7. Operational Excellence Compliance and Quality Control Human Resources Business Processes and Systems Technical Services Engineering Environment and Safety Regulatory Excellence Business Development and Commercial Supply Chain What are the essential management section to concentrate on for a productive Facility
8. Operational Excellence Customer Satisfaction Capacity and Utilization Do it right the first time Improve Operational Efficiency Compliance and Regulatory Affairs Business Processes and Systems Measurement Philosophy of Continuous Improvement PAT
59. The supply chain of a company consists of different departments, ranging from procurement of materials to customer service. The supply chain includes activities associated with inventory (materials) acquisition, storing, use in production, transit, and delivery to customers.
61. 1. Evolution of manufacturing (1) 1900 - 1970 mass manufacturing focus on cost reduction, efficiency and scale 1970 - 1980 TQM quality and continuous improvement through product design and process control 1980 - present streamlined production focus on lean manufacturing
62. 1. Evolution of manufacturing (2) Lean Traditional Production Based on forecast Based on orders Layout Based on function / department Based on product flow Batch size Large Small Continuous flow Processing Batch & queue Quality Lot sampling Assured during processing
63. 2. Definition of lean manufacturing (1) Lean Manufacturing is a strategy for remaining competitive by identifying and eliminating wasteful steps in products and processes, using the following practices: - improvement of equipment reliability - quality at the source - continuous flow production - pull production - continuous improvement
64. 2. Definition of lean manufacturing (2) The term “lean” is used because lean manufacturing uses less: - human effort in the factory - manufacturing space - capital investment - materials - time between the customer order and the product shipment
65. 3. Goals of lean manufacturing The basic goal is to get more done with less by: minimizing inventory at all stages of production shortening product cycle times from raw materials to finished goods eliminating waste
66. 4. Lean Manufacturing Concepts Value Value stream Waste Equipment reliability Continuous flow Pull production Continuous improvement People involvement
67. 4. Lean Manufacturing Concepts4.1. Value In lean manufacturing, the value of a product is defined solely by the customer Value-adding activities transform the product closer to what the customer wants Non value-adding activities don’t create customer value Anything that is not value-adding is defined as waste
68. 4. Lean Manufacturing Concepts4.2. Value Stream An end-to-end collection of processes that create value for the customer The value stream includes people tools and technologies physical facilities communication channels policies and procedures
69. 4. Lean Manufacturing Concepts4.3. Waste Elements of production that add time, effort, cost but no value Waste is a symptom rather than a root cause of the problem
70. 4. Lean Manufacturing Concepts4.3. Waste types Types of waste Overproduction Producing more, sooner and faster than required by the next process Transportation Any movement that does not add value to the product Inventory Maintaining excess inventory Processing Doing more work than necessary Waiting Operator or machine idle time Correction All repairs to product to fulfill customer requirements Motion Any wasted motion to pick up parts or stock parts. Also wasted walking.
71. 4. Lean Manufacturing Concepts4.4. Equipment reliability Reliable equipment is required to meet daily delivery requirements When equipment is not reliable, high inventories must be maintained Lean manufacturing considers high inventories as a major source of waste
72. 4. Lean Manufacturing Concepts4.5. Continuous Flow The linking of manual and machine operations into the most efficient combinations to maximize value-added content while minimizing waste The stagnation of work in and between processes is eliminated The ideal is one piece flow: make one part, move one part (in contrast to batch and queue material handling)
73. 4. Lean Manufacturing Concepts4.5. Continuous Flow (2) To really get and hold the benefits of flow production you must transition your organization from a functional structure to a product-focused, cross-functional structure
74. 4. Lean Manufacturing Concepts4.6. Pull production Actual customer demand drives the manufacturing process as much as possible A system of cascading production and delivery instructions from downstream to upstream activities in which nothing is produced by the upstream supplier until the downstream customer signals a need The rate of production for each product is equal to the rate of customer consumption
75. 4. Lean Manufacturing Concepts4.7. Continuous improvement An ongoing activity to go for the better Perfection is an ideal, so anything and everything can be improved Some principles status quo is unacceptable put aside preconceived ideas find root causes to problems attack the process, not the people employees are the experts give yourself the right to fail do it now
76. 4. Lean Manufacturing Concepts4.8. People involvement A lean organization develops highly-trained, motivated employees who investigate problems and find solutions as part of their job Decision making and system development are pushed down to the lowest levels An empowered team approach is essential
77. 5. Tools and methods Value stream mapping Quality at the source Workplace organization: 5 S TPM Visual management Set-up reduction Batch size reduction (one-piece-flow) Cellular manufacturing Standardized work Work balancing (TAKT-time) Production leveling / smoothing Point-of-use systems Kanban Kaizen
78. 5. Tools and methods 5.1. Value stream mapping A method to describe the flow of material and information through the production system By graphically portraying the process, one is able to see where value is added and value is lost The ratio of value added to total lead time is figured by documenting the current lead time, inventory levels and cycle times
79. 5. Tools and methods 5.1. Value stream mapping (2) The visual representation allows to see where costs can be reduced and improvements can be made A future state can be designed where wasted steps are left out, and continuous flow and pull production are introduced
80. 5. Tools and methods 5.2. Quality at the source (1) Machines: intelligence to be self-operating and self-stopping when an error occurs People: served by machines, not vice versa Quality: built-in, not inspected-in Efficiency: human work separated from machine work, people freed to do value-added work
81. 5. Tools and methods 5.2. Quality at the source (2) Reduces the need for rework and prevents further work (and cost) on a product that is already defective. Simplifies prevention and repair of defects by placing responsibility on the worker.
82. 5. Tools and methods 5.2. Quality at the source (3): Poka Yoke A method that uses simple, low cost devices that prevent defective parts from being made or passed into the process Devices Contact devices switches, limit switches Sensing devices vibration, pressure, temperature Warning devices color code, lights
83. 5. Tools and methods 5.3. Workplace organization: 5S The focus of 5S activity is to organize the workplace in order to make it more productive After 5 S, one can expect to see a place for everything, and everything in its place
84. 5. Tools and methods 5.3. Workplace organization: 5S Sort out what is needed and what is not needed. When in doubt, throw it out Sort Make the 5 S’s a way of life: requires discipline Arrange essential things in order for easy access Sustain Straighten 5 S Scrub Stabilize Keep machines and work areas clean Make cleaning and checking a routine practice
85. 5. Tools and methods 5.4. Total Productive Maintenance Total Productive Maintenance (TPM) is the philosophy and practice of preventing the loss of productive machine time due to: breakdowns, minor stoppages, idling, operating at less than planned for cycle times, changeovers / setups, unacceptable quality. TPM involves everyone in identifying, monitoring, and correcting the root causes of each of these losses.
86. 5. Tools and methods 5.5. Visual management Systems that enable anyone to immediately assess the current status of an operation or process at a glance, regardless of their knowledge of the process Elements Visual displays: relates information and data to employees in the area charts metrics procedures process documentation
87. 5. Tools and methods 5.5. Visual management (2) Visual controls: intended to control the actions of the group members production status boards quality controls Visual process indicators painted floor areas for good stock, scrap direction of flow indicators Visual documentation of processes
88. 5. Tools and methods 5.6. Quick setups Reducing the time lost during machine setups and product changeovers Some concepts: external versus internal activities component and tool reduction quick changeover fasteners teaming point of use storage of materials SMED is an acronym for Single Minute Exchange of Dies
89. 5. Tools and methods 5.7. Batch reduction A philosophy that rejects batch, lot or mass processing as wasteful Product should move (flow) from operation to operation, only when it is needed, in the smallest increment, one piece being the ultimate (one-piece-flow)
90. 5. Tools and methods 5.8. Cellular Manufacturing Product- centered series of operations Layout: U-shape or semi-circle Equipment movable and placed closely together Quick feedback between operators Workers in manufacturing cells typically are crosstrained to perform multiple tasks.
91. 5. Tools and methods 5.9. Standardized work Standardized work is the documentation and application of the best practices of a manufacturing process. It may include photographs and/or drawings. It ensures that production operations are performed the same way each time. It is developed with the operators It is posted at the workstation
92. 5. Tools and methods 5.9. Standardized work (2) Standardized work consists of three elements: Takt time – matches the time to produce a part or finished product to the pace of sales and is the basis for allocating work among workers. Standard in-process inventory – the minimum number of parts, including units in machines, required to keep a cell or process moving. Standard work sequence – the order in which a worker performs tasks at various processes. Once a standard work is set, performance is measured and continuously improved
93. 5. Tools and methods 5.10. Work balancing Work balancing maximizes operator efficiency by matching work content to TAKT time TAKT time is the rate at which customers require the product TAKT time is computed as: Available work time per day Daily required customer demand in parts per day
94. 5. Tools and methods 5.10. Production levelling / Smoothing Averaging both the volume and sequence of different model types on a mixed-model production line Example producing in sequences like abacababa, rather than aaaaabbbccc (a, b and c are products)
95. 5. Tools and methods 5.11. Point of use storage All material is stored where it is going to be used in the process Point of Use Storage reduces material handling requirements and makes it easier to determine raw material needs due to smaller shipments from vendors.
96. 5. Tools and methods 5.12. Kanban A pull material replenishment system, based on the principle that material is pulled through the production process based on actual usage of material Kanban uses visual signals, usually a card, to move material through the value chain
97. 5. Tools and methods 5.13. Kaizen (1) Continuous improvement through incremental improvement The whole secret to Kaizen is to create an atmosphere, a culture of continuous improvement, by focusing people on problems. Kaizen compliments the other tools of Lean and it is part of a whole rather than a stand-alone process
98. 5. Tools and methods 5.13. Kaizen (2) KAI + ZEN To modify, to change Think, make good, make better = KAIZEN
99. 6. Implementation (1) Establish the need for change Assess your company define product groupings and current processes specify value identify the value stream(current and future state map) Educate at all levels Support the learning of the lean tools and methods
100. 6. Implementation (2) Implement the lean tools and methods organize the workplace (5 S) improve plant layout for flow manufacturing reduce lot sizes, setup times, lead times and inventory develop a pull system standardize operations improve quality improve maintenance
101. 6. Implementation (3) Modify the organization structure everybody’s job is going to change, people from the shop floor to the top floor will work differently and in departments that are structured differently Establish improvement metrics Seek perfection
102. 7. Benefits (1) Market impact Consistent on-time product delivery More flexibility Increased sales Internal impact Reduced lead times Reduced space Improvement of product quality Reduction of operating costs
103. 7. Benefits (2) On their own, the individual lean concepts and tools will provide certain measurable benefits, but it is the combination of them that will lead to more dramatic gains.
104. 8. Summary Lean manufacturing is a strategy Lean manufacturing is an organization-wide change process Successful implementation requires commitment and involvement across all levels World Class companies are implementing Lean Manufacturing concepts
107. The importance of compliance Regulatory Requirements, GMPs and around the world may be not be required but strategically may add an advantage. Good business ,it can open more doors to international business Safety and property lows are considered for complete compliance of the facility
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