event (Continuous Improvement Event)? Team Makeup

97 97 98

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Contents •

Kaizen Event Process SMART Goals Plan-Do-Check-Act Using Plan-Do-Check-Act and A3 Kaizen Toolbox 8 Continuous Flow Introduction Step 1: Determine Family Mix Step 2: Build First Production Cell Step 3: Create Goals and Results Chart Stabilizing Your Process Standing in the Circle Standardized Work Using Standardized Work Reducing Variability Leaders' Standard Work versus Work Instructions Team Leader's Standard Work Manager's Standard Work Accountability Daily Production Meetings 9 Work Cell and Factory Layout Work Cell Layout Ergonomic Design Work Cell Material Handling Design

vii

98 101 107 108 112 117 117 117 118 118 120 121 122 123 -..124 125 126 127 129 130 133 133 134 135

10 Creating Your Lean Road Map (Strategy Deployment) Introduction Strategic Lean Manufacturing Plan Visual Controls and Visual Management Visual Management Displays and Controls Andon Display

137 137 138 143 143 147

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151 151 152 153 156 158

Production Scheduling Introduction MRP and Lean Complement Each Other What Finished Goods Inventory Should You Stock? Types of Pull Systems Organizing and Controlling Finished Goods Warehouse

viii •

Contents

12 How to Schedule the Production Line (Value Stream) Introduction Pacemaker Process Efficiency versus Changeover Supermarket (Warehouse) Location in the Factory Signaling Material Withdrawal from the Market Batch Production Signal Kanban Production Capacity versus Changeover Time Determining Production Lot Size Reorder Trigger Point Working without Work Orders Labor and Material Accuracy Work-Order Back-Flushing Cycle Count Inventory 13 Material Management Raw Material Inventory Management Loading the PFEP What Data to Input First Equations Used with the PFEP Planning Minimum Inventory Levels Value of Frequent Deliveries Quantity of Containers Required.. Material Reorder Points Updating and Editing the PFEP Creating the Raw Material Market Organizing the Warehouse Layout of the Supermarket Creating the Supermarket How Do I Expedite Parts? Timed Delivery Routes Basic Material Handling Information .: Creating Your Timed Delivery Routes Point-of-Use Rack Design Pull Signal for Material Coupled versus Decoupled Routes: What Is the Difference? Determining the Number of Pull Signals Kanban-in-the-Loop Sustaining the Material Handling System

163 163 164 166 167 170 172 173 174 175 176 176 177 177 179 179 182 185 185 186 186 187 187 187 189 190 191 192 192 193 194 195 196 198 198 199 200 201

Contents • ix

14

Supplier Replenishment to Your Warehouse Getting Started Finished Goods Replacement Tying Finished Goods Warehouse to the Production Floor..: Packaging Schedule Board How to Use the Packaging Schedule Board Sequence of Operation

201 202 205 205 206 206 207

Standardized Problem-Solving Method Problem Solving Recognize You Have a Problem Elevate to the Next Higher Level Evaluate the Severity of the Problem Control the Expansion of the Problem Containing the Problem Preventing a Recurrence Inspect Every Job Mistake-Proofing Where Do You Start Error-Proofing? General Inspection 100% Inspection Error-Proofing Devices Immediate Feedback Statistical Process Control and Mistake-Proofing

211 211 212 212 212 212 213 213 214 215 217 218 219 219 220 221

15 Working with Suppliers and Partners Introduction Looking for Suppliers Seven Characteristics of Supplier-Customer Partnering Outsourcing Products Group Suppliers by Capability

223 223 224 225 228 229

16 Lean Accounting Show Me the Money Performance Goals Box Scores What You Get for Your Effort Profit and Loss (Income) Statements Cash-to-Cash Cycle Calculate Cash-to-Cash Cycle

231 231 232 233 236 236 241 242

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Contents

17 Achieving a Higher Level of Lean Culture Change: Learning to Stop and Fix the Problem Changing the Cultural Change Key Ingredients in Cultural Change Team Leader and Stopping the Production Line Creating a Culture That Will Stop and Fix Problems (Get Out of Fire Fighting) Using Metrics to Track Change To Change a Culture, Change a Behavior

245 245 246 247 250 251 252 253

18 Final Thoughts What Have We Learned? Sustaining Lean Conversion The Human Factor Goals and Measurements Rewards Help ? Where Do You Find People with Lean Business Knowledge? Conclusion

255 255 256 259 259 259 260 261

Glossary

263

References

269

Index

271

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