Lean Engineering and Value Stream UJ PDF

LEAN ENGINEERING AND VALUE STREAM 3 Pillars of Lean Continuous improvement Waste removal Respect for people  Lean Engineering Understand what the value is to the customer Value drivers Price Quality Delivery Flexibility Service Value changing raw mat...

LEAN ENGINEERING AND VALUE STREAM 3 Pillars of Lean Continuous improvement Waste removal Respect for people  Lean Engineering Understand what the value is to the customer Value drivers Price Quality Delivery Flexibility Service Value changing raw materials into something people are willing to pay more for.  Value Value in services is when staff do work that provides actual service delivery to customer Identify the steps that create value and remove those that do not – it is waste, remove waste at the source Identify the flow process, each department is the customer of the previous department. Match capacity to demand Design what the customer want only when they want it Institutionalize sustained process improvement Lean Principles Lean Principles 1. Define Value To better understand the first principle of defining customer value, it is important to understand what value is. Value is what the customer is willing to pay for. It is paramount to discover the actual or latent needs of the customer. 2. Map the Value Stream The second Lean principle is identifying and mapping the value stream. In this step, the goal is to use the customer’s value as a reference point and identify all the activities that contribute to these values. Activities that do not add value to the end customer are considered waste. 3. Create Flow After removing the wastes from the value stream, the following action is to ensure that the flow of the remaining steps run smoothly without interruptions or delays. Lean Principles 4. Establish Pull Inventory is considered one of the biggest wastes in any production system. The goal of a pull- based system is to limit inventory and work in process (WIP) items while ensuring that the requisite materials and information are available for a smooth flow of work.. 5. Pursue Perfection Wastes are prevented through the achievement of the first four steps: 1) identifying value, 2) mapping value stream, 3) creating flow, and 4) adopting a pull system. However, the fifth step of pursuing perfection is the most important among them all. It makes Lean thinking and continuous process improvement a part of the organizational culture. 8 Types of Wastes - Muda 8 Types of Wastes - Muda 1. Transportation When products, equipment, inventory, tools and people move further than they need to, you have Transportation waste. Defects and damage to products can happen when materials travel unnecessary distances. 2. Inventory Since value is being stored for a fee (probably in a warehouse), Inventory waste is common in manufacturing. Inventory is any value, whether materials or finished products, that either needs to be turned into something more valuable or sold to customers. 3. Motion When machinery, equipment and people move unnecessarily, it leads to Motion waste. The movement can be anything, such as moving, stretching, bending, reaching, lifting and walking, that doesn’t bring any value.  8 Types of Wastes - Muda 4. Waiting When producing a product for consumers, any inaction that increases costs is known as Waiting. This is waste because while the product awaits its transformation, the organization is incurring overhead. 5. Overprocessing When there are more steps, components or there’s work being put into the production of a product that the customer doesn’t require, Overprocessing occurs. In the case of manufacturing, this includes adding in more functionality into the product than needed, adjusting already installed components, taking a solution and overengineering it, performing unnecessary analyses, pushing components beyond their limits and unnecessarily using high precision equipment. 6. Overproduction If there’s one waste that can negatively impact the success of an organization, it is Overproduction. When more products or materials have been produced than customers are willing to buy, that is when overproduction happens. 8 Types of Wastes - Muda 7. Defects Defects are the most recognizable forms of waste when it comes to Lean Six Sigma, especially when it comes to manufacturing. In manufacturing, instances of Defects include details missing in assemblies, end products that need reworking and scrapped components and products. 8. Skills This waste has another name: Non-Utilized Talent. This waste can affect different types of organizations in various industries (so far, all the examples we have seen have to do with the manufacturing industry). This waste happens when management doesn’t use all of its workers to their fullest ability. Why Value Stream mapping Visualize the entire process Identify the sources of waste Common language to describe processes Improves flow decision making Links lean concepts and technique Basis of an implementation plan Links information flow and material flow Qualitative tool describing actions Starting Point Select a product family Have one person assigned to lead the mapping effect Begin at door-to-door level Consider both material and information flows  Mapping Tips Physically walk the flow path Quick tour of the entire value stream Begin at the end of the value stream and walk back Record cycle times Map the entire value stream yourself Draw with pencil Value Stream Mapping What is Takt Takt time is a measurement manufacturers use to work out how much time they have to produce each unit of goods to meet demand from customers. With lean manufacturing, it’s a balancing act for companies who are aiming to hold minimal stock to reduce costs, while still ensuring they don’t experience shortages. Takt time allows them to gain accurate insights into what time period is required for each item in production in order to keep satisfactory stock levels. Takt time can change depending on demand, and in most cases should be regularly reviewed to re-establish maximum manufacturing efficiency and output. What is the meaning of ‘takt’? The word takt comes from the German word taktzeit, which is actually a measurement used in music. It translates as ‘cycle’, ‘beat’ or ‘pulse’. The concept of takt in manufacturing was first used in the 1930s by German aeroplane manufacturers. Japanese car manufacturer Toyota then put it to work in their own production line from the 1950s – where it was known as takuto taimu.  Takt Formula Takt time is the rate at which finished product needs to be completed in order to meet customer demand T =Ta D T= Takt time (time between consecutive units Ta=Net time available e.g. work time per period D = Demand (customer demand) e.g. units required per period Total / Processing Cycle time is the time it takes to complete the process from start to finish. Cycle time must meet takt time or demand will not be met Takt Time Calculation Example END