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Leanmanufacturing Module2 Continuation

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    2

    Value Stream Mapping

    Steps

    Select one value stream - a product familyWalk the physical flow of material no data collectionWalk the flow again, collecting dataDraw the Current State MapIdentify opportunities to eliminate waste and create flowDraw the Future State MapGenerate a Value Stream PlanStart making the improvementsConduct Value Stream ReviewsRepeat the cycle

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    3

    Value Stream Mapping

    Value Stream Plan

    The future state Map tells you where you want to go. Now youneed to create one more sheet: a yearly value stream plan which

    showsExactly what you plan to do and when, step-by-step.

    Measurable goals.

    Clear check points with real deadlines and namedreviewers(s).

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    Value Stream Mapping

    Value Stream Plan

    The first question that usually arises in planning implementationis In what order should we implement? Or Where do we start

    Solution: You answer these questions by considering the loops inyour future value stream.

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    5

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    Value Stream Mapping

    One effective strategy is to begin implementation in yourdownstream pacemaker loop and transition upstream asnecessary.

    The pacemaker loop , being closest to the final customer actsas the internal customer and controls demand in theupstream loops.As the flow in the pacemaker processbecomes lean and consistent it will reveal upstream problems

    that need attention.

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    Key Concepts of Lean

    The cost reduction principle

    The seven deadly wastes

    Two pillars of TPS

    The 5S system

    Visual work place

    Three stages of lean application

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    Key Concepts of Lean

    The cost reductionprinciple

    9

    Traditional thinking dictates that you set your sale price by calculatingyour cost and adding on a margin of profit

    Cost+ profit = price

    Traditional thinking

    Profit

    Cost

    Price

    Price

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    Key Concepts of Lean

    The cost reductionprinciple

    10

    The market is so competitive that there is always some one ready totake your place. The customer can often set the price and you dont have the luxury of adding a margin of profit.

    price-cost = profit

    Lean thinking

    Under these circumstances, the only way to remain profitable is toeliminate waste from your value stream, thereby reducing costs . This iscost reduction principle

    Price

    Price

    Profit

    Cost

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    Key Concepts of Lean

    The Seven DeadlyWastes

    11

    Overproduction

    Waiting

    Transporting

    Processing

    Inventory

    Movement(Motion)

    Defects

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    Key Concepts of Lean

    TWO PILLARS

    12

    Just in Time(JIT) production

    Jidokha (autonomation)

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    Key Concepts of Lean

    Visual Work Place

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    A visual workplace or visual factory begins with one simplepremise: One picture is worth a thousand words .

    For that reason, the essence of the visual factory is just-in-time information .

    On the shop floor, the goal of a visual factory is to give peoplecontrol over the work place.

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    Key Concepts of Lean

    The 5S System consists of five activities

    15

    Sort(Seiri) Keeping only what you need and remove unnecessaryitems

    Set in Order(Seiton) arranging necessary items for easy and efficientaccess and keep them that way

    Shine(Seisou)-clean everything , keeping it clean and using cleaning asa way to ensure that your area and equipment is maintained as it shouldbe.

    Standardize(Seiketsu) creating guidelines for keeping the areaorganized , orderly ,clean and making the standards visual and obvious.

    Sustain(Shisukhe)-educating and communicating to ensure thateveryone follows the 5S standards.

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    Three Stages of lean application16

    Stages

    Customer demand Stage

    Flow stage

    Leveling Stage

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    Three Stages of lean application17

    Understand Customer Ordering Patterns

    Sales forecasts

    Previous three months actual production

    Current production forecasts

    Long-term agreements

    Interviews with customers

    There are many sources for this information including:

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    Three Stages of lean application18

    Demand Stages

    Takt time

    Pitch

    Takt image

    Buffer and Safety inventories

    Finished-goods supermarket

    The various tools and concepts for determining and meeting

    demand schedule include

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    Three Stages of lean application19

    Demand Stages

    Takt is a German word for a musical beat or rhythm.

    Takt time keeps the beat for customer demand

    Takt time is the rate at which a company must produce to satisfycustomer demand

    Producing to takt means synchronizing the pace of production withthe pace of sales.

    Takt time

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    Three Stages of lean application20

    Demand Stages

    Takt time = Available production timeTotal daily quantity required

    Note: Calculate takt time in seconds for high-volume value streams.

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    Three Stages of lean application21

    Demand Stages

    Pitch

    Pitch = takt time pack-out quantity

    Pitch is the amount of time -based on takt required for an upstreamoperation to release a predetermined pack-out quantity of work inprocess(WIP).

    Note: high-volume , low-product mix lines ,pitch will normally bebetween 12 and 30 minutes depending on customer requirementsand any internal constraints.

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    Three Stages of lean application22

    Demand Stages

    Takt Image: Visualize one-Piece Flow

    Takt image is the vision of an ideal state in which you have eliminatedwaste and improved the performance of the value stream to the pointthat you have achieved one-piece flow based on Takt time

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    Three Stages of lean application23

    Buffer Inventory/Stock

    Buffers Stock is used when customer demand suddenlyincreases and your production is not capable of meeting a

    lower(faster) takt time.

    Safety Inventory/Stock

    Safety Stock protects us from internal problems(labor power issues,

    quality problems, equipment reliability ,power outages)

    As the customer demand becomes more stable and you improve thereliability of your operations and processes, you should periodically reviewinventories and minimize or eliminate them if possible

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